Press Alt + R to read the document text or Alt + P to download or print.

No preview available

The URL can be used to link to this page

Home My WebLink About21-22 Budget�k_ 4' �.-I dyr3..1 ��ql F.. c- 0wwr� � n� "�S`,� r � l� 1:. tr�.9��1®]AO/S SII►�'L�i oi�� ; \bnf r-. *F 4. i Ki • '� 1 ��17 �/ � �Y ... _ :. ,t / ��3 � � .:. �e,�� City of McHenry, 111inois FV2021/2D22 Annual Budget Table of Contents Letter of Tra nsmittal introduction....................................................................................................................... 1 Elected Officials, Department Directors and Primary Adminis trato rs ._.......... 2 History and Demographic Snapshot of McHenry .............................................. 3 City of McHenry Strategic Plan Summary.......................................................... S Budget Document C:uid e..................................................................................... 10 Basis of Accou nt[ng and Budget[ng..................................................................... 11 Hudget Process Summary........................................................... ........ 12 BudgetProcess Timeline..................................................................................... 14 City of McHenry Organizational Chart................................................................ 15 PersonnelSummarY............................................................................................. 16 Fund Structure Overview.................................................................................... 17 Chart of Accou nts Overview................................................................................ 20 Summary of Revenues 8a Expenditures - All Funds ....................................................... 3 1 Summary of Proposed Revenues - Al] Funds .................................................... 32 Comparison of Budget vs. Proposed Revenues - All Funds .............................. 33 Summary of Revenues and Other Financing Sources - All Funds .................... 34 Summary of Proposed Expenditures - All Funds .............................................. 36 Comparison of Budget vs. Proposed Expenditures -All Funds ........................ 36 Expenditures by Function - All Funds............................................................... 37 General Fund Revenues, Expenditures 8� Fund Balance Summary ............................... 38 General Fund Overview....................................................................................... 39 General Fund Revenues, Expenditures and Fund Balance Summary ............... 39 General Fund Revenues - Budgeted, Estimated, Proposed ............................... 40 General Fund Expenditures - Budgeted, Estimated, Proposed ......................... 44 General Fvnd - Fund Balance............................................................................... 46 General Fund Operating Budgets...................................................................................... 49 General Fssnd Operating Budgets Overview....................................................... SO General Administrat[on........................................................................................ 53 ElectedOFficials..................................................................................... 60 Community DeveloPment..................................................................................... 63 Finance................................................................................................................... 71 Human Resources................................................................................................. 79 EconomicDevelopment........................................................................................ 85 Polic¢ Commission................................................................................................ 94 Police.......................................................................................... 97 NERCOM (Dts patch)............................................................................. 1 15 Public Works - Ad minis tration............................................................................ 123 Public Worlcs - Streets.......................................................................................... 13 O Parks and Recreation............................................................................................. 139 SPecial Revenue Funds........................................................................................................ 160 Tourism................................................................................................................... 161 Pageant..................................................................................................................... 154 Band......................................................................................................................... 167 CivilDefense............................................................................................................ 160 AlarmBoard............................................................................................................. 163 Audit........................................................................................................................ 166 Annexation............................................................................................................... 169 MotorFuel Tax........................................................................................................ 1']2 DeveloPer Dona[ion................................................................................................ 1']5 TaxIncrement Finance........................................................................................... 1']8 Capital Projects 8. Debt Service Funds.........................................................._................... 181 DebtService Fund................................................................................................... 182 Recreation Cen[er Fund.......................................................................................... 185 Special Service Area#4.......................................................................................... 193 Capital Improve menu Pu nd................................................................................... 196 C aPital Etl uiPment Fund......................................................................................... 199 En[erp rise Funds................................................................................................................. 202 Water8e Sewer Fund.............................................................................................. 203 PublicWorks - Water.........................................................................................._ 206 Public Worlcs - Wastewater................................................................................... 211 PublicWorlcs - Utility....................................................................................... _... 216 Capical Developmen L.................................._......................................................... 229 UtilitY Im Provem en ts............................................................................................. 23 2 MarinaOpera tions...................................................._......._................................... 23 6 Internal Service Funds....................................................................................................... 23 8 E mPloYee Insurance.............................................................................................. 239 RiskManagement.................................................................................................. 242 FiduciaryFunds............................_.....................................................__............................ 245 Employee Flexible SPen ding.................................................................................. 246 D eveloPment Escrow.............................................................................................. 29.9 RetainedPersonnel................................................................................................. 25 2 RevolvingLoan....................................................................................................... 255 PolicePension......................................................................................................... 258 Sap Plem coral 1 n Formation.............................._....................................................... _......... 26 1 Financial Policies Overview................................................................................... 262 Fund Balance and Reserve PolicY��--��-��--��--�--��------- 264 Capital Improvement Program Financial Policies ................................................ 2'J3 InvestmentPolicy................................................................................................... 2']4 Purchasing Policy and Procedures......................................................................... 281 GlossarY of Terms................................................................................................... 283 Derik Morefield, Clty Administrator McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2100 Fax: (815)363-2119 M �i dmorefleld�cl.mchen ry.il.us DATE: April 19, 2021 TO: Mayor and City Council FROM: Derik Morefield, City Administrator Carolyn Lynch, Finance Director RE: Transmittal of the FY21/22 Proposed Budget The City's annual Ftscal year budget covers the period beginning May 13� and ending April 30��. The budget document itself, upon completion, contains information relative to estimated revenues and planned operational and capital expenditures far the various funds of the municipality for the identified fiscal year. Although the budget is not formally adopted by the City Council until April of each year, the budget development process officially begins each October with the preparation of the annual tax levy, which is used to fund many of the current programs and services, along with the development/update of the five-year Capital Improvement Program (CIP). The budget preparation process provides the various divisions and departments of the City with the opportunity to review accomplishments, set goals and objectives, and identify the means For accomplishing these goals and objectives. Every employee of the municipality plays a role in the budgeting process - be it formulation, preparation, implementation, administration, or evaluation. Ultimately, Department Directors, through the Finance Director and City Administrator, are accountable to the City Council and to the residents of McHenry for the performance of departments in meeting the goals and objectives of a full service municipality, and for the diligent Fiscal management of funds, as set forth in the budget document. Department Directors, with input From their respective managers, superintendents and departmental staff, analyze historical data, review existing operational needs, and project anticipated operational needs in order develop line -item budget requests that allow them to maintain or enhance the level of programs and services within their departments. These detailed requests submitted to the City Administrator and Finance Director, and meetings are held with Department Directors to review and adjust requests based on identified need and anticipated revenues, ]seeping in mind the overall services that the municipality must provide to residents. As always, it is the goal of the City Administration to present Council with a balanced operating budget. This goal is able to be achieved in the attached budget information. The COVID-19 Pandemic presented the City of McHenry with a significant financial challenge in FY20/21. The unknowns associated with economic impact of the pandemic were estimated to reduce revenues by as much as 20%. In response to this threat, and with the full support of the City Council, the City Administration moved to immediately defer or reduce expenditures and put in place a number of internal controls to protect the financial stability of the municipality. Ultimately, revenue losses never reached the 20% level, primarily due to a recovery in retail expenditures and revenue assistance through the CARES Act. However, the City was still able to reduce FY20/21 expenditures by more than $1.9 million dollars, resulting in a net addition to the General Fund Balance by approximately $1.15 million. The FY21/22 Budget, as proposed, includes extremely conservative revenue projections as we continue to monitor the pandemic and its impact on municipal revenues. Budget expenditures include an 8.8% reduction in personnel costs, achieved through a combination of cost savings through employee retirements and attrition, reorganization, and the decision in FY20/21 to bond the outstanding police pension liability. The budget includes more than $6 million in capital projects, including a $2.1 million local road program. In closing, the following budget document provides accountability for each and every dollar that the municipality brings in as revenue and plans for expenditure. Further, the document includes analyses and recommendations based on the best available information that staff has at the time of budget development and reflects a commitment to meeting or exceeding budgetary guidelines as established by the National Advisory Council on State and Local Budgeting and the Government Finance Officers Association best practices on budgeting. Fiscal Year 2021/2022 Annual Budget Introduction Elected Officials Wayne 5. Jett, Mayor Ward 1 Victor A. Santl, Alderman Ward 2 Andy Glab, Alderman ward Jeffrey A. Schaefer, Alderman Ward 4 Ryan Harding, Alderman Ward S Chad Mlhevc, Alderman Ward 6 Patrldc Devine, Alderman Ward '] Sue Miller, Alderwoman Department Directors and Primary Administrators DerBc Morefield City Administrator John Birk, Chief of Police Ann Campanella, Director of Human Resources B311 Hobson, Director of Parlcs and Recreation Carolyn Lynch, Director of Pinance Doug Martin, Director of Rconomlc Development Ross Poleredry, Director of Community Development Troy Strange, Director of Public Works History and Demographic Snapshot of McHenry McHenry is located in east -central McHenry County, SS miles northwest of [he Chicago Loop and 35 miles From O'Hare International Airport. The Glty is centered on two major State highways -Illinois Route 31, which runs north/south From Wisconsin to South Blgin; and, Illinois Route 120, which runs east/west From Woodstock to Park City. The Clty consists of approximately 13 square miles in land area. In 1832 Major William McHenry led an expeditionary force through northern ❑llnols durtng the Blacic Hawl< War. Settlement oFthe Fox River Valley began over the next few years, and on the river's west booty at the site of an old Indian Ford, the hamlet of McHenry established In 3636. The McLean, Whee]er, MCCullom, and Boone families were lnFluential in the community's early years. A sawmill, hotel, and ferryboat wer¢ in operation by 1837 and legislation creating McHenry County was passed that year, and the village served as county seat until 1844. Gr(stmllis started along newly dammed Boone Creelc, and a wagon road entered town From the south In iB51. In 1864, the famed Riverside Hotel was built and still stands today. George Gage, who served as the region's first state senator (1854-1658), owned the lands west of the millpond, and was able to secure the route oFthe Pox Valley Railroad (aRerward a branch of the Chicago Se North Western) from Chicago in 1854. Consequently, Gagetown (later West McH enryJ began to eclipse the older east side of town conta[ning 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 fn 1872. Though there were fewer than 800 inhabitants, commerce flourished. By 1876 there were seven churches and over 60 enterprises, including Hour mills, harnessmakers, a p/tide factory, a brewery, seven saloons, and a newspaper. The n¢wspap er, the McHenry Plaindea/er was in publication From 1875 to 1965. 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 tam- the famous lotus beds, and summer cottages proliE rated along the Pox River. Aboat-building industry Flourished; marine recreation still remaf ns Important. Por decades, McHenry took very seriously its title as the "Gateway to the Chain- oF-Lal<es" and this is still evidenced today In the clty's motto "Heart of the Pox River." With the advent oEthe automobile, State Route 120 crossed the Fox River on a new two-lane bridge. The old wagon troll, now Highway 31, doglegged along the same route for a critical half mile before turning north toward Wisconsin. These conflguratlons effectively relocated the dty's commercial center to Route 120, and had the unintended side effect of Isolating the original business districts (West Mafn, 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 Admlra4 Borden and The Hunter Boat Company. The Fox River helped Facilitate the import and export oFlumber, cigars, clay, Food products and brewing which all helped draw new residents to the area. The drainage of a large 60 acre pond that previously div(ded the community in half; contributed to increased development and improved roadways, while the railroad allowed commuters to Rnd this area the perfect place to settle with their Families. Anew wave of industry, including automotive components, electronics, and metalworking, swept Into town afl:er World War lI. The Northern lilinofs 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 tc 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,SOi fn 2000. McH enry's current population is approximately 27,000, including 10,075 households, an average household size of 2.66, and median household income of $66,024. OF the 10,075 households, approximately 7,719 are owner -occupied and Z,356 are renter occupied. The median resident age is 37.1. The City's 2017 HAV was $636,080,966. The City currently has more than 2,000 approved unplatted lots and platted vacant lots. Active subdivisions in the City /nclude: Abbey Ridge, Boone Creek, Burning Tree, Chesapeake Hilts, Deerwood Estates, Evergreen Parks, Foxcroft Ridge, Glacier Ridge, I{nox Farm, Legend Lakes, Llb crty Trails, Lincoln Hills, Martin Woods, Morgan Hill, Oaks at Irish Prairie, Patriot Estates, Prairie Lalces and Preserves at Boone Creels. Total number of businesses In the City is 1,473 and total employment [s approximately 19,661, wick 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%. G rae:n SVeat looking SoulF from Slate Route 120 (cLca 1920'S) City of McHenry Strategic Plan Summer Background In the fall of 2013 the City Council and Department Directors participated in a Facilitated strategic planning session and the results of [his exercise were compiled and presented to Councll fn the form of the City of McHenry Comprehensive Strategic Plan document that was adopted by Council [n August of 2014. In addition to establishing updated Mtssfon and Vision statements, Governing Principles and a Code of Bdtics, the plan identified Fifty-nine [59) Strategic Goals as guiding princip]es for decision -malting. In die spring of 2016 StafFand Council undertook a review of the plan document with a Focus towards ensuring that the sbategic plan remain relevant to die activities/actions being undertaken by staff and elect¢d officials, to revisit opportunities, and to Identify/introduce any new strengths, weaknesses, opportunities, and threats that may need to be Incorporated in to [he plan. While regular annual or biannual review of [he plan is essential to provide for a structured mechanism of update, the plan itself is a "living breathing" document that cons{stently 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 i[ conveys have been IdentiRed as essential For the municipallry and, as possible, are incorporated into the annual Capital Improvement Program [CIP) and Annual Budget. Attributes are listed fn order of importance based on participant feedback. Mission S[at¢m¢n[ The City of McHenry is dedicated to providing the citizens, businesses and visitors of McHenry with the highest quality of programs and services in acustomer-oriented, efftcient 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 oEthe City Council. (City Councll) The mission will be placed prominently In each adtl[tlon o£the Cfty Newsletter. (Office of'the City Administrator) The m{ss[on will be framed and pasted at maior portals within all municipal buildings. (Ojjlce of the City Administrator, Department Directors) The mission wlllbefncorporated in to daily decision -making and lnclud¢d in Future munfcipal planning documents. Examples include the annually updated 5-Year Cap(tal Improvement Program and the annual operating Budget. (Office a] -the City Administrator, AI!) The mfssion will be added Yo letterh¢ad, memos, etc. (O�ce of the Clty Admfnfsttn[ar All) The mission will be added to website and other social media. [Office of the Cty Administrator) Vision To make McHenry a community of choice For living, working and recreating for all, wltfi unique natural resources, abundant cultural opportunitles, outstanding neighborhoods, and a vibrant and diverse economy. G ovea-nfng Principles The values and beliefs guiding the actions ofthe elected and appointed officials ofthe Gity of McHenry shall include the Following: • Provide an open and honest government • Hstablish 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 Itfe. • Embrace the diversity of a muld-cultural and multi -generational working environment. Be Fa[r 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, bus/nesses and v[sitors of the community, are our most valued asset. Code of Ethics In addition to the guidance of ethical behavior for elected and appointed officials provided in the McHenry City Code (Sec. 2-SS Code of Hthics7, the following Code of Hthics shall app]y: • 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 ffscalty responsible and manage budgets effectively. Be proactive, ]Dole for ways to anticipate and deal with issues. . Seek innovative ways to improve public services and increase efficiency. • Keep the public informed and prow/de opportunities For public engagement. Str¢ngths: Physical assets, supplies, talents, etc. that can assist in accomplishing our vision. Goal To maintain a balanced budget while protecting our healthy reserves, continuing to evaluate our 1. Stable Financial Position annual levy with the potential keeping [t Flat as long as our reserves are healthy, per our Fund Balance and Reserve Polic . T¢ develop and continue marketing strategy For 2. Fox River the Rlverwalk and Fox Reiver by expanding and developing riverFront recreational areas and business o m-tunities. Retain and support the position of 6conom[c Development Director to actively pursue economic development opportunities and be 3. Economic Development receptive to zoning changes to allow businesses to grow. Diversity of business types identiPled as lm octant. To maintain and utilize our 600+ acres of park 4. Parks System/Open Space and open space to provide recreational 0 ortunities for residents and visitors. To cooperate with local and area groups, residents, businesses to have events/recreational opportunities. Develop a S. Puhlic Rvent Coord/nation plan that allows feedback From The community and use data to develop Future events. Increase marketing of municipal and munidpally- su orted events. To ntinue to support staff development and 6. Staff Development provide staff with the tools necessary to be successful in a positive work environment - res ectin Hteir knowled a and ex ertise. 7. Inter Departmental Teamwork To continue to foster a climate of collaboration amon de artments and within divisions. Weahness¢s Physical assets, supplies, talents, etc. that are deficient and impede the ability to adtieve our vision. Attribute ""' To continue to evaluate . nd pri ritize 1. Aging ❑iFrastrucCu re in Frastructure needs, continuously wm-Ic Co leverage non -municipal funding, and attempt to identi consistent fundin sources. To continue to promo[¢ respect and teamworlp 2. Internal Communication find ways to increase meaningful communication and agree to disagree and move on. To define and prioritize technology needs ofth¢ 3. Aging Technology municipality and develop and implement technolo lan s . To continuously implement methods for provld/ng enhanced customer service, 4. Public Perc¢ptlon of Government increased information and to make City processes, procedures, Intentions, actions as trans arent as oss5bte. To develop a methodology for pr5orh3z/ng code enforcement activities based on Council S. Code Hnforcement direction and deve]op a Code Hnforcement Strate To continue To coordinate with McHenry County 6. Public Transportation and surroundin commun5ties oonortr+nRles: Situations that can have a posi[ive effect on the organization if considered or acted upon. 0 1. Riverwalk Expansion To review and utilize Riverwallc and Downtown Plans which are already In place and undertake 2. Redevelopment of Central Wastewater additlonal studies as needed, to ensure Treatment Plant sire prioritization and coordination of projects i-4 (leR). Much of this depends on timing, cosK 3. Miller Point Redevelopment redevelopment opportunities but the City and partners should be prepared to act as 4. Downtown Theater Redevelo ment o ortunfttes arise. To evaluate long term Feasibility for expansion of the recreation center Chrough assessing S. Recreation Center Hxpansion community desires and needs with an understanding that future phases are dr5ven by the ass eof referenda. To establish the consolidated dispatch facility 6. Dispatch Facility Sxpanslon and continue to promote and attract new customers to the facili To continue efforts to obtain cons[ruction 7. Fox River Access/Boat Ramp permit From the USACH and fund and build the facili To evaluate and redevelopment the GIty's Internet website to make it more transparent 8. Reconstructed City Website and City Council and user friendly and to take the steps required A/V to be able to either live stream or record stream Ci Council Meetin s. Threats: Opposite of opportunRies. Factors that can have a negative impact on local government. X1tti•Ibuce Goal To rontimae effmYs to establish an atmosphere 1. Council -Council, Council -Staff Trust, Respect of respect and trust through open communication and cooperation. All on the same team. To maintain the City's financial stab5ltry while establishing a Financial threshold at a 2, State Budget Crisis "survivable" level to maintain City services while continuing to monitor Sta[e's financial crisis. To explore opportunities For extending the 3. Extend the TIP current T[P; coordinate w(th other taxing ¢u'isd[ctions; educate public on benefits of TIP and extension. To develop a comprehensive assessment of all 4. Aging Infrastructure Costs Infrast:vcture and Implement a prlorlttzation for re lacement-Ca itallm rovement Plan. To maintain pace oFp�yment on Police Pension and m ensure that we are competitive Eor 5. Pension, Beneilt, Insurance Costs Insurance and benefits - adjustlng employee ntributions as necessa To explore, implement unique opportunities for 6. Business Incentives business incentives for locatlon and expansion U�at sets McHenry apart as a business -Friendly co�n�nvni re ardless of [he State's issues. 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 in Formation regarding the budget The second /s to develop an annual fiscal plan that will assist City leaders 3n malting bett¢r 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 Clty Administrators 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 un[Ys 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 Hand sCructure overview secton. In addition, all summaries of all major revenues and expenditures are provided in summary tables. The final budget also includes General Fund revenues for the 2017/18 through 2019/20 fiscal years as well as budget amounts for the current and upcoming years. Finally, the summary section includes information as the projected changes in Fund balances For all appropriated funds. Communication Device The Budget Document contains narratives, supplemented with tables and charts, which present the budget fn a manner that is simple and understandable. The Proposed FY20/21 Budget is available For public review at the McHenry Municipal Center, 333 S. Green Street, McHenry, as well as on the Cfty's website at w^e^_xciitvofmchenrv� prior to adoption by the City Council. Once adopted, the budget fs available Eor public review at the McHenry Municipal Center, 333 S. Green Street, McHenry, as well as on the City's w¢bsite at a, _<:v.citvofmchenrv�. to Basis of Accounting and Budgetin The City of McHenry uses the modiF ed 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 Fuuds the Ctty 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 the[ capital outlay items are included in the budget. The City prepares its budget on a basis consis[ent with generally accepted accounting principles except that the City also recognizes encumbrances Ear budgetary purposes. Encumbrances lndude supplies ordered but not received, and services contracted but not yet expended by the Gity. Sncuinbrances are charged against a budget or appropriation for account purposes. Accordingly, expenditures/expenses in this document include encumbered expenditures/expenses. Sncumbranres do not lapse at year-end and provide au[horizatf on For ¢xpenditures/expenses For the following year. The CITY appropriates Funds Eor capital projects on a Eiscal year basis. The Cap[tal Projects sec[ion of this document includes descriptive Information on each project with estimated costs and Einandng sources. it Budget Process Summary Budge[ Process Overview The City's annual fiscal year budget covers the period beginn/ng May 1+` and ending April 30a� 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 oFfldally begins each October wf th the preparation of the annual tax levy, which is used to Fund many of the current programs and services, along with the development/update of the five-year Capital Improvement Program (CIP). The budget preparation process provides the various divisions and departments of the City with the opportunity to review accomplishments, set goals and objectives, and identify the means For accomplishing these goals and objectives. Capital Improvement Plan/Community Investment Plant P revlous to FY21/22 the City of McHenry utilized a Fve-year Capital Improvement Program (CIP) as a planning tool for the identlflcatlon of capital improvement and capital equipment projects. in an etFoct to develop a more usefhl short and long-term planning and budgeting tool For capital Improvement and capital equ[pment items the City Administration, led by the Director of Public Works, /s in the process of developing a new Community Investment Plan document to replace the Capital Improvement Plan beginning in FY22/23. This document will provide more accurate Financials for capital acquisition and replacement over a 20-year period. This document will also be reviewed and updated on annual basis. Budget Roles and ResponslbiH[ies Beery 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 [o the residents of McHenry Eor the perFormance of departments in meeting goals and objectives as they are laid out fn the budget document Department Directors, with 9nput from their respective managers, superintendents and departmentai 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 Eund 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 oFthe municipality, the City is required to conducts public hearing and adopt an annual appropriation ordinance each July. The appropriation ordinance provides the legal authority to allocate funds to specific spending activities and establishes the City's legal spending Ifmlt for the fiscal year. During the fiscal year it may be necessary, From time to time, to amend the approved budget (see Budges Amendment Process below). As a result, in October Following the close of [he fiscal year iz period (April 30r��) the City is required to pass a supplemental appropriation ordinance Yo amend the original appropriation ordinance to account for thes¢ budge[ amendments. Budget Amendment Process White budgets are prepared at the operational line item level and approved by Council at the fund line Item ]evel, budge[ amendments are brought before Council, per the Purchasing Pa!!cy and Procedures approved in 2016 and updated in 2020. Budgetary Can[rols 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 matte operational adjustments throughout the year as necessary. Any deviations From the fund budgetary amounts are discussed fn this document and, when necessary, soluttons are presented. Quarterly Financial reports are also transmitted to the City Council Yta a City Govndl Meeting Consent Agenda to ensure that the elected body is consistently apprised of the status of municipal revenues and expenditures. Pr¢paration to Achi¢ve th¢ Gov¢rnm¢n[ Pinanc¢ Officers Association (GFOA) Budge[ Award Beginning with the FY15/16 Budget, the City AdmiNstration 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 GPOA best practices on budgeting. Wh11e some of these Improvements are subtle, or related to unseen operational mediflcations, others are more visible -such as the redeye7opm¢nt of the budget to Its current form aimed at providing the reader with a more understandable and transparent document. 13 Process Timeline Monday, January 4, 2D21 Friday, January 22, 2021 January 25-Pebruary 5, 2021 Prtday, February S, 2021 February 8-March 5, 2D21 Monday, March 8, 2D21 Monday, March 15, 2021 Monday, April 5, 2821 Monday, Apri] 12, 2821 Apr1119, 2021 City Administrator, Finance Director distribut¢s instructions For budget preparation to Department Directors Department Directors submit budget requests to City Administrator and Finance Director - revenues and expenditures only (no narratives) City Administrator and Finance Director review budget requests with respective Department Directors Department Directors subm/t completed budget narratives to Cfty Administrator Preparation of the Drag FY21/22 Budget Transmit Drag PY21/22 Budget to City Council (operating hinds) City Council Regular Meeting -Discussion of Drag FY21/21 Budget (operating funds) City Council Regular Melling - D/scuss[on of Draft FY21/22 Budget (ali Funds) Final FY21/22 Budget (including narratives) transm(tted to City Council Annual Meetlng - PY21/22 Budget adopted by City Council 14 utv Clerk UII¢¢ of the e ntlministrator y Personnel The following table provides a summary overview of the staffing level of the municipality for the previous Rve (5) fiscal years and identifies the proposed stetting level For FY21/22. The increase 1n staffing levels in the General Pund from FY15/16 to PY17/18 of 15.42 employees was primarily due to the development of the consolidated 911 dispatch center (NSACOM). During this time period, ten (30) new dispatchers and one (1) civilian supervisor have been hired to fully staff this facility. Importantly, the City of McHenry is responsible for only 46.84b of NeRCOM personnel costs due to partnerships with the City of Woodstoclq City of Harvard and the McHenry Townsh[p Fire Protection District which, through center revenues, pay the remainder oFthe costs. Prior to this consol/daUon, the General Fund totaled 111.98 employees - 20.57 employees T_sss than FY07/O8 when measures were taken to reduce staffing due to [he recession. For FY21/22, overatl staffing has been reduced by a total offour (4) Full tlme employees due Yo retirements/attrition and departmental reorganizatlons. staffing identified in the Recreation Center and Water and sewer F1mds is financed by revenues generated by these Funds. cenerat Pnna Adminis[ratlon 1.00 4.00 3.00 3A0 3.00 6.00 6.00 6.00 GOO Hlected Offlclals 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1.00 1.00 Cammunl Develo man[ 0.60 7.00 7.50 7.50 6.50 7.90 2.90 5.60 5.50 Pinence Da artmen[ 0.00 S.00 6.00 5.00 6A0 5.00 5.00 4.60 4.50 Duman rseannrw De a,[ment o.00 z.00 z.ao z.00 l.00 o.o0 6.00 0.00 0.00 Rconomle oe.elnpmen[ De ar[ment o.00 a.00 z.so z.00 3.00 0.00 0.00 0.00 0.00 Police De ent 1.00 63.7s 54.76 54.75 52.76 52.75 61.76 61.BB 60.88 XRRCOM Olsm [cb 0.00 23.26 23.25 23.25 22.'d5 22.26 12.25 0.00 0.00 Pu611c Wort¢ Admin{stra[Imt 0.00 3.00 3.00 3.50 3.60 3.90 4.50 2.00 2.00 Public Warl[s Streets 3.00 14A0 19.00 19.00 19.00 19.00 I8.00 10.00 19.00 Pa [9[s and Recreation 0.00 10.96 1095 SOSO 9.Z5 11.00 11.00 13.00 12AU Total Cenm�el Pvnd :6D '� 124.05 120:25 190L50 12G25 129.40 116.40 111.90 130.98 Recr¢a[Ion Cm¢ei Pund 0.00 2.OS 2.OS 2.00 2.25 1.00 1.00 0.00 OAO InCormatlon T¢cltnolagy vane O.00 2.00 2,00 2.OD 2.00 2.00 2.00 2.00 2.00 wacer ana sewer Pena wam.�oroiaon oso s.00 sso sso sso sso sso 4sa 9so w.aewater Dwlal¢n v6o 9.oa e.00 aoo e.ao 9.0o moo zoo lo.oa unll Dmiam[. a.00 zoo a.00 a.00 s.00 e.00 9.00 9.00 0.00 TUtti1 - afar nn . - (- 21:0 _l"! '--¢3:60 "-?a _. 23.60 22.50 21.60 19.50 39.60 To[ OI o Mc c 4A0 149.B0. 153.80 1 G.00 15 00 2.90 140A0 133,4 198 O Po ulaHon 26992 26992 2 992 2 992 26992 26992 26992 26992 Hmployees per 1A00 Populp[bn 6.55 5.90 SAe 6.69 5.66 6.22 9.95 4.91 16 Fund Structure Overview The accounting system and the budget appropriation process are structured according to the basic guidelines established by the Government Finance Officers Association (GFOA) of the United States and Canada. The Format includes the basic Funds and Fund types which follow. The Ciry's governmental funds are as follows: G¢neral Fwad (lOOs) This fund accounts For all transactions of the city that pertain to the general administration of the city and the services traditionally provided m its citizens. This includes Administration, Elected OFFicfals, Commun7ty Development, Finance, Police, Public Worlcs Administration, Streets, and Parhs and Recreation. Special Revenu¢ Funds (200s) These funds are utilized to account For revenues derived From speciftc sources which are usually required by law or regulation to be accounted for as separate Funds. Por the Clty of McHenry these Funds Lndude the Tourism Fund, Pageant Fund, Band Fund, Civil Defense Fund, Alarm Board Pund, Audit Fund, Annexation Fund, Motor Fuel Tax Fund, Developer Donation Fund, and Tax Increment Fund. Debt Service Pund (300) This Fund accounts for the accumulation of revenues Fm• 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 oFcapital facillHes or other major fixed assets. Th¢ City's business -Type funds include the Following: Bnt¢rprlse Funds (SODS) These funds are utftized to account for operatto ns and act[vities that are Onanced and operated in a manner similar to a private business enterprise, and where the cost of providing goods and services to the general publfc on a continuing basis is expected to be recovered prlmar(ly 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, publfc policy, management control or accountability. Enterprise Funds For the City Include the Waier and Sewer Fund, Capital Development Fund, Utility Improvements Fund, and Marina Operations Fund. lnt¢rnal Service Funds (fi00s) These funds are established to finance and account for services and/or commodities furnished by one department or agency [o other departments or agencies aF the city. The Internal Service Funds oFthe City are the Employee Insurance Fund, Rislc Management Fund, and InFormation Technology Fund. t� The City's other funds Include the following Fiduciary Funds (']005) These Funds are used to account for resources held For the benefit of parties outside the city. The fiduc[ary funds of the city are the Hmployee Flexible Spending Fund, Developmental Bscrow Fund, Retained Personnel Fund, Revolving Loan Fund, and the Police Pension Trust Fund. Accounting for the financial activities of the Ci[y and the budget appropriation process are also presented according to classlficattons required by the State of Illinois. R¢venues are cred/ted io 9ndlvidual fund typ¢s white expenditures/expenses are r¢corded 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 die operation of the government and assures the general administration of the municipality. AcHvltfes 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 Euncdon is to protect and promote the health, welfare, saf¢ty and quality of life of McHenry Citizens, property owners, visitors and commercial Interests through the development and implementation of the C1t�s adopted ordinances and policies. Planning and development actvitfes are also included within this Function. Finance This function applies modern financial managementpracttces tc ensure that the City is able to deliver services effectively and efficiently on a susta[ned basis. Actvities included in this fiinction are reporting financial transactions, billing and collecting money, accounts payable, managing cash and investments, prepar[ng the annual financial report, and developing the budget and financial forecasts. Pubhc 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 oFpersonal security From external events. Public Works This Function provides for safe and well -maintained infrastructure For the City. Activities included in th/s function are public works admin[stration, roadway maintenance, snow and ice control, street clean[ng, traffic control and engineering. Parks and R¢creation This function promotes the general well-being of the C1ty 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 accumulat/on of resources For and the payment of principal and interest on long-term debt of the City. 1s Capital Projects This function provides For the acquisition or construction of major capital facilities or equipm ent for the City. Busin¢ss-Type ACHvl[i¢s This Function includes activities of the Clty that are financed In whole, or 1n part, by fees charged to external partles For goods and services. These activities are accounted for as enterprise funds and Include the Water and Sewer and Marina Operations Funds. 19 Chart of Accounts Overview Punds 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: Revenu¢s 3010 Property Tax Collectlon -Amount collected in taxes assessed on real estate. 3020 Property Tax Collectlon -Road J;<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 ba-idgas within the City. 3030 Property Tax Collectlon - Polic¢ Protection -Amount collected In taxes assessed on real estate that Funds a portion of police protecton expenses. 3040 Property Tax Collectlon - Retlrem¢nt -Amount collected in taxes assessed on real estate that tbnds a portion of retlrement expenses. 3050 Properly Tax Collectlon - Lfab/1tty Insuranc¢ -Amount collected In taxes assessed on real estate that Funds a portion of liability insurance expenses. 3051 Property Tax Collectlon - Poltce 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 Clty to replace money that was lost by local governments when their powers to impose personal property taxes on corporations, partnerships, and other business entitles was taken away In 1979. These Funds are limited to use For retirement funding. 3120 Stat¢ 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 Hom¢ Rul¢ Sales Taxes -The state collects a O.S% tax on a seller's receipts from sales of tangible personal property for use or consumpt[on that is distributed based on sales in the City. This home rule sales tax is not charged on sales aF 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 ]ncome Taxes -Amount collected in taxes imposed on F[nanclal income generated by all entities w[thin 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 io 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 gar games. 20 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. 21 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. 22 3735 Legal Fees - Reimbursements by developers for expenses paid for legal fees in the Retained Personnel Fund. 3740 Fees - Developers - Miscellaneous - Reimbursements by developers for miscellaneous expenses such as recording fees in the Retained Personnel Fund. 3745 Gravel Mining/Annexation Agreement - Amount received per the annexation agreement for the gravel pit within the City, 3750 Refunds - Developers - Amount paid by developers for a retained personnel deposit that is over and above the expenses and will be refunded to the developer. 3760 Received from Developers - Amount collected 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. 23 3882 Reimbursement - Miscellaneous - Reimbursement for expenses for city services provided such as, school resource officers, traffic control, snowplowing, etc. 3885 Reimbursements - Property Insurance - Insurance payments for property damage within the City. 3890 Miscellaneous Income - Revenue that does not fit into other categories such as handicap placards, lien fees, collection fees, adjudication court fees, etc. 3915 Bond Interest Rebate - Interest rebate issued to the City from the Department of the Treasury Internal Revenue Service for Recovery Zone Economic Development Bonds and Build America Bonds. 3920 Sale of Fixed Assets - Proceeds from the sale of municipal owned fixed assets. 3969 Transfer - TIF - Internal Fund Transfer from the TIF Fund to cover debt service fees. 3970 Charges for Services - Internal Fund Transfer 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. 24 IIxnenses 4030 Salarles -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 Salarles -Regular Par[ -time -Salary expense For employes who work less than 40 hours, bv[ are employed thiroughout the calendar year. 4050 Salarles -Regular Overtime -Salary expense paid to non-exempt non -sworn employees at on¢ and one-halF[imes or two times the employee's regular hourly rate for all hours worked in excess of forty hours per week. 4055 Salaries -Regular Sworn Ov¢r[Ime -Salary expense paid to noii-exempt sworn employees at one and one-half times th¢ ¢mployee's regular hourly rate for all hours worked 1n excess of Forty hours per week. 4060 Salarles - Snow Removal Overtime - Salary expense paid m non-exempt non -sworn employees at one and one-half Hmes or two times the employee's regular hourly rate For all hours worked In excess of forty hours per week for snowplow[ng. 4080 Salaries - Car¢er Ladder -Salary expense paid to sworn police department employees far on -call and Sny¢stigator 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 8c Commissions -Salary expense for th¢ Mayor, Council members, the City Cleric and the Planning and Zoning Commissioners. 4310 Healtb Insuranc¢ -Bxpenses For employee group medical Insurance premiums. 4320 Dental [nsurance -Bxpenses For employee group dental insurance premiums. 4330 Life ]nsuranc¢ -Bxpenses for employee group IlFe insurance premiums for city provided coverage at $30,000. 4340 Vision Insurance - Hxpenses for employee group vision insurance premiums. 4410 Contribution -PICA - Th¢ employer contribution of Social Security and Medicare, which is currently at 7.65^/0 of eligible wages. 4420 Con[rlbuHon IMRF -The employer contHbutton oFIMRP for all employees covered under the IMRP program. 4430 Contribution Police Pension -The amount provided through property tax collection For the Police Pension Fund. This amount is determined by an actuarial stuc),y conducted on an annual basis. 25 4510 Uniform Allowance - Expenses for uniforms and personal protective equipment provided for those public service employees required to wear uniforms while performing their jobs. 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. 26 5375 Repair & Maintenance - Equipment - Expenses for routines maintenance on municipal equipment. 5380 Repair & Maintenance - Utility System - Expenses for routine maintenance on municipal utility systems. 5410 Dues - Expenses for membership dues for various professional organizations. 5420 Travel Expenses - Expenses paid for travel related costs such as mileage, tolls, 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. 27 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. 28 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 29 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. 30 11 [ A R i O! � X[ I O Y X 1 V[ H � �</ �12y Fiscal Year 2021/2022 Annual Budget Summary of Revenues 81r Expenditures -All Funds 31 Summary of Proposed Revenues -All Funds B O E F t - 2 3 To[al Nat 4 S Oanefal Funtl 24 tT8 312 $830 289 23 64B D23 6 T H aclalRwanua Funtle B Bentl Funtl O O O 9 Clyll Darensa Fund 6 000 a 000 O t0 Alarm Boartl Funtl 2t0260 O 2t0250 tt AUCil Fund 426T0 t8 t44 28420 t2 Annaxellon Fund 32S t60 O 326160 t3 Mobr FYal Tax Fund tit9696 O tit3 B96 t4 Locel Malor Fual Tex Funtl 312000 O 3t2000 t6 Deyelo ar Donellons 80000 O BO OOq 16 Develo of DoneUona Parka 36S T60 O 363 i60 tT TIF Funtl T80000 O T80000 to P ant Funtl 4000 O 4000 19 20 21 Tourism FurM Total Special Ravanua Funtle SGff2fr4 3.9B2,BBB 4 22.144 ]5525.B 3.940,62t 22 Ca 1[al Pro ac[ FunAs 29 Recroellon Canter Conetrucllon Funtl 3T0235 1YI 986 489250 24 9 eclat Sarvlce Aree WtA O O O 26 8 ec1a19arvlce AroO #4 t8 t29 O tB t29 28 Ca I<allm royaman[a Funtl 8600 O 9600 2T Locel 6treets Im roy ants O O O 28 29 30 To[al Cepllel Equlpmenl Funtl Capltel Project Funds B 801,868 Sl 111,906 II 4BB,BT3 St Deb[ 9ervlca Funds 32 33 39 Total Dabl 3arvk:a Fund Dab[ Sarvlw FYntla 22 c`�yO 920 2,960,32H 2�60_,..26 2,3G0,328 - II O 36 Pro He[a Funtle 3B Publlc Warka - Wa[ar 2 T00 620 O 2 T00 620 3T Publlc WOMa - Wastewater 6 62H 38B O 6 B2B 368 SB Publlc Works-UIIIII t01i HTT 1Oti HTT O 38 Ca lal Davaro Tent Funtl 9Tt 6O0 O 3Tt 600 40 MerinO O arallona Funtl 26 600 O 26 600 4t 42 93 Teter Ullllly Improyemanta Funtl Proprlatary Funtle ]jL216 9,98t,980 t6.T1fi 1,033.692 2 soo 0.928,388 44 Internal 8arvlca Funtle 46 Rlsk Man and Funtl i40 tT6 i16 tT6 26 000 48 Inlormatlgn Tacbnsls FuIW 8T223t BT223t O 4T Total Heallb Inwrenrs Funtl ln[srnal 8arvlce Funtle i 6'J�B 2SJ 6.132,Bg3 2 9BD.TTt 4,BBH,t77 j�.j' $qff$ 684,48E 48 49 60 Fltlucla Funtle bt Metlleal Flenlbla9 ntlln Funtl 40000 O 40000 62 RawNl Loan Funtl BOO B 900 33 Pollca Panaron Funtl 9 t 36 308 B68 306 2 480 000 64 Oevalo and Eavow Funtl O O O 66 To[al Relalnetl Personnel Funtl Fltluclary Funtle T6 000 3Yb42B0 4 $¢$-3pfl Z5.B11Q 2696.900 66 BT 68 32 Comparison of Budget vs. Proposed Revenues -All Funds t 2 A � _ __ _ B C O E 3 Pacant 4 2020/2 Ch S Oenaral Fund 24 B96 ]]B $24 t]B 912 5620 4BB -2.1% B ] 8 aclal Ravanua Funda B eana FDna t2 000 o t2 000 -too.o% 8 CINI Oafgnaa Funtl B 000 B 000 O O.O% t0 Alarm BBartl Funtl 206000 2t02H0 2250 tA% it Auall FurW qO t02 426]O 2g68 62% 12 Annaxallon Fund 930000 323 t60 4.BHD -1.6% t3 MOIor Fual TaX FVntl 1'14t tOB t]t3 B93 6]2669 60.2% t4 LOwI Ma[or Fual TaX Fund O 3t2000 3t2000 O.O% 15 Daval err DOnetlorla 80 000 BO 000 O O.O% tB Davalo err DonetWrle. Parke t49000 3S3 TSO 204 ]60 t9].4% t ] TIF Funtl ]02 000 ]BO 000 TB 000 t t.t % t B Pa sent Funa 4 000 4 000 O O.O% is L`1 1 Tourlam Funa Tolal Spacial Ravanua Funda 226.000. 2.0]B,20B 16S.2H4 5,962,B6H 1ZD.Z501 t,O84,46] YLS% 9].]% 22 Ca Ital PrV ac! Funtla 23 RacreatlOn Cantor ConBINCUOn FUntl >]6686 6]B 23H 100960 -26.]% 24 S aclal Sarvlca Aree 1FtA O O O O.O% 26 S aclal Sarvlca Area #4 18 84T t6 12S ]24 -4.3% 2H Ca Ital Im anls Funtl >O 4]1 9 HOO 8p B]t -86.6% 2] Local 31raa1s Im rovamanle O O O O.O% 28 29 30 Cepltal Equipment Fund TOtal Capital Profac[ Funda 2n mn 09t,B03 II BOt,866 (Z@-pQQy (200,046) ys$gfi -32.6% 31 Dabt Sarvlca Funda 32 Dabt Sarvlca Fupd Tata1 Dabt Sarvlca Fundc lOH].B]O t,08],BTO 2 960 826 2,960,326 1 282 B66 t,2B2,BHB j]B.t � 110.t% 33 34 36 Pro riots Funda 38 Publlc Woara -Water 2 6]2 806 2 ]DO 620 2] T16 1.0% 3] Publlc Worker-Waslaweler 6B>B 899 6826366 4B 4]t -0.B% 38 Publlo Woara- UIII t 04> 410 t Ot] 8]] 2B 633 -2.B% a9 Ca Ilal Davalo moot Fund 9Tt 600 9]t 60D O D.O% 40 Marina O Bmllona FVnd 25 HOO 26800 O O.O% 4t Ut1111y 1mprovemanta FVnd Total Prppriatary Funtla 41.BaZ t0,036,00t ]B,p,]$ B,B61,98D _ (]3,B2t) j$¢^f -0A% 42 43 44 Intarnnl Sarvlca Funtla 46 Rlak Mene a ant Funtl ]qq 291 ]4D t]6 4 116 -O.6% a6 Informallon T chnolo Funa B98 SB8 B]2 23t 24 366 -2.T% 4] 96 49 Haellh lnaurapca FVnd Total internal Sarvlca Funda 3.8392]9 q,B80,168 - _ 6,t32,B43 �@ 162A89 64% 3.t% 60 Flaucle Funda 6t Em Ip ¢ Flexible 9 andln FUM BO 000 40 000 20 OOO -33.9% 62 Ravolvin Loan Fund t 260 BOO 9S0 -2B.0% 63 P011ca Penalpn Funtl 9921 ]42 3 t3B 308 ]H343B -20.0% sa Daaam mom Eaorow Fnna o D o o.o% 65 Ralalnetl Paraonnal Funa Total Fiduciary Funtla $¢-QQp 4.a6].892 ]y-DDD a 2sa2D6 Q (eDi>8Bf �@% 6S 6] 68 33 Summary of Revenues and Other Financing Sources -All Funds 2021/22 Budget Revenues by Source Propoty Taxes Sales Taxes 22% O% I nt¢rezt Income 9% Intergovernmanml LI<¢nz¢s 6 Fl nes Rwenue 3% lU% 34 Summary of Proposed Expenditw-es -All Funds 2 B - o Tolel Nel 4 b t3ana�al Fund B Atlminb I BB 94639 943 >66 Elaotatl O B BOB 3» B Ca ant 8 4>BBB 666 Flnanea Oa a t 903 q>O 6 Human 2b0 62t t0 BB9 Economla Oavalov a qO2 B22 tB q>B Ponca Commlacbn B B O 13 ollca Oa tbnanl t0 BOB 33O B 62B 3>O 19 slob pa BmeM 20>B 604 2 6BB 9>3 16 Publlo Wotka-Atl InleOallan 4 6BBB 9286 3930t4 16 Publlo Wot e-SYaata 93Bt B>B 109928 32B22g6 t9 Total PeMv vntl Raouralbn Oanatel Rund 26:4».t B> 2G9_8.g4 9.299.962 22.t62.>36 t tB aolel Ravanua Run v Bentl Funtl O 00 Glvll Oafanaa Fu�M O Ab�m Boanl Fu d tt2000 O t12 O00 Autlll Funb q6 t26 qb t2b .anon Bna sto 000 too 000 26 Mo or Fu Funtl 6 t BB2 926 2> Lacal Mob I Tax FUM 000 600 000 za oa..alo ar co a o 0 oa�alo ar o6n.ne a aas boo >tq H96 o 222 936 t aa2 4B2 6O0 TIF Funtl Pa aenl Fund 9900 BOO 33 34 TOLI Toutlam FunO Hpaclvl Rauvnua Funtla y'ng@f1p 6.24B.9B6 88.IIIIII 63t.336 A6]_IIyn q.916.t b0 38 Ce Itel Pm sot Fun v B Racma to C onelmolbn F b 6 1B0 B2> 4t 630 8 adel a A O O H ade19erv1u A`vv 16 Tt6 t6>t6 c ud Im and n to ooB o to 00 si t ab Immw.. em. o 92 93 Total c.pll.l EawPmanl Cap1Yl Profvot Fundan n T6B.OB0 n 206.6g2 n 66L69B qq �abt 8arvlaa Rundv q Teal Oebt Harvlw Fund Oabt Barvloa Puntle _ 2.360.32 jl O 23b0.32a P ama 4B o Wotkn- WaMt Ot6 tt2 1 16B 040 t B6B >2 otka- Weetvwab� B 6t0 9t3 BB6 90B B B39 699 81 Publlo Wo�ka - Vtlll Ot> 30t O Ot> 90t 62 Ca Ila a ant Funtl t60000 t60000 O 3 Mvtlna O a�atlone Funtl O q3 000 Tetvl V BIIIY ImP�oaamanla Funtl proptlatay Rundv lynynn 10.0D6.92B n t.BB6.0OB ]nOynn B.BOO.3t> a Funtla Rlah M na am nt Funtl Bq3 H03 g2t O Inm�mallon Taahnolo Fund p 2290 B6II tOt63>3 60 Total Hea06 In ca Funtl lntamal Hervlca Fundv 6.gB6.BBB 2B.3B0 6.46B.60B wand. auibla 8 eMl Funtl 40 000 q0 000 69 n Funtl O O BB Pollca Panalon FunO 2BB O>O 29962t1 B> Vavalo m w FUM O O BB Fltluolary RaWlnatl Pa�vonnel Fund puntla O B >1 2 614 2BB q O> 35 Comparison of Budget vs. Proposed Expenditures -All Funds �0 - SN•B9��OS�I'JS� O E.no OBB e..a BBI mztree nu Gann-. © ��-�-�� TOIY e1e1 «ea eroa 6 e C Ww+ n Pe.c Fun minlNMlen 24 2109 ]B 6BB 2OB6 2B16 21>2D3 -By6% D09 - 0. <X Gem t B19 M6D - 16X Flnenu De Mmen 1 OB6 tg02922 BO3.9 - 16 n Reenuwe+ and omlc Vevale O.nent 1D 299 >42 tOa tDO O.00N. Pellu Comml+clon D969 B69 O PoI sloe eX enl 6 4 D is 91D to CI • b O man 6 266 242E 604 290 B9862 H.t>X pub lc Worke-ADM 1 . H1> 486 D>B 3>D6B 3.18% O.D9% Publln Wa.ha- Bt] 2 Pehe eM ReewYlon TOM10en+M Fund L94P.GS26.GV.4]fZ 30.948ReB 2 Ai>.1 B> Li9.]Vh] 9.80D �mx 18X 39 H e elel Mvenu Fun 14 600 14 6O0 0.0094 3g CIWI Celenes Fund 6 O 6800 OfID% Plervn He+.d Fu 93000 30D0 O O 1.>9 swan + eoD s uD t :o aA 3>.46% -,na Ion F9na ass DOD aIO DDD fiord Mda. Fue ax Funtl 30>B10 3926 leoaoo DBq 616 B.B>X Local Mmm a az POntl 'oo P 1 lox oval Im.+ O a loo oho O�oO -a na lnne P e ga2600 1992600 B60 O 1M.1T% � TIF Futl�O 3B9 B98 >1q D98 q 3 OOD t69 3D% eni Funtl _ 96 cuaem FunJ Tole fipedel Revenue Funtl+ .ti].4104 3.BOB.46O Y56.4ME 0.3ABg06 tZ89001 2A8T.086 _eu aeu .99% 99 1 a Pro eut Guntla R veal On Cenmr Canelacllon >B20B3 >928860 1> 0,193 B% 41 arvlce Pma X1P O 0.0014 93 8 e ce P.ce M9P elellmM DD4> 16>16 -B.>3X a I+Fund 66BB ODO 6B0 BOAO% q4 Lac+6l.eM lm �ea�emenle Fnntl Me16 PI1e1 Pvulaenl FunEatl eB4.tt8 6epe0 (136.WD) -1130% TCtDebl6ervusauM eld Oebl6eMee FunYe ].BHH.B18 1. .9D0.926 ].i60•'1<2 1.2BOA0> ]34.41'%6 t16.B4% 2 Pw . ela untle pu011e Wo.W- aMc 9BB 998 8112 'Die 2>1B4 Bl% ±.m PDem we.B+-worowero. a us Bw e3 mo pke-VI 1 910 t01>901 2D 10D -3A0 C+11 me.D Funtl 16o 00O is OOO OAO% eMeO awl en+ uM 99000 49000 O 0.00 n vlmpw.wm.nl. s asosus asaaon syma 9 TOI+IPwyaeMry FunM tO.D>0.601 10.BB6.93B 216.926 .02% O I+n.el Harvlu N�+ 631 u mellm TeUn 102239D 9110 40 >9% Mee1161n+u.enw FuntlDF 6 TgallnWnel Ba.wee Wntl+ SeO9.i80 .1BB?>O 6-gip AB6.e69 3B8.g9B �D% 1X B Funtla B9 F Em a Metllul Fl b s enaln uR M9 �HAH9% M vel +n Funa o1a 0.00% PoIIU Pen+bn u eBB 366 >D>Q Op >2 Relalnetl Perwne�I Funna � � 9 Tmel Fltluelery Guntle 3A16.A8 3.614.200 O>.6]9 4.01% 36 Expenditures by Function - /1Il J=ands i General Go�ernmant =_ 3,067,115 3,593,036 3,652,335 59,299 1.65% Public Sefaty 14,244,958 14,833,]41 13,615,307 (1,218,434 -H.21% Public WOr/cx 12,191,917 12,664,365 11,900,579 (763,']HB) -8.03% Culture and Recreation 2,845,632 3,235,359 3,063,941 171,416) -5.30% Capital ProJacte 3,664,672 2,626,982 6,100,653 3,473,671 132.23% Comm. & Econ. Day. 1,602,739 1,515,442 1,600,009 16,433) -1.02% Debt SaMca 1,657,866 1,089,919 2,350,326 1,280,407 115.64% Olhar 4,414,746 4,305,780 4,4H1,136 175,356 4.07% Total 43,686,144 43,H64,624 46,664,2H6 2,799,662 6.38% other 2020/21 Budget 10% al, General Expenditures by Function Government Debt service 8% 5% Ccmm. ffi Ecan. Dev. a` 3% \ Public Satcty Capital Projects 29% 13% Culwre and ReCfea[IOn �% Publlc works 25% 37 CI"1'Y Op ��,%W .1� ��c�-�-�e-� �r�� oo� o Fiscal Year 2021/2022 Annual Budget General Fund Revenues, Expenditures 8z. Fund Balance Summary ,., General Fund Revenues, Expenditures 8t Fund Balance Summary General Fund Overview The General Pund represents the core revenue and expense fund for municipal functions. General Pund Revenues are comprised of Intergovernmental sources such as Property Tax, Sate Sales Tax, Local Sales Tax, State Income Tax, SW [e Replacement Tax, State PuR Tabs, Inter Tradc Wagering, State Communications Tax, and State Grants; Local Sourc¢s such as Franchise Pees, 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 Oflicials (100.02), Community Development (10 D.03), Finance (100.04), Human Resources [100.05), Economic Development (100.06), Police Commission (100.21), Folic¢ (100.22), Police D/spatch (100.23), Public Works -Administration (100.30), Public Worlcs-Streets (100.33), and Parl<s and Recreation (100.41). Please referee c¢ the spreadshe¢tfound at the end ofthts sect(an Lttled "General Pund —Revenues l3xp¢ndttures and Pund Balance Summary"for the following discussion. C-enerai Fund Revenue. Hxpenditure and Rund Balance Summary In summary, FY21/22 proposed General Fund Revenues and Expenditures reflect total revenues of $24,178,312 (a decrease of $520,466 or 2.1% From the FY20/21 Budget amount), and total op erattng expenditures of $23,963,697 (a decrease of $174,191 or 0.724/0, less capital, from the FY20/21 Budget amount). This reflects a net d[fference [revenues over expenditures) of $214,615. Importantly, this means that the proposed General Fund Operating Budget, as presented, is BALANCHD. While COVID-19 has made many revenues volatile over the last year, the City has been Fortunate to see recovery in many revenue sources. While specifics will be detailed in the discussion that Follows, the primary reasons For decreases in revenues relate to projections For Local Sales Taxes (a decrease of $224,509), the projection For Video Gaming revenues (a decrease of $50,000), Fines and Forfeitures (a decrease of $114�,000), Charges for Services (a decrease of $131,950] and Reimbursements related to charges for dispatch fees and internal fund transfers (a total decrease of $161,522). These are offset by an increase to Sales Tax Revenues, which is a pr[marily tied to Use Tax Revenues from online sales (an increase of $141,862). Also, Income Tax Revenue are estimated to increase ($159,253), but this will be discussed in more detail later as this revenue source will have to be watched closely as the State has proposed lowering this distribution by 10%. [n regards to expenditures, Personnel costs are proposed to decrease by $1,591,344 (8.799k) due primarlty to the movement oFa large portion of Police Pension Contribution expenses to a Transfer Bxpense account due to the Issuance of the Pension Obligation Bond. If this Pension Bond Payment was not moved out to a transfer account, the Personnel costs would have increased by $75,953 (0.42eh) over the 20-21 Budgeted amount. It should be noted that a portion of the Police Dispatch Center costs are offset by General Fund Revenue increases in the Form of reimbursements (Row 22) From dispatch partner agencies and as customers. Notably, FY21/22 General Fund Expenditure proposed Contractual costs are $153,180 (6.79%) lower than FY20/21, Supply costs reflect an increase of $13,275 (1.38%), Other costs decrease $81,932 (7.03%), and Transfers reflect an increase of $1,638,990 (99.0%). Finally, the FY21/22 General Fund Expenditures, as identified in this attachment, do not include any transfers for Capital Improvement or Capital Equipment. As discussed as part of the Capital Improvement Program process, Capital Improvement or Capital Equipment projects implemented in FY21/22 will be funded through the General Fund Balance. All General Fund Capital Projects that are identified for funding in FY21/22 are discussed on pages 18 and 19 of this memorandum. Carrying the General Fund Revenue and Expenditure estimates through the end of the fiscal year (April 30t"), it is projected that the total General Fund Balance will be $8,186,345 (Column P, Row 43). As defined in the Fund Balance and Reserve Policy, the estimated required 120-day General Fund Balance Reserve would be $7,946,826 and so the amount projected is approximately $239,519 higher than the required General Fund Balance. As will be identified, the projected General Fund Balance will be reduced by capital improvement projects to be funded through the General Fund Balance so that is why there will not be a transfer made to the Capital Improvement/Equipment Funds this year (Road Program, Police Facility Improvements, Police Locker Room Expansion, Parking Lot Improvements, Police Vehicle Equipment, Parks Ball Field Machine, Downtown Streetscape Engineering (25%) and Barreville Road Culvert Wingwall Repair). Further, a reminder that the FY20/21 Estimated General Fund Revenues and Expenditures are that, estimates, and economic factors or unforeseen expenses could change these dollar amounts before the end of the current fiscal year. General Fund Revenues General Fund Revenues are derived from 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 41 threats. Utilizing this philosophy, the City Administration then considers past revenue performance, current economic trends, local economic conditions, and economic forecast models developed by the Illinois Municipal League (IML) for use by local governments in developing revenue projections for the purpose of budget development. FY2O121 Budgeted Revenues (Column 0) In FY20/21 total budgeted General Fund Revenues were $24,698,778 (Column 0, Row 26). Of this, $4,950,359 (20%) was from Property Taxes, $8,071,089 (32.7)% was from the City's 1% share of the State Sales Tax, $2,986,908 (12.1%) was from the .7S% Local Sales Tax, and $2,834,160 (11.S%) came from the City's share of the State Income Tax. Revenues derived from these four (4) sources were budgeted at $18,84.2,516 or 76.3% of total General Fund Revenues. Of the remaining $5,856,262 (23.7%) in budgeted General Fund Revenues, $1,235,489 (S%) were from Charges for Services, $2,255,773 (9.1%) from Reimbursement for Services, $426,000 (1.7%) from Fines and Forfeitures, $238,000 (0.96%) from Licenses and Permits, $340,000 (1.4%) from Franchise Fees, $600,000 (2.4%) from Video Gaming, $280,000 from Telecommunications Tax (1.1%) and the remaining $481,000 (1.9%) came from all other sources combined. FY2O121 Estimated Revenues (Column Q) The following estimated revenues are based on 10-months of actual revenues and then projected through the remainder of the fiscal year (April 30, 2021). Unfortunately, in some cases this estimation is more difficult than simply dividing the 10-month actual by 10 and multiplying by 12 because of when specific revenues are received. Further, FY20/21 Actual revenues will not be known and confirmed until approximately 2-3 months (June -July) after the close of the fiscal year due to the timing involved with the receipt of state -shared revenues and, ultimately, the completion of the annual audit in September/October 2021, 4- 5 months into the new budget year. At this time, estimated General Fund Revenues are projected to be $24,655,772 (Column P, Row 26) or $43,006 (0.17%) lower than FY20/21 Budgeted revenues of $24,698,778. This reflects an estimated increase of $958,009, or 4%, from FY19/20 Actual revenues of $23,697,763. Notably, FY20/21 Estimated Revenues, when compared to FY19/20 Actual revenues and FY20/21 Budgeted revenues, highlight the following; • (Row 10) State Sales Tax revenue is projected to be $125,618 (1.6%) lower than budgeted and $134,648 (1.7%) higher than the FY19/20 Actual amount. • (Row 11) Local Sales Tax revenue is projected to be $183,805 (6.2%) lower than budgeted and $160,245 (6.1%) higher than received in FY19/20. It is important to note that in July 2019 the Local Sales Tax rate was raised by 0.25% and FY20/21 is the first full year with this higher rate. 42 (Row 10 + Row 11) Combined, total Sales Tax revenue is estimated to be $309,423 (2.8%) lower than budgeted and $294,893 (2.8%) higher than the FY19/20 Actual. State Sales Tax have shown significant signs of an economic recovery since the beginning of COVID-19, but are not increasing at rates seen prior to COVID-19. Also, Local Sales Tax revenues do not include the sale of licensed or titled items - such as cars, boats, motorcycles, etc. As such, while the economic recovery and resulting increase in the sale of licensed vehicles had a positive impact on the City's portion of the State Sales Tax, this aspect has had no impact on Local Sales Tax revenues. • (Row 12) State Income Tax receipts are estimated at the same amount as budgeted and $178,552 (6.7%) higher than FY19/20. • (Row 17) Video Gaming revenues are estimated to be $429,026, or $170,974 (28.5%), lower than budgeted and $104,321(19.6%) lower than FY19/20. • (Row 20) Fines and Forfeitures revenues are estimated to be $165,478 (38.8%) lower than budgeted and $88,553 (25.4%) lower than FY19/20. • (Row 21) Charges for Services revenues are estimated to be $327,822 (26.5%) lower than budgeted and $283,450 (23.8%) lower than FY19/20. • (Row 22) Reimbursements for services revenues are estimated at $1,101,360 (48.8%) higher than budgeted and $1,284,740 (62%) higher than FY19/20. This is due to the CURES/CARES Act reimbursement for COVID-19 eligible expenses. • (Row 23) Interest Income revenues are estimated to be $120,000 (85.7%) lower than budgeted and $132,344 (86.9%) lower than FY19/20. In summary, FY20/21 Estimated Revenues are projected at $43,006 (0.170/0) lower than budgeted primarily due to State and Local Sales Tax receipts, Video Gaming receipts, Fines and Forfeitures, Charges for Services, and Interest Income. When compared to FY19/20 Actual revenues, total General Fund Revenues increased $958,009 (4%). FY21122 Proposed Revenues (Column R) FY21/22 Proposed General Fund Revenues represent a net decrease of $520,466 (2.1%) from FY20/21 Budgeted revenues and an increase of $480,549 (2%) from FY19/20 Actual revenues. Highlights of changes to General Fund Revenues proposed for FY21/22 include: • (Row 9) Based on Council action to freeze the property tax levy, Property Tax revenues are estimated to be flat over the FY20/21 budgeted amount. • (Row 10) State Sales Tax revenues are proposed at $8,212,951, $141,862 or 1.76% higher than FY20/21 Budget. This is primarily due to the increase in Use Tax from online sales. 43 (Row 11) Local Sales Tax revenues are proposed at $2,762,399, a decrease of $224,509 (7.52%) from the amount budgeted in FY20/21. • (Row 10 + Row 11) Combined State and Local Sales Tax revenues are proposed at $10,975,350, a decrease of $82,647 (0.75%) from the FY20/21 Budget amount. (Row 12) State Income Tax revenues are proposed at $2,993,413, an increase of $159,253 (5.62%) from FY20/21. Regarding State Income Tax revenues, please note the following: o The Governor has proposed a 10% cut to the Local Government Distributive Fund (LGDF) which includes the Income Tax distribution. This would mean Income Tax revenues would decrease by approximately $299,341. o The Governor has also proposed to close or modify corporate tax loopholes which will provide local governments with additional LGDF disbursements and should offset the 10% decrease. o Staff will continue to watch these developments closely in case expense adjustments need to be made in order to offset the decrease in revenue. • (Row 14) State Telecommunication Tax revenues are proposed at $270,000, a decrease of $10,000 (3.57%) from FY20/21 due to declining revenues over the last few years. • (Row17) Video Gaming revenues are proposed at $550,000, a $50,000 (8.3%) decrease from FY20/21 Budget amount. • (Row 20) Fines and Forfeitures revenues are proposed to decrease by $114,000, or 26.8% from the amount budgeted in FY20/21. • (Row 21) Charges and Services revenues are proposed to decrease by $131,950, or 10.7% from the amount budgeted in FY20/21 due to charges for parks and recreation programs as well as internal fund transfers. • (Row 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 $161,522 or 7.16%. • (Row 23) Interest Income is proposed to decrease $120,000 (85.71%) due to declining interest rates. In summary, FY21/22 Proposed Revenues are $520,466 (2.11%) lower than budgeted in FY20/21 and $477,460 (1.9%) lower than FY20/21 Estimated revenues. The primary reasons for the proposed decrease include a decrease in the City's Home Rule 44 Sales Tax ($224,509), a decrease in the Telecommunication Tax ($10,000), a proposed 8.3% decrease in Video Gaming revenues ($50,000), a decrease in Fines and Forfeitures Revenues ($114,000), a decrease to Charges and Services revenues ($131,950), and a decrease to Reimbursement Revenue ($161,522). These decreases are offset by increases to State Sales Tax ($141,862), the City portion of the Income Tax ($159,253), Franchise Fee revenues $10,000 (2.94%), and Licenses and Permits revenue $19,500 (8.19%). General Fund Expenditures General Fund Expenditures include personnel, contractual, supplies and other operating expenses related to the following operating budgets - Administration (100.01), Elected Officials (100.02), Community Development (100.03), Finance (100.04), Human Resources (100.05), Economic Development (100.06), Police Commission (100.21), Police (100.22), Police Dispatch (100.23), Public Works -Administration (100.30), Public Works -Streets (100.33), and Parks and Recreation (100.41). In addition, the General Fund is the funding source for all capital improvement and capital equipment projects that are not related to water and/or sewer improvements or maintenance projects as these are funded through the Water and Sewer Fund and Capital Development Fund. Finally, the General Fund also serves as a funding source for revenue transfers to other municipal accounts found within Special Revenue Funds, Debt Service Funds, Internal Service Funds, and Fiduciary Funds. FY20121 Budgeted Expenditures (Column P) In FY20/21, total budgeted expenditures (capital and operating) were $25,443,288. Budgeted capital expenditures were $1,305,400 and budgeted operating expenditures were $24,137,888. While this amount reflected an increase of $1,516,103 (6.3%) from the FY19/20 Actual expenditures (Column N, Row 35), this difference was due to Capital Improvement and Capital Equipment expenditures as well as the addition of two police officers and other personnel adjustments. FY20121 Estimated Expenditures (Column Q) In general, the City Administration - including Department Directors, Superintendents, and Managers - closely monitor expenditures throughout the year to ensure that operating budgets stay within the approved amounts. Fiscal diligence on behalf of all of these individuals most often results in expenditures being less than the amount budgeted. This was especially true during FY20/21 as we were challenged with managing the impacts of COVID-19 on municipal revenues and, related, expenditures. For FY20/21, operating expenditures are estimated at $22,775,466, or $1,362,422 (5.6%) less than the budgeted amount of $24,137,888. Highlights of changes to FY20/21 Estimated Expenditures include: • (Row 29) Reduced Personnel costs of $583,456 (3.2%) resulting from early retirement offerings and positions being left unfilled. 45 • (Row 30) Contractual costs are estimated at $350,248 (15.5%) less than the original budget. • (Row 31) Supply costs are estimated at $277,578 (28.8%) less than budget. This is largely due to lower costs in the Parks and Streets Division purchases. • (Row 32) Other estimated expenditures are estimated at $77,753 less than the original budget. • (Row 33) Capital Outlay expenditures are $577,548 less than the original budget, but some project expenses are rebugeted for FY21/22 for incomplete projects. Note: City Administration anticipates changes to FY20/21 Estimated expenditures due to increases or decreases in revenues and expenses through the end of the fiscal year. FY21122 Proposed Expenditures (Column R) FY21/22 Proposed operating expenditures represent a decrease of $174,191 (0.72%) from the FY20/21 operating Budget amount of $24,137,888. Highlights of changes to General Fund Expenditures proposed for FY21/22 include: (Row 29) Personnel costs are proposed at $1,591,344, or 8.79% lower in FY21/22 than budgeted in FY20/21 due primarily to the movement of a large portion of Police Pension Contribution expenses to a Transfer Expense account due to the issuance of the Pension Obligation Bond. If this Pension Bond Payment was not moved out to a transfer account, the Personnel costs would have increased by $75,953 (0.42%) over the 20-21 Budgeted amount. Personnel costs include salaries, overtime, health/dental/life/vision insurance, FICA, IMRF retirement, and uniforms. There are a number of reasons for this increase. 1. Personnel costs related to salaries only for employees covered by collective bargaining units - IUOE Local 150 (Public Works, Parks employees), FOP Unit 1 (Police Patrol), and FOP Unit 2 (Dispatch) - account for a $36,346 decrease in salaries from FY20/21 to FY21/22 due to positions not being filled after retirements. 2. Police Pension costs are proposed at $2,325,603, ($1,667,297 is a transfer to the Debt Service Fund to cover the Pension Obligation Bond) an increase of $93,861. Police Pension costs are determined by an actuary retained by the Police Pension Board and are based on a number of factors, including wages, investment rate, and age of the workforce. The City issued the Pension Obligation Bonds to set the City up to be 100% funded by the required deadline of 2040. 3. Non -bargaining unit employees and Police Sergeants salaries account for a total decrease $37,580 of the Personnel costs due to positions not being filled 46 after retirement. Wage increases are included for Police Sergeants and other non -bargaining employees based on a combination of the previous year's Consumer Price Index for All Urban Areas (CPI-U), which was 0.9% in 2020, and an additional merit increase of 2.1% based on performance evaluations. 4. Total Benefit costs are proposed to increase $54,337 due to increases to insurance costs. • (Row 29) Contractual costs are anticipated to decrease by $159,180 (7.05%) from the amount budgeted in FY20/21 due to the removal of contracted snow removal and street sweeping. • (Row 30) Supplies expenditures are proposed to be increased by 1.38% ($13,275). • (Row 31) Other expenditures are anticipated to increase by $1,639,892 (99.06%) due to a transfer to debt service for the Pension Obligation Bond. GENERAL FUND BALANCE: On February 1, 2016 City Council adopted a new Fund Balance and Reserve Policy that, in summary, established principles and parameters to which balances for all municipal funds would be defined at the beginning of each budget period. This policy, which also meets the reporting requirements of Government Accounting Standards Board (GASB) Statement 54, which requires the formal adoption of a policy for the classification of fund balances to categories other than "unassigned", was established to provide financial stability in the various municipal funds, ensure adequate cash flow for operations, and provide some assurance that the City will be able to respond to emergencies with fiscal strength. In regards to the General Fund Balance, specifically, the Fund Balance and Reserve Policy states: "General Fund - The unrestricted fund balance target should be set at 120 (4 months) of estimated operating expenditures including those expenditures reported in other Governmental Funds that receive annual operating transfers, with the exception of transfers intended to fund capital projects. If the unreserved fund balance falls below 120, a plan will be developed to return to the target balance. If the unreserved fund balance reaches a low of 90-day (3 months), the plan will be implemented to return to the fund balance to the target within a reasonable amount of time. Onetime revenues shall not be used to fund current operations." This level of fund balance shall provide the capacity to: IVA • Offset unexpected downturns in elastic revenues due to fluctuations in the local, state and national economies or the loss of major sales tax contributor(s); • Offset negative fiscal changes brought about by action or legislation of another unit ofgovernment or agency; • Ensure the continued, timely repayment of debt obligations that the City may have in the event of a financial downturn; • Provide a sufficient cash flow for daily financial needs at all times; and, • Provide a funding source for unanticipated expenditures or emergencies that may occur. As identified, the parameters in this policy help to guide the City Administration in the development of the annual budget by ensuring that the General Fund Budget is presented as balanced, revenues over expenditures, while maintaining this reserve. Further, the establishment of the target minimum of 120 days provides clarity in identifying the level of funding that is available - once revenues, expenditures and fund balance are identified - to address the City's capital needs. In other words, any funds remaining after meeting the operational and reserve needs of the municipality are "Assigned for Capital." As a reminder, a combination of the economic recession of 2007/2008 and the loss of a major retailer resulted in the municipality taking measures to freeze or reduce expenditures. This included operating costs and capital improvement and capital equipment projects. In 2009 the City implemented a .5% Local Sales Tax and specifically identified that the additional revenues generated by this should be used for capital projects and Police Pension funding. Since the first full year of implementation of the Local Sales Tax and as a result of a recovering economy, the City has been able to: 1) adopt a balanced General Fund Budget, including meeting Police Pension costs; 2) reintroduce capital improvement and capital equipment projects; and, 3) rebuild the General Fund Balance. In reviewing the General Fund Balance as part of this discussion, the FY20/21 Budget includes a beginning fund balance of $7,033,891 (Column P, Row 6) based on FY19/20 audited financial information. Based on FY20/21 budgeted revenues, operating expenditures, and capital expenditures (which were funded with fund balance), it was anticipated that the ending fund balance would be $6,289,381(Column P, Row 43); the estimated ending unassigned 120 day fund balance at $7,946,826 (Column P, Row 44); showing a shortfall of $1,657,445 (Column P, Row 45) in developing the FY21/22 Budget. In fact, even with lower than anticipated Revenues ($43,006), the ending Fund Balance is anticipated to increase by $1,152,454 due to lower than budgeted overall Expenditures ($1,939,970). The FY21/22 Budget then identifies an estimated beginning fund balance of $8,186,345 (Column R, Row 6). As in the discussion above, this amount will most likely change upon completion of the annual audit however, this is not done until September/October, 4-5 months after the budget is adopted and implemented. 48 s x x x x x x x x x :e x x x x x x x x x ��a��aa�aa�.r^.Qasa 5�9��xa M a e e a �� a 4 e� s � d � _�<� a 13 A OI �I � � �I � � � I � � � P� of � �I � t� e� o 0 0 0 e o 0 0 o s e o o� xl�� ! 41 1I � ! I �� RRIM� ii 1 �� a ��I� i� � I � �I I� a Y� a s M i o. I e 3 a i C � '�' 2 F� � d "1 1 � i��s�� § '" � �� a r -� � �I a � � �, m s s! � nl � - �m -�1"=ryl a�� a� I 9 �� § � � � � � � a, � a �� m � m § � � � g �� a R ^ s t ��°I�� j a� a» .9 Fiscal Year 2021/2022 Annual Budget General Fund Operating Budgets ;,� 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), Pol[ce (10022), Police Dispatch (100.23J, Public Works -Administration (100.30J, Public Worlcs-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 Pund Revenues and Expenditures, the information contained in each of the fo]lowing sections will provide details regarding each operating department. The narrative below is a summary overview of sections that Follow. G¢n¢rnlAdminis[ration (100.01) Overall, the Administration operating budget is proposed to increase by $108,625 or 11.595 in FY21/22 (Column P, Row 56). Salary/Benefit costs are identified to increase by a net of $92,402 or 20.91% which includes an additional full-time building maintenance position ($67,637), Non -Bargaining Unit increases of $7,322, Bargaining Unit increases of $9,328 and Benefit increase of $8,115. Contractual Services expenditures - which includes the mosquito abatement program, participation in the countywide Dial -A -Ride program, and general engineering consult[ng are identified for a net increase of $45,000 (56.25%) due to past expense history (Row 21). Corporate Legal Fees (Row 22) include the City Attorney, TrafFic Attorney and Collective Bargaining representation and are identified to decrease $19,000 in FY21/22. Supplies expenditures are proposed to decrease by $1,500 (Column P, Row 39) and Other expenditures -which includes Administrative Expenses and internal transfers for Risk Management and Information Technology - is proposed to increase by $1,973 (Column P, Row 45). Elected Ojjiciols (100.02) The Elected Officials budget is proposed fora $17,293 decrease, or 16.74%, based on past history and the use of the Administration budget for Elected Official expenses (Column P, Row 37). Community D¢v¢IopmenL (100.03) The Community Development budget is proposed decrease $80,616, or 8.15% (Column P, Row 45). Salary/Benefit costs are budgeted to decrease by $65,535 (8.11%), which includes one position that w311 not be filled due to a retirement. Contractual Services are identified to decrease by $10,600 (12.24%) to better match historic spending. Supplies will decrease by st $5,000 (12.66%), and the internal transfer for Information Technology will decrease by $1,481. Finance (100.04) Salary/Benefit costs are anticipated to increase by $18,939 (4.17%) due to Non -Bargaining Unit increases of 3% and higher insurance costs. A vehicle loan was started in FY20/21 and it is anticipated the costs will be $284,568 in FY21/22 which is $65,432 lower than the amount budgeted in FY20/21. Human Resources (100.05) Salaries/Benefit costs are budgeted to increase by $6,647 (2.54%) which is primarily due to salary and insurance increases. Contractual Services increase by $60 (0.17%) while Other Expenses for Information Technology transfers decrease by $308 (2.75%). Economic Development (100.06) Salary/Benefit costs are budgeted to increase by $8,752 (3.5%) due to salary and insurance increases. Contractual Services increase $95,000 (475.0%) for economic incentive grants that have been approved or are anticipated to be approved. Purchase of Services — Information Technology expense decrease by $522. Police (100.22) The Police budget is proposed at an overall increase of $231,860, or 2.19% from FY20/21. Salary/Benefit costs are identified to decrease by $1,418,469 due to the movement of Police Pension costs to a transfer to deb service account ($1,667,297). If these costs were not moved, the Personnel costs would have increased by $248,828. Increases include $81,095 for sworn salaries, $12,486 in non -sworn salaries, and $64,223 in health insurance benefits. These increases are offset by a decrease to part-time salaries of $17,784 due to moving the part-time cleaning salary to Administration. Of note, FY20/21 Sworn Overtime is estimated under budget however this is due primarily to COVID-19 and decreased need during this time. For FY21/22 it is anticipated that moving to Phase 5 Mitigation will result in increased events, activity and need for overtime at previous levels. As discussed earlier, Police Pension costs are determined by an actuary retained by the Police Pension Board and are based on a number of factors, including wages, investment rate, and age of the workforce. The City committed to full funding by 2040 which is why the City issued the Pension Obligation Bonds to bring this funding under the City's control with the anticipation that the City will save money. Contractual Services increase by $25,150 due to a contract for radio purchases. Supplies decrease by $23,875 due to lower gasoline usage/costs and lower small equipment needs and the Transfer to Information Technology decreases by $12,843. 52 Dispatch Center (100.23) FY21/22 represents the fifth full year of operation for the fully developed, and staffed, dispatch center. The FY17/18 budget established the baseline budget for the dispatch center moving forward. The proposed FY21/22 budget has been presented and approved by the partners of the dispatch center. The total amount proposed for the dispatch center in FY21/22 is $2,679,504. The most significant increases are for Salaries/Benefit costs ($81,312) due to contract increases and the increase to insurance costs. Asa reminder, this amount is offset by more than $1.8 million in reimbursements as a result of the partnerships with the City of Woodstock, City of Harvard and McHenry Township Fire Protection District and through charges for dispatch services paid by customers of the dispatch center. These are reflected as General Fund Revenues and included in Row 22 of the General Fund - Revenues, Expenditures and Fund Balance Summary sheet. Public Works Administration (100.30) The overall Public Works Administration budget is proposed to increase by $9,352 (2.19%) due to increases to Salaries and Insurance costs. Public Works Streets (100.33) The FY21/22 Public Works Streets budget is proposed to increase by a total of $27,859 (0.83%) from FY20/21. Salaries/Benefits are proposed to decrease by $334,452 due to the elimination of three positions through early retirements. Additionally, Contractual (Row 21) costs have been decreased by $177,000 to account for eliminating contract snow plowing, street sweeping, and contract asphalt and concrete work. Repair and Maintenance Costs (Row 23) have been decreased by $50,000 due to purchasing of a few new vehicles to replace aging vehicles. Materials and Supplies costs are proposed $56,900 higher due to moving salt purchases from the Motor Fuel Tax Fund to the Streets Department. Capital costs have been added to the Streets Department in the amount of $525,000 for the 2021 Road Program. Parks and Recreation (100.41) As a reminder, the Parks and Recreation budget encompasses not only personnel and other operational costs of the Parks Maintenance Division, which includes bargaining unit employees, but also all programming expenses related to the Recreation Division not associated with the McHenry Recreation Center. Revenues from recreation programming, reflected in General Fund Revenues, offset many of these costs. As proposed the FY21/22 in the Parks and Recreating budget is proposed to decrease by a total of $66,105. Salary/Benefit costs are identified to only increase by a total of $4,346 (0.27%) due to lowering Seasonal Salaries with the anticipation of decreased programming in the upcoming year; Contractual Services to decrease by $54,690 (10.58%) for lower summer camp and general programming expenses; Supplies to decrease by $12,000 (5.66%); and, Other costs to decrease by $3,761 due to a decrease to the Purchase of Services Information Technology Transfer. 53 Fiscal Year 2021/2022 Annual Budget General Administration General Administration -Overview The General Administration Budget contains personnel _ - ' and operational functions related to the provision of - -..�; general administrative services and, beginning in FY19/20, includes capital projects expenditures From the - General Fund Balance. Beginning in FYl6/19, 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, starling in FY19/20, all Contractual and Repair and Maintenance costs related to these activities were also been transferred to the Community Development Budget. Finally, capital projects to 6e funded through the General Fund Balance are accounted for in this Fund. The OEEice of the City Administrator, which includes the positions of Clty Administrator and Deputy City Clerk, is responsible for providing management services, budgetlng, legislative support, and communications to elected officials, staff, and the public in carrying out the policy and direction as set by the City Council. 55 General Administration - Organizational Chart 56 General Administration - FY20/21 Accomplishments • Coordinated overall municipal response to COVID-19 Pandemic which, most importantly, involved management of the FY20/21 Budget to be able to address revenue shortfalls and expenditure reductions. This resulted in the Ciry being able to end the fiscal year in a sound financial position without the need to eliminate services, reduce staffing, utilize General Fund Fund Balance, or significantly impact capital needs. Oversaw effort to coordinate with the McHenry County Department of Health to establish the first COVID-19 mass vaccination Facility in McHenry at the Former Kmart building on Richmond Road. Directed development of a 20-year Community Investment Plan to replace the 5-year Capital Improvement Program. This project is being spearheaded by Public Works Direc[or Troy Strange and will be implemen[ed in FY21/22. Despite the economic impact of the COVID-19 Pandemic, developed and presented a balanced operating budget to City Council for FY21/22. The budget also includes a more than $2 million local road program, funded primarily with Motor Fuel Tax funds, for the first time in City history. Directed demolition of the former Central Wastewater Treatment Plant For future redevelopment opportunities. Work with Department D(rectors to develop departmental succession plans. 5� General Administration - FY21/22 Goals 8t Objectives . Complete development and implementation of the Community Investment Plan. Continue engagement with the Illinois Municipal League and other stakeholders to monitor legislation at the State level that may impact municipal funding as a result of the COVID-19 Pandemic. • Direct development of a Reques[ for Proposals For the former Central Wastewater Treatment Plana site and developer selection and negotiation process. • Comple[e steps necessary to extend the Downtown Tax Increment Finance District. • Continue to provide leadership and oversight to all departments to provide [he highest quality of services in the most cost and time efficient manner to customers. . Continue to evalua[e and Identify alternative revenue sources. . Onboard newly elected officials and coordinate with The Mayor for the holding of a strategic planning session. Coordinate bi-weekly Development Coordination Meetings to ensure multiple municipal departments and Mayor are ^on the same page' regarding commercial, residential, retail and other projects. se o z e�� N� o e ,� o z o o� o 0 o e .. o -- -- -- -, -, � o �-- :6 < � � m � m •y 4 .=T K 4 .ten e q � ..� ... � o - �i{^- � 0 0 � K�-r o 0 o e S� `; K -ry '� m O - o �� m� o�� g 4 0 0 0 4 g q�� o Z __ o `3 � � m� e m � A m 'Y o .-a .`ter "C ��FFppNNyyyy Q o � e� m 'R e�.i o'Re, � ^L � � o �L � �. `4 0 � `�2 O O __ rl _ _ _ m m � o H 'O }� iL � p m C � C a # �yq '� iy§� tg&�' � yyy qC �' � � 6 g � � S� � o � c�i ci � F- � a2 # uu�33 6 m e g o 0 o v o o�� o o� o 0 0 0� S S .oNY. o 0 v a o S F:i .^J .�.� ."t. .°4. .9 .Y. .7. §§$§ -�((� .[)§(}() A\K �\��\ \// k\ 777) ))i () \ -�� . ® a � ® » E§$/ EE'� _ „ m § �R��\ r7)2 \ )�)( / ¥a)§ �»�®e , = ® _m E77§ �© - : k* ' - !� ■$$ �S �d - � #%im �!4 2 )§ kt�§ )k)§. ,!!$#S ;2ia39/ � .�mma��a«�w.�a=a=amp Fiscal Year 2021/2022 Annual Budget EI�G�PC�. ��1G1dIS 61 Elected Officials -Overview The Hlec[ed OFfldals Budg¢t contains personnel and operational Functions related to the elected positions of the municipality. These include the � Office of the Mayor, the seven (9) Aldermen, and - ). the Gity Glerlc. The primary functions of these elected positions are described below. The OFBce of the Mayor provides leadership, fn[tiative, and dtrection necessary to provide quality services to the c/ttzens 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 vartous departments, divisions and employees of the city. The City Council, comprised of seven [9) Aldermen representing geographically defined wards and elected to staggered four (4) year terms, Is the legislative body For the City of McHenry. The authority oFthe City Council is expressed during regularly scheduled Gity Council Meetings (1•� and 3b Mondays oFffie each month) through the adoption ofpo]icies, resolutions, ordinances and other related actions as deemed appropriate to promote and protect the high level oFservtce 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 oFthe Whole meetings, and Planning and Zoning Board meetings. The Cfty Clerk fs also respo Bible For records management of the municipality. 'Phe C/ty Cleric is assisted in these efforts by a designated Deputy City Cleric who is also a Eu❑-time employee oPohe city. 62 63 Fiscal Year 2021/2022 Annual Budget Community Development Gh Community Development -Overview The Department of Community Development is responsible For promoting the health, welfare, safety and quality oFlife to McHenry citizens, property owners, visitors and commercial interests. These services are provided by an experienced and profess/onal staff that cuy of M¢H¢nry consists of a City Planner, Building Inspector, Plans Hxaminer, Plumbing Inspector, and a Code Enforcement COlntnunity and Officer. The administrative staff within the department Economic Development, includes two Adm[nistrative Assistants and an Office Assistant. The Community Development administrative staff is also tasked with handling day to day operations at the main counter, this incudes payment of water bills and answering general questions. Building grounds and maintenance For the Municipal also falls under Community Development, this division consists of one full time maintenance position and one part time cleaning position. The Department relies on a partnership with local and regional government and public agencies, community -based organizations and the business community To succeed in its mission. The Department of Community Development strives to achieve the highest Level of customer service and professionalism in helping the community thrive. Additionally, the Department of Community Development coordinates closely with the Director of Bconomic Development to ensure that business expansion, relocation and development projects remain top priorities for rev/ew and that processes are streamlined to the extent possible while r, Plannme %zonme oty vlanner Cody Snevlf cnee En(orc¢ment Cotle EJmc¢ment ofrmpr lake Marino 0uiltling & Grounds Maintenance mnn cpmmmPz Buxx Fret Community Development - FY20/21 Accomplishments Contnued toprovide exceptional service to the community duringthe COVlD pandemicwhile maintaining a safe and healthy working environment The issuance of over 100 single and multi -family homes Worhed w[th Cal -Atlantic In purchasing 13 building pads In the Legend Lakes neighborhood one subdivision, this will complete this multi -family subdivision. Continued efforts to digitize historical building documents through the use of Laserflshe Successful in having multiple vacant bufldfngs demolished leading the way to potential new development. Multiple text amendments to the zonfng ordinance tc include, fences, landscape screening, accessory structures and administrative varlatlons. Creation of a new development portal on the website, this allows for residents and other to have updated information on development in the community. Implemented in house GIS mapping Worhed with CMAP on a Foz River Corridor Plan Developed an RFQ for a total downtown streeucape program Developed a formal development review process Many notable construction pro]ects were started in this fiscal year to include: -Cedarhurst long term care fadtity -Cont[nued Improvements at Northwester Community Hospital -Continued improvements at Water[ower Marina -Thortons Gas Statlon ev Community Development - FY21/22 Goals St Objectives Consolidate our GIS maps into one functional package that can be used by all individuals in the Clty with restrictions for editing and viewing rights on certain layers (l. e. water sewer) Continue efforts to redevelop the Water tower Marina site. • Update build{ng codes • Set up BSA software flow chart For planning items and work to Integrate G[S into BSA. • Comprehensive review of all planning Forms. • ReHre the Integrated Design District Zoning Designation and adopt a PUD ordinance. • Begin the process of updating Comprehensive Plan. Continue to provide a high level of customer service to residents and businesses • Focus on continuing education of employees within the department to ensure that we provide the highest level of service possible. • Worlc closely with Economic Development to continue efforts to draw development to the City of McHenry. • Work with the Pat4cs Department and Public Works to finalize the Downtown Streetscape Masterplan. • Explore options and start planning for an overhaul oFthe comprehensive plan. 6a Community Development- FY21/Z2 Performance Measures I5 ma Pun n,alnanca lala rsenre H.e lmegrataa Oeslgn Olab'Ic[Zonmg Ta„mlaee tea lDn zamng on[maFashmn o.eF malmslt easier for To have aPUD oa'tllnance In Designa[lon and ado➢[a dlstrlc[w1H.amare up to pomn[lal dev¢lope.a to place by the ena of PYZ1/22 PUD ordinance. oats PUD o,'dinanw FbRow and suit the <Ity's ne9as To use educatlon and Face Are code compliance Contlnuaa high level of Coda 6nPorcemen[s efforts to Fare cont w¢Ith residents [o tnc de vlulatlms beh.g mitigated ana closed In an efRclent romplianm In the moo en Forcemen[department compliances manner To continue fo digitize DlgiHu.lebd end flla Dlgltlae Ms[orical building buildtng docunents thus eliminating paper antl documents to create a efflclant method of 6D4b of hls[ortc aacumems documents 'eatb.g an easier morn efgclenL searchinga'evlewing old transFera'ed CO LasarAshe wny [o svlew anrnments n.eaa aacumm,rs Caplore grant To obtalnauseable plannln8 Downtown gttxetscape To flnallza Downtown oppormnitles to help Fvnd dacunwnt In ordor to help Mesterplan Mas[ergveetscape plan ns[rucHon o(tbe with Futw'e fi.nding aowntawn SU'eetscaPa opportunities. Review euisHng camp plmt Oevelo Inable 1 P a.. atta boa To haves abetter ComP,'ehensive Plan antl research nvelinble and thnefi�eme to establish unao.'s[anding ofcostsand es t„ de ¢ omPanles thn[ can create e now Plan new comprabensive plan pro IveoPlan comps ens p !`J �� o «_ � .+ m o o e e e ry o e �, � � � � w � or' .� � e v��' � 0 0 o Z o m � e o Fy � Q � u _ _ `. �. a¢ �¢ w mo o � o K o o R o o Q e g o _ �2 E o � � `4 �' e K �' � g q � � e 4 Z e3 � e�' _ M O N � � `n q � � m ab o � s N �i � _ m .� � � � �' w � o .-T � .-T .� C � ^�, ^'1 C ^� g � � K K � � � _ O '-1 b — e � �v� 'O n d G � � � � m > e a � � �� '^ � 5 � � g' � �� m c � � � � � a �' i �' � � � 3' _ g e g o o e o�� e e�� o o�� o e� e e V o a o �� N va m h o � ]O z a�N�< � � �� I I I�I�I`n ��N � � �� I� I I I�IgI� _I�I� I I �I�I�I �I I ■�IPI� �� c�.r�.e Fiscal Year 2021/2022 Annual Budget Finance �z - Overview Mission Stat¢ment It Is the mission of the Finance Department to account For all municipal resources and to apply such resources in a manner that9s most beneficial to the citizens of McHenry. The primary operating functions of the Finance Department are as follows: Administration: Responsib]e 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, b111ing, and auditing functions. . R¢v¢nue: Collects various revenues, manages the Folic¢ Pension fiend, ensures payments to retirees are processed, and invests idle City Funds. Note that the Finance Department expenditures Lnclude, under "O thed', transfers to other funds. 73 Finance - Organizational Chart �n Finance - FY20/21 Accomplishments Issued Pension Obligation Bonds to significantly lower Pol[ce Pension costs over the next 20 years. • Refunded the 2010C Sewer Bonds to save the Cfty $295,000. Completed analysis on water/sewer usage and capital rates Sn order to ensure operating and capital expenses are covered. • Working to outsource water/sewer bill prinHng to offer Full page bills with more details for residents. • Secured $1.3 Millfon in CURES/CARHS Act funding to offset costs due to COVID-19. �s Finance - FY21/22 Goals 8z Objectives Improve management of the Cityfs Investment portFollo, Including Implementing cash Flow modeling and Investment strategies. Creates procedure manual for all dutfeswithin the Einanca 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 communicatimi oFlnformation to new residents. Begin using Tyler Content Manager within the Finance software more to scan documents in order to eliminate paper and streamline processes. Submit FY21/22 Budget to the GFOA Fm- consideration for the Distinguished Budget Award. 76 Finance - FY21/22 Performance Measures �> o 0 0 0 0 0 0 0 0 0 o\o M O N d d _ [� O O N O M , h H C:)'-1 CDC) CD � M _ O M h 4O Nd' M M d' O %R p O O CD O Cl CD CD C)M M CD a)H LOn 11 LOn Cn Q A Ln ' ' d' ON ' d' Lo '-1 r Q\ %D 00 O% N d' N M —_... O Cl , O r r r r O O O O O O ' p M o0 c-1 m Lo O O 00 O 00 O O O C:) Lo Ln C - cq M 03 L.o N' Lo' fo 00 ' ' l� m Ln h d' N ' N __... O W M O rA N O __. _..- O O ' O Ln ' O ' Ln O O ' ' O c-1 N d' N d' N N C) O O O N O CD O O Ln M C) CD C) O M co N 116 N M d' Ln N Lo N O .--I' C) '-i Co cr M In O 00 ' �o Ln ' ON h ' O N O M N rn 00 M e-1 OJ Lo M Cl). O M r M ILO -1 N H M t O N `--1 Ln Ln Ln d' Ln to Ln N N d' 11 It-1-1 in N to '-1 M C)N Lr') M C) CD O Ln O Lo CY)N ' ' O O OMi O m r O ' O d' M N N M Lo O O N O Ln Ln N O Ln O L!) Z M Ln N N d. LLO N d' M d m M � O ' M Ln ' M Ln , M M O r-i Ln L\ Lo c-1 M d, ItN M �-1 M O� l0 0O N O� Lo N d Ln Lf) Ln d M N N ko N inmod, r-1 N M 'q N M r N r r r O n �0-1 r-1 00 ' M N N �-1 Lo cr eM-1 co C) ON 00 DD to e-i d• C) `-1 00 Y k N N N Lf')) l� Oi M [� Ln ^ M M M Ln C M Ln Ln OQ O1 O, N LO Lo M 00 ' ri W l� ' ' lf) LO d' I\ O Lo ' ' ' N In i-1 to cy M �-I H N N Ln � N N d' M Lo d' N co N 00 LD L+') Lo In r-1 t\ — N 6 06 co N O N N N N M IH N eM-1 Lin W U w w m - w z, Ln C Env L a F p q a�i ��o W Vy 2 2 u 2 ti H 3 a a to p a) Pizw Z tn � m U `� G r. °' °' o w w c G 0 H b o�'o is v v .� t4 a L iv io > ate) a�i w a y 5 U w G O o o a) L� 0 ti 0 O � N H OF Ln Ln O x g O F a F w A H F 04 F o G L V o 0 M 0 to 0 �--1 0 N 0 M 0 d' 0 0 N 0 0 0 0 0 0 0 0 0 0 0 0 ) 0 O O O co M M M 'A d' d' e-L Lo '-1 �-1 �-1 M N M L-i N M Ln �-4 �-4 Ln t 'y d' d' d' d' d' d' d' d' d• d' Ln M M Ln M Ln d' m d' Ln d' Lo d' LP) �--1 N N N �1 Lp Lp LO Lo Ol O �-- N M 'd' ,2 Lo N N N N N M m M tmn M 78 0 0 0 0 0 0 0 0 o O� ON 00 O O O N N M O C� yO �O ri CO. !O�� O O O O O O In O In G. O F-. F.. O O O N lO m O^ N M i i C) i i i 4Q O O d' M O d O N �-v " N Cy v ON O W Ln p � (� C. �-O O m M p M O O N N O O Or co 00 H a,N cq N �-1 M Co N O O O �O �-1 O O LO It O O O N M h O� Ln k0 O O In N M 01 tN-1 N �-1 O, M n N a-4 e-1 i p . O N O O I'O O ' %D O O It O O N Ln N p O IO O O N h to 14 z Ln Ln 00 r4 0� N (� M V-1 a co O O O I'O s-1 d' O O O Cl O N %�O ON '-{ O O O O N M d' p t, ri Ln 00 M 1 O O l0 O O N ON O O N O N M O� O O N O0 d' 00 a, C14 00 h h L!7 r-1 ---------------- i O i i p p M O N M O h 00 �-i "d q W q W N � � q w N ❑ � � N N 0 p y 00 WOW ICJ a�i A cNiL v �v c`di cn Ln cn a) 0L. 0 0 0 o 0 o- o A o N 0 N O N F A v ro w , w L. w L. w 1. w 4+ w w 1ti w co N N p a O t In ,t cI lO O rq d' O h O O N d' d' d' Ln d' 1-0 d' h d1 O N N N M N Q O� �O m \O O\ lO ,o L� O O% O, O, (ON ON O1 m m ON O ON ON O, O, O\ O, - O, - O, m M M M V d d d' d rJ r, I CO M It' CD Ln Ln Ln Ln 79 Fiscal Year 2021/2022 Annual Budget Human Resources Human Resources -Overview The Department of Human Resources and Director of Human Resources coordinates the employee and rlslc related functions of the City. Th[s includes compensation, benefits, wellness, staffing, recruitment ✓3<selection, Internal policies, workers compensation and safety, performance managemenq labor relations, and employee Human relations, tra/Wing, and process improvement RCSOUYC� Through the establishment of the McHenry Recreation Center, the staffing size of The City has grown to have an average of 2y5 full and permanent part time employees. During the summer season this increases to around 330 employees. The 21/22 budget year there will be a careful watch on all Types of Insurance, health, workers compensation and lfabIIlTy. We only have projections at thistime, but 2020 was avolatile year in the insurance fndustry and we will be as proactive as possible to mitigate claims and increasing rates. Human Resources -Organizational Chart st Human Resources - FY20/21 Accompliskiments COVIU-19. Creation of new policies and directives around COVID-19 protocols, reporting, FFCRA compliance and tracking. Managed 94 reported COV1D inc[dents. Retirement PaGtages. Had five employees take advantage of retirement pac7<ages saving the City $255,000. . IPBC. Completed a City wide health Insurance dependent audit For al] employees on City health Insurance. This helps to contain costs and is required. 200 dependents audited. . Wellness. Ran a successful wellness program including biometric screenings earning the City nearly $20,000 in rebate money from IPBC. 88 eligible wellness participants. • Harassment Prevention Training. Updated poi/cy and all current employees are trained • New Rmployee Handbook. The new handbook Is about to be published. • Family 8c Medical Leave. Coordinator Meyer has kept the City compliant managing 25 PMLA full time and intermittent cases in 2020 • NeoGov Perform Software. Implemented new performance management software Including performance management scoring and competencies. Ready For test evaluations and crating a user guide. ez Human Resources - FY21/22 Goals 8t Objectives Performanc¢ Managemen[. Finish implementing NeoGov Perform sof[ware and create our internal user guide. . Processes 8.. Parocedur¢s. Create wAtten record of all HR Se Rlslc processes Aislc Management. Develop electronic risk reporting forms in Laserftche. BeneF1[s/Life Insurance. Adjudicate discrepancies in voluntary life insurance and audit monthly to ensure Benefltsolver contains correct data. . Training 8.. Dev¢lopment. Implement NeoGov training software if approved in budget). This will allow moan options for v/r[ual training and integrate with performance management. a3 Human Resources - PY21/22 Performance Measures r - Perfonnava Management Complete lmPlementatlon Tes[systam. uptlate basetl Implemen[Perfaamance ¢n eedbaelp.vll oat MgmG System cnammraa trnimng aim rro.m¢ vammg au Training e. Uevelopment Implemen[n¢w soRwvre make avallahle development opportunities to [a mployees mPioyees Written record of AnalY%e and rexise Verl Fy mmplfance criteria for Pmass B.Pmadures processes in HR dept insuranea,audl[s, etc. and prac¢s_aes Wa'Ite m'upda[e processes train necessary employees IIllmina[e dlfRrent Use Lvsarflche [a c[eete 21sh Management Versions of loan entl online lnclden[rapmTing -Create on¢foim usable by all ImPlemenC one form far b,om dePanm¢n[s all dePerunen[s. Clean up diserapancfas peel dv date Yse an p Verify all informa[lon is Life lnsw'm[ce tlu[exla[wi[h Voluntary Voluntary ilia lnsnrance orrect in BanegtsolVar Ilh Insurance E"L' Fiscal Year 2021/2022 Annual Budget Economic Development �� Economic Development -Overview The Department of Economic Development Budget contains perso nn�l and operational functions related to the provision of economic development services In the City. Prior to FY18/19, costs related to ¢conomic development activities and personnel were accounted for in the General Administration and Community Development Budgets. With a growing emphasis on economic development activities, a separate budget fund was established to account for expenditures. The Economic Development Department is the first point of contact with potential businesses, citizens and elected officials regarding business inquiries and potential new business apportu pities. The department Is responsible for effectuating orderly economic growth of the City, attracting, retaining and serving businesses and residents in the community. ev Economic Development -Organizational Chart m Economic Development - FY20/21 Accomplishments • Implemented a small business microloan program; .. Obtained a $300,000 grant for Restaurant and Tavern Relief Fund; Implemented the McHenry Mfnute business newsletter and video series; • Implemented the Commercial Incentive Matching Grant Program; Contracted a hotel study and coordinated available site visits with potential hotel prospects; • Recognized several businesses for years of service; • Created Shop-N-Dine website and coordinated promotional sponsorships and marketing efforts; Coordinated needs and Incentives to allow Jessup Manufacturing to build a 25�000sf expansion; and SS,000sf Brake Parts/Efts[ Brands Research and Development Center build out; Coordinated marketing efforts sharing the City's promotional marketing videos and campaigns to attract new residents and businesses; . Extension of TIF District; Assisted In coordination of new Blice MC program to replace Zagster Bike Share Program; • Supported businesses throughout pandemic creating stability for businesses and a very low percentage of lost businesses as a result; Visited over 50 businesses; • OPenin6 of 16nite; • Assisted with Planning and Zoning Commission; • Coordinated forced annexation process throughout City; • Par[Icipated in Fox Rlv¢r Corridor Study. 69 Economic Development - FY21/22 Goals �. Objectives Cultivate and develop relationships: real estate brokers, businesses, retailers, manufacturers, developers, attorneys, archlkects, engineers, etc.); Maintain contact with retailers, developers, manufacturers, prospective business owners to assist In space needs and location preferences; Promote City successes through Social Med(a: businesses expanding; new business, events, etc; Malntaln Ilst of available grope rues; downtown, Richmond Roatl; demographics, socioeconomic and other data and make It easily available to all inq ulrles on the City website; Malntaln contact with Ntcor and Com Ed as tt relates to economic development and business assistance; Work with Community and Economic Development Department (zoning, subdivision antl coordination of development); Facilitate Business Retention Visits with McHenry County Economic Development Corporation and State Department of Commerce and Economic Opportunity (McHenry County Workforce Network and Small Business Development Center); � Maintain Lis[ of Ctty manufacturers, contacts, business type, space, etc; Maintain comprehensive list of all businesses In the City to ensure prompt and accurate Information sharing; Worlc with State Department of Commerce and Economic Opportunity; McHenry County Economic Development Corporation; Intersect Illinois; McHenry Area Chamber of Commerce; shah Center -Small Business Development Center and other partners in business assistance, site selection, expansion and retention; � Serve as assistant and back FOIA Officer/OMA; Continue multi -faceted effort to retain existing businesses and attract new businesses to the City. Work cooperatively with I<ey property owners and McHenry Area Chamber of Commerce, downtown business owners and other relevant organizations and parttes In seeking additional ways to revitalize downtown, working more closely with businesses with the goal being to attract 90 additional investment in the downtown area, retain existing businesses, promote investment in older properties and assisted smaller businesses struggling to keep doors open; Witness business growth occur in all geographic areas of the City, on the City's major retail corridors, downtown, Illinois Route 120, Illinois Route 31 and in the City's business parks; 0 Bike Sharing Program; Write incentive and annexation agreements and ordinances to facilitate and promote business attraction, retention and/or expansion; Work with McHenry County College/Small Business Development Center (business attraction and retention -MCC Manufacturing Breakfast); Represent City in attending McHenry Area Chamber Mixers, Multi -Chamber Mixers; Ribbon Cuttings and Grand Openings for New Businesses; 0 Continue to serve as member of McHenry County Public Transit Access Committee; 0 Serve as board member of McHenry Area Chamber of Commerce; a Attend McHenry County Workforce Network Meetings (serve as proxy for City Administrator); 0 Coordinate Business Site visits; Continue to work with Downtown Businesses and Community Organizations (City, Chamber, Downtown Business Association and Businesses); 0 Coordinate events across all organizations and joint marketing effort; Produce short business videos for Face book/Instagram; Be more active on social media, i.e. videos: McHenry Minute; and sharing business recognition milestone anniversaries-Instagram and Facebook with pictures and videos; Work with Economic Development Commission in recruiting new businesses and promoting existing businesses; Implement a Commercial Incentive Grant Program; Work assertively with Developers in an effort to fill vacant storefronts in all areas of the City; 91 0 Streamline Economic Development website content for ease and attraction of new business development; Invite and introduce economic development staff and City to prospective businesses by attending all new business walk-through inspections when they are scheduled; Continue to participate in Fox River Corridor Study; 0 Continue forced annexation process. 92 Economic Development -Performance Measures V Islt/Ta II< to 40 existing businesses; Redevelopment of the former CW WTP Expand the reach of the McHenry Mlnut¢ newsletter and video series to highlight economic develapment- related protects and progress In the city. Ensure that this Is easily available to businesses and residents. Bring a hotel to the City Visit/Talk to 40 existing businesses Have site redeveloped Expand reach of McHenry Minute newsletter and video series Have a new hotel built In the City of McHenry Number of businesses Property being redeveloped More people see newsletter and video Hotel built 40 existing businesses Redeveloped CW WTP Place newsletter and video on different mediums to expand reach Hotel oe �� _m �q� �� m��o�mmm -- � 0000�� oo,� z�� om � A . o � - e�� w a �� H �. a o. P "� � o �� o� o e� g .�., o 0 o m _ .� m � � •� m a e e v e ^'' �" "� o� v e o v :s �� e g K o o 0 z __ �� a a o e r � - � � ".7 � � � � � � � � � Gi N_' u�-' .�} K_ _ m _ ��' .-T K _ .-t _ pgW v�i N a � .`�: �'�' o .ry' .-� .i' �.�{ '_i O O py _-_ _ - _ .aO O y � �R � q _ � v� g Y � � � � g � �q � � .� � � � 8 � } � o � gs � � g� � � � � }g E-r B S S S S F oe o 0 o g�� e e e o e o� o e e Q O W o m o �� ry va mN o� o �i m 94 Fiscal Year 2021/202 Z Annual Budget Police Commission Commission -Overview The purpose oFthe Police Commission 1s to selectsworn personnel In accordance wide the employment policies of the Cfty of McHenry, as well as investigate conduct hearings regarding any sworn member of the McHenry Police Department. � �nP lk E_- �� ) '--��.; S�nr . -ii'<ii��a-.� 96 f ,. o� Fiscal Year 2021/2022 Annual Budget Police - Overview Vision Statement r� �`a The McHenry Police Department will maintain the highest � 9— ai standards of criminal justice excellence in all aspects of policing. � Z� Through these standards the McHenry Police Department will L� �% define itself as a leader 1n the industry by those we serve and protect. �a 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 Valves 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 miss[on and guide us in our effort to meet the v[sion of the agency. The McHenry Police Department operates off th¢ core values of; integrity, Courage, Service, Honor and Duty. Agency Structure The McHenry Police Department is the third largest law enforcement agency fn McHenry County. O rgan3zed into Four main divisions of Administration, Support Services, Field Operations and information Technologies (I.T.), the McHenry Police Department serves and protects the citizens of McHenry and ali those who visit. Within each division spec[alty units are established to meet specific needs of the agency that support our vision and goals. The McHenry Pollee Department is a community oriented organization that operates off of a problem -solving philosophy. The Administration Division is comprised of the Chief of Police, Deputy Chief of Police and an administrative assistant The Support Services Division and Field Operations Division are each headed by Division Commanders and the I.T. Division is headed by a Manager. These supervisors report to the Deputy Chtefof Police. The Deputy ChieFof Police reports to the Chief of Potice. All sections and unfts of the organizatlon are structured under one of the following divisions. Field Operations Divlston 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 Sectlon is d[vtded into three shins in order to provide 24-hour police services. Hach shift is supervised by two Sergeants. Uniformed Patrol OfFlcers 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. AdditbnalUnitswith3n Field Operations include; Field Train[ng Unit, Canine Unit, Trucic Enforcement Unit, bicycle Patrol Unit, Major Crash Assistance Team, Mobile Field Force Officers and Tactical Response Officers. Support S¢rvic¢s Division The Support Services Division is comprised of the Investigation Section, Accreditation Unit, Training Unit, Public Relations Unit, Communications Center and Planning/Research/Technical. 99 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. Information Technologies (I.T.) Division The I.T. Division provides not only the police department staff, but also City staff, services in regards to purchases, operations, maintenance, repair and replacement of information technology related programs, systems, software and hardware. 100 Police -Organizational Charts Police Overall ioi Police Administration I IIL o.e spw Sary aon r'nn MCNoon S IJ It ��, k�a na fnd and Cruz nJo:.. SU Aanm Rrlan Awlta M1In INLt SMII Sa rFu n[ rtuLurt Lug M IJ niRh[Snllt Sepµam Pnu Ivk Pn Police -Investigations Section ioa Ulsl ua'enn11en 5YmK Ixna Iu.uuaLa WSU eu.l le v. i ir.o inw� UaY SM1rlt Pnb11c A?aln oHtcor �� 011lam' MNLne15RnLn rtnycr'Pcahmm Informa[imt Tedmpiogies Manager naron crew Infannation "Peclmml<gies (1: I'J specialist Information Technotogies'Q.T.)speclalist lefflrey poerst<r Emfly Uullum Police - FY2020/21 Accomplishments Personnel New Hires On August 19•�•, 2020 Rebecca Morrison started with the police department as a Telecommunlcato r. She is a graduate of McHenry County Co]]ege. Rebecca has been with the Nunda P1re Protection District since 2011 serving as a Firefighter and HMT. Mlchele.Zuyewsld began her career as a Telecommunicator with the police department on October 11��•, 2020. She is a graduate of the University of llllnols (Urbana -Champaign). Michele has been in the HMS f[eld for approximately 10 years, most recently wor]<Ing with Medcor ai Brake Parts, Inc. /n McHenry. On January 11��•, 2021 Ioseph Lopez was sworn In as a Police Officer. He is a Niles North High School graduate and earned his degree from lllfnols State University. Joseph had been a police officer with the Metropobtan Police Department in Washington D.C. since 2016. ' Katherine Zajac was sworn in as a Police Officer on January 16•*, 2021. She Is a West Chicago Comn�u nity High School graduate, served in the U.S. Navy From 2009 to 2035 and has since been in the Navy Reserves. Kate had been a police officer with the Antioch Police Department since January 2019. Retlr¢ments On December 13��, 2020 Sergeant Brlc Sexton retired From the police department. He had been with the department since September of 1998. 8rlc was the department's first Canine Handler serving with his partner Bsta. . T¢lecommunicator Laura Cox retired from the police department on January llc^, 2021. Before joining the department in December 2020, Laura had been a Telecocnmunicator with the Woodstocl<Police Department. On January 22^a, 2021, Officer Anthony Mucclante retired from the department. He /s a McHenry Community High School graduate and served in the United Stat¢s Alr Force. Anthony started his career with the police department in March 1997. Training Traf ning the police department staff was severely hampered by the COVID-19 pandemic. Despite the lack of available In -person trainings, the police department adapted by using online platforms to ensure training mandates were met. Sworn officers and civiBan staff members of the McHenry Police Department participated in over 3,100 hours of training both internally and externally. Training directly affects the success of service provided to the community and 1fabHity placed on the City. Some highlights were: ChieFBirlc, Deputy ChieF Walsh, Commander Fun]cand Commander Sciame participated in the online version of the Internatlonal 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. ion 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 0 Special Response Teams Training ® Rapid Deployment Training Firearms Training Critical Accident Investigations ® Patrol Operations Arson Investigations ® State Mandated Annual Training Segments Calls for Service In the 2020 calendar year the McHenry Police Department handled 21,721 calls for service through dispatch and police services. The following list highlights types and volume of specific areas of investigation by the department. These investigations resulted in over 298 felony and misdemeanor charges being filed during the 2020 year. Homicide 0 Sex Offenses 33 Robbery 0 Burglary 17 Theft 138 Motor Vehicle Theft 12 Weapons Offenses 4 Domestic Disturbances 454 Drug Investigations 78 Fire Investigations 37 Death Investigations 48 Burglary to Vehicle 38 Juvenile Incidents 1 148 Mutual Aid During FY 2020/21 the McHenry Police Department participated in multiple mutual aid requests. Commander Sciame, Sergeant Ducak and Detective J. Prather participated in four taskforce callouts through the McHenry County Major Investigation Assistance Team (MIAT), which resulted in one arrest for 1st Degree Murder. Multiple officers from the McHenry Police Department participated in six callouts through the McHenry County Major Accident Assistance Team, which resulted in the investigation of three vehicle fatalities. Public Safety Initiative During FY2020/21 the McHenry Police Department continued to take on the opioid and heroin crisis head on. Through a multi -tiered approach of solving this crisis, the McHenry Police Department has taken action through enforcement efforts (arrests and drug seizures), the use of Narcan and participation in the "A Way Out Program". During the 2020 calendar year the McHenry Police saved 11 lives through the use of Narcan and assisted 14 people into the "A Way Out Program". Accreditation The Commission on Accreditation for Law Enforcement (CALEA) has been an ongoing partnership for the police department since 2002. The purpose of CALEA is to improve the delivery of public safety services, primarily by: maintaining a body of standards, developed by public safety practitioners, covering a wide range of up-to-date public safety initiatives; establishing and administering an accreditation process; and recognizing professional excellence. 108 • The continuous re -accreditation of the McHenry Police Department has proven that the agency has set and followed the following goals set by CALEA. • Strengthen crime prevention and control capabilities; • Formalize essential management procedures; • Establish fair and nondiscriminatory personnel practices; • Improve service delivery; • Solidify interagency cooperation and coordination; and • Increase community and staff confidence in the agency. • Developed a comprehensive, well thought out, uniform set of written directives. • Established a preparedness program that is ready to address natural or man-made critical incidents. • Strengthened the agency's accountability, both within the agency and the community. • Limited the agency's liability and risk Community Outreach The McHenry Police Department, in an effort to accomplish the agency's mission, participates in many community outreach events each year. Due to the COVID-19 pandemic, all in -person events were suspended. Below highlights some of the more notable events that were able to occur in FY2020/21. Child Safety Seat Installations The McHenry Police Department has a team of four certified car seat technicians dedicated to providing education to parents and caretakers of young children. Members of the car seat team stay certified by acquiring continued education credits and demonstrating their use of proper skills and education techniques. Technician duties include offering free inspections of child's safety seats at both our police department and scheduled events. In 2020, the McHenry Police Department installed over 45 child seats and showed current parents and parents to be how to keep their families safe. Adopt -A -School Program In FY 2020/21, after the return of in -person classes, the McHenry Police Department continued the agency's "Adopt -A -School" program. This program pairs individual officers with specific grade schools with the community to increase awareness and safety within those schools. The program entails individual Day Shift patrol officers being assigned there own specific grade school. The objective is for the officers to get to know the faculty and students at their respective school so that the police department can provide a better service. This program involves activities such as foot patrols, classroom instruction blocks, training exercises, and a community approach to solving problems within our schools. The plan is designed to further the McHenry Police Department's mission of increasing school safety in our local schools. Social Media Messaging During FY2020/21, the McHenry Police Department continues its efforts to reach community members through social media. These platforms disseminate critical information and also help us show the lighter side of the department's daily operations. Recognizing that many in and around our community utilize social media as an information source, the police department improved its efforts on Facebook and Twitter, increasing our followers from the previous year and having a reach of over 13,000 people on Facebook. 109 Since 2009, the McHenry Police Department has been using Nixle to communicate emergency messages in real-time. The police department currently has over 20,000 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 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. Despite the COVID-19 pandemic, our efforts helped to raise almost $3,000.00 for the athletes of Special Olympics - Illinois. 110 Police — FY2021/22 Goals 8t Objectives Below are the highlighted Goals and Objectives that the McHenry Police Department will focus on during the 2021/22 Fiscal year. • Contnue to provide the highest level of police services to the citizens of McHenry. Complete the process of develop[ng a hiring list of highly 9uali Fied entry level candidates. • Continue wltfi the departmenCs renovation / expansion phases in order to meet the department's performance and usage needs. • Seelc and secure the highest level training opportunities for all agency members. • Continue and expand the departments 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 respons3bllity and reduce any financial 6vrden on the Ctty through grant Funding. • Continue to maintain professional standards by being assessed through the Commission on Accreditation for Law HnForcement Agencies (CALHA). • Contnue to actively partner with other organization such as MCAT, MIAT, NIPAS and ILBAS in an effort to share police resources and reduce operational costs. • Replace Four police vehicles, all wllh appropriate emergency equipment. • Replace four 1n-squad computers. tit Police - FY2021/22 Performance Measures Actively suppress DItl UCR,'epor[able propm'[y cFlma and erlmes property crimes and Crime Rate o agalns[P,be aatlth¢ crlm a8alnat Pea P¢bruarY t!. tntl saf¢aa tyn totals stvy the vame or see MclleurY Community and a r¢ducalon? Its dtivens. Manage pollee depernnenl To complete the PY 2]/22 ax In an afflclant epa crcaatloa by keeping exp¢nditure at Annml Police budget ma„naa' aanae„aPPa'oaea Pollee Apa'll gD, 2D22 n w9n8 that cammunity butlget. needs are met. Create esafe roadway •I•o complete the 2D23 '1'ralRc Caas6 / Roedwvy system wltbin the City by calentlar year with m, q reauctlon Ic traffle crvahes safety anfmcing traffic laws In a,¢rall +.eduction In tragic 1^V¢:Ugamd In 2D21 asmmpared to om¢r ca ¢.seta xar a ¢aamaa. aozo. drlVmB bebaVlon Ta lmpvove the delivery of public safety aeavices, ➢rlmarlly by: mebrteln{ng a hotly oFs[antlards. To auccessfially eaVleW anU 1. ReVlew and a'eVlsa as needed deVelo db pe ypubRe softy eVlse policies In all agency policies by Prac[Itloners, mvarW6e ace Ordanm with new laws Ienuery 2022. Amrcditadon wide range of up-[o-date 2- Complete all regnited CALGA public aeFety InitlaHves; or precHcesl Complete stenaard PanoFa and repm'tY estaMlahing end CALGA proofs m,d reports for H,e 2D21 celenam'year naanh,lacermg an ax ragwraa' ]sr Pabrnarr zozz. remtation nrn¢¢xa; ana a eeo8nlaln6 Professlanal excollenca. 1. hnPrw¢mm[s [o uek a�m+itye n,na sar ty seat Maintain v sn'on6 workln8 Ins[alle[lons, Coffee with relatlonxldp with [ha daa Chef, school salaty, McHenry Community antl Adopt -A -School Program, An increeve in v[tandanre to all Community Relations fas Ci01aen3 in ortler to Garden Quarter mmonity events, poeltlVa rommuuKy +ainmin uvstand Community Days, spacial Fedback and the la,mch ofnew saPPoa't in our mlcvlon [o DIYmPIrs I1111,o1saafetY inldaHv¢s by APr112D22. serve and paotacG Gxpoa antl MCPOA 6vanta 2. Contlnved improvement o Public Relations and Social Metlia In[ea'actlon. Provlae tlae IdBheve lea•N Mee[ or exceed all Draining '!raining of➢abfesdonal pollee a0a8/21 MCNan,y Police requh'ements h, the calendaryevr a'vices with the lowest Depm�[men[Trelnh,g Plm,, 2D21, astakllshad by departmentvl uabuity or risk to 9+o city nakav ana inlnms states stacnta. 11z ana ehe ClHzans wL¢vre eo.'ve. IIIInoIS POI1ce TralnlnB Act 50/ILCS 705/Y Arrest/InvesHga[1¢n ¢nR,.< aeH¢n ¢fe.` onmm a rean¢Hm.l.. H,e a.n¢nnt nr Rednc¢ [4e amaon[ of RleBahsale ana use of oPloltl (spedRcally l,eroln) ova.'tlosea Narrotics 6nforcen,ent oplo/d usage ana onfoltls. Nercan ana aaatua In McHenry for [6e 2021 werd¢ses. m lor[aenc. rarn¢Inauai. pin calendar Yea.'. t4c "A WaY Ont" Progran.. s¢¢aicernan�e warm nn,.nal r¢m¢w araR eranc nwaraaa gran[r name rar n�am¢ r na Pau¢e refaced anbmlaamn anpued f¢.- enmr¢en,ent ana naman¢..eat e„ante Proleas tM1at sopPoct tLe ana an g.'anc a.,b,nlasm.. nnrdlasas wln.a n,imn,n.n ¢fiwo ,maawn¢fd.e awa.m¢a. aaaulanal gramaml,e aypuear ,'. ¢rgam:aeon. 113 e �,� -_ M�, �oe��,� �mo� �o�°e�o�e- ozP me ao 0 m A 6 o m M N N o� �' � �� m e _ m m c o�� K c�� m �^ 4 q N K^ o � 4 m �. .�i .� e � e g N L `� b m m� o q� vi r o m� „, � - m� .�- �-i .a-i .�% m N g v' m e e o 3 m'i � t 4 N �, �� o vim! :.y o o � e c ..y m q c' 4 m � �'2 v .-i � � � � m o g .P-1 a��' .? r�i.' e�.f � o_ N w _, ry o_ r m_ o o_ a_ � m ..i Y� m m o m � � u A v - � � S m � _ e � � m � � g G a o m o .^J "..1 � 73 0 .�.� ."3 .9 .�. ii4 §±$])}§ � \2., m}; --\.\\ _ \ §.\ 22..\ 7 E §7\[» \ � \§)\ ! \ } \ 77f}f ( $)} � $7§§m { (/§ � � ` � 2}gEE ) §)§ \ § , : ©7`®`�« §2\ �®, _ .\� § : : §! im )/)( �!m ° )\\~�li.;§ , �\\ \»k_/ Z 2!!m )))p .;,m,��;*��,�a=,�a�m Fiscal Year 2021/22 Annual Budget McHenry Dispatch Center (DBA) NERCOM (North East Regional Communications) 116 Dispatch Center NERCOM - Overview Mission Stat¢ment a nz, The Mission of the McHenry Police Department is to work in a �_ -�� true partnership with the dtiz¢ns we serve, enhance the quality ll�"� IS %� �, `-'1t:� oFlife and provide excellence 5n public safety. � �� :� Primary Functions �� _ To provide emergency and non -emergency phone answering and dispatch services to our police and Hra customers. The McHenry Dispatch Center (D BA- NHRCOM) is a collaborative ¢ffort between four public entitles. This collaboratve effort fs a partnersh/p established by the McHenry Poltce Department wtih the McHenry Township Fire Protection District, the Woodstock Police Department and the Harvard Poltce Department. In the spirit of coopera[ion between communities and taxfng bodies, and w[th a goal of increasing efficiency and effectively using public tax dollars, the four above listed agencies created ihis partnership. Through an Intergovernmental Agr¢ement (IGA) each agencies shares the financial responsibility of the dispatch center and provides Input on customer contracts and personnel hiring. In an overview of the day-to-day operattans of the center, at its opt[mal staffing level NHRCOM is manned twenty-four hours a day, seven days a week, 365 days a year by a minimum of four dispatchers at all times, Each NHRCOM dispatcher is crossed -Trained to be proficient in both police and fire/rescue disciplines of dispatching. In addition, NHRCOM 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 effecttve way exceeding industry standards. Staffing for NHRCOM consists of twenty (20) Full-time civilian Telecommunicators, two (2) full- tlme Lead Telecommunicators and six (6) part-time Telecommunicators working twelve hour rotating shifts. NHRCOM 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 Chf of of Police. Daily operatlonal oversight of the dispatch center [s assigned to the McHenry Police Commander of Support Services. tt� niaa [+Y � luu NINL[SIRR Duwal.e Ixr:,..:ne LRmn,e [ol[e N:,mn, D,,.n.,.a r4JIY xexnle Tr.,er Mrn.,,,,..,". ex.. ,,n.,lr,. nua,. Rlxrmae�r [aue. [ane„ Dlxo-aenee Panux'a 1.W[Nson KDIIY S'M1mm Invlala 4anu[ Mlaimly Zulxwskl Du�r.Rn,er Ixr:.[ere„ .xee IxwRene„ NatlRaau GallaNRm I<ahe inc FlnFa.a1J TocY Vaza.,a'i R[IJR•'att Nalnn Dlxraa.e Rlxlx, IxR.,.a..- [a,e Ryan M1llller Maeln hserL Llleen Reltlelmnn Na[e�WllL. r Dlsl,aeelun [anon Olxrnrcne[ Gmmllnvum TmYxMCKenJ.Y TVIorI41u4M1.. rJ TDD NERCOM - FY 20/21 Accomplishments Personnel The Following individuals were hired during FY 202D/21 in order to maintain our full-time telecommunicator staffing levels at twenty-one (22). 1{athryn Rife was hired February Sri', 2D20 as full-time dispatcher /n our Communication Center. She previously worked for Centegra. • Tyler Hubbard was hired February 12i�, 2020 as a Full-time dispatcher in our Communication Center. He previously worked For Rock County Sheriffs OFtice. Rebecca Morrison was hired August 19i^, 2020 as a foil- time dispatcher in our Communication Center. She is also an HMT with Nunda Fire Protection District. Michele ZuJewskl was hired October 1L^ 2020 as a full-time d[spatcher in our Communications Center. She previously worked Fm' Med-Cor. Pvblic Relatlonse During PY 2020/21 In response to the COVID-19 lockdown and kids not being able to attend in - person schooling -the Harvard Pire Department started a "nightly bedtime story" For local kids via the Pacebook Live platform. They invited all of the NHRCOM telecommunicatots to participate and select and read a bedtime story. This was very well received and the telecommunicators were happy to play a pair in it. The Woodstock Police Department has aSenior-C[tlzen call -in program designed to keep daily track of those who live alone. As a result of these daily phone calls with the telecommunicators, they have established friendships and have volunteered during Yheir off time to bake cookies for [hem and to celebrate their birthdays. Training The McHenry Police Department recognizes the need Yo make sure our telecommunicators offer the highest level of service to all we serve. During FY 2020/21 dispatch center training was limited due to Covld-19 restrictions but the McHenry Police Department remained vigilant in searching out training opportunities for our telecommunicators partictpatfng in approximately 879.5 hours of training. In addit[on to to -seat training opportunities, each telecommunicator participates in mandatory monthly on-line training sessions ffirough Police Legal Science. This is an online training program, which offers real life scenario based training for emergency d[spatchers. During FY 2020/21 employees of the dispatch center completed the following tcaln[ngs: Em to ee Trainin Descrf tton Dates Attelt. Maria Sose h 9-/-1 Customer Service 1/13/2020 len SyneWDexter Barrows/Iustin Leibach Drug 8c Alcoho] Impairment in the Work lace 1/21/2020 R an Millar "What if Wa Were Famif " l/22/2020 I{athr n Wilbur MBTRA Trainin 2/6/2020 119 Justin Loibaah/Dexter Barrows EMD/AQUA Training 2/G/202© Jan Synek/Dextw� BarrowsQustin Laibaab Integrated Response Cont'm-anca 2/28/2020 Dexter Barrows Commamications Cantor Su v Trainin 3/4- 3/6/2020 Dexter Barrows 40-Hour Peer Su or[ Trainin 3/9-3/13/2020 Kathr n Wilbur Emer enc Medical Dis etch 6/15-6/20/2020 ler Hubbard Emar enc Medical Dis atcla 6/15 — G/20/2020 Am McICendt CIT Trainin 9/23/2020 Eileen Beidebnan CIT'I7einin 9/23/2020 Rebecca Morrison Emer nc Medical Dis etch I1/10 — 11/]9/2020 Michele Zu'ewski Hmer enc Medical Dis etch ] 1/t0 — 1 ]/l9/2020 ALL EMPLOYERS ANNUAL CPR CHRTIFICATION 2020/21 ALL EMPLOYEES ANNUAL ICE TRAINING 2020/21 ALL EMPLOYERS ANNUAL LEAD CERTIFICATION 2020/21 ALL BMPLOYEES MONTHLY POLICE/FIRE/EMS SCENARIO BASHD TRAINING 2020/21 Funding Opportunitias The overall goal of NERCOM is to offer excellence fn emergency dispatch services at a cost that 1s comp¢titive For all participating governmental agencies. NERCOM Is proud to service six[een (16) total agencies at an operational cost that is lower than our comparables, proving that consolidation can save money without sacrificing service. Calls For Servlcea During The 2020 calendar year, NERCOM answered approximately 38,411 Emergency 911 calls and approximately 80,060 non -emergency adminfstrative calls. An addittonal 33,313 outgoing calls were made on the behalf of our customers For additional tasks. Currently NERCOM handled the following calls For service during the 2020 calendar year: McHenry Police �FOF ®lVIGe' 2t,/2-I Johneburg Police 3,6H3 Marengo Police 3,638 Union Police '12B Woodstock Police 23,653 Harvard Police 4,452 Fox River Grove Police 6,'124 McHenry Flre 6,t177 Marengo Rescue '1,366 Marengo Fira 465 Union Fira '126 Woodstock Fira 4,696 Harvarcl Fire 1,426 Cary Fire 2,086 Nuntla Fire 386 Fox River Grove Fire 760 izo NERCOM - FY21/22 Goals 8r. Objectives Below are the highlighted Goals and Objectives that the McHenry Police Department Dispatch Center will focus on during the 2021/22 tlsca] year budget. Improve the qual(ty of services provided to public safety agencies. Sveng[hen our customer base through strong customer relationships. Development and revision of dispatch center policies and operational procedures. Hire additional staff as needed. Bnsure that the McHenry Police Department is active fn applying for grants related to � equ[pment and personnel funding for the dispatch center. Continue to seek out alternate sources of Funding to supplement and/or reduce operational I costs or fund continuing successful programs. Maintain the minimum level of training for all dispatchers as dictated by policy and statute. . Obtain Emergency Medical Dispatch (BMD) AC6 Accreditation through Priority Dispatch. tzt NERCOM - FY21/22 Performance Measures .. M c:aav�¢ will ba Obtnln stale certiflrntlon Mec[,h¢.ctandard goal of All talecommunlcators sha114olaa vahmt¢d continually for gmargancy Metllcal prinriay dlspaach for wrent6MO cm[IHcetlon M1mnlOPH at all tbrougboue tbeyear and DISPaUbIn6 cci tifcauon times. Rroduced In annual ,'ePo,'[ Telec nice shall, wlehin 60 Mea w1114a Initlally process 95%of ands a(answe,9ng an emergency call, au4s[amlatetl through 6mergancy Call Processing calls within 60 acquh'e lowtlon of fncldanp phone [he use ofquartecly sergancy amnds oF[ham bah,g tuber ofcaller, complaint type, area reporting. which will answe:'ad, a a CAU evm.[ OR mmPla[e a PSAP to culmh,ate Inm an PSAP traasfcr aC least 95%of [he time annual report. Measure will be Ulspa[ch 95%a( Telecommunteemr g.Wnp shall tllapetGh at subsmnHatea through 6 m¢r Call genry etgency calla wl[h1n 90 Ieast95 %of allamergency calls wltbin the use of quarterly Dls hire paK g eemnds of them Lein g 90 sacontla of them belnH enswer¢d, raPorHnH. which will anawerea. ealminaca rota as annual raPart. Talecommunlcoeor sball, within 60 Meaaure w1116¢hasetl All C,'Iminal Not Riles w111 minutes oFracaiving ell necessary ,regular auditing of L6AD5 Hoe Plle tinny be ¢nrered without InPo:'maNm, complete each CFlmb,al Ha[ the L6AU5 CHp recortls delay. Pile enby {rem Hra L6AD5/NCIC con[a/nsa wlNan [ha aataeaae. 9u aeme,�. '1'elecommunica[or shall, wllhln 120 Measure wf114e Imtlelly p„ocass 95%of all ontla of answaringanon-emergency su4stantletea through Non-6mm'gency Cell - ergency calls cell, acquire location of lneldenp phone H.e a:e ofquar[erly processing. within 120 seconds of tuber of calleq complehu rypq antl reporting, which will tM1em being answaratl. ate a CAU even[ OR complete a PSAP to ¢PSAP cn4ninate Into an trans! rat least 95Na oflhe Hme. annual report. Measw'e will be Dispatch 95%ofnm,- Teleco w,fcetor group shall dispatch at substanplatatl thtvugb Nan -Emergency Call m'gency calls within leas[95 tioFallnml-emergency calls the use ofquartenly Dispatching 150 seconds of ttaem Leing wltltln 150 sawntls of H,em Le4,g Departing. which will anawerea. anawm'aa. am:nma<e Ima a., annual sport. ] L"L ��°o� ��_.00�� $� a owe - � e e� yi g N .-1 N� rv� o o�� e e o o� 4� e d ry 9 o. a > � S g q og3 e m � "�� a � e � m 4 � �' a �' N _ e � e w `� � m � age' a� N - N � � ��1 e^. � � �s �-t � m � F S. m � � � � � 6.1 �' � e Ia'i PY m 4 uy � 2s �. � $'' e�y a �+" �`�{ .�-T � $ p � � A gN ^�� ' g � �.t H S � � m � a � � � .^t � � � m � p ^ � ^� e � .PK„ ti �S} N 'J eSe � � � � ,q� F- N N e S e S� s R� MS. � `�" a `.� � � a S S s�� S u^. G o m a S N Sy .^.i N 10 « ^« � Ri R m .^.. .7S .K � .^.. ^..i .�.. $ 123 1V1 C� H. Fiscal Year 2021/2022 Annual Budget Public Works Administration 1L9- Public Worlcs Administration -Overview Public Works Departm¢ntal Mtsslon The mission of the Public Worlcs Department Is to respond to the community needs consistent with the policies determined by City Council, to maintain a working environment bu❑t upon trusk respect and citizen involvement, and to achieve the City's goal of being respenslve to resident needs and focusing on customer service. The Department consists of five operating sections that provide serv[ces to the cit[zens of our commun[ty. These sections include: Administration, Street Dlvlslon, Water Division, Wastewater Division and Ut[lity Dlvlslon. In spring of 2020, the Public Works Administration was reorganized to consolidate duties, reduce management personnel costs, and create opportunities for cross training between divisions. Maintenance operations are now divided into two groups: Field Operadons which Includes the Street and Utility Divisions, and Treatment Operations which Includes The Water and Wastewater Divisions. Public Worlcs Adminlstratlon Mlsslon It is the purpose of the Adminlstratlon Dlvlslon to provide direction and administrative support to the Department of Public Works. Public Worlcs Administration is also responsible For completing Gtty projects For the public welfare, to the highest quality, fn accordance with legal and contractual standards, and in accordance with City Statutes. The Public Works Department Is responsible For the management of all City Hnglneer[ng and Construction Projects, Request for Proposal solicitation for Hnglneering and Construction projects, contract enforcement, and general t¢chnical assistance For the Public Works Department. Ther¢ are several primary operating Functions within the Public Works Administraticn Division: • To coordinate with the Mayor, City Council and City Administrator to ensure proper execution oFthe City's policies and departmental programs. • To provide "ln-house" engineering services for a number of City projects, to perform plan review for development and cttility projects, and to perform project management services For the City's contracted engineering services and publicly bid capital construction projects. • To provide administration, personnel management, asset managemenk departmental strategic planning, financial management, and capital improvement program planning/implementation fora Public Works Department responsible for all municipally owned and operated public Infrastructure within the corporate limits oFthe C[ty aF McHenry. The Pubitc Worlcs Administration Division includes the Director of Pubic Worlcs Troy Strange, Staff Hnglneer Greg Gruen, and Administrative Analyst Hlizabeth Roth. Tzs CITY OF McIjENRY 1415 Induslrlal Drlva public Works Director Tray 5[fang¢ Staff Engineer Greg Gru¢n Treatment Operations Manager Russell Ruxicka Wast¢water Superintendent Russell Atlams gran smeel Administrative Analyst E6zab¢[h RoM eratlons Manag¢ Steve Wtrch UHiity Supervisur Mike Lange Str¢¢t Supervisor $ Arbortst MIk¢ Harper Public Works Administration - FY20/21 Accomplishments • Adm(nistration and oversight of Refuse Collection Contract. • Awarded "Tree City USA" For the 25�� consecutive year. • Awarded a $919,187 Grant from the Surface Transportation Program (STP) for the resurfacing and ADA ramp improvements for Green Street. Application for the Grant was performed by In-house staff. • Awarded asecond STP grant for$262,139 for the resurfacing oEBull Valley Road. Application For the Grant was performed by in-house staff. • Performed the construction engineering and management For the Court Street Parking Lot Project. Coordinated with our State Senator to obtain a $200,000 Grant for downtown parking lot improvements. • Worked with the P/nance Department to reactivate 111inois DCEO grant Eundtng for the demolition of the Central Wastewater Treatment Plant (WWTP) • Performed value -engineering for the Central Wastewater Wastewater Treatment Plant (WWTP) Demolition Project to reduce cost from or[ginai engineeYs estimate of $1,336,506 to a bid cost of $773,600. • Worked with consultants to fast -track the Central WWTP design, bidding and construction to meet an aggressive Timeline to qualify fora $525,000 Grant that is sei to expire 6/30/21. • Performed value -engineering and lift statlon evaluation for the Millstream Lift Station Project. The evaluation determined that the $2,000,000 Millstream Lift Station Project, although desirable, is not required and that project may be cut from the Capital Improvement Program. • Performed and developed pretimtnary concept plans for several Grant applications from the Illinois Department of Natural Resources, STP, and Department of Commerce and Economic Opportunity. • Developed reliable funding sources to perform $2,000,000 per year in road resurfacing. Funding sources are from MPT, 3-cent local gas tax, and personnel reductions. • implemented an electronic based work assignment system using Lasertiche software to replace the old antiquated paper ttcicet system. Performance of financial analysts of Public Worlcs operations In order to identify opportun(ties For eFticlency savings and execution of contracted services when such opportunities are identified. tz� ® Reorganized Public Works Management structure to consolidate duties, reduce management personnel costs, and create opportunities for cross training between divisions. Held a series of Public Works Committee meetings to brief the Public Works Committee on the ongoing procedural and operations reforms that are being undertaken by the Public Works Department. 128 Public Worlcs Administration - FY21/22 Goals 8t Objectives • Provide effective commun[catlon with the Clty residents about the various Public Worlcs projects, programs, and services. Ongoing management of the CLty's refuse collection contract, leaf pickup, yard waste, and e- waste/Christmas lights recycling programs. Provide respons(ble financial managementwh{le maintaining existing Public Worlcs s¢rvlces. • Continue electronic archiving efforts In order to Fully digitize existing paper records Into a searchable electronic record. . Continued implementation of an annual road resurfacing program in excess of $2.0 Million . Finalization of a 20 year Community Reinvestment Plan For adoption by Gity Council. • Management of consultant Phase I @ II englneering services For the Green street (2023 Constructbn) and Bull Valley Road (2024 Construction] STP projects. • Management of consultant Phase 1 englneering services Far the Oalcv✓ood Drive Bridge Replacement Project. Protect is planned For construction in 2024. • Management of all 2021 Road Resurfacing Programs including: In -House MFT Program, - Renew Illinois Bond Punded Program, and Supplemental Road Resurfacing Program. • Hald Public Works Committee Road Resurfacing Program selection meeting in the first quarter of the fiscal year to allow for more effective program planning and preparations. . Completion of an interim Millstream Sanitary Sewer Realignment project to remove the existing gravity sewer system From conFl[c[ with the future Riverwalk section. • Hold a Publ[c Worlcs Committee Meeting to assess the status of the Water -Sewer Fund wLth regard to long tens capital and operating costs. • Begin preparations for long term removal and control of the City spoils plte located at the Wastewater Treatment Facllity site on Charles j. Miller Road. • Implement annual review of OHSA Safety Policies for all Local 150 and Public Worlcs staff. • Begin preliminary coordination for utility relocation and overall City Involvement /n the Roue 31 reconstruction project which is Funded in the current Illinois Department of Transportation P[ve Year Highway Improvement Program. 129 Public Worlcs Administration - FY21/22 Performance Measures calrlcal lmprovamam DavemP a.. npaataa clP ana tmnamD waa tna clP anaataa a.m b anamgtaa to cna Pnanre P'aaram (cIP) m ptnanca ana pammlaratlan ana gambdmrann„ nu aeaaunea are mac Department DCPm'[.nen[ by the due dateP waa cna apm'am,g bnaeec Devemp ana p,'eam,t an npm'anng mlttaa to d,e Pinanc¢ nmmal nnagae bnagec ro<he mnanaa ana ��n�wdmtplsmmmn qn aaaaunaa ara n,ec nammlatraNan Deparnnant Daparnnenc by a,a aue dptea Raspantl m resldrnt Resident Raapondroaraslaent complalntor %oFtbne tbet Publb Worns complaints/Inquiries within one Com taints In p / quires in9uby wltnln one worltlng day tram Department steRresponas worlan de lg0%oFthe time aalpt wltl,l„one day tbm„gnou[the year Devalop sll RPP's for 8nglnearing Raquael for Proposals (RPP)DaValapmont Services and for Construction projects for which [he Cit}+performe Scotus 9fAPP's Fo,�bn and age All RPP's compleeed issued, antl contracts awaidatl forpm]eets •'m honae^ engbmaring amylaes projects In cm rent bnagarraal Manage CItY 6n61neaoln6 antl Cvns[mcHm, Projects and assmx Schedule antl llutlget smtus All 6nHlneerin8 and Pro)ec[ Management ere completed on [Ime end p, of Clry gngh,ee,9ng ana Consn'astlon Projects , get hues Canstruc[Ion Projects mplotad an time ana vn budget Assure that City gnglnvaring and All contrac[woa9a and scope Construction Projects m�e comple[etl Q,usllty Assurance of Cl[y I[ema mn completed In Cvntrac[6nforcemant In accordance with contract pnglnaering and ordsnce with contract doa,mvnts and scope of services Const,vRlon Pmjecta pmvislona ReVlew and Issvc utility permit pll issuetl parntl[s are P¢rmlt Reviews applicatlnna antl assure th#CI[y mpleted and cbsetl per the In0'astruau,c Is unaamagea or Is Sm[us of Issvad Pe^nl[ oFH,e m'Iglnal pe„mi[ R,IIY restm'ed upon mmPlotlon of aPPllca[IaR No/minimal P e,'nJ[ woNo [stantlln6 Parml[a. Technical Support for P'oVide all ,regnas[ed technical suppma Por Clly Malntanance Comple[lon status of qll ,xquesta fv,'tachnlcal Melntenevae Sniff Supe,9ntentlenls end Crew Leaaars for [ed,nleal � sq�s[ance ssistance nre comple[ea on as needed" roasts Mnanclal Manege,nant QfFldene managemav[afall opereeing Pinal Operatln6 HxPenafttvxs ,'alative [o budgeted All oPvating funds nre al o,' below the approvetl operating (antl aaountz operating axpanalcmcs buaga[and/or overages a,x anaamamea ana jnaunaa 130 Fiscal Year 2021/2022 Annual Budget Public Works Street Division Public Worlcs Street Division -Overview Puhltc Worlcs Street Division Mission It 1s the mission of the Street Division to support and enhance a high quality of life Por the City's residents, businesses and visitors by providing a well -planned, environmentally sensitive, and cost effective /nfrastrvctur¢ through superb cus tourer service. In addition, the division will provide residents with a quality urban forestry program which is cost effective and acts as a responsible steward For the natural resources of the community. The functlons of the Street Division include street cleaning, street �' maintenance, responding to all resident requests, and snow and Ice removal. All city -owned vehicles and various pieces of eqv Ipment are repaired and maintained at the Public Worlcs Facility with two full-time mechanics. The division also maintains public sidewalks and curbs. The Street Division provides residents with cost effective and quality urban forestry services and delivers responsible stewardship Eor the natural resources of the community. The arborist's crews utllize professional management practices in tree planting, maintenance and removal to Improve the qual(ty of the urban tree canopy. In summary, Street Division employees undertake the following tasks: Division crews remove snow, control ice, conduct street cleaning, and perform other necessary miscellaneous repairs. Maintenance and repair all City owned vehicles and various equipment through the City garage with two full-tlme mechanics. Monitoring and maintenance of City streetlights and signals by a private contractor. Maintenance oFGity streets by Ffllhig pot holes and patching. Monttoring of creek levels and maintenance of channels to prevent flooding. Advising and consulting with the Department Director regarding fleet and infrastructure needs and responses to s¢rvl c¢ requests. Tree planting; maintenance and removal, completion oftree inventories, performance of tree surveys For insect, disease and any hazardous tree problems, admf nistratf on of the City Arbor Day Program, maintenance of the City's status In the Tree City USA and Growth Awards Program. Coordination with other Clty departments, community gcoups and volunteers on tree related issues, and oversight oFthe Tree Preservatlon Ordinance for compliance. � Oversight of the mowing contract for City properties. 132 Steve Wire $bee[ Supervisor & MCCbanlcs Arborlst Jason Lame Mlk¢ Harper Non Barta Malnt¢na Malntenanc ¢ Warke�Ce Worker Nate eanwar[ sam surrafato Main[ena Ce Malntenanc o Worker Worker Nick Goe[[sche B¢n[on Lespera Malntena Malntenanc Workerr Worker Robert Glasca[t CM1rls Sandoz Maln[enance Malntenanc¢ Worker worker Henry Lobermeier ftick L¢Isten Maintenance Worker Pedro Potlro �� r `� � L _:i = alb Public Worlcs Street Division - FY20/21 Accomplishments Maintained level of service while reducing personnel costs through an ongoing staff attrition process. Assisted In the construction the new Venice Street parking lot. Completion oFthe bi-annual brush pick-up program. Complet[on of ADA ramps and concrete curb to advance of the 2021 Road Resurfacing Program. Re -introduced the annual brush removal and ditch Bearing program on the Lakeland Park Drainage Ditch. Pleet maintenance staff performed ongoing maintenance of Clty-owned veh/des and equipment. Division staff performed ongoing right of way maintenance Including parkway restoration, mowing, and creels cleaning. Staff successfully completed snow removal, Ice control, and conducted street cleaning in additlon to making miscellaneous repairs. Staff began a phased resurfacing of the Parks Maintenance Garage parking lot, with phase 2 to begin spring 2021. Staff continued cross -training for major operations between the Street and Utility Divisions. 29'] city trees were trimmed In various locations throughout City right-o E--ways by staff Twenty six trees were removed in 2020 with B% of these removals due to the Emerald Ash Borer. 134 Public Worlcs Street Division - FY21/22 Goals 8t Objectives . Continue to provide a quality level of service while reducing personnel costs through an ongoing stafFattrition process. Address all snow and ice events by clearing roadways to ensure safe travel on City streets. • Maintain the City's fleet in order to ensure efficient operations and maximize fleetservice life. • Repair and maintain Cfty streets by dedicating personnel to road resurfacing and pothole repair. Continued successful performance of mowing of the City's right -of --ways and property In a timely fashion. Successfully respond to all resident requests in a timely manner. • Contract with a qualified firm to survey City sidewalk condition locations; continue to identify, mon[tory, and repair all uneven sidewalk panels and curbs in accordance with surveyed locations. • Implement a 5-year striping program interval For all neighborhood crosswalks and stop bars not currently on a schedule. Implement a 10-year s[gn replacement program. Inspect and maintain the C/ty owned street light systems. Continued assistance with the preparation for Piesta Days and 4�� oFluly activities. • Plant five trees for the City Arbor Day celebration, ten trees within the City Parlc System, and 7f] trees in Cfty parkways. • Successfully assist Developers with tree planting in new subdivisions on an as -needed basis. • Continue implementation of the S-year pruning rotation In Cfty parks and City parkways. • Identify hazardous trees for removal and remove other trees as required. • Remove Emerald Ash Borer Infested trees 1n a timely manner. • Continue to monitor For Emerald Ash borer, Gypsy Moth, and Japanese Beetle. 135 Manage contracted services agreements to supplement services during the ongoing staff attrition process. ® Assist with the administration of Capital Improvement Projects including the 2021 Road Resurfacing Program. 136 Public Works Street Division - FY21/22 Performance Measures Pravitle all necessary trahting Was all n'ab+ing Staff is hJly Prepares for work Wmia h+tcrnel'Ualning forell division employees each requl+xa [or [he year relatM Iniurles a�<minlmized. yea+. mnleteax S^'aep 121 centerlatemiles Numbm'ofsweeping Clean s[ etsffiwell-t mclioning cloaetl ad+'alnage 3[ree.Cgweeph+g pe1'yea+' oydas rompletetl systems Sidewalk Mahnenance IiePab"all tmwen sidewalk Pane151aenflRed tkrongh Nmnbe+roFloca[lans mple[ea and Safer sidewalks For residents ¢iaewau<¢nrvey analog locanon. _ Wara all nece¢sary road Safe road¢. well mainCalned roads, ana As kalt Maln[enance p Pothole and spot patching ttpatr¢madax east eff>3ctive roadway malntenaoce All AUA ramps In next year's Raad Road ResarFadng Program AUA +'amp installation All AUA +amps In next roars Raaa rrngra+n Program In advance of [ka blddln6 snnpm'f proreaa. P+rovlda ail necessary dimhing Rupalrs completed -vnd Well maintained ereelas and tlrelnege Uralnage Maln[enance and creek malntenancem a [standing necessary ways whlefi reduce flte Clq's rlsl<oF naoding prevm+t M1ootling rapaKa Compleflm+ofa t' Tree Condition Parformatree survey wvey for balfofall Ctty Reduce fallm'e and m'ese+ve City'1'oecs e locations Creek Maintenance/Conn'olled One prescribed bw�n/all Succass(ul metn[enance of [be Clty's Mena Wootlland Areas ge burns mealas matn[ained natural areas/pre¢ervecreeks 137 m�e��Mm� a �� e � m o N� o� _�_��_� � m ¢ C� V � .-1 � e Z m o� Q `�`. T `y ``R` 6''-i � L: � � �' .�i N S o o_ a S' o S' 6` a o_ `N2 �}- � � c o m g 4 ei � � � o � `R .� � m' � � � - 4 o m - .-T � N < o m � � � g o o m vi vy .:y Z _ � � � � 04 c oq �' - m � � � m "1 "�� ; � � m H ��t �. M e � � � m � � r/ .-i a '' u __ � � � � � � � � � � � � � � � o o e m � � o � c o n v ti _ �' � o ^'.. � � � a � � � e o v m m a¢ He - � � .rye.: .�$' e g o o � � y � s m `�- � d � g � @ � � � � a ti � � � � � � � � � � � � � � � o�35 � � � � � � 9 � _� 3 � � m o '�.�' S � � � � c4 �" 2 � � � 0 � � � � o_ o_ o_ o_ e e o 0 0_ o_ e o o_ o o_ o_ e e V o 6� g < g O� < � � N _ � � N �i b � b vMi o m o efv rry r� N� tmV N mry e� m m e� M� m 138 §%$ �(f yEE +® #** )) m § a � � � § --3� G R �§7 . 2% �22 2.7— \ - ,) )e ( - \2 !\. {f§ \k j)j %\k \ m�,ma�,�«��«, Fiscal Year 2021/2022 Annual Budget F�arl�s and Recreation �40 Parks and Recreation -Overview Mlsston 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 McHenry �r activities, facilities, and open spaces are important to individuals, families, and community life. The Recreation Division of the Parlcs and Recreation Department consists of four Full-time and one part-time personnel on th¢ recreation side. Dir¢ctor of Parks and Recreation Bill Hobson works alongsid¢ Athletics and Aquatics Superv[sor Nicole Thompson, Recreation Supervisor Cindy Witt, Pitness Coordinator Becky Moore and Guest Services Specialist Alicia Barnett to coordinate the various programs, events and services provided by the Department. Additionally, staff oversees the management ofthe McHenry Recreation Center, Petersen Beach and Merkel Aquatics Center facilities For the Department. The Parlcs Division, consisting of Superintendent of Parlcs and Downtown Maintenance Pat Gorniak, Assistant Superintendent Jeff Friedle and five (6) full-time Parlcs Maintenance Workers cont[nue to taclde the massive task of maintaining the City's more than 650 acres of park space, contained in th[rty-eight (38) municipally -owned park sites. In add[tion, the Parks Division is responsible for maintaining the amenitles of the C[ty's three downtown business districts -Riverside Driv¢, Green Street, and Main Street. tai � \ ° � `- \k$ \{ \ :- .§ ! §�` ! )§ !, �� }! \! \� �� Parks and Recreation - FY20/21 Accomplishments 6ecreatlon Center • Recreation Center took a huge hit in 2020 while trying to navigate the Covid mitigations. Membership totals have continued to decrease m nearly 1,400. These "active members" are paying members who are in an annual contract, in good standing, and do not include employees, punch pass holders or other short term memberships. From March through end of December, the Rec Center received almost 63,614 visits From fitness members. Special Events • The challenges of the Covid-19 mitigations eliminated all the ZOZO/21 spec/al event. Programs Six sessions of the Explorers Camp (ages 4-6) were converted to "Camp-fn-a-Bag." Activit[es, arts Se crafts and games were prepared and could be purchased and picked -up. • The Summer Day Camp (ages 6-15) was smaller but still successful this summer. Ten weeks of camp were held outside with an average of 40 campers each week due to limits on group size. The fall/spring dance program began in -parson in September. Por a few weeks, the program was held vfa Zoorn. There are 96 students participating. A dance recital (with no audience) is scheduled to tape place May 1 at McHenry High School West Campus. Art, Alphabet and Number themed "Bags-m-Go" were created for toddler -aged Idds. Bags of activities and supplies were prepared monthly and could be purchased and picked -up. To date, 33 bags have been purchased. Successful In -person classes include: Safe Sitter Babysitter Training, Magic Workshop • Letters fYom Santa were sent in December. Bunny BreakFast is scheduled far early April. All the supplies to make a pancalw breakfast, along with Easter eggs, craft projects and activities for bids, will be packaged and delivered to Families. • The McHenry Recreation Center community rooms continue to be a popular location for Family and business gatherings. The community rooms were utilized for birthday parties, bridal Se baby showers, seminars, meetings and celebration of life luncheons. Collaborations -Programs offered working with local businesses: o Snapology of McHenry [in -person) - Animation class (fall) o Totally Cupcaked (pick-up) -Monthly kids' cupcake club (fall, winter) 143 Athletics ® All programs were put on hold or cancelled during the Spring of 2020 due to the COVID guidelines. Some programs were able to be implemented in the summer following COVID guidelines while other parks departments had cancelled everything until fall. Staff did a great job of ensuring COVID protocols were followed while offering some normalcy in programming. In total, the department ran 22 programs over the summer with a total of 79 athletes enrolled. The toddler leagues for soccer and t-ball continue to be successful and a hit for summer programming. ® The adult softball leagues ran in a shortened form in the summer and fall. Teams spoke highly of the condensed format for fall and having two games a night. Five teams participated in a summer league that lasted for 6 weeks. That number expanded to 22 teams in the fall ball league. ® Fall swim team registration rose with 30+ new swimmers bringing the fall/winter team total up to 87 athletes. The department hosted a USA Swimming sanctioned meet in November before the Tier 3 closure. In the fall of 2020 the department formed a new partnership with Running Junction Stables. Through this partnership horseback riding lessons were brought back to our parks program offerings. We had a class run in October with 5 students. We look forward to expanding our partnership with them at their new barn opening in January. The program offerings were extremely limited this year in large part due to facility availability. We lost all indoor locations with the schools being closed. Thankfully, it was a great fall to get some outdoor activities in. The department was able to get 7 outdoor fall programs in and serve 48 kids from September to October before the weather changed. The newly installed pickleball courts at Knox Park gained more than 3,000 exposures on Facebook including being shared on Star 105.5. An equipment check out was set up at the recreation center front desk for players that included a small rental fee of $5. The courts saw a busy first year with anywhere from 8-10 people waiting to play during peals times. It was a great addition that had been requested for the last 4 years. Field rental revenue greatly increased with local organizations suspending play and outside organizations looking for space. We were able to bring in $8,000 in field rentals utilizing our parks across town. We will continue to work with local affiliate groups on field usage. Aquatics Due to COVID, there was a large increase in the number of people utilizing the beach. At the beach patrons were able to social distance, swim, and utilize our boat rentals. Our pool did open in August after the completion of our liner project. Having both of these facilities opened helped us serve the community while other districts closed for the entirety of the 2020 season. 144 ® The beach had 2,206 visit and brought in a revenue of $11,000 from admissions. It is the most that we have ever had, and it occurred in just two months. ® The pool had some upgrade projects during the 2020 season which included gutter concrete work, gutters painted, a new pool liner and chemical control system installed. The hope is for the improvements to help the pool operate efficiently for future seasons. Staff did a great job of implementing the new COVID protocols at the facilities which included cleanings between swim sessions, constant equipment disinfection, facility limitations on number of patrons, and adhering to social distancing rules. ® In total 563 people visited the pool during the 2020 season. Annual pool passes were not sold in 2020 due to COVID. ® One the pool was reopened some smaller programs were able to be hosted. Ten (10) group swim lesson classes were held. In addition 39 private swim lesson were sold. In August, we ran a swim team stroke clinic for 35 swimmers. ® We had 4 private parties for the 2020 season. Parks Improvements Miller Point was once again the focus of some improvements along with a key private/public partnership. The Parks and Recreation Department utilized Developer Donation Funds to install floating boat docks, a sandy beach area and to run power and water to an upscale shipping container that serves as the rental office and concession stand for a boat rental business. The business provides paddleboards, kayaks, canoes, pedal paddleboats as well as restored mini-retro boats. Covid restrictions significantly delayed their opening and also limited their business to just one month however, it was very well received by the community during that time. 0 As referred to earlier in this document the department was able to add two pickleball courts to the Knox Park tennis courts. In addition to transitioning one of the tennis courts to the new playing surface, all of the outdated and broken light fixtures were replaced with new LED light heads. Another instance of light head replacement occurred along the length of the Riverwalk. Through routine maintenance inspections it was determined that there were a number of the heads that had cracks in them. The Parks Maintenance Superintendent reached out to the manufacturers of the lights. After a number of site visits and conversations, the company agreed to replace all 43 light heads at no charge saving the city over $80,000. This is a direct result of the relationships that Mr. Gorniak has fostered with the vendors he utilizes. ® Also along the Riverwalk, new color changing LED rope lighting was installed on the pedestrian bridge. 145 The very popular fire globe program was expanded once again this year through additional donors, adding three more fire globes. There are now 11 total globes that are lit with fire in September and October. The remainder of the year color changing LED's are placed in the globes. Nearly $200,000 was invested into another washroom remodel and expansion this past year at Veteran's Memorial Park. The women's facilities went from 1 to 4 and the men's from 2 - 4. This also included re -roofing the entire structure. The city was able to demolish the former Court Street Water division building. A number of donors stepped in to convert the site to additional downtown parking. The parks maintenance purchased and supervised the install of the lighting on the project. ® Another demolition occurred at Neumann Park last year. Old carriage houses and workshops were removed to aide in creating a visual link between the parking lots and the street. This park also is being explored by abutting business owners for the potential for use as outdoor patio space. Street lighting on Green Street and Main Street were upgraded to LED light fixtures. ® Finally in the downtown areas, new street signage has begun to be installed. This will be a phased approach as the conversion happens. ® A project that had been in the works for a number of years was completed at Petersen Park last year. IN an ongoing effort to make the park as accessible as possible a path was paved from the concession/washroom building around and in between softball fields 3 and 4. ® The basketball court at Shamrock Park was stripped and resurfaced in 2020. ® The Maintenance crews installed 175 tons of ballfield mix and spread over 300 yards of mulch in our playgrounds. 146 Parks and Recreation - FY21/22 Goals St Objectives Continue to maintain the City's quality parks and parks amenities and Yo offer quality recreation programming For our residents Coordinate with user groups, service groups and businesses to manage McHenry's Fantastic public events Enhance D¢partment's sponsorship program. Continue to d¢vetop relationships with school districts, chamber, and various social clubs in community. tam Parks and Recreation - FY21/22 PerFormance Measures •- • a MTSure [he nepar[menPs Are the Department's Mmketing arketing aYcvlss antl Tarke[Ing efforts r¢aching [M1e October 2021 errleuvenlaa. mtlnala aYalenx! ana wmm mltimas ar! most eHecNve3 Explore oppoxWnitles to Wha[technology are we ImpmVe cYs[omer aervlce antl ullllxing aptl is l[the most Technology tlepextTent oparatlons Mraugh eHacUva [OOI far tha apeClflc November 2o21 the lnboducHon of tesk]1,¢. Programming technological advancements. Softwar¢ Invest In tralnin8. retentlOn e[hotls�staff recognition antl How do wllmprove the Staff Development/Retention ss VapJng In order to pvfarmenc¢ofdeparlmen0 December 2021 develop staff workforce ana ataH] reduce turnover lass. What Is the value of a TranslHon memberss on hold mberahlpi Are we Membership Rebuilding back [o active status and etld ontinuing to offer the most lanYary 2o23 200 new members for [he year n[group ezercl5e ciesse5] Arerwe maln[alp a clean fadllt i 1hH �� m�� m moo��.,�oo4m�H � ovo ome��ooe a .� �� -- N Q � �. .-. g M — eo � om � o s V� � 4 � � � n � � K o m � e o � � o � � o � � o o � o � z - � e � � � � � m o m � a .-a [d � K � � N m � g M � � �� M � � �' � � _ � x � m .� C O C e�-1 m �ry n. w N ti o � m �a e m o va e_ a_ � o_ o x � � ^ppp�I H � � Y � igY�r� Lg�G'� q C � � o � o � ,B � � � XI # � tl � 5,�' � � '� � a`d °Y� m g .a m � � � m � '� � � � � a 5 a � � Fg � � 2 _ _ o a� �` r�- = o 0 o m g � * � o o M .�"{ .".. � � : .Y, S. t^.. s 3 S w a o ... � ... m o FY. .^J � S'i. .`�.� G � �t .4. .r ^.. S. 149 � ()f)$ awes« ,®;§§§ Rm¥R $m§§} _ \.\�}/ ..... {2f/) , . )!}^) )�[$}/ /� 7/ \ , ` � m§m\& - Q 3& , 9��7 _ )7§§) § )7§) \)}j f)�.` \ � ! k , «,eee �!&/m n- /■§(§ !f - £,�, ki)j)/ �\{)) \ )�\\k mm:,m,�«_a „ »*lammm,m.�, _ � � �c�.H .,..w. a..�E Fiscal Year 2021/2022 Annual Budget Special Revenue Funds Fiscal Year 2021/2022 Annual Budget Tourism Fund 1il Tourism Fund -Overview The purpose of the Tourism Fund {s to finance Wurlsm-related promotions of the City of McHenry. Revenues of the Tourism Fund are derived from a 54o 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 ofthe annual independence Day fireworks in Petersen Par14 and on the municipal portion of various f¢stivals and special events held withfn the municipality such as Ffesta Days and Blue, Brews and BBQ. For FY21/22, the Tourism Fund Is being uses to conttnue to pay me principle and interest on the acquisition of the Green Street Parking Lot and For the purchase and Installation of4 new City Gateway Entrance Signs. 153 §! � . ,f§/}£\) ()!)k} . .\}/./ ... //..../ � F2 )`��/ ) 22 /) $ } \ - } � �»2�/7 �°�`�� 2f $ ° \�\ ( \ k® m#K#§ 7 § E§ $ -- ) - ®�» m§.%,—.—\— �� ,\ , ...%y }. /eeef\/ /� () /a/—(—} ,� �_ & - 'a ` ....�� 7�\ # § � )®� � // / \ _ } \�\ . 2 � � ` � ( � \ ( 2 ` »�! � !,}]§H § } � _ \//k\)/ !§ ]!� ( ] !§ ]/}§.§ _ - - ,.,�, � ,,�l� ,$ lul_I C�H Fiscal Year 2021/2022 Annual Budget Pageant Fund ,,, Pageant Fund -Overview The purpose of the Pageant Pund is to account For revenues and expenditures used to conduct the annual Miss Mci-ienry Pagean[. 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 [he McHenry District 156 school distric[ 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 dona[lons. Bxpend[tures are directly related to the holding of the pageant. �(y �� e , �/� ,i k, Yi n � `�, � i "v �� 1 i � ,. {. Z �y� � '�`i `Y + ® � i , r, '75 R ®.E §�R EE } � '!I \ §�§ /& 3 ® R : � �§» ..z �\ \\—§—; \ : , �\\ &�« Em 3 R�\ R-.�\ � -, § } � �f � > } / § ,\[ !/ "2 % \ m !=a � ) : /\§ k§ ) ki§ § ( ® a �, �� `f�,�«\,�\}=,:ar,/}ma�\nmmm=m\ x[ w n• o s i x[ i o a n � v[ n ��/�M1%V �t4C� Fiscal Year 2021/ZOZ2 Annual Budget Band Fund .,. - Overview The purpose of the Band Fund fs to finance and account for expeiiditur¢s 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. i r. o ..// ... �.. � \ °- ® #k \ § 33 ;n � ;�§} , � � 7 ` ` � \ � : — � � R � � � � ` � � § / � � \ ` � . :_ § m § as \ k�)§ «§. kk§ k ) .e � -� mmk m §s � � �c�He -� �r��o�� 11 [ P P 1 a T f O R 1 Y[ Fiscal Year 2021/2022 Annual Budget �1V11 I�efc�Y1SE� Fund 361 Civil Defense Fund - The Civll DeFense Fund accounts Is for the training oFpersonnel 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 pubic noti Fication systems. Revenues are derived From a General Pund transfer and expendi[ur¢s are as -needed. 162 : \ �E» g7 §'K 1. 2 ®3g Rr § \ \ �� \ !}\ \\ a \ � � � \ _ t ) - ��§ ��§ \ ) _~ k)m /§ [ \ / \ �� ® / O[ A P t O f 1 M[ f O F P 1 Y[ P � `/�r^1V L%�"A`% Fiscal Year 2021/2022 Annual Budget Alarm Board Fund 164 Alarm Board Fund -Overview The Alarm Board Fond 1s to pay for the maintenance of radios and "head -end" equipment in the municipal 911 dispatch center (NERCOM). This equipment comprises the city's direct connect radio fire alarm monitoring network City businesses which are required, by building code, to have a fire alarm monitoring system are required to be monitored via direct connection to NERCOM. This direct connection helps to ensure a more efficient emergency response. 165 `e§§ ± } ® 2\\ / \ \\ \ � \ `�}) # E \ ° -{ \ - « � ® »$§ - i , � \ / � - # �. � ��)) ) ) \ \ �§ \ ;e$) \ ( � \ k � . � /2 \ �\\§ ] \ 7\\§ � ) �\ � ! -J ƒ� mmm m; :: C'1'�iE a. ,�. ,o Fiscal Year 2021/2022 Annual Budget Audit Fund i6� Audit Fund -Overview The purpose of the Audit Fund is to account for expenses incurred to complete the annual audit of the city's Financla7 statements. The State of I]llnois requ/res that the C1ty of McHenry conducts an independent audit on an annual basis. Statutes provide authority For an entity io levy a portion of the property tax to pay fm- the audit Slnce the authority to levy a property tax far 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. r�—®� � _ ��// r � F. ��•�- l-./�- -- �__ - 168 §[§§§ 33 � :� �!° f ¥ : J -% 7��\��§k /�« > }§ � —�y , , � � G m \ a a s @ � _® " � % \} ( . �, � \�"§q }/ � } � ��/ ��'/ 2` §7 §[ ƒ § _% t � - � — �� \ e � - : q _-_� $ - ` § �\/ / \� /\k/§ \ / » � m -) / mmm; { Fiscal Year 2021/2022 Annual Budget Annexation Fund „�� Annexation Fund -Overview The Annexation Fund is anon -operating Fund that is used to _ _ _ �.- - ' '—' I account For receipts From generally non -recurring revenue � �_ � a 8t�d � sources resultin From ne otlated annexation a reemenes. �t'�' . `: ,.� �( S g g `� % � ig, . Revenues Include a Fee assessed on gravel mining on a per � ton basis, revenues ftrom property being annexed into the � - City on an acreage and lot basis, and an additional per unit \ � �"' Q` ji �I fee that is distributed to other taxing bodies. Bxpenses fn the � � � � ' Fund are related to Improvements to infrastructure or � _ _ � municipa] facilities. i�t ®� � -\ \ ))��ƒ§ )��)i § \ \ � K`b ®�`2� 2'2 � � & §`2 �% : §)7�$} \*� ) ) § \ `_ \ § , %®�'2° ® _� ) 3 � �� , \ © ~k � � `r �)� 7 § $ � •)�k\:k -3e$//f { § 7 \ �))\/(/ƒ/§ k Q ) �,/— ff?))! 7 2\�f«ki/ww � - ,g � � 3 � Fiscal Year 2021/2022 Annual Budget Motor Fuel Tax Fund ,,, Motor Fuel Tax Fund -Overview The purpose of [he Momr Puel Tax (MPTJ Pund is to prov(de dedicated revenues From taxes on gasoline and diesel sales prtmarlly to road Improvements and maintenance. Motor Fuel taxes ROAD are generated by a flat rate of cents per gallon, plus a sales tax transfer. Thts sales tax transfer was elimhiated by the State of WORK Illinois In 2000 and replace by certain veh[cle registration fees. In 2010 the municipality issued a $3.5 million bond for local roadway AFIEAD improvements and the majority of MPT expenditures are to service this debt. This debt service was retired In FY20/21 and, beginning in PY21/22, the entirety of [he Motor Fuel Tax revenues w311 be dedicated to the Local Streets Resurfacing Program. This, combined with a local motor fuel sales tax that was Imp]emented 1n FY20/21 and Illinois Bond Pund revenues will permit the municipality to implement an annual Local Streeu Resurfacing Program of $2 million per yer. 1�4 � § �® ®»��§ |& � §§!! |22\\!;ƒ).2 \ §$ ( (\ () )� �' #K k/ \I $( () � \/§ _ � " * \ \i\kk ( � §m2! X[ k P T O[ 1 M[ f O k R 1 Y[ P � �(/ Fiscal Year 2021/2022 Annual Budget Developer Donation Fund „�, Developer Donation Fund -Overview The Developer Donation Fund is to account for donations collected 'i from developers on behalf of the primary and secondary school districts, fire protection district, library district and the municipal I park system. Developer Donations are collected to ensure the provision of public facil[Cies to serve new development by requiring each new developer to pay a calculated share of the costs of such i improvements as a condition of approval. 6y municipal ordinance, anyone applying Fora building permit Fora residential unft are requ/red to pay fees for each unit constructed. � ii �000�zz�o�ooP voaogm� -_ nF .� ak �� — � 4 a N 0 _ 0 _ s S m o 0 0 0 4 �� o � � o =e o � .��y � g M g � o � o � � m _ o - o c, 0 g g c o 0 o g 4 N o 0 0 0� �+�. o m m C o � O _ c � ry A m—e— N � R .-� y "L `u_ "`2 �$ � e 4 $ � e d o eS � .�i m .Mi � W A _ Lv ti e_ .-i m_ m � O _ � m �_ < � � e`a1 m b: N' � � v�C � s vim' .�} °Q' � � mom..` m' o V O � C $ ��y+' � - q� � � � t� � ,. � ge '�i m 2 � - � p N `� $44 o C � G � C 0 � � 6 o v "P y g�g � o p $ Y��j � 9 8 8 3�g S .y �" o O °`S E 'g. ¢ � St '� � e egg � y4 5 y ��.' W � 'q$ � � � � � � � { �' j � � GKY �� C"y C] p C .g V � 0 K K F 6 E C G O Q� �� o 0 0� m m m g h w $: e m .m-� m m Q `T o Qi � `a ry � c 179 Fiscal Year 2021/2022 Annual Budget Tax Increment Finance Fund Tax Increment Finance Fund -Overview The Tax Increment Finance (TI FJ Fund accounts for revenues and ¢xpenditures related to the ctty's Downtown Tax increment Finance District, established in 2002. TIF revenues are derived Erom the collection of property taxes each year at an increment based ¢n the Increase in the assessed valuation of propertles within the area since creation of the district 13xp¢nditures are related to the repayment of private development "extraordinary costs" per approved development agreements and for public hnprovements within the district which increase the value o£ all properties within the area. The City is curr¢ntly in the process of coordinating with other taxing districts to extend the existing T1F the permitted 12 years. This will be a primary Eocus For FY21/22. tee / () k)�(\ i \ { ) � � *) �)} (®i$ 2�/ _ -� kk�)) ) \ )*�) � _ : $�)} )%�)) ))} �) 2 - $�R$ m5/§® 4 & �e -� ..� e , ® ;m�.�» � .. _ �� / ~ . R � - - / , ®f§ �))i k � � ` )\\\)N � 7 #n_.a§ � k ktak w_ ( £)§))_ �^ \m■ � / �2 G@■2!` Fiscal Year 2021/2022 Annual Budget Capital Projects Sz. Debt Service Funds lvlc�t�le -� ��'��° �E.w. ,., Fiscal Year 2021/2022 Annual Budget Debt S�r�i Fund iB3 Debt Service Fund -Overview The Debt Service Fund accounts For the bonded indebtedness incurred by the Clty's General Fund, including bond and interest payments. 1aa 1V1 �'�rr=1 e =� i Y'' �OBo 0 0 11 E 11 p♦ O[ 1 N E f O F p 1 V[ p Fiscal Year 2021/2022 Annual Budget Recreation Center Fund on 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. i�.r� i i, �� `�� _r In 2013 and 2014 City Council undertook a process to evaluate the feasibility of various options for recreation facilities, includ{ng Che 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 Recreatlon Center was opened In Pebruary 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 3n the Recreation Center Fund tc cover any star[ -up operating shortfalls, to serve as capital improvement Funding For Facility needs, or seed money for future expansions of recreation facilities. In 2020, McHenry and the world navigated the Covld-19 pandemic. The restrictions imposed by the State of 111inois closed the facility entirely for over 3 months. Hxtreme restrictive mitigations lasted throughout the remainder of the 2020 and have cont[nued into 2021. This has had a near catastrophic Impact on the membership levels at the Recreation Center. Membership levels have hit the lowest levels ever at 1,300 active member and over 250 memberships on hold. Recreation Center Fund - FY20/21 Accomplishments Recreation Canter Through the end of February 2021 we had 1,306 active fitness members. 7890 of those are residents. These "ac Hue members" are paying members who are to an annual contract, :n good standing, and ao not include employees, punch pass holders or other short term memberships. These non-traditional membersh[ps account for approximately 70 addaic nal memberships. From January through end of December, the Rec Center received a total of 63,614 visits From Fitness members. Group exercise classes tonic on many formats this year as mitigations Forced the suspension of l[ve Indoor classes on and ofE for much of the year. When the weather allowed classes were moved outside. fintire class Formats were moved to thevirtual world, utilizing platFormssuch as Zoom and VouTube. In all, aver 1H,000 un(que attendees ut[lized our group exercise classes in ZOZO. We offer 56 classes per week in categories ranging From HIIT, Strength, Mind/Body, Active Adults, Barre, TRX, Cycle, Cardin Kickboxing, Dance, Pflates and Kettlebell. . We lost many members due to the 2020 Covid Pandemic, and many more placed their memberships on hold during this Hme. However, during this critical Ume our staFFwent above and beyond offering zoom and YouTube classes throughout the entire year, made personal wellness calls during our time of closure, and have lcep[ the cleanliness of our Facility of utmost importance. Due to [his fact, it no[ only continued the family like atmosphere that we strive for but also created a safe place of wellbeing for our members that Is so desperately needed during these times of turmoil. Now that our members are venturtng out again, they are also bringing their friends and Family to Join them, creating new memberships. iee Recreation Center Fund - FY21/Z2 Goals 8t Objectives • Transition on hold members back Co active members and add 200 new members over the course of the year. • Create a collaborativ¢ 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 DepartmenCs sponsorship program and apply it where applicable at the Recreation Center. is9 Recreation Center Fund - FY21/22 Performance Measures Tbvugl•outreacb to membeK Ta malnialna 60%11[ne¢s antl wntlnual upaab of Memnerslnp loss is mlNmlzea Membarsblp Ratlutlon membership retention mte for aHerings� th0 8oa1 IS to keep antl client base remains fairly the fadllly. members engages antl constant. mcemssea. Ip mentlrymga comprebensme Further develop antl apply a ¢ponsorsnlp program, adalHanel fastedng community Sponsarsblp sponsorship program [o [ne unity connections will be par[nersM1lps antl asding a Reweanan center. n. tea a wen Ipcmaumng aaaabmnal revenue ¢[ream m the raenRy revenue wnae I¢ the awe of a TTansltlan members an M1ala mnarznlp9 qre we Rebulla membership base Membershp Rebuilding back to votive status antl atla ontlnuing [o offer the most Orama[Ically Impacted by the 2OO new members for the year ntgroup eaerdie dosses] Cov1619 Mltlgatlons Ar¢ we maintain a clean fadll T 190 �=� z z�o�ooee��z��°o d � �. -- o o 0 0_ o_ o vy c m �_ � o 4 `2 e o � _ N m N � m m q ua � � � W o ems-! �-i .�-� a:t a .�+ � C 'Y O i� o e o o_ o_ o� ee q e �R o 0 4 0 "i o m� �_2 o � opt � _ � � z � _ _ � .-i � � V _ � Qom` mR c � � � � m .� � � z2 � 4 � - .i � o m C O iggq _ $ � � K N � c e e � � � s e e � �-T �e � � m m 0 � � .y N rn -vNC� � _ m � m � m 4 e O �.,7 ^�] ^ �� a} m 'O pp p 0 m ppy o y' �S �� yy _ vy CQj E �S. � 'a 0 � � � � � � � S 4 � � � � � � �� }gi � � GG � ey � C� � � $$ 9 � � � � �. b U ��pq v C a !� 6 S � .y g � � � h � y�y m 6�% � e � � � .� � � e u'i .65 m ... < v. o M a v, m m s� $,i � rv�� a�� m m� M� M 193 e��e:� Boa �s��oo�mo�� zNoo�� v�� P �� oeeee�o �� o m iet vT L o N' o m m o `2 �� o m m e v��' o o a� o n Pa �. K � � n� e m � _ � _ 0 o o N q m' c q o M �' � c o 4�$$ a Z`� o m am3 .„i m o m w S c 4 i't � m � �� o c ? � _ _ o � _ _ ay ey o o � c � � � m � � e � � N � � 5: g e�'t � �' N K � .'7 � � s .:t � � v„'i_ g -� C$$�`� � 6 a n � � {? � P � n � � � � � � s o � e � � a � � � 5 � � � '� e: a � � � � o o dY � � � � � � � � s � � � � � � o .3 3 � a � � � � ge� '..� � o o k, � 0 0 o S�� 0 0 0 o K. o o a 192 ....2./§ / ,ƒ--..\/..\\ 33®m�§7[: ....//\ƒ § \.( �3 ■ E3\m�##® ) 2 - �\}) §7rF!\§/ 72�\�if \ / / ,) - r#eee2«[ � _ \ \ �}}�(��) ( % } §3&m§E%[ _\ m § �\ 7 �� \t`r��R � )\$\m § �� !!� ( ]§\2!£)& kf`��R®) § ) d 15#kA!«§ l2t7)!)m a Q rw��rr�m�.,ama.me,ma�mm,=,e l�%1 C�1�. .�.A. o� ,,.E Fiscal Year 2021/2022 Annual Budget Special Service Area #4 Fund ,�4 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 (Spec[al Assessment). The SSA Is to expire in 2024. i •�, � \�»\ \\ f 7 , \��\ \K ��` � _ � �,`� 7% `� °q\� -- : » -\ � \^�7 \\ ) � � / . � ` ° �§ \ � � � � _ } /�)� ( \ \ )) \ ,) _ ƒ ; „ Fiscal Year 2021/2022 Annual Budget G �.�]r ltd.l �m�Y'(�VE''1'Y1E'11�5 �Lil1t� �9� Capital Improvements Fund -Overview The purpose of the Capital Improvements Fund is to account � �` For funds identified for the maintenance and construction of public in Frastructu re projects other than water and sewer utlHtics. This includes roads and public facility maintenance, /��1�� improvements and/or construction. Na operating costs are \� V included 1n the Capital Improvements Pund. Capital / `: Improvements Fund revenues are derived from transfers from ` �� \` other funds, primarily the General Fund Assigned for Capital. � `�ti�. `„ >,\. ` �/(~//(� {j//\�� : �& \\ k \\\ - — �§ ' ® , 2 E ! % ..\•\7\\ �/ \l.j.../ \ \ , �\ ® " �R #c ■2 / } � � �K �2 , ` � 2§¥�§ 2 ® % 2 / - �� \ ��- �\�},\ \ �}\ � �� )/RI»/ -2 , � � ; e ! k : |!t $ �\ _ \f(kk ®{{§ - /; � )!])|ff§ ) " _ ]\£,i{/q � !G!!)))w 3;2a2alk G�] �/ �� „ _er �a.!§2` �f __ Fiscal Year 2021/2022 Annual Budget Capital Equipment i a�rr i Capital Equipment Fund -Overview The Capital Equipment Fund is utilized to trecic annual ' - \ expenditures of equipment replacement (e.g., vehicles, _- ; '� computer equipment) as identified in the five-year Capital G1��Q+ Improvement Plan. No operating costs are Included In the ��`` Capital Hquipment Fund. Capital Hquipment Fund revenues � � .� are derived from transfers from other funds, p y `�<`'' rimaril the � 4�, ��ti, General Fund Assigned for Capital ``� ;; ^.•;h"�:k. zot .r.r ... r m § �2 - — � R , � 7 ~) � _�_� / . \ �\)k } ktf§ ( . ' 2G)2 ! »im b § - 7 �¥ � §aE , m2 °: ,. Fiscal Year 2021/2022 Annual Budget Enterprise Funds ,., Fiscal Year 2021/2022 Annual Budget Water 8z. Sewer Fund Water/Sewer Revenues and Public Works Water, Wastewater, Utility Divisions z�, Sewer Fund -Overview The Water and Sewer Fund is an enterprise fund —that is, a buslness- type fund utilized to account for operations and activities that are financed and operated in a manner similar to a private bus[ness enterprise, and where the cost of providing goods and services Co the general public on a continuing basis is expected Co be recovered primarily through user charges, Inctud5ng 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 3n 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 Dlvls[on was established In FY15/16, combining existing Water and Wastewater DlvSsion Maintenance Workers to specifically address utility system maintenance needs more routine]y. 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 util5ty maintenance projects. The expenses for the UtilSty Division are spl[t between the Water and Wastewater Divisions as Follows - approximately 63.7� of operating expanses are paid from the Water Division and the remaining 36.346 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 su Fficfent 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 FYlS/16, water and sewer rates were adjusted annually based primarily on the Consumer Price Index (CPI). Vnfortunately, this CPl adjustment dtd not correlate to the actual cost oFoperatlons For McHenry's Water and Wastewater Divisions and d5d not account For the spec5fic capital infrastructure needs of [he municipality. This resulted in a shortfall in water and sewer revenues and an inability to fund water and sewer capital projects oFthe existing systems. To address th[s the City commissioned a water and sewer rate study that was completed in FY13/14. The results of this analysis identtfied the need to adjust water and sewer rates at that tune and to annually review and adjust water and sewer rates based on operational costs and implement water and sewer base Fees to Fund utility system capital improvements. The narrative that Follows provides a snapshot of the status of the Water and Sewer Fund and Identifies operational and capital expenses. This is Followed by more detailed summaries of the Water, Wastewater and Utility Divisions of the Department of Public Works. 205 FY21122 Water Division FY21/22 Water Division operating expenditures are proposed at $2,456,112, an increase of $7,164 from FY20/21. This increase is due primarily to personnel cost increases in the Utility Division that the Water Division is responsible for. Budgeted Operating Revenues for FY21/22 include a recommended water rate increase of 8% (3.54 to 3.82 per 1,000 gallons) in order to meet the budgeted operating expenses. This is the same rate increase that was recommended for FY20/21 that was not implemented. Rates will be further addressed after the budget is approved and discussed with Council before they need to be adjusted in August. It is estimated that the existing $2 capital base charge will generate $125,000 in FY21/22 for capital projects. In FY21/22 this amount, along with Water and Sewer Fund Balance, will be used to fund the following water system capital project identified in the Water and Sewer Fund CIP - $200,000 for Route 31 Utility Relocation Design Engineering. Overall rate increases will be discussed on the base rate at a further date when repair/reconstruction projects for water/sewer are discussed and prioritized. FY21122 Wastewater Division FY21/22 Wastewater Division operating expenditures are projected at $3,294,276, a decrease of $82,230 from FY20/21. This decrease is due to lower GO Bond Principal and Interest payments due to refunding the 2010C GO Bond. Proposed operating revenues for FY21/22 include a recommended sewer rate increase of 5% (4.00 to 4.20 per 1,000 gallons) in order to meet the budgeted operating expenses. Rates will be addressed after the budget is approved and discussed with Council before they need to be adjusted in August. It is estimated that the existing $4 capital base charge will generate $270,000 in FY21/22 for capital projects. This amount, along with existing Water and Sewer Fund Balance is used to complete capital projects, in FY21/22 no capital projects are identified to include in the budget. Overall rate increases will be discussed on the base rate at a further date when repair/reconstruction projects for water/sewer are discussed and prioritized. FY21122 Utility Division FY21/22 Utility Division operating expenditures are projected at $1,017,301, a decrease of $29,109 from FY20/21. Personnel Costs have decreased by $21,609 due to restructuring in the Public Works Departments. As identified in the Water and Wastewater discussions above, the Utility Division is funded through transfers from the Water and Wastewater Division revenues. If in one year the transfers from the Water and Wastewater Division exceed expenses within the department, adjustments are made in following fiscal years. This will result in lower operating budgets for the Water and Wastewater Divisions. 206 Public Worlcs Water Division Public Worlcs Water Divlslon Mission - - The primary Focus and overlying responsibility of the Water Division is to provide a safe and reliable supply of potable water. n ��nn This is accomplished by producing. treating water and conducting I' 111 over 500 required water samples, thereby meeting or exceeding all federal and state health standards. OF mat or importance to the Water Divlslon employees Is providing the consumer with the highest level oFcustamer service possible. We believe this inspires public trust within the community. In summary, Water Division employees undertake the following tasks: • Production of safe potable water that meets or exceeds State and Federal Drinking Water Regu)atlons. . Water Production —The Division maintains Four iron removal fIItraHon treatment plants served by eight act[ve 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. • Operatlon and maintenance of one booster pumping station. • Provide meter readings to the Finance Department for utility billing for City water and sewer services. The Division manages meter accuracy and replacements as needed of approximately 6,250 water meters. • Respond to consumer inquiries within Z4 hours regarding water quality or high consumption questions or general concerns. zap Manager Russell Ruzicka Water ROIL Operator Bryan Scheel Water Operator II ■ Wat<r Operator I Doug Mace Jason McMahon -'Yet 1' Kyy} �.x -; �9� J `�.. I ., i ..�i ... �,, ' ,,_ '.. �. � .. _- - '� W;. r e des" Public Worlcs Water Division - FY20/21 Accomplishments • Met or exceeded all State and Federal Drinldng water regulations. The Water Division employees provided a high level of customer service by responding to customer requests within 24 hours and malting available information consumers need to be informed about their driniting water source and water treatment technologies. In 2020, the Water Division produced 750 million gallons of potable water and provided meter readings For nearly 0,250 water and sewer accounts For billing purposes. Received 24�„ consecutive annual fluoride award from the Illit�ois Department of Public Health. • Installed over 90 meters for new construction. Completed a replacement of the water SCADA system. • Initiated a Water Operator Training Program. Implementation of Waterly reporting software. The Water Division had no reported personnel Injuries or accidents in the past year. Assisted in the rehabilitation of the Well 8 raw water line. 2D9 Public Worlcs Water Division - FY21/22 Goals 8t Objectives Continue to meet or exceed all Federal and State drinking water regulatlons. Continue to provide the highest level of custmner service possible by responding to customer requests w/thin 24 hours and make information ava/3able For consumers to be info rnted about their drinking water source and water treatment technologies. Loolc Far new opportunities to improve customer service to the consumer. Continue to maintain and improve water treatment facilities while remaining in budget. Contlmie to be injury and acctdent free. Cross train employees fn both water and sewer treatment. Continue to develop and train both new and existing ]tceitsed operators. 210 Public Worlcs Water Division - FY21/22 Performance Measures n�nm�a �oosb compuanaa loon con,puan�a wub no 1oo4b con,puancv Is exP=aea wml. no u:pn en.nphan.:e In au calegm9es viniauuns vimaRnns Ras dta Cuxtomor pnn Respona m ag b.nairlea wi[I.in y4 hour's of Pm'centege responded [o Response [o all customer b,nuL9as untl h,nadrlvs ana Complaints re<elvin8 wltBln 24 how's < mplaints. Capital Prolects Complete all CaP¢al P.nlects on Nme and wltldn yyere prolacts comPleled All capital P�"oiede mmPleted In a Hmely nthnc and wi[bin bud6et ,anne.'and under budget batlgat Operators ga[all currene Need Waemployee to meet llpera[ora will baabbto heap their T+alning traimngs training x�heawe water ncenaa cnr.e„t. SaFetY-Personal yaro inlurles/Acddantx Now many repm'ted Noloss oFwoac tlays and help stay under Injtuy/VaMde Attiaents Injurlea/accWants butlge[. 211 Public Works Wastewater Division Public Worlts Wastewater Division Mtsslon It is the mission of the Public Worlu: Department Wastewater Division to protect public health and the environment by treating sewage to meet stringent environmental standards prior to dischaage. The fu ncHon of the Wastewater Division is to operate and maintain the Wastewater Treatment Plant and nineteen liftstations. The goal ofthe Wastewater Division is to efficiently maintain these Facilities and to produce plant effluents which either meet or exceed State and Federal standards. The division is also responsible for the removal and disposal of all by-products generated by The treatment process. This Is accomplished by daily testing and monitoring of the treatment process and by operating the sludge de -watering machines. In summary, Wastewater Division employees undertake the Following tasks: Provide For the operation and maintenance of the City's Wastewater Treatment Plant as well as the care and upkeep of nineteen lift stations. Conduct daily testing to ensure the treatment processes are working correctly and make any necessary changes to operations. Dispose of all treatment process by-products In a safe and cost effective manner. Maintain records on the amount of wastewater treated and the quality of water discharged into the Fox River and report this information to the llllnois Environmental Protectlon Agency In compliance with NPDES permits. zit Public WorKs Wastewater Division -Organizational Chart z.i Public Works Wastewater Division - FY20/21 Accomplishments In 2020 the Wastewater Division continued to maintain compliance with the City NPDES permits. The City OF McHenry met or exceeded all permit r¢quirements. Completed NPDHS permit renewal for the Wastewater Treatment Plant. Successfully cleaned and returned 1.3 billion gallons of wastewater to the environment. Maintained reduced sludge disposal costs by operat(ng the sludge drying proc¢ss 24 hours a day, S days a week. Reduced overtime call -outs to 27^/0. Completion of Dislc Ftlter Huildout, commfssloning of third ultraviolet disinfection channel, and automation of pumping station sub -stage under the current IBPA construction loan prior to contract closeout. Completion of the step screen building heating project on time and under budget. 214 Public Worlcs Wastewater Division - FY21/22 Goals �. Objectives Continue to meet or exceed the NPDES permit requirements and regulations as set Porth by the Illinois 6nvlronmental Protection Agency. Operate treatment plants and ]ifC stations in a manner which minimizes the potential For a sanitary sewer overflow. Continue to analyze ways to achieve the high level of service while minimizing operating costs. Explore alternative disposal methods for the dried sludge product such as sod farms and landscapers. Complete the dryer feed pump upgrade project and further refine the after-hours operations of the dryer. 215 Public Works Wastewater Div. - FY21/22 Performance Measures Compliance wl[h alI NPDIIS IOOgb CmnPliance wltb all Annual lnsyeRion/¢vahuHon Se[Islee[nry annual Permits issued by tb¢IgPp permits nt all times antl monthly reports Inspection/r�po,[ana no vmlanons on manN.ly.cnor[s Sludge dlspoael pu[Fher lower sh.dg¢dispoxal Secw'e elMrna[ive dispasol Reduced or ollminated cosh meModc tllsPosal costs Lift Stations Iietluc[Ion in number aFo6 'hack number ofcal4outsm Reaum ove,'tlme costs bow call-outx ¢acb liR station o Ina[ n,ne aava da¢ m work Ssfety Redame losttime how'stlue [o ConNnoodsefe[y h'alning related inlwlex work relarea h,lariea Sanitary 5ewor Overgawa Prevent sanibry sawor Operate pcdRo arorm darlfl¢r No sm,ltary sower ov¢.'Rows (S50'a) ove rRows at [he rorrec[capeclty 216 Public Works Utility Division Public Works Utility Divtslon Mission The City of McHenry Utility Divtslon is committed to providing the highest level of customer serv[ce to its residents and cmisumers. Maintaining the water distribution, sanitary sewer collection systems and storm sewer system to peals performance will continue to ensure reliable services to City of MCHemy 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 ofthe water distribution system. Another component of the Utility Division is to maintain, clean, and televise the sanitary sewer collection system. The Utility Division also maintains and repairs the storm sewer system. The Utility Divtslon also serves an emergency response role for winter snow plowing operations, after-hours water main brealvs, and after-hours sanitary sewer backups. In summary, Utility Division employees undertake the Following taslvs: Maintenance of the City sanitary sewer collection system. Maintenance of the City water distribution system. Maintenance of the City owned storm water infrastructure. Support of winter operations. Emergency response for after-hours utility emergencies. 21> Field Op¢rakions Manager Steve Wirch U [ility Supervisor Mike Lange Operator) Operator) Esteban Ramirez Sean Johnson Utility Operator) Maintenance Worker Totld Sasak pat Maher Ufllhy Operator I �� yyorker Ryan Cheney Clint Greve Maintenance � Main[enance Worker Worker Tim Lochner Paul CI¢men[s 1� ] ;.ti0 — i 1 - - _:. } �1 I, >� � C�-. �o,..�� Public Works Utility Division - FY20/21 Accomplishments • Replacement oE9 f(re hydrants and Installation oF6 new Flre hydrants. I Flushed all of the City's Rre hydrants for spring and fall hydrant Flushing programs. • Cleaned 118,000' and televised over a 100,000' of sanitary main. • Repaired 10 water main break. • Repalred lY water services. • Responded to 17 possible sanitary sewer backups. Cleaned and televised the storm sewer system in advance of the 21/22 Road Resurfacing Program. • Repaired and rehabFlttated storm sewer structures in advance of the 21/22 Road Resurfacing Program. • Assisted with the construction the new Venice Street parking lot. • Repair of 2lealcs on Well #8 raw water line. 219 Public Worlcs Utility Division — FY21/22 Goals Sz Objectives • C¢ntlnue to ]ceep the sanitary collection system well maintained, wh/ch includes cleaning and televis(ng the entire collection system on regularly scheduled intervals. • Reduce inflow and Infiltration In the collection system through the Capital improvement Program which includes the sanitary sewer main and sewer manhole rehabilitatlon programs. Replace old stye manhole covers with "new" sealed covers. • Perform annual routing maintenance of the water dis[ribution system through the annual water valve maintenance program, annual hydrant painting program, Eire hydrant spring and Fall Flushing programs and the water mafn replacement program through the Capftal Improvement Program. Install 10 new fire hydrants [o improve water quality and lire Flow protection. • Continue ongofng mapping of the storm sewer system In the City Gls database. zza Public Worlcs Utility Division - FY21/22 Performance Measures _ � pire hYarant replacement RaPlaa ou.aatca fn r I.YAnun. Numbm oFlrytlrants 'ePlxed Replace l0 Nx hY[[rnuta CI¢an @T¢Ievlse sanlCmy lOO.00011noa1 R/year Lln¢a1 R/year Clean&televise lOO,00011nea1 R/yam ower collection sya[om ComPle[e sPrin6 ana tall Plnsh all hydrants sPrinH and ComPletlon aF SPrin6 anA fall RYaranl Flushing hyarant RushinµPrograms fall Rushing programs Reduce lnRow/Infl1U'atlon Grou[manholesa/install sealed ryvmber of manholes �¢Pah'ea 10 manholes repaired trainee mta ao...a water nlalrmnnnns tom ys R aram rahmng a. varon Nnmbm�on,yaranta Palmed, zovo onwarama namtea g. cxercisea Malmenance gzerdsh.g umber of valves exerdsaa a09b,a11yslves /tmonnt of atm'maewar Goompletµme ripping of ehe Sto.maewer mapping Loeat¢and shoots[ructurea atnmmres ahot on GlS m e ystem 221 - � ((((§§£q§((((�((� f§5ƒ a \ § E /§®< ° ++\)\// ! ©r�f °• -} \ �§ � : ($/23../.2..( \ $2$§ rBg§22}7�/ ° �� -» ` / � - § «2�2 § &m\]\[\/234m� �� } §$$# . �\§A2©§r' B#K' `� ® ___ �} A=a_. _-- \ \ ES+7 ^® - -� ! �` § k �- - �� )2!/f®�=§ b ƒf) ■ ],# - � � 2 � .6/ n2a),/§/ki��2)�)® 2))2 � ! e.,��=,�l3§.] k k � amn,mm=,l=��.��_ ,a - �� w� m,,,.■■mmmm 2 „ g,e; .\\.... /.7..\ \ \\.q...// �`®t\\ �E``�)§ ..7;... )�+©®} �mwm§)�$ ) . aa. . k§§§} ## 2m\\�} g=° `_ ` #§« ° §m#pek 2- - - °_ t° §§ ngs� _ ,` w E.7ee.. )g&7¥& )$ §*ER37 _`^`\7K( � � 7 2 , . k k / \#•\�S �f2k\\\ \�) ® #_.� k*l2+m■ !\ , q#;&m§ !sa§kgk £�}t!/j/F !Al22m !!;�»»! °§;29e -°,°Ie2m ,,,� �a. ,!e mm�.=.=,��,�,.a�mm,m,»ame�«=,ea�m= �±kEE7£§$A(r$ ± § § _##rm2'§ - - - i �`a^`2 A § 3 # e$!§7#�§ ~ - ° a ` m ~ m s \ \ - k �77��) \ \ \ �r§7\[7((7/ ( ( \ �r/7\))(i�( / k / -�) ��)��k�k { \ / § 2# - ! 2 -� .2;::�«4 ��■)t4k/%�^m ) § EIe k/�k)))))/\§ ) ® ) )$§(££}§ k((q§§§§§}(§ƒ§ - - ® m , r¥;,amm# K#®### � a � q _° /&z, � � »%\§77(( 77/ 72 \�,-; � 7 /�•//\\f/ 7}( (§¥/,.,§ � / § '=&{§22}\��.�g `• °®°`k#!#»\ AR«gEm*< \ \ m �i �a®; �§§B/lESEg��-- °2\� ( _}7Iem5{ �t �\ ,E.�,22, §- _ �. � �\A\%$))(��§7§ ]§$),me) \ \ 7 � § -` ! ! { � 7 �- .ff!-® ! / \t� �!\k!t\\k§ \ _- ��))k�k, §k!7l,a� 2 __ !e£a!»lRI;J,;§ ; - ., , ,� ==��m77 ,� �� .,_��\\\}{\\\}}\\\n; ��amm\\\\\=ma §!\§[§q§§}§§% §§§( �(§§ ((§(§§§ 5 s§ r § § \R \ $ \{ ® /E\ #` #/§®§m�rR° /°&2 E � §§§©§m'` m' §A2 _° >R%2 _� _ �2 #°ƒ° /k'#•2°K• §#• #K§5& �®�§ �D, - &qF w ,k mm _ m, k\ 2��27E`® $§[ )�i} /� k �/»\ Km2 -2 e']KISE��99§ °° § �,-� ®` E-®/ -f -° a m_� k® s 2 dw B Ima7mKme*�§&¥ mK'\° � __ ,f /f § » § |2| � � r �#§§ /](!/\! �.!!! )) {/ ) n\ //\\//!/§2§#§ )k]§ ]§/!zm` l2.� a2§ m �22 ,�„ �ee#••- °°` �aa.;. m,�mm,�,=a��«.amw=am,»mma�mmam,�am -((}/�(\�§§§Q$(§ ) ) .......\..(g\..\ \ } � \ a»2R=2 § 7 \ �....}..\$§§) "{ ( } \¥#FRR' m t ` \ -^k® _ ¥ \ § �§�3&$\EI§&§&��4 = � e -.m- , E \ ( /\§\ e �\ ( \ _ © ��\$EB®E�F _ , - g , . E � 5 § % 2! §# \� § �,kd]■ !/$\\)))\� § / §£�kf■ `!!!!§§iM m § %\kt/()\)))k\/)/ d m ire;�rr;r�,mem,m. �.a ®9¥ mm« w;2 £ ,«�2-£§$(§( �(/ .../../ .. \�3m°�®\\./ , . ` 3J � 7»[\R" )§E/ \ - \( #3 m 2 � §) \\q&R"®e##§� `§§ :� /3&§W``E27) [..}22} �7 \ 2 §§£$m!n}/2} a -I -� °;q R 7�5m � 2 �. _ .® - Q_ae`f)E) 2222§ \ _� ) � ) � } -: } �\§ � ƒ/)§k.) ( § \ .§�j ], !{!) ) § ))§ |2a�2,&@■Km ], 77�222; _£a)w ! ,# - mr �=��,5;79a �� -_ ;=Q;=, e;gma! u £ � �,��.��,e=�rarm=a=n=imam;�m=m�em��m ) �§§§f \§§ ... \ �m/§\ �»»® } k \ » } / �§ � ... / �\\/} $�7 } _®/�) � N {■ #2k[ m72 § kk\/ \// § �,m„ ��a,«� lul Cl�-1 � .E... a.... . Fiscal Year 2021/2022 Annual Budget Capital Development Fund ,�„ Capital Development Fund -Overview This fund accounts For the construction, expansion and/or extension of __ / watec and wastewater systems to accommodate new development and (�� growth in the community. Revenues are generated through capftal r= -ie l development Fees on new residential and non-residential development. � R r- ��u 'f s�-(Y �D z,� *)$( } $$ ) ® CE e ;Ka§ _: �))§ _ : ) _ .. �/\f , } *))) ) - �$)§ ( -� \ƒ 7 � ) ` } �. _ \$ /§ _ � \ \ § \ \ / ƒ / _ ,2 m,m m 2 �_, � Fiscal Year 2021/2022 Annual Budget u-r��ty Improvements Fund ,,_ Utility Improvements Fund -Overview The Utility Improvements Pund was created to provide a single fund to ' record a-evenues and expenses For capital construction projects for the i water and wastewater utilities. Transfers From the Water 1$ Sewer Fund and Capital Development Pund are the main sources of revenue For the � Fund. Hxpenses are restricted to design engineering, construction, and construction englneeringcosts For the approved capital protects. Identified -_ expenditures are related to the consolidation of the Central and South Wastewater Treatment Plants. 234 235 Fiscal Year 2021/2022 Annual Budget Marina Operations Fund z36 Marina Operations Fund -Overview The City of McHenry acquired the marina in 2000 to be able to expand the Central Wastewater Treatment Plant. After it was acquired it was determined that the wastewater facility could not be expanded at the existing site. At this time the Marina Operations Fund is an enterprise fund that provides for the maintenance oFa 60-slip marina on the Pox River. 23� §§(§ � m$) ®/$ : / § , § -2A §m $ q � - :� `/\ E ( 3 . _ :&� 6/ 2 `22 R2 * / -m I . � k : ! ,f _- ) )}}/ \ \( § k)§ k])2 Q ��, �� _ . � „! � rcHe �, �r�y�oo� a Fiscal Year 2021/2022 Annual Budget Internal Service Funds Fiscal Year 2021/2022 Annual Budget Employee Insurance Fund 240 Employee Insurance Fund -Overview The Ctty of McHenry recognizes that health insurance benefits are an important component of an employee's total compensation package, therefore, the purpose of the Employee Insurance Fund is to finance and account for expenditures ��+ �� incurred to provide health Insurance benefits to employees. �j 1 The current health insurance plan provided to employees offers a choice between {•`I a PPO [Preferred Provider Organization), an HMO (Health Maintenance � Organization), and an HSA [Health Savings Account). Provld/ng employees with t a choice of plans allows for flexibility based on preference and affordability. In addition, employees receive dental and vision benefits. All IU06150 employees (Public Worlcs, Parlcs) are required to be on the IUOE 150 Insurance plan as per their collective bargaining agreement. zai &§}%§§ :z }±§§§§§ � : 722\$§) �)\+k / � ®\)$()) R ; \\§$■f � � - �=f%«° �;�_ - E■sa7( (§@a©J �k)\��} & - )(}(■\ 2 �« _ a2222�2 \2[!44 m§4§&§) k/iE°) » §m§)§§ ---- - m _� § ;m,,�» \e,a»§ | !!§! -) �� /!({) 1)!#®®§ - � § _ „!/\§ _$ƒ$§/)[ 7 ƒ_ \k/)))/ \k)2)§ k _ ®� mmgmEm ;§&mm Fiscal Year 2021/2022 Annual Budget Risk Management Fund L93 Risk Management Fund -Overview The purpose of the Rislc Management Fund is to account for all activity related to rlsh 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 Risl< Management Agenty (MCMRMA), a public entity rlslc pool Through which property, general liability, automobile liability, crime, excess p raperty, 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 un[ts. The service charges to the General Fund are provided For the most par[ by the liability Insurance portlon of the property tax levy. Incidental revenues from interest earnings and reimbursements From MCMRMA are also occasionally posted to the fund. 2a4 §)§§f§§ �` )}�(�(}({� - �, R § \ \ �r«a , .— } ..}.\....\ f�§m�§) � — .� R.\./. /mK■'®® a > ,.§,/..../ /m§22}} � , '¥�G 2 27#§�§§ § ° ° 3■■©�g& m - k� — 32 _ °� 3!! §& `\ �� !§ . ,�, -$]\\\)kk■[ \)$${�t2 § k§)`\))$%/ kk£k§)§ ( (.. °,,,m; �a Z -- me■©®�e _ = .�,��, __�mmE_ M[ a q! O f i N[ [ O i R I V F R � U Fiscal Year 2021/2022 Annual Budget Fiduciary Funds 246 Fiscal Year 2021/2022 Annual Budget E�p�la�yee Flc��i�le ��ndix�� un�, z4, Employee Flexible Spending Fund -Overview The Employee Flexl6le spendind accoun[Is used to account for employee pre-tax medical spending accounts that are offered - I as a benefit to City employees. � Under the Internal Revenue Service (IRS) rules and y �� regulations, employees can set aside mon¢y 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. zo-e 7§ R7 / � _: g 7 s / g � _ : 2\ R§E2 � / ` ®�«/ © § _ -_� , � \ / § \ { } § 2 ],!R w - ak �� ; Im» Fiscal Year 2021/2022 Annual Budget Development Escrow Fund zso 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 untilsuch timeas cereain lmprovemen[s . are completed or in lieu of developer provided improvements. These funds are custodial in nature and do not involve measurement of results of operations. In FY20/21 Development Escrow Funds are being used for the manufacture and SnstallaUon of a new municipal gateway sign on east Route 120 as part of the Thornton's Fueling Station development project. 6� �� E { zsz Fiscal Year 2021/2022 Annual Budget Retained Personnel Fund ,,� Retained Personnel Fund -Overview The Retained Personnel Pund is used to account for funds collected as reimbursement and expended for professlonal and technical services used to assist or advise the Cfty In connection w[th land development. The Cf [y's retained personnel costs included eng5neertng, legal, plann5ng, and other technical professlonal matters. The City typically collects a deposit From property owners at the Snitlatlon of annexation, zoning, or other development proceedings that approxfmate the total retained personnel costs expected to be Incurred. gfit'h�1�fflfiiv#fyi-F . �� zsa §§§§§ §§§§$ � . §}..\ �2..} � _} ®2 :� }7 /E�`§�� , #eme} §R5r/ 2[EE} 7[#§}�� _% e \ ` � � � § / � ))§ \I , k ) ! § ®�))§ � k�`®� � �»!Ik \�22e § ®} mmmm mmm§` Fiscal Year 2021/2022 Annual Budget Revolving Loan Fund Revolving Loan Fund -Overview The Revolving Loan Fund prov/des law interest loans to qual/Fled existing and prospective businesses within the City of McHenry. The loan proceeds can be used to assist in the s[artup of a new business, expand o and existing business update existing facilities to make the business more o competitive, or provide an incentive For established businesses to r` U! relocate to the City. The peimary goal of [he program is Job creation and ` U7 expansion of the sales and property tax bases. The program requires loan appl/cants to complete a Forma] application which is [hen reviewed by the Revolving Loan Fund Committee - comprlsed of the Mayor and Plnance and Personnel Committee. Terms are Identified/n¢gotiated and a recommenda[ion 9s provided to the full City Council For consideration. Of note, the Revolving Loan Fund itself does not have expenditures as She loans ar¢ originated through the Clt�s identified lender. Revenues are comprised of receivables, ar payments, which are budgeted. zs� 258 Fiscal Year 2021/2022 Annual Budget Police Pension Fund Police Pension Fund -Overview � The Police Pension Pund accounts For retirement benefits for retired police officers and their beneficiaries through employer and employee contributions and g1°ap>`,f> investment earnings. P�_i_ `� 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. Th¢se three revenue streams, if based on sound actuarial assumptions should generate sufficient funds For employe¢ 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, [o enforce the collection of contributions, to hear and determine applications For pensions, to authorize payment of pensions, and to invest Hinds. 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 oEfnvestment performance, the plan is obligated to pay the defined beneFlt 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 Fur[hec obligations placed on the City. In FY20/21 the City bonded the outstanding Pol1c¢ Pension balance to achieve the self-supporting level and, as such, the Flnandal commftment will be relatively fixed moving Forward. zeo ��((((k §§§§{§)!§ � ` � i �§ } { \))��{� }))i � -- ° § RR)§}\~§� #5 } `§ � : &§�a,� / Rma�&® 5 ` �f \\i \ \kid ��\ \ { �§ 2[)\\ i§&F§+�rR '§ :;� }\\$$f`i( ) � /\§3} �� +�®\ ® \k}R\ -� . / . , ;, . ® �� , _- n, !§ �}{{,! �2222�� -2/)]\k)§ � k�G\2\)§ )\k}kk!)k % � `) §mm■§■m 2§§I;m&m Fiscal Year 2021/2022 Annual Budget Supplemental Information 262 Financial Policies Overview The following City financial policies, along with the approved Fund Balance and Reserve, ]nvesiment and Capital Improvement Program polldes, establish the framework For MCHemys overall fiscal planning and management. o tI g B .apt a >�t ¢n�iir�� 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. Th(s 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 Cfty Administrator to reduce expenses. This may include a deferral of hiring and major expenses for goods and services. Revenn¢ Pr.Hctes 1. The Clty shall maintain a diversitled and stable revenue system to the extent prov[ded by taw to insulate it from short-term Fluctuations 1n 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 Initlated with grant funds only if the activity can be terminated in the event grant Funds are discontinued or the activity should and can be funded within recurring City revenues. 4. All non -enterprise user fees and charges will be examined annually to determine the direct and Indirect cost of service recovery rate. The acceptable recovery rate and any associated changes to user fees and charges will be approved by the City Council. S. The City will set fees and user charges for the Wa[er and Sewer funds at a level that fully supports the total direct and indir¢ct costs of the activity. Indirect costs include the replacement of the capital assets oFthe fund. 263 Debt Management Policies 1. The City limits long-term debt to only those capital improvements that cannot be financed from current revenues and have an estimated useful life of at least ten years. 2. For General Obligation Debt, the City will maintain a debt to assessed valuation ratio that is 25% more stringent than the state debt limit. 264 Fund Balance and Reserve P 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 far 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 th¢ City to felt below the minimum fund balance level, certain steps will be Followed to correct the deficiency, as outlined fn the sectlon below titled "Fund Balance Parameters." • 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 Hzpendltatr¢s -Total expenditures minus capital and debt service. • Governmental Punds -Are used to account for all or most of the Ci;y's general activities, including the collection and disbursement of restricted or committed monies [special revenue tltnds), the funds restricted, committed or assigned for the acquisition or construction of major capital assets (capital projects Eund), and the Funds restricted, committed or assigned for the servic[ng of general long-term deb[ (debt service funds). The general fund is used [o account For all activities of the general governmenC not accounted for In some other fund. o General Fund -Accounts for all activities of the City not accounted for 3n 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, Commun[ty 8r. Economic Development, Finance Department, Police Commission, Police Department, Public Worlcs- Administratlon, Public Worlcs-Streets, and Perlis and Recreation. o Special Revenue Finds -These Funds are utilized to account for revenues derived from specific sources which are usually required bylaw or regulation to be accounted for as separate Funds. For the City of McHenry these Funds include the Following Funds, with deFlnitions provided: • Tourism Fund -The Tourism Fund is used For the purpose of Flnanctng tourism through promotion of the City. It is derived From a 5% occupancy tax on motel and hotel receipts. zss ■ 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. 266 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. 267 o Risk Management Fund - The Risk Management Fund accounts for all activity related to risk management and insurance costs (other than employee health insurance) including loss control, loss prevention, risk transfer, and risk assessment. o Information Technology Fund - The IT Fund facilitates the implementation of innovative, high quality technology -based services to each of the City's departments. • Fiduciary Funds - These funds are used to account for resources held for the benefit of parties outside of the city. The Fiduciary Funds of the city include the following funds: o Employee Flexible Spending Fund - Accounts for employees' pre-tax medical spending accounts that are offered as a benefit to City employees. o Development Escrow Fund - This fund is used to segregate developer funds held by the City to ensure the completion of specific public improvements such as sidewalks and traffic signals. o Retained Personnel Fund - The Retained Personnel Fund accounts for funds collected as reimbursement and expended for professional and technical services used to assist or advise the City in connection with land development. o Revolving Loan Fund - This fund accounts for activity in the Revolving Loan Program, a low -interest program for businesses and industry with the goal of job creation. o Police Pension Fund - Accounts for retirement benefits for retired police officers and their beneficiaries through employer and employee contributions and investment earnings. Governmental Fund EquitX • With the implementation of GASB 54, the fund balance structure for governmental funds changed as of the fiscal year ended April 30, 2012. Multiple fund balance classifications include: Non -Spendable, Restricted, and Unrestricted, with unrestricted being further broken down into: Committed, Assigned, and Unassigned. • Expenses that can be attained from multiple fund classifications shall be used from the most to least restrictive fund. With the discretion of the Finance Director, and with the advice and consent of the Finance and Personnel Committee, a deviation can be made from this policy if it is in the best interest of the City of McHenry. • Fund classifications are described by the following: o Non -Spendable Fund Balance - (1 of 2 conditions) ■ Amounts that are not in spendable form ➢ Can never be spent (i.e., Inventory, Prepaid Rent) ➢ Cannot currently be spent because of cash flow timing (i.e., Long -Term Receivables) 268 ■ 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). 269 Fund Balance Parameters (By Fundy • 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. 270 o Civil Defense Fund - The unrestricted fund balance should be maintained at 120 days (4 months) of estimated operating expenditures. Additional fund balance needs to be retained to address long-term equipment replacement and or repair. o Alarm Board Fund - The unrestricted fund balance should be maintained at 120 days (4 months) of estimated operating expenditures. Additional fund balance needs to be retained to address long-term equipment replacement. o Audit Fund - No target is established for this fund. Any fund balance accumulated within this fund will be utilized to lower operating transfers from other funds or the property tax levy. o Annexation Fund - The unrestricted fund balance should be maintained at sufficient levels to address the related annual debt service payments pledged by this fund and additional funding for capital projects. o Motor Fuel Tax Fund - No target is established for this fund. The expenditures 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. 271 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. 272 o Police Pension Fund - Fund balance targets will be determined through the Police Pension Board and the annual actuarial analysis. 273 Capital Improvement Program Financial Policy 1. The Capital Improvements Program (C[PJ plan shall 1den HPy projects, their costs and the revenue sources and amounts needed to finance them. 2. The first year of the CIP program ¢FFectively becomes Hie capital projects budget within the operating budget For the year subf ect 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 /n [he first year of the CIP. 3. For General Obligation Debt, the City will maintain a debt ro assess¢d valve ratio that is 25% more stringent than the state debt limit (State limit is 8.625% of BAV; proposed Bmlt would reduce ro this c¢Ihng to approximately 6.5% of BAV or $25.5 mil]ion outstanding). 4. Bonds issued to finance capital projects shall be structured to coincide as closely as feasibly possible to the usePullife oFthe project By egvitably distributing the costs ofthe prof ect over time, those citizens actually beneSting From the protect will share in the cost. In no Instance sha17 the maturity exceed the useful life of the project. S. The Ctty will net 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 ofth¢ project benefit. z�a Investment Policy It is Hte policy of the City of McHenry to invest public Funds in a manner which will provide the highest Investment return with th'e maximum security while meeting the daily cash Flow demands of the City and conforming Co all state and local statutes governing the investment of public funds. 11. Scope This policy includes all Funds governed by the Mayor and Council ("City Council"). [lI. General Ob�ecttves The primary objectives, in priority order, of Investment acttvlties shall be safety, ]iqufdtty, and yield: A. Safety. Safety of prtncipal 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 rlsl4 the r/sk aF loss due to the failure of the security issuer or badceq by: (a) Limiting investments to the safest types of secuHtfes. (b) Pre -qualifying the financial institutions, brokers/dealers, intermediaries, and advisers with which the City will do business. (c) Diversifying the investment po Mfol/o so that potential losses on Individual securities will be mfn[mized. 2. Interest Rate Risk. The City will minimize the risk that the market value of securities in the portfolio will Fall due to changes 3n 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 maybe reasonably anticipated. This is accomplished by structurng the portfolio so that securities mature concurrent wtth cash needs to meet zos anticipated demands (static liquidity). Furthermore, since all possible cash demands cannot be anticipated, the portfolio should consist largely of securities with active secondary or resale markets (dynamic liquidity). A portion of the portfolio also may be placed in money market mutual funds or local government investment pools which offer same -day liquidity for short-term funds. C. Yield. The investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment constraints and liquidity needs. Return on investment is of secondary importance compared to the safety and liquidity objectives described above. The core of investments are limited to relatively low risk securities as identified in this policy in anticipation of earning a fair return relative to the risk being assumed. Securities shall not be sold prior to maturity with the following exceptions: 1. A security with declining credit may be sold early to minimize loss of principal. 2. A security swap would improve the quality, yield, or target duration in the portfolio. 3. Liquidity needs of the portfolio require that the security be sold. IV. Prudence The standard of prudence to be used by investment officials shall be the "prudent person" standard and shall be applied in the context of managing an overall portfolio. Investment officers acting in accordance with written procedures and this investment policy and exercising due diligence shall be relieved of personal responsibility for an individual security's credit risk or market price changes, provided deviations from expectations are reported in a timely fashion and the liquidity and the sale of the securities are carried out in accordance with the terms of this policy. Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived. V. Ethics and Conflicts of Interest Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with the proper execution and management of the investment program, or that could impair their ability to make impartial decisions. Employees and investment officials shall disclose any material interests in financial institutions with which they conduct business. They shall further disclose any personal financial/investment positions that could be related to the performance of the investment portfolio. Employees and officers shall refrain from undertaking personal investment transactions with the same individual with whom business is conducted on behalf of the City. 276 VI. Delegation of Authority Authority to manage the investment program is granted to the City Treasurer or his designee, hereinafter referred to as Investment Officer. Responsibility for the operation of the investment program is hereby delegated to the Investment Officer, who shall act in accordance with established procedures and internal controls for the operation of the investment program consistent with this investment policy. Procedures should include references to: safekeeping, delivery vs. payment, investment accounting, repurchase agreements, wire transfer agreements, and collateral/depository agreements. No person may engage in an investment transaction except as provided under the terms of this policy and the procedures established by the Investment Officer. The Investment Officer shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials. VII. Authorized Financial Dealers and Institutions A list will be maintained of financial institutions authorized to provide investment services. In addition, a list also will be maintained of approved security broker/dealers selected by creditworthiness (e.g., a minimum capital requirement of $10,000,000 and at least five years of operation). These may include "primary" dealers or regional dealers that qualify under Securities and Exchange Commission (SEC) Rule 150-1 (uniform net capital rule). All financial institutions and broker/dealers who desire to become qualified for investment transactions must supply the following as appropriate: A. Audited financial statements. B. Proof of National Association of Securities Dealers (NASD) certification. C. Proof of state registration. 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. 277 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 301LCS 235/2(h)(1)-(11). F. Money market mutual funds regulated by the Securities and Exchange Commission and whose portfolios consist only of dollar -denominated securities. G. Local government investment pools, either state -administered or through joint powers statutes and other intergovernmental agreement legislation. IX. Collateralization Funds on deposit (checking accounts, certificates of deposit, etc.) in excess of FDIC limits must be secured by some form of collateral, witnessed by a written agreement and held at an independent — third party institution in the name of the City. X. Safekeeping and Custody All security transactions, including collateral for repurchase agreements, entered into by the City, shall 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 278 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. 279 XIV. Performance Standards The investment portfolio will be managed in accordance with the parameters specified within this policy. The portfolio should obtain a market average rate of return during a market/economic environment of stable interest rates. A series of appropriate benchmarks shall be established against which portfolio performance shall be compared on a regular basis. XV. Reporting The Investment Officer, or his designee, shall prepare an investment report at least quarterly, including a management summary that provides an analysis of the status of the current investment portfolio and transactions made over the last quarter. This management summary will be prepared in a manner which will allow the City to ascertain whether investment activities during the reporting period have conformed to the investment policy. The report should be provided to the Investment Officer, the legislative body, and any pool participants. The report will include the following: A. Listing of individual securities held at the end of the reporting period. B. Realized and unrealized gains or losses resulting from appreciation or depreciation by listing the cost and market value of securities over one-year duration that are not intended to be held until maturity. C. Average weighted yield to maturity of portfolio on investments as compared to applicable benchmarks. D. Listing of investment by maturity date. E. Percentage of the total portfolio which each type of investment represents. XVI. Marking to Market A statement of the market value of the portfolio shall be issued to the Mayor and City Council quarterly. XVII. Exemption Any investment currently held that does not meet the guidelines of this policy shall be exempted from the requirement of this policy. At maturity or liquidation, such monies shall be reinvested only as provided by this policy. XVIII. Amendments This policy shall be reviewed on an annual basis. The Investment Officer may implement changes in the investment policy after gaining approval from the Mayor and City Council for 280 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. 281 Purchasing Policy and Procedures A. e Purchasing of goods and services For the City of McHenry shall be {n accordance wi[h this Purchasing Policy, City Ordinances and applicable statutes oFthe State oFllllnois. Items procured must represent the maximum economic benefit for each dollar spent. Purchases shall be of high quality and continued availability. Pm -chases shall be based on obtaining cost compar(sons, quotations, or competitive bids. Purchases shall be based on obtaining better Imowledge of methods and of commodities required to operate cost eFFectively. Local participation will be encouraged in the purchasing process. Consideration should be given to participate in cooperative purchasing efForts with other local government entltles and f v the State of Illinois joint Purchasing Program whenever possible. All personnel involved fn the purchasing process shall conduct themselves with Fairness and impartiality and demand the same of all vendors. Negotiations and discussions Involving purchases shall be conducted i n compliance with ffie Code of Hthics and Rules of Conduct in the City's Personnel Handbook. The pw�chasing process shall promote professionalism and be committed to the eFOcfencies oFcentralized purchasing. B. Bzv¢ndtture Annrovat Authority The FollowLng table includes the personnel authorized to make purchases and the amount each are authorized to spend on items included in the annual fiscal year budget, as approved by the City Council: Mayor, City Budg¢t¢d Designated Supervisors/Managers Department Administrator Amounts Rmployees" Directors or Finance Dlr¢ctor Less than X X X X $750 Less than X X X $2 SOO Less than X X $10,000 Less than X $20 000 '" Designated Hmployees: • 6xecutive Assistant/Deputy City Clerk • Coordinators and Analysts • Administrative Assistants (all departments) • Public Works Maf ntenance Worker Public Worlcs Operator • Public Works Mechanic • Parks 8.. Recreation Maintenance Worker • Public Worlcs Protect Engineer • Community Development Plumbing Inspector • Community Development Code Hnforcement OFficer • Community Development Permit Technician zsz C. Purchasing Procedure for Budgeted Items The following purchasing procedures apply to budgeted amounts, excluding architectural, surveying or engineering, legal, auditing, information technology or other professional services. o For budgeted items from $2,500.00 to $9,999.99, three (3) cost comparisons shall be obtained prior to all purchases. o For budgeted items from $10,000.00 to $19,999.99, three (3) written quotations shall be obtained prior to all purchases. o For budgeted items $20,000.00 and over, all purchases shall follow a competitive bidding process whereby bid specifications are developed, bids solicited, bids are received and evaluated by staff, and a recommendation is forwarded to the City Council for award/approval. The City Council reserves the right to waive the competitive bidding process upon the vote of 2/3 of the City Council members then holding office. D. Purchasing Procedure for Non -budgeted Amounts For all purchases that are not included in the annual fiscal year budget, a budget amendment request must be approved by the City Council prior to purchase, unless the actions are considered emergency in nature. Once approved, purchases may be made in accordance with the Expenditure Approval Authority set forth above. E. Purchasing Procedure — Emergencies For all purchases considered emergency in nature by the City Administrator or Mayor, such as threats to public health or safety, where immediate repairs to City property are required to protect or prevent against further loss or damage, or where immediate action is needed to prevent or minimize serious disruption to City services, competitive purchasing procedures, as directed by the Mayor or City Administrator under the circumstances, shall be used. The City Council shall be notified of the emergency circumstances and the expenditure amount and the item will be presented for formal approval or ratification at the next regular meeting of the City Council. F. Change Orders Change orders $20,000.00 and over shall be brought before the City Council unless specifically authorized in the bid selection process. However, if a change order for any public works contract authorizes or necessitates any increase in the contract price that is fifty percent (50%) or more of the original contract price or that authorizes or necessitates any increase in the price of a subcontract under the contract that is fifty percent (50%) or more of the original subcontract price, then the portion of the contract that is covered by the change order must be resubmitted for bidding in the same manner for which the original contract was bid pursuant to the Public Works Contract Change Order Act, 501LCS 525. 283 Glossary of Terms Accrual Basis nE Accountine� A method of accounting that recognizes the Financial effect of transactions, events, and InterFu nd actvities when they occur, regardless ofth¢ timing oFrelated cash Flows. Activlty: specific or distinguishable type of work performed by a component of government For the purpose of accomplishing a function for which the governmentis responsible. Annronrlatlon: Legal authorization by the City Council to make expenditures and to Incur obligations For specific purposes. Ass¢ d Val +atlon: A valuation set upon real estate or other property by a government as a basis For levying taxes. AvallabfBty 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 thereaFt¢r to be used to pay I4ablllties of the current period. Basis of Acc non¢: The Hmfng of recognitlon, that ls, when the effects of transactons or events should be recognized for flnancf al 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). $�� 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. Bndeec 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. R++.io¢t Message: A general outline of the budget, which Includes comments regarding the governm¢nYs experience during the past period, its financial s[atus at the tim¢ of the message, and recommendat{ons regarding the Financial policy for the coming period. BndC ary Basis of Acconntine� The method used to determine when revenues and expendlmres are recognized for budgetary purposes. Rusl�ecc-Tyoa Activities: Ac[Ivities oFthe 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, Go1F Course, Boat Harbor, Marina, Ambulance, Refuse Collection, Landfill, Transfer Sta[ion, Water Poflutlon Control, and Collection and Drainage Funds. Conical 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 aFworlc and proposed expenditures, and 1s the basis For appropriatlon requests and bond 9ssues. zsa 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. 285 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. 286 Levy: The total amount of taxes, special assessments, or service charges imposed by a government to support governmental activities. Modified Accrual Basis of Accountine: 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. 287 Taxable Valuations: Valuations set upon real estate or other property by a government as the basis for levying taxes. Taxes: Compulsory charges levied by government for the purpose of financing services performed for the common benefit. This does not include specific charges made against particular persons or property for current or permanent benefits such as special assessments. Trust and Agency Funds: Funds used to account for assets held by a government in a trustee or agent capacity for individuals, private organizations, other governments, and/or other finds. 288