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Home My WebLink AboutMinutes - 03/03/2008 - Committee of the Whole (2) COMMITTEE OF THE WHOLE MEETING MARCH 3, 2008 A Committee of the Whole Meeting of the McHenry City Council was called to order by Mayor Low at 8:19 P.M. on Monday, March 3, 2008 in the Council Chambers of the Municipal Center. At roll call the following Aldermen were present: Santi, Glab, Schaefer, Murgatroyd, Wimmer, Peterson, and Condon. Absent: None. City Staff in attendance were: City Administrator Maxeiner, Deputy Clerk Kunzer, Deputy City Administrator Martin, Assistant City Administrator Hobson, Director of Finance Black, Director of Public Works Schmitt, Chief of Police O'Meara, Director of Parks and Recreation Merkel. Absent: City Attorney McArdle, City Clerk Jones. City Administrator Maxeiner noted the purpose of this evening's Committee of the Whole Meeting is to provide the Committee with a broad overview of the proposed budget for fiscal year 2008/2009 and to present the 2008/2009 Capital Improvements Plan. In addition, SEC Group has planned a brief presentation of the City's Utility Modeling Program. INTRODUCTION OF FY 2008/2009 OPERATING BUDGET Finance Director Black provided the Committee with an overview of the upcoming budget. He noted he did not include all of the detail sheets. Totals were indicated by department and fund. Director Black noted the proposed budget would do the following: - Maintain existing services - Project a stable 2008 property tax rate - Reduce staffing by one full-time position (vacant building maintenance worker position) - Reduce capital equipment expenditure by $390,000 (58%) - Indicate expenditures surpass revenues by $300,000. Director Black stated the projected actual expenditures and revenues for Fiscal Year 2007/2008 are as follows: Revenues Rental Income (largely due to Public Works Building Tenant) $ 90,000 State Grant for Underground Storage Tank Removal $170,000 Building Permits (SF Homes down 132 permits from prev yr) ($170,000) Traffic fines (Police staff reduction reflects in lower fines) ($ 90,000) Interest (Interest paid on City investments greatly reduced) ($ 90,000) Total Revenues—Amount Under Budget ($ 90,000) Expenses Police Overtime (mainly to cover staff shortage due to WC Claims) $ 80,000 Snow and Ice Control Overtime (High snowfall year) $ 60,000 Underground Storage Tank Removal (Reimbursable) $ 60,000 Health Insurance (claims are higher than prev yr) $ 50,000 Total Expenses—Amount Over Budget $ 250,000 1 Net Change in General Fund ($340,000) Committee of the Whole March 3, 2008 Page 2 Director Black stated preliminarily the General Fund Analysis for 2008/2009 show the following in relation to the 2007/2008 FY: 2008/2009 Revenues Property Taxes increased by $228,960 Intergovernmental increased by $370,400 Other Local Sources decreased by ($387,600) Miscellaneous increased by $ 67,000 Total change in revenues $278,760 2008/2009 Expenses Salaries increased by $490,800 Fringe Benefits increased by $122,200 Contractual Services increased by $ 79,908 Supplies/Equipment increased by $ 88,700 Other increased by $213,056 Capital Equipment decreased by ($388,150) Total change in expenses $606,473 Director Black noted the following cost-saving measures might assist with bringing the budget more into balance: - Evaluate all staff openings— opportunities to reduce staff through attrition ._., - Review program fees/user fees (particularly in Parks Programs) ' - Review permit and license charges to ensure they are covering cost of service/enforcement - Review reimbursements for services. Director Black also noted long-term financial issues resulting from the General Fund Analysis: Restore dollars for capital equipment - Infrastructure Funding - Police Pension Funding - Health Insurance Costs - Restore Fund Balance. City Administrator Maxeiner stated there will be some difficult budget discussions at the committee level which will begin next week. PRESENTATION: UTILITY MODELING —SEC GROUP Bob Wegener and Edwin Coggin of SEC Group provided the Committee with a Power Point presentation regarding GIS Mapping and Water/Sewer Utility Modeling. Mr. Wegener noted the software program offers an opportunity for infrastructure management. The program provides information which can assist Staff in determining how best to utilize existing facilities and determining the best way to maximize current infrastructure. Mr. Wegener stated the modeling program will save the City funds in the future and will likewise help developers to know what services are available when they come into the City. Committee of the Whole March 3, 2008 Page 3 2008/2009 CAPITAL IMPROVEMENTS PLAN City Administrator Maxeiner briefly summarized the 2008/2009 Capital Improvement Program (CIP) as distributed to Council. He noted the CIP is broken down into the following general areas: Drainage Projects Municipal Facility Projects Economic Development Projects Transportation Projects Water/Sewer Utility Projects. City Administrator Maxeiner briefly overviewed each of the projects in the general areas and explained when each project would likely fit into the CIP: Drainage Proiects Northside Avenue Drainage 2009-2011 Lakeland Park Drainage—Dredging Ditch 2009-2013 Storm Sewer Mapping 2011-2012 Municipal Facility Proiects Financial Software Package 2008-2009 City Administrator Maxeiner noted the current financial software is no longer being upgraded and Staff is recommending purchase of a new package at this time. _ Public Works Garage 2006-2010 Park Facility Development 2008-2013 Petersen Farm Homestead Renovations 2008-2013 City Administrator Maxeiner stated estimates have been submitted for the foundation work on the Petersen Farm Homestead Renovations in the amount of$50,000. Recreation Center 2010-2011 City Administrator Maxeiner stated in light of development slowdown (and reduction in developer donations as a result of the state of the economy), the recreation center cannot be constructed at this time. Salt Storage Facility 2011-2012 Economic Development Proiects Riverwalk Phase INV 2008-2010 City Administrator Maxeiner noted this matter would come before Council when TIF increment funds come in and would be paid for from Tourism Funding. Gateway Signage 2008-2011 City Administrator Maxeiner stated downtown street signs need to be installed. Committee of the Whole March 3, 2008 Page 4 Streetscape Improvements 2010-2011 Parking Facility Development 2011-2012 City Administrator Maxeiner noted Riverside Drive area will require parking facilities particularly when the Riverwalk has been expanded to the east and north. Transportation Proiects School Crossing Flashing Pedestrian Signal 2008-2009 Alderman Condon expressed her desire to implement the flashing signal at Dartmoor Drive and Crystal Lake Road as soon as possible. She noted many concerns expressed by her constituents whose students cross Crystal Lake Road going to Riverwood School or McHenry High West Campus. Brief discussion followed regarding the need to install the traffic signal at Dartmoor Drive and Crystal Lake Road. City Administrator Maxeiner stated the Dartmoor Drive traffic signal is a top priority; however, the City needs to find a funding source for the project. Responding to Alderman Glab's suggestion that the signal should be installed in 2008- 2009, City Administrator Maxeiner stated if Council decides to include this project in the 2008-2009 budget, Council will have to cut services somewhere else or raise taxes. Cross Access—Post Office/Ace 2008-2009 Rte 120& 31 Intersection Improvements 2008-2012 City Administrator Maxeiner stated it will be difficult finding funding for this project. Street Program 2008-2013 City Administrator Maxeiner stated the City needs a long-term solution to address street repair/resurfacing and maintenance. At this time the City is unable to keep up with the repair program. Repaired/resurfaced streets are not holding up until they appear on the schedule again. CurranBull Valley Intersection Improvements 2009-2011 City Administrator Maxeiner noted this project will be funded 50% Developer Donations and 50% Annexation Fund. Phase I Eastern Bypass 2009-2012 City Administrator Maxeiner stated City portion of this project would be $900,000 with the remainder to be funded by grant monies. _ Responding to Alderman Condon's inquiry, City Administrator Maxeiner stated all dollar amounts indicated in the CIP reflect current dollar estimates. Dartmoor Crystal Lake Rd Traffic Signal 2010-2011 Committee of the Whole March 3, 2008 Page 5 Rte 31 and Veterans Parkway Signal 2011-2012 City Administrator Maxeiner noted this project would be fully funded by Developer Donations. Dartmoor Dr Extension 2011-2012 City Administrator Maxeiner stated this project would be undertaken by the Developer at their expense. Curran Rd/Dartmoor Signalization 2012-2013 In response to Alderman Santi's inquiry, City Administrator Maxeiner noted developer donations from this area would likely pay for this project. The City looks towards the development of the sod farm to assist in project funding. Rte 31 and Park Place Signal 2012-2013 City Administrator Maxeiner noted this project will be developer driven. Kresswood Dr Extension 2012-2013 Water/Sewer Utility Proiects City Administrator Maxeiner noted all water/sewer projects have a dedicated revenue stream to ensure their completion. Barreville Rd Watermain Extension 2008-2009 Director Schmitt noted the watermain extension is required in order to loop the line running from the Municipal Center to Pebble Creek Subdivision. Elevated Storage Tank#2 Maintenance 2008-2009 Director Schmitt noted the project also includes the internal sandblasting of the tank which escalates the cost of the project. Millstream Lift Station and Force Main 2008-2010 Alderman Schaefer inquired if the Riverwalk would have to be completed at this location before TIF increment funding could be utilized. City Administrator Maxeiner responded in the negative. Water Plant#5 2008-2010 Director Schmitt noted iron removal and a water softener in the plant are required in order to treat water derived from Wells #12 and #13. Richmond Rd Watermain Replacement 2009-2011 t City Administrator Maxeiner noted Staff would like to complete this project prior to the Route 31/120 intersection improvements are installed. Committee of the Whole March 3, 2008 Page 6 Richmond and Elm Sewer Replacement 2009-2011 �- City Administrator Maxeiner noted once again, it is appropriate to complete this project prior to the major construction which would take place during the intersection improvement project. Conveyance Main & Pump Station CWWTP To SWWTP 2009-2011 City Administrator Maxeiner noted this is a costly project; however, in the overall picture, it is far less costly to convey the waste to the south plant than to acceptably upgrade the central plant. 4.0 MGD Expansion SWWTP 2009-2011 City Administrator Maxeiner stated although this project would be painful to fund, it is necessary. Green St Watennain Replacement 2010-2012 City Administrator noted it is necessary to replace the undersized watermain in order to increase fire flow in this area. Donovan Lift Station Upgrade 2011-2012 City Administrator Maxeiner noted this project is being funded by monies received from McCullom Lake and Ringwood sanitary sewer user revenue. Sanitary Sewer Main Rehab Program 2011-2012 Watermain Rehab Program 2011-2012 Water Plant#6 Adams Business Pk 2011-2013 Well#14 raw water line to Plant#6 _ 2011-2013 Water Plant#2 2011-2013 Director Schmitt stated Water Treatment Plant #2 requires an iron removal filter. City Administrator Maxeiner stated rehabilitation of the plant is needed; however, funding the project is the issue. Committee of the Whole March 3, 2008 Page 7 ADJOURNMENT Motion by Schaefer, seconded by Condon, to adjourn the meeting at 9:45 p.m. Voting Aye: Santi, Glab, Schaefer, Murgatroyd, Wimmer, Peterson, Condon. Voting Nay: None. Absent: None. Motion carried. The Meeting was adjourned at 9:45 p.m. 1 MAYOR DEPUTY CITY CLERK