No preview available
HomeMy WebLinkAbout19-20 BudgetFiscal Year 2019/2020 Annual Budget City of McHenry, Illinois FY2019/2020 Annual Budget Table of Contents Letter of Transmittal Introduction…………………………….…………………………………………………………………………. 1 Elected Officials, Department Directors and Primary Administrators…………. 2 History and Demographic Snapshot of McHenry………………………………………. 3 City of McHenry Strategic Plan Summary…………………………………………………. 5 GFOA Award for Distinguished Budget Presentation FY18/19…………………… 10 Budget Document Guide…………………………………………………………………………. 11 Basis of Accounting and Budgeting…………………………………………………………… 12 Budget Process Summary………………………………………………………………………… 13 Budget Process Timeline…………………………………………………………………………. 16 City of McHenry Organizational Chart………………………………………………………. 17 Personnel Summary………………………………………………………………………………... 18 Fund Structure Overview………………………………………………………………………… 19 Chart of Accounts Overview…………………………………………………………………….. 22 Summary of Revenues & Expenditures – All Funds…………………………….………………… 34 Summary of Proposed Revenues – All Funds……………………………………………. 35 Comparison of Budget vs. Proposed Revenues – All Funds………………………… 36 Summary of Revenues and Other Financing Sources – All Funds……………….. 37 Summary of Proposed Expenditures – All Funds………………………………………. 38 Comparison of Budget vs. Proposed Expenditures – All Funds…………………... 39 Expenditures by Function – All Funds……………………………………………………… 40 General Fund Revenues, Expenditures & Fund Balance Summary…………………………. 41 General Fund Overview…………………………………………………………………………... 42 General Fund Revenues, Expenditures and Fund Balance Summary…………… 42 General Fund Revenues – Budgeted, Estimated, Proposed…………………………. 43 General Fund Expenditures – Budgeted, Estimated, Proposed……………………. 46 General Fund - Fund Balance……………………………………………………………………. 48 General Fund Operating Budgets………………………………………………………………………….. 53 General Fund Operating Budgets Overview………………………………………………. 54 Personnel Summary of Wages – All Funds………………………………………………… 57 General Administration……………………………………………………………………………. 61 Elected Officials………………………………………………………………………………………. 67 Community Development…………………………………………………………………………. 70 Finance……………………………………………………………………………………………………. 80 Human Resources……………………………………………………………………………………. 88 Economic Development……………………………………………………………………………. 95 Police Commission…………………………………………………………………………………… 103 Police………………………………………………………………………………………………………. 106 NERCOM (Dispatch)…………………………………………………………………………………. 124 Public Works – Administration…………………………………………………………………. 133 Public Works – Streets……………………………………………………………………………… 142 Parks and Recreation………………………………………………………………………………... 150 Special Revenue Funds………….………………………………………………………………………………. 163 Tourism……………………………………………………………………………………………………. 164 Pageant………………………..……………………………………………………………………………. 167 Band…………………………………………………………………………………………………………. 170 Civil Defense……………………………………………………………………………………………... 173 Alarm Board…………………………………………………………………………………………….... 176 Audit………………………………………………………………………………………………………… 175 Annexation………………………………………………………………………………………………... 179 Motor Fuel Tax………………………………………………………………………………………….. 185 Developer Donation…………………………………………………………………………………… 188 Tax Increment Finance………………………………………………………………………………. 191 Capital Projects & Debt Service Funds……………………………………………………………………. 194 Debt Service Fund……………………………………………………………………………………… 195 Recreation Center Fund……………………..………………………………………………………. 198 Special Service Area #4……………………………………………………………………………… 206 Capital Improvements Fund……………………………………………………………………….. 209 Capital Equipment Fund…………………………………………………………………………….. 212 Enterprise Funds………………………………………………………………………………………………….. 215 Water & Sewer Fund…………………………………………………………………………………. 216 Public Works – Water……………………………………………………………………………….. 217 Public Works – Wastewater……………………………………………………………………….. 227 Public Works – Utility……………………………………………………………………………….. 234 Capital Development…………………………………………………………………………………. 241 Utility Improvements………………………………………………………………………………... 244 Marina Operations…………………………………………………………………………………….. 247 Internal Service Funds…………………………………………………………………………………………. 250 Employee Insurance…………………………………………………………………………………. 251 Risk Management…………………………………………………………………………………….. 254 Information Technology…………………………………………………………………………… 257 Fiduciary Funds……………………………………………………………………………………………………. 262 Employee Flexible Spending………………………………………………………………………. 263 Development Escrow…………………………………………………………………………………. 266 Retained Personnel……………………………………………………………………………………. 269 Revolving Loan…………………………………………………………………………………………. 272 Police Pension…………………………………………………………………………………………… 275 Supplemental Information…………………………………………………………………………………….. 278 Financial Policies Overview……………………………………………………………………….. 279 Fund Balance and Reserve Policy……………………………………………………………….. 281 Capital Improvement Program Financial Policies………………………………………… 290 Capital Improvement Program…………………………………………………………………… 291 Investment Policy……………………………………………………………………………………… 392 Purchasing Policy and Procedures………………………………………………………………. 399 Glossary of Terms……………………………………………………………………………………… 402 Fiscal Year 2019/2020 Annual Budget Introduction 1 Elected Officials Wayne S. Jett, Mayor Ward 1 Victor A. Santi, Alderman Ward 2 Andy Glab, Alderman Ward 3 Jeffrey A. Schaefer, Alderman Ward 4 Bobbi Baehne, Alderwoman Ward 5 Chad Mihevc, Alderman Ward 6 Patrick Devine, Alderman Ward 7 Sue Miller, Alderwoman Department Directors and Primary Administrators Derik Morefield City Administrator John Birk, Chief of Police Ann Campanella, Director of Human Resources Bill Hobson, Director of Parks and Recreation Carolyn Lynch, Director of Finance Doug Martin, Director of Economic Development Ross Polerecky, Director of Community Development Jon Schmitt, Director of Public Works 2 History and Demographic Snapshot of McHenry McHenry is located in east-central McHenry County, 55 miles northwest of the Chicago Loop and 35 miles from O’Hare International Airport. The City is centered on two major State highways – Illinois Route 31, which runs north/south from Wisconsin to South Elgin; and, Illinois Route 120, which runs east/west from Woodstock to Park City. The City consists of approximately 13 square miles in land area. In 1832 Major William McHenry led an expeditionary force through northern Illinois during the Black Hawk War. Settlement of the Fox River Valley began over the next few years, and on the river's west bank, at the site of an old Indian ford, the hamlet of McHenry established in 1836. The McLean, Wheeler, McCullom, and Boone families were influential in the community's early years. A sawmill, hotel, and ferryboat were in operation by 1837 and legislation creating McHenry County was passed that year, and the village served as county seat until 1844. Gristmills started along newly dammed Boone Creek, and a wagon road entered town from the south in 1851. In 1864, the famed Riverside Hotel was built and still stands today. George Gage, who served as the region's first state senator (1854–1858), owned the lands west of the millpond, and was able to secure the route of the Fox Valley Railroad (afterward a branch of the Chicago & North Western) from Chicago in 1854. Consequently, Gagetown (later West McHenry) began to eclipse the older east side of town containing the Riverside section and Green Street area, once known as Centerville. This can still be detected in the distinct commercial pattern that characterizes McHenry’s “downtown.” The village incorporated in 1872. Though there were fewer than 800 inhabitants, commerce flourished. By 1876 there were seven churches and over 80 enterprises, including flour mills, harnessmakers, a pickle factory, a brewery, seven saloons, and a newspaper. The newspaper, the McHenry Plaindealer, was in publication from 1875 to 1985. Over the next 50 years McHenry grew slowly. During the 1920’s the town became known as a resort destination because of the Fox River, surrounding lakes, and easy accessibility from Chicago. Bands played at local pavilions, trainloads of visitors arrived to tour the famous lotus beds, and summer cottages proliferated along the Fox River. A boat-building industry flourished; marine recreation still remains important. For decades, McHenry took very seriously its title as the "Gateway to the Chain-of-Lakes” and this is still evidenced today in the city’s motto “Heart of the Fox River.” With the advent of the automobile, State Route 120 crossed the Fox River on a new two-lane bridge. The old wagon trail, now Highway 31, doglegged along the same route for a critical half mile before turning north toward Wisconsin. These configurations effectively relocated the city's commercial center to Route 120, and had the unintended side effect of isolating the original business districts (West Main, Riverside Drive, and Green Street). In spite of its beauty and strong attraction to tourists, McHenry owed her growth to the stability provided by the many farmers who worked the fertile land as well as the establishment of industry with new factories such as Admiral, Borden and The Hunter Boat Company. The Fox River helped facilitate the import and export of lumber, cigars, clay, food products and brewing which all helped 3 draw new residents to the area. The drainage of a large 60 acre pond that previously divided the community in half, contributed to increased development and improved roadways, while the railroad allowed commuters to find this area the perfect place to settle with their families. A new wave of industry, including automotive components, electronics, and metalworking, swept into town after World War II. The Northern Illinois Medical Center, begun in 1956 as a 23-bed community hospital, evolved into a regional trauma center serving two states. Beginning in the late 1940s, subdivisions were annexed on all sides of the city. By this time, many residents were commuting to work in other localities, including Chicago. McHenry's population tripled from 2,080 in 1950 to 6,772 in 1970, and tripled again to 21,501 in 2000. McHenry’s current population is approximately 27,000, including 10,075 households, an average household size of 2.66, and median household income of $68,024. Of the 10,075 households, approximately 7,719 are owner-occupied and 2,356 are renter occupied. The median resident age is 37.1. The City’s 2017 EAV was $638,080,968. The City currently has more than 2,000 approved unplatted lots and platted vacant lots. Active subdivisions in the City include: Abbey Ridge, Boone Creek, Burning Tree, Chesapeake Hills, Deerwood Estates, Evergreen Parks, Foxcroft Ridge, Glacier Ridge, Knox Farm, Legend Lakes, Liberty Trails, Lincoln Hills, Martin Woods, Morgan Hill, Oaks at Irish Prairie, Patriot Estates, Prairie Lakes and Preserves at Boone Creek. Total number of businesses in the City is 1,473 and total employment is approximately 19,661, with an employee/residential population ratio of 73:1. The City’s three largest employment sectors, by number of employees, are: Healthcare and Social Assistance: 5,136 employees/26%; Retail Trade: 3,139 employees/16% and Manufacturing: 2,418 employees/12.3%. Green Street looking south from State Route 120 (circa 1920’s) 4 City of McHenry Strategic Plan Summary Background In the fall of 2013 the City Council and Department Directors participated in a facilitated strategic planning session and the results of this exercise were compiled and presented to Council in the form of the City of McHenry Comprehensive Strategic Plan document that was adopted by Council in August of 2014. In addition to establishing updated Mission and Vision statements, Governing Principles and a Code of Ethics, the plan identified fifty-nine (59) Strategic Goals as guiding principles for decision-making. In the spring of 2016 Staff and Council undertook a review of the plan document with a focus towards ensuring that the strategic plan remain relevant to the activities/actions being undertaken by staff and elected officials, to revisit opportunities, and to identify/introduce any new strengths, weaknesses, opportunities, and threats that may need to be incorporated in to the plan. While regular annual or biannual review of the plan is essential to provide for a structured mechanism of update, the plan itself is a “living breathing” document that consistently shifts as internal and external factors change. As a result of the initial 2014 Strategic Planning Session and the 2016 follow-up review session, the following now serves as McHenry’s Strategic Plan. The attributes and identifiable goals that it conveys have been identified as essential for the municipality and, as possible, are incorporated into the annual Capital Improvement Program (CIP) and Annual Budget. Attributes are listed in order of importance based on participant feedback. Mission Statement The City of McHenry is dedicated to providing the citizens, businesses and visitors of McHenry with the highest quality of programs and services in a customer-oriented, efficient and fiscally responsible manner. Mission Accountability As a continuous reminder of the mission, a commitment is made to undertake the following actions: • The mission will be read at the beginning of each meeting of the City Council. (City Council) • The mission will be placed prominently in each addition of the City Newsletter. (Office of the City Administrator) • The mission will be framed and posted at major portals within all municipal buildings. (Office of the City Administrator, Department Directors) • The mission will be incorporated in to daily decision-making and included in future municipal planning documents. Examples include the annually updated 5-Year Capital Improvement Program and the annual operating Budget. (Office of the City Administrator, All) • The mission will be added to letterhead, memos, etc. (Office of the City Administrator, All) • The mission will be added to website and other social media. (Office of the City Administrator) 5 Vision To make McHenry a community of choice for living, working and recreating for all, with unique natural resources, abundant cultural opportunities, outstanding neighborhoods, and a vibrant and diverse economy. Governing Principles The values and beliefs guiding the actions of the elected and appointed officials of the City of McHenry shall include the following: • Provide an open and honest government. • Establish an environment that fosters open communication, dialogue, and active listening with both internal and external stakeholders and customers. • Ensure quality, responsive customer service. • Enhance the community’s quality of life. • Embrace the diversity of a multi-cultural and multi-generational working environment. • Be fair and objective in making community decisions. • Remember that municipal employees, through their individual and collective abilities to provide quality services and programs to the residents, businesses and visitors of the community, are our most valued asset. Code of Ethics In addition to the guidance of ethical behavior for elected and appointed officials provided in the McHenry City Code (Sec. 2-55 Code of Ethics), the following Code of Ethics shall apply: • Avoid illegalities, improprieties and any perception thereof. • Avoid accusations or perceptions of wrongdoing. • Do what makes the most sense. • Do what is right, not what is easiest. • Be fiscally responsible and manage budgets effectively. • Be proactive, look for ways to anticipate and deal with issues. • Seek innovative ways to improve public services and increase efficiency. • Keep the public informed and provide opportunities for public engagement. 6 Strengths: Physical assets, supplies, talents, etc. that can assist in accomplishing our vision. Attribute Goal 1. Stable Financial Position To maintain a balanced budget while protecting our healthy reserves, continuing to evaluate our annual levy with the potential keeping it flat as long as our reserves are healthy, per our Fund Balance and Reserve Policy. 2. Fox River To develop and continue marketing strategy for the Riverwalk and Fox Reiver by expanding and developing riverfront recreational areas and business opportunities. 3. Economic Development Retain and support the position of Economic Development Director to actively pursue economic development opportunities and be receptive to zoning changes to allow businesses to grow. Diversity of business types identified as important. 4. Parks System/Open Space To maintain and utilize our 600+ acres of park and open space to provide recreational opportunities for residents and visitors. 5. Public Event Coordination To cooperate with local and area groups, residents, businesses to have events/recreational opportunities. Develop a plan that allows feedback from the community and use data to develop future events. Increase marketing of municipal and municipally-supported events. 6. Staff Development To continue to support staff development and provide staff with the tools necessary to be successful in a positive work environment – respecting their knowledge and expertise. 7. Inter Departmental Teamwork To continue to foster a climate of collaboration among departments and within divisions. Weaknesses: Physical assets, supplies, talents, etc. that are deficient and impede the ability to achieve our vision. Attribute Goal 1. Aging Infrastructure To continue to evaluate and prioritize infrastructure needs, continuously work to leverage non-municipal funding, and attempt to identify consistent funding sources. 2. Internal Communication To continue to promote respect and teamwork, find ways to increase meaningful communication and agree to disagree and move on. 7 3. Aging Technology To define and prioritize technology needs of the municipality and develop and implement technology plan(s). 4. Public Perception of Government To continuously implement methods for providing enhanced customer service, increased information and to make City processes, procedures, intentions, actions as transparent as possible. 5. Code Enforcement To develop a methodology for prioritizing code enforcement activities based on Council direction and develop a Code Enforcement Strategy. 6. Public Transportation To continue to coordinate with McHenry County and surrounding communities Opportunities: Situations that can have a positive effect on the organization if considered or acted upon. Attribute Goal 1. Riverwalk Expansion 2. Redevelopment of Central Wastewater Treatment Plant site 3. Miller Point Redevelopment 4. Downtown Theater Redevelopment To review and utilize Riverwalk and Downtown Plans which are already in place and undertake additional studies as needed, to ensure prioritization and coordination of projects 1-4 (left). Much of this depends on timing, cost, redevelopment opportunities but the City and partners should be prepared to act as opportunities arise. 5. Recreation Center Expansion To evaluate long term feasibility for expansion of the recreation center through assessing community desires and needs with an understanding that future phases are driven by the passage of referenda. 6. Dispatch Facility Expansion To establish the consolidated dispatch facility and continue to promote and attract new customers to the facility. 7. Fox River Access/Boat Ramp To continue efforts to obtain construction permit from the USACE and fund and build the facility. 8. Reconstructed City Website and City Council A/V To evaluate and redevelopment the City’s internet website to make it more transparent and user friendly and to take the steps required to be able to either live stream or record stream City Council Meetings. 8 Threats: Opposite of opportunities. Factors that can have a negative impact on local government. Attribute Goal 1. Council-Council, Council-Staff Trust, Respect To continue efforts to establish an atmosphere of respect and trust through open communication and cooperation. All on the same team. 2. State Budget Crisis To maintain the City’s financial stability while establishing a financial threshold at a “survivable” level to maintain City services while continuing to monitor State’s financial crisis. 3. Extend the TIF To explore opportunities for extending the current TIF; coordinate with other taxing jurisdictions; educate public on benefits of TIF and extension. 4. Aging Infrastructure Costs To develop a comprehensive assessment of all infrastructure and implement a prioritization for replacement – Capital Improvement Plan. 5. Pension, Benefit, Insurance Costs To maintain pace of payment on Police Pension and to ensure that we are competitive for insurance and benefits – adjusting employee contributions as necessary. 6. Business Incentives To explore, implement unique opportunities for business incentives for location and expansion that sets McHenry apart as a business-friendly community regardless of the State’s issues. 9 GFOA Award for Distinguished Budget Presentation The Government Finance Officers Association of the United States and Canada (GFOA) presented a Distinguished Budget Award to the City of McHenry for its annual budget for the fiscal year beginning May 1, 2018. In order to receive this distinction a governmental unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan, and as a communications device. This is the fourth consecutive year that McHenry has received the award. 10 Budget Document Guide This budget document is prepared with two major objectives in mind. First, to provide citizens and others interested in the City’s finances with complete and understandable information regarding the budget. The second is to develop an annual fiscal plan that will assist City leaders in making better decisions and enhance financial accountability. Given the constraints of a small community, this budget document is continually being changed and is coming closer to meeting the requirements as a: Policy Document As a policy document, the City Council has established specific strategies to achieve its goals through policy decisions as noted in the City Administrator’s letter of transmittal. These sections include: • A budget message, included in the transmittal letter, that articulates priorities and budget issues, particularly major issues affecting budget decisions; • Short-term initiatives that guide development of the budget in the upcoming year; and • General information describing each budget unit’s prior year accomplishments and budget year goals and objectives. Operations Guide As an operations guide, the budget document describes activities, services, and functions carried out by the organizational units. In addition, it provides an organizational chart and summary of authorized personnel for the prior year and the budget year. Financial Plan As a financial plan, the budget document describes all funds subject to appropriation in the fund structure overview section. In addition, all summaries of all major revenues and expenditures are provided in summary tables. The final budget also includes General Fund revenues for the 2015/16 through 2017/18 fiscal years as well as budget amounts for the current and upcoming years. Finally, the summary section includes information as the projected changes in fund balances for all appropriated funds. Communication Device The Budget Document contains narratives, supplemented with tables and charts, which present the budget in a manner that is simple and understandable. The Proposed FY19/20 Budget is available for public review at the McHenry Municipal Center, 333 S. Green Street, McHenry, as well as on the City’s website at www.ci.mchenry.il.us prior to adoption by the City Council. Once adopted, the budget is available for public review at the McHenry Municipal Center, 333 S. Green Street, McHenry, as well as on the City’s website at www.ci.mchenry.il.us. 11 Basis of Accounting and Budgeting The City of McHenry uses the modified accrual basis of accounting to budget and account for transactions of the governmental funds. Under this basis of accounting, revenues are recognized when susceptible to accrual (when they are measurable and available) and expenditures are recognized when the fund liability is incurred. For the City’s proprietary funds the City uses the accrual basis of accounting. Under this basis, revenues are recorded when earned and expenses are recorded when the liability is incurred. The City prepares the budgets for proprietary funds consistent with this basis except that capital outlay items are included in the budget. The City prepares its budget on a basis consistent with generally accepted accounting principles except that the City also recognizes encumbrances for budgetary purposes. Encumbrances include supplies ordered but not received, and services contracted but not yet expended by the City. Encumbrances are charged against a budget or appropriation for account purposes. Accordingly, expenditures/expenses in this document include encumbered expenditures/expenses. Encumbrances do not lapse at year-end and provide authorization for expenditures/expenses for the following year. The City appropriates funds for capital projects on a fiscal year basis. The Capital Projects section of this document includes descriptive information on each project with estimated costs and financing sources. 12 Budget Process Summary Budget Process Overview The City’s annual fiscal year budget covers the period beginning May 1st and ending April 30th and contains information relative to estimated revenues and planned operational and capital expenditures for the various funds of the municipality for the identified fiscal year. Although the budget is not formally adopted by the City Council until April of each year, the budget development process officially begins each October with the preparation of the annual tax levy, which is used to fund many of the current programs and services, along with the development/update of the five-year Capital Improvement Program (CIP). The budget preparation process provides the various divisions and departments of the City with the opportunity to review accomplishments, set goals and objectives, and identify the means for accomplishing these goals and objectives. Capital Improvement Plan The five-year Capital Improvement Program (CIP), reviewed and updated annually, is an integral part of the budget process and is designed to achieve two fundamental objectives: first, to identify the major capital needs of the City over a specific planning period; and, second, to prioritize and begin planning, both financially and logistically, for the implementation of these capital improvements. Capital expenditures are defined as any project that will have a useful life of longer than one year and a value greater than $10,000. The CIP prioritizes each project using a unified and objective system that identifies the most important capital project needs. The final budget document includes capital expenditures as defined and prioritized during the CIP development process - based on the availability of sufficient funds. Importantly, the CIP document serves as a planning document for the identification of capital improvement and capital equipment needs and not a budget document. In other words, simply because a project is identified in the CIP does not guarantee that it will ever be implemented. Implementation is based on annual review and availability of funding in the budget document. Budget Roles and Responsibilities Every employee of the municipality plays a role in the budgeting process – be it formulation, preparation, implementation, administration, or evaluation. Ultimately, Department Directors, through the City Administrator, are accountable to the City Council and to the residents of McHenry for the performance of departments in meeting goals and objectives as they are laid out in the budget document. Department Directors, with input from their respective managers, superintendents and departmental staff analyze historical data, review existing operational needs, and project anticipated operational needs in order develop detailed line-item budget requests that allow them to maintain or enhance the level of programs and services within their departments. These detailed requests are then submitted to the City Administrator and Finance Director, meetings are held with Department Directors to adjust requests based on anticipated revenues keeping in mind the overall needs of the municipality, and the fund line item requests found in the attached budget document are identified. Budget Appropriation and Supplemental Appropriation While the approved budget document establishes the estimates for revenues and guidelines for expenditures of the municipality, the City is required to conduct a public hearing and adopt an annual appropriation ordinance each July. The appropriation ordinance provides the legal authority to 13 allocate funds to specific spending activities and establishes the City’s legal spending limit for the fiscal year. During the fiscal year it may be necessary, from time to time, to amend the approved budget (see Budget Amendment Process below). As a result, in October following the close of the fiscal year period (April 30th) the City is required to pass a supplemental appropriation ordinance to amend the original appropriation ordinance to account for these budget amendments. Budget Amendment Process While budgets are prepared at the operational line item level, and approved by Council at the fund line item level, budget amendments are brought before Council, per the Purchasing Policy and Procedures approved in 2016, for unbudgeted items over $6,500. Budgetary Controls Without proper internal financial controls the budget document will not serve its role as a guidance tool for City programs and projects. To this end, the Finance Department prepares monthly reports which are reviewed by the Finance Director, respective Department Directors, and the City Administrator. These monthly reviews provide, at a minimum, an opportunity to make operational adjustments throughout the year as necessary. Any deviations from the fund budgetary amounts are discussed in this document and, when necessary, solutions are presented. Quarterly financial reports are also transmitted to the City Council via a City Council Meeting Consent Agenda to ensure that the elected body is consistently apprised of the status of municipal revenues and expenditures. Preparation to Achieve the Government Finance Officers Association (GFOA) Budget Award Beginning with the FY15/16 Budget, the City Administration committed to undertaking continuous improvements to the annual budget document that achieves the highest quality and reflects both the guidelines established by the National Advisory Council on State and Local Budgeting and the GFOA best practices on budgeting. While some of these improvements are subtle, or related to unseen operational modifications, others are more visible – such as the redevelopment of the budget to its current form aimed at providing the reader with a more understandable and transparent document. 14 Budget Process Timeline August 2018 – January 2019 Development of Annual 5-year Capital Improvement Program Wednesday, January 2, 2019 City Administrator, Finance Director distributes worksheet and instructions for budget preparation to Department Directors Friday, January 25, 2019 Department Directors submit budget requests to City Administrator and Finance Director February 4-February 8, 2019 City Administrator and Finance Director review budget requests with respective Department Directors February 11-March 1, 2019 Preparation of the Proposed FY19/20 Budget Monday, March 4, 2019 Transmit Proposed FY19/20 Budget to Finance and Personnel Committee and City Council (operating funds) Monday, March 11, 2019 Finance and Personnel Committee Meeting to discuss Proposed FY19/20 Budget Document (operating funds) Monday, March 18, 2019 Transmit Proposed FY19/20 Budget to Finance and Personnel Committee and City Council (all funds) Monday, March 25, 2019 Finance and Personnel Committee Meeting to discuss Proposed FY19/20 Budget (all funds) Monday, April 8, 2019 Final Proposed FY19/20 Budget - including all narratives, charts, supplemental information - transmitted to City Council for review and posted on City’s Website (www.ci.mchenry.il.us) Monday, April 15, 2019 Regular City Council Meeting reserved for review of the Final Proposed FY19/20 Budget April 29, 2019 Final Revised FY19/20 Budget adopted by City Council 15 Budget Process Timeline CIP Creation CIP Review & Finalization Property Tax Levy Budget Creation Budget Review, Finalization, and Adoption Aug -17 Sept - 17 Oct – 17 Nov – 17 Dec – 17 Jan -18 Feb -18 Mar -17 Apr – 18 May - 18 16 City of McHenry Organizational Chart Mayor and City Council Office of the City Administrator Parks & Recreation Parks Maintenance Recreation Center Aquatic Center Recreation Programs Community Development Planning & Zoning Commercial Inspections Residential Inspections Code Enforcement Municipal Center Maintenance Economic Development Finance Accounts Payable Accounts Receivable Utility Billing Administrative Adjudication Public Works Streets Division Water Division Wastewater Division Utility Maintenance Division Human Resources Police Operations Division Support Services Division NERCOM Dispatch Information Technology City Attorney City Clerk Deputy City Clerk/Executive Assistant 17 Personnel Summary The following table provides a summary overview of the staffing level of the municipality for the previous five (5) fiscal years and identifies the proposed staffing level for FY19/20. The increase in staffing levels in the General Fund from FY15/16 to FY17/18 of 15.42 employees was primarily due to the development of the consolidated 911 dispatch center (NERCOM). During this time period, ten (10) new dispatchers and one (1) civilian supervisor have been hired to fully staff this facility. Importantly, the City of McHenry is responsible for only 46.8% of NERCOM personnel costs due to partnerships with the City of Woodstock, City of Harvard and the McHenry Township Fire Protection District which, through center revenues, pay the remainder of the costs. Prior to this consolidation, the General Fund totaled 111.98 employees - 20.57 employees LESS than FY07/08 when measures were taken to reduce staffing due to the recession. Staffing identified in the Recreation Center and Water and Sewer Funds is financed by revenues generated by these funds. Authorized Personnel Change from Prior FY FY19/20 Proposed FY 18/19 FY 17/18 FY 16/17 FY 15/16 FY 14/15 FY 13/14 General Fund Administration 0.00 3.00 3.00 6.00 6.00 6.00 6.00 8.00 Elected Officials 0.00 0.00 0.00 0.00 0.00 1.00 1.00 1.00 Community Development 1.00 7.50 6.50 7.90 7.90 5.50 5.50 5.50 Finance Department (1.00) 5.00 6.00 5.00 5.00 4.60 4.60 4.60 Human Resource Department 1.00 2.00 1.00 0.00 0.00 0.00 0.00 0.00 Economic Development Department (1.00) 2.00 3.00 0.00 0.00 0.00 0.00 0.00 Police Department 2.00 54.75 52.75 52.75 51.75 61.88 60.88 60.88 NERCOM (Dispatch) 1.00 23.25 22.25 22.25 12.25 0.00 0.00 0.00 Public Works Administration 0.00 3.50 3.50 3.50 4.50 2.00 2.00 2.00 Public Works Streets 0 19.00 19.00 19.00 18.00 18.00 19.00 18.00 Parks and Recreation 0.25 9.50 9.25 11.00 11.00 13.00 12.00 10.00 Total General Fund 3.25 129.5 126.25 127.40 116.40 111.98 110.98 109.98 Recreation Center Fund (.25) 2.00 2.25 1.00 1.00 0.00 0.00 0.00 Information Technology Fund 0.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 Water and Sewer Fund Water Division 0.00 5.50 5.50 5.50 5.50 4.50 9.50 9.50 Wastewater Division 8.00 8.00 8.00 9.00 7.00 7.00 10.00 9.00 Utility Division 8.00 8.00 8.00 8.00 9.00 9.00 0.00 0.00 Total Water and Sewer Fund 0.00 21.50 21.50 22.50 21.50 19.50 19.50 18.50 Total City of McHenry 3.00 155.00 152.00 152.90 140.90 133.48 132.48 130.48 Population 26,992 26,992 26,992 26,992 26,992 26,992 Employees per 1,000 Population 5.67 5.66 5.22 4.95 4.91 4.83 18 Fund Structure Overview The accounting system and the budget appropriation process are structured according to the basic guidelines established by the Government Finance Officers Association (GFOA) of the United States and Canada. The format includes the basic funds and fund types which follow. The City’s governmental funds are as follows: General Fund (100s) This fund accounts for all transactions of the city that pertain to the general administration of the city and the services traditionally provided to its citizens. This includes Administration, Elected Officials, Community Development, Finance, Police, Public Works Administration, Streets, and Parks and Recreation. Special Revenue Funds (200s) These funds are utilized to account for revenues derived from specific sources which are usually required by law or regulation to be accounted for as separate funds. For the City of McHenry these funds include the Tourism Fund, Pageant Fund, Band Fund, Civil Defense Fund, Alarm Board Fund, Audit Fund, Annexation Fund, Motor Fuel Tax Fund, Developer Donation Fund, and Tax Increment Fund. Debt Service Fund (300) This fund accounts for the accumulation of revenues for and payment of principal and interest on general obligation long term debt. Capital Improvements Fund (440) and Capital Equipment Fund (450) These funds are utilized to account for financial resources to be used for the acquisition or construction of capital facilities or other major fixed assets. The City’s business-type funds include the following: Enterprise Funds (500s) These funds are utilized to account for operations and activities that are financed and operated in a manner similar to a private business enterprise, and where the cost of providing goods and services to the general public on a continuing basis is expected to be recovered primarily through user charges. The City has also established Enterprise Funds when it was advantageous to segregate revenues earned and expenses incurred for an operation for purposes of capital maintenance, public policy, management control or accountability. Enterprise Funds for the City include the Water and Sewer Fund, Capital Development Fund, Utility Improvements Fund, and Marina Operations Fund. Internal Service Funds (600s) These funds are established to finance and account for services and/or commodities furnished by one department or agency to other departments or agencies of the city. The Internal Service Funds of the City are the Employee Insurance Fund, Risk Management Fund, and Information Technology Fund. 19 The City’s other funds include the following: Fiduciary Funds (700s) These funds are used to account for resources held for the benefit of parties outside the city. The fiduciary funds of the city are the Employee Flexible Spending Fund, Developmental Escrow Fund, Retained Personnel Fund, Revolving Loan Fund, and the Police Pension Trust Fund. Accounting for the financial activities of the City and the budget appropriation process are also presented according to classifications required by the State of Illinois. Revenues are credited to individual fund types while expenditures/expenses are recorded according to functional areas within specific funds for budgetary control purposes. The following functional areas are included in the budget: General Government This function provides for the operation of the government and assures the general administration of the municipality. Activities included in this function also include Economic Development, Human Resources, Information Technology and Municipal Center Building and Grounds Maintenance. Community Development The overall mission of this function is to protect and promote the health, welfare, safety and quality of life of McHenry Citizens, property owners, visitors and commercial interests through the development and implementation of the City’s adopted ordinances and policies. Planning and development activities are also included within this function. Finance This function applies modern financial management practices to ensure that the City is able to deliver services effectively and efficiently on a sustained basis. Activities included in this function are reporting financial transactions, billing and collecting money, accounts payable, managing cash and investments, preparing the annual financial report, and developing the budget and financial forecasts. Public Safety This function provides for services to reduce the amount and effects of external harm to individuals and damage to property, and in general to promote an atmosphere of personal security from external events. Public Works This function provides for safe and well-maintained infrastructure for the City. Activities included in this function are public works administration, roadway maintenance, snow and ice control, street cleaning, traffic control and engineering. Parks and Recreation This function promotes the general well-being of the City and encourages the fullest development of cultural and educational potentials of the citizens in the community. This function includes the activities of general parks, parks and maintenance, downtown maintenance and programs. Debt Service This function provides for the accumulation of resources for and the payment of principal and interest on long-term debt of the City. 20 Capital Projects This function provides for the acquisition or construction of major capital facilities or equipment for the City. Business-Type Activities This function includes activities of the City that are financed in whole, or in part, by fees charged to external parties for goods and services. These activities are accounted for as enterprise funds and include the Water and Sewer and Marina Operations Funds. 21 Chart of Accounts Overview Funds are comprised of various line item accounts. These are separated as “Revenues” and/or “Expenses” as appropriate and are assigned based on the following specific line item designations: Revenues 3010 Property Tax Collection – Amount collected in taxes assessed on real estate. 3020 Property Tax Collection – Road & Bridge – Amount collected in taxes assessed on real estate by the McHenry and Nunda Township Road Districts and disbursed to the City for roads and bridges within the City. 3030 Property Tax Collection – Police Protection – Amount collected in taxes assessed on real estate that funds a portion of police protection expenses. 3040 Property Tax Collection – Retirement – Amount collected in taxes assessed on real estate that funds a portion of retirement expenses. 3050 Property Tax Collection – Liability Insurance – Amount collected in taxes assessed on real estate that funds a portion of liability insurance expenses. 3051 Property Tax Collection – Police Pension – Amount collected in taxes assessed on real estate that funds the actuarial required contribution to the police pension fund. 3110 Personal Property Replacement Taxes – Revenues collected by the State of Illinois and disbursed to the City to replace money that was lost by local governments when their powers to impose personal property taxes on corporations, partnerships, and other business entities was taken away in 1979. These funds are limited to use for retirement funding. 3120 State Sales Taxes – The state collects a 1% tax on a seller’s receipts from sales of tangible personal property for use or consumption that is distributed based on sales in the City. 3121 Home Rule Sales Taxes – The state collects a 0.5% tax on a seller’s receipts from sales of tangible personal property for use or consumption that is distributed based on sales in the City. This home rule sales tax is not charged on sales of vehicles. 3125 Telecommunications Taxes – The state collects an 8% tax that is imposed on intrastate and interstate messages and 1% is distributed to the City. 3130 State Income Taxes – Amount collected in taxes imposed on financial income generated by all entities within the State. The State distributes 8% of the net collections of all income tax received from individuals, trusts, and estates and 9.14% of the net collections of all income tax received from corporations to local governments based on the population in proportion to the total state population. 3140 Pull Tabs – Amount collected by the State and disbursed to the City for operator licenses and taxes on gross proceeds of pull tabs and jar games. 22 3141 Inter-Track Wagering – Amount collected for a 1% tax collected on the handle at Trackside McHenry Off Track Betting establishments within the City. 3142 Hotel/Motel Taxes – Amount collected for a 5% tax assessed on the rental or leasing charges for hotel or motel rooms. 3150 Motor Fuel Tax Allotment – Taxes collected on gasoline and diesel fuel collected by the State and disbursed to the City based on the population. 3210 Interest Income – Interest earned on cash temporarily held in checking accounts, certificates of deposits, or other investments. 3310 Liquor Licenses – Amount paid by establishments within the City that hold valid liquor licenses. 3320 City Licenses – Amount collected from businesses within the City for licenses for massage parlors, athletic exhibitions for profit, billiard and pool halls, carnivals, circuses, exhibitions, motion pictures and theatricals, public dance halls, skating rinks, bowling alleys, and mechanical amusement. 3330 Vehicle Stickers – Amount paid annually by residents for each licensed motor vehicle owned and operated by them. 3350 Video Gambling Licenses – Amount paid annually by each private business and terminal operator for a video gambling license. Also includes the amount disbursed by the State of Illinois for the City’s portion of the video gaming tax. 3410 Permits – Amount collected to issue a building permit for miscellaneous improvements such as roof repairs, siding repairs, fences, etc. 3420 Plumbing Inspections – Amount collected for the inspection of the connection to a water main through a permit fee. 3430 Zoning & Plat Fees – Amount collected for residents or business owners to have a hearing before the planning & zoning commission for items like conditional use permits, variances, etc. 3505 Traffic Fines – Amount collected by the McHenry County Circuit Clerk’s office and forwarded to the City for traffic fines that occurred within the City. 3510 Parking Fines – Amount collected in fines for parking violations. 3515 Police – Accident Reports – Amount collected for administrative fees to furnish accident reports. 3520 Police – Field Reports – Amount collected for administrative fees to furnish field reports. 3525 Drug Asset Forfeitures – Amount collected through the sale of assets that were forfeited. 3530 DUI Fines – Amount collected by the McHenry County Circuit Clerk’s office and forwarded to the City for DUI charges. 23 3532 Overweight Truck Permits – Amount collected for the issuance of overweight truck permits. 3536 Police Bail Bond Processing Fees – Amount collected in fees to process bail paperwork. 3537 Police Impound Fees – Amount collected as an administrative penalty for a motor vehicle that is used in connection with the following driving violations such as driving under the influence, driving while license is suspended or revoked, no valid driver’s license, etc. 3538 Warrant Execution – Amount received from other governmental agencies for the execution of a warrant by the City’s police department. 3539 Electronic Citation – Amount collected by the McHenry County Circuit Clerk and forwarded to the City for electronic citation. 3540 Vehicle License Fines – Amount collected for fines for vehicle stickers that are purchased after the due date of June 30th. 3545 Vehicle Fund Fines – Amount collected by the McHenry County Circuit Clerk and forwarded to the City for vehicle court supervision fines. 3610 Sales – Water/Sewer – Amount collected for water and sewer usage based on meter readings charged at a per 1,000 gallon rate. 3615 Base Charge – Capital – Amount collected through the utility bill for water and sewer base fees that will be retained and used for development and repairs to the utility capital system. 3620 Penalties – Amount collected for utility bills that are paid after the due date. 3630 Hookup/Connection Fees – Amount collected for permit fees that are charged for the connection to the water and sewer system. 3631 Parks & Recreation Programs – Amount collected for programs offered through the parks and recreation department. 3632 Concessions – Amount collected at concession stands at City parks as well as at the Recreation Center. 3633 Beach Programs – Amount collected for daily admission at the McCullom Lake Beach. 3634 Swimming Pool – Amount collected for admission to the Merkel Aquatic Center. 3640 Water Meter Sales – Amount collected for the initial or replacement water meter. 3641 Babysitting – Amount collected for childcare services offered at the Recreation Center. 3642 Room Rentals – Amount collected at the Recreation Center for community room rentals. 3643 Birthday Parties – Amount collected for birthday parties that are held and run by personnel at the Recreation Center. 24 3644 Sponsorship/Advertisement – Amount collected for sponsors or advertisements at the Recreation Center. 3645 Annual Membership – Amount collected for membership fees for the Recreation Center. 3646 Short-Term Membership – Amount collected for temporary membership fees for the Recreation Center. 3647 Daily Admissions – Amount collected for daily membership fees for the Recreation Center. 3648 Punch Passes – Amount collected for 10 and 20 punch passes that act as daily membership to the Recreation Center as well as attendance at specialty fitness classes held at the center. 3649 Miscellaneous Fees – Amount collected at the Recreation Center for miscellaneous fees such as workout logging devices, and other items sold at the center. 3650 Fitness Classes – Session Based – Amount collected for fitness classes held at the Recreation Center. 3651 Small Group Personal Training – Amount collected for Recreation Center members that sign up for a small group personal training session. 3652 Personal Training – Amount collected for Recreation Center members that sign up for personal training services. 3653 Elective Participant Premium – Amount collected for City provided health insurance for retired employees or former employees on COBRA. 3660 Debt Service Fees – Amount collected from sewer users to retire debt issued by the City. 3665 Debt Service Fees – IEPA Loan – Amount collected from sewer users to retire an Illinois Environmental Protection Agency loan used to consolidate the Central and South Wastewater Treatment Plants. 3682 Mowing/Weeds – Amount collected for the cutting or removal of weeds and plant growth in excess of 8 inches which is paid for by the owner of the property. 3683 Alarm Board Revenue – Fines collected on false alarms after having six free alarms. 3711 Meeting Fees – Planning & Zoning - Reimbursements by developers and zoning petitioners for the Planning & Zoning Commission hearing attendance collected in the Retained Personnel Fund. 3715 Annexation Income – Amount collected as determined by the annexation agreement. 3720 Operating Fees – Amount collected through permit fees on behalf of the school districts, fire district and library district from the developer to pay its fair share of public improvements that may be required because of the new development. These fees are paid out to the districts monthly. 3730 Engineering Fees – Reimbursements by developers for expenses paid for contracted engineering advice and service in the Retained Personnel Fund. 25 3735 Legal Fees – Reimbursements by developers for expenses paid for legal fees in the Retained Personnel Fund. 3740 Fees – Developers – Miscellaneous – Reimbursements by developers for miscellaneous expenses such as recording fees in the Retained Personnel Fund. 3745 Gravel Mining/Annexation Agreement – Amount received per the annexation agreement for the gravel pit within the City. 3750 Refunds – Developers – Amount paid by developers for a retained personnel deposit that is over and above the expenses and will be refunded to the developer. 3760 Received from Developers – Amount collected from developers as contributions to public improvements such as signs, traffic signals, intersection improvements, etc. 3775 Developer Donations – Schools – Amount collected through permit fees on behalf of the school districts from the developer to pay its fair share of public improvements that may be required because of the new development. These fees are paid out to the school districts annually. 3780 Developer Donations – Parks – Amount collected through permit fees for parks from the developer to pay its fair share of public improvements that may be required because of the new development. 3785 Developer Donations – Library – Amount collected through permit fees on behalf of the library district from the developer to pay its fair share of public improvements that may be required because of the new development. These fees are paid out to the library district annually. 3790 Developer Donations – Fire – Amount collected through permit fees on behalf of the fire district from the developer to pay its fair share of public improvements that may be required because of the new development. These fees are paid out to the fire district annually. 3815 Donations – Amount donated to the City for various reasons. 3830 Employer Contributions – Actuarial contrived amount that the City contributes to the Police Pension Fund. 3831 Employee Contributions – Amount collected from employees for benefits provided by the City. 3832 Cable Franchise Fees – Amount charged to a cable television company for the use of public right-of-ways. 3835 Garbage Bags – Amount collected for the sale of garbage stickers to residents. 3845 Rental Income – Rent charged for the use of municipal properties including Main Street Station, Hickory Creek Farm, farmlands, water towers, the marina, etc. 3881 Reimbursement – Communication Desk – Amount charged to agencies that the City provides dispatching services for. 26 3882 Reimbursement – Miscellaneous – Reimbursement for expenses for city services provided such as school resource officers, traffic control, snowplowing, etc. 3885 Reimbursements – Property Insurance – Insurance payments for property damage within the City. 3890 Miscellaneous Income – Revenue that does not fit into other categories such as handicap placards, lien fees, collection fees, adjudication court fees, etc. 3915 Bond Interest Rebate – Interest rebate issued to the City from the Department of the Treasury Internal Revenue Service for Recovery Zone Economic Development Bonds and Build America Bonds. 3920 Sale of Fixed Assets – Proceeds from the sale of municipal owned fixed assets. 3969 Transfer – TIF – Internal Fund Transfer from the TIF Fund to cover debt service fees. 3970 Charges for Services – Internal Fund Transfer from the Water/Sewer Fund to cover administrative costs for the issuance of utility bills. 3971 Transfers – Annexation Fund – Internal Fund Transfer from the Annexation Fund to cover debt service fees. 3972 Transfers – Recreation Center Fund – Internal Fund Transfer from the Recreation Center Fund to cover debt service fees. 3975 Transfers – General Fund – Internal Fund Transfer from the General Fund to cover debt service fees, capital expenses, insurance expenses, and information technology expenses. 3978 Transfers – Water/Sewer Fund – Internal Fund Transfer from the Water/Sewer Fund to cover debt service fees, utility division expenses, insurance expenses, and information technology expenses. 3986 Transfers – Motor Fuel Tax Fund – Internal Fund Transfer from the Motor Fuel Tax Fund to cover debt service fees. 3994 Transfers – SSA #4 – Internal Fund Transfer from the SSA #4 Fund to cover expenses for the Lakewood Road Utility. 3999 Transfers – Other Funds – Internal Fund Transfer from miscellaneous special revenue funds and internal service funds to cover items such as fireworks, risk management, etc. 27 Expenses 4010 Salaries – Regular – Salary expense for employees who work 40 hours or full time. 4020 Salaries – Sworn – Salary expense for sworn police department employees who work 40 hours or full time. 4030 Salaries – Regular Part-time – Salary expense for employees who work less than 40 hours, but are employed throughout the calendar year. 4050 Salaries – Regular Overtime – Salary expense paid to non-exempt non-sworn employees at one and one-half times or two times the employee’s regular hourly rate for all hours worked in excess of forty hours per week. 4055 Salaries – Regular Sworn Overtime - Salary expense paid to non-exempt sworn employees at one and one-half times the employee’s regular hourly rate for all hours worked in excess of forty hours per week. 4060 Salaries - Snow Removal Overtime - Salary expense paid to non-exempt non-sworn employees at one and one-half times or two times the employee’s regular hourly rate for all hours worked in excess of forty hours per week for snowplowing. 4080 Salaries – Career Ladder – Salary expense paid to sworn police department employees for on-call and investigator stipend pay. 4100 Salaries – Seasonal/Part-time – Salary expense for employees who work less than 40 hours per week and can be seasonal help. 4220 Salaries – Boards & Commissions – Salary expense for the Mayor, Council members, the City Clerk and the Planning and Zoning Commissioners. 4310 Health Insurance – Expenses for employee group medical insurance premiums. 4320 Dental Insurance – Expenses for employee group dental insurance premiums. 4330 Life Insurance – Expenses for employee group life insurance premiums for city provided coverage at $30,000. 4340 Vision Insurance – Expenses for employee group vision insurance premiums. 4410 Contribution - FICA – The employer contribution of Social Security and Medicare, which is currently at 7.65% of eligible wages. 4420 Contribution IMRF – The employer contribution of IMRF for all employees covered under the IMRF program. 4430 Contribution Police Pension – The amount provided through property tax collection for the Police Pension Fund. This amount is determined by an actuarial study conducted on an annual basis. 28 4510 Uniform Allowance – Expenses for uniforms and personal protective equipment provided for those public service employees required to wear uniforms while performing their jobs. 4910 Retirement Benefits – Retirement benefits paid to police pension beneficiaries who apply for a regular pension. 4920 Disability Benefits – Retirement benefits paid to police pension beneficiaries who have been found to have a duty disability. This type of pensions must be approved by the Police Pension board. 4930 Survivor Benefits – Retirement benefits paid to the surviving spouse of a police pension beneficiary. 4940 Non-Duty Disability Benefits - Retirement benefits paid to police pension beneficiaries who have been found to have a non-duty disability. This type of pensions must be approved by the Police Pension board. 4990 Contribution Refund – Refund of police pension contributions made by a sworn employee that is no longer employed with the City. The employee must request a refund from the pension fund. 5110 Contractual Services – Expenses that are based on a contract or are paid on a monthly basis such as mowing, PACE fees, copier lease payments, bank service charges, miscellaneous building charges, etc. 5200 Contract Custodial – Expenses for monthly janitorial serves at the Recreation Center. 5215 Retention/Promotion – Expenses for promotional materials for the Recreation Center. 5220 Engineering Fees – Expenses paid for contracted engineering advice and service in the Retained Personnel Fund, which are reimbursed by the developers. 5230 Legal Services – Expenses for contracted legal advice and services. 5245 Health HRA Reimbursement – Employee health insurance reimbursement expenses paid by the city that covers expenses above the in-house set deductible up to the insurance carrier’s deductible. 5310 Postage & Meter – Expenses for postal related services such as stamps, bulk mailings, overnight deliveries, UPS, etc. 5320 Telephone – Expenses for telephone lines, alarm circuits, and cellular phone services. 5321 Cable/TV – Expenses for monthly cable television service at the Recreation Center. 5330 Printing & Publishing – Expenses for advertisements such as employee recruitment ads, bid notices, legal notices, and other required notices. Expenses also for the city newsletter and printing of vehicle sticker notices and utility bills. 5370 Repair & Maintenance – Expenses for routine maintenance on municipal vehicles. 29 5375 Repair & Maintenance – Equipment – Expenses for routines maintenance on municipal equipment. 5380 Repair & Maintenance – Utility System – Expenses for routine maintenance on municipal utility systems. 5410 Dues – Expenses for membership dues for various professional organizations. 5420 Travel Expenses – Expenses paid for travel related costs such as mileage, tolls, per diem, lodging for conferences and training for employees on municipal business. 5430 Training – Expenses including registration fees, tuition, etc. for attendance at professional conferences and meetings for professional development. 5440 Tuition Reimbursement – Expenses for tuition that covers successful completion of course work with proof of a passing grade or certification. 5450 Publications – Expenses for books, magazines, periodicals, pamphlets, maps, subscriptions, training materials, etc. used for professional development. 5510 Utilities – Monthly expenses for utilities used by municipal buildings including electric and natural gas. 5520 Street Lighting – Monthly expenses for electric usage for street lights throughout the city. 5580 Disposal – Expenses for sludge removal at the wastewater plant. 5600 Credit Card/Bank Fees – Expenses for monthly credit card and banking fees charged to the Recreation Center. 5950 MCMRMA Fees – Expenses for McHenry County Municipal Risk Management Agency annual fees for insurance that covers unemployment, workers compensation, car insurance, liability, fire, theft, property damage, etc. 5960 Insurance Premiums – Miscellaneous – Expenses for notary bonds and public official bonds. 5980 Property Damage – Expenses to repair municipal property damage that will be covered with insurance. 6110 Materials & Supplies – Expenses for operating materials & supplies such as custodial cleaning supplies, garbage stickers, miscellaneous building supplies, police training supplies, ammunition, badges, etc. 6111 Supplies – Custodial – Expenses for contracted custodial services at the Recreation Center. 6120 Supplies – Childcare – Expenses for small toys, books, and art supplies for the childcare room at the Recreation Center. 6130 Supplies – Safety – Expenses for first aid and other miscellaneous safety items for the Recreation Center. 30 6141 Office Furniture/Equipment – Expenses for desks, chairs, and other small equipment at the Recreation Center. 6142 Fitness Equipment – Expenses for fitness balls, bands, mats, cardio equipment, etc. at the Recreation Center. 6210 Bulk Office Supplies – Expenses for pens, pencils, paper, staples, binders, folders, calendars, ink, etc. 6250 Gasoline & Oil – Expenses for gasoline and oil used for municipal vehicles. 6270 Small Equipment & Tools – Expenses for equipment and tools used to maintain municipal equipment and personnel such as body armor, evidence equipment, weed trimmers, shop tools, etc. 6290 Safety & Personal Protection Equipment – Expenses for personal protective equipment provided to employees such as goggles, boots, chest waders, etc. 6310 Police – Canine Unit – Expenses for training, food, veterinarian bills, etc. for the sworn canine officer. 6340 Police – Forfeiture Expenses – Expenses that are paid for using police forfeiture funds that must be tracked separately. 6920 Special Events – Expenses for community festivals and events such as the fireworks, community pool party, daddy/daughter date night, etc. 6940 Administrative Expenses – Expenses for notary fees, secretary of state fees for vehicles, county recording fees, holiday lighting, real estate taxes, etc. 6945 Development Expense – Sales tax incentive payments based on the terms of the development agreement. 6950 Forestry – Expenses for the tree program including trees, watering, chainsaws for trimming, tree removal, etc. 6960 Miscellaneous Expenses – Expenses for miscellaneous items not previously covered such as insurance processing fees. 6961 Miscellaneous Refunds – Expenses for refunds of retained personnel deposits that are not used for development expenses. 6965 Reimbursements – Flexible Spending – Expenses paid to employees from their flexible spending accounts for qualified medical expenses. 6970 Distributions – Schools – Permit fees that are collected on behalf of the school districts from the developer to pay its fair share of public improvements that may be required because of the new development. These fees are paid out to the school districts annually. 31 6980 Distributions – Library - Permit fees that are collected on behalf of the library district from the developer to pay its fair share of public improvements that may be required because of the new development. These fees are paid out to the library district annually. 6990 Distributions – Fire - Permit fees that are collected on behalf of the fire district from the developer to pay its fair share of public improvements that may be required because of the new development. These fees are paid out to the fire district annually. 7100 Bond Principal – Amount paid for principal payment on bonds. 7110 Capital Lease Principal Payments – Amount paid for principal payments on capital leases. Capital leases are used when the item is going to be purchased when the term of the lease is over. 7200 Bond Interest – Amount paid for interest payments on bonds, which are charges paid on the principal based on an agreed upon rate. 7300 Fees – Paying Agent – Amount paid to an escrow agent for various filings for the issued bonds. 8100 Land Acquisition – Amount used for the purchase of land. 8200 Buildings – Amounts paid for the acquisition and improvements to municipal buildings. 8300 Equipment – Amount paid for the acquisition of equipment costing $5,000 or more such as machines, shop equipment, playground equipment, mowers, etc. 8400 Vehicles – Amount paid for the acquisition of vehicles and the necessary equipment to use the vehicle. 8500 Utility System – Amount paid for the acquisition and improvements to the water and sewer utility systems. 8600 Streets – Amount paid for improvements to municipal streets. 8800 Park Improvements – Amount paid for improvements to municipal parks. 8900 Public Improvements – Amount paid for the acquisition and improvements to other miscellaneous municipal capital items. 9510 Depreciation – Amount charged as an expense for an expired portion of a fixed asset. 9901 Transfer – General Fund – Internal Fund Transfers from the Tourism Fund to cover miscellaneous special events with hotel/motel taxes. 9904 Transfer – Debt Service Fund – Internal Fund Transfers from various City funds to cover annual bond interest and principal costs for City projects. 9920 Purchase Service – Risk Management – Internal Fund Transfers from General Fund Departments as well as Water/Sewer Fund Departments and Information Technology Fund to cover the insurance premiums for McHenry County Municipal Risk Management Agency. These premiums 32 cover unemployment, workers compensation, car insurance, liability, fire, theft, property damage, etc. 9921 Purchase Service – Billing General Fund – Internal Fund Transfers to the General Fund for the water and sewer portion of costs that are paid for by the finance department for billing administrative duties and water/sewer bill mailings. 9922 Purchase Service – Information Technology – Internal Fund Transfer to cover information technology expenses for all departments within the city. These expenses include salaries and benefits for Information Technology employees as well as computers, supplies, and software used in all City departments. 9923 Purchase Service – Audit Fund – Internal Fund Transfer to cover the external auditing annual fees for all funds within the City. 9930 Transfer – Water/Sewer Fund – Internal Fund Transfer to the Water and Sewer Divisions to cover Utility Division expenses. 9936 Transfer – Utility Improvement Fund – Internal Fund Transfer from the Water and Sewer Divisions to cover Capital expenses for the Utility System. 9942 Transfer – Capital Improvements Fund – Internal Fund Transfer from the General Fund Departments to cover capital charges for items that are over $10,000 and have a useful life of over 5 years. 9944 Transfer – Band Fund – Internal Fund Transfer from the General Fund to cover the music in the park weekly event. This covers the expenses for the municipal band as well as community bands that perform. 9945 Transfer – Civil Defense Fund – Internal Fund Transfer from the General Fund for expenses to train personnel and maintain the early warning system equipment to protect and defend the City from natural disasters or man-made environmental disasters through early warning and public notification systems. 9946 Transfer – Capital Equipment Fund - Internal Fund Transfer from the General Fund Departments to cover capital vehicle and equipment charges for items that are over $10,000 and have a useful life of over 5 years. 33 Fiscal Year 2019/2020 Annual Budget Summary of Revenues & Expenditures – All Funds 34 Summary of Proposed Revenues - All Funds 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 A B C D E F Revenue Budget 2019/20 All Funds Total Net Revenue Transfers Revenue General Fund $24,060,427 $614,887 $23,445,540 Special Revenue Funds Band Fund 12,000 12,000 0 Civil Defense Fund 6,000 6,000 0 Alarm Board Fund 206,500 0 206,500 Audit Fund 39,079 12,653 26,426 Annexation Fund 320,400 0 320,400 Motor Fuel Tax Fund 696,946 0 696,946 Developer Donations 150,000 0 150,000 Developer Donations (Parks)297,000 0 297,000 TIF Fund 501,000 0 501,000 Pageant Fund 2,000 0 2,000 Tourism Fund 226,000 0 226,000 Total Special Revenue Funds 2,456,925 30,653 2,426,272 Capital Project Funds Recreation Center Construction Fund 915,354 81,954 833,400 Special Service Area #1A 0 0 0 Special Service Area #4 16,847 0 16,847 Capital Improvements Fund 70,774 0 70,774 Local Streets Improvements 0 0 0 Capital Equipment Fund 0 0 0 Total Capital Project Funds 1,002,975 81,954 921,021 Debt Service Funds Debt Service Fund 1,293,115 1,279,074 14,041 Total Debt Service Funds 1,293,115 1,279,074 14,041 Proprietary Funds Public Works - Water 2,543,112 0 2,543,112 Public Works - Wastewater 6,084,166 0 6,084,166 Public Works - Utility 1,131,610 1,131,610 0 Capital Development Fund 371,000 0 371,000 Marina Operations Fund 45,350 0 45,350 Utility Improvements Fund 31,847 16,847 15,000 Total Proprietary Funds 10,207,085 1,148,457 9,058,628 Internal Service Funds Risk Management Fund 724,291 698,291 26,000 Information Technology Fund 664,950 664,950 0 Health Insurance Fund 3,487,433 2,989,424 498,009 Total Internal Service Funds 4,876,674 4,352,665 524,009 Fiduciary Funds Medical Flexible Spending Fund 50,000 0 50,000 Revolving Loan Fund 1,500 0 1,500 Police Pension Fund 3,462,421 2,082,421 1,380,000 Development Escrow Fund 25,000 0 25,000 Retained Personnel Fund 75,000 0 75,000 Total Fiduciary Funds 3,613,921 2,082,421 1,531,500 Total All Funds $47,511,122 $9,590,111 $37,921,011 35 Comparison of Budget vs. Proposed Revenues - All Funds 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 A B C D E Revenue Budget All Funds Pecent 2018/19 2019/20 Difference Change General Fund $22,309,740 $24,060,427 $1,750,687 7.8% Special Revenue Funds Band Fund 12,000 12,000 0 0.0% Civil Defense Fund 8,000 6,000 (2,000)-25.0% Alarm Board Fund 200,500 206,500 6,000 3.0% Audit Fund 38,787 39,079 292 0.8% Annexation Fund 85,200 320,400 235,200 276.1% Motor Fuel Tax Fund 700,044 696,946 (3,098)-0.4% Developer Donations 130,000 150,000 20,000 15.4% Developer Donations (Parks)270,000 297,000 27,000 10.0% TIF Fund 401,000 501,000 100,000 24.9% Pageant Fund 1,300 2,000 700 53.8% Tourism Fund 176,000 226,000 50,000 28.4% Total Special Revenue Funds 2,022,831 2,456,925 434,094 21.5% Capital Project Funds Recreation Center Construction Fund 692,500 915,354 222,854 32.2% Special Service Area #1A 0 0 0 0.0% Special Service Area #4 16,847 16,847 0 0.0% Capital Improvements Fund 1,000 70,774 69,774 6977.4% Local Streets Improvements 0 0 0 0.0% Capital Equipment Fund 0 0 0 0.0% Total Capital Project Funds 710,347 1,002,975 292,628 41.2% Debt Service Funds Debt Service Fund 1,657,068 1,293,115 (363,953)-22.0% Total Debt Service Funds 1,657,068 1,293,115 (363,953)-22.0% Proprietary Funds Public Works - Water 2,340,572 2,543,112 202,540 8.7% Public Works - Wastewater 7,724,718 6,084,166 (1,640,552)-21.2% Public Works - Uility 980,938 1,131,610 150,672 15.4% Capital Development Fund 371,000 371,000 0 0.0% Marina Operations Fund 40,200 45,350 5,150 12.8% Utility Improvements Fund 26,847 31,847 5,000 18.6% Total Proprietary Funds 11,484,275 10,207,085 (1,277,190)-11.1% Internal Service Funds Risk Management Fund 729,291 724,291 (5,000)-0.7% Information Technology Fund 634,255 664,950 30,695 4.8% Health Insurance Fund 3,424,222 3,487,433 63,211 1.8% Total Internal Service Funds 4,787,768 4,876,674 88,906 1.9% Fiduciary Funds Employee Flexible Spending Fund 60,000 50,000 (10,000)-16.7% Revolving Loan Fund 1,650 1,500 (150)-9.1% Police Pension Fund 3,399,703 3,462,421 62,718 1.8% Development Escrow Fund 25,000 25,000 0 0.0% Retained Personnel Fund 75,000 75,000 0 0.0% Total Fiduciary Funds 3,561,353 3,613,921 52,568 1.5% Total All Funds $46,533,382 $47,511,122 $977,740 2.1% 36 Summary of Revenues and Other Financing Sources - All Funds Source 2018/19 2019/20 Dollar Change % Change Property Taxes 5,385,632 5,485,632 100,000 1.86% Sales Taxes 9,672,507 10,666,375 993,868 10.28% Intergovernmental Revenue 3,559,053 3,820,281 261,228 7.34% Licenses & Fines 1,287,300 1,267,000 (20,300) -1.58% Services Charges 12,695,572 11,420,889 (1,274,683) -10.04% Interest Income 1,016,200 1,149,200 133,000 13.09% Bond Proceeds - - - 0.00% Transfers 9,559,870 9,590,111 30,241 0.32% Other Financing Sources 3,357,248 4,111,634 754,386 22.47% Total 46,533,382 47,511,122 977,740 2.10% Property Taxes 12% Sales Taxes 22% Intergovernmental Revenue 8%Licenses & Fines 3% Services Charges 24% Interest Income 2% Bond Proceeds 0% Transfers 20% Other Financing Sources 9% 2019/20 Budget Revenues by Source 37 Summary of Proposed Expenditures - All Funds 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 A B C D E F G Expense Budget 2019/20 All Funds Total Net Budget Transfers Budget General Fund Administration $2,360,327 $80,136 $2,280,191 Elected Offices 94,100 6,777 87,323 Community Development 921,054 64,821 856,233 Finance Department 1,743,040 483,391 1,259,649 Human Resources 258,431 8,581 249,850 Economic Development 288,054 14,548 273,506 Police Commission 6,953 0 6,953 Police Department 10,131,379 521,944 9,609,435 Dispatch Department 2,552,387 87,860 2,464,527 Public Works - Administration 442,829 36,032 406,797 Public Works - Streets 3,247,055 104,504 3,142,551 Parks and Recreation 2,498,024 211,995 2,286,029 Total General Fund 24,543,633 1,620,589 22,923,044 Special Revenue Funds Band Fund 15,000 0 15,000 Civil Defense Fund 5,300 0 5,300 Alarm Board Fund 92,000 0 92,000 Audit Fund 40,011 0 40,011 Annexation Fund 615,000 535,000 80,000 Motor Fuel Tax Fund 1,034,305 399,229 635,076 Developer Donations 150,000 0 150,000 Developer Donations (Parks)511,500 0 511,500 TIF Fund 310,735 222,735 88,000 Pageant Fund 1,900 0 1,900 Tourism Fund 215,671 99,000 116,671 Total Special Revenue Funds 2,991,422 1,255,964 1,735,458 Capital Project Funds Recreation Center Construction Fund 905,160 161,428 743,732 Special Service Area #1A 0 0 0 Special Service Area #4 16,847 16,847 0 Capital Improvements Fund 953,221 0 953,221 Local Streets Improvements 0 0 0 Capital Equipment 0 0 0 Total Capital Project Funds 1,875,228 178,275 1,696,953 Debt Service Funds Debt Service Fund 1,657,965 0 1,657,965 Total Debt Service Funds 1,657,965 0 1,657,965 Proprietary Funds Public Works - Water 2,874,277 1,142,569 1,731,708 Public Works - Wastewater 6,295,380 785,379 5,510,001 Public Works - Utility 1,138,860 0 1,138,860 Capital Development Fund 0 0 0 Marina Operations Fund 43,000 0 43,000 Utility Improvements Fund 0 0 0 Total Proprietary Funds 10,351,517 1,927,948 8,423,569 Internal Service Funds Risk Management Fund 899,561 21,847 877,714 Information Technology Fund 664,948 6,857 658,091 Health Insurance Fund 3,487,032 0 3,487,032 Total Internal Service Funds 5,051,541 28,704 5,022,837 Fiduciary Funds Employee Flexible Spending Fund 50,000 0 50,000 Revolving Loan Fund 0 0 0 Police Pension Fund 2,105,093 3,775 2,101,318 Development Escrow Fund 25,000 25,000 0 Retained Personnel Fund 75,000 0 75,000 Fiduciary Funds 2,255,093 28,775 2,226,318 Total All Funds $48,726,399 $5,040,255 $43,686,144 38 Comparison of Budget vs. Proposed Expenditures - All Funds 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 A B C D E F G H I Expense Budget 2019/20 Total Total Budgeted Budgeted Expenditures Expenditures Percentage 2018/19 2019/20 Difference Change General Fund Administration $2,334,602 $2,360,327 $25,725 1.10% Elected Offices 100,179 94,100 (6,079)-6.07% Community Development 723,382 921,054 197,672 27.33% Finance Department 2,005,107 1,743,040 (262,067)-13.07% Human Resources Department 164,783 258,431 93,648 0.00% Economic Development Department 337,181 288,054 (49,127)0.00% Police Commission 6,953 6,953 0 0.00% Police Department 9,582,015 10,131,379 549,364 5.73% Dispatch Department 2,482,908 2,552,387 69,479 2.80% Public Works - Administration 449,515 442,829 (6,686)-1.49% Public Works - Streets 3,096,492 3,247,055 150,563 4.86% Parks and Recreation 2,265,575 2,498,024 232,449 10.26% Total General Fund 23,548,692 24,543,633 994,941 4.23% Special Revenue Funds Band Fund 15,000 15,000 0 0.00% Civil Defense Fund 5,300 5,300 0 0.00% Alarm Board Fund 92,000 92,000 0 0.00% Audit Fund 42,758 40,011 (2,747)-6.42% Annexation Fund 45,000 615,000 570,000 1266.67% Motor Fuel Tax Fund 764,930 1,034,305 269,375 35.22% Developer Donations 130,000 150,000 20,000 15.38% Developer Donations (Parks)509,200 511,500 2,300 0.45% TIF Fund 303,535 310,735 7,200 2.37% Pageant Fund 1,200 1,900 700 58.33% Tourism Fund 114,000 215,671 101,671 89.19% Total Special Revenue Funds 2,022,923 2,991,422 968,499 47.88% Capital Project Funds Recreation Center Construction Fund 1,145,610 905,160 (240,450)-20.99% Special Service Area #1A 0 0 0 0.00% Special Service Area #4A 16,847 16,847 0 0.00% Capital Improvements Fund 773,000 953,221 180,221 23.31% Local Street Improvements Fund 0 0 0 0.00% Capital Equipment Fund 0 0 0 0.00% Total Capital Project Funds 1,935,457 1,875,228 (60,229)-3.11% Debt Service Funds Debt Service Fund 1,661,919 1,657,965 (3,954)-0.24% Total Debt Service Funds 1,661,919 1,657,965 (3,954)-0.24% Proprietary Funds Public Works - Water 2,778,692 2,874,277 95,585 3.44% Public Works - Wastewater 4,423,101 6,295,380 1,872,279 42.33% Public Works - Utility 1,073,514 1,138,860 65,346 6.09% Capital Development Fund 0 0 0 0.00% Marina Operations Fund 43,000 43,000 0 0.00% Utility Improvements Fund 0 0 0 0.00% Total Proprietary Funds 8,318,307 10,351,517 2,033,210 24.44% Internal Service Funds Risk Management Fund 825,351 899,561 74,210 8.99% Information Technology Fund 638,521 664,948 26,427 4.14% Health Insurance Fund 3,429,222 3,487,032 57,810 1.69% Total Internal Service Funds 4,893,094 5,051,541 158,447 3.24% Fiduciary Funds Employee Medical Flexible Spending Fund 60,000 50,000 (10,000)-16.67% Revolving Loan Fund 0 0 0 0.00% Police Pension Fund 2,050,367 2,105,093 54,726 2.67% Development Escrow Fund 25,000 25,000 0 0.00% Retained Personnel Fund 75,000 75,000 0 0.00% Total Fiduciary Funds 2,210,367 2,255,093 44,726 2.02% Total All Funds $44,590,759 $48,726,399 $4,135,640 9.27% All Funds 39 Expenditures by Function - All Funds Expense Budget 2019/20 Function 2017/18 2018/19 2019/20 Dollar Change Percent Change General Government 3,149,240 2,921,571 3,067,115 145,544 4.98% Public Safety 13,320,586 13,615,030 14,244,958 629,928 4.63% Public Works 10,104,060 10,071,100 12,197,917 2,126,817 21.12% Culture and Recreation 2,588,042 2,606,511 2,945,832 339,321 13.02% Capital Projects 2,504,879 3,446,500 3,654,872 208,372 6.05% Comm. & Econ. Dev.1,051,032 1,270,361 1,502,739 232,378 18.29% Debt Service 1,666,722 1,661,919 1,657,965 (3,954) -0.24% Other 4,190,051 4,293,363 4,414,746 121,383 2.83% Total 38,574,612 39,886,355 43,686,144 3,799,789 9.53% *Note: Total does not include interfund transfers All Funds General Government 7% Public Safety 33% Public Works 28% Culture and Recreation 7% Capital Projects 8% Comm. & Econ. Dev. 3% Debt Service 4% Other 10%2019/20 Budget Expenditures by Function* 40 Fiscal Year 2019/2020 Annual Budget General Fund Revenues, Expenditures & Fund Balance Summary 41 General Fund Revenues, Expenditures & Fund Balance Summary General Fund Overview The General Fund represents the core revenue and expense fund for municipal functions. General Fund Revenues are comprised of Intergovernmental sources such as Property Tax, State Sales Tax, Local Sales Tax, State Income Tax, State Replacement Tax, State Pull Tabs, Inter Track Wagering, State Communications Tax, and State Grants; Local Sources such as Franchise Fees, Licenses and Permits, Fines and Forfeitures, Charges for Services, and Interest Income; and Miscellaneous sources such as Donations and Reimbursements for Services. General Fund Expenses include personnel, contractual, supplies and other operating expenses related to the following operating budgets - Administration (100.01), Elected Officials (100.02), Community Development (100.03), Finance (100.04), Human Resources (100.05), Economic Development (100.06), Police Commission (100.21), Police (100.22), Police Dispatch (100.23), Public Works-Administration (100.30), Public Works-Streets (100.33), and Parks and Recreation (100.41). Please reference the spreadsheet found at the end of this section titled “General Fund – Revenues, Expenditures and Fund Balance Summary” for the following discussion. General Fund Revenues, Expenditures and Fund Balance Summary In summary, FY19/20 proposed General Fund Revenues and Expenditures reflect total revenues of $24,060,427 (an increase of $1,750,687 or 7.85%) and total operating expenditures of $22,921,058 (an increase of $798,516 or 3.61%, less capital) – a difference (revenues over expenditures) of $1,139,369. While specifics will be detailed in the discussion that follows, the primary reasons for increases in revenues relate to projections for State and Local Sales Taxes which does include the partial year (10 months) increase of 0.25% in the Local Sales Tax Rate (an increase of $993,368 combined with the existing Sales Tax Receipts), the projection for Video Gaming revenues (an increase of $130,000), the projection for Telecommunication Tax revenues from the partial year (10 months) increase of 2% (an increase of $150,000), Reimbursements related to charges for services from Parks programs and internal fund transfers (a total increase of $54,953), and one time increases to miscellaneous income from Meyer Material Annexation Fees and Police Grant (a total increase of $401,200). These are offset slightly by decreases to revenues due to Licenses and Permits ($128,000), the Franchise Fees ($25,000) and Fines and Forfeiture revenues ($32,300). In regards to expenditures, Personnel costs are proposed to increase by $820,964 (4.89%) due primarily to the proposed addition of four (4) full-time employees from the FY18/19 proposed budget (two sworn Police Officers, one Parks Maintenance Worker, and one Human Resources Coordinator), FOP and IOUE 150 collective bargaining contractual obligations ($246,541), a 1.1% CPI-U and 1.9% merit (3.0% total) wage increase for non-bargaining unit employees ($111,695), and Police Pension costs ($62,718). It should be noted that a portion of the Police Dispatch Center costs are offset by General Fund Revenue increases in the form of reimbursements (Row 22) from dispatch partner agencies and customers. Notably, FY19/20 General Fund Expenditure proposed Contractual costs are $89,194 (4.61%) higher than FY18/19 and Supply costs reflect an increase of $34,925 (4.32%). 42 Finally, the FY19/20 General Fund Expenditures, as identified in this attachment, do not include any transfers for Capital Improvement or Capital Equipment projects except expenditures for those projects that were approved in the FY18/19 Budget and for which funds are being rebudgeted (Column M, Row 33). As discussed as part of the Capital Improvement Program process, Capital Improvement or Capital Equipment projects implemented in FY19/20 will be funded through the General Fund Balance or Capital Improvement Fund - Assigned for Capital, which was transferred with the FY16/17 audit less the amount spent on FY17/18 and FY18/19 capital expenses. All general fund capital projects that are identified for funding in FY19/20 are discussed on pages 17 and 18 of this memorandum. Carrying the General Fund Revenue and Expenditure estimates through the end of the fiscal year (April 30th), it is projected that the total General Fund Balance will be $7,325,415 (Column L, Row 43). As defined in the Fund Balance and Reserve Policy, the estimated required 120 day General Fund Balance Reserve would be $7,640,353, which highlights that the projected General Fund Balance is approximately $314,938 short of the required General Fund Balance. As will be identified, the projected General Fund Balance will be reduced by capital improvement projects to be funded through the General Fund Balance (Lakeland Park Drainage Improvements, Police Facility Improvements, Barreville Rd. Culver Repair, Ramble Road Storm Sewer, Boone Creek Dredging Project, and the Merkel Aquatic Center Improvements). Further, a reminder that the FY18/19 Estimated General Fund Revenues and Expenditures are that, estimates, and economic factors or unforeseen expenses could change these dollar amounts before the end of the current fiscal year. General Fund Revenues – FY18/19 Budgeted, FY18/19 Estimated, FY19/20 Proposed General Fund Revenues are derived from a number of sources – taxes, video gaming, licenses and permits, fines and forfeitures, franchise fees, charges for services, reimbursement for services, donations, interest income, and other miscellaneous sources. While some revenues, like Property Taxes, can be clearly identified and estimated based on the adoption of the annual property tax levy, or based on historical performance, other revenues – such as Sales Taxes and State Income Tax – can be volatile based on economic trends. If anything, the economic recession of 2007/2008 sent a message to local governments that economic-based revenues are not guaranteed and can fluctuate based on the economy and disposable income. Actions taken at the local level to plan/adjust from this event resulted in the establishment of a “new norm” for future budget considerations. In estimating General Fund Revenues for the purpose of budget development, the City Administration takes a conservative approach in order to: 1) ensure that General Fund Revenue projections are not overstated to avoid deficit spending and the need to utilize the General Fund Balance (e.g., 120 day unassigned fund balance) for operational expenses; 2) limit excessive increases in operating expenditures; and 3) maintain a financial “buffer”, in the form of the General Fund Balance, to protect the City from future unforeseen economic threats. Utilizing this philosophy, the City Administration then considers past revenue performance, current economic trends, local economic conditions, and economic forecast models developed by the Illinois Municipal League (IML) for use by local governments in developing revenue projections for the purpose of budget development. FY18/19 Budgeted Revenues (Column K) In FY18/19 total budgeted General Fund Revenues were $22,309,740 (Column K, Row 26). Of this, $4,942,359 (22.2%) was from Property Taxes, $7,699,625 (34.5)% was from the City’s 1% share of the State Sales Tax, $1,972,882 (8.8%) was from the .5% Local Sales Tax, and $2,585,834 (11.6%) 43 came from the City’s share of the State Income Tax. Revenues derived from these four (4) sources were budgeted at $17,200,700 or 77.1% of total General Fund Revenues. Of the remaining $5,109,040 (22.9%) in budgeted General Fund Revenues, $1,215,134 (5.4%) were from Charges for Services, $2,050,606 (9.2%) from Reimbursement for Services, $364,300 (1.6%) from Fines and Forfeitures, $358,000 (1.6%) from Licenses and Permits, $345,000 (1.5%) from Franchise Fees, $430,000 (1.9%) from Video Gaming, and the remaining $346,000 (1.7%) came from all other sources combined. FY18/19 Estimated Revenues (Column L) The following estimated revenues are based on 10-months of actual revenues and then projected through the remainder of the fiscal year (April 30, 2019). Unfortunately, in some cases this estimation is more difficult than simply dividing the 10-month actual by 10 and multiplying by 12 because of when specific revenues are received. Further, FY18/19 Actual revenues will not be known and confirmed until approximately 2-3 months (June-July) after the close of the fiscal year due to the timing involved with the receipt of state-shared revenues and, ultimately, the completion of the annual audit in September/October 2019, 4-5 months into the new budget year. At this time, estimated General Fund Revenues are projected to be $22,976,188 (Column L, Row 26) or $666,448 (3.0%) higher than FY18/19 Budgeted revenues of $22,309,740. This reflects an estimated increase of $461,732, or 2.1%, from FY17/18 Actual revenues of $22,514,456. Notably, FY18/19 Estimated Revenues, when compared to FY17/18 Actual revenues and FY18/19 Budgeted revenues, highlight the following: • (Row 10) State Sales Tax revenue is projected to be $109,578 (1.4%) higher than budgeted and $150,000 (2.0%) higher than the FY17/18 Actual amount. • (Row 11) Local Sales Tax revenue is projected to be $45,891 (2.3%) higher than budgeted and $30,000 (1.5%) higher than received in FY17/18. • (Row 10 + Row 11) Combined, total Sales Tax revenue is estimated to be $155,469 (1.6%) higher than budgeted and $180,000 (1.9%) higher than the FY17/18 Actual. State Sales Tax have shown significant signs of an economic recovery, but now appear to be leveling somewhat compared to the recovery period. Also, Local Sales Tax revenues do not include the sale of licensed or titled items – such as cars, boats, motorcycles, etc. As such, while the economic recovery and resulting increase in the sale of licensed vehicles had a positive impact on the City’s portion of the State Sales Tax, this aspect has had no impact on Local Sales Tax revenues. • (Row 12) State Income Tax receipts are estimated at $20,326 (0.8%) higher than budgeted and $150,000 (6.1%) higher than FY17/18. • (Row 17) Video Gaming revenues are estimated to be $592,691, or $162,691 (37.8%), higher than budgeted and $70,000 (13.4%) higher than FY17/18. • (Row 20) Fines and Forfeitures revenues are estimated to be $26,537 (7.2%) lower than budgeted due to lower traffic fine receipts and $30,648 (8.3%) lower than FY17/18. 44 • (Row 22) Reimbursements for services revenues are estimated at $82,840 (4.0%) higher than budgeted and $5,935 (0.3%) higher than FY17/18. This is primarily due to the dispatch consolidation and cost reimbursements by partner and customer agencies for dispatch services. In summary, FY18/19 Estimated Revenues are projected at $666,448 (3.0%) higher than budgeted primarily due to State and Local Sales Tax receipts and Reimbursements directly related to the consolidation of dispatch services. When compared to FY17/18 Actual revenues, total General Fund Revenues increased $461,732 (2.1%). FY19/20 Proposed Revenues (Column M) FY19/20 Proposed General Fund Revenues represent a net increase of $1,750,687 (7.85%) from FY18/19 Budgeted revenues and an increase of $1,545,971 (6.9%) from FY17/18 Actual revenues. Highlights of changes to General Fund Revenues proposed for FY19/20 include: • (Row 9) Based on Council action to freeze the property tax levy and the recent actions of Nunda Township Road District, Property Tax revenues are proposed to remain flat from the FY18/19 Budgeted amount. • (Row 10) State Sales Tax revenues are proposed at $7,879,467, $179,842 or 2.34% higher than FY18/19 Budget. • (Row 11) Local Sales Tax revenues are proposed at $2,786,908, an increase of $814,026 (41.26%) from the amount budgeted in FY18/19. This amount includes $750,000 for the increase in Local Sales Tax Rate of 0.25% for 10 months of the fiscal year. Without the 0.25% increase, the Local Sales Tax revenues are proposed to increase $64,026 (3.2%) from the budgeted amount in FY18/19. • (Row 10 + Row 11) Combined State and Local Sales Tax revenues are proposed at $10,666,375, an increase of $993,868 (10.3%) from the FY18/19 Budget amount. • (Row 12) State Income Tax revenues are proposed at $2,719,444, an increase of $133,610 (5.17%) from FY18/19. • (Row 14) State Telecommunication Tax revenues are proposed at $285,000, an increase of $150,000 (111.1%) from FY18/19 due to the 2% increase in the tax rate for 10 months of the fiscal year. • (Row17) Video Gaming revenues are proposed at $560,000, a $130,000 (30.2%) increase from FY18/19 Budget amount. • (Row 19) Licenses and Permits are proposed to decrease by $128,000 (35.75%) from the amount budgeted in FY18/19 due to the elimination of vehicle stickers. • (Row 20) Fines and Forfeitures revenues are proposed to decrease by $32,300, or 6.94% from the amount budgeted in FY18/19. 45 • (Row 21) Charges and Services revenues are proposed to increase by $54,953, or 4.52% from the amount budgeted in FY18/19 due to charges for parks and recreation programs as well as internal fund transfers. • (Row 22) Reimbursements which includes the Police Dispatch Center revenues derived from partner and customer agencies served through this facility, police impound fees, and other miscellaneous reimbursements are proposed to decrease $4,644 or 0.23%, due to decreased vehicle impound revenues. • (Row 25) Miscellaneous which includes State Grants and Annexation Fees from Meyer Material are proposed to increase $401,200 (933%) due to one-time grant revenues and annual annexation fees. In summary, FY19/20 Proposed Revenues are $1,750,687 (7.85%) higher than budgeted in FY18/19 and $1,084,239 (4.7%) higher than FY18/19 Estimated revenues. The primary reasons for the proposed increase include an increase in the City’s portion of the State Sales Tax ($179,842), an increase to the Home Rule Sales Tax Rate of 0.25% ($814,026) a proposed 30.2% increase in Video Gaming revenues ($130,000), an increase to Telecommunications Tax revenue ($150,000), an increase in Charges for Services Revenues ($54,953), and an increase to Miscellaneous Income ($401,200). These increases are offset by reductions to State Replacement Tax revenues of $5,000 (7.1%), Intertrack Wagering receipts of $3,000 (5.77%), Franchise Fees of $25,000 (7.25%), Licenses and Permits of $128,000 (35.75%) and Fine and Forfeitures of $32,300 (6.94%). Importantly, the identified increases to revenues allow for the implementation of the Capital Improvement projects discussed by the City Council as part of the CIP process while only reducing the estimated General Fund Balance by $396,688, to $6,928,727. This reflects 30.3% of FY19/20 operating expenditures. General Fund Expenditures – FY18/19 Budgeted, FY18/19 Estimated, FY19/20 Proposed General Fund Expenditures include personnel, contractual, supplies and other operating expenses related to the following operating budgets - Administration (100.01), Elected Officials (100.02), Community Development (100.03), Finance (100.04), Human Resources (100.05), Economic Development (100.06), Police Commission (100.21), Police (100.22), Police Dispatch (100.23), Public Works-Administration (100.30), Public Works-Streets (100.33), and Parks and Recreation (100.41). In addition, the General Fund is the funding source for all capital improvement and capital equipment projects that are not related to water and/or sewer improvements or maintenance projects as these are funded through the Water and Sewer Fund and Capital Development Fund. General Fund capital improvement and capital equipment projects include any project over $10,000 related to public facility improvements and maintenance items, police vehicle and equipment acquisition or replacement, non-police vehicle acquisition or replacement, park improvements, and stormwater/drainage improvements. As a frame of reference, the FY19/20-FY23/24 Capital Improvement Program contains more than $60 million in General Fund projects, including more than $47 million in local street improvements. Without a doubt, the needs identified in the Capital Improvement Program far exceed the funding available for them. 46 Finally, the General Fund also serves as a funding source for revenue transfers to other municipal accounts found within Special Revenue Funds, Debt Service Funds, Internal Service Funds, and Fiduciary Funds. FY18/19 Budgeted Expenditures (Column K) In FY18/19, total budgeted expenditures (capital and operating) were $23,548,692. Budgeted capital expenditures were $1,426,150 and budgeted operating expenditures were $22,122,542. While this amount reflected an increase of $997,409 (4.4%) from the FY17/18 Actual expenditures (Column J, Row 35), this difference was due to Capital Improvement and Capital Equipment expenditures. FY18/19 Estimated Expenditures (Column L) In general, the City Administration – including Department Directors, Superintendents, and Managers – closely monitor expenditures throughout the year to ensure that operating budgets stay within the approved amounts. Fiscal diligence on behalf of all of these individuals most often results in expenditures being less than the amount budgeted. This then can be reviewed and adjusted accordingly as part of the succeeding year budget development. For FY18/19, operating expenditures are estimated at $22,025,031, or $97,511 (0.4%) less than the budgeted amount of $22,122,542. Highlights of changes to FY18/19 Estimated Expenditures include: • (Row 29) Reduced Personnel costs of $132,969 (0.8%) resulting from decreased insurance costs as well as lower Illinois Municipal Retirement Fund costs. • (Row 30) Contractual costs are estimated at $3,390 (0.2%) less than the original budget. • (Row 31) Supply costs are estimated at $42,043 (5.2%) less than budget. This is largely due to lower costs in the Parks and Streets Division purchases. • (Row 32) Other estimated expenditures are estimated at $80,891 more than the original budget due to higher than anticipated payments for active sales tax incentives. • (Row 33) Capital Outlay expenditures are $533,455 less than the original budget, but project expenses are rebugeted for FY19/20 for incomplete projects. Note: City Administration anticipates changes to FY18/19 Estimated expenditures due to increases or decreases in revenues and expenses through the end of the fiscal year. FY19/20 Proposed Expenditures (Column M) FY19/20 Proposed operating expenditures represent an increase of $798,516 (3.61%) from the FY18/19 operating Budget amount of $22,122,542. Highlights of changes to General Fund Expenditures proposed for FY19/20 include: • (Row 29) Personnel costs are proposed at $820,964, or 4.89% higher in FY19/20 than budgeted in FY18/19. Personnel costs include salaries, overtime, health/dental/life/vision insurance, FICA, IMRF retirement, and uniforms. There are a number of reasons for this increase. 1. Personnel costs related to salaries only for employees covered by collective bargaining units – IUOE Local 150 (Public Works, Parks employees), FOP Unit 1 47 (Police Patrol), and FOP Unit 2 (Dispatch) – account for $391,979 of the identified increase from FY18/19 to FY19/20. This includes the addition of 2 union positions (2 Police Officers), and the reclassification of 1 dispatcher to a Lead Telecommunicator role as well as contract increases. 2. Police Pension costs are proposed at $2,082,421, an increase of $62,718. Police Pension costs are determined by an actuary retained by the Police Pension Board and are based on a number of factors, including wages, investment rate, and age of the workforce. The City has committed annually to funding the amount determined by the actuary in order to meet a required deadline for full funding by 2040. 3. Non-bargaining unit employees and Police Sergeants account for a total of $190,398 of the Personnel cost increase. Police Sergeants and other non-bargaining employees receive wage increases based on a combination of the previous year’s Consumer Price Index for All Urban Areas (CPI-U), which was 1.1% in 2018, and an additional merit increase of 1.9% based on performance evaluations. This increase also includes a City Planner, which was not in the original FY18/19 budget as well as a HR Coordinator position. 4. Total Benefit costs are proposed to increase $153,984 due to additional employees and changes in health insurance coverage, but are offset by the IMRF funding rate decreasing from 12.5% to 11%. • (Row 29) Contractual costs are anticipated to increase by $89,194 (4.61%) from the amount budgeted in FY18/19 due to contracted snow removal, street sweeping, and mowing as well as increased repair and maintenance for aging vehicles. • (Row 30) Supplies expenditures are proposed to be increased by 4.32% ($34,925) primarily due to higher commodity costs (i.e., gasoline and utilities). • (Row 31) Other expenditures are anticipated to decrease by $251,717 (13.44%) due to the retirement of the 2013 GO Refunding Bond, which was for Drainage Improvements. General Fund – Fund Balance On February 1, 2016 City Council adopted a new Fund Balance and Reserve Policy that, in summary, established principles and parameters to which balances for all municipal funds would be defined at the beginning of each budget period. This policy, which also meets the reporting requirements of Government Accounting Standards Board (GASB) Statement 54, which requires the formal adoption of a policy for the classification of fund balances to categories other than “unassigned”, was established to provide financial stability in the various municipal funds, ensure adequate cash flow for operations, and provide some assurance that the City will be able to respond to emergencies with fiscal strength. In regards to the General Fund Balance, specifically, the Fund Balance and Reserve Policy states: “General Fund – The unrestricted fund balance target should be set at 120 (4 months) of estimated operating expenditures including those expenditures reported in other Governmental Funds that receive annual operating transfers, with the exception of 48 transfers intended to fund capital projects. If the unreserved fund balance falls below 120, a plan will be developed to return to the target balance. If the unreserved fund balance reaches a low of 90-day (3 months), the plan will be implemented to return to the fund balance to the target within a reasonable amount of time. One time revenues shall not be used to fund current operations.” This level of fund balance shall provide the capacity to: • Offset unexpected downturns in elastic revenues due to fluctuations in the local, state and national economies or the loss of major sales tax contributor(s); • Offset negative fiscal changes brought about by action or legislation of another unit 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. As identified, the parameters in this policy help to guide the City Administration in the development of the annual budget by ensuring that the General Fund Budget is presented as balanced, revenues over expenditures, while maintaining this reserve. Further, the establishment of the target minimum of 120 days provides clarity in identifying the level of funding that is available – once revenues, expenditures and fund balance are identified – to address the City’s capital needs. In other words, any funds remaining after meeting the operational and reserve needs of the municipality are “Assigned for Capital.” As a reminder, a combination of the economic recession of 2007/2008 and the loss of a major retailer resulted in the municipality taking measures to freeze or reduce expenditures. This included operating costs and capital improvement and capital equipment projects. In 2009 the City implemented a .5% Local Sales Tax and specifically identified that the additional revenues generated by this should be used for capital projects and Police Pension funding. Since the first full year of implementation of the Local Sales Tax and as a result of a recovering economy, the City has been able to: 1) adopt a balanced General Fund Budget, including meeting Police Pension costs; 2) reintroduce capital improvement and capital equipment projects; and, 3) rebuild the General Fund Balance. In reviewing the General Fund Balance as part of this discussion, the FY18/19 Budget includes a beginning fund balance of $7,266,953 (Column K, Row 6) based on FY17/18 audited financial information. Based on FY18/19 budgeted revenues, operating expenditures, and capital expenditures (which were funded with fund balance), it was anticipated that the ending fund balance would be $6,028,001(Column K, Row 43); the estimated ending unassigned 120 day fund balance at $7,450,000 (Column K, Row 44); showing a shortfall of $1,421,999 (Column K, Row 45) in developing the FY19/20 Budget. In fact, due to a combination of higher than budgeted Revenues ($666,448) and lower than budgeted overall Expenditures ($630,966), the ending Fund Balance is anticipated to increase by $58,462 to $7,325,415. The FY19/20 Budget then identifies an estimated beginning fund balance of $7,325,415 (Column M, Row 6). As in the discussion above, this amount will most likely change upon completion of the annual audit however, this is not done until September/October, 4-5 months after the budget is adopted and implemented. 49 FY12/13 FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 FY18/19 FY18/19 FY19/20Budget BudgetActual Actual Actual Actual Actual ActualBudgetAnticipatedBudgetVariance $ Variance %FUND BALANCE BEGINNING6,172,235 7,062,262 8,654,575 10,150,308 10,338,848 7,303,780 7,266,953 7,266,953 7,325,415 58,462 0.80%REVENUES Property Taxes5,131,967 5,124,611 5,134,224 5,139,820 5,103,443 4,947,812 4,942,359 4,945,032 4,942,359 - 0.00% State Sales Tax6,276,057 6,684,864 6,965,782 7,039,037 7,261,972 7,659,203 7,699,625 7,809,203 7,879,467 179,842 2.34% Local Sales Tax1,889,994 1,984,108 1,965,987 1,930,507 1,945,606 1,988,773 1,972,882 2,018,773 2,786,908 814,026 41.26% State Income Tax2,553,914 2,577,574 2,719,568 2,760,806 2,544,967 2,456,160 2,585,834 2,606,160 2,719,444 133,610 5.17% State Replacement Tax63,090 74,513 70,909 74,272 77,522 59,769 70,000 64,557 65,000 (5,000) -7.14% State Telecommunications Tax172,143 163,424 133,945 143,736 143,912 129,378 135,000 121,378 285,000 150,000 111.11% Pull Tabs1,313 1,729 995 - 1,852 886 1,000 1,253 1,000 - 0.00% Intertrack Wagering82,759 65,150 64,814 63,467 56,388 49,872 52,000 48,242 49,000 (3,000) -5.77% Video Gaming31,688 122,178 211,327 272,108 431,980 522,691 430,000 592,691 560,000 130,000 30.23% Franchise Fees297,253 295,166 306,122 324,114 351,301 344,775 345,000 329,775 320,000 (25,000) -7.25% Licenses and Permits312,976 317,332 323,706 427,998 411,097 368,219 358,000 411,078 230,000 (128,000) -35.75% Fines and Forfeitures407,230 409,760 383,932 406,452 604,871 368,411 364,300 337,763 332,000 (32,300) -8.87% Charges for Services1,209,955 1,162,208 1,177,601 1,233,119 1,168,023 1,142,382 1,215,134 1,263,470 1,270,087 54,953 4.52% Reimbursement427,300 532,910 557,855 752,987 1,327,231 2,127,511 2,050,606 2,133,446 2,045,962 (4,644) -0.23% Interest Income8,199 2,199 2,218 13,508 45,543 80,010 35,000 154,297 120,000 85,000 242.86% Donations14,823 17,772 22,402 13,500 12,550 17,279 10,000 3,250 10,000 - 0.00% Miscellaneous178,790 241,657 265,599 64,212 430,729 251,325 43,000 135,820 444,200 401,200 933.02%TOTAL REVENUE19,059,451 19,777,155 20,306,986 20,659,643 21,918,987 22,514,456 22,309,740 22,976,188 24,060,427 1,750,687 7.85%EXPENDITURES Personnel12,359,946 12,826,464 13,223,387 13,815,545 14,782,035 16,450,544 16,798,402 16,665,433 17,619,366 820,964 4.89% Contractual1,542,668 1,657,086 1,696,261 1,910,655 1,926,080 2,170,853 1,934,364 1,930,974 2,023,558 89,194 4.61% Supplies841,898 812,219 789,214 764,364 861,454 896,035 808,170 766,127 843,095 34,925 4.32% Other275,634 315,431 441,011 496,698 603,299 786,570 709,300 790,191 814,450 105,150 14.82% Capital Outlay3,415 177,462 126,271 130,946 210,601 355,432 1,426,150 892,695 1,622,575 196,425 13.77% Transfers3,145,863 2,396,180 2,535,109 3,260,456 6,570,586 1,891,849 1,872,306 1,872,306 1,620,589 (251,717) -13.44%TOTAL EXPENDITURES18,169,424 18,184,842 18,811,253 20,378,664 24,954,055 22,551,283 23,548,692 22,917,726 24,543,633 994,941 4.23%TOTAL OPERATING EXPENDITURES17,416,009 17,500,880 17,847,734 18,749,671 19,947,884 22,195,851 22,122,542 22,025,031 22,921,058 798,516 3.61%EXCESS/(DEFICIENCY) REVENUES OVER EXPENDITURES890,027 1,592,313 1,495,733 280,979 (3,035,068) (36,827) (1,238,952) 58,462 (483,206) NET CHANGE IN FUND BALANCE890,027 1,592,313 1,495,733 280,979 (3,035,068) (36,827) (1,238,952) 58,462 (483,206) FUND BALANCE ENDING7,062,262 8,654,575 10,150,308 10,431,287 7,303,780 7,266,953 6,028,001 7,325,415 6,842,209 Less Unassigned - 120 days5,806,207 5,997,898 6,223,320 6,775,024 7,303,780 7,350,447 7,450,000 7,640,353 Assigned for Capital1,256,055 2,656,677 3,926,988 3,656,263 - (83,494) (1,421,999) (314,938) General Fund - Revenues, Expenditures and Fund Balance Summary50 Fiscal Year 2019/2020 Annual Budget General Fund Operating Budgets 51 General Fund Operating Budgets - Overview This section includes the budgets for all operating departments funded through the General Fund. General Fund Operating Departments include - Administration (100.01), Elected Officials (100.02), Community Development (100.03), Finance (100.04), Human Resources (100.05), Economic Development (100.06), Police Commission (100.21), Police (100.22), Police Dispatch (100.23), Public Works-Administration (100.30), Public Works-Streets (100.33), and Parks and Recreation (100.41). While these expenditures have already been summarized, in total, as part of the previous discussion of General Fund Revenues and Expenditures, the information contained in each of the following sections will provide details regarding each operating department. The narrative below is a summary overview of sections that follow. General Administration (100.01) Overall, the Administration operating budget is proposed to increase by a total of $25,725 or 1.10% (includes operating and capital) in FY19/20. The primary reason for the decrease in operating expenses is the result of transferring building and maintenance costs to Community Development Department where they are better managed. Salary/Benefit costs are identified to increase by a net of $3,216 or 0.79% and IMRF expenditures are proposed to decrease by $3,200, or 9.3%. Contractual Services expenditures – which includes the mosquito abatement program, participation in the countywide Dial-A-Ride program, and building maintenance for the municipal center are identified for a net decrease of $38,300 (10.79%) due to transferring building maintenance costs to the Community Development in the Contractual line item. Corporate Legal Fees include the City Attorney, Traffic Attorney and Collective Bargaining representation and are identified to remain flat in FY19/20. Supplies expenditures are proposed to decrease by $36,950 due to transferring expenses to Community Development and Other expenditures – which includes Administrative Expenses and internal transfers for Risk Management and Information Technology – is proposed to decrease by $3,741. Elected Officials (100.02) The Elected Officials budget is proposed for a $6,079 decrease, or 6%, based on the City Clerk position remaining vacant. Community Development (100.03) The Community Development budget is proposed at an increase of $197,672, or 27.33%. Salary/Benefit costs are budgeted to increase by $128,760 (21.11%), which includes the addition of the City Planner position. Contractual Services are identified to increase by $40,950 (100%), but this amount was transferred from the General Administration budget. Supplies will increase by $27,000 (317.65%) which is also a transfer from the General Administration budget, and the internal transfer for Information Technology will increase by $962. 52 Finance (100.04) Overall Finance expenditures, including Transfers, are proposed at an overall reduction of $262,067, or 7.72%. This is primarily due to a lower Printing and Publishing costs based on the elimination of the Municipal Vehicle Sticker Program and a lower transfer to Debt Service due to the expiration of a municipal bond. An identified increase to Salaries/Benefits costs is due to a retirement payout, but this is offset by the retirement of a bond decreasing the Transfer to Debt Service expense. Human Resources (100.05) Salaries/Benefit costs are budgeted to increase by $84,623 (69.02%) which is primarily due to the addition of an HR Coordinator position. Contractual Services increase by $8,681 (25.6%) anticipating the purchase of a performance management system. Economic Development (100.06) Salary/Benefit costs are budgeted to decrease by $57,893 (19.59%) with the elimination of one position. Contractual Services increase $8,150 (29.96%) to fund matching funds for a CMAP grant to update the subdivision control ordinance. Police (100.22) The Police budget is proposed at an overall increase of $549,364, or 5.73% from FY18/19. Salary/Benefit costs are identified to increase by $483,952 due to adjustments to FOP bargaining unit salaries ($300,890) which includes two new officers, an increase to health insurance costs ($78,368) and, the transfer for Police Pension of $62,718. As discussed earlier, Police Pension costs are determined by an actuary retained by the Police Pension Board and are based on a number of factors, including wages, investment rate, and age of the workforce. The City has committed annually to funding the amount determined by the actuarial in order to meet a required deadline for full funding by 2040. Dispatch Center (100.23) FY19/20 represents the third full year of operation for the fully developed, and staffed, dispatch center. The FY17/18 budget established the baseline budget for the dispatch center moving forward. The proposed FY19/20 budget has been presented and approved by the partners of the dispatch center. The total amount proposed for the dispatch center in FY19/20 is $2,552,387. The most significant increases are for Salaries/Benefit costs ($164,622) due to an addition of a Lead Telecommunicator position. Contractual Services costs decrease ($96,880) due to adding the McHenry Township Fire Protection District as a partner and eliminating the payment for a portion of the dispatch revenue received. As a reminder, this amount is offset by more than $1.7 million in reimbursements as a result of the partnerships with the City of Woodstock, City of Harvard and McHenry Township Fire Protection District and through charges for dispatch services paid by customers of the dispatch center. These are reflected as General Fund Revenues and included in Row 22 of the General Fund – Revenues, Expenditures and Fund Balance Summary sheet. 53 Public Works Administration (100.30) The overall Public Works Administration budget is proposed to decrease by $6,686 (1.49%) primarily due Salaries/Benefits. Public Works Streets (100.33) The FY19/20 Public Works Streets budget is proposed to increase by a total of $150,563 (4.86%) from FY18/19. Salaries/Benefits are proposed to decrease by $8,266 due to changes in IUOE Insurance premiums. Additionally, Contractual costs have been increased by $87,570 to account for contract mowing, contract snow plowing, and street sweeping, Repair and Maintenance Costs have been increased by $45,000 due to aging vehicles, Street Lighting Costs have been increased by $5,000 and Materials and Supplies costs are proposed higher due to higher gasoline prices. Parks and Recreation (100.41) As a reminder, the Parks and Recreation budget encompasses not only personnel and other operational costs of the Parks Maintenance Division, which includes bargaining unit employees, but also all programming expenses related to the Recreation Division not associated with the McHenry Recreation Center. Revenues from recreation programming, reflected in General Fund Revenues, offset many of these costs. As proposed the FY19/20 in the Parks and Recreating budget is proposed to increase by a total of $232,449. Salary/Benefit costs are identified to increase by a total of $20,550 (1.41%) due to adding a Parks Maintenance Worker which are offset by transferring part-time salary costs for front desk personnel which are funded through the Recreation Center Fund to a Transfer to the Rec Center Fund account (Line 45); Contractual Services to increase by $30,650 (6.79%) for contracted mowing; Supplies to increase by $6,100 (3%); and, Other costs to increase by $95,149 due to the above mention of the Transfer to the Recreation Center Fund for the parks share of the front desk part-time salaries. 54 Personnel Summary of Wages – All Funds Overview Prior to presenting a summary of General Fund operating departments it is important to define that the “4010 Salaries” budget line items in each operating budget include more than just employee wage costs but also includes annual payouts for sick time per the City’s Personnel Manual. In addition, the 4010 line item for all but the Police budget is a combined total of both bargaining and non-bargaining employees within that specific budget. As such, the 4010 line items in each operating budget show different percentage variances. In an effort to provide the reader with a more accurate summary of wages, staff has developed the following Personnel Summary – Wages Only (All Funds) sheet. This sheet includes a summary of wages only (e.g., no benefits, sick day buyouts, etc.) as an overview of all municipal departments (Rows 6 – 12), and identifies the net then by operating budget and/or fund (Rows 15 – 73). Each summary presents non-bargaining and bargaining employees separately, and identifies the FY18/19 Budgeted wages (Column E), FY18/19 Estimated wages (Column F), FY19/20 Proposed wages (Column G), the monetary variance from the FY18/19 Estimated wages and the FY19/20 Proposed wages (Column H), and the percent variance from the FY18/19 Estimated wages to the FY19/20 Proposed wages (Column I). Note that Columns H and I is a comparison of estimated to proposed wages as distinct from a budgeted to proposed comparison, since the FY19/20 Proposed wages are based on an increase from the FY18/19 Estimated wages. In general, significant increases or decreases in dollar amounts and percentages, as identified, are the result of employee reassignment or reclassification or increases and decreases in the actual number of employees. One example of this is the decrease in the Economic Development Department (Row 37) due to a position being eliminated. An example of a significant increase is in the Community Development Department (Row 23) because the Planner position was added as a budget amendment in FY18/19 but was not filled and is included as a full position in the proposed FY19/20 budget. Other significant increases in the following departments are all due to additional positions; Human Resources (Row 32), Police Department (Row 42), and the Dispatch Department (Row 49). Non-Bargaining Unit Employees FY19/20 is the fourth year that non-bargaining employee wages are to be determined based on a combination of an identifiable “Cost of Living Adjustment” (COLA) in the form of the previous calendar year’s Consumer Price Index for All Urban Areas (CPI-U) and merit. Previously, (and before the 2007/2008 recession), non-bargaining employees received automatic “step” adjustments each year (which were in the range of 3% - 4%) and a COLA increase. While annual evaluations were undertaken, the actual amount of wage increase was not merit-based. The Consumer Price Index (CPI) is a measure of the average change in prices over time in a fixed market basket of goods and services. The CPI for All Urban Consumers, or CPI-U, 55 applies to approximately 88% of the nation’s population, including McHenry County. CPI-U is an economic indicator and is the most widely used measure to determine inflation and indexation (i.e., adjusting income payments). As a component of McHenry’s compensation system for non-bargaining unit employees, the CPI-U ending in December of each year, as determined by the United States Bureau of Labor Statistics, serves as the base salary increase the succeeding municipal fiscal year (May 1st). The CPI-U average since 1992 is 1.97% and the CPI-U for the period ending December 2018 is 1.1% (down from 1.7% from the previous December). In addition, as identified above, non-bargaining employees are also eligible for a merit increase based on satisfactory annual performance evaluations. This is a percentage of salary over and above the CPI-U wage adjustment. For FY19/20 the budgeted amount for non-bargaining unit merit is 1.9%. In total, non-bargaining unit employees would be eligible for a 1.1% CPI-U adjustment with an additional merit increase of 1.9%. Therefore, most non-bargaining unit rows will show “3%” as the percent variance from FY18/19 Estimated to FY19/20 Proposed. Percentages higher or lower than this 3% amount are the result of specific changes within that department resulting in an increase or decrease to the FY18/19 Estimated amount upon which the FY19/20 Proposed amount is based. As a reminder, these percentages may also be higher due to the impact of the Wage and Compensation Study, which was implemented after the approval of the FY18/19 Budget. The FY19/20 Budget, as proposed, includes a net increase (CPI-U + Merit) for all non-bargaining unit employees, including police Sergeants, of $226,492 (Column H, Rows 7 + 8) from the FY18/19 Estimated amount. Included in this total increase is $130,372 for two new positions which leaves only an increase of $96,120 due to CPI-U + Merit increases. Bargaining Unit Employees Unlike non-bargaining employees, bargaining unit employee wages are not based on merit or the CPI-U. Rather, increases for IUOE 150 (Public Works, Parks), FOP Unit 1 (Patrol) and FOP Unit 2 (Dispatchers, Records Clerks, CSOs) are based on step increases included in their respective collective bargaining unit agreements and negotiated “Cost of Living Adjustments” (COLA). As such, the percentages identified for bargaining unit wages are the result of approved contractual agreements. Significant increases (as is seen in all of the bargaining units) are the result of an increased number of employees or in the transfer of employees from one operating division to another (such as Public Works – Streets and Water, Sewer, Utility). Whether bargaining or non-bargaining, the dollar amounts shown on this sheet are included in the “4010 Salaries” line items of the operating department budgets as presented below. 56 FY18/19 FY18/19 FY19/20 Proposed Estimated Proposed 3,601,123 3,545,488 3,753,721 208,233 5.87%710,570 730,111 748,370 18,259 2.50%2,584,595 2,549,851 2,719,465 169,614 6.65%3,167,877 3,095,158 3,427,543 332,385 10.74%1,498,095 1,485,339 1,616,977 131,638 8.86% 11,562,260 11,405,947 12,266,076 860,129 7.54%9,685,276 10,309,082 221,606 222,099 228,762 6,663 3.00%46,255 44,471 47,412 2,941 6.61% 267,861 266,570 276,174 9,604 3.60% 468,492 421,082 515,337 94,255 22.38% 468,492 421,082 515,337 94,255 22.38% 306,462 294,913 307,741 12,828 4.35% 306,462 294,913 307,741 12,828 4.35% 93,417 95,423 148,732 53,309 55.87% 93,417 95,423 148,732 53,309 55.87% 203,117 203,998 168,103 (35,895) -17.60% 203,117 203,998 168,103 (35,895) -17.60% 595,977 600,955 618,983 18,028 3.00%730,114 730,111 748,370 18,259 2.50%3,167,877 3,095,158 3,427,543 332,385 10.74%220,048 217,922 228,257 10,335 4.74% 4,714,016 4,644,146 5,023,153 379,007 8.16% 97,353 97,827 100,757 2,930 3.00%1,278,047 1,267,417 1,388,720 121,303 9.57% 1,375,400 1,365,244 1,489,477 124,233 9.10% Variance from Est ($) Police SergeantsBargaining - FOP Unit 1Bargaining - FOP Unit 2 Personnel Summary - Wages Only (All Funds) Va a ce from Est (%) Non-BargainingBargaining - IUOE 150 Overall Summary General Administration (100.01) TOTAL GENERAL ADMINISTRATION TOTAL OVERALL WAGES Non-BargainingBargaining - IUOE 150 Human Resources (100.05)Non-BargainingTOTAL HUMAN RESOURCESEconomic Development (100.06)Non-BargainingTOTAL ECONOMIC DEVELOPMENT Non-Bargaining Non-BargainingBargaining - Unit 2 (Non-Records)TOTAL POLICE DISPATCH Non-Bargaining TOTAL POLICEBargaining - Unit 1 Sergeants Police Dispatch (100.23) Bargaining - Unit 2 (Non-Dispatch) TOTAL FINANCEFinance (100.04) Community Development (100.03)Non-BargainingTOTAL COMMUNITY DEVELOPMENT Police (100.22) 57 277,684 269,589 279,185 9,596 3.56% 277,684 269,589 279,185 9,596 3.56% 335,026 324,642 334,685 10,043 3.09%968,877 950,477 996,441 45,964 4.84% 1,303,903 1,275,119 1,331,126 56,007 4.39% 350,798 356,438 364,372 7,934 2.23%343,670 341,701 405,682 63,981 18.72% 694,468 698,139 770,054 71,915 10.30% 113,235 116,194 125,170 8,976 7.73% 113,235 116,194 125,170 8,976 7.73% 399,259 403,355 417,467 14,112 3.50%1,225,793 1,213,202 1,269,930 56,728 4.68% 1,625,052 1,616,557 1,687,397 70,840 4.38% 138,697 138,973 144,427 5,454 3.92% 138,697 138,973 144,427 5,454 3.92%Non-BargainingTOTAL INFORMATION TECHNOLOGY Parks and Recreation (100.41)Non-BargainingBargaining - IUOE 150 Non-BargainingBargaining - IUOE 150TOTAL WATER, SEWER, UTILITY FUNDS Information Technology Water, Sewer, Utility Funds (510.31, 510.32, 510.35) TOTAL PARKS AND RECREATIONRecreation Center (400.00)Non-BargainingTOTAL COMMUNITY DEVELOPMENT Bargaining - IUOE 150 Public Works - Administration (100.30)Non-Bargaining TOTAL PUBLIC WORKS - STREETS TOTAL PUBLIC WORKS - ADMINISTRATION Public Works - Streets (100.33)Non-Bargaining 58 Fiscal Year 2019/2020 Annual Budget General Administration 59 General Administration – Overview The General Administration Budget contains personnel and operational functions related to the provision of general administrative services and, in FY19/20, includes capital projects expenditures from the General Fund Balance as directed by City Council. Beginning in FY18/19, due to operational/department restructuring, economic development and human resources functions were formed under separate departmental budgets (Economic Development and Human Resources) and, as such, all related expenditures are now found within these. Next, municipal center building and grounds maintenance activities are now included under the Department of Community Development and, starting in FY19/20, all Contractual and Repair and Maintenance costs related to these activities have also been transferred to the Community Development Budget. Finally, capital projects to be funded through the General Fund Balance will be accounted for in this fund for FY19/20. The Office of the City Administrator, which includes the positions of City Administrator and Deputy City Clerk/Executive Assistant, is responsible for providing management services, budgeting, legislative support, and communications to elected officials, staff, and the public in carrying out the policy and direction as set by the City Council. The City Administrator is also responsible for the direction of Information Technology services. 60 General Administration – Organizational Chart City Administrator Derik Morefield Information Technology Information Technology Manager Ed Larson Information Technology Specialist Aaron Greve Deputy City Clerk Monte Johnson 61 General Administration – FY18/19 Accomplishments • Developed 5-year Capital Improvement Program (CIP). • Presented a balanced FY18/19 Budget for City Council consideration. City recognized by Government Officers Finance Association (GFOA) for 3rd consecutive year with Distinguished Budget Award. • Participated in negotiation team that led to a new mining agreement with LaFarge/Meyer resulting in higher revenues for the municipality. • Coordinated relocation of Community Development to 1st floor and Administration to 2nd floor to improve customer service and efficiency of operations. • Continued to ensure the development of informative and timely City Council Agenda Packets. • Coordinated assembly of an Events Committee – comprised of City, Chamber, Downtown Business Association, and Visit McHenry County representatives – to focus on partnership for various events in the municipality. • Provided guidance for the negotiation of a new FOP Unit I (Patrol) Collective Bargaining Agreement. • Coordinated the research and eventual adoption of an impact fee reduction of 50% through September 2019. Key to this was discussing impacts with school districts. • Ensured partnership resulting in the dredging of Boone Creek. • Developed Request For Proposals document for Central Wastewater Treatment Plant Redevelopment Project. 62 General Administration – FY19/20 Goals & Objectives • Finalize the review, updating and codification of the McHenry Municipal Code. • Coordinate the “onboarding” of new City Council Members and the holding of a Strategic Planning Session with City Council and Directors. • Coordinate and develop the FY20/21 – FY24/25 5-Year Capital Improvement Program. • Develop an operationally balanced FY20/21 Budget for consideration by the City Council ensuring that the City maintains, per policy, a 120 day operational reserve and that funding over this amount are assigned and committed to capital improvement and capital equipment projects. Budget should meet or exceed the guidelines established for Distinguished Budget designation by the Government Officers Finance Association. • Continue engagement with the Illinois Municipal League and other stakeholders to monitor legislation at the State level that may impact municipal funding. • Continue to provide leadership and oversight to all departments to provide the highest quality of services in the most cost and time efficient manner to customers. • Interview and select a developer for the Central Wastewater Treatment Plant Redevelopment Project. • Continue to evaluate and identify alternative revenue sources. 63 General Administration – FY19/20 Performance Measures Item Goal Description FY19/20 Proposed Outcome(s) Capital Improvement Program (CIP) Develop an updated CIP and transmit to City Council in January. Was the CIP updated and transmitted to the City Council in January and approved in February? January 2019 February 2019 Annual Budget Develop and present a balanced operating budget for City Council consideration. Was a balanced operating budget presented for City Council’s consideration? April 2019 GFOA Distinguished Budget Award Presentation Prepare an annual budget that achieves national recognition via the GFOA’s Award Program. Did the City’s budget for the prior year receive the GFOA’s Distinguished Budget Award? Yes Resident Complaints/Inquiries Respond to a resident complaint or inquiry within one working day from receipt. % of time that General Administration staff responds within one day. 100% City Council Committee and Regular Meeting Agenda Packets City Council committee and regular meeting agenda packets will be distributed no later than the end of business Wednesday prior to scheduled meetings. % of time City Council Committee and Regular Meeting Agenda packets completed on time. 100% 64 1234 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 A B E G I J K L M N Account Account FY15/16 FY16/17 FY17/18 FY18/19 FY18/19 FY19/20 Number Description Actual Actual Actual Budget Estimated Proposed Salaries/Benefits4010Salaries 549,815 566,451 549,000 273,606 308,010 281,967 8,361 3.06%4050 Overtime 2,390 2,783 4,248 1,000 3,400 1,000 - 0.00%4110 Salaries - Seasonal - 1,433 - - - - - #DIV/0!4220 Board and Commission Expense 6,903 7,164 8,636 16,000 9,204 16,000 - 0.00%4310 Health Insurance 92,091 96,560 88,431 61,009 62,744 59,869 (1,140) -1.87%4320 Dental Insurance 3,479 3,445 2,887 3,333 1,363 1,382 (1,951) -58.54%4330 Life Insurance 396 427 431 214 245 214 - 0.00%4340 Vision Insurance 254 227 207 109 115 122 13 11.93%4410 FICA Medicare 38,621 39,765 38,885 19,178 20,459 20,311 1,133 5.91%4420 IMRF Retirement 72,081 73,684 67,402 34,326 33,809 31,126 (3,200) -9.32%4510 Uniform Allowance - - - 450 161 450 - 0.00%TOTAL SALARIES/BENEFITS 766,030 791,939 760,127 409,225 439,510 412,441 3,216 0.79%Contractual Services5110Contractual 200,142 125,068 142,124 98,300 116,301 60,000 (38,300) -38.96%5230 Corporate Legal Fees (All Departments)298,466 296,980 283,524 225,000 223,409 225,000 - 0.00%5310 Postage and Meter 4,959 952 1,080 1,000 979 1,000 - 0.00%5320 Telephone 9,082 16,709 8,650 - (4) - - #DIV/0!5330 Printing and Publishing 2,407 3,275 6,794 2,500 3,541 4,000 1,500 60.00%5370 Repair and Maintenance 165 180 - 750 231 500 (250) -33.33%5410 Dues 20,684 18,227 19,586 20,000 16,648 17,500 (2,500) -12.50%5420 Travel Expense 5,197 4,432 4,538 4,000 1,725 4,000 - 0.00%5430 Training 3,074 8,455 1,304 2,000 - 3,000 1,000 50.00%5450 Publications 207 781 531 500 192 500 - 0.00%5510 Utilities 1,269 1,045 1,079 1,000 1,176 1,250 250 25.00%TOTAL CONTRACTUAL SERVICES 545,652 476,104 469,210 355,050 364,198 316,750 (38,300) -10.79%Supplies6110 Materials and Supplies 74,559 55,531 86,798 69,700 52,681 30,000 (39,700) -56.96% Variance ($) Variance (%) General Administration - Fund Summary (Fund 100, Department 01)65 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 A B E G I J K L M N6210Office Supplies 2,303 500 6,282 1,500 3,823 4,500 3,000 200.00%6250 Gasoline and Oil - - - - - - #DIV/0!6270 Small Equipment 103 - 250 - - (250) -100.00%TOTAL SUPPLIES 76,862 56,134 93,080 71,450 56,504 34,500 (36,950) -51.71%Other6940 Administrative Expense 2,303 12,153 12,719 13,800 7,900 8,500 (5,300) -38.41%9920 Purchase of Services - Risk Management 12,712 52,732 48,302 48,302 48,302 48,302 - 0.00%9922 Purchase of Services - Information Tech 29,867 33,263 34,614 30,275 30,275 31,834 1,559 5.15%TOTAL OTHER 44,882 98,148 95,635 92,377 86,477 88,636 (3,741) -4.05%Capital Outlay8100Land - - 170,663 - - - #DIV/0!8200 Buildings - 15,986 66,288 - - 440,000 440,000 #DIV/0!8600 Streets - - - 345,000 679,380 132,000 (213,000) -61.74%8900 Public Improvements - - - 1,061,500 44,519 936,000 (125,500) -11.82%TOTAL CAPITAL OUTLAY - 15,986 236,951 1,406,500 723,899 1,508,000 101,500 7.22%TOTAL GENERAL ADMINISTRATION 1,433,426 1,438,311 1,655,003 2,334,602 1,670,588 2,360,327 25,725 1.10%66 Fiscal Year 2019/2020 Annual Budget General Fund Operating Budgets 67 General Fund Operating Budgets - Overview This section includes the budgets for all operating departments funded through the General Fund. General Fund Operating Departments include - Administration (100.01), Elected Officials (100.02), Community Development (100.03), Finance (100.04), Human Resources (100.05), Economic Development (100.06), Police Commission (100.21), Police (100.22), Police Dispatch (100.23), Public Works-Administration (100.30), Public Works-Streets (100.33), and Parks and Recreation (100.41). While these expenditures have already been summarized, in total, as part of the previous discussion of General Fund Revenues and Expenditures, the information contained in each of the following sections will provide details regarding each operating department. The narrative below is a summary overview of sections that follow. General Administration (100.01) Overall, the Administration operating budget is proposed to increase by a total of $25,725 or 1.10% (includes operating and capital) in FY19/20. The primary reason for the decrease in operating expenses is the result of transferring building and maintenance costs to Community Development Department where they are better managed. Salary/Benefit costs are identified to increase by a net of $3,216 or 0.79% and IMRF expenditures are proposed to decrease by $3,200, or 9.3%. Contractual Services expenditures – which includes the mosquito abatement program, participation in the countywide Dial-A-Ride program, and building maintenance for the municipal center are identified for a net decrease of $38,300 (10.79%) due to transferring building maintenance costs to the Community Development in the Contractual line item. Corporate Legal Fees include the City Attorney, Traffic Attorney and Collective Bargaining representation and are identified to remain flat in FY19/20. Supplies expenditures are proposed to decrease by $36,950 due to transferring expenses to Community Development and Other expenditures – which includes Administrative Expenses and internal transfers for Risk Management and Information Technology – is proposed to decrease by $3,741. Elected Officials (100.02) The Elected Officials budget is proposed for a $6,079 decrease, or 6%, based on the City Clerk position remaining vacant. Community Development (100.03) The Community Development budget is proposed at an increase of $197,672, or 27.33%. Salary/Benefit costs are budgeted to increase by $128,760 (21.11%), which includes the addition of the City Planner position. Contractual Services are identified to increase by $40,950 (100%), but this amount was transferred from the General Administration budget. Supplies will increase by $27,000 (317.65%) which is also a transfer from the General Administration budget, and the internal transfer for Information Technology will increase by $962. 68 Finance (100.04) Overall Finance expenditures, including Transfers, are proposed at an overall reduction of $262,067, or 7.72%. This is primarily due to a lower Printing and Publishing costs based on the elimination of the Municipal Vehicle Sticker Program and a lower transfer to Debt Service due to the expiration of a municipal bond. An identified increase to Salaries/Benefits costs is due to a retirement payout, but this is offset by the retirement of a bond decreasing the Transfer to Debt Service expense. Human Resources (100.05) Salaries/Benefit costs are budgeted to increase by $84,623 (69.02%) which is primarily due to the addition of an HR Coordinator position. Contractual Services increase by $8,681 (25.6%) anticipating the purchase of a performance management system. Economic Development (100.06) Salary/Benefit costs are budgeted to decrease by $57,893 (19.59%) with the elimination of one position. Contractual Services increase $8,150 (29.96%) to fund matching funds for a CMAP grant to update the subdivision control ordinance. Police (100.22) The Police budget is proposed at an overall increase of $549,364, or 5.73% from FY18/19. Salary/Benefit costs are identified to increase by $483,952 due to adjustments to FOP bargaining unit salaries ($300,890) which includes two new officers, an increase to health insurance costs ($78,368) and, the transfer for Police Pension of $62,718. As discussed earlier, Police Pension costs are determined by an actuary retained by the Police Pension Board and are based on a number of factors, including wages, investment rate, and age of the workforce. The City has committed annually to funding the amount determined by the actuarial in order to meet a required deadline for full funding by 2040. Dispatch Center (100.23) FY19/20 represents the third full year of operation for the fully developed, and staffed, dispatch center. The FY17/18 budget established the baseline budget for the dispatch center moving forward. The proposed FY19/20 budget has been presented and approved by the partners of the dispatch center. The total amount proposed for the dispatch center in FY19/20 is $2,552,387. The most significant increases are for Salaries/Benefit costs ($164,622) due to an addition of a Lead Telecommunicator position. Contractual Services costs decrease ($96,880) due to adding the McHenry Township Fire Protection District as a partner and eliminating the payment for a portion of the dispatch revenue received. As a reminder, this amount is offset by more than $1.7 million in reimbursements as a result of the partnerships with the City of Woodstock, City of Harvard and McHenry Township Fire Protection District and through charges for dispatch services paid by customers of the dispatch center. These are reflected as General Fund Revenues and included in Row 22 of the General Fund – Revenues, Expenditures and Fund Balance Summary sheet. 69 Public Works Administration (100.30) The overall Public Works Administration budget is proposed to decrease by $6,686 (1.49%) primarily due Salaries/Benefits. Public Works Streets (100.33) The FY19/20 Public Works Streets budget is proposed to increase by a total of $150,563 (4.86%) from FY18/19. Salaries/Benefits are proposed to decrease by $8,266 due to changes in IUOE Insurance premiums. Additionally, Contractual costs have been increased by $87,570 to account for contract mowing, contract snow plowing, and street sweeping, Repair and Maintenance Costs have been increased by $45,000 due to aging vehicles, Street Lighting Costs have been increased by $5,000 and Materials and Supplies costs are proposed higher due to higher gasoline prices. Parks and Recreation (100.41) As a reminder, the Parks and Recreation budget encompasses not only personnel and other operational costs of the Parks Maintenance Division, which includes bargaining unit employees, but also all programming expenses related to the Recreation Division not associated with the McHenry Recreation Center. Revenues from recreation programming, reflected in General Fund Revenues, offset many of these costs. As proposed the FY19/20 in the Parks and Recreating budget is proposed to increase by a total of $145,931. Salary/Benefit costs are identified to decrease by a total of $65,968 (4.51%) due to transferring part-time salary costs for front desk personnel which are funded through the Recreation Center Fund to a Transfer to the Rec Center Fund account (Line 45); Contractual Services to increase by $30,650 (6.79%) for contracted mowing; Supplies to increase by $6,100 (3%); and, Other costs to increase by $95,149 due to the above mention of the Transfer to the Recreation Center Fund for the parks share of the front desk part-time salaries. 70 Personnel Summary of Wages – All Funds Overview Prior to presenting a summary of General Fund operating departments it is important to define that the “4010 Salaries” budget line items in each operating budget include more than just employee wage costs but also includes annual payouts for sick time per the City’s Personnel Manual. In addition, the 4010 line item for all but the Police budget is a combined total of both bargaining and non-bargaining employees within that specific budget. As such, the 4010 line items in each operating budget show different percentage variances. In an effort to provide the reader with a more accurate summary of wages, staff has developed the following Personnel Summary – Wages Only (All Funds) sheet. This sheet includes a summary of wages only (e.g., no benefits, sick day buyouts, etc.) as an overview of all municipal departments (Rows 6 – 12), and identifies the net then by operating budget and/or fund (Rows 15 – 73). Each summary presents non-bargaining and bargaining employees separately, and identifies the FY18/19 Budgeted wages (Column E), FY18/19 Estimated wages (Column F), FY19/20 Proposed wages (Column G), the monetary variance from the FY18/19 Estimated wages and the FY19/20 Proposed wages (Column H), and the percent variance from the FY18/19 Estimated wages to the FY19/20 Proposed wages (Column I). Note that Columns H and I is a comparison of estimated to proposed wages as distinct from a budgeted to proposed comparison, since the FY19/20 Proposed wages are based on an increase from the FY18/19 Estimated wages. In general, significant increases or decreases in dollar amounts and percentages, as identified, are the result of employee reassignment or reclassification or increases and decreases in the actual number of employees. One example of this is the decrease in the Economic Development Department (Row 37) due to a position being eliminated. An example of a significant increase is in the Community Development Department (Row 23) because the Planner position was added as a budget amendment in FY18/19 but was not filled and is included as a full position in the proposed FY19/20 budget. Other significant increases in the following departments are all due to additional positions; Human Resources (Row 32), Police Department (Row 42), and the Dispatch Department (Row 49). Non-Bargaining Unit Employees FY19/20 is the fourth year that non-bargaining employee wages are to be determined based on a combination of an identifiable “Cost of Living Adjustment” (COLA) in the form of the previous calendar year’s Consumer Price Index for All Urban Areas (CPI-U) and merit. Previously, (and before the 2007/2008 recession), non-bargaining employees received automatic “step” adjustments each year (which were in the range of 3% - 4%) and a COLA increase. While annual evaluations were undertaken, the actual amount of wage increase was not merit-based. The Consumer Price Index (CPI) is a measure of the average change in prices over time in a fixed market basket of goods and services. The CPI for All Urban Consumers, or CPI-U, 71 applies to approximately 88% of the nation’s population, including McHenry County. CPI-U is an economic indicator and is the most widely used measure to determine inflation and indexation (i.e., adjusting income payments). As a component of McHenry’s compensation system for non-bargaining unit employees, the CPI-U ending in December of each year, as determined by the United States Bureau of Labor Statistics, serves as the base salary increase the succeeding municipal fiscal year (May 1st). The CPI-U average since 1992 is 1.97% and the CPI-U for the period ending December 2018 is 1.1% (down from 1.7% from the previous December). In addition, as identified above, non-bargaining employees are also eligible for a merit increase based on satisfactory annual performance evaluations. This is a percentage of salary over and above the CPI-U wage adjustment. For FY19/20 the budgeted amount for non-bargaining unit merit is 1.9%. In total, non-bargaining unit employees would be eligible for a 1.1% CPI-U adjustment with an additional merit increase of 1.9%. Therefore, most non- bargaining unit rows will show “3%” as the percent variance from FY18/19 Estimated to FY19/20 Proposed. Percentages higher or lower than this 3% amount are the result of specific changes within that department resulting in an increase or decrease to the FY18/19 Estimated amount upon which the FY19/20 Proposed amount is based. As a reminder, these percentages may also be higher due to the impact of the Wage and Compensation Study, which was implemented after the approval of the FY18/19 Budget. The FY19/20 Budget, as proposed, includes a net increase (CPI-U + Merit) for all non- bargaining unit employees, including police Sergeants, of $226,492 (Column H, Rows 7 + 8) from the FY18/19 Estimated amount. Included in this total increase is $130,372 for two new positions which leaves only an increase of $96,120 due to CPI-U + Merit increases. Bargaining Unit Employees Unlike non-bargaining employees, bargaining unit employee wages are not based on merit or the CPI-U. Rather, increases for IUOE 150 (Public Works, Parks), FOP Unit 1 (Patrol) and FOP Unit 2 (Dispatchers, Records Clerks, CSOs) are based on step increases included in their respective collective bargaining unit agreements and negotiated “Cost of Living Adjustments” (COLA). As such, the percentages identified for bargaining unit wages are the result of approved contractual agreements. Significant increases (as is seen in all of the bargaining units) are the result of an increased number of employees or in the transfer of employees from one operating division to another (such as Public Works – Streets and Water, Sewer, Utility). Whether bargaining or non-bargaining, the dollar amounts shown on this sheet are included in the “4010 Salaries” line items of the operating department budgets as presented below. 72 FY18/19 FY18/19 FY19/20 Proposed Estimated Proposed 3,601,123 3,545,488 3,753,721 208,233 5.87% 710,570 730,111 748,370 18,259 2.50% 2,584,595 2,549,851 2,668,528 118,677 4.65% 3,167,877 3,095,158 3,427,543 332,385 10.74% 1,498,095 1,485,339 1,616,977 131,638 8.86% 11,562,260 11,405,947 12,215,139 809,192 7.09% 9,685,276 10,258,145 221,606 222,099 228,762 6,663 3.00% 46,255 44,471 47,412 2,941 6.61% 267,861 266,570 276,174 9,604 3.60% 468,492 421,082 515,337 94,255 22.38% 468,492 421,082 515,337 94,255 22.38% 306,462 294,913 307,741 12,828 4.35% 306,462 294,913 307,741 12,828 4.35% 93,417 95,423 148,732 53,309 55.87% 93,417 95,423 148,732 53,309 55.87% 203,117 203,998 168,103 (35,895) -17.60% 203,117 203,998 168,103 (35,895) -17.60% 595,977 600,955 618,983 18,028 3.00% 730,114 730,111 748,370 18,259 2.50% 3,167,877 3,095,158 3,427,543 332,385 10.74% 220,048 217,922 228,257 10,335 4.74% 4,714,016 4,644,146 5,023,153 379,007 8.16% 97,353 97,827 100,757 2,930 3.00% 1,278,047 1,267,417 1,388,720 121,303 9.57% 1,375,400 1,365,244 1,489,477 124,233 9.10% Bargaining - Unit 2 (Non-Dispatch) TOTAL FINANCE Finance (100.04) Community Development (100.03) Non-Bargaining TOTAL COMMUNITY DEVELOPMENT Police (100.22) Bargaining - Unit 2 (Non-Records) TOTAL POLICE DISPATCH Non-Bargaining TOTAL POLICE Bargaining - Unit 1 Sergeants Police Dispatch (100.23) Overall Summary General Administration (100.01) TOTAL GENERAL ADMINISTRATION TOTAL OVERALL WAGES Non-Bargaining Bargaining - IUOE 150 Human Resources (100.05) Non-Bargaining TOTAL HUMAN RESOURCES Economic Development (100.06) Non-Bargaining TOTAL ECONOMIC DEVELOPMENT Non-Bargaining Non-Bargaining Variance from Est ($) Police Sergeants Bargaining - FOP Unit 1 Bargaining - FOP Unit 2 Personnel Summary - Wages Only (All Funds) Variance from Est (%) Non-Bargaining Bargaining - IUOE 150 73 277,684 269,589 279,185 9,596 3.56% 277,684 269,589 279,185 9,596 3.56% 335,026 324,642 334,685 10,043 3.09% 968,877 950,477 996,441 45,964 4.84% 1,303,903 1,275,119 1,331,126 56,007 4.39% 350,798 356,438 364,372 7,934 2.23% 343,670 341,701 354,745 13,044 3.82% 694,468 698,139 719,117 20,978 3.00% 113,235 116,194 125,170 8,976 7.73% 113,235 116,194 125,170 8,976 7.73% 399,259 403,355 417,467 14,112 3.50% 1,225,793 1,213,202 1,269,930 56,728 4.68% 1,625,052 1,616,557 1,687,397 70,840 4.38% 138,697 138,973 144,427 5,454 3.92% 138,697 138,973 144,427 5,454 3.92% TOTAL PUBLIC WORKS - STREETS TOTAL PUBLIC WORKS - ADMINISTRATION Public Works - Streets (100.33) Non-Bargaining Public Works - Administration (100.30) Non-Bargaining Bargaining - IUOE 150 Non-Bargaining TOTAL INFORMATION TECHNOLOGY Parks and Recreation (100.41) Non-Bargaining Bargaining - IUOE 150 Non-Bargaining Bargaining - IUOE 150 TOTAL WATER, SEWER, UTILITY FUNDS Information Technology Water, Sewer, Utility Funds (510.31, 510.32, 510.35) TOTAL PARKS AND RECREATION Recreation Center (400.00) Non-Bargaining TOTAL COMMUNITY DEVELOPMENT 74 Fiscal Year 2019/2020 Annual Budget General Administration 75 General Administration – Overview The General Administration Budget contains personnel and operational functions related to the provision of general administrative services and, in FY19/20, includes capital projects expenditures from the General Fund Balance as directed by City Council. Beginning in FY18/19, due to operational/department restructuring, economic development and human resources functions were formed under separate departmental budgets (Economic Development and Human Resources) and, as such, all related expenditures are now found within these. Next, municipal center building and grounds maintenance activities are now included under the Department of Community Development and, starting in FY19/20, all Contractual and Repair and Maintenance costs related to these activities have also been transferred to the Community Development Budget. Finally, capital projects to be funded through the General Fund Balance will be accounted for in this fund for FY19/20. The Office of the City Administrator, which includes the positions of City Administrator and Deputy City Clerk/Executive Assistant, is responsible for providing management services, budgeting, legislative support, and communications to elected officials, staff, and the public in carrying out the policy and direction as set by the City Council. The City Administrator is also responsible for the direction of Information Technology services. 76 General Administration – Organizational Chart City Administrator Derik Morefield Information Technology Information Technology Manager Ed Larson Information Technology Specialist Aaron Greve Deputy City Clerk Monte Johnson 77 General Administration – FY18/19 Accomplishments  Developed 5-year Capital Improvement Program (CIP).  Presented a balanced FY18/19 Budget for City Council consideration. City recognized by Government Officers Finance Association (GFOA) for 3rd consecutive year with Distinguished Budget Award.  Participated in negotiation team that led to a new mining agreement with LaFarge/Meyer resulting in higher revenues for the municipality.  Coordinated relocation of Community Development to 1st floor and Administration to 2nd floor to improve customer service and efficiency of operations.  Continued to ensure the development of informative and timely City Council Agenda Packets.  Coordinated assembly of an Events Committee – comprised of City, Chamber, Downtown Business Association, and Visit McHenry County representatives – to focus on partnership for various events in the municipality.  Provided guidance for the negotiation of a new FOP Unit I (Patrol) Collective Bargaining Agreement.  Coordinated the research and eventual adoption of an impact fee reduction of 50% through September 2019. Key to this was discussing impacts with school districts.  Ensured partnership resulting in the dredging of Boone Creek.  Developed Request For Proposals document for Central Wastewater Treatment Plant Redevelopment Project. 78 General Administration – FY19/20 Goals & Objectives  Finalize the review, updating and codification of the McHenry Municipal Code.  Coordinate the “onboarding” of new City Council Members and the holding of a Strategic Planning Session with City Council and Directors.  Coordinate and develop the FY20/21 – FY24/25 5-Year Capital Improvement Program.  Develop an operationally balanced FY20/21 Budget for consideration by the City Council ensuring that the City maintains, per policy, a 120 day operational reserve and that funding over this amount are assigned and committed to capital improvement and capital equipment projects. Budget should meet or exceed the guidelines established for Distinguished Budget designation by the Government Officers Finance Association.  Continue engagement with the Illinois Municipal League and other stakeholders to monitor legislation at the State level that may impact municipal funding.  Continue to provide leadership and oversight to all departments to provide the highest quality of services in the most cost and time efficient manner to customers.  Interview and select a developer for the Central Wastewater Treatment Plant Redevelopment Project.  Continue to evaluate and identify alternative revenue sources. 79 General Administration – FY19/20 Performance Measures Item Goal Description FY19/20 Proposed Outcome(s) Capital Improvement Program (CIP) Develop an updated CIP and transmit to City Council in January. Was the CIP updated and transmitted to the City Council in January and approved in February? January 2019 February 2019 Annual Budget Develop and present a balanced operating budget for City Council consideration. Was a balanced operating budget presented for City Council’s consideration? April 2019 GFOA Distinguished Budget Award Presentation Prepare an annual budget that achieves national recognition via the GFOA’s Award Program. Did the City’s budget for the prior year receive the GFOA’s Distinguished Budget Award? Yes Resident Complaints/Inquiries Respond to a resident complaint or inquiry within one working day from receipt. % of time that General Administration staff responds within one day. 100% City Council Committee and Regular Meeting Agenda Packets City Council committee and regular meeting agenda packets will be distributed no later than the end of business Wednesday prior to scheduled meetings. % of time City Council Committee and Regular Meeting Agenda packets completed on time. 100% 80 Fiscal Year 2019/2020 Annual Budget Elected Officials 81 Elected Officials - Overview The Elected Officials Budget contains personnel and operational functions related to the elected positions of the municipality. These include the Office of the Mayor, the seven (7) Aldermen, and the City Clerk. The primary functions of these elected positions are described below. The Office of the Mayor provides leadership, initiative, and direction necessary to provide quality services to the citizens of McHenry. The Mayor interacts continuously with the appointed City Administrator in ensuring that the established policies and ordinances of the municipality, as set by the City Council, are carried out by the various departments, divisions and employees of the city. The City Council, comprised of seven (7) Aldermen representing geographically defined wards and elected to staggered four (4) year terms, is the legislative body for the City of McHenry. The authority of the City Council is expressed during regularly scheduled City Council Meetings (1st and 3rd Mondays of the each month) through the adoption of policies, resolutions, ordinances and other related actions as deemed appropriate to promote and protect the high level of service quality and financial stability of the City. The City Clerk, elected every four (4) years, has the responsibility for taking minutes for all regular City Council meetings, Council Committee meetings, Committee of the Whole meetings, and Planning and Zoning Board meetings. The City Clerk is also responsible for records management of the municipality. The City Clerk is assisted in these efforts by a designated Deputy City Clerk who is also a full-time employee of the city. Wayne S. JettMayor Victor A SantiAldermanWard 1 Andrew GlabAldermanWard 2 Jeffrey A SchaeferAldermanWard 3 Bobbi BaehneAlderwomanWard 4 Chad MihevcAldermanWard 5 Patrick DevineAldermanWard 6 Sue MillerAlderwomanWard 7 (Vacant)City Clerk Deputy City Clerk 82 83 Fiscal Year 2019/2020 Annual Budget Community Development 84 Community Development - Overview The Department of Community Development is responsible for promoting the health, welfare, safety and quality of life to McHenry citizens, property owners, visitors and commercial interests. These services are provided by an experienced and professional staff that consists of a Plan ReviewerCommercial Building SuperintendentInspector, Residential Building SuperintendentInspector, Plumbing Inspector, and a Code Enforcement Officer. The administrative staff within the department includes an Administrative Assistant and Office Assistant. The Department relies on a partnership with local and regional government and public agencies, community based organizations and the business community to succeed in its mission. The Department of Community Development strives to achieve the highest level of customer service and professionalism in helping the community thrive. Additionally, the Department of Community Development coordinates closely with the Director of Economic Development to ensure that business expansion, relocation and development projects remain top priorities for review and that processes are streamlined to the extent possible while maintaining the appropriate attention to detail in regards to applicable codes and other guidelines. 85 Community Development – Organizational Chart Community Development DirectorRoss Polerecky Commercial Building InspectorRyan Schwalenberg BuildingInspectorDave Watkins Plumbing InspectorGuy Smale Code EnforcementOfficerJake Marino AdministrativeAssistantPeggy Vlcek Office AssistantJulia Heil 86 Community Development – FY18/19 Accomplishments •Community Development successfully moved downstairs and joined space with the FinanceDepartment. This setup allows residents to utilize a single point of service counter for nearlyall municipal services within City Hall (Police, Economic Development, and Administrationon 2nd floor). •Coordinated efforts for a temporary impact fee reduction for single-family homes. Thisreduction proved to have an immediate impact with two major single-family home buildersclosing on roughly 200 developed, but vacant, lots. •Continued efforts to digitize historical building documents. •A comprehensive review of minor building permit fees for both residential and commercialpermits was completed. This was discussed at a committee level with a motion to bring toCity Council. •Identified areas within the Municipal Code that are in need of updating. This includedchanges to the sign ordinance as well as the recreational burning ordinance. •Increased efforts with Economic Development Director to retain and attract new business toMcHenry. •Coordinated Business Site Visits, particularly new businesses, and enhance relationshipswith all businesses. •Continued efforts to maximize the use of the BSA software and explored the cost of the citizen portal that allows citizens and contractors to submit electronically. •Continued a focus on customer service enhancements. •Continued to coordinate with Administration to cross-train point of service employees witha goal of establishing a seamless, single point of customer contact. •Major improvements were made to the city’s code enforcement grass mowing program.Through these efficiencies, staff was able to save over $20,000 in the contractual servicesbudget. •Many notable construction projects were started in this fiscal year to include:-Full Circle Communities-JA Frate Expansion-Jexals Wing-Zeria-Hub Market-Hospital Cancer Care Facility and ICU Remodel-Expansion of ALDI Grocery Store-Major Improvements to McHenry Township Fire Protection District Station One 87 Community Development – FY19/20 Goals & Objectives • Continue to review and update outdated ordinances. • Concentrate on updating the current website with more customer service-oriented material. • Expand and implement a social media program to help get information to the citizens as it relates to Community Development. • Continue to provide a high level of customer service to residents and businesses. • Continue to supply exemplary building inspection services on all projects. • Focus on continuing education of employees within the department to ensure that we provide the highest level of service possible. • Complete a comprehensive review of the capital development and impact fees. • Explore options to expand the rental registration program. • Focus on vacant properties, explore options for a vacant property ordinance. • Implement a resident/contractor portal to allow online submittals of permits and other building related materials. • Continue efforts to increase single family home growth within the community. 88 Community Development – FY19/20 Performance Measures Item Goal Description FY19/20 Proposed Outcome(s) Social Media Program Create a Social Media program to allow information to be relayed to the public Was the program implemented to include weekly social media posts relaying Community Development Information? Implementation of social media program Capital Development and Impact Fee Study To review and update capital development fees and impact fees Are capital development and impact fees actual depictions of their intended use To create accurate fees to go along with current economic times and market rates Single point of service counter To continue efforts to create a single point of service counter for better customer service relations Did staff continue to expand on customer service to provide residents with the best possible experience Continued customer service satisfaction Digitize historical building documents To continue to digitize building documents thus eliminating paper and creating an easier more efficient way to review these documents Create an effective schedule utilizing all department staff to efficiently scan and file documents. Digitize, label and file documents to create a more efficient method of searching reviewing old documents Grants Explore available grants to help businesses obtain monies to expand or upgrade within our community Explore grant writing available within the Community Development field Educate public on available grants to the community 89 90 91 92 93 Fiscal Year 2019/2020 Annual Budget Finance 94 Finance - Overview Mission Statement It is the mission of the Finance Department to account for all municipal resources and to apply such resources in a manner that is most beneficial to the citizens of McHenry. The primary operating functions of the Finance Department are as follows: • Administration: Responsible for management of financial affairs of the city, including budgeting and financial planning, and supervision of operations within the department. • Accounting: Provides the City’s financial reporting, payroll processing, accounts payable and receivable, purchasing, fixed asset reporting, special tax collections, billing, and auditing functions. • Revenue: Collects various revenues, manages the Police Pension fund, ensures payments to retirees are processed, and invests idle City funds. Note that the Finance Department expenditures include, under “Other”, transfers to other funds. 95 Finance – Organizational Chart Finance DirectorCarolyn Lynch Finance SpecialistAccounts PayableBonnie Rostron Finance SpecialistPayrollAccounts ReceivableAmy Nuss Finance SpecialistUtility BillingDebbie Glick 96 Finance – FY18/19 Accomplishments • Worked with the new time entry software to eliminate paper time sheets for all employees. Integration with Tyler Financial software is nearly complete. • Completed analysis on water/sewer usage and capital rates in order to ensure operating and capital expenses are covered. • Implemented the Paymentus Utility Bill payment website which allows residents to pay and view their bills electronically. • Recommended to full council for the elimination of vehicle stickers which was unanimously passed. • Recognized by the Government Finance Officers Association (GFOA) with the Distinguished Budget Award for the FY18/19 Budget document. This is the fourth year in a row that the City has received this award. 97 Finance – FY19/20 Goals & Objectives • Improve management of the City’s investment portfolio, including implementing cash flow modeling and investment strategies. • Create a procedure manual for all duties within the finance department including screenshots of the Tyler software to help with cross training. • Begin cross training within the finance department to ensure vacancies can be covered. • Improve communication of information to new residents. • Begin using Tyler Content Manager within the finance software more to scan documents in order to eliminate paper and streamline processes. • Fully implement the new time entry software and work to integrate the software with the Tyler Financial Software. • Submit FY19/20 Budget to the GFOA for consideration for the Distinguished Budget Award. 98 Finance – FY19/20 Performance Measures Performance Item Performance Goal Performance Measure FY19/20 Proposed Outcome(s) Quarterly Reports Develop an update quarterly reports and transmit to the appropriate board. Was the quarterly report updated and transmitted to the board quarterly? September 2019, December 2019, March 2020, and June 2020 Annual Budget Develop and present a balanced operating budget for City Council consideration. Was a balanced operating budget presented for City Council’s consideration? April 2020 Annual Audit Continually have an unqualified audit opinion Whether or not an unqualified opinion has been issued An unqualified opinion issued on the 19/20 audit presented to council in September or October of 2020 Customer and Vendor Concerns/Complaints Return all calls within one business day % of Time that Finance Department Responds to Calls within one business day 100% of the time respond to calls within one business day. Annual Budget Award Annually apply for the Illinois Government Finance Officers Association (IGFOA) budget award Annual application of budget award submitted to the IGFOA Apply once budget has been approved by the City Council 99 1234 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 A B E G I J K L M N Account Account FY15/16 FY16/17 FY17/18 FY18/19 FY18/19 FY19/20 Number Description Actual Actual Actual Budget Estimated Proposed Salaries/Benefits4010Salaries 234,712 229,686 256,551 312,962 301,147 332,191 19,229 7.97%4030 Salaries - Part Time 23,358 40,804 31,159 - (67) - - 0.00%4050 Overtime - - - - - - - #DIV/0!4310 Health Insurance 69,284 62,779 71,592 65,820 64,329 65,866 46 0.07%4320 Dental Insurance 2,859 2,375 2,319 2,382 2,327 2,436 54 2.31%4330 Life Insurance 182 184 199 246 202 205 (41) -20.50%4340 Vision Insurance 132 157 242 267 271 272 5 1.99%4410 FICA Medicare 18,302 19,315 20,536 23,942 21,434 25,413 1,471 6.79%4420 IMRF Retirement 33,821 35,237 35,683 39,120 34,704 36,541 (2,579) -7.13%4510 Uniform Allowance - - - - - - - #DIV/0!TOTAL SALARIES/BENEFITS 382,650 390,537 418,281 444,739 424,347 462,924 18,185 4.47%Contractual Services5110Contractual 9,544 13,370 14,246 9,500 9,089 8,500 (1,000) -10.53%5310 Postage and Meter 32,291 26,787 26,834 30,200 31,339 22,200 (8,000) -26.49%5320 Telephone 501 628 1,667 - - - - 0.00%5330 Printing and Publishing 15,786 26,939 15,540 19,535 16,532 4,000 (15,535) -73.16%5410 Dues 525 750 525 525 525 525 - 0.00%5420 Travel Expense - - - - - - - #DIV/0!5430 Training - - - 500 - 500 - 0.00%5450 Publications - - - - - - - #DIV/0!TOTAL CONTRACTUAL SERVICES 58,647 68,474 58,812 60,260 57,485 35,725 (24,535) -39.22%Supplies6110 Materials and Supplies 82 291 258 - 481 - - #DIV/0!6210 Office Supplies 8,387 5,765 2,017 7,000 4,062 6,000 (1,000) -14.29%6250 Gasoline and Oil - - - - - - - #DIV/0!6270 Small Equipment 219 - - - - - - #DIV/0!TOTAL SUPPLIES 8,688 6,056 2,275 7,000 4,543 6,000 (1,000) -14.29% Variance ($) Variance (%) Finance - Fund Summary (Fund 100, Department 04)100 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 A B E G I J K L M NOther6940Administrative Expense - - - - - - - #DIV/0!6945 Development Expense 437,871 546,524 721,519 650,000 736,750 755,000 105,000 16.15%6961 Miscellaneous Expense - - - - - - - #DIV/0!9904 Transfer to Debt Service 729,960 726,318 735,361 739,993 739,993 379,804 (360,189) -48.98%9907 Transfer to SSA - - - - - - - #DIV/0!9909 Transfer to MFT - - - - - - - #DIV/0!9942 Transfer to Capital Improvement Fund 1,254,822 4,795,570 - - - - - 0.00%9944 Transfer to Band Fund 15,000 15,000 12,000 12,000 12,000 12,000 - 0.00%9945 Transfer to Civil Defense Fund 5,000 8,000 8,000 8,000 8,000 6,000 (2,000) -25.00%9946 Transfer to Capital Equipment Fund 243,225 - - - - - - 0.00%9920 Purchase of Service - Risk Management 19,730 17,178 16,226 16,226 16,226 16,226 - 0.00%9922 Purchase of Service - IT 53,960 63,655 64,763 66,889 66,889 69,361 2,472 3.82%TOTAL OTHER 2,759,568 6,172,245 1,557,869 1,493,108 1,579,858 1,238,391 (254,717) -8.74%TOTAL FINANCE 3,209,553 6,637,312 2,037,237 2,005,107 2,066,233 1,743,040 (262,067) -7.72%101 Fiscal Year 2019/2020 Annual Budget Human Resources 102 Human Resources – Overview The Department of Human Resources and Director of Human Resources coordinates the employee and risk related functions of the City. This includes compensation, benefits, wellness, staffing, recruitment & selection, internal policies, workers compensation and safety, performance management, labor relations, and employee relations, training, and process improvement. Through the establishment of the McHenry Recreation Center, the staffing size of The City has grown to have an average of 275 full and permanent part time employees. During the summer season this increases to around 330 employees. Prior to FY18/19, human resources functions and related expenditures were found within the General Administration Budget. Given the growing specialization of human resources issues, these have now been separated in to this separate budget fund. This is the reason that no individualized budget information is available prior to FY18/19. In addition to human resources functions, the Director of Human Resources is also responsible for the point-of-service administrative personnel that staff the front counter of the Municipal Center. 103 Human Resources – Organizational Chart Director of Human Resources Ann Campanella Office Assistant Lynn Martenson 104 Human Resources – FY18/19 Accomplishments •In Time: Scheduling & Attendance system. HR & payroll spent much time in 2018continuing the integration of the City’s attendance, scheduling and payroll systems with InTime. This system will eliminate the paper time sheets that currently take three days andmultiple people to verify and process. In 2019 the integration with Tyler was completely taken on by Payroll. •IPBC. The 2018 benefit year was spent resolving contract issues, learning IPBC systems andbecoming more involved with IPBC operations by attending and participating in regionalmeetings. •BenefitSolver. While this is a great online system, there were many functional issues toresolve in 18/19. Worked with Benefitsolver teams on processing issues, billing issues, andpreparaing for 2018 open enrollment, •Classification & Compensation. New system was adopted mid-2018. •Family & Medical Leave. Implemented a new online FMLA tracking system •Employee Relations. A significant amount of time is being spent on employeerelations/employee conflict issues and performance related issues. Those that need it arereceiving the coaching and guidance needed to resolve and improve issues at the employeelevel. Some larger issues have been referred to employee assistance program (EAP) for ahigher level of intervention. •Recruiting & Onboarding. While this is a core component of human resources, thisdepartment has recruited a high number of new employees leading to a significant increase in the time spent on pre-employment and employment activities. This continues as keyemployees are retiring. This provides the opportunity to look at re-organizing and updatingdepartments for efficiency and greater effectiveness utilizing new technology and enhancedskill levels of incoming new employees. •Front Counter/Customer Service. An employee retirement in May 2018 gave theopportunity to re-assess the work load, move Parks related tasks to the Recreation Centerstaff, and improve customer service to our residents. •Liability Insurance. Took on processing liability insurance and claims from retiring DeputyClerk. Administered over 30 claims including workers compensation, auto accidents,property damage. 105 Human Resources – FY19/20 Goals & Objectives • Hire and train an HR Assistant/Coordinator to process the day to day transaction and assist with projects. • PowerDMS. This is a holdover from the previous year. This software will manage documents and the distribution of documents such as the employee handbook and policies. • Continue to update Employee Handbook and use PowerDMS for distribution to employees and compliance. • Create Performance Management system including evaluation tool. • Upgrade Applitrack. Frontline has made many improvements to Applitrack, but will need time to manage the upgrades, determine which upgrades apply to us, re-issue and train other users. • Risk Management. Create an internal tracking system of workers compensation and liability claims. We need to be better at determining trends and mitigating our losses. 106 Human Resources – FY19/20 Performance Measures Item Goal Description FY19/20 Proposed Outcome(s) Performance Management Revise Performance Mgmt. System Find a web-based system to customize by dept. needs Implement Performance Mgmt. System Upgrade Applitrack Implement the many changes Frontline has been working on Current software provider has enhanced the system, but will require a time commitment from HR to upgrade Complete Applitrack upgrades Power DMS Use to revise Employee Handbook and distribute policies. Software that tracks changes, stores and distributes utilizing employee signatures for compliance Manage large documents and increase communication. Risk Management Create internal tracking system for workers compensation and liability claims Tracking system will help identify trends, plan training and others ways t mitigate losses .Have a viable tracking system to analyze claims. Assistant/Coordinator Develop position hire and train new employee The volume and level of HR work has increased. This position would also back up payroll and takes some benefit/union work from payroll Improve wellness, training, and other areas. Concentrate on strategic goals while asst. helps with day to day tasks 107 1234 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 A B E G I J K L M N Account Account FY15/16 FY16/17 FY17/18 FY18/19 FY18/19 FY19/20 Number Description Actual Actual Actual Budget Estimated Proposed Salaries/Benefits4010Salaries 93,949 95,423 149,590 55,641 59.22%4310 Health Insurance 9,195 8,866 28,423 19,228 209.11%4320 Dental Insurance 417 398 1,091 674 161.63%4330 Life Insurance 41 34 82 41 100.00%4340 Vision Insurance 70 67 140 70 100.00%4410 FICA Medicare 7,187 7,200 11,444 4,257 59.23%4420 IMRF Retirement 11,743 11,082 16,455 4,712 40.13%TOTAL SALARIES/BENEFITS - - - 122,602 123,070 207,225 84,623 69.02%Contractual Services5110Contractual 29,944 21,408 38,125 8,181 27.32%5410 Dues - - - - #DIV/0!5420 Travel Expense - - - - #DIV/0!5430 Training 4,000 - 4,500 500 12.50%5450 Publications - - - - #DIV/0!TOTAL CONTRACTUAL SERVICES - - - 33,944 21,408 42,625 8,681 25.57%Supplies6110 Materials and Supplies - - - - #DIV/0!6210 Office Supplies - - - - #DIV/0!TOTAL SUPPLIES - - - - - - - #DIV/0!Other6940 Administrative Expense - - - - #DIV/0!9922 Purchase of Services - Information Tech 8,237 8,237 8,581 344 4.18%TOTAL OTHER - - - 8,237 8,237 8,581 344 4.18%TOTAL HUMAN RESOURCES - - - 164,783 152,715 258,431 93,648 56.83% Human Resources - Fund Summary (Fund 100, Department 05) Variance ($) Variance (%)108 Fiscal Year 2019/2020 Annual Budget Economic Development 109 Economic Development – Overview The Department of Economic Development Budget contains personnel and operational functions related to the provision of economic development services in the City. Prior to FY18/19, costs related to economic development activities and personnel were accounted for in the General Administration and Community Development Budgets. With a growing emphasis on economic development activities, a separate budget fund was established to account for expenditures. The Department of Economic Development includes the positions of Director of Economic Development, Economic Development Coordinator and Assistant of Economic Development. The Department is responsible for providing economic development-related-services, support, and communications to elected officials, staff, and the general public in carrying out the policy and direction as set by the City Council. The Director of Economic Development is responsible for overseeing the day-to-day operations of the Department of Economic Development and plays a key role in carrying out the business retention, expansion and attraction activities of the city. This position also serves as the primary point of contact for all economic development-related business activities of the municipality, is the liaison to the City’s Economic Development Commission (formed in 2017), and coordinates with the Director of Community Development in assisting with planning and zoning activities. 110 Economic Development – Organizational Chart Economic Development Director Doug Martin Economic Development Coordinator Dorothy Wolf 111 Economic Development – FY18/19 Accomplishments •The year saw 26 new businesses come to the City, including 7 downtown, as well as over150,000 square feet of business expansion in our industrial sector-J.A. Frate and Disk.Com; •Additionally, businesses within other sectors expanded, such as grocery, restaurant, serviceand retail as well. This includes Aldi, Speedway, Planet Fitness, Hub Market, Jexal’s andSnapology; •Business growth occurred in all geographic areas of the City, north, south, east and west. Itoccurred on the City’s major retail corridors, Illinois Route 120, Illinois Route 31, as wellwithin the City’s downtown areas and in the business parks as well; •Northwestern Medicine and Centegra Health System completed their merger; •A long-term care center was approved at Ridgeview Drive and Bull Valley Road, which willconsist of a 55,000 square-foot facility, produce 200 construction jobs and 150 full-timeequivalent jobs at opening and is valued at approximately $17.4 million; •In total, with all the projects brought to the City or expanded within the City McHenry shouldrealize a gain of approximately 321 full-time equivalent jobs; •In 2018, the City and Economic Development Commission had an interactive discussionabout education and economic development with McHenry High School District 156 andMcHenry District 15. Moreover, they recognized the following businesses for theircontinued commitment and dedication to the City: Gary Lang Auto Group (35 years); Pioneer Center (60 years); Little Chef (50 Years); and Buss Ford (90 years); •Maintained active Facebook Page, McHenry Market Pulse, to engage community and provideconsistent and accurate information as it relates to economic development andconfirm/dispel rumors; as well as YouTube Channel and Instagram; •Attended 2018 International Council of Shopping Centers Convention in Las Vegas; •Community Champion for District 156 INCubatoredu Program; •Assisted in holding 3rd annual Manufacturing, Trades, and Industry Expo; •Assisted with National Apprenticeship Week (banners) and participated on NationalApprenticeship week Committee; •Worked with Home of the Sparrow in securing $115,000 grant for watermain extension sothey could install sprinklers; •Sent letters to all new businesses thanking them for locating in the City; expanding, etc; •Presented and reviewed twenty-two cases before the Planning and Zoning Commission; 112 • Attended McHenry Area Chamber of Commerce Business Scramble; • Worked with McHenry County Highway Division and the Cities of Woodstock, Crystal Lake and others on promoting Pace Paratransit Program and assessing future agreements with regards to the same; • Nominated manufacturers for McHenry County Economic Development Business Champion Awards (2018- winner: Follett Solutions); • Wrote incentive and annexation agreements and ordinances to facilitate and promote business attraction, retention and/or expansion; • Worked with McHenry County College/Small Business Development Center (business attraction and retention-MCC Manufacturing Breakfast); • Represented City in attending McHenry Area Chamber Mixers, Multi-Chamber Mixers; Ribbon Cuttings and Grand Openings for New Businesses; • Assisted Community Development, writing amendments to the zoning ordinance, subdivision control and development ordinance and municipal code to assist businesses; • Continued to serve as member of McHenry County Public Transit Access Committee and MCRide Subcommittee; • Attended McHenry County Workforce Network Meetings (serve as proxy for City Administrator); • Coordinated Business Site visits; • Worked cooperatively with key property owners and McHenry Area Chamber of Commerce, downtown business owners and other relevant organizations and parties in seeking additional ways to revitalize downtown, working more closely with businesses with the goal being to attract additional investment in the downtown area, retain existing businesses, promote investment in older properties and assist smaller businesses struggling to keep doors open; • Worked on securing agreement with McHenry Township to continue providing free paratransit rides. • The Economic Development Commission completed a trade area analysis, promotional video of the City, developed a policy for business awards and toured McHenry County College; • The Planning and Zoning Commission worked diligently reviewing the Existing and Future Land Use Maps, developed the “McHenry Loop” as part of the Future Land Use Map and adopted a consistency policy as well. The Commission also adopted amendments to the zoning ordinance creating a Mixed-Use District and Agriculture District. 113 Economic Development – Performance Measures Item Goal Description FY 19/20 Proposed Outcome(s) Annual Budget Develop and present a realistic and effective economic development annual working budget for City Council consideration. Was a realistic and effective economic development budget presented for City Council’s consideration? April 3, 2018 Zagster Bike Sharing Program Work with Visit McHenry County in launching Zagster Bike Sharing Program Was the Zagster Bike Sharing Program practical and successful? Was it funded and implemented? Yes Marketing of City Develop various avenues of marketing the City to effectuate business attraction, expansion and retention. What forms of marketing were utilized? Video, Word of Mouth; Social Media; Economic Development Commission City Council Regular Meeting Agenda Packets City Council regular meeting agenda packets will be thorough and include necessary information for City Council to make appropriate decisions. City Council Regular Meeting Agenda packets were considered thorough and completed. Supplements which are error free, complete and comprehensive Planning and Zoning Commission Continuation of Comprehensive Update Process Continue updating comprehensive plan Work off of update of Future Land use Map and Existing Land Use Map Complimentary updates to Comprehensive Plan of Future Land use Map and Existing Land Use Map Educate residents about economic development Work with police and other departments to hold off-site educational sessions at library, etc. on different topics. Provide Power Point, videos and hold talks on various economic development topics People in City and outside of City become more informed and engaged about economic development Attend community events, programs to promote City, business, etc. Attend a minimum of 5-7 community events/business site visits Attendance at 5-7 events/site visits Promotion of City, City businesses, City events or events within City 114 Item Goal Description FY 19/20 Proposed Outcome(s) Implement Community Development Block Grant Successfully implement $115,000 Community Development Block Grant Work with Home of the Sparrow and Public Works Department Extension of 400’ of watermain Develop Mural Policy Implement Mural Program Present policy and program to City Council and market to businesses Work with businesses to have several murals painted on buildings Attend Manufacturing Site Visits Schedule and conduct five manufacturing site visits Visit manufacturers to find out their needs Form better relationships with at least five manufacturers Attract more small businesses downtown and to east and west and west sides of City Bring more businesses to the blighted and downtown areas of the City Are there less vacant and blighted structures on the east and west sides of town and throughout downtown, diversity of land uses? More diverse land uses, less blight, less vacant structures and buildings Develop Business Incentive Policy Work with Economic Development Commission and Finance and Personal Committee in developing policy Is the policy realistic? Does it address incentives and is it equitable and deal with the City’s goals? Realistic and implementable Business Incentive Policy Business Retention Learn needs of Businesses Face-to-Face Visits with Non- Primary Employers Form better relationships with businesses so they are more likely to contact you for assistance Apply for Chicago Metropolitan Agency for Planning Technical Assistance Grant Work with Chicago Metropolitan Agency for Planning and Planning and Zoning Commission in applying for technical assistance grant for ordinance updates Continue to work on updating Comprehensive Plan and Ordinances in applying for grant for Subdivision Ordinance update Updated Subdivision Control and Development Ordinance or other updated document which a grant could be utilized for 115 116 Fiscal Year 2019/2020 Annual Budget Police Commission 117 Police Commission – Overview The purpose of the Police Commission is to select sworn personnel in accordance with the employment policies of the City of McHenry, as well as investigate conduct hearings regarding any sworn member of the McHenry Police Department. 118 119 Fiscal Year 2019/2020 Annual Budget Police 120 Police - Overview Vision Statement The McHenry Police Department will maintain the highest standards of criminal justice excellence in all aspects of policing. Through these standards the McHenry Police Department will define itself as a leader in the industry by those we serve and protect. Mission Statement The Mission of the McHenry Police Department is to work in a true partnership with the citizens we serve, enhance the quality of life and provide excellence in public safety. Agency Values The McHenry Police Department is charged with the responsibility to serve and protect the citizens of McHenry. Our agency values provide the foundation for our mission and guide us in our effort to meet the vision of the agency. The McHenry Police Department operates off the core values of; Integrity, Courage, Service, Honor and Duty. Agency Structure The McHenry Police Department is the third largest law enforcement agency in McHenry County. Organized into three main divisions of Administration, Support Services and Field Operations, the McHenry Police Department serves and protects the citizens of McHenry and all those who visit. Within each division specialty units are established to meet specific needs of the agency that support our vision and goals. The McHenry Police Department is a community oriented organization that operates off of a problem-solving philosophy. The Administration Division is comprised of the Chief of Police, Deputy Chief of Police and an administrative assistant. The Support Services Division and Field Operations Division are each headed by Division Commanders who report to the Deputy Chief of Police. The Deputy Chief of Police reports to the Chief of Police. All sections and units of the organization are structured under one of the following divisions. Field Operations Division The Patrol Section is the largest component of the Field Operations Division and is responsible for responding to both emergency and non-emergency calls for services from the public. The Patrol Section is divided into three shifts in order to provide 24-hour police services. Each shift is supervised by two Sergeants. Uniformed Patrol Officers and one Community Service Officer (CSO) are responsible for partnering with the community to protect life and property and to maintain peace, order and safety. In addition, this Division handles special assignments, self-initiated activities and addresses community concerns. Additional Units within Field Operations include; Field Training Unit, Canine Unit, Truck Enforcement Unit, Bicycle Patrol Unit, Major Crash Assistance Team, Mobile Field Force Officers and Tactical Response Officers. Support Services Division The Support Services Division is comprised of the Investigation Section, Accreditation Unit, Training Unit, Public Relations Unit, Communications Center and Planning/Research/Technical. 121 • Detectives work in plainclothes and provide expertise and resources to investigate crimes that happen in McHenry. Detectives are able to investigate crimes that are often complex and may extend over a significant period of time and geographical area. The cases are investigated until an arrest is made or there are no longer leads to pursue. Many of the investigators have received specialized training in the investigation of: homicides, child abuse, sexual assaults, juvenile delinquency, crime scene processing, felony property crimes, robberies, felony crimes against persons and cybercrime. • The Accreditation Unit is utilized to revise and draft department policy and ensure that the agency is performing its duties in a manner that is consistent with the Law Enforcement Commission on Accreditation for Law Enforcement standards. • The Training Unit is responsible for the management of all ongoing training for police personnel. Training includes annual in-house training such as Defense Tactics and Firearms along with all external training. Each officer and civilian employee is required to receive mandated training in accordance with our departmental policy, CALEA standards and Illinois statutes. This Unit is responsible for the coordination and implementation of thousands of hours of training each year. • The Public Relations Unit is charged with the responsibility to foster the community orientated philosophy and problem-solving practices of the McHenry Police Department. This is done through multiple educational and community events provided to our citizens by the police. • The Dispatch Center is the final component of the Support Services Division. This unit is a consolidated dispatch center that provides emergency dispatch services for sixteen (16) police, fire and EMS agencies. Although the center is owned and operated by the McHenry Police Department, a partnership between McHenry Township Fire, Harvard Police and Woodstock Police allows for joint decision making on policy development and shared financial responsibility. The Dispatch Center operates off of a separate budget which is managed by the Chief of Police and Deputy Chief of Police. • The Planning/Research/Technical sections coordinate the specific planning and research activities of the department, complete short and long term special projects, attend to critical risk management issues and research & write grant proposals. These sections also provide staff services in regards to agency purchases, operations, maintenance, repair and replacement of information technology related programs, systems, software and hardware. 122 Police - Organizational Charts Police Overall Chief of PoliceJohn Birk Deputy Chief of PoliceThomas Walsh Commander of Field OperationsPaul Funk Sergeant Day ShiftBrian McKeen Sergeant Day ShiftKevin Cox SergeantPM ShiftRobert Lumber SergeantPM ShiftKelly Ducak SergeantMidnight ShiftMichael Cruz SergeantMidnight ShiftEric Sexton Commander of Support ServicesRyan Sciame SergeantInvestigationsNicholas Clesen TelecommunicationsSupervisorJennifer Synek Records Clerks Lead Telecommunicator & Telecommunicators InformationTechnology Specialist CommunityService Officers Administrative AssistantDebora Shuett 123 Police Administration Chief of PoliceJohn Birk Deputy Chief of PoliceThomas Walsh Commander of Field OperationsPaul Funk Commander of Support ServicesRyan Sciame Administrative AssistantDebora Shuett 124 Police - Patrol Division Commander ofField OperationsPaul Funk Sergeant -Day ShiftBrian McKeen Sergeant -Day ShiftKevin Cox OfficerAnthony Mucciante OfficerJill Foley OfficerMarc Fisher OffierRyan Pardue OfficerJames Harris OfficerPaul Prather OfficerMichael Spohn OfficerRoger Hendrickson OfficerLuis Pena OfficerMegan Carey Sergeant -PM ShiftRobert Lumber Sergeant -PM ShiftKelly Ducak OfficerBrian Aalto Officer & Duke K-9Lawrence Popp OfficerOmar Morales OfficerMatthew Voelker OfficerRobert Klasek OfficerMatthew Voelker OfficerChristina Noyes OfficerJack Zumwalt OfficerJoshua Conway OfficerPeter Mader Sergeant -Midnight ShiftMichael Cruz Sergeant -Midnight ShiftEric Sexton OfficerJohn Adams OfficerRobert Beaudoin OfficerMatthew Schmitt OfficerJoseph Lazicki OfficerRichard Rewiako OfficerDinka Malik OfficerKatelyn Lorenz OfficerBryan Wegner OfficerVacant OfficerSean Klechak 125 Police – Investigations Division Commander ofSupport ServicesRyan Sciame Sergeant -InvestigationsNicholas Clesen DetectiveRobert Roske DetectiveAdriana Birk DetectiveBrett Kinney DetectiveJaimie Prather School Resource OfficerJason Ducak School Resource OfficerSamuel Shafer 126 Police – Support Services Division Telecommunications, Records, Community Service Officers, IT Commander ofSupport ServicesRyan Sciame Telecommunications Dispatch Center Supervisor Jennifer Synek Lead Telecommunicator(2) PositionsJustin Leibach & TBD Day Shift DispatcherLaura Cox DispatcherChristine DawsonDispatcherKathleen Gallagher DispatcherAmy McKendry DispatcherHolly Neville DispatcherDexter Barrows DispatcherMaria Joseph DispatcherGrant Havens DispatcherKatherine Fitzgerald DispatcherAmy Johnson Night Shift DispatcherPatricia Garrett DispatcherKelly Schmitt DispatcherTracy McNamara DispatcherSamantha McMeen DispatcherTracy Vasquez DispatcherRyan Miller DispatcherGwendolyn Allen DispatcherKaitlin Durband DispatcherNicole Arand DispatcherTBD Records, Community Service Officers, Information Technology, Public Affairs Records ClerkMarybeth Varvil Records ClerkDebra Shoemaker CALEA / Training CoordinatorStephanie Erb Community Service OfficerDave Porter IT SpecialistJeffery Forester Public Affairs Officer Patrick Polidori 127 Police – FY18/19 Accomplishments Personnel • On May 14th, 2018, Peter Mader was sworn in as a police officer. Peter is a Prairie Ridge High School graduate. He also attended McHenry County College and Illinois State University. Peter previously served as a police officer with the Island Lake Police Department. • On June 2nd, 2018, Tracy Vasquez joined the police department as a Telecommunicator. Tracy previously served as a Telecommunicator with the North Chicago Police Department, but has also served as a Community Service Officer/Telecommunicator with the College of Lake County (IL) and a Telecommunicator with the California Highway Patrol. • On June 19th, 2018, Roger Pechous returned to the police department as its FOIA Officer. Roger previously served the McHenry Police Department starting as a patrol officer in 1980 and retired as Deputy Chief of Police in 2010. • On June 22nd, 2018, Luis Pena was sworn in as a police officer. Luis is an Antioch Community High School and Western Illinois University graduate. Luis had served as a Community Service Officer with the Antioch Police Department. He had also served as a police officer with the Cook County Forest Preserve District and the Chicago Police Department. • On September 12th, 2018, Megan Carey was sworn in as a police officer. Megan is originally from Auburn, Illinois, and is a graduate of Eastern Illinois University. Megan previously had been working with Centegra Health Systems as a Clinical Inpatient Dietician. • On November 12th, 2018, Amy Johnson joined the police department as a Telecommunicator. Amy previously served with the Village of Antioch as a Telecommunicator. • On November 26th, 2018, Nicole Arand joined the police department as a Telecommunicator. Nicole previously had been working with Astute Web Group in Rockford where she was a Senior Project Manager and Lead Graphic Designer. Training With a continued commitment to training, sworn officers and civilian staff members of the McHenry Police Department participated in over 6,300 hours of training, both internally and externally. Training directly affects the success of service provided to the community and liability placed on the City. Some highlights were: • Chief Birk and Deputy Chief Walsh attended the International Association of Chiefs of Police Conference and received world-renown training in topics that addressed contemporary or emerging issues confronting the law enforcement profession and the leaders of law enforcement agencies worldwide. • Chief Birk attended the annual International FBI Conference. Chief Birk received training in topics related to; improving the administration of justice in police departments, defining new law enforcement standards, building community trust, counterterrorism, and 21st Century Policing. 128 • Commanders Sciame and Funk attended the annual Illinois Law Enforcement Alarm System (ILEAS) Conference. This conference provided both Division Commanders with training on topics related to the Incident Command System, law enforcement mutual aid and interoperable communication platforms. • Telecommunications Center Supervisor Synek and Telecommunicator Fitzgerald attended the International Academies of Emergency Dispatch (IAED) Navigator Conference. This training conference is the premier training conference for the police, fire and medical dispatching profession. • On September 20th, 2018, the police department participated in a large scale training drill with the McHenry Community High School District 156, McHenry Township Fire Protection District, and Centegra – McHenry. The drill consisted of police response to an active assailant at MCHS – East Campus with numerous victims and the evacuation of the entire school building to a secondary location. Advanced training was also conducted in: • Law Enforcement Administration • Canine Unit Operations • Narcotics Investigations • Weekly Case Law Updates • Crime Scene Investigations • Homicide Investigations • Interview & Interrogations • Special Response Teams Training • Rapid Deployment Training • Firearms Training • Critical Accident Investigations • Patrol Operations • Arson Investigations • State Mandated Annual Training Segments Calls for Service In the 2018 calendar year the McHenry Police Department handled 27,544 calls for service through dispatch and police services. This is a decrease of only 98 calls from the 2017 calendar year. The following list highlights types and volume of specific areas of investigation by the department. These investigations resulted in over 267 felony and misdemeanor arrests during the 2018 year. Homicide 0 Sex Offenses 27 Robbery 3 Burglary 29 Theft 240 Motor Vehicle Theft 21 Weapons Offenses 6 Domestic Disturbances 472 Drug Investigations 151 Fire Investigations 28 Death Investigations 33 Burglary to Vehicle 60 Juvenile Incidents 212 129 Mutual Aid During FY 2018/19 the McHenry Police Department participated in multiple mutual aid requests. Chief Birk (Team Commander) along with Commander Sciame and Sergeant Ducak participated in 4 taskforce callouts through the McHenry County Major Investigation Assistance Team (MIAT), which resulted in multiple arrests for 1st Degree Murder. Sergeant Cox (Team Commander) along with multiple officers from the McHenry Police Department participated in three callouts through the McHenry County Major Accident Assistance Team, which resulted in the investigation of two vehicle fatalities. Public Safety Initiative During FY 2018/19 the McHenry Police Department continued to take on the opioid and heroin crisis head on. Through a multi-tiered approach of solving this crisis, the McHenry Police Department has taken action through enforcement efforts (arrests and drug seizures), the use of Narcan and participation in the “A Way Out Program”. During the 2018 calendar year the McHenry Police saved 19 lives through the use of Narcan and assisted 29 people into the “A Way Out Program”. Accreditation The Commission on Accreditation for Law Enforcement (CALEA) has been an ongoing partnership for the police department since 2002. The purpose of CALEA is to improve the delivery of public safety services, primarily by: maintaining a body of standards, developed by public safety practitioners, covering a wide range of up-to-date public safety initiatives; establishing and administering an accreditation process; and recognizing professional excellence. • The continuous re-accreditation of the McHenry Police Department has proven that the agency has set and followed the following goals set by CALEA. • Strengthen crime prevention and control capabilities; • Formalize essential management procedures; • Establish fair and nondiscriminatory personnel practices; • Improve service delivery; • Solidify interagency cooperation and coordination; and • Increase community and staff confidence in the agency. • Developed a comprehensive, well thought out, uniform set of written directives. • Established a preparedness program that is ready to address natural or man-made critical incidents. • Strengthened the agency's accountability, both within the agency and the community. • Limited the agency's liability and risk Community Outreach The McHenry Police Department, in an effort to accomplish the agency’s mission, participates in many community outreach events each year. Below highlights some of the more notable events from FY 2018/19. Child Safety Seat Installations With support from IDOT Grant Funding and business partners within the community, the McHenry Police Department has seen a growing success with its Car Seat Installation Team. This team offers free installation of child safety seats to members of the community by licensed installation 130 technicians. Currently the police department has 10 certified technicians on our team and together they have installed over 130 car seats. Coffee with the Chief Since 2012, the police department has held an active “Coffee with the Chief” Program. Currently this program is a partnership with the McHenry Public Library. This public meeting is offered to residents of McHenry as part of the McHenry Police Department’s continued commitment in keeping our citizens and community informed about their police department. These events are opportunities for the Chief to obtain face to face feedback from our citizens. In FY 2018/19, topics presented included the Opioid outlook in McHenry County (with the McHenry County State’s Attorney), Anti-Bullying, and Common Scams around the Holidays. School Safety In FY 2018/19 the McHenry Police Department presented multiple school safety presentations at the grade school level in our continuing effort to provide a safe environment for our children. These presentations included uniformed officers teaching children on topics such as; Stranger Danger, Summer Safety, Walking to School and Pedestrian Safety. These presentations were done cooperatively with our Adopt-A-School program efforts. In addition, the department partnered with school administrators to conduct lockdown drills at each school. These drills are conducted to help our schools prepare for a critical incident and are required by state law. In FY 2018/19, the department continued to conduct double the required amount of training and lockdown drills that are required by law. These continued efforts will help insure the safety of our children. Adopt-A-School Program In FY 2018/19, the McHenry Police Department continued the agency’s “Adopt-A-School” program. This program pairs individual officers with specific grade schools with the community to increase awareness and safety within those schools. The program entails individual Day Shift patrol officers being assigned there own specific grade school. The objective is for the officers to get to know the faculty and students at their respective school so that the police department can provide a better service. This program involves activities such as foot patrols, classroom instruction blocks, training exercises, and a community approach to solving problems within our schools. The plan is designed to further the McHenry Police Department’s mission of increasing school safety in our local schools. Social Media Messaging During FY 2018/19, the McHenry Police Department increased its efforts to reach community members in new ways. Recognizing that many in and around our community utilize social media as an information source, the police department improved its efforts on Facebook and Twitter, increasing our followers by over 3,000 and reaching over 9,300. Since 2009, the McHenry Police Department has been using Nixle to communicate emergency messages in real-time. During FY 2018/19, the City of McHenry followed the police department’s lead and starting utilizing Nixle 360 in order for all department’s to increase communication with the community. The police department currently has over 19,000 subscribers to this free service. Special Olympics Illinois Special Olympics is a global organization that unleashes the human spirit through the transformative power and joy of sport, every day around the world. Through programming in sports, health, education and community building, Special Olympics is changing the lives of people with intellectual disabilities solving the global injustice, isolation, intolerance and inactivity they face. Special 131 Olympics Illinois provides opportunities for more than 22,500 athletes, more than 20,000 Young Athletes, 45,000 volunteers and thousands more people statewide through 18 area programs in all 102 counties of the state. The Law Enforcement Torch Run is the single largest year-round fundraising vehicle benefiting Special Olympics Illinois. The annual intrastate relay and its various fundraising projects have two goals: to raise money and to gain awareness for the athletes who participate in Special Olympics Illinois. The Law Enforcement Torch Run has raised nearly $43 million over 31 years while increasing awareness of Special Olympics athletes and their accomplishments. In order to raise funds for this worthwhile cause, the McHenry Police Department participated in the Polar Plunge, the annual Cop on Top event at Dunkin’ Donuts, a Butter Burger & Badges event at Culvers, and hosted a Trivia Night at Smith’s Central Garage. Our combined efforts helped to raise over $22,000.00 for the athletes of Special Olympics - Illinois. In June of 2018 McHenry officers participated in a leg of the Torch Run that ended at our own Knox Park and attended the Illinois Special Olympics Games as coaches. No Shave Fundraiser During the FY 2018/19 Chief Birk continued a fundraising campaign to benefit those in need during the winter months. This campaign allowed officers to grow beards by making personal contributions to specific charities. In October officers and staff personally contributed over $600 to juvenile diabetes research. In November officers and staff contributed over $600 to Symbrachydactyly research and St. Jude’s Research Hospital. In December officers and staff donated over $1300 which was used towards a gifts for MCHS students in need at Christmas. In January, February and March officers were able to grow beards if they participated in the annual St. Baldrick’s Event. Over a dozen officers and employees joined the police department’s St. Baldrick Team raising thousands of dollars and shaved their heads for an amazing cause. 132 Police – FY19/20 Goals & Objectives Below are the highlighted Goals and Objectives that the McHenry Police Department will focus on during the 2019/20 fiscal year. • Continue to provide the highest level of police services to the citizens of McHenry. • Complete the process of developing a hiring list of highly qualified lateral transfers. • Continue with the department’s renovation / expansion phases in order to meet the department’s performance and usage needs. • Seek and secure the highest level training opportunities for all agency members. • Continue and expand the department’s public relations/community involvement programs. • Continued support for overall community school safety through the School Resource Officers and the Adopt-A-School program. • Continue the department’s Traffic Safety Plan in order to keep our roadways safe. • Maintain fiscal responsibility and reduce any financial burden on the City through grant funding. • Continue to maintain professional standards by being assessed through the Commission on Accreditation for Law Enforcement Agencies (CALEA). • Continue to actively partner with other organization such as MCAT, MIAT, NIPAS and ILEAS in an effort to share police resources and reduce operational costs. • Replace five marked police vehicles and two unmarked vehicles, all with emergency equipment. • Replace four in-squad computers. • Reduce the amount of opioid (heroin) overdoses and deaths for 2019 as compared to 2020. 133 Police – FY19/20 Performance Measures Item Goal Description FY19/20 Proposed Outcome(s) Crime Rate Actively suppress property crime and crimes against persons in order to ensure the safety of the McHenry Community and its citizens. Did UCR reportable property crimes and crimes against person totals stay the same or see a reduction? February 15, 2018 Annual Police Budget Manage police department resources in an efficient and effective manner ensuring that community needs are met. To complete the FY 18/19 by keeping expenditure at or under approved police budget. April 30, 2019 Traffic Crash / Roadway Safety Create a safe roadway system within the City by enforcing traffic laws in order to create safe driving behavior. To complete the 2018 calendar year with an overall reduction in traffic accidents. A reduction is traffic crashes investigated in 2018 as compared to 2017. Accreditation To improve the delivery of public safety services, primarily by: maintaining a body of standards, developed by public safety practitioners, covering a wide range of up-to-date public safety initiatives; establishing and administering an accreditation process; and recognizing professional excellence. To successfully review and revise policies in accordance with new laws or practices; Complete CALEA proofs and reports as required. 1. Review and revise as needed all agency policies by January 2020. 2. Complete all required CALEA standard proofs and reports for the 2019 calendar year by February 2020. Community Relations Maintain a strong working relationship with the McHenry Community and its Citizens in order to maintain trust and support in our mission to serve and protect. 1. Improvements to community events such as; Child Safety Seat Installations, Coffee with the Chief, School Safety, Adopt-A-School Program, Garden Quarter Community Days, Special Olympics Illinois, safety Expos and MCPOA Events 2. Continued improvement to Public Relations and Social Media Interaction. An increase in attendance to all community events, positive community feedback and the launch of new initiatives by April 2020. 134 Training Provide the highest level of professional police services with the lowest liability or risk to the City and the Citizens who we serve. 2019/20 McHenry Police Department Training Plan. Illinois Police Training Act 50/ILCS 705/7 Meet or exceed all training requirements in the calendar year 2019, established by departmental policy and Illinois State Statute. Narcotics Enforcement Reduce the amount of opioid usage and overdoses. Arrest / Investigation enforcement action of the illegal sale and use of opioids. Narcan deployment. Participation in the “A Way Out” Program. Obtain a reduction in the amount of opioid (specifically heroin) overdoses and deaths in McHenry for the 2019 calendar year. Grants See alternative ways to fund police related projects that support the mission of the organization. Annual review of all grant submission applied for and all grant submission awarded. Awarded grant funding for traffic enforcement and ballistic vest purchases with a minimum of two additional grants to be applied for. 135 1234 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 A B E G I J K L M N Account Account FY15/16 FY16/17 FY17/18 FY18/19 FY18/19 FY19/20 Number Description Actual Actual Actual Budget Estimated Proposed Salaries/Benefits4010Salaries (Includes 4030 in FY17/18)938,382 356,353 322,428 327,068 344,317 340,564 13,496 4.13%4020 Sworn Salaries 4,146,478 4,318,074 4,417,961 4,555,484 4,576,684 4,856,374 300,890 6.61%4030 Salaries - Part Time 33,886 - - 19,800 - 19,800 - 0.00%4050 Overtime 47,009 2,305 2,461 5,000 1,000 5,000 - 0.00%4055 Sworn Overtime 234,891 241,823 231,515 244,500 267,990 244,500 - 0.00%4080 Career Ladder - 15,230 7,622 13,000 15,816 15,000 2,000 15.38%4310 Health Insurance 1,083,659 992,132 1,024,588 986,275 938,175 1,064,643 78,368 7.95%4320 Dental Insurance 42,838 36,564 37,025 38,096 36,416 41,222 3,126 8.21%4330 Life Insurance 2,435 2,089 2,078 2,122 2,480 2,245 123 5.80%4340 Vision Insurance 2,308 1,920 2,053 1,967 2,274 3,344 1,377 70.01%4410 FICA Medicare 393,039 362,641 361,913 395,111 388,307 419,315 24,204 6.13%4420 IMRF Retirement 128,547 46,504 40,376 42,127 40,155 38,577 (3,550) -8.43%4430 Contribution - Police Pension 1,386,205 1,521,914 1,868,798 2,019,703 2,017,100 2,082,421 62,718 3.11%4510 Uniform Allowance 30,084 25,318 21,622 29,800 19,031 31,000 1,200 4.03%TOTAL SALARIES/BENEFITS 8,469,761 7,922,867 8,340,440 8,680,053 8,649,745 9,164,005 483,952 5.58%Contractual Services5110Contractual 91,581 85,676 96,657 89,160 83,800 94,310 5,150 5.78%5310 Postage and Meter 3,585 2,817 3,629 3,000 1,927 3,000 - 0.00%5320 Telephone 50,650 55,687 65,836 29,712 28,103 30,000 288 0.97%5370 Repair and Maintenance 47,987 49,927 58,554 52,500 41,459 60,500 8,000 15.24%5410 Dues 1,325 2,320 930 1,800 930 2,100 300 16.67%5420 Travel Expense 11,448 15,277 12,960 20,500 8,772 24,800 4,300 20.98%5430 Training 17,588 34,038 26,231 28,225 31,102 32,395 4,170 14.77%5440 Tuition Reimbursements 7,755 11,708 8,308 9,000 - 9,000 - 0.00%5450 Publications 595 256 463 800 - 800 - 0.00%5510 Utilities - - - - - - - #DIV/0!TOTAL CONTRACTUAL SERVICES 232,514 257,706 273,568 234,697 196,093 256,905 22,208 9.46% Variance ($) Variance (%) Police Department - Fund Summary (Fund 100, Department 22)136 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 A B E G I J K L M NSupplies6110Materials and Supplies 16,785 29,648 19,709 22,900 20,603 23,900 1,000 4.37%6210 Office Supplies 16,185 17,541 16,133 17,200 12,264 17,900 700 4.07%6250 Gasoline and Oil 92,851 83,948 89,778 80,000 99,368 100,000 20,000 25.00%6270 Small Equipment 17,104 14,071 9,780 5,025 1,830 6,850 1,825 36.32%6310 K-9 Unit 3,993 4,369 5,386 5,300 3,721 5,300 - 0.00%6340 Forfeiture Expenses 1,497 - - - - - - #DIV/0!TOTAL SUPPLIES 148,415 149,577 140,786 130,425 137,786 153,950 23,525 18.04%Other9920 Purchase of Services - Risk Management 267,833 234,349 229,083 229,083 229,083 229,083 - 0.00%9922 Purchase of Services - Information Tech 228,746 162,405 244,816 288,107 288,107 292,861 4,754 1.65%TOTAL OTHER 496,579 396,754 473,899 517,190 517,190 521,944 4,754 0.92% Capital Outlay8300Capital - Equipment 26,342 119,890 70,162 19,650 160,796 34,575 14,925 75.95%8400 Capital - Vehicles 87,216 31,310 13,500 - - - - #DIV/0!TOTAL CAPITAL OUTLAY 113,558 151,200 83,662 19,650 160,796 34,575 14,925 75.95%TOTAL POLICE DEPARTMENT 9,460,827 8,878,104 9,312,355 9,582,015 9,661,610 10,131,379 549,364 5.73%137 Fiscal Year 2019/2020 Annual Budget McHenry Dispatch Center (DBA) NERCOM (North East Regional Communications) Dispatch Center 138 NERCOM - Overview Mission Statement The Mission of the McHenry Police Department is to work in a true partnership with the citizens we serve, enhance the quality of life and provide excellence in public safety. Primary Functions To provide emergency and non-emergency phone answering and dispatch services to our police and fire customers. The McHenry Dispatch Center (DBA – NERCOM) is a collaborative effort between four public entities. This collaborative effort is a partnership established by the McHenry Police Department with the McHenry Township Fire Protection District, the Woodstock Police Department and the Harvard Police Department. In the spirit of cooperation between communities and taxing bodies, and with a goal of increasing efficiency and effectively using public tax dollars, the four above listed agencies created this partnership. Through an Intergovernmental Agreement (IGA) each agencies shares the responsibility of providing policy and procedural guidance regarding dispatch services. Partnering agencies share fiduciary responsibilities identified through the IGA by a defined percentage of liability. In short, NERCOM expenses are divided based on the calls for service of the various partners, less revenues received from twelve (12) additional customer agencies. In an overview of the day-to-day operations of the center, at its optimal staffing level NERCOM is manned twenty-four hours a day, seven days a week, 365 days a year by a minimum of five dispatchers at all times. Each NERCOM dispatcher is crossed-trained to be proficient in both police and fire/rescue disciplines of dispatching. In addition, NERCOM provides Emergency Medical Dispatch services to all of our customers. Roles defined within the dispatch center include 911 call takers, police dispatch and fire/EMS dispatch. These defined roles allow for the center to provide services in the most efficient and effective way exceeding industry standards. Staffing for NERCOM consists of twenty (20) full-time civilian Telecommunicators, two (2) full-time Lead Telecommunicators and six (6) part-time Telecommunicators working twelve hour rotating shifts. NERCOM is supervised by one (1) full-time civilian Telecommunications Center Supervisor. All employees of the dispatch center are employed by the McHenry Police Department under the authority of the McHenry Chief of Police. Daily operational oversight of the dispatch center is assigned to the McHenry Police Commander of Support Services. 139 NERCOM - Organizational Chart NERCOM Board of DirectorsPolice Chief John Birk Commander of Support Services Ryan Sciame NERCOM Supervisor Jennifer Synek (2) Lead Telecommunicators Day Shift DispatcherG. HavensDispatcherM. JosephDispatcherA. McKendryDispatcherK. FitzgeraldDispatcherH. NevilleDispatcherK. Gallagher DispatcherC. Dawson DispatcherL. Cox DispatcherD. Barrows DispatcherA. Johnson Night Shift DispatcherS. McMeen DispatcherK. SchmittDispatcherMcNamaraDispatcherT. VasquezDispatcherR. Miller DispatcherG. AllenDispatcherN. Arand DispatcherK. DurbandDispatcherP. Garrett DispatcherN. Wilhelm 140 NERCOM – FY18/19 Accomplishments Personnel The following individuals were hired during FY 2018/19 in order to maintain our full-time telecommunicator staffing levels at twenty-one (22). • Maureen Doolan was hired February 12th, 2018 as a part-time dispatcher in our communications center. She is a current McHenry County Dispatcher with over 11 years of experience. • Tracy Vasquez was hired June 2nd, 2018 as a full-time dispatcher in our communications center. She was a previous full time dispatcher with the North Chicago Department and California Highway Patrol with a combined 10 years of experience. • Alexis Chancellor was hired August 23rd, 2018 as a part-time dispatcher in our communications center. She was a previous full time dispatcher with our communications center for before getting a full-time firefighter position. • Amy Johnson was hired November 12th, 2018 as a full-time dispatcher in our communications center. Amy was previously employed by the Village of Antioch Communication Center and has over 10 years of experience. • Nicole Arand was hired November 26th, 2018 as a full-time dispatcher in our communications center. Nicole has been a Project Manager and Graphic Designer for the 7 years at Asute Web Group. New Positions: During FY 2018/19 the McHenry Police Department added a second Lead Telecommunicator position which brought staffing levels up to twenty-two (22). This position is a working telecommunicator with supervisory responsibilities. Lead Telecommunicators work under the Dispatch Center Supervisor during afterhours timeslots in order to provide supervisory direction during non-business hours. Public Relations: During FY 2018/19 Several NERCOM telecommunicators were awarded the Scene Call Of the Year, regrading an accident involving injuries, recognized by Flight for Life. They were recognized at the monthly Flight for Life trustee meeting. Their actions directly affected the outcome of this call. In addition, NERCOM telecommunicators submitted an essay as part of the “Celebrate Your Center” contest to the International Academy of Emergency Dispatch. The essay highlighted their accomplishments since the consolidation occurred. Their essay placed 2nd and was published in the Nov/Dec issue of The Journal. Training The McHenry Police Department recognizes the need to make sure our telecommunicators offer the highest level of service to all we serve. During FY 2018/19 the dispatch center was vigilant in searching out training opportunities for our telecommunicators participating in over 1556 hours of training. 141 In addition to in-seat training opportunities, each telecommunicator participates in mandatory monthly on-line training sessions through Police Legal Science. This is an online training program, which offers real life scenario based training for emergency dispatchers. During FY 2018/19 employees of the dispatch center completed the following trainings: Employee Training Description Dates Attended: HOLLIE NEVILLE COMMUNICATIONS TRAINING OFFICER 03/19-3/21 2018 RYAN MILLER COMMUNICATIONS TRAINING OFFICER 03/19-3/21 2018 GRANT HAVENS COMMUNICATIONS TRAINING OFFICER 03/19-3/21 2018 NIKKI REICH T/C RESPONSE TO DV CALLS 7/18/2018 DEXTER BARROWS COMMUNICATIONS TRAINING OFFICER 12/17-12/19/2018 GRANT HAVENS IL PUBLIC SAFETY T/C CONFERENCE 11/4-11/06/2018 SAM MCMEEN IL PUBLIC SAFETY T/C CONFERENCE 11/4-11/06/2018 NICOLE ARAND EMERGENCY MEDICAL DISPATCH 12/17-12/19/2018 AMY JOHNSON EMERGENCY MEDICAL DISPATCH 12/17-12/19/2018 JUSTIN LEIBACH EMD-Q TRAINING 2/5/2018-2/6/2018 KELLY SCHMITT T/C UPDATE ON SEX ASSAULTS AND DV 4/20/2018 KATIE FITZERALD T/C UPDATE ON SEX ASSAULTS AND DV 4/20/2018 DEXTER BARROWS PIPELINE SAFETY 10/24/2018 TRACY MCNAMARA METRA SAFETY TRAINING 4/11/2018 KELLY SCHMITT FINGERPRINT TRAINING 6/13/2018 AMY MCKENDRY METRA SAFETY TRAINING 4/12/2018 NIKKI REICH METRA SAFETY TRAINING 4/12/2018 KATIE FITZGERALD NAVIGATOR CONFERENCE 4/23-4/27/2018 JENNY SYNEK NAVIGATOR CONFERENCE 4/23-4/27/2018 ALL EMPLOYEES QPR SUICIDE PREVENTION 2018/19 ALL EMPLOYEES LIABILITY TRAINING FOR 911 2018/19 ALL EMPLOYEES ANNUAL CPR CERTIFICATION 2018/19 ALL EMPLOYEES CAD TRAINING 2018/19 ALL EMPLOYEES ANNUAL ICS TRAINING 2018/19 ALL EMPLOYEES ANNUAL LEAD CERTIFICATION 2018/19 ALL EMPLOYEES MONTHLY POLICE/FIRE/EMS SCENARIO BASED TRAINING 2018/19 Funding Opportunities The overall goal of NERCOM is to offer excellence in emergency dispatch services at a cost that is competitive for all participating governmental agencies. NERCOM is proud to services sixteen (16) total agencies at an operational cost that is significantly lower than all other PSAPs, proving that consolidation can save money without sacrificing service. During the FY 2018/19 the McHenry Police Department applied for and was awarded grant funding by the State of Illinois to help offset the cost of expanded our center into a regional dispatch center. In January of 2019, the McHenry Police Department received $192,258.55 in funds that were used to offset the cost to renovate and expand the dispatch center. 142 Calls for Services During the 2018 calendar year NERCOM answered 38,730 Emergency 911 calls and 91137 non- emergency administrative calls. An additional 54,082 outgoing calls were made on the behalf of our customers for additional tasks. Currently NERCOM handled the following calls for service during the 2018 calendar year: Department Calls for Service McHenry City PD 27,544 Johnsburg PD 4,843 McHenry Fire 5,847 Marengo Rescue 1,279 Marengo Fire 377 Union Police 68 Union Fire 123 Marengo Police 5,100 Harvard Police 6,759 Harvard Fire 1,415 Woodstock Police 20,356 Woodstock Fire 5,037 Fox River Grove Police 4,739 Fox River Grove Fire 736 Cary Fire 2,134 Nunda Fire 429 Total 86,786 143 NERCOM – FY19/20 Goals & Objectives Below are the highlighted Goals and Objectives that the McHenry Police Department Dispatch Center will focus on during the 2019/20 fiscal year budget. • Improve the quality of services provided to public safety agencies. • Strengthen our customer base through strong customer relationships. • Development and revision of dispatch center policies and operational procedures. • Hire additional staff as needed. • Ensure that the McHenry Police Department is active in applying for grants related to equipment and personnel funding for the dispatch center. • Continue to seek out alternate sources of funding to supplement and/or reduce operational costs or fund continuing successful programs. • Maintain the minimum level of training for all dispatchers as dictated by policy and statute. • Install “Next Generation 911 Phone System” for the dispatch center and conduct all related advanced training. • Obtain Emergency Medical Dispatch (EMD) ACE Accreditation through Priority Dispatch. 144 NERCOM – FY19/20 Performance Measures Performance Item Performance Goal Performance Measure FY19/20 Proposed Outcome(s) Obtain state certification for Emergency Medical Dispatching Meet the standard goal of priority dispatch for certification All telecommunicators shall hold a current EMD certification from IDPH at all times. Measure will be evaluated continually throughout the year and produced in annual report . Emergency Call Processing Initially process 95% of emergency calls within 60 seconds of them being answered. Telecommunicator shall, within 60 seconds of answering an emergency call, acquire location of incident, phone number of caller, complaint type, and create a CAD event OR complete a PSAP to PSAP transfer at least 95% of the time. Measure will be substantiated through the use of quarterly reporting, which will culminate into an annual report. Emergency Call Dispatching Dispatch 95% of emergency calls within 90 seconds of them being answered. Telecommunicator group shall dispatch at least 95 % of all emergency calls within 90 seconds of them being answered. Measure will be substantiated through the use of quarterly reporting, which will culminate into an annual report. LEADS Hot File Entry All Criminal Hot Files will be entered without delay. Telecommunicator shall, within 60 minutes of receiving all necessary information, complete each Criminal Hot File entry into the LEADS/NCIC database. Measure will be based on regular auditing of the LEADS CHF records contained within the 911 center. Non-Emergency Call processing. Initially process 95% of all non-emergency calls within 120 seconds of them being answered. Telecommunicator shall, within 120 seconds of answering a non-emergency call, acquire location of incident, phone number of caller, complaint type, and create a CAD event OR complete a PSAP to PSAP transfer at least 95% of the time. Measure will be substantiated through the use of quarterly reporting, which will culminate into an annual report. Non-Emergency Call Dispatching Dispatch 95% of non- emergency calls within 150 seconds of them being answered. Telecommunicator group shall dispatch at least 95 % of all non-emergency calls within 150 seconds of them being answered. Measure will be substantiated through the use of quarterly reporting, which will culminate into an annual report. 145 146 Fiscal Year 2019/2020 Annual Budget Public Works Administration 147 Public Works Administration - Overview Public Works Departmental Mission The mission of the Public Works Department is to respond to the community needs consistent with the policies determined by the City Council, to maintain a working environment built upon trust, respect and citizen involvement, and to achieve the City's goal of being responsive to resident needs and focusing on customer service. The Public Works Department consists of six operating sections that provide high quality services to the citizens of our community. These sections include: Administration, Fleet Maintenance, Streets Maintenance, Water Division, Wastewater Division and Utility Division. Public Works Administration Mission It is the purpose of the Public Works Department’s Administration Division to provide direction and administrative support to the Department of Public Works. To complete Public Works Projects for the public welfare, to the highest quality, in accordance with legal and contractual standards, and in accordance with City Statutes. The Public Works Department is responsible for the management of all City Engineering and Construction Projects, Request for Proposal solicitation for Engineering and Construction projects, contract enforcement, and general technical assistance for the Public Works Department. There are several primary operating functions within the Public Works Administration Division. • To work with the Mayor, Council and City Administrator to ensure that the City’s policies and programs for the department are carried out in addition to managing the department. • To provide engineering services for a number of projects, plan review, and monitoring the work of the City’s contracted engineering. • To provide administration, oversight, budgeting and capital improvement program planning/implementation for the Street Division, Water Division, Wastewater Division, Utility Division and Fleet Maintenance Division of the Department of Public Works. The Public Works Administration Division includes the Director of Public Works Jon Schmitt, Project Engineer Troy Strange, Administrative Assistant Nicole Meyer, and Office Assistant Laura Barnett. 148 Public Works Administration – Organizational Chart Public Works Director Jon Schmitt Wastewater Division Superintendent Russell Ruzicka Assistant Superintendet Russell Adams Water Division Superintendent Mike Palmer Utility Division Superintendent Steve Wirch Crew Leader Mike Lange Streets Division Superintendent Scott Schweda Crew Leader Andy Lechner Forestry Crew Leader Mike Harper Administrative Assistant Nicole Meyer Project Engineer Troy Strange Part Time Office Assistant Laura Barnett 149 Public Works Administration – FY18/19 Accomplishments • Administration of the construction of the consolidation of the Central Wastewater Treatment Plant (CWWTP) and the South Wastewater Treatment Plant (SWWTP). • Management of biennial bridge inspections. • Administration of e-waste and Christmas lights recycling programs. • Administration of Honorary Street Sign Policy. • Administration of specifications, bids and purchase of Street Division Pickup Truck and Sewer Division Hook Truck with containers. • Administration and oversight of Refuse Collection Contract. • Awarded “Tree City USA” for the 24rd consecutive year. • Managed of construction project and consultant Phase III Engineering Services contract for the Recreation Center Parking Improvements. Project completed in the Summer of 2018. • Managed the construction project and consultant Phase III Engineering Services contract for the Green Street Bridge Rehabilitation project. Project substantially completed in the Fall of 2018. • Managed the construction project and consultant Phase III Engineering Services contract for the Pearl Street and Lincoln Road Project. Project substantially completed in the Fall of 2018. • Managed the construction project and consultant Phase III Engineering Services contract for the Ringwood Road Project. Project completed in the Summer of 2018. • Managed the consultant contract for completion of Phase II Engineering for Curran Road S-Curves. • Acted as lead agency for the management of the consultant contract for completion of Phase I Engineering for Bull Valley Road Multi Use Path project. • Completed the construction of the Timothy Lane and Clover Avenue Water Main Replacement Project with all Phase III Engineering Services performed “in-house” by Public Works staff. 150 • Completion of Central Avenue Storm Drainage Improvements to reduce nuisance flooding on Clearview Drive. Engineering design and securing of easement agreements complete “in-house” by Public Works staff. Construction of improvements completed “in-house” by Utility and Street Division staff. • Secured Surface Transportation Program (STP) Bridge funding for the rehabilitation of Oakwood Drive Culvert Crossing. • Selected firm for design engineering services for Home Avenue and Ramble Road Storm Sewer and Detention Improvements and began preliminary engineering. • Began data collection for Storm Sewer GIS Database. • Management to complete construction observation and contract administration for 2018 Pavement Maintenance Program (Reclamite). • Snowplowing Intergovernmental Agreement with McHenry Township and Nunda Township. 151 Public Works Administration – FY19/20 Goals & Objectives • Provide effective communication with the City residents about the various Public Works projects, programs, and services. • Ongoing management of the city’s refuse collection contract and e-waste/ Christmas lights recycling programs. • Provide responsible financial leadership while maintaining existing Public Works services. • Complete Phase II Design and meet the June 14, 2019 Letting for the Pearl Street ITEP Improvements. Select firm to perform Phase III Construction Engineering Services and manage the construction of the project. • Complete Phase II Design and meet the June 14, 2019 Letting for the Curran Road HSIP Improvements. Select firm to perform Phase III Construction Engineering Services and manage the construction of the project. • Act as lead agency and manage Phase I Engineering Services for Bull Valley Road Multi Use Path project. Secure Phase I approval through IDOT Local Roads and pursue Federal aid for the project. • Request for Qualifications (RFQ) to perform Phase I Engineering Services for the Oakwood Drive Culvert Rehabilitation Project and manage project. • Request for Proposals (RFP) to perform Preliminary Engineering Services for the Barreville Road Box Culvert Rehabilitation Project and manage project. • Manage design engineering services for Home Avenue and Ramble Road Storm Sewer and Detention Improvements, manage all consultant engineering services, and construct improvements in FY19/20. • Perform all Engineering Services for 2019 Road Program (Chickaloon Drive) “in house”. • Management to complete construction observation and contract administration for 2019 Pavement Maintenance Program (crack sealing and reclamite). • Administration of “in house” preparation of bid specification, bidding services, contract award and construction observation for Well #8 raw water transmission line. • Request for Proposals (RFP) to perform contracted trucking for the Boone Creek Dredging Project. 152 • Request for Qualifications (RFQ) to perform Design and Construction Engineering Services for the Lakeland Park Detention and Sediment Control Facility Project. • Final Design and Construction of the Millstream Lift Station and Sanitary Sewer Main Relocation Project. • Administration and “in house” bidding services, contract award and construction observation of the Ringwood Road Water Main Extension Project 153 Public Works Administration – FY19/20 Performance Measures Performance Item Performance Goal Performance Measure FY19/20 Proposed Outcome(s) Capital Improvement Program (CIP) Develop an updated CIP and transmit to Finance and Administration Department Was the CIP undated and transmitted to the Finance and Administration Department by the due date? Meeting deadline dates Annual Budget Develop and present a operating budget for to the Finance and Administration Department Was a operating budget transmitted to the Finance and Administration Department by the due date? Meeting deadline dates Resident Complaints/Inquires Respond to a resident complaint or inquiry within one working day from receipt % of time that Public Works Department staff responds within one day Respond to resident complaints/inquiries within one working day 100% of the time throughout the year Request for Proposals (RFP) Development Develop all RFP’s for Engineering Services and for Construction projects for which the City performs “in house” engineering services Status of RFP’s for budgeted projects All RFP’s completed, issued, and contracts awarded for projects in current budget year Project Management Manage City Engineering and Construction Projects and assure projects are completed on time and on budget Schedule and Budget status of City Engineering and Construction Projects All Engineering and Construction Projects completed on time and on budget Contract Enforcement Assure that City Engineering and Construction Projects are completed in accordance with contract documents and scope of services Quality Assurance of City Engineering and Construction Projects All contract work and scope items are completed in accordance with contract provisions Permit Reviews Review and issues utility permit applications and assure that City infrastructure is undamaged or is fully restored upon completion of permit work Status of issued permit All issued permits are completed and closed per the terms of the original permit application. No/minimal outstanding permits. Technical Support for Maintenance Staff Provide all requested technical support for City Maintenance Superintendents and Crew Leaders Completion status of requests for technical assistance All requests for technical assistance are completed on “as needed” basis 154 155 Fiscal Year 2019/2020 Annual Budget Public Works Street Division 156 Public Works Street Division - Overview Public Works Street Division Mission It is the mission of the Street Division to support and enhance a high quality of life for the City’s residents, businesses and visitors by providing a well-planned, environmentally sensitive, cost effective infrastructure through superb customer service. In addition, it will provide residents with a quality urban forestry program that is cost effective and delivers good stewardship for the natural resources of the community. The functions of the Street Division include street cleaning, street maintenance, responding to all resident requests, and ensuring roadways are cleared of snow and ice. All city-owned vehicles and various pieces of equipment are repaired and maintained at the Public Works Facility with two full-time mechanics. The division also maintains public sidewalks, curbs and the drainage system. The Street Division also provides residents with a quality urban forestry program that is cost effective and delivers good stewardship for the natural resources of the community. The arborist’s crew uses professional management practices in tree planting, maintenance and removal to improve the quality of the urban tree canopy. In summary, Street Division employees undertake the following tasks: • Crews remove snow, control ice, and conduct street cleaning in addition to making miscellaneous repairs. • Maintain and repair all City owned vehicles and various equipment through the City garage with two full-time mechanics. • Monitor maintenance of City streetlights and signals by a private contractor. • Maintain and repair the City’s drainage system to prevent flooding. • Monitor creek levels and maintain to prevent flooding. • Advises the department director on fleet and infrastructure needs and responds to service requests. • Tree planting; maintenance and removal, conduct tree inventories, survey trees for insect, disease and any hazardous tree problems, administer the Arbor Day Program, maintain the City’s status in the Tree City USA and Growth Awards Program. Work with other City departments, community groups and volunteers on tree related issues, and oversee the Tree Preservation Ordinance for compliance. • Oversee the mowing contract for City properties. 157 Public Works Street Division – Organizational Chart Street Division Superintendent Scott Schweda Maintenance Worker Nate Banwart Maintenance Worker Ron Barta Maintenance Worker Sam Burrafato Maintenance WorkerNick Goettsche Maintenance Worker Dave Christopher Maintenance Worker Robert Glascott Maintenance Worker Maintenance Worker Henry Lobermeier Maintenance WorkerRick Leisten Maintenance WorkerChris Sandoz Maintenance WorkerPedro Padro Maintenance Worker Jacob Reilly MechanicJason Lamz Mechanic Mike Owsley Crew Leader Andy Lechner Forestry Crew Leader Mike Harper 158 Public Works Street Division – FY18/19 Accomplishments • Crews resurfaced and repaired sections of streets throughout the City. • Completed the bi-annual brush pick-up programs. • Replaced sidewalks and curbs. • Completed numerous drainage improvements. • Received a Grant from CMAP to have our roads evaluated. • Maintained City-owned vehicles and equipment. • Right of way maintenance including parkway restoration, mowing, and creek cleaning. • Managed snow removal, ice control, and conducted street cleaning in addition to making miscellaneous repairs. • Assisted with the preparation for Fiesta Days and 4th of July activities. • Pavement maintenance process reclamite was completed on the roads that were paved in 2017. • The 50/50 residential planting program “Plant Trees McHenry” was funded for the fourth year. This year’s program included funding for 25 trees; 4 trees were planted through the program. • Arbor Day was celebrated on April 27th, 2018. A total of 5 trees were donated by the McHenry Lions Club, Sue Meyer, Cindi Nelson, Pete and Marisa Merkel and the McHenry Rotary Club. • The City planted 38 trees in various parkways. • Crew members trimmed 836 city trees in Glacier Ridge, Martin Woods and Lakeland Park. • 80 trees were removed in 2018 with 30% of these removals due to the Emerald Ash Borer. • Snowplowing Intergovernmental Agreement with McHenry Township and Nunda Township. 159 Public Works Street Division – FY19/20 Goals & Objectives • Address all snow and ice events by clearing roadways to ensure safe travel on City streets. • Continue drainage improvement work, particularly in the Lakeland Park and the City’s northwest quadrant. • Maintain the City’s fleet so that it will operate efficiently and its useful life is extended. • Repair and maintain City streets by dedicating crew to road resurfacing and pothole repair. • Mowing the City’s right of ways and property in a timely fashion. • Respond to all resident requests in a timely manner. • Maintain and repair City sidewalks and curb. • Inspect and maintain the City owned street light systems. • Assist with the preparation for Fiesta Days and 4th of July activities. • Using the 50/50 residential planting program plant 25 trees- if funding is approved. • Plant five trees for our annual Arbor Day celebration. • Plant ten trees in our park system. • Plant 80 trees in the City parkways. • Assist Developers with tree planting in new subdivisions. • Continue work on the seven year pruning rotation in City parks and City parkways. • Identify hazardous trees for removal and remove other trees as required. • Remove Emerald Ash Borer infested trees in a timely manner. • Continue to monitor for Emerald Ash Borer, Gypsy Moth, and Japanese Beetle. • Capital Improvement Projects to administer include the 2019 Road Resurfacing Program and the asphalt pavement maintenance (crack sealing and reclamite) 160 Public Works Street Division – FY19/20 Performance Measures Performance Item Performance Goal Performance Measure FY19/20 Proposed Outcome(s) Internal Training Provide all necessary training for all division employees each year Was all training required for the year completed? Staff fully prepared for work. Less work related injuries. Street Sweeping Sweep 121 center lane miles a year Center Lane Miles Clean streets Sidewalk Replacement Replace 3,000 lineal feet of hazardous sidewalk per year Lineal feet Safer sidewalks for residents Asphalt Maintenance Crack seal, patch and apply reclamite to prolong the life of City roads Were all necessary road repairs made? Safer roads. Save money Drainage Maintenance Provide all necessary ditching and creek maintenance to prevent flooding Repairs Flood prevention Tree Condition Provide a survey Half the City Reduce failure and preserve City Trees Manage Woodland Areas Creek Maintenance/Controlled burns One prescribed burn/all creeks maintained Maintain our City natural areas/preserve creeks 161 162 163 Fiscal Year 2019/2020 Annual Budget Parks and Recreation 164 Parks and Recreation - Overview Mission It is the mission of the Parks and Recreation Department to provide planned recreation programs and maintain facilities and parks to meet the recreational and park facility needs of the public, recognizing that leisure activities, facilities, and open spaces are important to individuals, families, and community life. The Parks and Recreation Department continues to expand on the large strides made as a department in 2016/17. Though not a Park District, the department serves as a regional provider for facilities and programming. An excellent example of this was the implementation of the Miller Riverfront Boat Launch last year. The ramp provided access to the river for residents of McHenry, Johnsburg and Lakemoor at the same rates through an intergovernmental agreement. The launch was utilized over 400 times last year in single use launches and another 45 season passes sold. The Recreation Center continues to also be a regional draw. Memberships for residents and non-residents are billed at the same monthly rate. Over 2,400 regular members enjoy the benefits of membership, including the center’s 4,500 square foot fitness floor and the multitude of fitness classes. The center has seen a rise in room rentals as the community becomes more aware of the facility as an option. The popularity of the center created a need for the expansion of parking. A 95 space expansion was completed in early summer, which now meets the needs of the membership base. The expansion also included an access road that provided better connectivity between the facility and the skate park. The Skate Park is facility that saw improvements through private investment. Since its inception the Skate Park had infrastructure in place for lights. A local resident and business partnered with the city to complete the installation of those lights. The park was re-dedicated in honor of a young man who enjoyed the park since its opening. Ryan Buss lost his life but will always be remembered at a place he loved, the Ryan Buss Zone Skate Park. The new LED lights have significantly expanded the hours of use through all seasons. The Department completed a Market Study for the Historic Colby Petersen Farmstead last year. The study will be the foundation of programming and expansion dialogue and formal plans. The utilization of the property has been fairly singularly focused on the Day at Petersen Farm event. The new plan hopes to further utilize and enhance existing partnerships with the Landmark Foundation and the Petersen Farm Foundation to expand on programming and awareness for the facility. Another facility that was in the process of being updated last year was Fox Ridge Park. The facility is the most in demand athletic complex after Petersen Park. Regularly housing soccer, softball, baseball and lacrosse events, the addition of permanent washrooms and a concession stand will provide amenities to the park as well as a revenue source. The project is expected to be completed by May 1 2019. In November of 2018, the Department took a measure to expand the recreation center including a gymnasium, an indoor pool and expanding outdoor aquatic offerings to the community through a public referendum. Two other referendums were on the ballot; one for the expansion of educational 165 opportunities. The additional ballot measures created a very difficult climate and while the expansion measure was defeated, there remained strong support as over 4,000 residents supported expansion. The Recreation Division of the Parks and Recreation Department consists of four full-time and two part-time employees on the recreation side. Director of Parks and Recreation Bill Hobson works alongside Athletics and Aquatics Supervisor Nicole Thompson, Recreation Supervisor Cindy Witt, Facility Coordinator Christine Borgerding, Fitness Coordinator Becky Moore and Guest Services Lead Alicia Barnett to coordinate the various programs, events and services provided by the Department. Additionally, staff oversees the management of the McHenry Recreation Center, Petersen Beach and Merkel Aquatics Center facilities for the Department. The Parks Division, consisting of Superintendent of Parks and Downtown Maintenance Pat Gorniak, Assistant Superintendent Jeff Friedle and five (5) full-time Parks Maintenance Workers continue to tackle the massive task of maintaining the City’s more than 650 acres of park space, contained in thirty-eight (38) municipally-owned park sites. In addition, the Parks Division is responsible for maintaining the amenities of the City’s three downtown business districts – Riverside Drive, Green Street, and Main Street. 166 Parks and Recreation – Organizational Chart Director of Parks and Recreation Bill Hobson Superintendent of Parks Pat Gorniak Assistant Superintendent of Parks Jeff Friedle Maintenance Worker John Dillon Maintenance Worker Tracy Crowder Maintenance Worker Chris Etten Maintenance Worker Bob Zimmerman Maintenance Worker Chris Van Landyt Recreation Recreation Supervisor Cindy Witt Recreation Program Staff Athletics & Aquatics Supervisor Nicole Thompson Athletics & Aquatics Program Staff McHenry Recreation Center Facility Coordinator Christine Borgerding Recreation Center Staff Guest Services Lead Alicia Barnett Fitness Lead Becky Moore 167 Parks and Recreation – FY18/19 Accomplishments Special Events •The popular Dad & Daughter Date Night will be held in February with an anticipatedattendance of over 300 people. This event provides a wonderful evening for girls to spendone-on-one time with their dads. •In the fall, the Mom & Son Game Night was held as another opportunity for families to sharerecreation time together. •The historical Big Wheels Race was held in July in conjunction with Fiesta Days. Boys andgirls ages 3-5 raced for victory at the Petersen Park Racetrack. •Several fall events brought families out to play, including the Pumpkin Party, Santa’s CandyCane Hunt and Letters from Santa. •A monthly Member’s Potluck Party was added in the fall and is held the first Friday of eachmonth. Approximately 20 – 30 active adults participate. •The Breakfast with the Bunny served breakfast to 80 community families while they enjoyedgames, an egg hunt, and crafts. •We hosted over 600 families for the Northern Illinois Summer Swim ConferenceChampionship as the Merkel Aquatic Center. We offered food trucks, vendors, and generalhospitality to 5 teams from surrounding communities. It was a great event with teamsenjoying the facility and added events during the day. The McHenry Marlins came away with1st place for the season. •The McHenry River Run had 300 runners this past season, and we celebrated our 42nd race.The open track meet has 45 kids come out to enjoy a night at the track and receive ribbonsfor their placement in the events. General Programs •Approximately 300 sessions of general recreation programs, events and trips were offered.As of early February, there have been approximately 3200 registrations for generalrecreation. •The Summer Day Camp for children ages 6-14 was successful again this summer with over925 registrations, up more than 35% from the previous summer. Mini Explorers Campclinics for children ages 4-6 received over 140 registrations. Kids and their counselors had agreat time playing in the parks, swimming and going on adventurous field trips. •Spring, winter and fall dance classes are serving younger children in the communitythroughout the year. The 8-month long dance program is currently running with over 160students, up 15% from the previous year. Adult dance and Ballroom dance are also wellattended. 168 • New programs offered this year include: Drama Camp, Safe Sitter & Safe@Home trainings, Magic workshops and STEM lab workshops. • Children’s activities were offered at all city band concerts when the City Band played. • Adult field trips started up in summer 2018, scheduled cooperatively with Crystal Lake, Huntley and Barrington Park Districts. Each agency is responsible for the creation of 1 to 2 trips per season which are then offered through all agencies. Twenty trips were offered this year with approximately 150 participants from the McHenry area to date. • Several no-school day camps and trips were held this year. Camp days are held during the holiday and spring-break weeks. Trips are held on days of Parent/Teacher Conferences. There were approximately 100 registrations for these events to date. • General Recreation programs were offered working with the following area businesses/individuals: - The Studio of McHenry – Art instruction - Rock ‘n’ Kids of Algonquin – Music instruction - Just 4 You Treats of McHenry – Cookie decorating - Frank & Jackie Penze of Cary – Ballroom dance instruction - D. Galvicius of McHenry – Ukulele instruction - C. Purich of McHenry – Drama camps - Magic Team of Gary Kantor of Skokie – Magic workshops • Over 50 rentals were schedule in 2018-2019 at McHenry Recreation Center. The community rooms have been utilized for birthday parties, bridal & baby showers, seminars, meetings and celebration of life luncheons. • Approximately 100 reservations were made for shelters at Knox, Petersen and Veterans Memorial Parks in 2018-2019. Shelters were utilized for family picnics, parties and several private & community events. Athletics • The athletics sector has offered 308 program sessions during the 2018-2019 budget year. We have helped 1,058 youth develop and discover the world of organized sports. • We took over the McHenry Instructional Basketball program this year. We have 130 kids enrolled in grades 1st-8th for our first year. The program looks to developing the fundamentals and focusing on skill development in a fun and welcoming environment. • We developed 23 new programs to offer community families ranging from adults to youth. This past year, we offered Lil’ Dribblers Basketball Camp, Ball Handling & Quickness Camp, Free Throw & 3 Point Contest, Field Hockey Camp, Advanced Puck Handling & Quickness Camp, Nerf Combat Parent & Me, Sand Volleyball & Swim Camp, Toddler Multi-Spot Camps, Multi-Sport Camps, Athletics Birthday Parties, Pickleball League, Adult Co-ed Soccer League, Knockerball Soccer League, Archery Tag, McHenry Instructional Basketball League, 3-on-3 Basketball League Youth, Dodgeball League, Mini Ninja Warriors, Game Time Volleyball, Baseball Hitting Clinic, Small Group Basketball Clinics, and Parent & Me Soccer. 169 • We enjoyed three trips to the Chicago Cubs during the 2018 season with a total of 150 fans. And, we look to another three trips this year as well. • We continue to look at expanding offerings and working with community affiliate groups to expand programs in the city for years to come. Aquatics • The aquatics sector saw another summer of heavy attendance at the Merkel Aquatic Center and Peterson Park Beach. We sold 672 pool passes for the 2018 season. The Merkel Aquatic center had a total of 8,220 visitors during the summer, and the Petersen Park Beach had a total of 1,993 visitors. • We offered 65 swim lesson classes that taught 330 children how to be safe in and around the water. • We added new programs for the summer including masters swimming, aquatic boot camp, aqua aerobics, open water swimming, and paddle board yoga. • New special events were offered to the community and pool pass holders. We developed bring a friend day, free giveaways, Friday only member swim nights once a month, and swim lesson discounts for national learn to swim day. • At the pool, we replaced the parts on our heater which was long overdue and increased the efficiency of heating the pool during the summer. • At the beach, we bought two more WiBit water elements. We also purchased new kayaks and 8 new paddleboards. The boats and water attractions help double our beach revenue in 2018 versus 2017. We brought in $8,000 in revenue at the waterfront this season. • The McHenry Marlins swim team had 103 swimmers during the summer season. The program brought in a total of $33,033 in revenue. They finished 1st in the Northern Illinois Summer Swim Conference. Our winter swim team had a total of 129 swimmers and a revenue of $64,230. The winter team has fifteen swimmers with Illinois Swimming Inc. (ISI)/USA swimming regional cuts times. We have five winter swimmers with ISI championship cut times. Six of our swimmers qualified for the National Club Swimming Association meet in Orlando. Parks Improvements Petersen Park & Knox Park • Installed new siding on storage buildings, lifeguard buildings, bathrooms, and scorer’s stands at Petersen Park and Knox Park. • Installed a new playground at Petersen Park picnic side. • New roof on Merkel Aquatic center at Knox Park. 170 • Reshaped infields including removing partial outfields, reinstalling sod at Knox Park Softball Fields Hickory Creek Farm • Installed a new section of roof at Hickory Creek farm. • Replaced outside security lighting with Hi efficiency LED lighting on all buildings at Petersen Park and Hickory Creek Farm. Ballfields • The Department Purchased a used Verti-Drain Deep Tine Aerator that when used allows oxygen and nutrients to penetrate deep into the soil encouraging stronger root growth. All playing surfaces in all parks were aerated twice last year. Skate Park • Removed fencing, planted trees and added an Identification sign at the re-dedicated Ryan Buss Skate Zone Park. • Added new LED lighting at the Ryan Buss Skate Zone Park. Downtown Districts • New pole base, aluminum pole and LED fixtures have been installed at 3411 W Elm St. • Installed 2 new 14’ poles and 4 new LED fixtures in the lower Court St parking lot. • Installed a solar powered crosswalk signal at 1210 N Green St in the downtown district Fort McHenry • Enhanced kiosk at Fort McHenry with new information panels. • New flooring has been installed at Fort McHenry bathrooms. Miller Riverfront Boat Launch • Miller Riverfront Boat Launch was opened in the spring of 2018. LED site lighting and a pay kiosk has been installed. ADA Accessibility • Installed 4 new ADA drinking fountains in parks. Playgrounds • Installed 350 yards of mulch at parks throughout the city. 171 Marketing • The parks department has pushed to improve our marketing efforts and customer response rates through social media, digital, and print marketing efforts. • Print marketing efforts have included flyers and brochures going out to local school districts in McHenry, Johnsburg, and Wonder Lake. We have placed our information strategically around the building in slat boards, child care, at the front desk, and entry/exit doors. Our annual brochures continue to be mailed out to past participants and McHenry households along with being available at the local libraries in the area. The department invested in a Shaw media plan that includes two medium print ads in the Northwest Herald twice a month which we use to showcase facility promotions, special events, and upcoming program registrations. We have developed a monthly calendar that showcases when programs start to help participants and members see what is happening each month. • Digital marketing efforts have included updates to our department webpage including on-line program calendars, program pictures, class descriptions, league schedules, program information, exercise class schedules, on-line enrollment, and digital brochures. We have utilized Facebook and Instagram to run paid program posts, share important schedule changes, capture programs live, and push enrollment for programs. Our Shaw Media agreement includes digital ads on their website twice a month. Our ads are currently getting a digital click rate of .10% on their website which is above the industry average of .02%. We have utilized Mailchimp to distribute monthly newsletters to our members and program participants of upcoming events and new program highlights. The department has been utilizing Survey Monkey for the last two years to evaluate programs and make necessary changes to increase program participation along with adjusting offerings. • The department completed an in-kind agreement with Kelsey Adams Photography to capture our events year round for promotion in our brochures, marketing efforts, and social media campaigns. 172 Parks and Recreation – FY19/20 Goals & Objectives • Continue to maintain the City’s quality parks and parks amenities and to offer quality recreation programming for our residents • Coordinate with user groups, service groups and businesses to manage McHenry’s fantastic public events • Develop a more thorough sponsorship program for the department and for fields. • Parlay the completed Community Needs Assessment into a renewed Master Plan. • Continue to develop relationships with school districts, chamber, and various social clubs in community. • Thoroughly explore grant opportunities to expand opportunities throughout the parks system. 173 Parks and Recreation – FY19/20Performance Measures Item Goal Description FY 19/20 Proposed Outcome(s) Master Plan Update and renew the Parks and Recreation Master Plan. Analyze findings and implement recommendations. What are the leisure needs of the residents of McHenry and how will the Parks & Recreation Department make changes to meet those needs? November 2019 Marketing Measure the Department’s marketing success and effectiveness. Are the Department’s marketing efforts reaching the intended audience and which methods are most effective? July 2019 December 2019 Technology Explore opportunities to improve customer service and department operations through the introduction of technological advancements. What technology are we utilizing and is it the most effective tool for the specific task? i.e. Programming Software October 2019 Staff Development/Retention Invest in training, retention methods, staff recognition and cross training in order to develop staff workforce and reduce turnover/loss. How do we improve the performance of department staff? December 2019 Membership Retention Our goal is a membership retention rate of 60% What is the value of a membership? Are we continuing to offer the most current group exercise classes? Are we maintain a clean facility? January 2020 174 1234 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 A B E G I J K L M N Account Account FY15/16 FY16/17 FY17/18 FY18/19 FY18/19 FY19/20 Number Description Actual Actual Actual Budget Estimated Proposed Salaries/Benefits4010Salaries 820,009 693,450 744,419 699,884 706,279 773,525 73,641 10.52%4030 Salaries - Part Time - - - 80,210 - 4,080 (76,130) -94.91%4050 Overtime 15,010 14,733 16,395 17,500 14,659 17,500 - 0.00%4110 Salaries - Seasonal 216,570 275,908 299,511 307,500 307,946 302,200 (5,300) -1.72%4150 Overtime - Seasonal - 3,899 5,044 - 5,032 - - #DIV/0!4310 Health Insurance 211,179 190,841 203,191 177,035 186,116 207,519 30,484 17.22%4320 Dental Insurance 5,205 4,060 4,062 3,062 3,129 3,062 - 0.00%4330 Life Insurance 479 479 531 369 491 431 62 16.80%4340 Vision Insurance 399 302 308 192 216 192 - 0.00%4410 FICA Medicare 78,435 73,767 79,537 84,541 79,223 83,944 (597) -0.71%4420 IMRF Retirement 108,860 92,264 94,328 89,673 84,103 87,013 (2,660) -2.97%4510 Uniforms 1,998 2,368 2,228 2,550 853 3,600 1,050 41.18%TOTAL SALARIES/BENEFITS 1,458,144 1,352,071 1,449,554 1,462,516 1,388,047 1,483,066 20,550 1.41%Contractual Services5110Contractual 253,672 214,207 226,221 240,350 275,245 269,950 29,600 12.32%5310 Postage and Meter 6,972 10,296 6,763 6,000 4,985 6,000 - 0.00%5320 Telephone 16,651 18,943 14,018 - (85) - - #DIV/0!5330 Printing and Publishing 8,588 9,887 22,888 17,300 11,471 17,500 200 1.16%5370 Repair and Maintenance 15,600 14,809 20,375 15,000 9,014 15,000 - 0.00%5410 Dues 125,848 127,419 139,590 139,863 138,462 139,713 (150) -0.11%5420 Travel Expense 283 567 162 1,100 - 1,200 100 9.09%5430 Training 2,886 4,980 6,309 9,650 5,997 10,550 900 9.33%5440 Tuition Reimbursements - - - - - - - #DIV/0!5450 Publications 256 256 297 500 297 500 - 0.00%5510 Utilities 34,041 45,489 27,247 21,500 16,588 21,500 - 0.00%TOTAL CONTRACTUAL SERVICES 464,797 446,853 463,870 451,263 461,974 481,913 30,650 6.79%Supplies Variance ($) Variance (%) Parks and Recreation - Fund Summary (Fund 100, Department 41-47)175 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 A B E G I J K L M N6110Materials and Supplies 149,910 162,443 174,082 170,000 151,309 176,100 6,100 3.59%6210 Office Supplies 3,884 8,138 4,211 5,000 1,657 5,000 - 0.00%6250 Gasoline and Oil 14,804 15,705 16,740 17,000 16,711 17,000 - 0.00%6270 Small Equipment 13,744 1,990 19,254 12,000 13,245 12,000 - 0.00%TOTAL SUPPLIES 182,342 188,276 214,287 204,000 182,922 210,100 6,100 2.99%Other6920 Special Events 24,697 23,494 30,266 26,200 25,592 30,950 4,750 18.13%6950 Forestry (Moved to Public Works)28,490 - - - - - - #DIV/0!9902 Transfer - Recreation Center - - 87,358 - 81,954 81,954 81,954 #DIV/0!9920 Purchase of Services - Risk Management 81,774 67,392 66,973 66,973 66,973 66,973 - 0.00%9922 Purchase of Services - Information Tech 42,987 53,015 55,574 54,623 54,623 63,068 8,445 15.46%TOTAL OTHER 177,948 143,901 240,171 147,796 229,142 242,945 95,149 64.38% Capital Outlay8300Capital Expense - Equipment - 15,296 5,469 - - - - #DIV/0!8400 Capital Expense - Vehicles - - - - - - - #DIV/0!8700 Capital Expense - Park Improvements 17,388 - - - - - - #DIV/0!8800 Public Improvements - 8,825 - - 8,000 80,000 80,000 #DIV/0!TOTAL CAPITAL OUTLAY 17,388 24,121 5,469 - 8,000 80,000 80,000 #DIV/0!TOTAL PARKS & RECREATION 2,300,619 2,155,222 2,373,351 2,265,575 2,270,085 2,498,024 232,449 10.29%176 Fiscal Year 2019/2020 Annual Budget Special Revenue Funds 177 Fiscal Year 2019/2020 Annual Budget Tourism Fund 178 Tourism Fund – Overview The purpose of the Tourism Fund is to finance tourism-related promotions of the City of McHenry. Revenues of the Tourism Fund are derived from a 5% tax on motel and hotel room receipts. Expenditures currently include annual contributions to the Visit McHenry County organization (formerly McHenry County Convention and Visitors Bureau), partnering with the McHenry Jaycees to fund a portion of the annual Independence Day fireworks in Petersen Park, and on the municipal portion of various festivals and special events held within the municipality such as Fiesta Days and Blue, Brews and BBQ. In FY17/18, the Tourism Fund was also utilized to fund a new event – McHenry Shamrocks the Fox – held over St. Patrick’s Day weekend. A budget amendment was approved by Council during the fiscal year to provide for this funding. 179 180 Fiscal Year 2019/2020 Annual Budget Pageant Fund 181 Pageant Fund – Overview The purpose of the Pageant Fund is to account for revenues and expenditures used to conduct the annual Miss McHenry Pageant. The pageant, a community tradition for 60 years, is conducted annually. Female contestants between the ages of 16 and 20, living with the boundaries of the McHenry District 156 school district and having a McHenry address, are eligible to participate. Revenues are derived from entrance fees of $200 per participate, normally paid by a sponsor, and other donations. Expenditures are directly related to the holding of the pageant. 182 183 Fiscal Year 2019/2020 Annual Budget Band Fund 184 Band Fund – Overview The purpose of the Band Fund is to finance and account for expenditures incurred for the provision of summer concerts by the municipal band to promote culture and recreation in McHenry. Revenues are derived through a transfer from the General Fund and expenditures are related to stipends paid to the members of the band. 185 186 Fiscal Year 2019/2020 Annual Budget Civil Defense Fund 187 Civil Defense Fund – Overview The Civil Defense Fund accounts is for the training of personnel and the purchase and maintenance of equipment needed to protect and defend the municipality from natural disasters or man-made environmental disasters through early warning and public notification systems. Revenues are derived from a General Fund transfer and expenditures are as-needed. 188 189 Fiscal Year 2019/2020 Annual Budget Alarm Board Fund 190 Alarm Board Fund – Overview The Alarm Board Fund is to pay for the maintenance of radios and “head-end” equipment in the municipal 911 dispatch center (NERCOM). This equipment comprises the city’s direct connect radio fire alarm monitoring network. City businesses which are required, by building code, to have a fire alarm monitoring system are required to be monitored via direct connection to NERCOM. This direct connection helps to ensure a more efficient emergency response. 191 192 Fiscal Year 2019/2020 Annual Budget Audit Fund 193 Audit Fund – Overview The purpose of the Audit Fund is to account for expenses incurred to complete the annual audit of the city’s financial statements. The State of Illinois requires that the City of McHenry conducts an independent audit on an annual basis. Statutes provide authority for an entity to levy a portion of the property tax to pay for the audit. Since the authority to levy a property tax for the audit is separate from the authority to levy the corporate rate, the levy amount for audit is deposited into a separate fund and kept segregated from the General Fund receipts. 194 195 Fiscal Year 2019/2020 Annual Budget Annexation Fund 196 Annexation Fund – Overview The Annexation Fund is a non-operating fund that is used to account for receipts from generally non-recurring revenue sources resulting from negotiated annexation agreements. Revenues include a fee assessed on gravel mining on a per ton basis, revenues from property being annexed into the City on an acreage and lot basis, and an additional per unit fee that is distributed to other taxing bodies. Expenses in the fund are related to improvements to infrastructure or municipal facilities. 197 198 Fiscal Year 2019/2020 Annual Budget Motor Fuel Tax Fund 199 Motor Fuel Tax Fund – Overview The purpose of the Motor Fuel Tax (MFT) Fund is to provide dedicated revenues from taxes on gasoline and diesel sales primarily to road improvements and maintenance. Motor fuel taxes are generated by a flat rate of cents per gallon, plus a sales tax transfer. This sales tax transfer was eliminated by the State of Illinois in 2000 and replace by certain vehicle registration fees. In 2010 the municipality issued a $3.5 million bond for local roadway improvements and the majority of MFT expenditures are to service this debt. The remaining amount is utilized for the purchase of road salt, as a match to leverage other Federal and State road funds (e.g., Surface Transportation Program, Highway Safety Improvement Program) and road maintenance. 200 1234 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 2526 27 28 A B E G I J K L M N Account Account FY15/16 FY16/17 FY17/18 FY18/19 FY18/19 FY19/20 Number Description Actual Actual Actual Budget Estimated Proposed 1,195,137 926,255 1,128,615 1,148,655 1,148,655 1,185,685 3150 MFT Allotments from State 722,703 716,473 721,054 695,044 722,346 686,946 (8,098) -1.17%3180 Grants 39,844 - - - - - - #DIV/0!3210 Interest Income 65 - - - - - - #DIV/0!3240 IL Fund Interest 690 2,280 9,254 5,000 16,634 10,000 5,000 100.00%3882 Reimbursements - Misc - - 9,831 - - - #DIV/0!3886 Reimbursements - State 89,184 36,548 14,323 - - - - #DIV/0!3975 Transfer from General Fund - - - - - - - #DIV/0!3999 Transfer from Other Funds 2 - - - - - - #DIV/0! TOTAL REVENUES 852,488 755,301 754,462 700,044 738,980 696,946 (3,098) -0.44% 6110 Materials & Supplies 97,672 23,010 147,788 150,000 97,020 225,000 75,000 50.00%8600 Streets 623,436 131,290 185,545 217,000 207,000 410,076 193,076 88.98%9904 Transfer to Debt Service 400,262 398,641 401,089 397,930 397,930 399,229 1,299 0.33% TOTAL EXPENDITURES 1,121,370 552,941 734,422 764,930 701,950 1,034,305 269,375 35.22%NET INCREASE/(DECREASE)(268,882) 202,360 20,040 (64,886) 37,030 (337,359) 926,255 1,128,615 1,148,655 1,083,769 1,185,685 848,326 EXPENDITURES Ending Fund Balance Variance ($) Variance (%) Motor Fuel Tax - Fund Summary (Fund 270, Department 00) Beginning Fund Balance REVENUES 201 Fiscal Year 2019/2020 Annual Budget Developer Donation Fund 202 Developer Donation Fund – Overview The Developer Donation Fund is to account for donations collected from developers on behalf of the primary and secondary school districts, fire protection district, library district and the municipal park system. Developer Donations are collected to ensure the provision of public facilities to serve new development by requiring each new developer to pay a calculated share of the costs of such improvements as a condition of approval. By municipal ordinance, anyone applying for a building permit for a residential unit are required to pay fees for each unit constructed. 203 204 Fiscal Year 2019/2020 Annual Budget Tax Increment Finance Fund 205 Tax Increment Finance Fund – Overview The Tax Increment Finance (TIF) Fund accounts for revenues and expenditures related to the city’s Downtown Tax Increment Finance District, established in 2002. TIF revenues are derived from the collection of property taxes each year at an increment based on the increase in the assessed valuation of properties within the area since creation of the district. Expenditures are related to the repayment of private development “extraordinary costs” per approved development agreements and for public improvements within the district which increase the value of all properties within the area. Currently, due to stagnant property values within the district, TIF revenues have remained relatively flat. 206 207 Fiscal Year 2019/2020 Annual Budget Capital Projects & Debt Service Funds 208 Fiscal Year 2019/2020 Annual Budget Debt Service Fund 209 Debt Service Fund – Overview The Debt Service Fund accounts for the bonded indebtedness incurred by the City’s General Fund, including bond and interest payments. 210 211 Fiscal Year 2019/2020 Annual Budget Recreation Center Fund 212 Recreation Center Fund – Overview In March of 1999 the City Council passed a resolution stating that 50% of developer donation fees for parks were to be set aside for the construction of a recreation center. Consequently, the Recreation Center Fund was created to account for these donations. In addition, any future funding sources identified for the construction of the facility would be deposited in this fund and, further, the expenditure of funds for the construction of a recreation facility would be taken from this fund. In 2013 and 2014 City Council undertook a process to evaluate the feasibility of various options for recreation facilities, including the development of a family aquatics facility and/or a recreation center. Ultimately, it was determined that a recreation center should be the primary focus, construction began in 2015 and the McHenry Recreation Center was opened in February of 2016. Construction was financed through a combination of cash payments from the Recreation Center Fund and the issuance of debt. This was done to ensure that funding remained in the Recreation Center Fund to cover any start-up operating shortfalls, to serve as capital improvement funding for facility needs, or seed money for future expansions of recreation facilities. To date, the McHenry Recreation Center has exceeded expectations. With more than 2,500 members as of March 2019, revenues are sufficient to not only cover all operating costs but to also fund the $130,000 debt service. Importantly, no public tax dollars were used to construct the facility and no tax dollars are required to operate the facility. The fund now accounts for the McHenry Recreation Center operating budget and fund balance. 213 Recreation Center Fund – FY18/19 Accomplishments Recreation Center • Recreation Center has once again been a major success in 2018. Through the end of February 2019 we had 2,500 active fitness members. These “active members” are paying members who are in an annual contract, in good standing, and do not include employees, punch pass holders or other short term memberships. • From March through end of December, the Rec Center received a total of 97,091 visits from fitness members. This amounts to a 25% increase from last year. • Group exercise classes, which are included in membership, have received 26,625 visits. If current trends continue, the center’s fitness classes will account for over 35,000 member visits. • The arrival of the Recreation Center and the expansion of fitness programming has led to an increase in health of those who choose to have a fitness membership. Members often comment on how the exercise is contributing to weight loss, decrease in medication and an improvement in overall strength and conditioning. We are seeing members exercise for longer periods of time, more days each week and taking classes back to back more often. And every day we welcome new faces into our facility. • The recreation center fund is on track to cover our operating expenses and is projecting to have a surplus of $150,000 this year. • The increased membership has led to the addition of additional fitness equipment and the constant evolvement of the group fitness class offering. • The expansion of the parking lot was completed last year. The project more than doubled the size of the current lot adding 95 new spaces. The new lot also provides an overflow connection to the skate park gravel lot and increases connectivity to the Skate Park itself. 214 Recreation Center Fund – FY19/20 Goals & Objectives • Create a collaborative marketing plan for programs, events and facilities; whereby increasing community reach, efficiency, return on investment. • Increase visitation at rec center thereby increasing revenue. • Research trends, explore community partnerships and evaluate existing programs in an effort to consistently develop new programs and special events. • Enhance Department’s sponsorship program and apply it where applicable at the Recreation Center. 215 Recreation Center Fund – FY18/19 Performance Measures Item Goal Description FY 19/20 Proposed Outcome(s) Membership Retention To maintain a 60% fitness membership retention rate for the facility. Through outreach to members and continual update of offerings, the goal is to keep members engaged and interested. Membership loss is minimized and client base remains fairly constant. Sponsorship Further develop and apply a sponsorship program to the Recreation Center. In identifying a comprehensive sponsorship program, additional community connections will be created as well introducing additional revenue Fostering community partnerships and adding a revenue stream to the facility 216 217 218 219 Fiscal Year 2019/2020 Annual Budget Special Service Area #4 Fund 220 Special Service Area #4 Fund – Overview The Special Service Area (SSA) #4 Fund is to account for revenues and expenses associated with annual debt service for a sewer project that was completed in 2004 in the Lakewood Road Subdivision. SSA’s allow a city to levy a property tax on property within a defined area to fund specific improvements. Through an SSA payments are spread equally over the identified number of taxable lots rather than through assessment (Special Assessment). The total amount of the SSA is $327,200 to expire in 2024. 221 222 Fiscal Year 2019/2020 Annual Budget Capital Improvements Fund 223 Capital Improvements Fund – Overview The purpose of the Capital Improvements Fund is to account for funds identified for the maintenance and construction of public infrastructure projects other than water and sewer utilities. This includes roads and public facility maintenance, improvements and/or construction. No operating costs are included in the Capital Improvements Fund. Capital Improvements Fund revenues are derived from transfers from other funds, primarily the General Fund Assigned for Capital. Projects included in the Capital Improvements Fund are identified through the capital improvements planning process which culminates in the development of an annual five-year Capital Improvement Plan (CIP). The development of the CIP is an exercise that is undertaken, primarily, to ensure the City Administration and City Council are able to identify the capital improvement and capital equipment needs of the municipality. The document contains both Capital Improvement and Capital Equipment projects, each with a cost of more than $10,000. The FY19/20 – FY23/24 CIP includes more than $60 million in projects and, due to the size and complexity of projects and the limited available funding, it is not reasonable to believe that more than a handful of projects can be completed in any given budget year. Detailed information regarding the projects being planned and/or funded through the Capital Improvements Fund can be found on the Capital Improvement Program section of this budget document. 224 225 Fiscal Year 2019/2020 Annual Budget Capital Equipment Fund 226 Capital Equipment Fund – Overview The Capital Equipment Fund is utilized to track annual expenditures of equipment replacement (e.g., vehicles, computer equipment) as identified in the five-year Capital Improvement Plan. No operating costs are included in the Capital Equipment Fund. Capital Equipment Fund revenues are derived from transfers from other funds, primarily the General Fund Assigned for Capital. Like the Capital Improvements Fund, Capital Equipment Fund projects are identified through the capital improvements planning process which culminates in the development of an annual five-year Capital Improvement Plan (CIP). The development of the CIP is an exercise that is undertaken, primarily, to ensure the City Administration and City Council are able to identify the capital improvement and capital equipment needs of the municipality. The document contains both Capital Improvement and Capital Equipment projects, each with a cost of more than $10,000. The FY19/20 – FY23/24 CIP includes more than $60 million in project and, due to the size and complexity of projects and the limited available funding, it is not reasonable to believe that more than a handful of projects can be completed in any given budget year. 227 228 Fiscal Year 2019/2020 Annual Budget Enterprise Funds 229 Fiscal Year 2019/2020 Annual Budget Water & Sewer Fund Water/Sewer Revenues and Public Works Water, Wastewater, Utility Divisions 230 Water & Sewer Fund - Overview The Water and Sewer Fund is an enterprise fund – that is, a business-type fund utilized to account for operations and activities that are financed and operated in a manner similar to a private business enterprise, and where the cost of providing goods and services to the general public on a continuing basis is expected to be recovered primarily through user charges, including operating costs and capital improvement costs related to the maintenance of the water and sewer utility systems. These fund the operations of the Water, Wastewater and Utility Divisions in the Department of Public Works. The operating functions of these three divisions are to provide a safe and reliable supply of high quality potable water and to protect public health and the environment by treating sewage to meet stringent environmental standards prior to discharge. Of note, the Utility Division was established in FY15/16 combining existing Water and Wastewater Division Maintenance Workers to specifically address utility system maintenance needs more routinely. Prior to this, utility maintenance projects were addressed by either the Water or Wastewater Division and often required coordination with the other division to ensure adequate manpower. The creation of the Utility Division established a more efficient methodology to handle utility maintenance projects. The expenses for the Utility Division are split between the Water and Wastewater Divisions as follows - approximately 63.7% of operating expenses are paid from the Water Division and the remaining 36.3% are paid from the Wastewater Division. Capital expenses are charged to the division that benefits from the maintenance project. In general, water and sewer revenues are derived directly from water and sewer sales, base charges, connection fees, and service penalties and should be sufficient to fund the operating and capital costs for the Water, Wastewater and Utility Divisions. Importantly, water and sewer revenues are driven by consumption and, as such, with a growing awareness of water conservancy (which the City supports) and wetter than average summer months, consumption has been relatively flat over the last two years. Prior to FY15/16, water and sewer rates were adjusted annually based primarily on the Consumer Price Index (CPI). Unfortunately, this CPI adjustment did not correlate to the actual cost of operations for McHenry’s Water and Wastewater Divisions and did not account for the specific capital infrastructure needs of the municipality. This resulted in a shortfall in water and sewer revenues and an inability to fund water and sewer capital projects of the existing systems. To address this the City commissioned a water and sewer rate study that was completed in FY13/14. The results of this analysis identified the need to adjust water and sewer rates at that time and to annually review and adjust water and sewer rates based on operational costs and implement water and sewer base fees to fund utility system capital improvements. The narrative that follows provides a snapshot of the status of the Water and Sewer Fund and identifies operational and capital expenses. This is followed by more detailed summaries of the Water, Wastewater and Utility Divisions of the Department of Works. 231 FY19/20 Water Division FY19/20 Water Division operating expenditures are proposed at $2,361,411, an increase of $87,719 from FY18/19. This increase is due to the funding of the Utility Division transfer (again, the Utility Division is funded through contributions by water and wastewater). Budgeted Operating Revenues for FY19/20 include a recommended water rate increase of 6% (3.34 to 3.54 per 1,000 gallons) in order to meet the budgeted operating expenditures. Rates will be further addressed after the budget is approved and discussed with Council before they need to be adjusted in August. It is estimated that the existing $2 capital base charge will generate $124,000 in FY19/20 for capital projects. In FY19/20 this amount, along with Water and Sewer Fund Balance, will be used to fund the following water system capital project identified in the Water and Sewer Fund CIP - $130,000 for Well # 8 raw line rehabilitation. Overall rate increases will be discussed on the base rate after the budget is improved. FY19/20 Wastewater Division FY19/20 Wastewater Division operating expenditures are projected at $3,280,584, an increase of $57,483 from FY18/19. This increase is due partially to higher Salaries/Benefits and higher funding for the Utility Division to cover proposed expenses (again, the Utility Division is funded through contributions by water and wastewater) with an offset from lower Sludge Disposal costs. Proposed operating revenues for FY19/20 are expected to exceed proposed operating expenses by $43,582. No rate adjustment is being recommended for sewer in FY19/20. Rates will be addressed after the budget is approved and discussed with Council before they need to be adjusted in August. It is estimated that the existing $4 capital base charge will generate $265,000 in FY19/20 for capital projects. This amount, along with existing Water and Sewer Fund Balance, will be used to fund the following sewer system capital project identified in the Water and Sewer Fund CIP - $1,900,000 for the Millstream Lift Station Rehabilitation project. Overall rate increases will be discussed on the base rate after the budget is improved. FY19/20 Utility Division FY19/20 Utility Division operating expenditures are projected at $1,138,560, an increase of $65,046 from FY18/19. The existing Water and Sewer Fund Balance will be used to fund the following Utility capital project identified in the Water and Sewer Fund CIP - $120,000 for the Ringwood Road Water Main. As identified in the Water and Wastewater discussions above, the Utility Division is funded through transfers from the Water and Wastewater Division revenues. If in one year the transfers from the Water and Wastewater Division exceed expenses within the department, adjustments are made in following fiscal years. This will result in lower operating budgets for the Water and Wastewater Divisions. 232 Public Works Water Division Public Works Water Division Mission The primary focus and overlying responsibility of the Water Division is to provide a safe and reliable supply of potable water. This is accomplished by producing, treating water and conducting over 500 required water samples, therefore meeting or exceeding all federal and state health standards. Of major importance to the Water Division employees is providing the consumer with the highest level of customer service possible. We believe this inspires public trust within the community. In summary, Water Division employees undertake the following tasks: • Provide safe potable water that meets or exceeds State and Federal Drinking Water Regulations. • Water Production – The Division maintains four iron removal filtration treatment plants served by eight active wells. The City has two emergency or backup wells that have no iron removal filtration but do have temporary chemical feed buildings. • Water Storage consists of four elevated water storage tanks with a combined storage capacity of 2,750,000 gallons. • One booster pumping station. • Provide meter readings to the Finance Department for utility billing for City water and sewer services. The Division maintains an ongoing meter replacement program of approximately 8,000 water meters. • Respond to Joint Utility Locate Information for Excavators (J.U.L.I.E.) requests. • Respond to consumer inquiries within 24 hours regarding water quality or high consumption questions or general concerns. • The Water Division plays an important part in the maintenance and future development of City’s Global Information System (GIS). 233 Public Works Water Division – Organizational Chart Water Division Superintendent Mike Palmer Water Operator II Doug Mace Water Operator II Bryan Scheel Maintenance Worker Jason McMahon Maintenance Worker Greg Oliver 234 Public Works Water Division – FY18/19 Accomplishments • Met or exceeded all State and Federal Drinking water regulations. • The Water Division employees provided a high level of customer service by responding to customer requests within 24 hours and making available information consumer’s need to be informed about their drinking water source and water treatment technologies. We believe this inspires public trust within the community. • In 2018, the Water Division produced 751 million gallons of potable water and provided meter readings for nearly 8,000 water and sewer accounts for billing purposes. • Received 22nd consecutive annual fluoride award from the Illinois Department of Public Health. • Changed out over 850 water meters. • Responded to 4662 J.U.L.I.E. locate requests. • Well #6, replacement of pitless adaptor as well as new pumping equipment. • Well #2 chemical rehabilitation and installation of new pumping equipment. Both projects were very successful. • The Water Division had no reported personnel injuries or accidents in the past year. 235 Public Works Water Division – FY19/20 Goals & Objectives • Continue to meet or exceed all Federal and State drinking water regulations. • Continue to provide the highest level of customer service possible by responding to customer requests within 24 hours and make information available for consumer’s to be informed about their drinking water source and water treatment technologies. • Look for new opportunities to improve customer service to the consumer. • Continue to maintain and improve water treatment facilities while remaining in budget. • Expand lead service line inventory data base. • Integrate new meter reading software with billing software and in the field of use. • Complete Trace meter reading change out. • Continue to be injury and accident free. • Assist in the rehabilitation of Well #8 raw water line. 236 Public Works Water Division – FY19/20 Performance Measures Performance Item Performance Goal Performance Measure FY19/20 Proposed Outcome(s) IEPA Compliance Achieve 100% compliance in all categories Was 100% compliance achieve with no violations 100% compliance is expected with no violations Respond to Customer Inquiries and Complaints Respond to all inquiries within 24 hours of receiving Percentage responded to within 24 hours 100% Capital Projects Complete all Capital Projects on time within budget Were projects completed on time and within budget 100% Meter Replacement Replace 1000 meters Were 1,000 meters replaced in the previous year 100% Safety –Personal Injury/Vehicle Accidents Zero Injuries/ Accidents How many reported injuries/accidents Zero 237 238 239 240 Public Works Wastewater Division Public Works Wastewater Division Mission It is the mission of the Public Works Department Wastewater Division to protect public health and the environment by treating sewage to meet stringent environmental standards prior to discharge. The functions of the wastewater division is to operate and maintain the wastewater treatment plant and nineteen lift stations. The goal of the Wastewater Division is to efficiently maintain these facilities and to produce plant effluents that either meet or exceed State and Federal standards. The division is also responsible for the removal and disposal of all the by-products generated by the treatment process. This is accomplished by daily testing and monitoring of the treatment process and by operating the sludge de-watering machines. In summary, Wastewater Division employees undertake the following tasks: • Provide for the operation and maintenance of the City’s wastewater treatment plant and the care and upkeep of nineteen lift stations. • Conduct daily testing to ensure the treatment processes are working correctly and make any necessary changes to operations. • Maintain records on the amount of wastewater treated and the quality of water discharged to the Fox River and report this information to the Illinois Environmental Protection Agency in compliance with NPDES permits. 241 Public Works Wastewater Division – Organizational Chart Wastewater Division Superintendent Russell Ruzicka Assistant Wastewater Superintendent Russell Adams Mechanic Kevin Beggs Wastewater Operator II Daniel Duffy Wastewater Operator II John Kuhl Maintenance Worker Mike Freund Wastewater Operator II Bryan Thome Maintenance Worker David Fees 242 Public Works Wastewater Division – FY18/19 Accomplishments • In 2018 the Wastewater Division achieved 100% compliance with the NPDES permits. • Completed the shutdown and abandonment of the City’s Central Wastewater Treatment Plant. • Completed performance testing on the new sludge dryer. • Hosted the Fox Valley Operators Association monthly meeting and tour (June 2018). Public Works Wastewater Division – FY19/20 Goals & Objectives • Have new dried sludge product tested for composition and explore alternative disposal methods i.e.… sod farms, landscapers or residents. • Continue to meet or exceed the NPDES permit requirements and regulations as set forth by the Illinois Environmental Protection Agency. • Operate treatment plants and lift stations in a manner that minimizes the potential for a sanitary sewer overflow. • Continue to look for ways to achieve the high level of service and minimize operating costs. • Final Design and Construction of the Millstream Lift Station and Sanitary Sewer Main Relocation Project. 243 Public Works Wastewater Div– FY19/20 Performance Measures Performance Item Performance Goal Performance Measure FY19/20 Proposed Outcome(s) Compliance with all NPDES Permits issued by the IEPA 100% Compliance with all permits at all times Annual inspection/evaluation and monthly reports Satisfactory annual inspection/report and no violations on monthly reports Sludge disposal Lower sludge disposal costs Track number of dried sludge loads vs. wet sludge loads to the landfill A lower expense for sludge disposal Energy consumption Decrease the amount of energy used Start tracking and analyze utility bills Reduced utility bills Lift Stations Reduction in number of off hours call-outs Track the number of call-outs to each lift station Less call-outs equal lower overtime costs Sanitary Sewer Overflows (SSO’s) Prevent sanitary sewer overflows Operate Actiflo storm clarifier at the correct capacity No sanitary sewer overflows 244 245 246 247 Public Works Utility Division Public Works Utility Division Mission The City of McHenry Utility Division is committed to providing the highest level of customer service to its residents and consumers. Maintaining the water distribution, sanitary sewer collection systems and storm sewer system to peak performance will continue to ensure reliable services to City of McHenry’s residents, and businesses. This will enhance public safety within the community. The Utility Division maintains and repairs all water mains, valves, fire hydrants, and "buffalo" boxes which are all part of the water distribution system. Another component of the Utility Division is to maintain, clean, and televise the sanitary sewer collection system. The Utility Division also maintains and repairs the storm sewer system. In summary, Utility Division employees undertake the following tasks: • Maintain sanitary sewer collection system. • Maintain water distribution system. • Maintain storm sewer system. 248 Public Works Utility Division – Organizational Chart Utility Division Superintendent Steve Wirch Crew Leader Mike Lange Operator I Steve Ramirez Operator I Sean Johnson Utility Operator I Todd Sasak Maintenance Worker Pat Maher Utility Operator I Ryan Cheney Maintenance Worker Clint Greve Maintenance Worker Tim Lechner Maintenance Worker Paul Clements 249 Public Works Utility Division – FY18/19 Accomplishments • Replaced 8 Traverse City fire hydrants due to age and non-availability of repair parts. • Flushed all of the City’s fire hydrants for spring and fall hydrant flushing programs. • Cleaned and televised over a 150,000’ (28 miles) of sanitary main including the subdivisions of Lakeland Park, Whispering Oaks, Fox Ridge, Water’s Edge, Winding Creek Brittany Park and others including routine maintenance lines. • Repaired 11 water main breaks. • Repaired 13 water services, replaced 15 lead services from the water main to B-Box. • Responded to 17 possible sewer backups. • Replaced 15 open hole sanitary frames and covers with closed “sealed” frames and covers. • Through the CIP process the existing 4” ductile iron and transite water main on Timothy Lane and Clover Lane was replaced. Both locations had a long history of water main breaks due to the water main deteriorating due to corrosion, age, settlement, etc. Additionally the 4” diameter main is no longer compliant with current standards for size and capacity. Approximately 2,450 lineal feet of water main was replaced and increased to an 8” diameter water main. Fire hydrants, valve vaults, new service lines and b-boxes were installed per current standards. Other improvements included roadway resurfacing and minor drainage improvements such as concrete gutter and driveway culvert replacements. • Included in the bid plans for the Pearl Street/Lincoln Road Improvements was the extension of thirty-one sanitary sewer stubs from the sanitary sewer main under the Lincoln Road pavement to the homeowner’s property line. The City will recapture the cost of the sanitary sewer stub installations through future annexation agreements. • Installed 300’ of storm sewer in the rear easement in between Clearview Drive and Parkway Drive to improve drainage and reduce standing water during large rain events. • Replaced 450’ of 12” storm sewer on Timothy Lane to improve drainage prior to construction of water main replacement project. 250 Public Works Utility Division – FY19/20 Goals & Objectives • Continue to keep the sanitary collection system well maintained, which includes cleaning and televising the entire collection system. • Reduce inflow and infiltration in collection system through the Capital Improvement Program which includes the sanitary sewer main and sewer manhole rehabilitation programs. Change old style manhole covers to “new” sealed covers. • Continue to keep the water distribution system well maintained with the water valve maintenance program, fire hydrant spring and fall flushing programs and the water main replacement program through the Capital Improvement Program. • Replace the 10 fire hydrants due to age and non-availability of repair parts. • Continue hydrant painting program. • Map storm sewer system through GIS. • Assist in the rehabilitation of Well #8 raw water line. • Through use of the Community Development Grant extend the water main north down Ringwood Road to West Shore Beach. 251 Public Works Utility Division – FY19/20 Performance Measures Performance Item Performance Goal Performance Measure FY19/20 Proposed Outcome(s) Fire hydrant replacement Replace outdated fire hydrants Number of hydrants replaced Replace 10 fire hydrants Clean & Televise sanitary sewer collection system 100,000 Lineal ft/year Lineal ft/year Clean & televise 100,000 lineal ft/year Hydrant Flushing Complete spring and fall hydrant flushing programs Flush all hydrants spring and fall Completion of spring and fall flushing programs Reduce inflow/infiltration Grout manholes/install sealed frames and covers Number of manholes repaired 10 manholes repaired Storm sewer mapping Locate and shoot structures Amount of storm sewer structures shot on GIS 50% of storm sewer system 252 253 254 Fiscal Year 2019/2020 Annual Budget Capital Development Fund 255 Capital Development Fund – Overview This fund accounts for the construction, expansion and/or extension of water and wastewater systems to accommodate new development and growth in the community. Revenues are generated through capital development fees on new residential and non-residential development. 256 257 Fiscal Year 2019/2020 Annual Budget Utility Improvements Fund 258 Utility Improvements Fund – Overview The Utility Improvements Fund was created to provide a single fund to record revenues and expenses for capital construction projects for the water and wastewater utilities. Transfers from the Water & Sewer Fund and Capital Development Fund are the main sources of revenue for the fund. Expenses are restricted to design engineering, construction, and construction engineering costs for the approved capital projects. Identified expenditures are related to the consolidation of the Central and South Wastewater Treatment Plants. 259 260 Fiscal Year 2019/2020 Annual Budget Marina Operations Fund 261 Marina Operations Fund – Overview The City of McHenry acquired the marina in 2000 to be able to expand the Central Wastewater Treatment Plant. After it was acquired it was determined that the wastewater facility could not be expanded at the existed site. Once the Central and South Wastewater Treatment Plant consolidation project is completed, the Central WWTP site can be redeveloped and at this time it is possible that the marina site be incorporated into any redevelopment. At this time the Marina Operations Fund is an enterprise fund that provides for the maintenance of a 60-slip marina on the Fox River. 262 263 Fiscal Year 2019/2020 Annual Budget Internal Service Funds 264 Fiscal Year 2019/2020 Annual Budget Employee Insurance Fund 265 Employee Insurance Fund – Overview The City of McHenry recognizes that health insurance benefits are an important component of an employee’s total compensation package, therefore, the purpose of the Employee Insurance Fund is to finance and account for expenditures incurred to provide health insurance benefits to employees. The current health insurance plan provided to employees offers a choice between a PPO (Preferred Provider Organization), an HMO (Health Maintenance Organization), and an HSA (Health Savings Account). Providing employees with a choice of plans allows for flexibility based on preference and affordability. In addition, employees receive dental and vision benefits. All IUOE 150 employees (Public Works, Parks) are required to be on the IUOE 150 insurance plan as per their collective bargaining agreement. 266 267 Fiscal Year 2019/2020 Annual Budget Risk Management Fund 268 Risk Management Fund – Overview The purpose of the Risk Management Fund is to account for all activity related to risk management and insurance costs (other than employee health insurance) including loss control, loss prevention, risk transfer, and risk assessment. The City of McHenry is a member of the McHenry County Risk Management Agency (MCMRMA), a public entity risk pool through which property, general liability, automobile liability, crime, excess property, excess liability, and boiler and machinery coverage is provided. The relationship between the City and MCMRMA is defined through a contractual obligation approved by both the City Council and MCMRMA Executive Board. Revenues for the fund are generated by service charges to the City’s General Fund and non-General Fund operating units. The service charges to the General Fund are provided for the most part by the liability insurance portion of the property tax levy. Incidental revenues from interest earnings and reimbursements from MCMRMA are also occasionally posted to the fund. 269 270 Fiscal Year 2019/2020 Annual Budget Information Technology Fund 271 Information Technology Fund – Overview Mission The mission of the Information Technology Division is to provide the most innovate, highest quality, technology-based services in a cost-effective manner and to facilitate the achievement of the goals and objectives of each of the City’s operating departments. Information Technology Fund revenues are derived from transfers from the City’s operating departments and expenses are related to the direct provision of technology services by the Division’s two staff members and for the replacement of equipment and software through the municipality. The primary functions of IT staff include: • Providing efficient technology support for computer systems, web-based applications, voice, video, and integrated data services to all City departments. • Promoting and facilitating the integration of technology to efficiently meet the overall mission of the City using collaborative efforts through planning, training, and consulting with all departments and service providers. • Developing, enhancing and managing the City’s networks to provide high-speed transparent, and highly functional connectivity. • Developing and maintaining highly effective, reliable, secure, and innovative information systems to support each department’s functions. • Facilitating the collection, storage, security, and integrity of electronic data while ensuring appropriate access. • Promoting new uses of technology within the organization. 272 Information Technology – Organizational Chart City Administrator Derik Morefield Information Technology Manager Ed Larson Information Technology Specialist Aaron Greve 273 274 275 Fiscal Year 2019/2020 Annual Budget Fiduciary Funds 276 Fiscal Year 2019/2020 Annual Budget Employee Flexible Spending Fund 277 Employee Flexible Spending Fund – Overview The Employee Flexible spendind account is used to account for employee pre-tax medical spending accounts that are offered as a benefit to City employees. Under the Internal Revenue Service (IRS) rules and regulations, employees can set aside money for certain medical benefits on a pre-tax basis. These benefits include medical expenses not covered under the employee’s health insurance plan. When allowable medical costs are paid by the employee, he or she can get reimbursed from his flexible spending account. Depending on the tax bracket of the employee and the extent of utilization, an employee could potentially save several hundred dollars through medical and dependent care flexible spending deductions. 278 279 Fiscal Year 2019/2020 Annual Budget Development Escrow Fund 280 Development Escrow Fund – Overview The Development Escrow Fund is a fiduciary fund used to account for assets held by the City in a trustee capacity or as an agent for individuals, private organizations, other governments or funds. The Development Escrow Fund holds funds deposited by developers until such time as certain improvements are completed or in lieu of developer provided improvements. These funds are custodial in nature and do not involve measurement of results of operations. In FY19/20 Development Escrow Funds are being used for the manufacture and installation of a new municipal gateway sign on east Route 120 as part of the Ricky Rockets development project. 281 282 Fiscal Year 2019/2020 Annual Budget Retained Personnel Fund 283 Retained Personnel Fund – Overview The Retained Personnel Fund is used to account for funds collected as reimbursement and expended for professional and technical services used to assist or advise the City in connection with land development. The City’s retained personnel costs included engineering, legal, planning, and other technical professional matters. The City typically collects a deposit from property owners at the initiation of annexation, zoning, or other development proceedings that approximate the total retained personnel costs expected to be incurred. 284 285 Fiscal Year 2019/2020 Annual Budget Revolving Loan Fund 286 Revolving Loan Fund – Overview The Revolving Loan Fund provides low interest loans to qualified existing and prospective businesses within the City of McHenry. The loan proceeds can be used to assist in the startup of a new business, expand and existing business update existing facilities to make the business more competitive, or provide an incentive for established businesses to relocate to the City. The primary goal of the program is job creation and expansion of the sales and property tax bases. The program requires loan applicants to complete a formal application which is then reviewed by the Revolving Loan Fund Committee – comprised of the Mayor and Finance and Personnel Committee. Terms are identified/negotiated and a recommendation is provided to the full City Council for consideration. Of note, the Revolving Loan Fund itself does not have expenditures as the loans are originated through the City’s identified lender. Revenues are comprised of receivables, or payments, which are budgeted. 287 288 Fiscal Year 2019/2020 Annual Budget Police Pension Fund 289 Police Pension Fund – Overview The Police Pension Fund accounts for retirement benefits for retired police officers and their beneficiaries through employer and employee contributions and investment earnings. The primary purpose of this non-operating budgetary unit is to finance pensions for employees by both employer and employee contributions combined with interest earnings on those contributions. These three revenue streams, if based on sound actuarial assumptions should generate sufficient funds for employee retirement without placing undue burden on the employer or a risk to the pension due the employee. The Police Pension plan is administered by a board of trustees. The duties of the board are to control and manage the pension fund, to enforce the collection of contributions, to hear and determine applications for pensions, to authorize payment of pensions, and to invest funds. Account and actuarial services are provided by the city at no cost to the plan. Financial planning and investment management are provided by outside vendors. The City’s pension plan is a defined benefit plan meaning that regardless of investment performance, the plan is obligated to pay the defined benefit. If the pension plan makes unwise investment decisions, the City is currently obligated to guarantee the obligations. However, as of the year 2033, the pension plan will be self-supporting with no further obligations placed on the City. The City utilizes an independent actuarial study to annually determine the necessary funding for the pension program. The City Council has committed to funding the plan based upon these recommendations. 290 291 Fiscal Year 2019/2020 Annual Budget Supplemental Information 292 Financial Policies Overview The following City financial policies, along with the approved Fund Balance and Reserve, Investment and Capital Improvement Program policies, establish the framework for McHenry’s overall fiscal planning and management. Operating Budget and Expense Policies 1. The City shall annually adopt a balanced budget where operating revenues are equal to, or exceed, operating expenditures in each fund. 2. Beginning fund balance should only be appropriated to the extent it supports non-recurring expenditures, replaces temporary declines in revenue, or is reasonably anticipated to be offset by an increase in revenue. 3. As part of the annual budget review process, the City will project General Fund revenues and expenditures for four years beyond the budget year and compare the projected balances to the fund balance policy. This will allow the City to identify potential problems early enough to correct them. 4. The City Council shall be provided monthly actual revenues and expenditures for all funds. Any departments or divisions projected to exceed their annual spending authority for the year shall work with the City Administrator to reduce expenses. This may include a deferral of hiring and major expenses for goods and services. Revenue Policies 1. The City shall maintain a diversified and stable revenue system to the extent provided by law to insulate it from short-term fluctuations in any one revenue source. 2. The City will not budget one-time revenue sources to fund annual operating expenditures. Such revenues will fund non-recurring activities, such as capital projects and major capital equipment purchases. 3. Grant revenues shall be pursued to provide or enhance City services. However, recurring activities shall be initiated with grant funds only if the activity can be terminated in the event grant funds are discontinued or the activity should and can be funded within recurring City revenues. 4. All non-enterprise user fees and charges will be examined annually to determine the direct and indirect cost of service recovery rate. The acceptable recovery rate and any associated changes to user fees and charges will be approved by the City Council. 5. The City will set fees and user charges for the Water and Sewer funds at a level that fully supports the total direct and indirect costs of the activity. Indirect costs include the replacement of the capital assets of the fund. 293 Debt Management Policies 1. The City limits long-term debt to only those capital improvements that cannot be financed from current revenues and have an estimated useful life of at least ten years. 2. For General Obligation Debt, the City will maintain a debt to assessed valuation ratio that is 25% more stringent than the state debt limit. 294 Fund Balance and Reserve Policy Overview  The purpose of this policy is to establish the principles and parameters to which a Fund Balance target will be defined at the beginning of each budget period. This policy is established to provide financial stability, cash flow for operations, and the assurance that the City will be able to respond to emergencies with fiscal strength.  In the event that unexpected situations may cause the City to fall below the minimum fund balance level, certain steps will be followed to correct the deficiency, as outlined in the section below titled “Fund Balance Parameters.” Definitions  Fund Balance – The difference between assets and liabilities in a Governmental Fund.  Net Position – The amount remaining after subtracting total liabilities from total assets for Proprietary Funds.  Operating Expenditures – Total expenditures minus capital and debt service.  Governmental Funds – Are used to account for all or most of the City’s general activities, including the collection and disbursement of restricted or committed monies (special revenue funds), the funds restricted, committed or assigned for the acquisition or construction of major capital assets (capital projects fund), and the funds restricted, committed or assigned for the servicing of general long-term debt (debt service funds). The general fund is used to account for all activities of the general government not accounted for in some other fund. o General Fund – Accounts for all activities of the City not accounted for in another fund. The General Corporate Fund is used to account for most of the day-to-day operations of the City, which are financed from tax revenues and other general revenues. Nine (9) separate activities are accounted for within the General Fund including: Administration, Elected Officials, Community & Economic Development, Finance Department, Police Commission, Police Department, Public Works- Administration, Public Works-Streets, and Parks and Recreation. o Special Revenue Funds – These funds are utilized to account for revenues derived from specific sources which are usually required by law or regulation to be accounted for as separate funds. For the City of McHenry these funds include the following funds, with definitions provided:  Tourism Fund – The Tourism Fund is used for the purpose of financing tourism through promotion of the City. It is derived from a 5% occupancy tax on motel and hotel receipts. 295  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 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. 296  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 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. 297 o Risk Management Fund – The Risk Management Fund accounts for all activity related to risk management and insurance costs (other than employee health insurance) including loss control, loss prevention, risk transfer, and risk assessment. o Information Technology Fund – The IT Fund facilitates the implementation of innovative, high quality technology-based services to each of the City’s departments.  Fiduciary Funds – These funds are used to account for resources held for the benefit of parties outside of the city. The Fiduciary Funds of the city include the following funds: o Employee Flexible Spending Fund – Accounts for employees’ pre-tax medical spending accounts that are offered as a benefit to City employees. o Development Escrow Fund – This fund is used to segregate developer funds held by the City to ensure the completion of specific public improvements such as sidewalks and traffic signals. o Retained Personnel Fund – The Retained Personnel Fund accounts for funds collected as reimbursement and expended for professional and technical services used to assist or advise the City in connection with land development. o Revolving Loan Fund – This 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) 298  Amounts that are required to be maintained intact (i.e., principal of an endowment) o Restricted  Externally enforceable legal restrictions (i.e., grants, debt proceeds, tax levies) o Unrestricted (3 designations)  Committed – Amounts constrained for a specific purpose by a government using its highest level of decision-making authority  Must be committed prior to fiscal year-end, however, dollar amount can be decided at a later time.  Revenues reported within any given special revenue fund are considered “Committed” by the City Council in accordance with GASB Statement 54 and are intended to be used for the related purpose.  Assigned – Amounts constrained, for the intent to be used for a specific purpose by the City Administrator and Finance Director  Includes any remaining positive balances in governmental funds (other than the General Fund) that is not classified in any other fund balance category  A drawdown of the fund balance would be classified within this category  Unassigned – Remainder of the General Fund’s fund balance that is not classified in a previous category and amounts have not been expended in excess of resources available in other governmental funds Proprietary (Enterprise/Internal Service) Fund Equity  Proprietary funds include Enterprise and Internal Service Funds.  Expenses that can be attained from multiple fund classifications shall be used from the most to least restrictive fund. With the discretion of the Finance Director, and with the advice and consent of the Finance and Personnel Committee, a lesser restrictive net asset classification can be used if they determine that it is in the best interest of the City.  The net assets will be composed of three primary categories: o Net Investment in Capital Assets – That portion of a proprietary fund’s net assets that reflects the fund’s net investment in capital assets less any amount of outstanding debt related to the purchase/acquisition of said capital assets.  Related debt, for this purpose, includes the outstanding balances of any bonds, mortgages, notes, or other borrowings that are attributable to the acquisition, construction, or improvement of capital assets of the Government. o Restricted Net Assets – That portion of a proprietary fund’s net assets that are subject to external enforceable legal restrictions (e.g., grantor, contributor and bond covenants). o Unrestricted Net Assets – That portion of a proprietary fund’s net assets that is neither restricted nor invested in capital assets (net of related debt). 299 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 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. 300 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. 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. 301 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. 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. 302 o Police Pension Fund – Fund balance targets will be determined through the Police Pension Board and the annual actuarial analysis. 303 Capital Improvement Program Financial Policy 1. The Capital Improvements Program (CIP) plan shall identify projects, their costs and the revenue sources and amounts needed to finance them. 2. The first year of the CIP program effectively becomes the capital projects budget within the operating budget for the year subject to the availability of adequate funds in the operating budget. Approval of the CIP does not guarantee that funds will be appropriated for the projects included in the first year of the CIP. 3. For General Obligation Debt, the City will maintain a debt to assessed value ratio that is 25% more stringent than the state debt limit (State limit is 8.625% of EAV; proposed limit would reduce to this ceiling to approximately 6.5% of EAV or $25.5 million outstanding). 4. Bonds issued to finance capital projects shall be structured to coincide as closely as feasibly possible to the useful life of the project. By equitably distributing the costs of the project over time, those citizens actually benefiting from the project will share in the cost. In no instance shall the maturity exceed the useful life of the project. 5. The City will not use long-term debt for current operations. 6. Where feasible, the City shall investigate the use of all sources of revenue available before using local property tax funds for capital projects. 7. Where feasible, the City will pursue project financing mechanisms - such as special service areas, special assessments or other mechanisms - that target citizens receiving a disproportionate share of the project benefit. 304 CAPITAL IMPROVEMENT PROGRAM FY19/20 - FY23/24 305 FY19/20 – FY23/24 Capital Improvement Program INTRODUCTION AND OVERVIEW OF CAPITAL IMPROVEMENT PLANNING 306 INTRODUCTION Among the primary responsibilities of municipal officials is to preserve, maintain and improve the City’s inventory of buildings, streets, parks, and water and sewer facilities. Unfortunately, like most communities, the Capital Improvement (streets, water and sewer utility, public facility improvements, stormwater improvements) and Capital Equipment (technology upgrades, vehicle and equipment replacement) needs of the City of McHenry exceed the funding resources available to keep pace with making improvements to rapidly aging infrastructure while meeting the needs of the community for new facilities and infrastructure. The City of McHenry utilizes a Capital Improvement Program (CIP) to identify projects, establish project priorities, and identify the amount and source of funds available to undertake these capital improvement and capital equipment projects. A Capital Improvement Program is the process best suited to assist the City Council in meeting the challenges of maintaining and improving the City’s infrastructure and facilities as it presents a multi-year snapshot of the capital improvement and capital equipment needs of the community along with estimated costs for budgetary planning purposes. Capital Improvement Planning is recognized as a prudent financial management tool and a necessary planning practice. Maintenance and upkeep of facilities today may prevent crises and major replacement costs tomorrow. Equally important, communities that are seekingto attract businessinvestment toguarantee a balanced and stableeconomic base recognize that a carefully planned infrastructure program is critical tothiseffort. Coupled with the Comprehensive Plan and other planning documents, the CIP promotes new investment in locations that can accommodate development with quality systems and services. The primary source of funding for capital improvement and capital equipment projects, other than water and sewer projects, is the General Fund. The General Fund is also the primary funding source for all of the operational costs associated with the following municipal budgetary units –Administration, Elected Officials, Community Development, Economic Development, Finance, Police, Police Commission, Public Works- Administration, Public Works-Streets, and Parks and Recreation. As such, these operational costs must be funded prior to identifying amounts available for capital improvement and capital equipment projects. McHenry has faced a number of challenges over the last decade that resulted in reductions in personnel and operational costs and, notably, restrictions in the municipality’s financial ability to implement capital improvement and capital equipment projects. In addition, the continued financial instability of the State of Illinois poses a continuous threat to reductions in state-shared revenues. Fortunately, a recovering economy has resulted in increases in revenues derived from sales tax and income tax receipts and in the City’s ability to rebuild its General Fund fund balance to a level that: 307 1)establishes a healthy operational reserve; 2) accounts for sudden reductions in state- shared revenues; and, 3) creates an emergency capital improvement/capital equipment funding source to address any unforeseen major capital improvement/capital equipment needs. In FY15/16 the City Council adopted an updated Fund Balance and Reserve Policy that establishes minimum fund balance requirements for various funds and ensures that any annual revenues that exceed budgeted revenues are committed to future Capital Improvement and Capital Equipment projects through a transfer from the General Fund to the Capital Improvement Fund (assigned for capital). In other words, annually, after the close of the fiscal year (April 30th), receipt of outstanding revenues and account adjustments (May, June, July), and confirmation of financial information by the annual audit (September, October) any revenues that have been derived in excess of revenues budgeted will be identified and, after ensuring that minimum fund balance requirements are being met as established by the aforementioned policy, any remaining balance will be transferred from the General Fund fund balance to the Capital Improvement Fund fund balance for use in planning capital improvement and capital equipment needs for the next budget year. Because final revenue and expenditure adjustments and audit information are not completed until 5-6 months into a fiscal year, any identified general fund revenues for use for capital improvement and capital equipment projects cannot be planned for use in that fiscal year but, rather, applied to the next successive fiscal year. Over the last six years, the City’s financial prudence has provided the opportunity to reintroduce spending for capital improvement and capital equipment projects. However, because of years of capital improvement and capital equipment project spending “freezes” due to the economic downturn, the capital improvement and capital equipment needs of the City continue to be well behind where they should be. Without the financial ability to address aging infrastructure needs - such as local roads, and equipment needs –such as vehicle replacements, will result in deterioration and increased maintenance costs. Unfortunately, this reality, along with rising operating costs, means that existing municipal revenues will not be able to sufficiently meet capital improvement and capital equipment needs. To address this, in FY18/19, Staff began the process to partner with a private firm to analyze cost saving measures related to existing practices. Any cost savings would then be redirected towards addressing, specifically, capital equipment needs such as the maintenance of existing facilities (roof replacements, HVAC system repairs) and vehicle and equipment replacement (vehicle fleet and equipment replacements). Again, the goal is to be able to use existing funding more efficiently in addressing needs. In addition to the Capital Improvement Fund, capital projects are funded through a number of other sources based on the type of project being proposed. These include the Information Technology Fund, Developer Donations Fund, Recreation Center Fund, Tourism Fund, Water and Sewer Fund, and Tax Increment Finance Fund. In order to more 308 clearly present and define projects within each of these funds, the FY19/20 – FY23/24 Capital Improvement Program format has been revised in order to present proposed projects by fund. Prior to introducing the projects that have been identified for inclusion in the FY19/20 – FY23/24 Capital Improvement Program, the following is a summary overview of capital improvements and capital improvements planning. OVERVIEW OF CAPITAL IMPROVEMENT PLANNING What are capital improvements? Capital Improvements are, simply, public improvements that meet a set of pre- determined criteria. They represent projects involving the expenditure of public funds, over and above annual operating expenses, for the purchase, construction, or replacement of the long-term physical assets of a City. Examples include: • Streets/Roads/Sidewalks • Storm Sewers • Parks • Public Buildings • Water and Sanitary Sewer Systems Including Treatment Plants • Vehicles and Equipment What are the general characteristics of capital projects? Capital projects, as defined in the City of McHenry’s Capital Improvement Program: • Are typically larger in size and/or scope; • Have a cost of more than $10,000; • Have a long-term usefulness and permanence (i.e., greater than 10 years); • Involve expenditures of a non-recurring nature (i.e., non-operating costs); and, • Add substantially to the value of the City’s fixed assets. What is capital improvement planning? Simply stated, capital improvement planning is the multi-year preparation, scheduling, and updating of a list of projects and related equipment proposed to be acquired, built or improved by the City within a fixed period. It covers the entire range of public facility and service requirements. The program lists all future projects, the amount requested for appropriation in each year, and the proposed source/method of financing. On the basis of this information, summaries of capital activities and financial requirements can be determined for each year. 309 As both a short- and long-range plan for physical development, the CIP links the City’s Comprehensive Plan and other planning documents with the annual budget. It provides a mechanism for: • Estimating capital requirements; • Proposing revenue sources for existing and future projects; • Planning, scheduling and, most importantly, implementing projects; • Budgeting high priority projects; • Coordinating the activities of various departments’ project schedules; and • Monitoring and evaluating the program of capital projects. Importantly, the CIP does not, in and of itself, appropriate funds for capital projects. Instead, the CIP simply identifies the project needs as defined by the various municipal departments for consideration, based on available funding, as part of the subsequent budget development process. Why use a five-year programming period? A five-year period is considered to be most suitable for municipal capital improvement planning. Two or three years is too little time for effective programming because planning and financing of major projects usually takes longer. On the other hand, a period of more than five years dilutes the accuracy of the projections to the point of becoming less than meaningful. Of note, for Water, Sewer and Utility projects a 10-year period is presented since these projects typically take longer to plan and fund. Why update the program annually? The Capital Improvement Program is proposed to be updated annually in order to fine- tune capital needs to reflect changing economic conditions and shifting priorities. The City must have the most accurate project cost estimates for including capital projects in the annual budget for the upcoming fiscal year. The program is also designed to be adjusted to reflect the need for additional projects and to respond to different priorities as established by City Council in response to identified needs. Like McHenry itself, the CIP is not static. Instead, it can and should be reviewed and updated every year to reflect changing priorities, unexpected events, unique opportunities, cost changes, and/or alternate financing strategies. What are some of the benefits of capital improvement planning? 1. Focusing attention on community goals, needs and capabilities. The CIP process ensures that projects reflect community-wide goals and do not exceed available resources. It requires that projects be looked at collectively as distinct from individually to determine their value to the community. It forces projects to compete and justify expenditures when compared to other needs and wants. 310 2. Achieving optimum use of taxpayer’s dollars. Advance programming can help avoid costly mistakes and duplication. It aids in making sound annual budget decisions and can result in significant savings on interest for projects financed through bonds due to a higher bond rating attributable to the existence of a formal CIP. 3. Guiding future community growth and development. The location and capacity of capital improvements help shape how, when, and where a community develops. 4. Serving wider community interests. Projects within the CIP are prioritized, in part, on the basis of greatest benefit to the greatest number of City residents as opposed to department objectives which are usually narrower. 5. Encouraging more efficient government. Coordination of capital improvements can reduce scheduling problems and conflicting or overlapping projects. An obvious example is that utilizing a CIP can prevent paving a street one year only to have it torn up the next year to install a sewer. 6. Improving intergovernmental and regional cooperation. The CIP promotes the opportunity to plan the location, timing, and financing of improvements in the interest of the community as a whole and facilitates the identification of possibilities for shared facilities. 7. Maintaining a sound and stable financial program. The CIP reduces the frequency of large, unplanned expenditures that can endanger the financial well being of the City. With ample time for planning, the most economical means of financing a project can be studied and selected in advance. A balanced CIP can help prevent making commitments and debts that may prevent the initiation of more important projects in the future. Finally, it has a positive impact on the City’s credit rating and makes the community more attractive to business and industry. 8. Repairing or replacing existing facilities and equipment. As a whole, the country’s infrastructure is in serious disrepair and the CIP process helps focus attention on the need to maintain existing assets. 9. Enhancing opportunities for participation in federal and/or state grant programs. Preparing a CIP improves the chances of obtaining grant funds through documentation of the project as an officially identified community need. 10. Transparency of local government. The Capital Improvement Program process enhances transparency by providing the public with insight regarding those capital 311 projects being considered by the public body for funding in both the upcoming fiscal year and subsequent capital improvement program planning period. 312 FY19/20 – FY23/24 Capital Improvement Program PROJECT NARRATIVES BY FUND 313 GENERAL FUND CIP PROJECTS Projects identified in the General Fund Capital Improvement Program are related to improvement, maintenance, replacement or acquisition projects of the municipality in excess of $10,000 and funded primarily through General Fund Revenues assigned through the Capital Improvement Fund or the General Fund Balance. Proposed projects are identified within six (6) categories – Public Facilities, Public Safety, Parks, Motor Pool, Streets/Sidewalks/Signals, Stormwater/Drainage. Each of these categories, and related projects, are summarized and presented separately in the following narrative. Staff and the City Council discuss and prioritize projects on an annual basis in order to maximize the impact of projects with the funding that is available. In general, maintenance projects to existing facilities and projects for which other funding sources are identified receive the highest priority. Please refer to the preceding spreadsheet for the discussion that follows. The FY19/20 – FY23/24 General Fund Capital Improvement Program includes a total of thirty- four (34) separate projects, or project categories, proposed for the 5-year planning period at a total estimated cost of $63,790,639 (Column G, Row 115). For FY19/20, there are twenty-eight (28) project requests for funding at a total estimated cost of $12,853,629 (Column B, Row 115). This includes $300,000 in Public Facility projects (Column B, Row 11), $769,120 in Public Safety projects (Column B, Row 27), $105,000 in Parks (Column B, Row 42), $2,293,200 in Motor Pool projects (Column B, Row 57), $8,576,309 in Streets/Sidewalks/Signals projects (Column B, Row 79), and $810,000 in Stormwater/Drainage projects (Column B, Row 101). As will described below, not all of these projects are proposed for funding in FY19/20. Simply, the identified General Fund CIP project needs as requested by Department Directors far outweigh the City’s ability to fund projects within the 5-year planning period. Specifically, the Streets/Sidewalks/Signals category includes more than $50 million in projects, including the annual Local Street Program, for which only $300,000 has been identified for funding in FY19/20. Further, the City’s ability to fund the replacement of vehicles and equipment cannot be met. This will result in increased maintenance and repair costs in the City’s operating budgets and, eventually, a fleet of vehicles and equipment that cannot meet the daily needs of the Departments. Municipal funding available in FY19/20 for General Fund capital projects is limited to the Capital Improvement Fund (assigned for capital) amount of $212,721 (Column B, Row 2), the Motor Fuel Tax (MFT) Fund Balance of $1,079,367 (Column B, Row 4) for road-related projects only, and the General Fund Balance amount of $7,266,958 (Column B, Row 3). Of note, the General Fund Balance amount is already approximately $83,000 below the 120-day minimum balance amount identified in the City’s Fund Balance and Reserve Policy. There is an additional $1.8 million in non-municipal funding available for specific projects (Column B, Row 119) however, most of this 314 funding requires a municipal “match” or must be used for a specific project. These have been identified as priority projects in order to leverage the alternate funding. In consideration of the priority of projects and the amount of funding available, the following projects are recommended for consideration and inclusion as part of the FY19/20 Budget. These projects are identified in YELLOW on the following spreadsheet. Projects identified with an asterisk include non-municipal funding opportunities. Full narratives for project requests follow. Public Facilities Municipal Center Building Maintenance/Improvements - $200,000 Public Safety Police Facility Improvements - $440,000* Police Canine Unit - $17,200 Parks Merkel Aquatic Center Improvements - $80,000 Streets/Sidewalks/Signals Local Street Program (Chickaloon Drive) - $300,000 Pearl Street/Lincoln Road Lighting Improvements - $805,500* Curran Road S-Curve Safety Improvements - $460,000* Bull Valley Bike Path Extension - $150,000* Barreville Road Culvert Wingwall Repair - $80,000 Pavement Maintenance - $75,000* Stormwater/Drainage Lakeland Park, Detention and Sediment Control Facility - $225,000* Ramble Road Storm Sewer - $350,000 Oakwood Drive Culvert Rehabilitation Project - $75,000 Boone Creek Dredging Project - $160,000 Total Capital Improvements Fund (assigned for capital) = $212,271 Total General Fund Balance = $1,055,279 Total Motor Fuel Tax Fund Balance = $337,700 Total Non-Municipal Funding Sources = $1,812,000 Total Amount Funded = $3,417,700 If all projects are implemented, as proposed, the Capital Improvement Program (assigned for capital) would be reduced to $0, the General Fund Balance reduced by $1,055,279 to $6,211,679, and the Motor Fuel Tax Fund Balance reduced to $741,667. Again, these are recommended projects only and may be changed, deleted or deferred at the direction of Council. 315 As referenced, summary spreadsheets that give a 5-year financial snapshot of proposed projects, followed by project narratives by category, are provided on the following pages. 316 1 2 3 4 56 7 89101112131415161718 19 2021222324252627282930313233343536 37 383940414243 A B C D E F G BEFORE AFTER Capital Improvement Fund (assigned for capital)212,721$ -$ General Fund Balance 7,266,958$ 6,211,679$ Motor Fuel Tax Fund Balance 1,079,367$ 741,667$ Project FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 5-Year Total Municipal Center Building Maintenance/Improvements 200,000 100,000 150,000 150,000 - 600,000 Public Works Facility Improvements 100,000 130,000 - - - 230,000 TOTAL 300,000$ 230,000$ 150,000$ 150,000$ -$ 830,000$ Funding Sources Capital Improvement Fund (assigned for capital)155,521 - - - - 155,521 General Fund Balance 44,479 - - - - 44,479 Total Amount Funded 200,000 - - - - 200,000 Total Amount Not Funded 100,000 230,000 150,000 150,000 - 630,000 Project FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 5-Year Total Police Facility Improvements*440,000 500,000 500,000 - - 1,440,000 Police Canine Unit 17,200 - - - - 17,200 Police Vehicles 230,720 169,745 104,904 144,068 185,490 834,927 Police Vehicle Equipment 66,200 51,357 35,895 48,816 46,762 249,030 Police Speed Trailer Replacement 15,000 - - - - 15,000 Police In-Car and Body-Worn Cameras - 60,480 60,480 60,480 60,480 241,920 TOTAL 769,120$ 781,582$ 701,279$ 253,364$ 292,732$ 2,798,077$ Funding Sources Capital Improvement Fund (assigned for capital)17,200 17,200 General Fund Balance 250,800 - - - - 250,800 Sale of Surplus Vehicles/Equipment - - - - - - Grants*189,200 - - - - 189,200 Total Amount Funded 457,200 - - - - 457,200 Total Amount Not Funded 311,920 781,582 701,279 253,364 292,732 2,340,877 Project FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 5-Year Total Merkel Aquatic Center Improvements 80,000 220,000 - - - 300,000 Petersen Park Improvements 25,000 - 25,000 25,000 - 75,000 Veterans Memorial Shelter Replacement - 80,000 - - - 80,000 TOTAL 105,000$ 300,000$ 25,000$ 25,000$ -$ 455,000$ Funding Sources General Fund CIP - Public Facilities Projects General Fund CIP - Public Safety Projects General Fund CIP - Parks Projects 317 444546474849 50 5152535455565758596061626364 65 6667686970717273747576777879808182838485868788 A B C D E F G Capital Improvement Fund (assigned for capital)- - - - - - General Fund Balance 80,000 - - - - 80,000 Total Amount Funded 80,000 - - - - 80,000 Total Amount Not Funded 25,000 300,000 25,000 25,000 - 375,000 Project FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 5-Year Total Streets - Vehicle Replacement 1,700,000 480,000 450,000 265,000 390,000 3,285,000 Streets - Equipment Replacement 260,000 420,000 90,000 102,000 40,000 912,000 Parks - Vehicle Replacement 125,000 100,000 80,000 50,000 - 355,000 Parks - Equipment Replacement 180,200 55,000 15,000 15,000 20,000 285,200 Community Development - Vehicle Replacement 28,000 28,000 28,000 - - 84,000 TOTAL 2,293,200$ 1,083,000$ 663,000$ 432,000$ 450,000$ 4,921,200$ Funding Sources Capital Improvement Fund (assigned for capital)- - - - - - General Fund Balance - - - - - - Total Amount Funded - - - - - - Total Amount Not Funded 2,293,200 1,083,000 663,000 432,000 450,000 4,921,200 Project FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 5-Year Total Street Program 6,518,314 11,902,504 13,869,824 9,142,804 1,990,954 43,424,400 Pearl Street/Lincoln Road Improvements (ITEP)805,500 - - - - 805,500 Curran Road S-Curve Safety Improvements (HSIP)460,000 - - - - 460,000 Bull Valley Bike Path Extension - Engineering & Construction 150,000 75,000 1,320,000 - - 1,545,000 Barreville Road Culvert Wingwall Repair & Rehab 80,000 - 550,000 - - 630,000 Pavement Maintenance (Cracksealing and Reclamite)75,000 75,000 75,000 75,000 75,000 375,000 Municipal Parking Lot Maintenance 377,495 173,550 377,925 545,800 676,692 2,151,462 Sidewalk Program 75,000 75,000 75,000 75,000 75,000 375,000 Tree Replacement Program 25,000 25,000 25,000 25,000 25,000 125,000 Dartmoor Road Bridge Wearing Surface 10,000 70,000 - - - 80,000 Downtown Parking/Access Improvements - 625,000 - - - 625,000 Illinois Route 31/Veterans Parkway Traffic Signal - - - - 300,000 300,000 TOTAL 8,576,309$ 13,021,054$ 16,292,749$ 9,863,604$ 3,142,646$ 50,896,362$ Funding Sources Capital Improvement Fund (assigned for capital)40,000 40,000 40,000 40,000 40,000 200,000 General Fund Balance 80,000 550,000 630,000 Motor Fuel Tax (MFT)322,700 40,000 299,000 35,000 35,000 731,700 Meyer Material 300,000 McHenry Township Funds - - - - - - County Funds 120,000 60,000 1,056,000 1,236,000 Surface Transportation Program (STP)- - - - - - Illinois Transportation Enhancement Program (ITEP)616,300 - - - - 616,300 General Fund CIP - Motor Pool Projects General Fund CIP - Streets/Sidewalks/Signals Projects 318 8990919293 94 9596979899100101102103104105106107108109110111112113114115116117118119120121 A B C D E F G Highway Safety Improvement Program (HSIP)391,500 - - - - 391,500 Total Amount Funded 1,870,500 140,000 1,945,000 75,000 75,000 3,805,500 Total Amount Not Funded 6,705,809 12,881,054 14,347,749 9,788,604 3,067,646 47,090,862 Project FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 5-Year Total Lakeland Park Det and Sediment Control Facility 225,000 1,110,000 - - - 1,335,000 Ramble Road Storm Sewer 350,000 - - - - 350,000 Oakwood Drive Culvert Rehabilitation Project 75,000 65,000 605,000 - - 745,000 Boone Creek Dredging Project 160,000 - - - - 160,000 Lakeland Park Culvert Replacements - - - 390,000 610,000 1,000,000 Lakeland Park Drainage Ditch Bank Stabilization - - 100,000 100,000 100,000 300,000 TOTAL 810,000$ 1,175,000$ 705,000$ 490,000$ 710,000$ 3,890,000$ Funding Sources Capital Improvement Fund (assigned for capital)- - - General Fund Balance 600,000 235,000 835,000 Motor Fuel Tax (MFT)15,000 13,000 121,000 - - 149,000 IEPA 319 Grant 135,000 665,000 - - - 800,000 Meyer ($300,000)- 300,000 STP Bridge Funds 60,000 52,000 484,000 - - 596,000 Total Amount Funded 810,000 1,265,000 605,000 - - 2,680,000 Total Amount Not Funded - (90,000) 100,000 490,000 710,000 1,210,000 TOTAL OF ALL FY18/19 PROJECT REQUESTS 12,853,629$ 16,590,636$ 18,537,028$ 11,213,968$ 4,595,378$ 63,790,639$ TOTAL CAPITAL IMPROVEMENT FUND (ASSIGNED CAPITAL)212,721$ 40,000$ 40,000$ 40,000$ 40,000$ 372,721$ TOTAL GENERAL FUND BALANCE 1,055,279$ 235,000$ 550,000$ -$ -$ 1,840,279$ TOTAL MOTOR FUEL TAX FUND BALANCE 337,700$ 53,000$ 420,000$ 35,000$ 35,000$ 880,700$ TOTAL ALL OTHER FUNDING SOURCES 1,812,000$ 1,077,000$ 1,540,000$ -$ -$ 3,829,000$ TOTAL AMOUNT FUNDED 3,417,700$ 1,405,000$ 2,550,000$ 75,000$ 75,000$ 6,922,700$ TOTAL AMOUNT NOT FUNDED 9,435,929$ 15,185,636$ 15,987,028$ 11,138,968$ 4,520,378$ 56,867,939$ General Fund CIP - Stormwater/Drainage Projects 319 PUBLIC FACILITIES PROJECTS Projects identified in the Public Facilities category are related to maintenance or improvements to public facilities other than those accounted for under the Public Safety or Parks categories of the General Fund CIP or the Developer Donations, Recreation Center Fund, or Water/Sewer Fund CIPs. The FY19/20 – FY23/24 Public Facilities category includes a total of two (2) project categories proposed for the 5-year planning period at a total estimated cost of $830,000. One project, Municipal Center Building Maintenance/Improvements related to the replacement of the three remaining rooftop units (RTUs), is proposed for funding in FY19/20 with a total estimated cost of $200,000. The remaining projects would be deferred. Project: Municipal Center Building Maintenance/Improvements (Row 9 of spreadsheet) Funding Request: FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 Total $200,000 $100,000 $150,000 $150,000 -0- $600,000 Submitted By: Ross Polerecky, Director of Community Development Project Purpose, Description and Benefit The McHenry Municipal Center is now 25 years old faces a number of maintenance challenges that must be continuously addressed. In recent years, facility infrastructure repair costs have been increasing and unforeseen repairs, such as the replacement of one of the rooftop HVAC units in FY17/18, result in the need for emergency expenditures. Major building repairs/improvements that have been identified for inclusion in the 5-year CIP include the following: FY19/20 Replacement of Rooftoop Units (RTUs) – The municipal center has four (4) RTUs that provide HVAC for the facility. One unit required emergency replacement in FY17/18 and the other three are nearing end-of-life. Estimated cost - $200,000. FY20/21 Carpeting replacement (all areas except Police and 2nd floor hallway) – This project was proposed for funding in FY18/19 but deferred. The carpeting in the Police Administration portion of the building was replaced with the FY17/18 renovation/expansion. The carpeting in the remainder of the building is original to its construction in 1993. In many places the carpet is wearing through and/or simply cannot be cleaned. The new carpet would complement what was installed in Police Administration as closely as possible. Estimated cost - $100,000. 320 FY20/21 Replacement of boilers – The Municipal Center boilers have already been retubed once and are growing increasingly inefficient. During times of extreme cold it is difficult for the boilers to be able to heat all areas of the facility. Estimated cost - $150,000. FY21/22 Re-surfacing of parking lot – Estimated cost - $150,000 Project: Public Works Facility Improvements (Row 10 of spreadsheet) Funding Request: FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 Total $100,000 $130,000 -0- -0- -0- $230,000 Submitted By: Jon Schmitt, Director of Public Works Project Purpose, Description and Benefit FY19/20 Fuel Station: Currently all City of McHenry Equipment and Vehicle’s get fuel from Petro Choice here in McHenry. Petro Choice has had some issues in the past with their tanks and pumps forcing us to use a temporary fueling system at Public Works. During the repair they had mentioned that at some point it wouldn’t be worth it for them to continue to maintain their fueling system. Staff recommends constructing our own fueling system at the Public Works Facility. There could be the possibility of partnering with other taxing agencies to construct the fueling station. FY20/21 Covered Salt Storage Bin: Currently the Public Works Department has a 500 ton salt storage facility located at the South Wastewater Treatment Plant. During the snow season salt is also stored inside the Public Works Facility; this is not a long term solution due to the potential damage the salt moisture might cause to the interior of the building. Staff recommends constructing a second salt storage facility at the Public Works Facility location where salt will be stored in a separate building year round. 321 PUBLIC SAFETY PROJECTS Projects identified in the Public Safety category are related to meeting the capital improvement and capital equipment needs of the McHenry Police Department. While this category includes a combination of public facility, vehicle and equipment projects, it is proposed and tracked separately from related projects in order to provide for a specific accounting of expenditures related to public safety improvements, as projects may be funded with law-enforcement specific grant or seizure funds. The FY19/20 – FY23/24 Public Safety category includes a total of six (6) project categories proposed for the 5-year planning period at a total estimated cost of $2,798,077. Two (2) projects – Police Facility Improvements and Police Canine Unit - are proposed for funding in FY19/20 at a total estimated cost of $457,200. It should be noted that the Police Facility Improvements are proposed for funding at $440,000 with 100% of these funds coming from Police Seizure Funds and/or a Police Facility Grant. Also of note, while the Police Department has identified a need of $296,920 for vehicles and vehicle equipment, this request cannot be met with the current capital funding available. Project: Police Facility Improvements (Row 21 of spreadsheet) Funding Request: FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 Total $440,000 $500,000 $500,000 -0- -0- $1,440,000 Submitted By: John Birk, Chief of Police Project Purpose, Description and Benefit The purpose of this project is to assure that the McHenry Police Department creates a facility that allows for the highest level of effective and efficient operation in line with the agency mission. This project will outline the steps needed to assess, develop a plan and determine if and when action should be taken over the next five fiscal budgets. Overview The McHenry Police Department currently utilizes a facility that was allocated in 1991, over 27 years ago. Over the last twenty seven years the city has almost doubled in size allowing for growth within the police department to meet the needs of the public. This department growth combined with technology changes has produced multiple issues in the use of departmental workspace inside the facility. As the facility has aged it no longer meets the needs of the department. In 1991 the police department employed 28 officers and 7 civilian positions. In present day, at full staffing as allocated the department staffs 51 sworn officers, 28 full civilian positions and five part time civilian positions. This is over a 242% increase in staffing by the agency. Facility deficiencies can be identified throughout the department, altering planned 322 operations. These conditions affect efficiency, effectiveness, morale, occupant safety, and public perception of the department. A formal review and renovation plan was conducted by FGM Architects in 2014. In the fall of 2016 the police department successfully implemented the first phase of the department renovation. This first phase included the relocation of police administrative services to the second floor of the municipal center building, expansion of the dispatch center, and construction of a new IT office and server room. Phase one was completed in April of 2017. Issues Identified: After completing phase one of the police department renovation the facility was re-evaluated to update identified facility deficiencies. The following deficiencies are still present within the police station. These deficiencies prevent officers from performing their tasks at the highest level of output with the fewest amount of input. Individual Workspace Patrol Sergeants Six patrol sergeants currently share community office space in an area that is approximately 10x21 feet (210 Sq Feet). This area is too small to house the six supervisory staff members. With the increased demands placed on first-line supervisors as they relate to personnel (paperwork and information technology), sergeants are in need of increased work space. It is recommended that the Patrol Sergeants move into the area that is currently occupied by detectives. This square footage will allow for the construction of individual sergeant offices and possibly a central meeting room. This new space would allow for privacy when dealing with personnel issues and holding training/meeting/counseling sessions. Divisional and Operational Workspace Squad Room / Follow-up In-Station Work Area With the increase of the work force as previously stated and the advancements in technology we have determined that the department squad room has limited space for all that our officers must do. In this area our officers are expected to participate in uninterrupted training, information gathering and information dissemination during their roll call times. Due to a lack of additional space the officer’s voicemail system, computer report writing stations, evidence packaging station, mailboxes, equipment storage locations and paperwork are also stored inside of the roll call room. These additions add to the distractions of the room, affecting the efficient patrol operation. It is recommended that we develop a separate work space area that allows for computer work, paperwork, telecommunication, evidence packaging, and follow-up to be conducted free of the distraction of the roll call room. In realizing that a large part of an officer’s work is the 323 documentation of events handled by them every day, we recognize the importance of this workspace. This change will result in a more professional atmosphere for roll call and training. By creating a separate workspace area for follow-up and in station work, officer’s work on evidence, sworn reports and follow-ups will become more accurate, increasing productivity. No structural changes in this area would be required. By moving the phones, computers, mailboxes and small equipment into the now sergeant’s office, two distinct workspaces (Roll Call Room & Follow-up In-Station Work Area) would be developed. In order for this to occur the patrol sergeants would need to move to the current investigations area and investigations would need to move to the second floor of the building next to police administration. Investigations The investigation section is currently at its maximum capacity with the workspace provided, allowing for no further growth. The current workspace layout does not allow for the most efficient work environment. Just as previously stated regarding the patrol sergeant’s workspace individual offices for the Detective Sergeant and Detectives are requested in this plan. It is recommended that the Investigation Section be moved to the second floor of the municipal building to accompany the Administrative Section. This move would include offices, meeting room and interview/interrogation rooms. Locker Rooms With the expansion of our work force from 1991 to its current level we have reached the point that our forefathers may not have anticipated. We now have more police employees than we have lockers to assign to them. It is imperative that our officers have access to lockers and adequate facilities to allow them storage of their police equipment and areas to change into their duty uniforms. An expansion of our current locker/bathroom/shower facilities is needed. Training Room The training room is due for a remodel/update. This area of the building has the potential to become a room that is available for use to the public and should be offered in such a manner. It is recommended that this room undergo a facelift to accommodate outside public meetings/trainings in our effort to provide use of the facility to the public. Workout Room With the new recreation center located across the parking lot of the municipal building, the old workout room space can be repurposed. Due to its location this area would should be sufficient in sizing to accommodate a new women’s locker room which would free up the existing space for an expansion of the men’s locker room. Processing / Cells / Interview Rooms The processing area of the department is in need of an update. Calls for service involving arrestees have grown well over 300% since the processing area was built. The area is too small and creates officer safety and liability issues for the City. It is our recommendation to move the processing area of our holding facility to what is now the salleyport area. This new area 324 would allow for a processing area that is triple the size of our current area, allowing for the processing of more than one prisoner at a time safely. This would also allow us to add an additional holding area in the old processing area if growth justifies it. Salleyport The salleyport for the McHenry Police Department has been insufficient in size since it was built. Currently only one car at a time can enter the salleyport with a prisoner. All other prisoners must be walked in, which is not secure and increases the risks of incidents. It is our recommendation to add a new salleyport, by placing an addition on the northeast corner of the Municipal Center Building, which would allow for up to three vehicles at a time. Conclusion In conclusion of this project request we have identified many of the obvious facility deficiencies that we have seen. In summary we are requesting that an expansion/renovation of our department workspace be approved in the following phases: Phase 2: Renovation of the northeast portion of the second floor to accommodate the Investigation Division. Renovation of the current detective office for the new placement of all patrol sergeants. Renovation of the current Sergeant office to become the new follow-up in station work area. Renovation of Roll Call Room and first floor hallways. Phase 3: Renovation of the police department training room. Phase 4: Renovation of the police department locker room facilities. Phase 5: Renovation of the police department processing area and salleyport. The space needs analysis conducted in 2014 by FGM shows that the police department is currently operating with 8,413 square feet of workspace when based on our agency size and needs, 17,878 square of the building should be allocated for the police department. This newly defined square footage accounts for roughly 43% of the Municipal Center. Phase one renovations which was completed in the first quarter of 2017 added approximately 3,500 square feet or workspace. By moving the Investigation Section upstairs we will free up approximately additional space on the first floor which will allow for the remainder of our expansion needs. Funding: In an effort to keep this renovation process moving forward the police department has chosen to earmark their current police seizure fund balance and grant funding for the second phase of this project. The police department will commit future seizure funds to the additional phases in order to conduct as much of the facility renovation as possible without using general funds. Future improvements (beyond FY19/20) would need to be funded through the General Fund. 325 Renovation Benefits: By moving forward with the renovation of the police department we are confident that that following benefits will occur. • Increase efficiency and effective of agency • Reduce liability • Address current deficiencies • Address future growth projections • Accommodate consolidation mandate • Reduce health and risk factors • Address security concerns • Improve community service operations • Provide facility space for community events • Improved public perception Project: Police Vehicles (Row 23 of spreadsheet) Funding Request: FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 Total $230,720 $169,745 $104,904 $144,068 $185,490 $834,927 Submitted By: John Birk, Chief of Police Project Purpose, Description and Benefit The purpose of this program is to assure that the McHenry Police Department maintains the proper level of dependable police vehicles needed to service the community in all law enforcement efforts. Vehicles are a primary piece of law enforcement equipment that must be replaced in order to ensure fleet dependability and service to the community. This project will outline the vehicle replacement plan proposed over the course of the next five fiscal budgets. The police department has continued to seek out the most cost effective and efficient way to purchase and use vehicles. Factors considered in the replacement of police vehicles include upfront costs, maintenance cost during the life of the vehicle, projected longevity of the vehicle, community expectations, vehicle work performance needs and projected resale value. The McHenry Police Department currently maintains a vehicle fleet that includes the following vehicles as part of the vehicle replacement program: 326 1. 18 Marked Police Patrol Squad Vehicles 2. 4 Specialty Vehicles (2 SRO Vehicles, 1 CSO Vehicle and 1 Evidence Vehicle) 3. 9 Unmarked Squad Cars In previous years we have reduced the size of the fleet to reflect the needs of the agency and staffing levels of today. The remaining fleet identified above is predicted to be of sufficient size for the next five fiscal years. It is the goal of the replacement program to continue to replace marked patrol squads once they have exceeded 80,000 miles and unmarked squads that have exceeded 100,000 miles (depending on condition). An evaluation of our current fleet has been conducted and the following replacements over the course of the next five fiscal years are requested. FY19/20: 5 marked police patrol vehicles and 2 unmarked police vehicles FY20/21: 4 marked police patrol vehicles and 1 unmarked police vehicle FY21/22: 3 marked police patrol vehicles FY22/23: 4 marked police patrol vehicles FY23/24: 3 marked police patrol vehicles and 2 unmarked police vehicles The above rotating replacement program allows for 87% of the fleet to be rotated out over the course of the next five fiscal years. Below is the breakdown of estimated individual vehicle costs for marked patrol vehicles and unmarked vehicles. A 3% increase was added for each year due to the increased cost of vehicles. Cost analysis: Projected Pricing of Police Vehicles based on 2018/19 pricing with a 3% Cost Increase annually: Marked Police Patrol Squad Cars, Unmarked Vehicles, CSO Vehicle Pricing Total 3% rate increase (2019/2020 fiscal year pricing) 32,960.00 Total 3% rate increase (2020/2021 fiscal year pricing) 33,949.00 Total 3% rate increase (2021/2022 fiscal year pricing) 34,968.00 Total 3% rate increase (2022/2023 fiscal year pricing) 36,017.00 Total 3% rate increase (2023/2024 fiscal year pricing) 37,098.00 Benefit/Need: The above projected replacements would be needed to maintain the current level of police services to the community. Police vehicles are the key piece of equipment used by all officers to perform their job tasks and are a necessity to perform both routine jobs and those of an emergency nature. A review of vehicle maintenance records has shown that marked police vehicles (driven 24 hours a day by numerous people) begin to experience an increase in minor and major 327 mechanical problems after they have exceeded 85,000 miles. The cost to repair and maintain a marked police patrol over 85,000 miles will exceed the benefit of keeping it in service. Unmarked police vehicles are often driven by only one officer and subsequently last longer and are maintained in better condition. Based on maintenance records, unmarked police vehicles can often exceed 100,000 miles before experiencing an increase in both minor and major mechanical issues. In recent years the police department has reduced its marked fleet to a size that is manageable and meets the needs of police demands. This reduction saves the city in annual repairs and maintenance cost to the fleet. By adopting and following the above replacement schedule the remaining vehicles are replaced at times that allow for minimal repair costs during the life of each vehicle and maximum revenue for vehicles sold at auction. Maintaining a dependable and functional police fleet is crucial to the mission of the agency. Because of the nature of police work police vehicles are used in a rigorous manner unlike other vehicles. Assuring that vehicles are replaced at the opportune time allows for a financial benefit to the City, safe vehicles for our officers and vehicles that can meet the demands of the community. No funding is being proposed for this project. Project: Police Vehicle Equipment (Row 24 of spreadsheet) Funding Request: FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 Total $66,200 $51,357 $35,895 $48,816 $46,762 $249,030 Submitted By: John Birk, Chief of Police Project Purpose, Description and Benefit The purpose of this program is to assure that the McHenry Police Department maintains the proper level of equipment needed in all police vehicles. This program will outline the vehicle equipment replacement plan proposed over the course of the next five fiscal budgets. The McHenry Police Department currently maintains a vehicle fleet that includes the following vehicles as part of the vehicle replacement program: 4. 18 Marked Police Patrol Squad Vehicles 5. 4 Specialty Vehicles (2 SRO Vehicles, 1 CSO Vehicle and 1 Evidence Vehicle) 6. 9 Unmarked Squad Cars 328 In previous years we have reduced the size of the fleet to reflect the needs of the agency and staffing levels of today. The remaining fleet identified above is predicted to be of sufficient size for the next five fiscal years. It is the goal of the replacement program to continue to replace marked patrol squads once they have exceeded 80,000 miles and unmarked squads that have exceeded 100,000 miles (depending on condition). An evaluation of our current fleet has been conducted and the following replacements over the course of the next five fiscal years are requested. As current vehicles are replaced (highlighted in “FY19/20 Project Request – Police Vehicles Program” new equipment will be needed for each vehicle. The need for this new equipment is due to the following factors: 1. Age of current equipment: Equipment is transferred from one car to another when feasible but replacement must occur when factors of (1) excessive use /wear, (2) expiration of warranty, and (3) equipment failure are present. The maximum life on all vehicle equipment is 5 to 8 years. 2. Compatibility of old equipment: With the purchase of new model police vehicles existing equipment parts (cages, consoles, computer mounts, prisoner seats, etc.) are not compatible. The following vehicle replacements will require vehicle equipment purchases annually over the next five years. FY19/20: 5 marked police patrol vehicles and 2 unmarked police vehicles FY20/21: 4 marked police patrol vehicles and 1 unmarked police vehicle FY21/22: 3 marked police patrol vehicles FY22/23: 4 marked police patrol vehicles FY23/24: 3 marked police patrol vehicles and 2 unmarked police vehicles Below is the breakdown of estimated equipment costs for each type of vehicle purchased. Pricing is based on fiscal year 2018/19 pricing and will have a 2% increase added for each year due to the increased cost of equipment and labor. Marked Squad Equipment Cost Analysis: Description Pricing Radar Unit with Install 2,100.00 Vehicle Striping 600.00 Emergency Lights, Electronics & Mounting Hardware 4,700.00 Prisoner Cage & Window Bars 1,800.00 Installation Labor 2,300.00 Total cost per marked vehicle 11,500.00 Total (2019/2020 fiscal year pricing) 57,500.00 Total 2% rate increase (2020/2021 fiscal year pricing) 46,920.00 329 Total 2% rate increase (2021/2022 fiscal year pricing) 35,895.00 Total 2% rate increase (2022/2023 fiscal year pricing) 48,816.00 Total 2% rate increase (2023/2024 fiscal year pricing) 37,344.00 Unmarked Squad Equipment Cost Analysis: Description Pricing Emergency Lights, Siren & Hardware 2,500.00 Gun Rack 650.00 Installation Labor 1,200.00 Total Cost per unmarked vehicle 4350.00 Total (2019/2020 fiscal year pricing) 8,700.00 Total 2% rate increase (2020/2021 fiscal year pricing) 4,437.00 Total 2% rate increase (2021/2022 fiscal year pricing) 0.00 Total 2% rate increase (2022/2023 fiscal year pricing) 0.00 Total 2% rate increase (2023/2024 fiscal year pricing) 9,418.00 Benefit: The above equipment replacement program would be needed to maintain the current level of police services to the community. Police vehicle equipment is required for all officers to perform their job tasks and is a necessity to perform both routine jobs and those of an emergency nature. Equipment placed in vehicles is directly related to the effective and efficient operations of the department. Dependable emergency vehicle equipment is critical to the performance and mission of the agency. Emergency lighting and equipment reduces risk of vehicle accidents /city liability and allows officers to respond to emergency calls in a fast and safe manner. Prisoner transport equipment (cages and seats) allow for a reduced risk of officer injury and arrestee injury. In order to ensure safe roadways throughout the community, traffic enforcement is expected to be conducted by all sworn officers. Modern, reliable radar units will assist officers in completing this task. No funding is being proposed for this project. 330 Project: Police Speed Trailer Replacement (Row 25 of spreadsheet) Funding Request: FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 Total $15,000 -0- -0- -0- -0- $15,000 Submitted By: John Birk, Chief of Police Project Purpose, Description and Benefit The purpose of this project is to replace the agency’s existing speed radar trailer which has reached end of life. This piece of equipment is used to address traffic related issues, public perception and driving behavior in order to create safe roadways in the City of McHenry. Overview The McHenry Police Department has had a speed radar trailer in service since 2002. The current speed radar trailer is over fifteen years old and is not fully operational. The LED light board is failing and the car counting system (used to collect traffic data) has been non- functional for multiple years. The current speed trailer is out of warranty and parts to repair have become obsolete and unattainable. Replacing the current unit is estimated to cost between $12,000 and $15,000. This cost would include the radar unit, trailer, led sign, battery/solar system, data collection software and extended warranty. At time of purchase a vendor would be selected based on competitive pricing with a minimum of three bid quotes, not to exceed $15,000. Benefit: Traffic safety and safe roadways is a foundational function of the police department. The use of a mobile speed radar device is a critical tool in addressing traffic behavior in order to ensure that we maintain the safest roadways possible. This tool allows the police department to address traffic related concerns without incurring additional personnel costs that might otherwise be needed if officers were to be assigned specific radar enforcement details. No funding is being proposed for this project. 331 Project: Police In-Car and Body-Worn Cameras (Row 26 of spreadsheet) Funding Request: FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 Total -0- $60,480 $60,480 $60,480 $60,480 $241,920 Submitted By: John Birk, Chief of Police Project Purpose, Description and Benefit The purpose of this program is to replace the police department’s current in-car video camera systems as they reach end of life and incorporate the use of body-worn cameras into the agency’s video camera program. Specifically this program is a two part program. Part one is the replacement of all existing in-car video camera systems and part two is implementing (for the first time) body-worn cameras that are compatible with the agency in-car system. In-Car System: The McHenry Police Department has had an established in-car video camera program since 2001. Since this time the agency has migrated from it original platform of VHS tapes to digital recorders that download video to an in-house server. The current in-car video camera systems in use today are near end of life as they have been in service since 2008. Existing Illinois law dictates the manner and use that in-car video cameras can be use in law enforcement and the McHenry Police Department has an establish policy. Body-Worn System: Illinois Governor Bruce Rauner signed into law the Law Enforcement Officer-Worn Body Camera Act that took effect on January 1, 2016. The Act, in summary, states that any agency deploying body worn cameras must abide by the provisions of the Act. Some of the provisions are: • Cameras must be turned on at all times when the officer is in uniform and is responding to calls for service or engaged in any “law enforcement-related encounter” or activity that occurs while the officer is on-duty. • Recordings must be retained for a minimum of 90 days. o Recordings may not be altered, erased or destroyed prior to the expiration of the 90- day storage period. o Following 90-day storage period recordings must be destroyed unless flagged. An encounter is flagged when:  A formal or informal complaint has been filed;  The officer discharged his firearm;  Death or great bodily injury occurred; 332  The encounter resulted in a detention or an arrest, excluding traffic stops which resulted in only a minor traffic offense or business offense;  The officer is the subject of an internal investigation or otherwise being investigated for possible misconduct;  The supervisor of the officer, prosecutor, defendant, or court determines that the encounter has evidentiary value in a criminal prosecution; or  The recording officer requests that the video be flagged for official purposes related to his/her official duties. o Under no circumstances shall any recording made with an officer-worn body camera relating to a flagged encounter be altered or destroyed prior to 2 years after the recording was flagged. If the flagged recording was used in a criminal, civil, or administrative proceeding, the recording shall not be destroyed except upon a final disposition and order from the court. The possibility exists of a law being passed in Illinois that makes the use of body worn cameras mandatory for all police agencies. The McHenry Police Department is incorporating the body- worn part of this program with this situation in mind. Expense: The acquisition of new in-car video camera systems and body-worn systems can occur in one of two ways; purchase or lease. The data storage can all also be done in one of two ways; local in-house servers or cloud based storage. Staff has researched the different acquisition methods and found that at the time of this CIP proposal, the use of leased equipment and cloud based storage would be the best choice. The benefits to leased equipment and cloud storage are: • Lower upfront costs or first year implementation cost. • Automatic hardware upgrade/replacement every three years. • No hardware or maintenance costs associated with purchasing servers or managing them. • Maintenance, repairs and replacements are done as part of the lease with no additional costs to the department. Leased In-Car and Body Worn Camera Equipment Analysis: In conducting research Staff identified Body Worn Inc. as a leading contender in the lease of both in-car cameras and body-worn cameras. Body Worn Inc. offers a 5 year lease agreement (as of January 2017) that includes all needed in-car cameras and body worn cameras based upon the agencies sworn level and officers who would be using the body-worn cameras. The average price of $120.00 is estimated as the cost per month per body-worn camera. Eighteen in-car cameras are build into the monthly price. With the lease of 42 body-worn cameras and 18 in-car cameras the estimated annual cost of the lease program would be 60,480.00. 333 Benefit: There have been many studies on the use of in-car cameras and body-worn cameras that show the benefits of this equipment. In-car video cameras are used for the following reasons: • As method of documenting offender actions. • As method of documenting officer actions. • As a method of document evidence and crime scenes. • As method to reduce agency liability and protect officers against false accusations. • As method for holding officers accountable for their inappropriate actions. • As a method for justifying officer’s action in the line of duty. Body-worn cameras for police agencies has seen significant grow in the last two years. The benefits to the use of body-worn cameras are significant. Some of which are: • The necessity to record every interaction with residents is bound to minimize complaints about police officer behavior and the unnecessary use of force, because interactions are captured for everyone to see. • Use of the cameras while on-duty provides hard video evidence of decisions made by officers in high intensity situations. • Video recorded by body cams protect any false accusations, misconduct, or abuse against officers. • Increases transparency and accountability of officers. • May help prevent and de-escalate confrontational situations between officers and civilians. • May help provide valuable evidence in obtaining accurate witness and victim statements. • Video footage captured may help speed up court proceedings by providing indisputable proof of situations. This may lead to a reduction in court expenses due to an increase in pre-trial plea bargains or possibly an increased rate of convictions. No funding is being proposed for this project. 334 Parks Projects Projects identified in the Parks category are related to the maintenance of existing parks facilities/amenities. Where possible, park improvements are included for consideration in the Developer Donation Fund CIP. The FY19/20 – FY23/24 Parks category includes three (3) project categories proposed for the 5- year planning period at a total estimated cost of $455,000. As single project, Merkel Aquatic Center Improvements, is proposed at $80,000 for FY19/20. Project: Merkel Aquatic Center Improvements (Row 39 of spreadsheet) Funding Request: FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 Total $80,000 $220,000 -0- -0- -0- $300,000 Submitted By: Bill Hobson, Director of Parks and Recreation Project Purpose, Description and Benefit An analysis was completed of the Merkel Aquatic Center in 2014. In summary, the facility is largely in stable condition with an estimated remaining life of approximately 8-10 years. The immediate concern for the pool itself will be the replacement of the pool liner. Other considerations however, should be made regarding the potential additions for the facility such as a potential waterslide utilizing the hillside, deck amenities, or even a party deck/cabana area that would also increase revenues. Projects recommended to be funded from the General Fund during the 5-year planning period are as follows: FY19/20 – Pool Liner & Gutters FY20/21 – Renovation and Replacement of Concrete Pool Deck 335 Project: Petersen Park Improvements (Row 40 of spreadsheet) Funding Request: FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 Total $25,000 $25,000 -0- $25,000 -0- $75,000 Submitted By: Bill Hobson, Director of Parks and Recreation Project Purpose, Description and Benefit There are a number of improvements at Petersen Park that we would like to accomplish over the next few years. The park is our premiere athletic complex as well as the grounds for our larger festivals such Fiesta Days and Blues, Brews and BBQ’s. The beach area is an attraction for many of our residents and a highlight of our parks system. Below is a list of the potential projects. Projects proposed within the General Fund 5-year CIP are as follows: FY19/20 – Replacement of Right Field Netting FY21/22 – Fencing Replacement Field #5 FY23/24 – Electrical Panel Upgrades at Beach No funding is being proposed for this project. Project: Veterans Memorial Park Shelter Replacement (Row 41 of spreadsheet) Funding Request: FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 Total -0- $80,000 -0- -0- -0- $80,000 Submitted By: Bill Hobson, Director of Parks and Recreation Project Purpose, Description and Benefit The Veteran’s Memorial Park Washroom facility is on the proposed CIP for renovation this year. The park is one of the most popular for event and for rentals. It used virtually year round. The replacement of the smaller 20’ x 30’ picnic shelter at the same time as the washroom renovation would provide cost savings. More importantly it would provide a facelift to this key park in the center or the city. The last benefit of the replacement speaks to the ability to 336 program the park throughout the year. By adding a larger 40’ x 60’ shelter with a new concrete pad, the venue will allow an ideal location for an additional ice rink in the winter time. This could be a synthetic ice surface to extend the skating season. 337 Motor Pool Projects Projects identified in the Motor Pool category include all departmental vehicle and equipment requests except for the Police Department and Water/Sewer/Utility Divisions of the Department of Public Works. As has been identified previously, all departments/divisions have a vehicle replacement program schedule that is based on a number of factors including vehicle mileage, service hours, and maintenance records. Also, as a reminder, vehicle and equipment replacements were “frozen” during and just after the economic downtown which resulted in replacement programs being delayed and, as a result, the need to extend usage on vehicles and equipment for an additional 2-3 years. NOTE: All vehicle requests are for the replacement of vehicles currently in service and not for the purchase of new vehicles. Vehicles being replaced will be auctioned. The FY19/20 – FY23/24 Motor Pool category includes a total of five (5) project categories proposed for the 5-year planning period at a total estimated cost of $4,921,200. Despite the identified need, no vehicle or equipment replacement purchases are identified for funding in the FY19/20 Budget. Project: Streets – Vehicle Replacement (Row 52 of spreadsheet) Funding Request: FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 Total $1,700,000 $480,000 $450,000 $265,000 $390,000 $3,285,000 Submitted By: Jon Schmitt, Director of Public Works Project Purpose, Description and Benefit The FY19/20 proposed project includes the replacement of the following; • Replacement of two (2) 2001 International dump trucks with plows and salt spreaders, one with a wing plow ($200,000 each). • Replacement of two (2) 2002 international dump trucks with plows and salt spreaders ($200,000 each). • Replacement of one (1) 2003 International dump truck with plow and salt spreader ($200,000). • Replacement of one (1) 2004 International dump truck with an under belly plow and salt spreader ($200,000). 338 • Replacement of one (1) 2005 international truck with plow and salt spreader ($200,000). • Replacement of one (1) 2003 Ford one ton dump truck 4x4 with plow ($85,000). • Replacement of one (1) 2004 Chevy one ton dump truck 4x4 with plow ($85,000) • Replacement of one (1) 2006 ford one ton dump truck 4x4 with plow ($85,000). • Replacement of one (1) 2001 Jeep Cherokee that is unrepairable with 4x4 pick-up truck with plow ($45,000). Future needs include: • FY20/21 – Replacement of two (2) 2006 International dump truck. Replacement of a 2008 ford pickup trucks and a 2000Ford Crown Vic. • FY21/22 – Replacement of two (2) 2008 International dump trucks, one with an underbelly plow and a 2012 Ford F250 pickup truck. • FY22/23 – Replacement of a 2011 International dump truck with an underbelly plow and a 2006 Ford F550 pickup truck for the mechanics. • FY23/24- Replacement of a 2012 International dump truck with an underbelly plow and three (3) 2014 F250 pickup trucks and 2014 Ford Taurus. No funding is being proposed for this project. Project: Streets – Equipment Replacement (Row 53 of spreadsheet) Funding Request: FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 Total $260,000 $420,000 $90,000 $102,000 $40,000 $912,000 Submitted By: Jon Schmitt, Director of Public Works Project Purpose, Description and Benefit The FY19/20 proposed project includes the replacement of a 1996 Case loader/backhoe and a 2005 Case loader/backhoe. These backhoes are critical to our concrete, asphalt and ditching 339 programs. In the past few years they have spent more time being repaired than working thus impeding productivity with our concrete, asphalt and ditching programs. Future needs include: • FY20/21 - Replacement of a 2005 Case uni loader, 2005 Morbark chipper and 2006 Vac- All Street Sweeper. • FY21/22 - Replacement of a 2007 Morbark chipper and 2003 Dyna Pack roller. • FY22/23 - Replacement of a 2003 New Holland mowing tractor and 1989 Wells Fargo trailer. • FY23/24 - Replacement of a 1994 Hilsboro Trailer and 2003 Imperial Trailer No funding is being proposed for this project. Project: Parks – Vehicle Replacement (Row 54 of spreadsheet) Funding Request: FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 Total $125,000 $100,000 $80,000 $50,000 -0- $355,000 Submitted By: Bill Hobson, Director of Parks and Recreation Project Purpose, Description and Benefit No funding is being proposed for this project. The following is the proposed replacement schedule for Parks and Recreation Vehicles: Equipment Year Budgeted for Amount Truck with plow replaces a 2006 pickup with currently 102,000 miles FY19/20 $50,000 Truck with plow replaces a 2001 pickup with currently 113,000 miles FY19/20 $50,000 Ford Windstar Program Van FY19/20 $25,000 340 Truck with plow replaces a 2002 pickup with currently 107,000 miles FY20/21 $50,000 Truck with plow replaces a 2001 pickup with currently 115,000 miles FY20/21 $50,000 Replacement of the 1 ton dump replace 2005 vehicle FY21/22 $60,000 4 door sedan FY21/22 20,000 Truck with plow replaces a 2003 pickup with currently 75,000 miles FY22/23 $50,000 Project: Parks – Equipment Replacement (Row 55 of spreadsheet) Funding Request: FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 Total $180,200 $55,000 $15,000 $15,000 $20,000 $285,200 Submitted By: Bill Hobson, Director of Parks and Recreation Project Purpose, Description and Benefit No funding is being proposed for this project. The following is the proposed replacement schedule for Parks and Recreation Equipment and Vehicles: Equipment Year Budgeted for Amount Toolcat w/attachments FY19/20 $73,000 Ballfield Machine FY19/20 $30,000 Toro Workman HD FY19/20 $19,200 Uniloader FY19/20 $58,000 Attachments for the Utility Vehicle FY20/21 $55,000 John Deere Gator FY21/22 $15,000 341 Balllfield Machine FY22/23 $15,000 6’ Mower FY23/24 $20,000 Project: Community Development – Vehicle Replacement (Row 56 of spreadsheet) Funding Request: FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 Total $28,000 $28,000 $28,000 -0- -0- $84,000 Submitted By: Ross Polerecky, Director of Community Development Project Purpose, Description and Benefit The following is the proposed replacement schedule for Community Development vehicles: Equipment Fiscal Year Amount Replacement of 2003 Ford pickup truck FY19/20 $28,000 Future Needs Include: • FY20/21 - Replacement of a 2005 Ford pick-up truck • FY21/22 - Replacement of a 2005 ford pick-up truck No funding is being proposed for this project. 342 Streets/Sidewalks/Signals Projects Projects identified in the Streets/Sidewalks/Signals category include all streets-related projects, street lighting projects, municipal parking lot maintenance, annual sidewalk program, and the tree replacement program. In FY18/19, the project Downtown Parking/Access Improvements was added to this category. It is important to highlight that the City has been able to leverage significant non-municipal funding for roadway projects in recent years. This continues in the 5- year planning period. The FY19/20 – FY23/24 Streets/Sidewalks/Signals category includes a total of twelve (12) project categories proposed for the 5-year planning period at a total estimated cost of $50,896,362. Six (6) projects are proposed for funding in FY19/20 – Local Street Program (Chickaloon Drive only), Pearl Street/Lincoln Road Improvements, Curran S-Curve Safety Improvements, Bull Valley Bike Path Extension, Barreville Road Culvert Wingwall Repair & Rehabilitation, and Pavement Maintenance & Cracksealing – at a total estimated cost of $1,870,500. Of this amount, $1,427,800 is non-municipal funding that is leveraged by $322,700 in Motor Fuel Tax Funds, $80,000 from the General Fund Balance, and $40,000 from the Capital Improvement Fund (assigned for capital). Due to insufficient funds in the Capital Improvement Program (assigned for capital) and General Fund Balance, the only Local Street Program project being recommended for FY19/20 is Chickaloon Drive in the Glacier Ridge Subdivision at an estimated cost of $300,000. Project: Street Program (Row 67 of spreadsheet) Funding Request: FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 Total $6,518,314 $11,902,504 $13,869,824 $9,142,804 $1,990,954 $43,424,400 Submitted By: Jon Schmitt, Director of Public Works Project Purpose, Description and Benefit The City has approximately 125 centerline miles of roadway under their jurisdictional responsibility. To establish the priority list of street improvements, staff and the city engineer visit each street to verify and inspect the current condition of the pavement in order to rank streets for improvement. Street ranking is based on a 10 point system, with the ranking of #1 being equivalent to a gravel road and a ranking of #10 being equivalent to a newly paved road. Based on the most recent rankings, verified in 2018, funding was requested in FY19/20 in the amount of $6,518,314 for streets with a ranking of #3; FY20/21 in the amount of $11,902,504 for streets with a ranking of #4; FY21/22 in the amount of $13,869,824 for streets with a ranking of #5; FY22/23 in the amount of $9,142,804 for streets with a ranking of #6; and 343 FY23/24 in the amount of $1,990,954 for streets with a ranking of #7. The City received a grant from CMAP (Chicago Metropolitan Agency for Planning) to have an outside engineering firm to perform a study on our road conditions and rank them. The results will be compared to our current rankings and will be used to plan our future CIP for roads. Unfortunately, the amount of improvements far outweighs the dollars available in Motor Fuel Tax (MFT) revenues and/or General Fund revenues to be able to undertake these projects. In fact, in recent years, MFT dollars have been dedicated to a combination of purchasing road salt and as the local match for multi-jurisdictional/multi-funding source projects. The needs of the Streets Program are only increasing, not diminishing and, as such, beginning in FY14/15 the City Administration made a concerted effort to dedicate a portion of General Fund Revenues to fund the Street Program. While it is not possible that all of the annual needs of the Street Program can be met, it is step towards addressing the highest priority/lowest ranked streets. The only project being recommended as part of the Local Street Program in FY19/20 is the resurfacing of Chickaloon Drive in the Glacier Ridge Subdivision. Project: Pearl Street ITEP Improvements (Row 68 of spreadsheet) Funding Request: FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 Total $805,500 -0- -0- -0- -0- $805,500 Submitted By: Jon Schmitt, Director of Public Works Project Purpose, Description and Benefit This request is for local match funding for Construction and Phase III Engineering Services for the Pearl Street Illinois Transportation Enhancement Program Improvements (ITEP). On May 11, 2018 the Illinois Department of Transportation notified the City of McHenry that the City was the recipient of $616,300 in ITEP funding for lighting and streetscape improvements along Pearl Street between IL Route 31. The City submitted applications for funding for these improvements during the design phase of the Pearl Street and Lincoln Road Surface Transportation Program (STP) improvements. However, due to the timeline for the call for proposals and the necessity to construct the multi-use path in 2018 these 344 improvements are being completed as a separate project. The resurfacing and multi-use path project along Pearl Street was completed in fall of 2018 and has been constructed such that the streetscape improvements will be able to be completed the following year with minimal conflict to recently completed improvements. The current engineer’s estimate for construction is $730,375 and Phase III Engineering Services are estimated at approximately $75,000. ITEP improvements are funded through Federal participation at an 80% federal share. The remainder of construction and Phase III Engineering costs ($189,200) will be paid from the Motor Fuel Tax Fund. On July 23, 2018 City Council approved a Preliminary Engineering Services Agreement with HR Green, Inc. in an amount not to exceed $44,430 for Phase I & II Engineering of the Pearl Street ITEP improvements. Phase I Engineering was approved in October of 2018. The contract documents are being prepared to meet a June 2019 IDOT letting date. Project: Curran Road S-Curve Safety Improvements (Row 69 of spreadsheet) Funding Request: FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 Total $460,000 -0- -0- -0- -0- $460,000 Submitted By: Jon Schmitt, Director of Public Works Project Purpose, Description and Benefit This request is for Construction funding and Phase III Engineering Services for the Curran Road S-Curves Highway Safety Improvement Program (HSIP) project. The Illinois Department of Transportation though the Highway Safety Improvement Program (HSIP) awarded $450,000 for this project. The improvements on Curran Road from approximately 400 feet south of Route 120 to Ojibwa Lane includes super-elevated pavement, paved shoulder with rumble strips, ditch grading for recoverable slopes, pavement markings and additional signage. HSIP funds pay for 90% of Phase I & II engineering, construction and Phase III engineering. The Motor Fuel Tax Fund will be utilized for the City’s cost of the project ($68,500). On November 2, 2015 City Council approved a Preliminary Engineering Services Agreement for Federal Participation with HR Green, Inc. in an amount not to exceed $29,990.27 for Phase I Engineering of Curran Road (formerly Draper Road) S-Curve Safety Improvements. Phase I approval was received in December, 2017. On May 7, 2018 City Council approved a Preliminary 345 Engineering Services Agreement for Federal Participation with HR Green, Inc. in an amount not to exceed $34,889 for Phase II Design Engineering. Pre-Final Plans were received by the Public Works Department in October of 2018. Staff are targeting a June 2019 State Letting date and construction is currently anticipated to be completed in Fall of 2019. Project: Bull Valley Road Multi Use Path Extension, Engineering & Construction (Row 70 of spreadsheet) Funding Request: FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 Total $150,000 $75,000 $1,320,000 -0- -0- $1,545,000 Submitted By: Jon Schmitt, Director of Public Works Project Purpose, Description and Benefit This request is for funding for Phase II Engineering Services, Construction funding, and Phase III Engineering Services for the Bull Valley Road Bike Path Extension Project. As part of the Bull Valley Road/Charles J. Miller Road project from Illinois Route 31 to River Road, the McHenry County Division of Transportation (MCDOT) installed a 10-foot wide shared-use path along Charles J. Miller Road from the intersection of Illinois Route 31 to the entrance of Moraine Hills State Park. While the path’s construction along the County Highway provides mobility for pedestrians and cyclists, it does not provide a connection to the McHenry County Conservation District Prairie Trail located 4,300 feet west of Illinois Route 31. This project has been identified by regional planning agencies as a high priority project which may be eligible for federal grant funding such as Transportation Alternatives Program (TAP) or Illinois Transportation Enhancements Program (ITEP). The City and the McHenry County Division of Transportation have entered an intergovernmental agreement to share engineering and construction costs, pursue grant funding, coordinate land acquisition, and negotiate with the Union Pacific Railroad to install a pedestrian crossing. On March 19, 2018 the City Council Awarded a professional services contract for Phase I Engineering Services in the amount of $104,087.00 to Hampton Lenzini and Renwick, Inc. for the Bull Valley Road Multi-Use Path. Phase I Engineering is currently ongoing and the Final Phase I Engineering Report will be submitted to Illinois Department of Transportation (IDOT) in Spring of 2019. The results of the Phase I Engineering Study will allow the City to identify an Engineer’s Opinion of Probable Cost to the project and pursue federal grant funding for this project. As a part of the phase I scope of services, assistance with securing federal aid for engineering and construction will be provided by the selected firm. Upon completion of Phase I 346 Engineering, the City will be able to enter into an Intergovernmental Agreement for Phase II Engineering, Construction, and Phase III Engineering Services. McHenry County Division of Transportation is currently scheduled to begin Phase II Engineering in 2019 with construction to be completed in 2021. When completed this project will enhance mobility for pedestrian cyclists between two major regional trail systems and allow City residents better access to such trail systems. FY19/20 Complete Phase II Engineering - $30,000 (City Portion – Motor Fuel Tax Funds) FY20/21 ROW Acquisition - $15,000 (City Portion) FY21/22 Complete Construction & Phase III Engineering Services - $264,000 (City Portion) Project: Barreville Road Culvert Wingwall Repair and Structural Rehabilitation (Row 71 of spreadsheet) Funding Request: FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 Total $80,000 -0- $550,000 -0- -0- $630,000 Submitted By: Jon Schmitt, Director of Public Works Project Purpose, Description and Benefit This request is for funding for Preliminary Engineering Services, Construction funding, and Phase III Engineering Services for the Barreville Road Box Culvert Repair and Structural Rehabilitation Project. In Fall of 2018 Public Works staff discovered a failed and fallen concrete wingwall on the Barreville Road Box Culvert south of Veterans Parkway. The existing box culvert is over 50 years old and the barrel section appears to be in sound condition. The structure, which is too short in span to be considered a bridge has wingwalls which are concrete earth retention walls that hold earthen foreslopes back from the edge of the stream being crossed. The structural design of the existing structure did not include anchor sheeting behind the wingwalls which leaves the walls prone to tipping over the service life of the structure. 347 Staff consulted with HR Green, Inc. to perform an inspection of the box culvert and recommend a short term repair to the failed wingwall. Upon inspection it was determined that all four corner wingwalls are in varying states of failure and it was recommended that the City begin planning for a major rehabilitation of the structure which includes the replacement of all four wingwalls and the addition of an anchoring system, guardrail upgrades, structural repairs to the barrel section, as well as necessary roadway work. In the interim, staff have solicited quotes from qualified structural contractors for interim shoring of the failed corner of the structure. Additionally, this structure will be regularly monitored by staff for any further deterioration of the remaining wingwalls. It is recommended that the consultant selection process and Preliminary Engineering begin immediately. The stream crossing is located in both wetlands and FEMA floodplain which will require an extended design schedule due to permitting. Due to this anticipated duration of design and permitting staff are estimating construction will begin no earlier than 2021. FY19/20 & FY20/21 Complete Design Engineering - $80,000 (General Fund Balance) FY 20/21 Complete Construction & Provide Phase III Engineering Services - $550,000 Project: Pavement Maintenance-Cracksealing and Reclamite (Row 72 of spreadsheet) Funding Request: FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 Total $75,000 $75,000 $75,000 $75,000 $75,000 $375,000 Submitted By: Jon Schmitt, Director of Public Works Project Purpose, Description and Benefit Reclamite is an asphalt rejuvenator that is applied on the newly paved roads within the first year to extend the life of the road. This will be applied on the roads that were resurfaced in 2018 at a cost of $35,000. The City received a grant from CMAP (Chicago Metropolitan Agency for Planning) for an outside engineering firm to evaluate our road conditions. Part of the study will include what type of pavement maintenance, including crack sealing, should be completed on the City’s 348 roads. Staff recommends budgeting from the Capital Improvement Fund (assigned for capital) in the amount of $40,000 for crack sealing. Project: Municipal Parking Lot Maintenance (Row 73 of spreadsheet) Funding Request: FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 Total $377,495 $173,550 $377,925 $545,800 $676,692 $2,151,462 Submitted By: Jon Schmitt, Director of Public Works Project Purpose, Description and Benefit The City is responsible for 21 parking lots. To establish the priority list of parking lot improvements, staff and the city engineer visit each parking lot to verify and inspect the current condition of the pavement in order to rank the lots for improvement. Like street rankings, parking lot rankings are based on a 10 point system, with the ranking of #1 being equivalent to a gravel parking lot and a ranking of #10 being equivalent to a newly paved lot. Based on the most recent rankings, verified in 2017, funding is requested as follows: • FY19/20 in the amount of $377,495 for parking lots with a ranking of #2 or #3 at West Beach Park ($30,975), the Parks Department Maintenance Garage ($97,200), East Beach Park ($18,075), Knox Park ($231,245); • FY20/21 in the amount of $173,550 for parking lots with a ranking of #4 and #5; • FY21/22 in the amount of $377,925 for parking lots with a ranking of #6; • FY22/23 in the amount of $545,800 for parking lots with a ranking of #7; and, • FY23/24 in the amount of $676,692 for parking lots with a ranking of #1. Parking lots ranked #1 are existing gravel lots that are currently maintainable. No funding is being proposed for this project. 349 Project: Sidewalk Program (Row 74 of spreadsheet) Funding Request: FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 Total $75,000 $75,000 $75,000 $75,000 $75,000 $375,000 Submitted By: Jon Schmitt, Director of Public Works Project Purpose, Description and Benefit Sidewalks are removed and replaced by Public Works Staff on an as-needed basis. Sidewalk repairs are also included in the annual road resurfacing program. Sidewalks with major cracks and significant spalling are replaced. In addition, sidewalk crossings that require ramp retrofits to meet the requirements of the Americans with Disabilities Act (ADA) are constructed. Staff recognizes the need for a sidewalk program due to the large amount of sidewalks throughout town that are deteriorated, do not meet ADA requirements, and gaps that exist between the sidewalk networks. Sidewalks improve pedestrian safety, by separating vehicle and pedestrian traffic. No funding is being proposed for this project. Project: Tree Replacement Program (Row 75 of spreadsheet) Funding Request: FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 Total $25,000 $25,000 $25,000 $25,000 $25,000 $125,000 Submitted By: Jon Schmitt, Director of Public Works Project Purpose, Description and Benefit Due to the large number of trees lost within the City due to the Emerald Ash Borer the City has been planting replacement trees through various funding sources. This request would establish an annual program for the planting of trees within City Parkways and would be managed within house public works staff. The program will allow for annual planting of trees to enhance the character of the City streets and replace trees lost due to the Emerald Ash Borer. 350 No funding is being proposed for this project. Project: Dartmoor Road Bridge Wearing Surface (Row 76 of spreadsheet) Funding Request: FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 Total $10,000 $70,000 -0- -0- -0- $80,000 Submitted By: Jon Schmitt, Director of Public Works Project Purpose, Description and Benefit The Dartmoor Road Bridge, which was constructed in 1998, is in relatively good condition. It will be sometime before any major rehabilitation or replacement would be necessary for this structure. This structure is a precast box beam design which includes a waterproof membrane and asphalt wearing surface. At this particular point in the service life of the structure the membrane and wearing surface are in need of replacement as is indicated in the most recent inspection report. The most critical element of bridges of this design to preserve are the precast beams. The best way to preserve them is to maintain the wearing surface in order to prevent leakage of water and deicing chemicals through the keyway joints between the precast beams. The beams have begun to show keyway leakage, at this point in the structure’s life is the appropriate time to replace the wearing surface. This will prevent deterioration of the precast beams and extend the life of the overall structure. No funding is being proposed for this project. Project: Downtown Parking Improvements (Row 77 of spreadsheet) Funding Request: FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 Total -0- $625,000 -0- -0- -0- $625,000 Submitted By: Jon Schmitt, Director of Public Works Project Purpose, Description and Benefit The following improvements are currently in the final stages of the design phase with and will 351 be ready for construction upon designation of funding in a future fiscal year. On December 4, 2017 City Council approved a professional engineering services contract with Baxter & Woodman, Inc. in the amount of $64,400 to complete design services for the following projects: Riverside Drive Parking Lot Expansion - $185,000 This project includes all site work, paving, drainage, lighting/electrical associated with the site development of a City owned parcel adjacent to the existing parking lot at the south end of Riverside Drive and expanding the parking lot. Court Street Parking Lot Construction - $145,000 This project includes all demolition, site work, paving, drainage, lighting/electrical associated with demolishing the former Water Division offices located on Court Street and utilizing this City owned parcel to create new City owned parking spaces. Veterans Park Lighting Improvements - $205,000 This project includes upgrades to the existing lighting inside of Veterans Park and the addition of new lighting surrounding the perimeter of the park in order to provide better lighting for public parking spaces which surround the park. Court Street Parking Lot Lighting Improvements - $35,000 This project includes modifying the existing lighting configuration in both the existing upper and lower Court Street parking lots. The project will include the addition of new poles, foundations, necessary wiring and conduit, as well as the upgrade of poles and fixtures on existing foundations which match the overall lighting concept. Riverside Drive Alley Lighting Improvements - $55,000 This project includes upgrading lighting for the public parking alley located to the west of Riverside Drive between Elm Street and Pearl Street. Improvements will include the installation of new poles, foundations, as well as necessary wiring and conduit. No funding is being proposed for this project. 352 Project: Illinois Route 31/Veterans Parkway Traffic Signal (Row 78 of spreadsheet) Funding Request: FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 Total -0- -0- -0- -0- $300,000 $300,000 Submitted By: Jon Schmitt, Director of Public Works Project Purpose, Description and Benefit The annexation agreement for the Morgan Hills/Prairie Pointe Subdivisions states the developer shall be responsible for and pay the cost of the construction and installation of a traffic control signal at the intersection of Illinois Route 31 and Veterans Parkway. Traffic warrant studies have been performed by the Illinois Department of Transportation and at this time the current traffic conditions do not meet warrant requirements for the installation of a traffic control signal as outlined in the Manual on Uniform Traffic Control Devices. The developer currently has a letter of credit on file with the City to cover the cost of the traffic control signal once traffic warrants are met. No funding is being proposed for this project. 353 Stormwater/Drainage Projects Projects included in the Stormwater/Drainage category primarily include improvements related to drainage in the Lakeland Park area of the community, as well as costs related to the dredging of Boone Creek in the downtown area. In 2017, the City applied for an IEPA 319 Grant in the amount of $800,000 for the development of the Lakeland Park Detention and Sediment Control Facility but, unfortunately, this was not awarded due to the fact that the City did not yet own the property on which the facility would be built. Reapplication has been made and the City’s matching funds have been included in the FY19/20 request. As in FY18/19, significant funding is being proposed from the General Fund Balance for drainage improvements for the Lakeland Park area. In addition, the extension of the Meyer Meterial Mining Operations will generate funding that will be used as a portion of the City’s match for this project in FY20/21. In summary, the FY19/20 – FY23/24 Stormwater/Drainage category includes a total of six (6) project categories proposed for the 5-year planning period at a total estimated cost of $3,890,000. Four (4) projects are proposed are proposed for funding in FY19/20 at a total estimated cost of $810,000. Funding for these improvements would be as follows: $600,000 General Fund Balance, $15,000 Motor Fuel Tax Fund, $135,000 IEPA 319 Grant (if awarded), and $60,000 in STP Bridge Funds. The projects recommended for implementation in FY19/20 include the Lakeland Park Detention and Sediment Control Facility ($225,000), Ramble Road Storm Sewer ($350,000), Oakwood Drive Culvert Rehabilitation Project ($75,000), and the Boone Creek Dredging Project ($160,000 – trucking for east portion dredging only). It is possible that additional funding is requested in the FY19/20 Budget should Council choose to move forward with dredging the western portion (i.e., west of Green Street) of Boone Creek and/or if the City does not receive IEPA 319 Grant funding. Project: Lakeland Park Detention and Sediment Control Facility (Row 96 of spreadsheet) Funding Request: FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 Total $225,000 $1,110,000 -0- -0- -0- $1,335,000 Submitted By: Jon Schmitt, Director of Public Works Project Purpose, Description and Benefit The Lakeland Park Drainage Ditch is located north of Elm Street (Illinois Route 120) between Ringwood Road and Maple Avenue. The ditch generally flows in an easterly direction to a point where it joins Boone Creek just upstream from the Fox River. Over the past several years the City has been addressing drainage problems within the Lakeland Park Subdivision. In 2016 HR Green Completed a Drainage Study for the entirety of the watershed which contributes flow 354 to the drainage ditch. The findings of the study indicate that in order to reduce sediment pollution as well as catastrophic and nuisance flooding, an upstream wetland detention facility will be necessary to reduce the amount of storm flow and sediment entering the drainage ditch. The drainage areas within the watershed at the western limits contribute a significant amount of runoff, stream flow, and sediment to the drainage ditch. An upstream wetland detention facility would allow for a large portion of the runoff from these drainage areas which contribute much of the flow and sediment to the drainage ditch to be reduced. The wetland basin would detain flow and allow for sediment to be collected in locations which the City can maintain at regular intervals. The drainage ditch and associated network of culverts have limited capacity to pass flows during large storm events and the reduced flows would enhance the ability of the existing system to perform as it currently exists. The property at the southeast corner of the IL Route 120 and Curran Road/Ringwood Road intersection was acquired by the City in the early part of 2018 for the future construction of an upstream detention basin. This particular potential location for a wetland detention facility has been identified in the Boone-Dutch Creek Watershed plan recently completed by CMAP. Because it has been identified as a potential improvement in this plan, this particular project is a strong candidate for Illinois Environmental Protection Agency Section 319 Grant Funding for non-point source sediment reduction. The project was submitted to the IEPA in 2017 but was not selected, however, the project was resubmitted for funding in August of 2018. The previous application was completed before the necessary properties were acquired and the project was resubmitted with the acquisition being completed as this factor will improved the project’s chances of selection. The selection process will be ongoing through the early part of 2019. Should this project be selected, up to 60% of engineering and construction costs would be eligible for grant funding with the remaining 40% being the responsibility of the local agency through the utilization of General Fund revenues. Should the project not be selected with property now acquired it is recommended that the City consider funding the project through other means and reevaluating design alternatives. FY 19/20 Complete Phase I/II Engineering - $225,000 FY 20/21 Complete Construction & Provide Phase III Engineering Services - $1,110,000 This project is proposed for funding in FY19/20 through an IEPA 319 Grant ($135,000) and General Fund Balance ($90,000). 355 Project: Ramble Road Storm Sewer (Row 97 of spreadsheet) Funding Request: FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 Total $350,000 -0- -0- -0- -0- $350,000 Submitted By: Jon Schmitt, Director of Public Works Project Purpose, Description and Benefit This project includes engineering and construction of storm sewer improvements in the area of Ramble Road and Home Avenue. Specific drainage improvements which will be determined in the project design phase are to include storm sewer piping, sheet flow modifications, and detention to reduce the risk of localized flooding. Request for Proposals (RPF) for design engineering have been submitted and will be evaluated by staff with a recommendation to City Council forthcoming. This area is currently served by open ditch drainage and driveway culverts with limited underground storm sewer pipe. Drainage improvements projects such as this repair and/or improve existing drainage structures in order to provide better protection from storm sewer runoff. In FY 18/19 two parcels at the southwest corner of the intersection of Home & Ramble were purchased for the eventual construction of the detention basin recommended for the drainage redesign of the existing system. Alternative analysis was performed for multiple design options and staff have identified the construction of the detention basin, upsizing of the existing storm sewer, and open channel conveyance through Althoff Park as the recommended design option. This project is proposed for FY19/20 funding at $350,000 through the General Fund Balance. 356 Project: Oakwood Drive Culvert Rehabilitation-Replacement (Row 98 of spreadsheet) Funding Request: FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 Total $75,000 $65,000 $605,000 -0- -0- $745,000 Submitted By: Jon Schmitt, Director of Public Works Project Purpose, Description and Benefit This request is for funding for Preliminary Engineering Services, Construction funding, and Phase III Engineering Services for the Oakwood Drive Culvert Rehabilitation-Replacement Project. The Oakwood Drive Culvert is in need of replacement or major repair. The existing layout is a series of five corrugated steel culverts with a total span of approximately 50’. As the total span of the creek crossing is in excess of 20 feet the culvert is classified as a bridge in the State inventory of structures and is subject to bi-annual inspection. In the most recent round of bi- annual inspections performed by HR Green, Inc. it was recommended that the culvert be budgeted to be replaced as soon as is possible. In September of 2018 staff submitted a request for Surface Transportation Program (STP) Bridge funding which is funded at an 80% federal share. The structure has a current sufficiency rating of 59.0/100 which makes the structure eligible for federal aid for rehabilitation. The application is currently being processed and should the City secure Federal Aid for this project engineering services will begin in 2019 with construction targeted for 2021. FY19/20 Complete Phase I Engineering - $15,000 (City Portion) FY20/21 Complete Phase II Engineering Services - $13,000 (City Portion) FY21/22 Complete Construction & Phase III Engineering Services - $149,000 (City Portion) This project is proposed for FY19/20 funding with STP Bridge Funds ($60,000) and Motor Fuel Tax Funds ($15,000). 357 Project: Boone Creek Dredging Project (Row 99 of spreadsheet) Funding Request: FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 Total $160,000 -0- -0- -0- -0- $160,000 Submitted By: Derik Morefield, City Administrator Project Purpose, Description and Benefit This request is for funding for costs related to the trucking of dredged material from Boone Creek from the Green Street Bridge east to the Fox River. The City of McHenry has been able to partner with the Fox Waterway Agency on this project. The FWA will provide dredging services but the City is responsible for hauling material from the creek to a drying location at the South Wastewater Treatment Facility site. Trucking will be contracted and, based on the estimated amount of material to be dredged, is estimated at $160,000. Staff is also in the process of obtaining costs for dredging that portion of the creek west of the Green Street Bridge as a separate project. These costs are unknown at this time but may be included for consideration as part of the FY19/20 Budget. This project is proposed for FY19/20 funding at $160,000 through the General Fund Balance. Project: Lakeland Park Culvert Replacements (Row 100 of spreadsheet) Funding Request: FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 Total -0- -0- -0- $390,000 $610,000 $1,000,000 Submitted By: Jon Schmitt, Director of Public Works Project Purpose, Description and Benefit The Lakeland Park Drainage Ditch is located north of Elm Street (Illinois Route 120) between Ringwood Road and Maple Avenue. The ditch generally flows in an easterly direction to a point where it joins Boone Creek just upstream from the Fox River. Over the past several years the City has been addressing drainage problems within the Lakeland Park Subdivision. In 2016 HR 358 Green Completed a Drainage Study for the entirety of the watershed which contributes flow to the drainage ditch. The findings of the study indicate that in order to prevent both catastrophic and nuisance flooding, an upstream detention facility will be necessary to reduce the amount of storm flow entering the drainage ditch and ultimately into Lakeland Park. Additionally, there are several culverts and structures along the drainage ditch which need to be increased in size in order to promote conveyance of water. The proposed culvert improvements will provide protection specifically for the blocks adjacent to the drainage ditch in catastrophic flooding events. It is recommended that the improvements begin at the furthest downstream locations and in latter program years the improvements will continue to progress upstream. The order of The following culvert crossings of the Lakeland Park Drainage Ditch are identified for replacement: FY22/23 (subject to change due to staging/access) Maple Avenue - $390,000 FY23/24 (subject to change due to staging/access) Orleans Street - $610,000 FY24/25 (subject to change due to staging/access) Drainage Ditch Railroad Crossing - $270,000 FY25/26 (subject to change due to staging/access) Oak Drive - $540,000 FY26/27 (subject to change due to staging/access) Meadow Lane - $375,000 Willow Lane - $315,000 FY27/28 (subject to change due to staging/access) Beach Street - $495,000 Lakewood Avenue - $285,000 FY28/29 (subject to change due to staging/access) Park Lane Avenue - $295,000 Sunset Avenue - $210,000 Home Avenue - $215,000 No funding is being proposed for this project. 359 Project: Lakeland Park Drainage Ditch Bank Stabilizations (Row 101 of spreadsheet) Funding Request: FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 Total -0- -0- $100,000 $100,000 $100,000 $300,000 Submitted By: Jon Schmitt, Director of Public Works Project Purpose, Description and Benefit The Lakeland Park Drainage Ditch is located north of Elm Street (Illinois Route 120) between Ringwood Road and Maple Avenue. The ditch generally flows in an easterly direction to a point where it joins Boone Creek just upstream from the Fox River. Over the past several years the City has been addressing drainage problems within the Lakeland Park Subdivision. In 2016 HR Green Completed a Drainage Study for the entirety of the watershed which contributes flow to the drainage ditch. The findings of the study indicate that in order to prevent both catastrophic and nuisance flooding, an upstream detention facility will be necessary to reduce the amount of storm flow entering the drainage ditch and ultimately into Lakeland Park. Another maintenance concern for the ditch is the amount of bank erosion at locations along the channel. This erosion leads to sediment deposition in the channel and the potential destruction of property for homeowners along the channel. The recommended bank stabilizations may include riprap armored stream banks, dredging of sediment, and construction of spurs to redirect flow. These improvements will reduce erosion and sediment deposition at further downstream locations as well as protect homes adjacent to the drainage ditch from property damage. The City wishes to pursue federal EPA grant funding if available in order to offset direct costs to the city. No funding is being proposed for this project. 360 INFORMATION TECHNOLOGY FUND CIP PROJECTS Projects identified in the Information Technology Fund Capital Improvement Program are related to the replacement of equipment and software for all municipal departments except those funded through the Water/Sewer Fund. The Information Technology Fund is an Internal Service Fund whereby revenues are derived from transfers from the City’s operating departments which are assigned during the annual budget development process as a percentage of their budgets. The FY19/20 – FY23/24 Information Technology Fund Capital Improvement Program includes a total of two (2) projects proposed for the 5-year planning period at a total estimated cost of $47,777. Both of these projects are proposed for funding in FY19/20 at a total estimated cost of $47,777. The projects proposed for funding in FY19/20 are both for enhancing customer service through the introduction of online requests for service through the City’s website. A summary spreadsheet that provides a 5-year snapshot of proposed projects, along with estimated costs, and project narratives follows. 361 1 2 3 4 56789101112 A B C D E F G Information Technology Fund Balance Before 198,323$ Information Technology Fund Balance After 150,546$ Project FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 5-Year Total Online Citizen Request and Work Orders Program 33,357 - - - - 33,357 Online Permit Applications for BS&A Program 14,420 - - - - 14,420 TOTAL 47,777$ -$ -$ -$ -$ 47,777$ Funding Sources Information Technology Fund 47,777 Total 47,777 Information Technology Fund CIP Projects 362 Project: Online Citizen Request and Work Orders Program (Row 6 of spreadsheet) Funding Request: FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 Total $33,357 -0- -0- -0- -0- $33,357 Submitted By: Ed Larson, Information Technology Manager Project Purpose, Description and Benefit The purpose of this project request is for the implementation of an online customer service porthole for the submittal of service requests and generation of related work orders. There are two parts within this project, Citizen Request and Work Orders. Citizen Request allows our citizens the ability to submit a request, whether it be for a pot hole, street light outages, tall grass, etc. online. Once the request has been submitted, it can be integrated into the second module, Work Orders that can then assign the request, track the progress, and allow us to run reports. The Annual Service Fee for Citizen Request is $2,030 and for Work Orders is $2,470. This would be included in the Information Technology annual budget. Project: Online Permit Applications for BS&A Program (Row 7 of spreadsheet) Funding Request: FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 Total $14,420 -0- -0- -0- -0- $14,420 Submitted By: Ed Larson, Information Technology Manager Project Purpose, Description and Benefit The Online Permit Applications program of the BS&A software is designed to increase efficiency and resources when processing permits with the Community Development Department. The program can be used by homeowners and contractors 24/7 and would reduce unnecessary visits to the Municipal Center. In addition, and importantly, it will also allow permittees to access their account 24/7 to be able to check the status of their permit and to make any updates. 363 The annual service fee of $2,300 would be included in the Community Development annual budget. 364 DEVELOPER DONATIONS FUND CIP PROJECTS Projects identified in the Developer Donations Fund Capital Improvement Program are related to the development of new public parks or park amenities. Where possible, parks maintenance projects are included in the Parks category of the General Fund CIP. The FY19/20 – FY23/24 Developer Donations Fund Capital Improvement Program includes a total of seven (7) projects proposed for the 5-year planning period at a total estimated cost of $1,414,000. Five (5) projects are proposed for funding in FY19/20 at a total estimated cost of $279,000. The current Developer Donations Fund Balance is $1,072,335, which would be reduced to $793,335 with the implementation of the proposed projects. Of note, the City Gateway Signage Replacement project is proposed to be paid from contributions from the east Route 120 Ricky Rockets project when this project moves forward. A summary spreadsheet that provides a 5-year snapshot of proposed projects, along with estimated costs, and project narratives follows. 365 1 2 3 4 56789101112131415161718 A B C D E F G Developer Donations Fund Balance Before 1,072,335$ Developer Donations Fund Balance After 793,335$ Project FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 5-Year Total ADA Park Improvements 20,000 20,000 20,000 20,000 20,000 100,000 Knox Park/Merkel Aquatic Center Improvements 40,000 225,000 - - - 265,000 Petersen Park Improvements 69,000 135,000 50,000 50,000 80,000 384,000 Petersen Farm Improvements 125,000 100,000 100,000 50,000 25,000 400,000 City Gateway Signage Replacement 25,000 - - - - - Hickory Creek Farm Improvements - - - - 200,000 200,000 Legend Lakes Park Improvements - - - 40,000 40,000 TOTAL 279,000$ 480,000$ 170,000$ 120,000$ 365,000$ 1,414,000$ Proposed Funding Sources Developer Donations Fund 279,000 Total Amount Funded 279,000 Total Amount Not Funded - Developer Donations Fund CIP Projects 366 Project: ADA Park Improvements (Row 6 of spreadsheet) Funding Request: FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 Total $20,000 $20,000 $20,000 $20,000 $20,000 $100,000 Submitted By: Bill Hobson, Parks & Recreation Director Project Purpose, Description and Benefit The purpose of this project request is for the continuing implementation of various projects throughout the City’s parks system in order to achieve compliance with the 2010 ADA standards for outdoor recreation facilities. Projects, along with estimated costs, are included in the Access Audit and Transition Plan report. Project: Knox Park/Merkel Aquatic Center Improvements (Row 7 of spreadsheet) Funding Request: FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 Total $40,000 $225,000 -0- -0- -0- $265,000 Submitted By: Bill Hobson, Parks & Recreation Director Project Purpose, Description and Benefit An analysis was completed of the Merkel Aquatic Center in 2014. In summary, the facility is largely in stable condition with an estimated remaining life of approximately 8-10 years. The immediate concern for the pool itself will be the replacement of the pool liner (see General Fund Parks Projects). Other considerations however, should be made regarding the potential additions for the facility such as a potential waterslide utilizing the hillside, deck amenities, or even a party deck/cabana area that would also increase revenues. In addition to the Merkel Aquatic Center, Knox Park is also in need of improvements. These include the following recommendations: Project Fiscal Year Amount Knox Park East Parking Lot FY19/20 $30,000 367 New Pool Amenities and Features FY19/20 $10,000 Spray Pad Area Installation FY20/21 $200,000 Pavilion Adjacent to Pool FY20/21 $25,000 Project: Petersen Park Improvements (Row 8 of spreadsheet) Funding Request: FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 Total $69,000 $135,000 $50,000 $50,000 $80,000 $384,000 Submitted By: Bill Hobson, Parks & Recreation Director Project Purpose, Description and Benefit There are a number of improvements at Petersen Park that are proposed over the next five years to maintain and improve this amenity as a premiere athletic complex, as well as the grounds for our larger festivals such Fiesta Days and Blues, Brews and BBQ’s. Additionally, the beach area is an attraction for many of our residents and a highlight of our parks system. Maintenance-related projects are identified here in the General Fund CIP, while new amenities are included in the Developer Donation CIP. Below is a list of the potential projects for implementation from the General Fund CIP. Project Fiscal Year Amount Shade Structures for Ballfields FY19/20 $30,000 Beach Shade Structure FY19/20 $25,000 Inflatable Course Add-on FY19/20 $14,000 Concrete Installation between Fields 3&4 FY20/21 $35,000 Walking Paths throughout Park FY20/21 $100,000 Petersen Park Parking Lot Lighting FY21/22 $50,000 Extend Water Line to Bathrooms FY22/23 $25,000 Stage Upgrades FY23/24 $80,000 368 Project: Petersen Farm Improvements (Row 9 of spreadsheet) Funding Request: FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 Total $125,000 $100,000 $100,000 $50,000 $25,000 $400,000 Submitted By: Bill Hobson, Parks & Recreation Director Project Purpose, Description and Benefit As a significant historical asset to both our community and the region, maintenance and restoration of the Petersen Farm must remain a constant focus of the city’s resources. The proposed amounts include work to weatherproof the barn and silos’s interior from the elements as well as painting/sealing. Substantial renovations to the horse barn and the farmhouse and the repair or removal of other structures on the site. Recently a Petersen Farm Foundation was established to help facilitate uses of the farm and to assist in fundraising for any improvements to the farm. Project Fiscal Year Amount Horse Barn Foundation and Roof Repair FY19/20 $125,000 Main House Restoration – Exterior FY20/21 $100,000 Main House Restoration – Interior FY21/22 $100,000 Walking Paths FY22/23 $50,000 Archery Range FY23/24 $25,000 369 Project: City Gateway Signage (Row 10 of spreadsheet) Funding Request: FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 Total $25,000 -0- -0- -0- -0- $25,000 Submitted By: Derik Morefield, City Administrator Project Purpose, Description and Benefit The City’s existing decorative entryway signs are more than 15 years old are showing significant signs of wear and, in fact in some cases, additional maintenance on these are not possible. The purpose of this project request is to replace these signs – currently located on east and west Route 120 and north and south Route 31 – with newer, larger and more decorative signs. Additionally, a new sign is proposed for the Municipal Center, possibly to mirror the digital sign at Whispering Oaks Park to include a digital message board During FY16/17 the City was able to obtain funding for the installation of the first of these signs for east Route 120 through a Developer Contribution as part of the new Ricky Rockets projects. This is the amount identified for FY19/20. In addition to this sign, the replacement of the remaining signs, as well as the development of a new community information sign at the Municipal Center, will be programmed in within the Tourism Fund CIP. Project: Hickory Creek Farm Improvements (Row 11 of spreadsheet) Funding Request: FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 Total -0- -0- -0- -0- $200,000 $200,000 Submitted By: Bill Hobson, Parks & Recreation Director Project Purpose, Description and Benefit The Hickory Creek Farm buildings will need attention in the upcoming years. The most pressing need will be to replace the wood shingle roof on this large structure. The facility received a $500,000 grant from the state of Illinois in 1995 for historic preservation purposes. The roof, siding, windows, electric and utilities were replaced or upgraded to the building. 370 Maintenance of the building is the responsibility of the City of McHenry. Future grant funding from the state of Illinois or other sources for this building are highly unlikely. Other areas of need in the near future are exterior painting of the building and fencing, fencing replacement, repairs to the awnings, replacement of the heating units and other minor work. Project: Legend Lakes Park Improvements (Row 12 of spreadsheet) Funding Request: FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 Total -0- -0- -0- -0- $40,000 $40,000 Submitted By: Bill Hobson, Parks & Recreation Director Project Purpose, Description and Benefit Galway Tot Lot is a park in Legend Lakes subdivision that is undeveloped at this point. There are other parks in close proximity and the home building in the subdivision has stopped. The $40,000 is for the grading, seeding and installation of park equipment in this 1.3 acre site. The developer committed to building 2 tot lots in the subdivision. Credit was given in the parks developer donation fund to complete these sites. Only the tot lot on Homestead was completed. 371 RECREATION CENTER FUND CIP PROJECTS Projects identified in the Recreation Center Fund Capital Improvement Program are related to improvements to, or the expansion of, the McHenry Recreation Center. The FY19/20 – FY23/24 Recreation Center Fund Capital Improvement Program includes two (2) projects related to expanding the services of the existing McHenry Recreation Center within the 5-year planning period at a total cost of $150,000 – Outdoor Play Facility and Functional Training Synthetic Turf Ara. The current Recreation Center Fund Balance is $350,054. This would be reduced to $200,054 with the implementation of the identified projects. A summary spreadsheet that provides a 5-year snapshot of proposed projects, along with estimated costs, and project narratives follows. 372 1 2 3 4 56789101112 A B C D E F G Recreation Center Fund Balance Before 350,054$ Recreation Center Fund Balance After 200,054$ Project FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 5-Year Total Outdoor Play Facility 100,000 - - - - 100,000 Functional Training Synthetic Turf Area 50,000 - - - - 50,000 TOTAL 150,000$ -$ -$ -$ -$ 150,000$ Funding Sources Recreation Center Fund 150,000 Total 150,000 Recreation Center Fund CIP Projects 373 Project: Outdoor Play Facility (Row 6 of spreadsheet) Funding Request: FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 Total $100,000 -0- -0- -0- -0- $100,000 Submitted By: Bill Hobson, Parks & Recreation Director Project Purpose, Description and Benefit The purpose of this project request is for the development of an outdoor play area, with a structure and shade option. This, along with other indoor options, will allow us to continue to meet the childcare needs of members so that they are able to utilize the facility. Project: Functional Training Synthetic Turf Area (Row 7 of spreadsheet) Funding Request: FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 Total $50,000 -0- -0- -0- -0- $50,000 Submitted By: Bill Hobson, Parks & Recreation Director Project Purpose, Description and Benefit In the warmer months there is an opportunity to expand our functional training options as paid classes with the addition of an outdoor synthetic turf programming area. Examples of this include sled pushes and pulls, agility ladders, cone workouts, and a variety of conditioning drills. The turf area ensures that classes can run outside regardless of weather without the potential for tearing up a grassed field. 374 TOURISM FUND CIP PROJECTS Projects identified in the Tourism Fund Capital Improvement Program are for capital improvement projects in excess of $10,000 related to attracting visitors to the community. Revenue in the fund is derived from a 5% occupancy tax on hotel/motel stays in McHenry. The FY19/20 – FY23/24 Tourism Fund Capital Improvement Program includes a single recommended project category, City Gateway Signage Replacement, at this time with a total estimated cost of $125,000 over the 5-year planning period. The Tourism Fund Balance is currently $498,714. This amount will be reduced by approximately $331,000 prior to the end of FY18/19 as funds were committed for use in purchasing four (4) parcels on Green Street from McHenry Savings Bank to be used for public parking. Additionally, approximately $70,000 per year for five (5) years, beginning in FY20/21, will be used from the Tourism Fund to pay the installment purchase contract for the lots. However, expenditure is reflected in the Tourism Fund Annual Budget and not as part of this CIP request. A summary spreadsheet that provides a 5-year snapshot of proposed projects, along with estimated costs, and project narratives follows. 375 1 2 3 4 567891011 A B C D E F G Tourism Fund Balance Before 478,714$ Tourism Fund Balance After 478,714$ Project FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 5-Year Total City Gateway Signage Replacement - 25,000 25,000 25,000 50,000 125,000 TOTAL -$ 25,000$ 25,000$ 25,000$ 50,000$ 125,000$ Funding Sources Tourism Fund - Total - Tourism Fund CIP Projects 376 Project: City Gateway Signage (Row 6 of spreadsheet) Funding Request: FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 Total -0- $25,000 $25,000 $25,000 $50,000 $125,000 Submitted By: Derik Morefield, City Administrator Project Purpose, Description and Benefit The City’s existing decorative entryway signs are more than 15 years old are showing significant signs of wear and, in fact in some cases, additional maintenance on these are not possible. The purpose of this project request is to replace these signs – currently located on east and west Route 120 and north and south Route 31 – with newer, larger and more decorative signs. Additionally, a new sign is proposed for the Municipal Center, possibly to mirror the digital sign at Whispering Oaks Park to include a digital message board During FY16/17 the City was able to obtain funding for the installation of the first of these signs for east Route 120 through a Developer Contribution as part of the new Ricky Rockets projects. An amount of $25,000 is identified for FY19/20 in the Developer Donations Fund CIP. In addition to this sign, the replacement of the remaining signs, as well as the development of a new community information sign at the Municipal Center is proposed for FY20/21 through FY23/24 of the Tourism Fund CIP. 377 WATER & SEWER FUND CIP PROJECTS The Water & Sewer Fund is an enterprise fund – that is, a business-type fund utilized to account for operations and activities that are financed and operated in a manner similar to a private business enterprise, and where the cost of providing goods and services to the general public on a continuing basis is expected to be recovered through user charges and fees. This includes both operating and capital improvement costs related to the maintenance and operation of the water and sewer utility systems. Operating costs of the water and sewer system are evaluated annually as part of the budget process and the City has committed to adjusting water and sewer rates according to operational needs. In regards to funding water and sewer capital projects, the City currently has adopted a flat $2 water and $4 sewer base fee per user, per billing period (every 2 months). Revenues derived from these base fees are used to fund water and sewer capital projects to the existing utility systems as identified in the capital improvement program. Projects identified in the Water & Sewer Fund CIP are related to water and sewer utility replacement or maintenance capital projects. The FY19/20 – FY23/24 Water & Sewer Fund Capital Improvement Program includes a total of twenty-eight (28) projects proposed for the 5-year planning period at a total estimated cost of $9,070,000. Of these totals there are thirteen (13) Water CIP projects totaling $1,340,000 (14.8% of total); eight (8) Sewer CIP projects totaling $4,620,000 (50.9% of total); and, seven (7) Utility CIP projects totaling $3,110,000 (34.3% of total). Importantly, $2,250,000 has been identified in the Sewer CIP for the demolition of the Central Wastewater Treatment Plant. It is hoped that these costs could be included in the private redevelopment of this site and not have to be funded by the City. For FY19/20, three (3) projects totaling $2,150,000 are being proposed. This includes one (1) Water project totaling $130,0000; one (1) Sewer project totaling $1,900,000; and, one (1) Utility project totaling $120,000. The projects being recommended for funding are highlighted in YELLOW on the following spreadsheet. Importantly, the Ringwood Road Water Main Extension project found in the Utility Maintenance Projects CIP is being funded at 100% through a Community Development Block Grant (CDBG) and the City is simply acting as the project manager and funding authority for the project. The current Water & Sewer Fund Balance is $2,229,777, which would be reduced to $199,777 with the implementation of the proposed projects. Of note, in addition to the projects identified within the 5-year planning period, there are an additional $11,760,000 in projects ($10,700,000 Water and $1,060,000 Sewer) identified within the 10-year planning period. Staff will continue to review water and sewer rates as part of the budget process to ensure that base fees will be sufficient to fund future projects. A summary spreadsheet that provides a 5-year snapshot of proposed projects, along with estimated costs, and project narratives follows. Where possible, projects have been identified out to a 10-year planning period. 378 1 2 3 4 56789101112131415161718192021 22 232425262728293031323334 35 3637383940414243444546 47 48 49 50 A B C D E F G Water/Sewer Fund Balance Before 2,229,777$ Water/Sewer Fund Balance After 199,777$ Project FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 5-Year Total Well #8 Raw Water Line Rehabilitation 130,000$ -$ -$ -$ -$ 130,000$ Water Meter Replacement Program 50,000$ 50,000$ 50,000$ 50,000$ 50,000$ 250,000$ Well Inspection/Maintenance & Repair 35,000$ 35,000$ 35,000$ 35,000$ 35,000$ 175,000$ Utility Master Plan Update 50,000$ -$ -$ -$ -$ 50,000$ SCADA Server Upgrade 40,000$ -$ -$ -$ -$ 40,000$ Water Treatment Plant #4 Maintenance 15,000$ -$ -$ -$ -$ 15,000$ Water Division Motor Pool - Replacement 30,000$ 25,000$ 35,000$ 35,000$ -$ 125,000$ Water Tower Maintenance & Repair (Tower #4)55,000$ 500,000$ -$ -$ -$ 555,000$ Water Tower Maintenance & Repair -$ -$ -$ -$ -$ -$ Water Treatment Plant #6 Dev (Adams Park)-$ -$ -$ -$ -$ -$ Water Treatment Plant #5 Dev (Legend Lakes)-$ -$ -$ -$ -$ -$ Water Treatment Plant #3 Rehabilitation -$ -$ -$ -$ -$ -$ Well #14 and Raw Water Line to Plant #6 -$ -$ -$ -$ -$ -$ TOTAL 405,000$ 610,000$ 120,000$ 120,000$ 85,000$ 1,340,000$ Project FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 5-Year Total Millstream Lift Station Rehab & Sewer Main Relocation 1,900,000$ -$ -$ -$ -$ 1,900,000$ Wastewater Division Motor Pool - Replacement 105,000$ 25,000$ 15,000$ 40,000$ -$ 185,000$ Automation of Lift Station Generators -$ 35,000$ -$ -$ -$ 35,000$ Lift Station Generators -$ -$ 250,000$ -$ -$ 250,000$ Central WWTP Demolition -$ -$ -$ -$ 2,250,000$ 2,250,000$ Update Aeration & Mixing on Oxidation Ditches at SWWTP -$ -$ -$ -$ -$ -$ Replace/Upgrade Back-Up Gravity Belt Thickener -$ -$ -$ -$ -$ -$ Rebuild Clarifier Gearbox and Manifold Seals (#3 & #4) SWWTP -$ -$ -$ -$ -$ -$ TOTAL 2,005,000$ 60,000$ 265,000$ 40,000$ 2,250,000$ 4,620,000$ Project FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 5-Year Total Ringwood Road Water Main Extension 120,000$ -$ -$ -$ -$ 120,000$ Water Main Replacement Program 30,000$ 300,000$ 60,000$ 600,000$ 45,000$ 1,035,000$ Sanitary Sewer Main/Manhole Rehab Program 160,000$ 160,000$ 160,000$ 160,000$ 160,000$ 800,000$ Sewer Camera Replacement 65,000$ -$ -$ -$ -$ 65,000$ Utility Division Motor Pool - Replacement 40,000$ 175,000$ 150,000$ 15,000$ 85,000$ 465,000$ Barreville Road Water Main Extension -$ -$ -$ -$ 325,000$ 325,000$ Eastside Water Main Extension (North Leg)-$ -$ -$ -$ 300,000$ 300,000$ TOTAL 415,000$ 635,000$ 370,000$ 775,000$ 915,000$ 3,110,000$ TOTAL WATER, SEWER & UTILITY FUND REQUEST 2,825,000$ 1,305,000$ 755,000$ 935,000$ 3,250,000$ 9,070,000$ Funding Sources Water/Sewer Fund 2,030,000$ CDBG Funding 120,000$ Total 2,150,000$ Utility Maintenance CIP Projects Water CIP Projects Sewer CIP Projects 379 WATER PROJECTS Project: Well #8 Raw Water Line Rehabilitation (Row 6 of spreadsheet) Funding Request: FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 Total $130,000 -0- -0- -0- -0- $130,000 Submitted By: Jon Schmitt, Public Works Director Mike Palmer, Water Superintendent Project Purpose, Description and Benefit Well #8 is one of two wells that supply raw water to Water Treatment Plant #3. WTP#3 is located at Crystal Lake Road and Malibu Court. The well, however is located approximately 2 blocks away in the Malibu “Tot Lot”. The well was drilled and raw water piping installed to WTP#3 in 1985. During the past decade the raw water line has experienced several leaks. A galvanized nipple and a galvanized plug have been replaced on the pitless adaptor at the well. The raw water line has experienced pinhole leaks on most of the cast iron fittings connecting the sections. In an effort to understand why this was continuing to happen, an electrician was brought in as well as a representative from the Ductile Iron Pipe Research Association, or DIPRA. No conclusive cause could be given for the unusual amount of leaks. A new technology to rehabilitate a watermain is pipe lining. The process involves a fibrous liner to be pulled through the pipe and with hot water expand to conform to the “host” pipe. The material must be a National Sanitation Foundation (NSF) approved and become structural in order to withstand system pressures. Estimates for pipe lining are $130,000 and $300,000 for traditional open cut method. This is very similar to sanitary sewer “slip lining” which has been used in City projects previously with great success. This project is not being recommended for funding. 380 Project: Water Meter Replacement Program (Row 7 of spreadsheet) Funding Request: FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 Total $50,000 $50,000 $50,000 $50,000 $50,000 $250,000 Submitted By: Jon Schmitt, Public Works Director Mike Palmer, Water Superintendent Project Purpose, Description and Benefit In December 2001, the City began installing Badger Meter "Trace" transponders which had a 10 year battery life expectancy, and allowed the meters to be read via radio technology (drive- by). In 2006, Badger Meter discontinued "Trace" and produced "Orion" which is still a "drive- by" technology, but with a greater battery life expectancy of 20 years. Trace units have reached and are surpassing their battery life expectancy. “Trace” unit have surpassed their battery life expectancy. As of October 30, 2018 there approximately 700 “Trace” transponders left to be changed out. The money requested is for meters that fail testing parameters, unknown damage, and new construction installation. Project: Well Inspection/Maintenance & Repair (Row 8 of spreadsheet) Funding Request: FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 Total $35,000 $35,000 $35,000 $35,000 $35,000 $175,000 Submitted By: Jon Schmitt, Public Works Director Mike Palmer, Water Superintendent Project Purpose, Description and Benefit In 2005 the City began a yearly testing and inspection program of each City well. The program was started to aid in indentifying wells that were in need of pumping equipment or well repair. The tests performed outline the original specific capacity (well production) to current specific capacities, which aid in determining what wells should be targeted for rehabilitation. Other electrical tests are performed in an effort to anticipate motor failures, and enable “scheduled” shut downs for these wells. Water Well Solutions used the high rate injection process (Hy-RIP) to rehabilitate the wells 2, 3, 5, 6, 8, 9. This process injects high rates of National Sanitation Foundation (NSF) approved chemicals into the well, removing any mineral and biological 381 buildup which enables additional water production capacity in the well. The “Hy-Rip” process has been successful. Well #7 has the oldest pumping equipment and has not been rehabbed using the “Hy-Rip” process. Barring unforeseen circumstances well #7 should be considered in the next couple of years for rehabilitation. Performance testing should continue to best determine which wells need attention. Project: Utility Master Plan Update (Row 9 of spreadsheet) Funding Request: FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 Total $50,000 -0- -0- -0- -0- $50,000 Submitted By: Jon Schmitt, Public Works Director Mike Palmer, Water Superintendent Project Purpose, Description and Benefit A comprehensive Master Utility Plan for Water, Wastewater, and Storm Water was completed in 1966, 1989 and updated in 1994. In 2007 a Water/Sewer Model Report was completed which considered existing distribution and collection system needs coupled with future development, within the Facility Planning Area (FPA) boundary. The need to bring all the information together in one updated Master Utility Plan would serve to prioritize future projects and objectives in current and future time tables. This project is not being recommended for funding. Project: SCADA Server Upgrade (Row 10 of spreadsheet) Funding Request: FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 Total $40,000 -0- -0- -0- -0- $40,000 Submitted By: Jon Schmitt, Public Works Director Mike Palmer, Water Superintendent 382 Project Purpose, Description and Benefit In 2003, the City upgraded the Water Systems Supervisory controls. The new technology, Supervisory Control And Data Acquisition (SCADA) system is responsible for monitoring the current state of operation; it allows viewing of security status, water tower levels, and pumping flow rates, alarm status and acknowledgement of alarm call-outs, turning water treatment plants on and off, etc. It is also responsible for storing the daily and statistical data. The server is 8 years old and in the ever changing technology industry a planned upgrade is needed. A major emphasis on cyber security should be considered as part of the upgrade. There is new technology that is available to ensure the security of the City’s water system and prevent a “breach” or “hack”. Discussions with the control engineers and possible upgrades estimates are 30K-40K. The different design possibilities and security levels included are reflected in the estimated costs. This project is not being recommended for funding. Project: Water Treatment Plant #4 Maintenance (Row 11 of spreadsheet) Funding Request: FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 Total $15,000 -0- -0- -0- -0- $15,000 Submitted By: Jon Schmitt, Public Works Director Mike Palmer, Water Superintendent Project Purpose, Description and Benefit WTP #4 Control Panel – After discussions with our control support engineers, it was determined that a partial upgrade to the Control Panel is the most cost efficient path to fully upgrading the panel. This will allow for the newest Programmable Logic Controller (PLC) to be included while utilizing the majority of other components within the panel. As needed those components can be retrofitted in the future. By upgrading the control panel sooner than later the City can avoid a major control failure before the current PLCs are antiquated and not available for replacement. 2018 estimates are $15,000. This project is not being recommended for funding. 383 Project: Water Division Motor Pool - Replacement (Row 12 of spreadsheet) Funding Request: FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 Total $30,000 $25,000 $35,000 $35,000 -0- $125,000 Submitted By: Jon Schmitt, Public Works Director Mike Palmer, Water Superintendent Project Purpose, Description and Benefit The purpose of this project request is for the replacement of Water Division motor pool vehicles. Vehicles proposed for replacement throughout the 5-year CIP planning period are as follows: FY19/20 – 2009 Dodge Durango (Water Superintendent) FY20/21 – 2010 Chrysler/Dodge Caravan (Operator Vehicle) FY21/22 – 2011 Ford Transit Connect (Meter Van #2) FY22/23 – 2014 Dodge 1500 Crew Cab (Locate Vehicle) This project is not being recommended for funding. Project: Water Tower Maintenance and Repair (Tower #4) (Row 13 of spreadsheet) Funding Request: FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 Total $55,000 $500,000 -0- -0- -0- $555,000 Submitted By: Jon Schmitt, Public Works Director Mike Palmer, Water Superintendent Project Purpose, Description and Benefit Tower #4 was built in 2006 and in 2013 the exterior need to be “touched up” due to areas of delaminating top coat. This will continue in future years leading until the repainting process. The inspection report from August 2014 concluded the following; the overall exterior condition was good, with continued delaminating of the top coat. The dry interior above the first floor deck was in fair condition, with signs of rusting and the wet interior was in good condition. Staff recommends in FY19/20 to request RFP’s (from our list of qualified engineers) and pursue 384 a PSA to include a scope of services, design criteria, bidding services, through construction and observation. Due to the premature coating failures that are currently visible staff is recommending repainting of Tower #4 in FY20/21. This project is not being recommended for funding. In addition to these projects, the following projects have been projected within the 10-year capital improvement planning period. Project: Water Tower Maintenance & Repair (Row 14 of spreadsheet) Funding Request: FY24/25 FY25/26 FY26/27 FY27/28 FY28/29 Total $375,000 -0- -0- -0- -0- $375,000 Project Purpose, Description and Benefit Water Towers #1, #2, #3, #4 were comprehensively inspected between April 2013 and August 2014. The inspections included Remote Operated Vehicles (ROV) in the “wet” interior; videos of the inspections are on file. A 20 year life expectancy for tower coatings is an industry standard. The towers will be listed below in order of expectation of maintenance and repairs. Tower #1 was built in 1960; in 2002 the tower was sandblasted and completely repainted. In August 2014 a comprehensive inspection revealed the coatings to be in good condition at the 12 year point. A subsequent inspection in FY19/20 should be completed to better assess the coating conditions and time line for repainting. The tank coatings would be 22 years old in FY24/25, reflected above. Should all the recommendations be followed, estimates for the project in 2018 dollars are $400,000. Tower #2 was constructed in 1985; a complete repainting was completed in 2008. The inspection completed in 2014 concluded that the tank was in good condition overall. Another inspection should be completed in FY19/20. Tower #3 was repainted in 2016 at a cost of $286,400. The wet interior was sandblasted and completely coated. The exterior was pressure washed and spot power tool cleaned and recoated. An inspection should be completed in FY21/22. 385 Project: Water Treatment Plant #6 Development (Adams Industrial Park) (Row 15 of spreadsheet) Funding Request: FY24/25 FY25/26 FY26/27 FY27/28 FY28/29 Total -0- -0- -0- $25,000 $2,700,000 $2,725,000 Submitted By: Jon Schmitt, Public Works Director Mike Palmer, Water Superintendent Project Purpose, Description and Benefit On February 18, 2002 the City Council approved an Engineering Services Agreement with Baxter & Woodman to design Water Treatment Plant #6. This treatment facility would treat a total of 1000 gpm, supplied from two 500 gpm shallow wells, Well #11 located at the Water Tower #3 site, and a future well. The need for the expansion was documented in a 1994 Update to the Utility Master plan. Subsequently in a letter from the City to Baxter & Woodman dated May 4, 2005, the City terminated the agreement with Baxter & Woodman. The reason for terminating the agreement was that the water system demonstrated a greater demand on the west side of the City, as that was the area of greatest development. WTP #6 was never "completely" finished with the design phase. For this reason, funds outlined in FY20/21 ($25,000) are to be used to complete the design. Some questions remain and will need to be addressed for the design to be completed. Construction costs outlined in FY21/22 are old and will need to be adjusted once the design has been fully completed. Project: Water Treatment Plant #5 Development (Legend Lakes) (Row 16 of spreadsheet) Funding Request: FY24/25 FY25/26 FY26/27 FY27/28 FY28/29 Total -0- -0- -0- -0- $4,100,000 $4,100,000 Submitted By: Jon Schmitt, Public Works Director Mike Palmer, Water Superintendent Project Purpose, Description and Benefit On September 6, 2006 the City Council approved an engineering services agreement with Smith Engineering Consultants. SEC’s agreement was to provide construction documents consisting of plans and specifications for the construction of a new water treatment facility for Well #12 and Well #13, approximately 1,400 lineal feet of new finished water piping from the 386 new facility to Farmstead Drive, and selection of submersible-type well pump and controls for Well #13. The new facility will be designed to remove barium and radium from the raw water of Well #13 and iron from the raw water of Well #12. The new treatment facility will utilize ion exchange to treat/remove the barium and radium from the 1,200 gpm from Well #13 and aeration/filtration to treat/remove iron from the 500gpm from Well #12. The new treatment facility will be housed in a new building that will architecturally resemble the fire house that was constructed to the east and include backwash retention, brine storage, chemical treatment systems, clear well, high service pumps, 1/2 bathroom, basic laboratory, dehumidifier, generator, transfer switch, instrumentation, controls and necessary apparatus. Due to the economic downturn, the Capital Development Fund cannot support the construction of WTP #5 at the present time. Expansion of the City's water system, as in the past, will be driven by current and future development. New construction cost estimates should be obtained at least two years prior to actual construction. Project: Water Treatment Plant #3 Rehabilitation (Row 17 of spreadsheet) Funding Request: FY24/25 FY25/26 FY26/27 FY27/28 FY28/29 Total -0- -0- $50,000 $2,500,000 -0- $2,550,000 Submitted By: Jon Schmitt, Public Works Director Mike Palmer, Water Superintendent Project Purpose, Description and Benefit Water Treatment Plant #3 was constructed in 1986. It treats raw water from Well #7& Well #8. The filter media was replaced in 2000. A major overhaul of the filter is anticipated within the next 10 years. The treatment facility should be evaluated to aid in the decision to overhaul or replace the filter. The City has rehabilitated two treatment facilities; Plant #1 in 2005 and Plant #2 in 2012. Both plants currently utilize “gravity” filtration. This form of filtration has proven to increase filter runs times and water quality. Looking forward, an in depth assessment will be need to determine the course of action. Staff suggests assessment and design of “WTP#3 Rehab” in FY26/27. 387 Project: Well #14 and Raw Water Line to Plant #6 (Row 18 of spreadsheet) Funding Request: FY24/25 FY25/26 FY26/27 FY27/28 FY28/29 Total -0- -0- -0- -0- $950,000 $950,000 Submitted By: Jon Schmitt, Public Works Director Mike Palmer, Water Superintendent Project Purpose, Description and Benefit The City conducted a test well program in the fall of 1997, concluded in the spring of 1998. One site was determined to have the possibility to produce 455 gpm. The site at that time was known as the Diedrich Property, now known as the Liberty Trails Subdivision. Depending on the construction of WTP #6, a raw water line would need to be installed from Liberty Trails to the treatment plant site located in Adams Commercial Center, Water Tower #3, and Well #11 sites. This project will need to be revisited for its true cost and feasibility. 388 SEWER PROJECTS Project: Millstream Lift Station Rehabilitation & Sewer Main Relocation (Row 24 of spreadsheet) Funding Request: FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 Total $1,900,000 -0- -0- -0- -0- $1,900,000 Submitted By: Jon Schmitt, Public Works Director Russell Ruzicka, Wastewater Superintendent Project Purpose, Description and Benefit The project purpose is to eliminate one lift station and relocate a sewer main. This will be accomplished by relocating and increasing the size of the Millstream Ave Lift station. Once this is done the Freund Ave Lift stations’ flow will be diverted to the new lift station. This will eliminate one lift station, two pumps and all of the controls necessary to operate it. Another component of this project is to relocate the existing sewer main, which runs under 3705 W. Elm St and then along Boone Creek. The existing main is in poor condition and will need to be replaced/relocated prior to development occurring along Boone Creek. This project was conceived and originally engineered (90% completed) in 2008. Illinois Department of Transportation (IDOT) and Illinois Environmental Protection Agency (IEPA) permits will need to be acquired prior to construction. Based on current permit requirements several engineering/design items need to be updated and some additional testing will need to be done. The cost for this additional work and construction observation has been included in the total. 389 Project: Wastewater Division Motor Pool - Replacement (Row 25 of spreadsheet) Funding Request: FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 Total $105,000 $25,000 $15,000 $40,000 -0- $185,000 Submitted By: Jon Schmitt, Public Works Director Russell Ruzicka, Wastewater Superintendent Project Purpose, Description and Benefit The purpose of this project request is for the replacement of Sewer Division motor pool vehicles. Proposed for FY 19/20 is the replacement of pickup truck #623 a 2006 Ford F250 with a snowplow, toolbox and lift gate. The replacement cost for this vehicle is $65,000. Also proposed for FY 19/20 is the replacement of pickup truck #625 a 2007 Dodge Dakota. The replacement cost of this vehicle is $40,000. Vehicles proposed for replacement throughout the remainder of the 5-year CIP planning period are as follows: FY20/21 – Replace #622 John Deere Gator FY21/22 – Replace #650 Safety Trailer FY22/23 – Replace #620 204 Dodge Ram This project is not being recommended for funding. Project: Automation of Lift Station Generators (Row 26 of spreadsheet) Funding Request: FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 Total -0- $35,000 -0- -0- -0- $35,000 Submitted By: Jon Schmitt, Public Works Director Russell Ruzicka, Wastewater Superintendent Project Purpose, Description and Benefit Fifteen (15) of the City’s nineteen (19) lift stations have emergency power generators. Central Wastewater Treatment Plant (CWWTP) and South Wastewater Treatment Plant (SWWTP) also have emergency power generators. These generators are run, or exercised, once a month. Currently a wastewater division employee spends approximately 2.5 days a month starting, transferring power and then shutting down the generators. By adding components to the 390 generator and lift station control panels would allow the generators to start and run on an automatic program. Project: Lift Station Generators (Row 27 of spreadsheet) Funding Request: FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 Total -0- -0- $250,000 -0- -0- $250,000 Submitted By: Jon Schmitt, Public Works Director Russell Ruzicka, Wastewater Superintendent Project Purpose, Description and Benefit The purpose of this project is to install a permanent emergency back-up power generator at the Broadway Ave Lift Station and the South Riverside Dr. Lift Station so they can continue to operate seamlessly in a power outage. The generators would be natural gas powered units with sound attenuation and sized to sufficiently handle the electrical load. Currently the only source of electricity for these lift stations during a power outage are portable generators. When a power outage occurs an operator must be called in to access the situation and tow a generator to the lift station and hook it up. Often during a power outage there are multiple lift stations and possibly treatment plants that are without power. It could potentially take the operator an extended amount of time to get the power resupplied to these two lift stations. By installing permanent generators at these two lift stations the City can be assured that the residents are much less likely to experience a sanitary sewer back-up in their home. 391 Project: Central Wastewater Treatment Plant Demolition (Row 28 of spreadsheet) Funding Request: FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 Total -0- -0- -0- -0- $2,250,000 $2,250,000 Submitted By: Jon Schmitt, Public Works Director Russell Ruzicka, Wastewater Superintendent Project Purpose, Description and Benefit The purpose of this project is the demolition of the Central Wastewater Treatment Plant (CWWTP). Per the Illinois Environmental Protection Agency (IEPA) regulations the CWWTP cannot be demolished until 1 year after the new South Wastewater Treatment Plant is finished and running in compliance. However, please note, there is no required timeline by which the facility must be demolished and it is hoped that this would coincide with private redevelopment of the site. Once demolition begins, all buildings will have to be removed. All in-ground and above ground concrete tanks will need to be removed and filled in. In addition, all old piping, air lines and electrical lines will need to be removed as well. The Engineer’s Opinion of Probable Cost of this project is $1.75 to $2.25 million. On March 3rd, 2014 City Council approved a professional services agreement with H.R. Green in an amount of $1,325,188. Of that $20,000 has been earmarked for CWWTP demolition engineering. In addition to these projects, the following projects have been projected within the 10-year capital improvement planning period. 392 Project: Update Aeration & Mixing on Oxidation Ditches at SWWTP (Row 29 of spreadsheet) Funding Request: FY24/25 FY25/26 FY26/27 FY27/28 FY28/29 Total -0- $750,000 -0- -0- -0- $750,000 Submitted By: Jon Schmitt, Public Works Director Russell Ruzicka, Wastewater Superintendent Project Purpose, Description and Benefit This project will update the aeration and mixing systems on the oxidation ditches at the SWWTP. Currently the method of aerating and mixing the oxidation ditches is with large inefficient mechanical mixers. There is little or no control on this set up. The project would consist of installing blowers and fine bubble diffusers, similar to what is currently used in the digesters, and submersible mixers. These two components will allow for more accurate control over the treatment process. This in turn will help the plant to run efficiently and in a cost effective manner. Project: Replace/Upgrade Back-up Gravity Belt Thickener (Row 30 of spreadsheet) Funding Request: FY24/25 FY25/26 FY26/27 FY27/28 FY28/29 Total -0- -0- $285,000 -0- -0- $285,000 Submitted By: Jon Schmitt, Public Works Director Russell Ruzicka, Wastewater Superintendent Project Purpose, Description and Benefit The purpose of this project is to replace and upgrade the smaller back-up gravity belt thickener (GBT). This piece of equipment was purchased new in 1998. The GBT begins the sludge de- watering process. It is used to thicken up the sludge before it is finally pressed and dried. The project would consist of replacing the current GBT with a larger model. Upgrading this piece of equipment would mean the plant could continue to de-water sludge at an acceptable rate even if the main GBT was down for maintenance or repair. Currently we would need to work in shifts or work overtime to keep up with the normal production. 393 Project: Rebuild Clarifier Gearbox and Manifold Seals at SWWTP (Row 31 of spreadsheet) Funding Request: FY24/25 FY25/26 FY26/27 FY27/28 FY28/29 Total -0- -0- -0- $25,000 -0- $25,000 Submitted By: Jon Schmitt, Public Works Director Russell Ruzicka, Wastewater Superintendent Project Purpose, Description and Benefit The scope of this project includes rebuilding the intermediate drive gearboxes and replacing the manifold seals on clarifiers # 3 & #4. This requires draining each clarifier and keeping it empty for the week the work is being done. Each clarifier should take 3 – 5 days. These are normal wear items and this work needs to be done periodically. The benefit to doing this in a planned manner instead of waiting until they break is that we are able to schedule the work when it is most convenient for us. This in turn aids in the operation of the treatment plant as well. 394 UTILITY PROJECTS Project: Ringwood Road Water Main Extension (Row 37 of spreadsheet) Funding Request: FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 Total $120,000 -0- -0- -0- -0- $120,000 Project Purpose, Description and Benefit The City Of McHenry received grant funding in the amount of $120,000 to extend the water main to the north along Ringwood Road from Shore Drive to West Shore Beach Drive adjacent to The Home of the Sparrow. This project will be used to service The Home of the Sparrow with municipal provided potable water. This project was awarded the grant through the Community Development Block Grant Program as it meets regulations codified under 24CFR 570.202(b)(6) for infrastructure related to the connection to residential structures of water distribution lines or local sewer collection lines. Project: Water Main Replacement Program (Row 38 of spreadsheet) Funding Request: FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 Total $30,000 $300,000 $60,000 $600,000 $45,000 $1,035,000 Project Purpose, Description and Benefit The most recent revision of the Capital Improvement Program created a budget line item for water main replacement. In 2007 the City Council approved an engineering service agreement with Smith Engineering Consulting (SEC Group) to create a water system model evaluating the overall performance of the system. In this report, areas of town were identified with "undersized" water mains, creating "bottle necks" where water hydraulically reaches maximum flow rates. This can pose issues for future development, fire protection, water quality, etc. Staff has been developing a water main replacement program for aging infrastructure, proactive replacement for future needs, and to address water quality issues. FY19/20 Professional engineering services for replacement of the existing 4” transite water main on Oak Drive. The location between Shore Drive and Prairie Avenue has had several longitudinal water main breaks requiring partial sections to be replaced. Approximately 1,150 lineal feet of 4” diameter transite water main is to be replaced with an 8” diameter water main. 395 Fire hydrants, valve vaults, new service lines, and b-boxes are to be installed per current standards. Professional engineering services will include design services. FY20/21 Bidding, construction and resident engineering services for Oak Drive water main replacement. FY21/22 Professional engineering services for replacement of the water main on Green Street between Waukegan Road and Kane Avenue. Approximately 1,900 lineal feet of 4” and 6” water main between Waukegan Road and Kane Avenue is undersized and creates a bottleneck, upsizing to a 12” water main will eliminate the bottleneck and provide better water quality and fire flow to the Green Street business district and surrounding area. Fire hydrants, valve vaults, new service lines, and b-boxes will be installed per current standards. Professional engineering services will include design services. FY22/23 Bidding, construction and resident engineering services for Green Street water main replacement. FY23/24 Professional engineering services for replacement of the water main on Richmond Road. (between Washington Street and Broad Street) and Broad Street (between Richmond Road and Green Street). Approximately 400 lineal feet of 6” water main on Richmond Road and 1,300 lineal feet of 4” water main on Broad Street are undersized and replacement with 12” water main would improve fire flow and water quality to the surrounding area. Fire hydrants, valve vaults, new service lines, and b-boxes will be installed per current standards. Professional engineering services will include design services. Project: Sanitary Sewer Manhole Rehabilitation Program (Row 39 of spreadsheet) Funding Request: FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 Total $160,000 $160,000 $160,000 $160,000 $160,000 $800,000 Submitted By: Jon Schmitt, Public Works Director Steve Wirch, Utility Maintenance Superintendent Project Purpose, Description and Benefit Over half of the water flow entering the treatment plants approximately 1,000,000 gallons per day, is groundwater and does not need to be treated. This groundwater enters the sanitary sewer system through cracks, breaks and loose joints in the sewer mains. During a severe rain event, over 2,000,000 gallons of ground water could potentially enter the sanitary sewer system per day. This amount of groundwater entering the treatment plants on a daily basis 396 severely restricts the capacity and performance of the treatment plants. By eliminating as much of this infiltration as possible the City can greatly increase the capacity and effectiveness of the treatment plants. The infiltration and inflow is reduced or stopped by inserting a new lining in the existing sewer main thereby stopping the flow of groundwater into the sewer main. With this improvement the treatment plant would perform better and have reduced operating costs. The CIPP (cured in place pipe) lining also extends the life of the sanitary main without excavation. Through the joint bid process the City of McHenry will have lined approximately 1,400 linear feet in FY16/17 and approximately 7,800 linear feet FY17/18 CIP. This is a multiyear contract extending through FY19/20 done through the joint bid process with the cities of Cary and Huntley. During rain events and areas where the water table is high, rain and groundwater can enter the sanitary collection system through deficiencies in aging structures. This inflow and infiltration will increase the volume of sewage that will need to be treated. Eliminating open manhole covers with new sealed frames and covers will reduce inflow from rainwater runoff. There are different types of spray liners that can seal and improve the integrity of the structure. By reducing or stopping inflow and infiltration this improves the operation of pumps at lift stations and the wastewater treatment plants. This project is not being recommended for funding. Project: Sewer Camera Replacement (Row 40 of spreadsheet) Funding Request: FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 Total $65,000 -0- -0- -0- -0- $65,000 Submitted By: Jon Schmitt, Public Works Director Steve Wirch, Utility Maintenance Superintendent Project Purpose, Description and Benefit In 2011 The City Of McHenry purchased an Aries Pathfinder TR3300 tractor and camera system. This camera is capable of televising a 6” to 12” sanitary sewer main. Over the last two years 397 the camera has needed repairs to components that have worn out due to routine televising of the collection system. The purchase of the Aries Pathfinder TR3310 will let personnel televise up to 24” sanitary sewer main. This new tractor and camera will televise the large pipes in the collection system without having the cost of changing the entire system. Aries is the sole provider due to system software. This project is not being recommended for funding. Project: Utility Division Motor Pool (Row 41 of spreadsheet) Funding Request: FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 Total $40,000 $175,000 $150,000 $15,000 $85,000 $465,000 Submitted By: Jon Schmitt, Public Works Director Steve Wirch, Utility Maintenance Superintendent Project Purpose, Description and Benefit The purpose of this project request is for the replacement of Utility Division motor pool vehicles. Vehicles proposed for replacement throughout the 5-year CIP planning period are as follows: FY19/20 – 2002 Chevy K2500 FY20/21 –2008 Ford F350 2wd Utility Truck (1 ton with lift gate),2006 Ford F250 4X4 w/ Plow,Easement sewer jetting machine, 2006 Dodge Dakota Club Cab FY20/21 – 2005 Case 590 Super M tractor, 1994 Air Compressor FY21/22 – 2006 Wells Cargo Trailer (Water Main Break Trailer) FY22/23 – 2007 Mini Excavator, 2007 Mac-Lander Flatbed Trailer This project is not being recommended for funding. 398 Project: Barreville Road Water Main Extension (Row 42 of spreadsheet) Funding Request: FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 Total -0- -0- -0- -0- $325,000 $325,000 Submitted By: Jon Schmitt, Public Works Director Steve Wirch, Utility Maintenance Superintendent Project Purpose, Description and Benefit In June 2008 the IEPA issued a permit for construction of approximately 1300 feet of water main along the west side of Barreville Road extending from Charles Miller Road to the Pebble Creek Subdivision. This project would "loop" the respective area described above, providing improved water quality, fire protection, and added system redundancy. The installation of sidewalks along Barreville Road is included in this project. This project is not being recommended for funding. Project: Eastside Water Main Extension (north leg) (Row 43 of spreadsheet) Funding Request: FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 Total -0- -0- -0- -0- $300,000 $300,000 Submitted By: Jon Schmitt, Public Works Director Steve Wirch, Utility Maintenance Superintendent Project Purpose, Description and Benefit In January 2007 the IEPA released a "Fact Sheet" which detailed sampling of the monitoring wells located at 3004 W. Route 120. The results indicated significant levels of chemical solvents in the ground water. There are multiple regulatory agencies involved, such as; IEPA, USEPA, Illinois Department of Health, and McHenry County Department of Health. Further testing concluded that private wells in a defined area were affected by this contamination. The IEPA asked the City to prepare to extend the public water supply to affected areas. Some of the affected areas - primarily north of Rt. 120- are in unincorporated McHenry County. Due to the public health risk, installation of a public water supply is necessary to provide safe and clean water to the affected properties. There are two designed and permitted phases for 399 construction, i.e. "North and South legs.” As of November 2013, the owner of the property on the southeast corner of Route 120 and River Road also installed approximately 300 ft of the “North Leg”. This section includes the boring under Rt. 120. This is a "shovel ready" project once funding has been secured. Consequently, the projected cost has been reduced, bringing the estimated cost of construction to complete the North leg to $300,000. This project is not being recommended for funding. 400 TAX INCREMENT FINANCE FUND CIP PROJECTS Projects identified in the Tax Increment Finance Fund Capital Improvement Program are for capital improvement projects related to the improvements within McHenry’s established Tax Increment Finance (TIF) district. By action of the City Council, the City of McHenry Downtown Tax Increment Finance (TIF) District was established in 2002. Tax Increment Financing (TIF) is an economic development tool that was provided by state lawmakers more than 25 years ago to assist local governments in attracting private development and new businesses to their respective communities. TIF helps public and private investors overcome extraordinary costs that often prevent development and private investment from occurring on environmentally sensitive and other properties that are at risk of remaining underutilized/underdeveloped for an extended period of time. As a result of this investment, the TIF area is improved and property values increase. Without TIF benefits, a deteriorating area is less likely to improve. Investors do not invest capital into decaying areas and most local governments cannot afford the needed costly improvements without raising taxes. When considering an area for TIF designation, municipal officials must ask the question “Will the same kind of private investment occur here without an incentive?” In other words, “but for” the establishment of a TIF as a mechanism for providing financial incentives for private investment, would redevelopment occur that is desired by the community? Once a TIF is established, private investors and local governments are able to undertake redevelopment projects by utilizing the increase in property tax revenues, or tax increment, as a funding source for TIF improvements over a period not to exceed 23 years. The tax increment is the difference between the amount of property tax revenue generated before TIF district designation and the amount of property tax revenue generated after TIF designation. Establishment of a TIF does not reduce property tax revenues available to the overlapping taxing bodies because property tax revenues collected on properties included in the TIF at the time of its designation continue to be distributed to taxing districts in the same manner as if the TIF did not exist. Only property taxes generated by the incremental increase in the value of these properties after that time are available for use by the TIF. On April 15, 2002 the City Council established the City of McHenry TIF District. 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 TIF District was to revitalize the downtown with a primary focus of generating funds to construct the proposed Riverwalk. Much work has been completed to date in the TIF District and as a result the City is now positioned to encourage downtown revitalization. The first development within the TIF District, Riverwalk Place Townhomes was formally approved by the City Council on April 14, 2003. The project consists of twenty (20) luxury townhome units with two bedrooms (third bedroom option), 2.5 bathrooms and two-car garages with an exterior of brick and siding. The 1.69-acre site is located on the north side of Waukegan Road, south of 401 Boone Lagoon and east of Green Street. Construction of the development has transformed a vacant parking lot into a quality development that serves as an example for future developments in the TIF District. TIF assistance has also made it possible for the city to fund boat piers and public utility improvements at the site. Another project that came to fruition through the assistance of the TIF District has been the redevelopment of the former Eby Brown Building. The building has been completely renovated and is the new home of Verlo Mattress as well as various other inline store frontage. In 2007/08, the second major project within the TIF District began to take form on a parcel on the site of the former medical arts property at 1110 N. Green Street. The site was purchased and prepared by the city of McHenry eventually including the site as a TIF incentive through an RFQ/RFP process. A redevelopment agreement was approved by city council on March 5, 2007 and work on the building commenced. This four story mixed use building contains 62,000 total square feet including 17,000 square feet of first floor retail space. The 45,000 square feet of residential space occupy floors two through four of the building with 27 total units. In all just over $2,000,000 in incentives were provided to the Riverwalk Place development with the first certificate of Occupancy issued in January of 2010. Finally in the fall of 2012, the City of McHenry entered into a contract to purchase the former site of the Dobyn’s House, commonly referred to as Miller Point in the Riverwalk Plans. The 2.6 acres of land will potentially be the base for the next redevelopment project as well as the continuation of the Riverwalk project and its extension to the Fox River. In 2014 the City worked with the Riverwalk Foundation to coordinate the construction of the Riverwalk from Miller Point north to and under the Elm Street/120 bridge. This included work on behalf of the Riverwalk Foundation to secure private easements and collaboration with design and construction and included financing of the project. Also, the City funded the implementation of a new pier system so that boats could dock at Miller Point throughout the day to access business in the downtown areas. The hard work of many has come to fruition with construction of the Riverwalk beginning and the base of redevelopment projects set. It is the intent of the City of McHenry to continue to encourage additional development and redevelopment according to the adopted Downtown Plan and to complete the construction additional phases of the Riverwalk. In FY18/19, using the original VOA Riverwalk Improvement documents, the Riverwalk Foundation chose to apply existing Foundation funding toward improvements at Miller Point. These improvements are anticipated for construction in 2019 and will move the Riverwalk another step further. The FY19/20 – FY23/24 Tax Increment Finance Fund Capital Improvement Program currently does not generate sufficient revenues to undertake new projects within the TIF district and, as such, no projects are identified for implementation within the 5-year planning period. Importantly however, the TIF Fund Balance deficit is at $247,061, a reduction of $91,634 from 402 the previous year deficit of $338,695. This is positive as it relates to increases in TIF generated revenues that may be used for future improvements once the TIF deficit is fully reduced. With a number of new construction and improvement projects within the TIF District, the TIF Fund should see future increases. Of note, any projects undertaken utilizing non-TIF funding within the TIF district are eligible for TIF reimbursement should sufficient revenues become available in the future. 403 Project FY18/19 FY19/20 FY20/21 FY21/22 FY22/23 5-Year TotalRiverwalk Improvements -$ -$ -$ -$ -$ -$ TOTAL -$ -$ -$ -$ -$ -$ Funding SourcesTIF Fund TotalTax Increment Finance 404 Investment Policy I. Policy It is the policy of the City of McHenry to invest public funds in a manner which will provide the highest investment return with the maximum security while meeting the daily cash flow demands of the City and conforming to all state and local statutes governing the investment of public funds. II. Scope This policy includes all funds governed by the Mayor and Council (“City Council”). III. General Objectives The primary objectives, in priority order, of investment activities shall be safety, liquidity, and yield: A. Safety. Safety of principal is the foremost objective of the investment program. Investments shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. The objective will be to mitigate credit risk and interest rate risk. 1. Credit Risk. The City will minimize credit risk, the risk of loss due to the failure of the security issuer or backer, by: (a) Limiting investments to the safest types of securities. (b) Pre-qualifying the financial institutions, brokers/dealers, intermediaries, and advisers with which the City will do business. (c) Diversifying the investment portfolio so that potential losses on individual securities will be minimized. 2. Interest Rate Risk. The City will minimize the risk that the market value of securities in the portfolio will fall due to changes in general interest rates, by: (a) Structuring the investment portfolio so that securities mature to meet cash requirements for ongoing operations, thereby avoiding the need to sell securities on the open market prior to maturity. (b) Investing operating funds primarily in shorter-term securities, money market mutual funds, or similar investment pools. B. Liquidity. The investment portfolio shall remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated. This is accomplished by structuring the portfolio so that securities mature concurrent with cash needs to meet 405 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 offici als shall be the “prudent person” standard and shall be applied in the context of managing an overall portfolio. Investment officers acting in accordance with written procedures and this investment policy and exercising due diligence shall be relieved of personal responsibility for an individual security’s credit risk or market price changes, provided deviations from expectations are reported in a timely fashion and the liquidity and the sale of the securities are carried out in accordance with the terms of this policy. Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived. V. Ethics and Conflicts of Interest Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with the proper execution and management of the investment program, or that could impair their ability to make impartial decisions. Employees and investment officials shall disclose any material interests in financial institutions with which they conduct business. They shall further disclose any personal financial/investment positions that could be related to the performance of the investment portfolio. Employees and officers shall refrain from undertaking personal investment transactions with the same individual with whom business is conducted on behalf of the City. 406 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 15C3-1 (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. D. Completed broker/dealer questionnaire. E. Certification of having read and understood and agreeing to comply with the City’s investment policy. An annual review of the financial condition and registration of qualified financial institutions and broker/dealers will be conducted by the Investment Officer. VIII. Suitable and Authorized Investments The City may invest in any investment allowed for in the Illinois statutes regarding investment of public funds including but not limited to the following: A. U.S. government obligations, U.S. government agency obligations, and U.S. government instrumentality obligations, which have a liquid market with a readily determinable market value. 407 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)-(11). F. Money market mutual funds regulated by the Securities and Exchange Commission and whose portfolios consist only of dollar-denominated securities. G. Local government investment pools, either state-administered or through joint powers statutes and other intergovernmental agreement legislation. IX. Collateralization Funds on deposit (checking accounts, certificates of deposit, etc.) in excess of FDIC limits must be secured by some form of collateral, witnessed by a written agreement and held at an independent – third party institution in the name of the City. X. Safekeeping and Custody All security transactions, including collateral for repurchase agreements, entered into by the City, shall 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 408 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 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. 409 XIV. Performance Standards The investment portfolio will be managed in accordance with the parameters specified within this policy. The portfolio should obtain a market average rate of return during a market/economic environment of stable interest rates. A series of appropriate benchmarks shall be established against which portfolio performance shall be compared on a regular basis. XV. Reporting The Investment Officer, or his designee, shall prepare an investment report at least quarterly, including a management summary that provides an analysis of the status of the current investment portfolio and transactions made over the last quarter. This management summary will be prepared in a manner which will allow the City to ascertain whether investment activities during the reporting period have conformed to the investment policy. The report should be provided to the Investment Officer, the legislative body, and any pool participants. The report will include the following: A. Listing of individual securities held at the end of the reporting period. B. Realized and unrealized gains or losses resulting from appreciation or depreciation by listing the cost and market value of securities over one-year duration that are not intended to be held until maturity. C. Average weighted yield to maturity of portfolio on investments as compared to applicable benchmarks. D. Listing of investment by maturity date. E. Percentage of the total portfolio which each type of investment represents. XVI. Marking to Market A statement of the market value of the portfolio shall be issued to the Mayor and City Council quarterly. XVII. Exemption Any investment currently held that does not meet the guidelines of this policy shall be exempted from the requirement of this policy. At maturity or liquidation, such monies shall be reinvested only as provided by this policy. XVIII. Amendments This policy shall be reviewed on an annual basis. The Investment Officer may implement changes in the investment policy after gaining approval from the Mayor and City Council f or 410 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. 411 Purchasing Policy and Procedures General Rules, Regulations and Ethics  Purchasing activities for the City of McHenry shall be in accordance with this Purchasing Policy, City Ordinances and applicable Statutes of the State of Illinois.  Items procured will represent the maximum economical benefit for each dollar spent.  Procurement shall be made of commodities and services of high quality and continued availability.  Whenever possible, purchases shall be based on obtaining cost comparisons, quotations or competitive bids. In the case that it is not possible to obtain cost comparisons, quotations or competitive bids, this will be identified in the approval and review process.  Purchases shall be based on obtaining better knowledge of methods and of commodities required to operate cost effectively.  Local participation will be encouraged in the procurement process.  Consideration should be given to participate in cooperative purchasing efforts with other local government entities and in the State of Illinois Joint Purchasing Program whenever possible.  All personnel involved in the purchasing process shall conduct themselves with fairness and impartiality, and demand the same of all vendors.  Negotiations and discussions involving purchasing shall be conducted in compliance with the Code of Ethics and Rules of Conduct in the City’s Personnel Handbook.  The purchasing process will promote professionalism and be committed to the efficiencies of centralized purchasing. Approval Requirements & Delegations of Authority  The purpose of this procedure is to outline the required approvals for all purchase commitments and transactions, and secondly, to define City personnel by classification who are authorized to initiate purchases at various monetary levels for materials, equipment, supplies and services.  All designated personnel shall obtain the required approval(s) prior to final commitment. If one or more person’s approval is required who is not available, the approval must be obtained from the next highest level of authority of approval level. 412  Prior to approval for payment by the City Council, Department Directors and the City Administrator must approve all purchase invoices for those transactions and commitments of authorized supervisors and employees.  The following table establishes the required levels of approval based on the dollar amount of the purchase: Amount Authorized Employees & Supervisors/Managers Department Directors City Administrator or Finance Director Mayor or City Administrator Mayor and City Council $750 or less X X X $751 to $3,500 X X $3,501 to $6,500 X $6,501 to $10,000 X More than $10,000 X  The following table lists those position classifications authorized to initiate purchases in relationship to the prescribed dollar amounts (from above). Those position classifications not shown below are strictly prohibited from purchasing unless otherwise authorized by the City Administrator or Finance Director. Dollar Amounts Authorized Position(s) More than $10,000 Mayor and City Council in accordance with “Budgeted Items – Cost Comparisons, Quotations and Competitive Bidding” section of this policy* $6,501 - $10,000 Budgeted Items with the authorization of the Mayor or City Administrator in accordance with “Budgeted Items – Cost Comparisons, Quotations and Competitive Bidding” section of this policy* $3,501 - $6,500 Budgeted Items with authorization of the Finance Director or City Administrator in accordance with “Budgeted Items – Cost Comparisons, Quotations and Competitive Bidding” section of this policy* $751 - $3,500 Budgeted Items with authorization of the Department Director in accordance with “Budgeted Items – Cost Comparisons, Quotations and Competitive Bidding” section of this policy* $750 or less Budgeted Items by Employees authorized by their immediate Superintendent, Manager, or 413 Department Director in accordance with “Budgeted Items – Cost Comparisons, Quotations and Competitive Bidding” section of this policy* *For items not identified as “Budgeted Items”, budget amendment requests will be brought before the City Council for consideration/approval for items over $6,500 unless the action is considered emergency in nature. Should this be the case, Council will be notified of the purchase/acquisition and the item will be presented for approval at the next regular meeting of the City Council.  Definitions of authorized positions: Authorized Dollar Amount Authorized Position(s) $750 or less Authorized Employees: (must have prior approval of their immediate Supervisor, Manager, or Department Director)  Executive Assistant/Deputy City Clerk  Administrative Assistants (all departments)  Public Works Maintenance Worker  Public Works Operator  Public Works Mechanic  Parks & Recreation Maintenance Worker  Public Works Project Engineer  Community Development Plumbing Inspector  Community Development Code Enforcement Officer  Community Development Permit Technician Supervisors/Managers:  Public Works Water Division Superintendent  Public Works Wastewater Division Superintendent  Public Works Street Division Superintendent  Public Works Wastewater Division Assistant Superintendent  Public Works Utility Division Superintendent  Public Works Forestry Division Superintendent  Community Development Superintendent of Residential Inspections  Community Development Superintendent of Commercial Inspections  Parks & Recreation Parks Division Superintendent  Parks & Recreation Parks Division Assistant Superintendent  Parks & Recreation Recreation Center Manager  Recreation Superintendent of Programs  Recreation Superintendent of Athletics & Aquatics  Police Deputy Chief  Police Commander of Operations 414  Police Commander of Support Services  Police Sergeants  Police Dispatch Supervisor  Information Technology Manager $751 - $3,500 Department Directors:  Deputy City Administrator/Director of Parks & Recreation  Director of Economic Development  Director of Community Development  Director of Finance  Director of Public Works  Chief of Police $3,501 - $6,500 City Administrator or Finance Director $6,501 - $10,000 Mayor or City Administrator More than $10,000 May and City Council Budgeted Items – Cost Comparison, Quotations and Competitive Bidding  For budgeted items under $6,500 authorized positions shall obtain, where possible, three (3) cost comparisons prior to the purchase of goods and/or services.  For budgeted items between $6,501 and $10,000 authorized positions shall obtain, where possible, three (3) cost comparisons or three (3) written quotations prior to the purchase of goods and/or services.  For budgeted items over $10,000, but less than $20,000, staff shall obtain, where possible, three (3) written quotations for the purchase of goods and/or services for consideration and approval by the City Council.  For budgeted items over $20,000, the purchase of goods and/or services shall follow a formal competitive bidding process whereby staff develops bid specifications, Council approves a request to advertise for bids, bids are received and evaluated, and a recommendation is forwarded to the City Council for award/approval. 415 Glossary of Terms 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. 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. 416 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. 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. 417 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. 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. 418 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. 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. 419 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 par ticular 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. 420