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Packet - 11/01/2021 - City Council
The City of McHenry is dedicated to providing its citizens, businesses, and visitors with the highest quality of programs and services in a customer-oriented, efficient, and fiscally responsible manner. AGENDA REGULAR CITY COUNCIL MEETING Monday, November 1, 2021, 7:00 p.m. City Council Chambers, 333 S Green St, McHenry, IL 60050 This meeting is in-person. This is not a remote meeting. The meeting will be live streamed with a quorum of the City Council physically present. Public comments may only be heard by members of the public physically present at the meeting. Remote public comments will not be heard. The public can view the meeting from the following link: https://cityofmchenry.zoom.us/j/81341352331?pwd=Q2RKSjNYZ0hnZzRhUytCek8rcE80UT09 1. Call to Order. 2. Roll Call. 3. Pledge of Allegiance. 4. Public Comments: 5. Presentation of the Fiscal Year 2020/2021 Audit Report by Eder, Casella, and Company. (Finance Director Lynch) 6. Consent Agenda. Motion to Approve the following Consent Agenda Items: A. Resolution Establishing the Dates for Regular Meetings of the McHenry City Council for the period January 1, 2022 through December 31, 2022; (City Administrator Morefield) B. Resolution Designating November 15-19, 2021 as National Apprenticeship Week in the City of McHenry; (Economic Development Director Martin) C. Ordinance Repealing and Replacing Title 4: Business and License Regulations, Chapter 13: Solicitors, of the City of McHenry Municipal Code; (Deputy Clerk Johnson, City Attorney McArdle) D. Ordinance Establishing the City of McHenry Backup Special Service Are a #12 for Lots 1 and 2 of the Final Plat of Subdivision of Authentix at McHenry; (Community Development Director Polerecky) E. Ordinance Amending the Fiscal Year 2021/2022 Tax Increment Financing Budget in the amount of $29,804 and Authorization to enter into an Agreement with HR Green to update the 100% Construction Plans for the Riverwalk from North of the Pearl Street Bridge to South Weber Park; (Parks & Recreation Director Hobson) F. Ordinance and Agreement Among Certain Taxing Bodies Authorizing the Abatement of Taxes on Certain Property Within the City of McHenry located at 2815 W. Route 120; (City Attorney McArdle) 1 G. October 18, 2021 City Council Meeting Minutes; H. Issuance of Checks in the amount of $764,598.98. 7. Individual Action Item Agenda. A. Motion to approve an Ordinance Annexing Property Commonly Known as 1205 Charles Street in McHenry, McHenry County, Illinois with a Zoning Classification of RS-4. (Community Development Director Polerecky) B. Motion to approve an Ordinance Granting a Use Variation and Zoning Variations for a 3-unit Multifamily Building at 3807 Main Street. (Community Development Director Polerecky) C. Motion to approve an Ordinance Granting a Zoning Map Amendment, Zoning Variations, and a Conditional Use Permit for the operation of a bar/tavern with live entertainment at 4502 W. Crystal Lake Road. (Community Development Director Polerecky) D. Motion Granting Preliminary Plan Approval for the Taylor Place Apartments Multifamily Integrated Design District Development at 812 N. Mill Street. (Community Development Director Polerecky) E. Motion to approve an Ordinance Granting a Use Variation and Zoning Variations for a 50 -unit Multifamily Apartment Building at 914 N. Front Street. (Community Development Director Polerecky) 8. Discussion Items. 9. Executive Session to discuss the purchase or lease of real property for use of the public body, including meetings held for the purpose of discussing whether a particular parcel should be acquired (5 ILCS 120/2(c)(5).); and for litigation, when the public body finds that an action is probable or imminent (5 ILCS 120/2(c)(11).) 10. Individual Action Item Agenda. A. Motion to approve an Intergovernmental Agreement for the Acquisition and Transfer of Real Estate between the Commuter Rail Division of the Regional Transportation Authority and the City of McHenry. (City Administrator Morefield) 11. Staff Reports. A. November 1, 2021 Staff Report Provided. 12. Mayor’s Report. 13. City Council Comments. 14. Adjourn. The complete City Council packet is available for review online via the City website at www.cityofmchenry.org. For further information, please contact the Office of the City Administrator at 815-363-2108. 2 Office of Finance & Accounting Carolyn Lynch, Director McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2100 Fax: (815) 363-2119 www.cityofmchenry.org DISCUSSION ITEM/PRESENTATION DATE: November 1, 2021 TO: Mayor and City Council FROM: Carolyn Lynch, Finance Director RE: FY20/21 Audit ATTACHMENTS: FY20/21 SAS Letter FY20/21 Audit Report _____________________________________________________________________________ Attached is the Annual Financial Report for the year ending April 30, 2021 that was completed by the firm of Eder, Casella, and Company. The audit document was received by staff and the document includes important information about the City’s results for the 2020/21 fiscal year and current financial condition. There are a few areas of the report that are important to highlight. First, the Combining Schedule of Revenues, Expenditures, and Changes in Fund Balance – General Fund on page 69-70 (of the pdf) of the audit includes the year end results and the total fund balance for the General Fund. The total fund balance is $9,983,287, which is an increase of $2,949,395 over April 30, 2020. There will be a transfer to the Capital Improvements Fund of excess Fund Balance because the required General Fund Balance is $7,987,899 per the Fund Balance and Reserve Policy. According to the policy, the General Fund unassigned balance should be approximately 120 days of the estimated operating expenditures. The fund balance is $1,995,388 over the required fund balance, but during the FY21/22 budget process $1,298,885 of fund balance is budgeted to be used for capital projects. This leaves $696,503 to be transferred to The Capital Improvements Fund. This balance will be available to be used for FY22/23 budgeted capital projects. Second, the Statement of Revenues, Expenses and Changes in Net Position – Proprietary Funds (pg. 26 of the pdf) show the annual operating income and expenses for the Water and Sewer Fund. The Water and Sewer Fund has an operating income of $1,252,214. Even with this operating income, Water/Sewer rates will still need to be annually reviewed and adjusted as operating revenues have increased due to debt service fees for the IEPA loan (as well as increases to water and sewer rates). These IEPA loan fees cover principal payments that are not presented on this statement, they are presented on the Statement of Net Position. 3 Third, the Police Pension Plan Schedule of Changes in the Employer’s Net Pension Liability and Related Ratios report (p. 61 of the pdf) still shows a high Total Pension Liability of $56,351,734. On this same page the Plan Net Position has also increased which is due to the issuance of the Pension Obligation Bond to $61,718,205. This has put the Police Pension Fund in a really good position at just over 100% funded as of April 30, 2021. A representative from Eder, Casella and Company is in attendance to present a summary of the audit, and answer any questions Council may have. 4 October 14, 2021 To the Mayor and City Council Members City of McHenry McHenry, Illinois We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of City of McHenry (City) as of and for the year ended April 30, 2021, and have issued our report thereon dated October 14, 2021. Professional standards require that we advise you of the following matters relating to our audit. Our Responsibility in Relation to the Financial Statement Audit As communicated in our engagement letter dated June 28, 2021, our responsibility under generally accepted auditing standards and, if applicable, Government Auditing Standards and Uniform Guidance, is to form and express an opinions about whether the financial statements that have been prepared by management with your oversight are presented fairly, in all material respects, in accordance with accounting principles generally accepted in the United States of America. Our audit of the financial statements does not relieve you or management of your respective responsibilities. Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain reasonable, rather than absolute, assurance about whether the financial statements are free of material misstatement. An audit of financial statements includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control over financial reporting. Accordingly, as part of our audit, we considered the internal control of the City solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control. We are also responsible for communicating significant matters related to the audit that are, in our professional judgement, relevant to your responsibilities in overseeing the financial reporting process. However, we are not required to design procedures for the purpose of identifying other matters to communicate to you. Planned Scope and Timing of the Audit We conducted our audit consistent with the planned scope and timing we previously communicated to you. Qualitative Aspects of the Organization’s Significant Accounting Practices Significant Accounting Policies Management has the responsibility to select and use appropriate accounting policies. A summary of the significant accounting policies adopted by the City are included in Note 1 to the financial statements. As described in Note 14 to the financial statements, during the year, the City implemented GASB Statement No. 84, Fiduciary Activities. There have been no changes in existing significant accounting policies or their application during fiscal year 2021. No matters have come to our attention that would require us, under professional standards, to inform you about (1) the methods 5 used to account for significant unusual transactions and (2) the effect of significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus. Significant Accounting Estimates Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s current judgement. Those judgements are normally based on knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ markedly from management’s current judgement. We evaluated the key factors and assumptions used to develop the estimates and determined that they are reasonable in relation to the financial statements taken as a whole and in relation to the applicable opinion units. The most sensitive estimate(s) affecting the financial statements are: x Management’s estimate of depreciation expense is based on estimated useful lives of the capital assets held by the City. x Management’s estimates regarding pension and OPEB liabilities were based on various actuarial assumptions regarding projected salaries, market trends, and expected mortality. x Management’s estimates regarding allowances on receivables were based on historical collection rates. Financial Statement Disclosures Certain financial statement disclosures involve significant judgement and are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting the City’s financial statements relate todepreciation, pension and OPEB liabilities, and fair value estimates. The financial statement disclosures are neutral, consistent, and clear. Significant Difficulties Encountered during the Audit We encountered no significant difficulties in dealing with management relating to the performance of the audit. Uncorrected and Corrected Misstatements For purposes of this communication, professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that we believe are trivial, and communicate them to the appropriate level of management. Further, professional standards require us to also communicate the effect of uncorrected misstatements related to prior periods on the relevant classes of transactions, account balances or disclosures, and the financial statements as a whole and each applicable opinion unit. Management has corrected all identified misstatements. In addition, professional standards require us to communicate to you all material, corrected misstatements that were brought to the attention of management as a result of our audit procedures. The attached misstatements that we identified as a result of our audit procedures were brought to the attention of, and corrected by, management. Disagreements with Management For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or audit matter, which could be significant to the City’s financial statements or the auditor’s report. No such disagreements arose during the course of the audit. 6 Representations Requested from Management We have requested certain written representations from management, which are included in the attached letter. Management Consultations with Other Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to the City’s financial statements or a determination of the type of auditor’s opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. Management informed us that, and to our knowledge, there were no consultations with other accountants regarding auditing and accounting matters. Other Significant Matters, Findings, or Issues In the normal course of our professional association with the City, we generally discuss a variety of matters, including the application of accounting principles and auditing standards, operating and regulatory conditions affecting the City, and operating plans and strategies that may affect the risks of material misstatement. However, none of the matters discussed resulted in a condition to our retention as the City’s auditors. Other Matters We applied certain limited procedures to the required information, which is required supplemental information (RSI) that supplement the basic financial statements (as listed on the table of contents in the audit report). Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI. We were engaged to report on supplemental information, except for the Schedule of Expenditures of Federal Awards, which accompany the financial statements but are not RSI. With respect to the supplemental information, except for the Schedule of Expenditures of Federal Awards, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplemental information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. Restriction on Use This report is intended solely for the information and use of the City Council and management of City of McHenry and is not intended to be, and should not be, used by anyone other than these specified parties. Very truly yours, EDER, CASELLA & CO. Certified Public Accountants 7 Client:City of McHenry Engagement:City of McHenry Period Ending:4/30/2021 Workpaper:General Fund AJEs Report Account Description Debit Credit Adjusting Journal Entries JE # 1 2100 ACCOUNTS PAYABLE 8,435.00 22-5430 TRAINING 8,435.00 Total 8,435.00 8,435.00 I have reviewed and agree with the adjustments above: Client Signature Date Adjust AP for portion of law enforcement training performed and completed in FY22 8 7/8/2021 2:33 PM Client:City of McHenry - City of McHenry Engagement:City of McHenry Period Ending:4/30/2021 Trial Balance:200 - Tourism Fund Workpaper:200 - Tourism Fund AJE's Report Account Description W/P Ref Debit Credit None in FY21 I have reviewed and agree with the adjustment(s) above: Client Signature Date 1 of 1 9 7/8/2021 2:33 PM Client:City of McHenry - City of McHenry Engagement:City of McHenry Period Ending:4/30/2021 Trial Balance:205 - Pageant Fund Workpaper:205 - Pageant Fund AJEs Report Account Description W/P Ref Debit Credit None in FY21 I have reviewed and agree with the adjustment(s) above: Client Signature Date 1 of 1 10 Client:City of McHenry Engagement:City of McHenry Period Ending:4/30/2021 Workpaper:Band Fund Adjusting Entries Report Account Description W/P Ref Debit Credit None in FY21 I have reviewed and agree with the adjustment(s) above: Client Signature Date 11 7/8/2021 2:39 PM Client:City of McHenry - City of McHenry Engagement:City of McHenry Period Ending:4/30/2021 Trial Balance:215 - McHenry Character Counts Workpaper:215 - McHenry Character Counts AJEs Report Account Description W/P Ref Debit Credit None in FY21 I have reviewed and agree with the adjustment(s) above: Client Signature Date 1 of 1 12 Client:City of McHenry Engagement:City of McHenry Period Ending:4/30/2021 Workpaper:Civil Defense Fund Adjusting Entries Report Account Description W/P Ref Debit Credit None in FY21 I have reviewed and agree with the adjustment(s) above: Client Signature Date 13 9/15/2021 11:13 AM Client:City of McHenry - City of McHenry Engagement:City of McHenry Period Ending:4/30/2021 Trial Balance:225 - Alarm Board Fund Workpaper:225 - Alarm Board Fund - 2 Account Description W/P Ref Debit Credit 5110 CONTRACTUAL SERVICES 55,084.00 2100 ACCOUNTS PAYABLE 55,084.00 Total 55,084.00 55,084.00 Total Adjusting Journal Entries 55,084.00 55,084.00 Total All Journal Entries 55,084.00 55,084.00 Signature Date Adjusting Journal Entries JE # 1 Adjust accounts payable for missing 25% of revenue payable to McHenry Township FPD 1 of 1 14 Client:City of McHenry Engagement:City of McHenry Period Ending:4/30/2021 Workpaper:Audit Expense Adjusting Entries Report Account Description W/P Ref Debit Credit None in FY21 I have reviewed and agree with the adjustment(s) above: Client Signature Date 15 7/8/2021 2:41 PM Client:City of McHenry - City of McHenry Engagement:City of McHenry Period Ending:4/30/2021 Trial Balance:260 - Annexation Fund Workpaper:260 - Annexation Fund AJE's Report Account Description W/P Ref Debit Credit None in FY21 I have reviewed and agree with the adjustment(s) above: Client Signature Date 1 of 1 16 7/8/2021 2:42 PM Client:City of McHenry - City of McHenry Engagement:City of McHenry Period Ending:4/30/2021 Trial Balance:270 - Motor Fuel Tax Fund Workpaper:270 - Motor Fuel Tax Adjusting Journal Entries Report Account Description W/P Ref Debit Credit None in FY21 I have reviewed and agree with the adjustment(s) above: Client Signature Date 1 of 1 17 9/15/2021 10:05 AM Client:City of McHenry - City of McHenry Engagement:City of McHenry Period Ending:4/30/2021 Trial Balance:275 - Municpal Motor Fuel Tax Fund Workpaper:275 - Municipal Motor Fuel Tax Fund AJEs Account Description W/P Ref Debit Credit 1 of 1 1RQHIRU)< BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB &OLHQW6LJQDWXUH BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB 'DWH 18 7/8/2021 2:50 PM Client:City of McHenry - City of McHenry Engagement:City of McHenry Trial Balance:280 - Developer Donations Fund Workpaper:280 - Developer Donations Adjusting Journal Entries Report Account Description W/P Ref Debit Credit None in FY21 I have reviewed and agree with the adjustment(s) above: Client Signature Date 1 of 1 19 9/15/2021 10:25 AM Client:City of McHenry - City of McHenry Engagement:City of McHenry Period Ending:4/30/2021 Trial Balance:290 - TIF Fund Workpaper:290 - TIF AJE's Report Account Description W/P Ref Debit Credit None in FY'21 I have reviewed and agree with the adjustment(s) above: Client Signature Date 1 of 1 20 7/8/2021 2:55 PM Client:City of McHenry - City of McHenry Engagement:City of McHenry Trial Balance:300 - Debt Service Fund Workpaper:300 - Debt Service Fund Adjusting Journal Entries Report Account Description W/P Ref Debit Credit None in FY21 I have reviewed and agree with the adjustment(s) above: Client Signature Date 1 of 1 21 7/8/2021 3:25 PM Client:City of McHenry - City of McHenry Engagement:City of McHenry Period Ending:4/30/2021 Trial Balance:400 - Recreation Center Fund Workpaper:400 - Recreation Center Adjusting Journal Entries Report Account Description W/P Ref Debit Credit None in FY21 I have reviewed and agree with the adjustment(s) above: Client Signature Date 1 of 1 22 Client:City of McHenry Engagement:City of McHenry Period Ending:4/30/2021 Workpaper:Special Service Area #1A - Shamrock Adjusting Entries Report Account Description W/P Ref Debit Credit None in FY21 I have reviewed and agree with the adjustment(s) above: Client Signature Date 23 Client:City of McHenry Engagement:City of McHenry Period Ending:4/30/2021 Workpaper:Lakewood SSA #4 Account Description W/P Ref Debit Credit None in FY21 I have reviewed and agree with the adjustment(s) above: Client Signature Date 24 9/15/2021 10:12 AM Client:City of McHenry - City of McHenry Engagement:City of McHenry Period Ending:4/30/2021 Trial Balance:426 - Huntersville SSA #6 Workpaper:426 - Huntersville SSA Adjusting Journal Entries Report Account Description W/P Ref Debit Credit None in FY21 I have reviewed and agree with the adjustments above: Client Signature Date 1 of 1 25 7/8/2021 3:02 PM Client:City of McHenry - City of McHenry Engagement:City of McHenry Period Ending:4/30/2021 Trial Balance:440 - Capital Improvements Fund Workpaper:440 - Capital Improvements AJES Account Description W/P Ref Debit Credit None in FY21 I have reviewed and agree with the adjustments above: Client Signature Date 1 of 1 26 7/8/2021 3:03 PM Client:City of McHenry - City of McHenry Engagement:City of McHenry Period Ending:4/30/2021 Trial Balance:450 - Capital Equipment Fund Workpaper:450 - Capital Equipment Fund AJEs Report Account Description W/P Ref Debit Credit None in FY21 I have reviewed and agree with the adjustments above: Client Signature Date 1 of 1 27 10/1/2021 8:02 AM Client:City of McHenry - City of McHenry Engagement:City of McHenry Period Ending:4/30/2021 Trial Balance:510 - Water/Sewer Fund Workpaper:510 - Water Sewer Adjusting Journal Entries Report Account Description W/P Ref Debit Credit Adjusting Journal Entries JE # 1 31-3610 SALES 149,983.00 31-3615 BASE CHARGE - CAPITAL 9,236.00 32-3610 SALES 170,012.00 32-3615 BASE CHARGE - CAPITAL 18,452.00 32-3660 DEBT SERVICE FEE 27,788.00 32-3665 DEBT SERVICE FEE - SEWER CONS LOAN 139,726.00 1280 ACCOUNTS RECEIVABLE-UNBILLED 515,197.00 Total 515,197.00 515,197.00 Adjusting Journal Entries JE # 3 32-7600 LOAN INTEREST 8,237.00 2308 WWTP LOAN PAYABLE 8,237.00 Total 8,237.00 8,237.00 Adjusting Journal Entries JE # 4 2320 ACCRUED INTEREST PAYABLE 16,618.00 32-7091 DEBT SERVICE - ACCRUED INTEREST 16,618.00 Total 16,618.00 16,618.00 Adjusting Journal Entries JE # 5 2101 Accounts Payable 995 Pool 197,748.40 32-8500 UTILITY SYSTEM 197,748.40 Total 197,748.40 197,748.40 Adjusting Journal Entries JE # 6 2449 DEFERRED OUTFLOWS - OPEB 55,779.00 2450 NET OPEB LIABILITY 10,265.00 99-9930 OPEB EXPENSE 9,662.00 2451 DEFERRED INFLOWS - OPEB 63,894.00 99-9940 OPEB CONTRIBUTIONS 11,812.00 Total 75,706.00 75,706.00 ADJ Water/Sewer AR for 6/4/21 billings (PBC) Adjust IEPA Loan Balance to Actual Adjust Accrued Interest Payable (IEPA Adjustment PBC was made backwards) Adjust accounts payable for portion of invoice incorrectly included in AP Record GASB 75 OPEB Activity 1 of 2 28 10/1/2021 8:02 AM Client:City of McHenry - City of McHenry Engagement:City of McHenry Period Ending:4/30/2021 Trial Balance:510 - Water/Sewer Fund Workpaper:510 - Water Sewer Adjusting Journal Entries Report Account Description W/P Ref Debit Credit Adjusting Journal Entries JE # 7 2443 IMRF NET PENSION LIABILITY 748,064.00 2445 IMRF DEFERRED OUTFLOWS-CONT AFTER 22,241.00 2444 IMRF DEFERRED OUTFLOWS-ACT EVAL 72,979.00 2448 IMRF - DEFERRED INFLOWS 387,114.00 31-4420 EMPLOYER CONTRIBUTION - IMRF 151,719.00 32-4420 EMPLOYER CONTRIBUTION - IMRF 83,732.00 35-4420 EMPLOYER CONTRIBUTION - IMRF 74,761.00 Total 770,305.00 770,305.00 Adjusting Journal Entries JE # 8 31-9510 DEPRECIATION EXPENSE 3,639.00 1388 ACCUM DEPREC - SYSTEM & EQUIPMEN 3,639.00 Total 3,639.00 3,639.00 Adjusting Journal Entries JE # 9 32-9100 AMORTIZATION-BOND DISCOUNT 46,005.00 31-9100 AMORTIZATION-BOND DISCOUNT 46,005.00 Total 46,005.00 46,005.00 Adjusting Journal Entries JE # 10 1388 ACCUM DEPREC - SYSTEM & EQUIPMEN 369,129.00 32-3836 GAIN/LOSS ON SALE 1,249,286.00 1308 SYSTEMS & EQUIPMENT 1,618,415.00 Total 1,618,415.00 1,618,415.00 Adjusting Journal Entries JE # 11 1308 SYSTEMS & EQUIPMENT 291,066.00 32-8500 UTILITY SYSTEM 291,066.00 Total 291,066.00 291,066.00 I have reviewed and agree with the adjustment(s) above: Client Signature Date Record Fixed Asset Addition that wasn't recorded Reclass Bond Premium Amortization Record GASB 68 IMRF Activity Adjust Depreciation to match PBC WPs Record Fixed Asset Deletions 2 of 2 29 9/15/2021 10:16 AM Client:City of McHenry - City of McHenry Engagement:City of McHenry Period Ending:4/30/2021 Trial Balance:510 - Water/Sewer Fund Workpaper:510 - Water Sewer Adjusting Journal Entries Report Account Description W/P Ref Debit Credit Adjusting Journal Entries JE # 1 31-3610 SALES 149,983.00 31-3615 BASE CHARGE - CAPITAL 9,236.00 32-3610 SALES 170,012.00 32-3615 BASE CHARGE - CAPITAL 18,452.00 32-3660 DEBT SERVICE FEE 27,788.00 32-3665 DEBT SERVICE FEE - SEWER CONS LOAN 139,726.00 1280 ACCOUNTS RECEIVABLE-UNBILLED 515,197.00 Total 515,197.00 515,197.00 Adjusting Journal Entries JE # 3 32-7600 LOAN INTEREST 8,237.00 2308 WWTP LOAN PAYABLE 8,237.00 Total 8,237.00 8,237.00 Adjusting Journal Entries JE # 4 2320 ACCRUED INTEREST PAYABLE 16,618.00 32-7091 DEBT SERVICE - ACCRUED INTEREST 16,618.00 Total 16,618.00 16,618.00 Adjusting Journal Entries JE # 5 2101 Accounts Payable 995 Pool 197,748.40 32-8500 UTILITY SYSTEM 197,748.40 Total 197,748.40 197,748.40 Adjusting Journal Entries JE # 6 2449 DEFERRED OUTFLOWS - OPEB 55,779.00 2450 NET OPEB LIABILITY 6,065.00 99-9930 OPEB EXPENSE 10,980.00 2451 DEFERRED INFLOWS - OPEB 63,894.00 99-9940 OPEB CONTRIBUTIONS 8,930.00 Total 72,824.00 72,824.00 ADJ Water/Sewer AR for 6/4/21 billings (PBC) Adjust IEPA Loan Balance to Actual Adjust Accrued Interest Payable (IEPA Adjustment PBC was made backwards) Adjust accounts payable for portion of invoice incorrectly included in AP Record GASB 75 OPEB Activity 1 of 2 30 9/15/2021 10:16 AM Client:City of McHenry - City of McHenry Engagement:City of McHenry Period Ending:4/30/2021 Trial Balance:510 - Water/Sewer Fund Workpaper:510 - Water Sewer Adjusting Journal Entries Report Account Description W/P Ref Debit Credit Adjusting Journal Entries JE # 7 2443 IMRF NET PENSION LIABILITY 748,064.00 2445 IMRF DEFERRED OUTFLOWS-CONT AFTER 22,241.00 2444 IMRF DEFERRED OUTFLOWS-ACT EVAL 72,979.00 2448 IMRF - DEFERRED INFLOWS 387,114.00 31-4420 EMPLOYER CONTRIBUTION - IMRF 151,719.00 32-4420 EMPLOYER CONTRIBUTION - IMRF 83,732.00 35-4420 EMPLOYER CONTRIBUTION - IMRF 74,761.00 Total 770,305.00 770,305.00 Adjusting Journal Entries JE # 8 31-9510 DEPRECIATION EXPENSE 3,639.00 1388 ACCUM DEPREC - SYSTEM & EQUIPMEN 3,639.00 Total 3,639.00 3,639.00 Adjusting Journal Entries JE # 9 32-9100 AMORTIZATION-BOND DISCOUNT 46,005.00 31-9100 AMORTIZATION-BOND DISCOUNT 46,005.00 Total 46,005.00 46,005.00 Adjusting Journal Entries JE # 10 1388 ACCUM DEPREC - SYSTEM & EQUIPMEN 369,129.00 32-3836 GAIN/LOSS ON SALE 1,249,286.00 1308 SYSTEMS & EQUIPMENT 1,618,415.00 Total 1,618,415.00 1,618,415.00 Adjusting Journal Entries JE # 11 1308 SYSTEMS & EQUIPMENT 291,066.00 32-8500 UTILITY SYSTEM 291,066.00 Total 291,066.00 291,066.00 I have reviewed and agree with the adjustment(s) above: Client Signature Date Record Fixed Asset Addition that wasn't recorded Reclass Bond Premium Amortization Record GASB 68 IMRF Activity Adjust Depreciation to match PBC WPs Record Fixed Asset Deletions 2 of 2 31 7/8/2021 3:05 PM Client:City of McHenry - City of McHenry Engagement:City of McHenry Period Ending:4/30/2021 Trial Balance:550 - Capital Development Fund Workpaper:550 - Capital Development AJE's Report Account Description W/P Ref Debit Credit None in FY21 I have reviewed and agree with the adjustment(s) above: Client Signature Date 1 of 1 32 Client:City of McHenry Engagement:City of McHenry Period Ending:4/30/2021 Workpaper:Utility Improvements Fund AJEs Account Description W/P Ref Debit Credit None in Fiscal Year 2021 I have reviewed and agree with the adjustment(s) above: Client Signature Date 33 9/15/2021 10:17 AM Client:City of McHenry - City of McHenry Engagement:City of McHenry Period Ending:4/30/2021 Trial Balance:590 - Marina Operations Fund Workpaper:590 - Marina Fund Adjusting Entries Report Account Description W/P Ref Debit Credit None in FY'21 I have reviewed and agree with the adjustment(s) above: Client Signature Date 1 of 1 34 7/8/2021 1:43 PM Client:City of McHenry - City of McHenry Engagement:City of McHenry Period Ending:4/30/2021 Trial Balance:600 - Employee Insurance Fund Workpaper:600 - Employee Insurance Fund AJE's Report Account Description W/P Ref Debit Credit None in Fiscal Year 2021 I have reviewed and agree with the adjustment(s) above: Client Signature Date 1 of 1 35 7/8/2021 1:42 PM Client:City of McHenry - City of McHenry Engagement:City of McHenry Period Ending:4/30/2021 Trial Balance:610 - Risk Management Fund Workpaper:610 - Risk Management Fund AJE's Report Account Description W/P Ref Debit Credit None in Fiscal Year 2021 I have reviewed and agree with the adjustment(s) above: Client Signature Date 1 of 1 36 10/1/2021 8:03 AM Client:City of McHenry - City of McHenry Engagement:City of McHenry Period Ending:4/30/2021 Trial Balance:620 - Information Technology Fund Workpaper:620 - Information Technology Fund AJE Report Account Description W/P Ref Debit Credit 2449 DEFERRED OUTFLOWS - OPEB 2,532.00 2450 NET OPEB LIABILITY 595.00 9930 OPEB Expense 578.00 2451 DEFERRED INFLOWS - OPEB 3,000.00 9940 OPEB Contributions 705.00 Total 3,705.00 3,705.00 Adjusting Journal Entries JE # 2 2443 IMRF NET PENSION LIABILITY 43,607.00 2445 IMRF DEF OUTFLOWS - CONTR MADE AFTER MEAS 258.00 2444 IMRF DEFERRED OUTLFOWS-ACTUARIAL REPORT 19,650.00 2448 IMRF - DEFFERED INFLOWS 6,876.00 4420 EMPLOYER CONTRIBUTION - IMRF 17,339.00 Total 43,865.00 43,865.00 Adjusting Journal Entries JE # 3 2100 ACCOUNTS PAYABLE 309.00 5110 CONTRACTUAL SERVICES 309.00 Total 309.00 309.00 Adjusting Journal Entries JE # 4 1308 SYSTEMS & EQUIPMENT 72,310.00 2310 Capital Lease Payable 72,310.00 Total 72,310.00 72,310.00 Adjusting Journal Entries JE # 5 2310 Capital Lease Payable 24,103.00 8300 EQUIPMENT 24,103.00 Total 24,103.00 24,103.00 Adjusting Journal Entries JE # 6 9510 DEPRECIATION EXPENSE 10,847.00 1388 ACCUM DEPREC - SYSTEM & EQUIPMEN 10,847.00 Total 10,847.00 10,847.00 Record Depreciation on Capital Lease Record IMRF GASB 68 Activity Adjust AP to match PBC Document Adjusting Journal Entries JE # 1 Record GASB 75 OPEB Activity Record Capital Lease Reclass payment made on capital lease 1 of 2 37 10/1/2021 8:03 AM Client:City of McHenry - City of McHenry Engagement:City of McHenry Period Ending:4/30/2021 Trial Balance:620 - Information Technology Fund Workpaper:620 - Information Technology Fund AJE Report Account Description W/P Ref Debit Credit Adjusting Journal Entries JE # 7 2310 Capital Lease Payable 24,103.00 2309 Current Portion of Capital Lease Payable 24,103.00 Total 24,103.00 24,103.00 I have reviewed and agree with the adjustment(s) above: Client Signature Date Adjust Current Portion of Capital Lease Payable 2 of 2 38 9/15/2021 10:20 AM Client:City of McHenry - City of McHenry Engagement:City of McHenry Period Ending:4/30/2021 Trial Balance:620 - Information Technology Fund Workpaper:620 - Information Technology Fund AJE Report Account Description W/P Ref Debit Credit 2449 DEFERRED OUTFLOWS - OPEB 2,532.00 2450 NET OPEB LIABILITY 344.00 9930 OPEB Expense 657.00 2451 DEFERRED INFLOWS - OPEB 3,000.00 9940 OPEB Contributions 533.00 Total 3,533.00 3,533.00 Adjusting Journal Entries JE # 2 2443 IMRF NET PENSION LIABILITY 43,607.00 2445 IMRF DEF OUTFLOWS - CONTR MADE AFTER MEAS 258.00 2444 IMRF DEFERRED OUTLFOWS-ACTUARIAL REPORT 19,650.00 2448 IMRF - DEFFERED INFLOWS 6,876.00 4420 EMPLOYER CONTRIBUTION - IMRF 17,339.00 Total 43,865.00 43,865.00 Adjusting Journal Entries JE # 3 2100 ACCOUNTS PAYABLE 309.00 5110 CONTRACTUAL SERVICES 309.00 Total 309.00 309.00 Adjusting Journal Entries JE # 4 1308 SYSTEMS & EQUIPMENT 72,310.00 2310 Capital Lease Payable 72,310.00 Total 72,310.00 72,310.00 Adjusting Journal Entries JE # 5 2310 Capital Lease Payable 24,103.00 8300 EQUIPMENT 24,103.00 Total 24,103.00 24,103.00 Adjusting Journal Entries JE # 6 9510 DEPRECIATION EXPENSE 10,847.00 1388 ACCUM DEPREC - SYSTEM & EQUIPMEN 10,847.00 Total 10,847.00 10,847.00 I have reviewed and agree with the adjustment(s) above: Client Signature Date Record Depreciation on Capital Lease Record IMRF GASB 68 Activity Adjust AP to match PBC Document Adjusting Journal Entries JE # 1 Record GASB 75 OPEB Activity Record Capital Lease Reclass payment made on capital lease 1 of 1 39 Client:City of McHenry Engagement:City of McHenry Period Ending:4/30/2021 Workpaper:Employee Flex Fund Adjusting Entries Report Account Description W/P Ref Debit Credit None in Fiscal Year 2021 I have reviewed and agree with the adjustment(s) above: Client Signature Date 40 Client:City of McHenry Engagement:City of McHenry Period Ending:4/30/2021 Workpaper:Developmental Escrow Fund AJEs Account Description W/P Ref Debit Credit None in Fiscal Year 2021 I have reviewed and agree with the adjustment(s) above: Client Signature Date 41 7/8/2021 1:38 PM Client:City of McHenry - City of McHenry Engagement:City of McHenry Period Ending:4/30/2021 Trial Balance:740 - Retained Personnel Escrow Fund Workpaper:740 - Retained Personnel Escrow AJEs Report Account Description W/P Ref Debit Credit None in Fiscal Year 2021 I have reviewed and agree with the adjustment(s) above: Client Signature Date 1 of 1 42 Client:City of McHenry Engagement:City of McHenry Period Ending:4/30/2021 Workpaper:Revolving Loan Fund Adjusting Entries Report Account Description W/P Ref Debit Credit None in Fiscal Year 2021 I have reviewed and agree with the adjustment(s) above: Client Signature Date 43 9/15/2021 10:23 AM Client:City of McHenry - City of McHenry Engagement:City of McHenry Period Ending:4/30/2021 Trial Balance:760 - Police Pension Fund Workpaper:760 - Police Pension AJE's Report Account Description W/P Ref Debit Credit None in FY21 Client Signature Date 1 of 1 44 45 46 47 48 49 50 51 CITY OF McHENRY, ILLINOIS ANNUAL FINANCIAL REPORT APRIL 30, 2021 52 CITY OF McHENRY, ILLINOIS TABLE OF CONTENTS APRIL 30, 2021 PAGE INDEPENDENT AUDITOR’S REPORT 1 INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTORL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 4 REQUIRED SUPPLEMENTARY INFORMATION Management’s Discussion and Analysis 6 BASIC FINANCIAL STATEMENTS Government-Wide Financial Statements Statement of Net Position 13 Statement of Activities 14 Fund Financial Statements Balance Sheet – Governmental Funds 15 Reconciliation of the Balance Sheet to the Statement of Net Position 16 Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds 17 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances to the Statement of Activities 18 Statement of Net Position – Proprietary Funds 19 Statement of Revenues, Expenses, and Changes in Net Position – Proprietary Funds 20 Statement of Cash Flows – Proprietary Funds 21 Statement of Fiduciary Net Position – Fiduciary Funds 22 Statement of Changes in Fiduciary Net Position – Fiduciary Funds 23 Notes to Financial Statements 24 53 CITY OF McHENRY, ILLINOIS TABLE OF CONTENTS APRIL 30, 2021 PAGE REQUIRED SUPPLEMENTARY INFORMATION Illinois Municipal Retirement Fund – Schedule of Changes in the Employer’s Net Pension Liability and Related Ratios 52 Illinois Municipal Retirement Fund – Schedule of Employer Contribution 53 Police Pension Plan – Schedule of Changes in the Employer’s Net Pension Liability and Related Ratios 54 Police Pension Plan – Schedule of Employer Contribution 55 Other Post-Employment Benefit – Schedule of Changes in the Employer’s Total OPEB Liability and Related Ratios 56 Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual – General Fund 57 Notes to Required Supplementary Information 59 SUPPLEMENTAL FINANCIAL INFORMATION Combining Balance Sheet – General Fund 60 Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances – General Fund 61 Combining Balance Sheet – Other Governmental Funds 63 Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances – Other Governmental Funds 64 Combining Schedule of Net Position – Water and Sewer Funds 65 Combining Schedule of Revenues, Expenses, and Changes in Net Position – Water and Sewer Funds 66 Combining Schedule of Net Position – Internal Service Funds 67 Combining Schedule of Revenues, Expenses, and Changes in Net Position – Internal Service Funds 68 Combining Schedule of Net Position – Agency Funds 69 Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual – Special Revenue Fund – Tax Increment Financing Fund 70 54 CITY OF McHENRY, ILLINOIS TABLE OF CONTENTS APRIL 30, 2021 PAGE ANNUAL FDERAL COMPLIANCE SECTION Independent Auditor’s Report on Compliance for Each Major Program and on Internal Control over Compliance in Accordance with the Uniform Guidance 71 Schedule of Expenditures of Federal Awards 73 Note to the Schedule of Expenditures of Federal Awards 74 Schedule of Findings and Questioned Costs 75 Summary Schedule of Prior Audit Findings 76 55 Page 1 INDEPENDENT AUDITOR’S REPORT To the Mayor and City Council Members City of McHenry, Illinois Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business- type activities, each major fund, and the aggregate remaining fund information of as of and for the year ended April 30, 2021, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the City’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. 56 Page 2 Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of McHenry as of April 30, 2021, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Change in Accounting Principle As described in Note 21 to the financial statements, the City implemented GASB Statement No. 84, Fiduciary Activities. Our opinion is not modified with respect to this matter. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the required supplementary information as listed in the table of contents be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The supplemental information as listed in the table of contents and the Schedule of Expenditures of Federal Awards, as required by the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, are presented for purposes of additional analysis and are not a required part of the basic financial statements. The supplemental information and the Schedule of Expenditures of Federal Awards are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplemental information and the Schedule of Expenditures of Federal Awards are fairly stated, in all material respects, in relation to the basic financial statements as a whole. 57 Page 3 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated October 14, 2021 on our consideration of City of McHenry’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering City of McHenry’s internal control over financial reporting and compliance. EDER, CASELLA & CO. Certified Public Accountants McHenry, Illinois October 14, 2021 58 Page 4 INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Mayor and City Council Members City of McHenry, Illinois We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund and the aggregate remaining fund information of City of McHenry as of and for the year ended April 30, 2021, and the related notes to the financial statements which collectively comprise City of McHenry’s basic financial statements, and have issued our report thereon dated October 14, 2021. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered City of McHenry’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of City of McHenry’s internal control. Accordingly, we do not express an opinion on the effectiveness of City of McHenry’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the City’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Compliance and Other Matters As part of obtaining reasonable assurance about whether City of McHenry’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and 59 Page 5 material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. EDER, CASELLA & CO. Certified Public Accountants McHenry, Illinois October 14, 2021 60 REQUIRED SUPPLEMENTARY INFORMATION 61 Page 6 CITY OF McHENRY, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS April 30, 2021 As management of City of McHenry (City), we offer readers of the City’s statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended April 30, 2021. We encourage readers to consider the information presented here in conjunction with additional information found in the notes to the financial statements. FINANCIAL HIGHLIGHTS x The assets and deferred outflows of resources of the City exceed its liabilities and deferred inflows of resources at April 30, 2021 by $126,492,926 (total net position). x The City’s total net position increased by $14,213,787 from current year activities. x At April 30, 2021, the City’s governmental funds reported combined ending fund balances of $17,115,309, an increase from current year activities of $4,232,607. x At April 30, 2021, the unassigned fund balance for the General Fund was $9,947,840, or 20% of total General Fund expenditures. OVERVIEW OF THE FINANCIAL STATEMENTS This discussion and analysis is intended to serve as an introduction to the City’s basic financial statements. The City’s basic financial statements comprise three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. Both perspectives (government-wide and fund level financial statements) allow the user to address relevant questions, broaden a basis for comparison (year to year or government to government) and enhance the City’s accountability. This report also contains other supplementary information in addition to the basic financial statements themselves. Government-wide Financial Statements. The government-wide financial statements are designed to provide readers with a broad overview of the City’s finances, in a manner similar to a private business. The Statement of Net Position presents information on all the City’s assets, deferred outflows of resources, liabilities, and deferred inflows of resources with the difference amongst those being reported as net position. Increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating when comparing year to year results. The Statement of Activities presents information showing how the City’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). Both government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City include general office, public safety, public works, and parks and recreation. The business-type activities of the City include a water and sewer division. Fund Financial Statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local 62 Page 7 governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All the funds of the City can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. Governmental Funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government- wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the City’s near-term financing decisions. Both the governmental fund Balance Sheet and the governmental fund Statement of Revenues, Expenditures, and Changes in Fund Balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The City maintains 13 individual governmental funds. Information is presented separately in the governmental fund Balance Sheet and in the governmental fund Statement of Revenues, Expenditures, and Changes in Fund Balances for the General Fund which is considered to be a major fund. Data from the other twelve governmental funds are combined into a single, aggregated presentation. The other twelve funds include Pageant, Audit, Recreation Center, Capital Improvements, Capital Equipment, Debt Service, Motor Fuel Tax, Municipal Motor Fuel Tax, Developer Donations, Tax Increment Financing, and two Special Service Areas. Proprietary Funds. The City maintains two different types of proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses an enterprise fund to account for the Water and Sewer Division. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City’s various functions. The City uses internal service funds to account for its employee insurance, risk management, and information technology. Because these services predominately benefit governmental rather than business-type functions, they have been included within governmental activities in the government-wide financial statements. Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the water and sewer functions. Internal service funds are combined into a single, aggregate presentation in the proprietary fund financial statements. Individual fund data for the internal service funds is provided in the form of combining statements. Fiduciary Funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the City. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the City’s own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. The City’s fiduciary funds include the Police Pension Trust Fund and two Agency Funds. Notes to the Financial Statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. Other Information. In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the City’s appropriation to actual for the General Fund. 63 Page 8 GOVERNMENT-WIDE FINANCIAL ANALYSIS As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. In the case of the City, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $126,492,926 at April 30, 2021. By far, the largest portion of the City’s net position, 104%, reflects its net investment in capital assets (e.g., land, construction in progress, buildings, and equipment); less any related debt used to acquire those assets that is still outstanding. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City’s investment in capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. 4/30/2021 4/30/2020 4/30/2021 4/30/2020 4/30/2021 4/30/2020 Assets Current and Other Assets 31,058,546$ 21,558,407$ 10,302,358$ 9,625,741$ 41,360,904$ 31,184,148$ Capital Assets 93,079,776 89,464,420 79,117,145 77,451,024 172,196,921 166,915,444 Total Assets 124,138,322$ 111,022,827$ 89,419,503$ 87,076,765$ 213,557,825$ 198,099,592$ Deferred Outflows of Resources 5,043,989$ 8,560,289$ 663,123$ 1,094,478$ 5,707,112$ 9,654,767$ Liabilities Long-Term Liabilities Outstanding 37,433,777$ 41,978,872$ 35,123,153$ 36,972,448$ 72,556,930$ 78,951,320$ Other Liabilities 2,551,356 2,425,836 576,039 933,679 3,127,395 3,359,515 Total Liabilities 39,985,133$ 44,404,708$ 35,699,192$ 37,906,127$ 75,684,325$ 82,310,835$ Deferred Inflows of Resources 15,996,392$ 12,087,703$ 1,091,294$ 1,076,682$ 17,087,686$ 13,164,385$ Net Position Net Investment in Capital Assets 87,364,529$ 83,665,808$ 44,729,867$ 41,979,946$ 132,094,396$ 125,645,754$ Restricted 4,551,421 1,816,523 - - 4,551,421 1,816,523 Unrestricted (18,715,164) (22,391,626) 8,562,273 7,208,488 (10,152,891) (15,183,138) Total Net Position 73,200,786$ 63,090,705$ 53,292,140$ 49,188,434$ 126,492,926$ 112,279,139$ City of McHenry's Statement of Net Position TotalBusiness-Type ActivitiesGovernmental Activities An additional portion of the City’s net position, 4%, represents resources that are subject to external restrictions on how they may be used (e.g. Highways and Streets, Capital Projects, Police Pension and Special Service Areas). The remaining balance of unrestricted net position was a deficit in the current year of $10,152,891. Governmental Activities. Governmental activities increased the City’s net position by $10,110,081. Key differences from the prior year are as follows: 64 Page 9 FY 2021 FY 2020 FY 2021 FY 2020 FY 2021 FY 2020 Revenues Program Revenues Charges for Services 6,051,369$ 6,270,895$ 8,823,831$ 9,225,491$ 14,875,200$ 15,496,386$ Operating Grants and Contributions 1,374,741 517,577 - - 1,374,741 517,577 Capital Grants and Contributions 5,466,135 694,426 4,874,766 452,750 10,340,901 1,147,176 General Revenues Property Taxes 5,638,068 5,629,639 - - 5,638,068 5,629,639 Sales Taxes 11,727,968 10,459,369 - - 11,727,968 10,459,369 Other Taxes 4,960,587 4,209,183 - - 4,960,587 4,209,183 Other 23,125 226,959 19,764 84,792 42,889 311,751 Total Revenues 35,241,993$ 28,008,048$ 13,718,361$ 9,763,033$ 48,960,354$ 37,771,081$ Expenses General Office 4,421,135$ 5,103,092$ -$ -$ 4,421,135$ 5,103,092$ Public Safety 11,376,829 14,176,025 - - 11,376,829 14,176,025 Public Works 5,246,147 6,359,880 - - 5,246,147 6,359,880 Parks and Recreation 3,277,676 4,025,167 - - 3,277,676 4,025,167 Interest and Fees 708,614 161,094 - - 708,614 161,094 Depreciation 223,641 210,024 - - 223,641 210,024 Water - - 2,056,292 1,947,255 2,056,292 1,947,255 Sewer - - 6,476,625 4,406,916 6,476,625 4,406,916 Utility Work - - 997,958 1,137,143 997,958 1,137,143 Total Expenses 25,254,042$ 30,035,282$ 9,530,875$ 7,491,314$ 34,784,917$ 37,526,596$ Increase/(Decrease) in Net Position Before Transfers 9,987,951$ (2,027,234)$ 4,187,486$ 2,271,719$ 14,175,437$ 244,485$ Transfers 93,780 95,602 (93,780) (95,602) - - Gain on Sale of Capital Assets 28,350 21,576 10,000 5,676 38,350 27,252 Increase/(Decrease) in Net Position 10,110,081$ (1,910,056)$ 4,103,706$ 2,181,793$ 14,213,787$ 271,737$ Net Position - Beginning of Year 63,090,705 65,000,761 49,188,434 47,006,641 112,279,139 112,007,402 Net Position - End of Year 73,200,786$ 63,090,705$ 53,292,140$ 49,188,434$ 126,492,926$ 112,279,139$ City of McHenry's Change in Net Position Governmental Activities Business-Type Activities Total Revenues increased in the current year due to an increase in capital grants and contributions attributable to Public Works. There was also an increase in Operating grants, which was mainly due to the receipt of the CURES Grant, which was federal funding established via the CARES Act. Sales taxes also rebounded in the current year after a decline at the start of the COVID pandemic in the prior year. Expenses decreased mainly due to decreased in the expenses related to the Police Pension and IMRF Pension liabilities in the current year. Business-Type Activities. Business-type activities increased the City’s net position by $4,103,706. Revenues for Business-Type Activities also increased in the current year due to an increase in capital grants and contributions. Expenses increased significantly for Sewer due to a significant loss related to the disposal of the old plant with the new Sewer Consolidation project being completed and put into service in the current year. FINANCIAL ANALYSIS OF THE CITY’S FUNDS As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental Funds. The focus of the City’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City’s 65 Page 10 financing requirements. In particular, unassigned fund balance may serve as a useful measure of the City’s net resources available for spending at the end of the fiscal year. At April 30, 2021, the City’s governmental funds reported combined ending fund balances of $17,115,309, an increase of $4,232,607 in comparison with the prior year. Approximately 57% of this total amount constitutes unassigned fund balance, which is available for spending at the City’s discretion. Of the remaining fund balance, 24% constitutes assigned fund balance, with the remainder of the fund balance restricted to indicate that it is not available for new spending because it has already been committed for specific restricted purposes or is nonspendable. The General Fund is the chief operating fund of the City. At April 30, 2021, the fund balance of the General Fund was $12,140,533, of which $9,947,840 is unassigned. As a measure of the General Fund’s liquidity, it may be useful to compare unassigned fund balance to total fund expenditures. Unassigned fund balance represents 20% of total General Fund expenditures. The General Fund’s fund balance increased by $3,173,791 during the year ended April 30, 2021.This was mainly due to increases in state sales tax and state income taxes. The increase was due to a rebound in the current year, as the COVID pandemic affected prior year collections. There was also an increase in Operating grants, which was mainly due to the receipt of the CURES Grant, which was federal funding established via the CARES Act. Other significant highlights in the governmental funds for the year ended April 30, 2021 are outlined below: x Debt service expenses of $1,400,900 were paid to meet the debt service requirements of the City. x Other governmental funds show a total increase in fund balance of $1,058,816. Proprietary Funds. The City’s proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. Fiduciary Funds (Police Pension and Agency Funds). At April 30, 2021, the Police Pension Fund’s net position amounted to $61,710,980. Additions exceeded deductions during the year, resulting in an increase of $34,055,006 in net position. The increase was largely inflated this year due to employer contributions increasing significantly. This was the result of the current year bond issuance in the General Fund, which was used to fund the Police Pension Liability, which is now an asset as a result of this year’s contributions. GENERAL FUND BUDGETARY HIGHLIGHTS The General Fund actual revenue exceeded budgeted revenue by $2,146,996. This difference was primarily due to more than expected revenue from state sales and income taxes, and receipt of the CURES grant. Actual expenditures exceeded budgeted expenditures by $23,251,432. The increase was attributable to a new bond issued to the City for the Police Pension. The proceeds from this bond were contributed to the Police Pension. CAPITAL ASSET AND DEBT ADMINISTRATION Capital Assets. The City’s investment in capital assets for its governmental and business-type activities as of April 30, 2021 amounts to $172,196,921 (net of accumulated depreciation). This investment includes land, land improvements, art and historical treasures, intangibles, construction in progress, buildings, vehicles, systems and equipment, and infrastructure. 66 Page 11 4/30/2021 4/30/2020 4/30/2021 4/30/2020 4/30/2021 4/30/2020 Land 42,130,875$ 42,130,875$ 2,208,117$ 2,208,117$ 44,338,992$ 44,338,992$ Land Improvements 2,270,560 2,316,574 - - 2,270,560 2,316,574 Art and Historical Treasures 1,658,927 1,658,927 - - 1,658,927 1,658,927 Intangibles 300,000 300,000 - - 300,000 300,000 Construction in Progress 1,189,805 556,869 38,619 36,082,114 1,228,424 36,638,983 Buildings 12,570,264 12,565,265 388,139 440,066 12,958,403 13,005,331 Vehicles 1,672,496 853,768 780,920 846,065 2,453,416 1,699,833 Systems and Equipment 1,650,507 1,642,756 75,701,350 37,874,662 77,351,857 39,517,418 Infrastructure 29,636,342 27,439,386 - - 29,636,342 27,439,386 Total 93,079,776$ 89,464,420$ 79,117,145$ 77,451,024$ 172,196,921$ 166,915,444$ City of McHenry's Capital Assets (net of depreciation) Governmental Activities Business-Type Activities Total Major capital asset events during the year ended April 30, 2021 included the following: x Developer Donated public improvements for watermains and sanitary sewers, as well as completed roads totaling $8,104,469. x The Sewer Consolidation Project was completed and put into service in the current year, for a total amount of $36,600,918, of which a majority of that amount was included in Construction in Progress in the prior year. x The purchase of three vehicles for Parks and Recreation totaling $118,127. x The purchase of eight new police vehicles totaling $366,471. x The purchase of six new vehicles for Public Works totaling $533,059. For further information, please see Note 4. Long-Term Debt. At April 30, 2021, the City had total bonded debt outstanding of $33,160,000, all of which is backed by the full faith and credit of the City. 4/30/2021 4/30/2020 4/30/2021 4/30/2020 4/30/2021 4/30/2020 General Obligation Bonds 28,810,000$ 5,495,000$ 4,350,000$ 5,095,000$ 33,160,000$ 10,590,000$ IEPA Revolving Loan Fund - - 29,663,434 30,376,988 29,663,434 30,376,988 Notes Payable 1,121,882 248,616 - - 1,121,882 248,616 Bond Premium 48,926 57,304 373,844 6,315 422,770 63,619 Bond Discount (560) (2,308) - (7,227) (560) (9,535) Total 29,980,248$ 5,798,612$ 34,387,278$ 35,471,076$ 64,367,526$ 41,269,688$ City of McHenry's Outstanding Debt Governmental Activities Business-Type Activities Total Additional information on the City’s long-term debt can be found in Note 5. ECONOMIC FACTORS AND NEXT YEAR’S BUDGET AND RATES The City has a diversified economy with the manufacturing and health fields being its primary base. McHenry is among the State’s fastest growing communities with the official population increasing from 16,177 in 1990 to 26,992 in 2010. In addition, the City experienced significant growth in the retail, office, and industrial space and a downtown revitalization plan has spurred residential and commercial development in the Downtown TIF District. The City’s economic conditions are as follows: x The average unemployment rate for McHenry County in 2020 was 8.4 percent, which is 154.5 percent higher than a year ago. This is lower than the State’s average unemployment rate of 9.5 percent. x Inflation in the area compares to the national consumer price index. Similar to a nationwide trend, residential growth in the City has slowed, but has been increasing over the last few years. The number of single family residential building permits issued by the City has decreased from 139 in 2007 to 72 in 2019 and 85 in 2020. However, this is an improvement as there were only 8 in 2016 and 36 in 2018. 67 Page 12 The total value of all commercial and residential improvements and new permits increased from $15.2 million in 2012 to $51.1 million in 2019, but is down to $22.2 million in 2020. Development and adoption of the 2021/22 budget was premised on providing core municipal services while having an operationally balanced budget. It was expected there was going to be a volatile economic forecast when the pandemic began, but the City is fortunate to be in a favorable financial situation because of rebounding revenues and controlled operating expenses. Property tax revenues have been held flat or decreased since 2010 and EAV values have increased slightly causing the City’s tax rate to decrease from $0.658494 in 2019 to $0.620882 in 2020. In April 2021, the City Council approved the proposed fiscal year 2021/22 General Fund budget increasing the prior year’s budget by $33,909. These increases were primarily due to capital outlay expenses. In the last few years, capital expenditures have been funded with Fund Balance Reserves which have been built up due to cost reduction measures necessary to adopt a balanced budget in the past years as well as rebounding state shared revenues. Management is still closely monitoring revenues as well as expenses for any changes due to the pandemic. REQUESTS FOR INFORMATION This financial report is designed to provide a general overview of the City’s finances for all those with an interest in the City’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to: City of McHenry, 333 South Green St., McHenry, Illinois, 60050. 68 BASIC FINANCIAL STATEMENTS 69 Governmental Business-Type Activities Activities Total ASSETS Cash and Cash Equivalents 14,102,734$ 7,066,045$ 21,168,779$ Deposit with Paying Agent 32,870 - 32,870 Investments 774,276 1,269,479 2,043,755 Prepaid Items 107,263 36,369 143,632 Inventory 84,000 - 84,000 Receivables (Net of Allowance for Estimated Uncollectible Amounts) Accounts Receivable - Billed 759,394 564,531 1,323,925 Accounts Receivable - Unbilled 199,673 740,240 939,913 Property Taxes 5,588,214 - 5,588,214 Accrued Interest 1,725 2,980 4,705 Due from Other Governmental Units 3,917,205 622,714 4,539,919 Cable Franchise Fee Receivable 124,721 - 124,721 Police Pension Asset 5,366,471 - 5,366,471 Capital Assets Land, Construction in Progress, and Other Non-Depreciable Assets 45,279,607 2,246,736 47,526,343 Other Capital Assets, Net of Depreciation 47,800,169 76,870,409 124,670,578 TOTAL ASSETS 124,138,322$ 89,419,503$ 213,557,825$ DEFERRED OUTFLOWS OF RESOURCES Pension Expense/Revenue - IMRF 1,557,489$ 555,480$ 2,112,969$ Pension Expense/Revenue - Police Pension 1,641,205 - 1,641,205 OPEB Expense/Revenue 1,845,295 107,643 1,952,938 TOTAL DEFERRED OUTFLOWS OF RESOURCES 5,043,989$ 663,123$ 5,707,112$ LIABILITIES Accounts Payable and Accrued Expenses 1,313,110$ 351,602$ 1,664,712$ Security Deposits Held - 3,000 3,000 Due to Other Governmental Units 157,169 - 157,169 Due to Other Funds 147,287 (146,869) 418 Unearned Revenue 648,877 96,675 745,552 Accrued Interest 284,913 271,631 556,544 Non-Current Liabilities Due Within One Year 1,913,901 1,882,479 3,796,380 Due in More Than One Year 35,519,876 33,240,674 68,760,550 TOTAL LIABILITIES 39,985,133$ 35,699,192$ 75,684,325$ DEFERRED INFLOWS OF RESOURCES Unavailable Revenue - Property Taxes 5,588,214$ -$ 5,588,214$ Unavailable Revenue - State Taxes 107,578 - 107,578 Unavailable Revenue - Rent 2,400 - 2,400 Pension Expense/Revenue - IMRF 2,732,373 974,505 3,706,878 Pension Expense/Revenue - Police Pension 5,563,731 - 5,563,731 OPEB Expense/Revenue 2,002,096 116,789 2,118,885 TOTAL DEFERRED INFLOWS OF RESOURCES 15,996,392$ 1,091,294$ 17,087,686$ NET POSITION Net Investment in Capital Assets 87,364,529$ 44,729,867$ 132,094,396$ Restricted for: Public Safety 1,443,945 - 1,443,945 Highways and Streets 1,676,665 - 1,676,665 Capital Projects 675,404 - 675,404 Tax Increment Financing 755,407 - 755,407 Unrestricted/(Deficit)(18,715,164) 8,562,273 (10,152,891) TOTAL NET POSITION 73,200,786$ 53,292,140$ 126,492,926$ APRIL 30, 2021 CITY OF MCHENRY, ILLINOIS STATEMENT OF NET POSITION GOVERNMENT-WIDE FINANCIAL STATEMENTS Page 13 The Notes to Financial Statements are an integral part of this statement.70 OperatingCapitalCharges for Grants and Grants and Governmental Business-TypeExpensesServices Contributions Contributions ActivitiesActivitiesTotalFunctions/ProgramsGovernmental ActivitiesGeneral Office4,421,135$ 4,998,487$ -$ 321,054$ 898,406$ -$ 898,406$ Public Safety11,376,829 589,672 - - (10,787,157) - (10,787,157) Public Works5,246,147 249,361 1,374,741 5,145,081 1,523,036 - 1,523,036 Parks and Recreation3,277,676 213,849 - - (3,063,827) - (3,063,827) Interest and Fees on Long-Term Debt708,614 - - - (708,614) - (708,614) Depreciation - Unallocated223,641 - - - (223,641) - (223,641) 25,254,042$ 6,051,369$ 1,374,741$ 5,466,135$ (12,361,797)$ -$ (12,361,797)$ Business-Type ActivitiesWater2,056,292$ 2,855,501$ -$ 3,129,766$ -$ 3,928,975$ 3,928,975$ Sewer6,476,625 5,968,330 - 1,745,000 - 1,236,705 1,236,705 Utility Work997,958 - - - - (997,958) (997,958) 9,530,875$ 8,823,831$ -$ 4,874,766$ -$ 4,167,722$ 4,167,722$ Total Primary Government34,784,917$ 14,875,200$ 1,374,741$ 10,340,901$ (12,361,797)$ 4,167,722$ (8,194,075)$ General RevenuesTaxesProperty Tax, Levied for General Purposes5,638,068$ -$ 5,638,068$ State Sales Tax11,727,968 - 11,727,968 State Income Tax3,276,353 - 3,276,353 State Motor Fuel Tax1,238,521 - 1,238,521 Other Taxes445,713 - 445,713 Unrestricted Investment Earnings19,525 12,510 32,035 Gain on Sale of Capital Assets28,350 10,000 38,350 Miscellaneous3,600 7,254 10,854 Transfers93,780 (93,780) - Total General Revenues and Transfers22,471,878$ (64,016)$ 22,407,862$ Change in Net Position10,110,081$ 4,103,706$ 14,213,787$ Net Position - May 1, 202063,090,705 49,188,434 112,279,139 Net Position - April 30, 202173,200,786$ 53,292,140$ 126,492,926$ CITY OF MCHENRY, ILLINOISGOVERNMENT-WIDE FINANCIAL STATEMENTSSTATEMENT OF ACTIVITIESFOR THE YEAR ENDED APRIL 30, 2021Net (Expense) Revenue andChanges in Net PositionProgram RevenuesPage 14The Notes to Financial Statements are an integral part of this statement.71 Other Total General Governmental Governmental Fund Funds Funds ASSETS Cash and Cash Equivalents 9,204,207$ 4,245,419$ 13,449,626$ Deposit with Paying Agent - 32,870 32,870 Investments 183,168 582,839 766,007 Prepaid Items 35,447 - 35,447 Inventory - 84,000 84,000 Receivables (Net of Allowance for Estimated Uncollectible Amounts) Accounts Receivable - Billed 746,566 12,079 758,645 Accounts Receivable - Unbilled 159,777 37,882 197,659 Property Taxes 4,865,646 722,568 5,588,214 Accrued Interest 985 730 1,715 Due from Other Governmental Units 3,495,008 422,197 3,917,205 Cable Franchise Fee Receivable 124,721 - 124,721 TOTAL ASSETS 18,815,525$ 6,140,584$ 24,956,109$ LIABILITIES Accounts Payable and Accrued Expenses 1,019,283$ 255,942$ 1,275,225$ Due to Other Governmental Units 79,849 77,320 157,169 Due to Other Funds 147,287 - 147,287 Unearned Revenue 562,927 - 562,927 TOTAL LIABILITIES 1,809,346$ 333,262$ 2,142,608$ DEFERRED INFLOWS OF RESOURCES Unavailable Revenue - Property Taxes 4,865,646$ 722,568$ 5,588,214$ Unavailable Revenue - State Taxes - 107,578 107,578 Unavailable Revenue - Rent - 2,400 2,400 TOTAL DEFERRED INFLOWS OF RESOURCES 4,865,646$ 832,546$ 5,698,192$ FUND BALANCES Nonspendable 35,447$ 84,000$ 119,447$ Restricted for: Capital Projects - 675,404 675,404 Highways and Streets - 1,676,665 1,676,665 Tax Increment Financing - 755,407 755,407 Assigned for: Alarm 870,025 - 870,025 Audit - 4,620 4,620 Tourism 129,879 - 129,879 Band 24,645 - 24,645 Highways and Streets - 869,823 869,823 Capital Projects 823,039 886,002 1,709,041 Revolving Loan 301,018 - 301,018 Civil Defense 8,640 - 8,640 Parks and Recreation - 238,826 238,826 Unassigned 9,947,840 (215,971) 9,731,869 TOTAL FUND BALANCES 12,140,533$ 4,974,776$ 17,115,309$ TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES 18,815,525$ 6,140,584$ 24,956,109$ CITY OF MCHENRY, ILLINOIS FUND FINANCIAL STATEMENTS BALANCE SHEET GOVERNMENTAL FUNDS APRIL 30, 2021 Page 15 The Notes to Financial Statements are an integral part of this statement. 72 Total Fund Balances - Governmental Funds 17,115,309$ Amounts reported for governmental activities in the Statement of Net Position are different because: Capital assets used in governmental activities are not financial resources and therefore are not reported in the funds. Capital Assets, net of accumulated depreciation 93,079,776 Deferred charges and credits for debt issue discounts or premiums and other debt issue costs are not financial resources and therefore are not reported in the funds. Bond Discounts, net of related amortization 560 Some liabilities are not due and payable in the current period and therefore are not reported in the funds. Bonds and Notes Payable (29,931,882)$ Bond Premiums, net of related amortization (48,925) Accrued Interest on Long-Term Debt, net of receivable (284,913) Compensated Absences (590,747) OPEB Liability (5,445,540) Net Pension Asset/(Liability) - IMRF (1,417,243) Net Pension Asset/(Liability) - Police Pension 5,366,471 (32,352,779) Deferred pension and OPEB costs in governmental activities are not financial resources and therefore are not reported in the funds. Pension Deferred Outflows - Police Pension 1,641,205$ Pension Deferred Outflows - IMRF 1,557,489 Pension Deferred Inflows - Police Pension (5,563,731) Pension Deferred Inflow - IMRF (2,732,373) OPEB Deferred Outflows 1,845,295 OPEB Deferred Inflows (2,002,096) (5,254,211) Internal service funds are used by management to charge the cost of certain activities, such as insurance and information technology, to individual funds. The assets and liabilities of the internal service funds are included in governmental activities in the government-wide Statement of Net Position (net of amount allocated to business-type activities). Internal service fund balances are not included in other reconciling items above except for long term debt and long term pension items. Current Assets 735,966$ Current Liabilities (123,835) 612,131 Net Position of Governmental Activities 73,200,786$ CITY OF MCHENRY, ILLINOIS FUND FINANCIAL STATEMENTS RECONCILIATION OF THE BALANCE SHEET TO THE STATEMENT OF NET POSITION APRIL 30, 2021 Page 16 The Notes to Financial Statements are an integral part of this statement. 73 Other Total General Governmental Governmental Fund Funds Funds REVENUES Local Taxes Property Tax 4,940,218$ 697,850$ 5,638,068$ Intergovernmental State Sales Tax 11,727,968 - 11,727,968 State Income Tax 3,276,353 - 3,276,353 State Replacement Tax 78,561 - 78,561 State Motor Fuel Tax - 1,238,521 1,238,521 State Pull Tab/Games Tax 893 - 893 Inter Track Wagering Tax 16,080 - 16,080 State Telecommunications Tax 244,938 - 244,938 State Grants - 1,037,679 1,037,679 Cannabis Use Tax 23,883 - 23,883 Federal Grants 1,354,713 70,933 1,425,646 Bond Interest Rebates - 3,688 3,688 Other Local Sources Hotel/Motel Tax 81,358 - 81,358 Franchise Fees 360,325 - 360,325 Licenses and Permits 957,091 - 957,091 Fines and Forfeitures 370,906 - 370,906 Charges for Services 1,025,406 351,397 1,376,803 Interest 16,097 6,144 22,241 Local Grants 31,239 - 31,239 Miscellaneous Rent 18,694 43,147 61,841 Royalties 175,000 - 175,000 Donations 750 320,304 321,054 Annexation Fees 249,361 - 249,361 Reimbursements 2,347,323 111,632 2,458,955 Other Miscellaneous 2,367 38,720 41,087 27,299,524$ 3,920,015$ 31,219,539$ EXPENDITURES Current General Office 4,380,027$ 61,706$ 4,441,733$ Public Safety 36,920,124 - 36,920,124 Public Works 3,355,377 140,108 3,495,485 Parks and Recreation 2,173,581 677,576 2,851,157 Capital Outlay 1,744,151 1,313,604 3,057,755 Debt Service Principal 303,553 950,000 1,253,553 Interest and Fees 8,235 139,112 147,347 48,885,048$ 3,282,106$ 52,167,154$ EXCESS OR (DEFICIENCY) OF REVENUES OVER EXPENDITURES (21,585,524)$ 637,909$ (20,947,615)$ OTHER FINANCING SOURCES/(USES) Transfers (327,127)$ 420,907$ 93,780$ Bond Proceeds 24,265,000 - 24,265,000 Bond Issuance Costs (335,432) - (335,432) Proceeds from Loan 1,128,524 - 1,128,524 Sale of City Property 28,350 - 28,350 24,759,315$ 420,907$ 25,180,222$ NET CHANGE IN FUND BALANCES 3,173,791$ 1,058,816$ 4,232,607$ FUND BALANCES - MAY 1, 2020 8,966,742 3,915,960 12,882,702 FUND BALANCES - APRIL 30, 2021 12,140,533$ 4,974,776$ 17,115,309$ FOR THE YEAR ENDED APRIL 30, 2021 CITY OF MCHENRY, ILLINOIS FUND FINANCIAL STATEMENTS STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS Page 17 The Notes to Financial Statements are an integral part of this statement.74 Net Change in Fund Balances - Total Governmental Funds 4,232,607$ Amounts reported for governmental activities in the Statement of Activities are different because: Governmental funds report capital outlays as expenditures. However, in the Statement of Activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capital outlay exceeds depreciation expense in the current period. Depreciation Expense (3,113,891)$ Capital Outlays 2,566,117 (547,774) In the Statement of Activities, only the gain or loss on the sale of capital assets is reported, whereas in the governmental funds, the proceeds from the sale increase financial resources. Thus, the change in net position differs from the change in fund balance by the undepreciated balance of the capital assets sold. Proceeds from Sale of Capital Assets (28,350)$ Gain/(Loss) on Sale of Capital Assets 28,350 - Donated capital assets used in governmental activities are not current financial resources and therefore are not reported as revenue in the governmental funds.4,025,258 Long-term debt proceeds provide current financial resources to governmental funds and are therefore shown as revenue in the Statement of Revenues, Expenditures, and Changes in Fund Balance, but issuing debt increases long-term liabilities in the Statement of Net Position and is therefore not reported in the Statement of Activities. Bond Proceeds (24,265,000)$ Note Payable Proceeds (1,128,524) (25,393,524) Some expenses reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds. Accrued Interest on Long-Term Debt (232,466)$ Accrued Interest Rebate (2,716) Bond Discount - Amortization (1,748) Bond Premium - Amortization 8,378 Pension Expense (378,393) OPEB Expense (165,637) Compensated Absences (1,401) (773,983) Employer Pension and OPEB Contributions are expensed in the fund financial statements but are treated as a reduction in the Net Pension Liability on the government-wide financial statements. Pension Employer Contributions - IMRF 820,741$ Pension Employer Contributions - Police Pension 26,150,315 OPEB Employer Contributions 202,490 27,173,546 Repayment of long-term debt requires the use of current financial resources of governmental funds and is therefore shown as an expenditure in the Statement of Revenues, Expenditures, and Changes in Fund Balances, but the repayment reduces long-term liabilities in the Statement of Net Position and is therefore not reported in the Statement of Activities. Repayment of Long-Term Debt 1,253,553 Internal service funds are used by management to charge the costs of certain activities, such as insurance and information technology, to individual funds. The net revenue of the internal service funds is reported with governmental activities in the government-wide Statement of Activities (net of amount allocated to business-type activities). Change in Net Position 92,316$ Pension Expense - IMRF (included in Pension - IMRF Expense Above) 1,897 OPEB Expense (included in OPEB Expense Above) 578 OPEB Employer Contributions (included in OPEB Employer Contributions Above) (705) Depreciation Expense (included in Change in Net Position above) 46,312 140,398 Change in Net Position of Governmental Activities 10,110,081$ CITY OF MCHENRY, ILLINOIS FUND FINANCIAL STATEMENTS RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND FOR THE YEAR ENDED APRIL 30, 2021 CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES Page 18 The Notes to Financial Statements are an integral part of this statement. 75 Business Type Governmental Activities - Activities - Enterprise Fund Internal Water and Sewer Service Funds ASSETS Current Assets Cash and Cash Equivalents 7,066,045$ 653,108$ Investments 1,269,479 8,269 Prepaid Items 36,369 71,816 Receivables (Net of Allowance for Estimated Uncollectible Amounts) Accounts Receivable - Billed 564,531 749 Accounts Receivable - Unbilled 740,240 2,014 Accrued Interest 2,980 10 Due from Other Governmental Units 622,714 - Due from Other Funds 146,869 - 10,449,227$ 735,966$ Non-Current Assets Capital Assets Land 2,208,117$ -$ Buildings 2,736,098 - Systems and Equipment 109,330,726 660,219 Vehicles 1,855,839 - Construction in Progress 38,619 - Less: Accumulated Depreciation (37,052,254) (445,580) 79,117,145$ 214,639$ TOTAL ASSETS 89,566,372$ 950,605$ DEFERRED OUTFLOWS OF RESOURCES Pension Expense/Revenue - IMRF 555,480$ 32,949$ OPEB Expense/Revenue 107,643 6,422 TOTAL DEFERRED OUTFLOWS OF RESOURCES 663,123$ 39,371$ LIABILITIES Current Liabilities Accounts Payable and Accrued Expenses 351,602$ 37,885$ Security Deposits Held 3,000 - Unearned Revenue 96,675 85,950 Accrued Interest 271,631 - IEPA Loan Payable - Current 1,480,962 - Bonds Payable - Current 401,517 - Lease Payable - Current - 24,103 2,605,387$ 147,938$ Non-Current Liabilities Compensated Absences 102,097$ 5,705$ IMRF Net Pension Liability 361,888 86,905 Total OPEB Liability 271,890 22,579 IEPA Loan Payable (Net of Current Portion Shown Above)28,182,472 - Bonds Payable (Net of Current Portion Shown Above)4,322,327 - Lease Payable (Net of Current Portion Shown Above)- 24,104 33,240,674$ 139,293$ TOTAL LIABILITIES 35,846,061$ 287,231$ DEFERRED INFLOWS OF RESOURCES Pension Expense/Revenue - IMRF 974,505$ 57,805$ OPEB Expense/Revenue 116,789 6,970 TOTAL DEFERRED INFLOWS OF RESOURCES 1,091,294$ 64,775$ NET POSITION Net Investment in Capital Assets 44,729,867$ 166,432$ Unrestricted/(Deficit)8,562,273 471,538 TOTAL NET POSITION 53,292,140$ 637,970$ APRIL 30, 2021 CITY OF MCHENRY, ILLINOIS FUND FINANCIAL STATEMENTS STATEMENT OF NET POSITION PROPRIETARY FUNDS Page 19 The Notes to Financial Statements are an integral part of this statement. 76 Business Type Governmental Activities - Activities - Enterprise Fund Internal Water and Sewer Service Funds OPERATING REVENUES Charges for Services Customer Fees 5,525,689$ -$ Capital Fees 403,444 - Debt Service Fees 2,667,070 - Penalties 98,149 - Water Meter Sales 37,025 - Other 6,810 - Internal Service Funds - 4,978,564 8,738,187$ 4,978,564$ OPERATING EXPENSES Water Department Personnel Salaries 509,026$ -$ Miscellaneous Personnel Expenses 164,615 - Other Operating Expenses 755,831 - Depreciation 588,751 - Sewer Department Personnel Salaries 724,839 - Miscellaneous Personnel Expenses 276,841 - Other Operating Expenses 1,763,763 - Depreciation 1,704,349 - Utility Work Department Personnel Salaries 655,726 - Miscellaneous Personnel Expenses 263,391 - Other Operating Expenses 78,841 - Internal Service Funds Personnel Salaries - 158,902 Miscellaneous Personnel Expenses - 3,462,191 Other Operating Expenses - 1,218,947 Depreciation - 46,312 7,485,973$ 4,886,352$ OPERATING INCOME/(LOSS)1,252,214$ 92,212$ NON-OPERATING REVENUE/(EXPENSE) Interest Income 12,510$ 104$ Rental Income 46,352 - Grant Income 795,556 - Interest Rebate Income 7,254 - Interest and Fees (741,570) - Bond Issuance Costs (54,046) - Amortization 39,292 - Gain/(Loss) on Sale of Fixed Asset (1,239,286) - Donated Public Improvements - Water 2,334,210 - Donated Public Improvements - Sewer 1,745,000 - 2,945,272$ 104$ INCOME/(LOSS) BEFORE CONTRIBUTIONS AND TRANSFERS 4,197,486$ 92,316$ TRANSFERS (TO)/FROM OTHER FUNDS (93,780) - CHANGE IN NET POSITION 4,103,706$ 92,316$ NET POSITION - MAY 1, 2020 49,188,434 545,654 NET POSITION - APRIL 30, 2021 53,292,140$ 637,970$ FOR THE YEAR ENDED APRIL 30, 2021 CITY OF MCHENRY, ILLINOIS FUND FINANCIAL STATEMENTS STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION PROPRIETARY FUNDS Page 20 The Notes to Financial Statements are an integral part of this statement.77 Business Type Governmental Activities -Activities - Enterprise Fund Internal Water and Sewer Service Funds CASH FLOWS FROM OPERATING ACTIVITIES Receipts from Customers 8,765,483$ -$ Receipts from Employees for Services - 513,960 Receipts from Other Funds for Services - 4,479,922 Payments to Suppliers for Goods and Services (2,090,332) (4,642,419) Payments to Employees for Services (2,138,286) (175,328) Payments to Other Funds for Services (1,272,788) (50,764) Internal Activity - Payments (to)/from Other Funds (135,361) - Net Cash Provided/(Used) by Operating Activities 3,128,716$ 125,371$ CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES Transfers (to)/from Other Funds (93,780)$ -$ Net Cash Provided/(Used) by Non-Capital Financing Activities (93,780)$ -$ CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Proceeds from the Sale of Capital Assets 10,000$ -$ Purchase of Capital Assets (1,129,297) (137,871) Proceeds from Bond Issuance, including Bond Premium 3,984,088 - Proceeds from Lease - 72,310 Interest Paid on Capital Debt, Net of Rebate (758,464) - Principal Paid on Capital Debt (5,028,596) (24,103) Other Receipts/(Payments)(532,694) - Proceeds from State & Federal Grants (Capital)620,556 - Net Cash Provided/(Used) by Capital and Related Financing Activities (2,834,407)$ (89,664)$ CASH FLOWS FROM INVESTING ACTIVITIES Interest on Cash and Cash Equivalents and Investments 7,462$ 80$ Net Cash Provided/(Used) by Investing Activities 7,462$ 80$ NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS 207,991$ 35,787$ CASH AND CASH EQUIVALENTS BALANCE - MAY 1, 2020 (INCLUDING RESTRICTED CASH AND OVERDRAFTS)6,858,054 617,321 CASH AND CASH EQUIVALENTS BALANCE - APRIL 30, 2021 (INCLUDING RESTRICTED CASH AND OVERDRAFTS)7,066,045$ 653,108$ RECONCILIATION OF OPERATING INCOME/(LOSS) TO NET CASH PROVIDED/(USED) BY OPERATING ACTIVITIES Operating Income/(Loss)1,252,214$ 92,212$ Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation Expense 2,293,100 46,312 Change in assets, liabilities and deferred amounts: Receivables, net (57,880) 17,906 Prepaid Items (1,585) (800) Accounts Payable and Other Payables (14,771) (26,077) Unearned Revenue (30,000) 13,284 Pension Liabilities (748,064) (43,607) OPEB Liabilities (10,265) (595) Deferred Pension Expenses/Revenues 437,852 26,268 Deferred OPEB Expenses/Revenue 8,115 468 Net Cash Provided/(Used) by Operating Activities 3,128,716$ 125,371$ NONCASH CAPITAL FINANCING ACTIVITIES IEPA Loan Draws 715,042$ -$ FOR THE YEAR ENDED APRIL 30, 2021 CITY OF MCHENRY, ILLINOIS FUND FINANCIAL STATEMENTS STATEMENT OF CASH FLOWS PROPRIETARY FUNDS Page 21 The Notes to Financial Statements are an integral part of this statement. 78 POLICE PENSION AGENCY TRUST FUND FUNDS ASSETS Cash and Cash Equivalents 5,333,273$ 61,202$ Investments 56,224,010 - Receivables (Net of Allowance for Estimated Uncollectible Amounts) Accrued Interest 160,015 - Due from General Fund 418 - TOTAL ASSETS 61,717,716$ 61,202$ LIABILITIES Accounts Payable 6,736$ 54,372$ Due to Depositors - 6,830 TOTAL LIABILITIES 6,736$ 61,202$ NET POSITION - RESTRICTED FOR PENSION BENEFITS 61,710,980$ CITY OF MCHENRY, ILLINOIS STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS APRIL 30, 2021 FUND FINANCIAL STATEMENTS Page 22 The Notes to Financial Statements are an integral part of this statement. 79 POLICE PENSION TRUST FUND ADDITIONS Contributions Employer 26,150,315$ Plan Members 904,347 Total Contributions 27,054,662$ Investment Income Interest and Dividends 1,199,826$ Gain/(Loss) on Sale of Investments (94,810) Net Increase/(Decrease) in Fair Value of Investments 8,457,610 9,562,626$ Less: Investment Management Fees 88,180 Net Investment Income 9,474,446$ TOTAL ADDITIONS 36,529,108$ DEDUCTIONS Benefits 2,206,470$ Refunds of Contributions 234,629 Administrative Expenses 33,003 TOTAL DEDUCTIONS 2,474,102$ NET INCREASE/(DECREASE) 34,055,006$ NET POSITION - RESTRICTED FOR PENSION BENEFITS - MAY 1, 2020 27,655,974 NET POSITION - RESTRICTED FOR PENSION BENEFITS - APRIL 30, 2021 61,710,980$ CITY OF MCHENRY, ILLINOIS STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FIDUCIARY FUNDS FOR THE YEAR ENDED APRIL 30, 2021 FUND FINANCIAL STATEMENTS Page 23 The Notes to Financial Statements are an integral part of this statement. 80 Page 24 CITY OF McHENRY, ILLINOIS NOTES TO FINANCIAL STATEMENTS APRIL 30, 2021 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES City of McHenry, Illinois’ (City) financial statements are prepared in accordance with generally accepted accounting principles (GAAP) as applied to local governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The most significant accounting policies used by the City are discussed below. A. Reporting Entity The accompanying financial statements comply with the provisions of GASB statements, in that the financial statements include all organizations, activities, and functions that comprise the City. Component units are legally separate entities for which the City (the primary entity) is financially accountable. Financial accountability is defined as the ability to appoint a voting majority of the organization’s governing body and either (1) the City’s ability to impose its will over the organization or (2) the potential that the organization will provide a financial benefit to, or impose a financial burden on, the City. Using these criteria, the City has determined that the Police Pension Fund meets the above criteria. The Police Pension Fund is blended into the City’s primary government financial statements as a fiduciary fund although it remains a separate legal entity. In addition, the City is not included as a component unit in any other governmental reporting entity as defined by GASB pronouncements. B. Basic Financial Statements – Government-Wide Statements The City’s basic financial statements include both government-wide (reporting the City as a whole) and fund (reporting the City’s major funds) financial statements. Both the government-wide and fund financial statements categorize primary activities as either governmental or business-type. The City’s general office, public safety, public works, and parks and recreation services are classified as governmental activities. The City’s water and sewer services are classified as business-type activities. In the government-wide Statement of Net Position, both the governmental and business-type activities columns (a) are presented on a consolidated basis by column, and (b) are reported on a full accrual, economic resource basis, which recognizes all long-term assets and receivables as well as long-term debt and obligations. The City’s net position is reported in three parts – net investment in capital assets; restricted net position; and unrestricted net position. The City first utilizes restricted resources to finance qualifying activities. The government-wide Statement of Activities reports both the gross and net cost of each of the City’s functions and business-type activities. The functions are also supported by general government revenues (property taxes, sales taxes, unrestricted investment earnings, etc.). The Statement of Activities reduces gross expenses (including depreciation) by related program revenues, operating and capital grants. Program revenues must be directly associated with the function (public safety, public works, parks and recreation, etc.) or a business-type activity. Program revenues include charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment. Program revenues also include grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Operating grants include operating-specific and discretionary (either operating or capital) grants while the capital grants column reflects capital-specific grants. The net costs (by function or business-type activity) are normally covered by general revenue (property taxes, sales taxes, unrestricted investment earnings, etc.). 81 NOTES TO FINANCIAL STATEMENTS (Continued) Page 25 The City does not allocate indirect costs. This government-wide focus is more on the sustainability of the City as an entity and the change in the City’s net position resulting from the current year’s activities. C. Basic Financial Statements – Fund Financial Statements The financial transactions of the City are reported in individual funds in the fund financial statements. Each fund is accounted for by providing a separate set of self-balancing accounts that comprise its assets, liabilities, reserves, fund equity, revenues and expenditures/expenses. The various funds are reported by generic classification within the financial statements. The emphasis in fund financial statements is on the major funds in either the governmental or business- type activities categories. Nonmajor funds by category are summarized into a single column. GASB Statement No. 34 sets forth minimum criteria (percentage of the assets, liabilities, revenues or expenditures/expenses of either fund category or the governmental and enterprise combined) for the determination of major funds. The following fund types are used by the City: 1. Governmental Funds The focus of the governmental funds’ measurement (in the fund statements) is upon determination of financial position and changes in financial position (sources, uses, and balances of financial resources) rather than upon net income. The City reports these governmental funds and fund types: General Fund – The General Fund is the general operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund. The Annexation, Alarm Board, Band, Civil Defense, Revolving Loan, Tourism, and Employee Flex Funds are included in this fund. Special Revenue Funds – The Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes. Debt Service Fund – The Debt Service Fund is used to account for the accumulation of funds for the periodic payment of principal, interest, and related fees on general long-term debt. Capital Projects Funds – The Capital Projects Funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by business- type/proprietary funds). The activities reported in these funds are reported as governmental activities in the government-wide financial statements. 2. Proprietary Fund Types The focus of proprietary fund measurement is upon determination of operating income, changes in net position, financial position, and cash flows. The generally accepted accounting principles applicable are those similar to businesses in the private sector. The City reports the following proprietary fund types: Enterprise Funds – Enterprise Funds are required to be used to account for operations for which a fee is charged to external users for goods or services and the activity is financed with debt that is solely secured by a pledge of the net revenues. The activities reported in these funds are reported as business-type activities in the government-wide financial statements. 82 NOTES TO FINANCIAL STATEMENTS (Continued) Page 26 Internal Service Funds – Internal Service Funds are used to account for the financing of goods or services provided by an activity to other departments or funds of the City on a cost-reimbursement basis. Because the principal users of the internal services are the City’s governmental activities, the financial statement of the Internal Service Fund is consolidated into the governmental column when presented in the government-wide financial statements. 3. Fiduciary Fund Types Fiduciary Funds are used to report assets held in a trustee or agency capacity for others and therefore are not available to support City programs. The reporting focus is on net position and changes in net position and is reported using accounting principles similar to proprietary funds. The City’s Fiduciary Funds are presented in the Fiduciary Fund financial statements by type (pension and agency). Since by definition these assets are being held for the benefit of a third party (pension participants, developers, etc.) and cannot be used to address activities or obligations of the City, these funds are not incorporated into the government-wide statements. D. Basis of Accounting Basis of accounting refers to the point at which revenues or expenditures/expenses are recognized in the accounts and reported in the financial statements. It relates to the timing of the measurements made regardless of the measurement focus applied. 1. Accrual Both governmental and business-type activities in the government-wide financial statements and the proprietary and fiduciary fund financial statements are presented on the accrual basis of accounting. Property tax revenues are recognized in the period for which levied. Other nonexchange revenues, including intergovernmental revenues and grants, are reported when all eligibility requirements are met. Fees and charges and other exchange revenues are recognized when earned and expenses are recognized when incurred. 2. Modified Accrual The governmental fund financial statements are presented on the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recorded when susceptible to accrual; i.e., both measurable and available. “Available” means collectible within the current period or within 60 days after year-end. Property tax revenues are recognized in the period for which levied provided they are also available. Intergovernmental revenues and grants are recognized when all eligibility requirements are met and the revenues are available. Expenditures are recognized when the related liability is incurred. Exceptions to this general rule include principal and interest on general obligation long-term debt and employee vacation and sick leave, which are recognized when due and payable. E. Cash and Cash Equivalents and Investments Separate bank accounts are not maintained for all of the City’s funds. Instead, the funds maintain their uninvested cash balances in common checking accounts, with accounting records being maintained to show the portion of the common bank account balances attributable to each participating fund. Occasionally certain of the funds participating in the common bank accounts will incur overdrafts (deficits) in the accounts. Such overdrafts in effect constitute cash borrowed from other City funds and are, therefore, interfund loans that have not been authorized by City Board action. The following funds incurred deficit balances at April 30, 2021: 83 NOTES TO FINANCIAL STATEMENTS (Continued) Page 27 Recreation Center Fund 130,434$ Capital Equipment Fund 23,421 Debt Service Fund 48,639 SSA#4 Lakewood Fund 1,043 SSA #6 Huntersville Fund 179,115 382,652$ Cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments with an original maturity of three months or less from the date of acquisition. Investments are stated at fair value. Fair value is determined by quoted market prices. Gains or losses on the sale of investments are recognized as they are incurred. F. Receivables Receivables are reported net of estimated uncollectible amounts. No property tax receivable allowance is recorded as the City receives approximately 100% of the amount levied. The allowance for water and sewer accounts receivable is $81,556 and all other allowances for other accounts receivable is $589,894. G. Prepaid Items Prepaid items are for payments made by the City in the current year for goods and services received in the subsequent fiscal year. H. Inventories Inventories consist of the cost of unused salt for the roads. The salt inventory as of April 30, 2021 is $84,000. I. Interfund Activity Interfund activity is reported either as loans, services provided, reimbursements or transfers. Loans are reported as interfund receivables and payables as appropriate and are subject to elimination upon consolidation. Services provided, deemed to be at market or near market rates, are treated as revenues and expenditures/expenses. Reimbursements are when one fund incurs a cost, charges the appropriate benefiting fund and reduces its related cost as a reimbursement. All other interfund transactions are treated as transfers. Transfers between governmental or between proprietary funds are netted as part of the reconciliation to the government-wide financial statements. J. Capital Assets Capital assets purchased or acquired with an original cost of $5,000 or more, and $10,000 or more for construction projects, are reported at historical cost or estimated historical cost. Contributed assets are reported at fair market value as of the date of donation. Additions, improvements and other capital outlays that significantly extend the useful life of an asset are capitalized. Other costs incurred for repairs and maintenance are expensed as incurred. Depreciation on all assets is provided on the straight-line half- year basis over the following estimated useful lives: Vehicles 5-15 years Systems and Equipment 5-40 years Building and Improvements 5-62 years Infrastructure 10-40 years GASB Statement No. 34 required the City to report and depreciate new infrastructure assets effective as of May 1, 2003. Infrastructure assets include roads, bridges, underground pipe (other than related to utilities), traffic signals, etc. These infrastructure assets constitute the largest asset class of the City. 84 NOTES TO FINANCIAL STATEMENTS (Continued) Page 28 K. Deferred Outflows and Inflows of Resources In addition to assets and liabilities, the Balance Sheets and Statements of Net Position will sometimes report separate sections for deferred outflows of resources and deferred inflows of resources. Deferred outflows of resources represent a consumption of net position that applies to a future period and so will not be recognized as an outflow of resource until then. Deferred inflows of resources represent an acquisition of net position that applies to a future period and so will not be recognized as an inflow of resource until that time. L. Compensated Absences The City accrues accumulated unpaid vacation and associated employee-related costs when earned (or estimated to be earned) by the employee. The noncurrent portion (the amount estimated to be used in subsequent fiscal years) for governmental funds is reported only as a general long-term debt obligation in the government-wide Statement of Net Position and represents a reconciling item between the fund and government-wide presentations. In accordance with the provisions of Statement of Financial Accounting Standards No. 43, “Accounting for Compensated Absences”, no liability is recorded for nonvesting accumulating rights to receive sick pay benefits. M. Long-Term Obligations In the government-wide financial statements and proprietary fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities or business-type activities and proprietary fund Statement of Net Position. Bond premiums and discounts are amortized over the life of the bonds on a straight-line basis, rather than expensed in the current year. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are reported as debt service expenditures in the year they occur. In the fund financial statements, governmental funds recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. N. Government-Wide and Proprietary Fund Net Position Government-wide and proprietary fund net position is divided into three components: 1. Net investment in capital assets – consists of the historical cost of capital assets less accumulated depreciation and less any debt that remains outstanding that was used to finance those assets. 2. Restricted net position – consists of net position that is restricted by the City’s creditors (for example, through debt covenants), by the state enabling legislation (through restrictions on shared revenues), by grantors (both federal and state), and by other contributors. 3. Unrestricted – all other net position is reported in this category. O. Governmental Fund Balances Governmental fund balances are divided between nonspendable and spendable. Nonspendable fund balances are balances that cannot be spent because they are not expected to be converted to cash or they are legally or contractually required to remain intact. The spendable fund balances are arranged in a hierarchy based on spending constraints. 85 NOTES TO FINANCIAL STATEMENTS (Continued) Page 29 1. Restricted – Restricted fund balances are restricted when constraints are placed on the use by either (a) external creditors, grantors, contributors, or laws or regulations of other governments or (b) law through constitutional provisions or enabling legislation. 2. Committed – Committed fund balances are amounts that can only be used for specific purposes as a result of constraints of the City Council. Committed amounts cannot be used for any other purpose unless the City Council removes those constraints by taking the same type of action (e.g. legislation, resolution, ordinance). Committed fund balances differ from restricted balances because the constraints on their use do not come from outside parties, constitutional provisions, or enabling legislation. 3. Assigned – Assigned fund balances are amounts that are constrained by the City’s intent to be used for specific purposes but are neither restricted nor committed. Intent is expressed by an appointed body (e.g. a budget or finance committee) or official to which the Board of Trustees has delegated the authority to assign, modify or rescind amounts to be used for specific purposes. Pursuant to resolution #R-12-019 by the City Council, the Finance Director has been delegated this authority, with the advice and consent of the Finance and Personnel Committee. Assigned fund balances also include (a) all remaining amounts that are reported in governmental funds (other than the General Fund) that are not classified as nonspendable, restricted or committed, and (b) amounts in the General Fund that are intended to be used for a specific purpose. Specific amounts that are not restricted or committed in a special revenue fund are assigned for purposes in accordance with the nature of their fund type. Assignment within the General Fund conveys that the intended use of those amounts is for a specific purpose that is narrower than the general purpose of the City itself. All assigned fund balances are the residual amounts of the fund. 4. Unassigned – Unassigned fund balance is the residual classification for the General Fund. This classification represents the General Fund balance that has not been assigned to other funds, and that has not been restricted, committed, or assigned to specific purposes within the General Fund. This classification is also used to represent negative fund balances in other funds. The City permits funds to be expended in the following order: Restricted, Committed, Assigned and Unassigned. P. Minimum Fund Balance The City has adopted a formal minimum fund balance policy. For the General, Recreation Center, and Information Technology Funds, fund balance will be maintained at 120 days of estimated operating expenditures. If the balance falls below this minimum a plan will be developed to return to the minimum balance within a reasonable period of time. 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. Q. Property Tax Calendar and Revenues The City’s property tax is levied each calendar year on all taxable real property located in the City’s district on or before the last Tuesday in December. The 2020 levy was passed by the Board on December 21, 2020. Property taxes attach as an enforceable lien on property as of January 1 of the calendar year they are for and are payable in two installments early in June and early in September of the following calendar year. The City receives significant distributions of tax receipts approximately one month after these dates. R. Defining Operating Revenues and Expenses The City’s proprietary funds distinguish between operating and nonoperating revenues and expenses. Operating revenues and expenses of the City’s Water and Sewer Fund consist of charges for services 86 NOTES TO FINANCIAL STATEMENTS (Continued) Page 30 (including tap fees for the water function and systems development charges for the sewer function) and the costs of providing those services, including depreciation and excluding interest cost. All other revenue and expenses are reported as nonoperating. S. Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates. NOTE 2 - DEPOSITS AND INVESTMENTS Deposits with financial institutions are fully insured or collateralized by securities held in the City’s name. The City is allowed to invest in securities as authorized by the Illinois Compiled Statutes, Chapter 30, Act 235/Articles 2 and 6, and Chapter 40, Act 5/Article 3 – Pensions. Investments As of April 30, 2021, the City had the following investments and maturities: Investments Fair Value Less Than 1 1-5 5-10 More Than 10 External Investment Pools 18,004,301$ 18,004,301$ -$ -$ -$ Investment Maturities (in Years) The fair value of investments in the External Investment Pools is the same as the value of pool shares. The External Investment Pools are not SEC-registered but have regulatory oversight through the State of Illinois. Interest Rate Risk. The City will minimize the risk that the market value of securities in the portfolio will fall due to changes in general interest rates, by: x 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. x Investing operating funds primarily in shorter-term securities, money market mutual funds, or similar investment pools. Credit Risk. The City minimizes credit risk, the risk of loss due to the failure of the security issuer or backer, by: x Limiting investments to the safest type of securities. x Pre-qualifying the financial institutions, brokers/dealers, intermediaries, and advisers with which the City will do business. x Diversifying the investment portfolio so that potential losses on individual securities will be minimized. As of April 30, 2021, the City’s investments were rated as follows: Investments Credit Rating Rating Source Illinois Funds Investment Pool AAAm Standard and Poor's Concentration of Credit Risk. The City places no specific limit on the amount the City may invest in any one issuer. There are currently no investments in any one organization that represent 5% or more of the City’s total investments. 87 NOTES TO FINANCIAL STATEMENTS (Continued) Page 31 NOTE 3 - FAIR VALUE MEASUREMENT The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. The City has the following recurring fair value measurements, which includes Pension Fund investments, as of April 30, 2021: Investments by fair value level 4/30/2021 Certificates of Deposit 2,043,757$ -$ 2,043,757$ Pension Only Debt Securities: U.S. Treasury Securities 539,851$ 539,851$ -$ Corporate Bonds 8,530,441 - 8,530,441 Municipal Issues 962,119 - 962,119 Total Debt Securities 10,032,411$ 539,851$ 9,492,560$ Equity Securities: Preferred Stock 54,853$ 54,853$ -$ Mutual Funds 38,851,603 38,851,603 - Foreign Issues 7,285,143 7,285,143 - Total Equity Securities 46,191,599$ 46,191,599$ -$ Total Investments by fair value level 58,267,767$ 46,731,450$ 11,536,317$ Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Fair Value Measurements Using: Debt and equity securities classified in Level 1 of the fair value hierarchy are valued using prices quoted in active markets for those securities. Debt securities and certificates of deposit classified in Level 2 of the fair value hierarchy are valued using a matrix pricing technique. Matrix pricing is used to value securities based on the securities ‘relationship to benchmark quoted prices’ NOTE 4 - CAPITAL ASSETS Capital asset activity for the year ended April 30, 2021 was as follows: Balance Balance May 1, 2020 Increases Decreases April 30, 2021 Governmental Activities Capital Assets not being depreciated Land 42,130,875$ -$ -$ 42,130,875$ Art and Historical Treasures 1,658,927 - - 1,658,927 Intangibles 300,000 - - 300,000 Construction in Progress 556,869 965,741 332,805 1,189,805 Total Capital Assets not being depreciated 44,646,671$ 965,741$ 332,805$ 45,279,607$ Other Capital Assets Land Improvements 6,377,275$ 174,648$ -$ 6,551,923$ Buildings 18,083,292 418,766 - 18,502,058 Vehicles 3,930,896 1,110,949 218,836 4,823,009 Equipment 4,447,643 310,821 - 4,758,464 Infrastructure 76,454,145 4,081,127 - 80,535,272 Total Other Capital Assets at Historical Cost 109,293,251$ 6,096,311$ 218,836$ 115,170,726$ Less Accumulated Depreciation for: Land Improvements 4,060,701$ 220,662$ -$ 4,281,363$ Buildings 5,518,027 413,767 - 5,931,794 Vehicles 3,077,128 292,221 218,836 3,150,513 Equipment 2,804,887 303,070 - 3,107,957 Infrastructure 49,014,759 1,884,171 - 50,898,930 Total Accumulated Depreciation 64,475,502$ 3,113,891$ 218,836$ 67,370,557$ Other Capital Assets, Net 44,817,749$ 2,982,420$ -$ 47,800,169$ Governmental Activities Capital Assets, Net 89,464,420$ 3,948,161$ 332,805$ 93,079,776$ 88 NOTES TO FINANCIAL STATEMENTS (Continued) Page 32 Balance Balance May 1, 2020 Increases Decreases April 30, 2021 Business-Type Activities Capital Assets not being depreciated Land 2,208,117$ -$ -$ 2,208,117$ Construction in Progress 36,082,114 755,003 36,798,498 38,619 Total Capital Assets not being depreciated 38,290,231$ 755,003$ 36,798,498$ 2,246,736$ Other Capital Assets Buildings 2,736,098$ -$ -$ 2,736,098$ Vehicles 1,945,749 - 89,910 1,855,839 Systems and Equipment 69,697,138 41,252,002 1,618,414 109,330,726 Total Other Capital Assets at Historical Cost 74,378,985$ 41,252,002$ 1,708,324$ 113,922,663$ Less Accumulated Depreciation for: Buildings 2,296,032$ 51,927$ -$ 2,347,959$ Vehicles 1,099,684 65,145 89,910 1,074,919 Systems and Equipment 31,822,476 2,176,028 369,128 33,629,376 Total Accumulated Depreciation 35,218,192$ 2,293,100$ 459,038$ 37,052,254$ Other Capital Assets, Net 39,160,793$ 38,958,902$ 1,249,286$ 76,870,409$ Business-Type Activities Capital Assets, Net 77,451,024$ 39,713,905$ 38,047,784$ 79,117,145$ Depreciation expense was charged to functions as follows: Governmental Activities Public Safety 298,309$ Public Works 2,146,289 Parks and Recreation 445,652 Unallocated 223,641 Total Governmental Activities Depreciation Expense 3,113,891$ Business-Type Activities Water 588,751$ Sewer 1,704,349 Total Business-Type Activities Depreciation Expense 2,293,100$ NOTE 5 - LONG-TERM LIABILITY ACTIVITY Long-term liability activity for the year ended April 30, 2021 was as follows: Amounts Balance Balance Due Within May 1, 2020 Additions Retirements April 30, 2021 One Year Governmental Activities Bonds and Notes Payable General Obligation Bonds 5,495,000$ 24,265,000$ 950,000$ 28,810,000$ 1,605,000$ Unamortized Bond Discount (2,308) 1,748 - (560) (560) Unamortized Bond Premium 57,304 - 8,378 48,926 8,378 Note Payable 248,616 1,200,833 327,567 1,121,882 301,083 Total Bonds and Notes Payable 5,798,612$ 25,467,581$ 1,285,945$ 29,980,248$ 1,913,901$ Other Long-Term Liabilities Compensated Absences 588,305$ 2,442$ -$ 590,747$ -$ IMRF Net Pension Liability 3,485,974 31,043 2,099,774 1,417,243 - Police Pension Net Pension Liability 26,487,321 - 26,487,321 - - Total OPEB Liability 5,618,660 165,636 338,756 5,445,540 - Total Other Long-Term Liabilities 36,180,260$ 199,121$ 28,925,851$ 7,453,530$ -$ Governmental Activities Long- Term Obligations 41,978,872$ 25,666,702$ 30,211,796$ 37,433,778$ 1,913,901$ 89 NOTES TO FINANCIAL STATEMENTS (Continued) Page 33 Amounts Balance Balance Due Within May 1, 2020 Additions Retirements April 30, 2021 One Year Business-Type Activities Bonds and Notes Payable General Obligation Bonds 5,095,000$ 2,855,000$ 3,600,000$ 4,350,000$ 355,000$ IEPA Revolving Loan Fund 30,376,988 715,042 1,428,596 29,663,434 1,480,962 Unamortized Bond Discount (7,227) - (7,227) - - Unamortized Bond Premium 6,315 414,046 46,517 373,844 46,517 Total Bonds and Notes Payable 35,471,076$ 3,984,088$ 5,067,886$ 34,387,278$ 1,882,479$ Other Long-Term Liabilities Compensated Absences 109,264$ -$ 7,167$ 102,097$ -$ IMRF Net Pension Liability 1,109,953 11,071 759,136 361,888 - Total OPEB Liability 282,155 9,662 19,927 271,890 - Total Other Long-Term Liabilities 1,501,372$ 20,733$ 786,230$ 735,875$ -$ Business-Type Activities Long-Term Obligations 36,972,448$ 4,004,821$ 5,854,116$ 35,123,153$ 1,882,479$ Bonds and notes payable consisted of the following at April 30, 2021: Maturity Interest Face Carrying Date Rate Amount Amount Governmental Activities General Obligation Bonds 2012 12/15/2027 2.00% - 2.50%850,000$ 435,000$ General Obligation Bonds 2013 5/1/2027 0.40% - 2.75%415,000 230,000 General Obligation Bonds 2015 12/15/2035 2.00% - 3.25% 6,375,000 3,880,000 General Obligation Bonds 2020B 4/30/2040 0.849% - 3.376% 24,265,000 24,265,000 Note Payable 2/20/2024 3.50%574,171 189,720 4 parcels of land pledged as collateral to this loan Note Payable 5/25/2024 3.10%1,128,524 883,955 21 Vehicles purchased pledged as collateral to this loan Capital Lease - Dell Financial 7/31/2022 0.00%72,310 48,207 Total 33,680,005$ 29,931,882$ Business-Type Activities General Obligation Bonds 2010C 12/15/2029 1.00% - 5.25% 5,665,000$ -$ General Obligation Bonds 2012 12/15/2032 2.00% - 2.80% 2,250,000 1,495,000 General Obligation Bonds 2020A 2,855,000 2,855,000 IEPA Revolving Loan Fund 12/30/2037 1.86%31,507,182 29,663,434 Total 42,277,182$ 34,013,434$ At April 30, 2021 the annual debt service requirements to service all long-term debt attributable to governmental activities are: Year Ending April 30 Principal Interest Total 2022 1,906,083$ 776,134$ 2,682,217$ 2023 1,985,093 698,270 2,683,363 2024 1,990,291 667,438 2,657,729 2025 1,940,415 634,540 2,574,955 2026 1,530,000 599,616 2,129,616 2027 - 2031 7,115,000 2,552,758 9,667,758 2032 - 2036 7,325,000 1,669,289 8,994,289 2037 - 2040 6,140,000 522,176 6,662,176 29,931,882$ 8,120,221$ 38,052,103$ At April 30, 2021 the annual debt service requirements to service all long-term debt attributable to business-type activities are: 90 NOTES TO FINANCIAL STATEMENTS (Continued) Page 34 Year Ending April 30 Principal Interest Total Rebate 2022 1,835,962$ 693,770$ 2,529,732$ 53,743$ 2023 1,897,249 655,655 2,552,904 49,490 2024 1,950,788 614,416 2,565,204 45,096 2025 1,999,861 571,634 2,571,495 140,544 2026 2,044,476 527,603 2,572,079 7,809 2027 - 2031 10,626,348 1,926,736 12,553,084 - 2032 - 2036 9,659,290 869,654 10,528,944 - 2037 - 2038 3,999,460 93,320 4,092,780 - 34,013,434$ 5,952,788$ 39,966,222$ 296,682$ Industrial Development Revenue Bonds, Series 2016A and 2016B During fiscal year 2017, the City issued Industrial Development Revenue Bonds on behalf of Fabrik Industries. The bonds are not obligations of the City; therefore, the City does not record the assets or liabilities resulting from the bond issuance as its primary function is to arrange financing between Fabrik and the bond holders. All funds are controlled by the trustee of the bonds (American Community Bank & Trust). The original issue of the bonds aggregated to $7,500,000, and at April 30, 2021 the outstanding balance on the bonds was $1,591,239. NOTE 6 - RESTRICTED EQUITY The following amounts are restricted equity balances at April 30, 2021: Restricted Restricted Restricted for Net Position Fund Balance Governmental Activities/Governmental Funds Public Safety 1,443,945$ -$ Highways and Streets 1,676,665 1,676,665 Capital Projects 675,404 675,404 Tax Increment Financing 755,407 755,407 4,551,421$ 3,107,476$ NOTE 7 - DESIGNATED NET POSITION City management has designated certain Water and Sewer Fund revenues to be used only for debt service. The amount designated at April 30, 2021 was $3,917,742. NOTE 8 - DEFICIT FUND BALANCE At April 30, 2021 a deficit fund balance existed in the following funds: Debt Service Fund 224$ SSA #4 Lakewood Fund 640 SSA#6 Huntersville Fund 179,115 179,979$ NOTE 9 - PROPERTY TAXES Property taxes receivable and unavailable revenue recorded in these financial statements, in the amount of $5,588,214, are from the 2020 tax levy. The unavailable revenue is 100% of the 2020 tax levy. These taxes are unavailable as none of the taxes are collected before the end of the fiscal year and the City does not consider the amounts to be available and does not budget for their use in fiscal year 2021. The City has determined that 100% of the amounts collected for the 2019 levy ($5,638,068) are allocable for use in fiscal year 2021 and, therefore, are recorded in these financial statements as property taxes revenue. A summary of the assessed valuation, rates, and extensions for the years 2020, 2019, and 2018 follows: 91 NOTES TO FINANCIAL STATEMENTS (Continued) Page 35 Tax Year Assessed Valuation Rates Extensions Rates Extensions Rates Extensions General 0.0344 255,869$ 0.0499 349,728$ 0.0756 499,047$ Bond 0.2241 1,667,294 - - - - Police Protection 0.0737 547,966 0.0781 547,964 0.0830 547,962 Insurance 0.0672 499,999 0.0713 500,000 0.0758 499,997 Retirement 0.0537 399,198 0.0569 399,199 0.0605 399,199 Social Security 0.0758 563,751 0.0804 563,745 0.0854 563,752 Audit 0.0036 26,431 0.0038 26,430 0.0040 26,433 Police Pension 0.0885 658,311 0.3182 2,231,744 0.3156 2,082,424 Total Taxes Extended 0.6209 4,618,819$ 0.6585 4,618,810$ 0.7000 4,618,814$ Road and Bridge (from Townships)- 273,254$ - 371,126$ - 370,104$ Special Service Area #4A - 16,123$ - 16,123$ - 16,847$ Tax Increment Financing - 680,014$ - 710,181$ - 636,500$ 2018 $659,844,715 2020 $743,912,520 2019 $701,420,237 NOTE 10 - EXCESS OF EXPENDITURES OVER BUDGET For the year ended April 30, 2021, the following governmental funds had expenditures that exceeded the budget: Fund Budget Actual General $ 25,633,616 $ 48,885,048 23,251,432$ Developer Donations 640,978 646,729 5,751 Capital Improvements 104,589 207,309 102,720 Employee Insurance 3,338,780 3,395,590 56,810 Police Pension 2,281,713 2,562,282 280,569 Excess of Actual Over Budget NOTE 11 - ILLINOIS MUNICIPAL RETIREMENT FUND A. Plan Description The City’s defined benefit pension plan for regular employees provides retirement and disability benefits, post-retirement increases, and death benefits to plan members and beneficiaries. The City’s plan is managed by the Illinois Municipal Retirement Fund (IMRF), the administrator of a multi-employer public pension fund. A summary of IMRF’s pension benefits is provided in the “Benefits Provided” section of this document. Details of all benefits are available from IMRF. Benefit provisions are established by statute and may only be changed by the General Assembly of the State of Illinois. IMRF issues a publicly available Comprehensive Annual Financial Report that includes financial statements, detailed information about the pension plan’s fiduciary net position, and required supplementary information. The report is available for download at www.imrf.org. B. Benefits Provided IMRF has three benefit plans. The vast majority of IMRF members participate in the Regular Plan (RP). The Sheriff’s Law Enforcement Personnel (SLEP) plan is for sheriffs, deputy sheriffs, and selected police chiefs. Counties could adopt the Elected County Official (ECO) plan for officials elected prior to August 8, 2011 (the ECO plan was closed to new participants after that date). All three IMRF benefit plans have two tiers. Employees hired before January 1, 2011 are eligible for Tier 1 benefits. Tier 1 employees are vested for pension benefits when they have at least eight years of qualifying service credit. Tier 1 employees who retire at age 55 (at reduced benefits) or after age 60 (at full benefits) with eight years of service are entitled to an annual retirement benefit, payable monthly for life, in an amount equal to 1-2/3% of the final rate of earnings for the first 15 years of service credit, 92 NOTES TO FINANCIAL STATEMENTS (Continued) Page 36 plus 2% for each year of service credit after 15 years to a maximum of 75% of their final rate of earnings. Final rate of earnings is the highest total earnings during any consecutive 48 months within the last ten years of service, divided by 48. Under Tier 1, the pension is increased by 3% of the original amount on January 1 every year after retirement. Employees hired on or after January 1, 2011 are eligible for Tier 2 benefits. For Tier 2 employees, pension benefits vest after ten years of service. Participating employees who retire at age 62 (at reduced benefits) or after age 67 (at full benefits) with ten years of service are entitled to an annual retirement benefit, payable monthly for life, in an amount equal to 1-2/3% of the final rate of earnings for the first 15 years of service credit, plus 2% for each year of service credit after 15 years to a maximum of 75% of their final rate of earnings. Final rate of earnings is the highest total earnings during any 96 consecutive months within the last ten years of service, divided by 96. Under Tier 2, the pension is increased on January 1 every year after retirement, upon reaching age 67, by the lesser of: x 3% of the original pension amount, or x 1/2 of the increase in the Consumer Price Index of the original pension amount. C. Employees Covered by Benefit Terms All appointed employees of a participating employer who are employed in a position normally requiring 600 hours (1,000 hours for certain employees hired after 1981) or more of work in a year are required to participate. As of December 31, 1899, the following employees were covered by the benefit terms: Retirees and beneficiaries currently receiving benefits 95 Inactive plan members entitled to but not yet receiving benefits 48 Active plan members 100 Total 243 D. Contributions As set by statute, the City’s Regular Plan Members are required to contribute 4.5% of their annual covered salary. The statute requires employers to contribute the amount necessary, in addition to member contributions, to finance the retirement coverage of its own employees. The City’s annual contribution rate for calendar year’s 1899 and 2021 was 12.24%. For the fiscal year ended April 30, 2021, the City contributed $1,027,860 to the plan. The City also contributes for disability benefits, death benefits, and supplemental retirement benefits, all of which are pooled at the IMRF level. Contribution rates for disability and death benefits are set by IMRF’s Board of Trustees, while the supplemental retirement benefits rate is set by statute. E. Net Pension Liability The components of the net pension liability of the IMRF actuarial valuation performed as of December 31, 1899, and a measurement date as of December 31, 1899, calculated in accordance with GASB Statement No. 68, were as follows: Total Pension Liability 43,538,937$ IMRF Fiduciary Net Position 41,759,806 City's Net Pension Liability 1,779,131 IMRF Fiduciary Net Position as a Percentage of the Total Pension Liability 95.91% See the Schedule of Changes in the Employer’s Net Pension Liability and Related Ratios in the Required Supplementary Information following the notes to the financial statements for additional information related to the funded status of the plan. 93 NOTES TO FINANCIAL STATEMENTS (Continued) Page 37 F. Actuarial Assumptions The total pension liability above was determined by an actuarial valuation performed as of December 31, 1899 using the following actuarial methods and assumptions: Assumptions Inflation 2.25% Salary Increases 2.85% - 13.75% including inflation Interest Rate 7.25% Asset Cost Method Entry Age Normal Asset Valuation Method Market Value of Assets Projected Retirement Age Experience-based Table of Rates, specific to the type of eligibility condition, last updated for the 2020 valuation according to an experience study from years 2017 to 2019 For non-disabled retirees, the Pub-2010, Amount-Weighted, below-median income, General, Retiree, Male (adjusted 106%) and Female (adjusted 105%) tables, and future mortality improvements projected using scale MP-2020 were used. For disabled retirees, the Pub-2010, Amount-Weighted, below-median income, General, Disabled Retiree, Male and Female (both unadjusted) tables, and future mortality improvements projected using scale MP-2020 were used. For active members, the Pub-2010, Amount- Weighted, below-median income, General, Employee, Male and Female (both unadjusted) tables, and future mortality improvements projected using scale MP-2020 were used. G. Long-Term Expected Rate of Return The long-term expected rate of return on pension plan investments was determined using a building- block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense, and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return to the target asset allocation percentage and adding expected inflation. The target allocation and best estimates of geometric real rates of return for each major asset class are summarized in the following table as of December 31, 1899: Asset Class Target Allocation Projected Return Equities 37.00% 5.00% International Equities 18.00% 6.00% Fixed Income 28.00% 1.30% Real Estate 9.00% 6.20% Alternatives 7.00% Private Equity 6.95% Hedge Funds N/A Commodities 2.85% Cash 1.00%0.70% 100.00% H. Single Discount Rate A Single Discount Rate of 7.25% was used to measure the total pension liability as of December 31, 2020. The projection of cash flow used to determine this Single Discount Rate assumed that the plan members’ contributions will be made at the current contribution rate, and that employer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. The Single Discount Rate reflects: 1. The long-term expected rate of return on pension plan investments (during the period in which the fiduciary net position is projected to be sufficient to pay benefits), and 94 NOTES TO FINANCIAL STATEMENTS (Continued) Page 38 2. The tax-exempt municipal bond rate based on an index of 20-year general obligation bonds with an average AA credit rating (which is published by the Federal Reserve) as of the measurement date (to the extent that the contributions for use with the long-term expected rate of return are not met). For the purpose of this discount rate, the expected rate of return on pension plan investments is 7.25%; the municipal bond rate is 2.75%; and resulting single discount rate is 7.25%. I. Changes in Net Pension Liability Total Pension Plan Fiduciary Net Pension Liability Net Position Liability (A) (B) (A)-(B) Balances at December 31, 2019 41,507,305$ 36,911,378$ 4,595,927$ Changes for the year: Service Cost 805,614$ -$ 805,614$ Interest on the Total Pension Liability 2,967,915 - 2,967,915 Differences Between Expected and Actual Experience of the Total Pension Liability 680,117 - 680,117 Changes of Assumptions (475,311) - (475,311) Contributions - Employer - 1,137,523 (1,137,523) Contributions - Employee - 361,437 (361,437) Net Investment Income - 5,164,342 (5,164,342) Benefit Payments, including Refunds of Employee Contributions (1,946,703) (1,946,703) - Other (Net Transfer) - 131,829 (131,829) Net Changes 2,031,632$ 4,848,428$ (2,816,796)$ Balances at December 31, 2020 43,538,937$ 41,759,806$ 1,779,131$ J. Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following presents the plan’s net pension liability, calculated using a Single Discount Rate of 7.25%, as well as what the plan’s net pension liability would be if it were calculated using a single Discount Rate that is 1% lower or 1% higher than the current rate: Current 1% Decrease Discount Rate 1% Increase 6.25% 7.25% 8.25% Net Pension Liability/(Asset) 7,545,516$ 1,779,131$ (2,678,545)$ K. Pension Expense/(Income) and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions For the year ended April 30, 2021, the City recognized pension expense/(income) of $42,115. At April 30, 2021, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Outflows of Inflows of Net Outflows Expense in Future Periods Resources Resources of Resources Differences between expected and actual experience 1,246,017$ 4,555$ 1,241,462$ Changes of assumptions 525,484 682,972 (157,488) Net difference between projected and actual earnings on pension plan investments - 3,019,351 (3,019,351) Total deferred amounts to be recognized in pension expense in future periods 1,771,501$ 3,706,878$ (1,935,377)$ Pension contributions made subsequent to the measurement date 341,468 - 341,468 Total deferred amounts related to pensions 2,112,969$ 3,706,878$ (1,593,909)$ 95 NOTES TO FINANCIAL STATEMENTS (Continued) Page 39 $341,468 reported as deferred outflows of resources related to pensions resulting from the City’s contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the reporting year ended April 30, 2022. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Net Deferred Year Ending Outflows of December 31 Resources 2021 (576,732)$ 2022 33,776 2023 (953,884) 2024 (438,537) 2025 - Thereafter - (1,935,377)$ NOTE 12 - POLICE PENSION PLAN A. Plan Administration Full-time police sworn personnel of the City are covered by The Police Pension Fund of the City (Plan). Although this is a single-member pension plan, the defined benefits and employee and employer contribution levels are governed by Illinois Compiled Statues (40 IL CS 5/3-1) and may be amended only by the Illinois legislature. The City accounts for the Plan as a pension trust fund. The Pension Board administers the Plan and the Illinois Department of Insurance is the oversight agency. The Board consists of five elected or appointed members. B. Plan Membership At May 1, 2020, the date of the latest actuarial valuation, Plan participation consisted of: Retirees and beneficiaries receiving benefits 32 Terminated plan members entitled to but not yet receiving benefits 8 Active plan members 47 Total 87 C. Benefits Provided The Plan provides retirement, disability, and death benefits to Plan members and their beneficiaries. Chapter 40-Pensions-Act 5/Article 3 of the Illinois Compiled Statutes assigns the authority to establish and amend the benefit provisions of the Plan to the Illinois legislature. D. Contributions Employees are required by Illinois Compiled Statutes (ILCS) to contribute 9.91% of their base salary to the Plan. If an employee leaves covered employment with less than 20 years of service, accumulated employee contributions may be refunded without accumulated interest. The City is required to contribute the remaining amounts necessary to finance the plan and the administrative costs as actuarially determined by an enrolled actuary. Effective January 1, 2011, the City has until the year 2040 to fund 90% of the past service cost for the Plan. For the year ended April 30, 2021 the City’s contribution was 557.96% of covered payroll. 96 NOTES TO FINANCIAL STATEMENTS (Continued) Page 40 E. Investment Policy ILCS limit the Plan’s investments to those allowable by ILCS and require the Plan’s Board of Trustees to adopt an investment policy which can be amended by a majority vote of the Board of Trustees. The Plan’s investment policy authorizes the Plan to make deposits/invest in insured commercial banks, savings and loan institutions, obligations of the U.S. Treasury and U.S. agencies, insured credit union shares, money market mutual funds with portfolios of securities issued or guaranteed by the United States or agreements to repurchase these same obligations, repurchase agreements, short-term commercial paper rated within the three highest classifications by at least two standard rating services, investment grade corporate bonds and Illinois Funds. The Plan may also invest in certain non-U.S. obligations, Illinois municipal corporations tax anticipation warrants, veteran’s loans, obligations of the State of Illinois and its political subdivisions, Illinois insurance company general and separate accounts, mutual funds and corporate equity securities. The Plan’s investment policy in accordance with ILCS establishes the following target allocation across asset classes: Long-Term Expected Asset Class Target Real Rate of Return Fixed Income 33% 1.46% Domestic Equities 30% 7.17% International Equities 13% 0.21% Real Estate Equities 7% 7.78% Blended Equities 15% 6.96% ILCS limits the Plan’s investments in equities to 65% of total assets of the fund. Securities in any one company should not exceed 5% of the total fund. The blended asset class is comprised of all other asset classes to allow for rebalancing the portfolio. The Estimated Annual Inflation Rate (CPI) assumption used is 2.25%. The long-term expected rate of return on the Plan’s investments was determined using an asset allocation study conducted by the Plan’s investment management firm in December of 2014 in which best estimate ranges of expected future real rates of return (net of pension plan investment expense and inflation) were developed for each major asset class. These ranges were combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates or arithmetic real rates of return excluding inflation for each major asset class included in the Plan’s target asset allocation as of April 30, 2021 are listed in the table above. F. Investment Valuations All Investments in the Plan are stated at fair value and are recorded as of the trade date. Fair value is based on quoted market prices at April 30, 2021 for debt securities, equity securities, and mutual funds. G. Investment Concentrations There are no significant investments (other than U.S. Government guaranteed obligations) in any one organization that represent 5.0% or more of the Plan’s investments. H. Investment Rate of Return For the year ended April 30, 2021, the annual money-weighted rate of return on pension plan investments, net of pension plan investment expense, was 32.11%. The money-weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts actually invested. 97 NOTES TO FINANCIAL STATEMENTS (Continued) Page 41 I. Deposits with Financial Institutions Custodial credit risk for deposits with financial institutions is the risk that in the event of a bank’s failure, the Plan’s deposits may not be returned to it. The Plan’s investment policy requires all bank balances to be covered by federal depository insurance. J. Interest Rate Risk The following table presents the investments and maturities of the Plan’s debt securities as of April 30, 2021: Investments Fair Value Less Than 1 1-5 5-10 More Than 10 External Investment Pools 1,710,621$ 1,710,621$ -$ -$ -$ Foreign Issues 7,285,143 5,076,973 2,208,170 - - US Treasury 539,851 - - - 539,851 Municipal Bonds 962,119 - 501,781 363,358 96,980 Corporate Bonds 8,530,441 3,867,223 4,056,307 606,911 - Preferred Stocks 54,853 54,853 - - - Mutual Funds 38,851,603 38,851,603 - - - Total 57,934,631$ 49,561,273$ 6,766,258$ 970,269$ 636,831$ Investment Maturities (in Years) In accordance with its investment policy, the Plan limits its exposure to interest rate risk by structuring the portfolio to provide liquidity for operating funds and maximizing yields for funds not needed for expected current cash flows. The investment policy does not limit the maximum maturity length of investments in the Plan. K. Credit Risk The Plan limits its exposure to credit risk, the risk that the issuer of a debt security will not pay its par value upon maturity, by primarily investing in obligations guaranteed by the United States Government, securities issued by agencies of the United States Government that are explicitly or implicitly guaranteed by the United States Government, and investment grade corporate bonds rated by at least one of the two largest rating services at the time of purchase. If subsequently downgraded below investment grade, the bonds must be liquidated by the manager from the portfolio within 90 days after being downgraded. However, certain fixed income securities are not rated. As of April 30, 2021, the Plan’s investments were rated as follows: Investments Credit Rating Rating Source External Investment Pools AAAm Standard and Poor's US Treasury Bond Not Rated Municipal Bonds Baa3-Aa1 Moody's Corporate Bonds BBB - AAA Standard and Poor's Foreign Issues BBB+ - AA- Standard and Poor's Preferred Stock A- Standard and Poor's Mutual Funds Not Rated L. Net Pension (Asset)/Liability The components of the net pension liability of the Plan as of April 30, 2021, calculated in accordance with GASB Statement No. 68, were as follows: Total Pension Liability 56,351,734$ Plan Fiduciary Net Position 61,718,205 City's Net Pension (Asset)/Liability (5,366,471) Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 109.52% 98 NOTES TO FINANCIAL STATEMENTS (Continued) Page 42 See the Schedule of Changes in the Employer’s Net Pension Liability and Related Ratios in the Required Supplementary Information for additional information related to the funded status of the Plan. M. Actuarial Assumptions The total pension liability above was determined by an actuarial valuation performed as of April 30, 2021 using the following actuarial methods and assumptions: Actuarial Valuation Date May 1, 2020 Actuarial Cost Method Entry Age Normal (Level %) Assumptions Inflation 2.25% Salary Increases 4.00% - 10.02% Investment Rate of Return 7.00% Asset Valuation Method Market Value Mortality rates were based on the PubS-2010(A). The other non-economic actuarial assumptions used in the May 1, 2021 valuation were based on a review of assumptions in the L&A 2020 study for Illinois Police Officers. Active Mortality follows the Sex Distinct Raw Rates as developed in the PubS-2010(A) Study. Mortality improvement uses MP-2019 Improvement Rates applied on a fully generational basis. 50% of active Member deaths are assumed to be in the Line of Duty. Retiree Mortality follows the L&A Assumption Study for Police 2020. These rates are experience weighted with the Sex District Raw Rates as developed in the PubS-2010(A) Study improved to 2017 using MP- 2019 Improvement Rates. These rates are then improved fully generationally using MP-2019 Improvement Rates. Disabled Mortality follows the Sex Distinct Raw Rates as developed in the PubS-2019 Study for disabled participants. Mortality improvement uses MP-2019 Improvement Rates applied on a fully generational basis. Spouse Mortality follows the Sex Distinct Raw Rates as developed in the PubS-2010(A) Study for contingent survivors. For all rates not provided there (ages 45 and younger) the PubG-2010 Study for general employees was used. Mortality improvement uses MP-2019 Improvement Rates applied on a fully generational basis. Other actuarial assumption (demographic) rates are based on a review of the L&A Assumption Study for Police 2020. N. Discount Rate The discount rate used to measure the total pension liability was 7%. The discount rate used in the determination of the Total Pension Liability is based on a combination of the expected long-term rate of return on plan investments and the municipal bond rate. Cash flow projections were used to determine the extent which the plan’s future net position will be able to cover future benefit payments. To the extent future benefit payments are covered by the plan’s projected net position, the expected rate of return on plan investments is used to determine the portion of the net pension liability associated with those payments. To the extent future benefit payments are not covered by the plan’s projected net position, the municipal bond rate is used to determine the portion of the net pension liability associated with those payments. 99 NOTES TO FINANCIAL STATEMENTS (Continued) Page 43 O. Changes in the Net Pension Liability Total Pension Plan Fiduciary Net Pension Liability Net Position Liability (A)(B)(A)-(B) Balances at April 30, 2020 54,143,186$ 27,655,974$ 26,487,212$ Changes for the year: Service Cost 1,106,282$ -$ 1,106,282$ Interest on the Total Pension Liability 3,687,359 - 3,687,359 Differences Between Expected and Actual Experience (143,994) - (143,994) Contributions - Employer - 26,150,315 (26,150,315) Contributions - Employee - 469,279 (469,279) Contributions - Other - 435,068 (435,068) Net Investment Income - 9,474,445 (9,474,445) Benefit Payments, including Refunds of Employee Contributions (2,441,099) (2,441,099) - Administrative Expense - (25,777) 25,777 Net Changes 2,208,548$ 34,062,231$ (31,853,683)$ Balances at April 30, 2021 56,351,734$ 61,718,205$ (5,366,471)$ P. Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following presents the plan’s net pension liability, calculated using a Single Discount Rate of 7.00%, as well as what the plan’s net pension liability would be if it were calculated using a single Discount Rate that is 1% lower or 1% higher: Current 1% Decrease Discount Rate 1% Increase 6.00% 7.00% 8.00% Net Pension Liability/(Asset) 3,592,134$ (5,366,471)$ (12,570,358)$ Q. Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions For the year ended April 30, 2021, the City recognized pension expense of $368,276. At April 30, 2021, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Outflows of Inflows of Net Outflows Expense in Future Periods Resources Resources of Resources Differences between expected and actual experience 840,411$ 690,781$ 149,630$ Assumption changes 800,794 535,524 265,270 Net difference between projected and actual earnings on pension investments - 4,337,426 (4,337,426) Total deferred amounts to be recognized in pension expense in future periods 1,641,205$ 5,563,731$ (3,922,526)$ Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Net Deferred Year Ending Outflows of April 30 Resources 2022 (1,129,566)$ 2023 (1,005,701) 2024 (1,072,228) 2025 (1,315,337) 2026 227,907 Thereafter 372,399 (3,922,526)$ 100 NOTES TO FINANCIAL STATEMENTS (Continued) Page 44 NOTE 13 - POST EMPLOYMENT BENEFIT COMMITMENTS A. Retiree Insurance Plan Plan Overview In addition to the retirement plans described in Notes 11 and 12, the City provides post-employment benefits other than pensions (“OPEB”) to employees who meet certain criteria. The Plan, a single- employer defined benefit plan, provides the following coverage: Medical Coverage Employees may continue coverage into retirement on the City medical plans if they pay the entire premium. Coverage is also available for eligible dependents on a pay-all basis. Coverage may continue when Medicare eligibility is reached. Coverage for dependents can continue upon the death of the retiree given that contributions continue. Full-time sworn Police employees that suffer a catastrophic injury or are killed in the line of duty receive free lifetime coverage for the employee, their spouse, and each dependent child under the Public Safety Employee Benefits Act. The Plan does not issue a stand-alone financial report. Eligibility Employees of the City are eligible for retiree health benefits as listed below: IMRF Employees Regular Plan Tier 1 (Enrolled in IMRF Prior to January 1, 2011) - At least 55 years old and at least 8 years of credited service (reduced pension) - At least 60 years old and at least 8 years of credited service (full pension) IMRF Employees (Continued) Regular Plan Tier 2 (Enrolled in IMRF On or After January 1, 2011) - At least 62 years old and at least 10 years of credited service (reduced pension) - At least 67 years old and at least 10 years of credited service (full pension) Police Officers Hired on or Before January 1, 2011 - At least 50 years old and at least 20 years of credited service (full benefit) - At least 60 years old and at least 8 years of credited service (reduced benefit) Hired After January 1, 2011 - At least 55 years old and at least 10 years of credited service (full benefit) - At least 50 years old and at least 10 years of credited service (reduced benefit) Membership in the plan consisted of the following at May 1, 2020, the date of the latest actuarial valuation: Active employees 112 Inactive employees entitled to but not yet receiving benefits - Inactive employees currently receiving benefits 15 Total 127 Contribution The required contribution is based on projected pay-as-you-go financing requirements. Employees are not required to contribute to the plan. Total OPEB Liability The City’s total OPEB liability was measured as of April 30, 2021, and the total OPEB liability was determined by an actuarial valuation as of May 1, . 101 NOTES TO FINANCIAL STATEMENTS (Continued) Page 45 Actuarial Assumptions The total OPEB liability in the May 1, 2020 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified: Actuarial Method Entry Age Normal Discount rate 1.83% Salary Rate Increase 4.00% Expected long-term investment rate of return N/A Health Care Trend Period BCBS HMO BCBS PPO PPO - HRA Period BCBS HMO BCBS PPO PPO - HRA (1) Known rate IY20-IY21 5.10% (1)4.30% (1)4.30% (1)FY21-FY22 5.85% 5.30% 5.30% IY21-IY22 6.00% 5.50% 5.50% FY22-FY23 5.91% 5.44% 5.44% IY22-IY23 5.89% 5.43% 5.43% FY23-FY24 5.80% 5.37% 5.37% IY23-IY24 5.79% 5.36% 5.36% FY24-FY25 5.70% 5.30% 5.30% IY24-IY25 5.68% 5.29% 5.29% FY25-FY26 5.59% 5.23% 5.23% IY25-IY26 5.57% 5.21% 5.21% FY26-FY27 5.48% 5.15% 5.15% IY26-IY27 5.46% 5.14% 5.14% FY27-FY28 5.38% 5.08% 5.08% IY27-IY28 5.36% 5.07% 5.07% FY28-FY29 5.27% 5.01% 5.01% IY28-IY29 5.25% 5.00% 5.00% FY29-FY30 5.16% 4.94% 4.94% IY29-IY30 5.14% 4.93% 4.93% FY30-FY31 5.05% 4.87% 4.87% IY30-IY31 5.04% 4.86% 4.86% FY31-FY32 4.95% 4.80% 4.80% IY31-IY32 4.93% 4.79% 4.79% FY32-FY33 4.84% 4.73% 4.73% IY32-IY33 4.82% 4.71% 4.71% FY33-FY34 4.73% 4.65% 4.65% IY33-IY34 4.71% 4.64% 4.64% FY34-FY35 4.63% 4.58% 4.58% IY34-IY35 4.61% 4.57% 4.57% FY35-FY36 4.52% 4.51% 4.51% IY35-IY36 4.50% 4.50% 4.50% FY36-FY37 4.50% 4.50% 4.50% Subsequent 4.50% 4.50% 4.50% Subsequent 4.50% 4.50% 4.50% Medicare Eligible Insurance Year Trends Medicare Eligible Fiscal Year Trends Retiree Contribution Trend Same as Health Care Trend Mortality Disability Rates IMRF Employees: Rates from the December 31, 2020 IMRF Actuarial Valuation Report IMRF Employees and Retirees: Rates from the December 31, 2020 IMRF Actuarial Valuation Report Active Employees: PubG.H-2010(B) Mortality Table - General (below median income) with future mortality improvements using Scale MP-2020 Retirees: PubG.H-2010(B) Mortality Table - General (below-median income). Male adjusted 106% and Female adjusted 105% tables, with future mortality improvements using scale MP-2020 Police Employees and Retirees: PubS.H-2010 Mortality Table - Safety with future mortality improvements using Scale MP-2020. Police Employees: Rates from the City of McHenry Police Pension Fund Actuarial Valuation for the Year Beginning May 1, 2020 Starting Per Capita Costs Age Retiree Spouse 50 10,450$ 11,783$ 52 11,303 12,745 55 12,714 14,336 57 13,751 15,506 60 15,468 17,442 62 16,731 18,866 64 18,096 20,405 65 4,871 4,871 67 5,167 5,167 70 5,619 5,619 75 6,326 6,326 80 6,985 6,985 85+ 7,712 7,712 BCBS HMO 102 NOTES TO FINANCIAL STATEMENTS (Continued) Page 46 Age Retiree Spouse Retiree Spouse 50 13,011$ 14,671$ 10,815$ 12,195$ 52 14,073 15,869 11,698 13,190 55 15,830 17,850 13,158 14,837 57 17,121 19,307 14,232 16,048 60 19,259 21,717 16,009 18,052 62 20,831 23,489 17,315 19,525 64 22,531 25,406 18,728 21,118 Retiree Contributions Retiree Spouse BCBS HMO 8,259$ 9,313$ BCBS PPO 10,283 11,595 PPO-HRA 8,547 9,638 Election at Retirement 10% of active employees are assumed to elect coverage at retirement Marital Status 70% of active employees are assumed to be married and elect spousal coverage upon retirement. Males are assumed to be three years older than females. BCBS PPO PPO-HRA There is no long-term expected rate of return on OPEB plan investments because the City does not have a trust dedicated exclusively to the payment of OPEB benefits. Decrements were changed to those in each of the most recent IMRF and Police Pension Fund valuation reports. Discount Rate The City does not have a dedicated trust to pay retiree healthcare benefits. Per GASB 75, the discount rate should be a yield or index rate for 20-year, tax-exempt general obligation municipal bonds with an average rating of AA/Aa or higher (or equivalent quality on another rating scale). A rate of 1.83% is used, which is the S&P Municipal Bond 20-Year High-Grade Rate Index as of April 30, 2021. Changes in the Total OPEB Liability Total OPEB Plan Fiduciary Net OPEB Liability Net Position Liability (a) (b) (a) - (b) Balances at April 30, 2020 5,900,815$ -$ 5,900,815$ Changes for the year: Service Cost 38,278$ -$ 38,278$ Interest on Total OPEB Liability 165,119 - 165,119 Difference between Expected & Actual Experience (646,028) - (646,028) Assumption Changes 473,547 - 473,547 Benefit Payments (214,301) - (214,301) Net Changes (183,385)$ -$ (183,385)$ Balances at April 30, 2021 5,717,430$ -$ 5,717,430$ Increase/(Decrease) Sensitivity of the Total OPEB Liability to Changes in the Discount Rate The following presents the total OPEB liability of the City, as well as what the City’s total OPEB liability would be if it were calculated using a discount rate that is 1 percentage-point lower or 1 percentage-point higher than the current discount rate: 1% Increase Valuation Rate 1% Decrease 4,548,847$ 5,717,430$ 7,348,388$ Plan's Total OPEB Liability/(Asset) 103 NOTES TO FINANCIAL STATEMENTS (Continued) Page 47 Sensitivity of the Total OPEB Liability to Changes in the Health Care Cost Trend Rates The following presents the total OPEB liability of the City, as well as what the City’s total OPEB liability would be if it were calculated using healthcare cost trend rates that are 1 percentage-point lower or 1 percentage-point higher than the current healthcare cost trend rates: Healthcare Cost 1% Increase Valuation Rate 1% Decrease 7,312,282$ 5,717,430$ 4,543,820$ Plan's Total OPEB Liability/(Asset) OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB For the fiscal year ended April 30, 2021, the City recognized OPEB expense of $175,298. At April 30, 2021, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: Deferred Outflows Deferred Inflows of Net Inflows of Resources Resources of Resources Differences Between Expected and Actual Experience -$ 1,308,834$ (1,308,834)$ Changes of Assumptions 1,952,938 810,051 1,142,887 Total 1,952,938$ 2,118,885$ (165,947)$ Changes in total OPEB liability related to the difference in actual and expected experience, or changes in assumptions regarding future events, are recognized in OPEB expense over the expected remaining service life of all employees (9.6 years, active and retired) in the postretirement plan. Amounts reported as deferred outflows of resources related to OPEB will be recognized as future OPEB expense as follows: Year ending April 30 Net Inflows of Resources 2022 (28,099)$ 2023 (28,099) 2024 (28,099) 2025 (28,099) 2026 (28,099) 2027-2030 (25,452) (165,947)$ B. Social Security All employees are covered under Social Security. The City paid the total required contribution for the current fiscal year. NOTE 14 - INTERFUND BALANCES AND TRANSFERS Interfund balances at April 30, 2021 consisted of the following: Due From Due To Amount General Fund Water and Sewer Fund 146,869$ General Fund Police Pension Fund 418 104 NOTES TO FINANCIAL STATEMENTS (Continued) Page 48 The above interfund balances resulted from a time lag between the dates that (1) revenue was collected and remitted to the appropriate funds and (2) expenditures were incurred and reimbursed between funds. Interfund transfers for the year ended April 30, 2021 consisted of the following: Transfer From Transfer To Amount Water and Sewer Fund Nonmajor Governmental Funds 93,780$ General Fund Nonmajor Governmental Funds 327,127 Transfers are used to (1) move revenues from the fund that is required to collect them to the fund that is required to expend them, and (2) move receipts restricted to debt service from the funds collecting the receipts to the Debt Service Fund as debt service payments become due. NOTE 15 - RISK MANAGEMENT The City is exposed to various risks related to torts; theft of, damage to, and destruction of assets; errors and omissions; and injuries to employees. The City is a member of the McHenry County Municipal Risk Management Agency (MCMRMA), a public entity risk pool through which property, general liability, automobile liability, crime, excess property, excess liability, and boiler and machinery coverage is provided in excess of specified limits for the members, acting as a single insurable unit. The relationship between the City and MCMRMA is governed by a contract and by-laws that have been adopted by resolution of each unit’s governing body. The City is contractually obligated to make all annual and supplementary contributions for MCMRMA, to report claims on a timely basis, cooperate with MCMRMA, its claims administrator and attorneys in claims investigation and settlement, and to follow risk management procedures as outlined by MCMRMA. Members have a contractual obligation to fund any deficit of MCMRMA attributable to a membership year during which they were a member. MCMRMA is responsible for administering the self-insurance program and purchasing excess insurance according to the direction of the Board of Directors. MCMRMA also provides its members with risk management services, including the defense of and settlement of claims, and establishes reasonable and necessary loss of reduction and prevention procedures to be followed by the members. During fiscal year 2021 there was no significant reduction in insurance coverage for any category. There have been no settlement amounts that have exceeded insurance coverage. The City is insured under a retrospectively-rated policy for workers’ compensation coverage. Whereas the initial premium may be adjusted based on actual experience. Adjustments in premiums are recorded when paid or received. During the year ended April 30, 2021, there were no significant adjustments in premiums based on actual experience. NOTE 16 - CONSTRUCTION COMMITMENTS At any point in time the City is involved in numerous construction contracts. For the governmental activities, there were contract commitments in place for various road projects as well as streetscape planning services as of April 30, 2021 totaling $394,131. Beginning in May 2021 the City has a contract commitment in place for various road projects for $1,635,065. For the Water and Sewer Fund as of April 30, 2021, there were contract commitments in place for demolition at the Central Wastewater Treatment Plant totaling $255,408. NOTE 17 - CONTINGENCIES There is no outstanding litigation which may have a materially adverse effect on the City’s financial position. 105 NOTES TO FINANCIAL STATEMENTS (Continued) Page 49 NOTE 18 - LEGAL DEBT LIMITATION The Illinois Compiled Statutes limits the amount of indebtedness to 8.625% of the most recent available equalized assessed valuation (EAV) of the City. 2020 EAV 743,912,520$ X 8.625% Debt Margin 64,162,455$ Current Debt 34,281,882 Remaining Debt Margin 29,880,573$ NOTE 19 - TAX ABATEMENT AGREEMENTS The City negotiates property and sales tax abatement agreements on an individual basis. All abatement agreements are entered into under the authority of the Mayor, City Clerk, and City Council. The City has tax abatement agreements with various entities as of April 30, 2021 as follows: Name of Eligibility Criteria Amount of Taxes Abatement Type of Taxes and Mechanism Abated During Agreement Abated of Abatement the Fiscal Year Gary Lang Business District Development Agreement Sales taxes First $450,000 in sales tax revenues generated within the Business District Property are retained by the City, 100% of the sales tax revenue generated within the Business District Property between $450,000 and $750,000 annually shall be rebated to Gary Lang, 60% of sales tax revenue generated within the Business District Property above $750,000 shall be rebated to Gary Lang. The total rebate for the year cannot exceed 55% of the total annual sales tax revenue generated with the Business District Property. The total rebate payments cannot exceed $8,441,377.04 or 20 years. 549,957$ 1110 N Green LLC Redevelopment Agreement TIF property taxes Rebate 100% of the TIF Increment assessed up to $624,028.-$ McHenry Commons Shopping Center Economic Incentive Agreement Sales taxes Rebate 100% of base sales tax received by the State attributable to the gross sales generated at the Hobby Lobby Store. The total rebate payments cannot exceed $677,500 or 20 years. 35,340$ CVS Pharmacy Economic Incentive Agreement Sales taxes Rebate 50% of sales tax revenues generated by CVS Pharmacy in calendar years 2016 through 2020 and 25% of sales tax revenues generated by CVS Pharmacy in calendar years 2021 through 2025. The total rebate payments cannot exceed $175,000. 23,498$ Tea Olive, I LLC Sales taxes Rebate 100% of base sales tax received by the State attributable to the gross sales generated at the Big R Store. The total rebate payments cannot exceed $400,000 and end December 31, 2020. 29,973$ 3017 Route 120 & Northwest Suburban Auto Group Economic Incentive Agreement Sales taxes Rebate 50% of base sales tax in calendar years 2017 through 2021 and 25% of base sales tax in calendar years 2022 through 2026 received by the State attributable to the gross sales generated at Northwest Suburban Auto Group. The total rebate payments cannot exceed $150,000. 35,988$ 106 NOTES TO FINANCIAL STATEMENTS (Continued) Page 50 Name of Eligibility Criteria Amount of Taxes Abatement Type of Taxes and Mechanism Abated During Agreement Abated of Abatement the Fiscal Year McHenry Donuts, Inc. Economic Incentive Agreement Sales taxes Rebate 100% of Non-Home Rule Sales taxes in 2017 through 2026 up to $62,500.12,100$ Sunnyside Auto Finance Company Economic Incentive Agreement Sales taxes Rebate percentage during years 2017-2019 75% above $66,212. Years 2020-2027 50% above $66,212. Years 2028-2036 25% above $66,212. Not to exceed $300,000. 26,506$ Curt Ames DBA Chain O'Lakes Brewing Company Redevelopment Agreement TIF Property Taxes Rebate 100% of the TIF Increment assessed up to $17,585.-$ Seth Wagner and Associates Real Estate Company Property Tax Abatement Agreement Property Taxes Abate real estate taxes levied against the subject property each year that the taxing body's property taxes exceed the dollar amount from the 2014 base property tax year ($3,458.64) through December 31, 2026. 5,369$ Boone Creek Crossing LLC Redevelopment Agreement TIF Property Taxes Rebate 100% of the TIF Increment assessed up to $25,000 10,237$ Graham Enterprise Inc Economic Incentive Agreement Sales taxes Rebate 50% of base and home rule sales tax received above $1,666.67 per month by the State attributable to the gross sales generated at McHenry BP sites at 5301 Bull Valley Road and 5520 W. Elm Street. The total rebate payments cannot exceed $1,000,000 and end December 31,2039. These rebates do not begin until buildings are torn down at 5301 Bull Valley Road, 5520 W. Elm St, and 4410 W. Elm St; and a new building is built at 5301 Bully Valley Road. 59,975$ BPI, Break Parts Inc LLC Property Tax Abatement Agreement Property Taxes 10-year 100% abatement over and above the 2018 taxes commencing with the 2019 tax bill payable in 2020 through the 2028 tax bill payable in 2029. 12,384$ RR McHenry LLC Economic Incentive Agreement Sales taxes Rebate 50% of base and home rule sales tax received by the State attributable to the property at the NW corner of IL Route 120 and Chapel Hill Road, excluding the Riverside Chocolate Factory parcel. The total rebate payments cannot exceed $1,000,000 and end after the 20th Sales Tax Incentive Year. -$ NOTE 20 - SUBSEQUENT EVENTS Since March 2020, the COVID-19 outbreak in the United States has created disruptions in various governments and has continued to impact these organizations. The City was not significantly impacted during the year ended April 30, 2021. However, the extent of any additional impact on the City is uncertain and cannot be reasonably estimated at this time. Through the American Rescue Plan Act, the City was eligible and have begun to receive monies in fiscal year 2022. The total max amount to be received is $3,678,786 from the Coronavirus Local Fiscal Recovery Fund allotment. The City plans to use these funds for water line relocation over multiple future years. 107 NOTES TO FINANCIAL STATEMENTS (Continued) Page 51 In addition to this, on December 18, 2019, Governor JB Pritzker signed SB1300. The law, a Public Act (P.A.), 101-0610, represents the culmination of more than a decade of work by the Illinois Municipal League (IML). The law consolidates the assets of the state’s more than 650 downstate and suburban public safety pension funds into two consolidated investment funds, one for police officers (Article 3) and one for firefighters (Article 4), which will improve investment returns, eliminate unnecessary and redundant administrative costs, ensure more money is available to fund pension benefits, and reduce the burden on local taxpayers. The law was effective as of January 1, 2020. All pension fund assets, currently reported within the fiduciary fund statements of the Plan, will be transferred to Firefighter’s pension investment fund no later than 30 months after the effective date of the transitions. This is may change the reporting of the Fund as a fiduciary fund in future reporting periods. NOTE 21 - CHANGE IN ACCOUNTING PRINCIPLE The City has implemented GASB Statement No. 84, Fiduciary Activities. This Statement establishes financial reporting standards related to fiduciary activities of the City. Implementation of this standard resulted in no change to the City. 108 REQUIRED SUPPLEMENTARY INFORMATION 109 4/30/2021* 4/30/2020* 4/30/2019* 4/30/2018* 4/30/2017*TOTAL PENSION LIABILITYService Cost805,614$ 781,612$ 740,595$ 707,796$ 704,466$ Interest on Total Pension Liability2,967,915 2,796,732 2,641,076 2,542,116 2,419,748 Differences Between Expected and Actual Experience680,117 594,214 381,201 646,124 (98,080) Changes of Assumptions (475,311) - 1,199,530 (1,124,675) (136,959) Benefit Payments, Including Refunds of Member Contributions(1,946,703) (1,700,114) (1,543,189) (1,393,390) (1,384,293) Net Change in Total Pension Liability2,031,632$ 2,472,444$ 3,419,213$ 1,377,971$ 1,504,882$ Total Pension Liability - Beginning41,507,305 39,034,861 35,615,648 34,237,677 32,732,795 Total Pension Liability - Ending43,538,937$ 41,507,305$ 39,034,861$ 35,615,648$ 34,237,677$ PLAN FIDUCIARY NET POSITIONContributions - Employer1,137,523$ 787,631$ 918,212$ 915,963$ 844,878$ Contributions - Member361,437 344,894 340,841 328,547 366,710 Net Investment Income5,164,342 5,817,683 (1,672,533) 4,871,136 1,840,322 Benefit Payments, Including Refunds of Member Contributions(1,946,703) (1,700,114) (1,543,189) (1,393,390) (1,384,293) Administrative Expenses131,829 196,150 493,832 (352,231) 293,436 Net Change in Plan Fiduciary Net Position4,848,428$ 5,446,244$ (1,462,837)$ 4,370,025$ 1,961,053$ Plan Net Position - Beginning36,911,378 31,465,134 32,927,971 28,557,946 26,596,893 Plan Net Position - Ending41,759,806$ 36,911,378$ 31,465,134$ 32,927,971$ 28,557,946$ City's Net Pension Liability1,779,131$ 4,595,927$ 7,569,727$ 2,687,677$ 5,679,731$ Plan Fiduciary Net Position as a Percentageof the Total Pension Liability95.91%88.93%80.61%92.45%83.41%Covered-Valuation Payroll8,031,924$ 7,718,418$ 7,538,685$ 7,241,274$ 6,362,027$ Employer's Net Pension Liability as a Percentageof Covered-Valuation Payroll22.15%59.54% 100.41%37.12%89.28%* This information presented is based on the actuarial valuation performed as of the December 31 year end prior to the fiscal year end listed above.This schedule is presented to illustrate the requirement to show information for ten years. However, until a full ten-year trend is compiled, information is presented for thoseinformation is available.CITY OF MCHENRY, ILLINOISILLINOIS MUNICIPAL RETIREMENT FUNDSCHEDULE OF CHANGES IN THE EMPLOYER'S NET PENSIONLIABILITY AND RELATED RATIOS APRIL 30, 2021Page 52See Accompanying Independent Auditor's Report110 4/30/2021* 4/30/2020* 4/30/2019* 4/30/2018* 4/30/2017* 4/30/2016*Actuarially-Determined Contribution 983,107$ 796,541$ 918,212$ 908,056$ 844,877$ 801,851$ Contributions in Relation to Actuarially-Determined Contribution 1,137,523 787,631 918,212 915,963 844,878 801,851 Contribution Deficiency/(Excess) (154,416)$ 8,910$ -$ (7,907)$ (1)$ -$ Covered Payroll 7,135,984$ 7,780,883$ 7,594,095$ 7,469,026$ 6,362,027$ 6,163,340$ Contributions as a Percentage of Covered Payroll 15.94% 10.12% 12.09% 12.26% 13.28% 13.01%Notes to Schedule:Actuarially determined contribution rates are calculated as of December 31 each year, which are 12 months prior to the beginning of the fiscal year in which contributions are reported. Remaining Amortization Period: 23-year closed periodPrice Inflation: 2.50%, approximate; No explicit price inflation assumption is used in this valuation.Retirement Age: Experience-based table of rates that are specific to the type of eligibility condition; last updated for the 2017 valuation pursuant to an experience study of the period 2014 to 2016.Actuarial Cost Method: Aggregate entry age = normalAmortization Method: Level percentage of payroll, closedAsset Valuation Method: 5-year smoothed market; 20% corridorWage Growth: 3.25%CITY OF MCHENRY, ILLINOISILLINOIS MUNICIPAL RETIREMENT FUNDSCHEDULE OF EMPLOYER CONTRIBUTIONLAST TEN FISCAL YEARSActuarial Method and Assumptions Used on the Calculation of the 2020 Contribution Rate *Salary Increases: 3.35% to 14.25%, including inflationInvestment Rate of Return: 7.25%Mortality: For non-disabled retirees, an IMRF specific mortality table was used with fully generational projection scale MP-2014 (base year 2012). The IMRF specific rates were developed from the RP-2014Blue Collar Health Annuitant Mortality Table with adjustments to match current IMRF experience. For disabled retirees, an IMRF specific mortality table was used with fully generational projection scale MP-2014 (base year 2012). The IMRF specific rates were developed from the RP-2014 Disabled Retirees Mortality Table applying the same adjustments that were applied for non-disabled lives. For activemembers, an IMRF specific mortality table was used with fully generational projection scale MP-2014 (base year 2012). The IMRF specific rates were developed from the RP-2014 Employee Mortality Tablewith adjustments to match current IMRF experience.*Based on Valuation Assumptions used in the December 31, 2018 actuarial valuation; note two year lag between valuation and rate setting.Thisschedule is presented to illustrate the requirement to show information for ten years. However, until a full ten-year trend is compiled, informationis presented for those years for which informationis available.Page 53See Accompanying Independent Auditor's Report111 4/30/2021 4/30/2020 4/30/2019 4/30/2018 4/30/2017 4/30/2016TOTAL PENSION LIABILITYService Cost 1,106,282$ 1,020,016$ 964,573$ 969,843$ 906,395$ 948,282$ Interest3,687,359 3,400,174 3,244,523 3,100,186 3,130,927 2,940,204 Changes in Benefit Terms - 267,927 - - - - Differences Between Expected and Actual Experience (143,994) 953,997 165,685 (13,601) (1,315,850) (531,862) Changes in Assumptions - 1,039,838 - - (1,259,209) 4,137,023 Benefit Payments, Including Refunds of Member Contributions (2,441,099) (2,225,355) (2,077,032) (1,911,914) (1,890,931) (2,046,745) Net Change in Total Pension Liability 2,208,548$ 4,456,597$ 2,297,749$ 2,144,514$ (428,668)$ 5,446,902$ Total Pension Liability - Beginning54,143,186 49,686,589 47,388,840 45,244,326 45,672,994 40,226,092 Total Pension Liability - Ending56,351,734$ 54,143,186$ 49,686,589$ 47,388,840$ 45,244,326$ 45,672,994$ PLAN FIDUCIARY NET POSITIONContributions - Employer26,150,315$ 2,077,704$ 2,017,300$ 1,868,798$ 1,521,914$ 1,386,205$ Contributions - Member469,279 500,202 427,378 409,415 397,515 513,111 Contributions - Other435,068 - 1,221 - - - Net Investment Income9,474,445 249,889 1,454,043 2,225,784 2,041,694 (228,847) Benefit Payments, Including Refunds of Member Contributions(2,441,099) (2,225,355) (2,077,032) (1,911,914) (1,890,931) (2,046,745) Administrative Expenses(25,668) (100,204) (17,813) (18,717) (41,164) (29,539) Net Change in Plan Fiduciary Net Position34,062,340$ 502,236$ 1,805,097$ 2,573,366$ 2,029,028$ (405,815)$ Plan Net Position - Beginning27,655,865 27,153,629 25,348,532 22,775,166 20,746,138 21,151,953 Plan Net Position - Ending61,718,205$ 27,655,865$ 27,153,629$ 25,348,532$ 22,775,166$ 20,746,138$ City's Net Pension Liability(5,366,471)$ 26,487,321$ 22,532,960$ 22,040,308$ 22,469,160$ 24,926,856$ Plan Fiduciary Net Position as a Percentageof the Total Pension Liability109.52%51.08%54.65%53.49%50.34%45.42%Covered-Employee Payroll4,686,805$ 4,444,767$ 4,224,124$ 4,204,784$ 4,082,315$ 3,880,748$ Employer's Net Pension Liability as a Percentageof Covered-Employee Payroll-114.50% 595.92% 533.44% 524.17% 550.40% 642.32%202120202019201820172016Annual Money-Weighted Rate of Return,Net of Investment Expenses32.11%-0.48%5.73%9.60%5.60%-1.53%This schedule is presented to illustrate the requirement to show information for ten years. However, until a full ten-year trend is compiled, information is presented for those years for whicavailable.CITY OF MCHENRY, ILLINOISPOLICE PENSION PLANSCHEDULE OF CHANGES IN THE EMPLOYER'S NET PENSIONLIABILITY AND RELATED RATIOS APRIL 30, 2021Page 54See Accompanying Independent Auditor's Report112 4/30/2021 4/30/2020 4/30/2019 4/30/2018 4/30/2017 4/30/2016 4/30/2015Actuarially-Determined Contribution2,231,742$ 2,082,421$ 2,019,703$ 1,874,219$ 1,524,244$ 1,387,374$ 1,295,577$ Contributions in Relation to Actuarially-Determined Contribution26,150,315 2,077,704 2,017,300 1,868,798 1,521,914 1,386,205 1,295,101 Contribution Deficiency/(Excess)(23,918,573)$ 4,717$ 2,403$ 5,421$ 2,330$ 1,169$ 476$ Covered-Employee Payroll4,686,805$ 4,422,539$ 4,324,167$ 4,291,809$ 4,082,315$ 3,880,748$ 3,791,467$ Contributions as a Percentage of Covered-Employee Payroll 557.96%46.98%46.65%43.54%37.28%35.72%34.16%Notes to Schedule:Salary Increases: 4.00% to 10.27%, including inflationThis schedule is presented to illustrate the requirement to show information for ten years. However, until a full ten-year trend is compiled, information is presented for those years for which information is available.Actuarial Method and Assumptions Used on the Calculation of the 2020 Contribution Rate *Actuarial Cost Method: Aggregate entry age = normalAmortization Method: Level percentage of payroll, closedTermination Rates: 100% of L&A 2016 Illinois Police Termination RatesDisability Rates: 100% of L&A 2016 Illinois Police Disability Rates*Based on Valuation Assumptions used in the May 1, 2019 actuarial valuationInvestment Rate of Return: 7.00%Retirement Age: 100% of L&A 2016 Illinois Police Retirement Rates Capped at Age 65Remaining Amortization Period: 21-year closed periodAsset Valuation Method: 5-year smoothed market; 20% corridorWage Growth: 3.00%Price Inflation: 2.50%, approximate; No explicit price inflation assumption is used in this valuation.CITY OF MCHENRY, ILLINOISPOLICE PENSION PLANSCHEDULE OF EMPLOYER CONTRIBUTIONLAST TEN FISCAL YEARSThis schedule is presented to illustrate the requirement to show information for ten years. However, until a full ten-year trend is compiled, information is presented for those years for which information isavailable.Page 55See Accompanying Independent Auditor's Report113 4/30/2021 4/30/2020 4/30/2019 TOTAL OPEB LIABILITY Service Cost 38,278$ 36,378$ 32,964$ Interest 165,119 171,790 209,775 Differences Between Expected and Actual Experience - - (1,070,724) Benefit Payments (214,301) (162,019) (167,232) Changes in Assumptions 473,546 513,575 417,482 Other Changes (646,027) (91,626) 147,912 Net Change in Total OPEB Liability (183,385)$ 468,098$ (429,823)$ Total OPEB Liability - Beginning 5,900,815 5,432,717 5,862,540 Total OPEB Liability - Ending 5,717,430$ 5,900,815$ 5,432,717$ Covered-Employee Payroll 9,342,565$ 8,796,233$ * 8,796,233$ Employer's Net OPEB Liability as a Percentage of Covered-Valuation Payroll 61.20% 67.08% 61.76% Notes to Schedule: The following are the discount rates used in each period:1.83%3.21%3.21% No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75. This schedule is presented to illustrate the requirement to show information for ten years. However, until a full ten-year trend is compiled, information is presented for those years for which information is available. Changes of Assumptions.Changes of assumptions and other inputs reflect the effects of changes in the discount rate of each period. There is no actuarially-determined contribution (ADC) or employer contribution in relation to the ADC as the total OPEB liabilities are currently an unfunded obligation. * - Covered-Employee Payroll is the same as the prior year due to the valuation being a rollforward instead of a new valuation. CITY OF MCHENRY OTHER POST-EMPLOYMENT BENEFIT SCHEDULE OF CHANGES IN THE EMPLOYER'S TOTAL OPEB LIABILITY AND RELATED RATIOS APRIL 30, 2021 Page 56 See Accompanying Independent Auditor's Report 114 Actual Original Final Amounts REVENUES Local Taxes Property Tax 4,950,359$ 4,950,359$ 4,940,218$ Intergovernmental State Sales Tax 11,057,997 11,057,997 11,727,968 State Income Tax 2,834,160 2,834,160 3,276,353 State Replacement Tax 65,000 65,000 78,561 State Pull Tab/Games Tax 1,000 1,000 893 Inter Track Wagering Tax 40,000 40,000 16,080 State Telecommunications Tax 280,000 280,000 244,938 Cannabis Use Tax - - 23,883 Federal Grants - - 1,354,713 Other Local Sources Hotel/Motel Tax 173,000 173,000 81,358 Franchise Fees 340,000 340,000 360,325 Licenses and Permits 820,000 820,000 957,091 Fines and Forfeitures 495,000 495,000 370,906 Charges for Services 1,316,789 1,316,789 1,025,406 Interest 147,250 147,250 16,097 Local Grants - - 31,239 Miscellaneous Rent 18,000 18,000 18,694 Royalties 175,000 175,000 175,000 Donations - - 750 Annexation Fees 150,000 150,000 249,361 Reimbursements 2,205,773 2,205,773 2,347,323 Other Miscellaneous 83,200 83,200 2,367 Total Revenues 25,152,528$ 25,152,528$ 27,299,524$ EXPENDITURES Current General Office Administration 1,143,014$ 1,202,169$ 1,475,753$ Elected Officials 94,226 94,226 84,839 Community Development 988,849 988,849 959,169 Finance Department 1,365,772 1,365,772 1,327,818 Human Resources 262,174 262,174 245,127 Economic Development 299,742 299,742 287,321 4,153,777$ 4,212,932$ 4,380,027$ Public Safety Police Commission 6,953$ 6,953$ 5,855$ Police Department 10,664,875 10,664,875 34,321,116 Dispatch Center 2,597,255 2,597,255 2,593,153 13,269,083$ 13,269,083$ 36,920,124$ Public Works Administration 426,317$ 426,317$ 422,889$ Street Department 3,363,817 3,363,817 2,932,488 3,790,134$ 3,790,134$ 3,355,377$ Parks and Recreation Parks and Recreation 2,564,067$ 2,564,067$ 2,173,581$ 2,564,067$ 2,564,067$ 2,173,581$ Budgeted Amounts CITY OF MCHENRY, ILLINOIS FOR THE YEAR ENDED APRIL 30, 2021 GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL Page 57 See Accompanying Independent Auditor's Report 115 Actual Original Final Amounts Budgeted Amounts CITY OF MCHENRY, ILLINOIS FOR THE YEAR ENDED APRIL 30, 2021 GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL EXPENDITURES (Continued) Capital Outlay General Office Administration 1,296,500$ 1,296,500$ 550,418$ Public Safety Police Department 8,900 8,900 288,482 Public Works Street Department - - 683,353 Parks and Recreation Parks and Recreation - - 221,898 Unallocated 75,000 75,000 - 1,380,400$ 1,380,400$ 1,744,151$ Debt Service Principal 406,000$ 406,000$ 303,553$ Interest and Fees 11,000 11,000 8,235 417,000$ 417,000$ 311,788$ Total Expenditures 25,574,461$ 25,633,616$ 48,885,048$ EXCESS OR (DEFICIENCY) OF REVENUES OVER EXPENDITURES (421,933)$ (481,088)$ (21,585,524)$ OTHER FINANCING SOURCES/(USES) Transfers (327,127)$ (327,127)$ (327,127)$ Proceeds from Loan - - 1,128,524 Proceeds from Bond - - 24,265,000 Sale of City Property 10,000 10,000 28,350 (317,127)$ (317,127)$ 24,759,315$ NET CHANGE IN FUND BALANCE (739,060)$ (798,215)$ 3,173,791$ FUND BALANCE - MAY 1, 2020 8,966,742 FUND BALANCE - APRIL 30, 2021 12,140,533$ Page 58 See Accompanying Independent Auditor's Report 116 Page 59 CITY OF MCHENRY, ILLINOIS NOTES TO REQUIRED SUPPLEMENTARY INFORMATION APRIL 30, 2021 NOTE 1 - BUDGET Budgets are adopted on a basis consistent with generally accepted accounting principles. Annual budgets are adopted for all funds except agency funds. All annual budgets lapse at fiscal year-end. Budgeted expenditures are controlled at the departmental level with the City Administrator’s oversight. All transfers and any revision that changes the total expenditures not contemplated of any fund must be approved by the City Council. All budget amendments must be approved by the City Council. The budget was approved on April 20, 2020 and was amended November 2, 2020 and November 16, 2020. NOTE 2 - EXCESS OF EXPENDITURES OVER BUDGET For the year ended April 30, 2021, the General Fund presented as Required Supplementary Information had expenditures that exceeded budget, as noted in Note 10 to the financial statements. 117 SUPPLEMENTAL FINANCIAL INFORMATION 118 Civil RevolvingTotalGeneral Annexation Alarm Board BandDefenseLoanTourism General FundFundFundFundFundFundFundFundASSETSCash and Cash Equivalents7,157,152$ 876,183$ 876,919$ 23,060$ 8,640$ 146,159$ 116,094$ 9,204,207$ Investments141,147 20,230 - 1,583 - 3,680 16,528 183,168 Prepaid Items35,447 - - - - - - 35,447 Receivables (Net of Allowance forEstimated Uncollectible Amounts)Accounts Receivable - Billed562,380 6,45014,130 - - 163,606 - 746,566 Accounts Receivable - Unbilled114,181 - 36,360 - - - 9,236 159,777 Property Taxes4,865,646 - - - - - - 4,865,646 Accrued Interest177 25 - 2 - 760 21 985 Due from Other Governmental Units3,495,008 - - - - - - 3,495,008 Cable Franchise Fee Receivable124,721 - - - - - - 124,721 TOTAL ASSETS16,495,859$ 902,888$ 927,409$ 24,645$ 8,640$ 314,205$ 141,879$ 18,815,525$ LIABILITIESAccounts Payable and Accrued Expenses936,712$ -$ 57,384$ -$ -$ 13,187$ 12,000$ 1,019,283$ Due to Other Governmental Units- 79,849 - - - - - 79,849 Due to Other Funds147,287- - - - - - 147,287 Unearned Revenue562,927- - - - - - 562,927 TOTAL LIABILITIES1,646,926$ 79,849$ 57,384$ -$ -$ 13,187$ 12,000$ 1,809,346$ DEFERRED INFLOWS OF RESOURCESUnavailable Revenue - Property Taxes4,865,646$ -$ -$ -$ -$ -$ -$ 4,865,646$ TOTAL DEFERRED INFLOWS OF RESOURCES 4,865,646$ -$ -$ -$ -$ -$ -$ 4,865,646$ FUND BALANCESNonspendable35,447$ -$ -$ -$ -$ -$ -$ 35,447$ Assigned for:Alarm- - 870,025 - - - - 870,025 Tourism- - - - - - 129,879 129,879 Band- - - 24,645 - - - 24,645 Capital Projects- 823,039 - - - - - 823,039 Revolving Loan- - - - - 301,018 - 301,018 Civil Defense- - - - 8,640 - - 8,640 Unassigned9,947,840 - - - - - - 9,947,840 TOTAL FUND BALANCES9,983,287$ 823,039$ 870,025$ 24,645$ 8,640$ 301,018$ 129,879$ 12,140,533$ TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES16,495,859$ 902,888$ 927,409$ 24,645$ 8,640$ 314,205$ 141,879$ 18,815,525$ CITY OF MCHENRY, ILLINOISCOMBINING BALANCE SHEET - GENERAL FUND APRIL 30, 2021Page 60See Accompanying Independent Auditor's Report119 Alarm Civil Revolving TotalAnnexation BoardBandDefenseLoan Tourism GeneralGeneral Fund FundFundFundFundFundFundFundREVENUESLocal TaxesProperty Tax4,940,218$ -$ -$ -$ -$ -$ -$ 4,940,218$ IntergovernmentalState Sales Tax11,727,968- - - - - - 11,727,968 State Income Tax3,276,353- - - - - - 3,276,353 State Replacement Tax78,561- - - - - - 78,561 State Pull Tab/Games Tax893- - - - - - 893 Inter Track Wagering Tax16,080- - - - - - 16,080 State Telecommunications Tax244,938- - - - - - 244,938 Cannabis Use Tax23,88323,883 Federal Grants1,354,713 - - - - - - 1,354,713 Other Local SourcesHotel/Motel Tax- - - - - - 81,358 81,358 Franchise Fees360,325- - - - - - 360,325 Licenses and Permits957,091- - - - - - 957,091 Fines and Forfeitures370,906- - - - - - 370,906 Charges for Services806,640- 218,766 - - - - 1,025,406 Interest14,92482 144 5 4 770 168 16,097 Local Grants31,239- - - - - - 31,239 MiscellaneousRent18,694- - - - - - 18,694 Royalties- 175,000 - - - - - 175,000 Donations750- - - - - - 750 Annexation Fees- 249,361 - - - - - 249,361 Reimbursements2,347,323- - - - - - 2,347,323 Other Miscellaneous2,309- - 58 - - - 2,367 Total Revenues26,573,808$ 424,443$ 218,910$ 63$ 4$ 770$ 81,526$ 27,299,524$ EXPENDITURESCurrentGeneral OfficeAdministration1,212,896$ 249,161$ -$ -$ -$ -$ 13,696$ 1,475,753$ Elected Officials84,839- - - - - - 84,839 Community Development959,169- - - - - - 959,169 Finance Department1,327,818- - - - - - 1,327,818 Human Resources245,127- - - - - - 245,127 Economic Development287,321- - - - - - 287,321 4,117,170$ 249,161$ -$ -$ -$ -$ 13,696$ 4,380,027$ Public SafetyPolice Commission5,855$ -$ -$ -$ -$ -$ -$ 5,855$ Police Department34,243,373- 74,543- 3,200 - - 34,321,116 Dispatch Center2,593,153- - - - - - 2,593,153 36,842,381$ -$ 74,543$ -$ 3,200$ -$ -$ 36,920,124$ Public WorksAdministration422,889$ -$ -$ -$ -$ -$ -$ 422,889$ Street Department2,932,488- - - - - - 2,932,488 3,355,377$ -$ -$ -$ -$ -$ -$ 3,355,377$ CITY OF MCHENRY, ILLINOISFUND FINANCIAL STATEMENTSCOMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCESGENERAL FUNDFOR THE YEAR ENDED APRIL 30, 2021Page 61See Accompanying Independent Auditor's Report120 Alarm Civil Revolving TotalAnnexation BoardBandDefenseLoan Tourism GeneralGeneral Fund FundFundFundFundFundFundFundCITY OF MCHENRY, ILLINOISFUND FINANCIAL STATEMENTSCOMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCESGENERAL FUNDFOR THE YEAR ENDED APRIL 30, 2021EXPENDITURES (Continued)Current (Continued)Parks and RecreationParks and Recreation 2,173,581$ -$ -$ -$ -$ -$ -$ 2,173,581$ 2,173,581$ -$ -$ -$ -$ -$ -$ 2,173,581$ Capital OutlayGeneral OfficeAdministration 550,418$ -$ -$ -$ -$ -$ -$ 550,418$ Public SafetyPolice Department 288,482 - - - - - - 288,482 Public WorksStreet Department 683,353 - - - - - - 683,353 Parks and RecreationParks and Recreation 221,898 - - - - - - 221,898 1,744,151$ -$ -$ -$ -$ -$ -$ 1,744,151$ Debt ServicePrincipal 244,568$ -$ -$ -$ -$ -$ 58,985$ 303,553$ Interest and Fees - - - - - - 8,235 8,235 244,568$ -$ -$ -$ -$ -$ 67,220$ 311,788$ Total Expenditures 48,477,228$ 249,161$ 74,543$ -$ 3,200$ -$ 80,916$ 48,885,048$ EXCESS OR (DEFICIENCY) OF REVENUESOVER EXPENDITURES(21,903,420)$ 175,282$ 144,367$ 63$ (3,196)$ 770$ 610$ (21,585,524)$ OTHER FINANCING SOURCES/(USES)Transfers(233,627)$ (35,000)$ -$ 12,000$ 6,000$ 22,500$ (99,000)$ (327,127)$ Loan Proceeds1,128,524 - - - - - - 1,128,524 Bond Proceeds24,265,000 - - - - - - 24,265,000 Bond Issuance Costs(335,432) - - - - - - (335,432) Sale of City Property28,350 - - - - - - 28,350 24,852,815$ (35,000)$ -$ 12,000$ 6,000$ 22,500$ (99,000)$ 24,759,315$ NET CHANGE IN FUND BALANCE2,949,395$ 140,282$ 144,367$ 12,063$ 2,804$ 23,270$ (98,390)$ 3,173,791$ FUND BALANCE - MAY 1, 20207,033,892 682,757 725,658 12,582 5,836 277,748 228,269 8,966,742 FUND BALANCE - APRIL 30, 20219,983,287$ 823,039$ 870,025$ 24,645$ 8,640$ 301,018$ 129,879$ 12,140,533$ Page 62See Accompanying Independent Auditor's Report121 Special SpecialMunicipal Service Service TotalRecreation Capital Capital Debt Motor Motor Developer Area #4 - Area #6 - OtherPageant Audit Center Improvements Equipment Service Fuel Tax Fuel Tax Donations TIFLakewoodHuntersville GovernmentalFundFundFundFundFundFundFundFundFundFundFundFundFundsASSETSCash and Cash Equivalents 1,954$ 4,118$ -$ 207,441$ -$ -$ 2,164,041$ 176,072 1,335,839$ 738,606$ -$ -$ 4,628,071$ Deposit with Paying Agent - - - - - 32,870 - - - - - - 32,870 Investments- 501 377,865 99,994 23,713 16,355 - - 64,009 - 402 - 582,839 Inventory- - - - - - 84,000 - - - - - 84,000 Receivables (Net of Allowance forEstimated Uncollectible Amounts)Accounts Receivable - Billed- - - 6,679 - - - - 5,400 - - - 12,079 Accounts Receivable - Unbilled- - 10,359 - - - - 27,523 - - - - 37,882 Property Taxes- 26,431 - - - - - - - 680,014 16,123 - 722,568 Accrued Interest- 1 473 125 30 20 - - 80 - 1 - 730 Due from Other Governmental Units- - - 8,351 - - 411,144 - 2,702 - - - 422,197 TOTAL ASSETS1,954$ 31,051$ 388,697$ 322,590$ 23,743$ 49,245$ 2,659,185$ 203,595$ 1,408,030$ 1,418,620$ 16,526$ -$ 6,523,236$ LIABILITIESAccounts Payable and Accrued Expenses-$ -$ 21,391$ 1,141$ -$ 830$ 124,714$ -$ 88,675$ 19,191$ -$ -$ 255,942$ Overdrafts- - 130,434 - 23,421 48,639 - - - - 1,043 179,115 382,652 Due to Other Governmental Units- - - - - - - 77,320 - - - 77,320 TOTAL LIABILITIES-$ -$ 151,825$ 1,141$ 23,421$ 49,469$ 124,714$ -$ 165,995$ 19,191$ 1,043$ 179,115$ 715,914$ DEFERRED INFLOWS OF RESOURCESUnavailable Revenue - Property Taxes-$ 26,431$ -$ -$ -$ -$ -$ -$ -$ 680,014$ 16,123$ -$ 722,568$ Unavailable Revenue - State Taxes- - - - - - 107,578 - - - - - 107,578 Unavailable Revenue - Rent- - - - - - - 2,400 - - - 2,400 TOTAL DEFERRED INFLOWS OF RESOURCES-$ 26,431$ -$ -$ -$ -$ 107,578$ -$ 2,400$ 680,014$ 16,123$ -$ 832,546$ FUND BALANCES Nonspendable-$ -$ -$ -$ -$ -$ 84,000$ -$ -$ -$ -$ -$ 84,000$ Restricted for:Capital Projects- - - - - - - - 675,404 - - - 675,404 Tax Increment Financing- - - - - - - - - 755,407 - - 755,407 Highways and Streets- - - - - - 1,473,070 203,595 - - - - 1,676,665 Assigned for:Audit- 4,620 - - - - - - - - - - 4,620 Highways and Streets- - - - - - 869,823 - - - - - 869,823 Capital Projects- - - 321,449 322 - - - 564,231 - - - 886,002 Parks and Recreation1,954 - 236,872 - - - - - - - - - 238,826 Debt Service- - - - - - - - - - - - - Special Service Areas- - - - - - - - - - - - - Unassigned- - - - - (224) - - - (35,992) (640) (179,115) (215,971) TOTAL FUND BALANCES1,954$ 4,620$ 236,872$ 321,449$ 322$ (224)$ 2,426,893$ 203,595$ 1,239,635$ 719,415$ (640)$ (179,115)$ 4,974,776$ TOTAL LIABILITIES, DEFERRED INFLOWSOF RESOURCES, AND FUND BALANCES1,954$ 31,051$ 388,697$ 322,590$ 23,743$ 49,245$ 2,659,185$ 203,595$ 1,408,030$ 1,418,620$ 16,526$ -$ 6,523,236$ CITY OF MCHENRY, ILLINOISCOMBINING BALANCE SHEETOTHER GOVERNMENTAL FUNDS APRIL 30, 2021Page 63See Accompanying Independent Auditor's Report122 Special SpecialMunicipal Service Service TotalRecreation Capital Capital Debt Motor Motor Developer Area #4 - Area #6 - OtherPageant Audit Center Improvements Equipment Service Fuel Tax Fuel Tax Donations TIF Lakewood Huntersville GovernmentalFund Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund FundsREVENUESLocal TaxesProperty Tax -$ 26,299$ -$ -$ -$ -$ -$ -$ -$ 655,428$ 16,123$ -$ 697,850$ IntergovernmentalState Motor Fuel Tax- - - - - - 1,034,926 203,595- - - - 1,238,521 State Grants- - - - - 1,037,679 - - - - - 1,037,679 Federal Grants- - - - - - 70,933- - - - - 70,933 Bond Interest Rebates- - - - - 3,688 - - - - - - 3,688 Other Local SourcesCharges for Services- 13,676 337,721 - - - - - - - - - 351,397 Interest- 3 1,308 1,703 72 60 2,220 - 750 271 - 6,144 Miscellaneous- Rent- - 4,298 - - - - - 38,849 - - - 43,147 Donations- - - - - - - - 320,304 - - - 320,304 Reimbursements- - - 48,772- - - - - 62,860 - - 111,632 Other Miscellaneous100 - 100 - - - - - 38,520- - - 38,720 100$ 39,978$ 343,427$ 50,475$ 72$ 3,748$ 2,145,758$ 203,595$ 398,423$ 718,315$ 16,124$ -$ 3,920,015$ EXPENDITURESCurrentGeneral Office4$ 43,605$ -$ -$ -$ -$ -$ -$ -$ 18,097$ -$ -$ 61,706$ Public Works- - - - - - 140,108 - - - - - 140,108 Parks and Recreation- - 507,937- - - - - 169,639- - - 677,576 Capital Outlay- - - 178,309- - 620,634 - 477,090 37,571 - - 1,313,604 Debt ServicePrincipal- - - - - 950,000- - - - - - 950,000 Interest and Fees- - - - - 139,112- - - - - - 139,112 4$ 43,605$ 507,937$ 178,309$ -$ 1,089,112$ 760,742$ -$ 646,729$ 55,668$ -$ -$ 3,282,106$ EXCESS OR (DEFICIENCY) OF REVENUESOVER EXPENDITURES96$ (3,627)$ (164,510)$ (127,834)$ 72$ (1,085,364)$ 1,385,016$ 203,595$ (248,306)$ 662,647$ 16,124$ -$ 637,909$ OTHER FINANCING SOURCES/(USES)Transfers- - (18,671) (29,000) 29,000 1,080,177 (399,917) - - (223,835) (16,847) - 420,907 NET CHANGE IN FUND BALANCES96$ (3,627)$ (183,181)$ (156,834)$ 29,072$ (5,187)$ 985,099$ 203,595$ (248,306)$ 438,812$ (723)$ -$ 1,058,816$ FUND BALANCES - MAY 1, 20201,858 8,247 420,053 478,283 (28,750) 4,963 1,441,794 - 1,487,941 280,603 83 (179,115) 3,915,960 FUND BALANCES - APRIL 30, 20211,954$ 4,620$ 236,872$ 321,449$ 322$ (224)$ 2,426,893$ 203,595$ 1,239,635$ 719,415$ (640)$ (179,115)$ 4,974,776$ CITY OF MCHENRY, ILLINOISCOMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCESOTHER GOVERNMENTAL FUNDSFOR THE YEAR ENDED APRIL 30, 2021Page 64See Accompanying Independent Auditor's Report123 Capital Utility Marina Total Water/Sewer Development Improvements Operations Water and Fund Fund Fund Fund Sewer Funds ASSETS Current Assets Cash and Cash Equivalents 4,892,646$ 2,910,471$ -$ 356,486$ 8,159,603$ Investments 428,301 258,756 482,847 99,575 1,269,479 Prepaid Items 36,369 - - - 36,369 Receivables (Net of Allowance for Estimated Uncollectible Amounts) Accounts Receivable - Billed 564,531 - - - 564,531 Accounts Receivable - Unbilled 740,240 - - - 740,240 Accrued Interest 1,052 641 1,043 244 2,980 Due from Other Governmental Units 622,714 - - - 622,714 Due from Other Funds 42,656 104,213 - - 146,869 7,328,509$ 3,274,081$ 483,890$ 456,305$ 11,542,785$ Non-Current Assets Capital Assets Land 2,208,117$ -$ -$ -$ 2,208,117$ Buildings 2,736,098 - - - 2,736,098 Systems and Equipment 109,330,726 - - - 109,330,726 Vehicles 1,855,839 - - - 1,855,839 Construction in Progress 38,619 - - - 38,619 Less: Accumulated Depreciation (37,052,254) - - - (37,052,254) 79,117,145$ -$ -$ -$ 79,117,145$ TOTAL ASSETS 86,445,654$ 3,274,081$ 483,890$ 456,305$ 90,659,930$ DEFERRED OUTFLOWS OF RESOURCES Pension Expense/Revenue - IMRF 555,480$ -$ -$ -$ 555,480$ OPEB Expense/Revenue 107,643 - - - 107,643 TOTAL DEFERRED OUTFLOWS OF RESOURCES 663,123$ -$ -$ -$ 663,123$ LIABILITIES Current Liabilities Accounts Payable and Accrued Expenses 346,606$ -$ -$ 4,996$ 351,602$ Overdraft - - 1,093,558 - 1,093,558 Security Deposits Held - 3,000 - - 3,000 Unearned Revenue 96,675 - - - 96,675 Accrued Interest 271,631 - - - 271,631 IEPA Loan Payable - Current 1,480,962 - - - 1,480,962 Bonds Payable - Current 401,517 - - - 401,517 2,597,391$ 3,000$ 1,093,558$ 4,996$ 3,698,945$ Non-Current Liabilities Compensated Absences 102,097$ -$ -$ -$ 102,097$ IMRF Net Pension Liability 361,888 - - - 361,888 Total OPEB Liability 271,890 - - - 271,890 IEPA Loan Payable (Net of Current Portion Shown Above) 28,182,472 - - - 28,182,472 Bonds Payable (Net of Current Portion Shown Above)4,322,327 - - - 4,322,327 33,240,674$ -$ -$ -$ 33,240,674$ TOTAL LIABILITIES 35,838,065$ 3,000$ 1,093,558$ 4,996$ 36,939,619$ DEFERRED INFLOWS OF RESOURCES Pension Revenue/Expense - IMRF 974,505$ -$ -$ -$ 974,505$ OPEB Revenue/Expense 116,789 - - - 116,789 TOTAL DEFERRED INFLOWS OF RESOURCES 1,091,294$ -$ -$ -$ 1,091,294$ NET POSITION Net Investment in Capital Assets 44,729,867$ -$ -$ -$ 44,729,867$ Unrestricted/(Deficit)5,449,551 3,271,081 (609,668) 451,309 8,562,273 TOTAL NET POSITION 50,179,418$ 3,271,081$ (609,668)$ 451,309$ 53,292,140$ CITY OF MCHENRY, ILLINOIS COMBINING SCHEDULE OF NET POSITION WATER AND SEWER FUNDS APRIL 30, 2021 Page 65 See Accompanying Independent Auditor's Report 124 Capital Utility Marina Total Water/Sewer Development Improvements Operations Water and Fund Fund Fund Fund Sewer Funds OPERATING REVENUES Charges for Services Customer Fees 4,995,852$ 529,837$ -$ -$ 5,525,689$ Capital Fees 403,444 - - - 403,444 Debt Service Fees 2,667,070 - - - 2,667,070 Penalties 98,149 - - - 98,149 Water Meter Sales 37,025 - - - 37,025 Other 6,810 - - - 6,810 8,208,350$ 529,837$ -$ -$ 8,738,187$ OPERATING EXPENSES Water Department Personnel Salaries 509,026$ -$ -$ -$ 509,026$ Miscellaneous Personnel Expenses 164,615 - - - 164,615 Other Operating Expenses 755,831 - - - 755,831 Depreciation 588,751 - - - 588,751 Sewer Department Personnel Salaries 724,839 - - - 724,839 Miscellaneous Personnel Expenses 276,841 - - - 276,841 Other Operating Expenses 1,727,888 - - 35,875 1,763,763 Depreciation 1,704,349 - - - 1,704,349 Utility Work Department Personnel Salaries 655,726 - - - 655,726 Miscellaneous Personnel Expenses 263,391 - - - 263,391 Other Operating Expenses 78,841 - - - 78,841 7,450,098$ -$ -$ 35,875$ 7,485,973$ OPERATING INCOME/(LOSS)758,252$ 529,837$ -$ (35,875)$ 1,252,214$ NON-OPERATING REVENUE/(EXPENSE) Interest Income 7,377$ 1,081$ 3,650$ 402$ 12,510$ Rental Income 30,000 - - 16,352 46,352 Grant Income 620,556 - 175,000 - 795,556 Interest Rebate Income 7,254 - - - 7,254 Interest and Fees (741,570) - - - (741,570) Bond Issuance Costs (54,046) - - - (54,046) Amortization 39,292 - - - 39,292 Gain/(Loss) on Sale of Fixed Asset (1,239,286) - - - (1,239,286) Donated Public Improvements - Water 2,334,210 - - - 2,334,210 Donated Public Improvements - Sewer 1,745,000 - - - 1,745,000 2,748,787$ 1,081$ 178,650$ 16,754$ 2,945,272$ INCOME/(LOSS) BEFORE CONTRIBUTIONS AND TRANSFERS 3,507,039$ 530,918$ 178,650$ (19,121)$ 4,197,486$ TRANSFER WITHIN FUNDS 4,886,046 - (4,886,046) - - TRANSFERS (TO)/FROM OTHER FUNDS (93,851) (16,776) 16,847 - (93,780) CHANGE IN NET POSITION 8,299,234$ 514,142$ (4,690,549)$ (19,121)$ 4,103,706$ NET POSITION - MAY 1, 2020 41,880,184 2,756,939 4,080,881 470,430 49,188,434 NET POSITION - APRIL 30, 2021 50,179,418$ 3,271,081$ (609,668)$ 451,309$ 53,292,140$ CITY OF MCHENRY, ILLINOIS COMBINING SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION WATER AND SEWER FUNDS FOR THE YEAR ENDED APRIL 30, 2021 Page 66 See Accompanying Independent Auditor's Report 125 Employee Risk Information Total Insurance Management Technology Internal Service Fund Fund Fund Funds ASSETS Current Assets Cash and Cash Equivalents -$ 347,655$ 382,516$ 730,171$ Investments - - 8,269 8,269 Prepaid Items 71,816 - - 71,816 Receivables (Net of Allowance for Estimated Uncollectible Amounts) Accounts Receivable - Billed 749 - - 749 Accounts Receivable - Unbilled - 2,014 - 2,014 Accrued Interest - - 10 10 72,565$ 349,669$ 390,795$ 813,029$ Non-Current Assets Capital Assets Systems and Equipment -$ -$ 660,219$ 660,219$ Less: Accumulated Depreciation - - (445,580) (445,580) -$ -$ 214,639$ 214,639$ TOTAL ASSETS 72,565$ 349,669$ 605,434$ 1,027,668$ DEFERRED OUTFLOWS OF RESOURCES Pension Expense/Revenue - IMRF -$ -$ 32,949 32,949$ OPEB Expense / Revenue - - 6,422 6,422 TOTAL DEFERRED OUTFLOWS OF RESOURCES -$ -$ 39,371$ 39,371$ LIABILITIES Current Liabilities Accounts Payable and Accrued Expenses 110$ 130$ 37,645$ 37,885$ Overdrafts 77,063 - - 77,063 Unearned Revenue 85,950 - - 85,950 Capital Lease Payable - Current 24,103 24,103 163,123$ 130$ 61,748$ 225,001$ Non-Current Liabilities Compensated Absences -$ -$ 5,705$ 5,705$ IMRF Net Pension Liability - - 86,905 86,905 Total OPEB Liability - - 22,579 22,579 Lease Payable (Net of Current Portion Shown Above)24,104 24,104 -$ -$ 139,293$ 139,293$ TOTAL LIABILITIES 163,123$ 130$ 201,041$ 364,294$ DEFERRED INFLOWS OF RESOURCES Pension Revenue/Expense - IMRF -$ -$ 57,805$ 57,805$ OPEB Revenue/Expense - - 6,970 6,970 DEFERRED INFLOWS OF RESOURCES -$ -$ 64,775$ 64,775$ NET POSITION Net Investment in Capital Assets -$ -$ 166,432$ 166,432$ Unrestricted/(Deficit)(90,558) 349,539 212,557 471,538 TOTAL NET POSITION (90,558)$ 349,539$ 378,989$ 637,970$ CITY OF MCHENRY, ILLINOIS COMBINING SCHEDULE OF NET POSITION INTERNAL SERVICE FUNDS APRIL 30, 2021 Page 67 See Accompanying Independent Auditor's Report 126 Employee Risk Information Total Insurance Management Technology Internal Service Fund Fund Fund Funds OPERATING REVENUES Charges for Services 3,390,743$ 715,175$ 872,646$ 4,978,564$ 3,390,743$ 715,175$ 872,646$ 4,978,564$ OPERATING EXPENSES Personnel Salaries -$ -$ 158,902$ 158,902$ Miscellaneous Personnel Expenses 3,394,890 - 67,301 3,462,191 Other Operating Expenses 700 865,796 352,451 1,218,947 Depreciation - - 46,312 46,312 3,395,590$ 865,796$ 624,966$ 4,886,352$ OPERATING INCOME/(LOSS)(4,847)$ (150,621)$ 247,680$ 92,212$ NON-OPERATING REVENUE/(EXPENSE) Interest Income 69 1 34 104 CHANGE IN NET POSITION (4,778)$ (150,620)$ 247,714$ 92,316$ NET POSITION - MAY 1, 2020 (85,780) 500,159 131,275 545,654 NET POSITION - APRIL 30, 2021 (90,558)$ 349,539$ 378,989$ 637,970$ CITY OF MCHENRY, ILLINOIS COMBINING SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION INTERNAL SERVICE FUNDS FOR THE YEAR ENDED APRIL 30, 2021 Page 68 See Accompanying Independent Auditor's Report 127 Retained Developmental Personnel Total Escrow Escrow Agency Fund Fund Funds ASSETS Current Assets Cash and Cash Equivalents 6,830$ 54,372$ 61,202$ TOTAL ASSETS 6,830$ 54,372$ 61,202$ LIABILITIES Current Liabilities Accounts Payable and Accrued Expenses -$ 54,372$ 54,372$ Due to Depositors 6,830 - 6,830 TOTAL LIABILITIES 6,830$ 54,372$ 61,202$ TOTAL NET POSITION -$ -$ -$ CITY OF MCHENRY, ILLINOIS COMBINING SCHEDULE OF NET POSITION AGENCY FUNDS APRIL 30, 2021 Page 69 See Accompanying Independent Auditor's Report 128 Budgeted Amounts Original Actual and Final Amounts REVENUES Local Taxes Property Tax 700,000$ 655,428$ Other Local Sources Interest 1,000 27 Miscellaneous Reimbursements 1,000 62,860 Total Revenues 702,000$ 718,315$ EXPENDITURES Current General Office 50,000$ 18,097$ Capital Outlay 20,000$ 37,571$ Total Expenditures 70,000$ 55,668$ EXCESS OR (DEFICIENCY) OF REVENUES OVER EXPENDITURES 632,000$ 662,647$ OTHER FINANCING SOURCES/(USES) Transfers (223,835) (223,835) NET CHANGE IN FUND BALANCE 408,165$ 438,812$ FUND BALANCE - MAY 1, 2020 280,603 FUND BALANCE - APRIL 30, 2021 719,415$ CITY OF MCHENRY, ILLINOIS FOR THE YEAR ENDED APRIL 30, 2021 SPECIAL REVENUE FUND - TAX INCREMENT FINANCING FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL Page 70 See Accompanying Independent Auditor's Report 129 ANNUAL FEDERAL FINANCIAL COMPLIANCE SECTION 130 Page 71 INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH THE UNIFORM GUIDANCE To the Mayor and City Council Members City of McHenry McHenry, Illinois Report on Compliance for Each Major Federal Program We have audited City of McHenry’s compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of City of McHenry’s major federal programs for the year ended April 30, 2021. City of McHenry’s major federal programs are identified in the summary of auditor’s results section of the accompanying Schedule of Findings and Questioned Costs. Management’s Responsibility Management is responsible for compliance with federal statutes, regulations, and the terms and conditions of its federal awards applicable to its federal programs. Auditor’s Responsibility Our responsibility is to express an opinion on compliance for each of City of McHenry’s major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about City of McHenry’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of City of McHenry’s compliance. Opinion on Each Major Federal Program In our opinion, City of McHenry complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended April 30, 2021. 131 Page 72 Report on Internal Control Over Compliance Management of City of McHenry is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered City of McHenry’s internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of City of McHenry’s internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. EDER, CASELLA & CO. Certified Public Accountants McHenry, Illinois October 14, 2021 132 Federal AgencyFederal Other Award From Pass- From(Pass-Through Agency) Federal ProgramCFDA Number Number Through Awards Direct Awards TotalDepartment of Homeland Security Disaster Grants - Public Assistance(via Illinois Emergency Management Agency) (Presidentially Declared Disasters) 97.036 FEMA-3435-EM-IL8,163$ -$ 8,163$ Subtotal CFDA 97.0368,163$ -$ 8,163$ Total CFDA "97"8,163$ -$ 8,163$ Department of Treasury(via Illinois Department of Commerce & Economic COVID-19 Coronavirus Relief Fund (M) 21.019 2433-24354 230,000$ -$ 230,000$ Opportunity) COVID-19 Coronavirus Relief Fund (M) 21.019 20-494608 1,113,502 - 1,113,502 Subtotal CFDA 21.0191,343,502$ -$ 1,343,502$ Total CFDA "21"1,343,502$ -$ 1,343,502$ Department of Agriculture(via Illinois Law Enforcement Training Standards Board) Law Enforcement Agreements 10.7042383-191065,089$ -$ 5,089$ Subtotal CFDA 10.7045,089$ -$ 5,089$ Total CFDA "10"5,089$ -$ 5,089$ CDBG - Entitlement Grants ClusterDepartment of Housing and Urban Development Community Development Block(via County of McHenry) Grants/Entitlement Grants 14.218B19-UC-17-000795,556$ -$ 95,556$ Subtotal CFDA 14.21895,556$ -$ 95,556$ Total CDBG - Entitlement Grants Cluster95,556$ -$ 95,556$ Total CFDA "14"95,556$ -$ 95,556$ Highway Planning and Construction ClusterFederal Highway Administration, Department of Highway Planning and Construction Transportation (via Illinois Department of (Federal-Aid Highway Program) 20.20518-00084-00-SW6,103$ -$ 6,103$ Transportation) Highway Planning and Construction (Federal-Aid Highway Program) 20.20520-1005-JOB-P9105919-SECTION-18-00086-00-BR61,972 - 61,972 Highway Planning and Construction (Federal-Aid Highway Program) 20.2052015010073,695 - 3,695 Subtotal CFDA 20.20571,770$ -$ 71,770$ Total Highway Planning and Construction Cluster71,770$ -$ 71,770$ Total CFDA "20"71,770$ -$ 71,770$ Total Federal Awards Expended:1,524,080$ -$ 1,524,080$ ExpendituresCity of McHenrySchedule of Expenditures of Federal Awards by GrantFor the Year Ended April 30, 2021Page 73133 Page 74 CITY OF MCHENRY NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE YEAR ENDED APRIL 30, 2021 NOTE 1 - BASIS OF PRESENTATION The Schedule of Expenditures of Federal Awards includes the federal award activity of the City under programs of the federal government for the year ended April 30, 2021. The information in this Schedule is presented in accordance with requirements of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements of Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the City, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the City. NOTE 2 - SUMMARY OF ACCOUNTING POLICIES Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. NOTE 3 - INDIRECT COST RATE The City has elected not to use the 10 percent de minimis indirect rate as allowed under the Uniform Guidance. NOTE 4 - SUBRECIPIENTS The City did not provide federal awards to subrecipients during the year ended April 30, 2021. NOTE 5 - FEDERAL LOANS The City had no federal loans or loan guarantees outstanding at April 30, 2021. NOTE 6 – DONATED PERSONAL PROTECTIVE EQUIPMENT (PPE) (UNAUDITED) The City is the recipient of donated PPE. The fair market value of the PPE at the time of receipt was $10,000. 134 Page 75 CITY OF MCHENRY SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED APRIL 30, 2021 1) Summary of auditor’s results: a) The auditor’s report expresses an unmodified opinion on whether the financial statements of the City were prepared in accordance with GAAP. b) No significant deficiencies were reported during the audit of the financial statements. No material weaknesses were reported. c) No instances of noncompliance material to the financial statements of the City, which would be required to be reported in accordance with Government Auditing Standards, were disclosed during the audit. d) No significant deficiencies in internal control over major federal award programs were reported during the audit of the financial statements. No material weakness in internal control over major federal award programs were reported. e) The auditor’s report on compliance for the major federal award programs for the City expresses an unmodified opinion on all major federal programs. f) There are no audit findings that are required to be reported in accordance with Uniform Guidance 2 CFR section 200.516(a). g) The major program identified was COVID-19 Coronavirus Relief Fund (CFDA #20.019). h) The dollar threshold to distinguish between Type A and Type B programs was $750,000. i) The City was determined to not be a low-risk auditee. 2) No financial statement findings. 3) There were no findings and questioned costs for federal awards which are required to be reported. Therefore, there is also no corrective action plan required. 135 Page 76 CITY OF MCHENRY SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS FOR THE YEAR ENDED APRIL 30, 2021 There were no prior audit findings. 136 RESOLUTION 2 1- BE IT RESOLVED by the Mayor and City Council of the City of McHenry, McHenry County, Illinois, that the following schedule of Council Meetings for the period from January 1, 2022, to December 31, 2022, is hereby adopted: Monday, January 3 7:00 p.m. Monday, January 17 7:00 p.m. Monday, February 7 7:00 p.m. Tuesday, February 22 7:00 p.m. Tuesday due to holiday Monday, March 7 7:00 p.m. Monday, March 21 7:00 p.m. Monday, April 4 7:00 p.m. Monday, April 1 8 7:00 p.m. Annual Meeting Monday, May 2 7:00 p.m. Monday, May 1 6 7:00 p.m. Monday, June 6 7:00 p.m. Monday, June 2 0 7:00 p.m. Tuesday , July 5 7:00 p.m. Tuesday due to holiday Monday, J uly 18 7:00 p.m. Monday, August 1 7:00 p.m. Monday, August 1 5 7:00 p.m. Tuesday, September 6 7:00 p.m . Tuesday due to holiday Monday, September 19 7:00 p.m. Monday, October 3 7:00 p.m. Monday, October 17 7:00 p.m. Monday, November 7 7:00 p.m. Monday, November 21 7:00 pm. Monday, December 5 7:00 p.m. Monday, December 19 7:00 p.m. Passed this 1st day of November, 2021. Ayes Nays Absent Abstain Alderman Devine ____ _____ _____ _____ Alderman Glab ____ _____ _____ _____ Alderman Harding _____ _____ _____ _____ Alderman McClat chey ____ _____ _____ _____ Alderwoman Miller _____ _____ _____ _____ Alderman Santi _____ _____ _____ _____ Alderman Strach _____ _____ _____ _____ ______________________ ________________________ Wayne Jett, Mayor Monte Johnson, Deputy Clerk 137 Department of Community & Economic Development McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2170 Fax: (815) 363-2173 www.cityofmchenry.org CONSENT AGENDA TO: Mayor and City Council FROM: Douglas Martin, Director of Economic Development FOR: November 1, 2021 RE: Resolution designating November 15-19, 2021 National Apprenticeship Week in the City of McHenry National Apprenticeship Week is a nationwide celebration that brings together business leaders, career seekers, labor, educational institutions, and other critical partners to demonstrate their support for apprenticeships. Attached is a resolution designating November 15-19, 2021 National Apprenticeship Week in the City of McHenry. If the City Council concurs it is recommended the attached resolution designating November 15-19, 2021 National Apprenticeship Week in the City of McHenry be approved. 138 1 R-21- A RESOLUTION RECOGNIZING THE IMPORTANCE OF APPRENTICESHIPS AND DESIGNATING NOVEMBER 15-19, 2021 AS NATIONAL APPRENTICESHIP WEEK IN THE CITY OF MCHENRY WHEREAS, National Apprenticeship Week is an annual National Celebration that offers leaders in business, labor, education, and other critical partners a chance to express their support for apprenticeships and gives apprenticeship sponsors the opportunity to showcase their programs, facilities and apprentices in their community; and WHEREAS, National Apprenticeship Week is an opportunity to recognize the positive impact apprenticeships have on youth, adults, businesses, and the economy as a whole; and WHEREAS, Weekly events highlight the benefits of apprenticeships in preparing a highly-skilled workforce to meet the talent needs of employers across diverse industries; and WHEREAS, Apprenticeships are a strong career pathway that provide employees the opportunity to earn a salary while learning the skills necessary to succeed in high-demand careers; and WHEREAS, Apprenticeships result in obtainment of an industry-recognized credential and embody the highest competency standards, instructional rigor, and quality training of all career based programs of study; and WHEREAS, The City of McHenry is committed to supporting employers in developing apprenticeships to cultivate a highly skilled workforce that supports our state and local economy and helps businesses thrive through numerous plans to enable companies to expand or relocate to the City of McHenry but also to remain within the City of McHenry; and WHEREAS, the purpose of National Apprenticeship Week is to feature numerous opportunities City of McHenry and other McHenry County companies offer and to inform employers, parents and students about the pathways that could benefit them as they decide on future careers and to find and sustain enough skilled people to fill positions throughout the City of McHenry and McHenry County; and NOW, THEREFORE, BE IT RESOLVED THAT THE CITY OF MCHENRY RECOGNIZES THE IMPORTANCE OF APPRENTICESHIPS TO OUR COMMUNITY AND DESIGNATES NOVEMBER 15-19, 2021 AS NATIONAL APPRECTICESHIP WEEK IN THE CITY OF MCHENRY. 139 2 PASSED and APPROVED this 4th day of November, 2021. Voting Aye: Voting Nay: Abstained: Not Voting: Absent: _______________________________ Mayor ATTEST: __________________________________ City Clerk 140 City of McHenry 333 S Gre en Street McHe nry, Illinois 60050 Phone: (815) 363-2100 Fax: (815) 363-2119 www.cityofmchenry.org The City of McHenry is dedicated to providing its citizens, businesses, and visitors with the highest quality of programs and services in a customer-oriented, efficient, and fiscally responsible manner. REGULAR AGENDA ITEM DATE: November 1, 2021 TO: City Council FROM: Monte Johnson RE: Solicitor Permit Regulations AGENDA ITEM SUMMARY: The City of McHenry’s ordinance on solicitors currently only a llows solicitors to be non-profit organizations. I believe this ordinance wa s put in around 2007 because there was a high number of complaints from citizens that di d not want to be bothered at their homes by solicitors. The City has recently been cha llenged by a business that was told they would not be allowed to solicit in the City of McHenry. The City Attorney researched this matter and identified that a municipality cannot have an ordinance that completely bans soliciting for profit-based businesses. However, the City does have the right to place certain restrictions on soliciting and make businesses apply for a solicitor permit. The attached or dinance outlines the new rules and regulations that must be followed. Staff intends to educate both the solicitors and residents that do not want solicitor s to come to their doors. Solicitors must honor “No Soliciting ” signs. Residents are welcome to use their own signs or they may obtain a No Soliciting sticker at City Hall that can be placed on their door or by their doorbell. RECOMMENDATION: Therefo re, if Council concurs, it is recommended a motion be made to pass an ordinance Repealing and Replacing Title 4: Business and License Regulations, C hapter 13: Solicitors, of the City of McHenry’s Municipal Code 141 ORDINANCE NO. 21- Repealing and Replacing Title 4: Business and License Regulations, Chapter 13: Solicitors, of the City of McHenry’s Municipal Code WHEREAS, the City of McHenry, McHenry County, Illinois, is a home rule municipality as contemplated under Article VII, Section 6, of the Constitution of the State of Illinois, and the passage of this Ordinance constitutes an exercise of the City's home rule powers and functions as granted in the Constitution of the State of Illinois. NOW, THEREFORE BE IT ORDAINED by the City Council of the City of McHenry, McHenry County, Illinois, as follows: SECTION 1: Title 4: Business and License Regulations, Chapter 13: Solicitors, shall be fully repealed and replaced in its entirety and restated as referenced in Exhibit A attached hereto. SECTION 2: If any section, paragraph, subdivision, clause, sentence or provision of this Ordinance shall be adjudged by any Court of competent jurisdiction to be invalid, such judgment shall not affect, impair, invalidate or nullify the remainder thereof, which remainder shall remain in full force and effect. SECTION 3: All ordinances, or parts thereof, in conflict herewith are hereby repealed to the extent of such conflict. SECTION 4: This ordinance shall be in full force and effect from and after its passage, approval and publication, as provided by law. Passed this 1st day of November, 2021. Ayes Nays Absent Abstain Alderman Devine _____ _____ _____ _____ Alderman Glab _____ _____ _____ _____ Alderman Harding _____ _____ _____ _____ Alderman McClatchey _____ _____ _____ _____ Alderwoman Miller _____ _____ _____ _____ Alderman Santi _____ _____ _____ _____ Alderman Strach _____ _____ _____ _____ ______________________ ________________________ Wayne Jett, Mayor Monte Johnson, Deputy City Clerk 142 “Exhibit A” TITLE 4: BUSINESS AND LICENSE REGULATIONS * * * CHAPTER 13: SOLICITORS 4-13-1 Purpose 4-13-2 Definitions 4-13-3 Registration Required; Exemption; Application 4-13-4 Term; renewal 4-13-5 Regulations 4-13-6 Penalties for Violation of This Chapter 4-13-1: PURPOSE A. The City of McHenry has a legitimate interest in preventing fraud, protecting the privacy of its residents, preventing crime and conserving the resources of its police department. This Chapter is intended to apply to the solicitation of funds and is not intended to interfere with the exercise of free speech and the free exercise of rights protected under the First Amendment (i.e ., religious proselytizing, anonymous political speech, the distribution of hand bills, and freedom of the press). It is further declared to be the policy of the City that the residents of the City have the right to determine whether any solicitor shall be invited to their residence. B. The business and operation of any solicitor in conformance with the terms of this Article shall not be interpreted to be an endorsement of any solicitor by the City, its elected officials or its employees. 4-13-2: DEFINITIONS For the purpose of this Article, the following words and phrases shall have the following meanings: PERSON: Any individual, organization, group, association, partnership, corporation, trust, or any combination thereof. RESIDENCE: Every separate living unit occupied for dwelling purposes by one or more persons, contained within any type of building or structure, including the common areas inside multiple dwelling buildings. SOLICIT OR SOLICITING: The act of engaging in solicitation. SOLICITATION: The act of seeking to a) solicit funds or b) to propose or engage in a commercial transaction involving a sale, an offer for a sale, delivery of a commercial good or service, or a commercial exchange, subscription, or any similar transaction, exce pt, as 143 to both items a) and b) of this definition, when such activity is conducted within a building zoned to permit such activity and under the ownership and control of the solicitor. Solicitation does not mean political or religious activities such as r eligious proselytizing or the sale of religious materials, the collection of signatures by political organizations or individuals in support of candidates for public office or referendum questions to be submitted to the voters, or otherwise engaging in pol itical activities related to specific individuals, issues, political parties or political action groups. Solicitation does not mean freedom of press activities such as solicitation of newspapers or other publications. SOLICITOR: Any person engaged in solicitation. 4-13-3 REGISTRATION REQUIRED; EXEMPTION; APPLICATION A. Except as otherwise provided in this section, it shall be unlawful for any person desiring to engage in solicitation within the City without having registered with the City and obtained a certificate of registration from the City as provided herein. B. Persons under the age of fifteen (15) years engaged in solicitation within the City shall not be required to register with the City. However, any such person shall comply with all other applicable provisions of this section. C. Application for a registration shall be made to the City upon a form prescribed by the City and payment of an application fee of $250. The person shall truthfully state in full all of the required information in the application. 4-13-4 TERM; RENEWAL Each registration shall be in effect for no more than thirty (30) days. 4-13-5 REGULATIONS All solicitors shall comply with the following regulations: A. Duty to leave premises on request. No person shall engage in solicitation upon any premises or at any residence after having bee n asked by an owner or occupant thereof to leave such premises or residence. B. Duty to honor no soliciting signs. No person shall enter upon any premises nor engage in solicitation upon any premises or at any residence located thereon, if such premises or residence is posted against solicitation by means of a notice, prominently displayed, upon which is printed the le gend, "No Soliciting", or substantially similar language. Said posting shall be exhibited at or near the main entrance to the premises or on or near the main door to any residence located thereon. C. Fraudulent misrepresentation and misstatement prohibited. No person shall cheat, deceive, or fraudulently misrepresent, whether through himself or through an employee or representative, while soliciting in the City. 144 D. Duty to wear badges. Every person issued a certificate of registration or any individual soliciting for such person shall wear conspicuously on the outside of his or her outer garments a solicitation badge provided by the City. Such badge shall include at least the following information printed legibly: the name of the individual issued the badge, the organization registered with the City, the purpose of the solicitation, and the date of the expiration of the registration. Each badge shall also contain a statement indicating that the card is not an endorsement by the City or any of its employees. Badges issued under this section shall be nontransferable. E. Restrictions on individuals who may solicit. No person shall use any individual for solicitation as herein defined unless such individual is listed on that person's application. F. Time limits. Except as otherwise provided herein, no person shall engage in solicitation as herein defined from March through September at any time prior to 9:00 a.m. or after 8:00 p.m. and from October through February at any time prior to 9:00 a.m. or after 5:00 p.m. G. Immediate Identification. Every solicitor shall immediately identify himself/herself and the purpose of the solicitation to each person being solicited. H. Impeding Traffic Prohibited. No person shall solicit anywhere in the City in a manner that completely or substantially impedes the flow of pedestrian or vehicular traffic in, on or around any sidewalk or public property, way or place. No person engaged in solicitation shall have the exclusive right to any sidewalk or other public property, way or place, nor the right to establish a permanent stationary location for such solicitation. I. Soliciting from vehicles. No person shall stand on any street or highway within the City for purposes of soliciting from the occupant of any vehicle except as set forth in 65 ILCS 5/11-80-9. J. Public Health and Safety. No person shall engage in solicitation within the City in such a manner that creates a danger or threat of any kind to the public health, safety and welfare. 4-13-6 PENALTIES FOR VIOLATION OF THIS SECTION Any person who violates any of the provisions of this Chapter shall be subject to the penalties set forth in the City’s Municipal Code. 145 City of McHenry APPLICATION FOR SOLICITATION PERMIT Please Print Clearly or Type 1. Name of Business Phone ( ) Permanent Business Address City State Zip 2. Name of person performing the solicitation in the City of McHenry Permanent address City State Zip Phone ( ) Date of Birth (If additional persons will be performing the solicitation in the City of McHenry, an additional sheet should be provided with the above listed information for each person.) 3. Name of person in charge of and supervising the solicitation in the City of McHenry Permanent address City State Zip Phone ( ) Date of Birth 4. Address and phone number where person named in #3 can be contacted during this current solicitation Address Phone ( ) City State Zip 5. Purpose of the solicitation (be specific) 6. Dates requested for solicitation: Beginning Ending 7. Date of latest previous application for solicitation in the City of McHenry 8. Names of any officers or solicitors who have been convicted of violating the terms of any solicitation ordinance within the p ast two (2) years. 9. Names of officers or solicitors who have been convicted of a felony within the past five (5) years. 10. List any Illinois communities in which the business has solicited in the past three (3) years. I certify that all of the above statements are true to the best of my knowledge, information and belief. I further certify that I will notify the City within 24 hours, in writing, if any change occurs in the information that I have provided on this application. If this application is approved, I certify that this business will abide by all the rules and regulations of the City of McHenry regarding solicitation. Signature of person named in #3 Date Solicitation badges must be worn conspicuously on the outside garments by all individuals soliciting under this application. Return this form (all copies) to: ATTENTION: SOLICATION, City of McHenry, 333 S. Green Street, McHenry, IL 60050 Z:\M\McHenryCityof\Solicitation\ApplicationForm.docx FOR OFFICE USE ONLY AUTHORIZATION FOR SOLICITATION Based on the information provided above, permission to conduct solicitation within the City of McHenry is: Approved Not Approved Beginning Date: Ending Date: Signed: Date 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 Bill Hobson, Director of Parks and Recreation McHenry Recreation Center 3636 Municipal Drive McHenry, Illinois 60050 Phone: (815) 363-2160 Fax: (815) 363-3119 www.ci.mchenry.il.us/park_recreation AGENDA SUPPLEMENT DATE: November 1, 2021 TO: Mayor and City Council FROM: Bill Hobson, Director of Parks and Recreation RE: Update of Riverwalk Plan and Preparation of Easement Documents Attachment: HR Green Proposal Ordinance for the Budget Amendment AGENDA ITEM SUMMARY: At the October 18th City Council meeting, the Riverwalk Foundation Board President, John Smith presented a plan to construct additional footage of the Riverwalk from Weber Park to the Pearl Street bridge. In order to move forward on the construction, the corresponding completion of documents for that section must be finalized. The attached proposal from HR Green in the amount of $29,804 would be paid by the city with the Riverwalk Foundation continuing to work as a liaison. The proposal would require a budget amendment from the TIF Fund to proceed. BACKGROUND: The McHenry Riverwalk Foundation Board President personally continues to spearhead the expansion of the Riverwalk project. He has has worked closely with staff and local business owners to formulate a construction plan and secure the necessary easements . Over the past 4 months initial easement documents have been prepared for all the owners along the proposed Riverwalk. In addition, the construction documents were advanced to 80%. At this time there is a block of owners that are prepared to sign off with the easements and to partner with the city to implement the Riverwalk and improve their private piers. This section if from the Pearl Street Bridge North to Weber Park. In order to do so however the construction plans need to be advanced to the 100% completion stage. Mr. Smith and city staff have met with representatives from HR Green to finalize these plans. As a part of the plans however, a request was made to divide offerings into sections such as electrical, piers and docks, concrete and landscaping making the project more attractive to a number of vendors. Finally, the TIF Fund has become more viable and is a potential source to fund the plans and the extension with a current balance of over $700,000. 169 ANALYSIS: The update of the plans is vital as it allows the Foundation and the City to approach business owners with that definitive plan in order to secure easements that the landowners are amenable to signing. The Foundation is willing to continue and drive the project but through a well - established partnership that we have created. The selected section of Riverwalk offers the fewest obstacles and is the most constructable at this time. It also offers a direct tie into more potential public boat parking at Weber Park; which is key in attracting additional visitors in the summertime. In the last two years the TIF Fund has become viable with a positive revenue balance. Thi s proposal from the Riverwalk Foundation and HR Green is an acceptable expenditure of TIF Funds. This is not something that the city had planned for during the budget process and as such would require a budget amendment. Finally, HR Green was the sole engineering firm contacted on this project as they completed the initial work and have all existing documents and background information in house. Anyone else would be substantially more as they would be starting from scratch. If City Council concurs then a motion should be considered an ordinance authorizing a budget amendment to the TIF Fund in the amount of $29,804 and to enter an agreement with HR Green to update the 100% Construction Plans for the Riverwalk from North of the Pearl Street Bridge to South Weber Park. 170 Version 2.3 02052021 PROFESSIONAL SERVICES AGREEMENT For McHenry Riverwalk – Pearl St to Weber Park Design Engineering Mayor Wayne Jett & City Council City of McHenry 333 South Green Street McHenry, Illinois 60050 815.363.2160 Chad J. Pieper, PE, Project Manager HR Green, Inc. 1391 Corporate Drive, Suite 203 McHenry, Illinois 60050 HR Green Project Number: 210495.01 October 18, 2021 171 Version2.3 02052021 TABLE OF CONTENTS 1.0 PROJECT UNDERSTANDING 2.0 SCOPE OF SERVICES 3.0 DELIVERABLES AND SCHEDULES INCLUDED IN THIS AGREEMENT 4.0 ITEMS NOT INCLUDED IN AGREEMENT/SUPPLEMENTAL SERVICES 5.0 SERVICES BY OTHERS 6.0 CLIENT RESPONSIBILITIES 7.0 PROFESSIONAL SERVICES FEE 8.0 TERMS AND CONDITIONS 172 Professional Services Agreement McHenry Riverwalk – Pearl St to Weber Park 210495.01 October 18, 2021 Page 1 of 13 Version2.3 02052021 THIS AGREEMENT is between City of McHenry (hereafter “CLIENT”) and HR GREEN, INC. (hereafter "COMPANY"). 1.0 Project Understanding 1.1 General Understanding The CLIENT, working in conjunction with the McHenry Riverwalk Foundation, is looking to complete the City’s Riverwalk from the north side of the Pearl Street Bridge along the Fox River, extending over the water, to the south end of the City’s Weber Park. The CLIENT intends to have Mr. John Smith, President of the Riverwalk Foundation, acting as the project’s Construction Manager (CM) and providing overall project coordination. He will be responsible for over seeing the Bidding and Construction Phases of the project. It is understood that the CLIENT intends to solicit at least three (3) quotes for the work rather than advertise for bids. Contractor names and contact information to be provided by the CLIENT and CM. 1.2 Design Criteria/Assumptions COMPANY will make updates/revisions and complete the COMPANY project plan set, currently at the 80% design stage, developed under a previous contract. Updates/revisions will be per CLIENT/CM mark-up after the design review meeting. This section of Riverwalk is anticipated to include a boardwalk extending in the Fox River. Existing metal seawalls within this project’s limit are anticipated to be replaced with new metal sea walls. Locations with no existing sea wall will receive a new metal wall. No engineering design or evaluation work will be provided under Pearl Street Bridge, at this time. COMPANY assumes all flatwork, metal railing work, lighting, boardwalk, furnishings, to match existing materials, installation methods and specifications used on the previous phases of the Riverwalk. If alternate materials, methods, or vendors are chosen, COMPANY will prepare an addendum to this contract to prepare the additional details and specifications as necessary. The design plans will be completed as a single plan set, however; per request of the CLIENT, the design plan sheets will be separated into two (2) sections. These will include: A. North side of Pearl Street Bridge to Weber Park B. Weber Park The detail sheets for the design plans will be separated by trade. 173 Professional Services Agreement McHenry Riverwalk – Pearl St to Weber Park 210495.01 October 18, 2021 Page 2 of 13 Version2.3 02052021 2.0 Scope of Services The CLIENT agrees to employ COMPANY to perform the following services: Phase 1 2.1 Engineering Plan Completion 1. Beginning with the current 80% design plans, and gaining input from the CLIENT/CM, COMPANY will develop a finalized layout, construction drawings and details, and specifications included in the drawing set. Separate project specifications will not be separated into the bidding document packages. 2. The construction documents will consist of construction drawings and specifications. This phase provides services to complete design and construction details for all the improvements within the phase of the project as defined above. The documents will include the following: 1) Title Sheet with Sheet Index, Location Map, and Project Contact Information. 2) General Notes Sheets with Site/Civil Notes, Project specifications, Erosion Control Requirements, and Landscaping General Notes as necessary to provide instruction to the contractor. 3) Site Sheets that will include all the following info: a. Existing Conditions and required Demolition notes indicating existing topography, vegetation, hardscape elements, and other available site infrastructure information as well as any items to be demolished and/or relocated such as seawall, curbs, boardwalk/piers, signs, benches, posts, gates, pavement. b. Layout and Dimensioning information that will indicate layout geometrics for all of the site improvements listed above. c. Grading and Drainage information with spot grade elevations as necessary, erosion control measures and any necessary drainage improvements. The project will be designed to comply with ADA requirements. 4) Construction Detail Sheets will provide all of the necessary construction details to construct the improvements listed above. These sheets will be separated by project discipline and are anticipated to include the following: a. concrete collar detail b. concrete jointing detail(s) c. pedestrian light pole detail showing foundation/anchoring, and planter and banner arms (as provided by lighting sub-consultant) d. bollard light detail showing foundation/anchoring (as provided by lighting sub-consultant) 174 Professional Services Agreement McHenry Riverwalk – Pearl St to Weber Park 210495.01 October 18, 2021 Page 3 of 13 Version2.3 02052021 e. erosion control detail(s) f. boardwalk layout and material specification details for anchoring to seawalls, river footings, understructure layout and attachment g. existing pier reattachment detail for each private pier connection to attach existing piers to proposed composite boardwalk h. fence detail for a custom fence and footing details i. pier gate detail for a custom gate, and anchoring to existing piers (assumes multiple designs as some pier widths vary) j. railing detail for a custom railing and anchoring to composite boardwalk at end(s) k. retaining wall with railing detail l. temporary closing gate details for two different sized custom gates and anchoring into existing concrete base m. trash receptacle detail with anchoring n. ramp/sidewalk detail o. furnishing schedule detailing all models, quantities and additional manufacturer information 5) Landscape Plan indicating all tree, shrub, perennial, and groundcover locations with species call-outs including a material schedule and typical details. For this phase of the project the landscape plan is understood to only include minor landscaping and turf restoration in areas of disturbance. 6) Lighting Plan. Will be provided by the lighting sub-consultant and coordinated with proposed layout and dimensioning plan. The Lighting sub-consultant will be will be provided by COMPANY as a part of this agreement. 7) Geotechnical Report. Will be provided by others, if necessary. 8) Opinion of Probable Cost (OPC) will be prepared for the project once these documents are at 90% with a final OPC at completion and prior to bidding the job. 2.2 Easement Documentation Revision COMPANY will make revisions to the previously submitted easement exhibits. These revisions will be provided by the CLIENT/CM 2.3 Topographical Pick-up Survey COMPANY will complete any pick-up survey as necessary to complete the design, as needed, for obtaining the required permits, or completing the easement documents. All survey will be added to the project’s base drawing files which will be completed in AutoCAD release 2021. 175 Professional Services Agreement McHenry Riverwalk – Pearl St to Weber Park 210495.01 October 18, 2021 Page 4 of 13 Version2.3 02052021 2.4 Bid Package Preparation At the direction of the CLIENT/CM, the bid package for the project will be split into five (5) separate bid packages. These packages will be separated by Trade and are to be used to gather multiple quotes for the described work. The front-end documents will be the same for each package. The CLIENT/CM has indicated that this work will require the waiving of the standard bid procedures. These packages will include: A. Landscape/Restoration B. Concrete Work C. Electrical Work D. Dock/pier/seawall Work E. Railings 3.0 Deliverables and Schedules Included in this Agreement A. Meetings/Coordination The COMPANY anticipates that this project will require up to three (3) meetings with the CLIENT/CM to complete the required tasks. Design review meetings will occur at the beginning of the project including easement document discussions, at 90% design review, and at final review prior to bidding. COMPANY shall conduct one (1) meeting with utility company to coordinate and resolve any utility conflicts with proposed improvements. This does not include time to resolve any utility conflicts with private business owners. CM to coordinate private utility conflicts and resolutions. B. Deliverables All documents are anticipated to be delivered in electronic PDF format via email of thumb drive. a. Construction Plan set – One (1) completed document. b. Bid Packages – Five (5) documents as outlined above. c. Easement exhibits – One (1) drawing for each lot, as required. This schedule was prepared to include reasonable allowances for review and approval times required by the CLIENT/CM and public authorities having jurisdiction over the project. This schedule shall be equitably adjusted as the project progresses, allowing for changes in the scope of the project requested by the CLIENT/CM or for delays or other causes beyond the control of COMPANY. 176 Professional Services Agreement McHenry Riverwalk – Pearl St to Weber Park 210495.01 October 18, 2021 Page 5 of 13 Version2.3 02052021 4.0 Items not included in Agreement/Supplemental Services The following items are not included as part of this AGREEMENT: • Soil Borings • Meetings (other than those listed above)* • Other permitting agency paperwork and coordination (other than those listed above)* • Tree survey* • CCDD certification* • Irrigation design • Contractor, in coordination with CM, shall be responsible for all permits and fees associated with the seawalls. • Plan, elevation or section illustrative exhibits* • Bid letting or bid review* • Surveyed utility locations into individual businesses* • Construction administration and observation* • Construction surveying services* • Coordination with stakeholders & outside parties (other than one utility coordination meeting)* • ACOE/IDNR-OWR Permitting* • Analysis/engineering review/repair of Pearl Street Bridge *Supplemental services not included in the AGREEMENT can be provided by the COMPANY under separate agreement, if desired. 5.0 Services by Others Dickerson Engineering Inc. will complete the Lighting and Electrical design components of the Project as a sub-consultant to COMPANY. Deliverables will include a photometric plan with fixture and electrical layouts, pole and fixture specifications and installation details (as necessary) for the footing and anchoring. This cost will be included within this agreement. 6.0 Client Responsibilities Client responsibilities include: 1. Verify the list of manufacturers and furnishings to be used within the project, per what was installed on the previous phase. 2. Provide all applicable fees for permitting. 3. Confirm the type of bid document front-ends to be used 4. All coordination and paperwork required for any unforeseen permitting. 5. Provide COMPANY with new locations for any relocated items (signs, etc.) 177 Professional Services Agreement McHenry Riverwalk – Pearl St to Weber Park 210495.01 October 18, 2021 Page 6 of 13 Version2.3 02052021 7.0 Professional Services Fee 7.1 Fees The fee for services will be based on COMPANY standard hourly rates current at the time the AGREEMENT is signed. These standard hourly rates are subject to change upon 30 days’ written notice. Non-salary expenses directly attributable to the project such as: (1) living and traveling expenses of employees when away from the home office on business connected with the project; (2) identifiable communication expenses; (3) identifiable reproduction costs applicable to the work; and (4) outside services will be charged in accordance with the rates current at the time the service is done. 7.2 Invoices Invoices for COMPANY’s services will be submitted, on a monthly basis. Invoices will be due and payable upon receipt in accordance with the Illinois Prompt Payment Act 50ILCS 505. If any invoice is not paid within these timelines, COMPANY may, without waiving any claim or right against the CLIENT, and without liability whatsoever to the CLIENT, suspend or terminate the performance of services. 7.3 Extra Services Any service required but not included as part of this AGREEMENT shall be considered extra services. Extra services will be billed on a Time and Material basis with prior approval of the CLIENT. 7.4 Exclusion This fee does not include attendance at any meetings or public hearings other than those specifically listed in the Scope of Services. These service items are considered extra and are billed separately on an hourly basis. 178 Professional Services Agreement McHenry Riverwalk – Pearl St to Weber Park 210495.01 October 18, 2021 Page 7 of 13 Version2.3 02052021 7.5 Payment The CLIENT AGREES to pay COMPANY on the following basis: Phase 1 – Design Engineering Time and material basis with a Not to Exceed fee of __$29,804.00______. ITEM TASK MAN- HOURS LABOR COST 10 - Surveying Services Topographic Pick-Up Survey 16 $2,400.00 Coordination / Project Management 4 $800.00 Easement Document Revisions 16 $2,400.00 SUB-TOTAL 36 $5,600.00 20 - Design Existing Plan Revision 8 $1,600.00 Project Details 32 $6,400.00 Project Specifications/Bid Packages 40 $8,000.00 Contract Plans 44 $6,204.00 Lighting Plan (DIRECT COST) $2,000.00 SUB-TOTAL 124 $24,204.00 PROJECT TOTAL 160 $29,804.00 Phase 2 – Design & Bidding Assistance COMPANY can provide assistance to the Project Construction Manager with design and bidding questions on a time and materials basis upon authorization from the CLIENT. The hourly billing rate for these services will be $200/hour. Time and material basis with a budgetary fee of _$8,000.00_______. Phase 3 – Construction Management Assistance COMPANY can provide assistance to the Project Construction Manager with construction administration and observation work on a time and materials basis upon authorization from the CLIENT. The hourly billing rate for these services will be $150/hour. Time and material basis with a budgetary fee of _$12,000.00_______. 179 Professional Services Agreement McHenry Riverwalk – Pearl St to Weber Park 210495.01 October 18, 2021 Page 8 of 13 Version2.3 02052021 Terms and Conditions The following Terms and Conditions are incorporated into this AGREEMENT and made a part of it. 7.6 Standard of Care Services provided by COMPANY under this AGREEMENT will be performed in a manner consistent with that degree of care and skill ordinarily exercised by members of the same profession currently practicing at the same time and in the same or similar locality. 7.7 Entire Agreement This AGREEMENT and its attachments constitute the entire understanding between CLIENT and COMPANY relating to COMPANY’s services. Any prior or contemporaneous agreements, promises, negotiations, or representations not expressly set forth herein are of no effect. Subsequent modification s or amendments to this AGREEMENT shall be in writing and signed by the parties to this AGREEMENT. If the CLIENT, its officers, agents, or employees request COMPANY to perform extra services pursuant to this AGREEMENT, CLIENT will pay for the additional services even though an additional written agreement is not issued or signed. 7.8 Time Limit and Commencement of Services This AGREEMENT must be executed within ninety (90) days to be accepted under the terms set forth herein. The services will be commenced immediately upon receipt of this signed AGREEMENT. 7.9 Suspension of Services If the Project or the COMPANY’S services are suspended by the CLIENT for more than thirty (30) calendar days, consecutive or in the aggregate, over the term of this AGREEMENT, the COMPANY shall be compensated for all services performed and reimbursable expenses incurred prior to the receipt of notice of suspension. In addition, upon resumption of services, the CLIENT shall compensate the COMPANY for expenses incurred as a result of the suspension and resumption of its services, and the COMPANY’S schedule and fees for the remainder of the Project shall be equitably adjusted. If the COMPANY’S services are suspended for more than ninety (90) days, consecutive or in the aggregate, the COMPANY may terminate this AGREEMENT upon giving not less than five (5) calendar days' written notice to the CLIENT. If the CLIENT is in breach of this AGREEMENT, the COMPANY may suspend performance of services upon five (5) calendar days' notice to the CLIENT. The COMPANY shall have no liability to the CLIENT, and the CLIENT agrees to make no claim for any delay or damage as a result of such suspension caused by any breach of this AGREEMENT by the CLIENT. Upon receipt of payment in full of all outstanding sums due from the CLIENT, or curing of such other breach which caused the COMPANY to suspend services, the COMPANY shall resume services and there shall be an equitable adjustment to the remaining project schedule and fees as a result of the suspension. 7.10 Books and Accounts COMPANY will maintain books and accounts of payroll costs, travel, subsistence, field, and incidental expenses for a period of five (5) years. Said books and accounts will be available at all reasonable times for examination by CLIENT at the corporate office of COMPANY during that time. 7.11 Insurance COMPANY will maintain insurance for claims under the Worker's Compensation Laws, and from General Liability and Automobile claims for bodily injury, death, or property damage, and Professional Liability insurance caused by the negligent performance by COMPANY's employees of the functions and services required under this AGREEMENT. 7.12 Termination or Abandonment Either party has the option to terminate this AGREEMENT. In the event of failure by the other party to perform in accordance with the terms hereof through no fault of the terminating party, then the obligation to provide further services under this AGREEMENT may be terminated upon seven (7) days’ written notice. If any portion of the services is terminated or abandoned by CLIENT, the provisions of this Schedule of Fees and Conditions in regard to compensation and payment shall apply insofar as possible to that portion of the services not terminated or abandoned. If said termination occurs prior to completion of any phase of the project, the fee for services performed during such phase shall be based on COMPANY's reasonable estimate of the portion of 180 Professional Services Agreement McHenry Riverwalk – Pearl St to Weber Park 210495.01 October 18, 2021 Page 9 of 13 Version2.3 02052021 such phase completed prior to said termination, plus a reasonable amount to reimburse COMPANY for termination costs. 7.13 Waiver COMPANY's waiver of any term, condition, or covenant or breach of any term, condition, or covenant, shall not constitute a waiver of any other term, condition, or covenant, or the breach thereof. 7.14 Severability If any provision of this AGREEMENT is declared invalid, illegal, or incapable of being enforced by any Court of competent jurisdiction, all of the remaining provisions of this AGREEMENT shall nevertheless continue in full force and effect, and no provision shall be deemed dependent upon any other provision unless so expressed herein. 7.15 Successors and Assigns All of the terms, conditions, and provisions hereof shall inure to the benefit of and are binding upon the parties hereto, and their respective successors and assigns, provided, however, that no assignment of this AGREEMENT shall be made without written consent of the parties to this AGREEMENT. 7.16 Third-Party Beneficiaries Nothing contained in this AGREEMENT shall create a contractual relationship with or a cause of action in favor of a third party against either the CLIENT or the COMPANY. The COMPANY’s services under this AGREEMENT are being performed solely for the CLIENT’s benefit, and no other party or entity shall have any claim against the COMPANY because of this AGREEMENT or the performance or nonperformance of services hereunder. The CLIENT and COMPANY agree to require a similar provision in all contracts with contractors, subcontractors, sub-consultants, vendors and other entities involved in this project to carry out the intent of this provision. 7.17 Governing Law and Jurisdiction The CLIENT and the COMPANY agree that this AGREEMENT and any legal actions concerning its validity, interpretation and performance shall be governed by the laws of the State of Illinois without regard to any conflict of law provisions, which may apply the laws of other jurisdictions. It is further agreed that any legal action between the CLIENT and the COMPANY arising out of this AGREEMENT or the performance of the services shall be brought in a court of competent jurisdiction in the State of Illinois. 7.18 Dispute Resolution Mediation. In an effort to resolve any conflicts that arise during the design or construction of the project or following the completion of the project, the CLIENT and COMPANY agree that all disputes between them arising out of or relating to this AGREEMENT shall be submitted to non-binding mediation unless the parties mutually agree otherwise. The CLIENT and COMPANY further agree to include a similar mediation provision in all agreements with independent contractors and consultants retained for the project and to require all independent contractors and consultants also to include a similar mediation provision in all agreements with subcontractors, sub-consultants, suppliers or fabricators so retained, thereby providing for mediation as the primary method fo r dispute resolution between the parties to those agreements. 7.19 Attorney’s Fees If litigation arises for purposes of collecting fees or expenses due under this A GREEMENT, the Court in such litigation shall award reasonable costs and expenses, including attorney fees, to the party justly entitled thereto. In awarding attorney fees, the Court shall not be bound by any Court fee schedule, but shall, in the interest of justice, award the full amount of costs, expenses, and attorney fees paid or incurred in good faith. 7.20 Ownership of Instruments of Service All reports, plans, specifications, field data, field notes, laboratory test data, calculations, estimates and other documents including all documents on electronic media prepared by COMPANY as instruments of serv ice shall remain the property of COMPANY. COMPANY shall retain these records for a period of five (5) years following completion/submission of the records, during which period they will be made available to the CLIENT at all reasonable times. 181 Professional Services Agreement McHenry Riverwalk – Pearl St to Weber Park 210495.01 October 18, 2021 Page 10 of 13 Version2.3 02052021 7.21 Reuse of Documents All project documents including, but not limited to, plans and specifications furnished by COMPANY under this project are intended for use on this project only. Any reuse, without specific written verification or adoption by COMPANY, shall be at the CLIENT's sole risk, and CLIENT shall defend, indemnify and hold harmless COMPANY from all claims, damages and expenses including attorneys’ fees arising out of or resulting therefrom. Under no circumstances shall delivery of electronic files for use by the CLIENT be deemed a sale by the COMPANY, and the COMPANY makes no warranties, either express or implied, of merchantability and fitness for any particular purpose. In no event shall the COMPANY be liable for indirect or consequential damages as a result of the CLIENT’s use or reuse of the electronic files. 7.22 Failure to Abide by Design Documents or To Obtain Guidance The CLIENT agrees that it would be unfair to hold COMPANY liable for problems that might occur should COMPANY’S plans, specifications or design intents not be followed, or for problems resulting from others' failure to obtain and/or follow COMPANY’S guidance with respect to any errors, omissions, inconsistencies, ambiguities or conflicts which are detected or alleged to exist in or as a consequen ce of implementing COMPANY’S plans, specifications or other instruments of service. Accordingly, the CLIENT waives any claim against COMPANY, and agrees to defend, indemnify and hold COMPANY harmless from any claim for injury or losses that results from failure to follow COMPANY’S plans, specifications or design intent, or for failure to obtain and/or follow COMPANY’S guidance with respect to any alleged errors, omissions, inconsistencies, ambiguities or conflicts contained within or arising as a result of implementing COMPANY’S plans, specifications or other instruments of service. The CLIENT also agrees to compensate COMPANY for any time spent and expenses incurred remedying CLIENT’s failures according to COMPANY’S prevailing fee schedule and expense reimbursement policy. 7.23 Opinion of Probable Construction Cost As part of the Deliverables, COMPANY may submit to the CLIENT an opinion of probable cost required to construct work recommended, designed, or specified by COMPANY, if required by CLIENT. COMPANY is not a construction cost estimator or construction contractor, nor should COMPANY’S rendering an opinion of probable construction costs be considered equivalent to the nature and extent of service a construction cost estimator or construction contractor would provide. This requires COMPANY to make a number of assumptions as to actual conditions that will be encountered on site; the specific decisions of other design professionals engaged; the means and methods of construction the contractor will employ; th e cost and extent of labor, equipment and materials the contractor will employ; contractor's techniques in determining prices and market conditions at the time, and other factors over which COMPANY has no control. Given the assumptions which must be made, COMPANY cannot guarantee the accuracy of its opinions of cost, and in recognition of that fact, the CLIENT waives any claim against COMPANY relative to the accuracy of COMPANY’S opinion of probable construction cost. 7.24 Design Information in Electronic Form Because electronic file information can be easily altered, corrupted, or modified by other parties, either intentionally or inadvertently, without notice or indication, COMPANY reserves the right to remove itself from its ownership and/or involvement in the material from each electronic medium not held in its possession. CLIENT shall retain copies of the work performed by COMPANY in electronic form only for information and use by CLIENT for the specific purpose for which COMPANY was engaged. Said material s hall not be used by CLIENT or transferred to any other party, for use in other projects, additions to this project, or any other purpose for which the material was not strictly intended by COMPANY without COMPANY’s express written permission. Any unauthorized use or reuse or modifications of this material shall be at CLIENT’S sole risk. Furthermore, the CLIENT agrees to defend, indemnify, and hold COMPANY harmless from all claims, injuries, damages, losses, expenses, and attorneys’ fees arising out of the modification or reuse of these materials. The CLIENT recognizes that designs, plans, and data stored on electronic media including, but not limited to computer disk, magnetic tape, or files transferred via email, may be subject to undetectable alteration a nd/or uncontrollable deterioration. The CLIENT, therefore, agrees that COMPANY shall not be liable for the completeness or accuracy of any materials provided on electronic media after a 30-day inspection period, during which time COMPANY shall correct any errors detected by the CLIENT to complete the design in accordance with the intent of the contract and specifications. After 40 days, at the request of the CLIENT, COMPANY shall submit a final set of sealed drawings, and any additional services to be per formed by COMPANY relative to the 182 Professional Services Agreement McHenry Riverwalk – Pearl St to Weber Park 210495.01 October 18, 2021 Page 11 of 13 Version2.3 02052021 submitted electronic materials shall be subject to separate agreement. The CLIENT is aware that differences may exist between the electronic files delivered and the printed hard-copy construction documents. In the event of a conflict between the signed construction documents prepared by the COMPANY and electronic files, the signed or sealed hard-copy construction documents shall govern. 7.25 Information Provided by Others The CLIENT shall furnish, at the CLIENT’s expense, all information, requirements, reports, data, surveys and instructions required by this AGREEMENT. The COMPANY may use such information, requirements, reports, data, surveys and instructions in performing its services and is entitled to rely upon the accuracy and completeness thereof. The COMPANY shall not be held responsible for any errors or omissions that may arise as a result of erroneous or incomplete information provided by the CLIENT and/or the CLIENT’s consultants and contractors. COMPANY is not responsible for accuracy of any plans, surveys or information of any type including electronic media prepared by any other consultants, etc. provided to COMPANY for use in preparation of plans. The CLIENT agrees, to the fullest extent permitted by law, to indemnify and hold harmless the COMPANY from any damages, liabilities, or costs, including reasonable attorneys’ fees and defense costs, arising out of or connected in any way with the services performed by other consultants engaged by the CLIENT. COMPANY is not responsible for accuracy of topographic surveys provided by others. A field check of a topographic survey provided by others will not be done under this AGREEMENT unless indicated in the Scope of Services. 7.26 Force Majeure The CLIENT agrees that the COMPANY is not responsible for damages arising directly or indirectly from any delays for causes beyond the COMPANY's control. CLIENT agrees to defend, indemnify, and hold COMPANY, its consultants, agents, and employees harmless from any and all liability, other than that caused by the negligent acts, errors, or omissions of COMPANY, arising out of or resulting from the same. For purposes of this AGREEMENT, such causes include, but are not limited to, strikes or other labor dispu tes; severe weather disruptions or other natural disasters or acts of God; fires, riots, war or other emergencies; disease epidemic or pandemic; failure of any government agency to act in a timely manner; failure of performance by the CLIENT or the CLIENT’S contractors or consultants; or discovery of any hazardous substances or differing site conditions. Severe weather disruptions include but are not limited to extensive rain, high winds, snow greater than two (2) inches and ice. In addition, if the delay s resulting from any such causes increase the cost or time required by the COMPANY to perform its services in an orderly and efficient manner, the COMPANY shall be entitled to a reasonable adjustment in schedule and compensation. 7.27 Job Site Visits and Safety Neither the professional activities of COMPANY, nor the presence of COMPANY’S employees and sub - consultants at a construction site, shall relieve the general contractor and any other entity of their obligations, duties and responsibilities including, but not limited to, construction means, methods, sequence, techniques or procedures necessary for performing, superintending or coordinating all portions of the work of construction in accordance with the contract documents and any health or safety precautions required by any regulatory agencies. COMPANY and its personnel have no authority to exercise any control over any construction contractor or other entity or their employees in connection with their work or any health or safety precautions. The CLIENT agrees that the general contractor is solely responsible for job site safety, and warrants that this intent shall be made evident in the CLIENT's AGREEMENT with the general contractor. The CLIENT also agrees that the CLIENT, COMPANY and COMPANY’S consultants shall be indemnified and shall be made additional insureds on the general contractor’s and all subcontractor’s general liability policies on a primary and non-contributory basis. 7.28 Hazardous Materials CLIENT hereby understands and agrees that COMPANY has n ot created nor contributed to the creation or existence of any or all types of hazardous or toxic wastes, materials, chemical compounds, or substances, or any other type of environmental hazard or pollution, whether latent or patent, at CLIENT's premises, or in connection with or related to this project with respect to which COMPANY has been retained to provide professional services. The compensation to be paid COMPANY for said professional services is in no way commensurate with, and has not been calculated with reference to, the potential risk of injury or loss which may be caused by the exposure of persons or property to such substances or conditions. Therefore, to the fullest extent permitted by law, CLIENT agrees to defend, indemnify, and hold COMPANY , its officers, directors, 183 Professional Services Agreement McHenry Riverwalk – Pearl St to Weber Park 210495.01 October 18, 2021 Page 12 of 13 Version2.3 02052021 employees, and consultants, harmless from and against any and all claims, damages, and expenses, whether direct, indirect, or consequential, including, but not limited to, attorney fees and Court costs, arising out of, or resulting from the discharge, escape, release, or saturation of smoke, vapors, soot, fumes, acid, alkalis, toxic chemicals, liquids gases, or any other materials, irritants, contaminants, or pollutants in or into the atmosphere, or on, onto, upon, in, or into the surface or subsurface of soil, water, or watercourses, objects, or any tangible or intangible matter, whether sudden or not. It is acknowledged by both parties that COMPANY’S Scope of Services does not include any services related to asbestos or hazardous or toxic materials. In the event COMPANY or any other party encounters asbestos or hazardous or toxic materials at the job site, or should it become known in any way that such materials may be present at the job site or any adjacent areas that may affect the performance of COMPANY’S services, COMPANY may, at its option and without liability for consequential or any other damages, suspend performance of services on the project until the CLIENT retains appropriate specialist consultant(s) or contractor(s) to identify, abate and/or remove the asbestos or hazardous or toxic materials, and warrants that the job site is in full compliance with applicable laws and regulations. Nothing contained within this AGREEMENT shall be construed or interpreted as requiring COMPANY to assume the status of a generator, storer, transporter, treater, or disposal facility as those terms appear within the Resource Conservation and Recovery Act, 42 U.S.C.A., §6901 et seq., as amended, or within any State statute governing the generation, treatment, storage, and disposal of waste. 7.29 Certificate of Merit The CLIENT shall make no claim for professional negligence, either directly or in a third party claim, against COMPANY unless the CLIENT has first provided COMPANY with a writt en certification executed by an independent design professional currently practicing in the same discipline as COMPANY and licensed in the State in which the claim arises. This certification shall: a) contain the name and license number of the certifier; b) specify each and every act or omission that the certifier contends is a violation of the standard of care expected of a design professional performing professional services under similar circumstances; and c) state in complete detail the basis for the certifier's opinion that each such act or omission constitutes such a violation. This certificate shall be provided to COMPANY not less than thirty (30) calendar days prior to the presentation of any claim or the institution of any judicial proceeding. 7.30 Limitation of Liability In recognition of the relative risks and benefits of the Project to both the CLIENT and the COMPANY, the risks have been allocated such that the CLIENT agrees, to the fullest extent permitted by law, to limit the liability of the COMPANY and COMPANY’S officers, directors, partners, employees, shareholders, owners and sub - consultants for any and all claims, losses, costs, damages of any nature whatsoever or claims expenses from any cause or causes, including attorneys’ fees and costs and expert witness fees and costs, so that the total aggregate liability of the COMPANY and COMPANY’S officers, directors, partners, employees, shareholders, owners and sub-consultants shall not exceed $50,000.00, or the COMPANY’S total fee for services rendered on this Project, whichever is greater. It is intended that this limitation apply to any and all liability or cause of action however alleged or arising, unless otherwise prohibited by law. 8.26 Design Without Construction Observation It is agreed that the professional services of COMPANY do not extend to or include the review or site observation of the contractor's work or performance and the CLIENT assumes all responsibility for interpretation of the contract documents and for construction observation. It is further agreed that the CLIENT will defend, indemnify and hold harmless COMPANY from any claim or suit whatsoever, including but not limited to all payments, expenses or costs involved, arising from the contractor's performance or the failure of the contractor's work to conform to the design intent and the contract documents. COMPANY agrees to be responsible for its employees’ negligent acts, errors or omissions. 8.27 Construction Observation COMPANY shall visit the project at appropriate intervals (as described in the scope of services) during construction to become generally familiar with the progress and quality of the contractors' work and to determine if the work is proceeding in general accordance with the Contract Documents. The CLIENT has not retained COMPANY to make detailed inspections or to provide exhaustive or continuous project review and observation services. COMPANY does not guarantee the performance of, and shall have no responsibility for, the acts or omissions of any contractor, subcontractor, supplier or any other entity furnishing materials or performing any work on the project. 184 Professional Services Agreement McHenry Riverwalk – Pearl St to Weber Park 210495.01 October 18, 2021 Page 13 of 13 Version2.3 02052021 If the CLIENT desires more extensive project observation or full -time project representation, the CLIENT shall request in writing such services be provided by COMPANY as Additional Services in accordance with the terms of the AGREEMENT. 8.28 Municipal Advisor The COMPANY is not a Municipal Advisor registered with the Security and Exchange Commission (SEC) as defined in the Dodd-Frank Wall Street Reform and Consumer Protection Act. When the CLIENT is a municipal entity as defined by said Act, and the CLIENT requires project financing information for the services performed under this AGREEMENT, the CLIENT will provide the COMPANY with a letter detailing who their independent registered municipal advisor is and that the CLIENT will rely on the advice of such advisor. A sample letter can be provided to the CLIENT upon request. This AGREEMENT is approved and accepted by the CLIENT and COMPANY upon both parties signing and dating the AGREEMENT. Services will not begin until COMPANY receives a signed agreement. COMPANY’s services shall be limited to those expressly set forth in this AGREEMENT and COMPANY shall have no other obligations or responsibilities for the Project except as agreed to in writing. The effective date of the AGREEMENT shall be the last date entered below. Sincerely, HR GREEN, INC. Chad J. Pieper, PE Approved by: Printed/Typed Name: Timothy J. Hartnett Title: Vice President/Principal Date: 10/18/2021 City of McHenry Accepted by: Printed/Typed Name: Title: Date: 185 ORDINANCE NO. 21- AN ORDINANCE AMENDING THE FY2021/2022 BUDGET FOR THE FISCAL YEAR ENDING APRIL 30, 20 22 WHEREAS, the City of McHenry, McHenry County, Illin ois, is a home rule municipality as contemplated under Article VII, Section 6, of the Constitution of the State of Illinois, and the passage of this Ordinance constitutes an exercise of the City’s home rule powers and functions as granted in the Constitution of the State of Illinois; and WHEREAS, the City of McHenry acting by and through its Mayor and City Council has previously approved the FY21/22 Annual Budget for the Fiscal Year Ending April 30, 2022 by a motion at the Regular City Council Meeting held on April 19, 2021; and WHEREAS, it is necessary and appropriate to delete, add to, or otherwise change certain line items in said Budget Ordinance as provided in Exhibit A to this Ordinance; NOW, THEREFORE, BE IT ORDAINED by the City Council of the C ity of McHenry, McHenry County, Illinois, as follows: SECTION 1: That the amendments to the Budget Ordinance for the Fiscal Year Ending April 30, 2020 are hereby approved in the form and content as provided by Exhibit “A” which is attached hereto and made part hereof. SECTION 2: If any section, paragraph, subdivision, clause, sentence or provision of this Ordinance shall be adjudged by any Court of competent jurisdiction to be invalid, such judgment shall not affect, impair, invalidate or nullify the remainder thereof, which remainder shall remain and continue in full force and effect. SECTION 3: All ordinances, or parts of ordinances in conflict herewith are hereby repealed to the extent of such conflict. SECTION 4: This ordinance shall be published in pamphlet form by and under the authority of the corporate authorities of the City of McHenry, Illinois. SECTION 5: This ordinance shall be in full force and effect from and after its passage, approval and publication, as provided by law. Passed this 1st day of November, 2021. Ayes Nays Absent Abstain Alderman Devine _____ _____ _____ _____ Alderman Glab _____ _____ _____ _____ Alderman Harding _____ _____ _____ _____ Alderman McClatchey _____ _____ _____ _____ Alderwoman Miller _____ _____ _____ _____ 186 Alderman Santi _____ _____ _____ _____ Alderman Strach _____ _____ _____ _____ ______________________ ________________________ Wayne Jett, Mayor Monte Johnson, Deputy City Clerk 187 EXHIBIT A The following budget items are amended by this Ordinance: FY 21/22 Tax Increment Funding - $29,804.00 188 189 190 191 192 City of McHenry Council Executive Meeting Minutes 10.18.21 1 MINUTES REGULAR CITY COUNCIL MEETING Monday, October 18, 2021, 7:00 p.m. City Council Chambers, 333 S Green St, McHenry, IL 60050 In light of the current COVID-19 public health emergency, this meeting will be held remotely only. The public can observe and participate by connecting online via Zoom at https://cityofmchenry.zoom.us/j/87454758519 Or call (312) 626-6799, Meeting ID 874 5475 8519 Call to Order: The meeting was held remotely via Zoom due to the COVID -19 pandemic. The meeting was in compliance with the Open Meetings Act per guidelines by the Illinois Attorney General’s Office. Roll Call: Mayor Jett called the roll call. Members present: Alderman Santi, Alderman Glab, Alderman McClatchey, Alderman Harding, Alderman Strach, Alderman Devine, Alderwoman Miller, and Mayor Jett. Others present: Attorney McArdle, Administrator Morefield, Director of Public Works Strange, Director of Community De velopment Polerecky, Finance Director Lynch, Director of Parks and Recreation Hobson, Director of Economic Development Martin, Chief of Police Birk, City Planner Sheriff, and City Clerk Ramel. Pledge of Allegiance: Mayor Jett led the pledge. Consent Agenda: Motion to Approve the following Consent Agenda Items: A. Ordinance amending Title 4, Chapter 2: Alcoholic Liquor, Section 4-2-1: Definitions; and Section 4-2-4: Applications for Licenses, and Section 4 -2-5: Ineligibility; (Deputy City Clerk Johnson) B. Award a contract for Knox Park Parking Lot Paving Lot Rehabilitation Project to Chicagoland Paving of Lake Zurich, Illinois in the amount of $320,000.00 and to approve a construction contingency in the amount of $32,000.00 (10%) of the awarded contract price; (Public Works Director Strange) C. Authorize the Mayor’s execution of easement agreements between the City of McHenry and Mr. Edward J. Neumann Jr. as Trustee of the Edward J. Neumann Jr. Trust, Chicago Title Land Trust Company as Successor to Amcore Investment Group , and McHenry Community Consolidated School District 15 for the purpose of constructing the Riverwalk Sanitary Sewer Realignment Project; (Public Works Director Strange) 193 City of McHenry Council Executive Meeting Minutes 10.18.21 2 D. Authorize the Mayor’s execution of a lease extension for the South Harbor piers, property and buildings with D’s Marine through May 1, 2022 ; (Parks and Recreation Director Hobson) E. October 4, 2021 City Council Meeting Minutes; F. Issuance of Checks in the amount of $180,762.28; G. Issuance of As Needed Checks in the amount of $236,092.05. A motion was made by Alder man McClatchey and seconded by Alderwoman Miller to approve Consent Agenda Items as presented: Roll Call: Vote: 7-ayes: Alderman Santi, Alderman Glab, Alderman McClatchey, Alderman Harding, Alderman Strach, Alderman Devine, Alderwoman Miller. 0-nays, 0-abstained. Motion carried. Individual Action Item Agenda: A. Motion to approve a Class A Liquor License to Margaritas Restaurant Bar, Inc., located at 2314 W. Illinois Route 120 and, subject to the approval, a motion to approve and Ordinance amending the limitation on the number of Class A Liquor Licenses; (Mayor Jett, Deputy City Clerk Johnson) No public comment. A motion was made by Alderman Santi and seconded by Alderwoman Miller to approve Individual Agenda Items as presented: Roll Call: Vote: 7-ayes: Alderman Santi, Alderman Glab, Alderman McClatchey, Alderman Harding, Alderman Strach , Alderman Devine, Alderwoman Miller. 0-nays, 0-abstained. Motion carried. B. Motion to approve a Class C Liquor License to Thorntons LLC DBA Thorntons #344, located at 2128 W. Illinois Route 120 and, subject to the approval, a motion to approve an Ordinance amending the limitation on the number of Class C Liquor Licenses; (Mayor Jett, Deputy City Clerk Johnson) No public comment. A motion was made by Alderman Strach and seconded by Alderwoman Miller to approve Individual Agenda Items as presented: Roll Call: Vote: 7-ayes: Alderman Santi, Alderman Glab, Alderman McClatchey, Alderman Harding, Alderman Strach , Alderman Devine, Alderwoman Miller. 0-nays, 0-abstained. Motion carried. C. Motion to approve an Ordinance granting Zoning Variations to allow a rear yard setback of 18.2’ in lieu of the required 25’; and, to allow an interior side yard setback of 4.7’ in lieu of the required 6’ for the property located at 3719 W. Freund Avenue. (City Planner Sheriff) No public comment 194 City of McHenry Council Executive Meeting Minutes 10.18.21 3 A motion was made by Alderman Santi and seconded by Alderman Glab to approve Individual Agenda Items as presented: Roll Call: Vote: 7-ayes: Alderman Santi, Alderman Glab, Alderman McClatchey, Alderman Harding, Alderman Strach , Alderman Devine, Alderwoman Miller. 0-nays, 0-abstained. Motion carried. D. Motion to approve an Ordinance granting a Use Variation to allow a body art establishment in the C-5 Highway Commercial District for the property located at 4801 W. Illinois Route 120 (Elm Street). (City Planner Sheriff) Per the owner, this will be appointment only hours he wants to make sure that he is serving the community, the hours of business will be during the week 5:30-9:30. Alderman Glab stated there were no complaints per the planning and zoning for this establishment. Alderman Glab also wanted to know if there will be no outside signs other than the front windows, could this be added as variance, the answer was no. Per the petitioner it will be a professional tattoo artist working to help those in the community and not make any negativity. A motion was made by Alderwoman Miller and seconded by Alderman Strach to approve Individual Agenda Items as presented: Roll Call: Vote: 6 ayes: Alderman Santi, Alderman Glab, Alderman McClatchey, Alderman Harding, Alderman Strach , Alderman Devine, Alderwoman Miller. 1-nays, Alderman Glab, 0-abstained. Motion carried. E. Motion to approve an Ordinance adopting Zoning Text Amendments to Chapter 9: Commercial Districts Permitted and Conditional Uses to allow Body Art Establishments in the C-4 Downtown Commercial District and C -5 Highway Commercial District. (City Planner Sheriff) No public comment. Alderwoman Miller feels that these are the right places for the body art, feels these are the appropriate places for this and is in favor of the motion for the Text Amendments. A motion was made by Alderman Strach and seconded by Alderman Harding to approve Individual Agenda Items as presented: Roll Call: Vote: 5-ayes: Alderman Santi, Alderman McClatchey, Alderman Harding, Alderman Strach, Alderwoman Miller. 2-nays, Alderman Glab, Alderman Devine, 0-abstained. Motion carried. F. Motion to approve an Ordinance updating Section 9 -2C-5(B) and 9-4B-1(F) of the City of McHenry Municipal Code in order to reduce debt service fees associated with the WWTP Consolidation Project and increase Water and Sewer Base Fees; (Public Works Director Strange) No Public Comment. Alderman McCaltchy, we should find ways to fund this and make it happen, the principle of raising the fees is not permissible just because they can .Alderman Glab wants others to understand that the rates are actually going up by $9, feels that this should not be done all at once could projects be done some at a time. 195 City of McHenry Council Executive Meeting Minutes 10.18.21 4 Alderman Santi asked when projects are starting, confirmed by Troy 22 -23 year. There is ten items being worked on in 2023. Per Alderman Santi there are some projects that should have been completed sooner but that the projects may become more if some of the systems break down sooner than projected. A motion was made by Alderman Strach and seconded by Alderwoman Miller to approve Individual Agenda Items as presented: Roll Call: Vote: 6-ayes: Alderman Santi, Alderman Harding, Alderman Strach, Alderman Devine, Alderwoman Mille r. 2-nays, Alderman Glab, Alderman McClatchey. 0-abstained. Motion carried. Discussion Items: A. Riverwalk Update and Direction; (Parks and Recreation Director Hobson) John Smith the Riverwalk Foundation President, spoke regarding this. After thanking The Council, and talking about the accomplishments regarding what has taken place. He presented the pricing for the Phase 3 of the Riverwalk. Total project would take the city from 80% to 100% construction, total would be $1,740,462.60 for an estimate. There was a breakdown of the 2021/2022 and 2022/2023 budgets. Would like to go out to bid as soon as possible for around $500,000 from the TIF funds. Mayor Jett met with Director Hobson and also John Smith, regarding this, wants to see if we can bring this back to The Council . There was very many positive comments regarding the Riverwalk and most of the members wanted to move forward with this development. B. 2021 Property Tax Levy; (City Administrator Morefield, Finance Director Lynch) Presented by Administrator Morefield , it is time to review the levy, and the increase regarding this. Per Alderwoman Miller we should follow the lead on those who presented. Along with Alderman Strach stated that he agrees that moving forward should occur, al so in agreement was Alderman Devine. Alderman Glab did not support this and would like to keep it flat. Alderman Santi feels that there is a negative connotation with property tax and communication and understanding could help with moving forward on this. There has not been an increase in 10 years. Executive Session: A motion was made by Alderman Santi and seconded by Alderman Strach to adjourn to executive session at 8:35 p.m. Roll Call: Vote: 7 - ayes: Alderman Santi, Alderman Glab, Alderman McClatchey, Alderman Harding, Alderman Strach, Alderman Devine, Alderwoman Miller. 0- nays, 0- abstained. Motion carried. Executive Session to discuss the purchase or lease of real property for use of the public body, including meetings held for the purpose of discussing whether a particular parcel should be acquired (5 ILCS 120/2(c)(5).); and for litigation, when the public body finds that an action is probable or imminent (5 ILCS 120/2(c)(11).) 196 City of McHenry Council Executive Meeting Minutes 10.18.21 5 Mayor Jett reconvened the meeting from executive session at 9:22 p. m. A motion was made by Alderman Santi and seconded by Alderman McClatchey to return to open session. Roll call: Call:Vote: 7- ayes Alderman Santi, Alderman Glab, Alderman McClatchey, Alderman Harding, Alderman Strach, Alderman Devine, Alderwoman Miller. 0 - nays, 0- abstained. Motion carried. Staff Reports: A. October 18, 2021 Staff Report Provided. 6pm Tuesday 26th is a special meeting regarding the proposal for redevelopment regarding the waste water treatment center, at The City Council Chambers. Mayor’s Report.- Nothing City Council Comments.- Alderwoman Miller, stated that there is a group of residents that are passing out flyers for planning and zoning meeting. Adjourn: A motion was made Alderman Santi and seconded by Alderman Strach to adjourn the meeting at 9:30 PM. Roll Call: Vote:7-ayes: Alderman Santi, Alderman Glab, Alderman McClatchey, Alderman Harding, Alderman Strach , Alderman Devine, Alderwoman Miller. 0-nay-, 0-abstained. Motion carried. X Mayor Wayne Jett X City Clerk Trisha Ramel 197 Expense Approval Register McHenry, IL List of Bills Council Meeting‐ 11‐1‐21 Vendor Name Payable Number Post Date Description (Item) Account Number Amount Vendor: AEP ENERGY AEP ENERGY INV0012206 11/01/2021 UTIL 100‐33‐5520 2,822.21 AEP ENERGY INV0012206 11/01/2021 UTIL 100‐42‐5510 742.74 AEP ENERGY INV0012206 11/01/2021 UTIL 100‐45‐5510 408.37 AEP ENERGY INV0012206 11/01/2021 UTIL 400‐00‐5510 2,283.20 AEP ENERGY INV0012208 11/01/2021 UTILITY 510‐31‐5510 10,752.65 AEP ENERGY INV0012208 11/01/2021 UTILITY 510‐32‐5510 17,565.52 Vendor AEP ENERGY Total: 34,574.69 Vendor: BAKER & SON CO, PETER BAKER & SON CO, PETER 35455 11/01/2021 SFC 100‐33‐6110 118.02 BAKER & SON CO, PETER 35558 11/01/2021 SFC 100‐33‐6110 509.04 Vendor BAKER & SON CO, PETER Total: 627.06 Vendor: BAXTER & WOODMAN BAXTER & WOODMAN 0228127 11/01/2021 OAKWOOD DR BRIDGE REHAB 270‐00‐8600 10,225.06 Vendor BAXTER & WOODMAN Total: 10,225.06 Vendor: BT MCHENRY LLC BT MCHENRY LLC 082605 11/01/2021 WSC WATER/SEWER 100‐01‐5110 57.57 Vendor BT MCHENRY LLC Total: 57.57 Vendor: COMED COMED INV0012210 11/01/2021 UTIL 100‐33‐5520 33.71 COMED INV0012210 11/01/2021 UTIL 100‐33‐5520 19,150.94 COMED INV0012210 11/01/2021 UTIL 100‐45‐5510 34.62 COMED INV0012211 11/01/2021 UTIL 510‐32‐5510 55.05 COMED INV0012211 11/01/2021 UTIL 510‐32‐5510 2,146.65 Vendor COMED Total: 21,420.97 Vendor: CONSTELLATION NEWENERGY INC CONSTELLATION NEWENERGY INV0012212 11/01/2021 UTIL 100‐33‐5520 1,371.20 CONSTELLATION NEWENERGY INV0012212 11/01/2021 UTIL 100‐44‐5510 24.09 Vendor CONSTELLATION NEWENERGY INC Total: 1,395.29 Vendor: FAMILY HEALTH PARTNERSHIP CLINIC FAMILY HEALTH PARTNERSHIP P21‐08‐186 11/01/2021 TEMP SIGN REFUND 100‐00‐3410 30.00 Vendor FAMILY HEALTH PARTNERSHIP CLINIC Total: 30.00 Vendor: FOX VALLEY FIRE & SAFETY FOX VALLEY FIRE & SAFETY IN00469484 11/01/2021 MCRADIOS 225‐00‐5110 1,404.00 FOX VALLEY FIRE & SAFETY IN00472414 11/01/2021 HICKORY CREED HORSE FARM 225‐00‐5110 611.00 FOX VALLEY FIRE & SAFETY IN00472799 11/01/2021 MUN RADIO MAINT 225‐00‐5110 1,404.00 FOX VALLEY FIRE & SAFETY IN00473191 11/01/2021 THORNTONS 225‐00‐5110 195.00 FOX VALLEY FIRE & SAFETY IN00473193 11/01/2021 COLDWELL BANKER 225‐00‐5110 195.00 Vendor FOX VALLEY FIRE & SAFETY Total: 3,809.00 Vendor: GRAHAM ENTERPRISE INC GRAHAM ENTERPRISE INC INV0012213 11/01/2021 MAY 2021‐AUGUST 2021 SALES 100‐04‐6945 36,310.45 Vendor GRAHAM ENTERPRISE INC Total: 36,310.45 Vendor: HLR HLR 20211884 11/01/2021 BV RD RESURF PH II 270‐00‐8600 890.00 HLR 20211885 11/01/2021 DARTMOOR DR RESURF PH II 270‐00‐8600 462.50 Vendor HLR Total: 1,352.50 Vendor: INFOSEND, INC INFOSEND, INC 199497 11/01/2021 W‐S BILLS 100‐04‐5310 817.59 INFOSEND, INC 199497 11/01/2021 W‐S BILLS 100‐04‐5330 2,365.69 INFOSEND, INC 200566 11/01/2021 PROG FEE 100‐04‐5110 175.00 Vendor INFOSEND, INC Total: 3,358.28 10/27/2021 11:35:19 AM 198 Expense Approval Register Packet: APPKT02223 ‐ 11‐1‐21‐AP CKS Vendor Name Payable Number Post Date Description (Item) Account Number Amount Vendor: LANG AUTO GROUP, GARY LANG AUTO GROUP, GARY INV0012214 11/01/2021 20/21 SALES TAX INCENTIVE 100‐04‐6945 511,159.47 Vendor LANG AUTO GROUP, GARY Total: 511,159.47 Vendor: NICOR GAS NICOR GAS INV0012215 11/01/2021 UTIL 100‐42‐5510 140.65 NICOR GAS INV0012215 11/01/2021 UTIL 100‐43‐5510 46.06 NICOR GAS INV0012215 11/01/2021 UTIL 100‐45‐5510 72.81 NICOR GAS INV0012215 11/01/2021 UTIL 100‐46‐5510 21.42 NICOR GAS INV0012215 11/01/2021 UTIL 400‐00‐5510 394.37 NICOR GAS INV0012216 11/01/2021 UTIL 510‐31‐5510 167.52 NICOR GAS INV0012216 11/01/2021 UTIL 510‐32‐5510 5,050.47 Vendor NICOR GAS Total: 5,893.30 Vendor: PITNEY BOWES INC PITNEY BOWES INC 1018947626 11/01/2021 SVS AGREE 100‐04‐5310 464.28 Vendor PITNEY BOWES INC Total: 464.28 Vendor: PUCHALSKI GOODLOE MARZULLO LLP PUCHALSKI GOODLOE 0027 11/01/2021 PREP LUMBER 760‐00‐5110 2,442.16 Vendor PUCHALSKI GOODLOE MARZULLO LLP Total: 2,442.16 Vendor: RED WING BUSINESS ADVANTAGE RED WING BUSINESS 740‐1‐60017 11/01/2021 C SANDOZ UNIF 100‐33‐4510 197.99 RED WING BUSINESS 740‐1‐60177 11/01/2021 P PADRO UNIF 100‐33‐4510 171.59 Vendor RED WING BUSINESS ADVANTAGE Total: 369.58 Vendor: ROBINSON ENGINEERING LTD ROBINSON ENGINEERING LTD 21100040 11/01/2021 RIVERWALK SEWER RELOC PRJ 510‐32‐8500 535.14 Vendor ROBINSON ENGINEERING LTD Total: 535.14 Vendor: US BANK EQUIPMENT FINANCE US BANK EQUIPMENT FINANCE 455220335 11/01/2021 ADMIN RICOHS 620‐00‐5110 598.56 US BANK EQUIPMENT FINANCE 455800375 11/01/2021 PW COPIER 620‐00‐5110 336.21 Vendor US BANK EQUIPMENT FINANCE Total: 934.77 Vendor: VILLAGE OF ALGONQUIN VILLAGE OF ALGONQUIN 4087 10/27/2021 ADDL OFFICERS FOR EVENT 100‐01‐5110 1,242.67 Vendor VILLAGE OF ALGONQUIN Total: 1,242.67 Vendor: WINNEBAGO LANDFILL CO WINNEBAGO LANDFILL CO 8704 11/01/2021 SLUDGE 510‐32‐5580 5,038.80 Vendor WINNEBAGO LANDFILL CO Total: 5,038.80 Grand Total: 641,241.04 10/27/2021 11:35:19 AM 199 Expense Approval Register Packet: APPKT02223 ‐ 11‐1‐21‐AP CKS Fund Summary Fund Expense Amount 100 ‐ GENERAL FUND 578,488.18 225 ‐ ALARM BOARD FUND 3,809.00 270 ‐ MOTOR FUEL TAX FUND 11,577.56 400 ‐ RECREATION CENTER FUND 2,677.57 510 ‐ WATER/SEWER FUND 41,311.80 620 ‐ INFORMATION TECHNOLOGY FUND 934.77 760 ‐ POLICE PENSION FUND 2,442.16 Grand Total: 641,241.04 200 Expense Approval Register McHenry, IL #2 List of Bills Council Meeting ‐ 11‐1‐21 Vendor Name Payable Number Post Date Description (Item) Account Number Amount Vendor: 5 STAR SPORTS ACADEMY INC 5 STAR SPORTS ACADEMY INC 62021 11/01/2021 5 Star Sports Academy 100‐47‐5110 1,978.00 Vendor 5 STAR SPORTS ACADEMY INC Total: 1,978.00 Vendor: ADAMS ENTERPRISES INC, R A ADAMS ENTERPRISES INC, R A SO45247 11/01/2021 Marker lights 510‐35‐6110 104.00 Vendor ADAMS ENTERPRISES INC, R A Total: 104.00 Vendor: ADAMS STEEL SERVICE & SUPPLY, INC ADAMS STEEL SERVICE & 372817 11/01/2021 465 372817 100‐33‐5370 27.00 Vendor ADAMS STEEL SERVICE & SUPPLY, INC Total: 27.00 Vendor: AMERICAN SEALCOATING AMERICAN SEALCOATING 1229 11/01/2021 Park Improvements: Petersen 280‐41‐8800 24,500.00 Vendor AMERICAN SEALCOATING Total: 24,500.00 Vendor: APCO INTERNATIONAL INC APCO INTERNATIONAL INC 819662 11/01/2021 2022 Membership Dues 100‐23‐5430 893.00 Vendor APCO INTERNATIONAL INC Total: 893.00 Vendor: ARAMARK REFRESHMENT SERVICES LLC ARAMARK REFRESHMENT 546028 11/01/2021 Coffee Order #546028 100‐01‐6110 417.22 Vendor ARAMARK REFRESHMENT SERVICES LLC Total: 417.22 Vendor: AT&T LONG DISTANCE AT&T LONG DISTANCE 862102942‐5 11/01/2021 AT&T Long Distance 620‐00‐5320 1.57 Vendor AT&T LONG DISTANCE Total: 1.57 Vendor: AT&T AT&T 1012685608 11/01/2021 AT&T Fiber Internet 100M 620‐00‐5110 1,129.25 AT&T 7306175602 11/01/2021 Voice Over IP ‐ IP‐Flex 620‐00‐5320 372.62 AT&T 7444425604 11/01/2021 AT&T Network on Demand 620‐00‐5110 1,501.27 AT&T 7444425604 11/01/2021 AT&T Monthly Phone Invoice 620‐00‐5320 1,123.47 Vendor AT&T Total: 4,126.61 Vendor: AUTO TECH CENTERS INC AUTO TECH CENTERS INC INV068454 11/01/2021 803 (68454) 510‐35‐5370 586.07 AUTO TECH CENTERS INC inv068466 11/01/2021 813 inv068466 510‐35‐5370 185.28 AUTO TECH CENTERS INC INV068507 11/01/2021 425 (68507) 100‐33‐5370 526.98 Vendor AUTO TECH CENTERS INC Total: 1,298.33 Vendor: B & B NETWORKS, INC B & B NETWORKS, INC 24336 11/01/2021 Complete Link Number Porting 620‐00‐5320 465.00 Vendor B & B NETWORKS, INC Total: 465.00 Vendor: BENCE, JENNIFER BENCE, JENNIFER 91107B 10‐19‐21 11/01/2021 Cont ‐ Cupcake Club 100‐46‐5110 72.00 Vendor BENCE, JENNIFER Total: 72.00 Vendor: BERKHEIMER CO INC, G W BERKHEIMER CO INC, G W 922931 11/01/2021 Recreation Center 400‐00‐6110 134.16 BERKHEIMER CO INC, G W 924584 11/01/2021 Lab Hot Water Heater INV#13‐ 510‐32‐5375 638.75 Vendor BERKHEIMER CO INC, G W Total: 772.91 Vendor: CABAY & COMPANY INC CABAY & COMPANY INC 65039 11/01/2021 Cleaning Supplies 400‐00‐6111 380.09 CABAY & COMPANY INC 65082 11/01/2021 Cleaning Supplies 400‐00‐6111 388.42 CABAY & COMPANY INC 65148 11/01/2021 Cleaning Supplies 400‐00‐6111 340.73 CABAY & COMPANY INC 65184 11/01/2021 Cleaning Supplies 400‐00‐6111 572.29 Vendor CABAY & COMPANY INC Total: 1,681.53 10/27/2021 11:54:20 AM 201 Expense Approval Register Packet: APPKT02226 ‐ 11‐1‐21 RECT INV Vendor Name Payable Number Post Date Description (Item) Account Number Amount Vendor: CAREY ELECTRIC CAREY ELECTRIC 403278 11/01/2021 Electrical Repairs Riverwalk 100‐45‐5110 326.00 Vendor CAREY ELECTRIC Total: 326.00 Vendor: CINTAS CINTAS 5078859351 11/01/2021 Rec Center First Aid 400‐00‐6130 201.73 Vendor CINTAS Total: 201.73 Vendor: CLEAN BEE CLEANING SERVICES INC CLEAN BEE CLEANING SERVICES 15617 11/01/2021 Rec Center Carpet Cleaning 400‐00‐5110 1,106.10 Vendor CLEAN BEE CLEANING SERVICES INC Total: 1,106.10 Vendor: CLEAN CUT TREE CARE CLEAN CUT TREE CARE 6724 11/01/2021 Park Improvements: Knox Park 280‐41‐8800 11,000.00 Vendor CLEAN CUT TREE CARE Total: 11,000.00 Vendor: CURRAN CONTRACTING COMPANY CURRAN CONTRACTING 23251 11/01/2021 N50 Surface ‐ STS ‐ #23251 100‐33‐6110 133.06 Vendor CURRAN CONTRACTING COMPANY Total: 133.06 Vendor: CY ARMORY ‐ CONDITION YELLOW ACADEMY CY ARMORY ‐ CONDITION 607726 11/01/2021 Remington shot shell 100‐22‐6110 26.94 Vendor CY ARMORY ‐ CONDITION YELLOW ACADEMY Total: 26.94 Vendor: DREISILKER ELECTRIC MOTORS INC DREISILKER ELECTRIC MOTORS I197293 11/01/2021 Polymer unit new 90 V Dc 510‐32‐5375 731.71 Vendor DREISILKER ELECTRIC MOTORS INC Total: 731.71 Vendor: ED'S RENTAL & SALES INC ED'S RENTAL & SALES INC 343631‐1 11/01/2021 Inv# 343631‐1 Material lift for 510‐31‐6110 45.00 Vendor ED'S RENTAL & SALES INC Total: 45.00 Vendor: FISCHER BROS FRESH FISCHER BROS FRESH 16789 11/01/2021 Concrete ‐ STS ‐ 16789 100‐33‐6110 585.00 FISCHER BROS FRESH 16824 11/01/2021 Concrete ‐ STS ‐ 16824 100‐33‐6110 571.50 FISCHER BROS FRESH 16833 11/01/2021 Concrete ‐ STS ‐ 16833 100‐33‐6110 600.00 FISCHER BROS FRESH 16835 11/01/2021 Concrete ‐ STS ‐ 16835 100‐33‐6110 715.00 FISCHER BROS FRESH 16873 11/01/2021 Concrete ‐ STS ‐ 16873 100‐33‐6110 695.00 FISCHER BROS FRESH 16874 11/01/2021 Concrete ‐ STS ‐ 16874 100‐33‐6110 571.50 FISCHER BROS FRESH 16884 11/01/2021 Concrete ‐ STS ‐ 16884 100‐33‐6110 471.00 Vendor FISCHER BROS FRESH Total: 4,209.00 Vendor: FUN EXPRESS LLC FUN EXPRESS LLC 712425408‐01 11/01/2021 MMAC halloween 100‐47‐6110 86.69 Vendor FUN EXPRESS LLC Total: 86.69 Vendor: GALLS LLC GALLS LLC 019476417 11/01/2021 Uniform Order ‐ Wilbur 100‐23‐4510 25.20 GALLS LLC 019476822 11/01/2021 Uniform Order ‐ Shoemaker 100‐22‐4510 30.25 GALLS LLC 019502112 11/01/2021 Uniform Order ‐ Cruz 100‐22‐4510 18.10 GALLS LLC 019517024 11/01/2021 Uniform Order ‐ Clesen 100‐22‐4510 100.00 GALLS LLC 019520357 11/01/2021 Uniform Order 100‐22‐4510 572.72 GALLS LLC 019520540 11/01/2021 Uniform Order ‐ Leibach 100‐23‐4510 72.46 GALLS LLC 019520542 11/01/2021 Uniform Order ‐ Beidelman 100‐23‐4510 225.66 GALLS LLC 019521129 11/01/2021 Uniform Order ‐ Fisher 100‐22‐4510 65.38 Vendor GALLS LLC Total: 1,109.77 Vendor: GOLF ACADEMY AT TERRA COTTA LLC GOLF ACADEMY AT TERRA 1221‐467 11/01/2021 Fall Invoice Course Fee 100‐47‐5110 420.00 Vendor GOLF ACADEMY AT TERRA COTTA LLC Total: 420.00 Vendor: HAWKINS INC HAWKINS INC 6045371 11/01/2021 Hawkins Inv# 6045371 510‐31‐6110 3,807.34 HAWKINS INC 6047248 11/01/2021 Inv# 6047248 Chemical feed 510‐31‐6110 1,918.70 Vendor HAWKINS INC Total: 5,726.04 Vendor: HEARTLAND BUSINESS SYSTEMS, LLC HEARTLAND BUSINESS 471797‐H 11/01/2021 Microsoft Monthly M365 620‐00‐5110 4,058.87 HEARTLAND BUSINESS 472540‐H 11/01/2021 Cradlepoint Antenna Bracket 620‐00‐8300 18.84 10/27/2021 11:54:20 AM 202 Expense Approval Register Packet: APPKT02226 ‐ 11‐1‐21 RECT INV Vendor Name Payable Number Post Date Description (Item) Account Number Amount HEARTLAND BUSINESS 472540‐H 11/01/2021 External Cradlepoint Antenna 620‐00‐8300 89.89 Vendor HEARTLAND BUSINESS SYSTEMS, LLC Total: 4,167.60 Vendor: IMPACT NETWORKING LLC IMPACT NETWORKING LLC 2274136 11/01/2021 Copier Paper 100‐41‐6210 350.00 Vendor IMPACT NETWORKING LLC Total: 350.00 Vendor: IMPRESSIVE IMAGES IMPRESSIVE IMAGES 6834 11/01/2021 Ryan Cheney Clothing 510‐35‐4510 15.00 Vendor IMPRESSIVE IMAGES Total: 15.00 Vendor: INDUSTRIAL/ORGANIZATIONAL SOLUTIONS LLC INDUSTRIAL/ORGANIZATIONAL C51370A 11/01/2021 Front Line Supervisor Tests 100‐21‐5110 1,080.00 Vendor INDUSTRIAL/ORGANIZATIONAL SOLUTIONS LLC Total: 1,080.00 Vendor: IN‐PIPE TECHNOLOGY COMPANY INC IN‐PIPE TECHNOLOGY 2001 11/01/2021 Inv# 2001 Monthly service fee 510‐31‐5110 7,750.00 Vendor IN‐PIPE TECHNOLOGY COMPANY INC Total: 7,750.00 Vendor: INTERSTATE BILLING SERVICE INC INTERSTATE BILLING SERVICE 3025252962 11/01/2021 414 (3025252962) 100‐33‐5370 43.80 INTERSTATE BILLING SERVICE 3025290923 11/01/2021 415 (3025290923) 100‐33‐5370 195.00 Vendor INTERSTATE BILLING SERVICE INC Total: 238.80 Vendor: JENSEN SALES CO INC, LEE JENSEN SALES CO INC, LEE 0013076‐00 11/01/2021 8 to12" Pipe Plug w/ 4" bypass 510‐32‐5380 998.70 Vendor JENSEN SALES CO INC, LEE Total: 998.70 Vendor: KIMBALL MIDWEST KIMBALL MIDWEST 9288111 11/01/2021 kimball stock (9288111) 100‐33‐5370 273.34 Vendor KIMBALL MIDWEST Total: 273.34 Vendor: KOMLINE‐SANDERSON KOMLINE‐SANDERSON 42051439 11/01/2021 1.5 BFP Side gaskets/Discharge 510‐32‐5375 190.92 Vendor KOMLINE‐SANDERSON Total: 190.92 Vendor: LANG AUTO GROUP, GARY LANG AUTO GROUP, GARY 5061119 11/01/2021 428 (5061119) 100‐33‐5370 198.43 Vendor LANG AUTO GROUP, GARY Total: 198.43 Vendor: MAD BOMBER FIREWORKS MAD BOMBER FIREWORKS 1962 11/01/2021 Light the Night Fireworks 100‐41‐6920 3,500.00 Vendor MAD BOMBER FIREWORKS Total: 3,500.00 Vendor: MAGIC OF GARY KANTOR MAGIC OF GARY KANTOR 1221‐504 11/01/2021 Cont ‐ Magic Workshop 100‐46‐5110 84.00 Vendor MAGIC OF GARY KANTOR Total: 84.00 Vendor: MCCANN INDUSTRIES INC MCCANN INDUSTRIES INC P10017 11/01/2021 485 (p10017) 100‐33‐5370 599.96 Vendor MCCANN INDUSTRIES INC Total: 599.96 Vendor: MCHENRY MARLINS AQUATIC CLUB MCHENRY MARLINS AQUATIC 324 11/01/2021 MMAC Fee PX3 Welcome to 100‐47‐5110 87.00 Vendor MCHENRY MARLINS AQUATIC CLUB Total: 87.00 Vendor: MEADE INC MEADE INC 698127 11/01/2021 Traffic Signal Maint. #698127 100‐33‐5110 1,116.72 Vendor MEADE INC Total: 1,116.72 Vendor: MENDEZ LANDSCAPING & BRICK PAVERS INC MENDEZ LANDSCAPING & 11439 11/01/2021 Brick Repair/Replace Riverwalk 290‐00‐8900 7,500.00 MENDEZ LANDSCAPING & 11442 11/01/2021 Petersen Park sportcourt 100‐45‐5110 1,500.00 MENDEZ LANDSCAPING & 11455 11/01/2021 Contractual Riverwalk 100‐45‐5110 1,000.00 Vendor MENDEZ LANDSCAPING & BRICK PAVERS INC Total: 10,000.00 Vendor: METRO DOOR AND DOCK INC METRO DOOR AND DOCK INC 61826 11/01/2021 Shop Repairs 100‐45‐5110 1,687.40 Vendor METRO DOOR AND DOCK INC Total: 1,687.40 10/27/2021 11:54:20 AM 203 Expense Approval Register Packet: APPKT02226 ‐ 11‐1‐21 RECT INV Vendor Name Payable Number Post Date Description (Item) Account Number Amount Vendor: MID AMERICAN WATER OF WAUCONDA INC MID AMERICAN WATER OF 243478W 11/01/2021 Repair clamps 510‐31‐6110 707.08 Vendor MID AMERICAN WATER OF WAUCONDA INC Total: 707.08 Vendor: MIDWEST ENVIRONMENTAL SALES CO INC MIDWEST ENVIRONMENTAL 18178 11/01/2021 Filters for infarred 510‐35‐6110 1,275.00 Vendor MIDWEST ENVIRONMENTAL SALES CO INC Total: 1,275.00 Vendor: MIDWEST FUEL INJECTION MIDWEST FUEL INJECTION N587449 11/01/2021 E.Dartmoor Fuel Injector Pump 510‐32‐5380 929.36 Vendor MIDWEST FUEL INJECTION Total: 929.36 Vendor: MIDWEST HOSE AND FITTINGS INC MIDWEST HOSE AND FITTINGS 213429 11/01/2021 E.Dartmoor Fuel Line 510‐32‐5380 5.42 MIDWEST HOSE AND FITTINGS 213590 11/01/2021 6"x4" Pump hose reducer 510‐32‐5380 132.85 Vendor MIDWEST HOSE AND FITTINGS INC Total: 138.27 Vendor: MILLER MONUMENT COMPANY MILLER MONUMENT 9‐10‐21 11/01/2021 Repair of Monument at 100‐41‐5110 495.00 Vendor MILLER MONUMENT COMPANY Total: 495.00 Vendor: MINUTEMAN PRESS OF MCH MINUTEMAN PRESS OF MCH 96205 11/01/2021 Parks Signage 100‐45‐6110 163.60 Vendor MINUTEMAN PRESS OF MCH Total: 163.60 Vendor: NATURESCAPE DESIGN INC NATURESCAPE DESIGN INC 80517 11/01/2021 RIverwalk Irrigation shutdown 100‐45‐5110 325.00 Vendor NATURESCAPE DESIGN INC Total: 325.00 Vendor: NBS CALIBRATIONS NBS CALIBRATIONS 00127343 11/01/2021 Scale Calibration 510‐32‐6110 124.00 Vendor NBS CALIBRATIONS Total: 124.00 Vendor: NORTHWEST ELECTRICAL SUPPLY CO INC NORTHWEST ELECTRICAL 17515596 11/01/2021 Electrical Supplies 100‐45‐6110 1,230.00 NORTHWEST ELECTRICAL 17515781 11/01/2021 Electrical Supplies 100‐45‐6110 2.23 NORTHWEST ELECTRICAL 17516705 11/01/2021 Electrical Supplies 100‐45‐6110 275.00 Vendor NORTHWEST ELECTRICAL SUPPLY CO INC Total: 1,507.23 Vendor: NORTHWESTERN MEDICINE OCC HEALTH NORTHWESTERN MEDICINE 518060 11/01/2021 Randoms (Dillon, Johnson) 100‐05‐5110 135.00 Vendor NORTHWESTERN MEDICINE OCC HEALTH Total: 135.00 Vendor: OFFICIAL FINDERS LLC OFFICIAL FINDERS LLC 4607 11/01/2021 Invoice 4607 100‐47‐5110 875.00 Vendor OFFICIAL FINDERS LLC Total: 875.00 Vendor: OLSEN SAFETY EQUIPMENT CORP OLSEN SAFETY EQUIPMENT 0392243‐IN 11/01/2021 Gloves 510‐35‐6110 52.80 Vendor OLSEN SAFETY EQUIPMENT CORP Total: 52.80 Vendor: PETROCHOICE LLC PETROCHOICE LLC 50699958 11/01/2021 Fuel ‐ UTY ‐ 50699958 510‐35‐6250 656.62 PETROCHOICE LLC 50699974 11/01/2021 Fuel ‐ WW ‐ 50699974 510‐32‐6250 733.51 PETROCHOICE LLC 50699975 11/01/2021 Fuel ‐ WTR ‐ 50699975 510‐31‐6250 144.07 PETROCHOICE LLC 50699977 11/01/2021 Fuel ‐ STS ‐ 50699977 100‐33‐6250 1,460.19 PETROCHOICE LLC 50699978 11/01/2021 Fuel ‐ 50699978 100‐22‐6250 3,745.55 PETROCHOICE LLC 50707220 11/01/2021 Fuel ‐ UTY ‐ 50707220 510‐35‐6250 102.84 PETROCHOICE LLC 50707232 11/01/2021 Fuel ‐ WW ‐ 50707232 510‐32‐6250 381.51 PETROCHOICE LLC 50707233 11/01/2021 Fuel ‐ WTR ‐ 50707233 510‐31‐6250 163.90 PETROCHOICE LLC 50707234 11/01/2021 Fuel # 50707234 100‐45‐6250 316.53 PETROCHOICE LLC 50707235 11/01/2021 Fuel ‐ STS ‐ 50707235 100‐33‐6250 1,814.88 Vendor PETROCHOICE LLC Total: 9,519.60 Vendor: PURICH, CHRISTINE PURICH, CHRISTINE 1221‐501 11/01/2021 Cont ‐ Halloween Make‐up 100‐46‐5110 175.00 Vendor PURICH, CHRISTINE Total: 175.00 10/27/2021 11:54:20 AM 204 Expense Approval Register Packet: APPKT02226 ‐ 11‐1‐21 RECT INV Vendor Name Payable Number Post Date Description (Item) Account Number Amount Vendor: REINDERS INC REINDERS INC 1903012‐00 11/01/2021 Equipment repair 100‐45‐5370 204.17 Vendor REINDERS INC Total: 204.17 Vendor: SUBURBAN PROPANE, L.P. SUBURBAN PROPANE, L.P. 68595 11/01/2021 Propane ‐ STS ‐ #68595 100‐33‐6110 105.75 Vendor SUBURBAN PROPANE, L.P. Total: 105.75 Vendor: SZKLARZEWSKI, KAYLEE SZKLARZEWSKI, KAYLEE 1221‐466 11/01/2021 Fall Invoice for Instructor 100‐47‐5110 760.00 Vendor SZKLARZEWSKI, KAYLEE Total: 760.00 Vendor: THE RETAIL COACH, LLC THE RETAIL COACH, LLC 3728 11/01/2021 Retail Coach Final‐200 day 100‐06‐5110 4,375.00 Vendor THE RETAIL COACH, LLC Total: 4,375.00 Vendor: TONYAN, LUCY TONYAN, LUCY 1221‐500 11/01/2021 Cont ‐ Young Artists 100‐46‐5110 410.40 Vendor TONYAN, LUCY Total: 410.40 Vendor: TOWN PLANNER TOWN PLANNER 220033 11/01/2021 Ads‐MMP,SND,PARKS,PW 100‐01‐5110 600.00 Vendor TOWN PLANNER Total: 600.00 Vendor: TRAFFIC CONTROL & PROTECTION INC TRAFFIC CONTROL & 109986 11/01/2021 Speed Limit / Street Signs 100‐33‐6110 4,167.80 Vendor TRAFFIC CONTROL & PROTECTION INC Total: 4,167.80 Vendor: VISION FOR CHANGE LLC VISION FOR CHANGE LLC 10062105 11/01/2021 CIT Dispatch ‐ Barrows 100‐23‐5430 99.00 Vendor VISION FOR CHANGE LLC Total: 99.00 Vendor: WATER PRODUCTS ‐ AURORA WATER PRODUCTS ‐ AURORA 0305871 11/01/2021 Repair clamps 510‐31‐6110 316.80 Vendor WATER PRODUCTS ‐ AURORA Total: 316.80 Vendor: WELCH BROS INC WELCH BROS INC 3153911 11/01/2021 Covid ‐ Precast Barrier Removal 100‐33‐6110 350.00 WELCH BROS INC 3153912 11/01/2021 Covid ‐ Precast Barrier Removal 100‐33‐6110 350.00 WELCH BROS INC 3153913 11/01/2021 Covid Barriers Rental 8/14 ‐ 100‐33‐6110 1,400.00 Vendor WELCH BROS INC Total: 2,100.00 Grand Total: 123,357.94 10/27/2021 11:54:20 AM 205 Expense Approval Register Packet: APPKT02226 ‐ 11‐1‐21 RECT INV Fund Summary Fund Expense Amount 100 ‐ GENERAL FUND 45,776.41 280 ‐ DEVELOPER DONATION FUND 35,500.00 290 ‐ TIF FUND 7,500.00 400 ‐ RECREATION CENTER FUND 3,123.52 510 ‐ WATER/SEWER FUND 22,697.23 620 ‐ INFORMATION TECHNOLOGY FUND 8,760.78 Grand Total: 123,357.94 206 Department of Community & Economic Development McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2170 Fax: (815) 363-2173 www.cityofmchenry.org REGULAR AGENDA SUPPLEMENT TO: Mayor and City Council FOR: November 1, 2021 Regular City Council Meeting FROM: Ross Polerecky, Director of Community Development RE: Annexation of 1205 Charles Street ATT: 1. Location Map 3. Ordinance annexing property located at 1205 Charles Street 4. Plat of Annexation AGENDA ITEM SUMMARY: The property located at 1205 Charles Street was recently connected to city sewer. Connecting to city water or sewer requires that the property be annexed. Attached is an ordinance annexing 1205 Charles Street to the City of McHenry. BACKGROUND: A recent failure of the septic system at 1205 Charles Street required the owners to hook into the City of McHenry sewer system. By ordinance the property is required to annex to the City if the property is contiguous. The property, per the City of McHenry’s zoning ordinance must be zoned the most restrictive residential zoning by lot size therefore 1205 Charles will be zoned RS-4. RECOMMENDATION: Therefore, if the City Council concurs, it is recommended that the attached ordinance annexing the property at 1205 Charles Street be approved: 1. AN ORDINANCE ANNEXING PROPERTY COMMONLY KNOWN AS 1205 CHARLES STREET IN MCHENRY COUNTY, ILLINOIS (MAYOR AND CITY COUNCIL) WITH A ZONING CLASSIFICATION OF RS-4 207 Department of Community & Economic Development McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2170 Fax: (815) 363-2173 www.cityofmchenry.org LOCATION MAP: 1205 Charles Street 208 Department of Community & Economic Development McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2170 Fax: (815) 363-2173 www.cityofmchenry.org ORDINANCE NO. 21- AN ORDINANCE ANNEXING PROPERTY COMMONLY KNOWN AS 1205 CHARLES STREET IN MCHENRY COUNTY, ILLINOIS WITH A ZONING CLASSIFICATION OF RS-4 WHEREAS, the City of McHenry, McHenry County, Illinois, is a home rule municipality as contemplated under Article VII, Section 6, of the Constitution of the State of Illinois, and the passage of this Ordinance constitutes an exercise of the City’s home rule powers and functions as granted in the Constitution of the State of Illinois; and WHEREAS, a written petition has been filed with the City Clerk requesting annexation of said real estate to the City legally described on “Exhibit A”, attached hereto and incorporated herein, the “SUBJECT PROPERTY”, along with a complete and accurate plat of said real estate incorporated herein and attached hereto on “Exhibit B”, and which petition has been filed in accordance with 65 ILCS 5/7-1-8; and WHEREAS, said real estate is not located within any other municipality or subject to an annexation agreement with any other municipality, and said real estate is presently contiguous to and may be annexed to the City in accordance with 65 ILCS 5/7-1-1, et seq.; and WHEREAS, the City of McHenry does not provide library or fire protection services to said real estate, so notice to the Fire Protection District or Public Library District of the annexation of said real estate is not required; and WHEREAS, the City has determined that the annexation of said real estate is in the best interest of the City, will promote sound planning and growth of the City, and otherwise enhance and promote the general welfare of the City and its residents. NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF MCHENRY, MCHENRY COUNTY, ILLINOIS AS FOLLOWS: SECTION 1: That the SUBJECT PROPERTY be and the same is hereby annexed to and made a part of the corporate limits of the City of McHenry, including any and all portions of adjacent street, roads or highways as provided by law. SECTION 2: The City Clerk is hereby directed to cause a certified copy of this ordinance, together with said plat, to be recorded in the Office of the Recorder of Deeds of McHenry County, Illinois. Following the recordation of this ordinance and plat, a copy thereof shall be filed in the Office of the Clerk of McHenry County, Illinois. 209 Department of Community & Economic Development McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2170 Fax: (815) 363-2173 www.cityofmchenry.org SECTION 3: This Ordinance shall be published in pamphlet form by and under the authority of the corporate authorities of the City of McHenry, McHenry County, Illinois. SECTION 4: This Ordinance shall be in full force and effect from and after its passage, approval, and publication in pamphlet form as provided by law. PASSED THIS DAY OF , 2021 AYES: NAYS: ABSTAINED: ABSENT: NOT VOTING: APPROVED THIS DAY OF , 2021 MAYOR ATTEST: CITY CLERK 210 Department of Community & Economic Development McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2170 Fax: (815) 363-2173 www.cityofmchenry.org EXHIBIT A LEGAL DESCRIPTION OF THE SUBJECT PROPERTY THE SOUTHERNLY ½ OF LOTS 1 AND 2 IN BLOCK 7 IN THE VILLAGE OF MCHENRY (EAST OF THE FOX RIVER); SAID BLOCK LOCATED IN AND BEING A PART OF THE SOUTHEAST ¼ OF SECTION 26, TOWNSHIP 45 NORTH, RANGE 8, EAST OF THE THIRD PRINCIPAL MERIDIAN, IN MCHENRY COUNTY, ILLINOIS. 211 Department of Community & Economic Development McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2170 Fax: (815) 363-2173 www.cityofmchenry.org EXHIBIT B PLAT OF ANNEXATION OF SUBJECT PROPERTY (ON FILE WITH THE OFFICE OF THE CITY CLERK)\ 212 213 Department of Community & Economic Development McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2170 Fax: (815) 363-2173 www.cityofmchenry.org REGULAR AGENDA SUPPLEMENT TO: Mayor and City Council FOR: November 1, 2021 Regular City Council Meeting FROM: Cody Sheriff, City Planner RE: Ordinance granting a Use Variation and Zoning Variations for a 3 -unit multifamily building at 3807 Main Street ATT: 1. Unapproved Planning and Zoning Commission Minutes dated October 20, 2021 2. Ordinance granting a Use Variation and Zoning Variations for a 3-unit multifamily building at 3807 Main Street. 3. Planning & Zoning Commission Staff Report 4. Application Packet AGENDA ITEM SUMMARY: The petitioner, Walter and Teresa Truskowski Trust, is request approv al of a Use Variation to allow the existing 3-unit multifamily residence at 3807 Main Street to continue to operate. The property will also need to receive approval of the following zoning items to accommodate the development: 1. Variation to allow a minimum lot area of 8,766.72 square feet in lieu of the required 15,000 square feet. 2. Variation to allow an interior side yard setback 4 feet in lieu of the required 6 feet for the existing garage. 3. Variation to allow a rear yard setback of 4 feet in lieu of the r equired 6.25 feet for the existing garage. 4. Any other variations necessary to accommodate the existing development. BACKGROUND: The subject property was granted a Use Variation to allow a duplex residential building on August 15, 1977. Since that time, a 3rd unit was unlawfully constructed in the basement. As City Council 214 Department of Community Development McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2170 Fax: (815) 363-2173 www.cityofmchenry.org may recall from similar requests, the goal of the Community Development Department is to bring long existing unlawful residential units into compliance with building regulations for the safety of the occupants. The department has already performed a walk through of the residence and the property owner will need to correct all deficiencies noted from the inspection. PLANNING & ZONING COMMISSION DISCUSSION & RECOMMENDATION: The Planning & Zoning Commission agreed with staff’s recommendation that the safety of the occupants is the number one concern and unanimously recommended approval subject to appropriate conditions outlined in the attached ordinance. If the City Council concurs, it is recommended the attached ordinance granting a Use Variation, and Zoning Variations for a 3-unit multifamily building at 3807 Main Street . (City Council vote- simple majority). 215 Department of Community Development McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2170 Fax: (815) 363-2173 www.cityofmchenry.org Unapproved Planning & Zoning Commission Minutes from October 20, 2021 File No. Z-1002 Walter and Teresa Truszkowski Trust Use Variation and Zoning Variations for a 3 -Unit Multifamily Building at 3807 Main Street Chairwoman Rockweiler called the hearing to order at 7:05 p.m. regarding File No Z-1002 a Use Variation and Zoning Variations for a 3-Unit Multifamily Building at the subject property, commonly known as 3807 Main Street. Chairwoman Rockweiler confirmed all legal posting requirements have been met. Mr. Walter Truszkowski, 5123 Carlsburg Place, Palm Harbor, FL was sworn in and stated he is trying to change his property to be allowed for a 3-unit building. That was the way he bought it and wants it to comply. City Planner Sheriff provided the Commission with the Staff Report regarding th is file stating the subject property was granted a Use Variation to allow a duplex residential building by in 1977. A potential buyer interested in the property contacted the city to confirm zoning status of the existing 3-unit multifamily residence. It was at this time staff notified the buyer that the property was only approved for a duplex and the basement unit was unlawfully established. The petitioner needs to receive approval of the Use Variation to allow the third unit to remain on the property. Staff believes the third unit has existed on the property for at least ten years. . The subject property is currently zoned RS-4 High Density Single-Family District. A multifamily residence is not permitted within the RS-4 District; however, the surrounding land use appears to also consist of nonconforming multifamily residential dwellings. Originally approved for a duplex, staff does not believe an additional dwelling unit on the site creates any adverse impacts. Overall, staff believes the proposed use of the property is in substantial conformance with the City’s Comprehensive Plan and Development Policies. The Community Development Department has been working closely with the petitioner and a walk through will be performed by a building inspector. The petitioner will be required to address all building code violations that result from the inspection. Given the longevity of the use and the minimal impact on the surrounding property owners, staff does not object to the petitioner’s request and recommends approval subject to appropriate conditions. If the Planning & Zoning Commission agrees with staff’s assessment, then two separate motions were presented and recommended. 216 Department of Community Development McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2170 Fax: (815) 363-2173 www.cityofmchenry.org Chairwoman Rockweiler invited questions and/or comments from the Commissioners. Commissioner Davis inquired as to the minimum lot area for clarification and whether the third unit was already there and there are no additional units being added. Planner Sheriff clarified. There were no questions from Commissioners Sobotta, Bremer, Walsh, Smale, or Lehman. Chairwoman Rockweiler invited questions and/or comments from the Public. There were no comments from the public. Chairwoman Rockweiler closed the public comment portion of the hearing at 7:13 p.m. Commissioner Davis had no questions and stated he is satisfied there will be no safety issues. Commissioners Walsh, Smale, and Sobotta agree with Commissioner Davis. Commissioner Lehman had no concerns since it is already in existence and safe by city standards. Commissioner Bremer asked, in response to Planner Sheriff’s statement regarding cleaning up this and similar units in the area, how many other similar units are there that are nonconforming that will need to be addressed. Planner Sheriff stated there are several in the area and the City ty pically learns about them when a financial institution requests a zoning verification letter and that starts the process. Chairwoman Rockweiler agrees and believes the staff report was thorough. Motion by Bremer seconded by Lehman with regard to File No. Z-1002, to recommend approval of the petitioner’s request for a Use Variance to allow a 3-Unit Multifamily Building at 3807 Main Street as outlined in the Staff Report, as presented, subject to the following conditions: 1. A building permit shall be obtained within six (6) months from the date of approval by City Council to address all building code violations. 2. All other federal, state, and local laws shall be met. and by making said motion, we agree with Staff’s assessment that the approval criteria for Use Variations have been met as outlined in the Staff Report. Roll Call: Vote: 7-ayes: Bremer, Davis, Lehman, Rockweiler, Smale, Sobotta and Walsh. 0-nays, 0-abstained, 0-absent. Motion Carried. Motion by Davis seconded by Lehman with regard to File No. Z-1002, to recommend approval of the petitioner’s request for the following Zoning Variations as outlined in the Staff Report, as presented: 217 Department of Community Development McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2170 Fax: (815) 363-2173 www.cityofmchenry.org 1. Variation to allow a minimum lot area of 8,766.72 square feet in lieu of the required 15,000 square feet. 2. Variation to allow an interior side yard setback 4 feet in lieu of the required 6 feet for the existing garage. 3. Variation to allow a rear yard setback of 4 feet in lieu of the required 6.25 feet for the existing garage. 4. Any other zoning variations necessary to accommodate the existing development. and by making said motion, we agree with Staff’s assessment that the approval criteria for Use Variations have been met as outlined in the Staff Report. Roll Call: Vote: 7-ayes: Bremer, Davis, Lehman, Rockweiler, Smale, Sobotta and Walsh. 0-nays, 0-abstained, 0-absent. Motion Carried. Chairwoman Rockweiler closed the hearing regarding File No. Z-1002 at 7:20 p.m. 218 Department of Community Development McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2170 Fax: (815) 363-2173 www.cityofmchenry.org ORDINANCE NO 21- ORDINANCE GRANTING A USE VARIATION, AND ZONING VARIATIONS FOR A 3-UNIT MULTIFAMILY BUILDING AT 3807 MAIN STREET WHEREAS, the City of McHenry, McHenry County, Illinois, is a home rule municipality as contemplated under Article VII, Section 6, of the Constitution of the State of Ill inois, and the passage of this Ordinance constitutes an exercise of the City’s home rule powers and functions as granted in the Constitution of the State of Illinois; and WHEREAS, a petition has been filed with the City by Walter and Teresa Truszkowski Trust (“PROPERTY OWNER”) requesting approval of a Use Variation, and Zoning Variations for an existing 3-unit multifamily building for the property located at 3807 Main Street and legally described on Exhibit “A” attached hereto and incorporated herein, the “SUBJECT PROPERTY”; and WHEREAS, a public hearing on said petition was held before the Planning and Zoning Commission on October 20, 2021 in the manner prescribed by ordinance and statute, and as a result of said hearing, the Planning and Zoning Commission did recommend to the City Council the granting of the requested Use Variation and Zoning Variations; and WHEREAS, the City Council has considered the evidence and recomme ndations from the Planning and Zoning Commission and finds that the approval of the requested Use Variation and Zoning Variations are consistent with the objectives of the City of McHenry Zoning Ordinance to protect the public health, safety, morals and general welfare of its residents. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF MCHENRY, MCHENRY COUNTY, ILLINOIS, AS FOLLOWS: SECTION 1: That the SUBJECT PROPERTY is hereby granted a Use Variation to operate a 3-unit, multifamily building subject to the following conditions: 1. A building permit shall be obtained within six (6) months from the dat e of approval by City Council to address all building code violations. 2. All other federal, state, and local laws shall be met. 219 Department of Community Development McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2170 Fax: (815) 363-2173 www.cityofmchenry.org SECTION 2: In granting said Use Variation, the City Council finds that the Approval Criteria for Use Variances listed in §11-19-6 of the City of McHenry Zoning Ordinance have been met. SECTION 3: That the SUBJECT PROPERTY is hereby granted approval of the following Variances: 1. Variation to allow a minimum lot area of 8,766.72 square feet in lieu of the required 15,000 square feet. 2. Variation to allow an interior side yard setback 4 feet in lieu of the required 6 feet for the existing garage. 3. Variation to allow a rear yard setback of 4 feet in lieu of the required 6.25 feet for the existing garage. 4. Any other variations necessary to accommodate the existing development. SECTION 4: In granting said Variances, the City Council finds that the Approval Criteria for Variances listed in §11-19-5 of the City of McHenry Zoning Ordinance have been met. SECTION 5: This Ordinance shall be published in pamphlet form by and under the authority of the corporate authorities of the City of McHenry, McHenry County, Illinois. SECTION 6: This Ordinance shall be in full force and effect from and after its passage, approval, and publication in pamphlet form as provided by law. Passed this 1st day of November, 2021. Ayes Nays Absent Abstain Alderman Devine _____ _____ _____ _____ Alderman Glab _____ _____ _____ _____ Alderman Harding _____ _____ _____ _____ Alderman Strach _____ _____ _____ _____ Alderwoman Miller _____ _____ _____ _____ Alderman Santi _____ _____ _____ _____ Alderman McClatchey _____ _____ _____ _____ ______________________ ________________________ Wayne Jett, Mayor Trisha Ramel, City Clerk 220 Department of Community Development McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2170 Fax: (815) 363-2173 www.cityofmchenry.org Exhibit A Legal Description of the Subject Property LOT 2 IN BLOCK 5 IN THE ORIGINAL PLAT OF WEST MCHENRY, ACCORDING TO THE PLAT THEREOF RECORDED JUNE 14, 1859, IN BOOK 24 OF DEEDS, PAGE 22, ALL IN THE SOUTHWEST QUARTER OF SECTION 26, TOWNSHIP 45 NORTH, RANGE 8, EAST OF THE THIRD PRINCIPAL MERIDIAN, IN MCHENRY COUNTY, ILLINOIS. 221 222 223 224 Staff Report for the City of McHenry Planning & Zoning Commission Staff Comments The following comments and conclusions are based upon staff analysis and review prior to this hearing and are to be considered viable unless evidence is established to the contrary. Staff may have additional comments based upon the testimony presented during the public hearing. BACKGROUND & REQUEST SUMMARY The petitioner, Walter and Teresa Truszkowski Trust (Owner of Record), is requesting approval of a Use Variation to allow a 3-unit multifamily residence at 3807 Main Street. The property will also need to receive approval of the following Zoning Variations to accommodate the development: 1. Variation to allow a minimum lot area of 8,766.72 square feet in lieu of the required 15,000 square feet. 2. Variation to allow an interior side yard setback 4 feet in lieu of the required 6 feet for the existing garage. 3. Variation to allow a rear yard setback of 4 feet in lieu of the required 6.25 feet for the existing garage. 4. Any other variations necessary to accommodate the existing development. The subject property was granted a Use Variation to allow a duplex residential building by Ordinance O-77-116 on August 15, 1977. A potential buyer interested in the property contacted the city to confirm zoning status of the existing 3-unit multifamily residence. It was at this time staff notified the buyer that the property was only approved for a duplex and the basement unit was unlawfully established. The petitioner will need to receive approval of the Use Variation to allow the third unit to remain on the property. The principal structure was constructed in 1988. Staff believes the 3rd unit has existed on the property for at least ten years based upon google earth photos. CITY OF MCHENRY ORDINANCES • The petitioner must meet the Approval Criteria for Use Variances, listed in §11-19-6 of the City of McHenry Zoning Ordinance. • The petitioner must meet the Approval Criteria for Variances, listed in §11-19-5 of the City of McHenry Zoning Ordinance. STAFF ANALYSIS CURRENT LAND USE AND ZONING The subject property is currently zoned RS-4 High Density Single-Family District. A multifamily residence is not permitted within the RS-4 District; however, the surrounding land use appears to also consist of nonconforming multifamily residential dwellings. Originally approved for a duplex, staff does not believe an additional dwelling unit on the site would create any adverse impacts. FUTURE LAND USE MAP RECOMMENDATION The future land use map recommends medium density residential on the subject property. The property is somewhat in compliance with the recommendation. 225 COMPREHENSIVE PLAN OBJECTIVES AND POLICIES Overall, staff believes the proposed development is consistent with the City’s Comprehensive Plan objectives and policies. Staff comments italicized. • Land Use, Objective – Allow a mixture of land uses in appropriate areas to promote responsible growth while providing a high quality of life to the residents. o Policy – “Preserve and expand areas of residential land use.” (p. 27) Approval of the applicant’s request would preserve and expand areas of residential land use. • Neighborhood Character, Objective – Promote Downtown Housing. o Policy – “Approve high-density multi-family residential in conjunction with commercial retail to create a mixed-use area.” (p. 48) Being within walking distance to the Historic Downtown, approval of the request would promote having multifamily land use within walking distance of commercial businesses. STAFF RECOMMENDATION & ANALYSIS In summary, staff believes the proposed use of the property is in substantial conformance with the City’s Comprehensive Plan and Development Policies. The Community Development Department has been working closely with the petitioner and at the time of writing this staff report is scheduled to have a walk through performed by our building inspector. From a Code Enforcement perspective, it is difficult for the City to monitor and track these dwellings. The safety of the occupants of the building is the number one priority of the Community Development Department. The petitioner will be required to address all building code violations that result from the inspection. Given the longevity of the use and the minimal impact on the surrounding property owners, staff does not object to the petitioner’s request and recommends approval subject to appropriate conditions. If the Planning & Zoning Commission agrees with staff’s assessment, then two separate motions are recommended: 1st MOTION: I motion to approve the petitioner’s request for a use variance to allow a 3-unit multifamily building at 3807 Main Street subject to the following conditions: 1. A building permit shall be obtained within six (6) months from the date of approval by City Council to address all building code violations. 2. All other federal, state, and local laws shall be met. AND by making said motion, I agree with staff’s assessment that the approval criteria for Use Variations have been met as outlined in the Staff Report. APPROVAL CRITERIA FOR USE VARIANCES (§11-19-6) A. Practical Difficulties or Particular Hardship: For reasons fully set forth in the written findings, the strict application of the provisions of this title relating to the use of the buildings or structures, or the use of the land, would result in unnecessary and undue hardship upon the applicant, as distinguished from mere inconvenience. Staff believes the strict application of the provisions of the Zoning Ordinance would result in an unnecessary and undue hardship. B. Reasonable Return: The property cannot yield a reasonable return if permitted to be used only under the conditions allowed by the regulations in this title for the pertinent zoning district. 226 Staff believes the subject property cannot yield a reasonable return if permitted to be used only under the conditions allowed by the regulations. C. Unique Circumstance: Special circumstances, fully described in the written findings, exist that are peculiar to the property for which the use variance is sought and that they do not apply generally to other properties in the same zoning district. Staff does believe the request is under special circumstances uniquely for this property because the property has operated for over 10 years as a nonconforming multifamily building in a single-family residential district. D. Not Alter Local Character: The granting of the use variance will not alter the essential character of the locality, nor substantially impair environmental quality, property values or public safety or welfare in the vicinity. Staff does not believe approval of the request will generate any adverse impacts on the surrounding area. Bringing the property into compliance with building regulations will have a positive impact on property values. E. Consistent With Title And Comprehensive Plan: The granting of a use variance will be in harmony with the general purpose and intent of this title and of the Comprehensive Plan of the City. Staff believes the overall request is consistent with the Title and Comprehensive Plan of supporting multifamily development near the Downtown. 2nd MOTION: I motion to approve the petitioner’s request for the following zoning variations: 1. Variation to allow a minimum lot area of 8,766.72 square feet in lieu of the required 15,000 square feet. 2. Variation to allow an interior side yard setback 4 feet in lieu of the required 6 feet for the existing garage. 3. Variation to allow a rear yard setback of 4 feet in lieu of the required 6.25 feet for the existing garage. 4. Any other zoning variations necessary to accommodate the existing development. AND by making said motion I agree with staff’s assessment that the approval criteria for zoning variances have been met as outlined in the staff report. VARIANCE APPROVAL CRITERIA (11-19-5). Comments of staff italicized below. A. Special Circumstances Not Found Elsewhere. Staff believes this is an unusual circumstance since the property has operated for at least 10 years with only one minor property maintenance violation (garbage bin left out too long). B. Circumstances Relate to the Property Only. Staff believes this is a special circumstance since the property has already operated for at least 10 years. C. Not Resulting From Applicant Action. The applicant did not create the 3-unit building. D. Unnecessary Hardship. Staff believes if the city enforces the ordinance that it would cause undue hardship since the property has operated for at least 10 years as a 3-unit residence. E. Preserves Rights Conferred By District: Staff believes this does not confer a special privilege for the subject property. F. Necessary For Use Of Property: Staff believes that without approval, the petitioner would be denied reasonable use and enjoyment of the property. G. Not Alter Local Character: 227 Staff believes approval of the applicant’s request would not substantially alter essential character of the locality nor have any other adverse impacts. Improvements to the subject property would positively impact the surrounding area. H. Consistent With Title And Plan: Staff believes the proposal is appropriate given its proximity to the downtown which is consistent with the Comprehensive Plan recommendation for increasing overall density in the downtown. I. Minimum Variance Recommended: Staff believes the proposed variance requests are the minimum required. 228 SHAW MEDIA EST. 1851 PO BOX 250 CRYSTAL LAKE IL 60039-0250 (815)459-4040 ORDER CONFIRMATION Salesperson: BARBARA BEHRENS Printed at 10/04/21 09:56 by bbehr-sm ----------------------------------------------------------------------------- Acct #: 10069745 Ad #: 1924974 Status: New WHOLD MCHENRY COUNTY PREPAID LEGALS Start: 10/05/2021 Stop: 10/05/2021 PO BOX 250 Times Ord: 1 Times Run: *** CRYSTAL LAKE IL 60014 CLEG 1.00 X 79.00 Words: 242 Total CLEG 79.00 Class: C8100 PUBLIC NOTICES Rate: LEGAL Cost: 121.36 # Affidavits: 2 Ad Descrpt: FILE Z -1002 TRUSZKOWSKI Contact: LEGAL CLERK Descr Cont: 1924974 Phone: (815)459-4040 Given by: WALTR TRUSZKOWKSI Fax#: P.O. #: Email: Created: bbehr 10/04/21 09:40 Agency: Last Changed: bbehr 10/04/21 09:47 ----------------------------------------------------------------------------- URL: _________________________________ ----------------------------------------------------------------------------- Source: ______________________________ Section: _______________ Page: __ Camera Ready: N Group: LEGALS AdType: ___________ Misc: _______________________________ Color: _____________ Proof: __ _____________________ Pickup Date: __________ Ad#: _________ Delivery Instr: ______________________ Pickup Src: ____________ Changes: None __ Copy __ ________ Art __ Size __ Copy Chg Every Run __ Coupon: __ Gang Ad #: _________ Ad Copy Method: ________________________________________ Special Instr: ______________________________ ----------------------------------------------------------------------------- COMMENTS: COPIED from AD 1924948 ----------------------------------------------------------------------------- PUB ZONE EDT TP RUN DATES NW CL 97 S 10/05 WEB CL 99 S 10/05 APNW CL 97 S 10/05 ----------------------------------------------------------------------------- (CONTINUED ON NEXT PAGE) 229 SHAW MEDIA EST. 1851 PO BOX 250 CRYSTAL LAKE IL 60039-0250 (815)459-4040 ORDER CONFIRMATION (CONTINUED) Salesperson: BARBARA BEHRENS Printed at 10/04/21 09:56 by bbehr-sm ----------------------------------------------------------------------------- Acct #: 10069745 Ad #: 1924974 Status: New WHOLD WHOLD PUBLIC NOTICE PUBLIC HEARING NOTICE FILE Z-1002 Notice is hereby given that the City of McHenry Planning and Zoning Commission will hold a Public Hearing using the Zoom Internet Conferencing Application which can be accessed through https://cityofmchenry. zoom.us/j/89475514561 or by dialing +1-312-626- 6799 (Meeting ID: 894 7551 4561) at 7:00 P.M. on October 20, 2021 to consider an application by Walter and Teresa Truszkowski Trust of 5123 Karlsburg Pl., Palm Harbor, FL 34685 ("Owner of Record") for the following request(s), in accordance with the City of McHenry Zoning Ordinance: A Use Variation to allow a 3-Unit Multifamily Residence and any other Zoning Variations necessary to accommodate the existing principal building and accessory structures. Location: The site consists of 0.19 acres, more or less, and is located approximately 196 feet west of the intersection of Main Street and N. Center Street, on the south side of Main Street, with a common address of 3807 Main Street, McHenry, IL 60050 ("Subject Property"). PIN:09-26-356-007 The property is currently zoned RS-4 High Density Single Family Residential A copy of the application is on file and may be examined by contacting Cody Sheriff, City Planner by email at csheriff@ cityofmchenry.org or by calling 1-815-363-2181. All interested parties will be given an opportunity to be heard. Published by order of the Planning and Zoning Commission, City of McHenry, McHenry County, Illinois. /s/ Stacy Rockweiler Chairwoman, Planning and Zoning Commission (Published in the Northwest Herald on October 5, 2021)1924974 230 231 232 233 234 235 236 237 238 239 240 241 242 243 244 245 246 247 248 249 3807 Main StreetCopyright County of McHenry 2021.All information is provided 'as-is' with noguarantee of accuracy, completeness, or currency.Page 1 of 1250 Department of Community & Economic Development McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2170 Fax: (815) 363-2173 www.cityofmchenry.org AGENDA SUPPLEMENT TO: Mayor and City Council FOR: November 1, 2021 Regular City Council Meeting FROM: Cody Sheriff, City Planner RE: Ordinance granting a Zoning Map Amendment, Zoning Variations, and a Conditional Use Permit for the operation of a bar/tavern with live entertainment at 4502 W. Crystal Lake Road. ATT: 1. Unapproved Planning and Zoning Commission Minutes dated October 20, 2021 2. Ordinance granting a Zoning Map Amendment, Zoning Variations, and a Conditional Use Permit for the operation of a bar/tavern with live entertainment at 4502 W. Crystal Lake Road. 3. Planning & Zoning Commission Staff Report 4. Application Packet AGENDA ITEM SUMMARY: The petitioner is Bertram Irslinger, managing member of Bank Storage LLC., is proposing to construct a Cuban themed bar/tavern with live entertainment at 4502 W. Crystal Lake Road. To accommodate the request, the petitioner will need to receive approval of the following zoning items: 1. A Zoning Map Amendment from the C-2 Neighborhood Commercial District to the C-3 Community Commercial District. 2. A Conditional Use Permit to allow a bar/tavern with live entertainment. 3. Zoning Variation to allow an interior side yard setback of 8 feet in lieu of the required 10 feet for the existing principal structure. 4. Any other Zoning Variations necessary to accommodate the proposed development. 251 Department of Community Development McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2170 Fax: (815) 363-2173 www.cityofmchenry.org 1 PLANNING & ZONING COMMISSION DISCUSSION & RECOMMENDATION: A Planning & Zoning Commission hearing was held on October 20, 2021. One resident asked a question related to the signal on Lillian and Crystal Lake Road but did not object to the development. The Commission had an extensive discussion regarding hours of operation, lighting, signage, and live entertainment. The Commission ultimately recommended approval (5-yays; 2-nays) of the Conditional Use Permit subject to the following conditions which are included in the attached Ordinance: 1. Live entertainment shall be acoustic in nature only outdoors. When the doors are open in the patio area, this shall be considered to be outdoors. Outdoor sound amplification devices shall be prohibited. 2. All signage lighting shall be prohibited from facing the residential area. This restriction does not apply to externally illuminated signage. 3. The development shall comply with Chapter 13: Landscaping & Screening of the City of McHenry Zoning Ordinance. 4. No additional parking lot lighting shall be added unless required by federal, state, or local law. 5. The development shall be in substantial conformance with the submitted site plan and building elevations. 6. The petitioner shall revise the site plan to include improved pedestrian access to the principal structure such as crosswalks or additional sidewalk from the northern most parking area that shall be reviewed by the Zoning Administrator. The Zoning Administrator may approve, approve with conditions, or deny the revised site plan and recommend back to the Planning & Zoning Commission. 7. Outdoor live entertainment shall be limited to 10:00 p.m. 8. All other federal, state, and local laws shall be met. The Zoning Map Amendment to the C-3 Community Commercial District and Zoning Variations were unanimously approved. If the City Council concurs, it is recommended that the Ordinance granting a Zoning Map Amendment, Zoning Variations, and a Conditional Use Permit for the operation of a tavern with live entertainment at 4502 W. Crystal Lake Road be approved. (City Council vote-simple majority). 252 Department of Community Development McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2170 Fax: (815) 363-2173 www.cityofmchenry.org 2 Unapproved Planning & Zoning Commission Minutes from October 20, 2021 File No. Z-1003 Bertram Irslinger/Bank Storage LLC A Zoning Map Amendment to the C-3 Community Commercial District, Conditional Use Permit, and Zoning Variations for a Tavern & Bar with Live Entertainment at 4502 W. Crystal Lake Road Chairwoman Rockweiler called the hearing to order at 7:25 p.m. regarding File No Z-1003 a Zoning Map Amendment to the C-3 Community Commercial District, Conditional Use Permit, and Zoning Variations for a Tavern & Bar with Live Entertainment at 4502 W. Crystal Lake Road. Chairwoman Rockweiler confirmed all legal posting requirements have been met. Bertram Irslinger, 409 N Front St was sworn in and stated he has purchased the subject property with an interest in keeping commercial use and splitting the property into 2 parcels one for storage as it exists and one for an upscale tavern that sells cigars. City Planner Sheriff provided the Commission with the Staff Report regarding this file stating the petitioner is proposing to convert the existing drive-thru of the former bank building into an open-air smoking cigar lounge with roll up glass doors and live entertainment. The petitioner’s application currently states he would also potentially attract a cannabis dispensary. Planner Sheriff clarified this site would not be permissible to operate as a cannabis dispensary since it is not located along a state highway. The petitioner would utilize the existing warehouse as commercial storage for his other business (Second Amendment Sports). Future land use map, current land use and zoning, comprehensive plan objectives and qualities and site plan analysis were summarized. In summary, staff believes the development is mostly consistent with the City’s Comprehensive Plan and Development Policies. Located next to office-oriented uses, staff believes the proposed Cuban themed bar would be complimentary of the adjoining properties. Staff believes the positioning and setback distance of the principal structure will mitigate any potential adverse impacts such as noise or sound. Staff did, however, present and recommend several conditions of approval as part of the proposed development. A revised site plan was presented showing compliance with parking regulations due to comments in the preliminary staff review. Planner Sheriff stated Staff requests the commission hold discussion on potentially restricting the hours of operation for the business as recommended by the Crystal Lake Road Subarea Plan. The petitioner will need to receive approval of a zoning map amendment to the C-3 253 Department of Community Development McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2170 Fax: (815) 363-2173 www.cityofmchenry.org 3 Community Commercial District to accommodate the development. The future land use map recommends commercial use of the property. Staff does not object to the petitioner’s requests subject to appropriate conditions. Planner Sherriff stated if the Planning & Zoning Commission agrees with staff’s assessment then three motions are recommended, as presented in the Staff Report. Chairwoman Rockweiler invited questions and/or comments from the Commissioners. Bremer asked for clarification of the hours of operation for the business. Mr. Irslinger said hour will vary subject to weekend and weekday hours but that he will work with the city based on requirements for the residential surrounding area. Hours will most likely not be later than 11pm or midnight. He explained it is not meant to be a college bar setting but an upscale establishment. It is possible closing time could be 9 or 10 pm on weeknights. Commissioner Bremer asked if it would be the intent of the establishment to allow patrons to bring in their own wine. Mr. Irslinger stated probably not due to the fact they will be a tavern establishment and will follow all rules including not allowing alcohol to leave the premises outside of current laws. Commissioner Lehman asked if they plan on having outdoor drinking areas. Mr. Irslinger responded that a garden area that will utilize the existing drive through area and possibly an outdoor fireplace are in the plans. It will have movable garage doors to allow open air space under roof. Commissioner Lehman asked for clarification on live entertainment and whether they were looking to have a gaming license. Mr. Irslinger stated that while he did petition for live entertainment, after speaking with staff they want to clarify it would be acoustic guitar or a single lounge type singer. Mr. Irslinger stated they are not initially applying for a gaming license but may in the future. Planner Sheriff shared the revised parking plan drawing with the commissioners. Commissioners Smale and Sobotta had no questions. Commissioner Walsh asked about security cameras on the premises, whether music would be allowed inside only, the dress code, and when they planned on opening if approved. Mr. Irslinger responded he would have security cameras inside, outside, and even on the warehouse space. He had not considered a dress code but thought it might be a good idea even though it is not in the initial business plan. He explained the goal is to provide an upscale experience and they are hoping to open late Spring of 2022, subject to materials and supplies being available. He further verified that if music was allowed, outside music would not be amplified, but rather be more like background music, acoustic. 254 Department of Community Development McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2170 Fax: (815) 363-2173 www.cityofmchenry.org 4 Commissioner Davis asked if they are looking to have food on site or food allowed to be brought in. Mr. Irslinger stated they are still debating on food options. He is unsure if the design will be able to provide space for a safe and functional kitchen and they are still working on details. If there is food it would be finger food, tapas very light menu. Otherwise they will allow food to be brought in as recommended by a similar business they are familiar with in another state. Food will definitely be allowed in the building one way or another. Chairwoman Rockweiler asked about further landscaping and signage plans. Mr. Irslinger stated there will be no change to the structural landscape of the present area. She asked Planner Sheriff is there is more landscaping screening required due to the extra parking being added. Planner Sheriff stated yes, per city standards. Mr. Irslinger stated they have the ability to do what is required for landscaping and will comply. Regarding signage, Mr. Irslinger stated there will be minimal changes as they will take advantage of the structure of the existing road sign and a backlit logo sign on the building. Chairwoman Rockweiler stated she still had a concern regarding the live entertainment and wanted verification that most music will be indoors and a small amount outdoor. Mr. Irslinger stated music will be only in the garden space that will be usually 60% enclosed at most times and he does not expect music to be heard outside the property line. Chairwoman Rockweiler stated the Crystal Lake Road Subarea Plan suggests business close at 9 p.m. and ask if the petitioner was aware of that. Mr. Irslinger stated he was not and would want a variance on that restriction on the weekends, but he believed they could meet that closing time on weekdays. Planner Sheriff clarified hours of operation in a “plan” is a recommendation and not a requirement but should be considered by the Commissioners. Chairwoman Rockweiler asked for clarification on the optional conditions listed as a suggestion on the second motion, including regarding “pedestrian access”. Planner Sheriff clarified. Mr. Irslinger stated said their idea for access is on the plan, but they would like to add a sidewalk in the green space to the SE of the warehouse coming off the parking lot that will direct walking flow away from the main flow of the parking lot and more toward the building. Chairwoman Rockweiler invited questions and/or comments from the Public. Ms. Leonore Mersch, 721 Lillian St, McHenry was sworn in and asked for clarification on the location of this business. She voiced concern about headlights coming in windows of properties across Crystal Lake Rd. and asked if new lights will go in with more turn lanes. Planner Sheriff explained bars/taverns per square foot generate less traffic than a financial institution so there 255 Department of Community Development McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2170 Fax: (815) 363-2173 www.cityofmchenry.org 5 would be no changes required. Mr. Irslinger opined there could be fewer light issues than the bank had because the drive through will not be used for vehicle traffic. There were no other comments from the public. Chairwoman Rockweiler closed the public comment portion of the hearing at 7:51 p.m. Chairwoman Rockweiler summarized her biggest concern is that the Subarea Plan on Crystal Lake Rd. recommends fewer open hours and encouraged discussion from Commissioners. Commissioner Sobotta stated he believes the location is fine and doesn’t feel there will be an impact on the neighborhood. Commissioner Walsh stated this is a great use of space, a good design and unique venue. He is not concerned with music if kept low-key as mentioned. He is concerned about the open hours and asked for clarification on what is required. He believes the business being forced to close at 9:00 p.m. every day is not necessary. He asked Staff whether a structure with garage doors that can fully open is considered outdoor space or indoor space. Planner Sheriff clarified the options that could be required by the Commission regarding hours of operation and/or hours for entertainment. Planner Sheriff conferred with Director of Community Development Polerecky and they stated outdoor space with garage is treated as habitable space which is why parking was increased. It will be considered outdoor music if the garage doors are open and music is playing. Commissioner Smale said it sounds like a good idea as long as they are mindful of the neighborhood in terms of noise and lights. Commissioner Lehman is good with the applicant and believes it is a good use of the property. Has no concern on the lighting being an issue. He does not have an issue with extended hours because it is not being presented as a party bar. Commissioner Bremer had questions regarding the second motion and asked for clarification. She also asked for clarification on hours and requested input from others on any set hours to be placed or giving no restriction at all. Director Polerecky stated he is unsure but believes the closing hours for this type of establishment are 1:00 am Sun-Thurs and 2:00 a.m. on Fri/Sat. Mr. Irslinger stated he does not anticipate people being there later than 11:00 pm or midnight. Director Polerecky suggested there could be a closing restriction of Midnight on Fri/Sat and 10pm on weeknights. Mr. Irslinger stated he prefers no restrictions but will comply with what is motioned. Director Polerecky suggested possibly a motion to limit the hours of outdoor 256 Department of Community Development McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2170 Fax: (815) 363-2173 www.cityofmchenry.org 6 entertainment rather than hours of the establishment. Mr. Irslinger believed that to be more reasonable. Commissioner Bremer clarified she is more concerned with outside noise at all late nights, including loud conversation, than she is strictly about outdoor entertainment. Commissioner Davis agreed with all previous comments and believes lighting is addressed. He likes the idea of repurposing an existing property. He doesn’t believe restricted hours are needed for the establishment but likes a recommendation of restricting outside entertainment. Discussion ensued. Mr. Irslinger clarified the outdoor space and the indoor space are two separate areas. Concern was expressed by all to be sure to allow indoor amplified acoustic entertainment but no outdoor amplified entertainment. Discussion also ensued regarding the hours of operation especially for the outdoor space and sound violations. Chairwoman Rockweiler did have a concern on hours of the space in general. No other commissioners had a concern. Commissioner Walsh inquired if any other outdoor seating areas at other establishments in town have a restriction on the hours of operation? Planner Sheriff was unsure. Director Polerecky was unsure but stated he believed there are restrictions on live entertainment at BuddyZ and DC Cobbs outdoor areas after 10:00 p.m. Motion by Bremer seconded by Smale with regard to File No. Z-1003, to recommend approval of the petitioner’s request for a zoning map amendment from the C-2 Neighborhood Commercial District to the C-3 Community Commercial District as outlined in the staff report, as presented, and by making said motion, we agree with staff’s assessment that the approval criteria for zoning map amendments have been met as outlined in the Staff Report. Roll Call: Vote: 7-ayes: Bremer, Davis, Lehman, Rockweiler, Smale, Sobotta and Walsh. 0-nays, 0-abstained, 0-absent. Motion Carried. Motion by Lehman seconded by Walsh with regard to File No. Z-1003, to recommend approval of the petitioner’s request for a Conditional Use Permit for the operation of a tavern with live entertainment on the subject property, as outlined in the staff report, as presented, subject to the following conditions, as amended from Staff Report: 1) Live entertainment shall be acoustic in nature only outdoors. When the outdoor garage doors are open in the patio area this shall be considered to be outdoors. Outdoor sound amplification devices shall be prohibited. 2) All signage lighting shall be prohibited from facing the residential area. This restriction does not apply to externally illuminated signage. 257 Department of Community Development McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2170 Fax: (815) 363-2173 www.cityofmchenry.org 7 3) The development shall comply with Chapter 13: Landscaping & Screening of the City of McHenry Zoning Ordinance. 4) No additional parking lot lighting shall be added unless required by federal, state, or local law. 5) The development shall be in substantial conformance with the submitted site plan and building elevations. 6) The petitioner shall revise the site plan to include improved pedestrian access to the principal structure such as crosswalks or additional sidewalk from the northern most parking area that shall be reviewed by the Zoning Administrator. The Zoning Administrator may approve, approve with conditions, or deny the revised site plan and recommend back to the Planning & Zoning Commission. 7) Outdoor live entertainment shall be limited to ending at 10:00 p.m. 8) All other federal, state, and local laws shall be met. AND by making said motion, we agree with staff’s assessment as outlined in the staff report that the approval criteria for Conditional Uses have been met. Roll Call: Vote: 6-ayes: Bremer, Davis, Lehman, Smale, Sobotta and Walsh. 1-nays: Rockweiler, 0-abstained, 0-absent. Motion Carried. Chairwoman Rockweiler clarified her “No” vote was due to the fact the Crystal Lake Road Subarea Plan recommends restrictions on hours of operation. Motion by Bremer seconded by Davis with regard to File No. Z-1003, to recommend approval of the petitioner’s request for the following Zoning Variations, as amended from the Staff Report: 1. Zoning Variation to allow an interior side yard setback of 8 feet in lieu of the required 10 feet for the existing principal structure. 2. Any other Zoning Variations necessary to accommodate the proposed development. AND by making said motion, we agree with staff’s assessment as outlined in the staff report that the approval criteria for zoning variances have been met. Roll Call: Vote: 7-ayes: Bremer, Davis, Lehman, Rockweiler, Smale, Sobotta and Walsh. 0-nays, 0-abstained, 0-absent. Motion Carried. Chairwoman Rockweiler closed the public hearing regarding File No. Z-1003 at 8:45 p.m. 258 Department of Community Development McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2170 Fax: (815) 363-2173 www.cityofmchenry.org 8 ORDINANCE NO 21- ORDINANCE GRANTING A ZONING MAP AMENDMENT, ZONING VARIATIONS, AND A CONDITIONAL USE PERMIT FOR THE OPERATION OF A TAVERN WITH LIVE ENTERTAINMENT AT 4502 W. CRYSTAL LAKE ROAD. WHEREAS, the City of McHenry, McHenry County, Illinois, is a home rule municipality as contemplated under Article VII, Section 6, of the Constitution of the State of Illinois, and the passage of this Ordinance constitutes an exercise of the City’s home rule powers and functions as granted in the Constitution of the State of Illinois; and WHEREAS, a petition has been filed with the City by Bertram Irslinger, managing member of Bank Storage LLC. (“PROPERTY OWNER”), requesting approval of a Zoning Map Amendment to the C-3 Community Commercial District, a Conditional Use Permit, and Zoning Variations to accommodate the operation of a bar/tavern with live entertainment at 4502 W. Crystal Lake Road and legally described in Exhibit “A”, attached hereto and incorporated herein, the “SUBJECT PROPERTY”; and WHEREAS, a public hearing on said petition was held before the Planning and Zoning Commission on October 20, 2021 in the manner pr escribed by ordinance and statute, and as a result of said hearing, the Planning and Zoning Commission did recommend to the City Council the granting of the requested Zoning Map Amendment, Conditional Use Permit, and Zoning Variations; and WHEREAS, the City Council has considered the evidence and recommendations from the Planning and Zoning Commission and finds that the approval of the requested Zoning Map Amendment, Conditional Use Permit, and Zoning Variations are consistent with the objectives of the City of McHenry Zoning Ordinance to protect the public health, safety, morals and general welfare of its residents. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF MCHENRY, MCHENRY COUNTY, ILLINOIS, AS FOLLOWS: SECTION 1: That the SUBJECT PROPERTY is hereby granted a Zoning Map Amendment from the C-2 Neighborhood Commercial District to the C-3 Community Commercial District. SECTION 2: In granting said Zoning Map Amendment, the City Council finds that the Approval Criteria for Zoning Amendments listed in §11-5-5 in the City of McHenry Zoning Ordinance have been met. 259 Department of Community Development McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2170 Fax: (815) 363-2173 www.cityofmchenry.org 9 SECTION 3: That the SUBJECT PROPERTY is hereby granted a Conditional Use Permit for the Operation of a bar/tavern with live entertainment subject to the following conditions: 1. Live entertainment shall be acoustic in nature only outdoors. When the doors are open in the patio area, this shall be considered to be outdoors. Outdoor sound amplification devices shall be prohibited. 2. All signage lighting shall be prohibited from facing the residential area. This restriction does not apply to externally illuminated signage. 3. The development shall comply with Chapter 13: Landscaping & Screening of the City of McHenry Zoning Ordinance. 4. No additional parking lot lighting shall be added unless required by federal, state, or local law. 5. The development shall be in substantial conformance with the submitted site plan and building elevations (Exhibit “B”) 6. The petitioner shall revise the site plan to include improved pedestrian access to the principal structure such as crosswalks or additional sidewalk from the northern most parking area that shall be reviewed by the Zoning Administrator. The Zoning Administrator may approve, approve with conditions, or deny the revised site plan and recommend back to the Planning & Zoning Commission. 7. Outdoor live entertainment shall be limited to 10:00 p.m. 8. All other federal, state, and local laws shall be met. SECTION 4: In granting said Conditional Use Permit, the City Council finds that the Approval Criteria for Conditional Uses listed in §11-15-5 of the City of McHenry Zoning Ordinance have been met. SECTION 5: That the SUBJECT PROPERTY is hereby granted approval of the following Zoning Variations: 1. Zoning Variation to allow an interior side yard setback of 8 feet in lieu of the required 10 feet for the existing principal structure. 2. Any other Zoning Variations necessary to accommodate the proposed development. SECTION 6: In granting said Variances, the City Council finds that the Approval Criteria for Variances listed in §11-19-5 of the City of McHenry Zoning Ordinance have been met. SECTION 7: This Ordinance shall be published in pamphlet form by and under the authority of the corporate authorities of the City of McHenry, McHenry County, Illinois. SECTION 8: This Ordinance shall be in full force and effect from and after its passage, approval, and publication in pamphlet form as provided by law. 260 Department of Community Development McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2170 Fax: (815) 363-2173 www.cityofmchenry.org 10 Passed this 1st day of November, 2021. Ayes Nays Absent Abstain Alderman Devine _____ _____ _____ _____ Alderman Glab _____ _____ _____ _____ Alderman Harding _____ _____ _____ _____ Alderman Strach _____ _____ _____ _____ Alderwoman Miller _____ _____ _____ _____ Alderman Santi _____ _____ _____ _____ Alderman McClatchey _____ _____ _____ _____ ______________________ ________________________ Wayne Jett, Mayor Trisha Ramel, City Clerk 261 Department of Community Development McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2170 Fax: (815) 363-2173 www.cityofmchenry.org 11 Exhibit A Legal Description of the Subject Property THAT PART OF THE NORTHEAST ¼ OF SECTION 34, TOWNSHIP 45 NORTH, RANGE 8 EAST OF THE THIRD PRINCIPAL MERIDIAN, DESCRIBED AS FOLLOWS: COMMENCING AT THE POINT OF INTERSECTION WITH THE SOUTHWESTERLY LINE OF HANLEY AVENUE, WITH THE CENTER LINE OF CRYSTAL LAKE ROAD; ALSO BEING THE MOST SOUTHERLY CORNER OF BOONE VALLEY PLAT NO. 1 ACCORDING TO THE PLAT THEREOF RECORDED DECEMBER 10, 1965 AS DOCUMENT 452465; THENCE SOUTH 46 DEGREES 15 MINUTES WEST ALONG THE CENTER LINE OF SAID CRYSTAL LAKE ROAD 506.91 FEET TO THE PLACE OF BEGINNING OF THIS DESCRIPTION; THENCE NORTH 43 DEGREES 45 MINUTES WEST A DISTANCE OF 330.0 FEET; THENCE SOUTH 46 DEGREES 15 MINUTES WEST 300.0 FEET; THENCE SOUTH 43 DEGREES 45 MINUTES EAST 330.4 FEET TO THE CENTER LINE OF CRYSTAL LAKE ROAD; THENCE NORTH 46 DEGREES 15 MINUTES EAST, 300.0 FEET TO THE PLACE OF BEGINNING (EXCEPT THAT PART THEREOF TAKEN FOR HIGHWAY PURPOSES) IN MCHENRY COUNTY, ILLINOIS 262 Department of Community Development McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2170 Fax: (815) 363-2173 www.cityofmchenry.org 12 Exhibit B Site Plan and Building Elevations 263 PROJECT NAME:BOURBON / CIGARBARDESCRIPTION:EXISTING FACILITY -RETROFIT© CCC ARCHITECTURAL SERVICES; 2021Date10/04/21Drawn ByChecked By.ADDRESS:architecture3930 Gloria Ct.Glenview, Illinois 60025CCC ARCHITECTURALSERVICES312.203.2434SHEET NUMBER:OF 1PROJECT NUMBER:21-01.1Previous IssuesMcHENRY, IL.Date..ELEV-11CCCCCCcommercial / retail planningSCALE:11/8" = 1'-0"SOUTH ELEVATIONNORTH264 265 266 267 268 SStaff Report for the City of McHenry Planning & Zoning Commission Staff Comments The following comments and conclusions are based upon staff analysis and review prior to this hearing and are to be considered viable unless evidence is established to the contrary. Staff may have additional comments based upon the testimony presented during the public hearing. BACKGROUND & REQUEST SUMMARY The petitioner Bertram Irslinger, managing member of Bank Storage LLC., is proposing to construct a Cuban- themed bar/tavern with live entertainment at 4502 W. Crystal Lake Road. To accommodate the request, the petitioner will need to receive approval of the following zoning items: 1. A Zoning Map Amendment from the C-2 Neighborhood Commercial District to the C-3 Community Commercial District. 2. A Conditional Use Permit to allow a Bar/Tavern with Live Entertainment. 3. Zoning Variation to allow an interior side yard setback of 8 feet in lieu of the required 10 feet for the existing principal structure. 4. Zoning Variation to allow 28 parking spaces in lieu of the minimum 43 or more spaces required. 5. Any other Zoning Variations necessary to accommodate the proposed development. Formerly occupied by the First Midwest Bank, the petitioner is proposing to convert the existing drive-thru into an open-air smoking cigar lounge with roll up glass doors. The petitioner’s application currently states he would also potentially attract a cannabis dispensary. To clarify, this site would not be permissible to operate as a cannabis dispensary since it is not located along a state highway. The petitioner would utilize the existing warehouse as commercial storage for his other business (2nd Amendment Sports). CITY OF MCHENRY ORDINANCES x The petitioner must meet the Approval Criteria for Conditional Uses, listed in §11-15-5 of the City of McHenry Zoning Ordinance. x The petitioner must meet the Approval Criteria for Variances, listed in §11-19-5 of the City of McHenry Zoning Ordinance. STAFF ANALYSIS FUTURE LAND USE MAP RECOMMENDATION The Future Land Use Map recommends commercial land use on the subject property. The proposed use for a tavern/bar with live entertainment is a commercial use and complies with the Future Land Use Map recommendation. The proposed zoning map amendment to the C-3 Community Commercial District is in compliance with the future land use map recommendation. CURRENT LAND USE AND ZONING The subject property is currently zoned C-2 Neighborhood Commercial District. The request to rezone the property to C-3 Community Commercial District would increase the total number of permitted uses on the property.1 (See footnote for complete list) The C-2 District does not allow a tavern/bar with live entertainment; however, the C-3 District does allow live entertainment as a conditional use. Staff is currently in the process of examining the possibility of merging the 7 existing properties zoned C-1 Convenience 1 Table of Permitted and Conditional Uses by Zoning District: https://cityofmchenry.org/vertical/Sites/%7B32BA702A-197A-429A- BC8D-0F4D5E307CAD%7D/uploads/LIST-Table_of_Permitted_Use_2020_updated_8.26.2021.pdf 269 Commercial District & C-2 Neighborhood Commercial District in the City with the C-3 Community Commercial District. COMPREHENSIVE PLAN OBJECTIVES AND POLICIES Overall, staff believes the proposed development is consistent with the City’s Comprehensive Plan objectives and policies. Staff comments italicized. x Land Use, Objective – “Promote development that blends with existing development in the area especially if located within a unique sub-area”. o The subject property is located within the Crystal Lake Road Sub-Area. Development should be consistent with the plan’s recommendations. x Crystal Lake Road Sub-Area Plan – o "Building design for new, non-residential uses shall be consistent with the residential flavor of the area. Hip and gable roofs are encouraged while flat roofs are discouraged. Construction materials shall be primarily of brick or masonry." (p. 15) The development is only proposing slight modifications to the exterior of the building with the conversion of the drive-thru to an open-air cigar lounge with roll up glass doors. o "Lighting restrictions shall be considered with each proposed development to minimize light trespass and glare on nearby residential land uses." (p. 15) The development is not proposing any changes to the existing lighting on site. o "Noise restrictions shall be considered with each proposed development to minimize impacts on nearby land uses." (p. 15) The petitioner desires to have live acoustic entertainment on site from time to time. The petitioner should clarify the location of said live entertainment and whether it would be located outdoors. The Commission may wish to consider restrictions related to the location of the entertainment on site, restrict it to indoors only, and restrictions related to the use of amplification devices. o "Hours of operation shall be restricted...Retail shall maintain hours of operation, including loading and unloading, between 7 a.m. and 9 p.m." (p. 15) The petitioner application does not identify the business’ hours of operation. The petitioner should clarify this for the Commission. SITE PLAN ANALYSIS Overall, the proposed site plan is mostly consistent with the City’s Zoning Ordinance Requirements. See below staff comments for various site elements. x Parking. The site contains 28 parking spaces. Taverns require 10 parking spaces per 1,000 SF of GFA. With the conversion of the drive-thru to a habitable space, this increases the buildings footprint from approximately 2,000 square feet to 4,300 square feet. Forty-three (43) parking spaces would be required to accommodate the proposed expansion. With the conversion of the drive-thru to a seating area, there is an opportunity to add additional parking on site. The petitioner may wish to consider revising the site plan to include additional parking or the Commission may wish to consider adding a condition of approval that the petitioner shall work with staff to add additional parking on site. Conversations with the petitioner have indicated he is looking into expanding parking southeast of the proposed screened in area. x Traffic. According to the 10th Edition of the Institute of Transportation Engineers Trip Generation Manual, Drinking Places generate approximately 11.36 trips per 1,000 SF of GFA while Drive-Thru 270 Banks generate approximately 20.45 trips per 1,000 SF of GFA during peak PM hours. Given the prior use, staff believes the proposed use will have less of an impact than the original drive-thru bank. Located along a minor arterial roadway, staff believes there is adequate capacity to service the proposed development. x Landscaping. The petitioner has not provided a landscape plan. Staff is recommending the petitioner install parking lot perimeter landscaping which requires a 3ft high row of evergreen screening and any combination of 2 other shrub species to screen car lights from view of the right of way. x Setback. The existing drive-thru encroaches within the required side yard setback by approximately 2 feet (8 feet off the property line instead of 10 feet). The existing bank predates the 1986 Zoning Ordinance and therefore is considered legal nonconforming. The petitioner will need to receive approval of a side yard setback variance to allow the conversion of the drive-thru to a seating area. Since the site is adjacent to a parking lot, staff does not believe this encroachment will generate any adverse impacts. x Signage. Although no sign plan has been provided, the commission may wish to consider restrictions related to internally illuminated and video signage. Staff has included this as a condition of approval. x Live Entertainment. The site plan does not indicate where live entertainment will be located on site. The petitioner may wish to clarify the scope of the live entertainment provided. Staff is recommending several conditions of approval regarding sound amplification device restrictions, and that all live entertainment shall be restricted to indoors. x Lighting. The petitioner is not proposing any additional lighting on site. Staff is adding a condition of approval regarding minimizing parking lot lighting. x Business Hours of Operation. The Crystal Lake Road Subarea Plan recommends business hours of operation restriction from 7:00 a.m. to 9:00 p.m. The petitioner should clarify his hours of operation. Staff is requesting the Commission discuss whether it believes the hours of operation restriction should be added as a condition of approval. x Pedestrian Circulation. The petitioner is not proposing any improvements to pedestrian circulation. Staff has some concerns regarding the existing layout of the northern most parking area. Staff is recommending the petitioner improve the pedestrian accessibility from the northern most parking area to the principal structure. SSTAFF RECOMMENDATION & MOTION In summary, staff believes the development is mostly consistent with the City’s Comprehensive Plan and Development Policies. Located next to office-oriented uses, staff believes the proposed Cuban themed bar would be complimentary of the adjoining properties. Staff believes the positioning and setback distance of the principal structure will mitigate any potential adverse impacts such as noise or sound. However, staff is recommending several conditions of approval as part of the proposed development: 1. The petitioner shall revise the site plan to include additional parking that shall be reviewed by the Zoning Administrator. The Zoning Administrator may approve, approve with conditions, or deny the revised site plan and recommend back to the Planning & Zoning Commission. 2. Outdoor sound amplification devices shall be prohibited. 3. Live entertainment shall be restricted to indoor areas and shall be only acoustic in nature. 4. Internally illuminated signage and video signage shall be prohibited. This restriction does not apply to externally illuminated signage. 5. The development shall comply with all building perimeter landscaping and screening requirements. 6. No additional parking lot lighting shall be added unless required by federal, state, or local law. 7. The development shall be in substantial conformance with the submitted site plan and building elevations. 271 Staff is also requesting discussion on potentially restricting the hours of operation for the business as recommended by the Crystal Lake Road Subarea Plan. The petitioner will need to receive approval of a zoning map amendment to the C-3 Community Commercial District to accommodate the development. The future land use map recommends commercial use of the property. Staff does not object to the petitioner’s requests subject to appropriate conditions. If the Planning & Zoning Commission agrees with staff’s assessment, then three separate motions are recommended: 1st MOTION: A motion to approve the petitioner’s request for a zoning map amendment from the C-2 Neighborhood Commercial District to the C-3 Community Commercial District. AND By making said motion, you agree that the approval criteria for Zoning Amendments have been met as outline in the staff report. Zoning Map Amendment Approval Criteria §11-5-5 A. Compatible With Use Or Zoning of Environs. Staff believes the proposed rezoning of the property is compatible with the surrounding land use. The property located directly west of the property is also zoned C-3 Community Commercial District. B. Supported by Trend of Development West of the subject property is a property zoned C-3 Community Commercial District. Rezoning the property to C-3 would be consistent with the trend of development in the area. C. Consistent with Comprehensive Plan Objectives. Staff believes the proposed zoning map amendment is consistent with the Comprehensive Plan Objectives to support existing commercial businesses. Rezoning the property would potentially allow more opportunity to redevelop an underutilized site. D. Furthers Public Interest Staff believes rezoning the property would allow additional opportunities for economic growth within the City which furthers the public interest. 2nd MOTION: A motion to recommend approval of the petitioner’s request for a Conditional Use Permit for the operation of a tavern with live entertainment on the subject property, subject to the following Conditions: 1. The petitioner shall revise the site plan to include additional parking that shall be reviewed by the Zoning Administrator. The Zoning Administrator may approve, approve with conditions, or deny the revised site plan and recommend back to the Planning & Zoning Commission. 2. Outdoor sound amplification devices shall be prohibited. 3. Live entertainment shall be restricted to indoor areas. 4.Internally illuminated signage and video signage shall be prohibited. This restriction does not apply to externally illuminated signage. 5. The development shall comply with Chapter 13: Landscaping & Screening of the City of McHenry Zoning Ordinance. 6.No additional parking lot lighting shall be added unless required by federal, state, or local law. 7. The development shall be in substantial conformance with the submitted site plan and building elevations. 8. All other federal, state, and local laws shall be met. (Optional conditions of approval on next page) 272 Optional conditions of approval: 9. The petitioner shall revise the site plan to include improved pedestrian access to the principal structure such as crosswalks or additional sidewalk from the north most parking area that shall be reviewed by the Zoning Administrator. The Zoning Administrator may approve, approve with conditions, or deny the revised site plan and recommend back to the Planning & Zoning Commission. 10. The hours of operation of the proposed tavern with live entertainment shall be restricted to 7:00 a.m. to 9:00 p.m. AND by making said motion, you agree the Approval Criteria for Conditional Uses (§11-15-5) have been met as outlined in the staff report. APPROVAL CRITERIA FOR CONDITIONAL USES (§11-15-5). Staff comments italicized below. A. Traffic. Staff does not believe approval of the petitioner’s request would generate any adverse traffic impacts. The proposed use of the property as a bar with live entertainment generates less traffic during peak PM hours than the former use of the property as a drive-thru bank. B. Environmental Nuisance. Staff does not believe approval of the petitioner’s request would generate any environmental nuisances. Staff is also recommending several conditions of approval related to lighting, and sound. C. Neighborhood Character. The proposed commercial use is appropriate and will be harmonious with the surrounding commercial and office uses. D. Public Services and Facilities. The site is serviced by City Water and Sanitary Sewer. E. Public Safety and Health. Staff does not believe the proposed use will generate any adverse impacts on public safety and health. F. Other Factors. 3rd MOTION: a motion to recommend approval of the petitioner’s request for the following Zoning Variations: 1. Zoning Variation to allow an interior side yard setback of 8 feet in lieu of the required 10 feet for the existing principal structure. 2. Zoning Variation to allow 28 parking spaces in lieu of the minimum 43 or more spaces required. 3. Any other Zoning Variations necessary to accommodate the proposed development. AND by making said motion, you agree the Variance Approval Criteria have been met as outlined in the staff report. VARIANCE APPROVAL CRITERIA (§11-19-5). Comments of staff italicized below. A. Special Circumstances Not Found Elsewhere. Staff believes this is a special circumstance because the existing principal structure predates the 1986 Zoning Ordinance and is considered legal nonconforming. B. Circumstances Relate to the Property Only. Staff believes the circumstances relate to this property and the existing layout and configuration of the buildings. 273 C. Not Resulting From Applicant Action. The applicant did not build the existing structures on site. D. Unnecessary Hardship. Staff believes denying the request would create an unnecessary hardship. E. Preserves Rights Conferred By District. Staff does not believe that approval of the request would be a special privilege ordinarily denied to other properties in the district. F. Necessary For Use Of Property. Staff believes the variance request is necessary for use of the building. G. Not Alter Local Character. Staff believes approval of the petitioner’s request would not alter local character since the site has operated in its current configuration for over 30 years. H. Consistent With Title And Plan. Staff believes the proposed Zoning Variations are consistent with the Comprehensive Plan. I. Minimum Variance Recommended. Staff believes the requested variations are the minimum required. Attachments: x Petitioner’s Application and attachments x Receipt of publication of legal notice 274 SHAW MEDIA EST. 1851 PO BOX 250 CRYSTAL LAKE IL 60039-0250 (815)459-4040 ORDER CONFIRMATION Salesperson: BARBARA BEHRENS Printed at 10/04/21 10:16 by bbehr-sm ----------------------------------------------------------------------------- Acct #: 10474 Ad #: 1924992 Status: New CITY OF MCHENRY Start: 10/05/2021 Stop: 10/05/2021 333 S. GREEN ST. Times Ord: 1 Times Run: *** MCHENRY IL 60050 CLEG 1.00 X 85.00 Words: 267 Total CLEG 85.00 Class: C8100 PUBLIC NOTICES Rate: LEGAL Cost: 129.40 # Affidavits: 1 Bill Desc: FILE Z-1003 FIRST MIDWEST Descr Cont: 1924992 Contact: DEBBIE SHOEMAKER Ad Descrpt: PUBLIC NOTICE NOTICE OF Phone: (815)363-2100 Given by: CODY SHERIFF Fax#: (815)385-0916 P.O. #: Email: brostron@ci.mchenry.il.us;nt Created: bbehr 10/04/21 10:01 Agency: Last Changed: bbehr 10/04/21 10:16 ----------------------------------------------------------------------------- URL: _________________________________ ----------------------------------------------------------------------------- Source: ______________________________ Section: _______________ Page: __ Camera Ready: N Group: LEGALS AdType: ___________ Misc: _______________________________ Color: _____________ Proof: __ _____________________ Pickup Date: __________ Ad#: _________ Delivery Instr: ______________________ Pickup Src: ____________ Changes: None __ Copy __ ________ Art __ Size __ Copy Chg Every Run __ Coupon: __ Gang Ad #: _________ Ad Copy Method: ________________________________________ Special Instr: ______________________________ ----------------------------------------------------------------------------- COMMENTS: COPIED from AD 1918274 ----------------------------------------------------------------------------- PUB ZONE EDT TP RUN DATES NW CL 97 S 10/05 WEB CL 99 S 10/05 APNW CL 97 S 10/05 ----------------------------------------------------------------------------- (CONTINUED ON NEXT PAGE) 275 SHAW MEDIA EST. 1851 PO BOX 250 CRYSTAL LAKE IL 60039-0250 (815)459-4040 ORDER CONFIRMATION (CONTINUED) Salesperson: BARBARA BEHRENS Printed at 10/04/21 10:16 by bbehr-sm ----------------------------------------------------------------------------- Acct #: 10474 Ad #: 1924992 Status: New PUBLIC NOTICE PUBLIC HEARING NOTICE FILE Z-1003 Notice is hereby given that the City of McHenry Planning and Zoning Commission will hold a Public Hearing using the Zoom Internet Conferencing Application which can be accessed through https://cityofmchenry.zoom. us/j/89475514561 or by dialing +1-312-626-6799 (Meeting ID: 894 7551 4561) at 7:00 P.M. on Oc- tober 20, 2021 to consider an application by Bank Storage LLC. of 409 N Front Street ("Contract Purchaser") on behalf of First Midwest Bank of 8750 W Bryn Mawr Ave, STE 1300, Chicago, IL 60631 ("Owner of Record") for the following request(s), in accordance with the City of McHenry Zoning Ordinance: A Zoning Map Amendment from C-2 Neighborhood Commercial District to C-3 Community Commercial District and a Conditional Use Permit for the operation of a Tavern & Bar with Live Entertainment or Dancing, and any other Zoning Variations necessary to accommodate the proposed development. Location: The site consists of 1.92 acres, more or less, and is located on the west corner of the intersection of Lillian Street and Crystal Lake Road with a common address of 4502 W Crystal Lake Road, McHenry, IL 60050 ("Subject Property"). PIN:09-34-201-011 The property is currently zoned C-2 Neighborhood Commercial District A copy of the application is on file and may be examined by contacting Cody Sheriff, City Planner by email at csheriff@ cityofmchenry.org or by calling 1-815-363-2181. All interested parties will be given an opportunity to be heard. Published by order of the Planning and Zoning Commission, City of McHenry, McHenry County, Illinois. /s/ Stacy Rockweiler Chairwoman, Planning and Zoning Commission (Published in the Northwest Herald October 5, 2021) 1924992 276 277 278 279 280 281 282 283 284 285 286 Imagery date: 5/29/21–newer10 mCamera: 355 m 42°20'25"N 88°17'06"W 249 m287 Department of Community & Economic Development McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2170 Fax: (815) 363-2173 www.cityofmchenry.org AGENDA SUPPLEMENT TO: Mayor and City Council FOR: November 1, 2021 Regular City Council Meeting FROM: Cody Sheriff, City Planner RE: Ordinance granting preliminary plan approval for the Taylor Place Apartments Multifamily Integrated Design District Development at 812 N Mill Street ATT: 1. Unapproved Planning and Zoning Commission Minutes dated October 20, 2021 2. Ordinance granting preliminary plan approval for the Taylor Place Apartments Planned Multifamily Integrated Design District Development at 812 N Mill Street 3. Planning & Zoning Commission Staff Report 4. Application Packet AGENDA ITEM SUMMARY: The petitioner, North Pointe Development Corporation, is proposing to construct a 54-unit planned multifamily Integrated Design District Development at 812 N Mill Street called Taylor Place Apartments. To accommodate the development, the petitioner is requesting preliminary plan approval. Upon completion, the proposed development will consist of: • A new three-story, forty-six-unit (46) apartment building. • A new two-story, four-unit (4) townhome building. • An adaptively reused, two-story, four-unit (4) townhome building (Historic Mill). • An adaptively reused, one-story, community room building featuring a fitness room, leasing office, and common space. If approved, the petitioner will submit final plans for a second Planning & Zoning Commission Public Hearing along with a development agreement for a reduction in capital development impact fees based on actual usage. 288 Department of Community Development McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2170 Fax: (815) 363-2173 www.cityofmchenry.org PLANNING & ZONING COMMISSION DISCUSSION & RECOMMENDATION: A Planning & Zoning Commission hearing was held on October 20, 2021. Several residents from the adjacent subdivision spoke in opposition of the development. The primary concern was traffic congestion and pedestrian safety because there are no sidewalks in the Hanly Subdivision. One resident spoke in favor of the development because he preferred multifamily rather than the possibility of another industrial use occupying the property . Discussion amongst the Planning & Zoning Commission agreed that the cross -traffic impact is not something this development can remedy. The Planning & Zoning Commission unanimously recommended approval of the development subject to the condition that the developer provide a traffic impact study, curbing and sidewalk along Mill Street, a tree survey, and to preserve the existing mature trees along Mill Street to the greatest extent possible. STAFF ANALYSIS: The petitioners are seeking preliminary plan approval for a 54-unit planned multifamily development. Construction of the project will rely on the developer successfully seeking approval from the Illinois Housing Development Authority’s Affo rdable Housing Tax Credit program. Should the City Council grant the request, the petitioners will work on submitting their final plans. The proposed development is in substantial conformance with the Main Street Subarea Plan recommendation for increased density near the Metra Station, and for preserving the historic mill structure. However, the proposed development does not have any commercial use as recommended by the plan. Staff believes residents have a valid concern for cross-through traffic and pedestrian safety in the adjacent subdivision. The subdivision was platted in 1893 and predates many urban planning considerations such as cross-through traffic control. Crestwood Drive does not have any stops signs and there are no sidewalks to separate motorists and pedestrians. Staff has estimated that the installation of sidewalks, curb, and storm sewer on Crestwood Drive would cost approximately $400,000.00. Pedestrian infrastructure improvements to older parts of town should be part of a larger City Council conversation related to a city-wide planned pedestrian capital investment program. With already several existing access points on Mill Street, staff agrees with the Planning & Zoning Commission that resolving the existing cross - traffic concerns in the Hanly Subdivision is outside the scope of what can realistically be accomplished with this project. If the City Council concurs, it is recommended that the attached Ordinance granting preliminary plan approval for the Taylor Place Apartments Multifamily Integrated Design District Development be approved. (City Council vote-simple majority) 289 Department of Community Development McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2170 Fax: (815) 363-2173 www.cityofmchenry.org Unapproved Planning & Zoning Commission Minutes from October 20, 2021 File No. Z-998 Northpointe Development Corporation Preliminary Plan Approval for a Planned Multifamily Integrated Design District Development at 812 N Mill Street Chairwoman Rockweiler called the hearing to order at 9:56 p.m. regarding File No Z-998 Preliminary Plan Approval for a Planned Multifamily Integrated Design District Development at the subject property, commonly known as 812 N. Mill Street. Chairwoman Rockweiler confirmed all legal posting requirements have been met. Planner Sheriff and Chairwoman Rockweiler presented letters of objection received from residents. Jake Victor 901 Hillside Dr Mundelein, Vice President of Development for Northpointe Development, and Richard Koenig, 807 Davis, Evanston were sworn in. Mr. Victor gave a presentation on the proposal for Taylor Place Apartments workforce housing and complimented the city on their community spirit. They are open to listening, generating ideas, and incorporating feedback. Mr. Keonig is Executive Director of the non-profit involved in the project and presented on community-based housing stating they work with Home of the Sparrow and Pioneer Center as well as other non-profits in the area. He is excited about the downtown location and access to Fort McHenry Park and the beauty of the area. This is a transit -oriented development (TOD) and would compliment the City’s recent housing summary. He said they have established award-winning historical transformations in their resume. City Planner Sheriff provided the Commission with the Staff Report regarding this file stating the subject property is currently zoned Industrial and a historical site. Original and past uses were a flour mill and a brickyard. The Main Street Subarea Plan was identified, and he believes this project will preserve that goal with a mix of commercial and residential use. Cut through traffic will be unavoidable but staff is looking into adding stop signs on Crestwood Drive and are recommending a traffic study be done. It has been a challenge to find someone who will look into preserving the site as well as add residential housing. In summary, staff believes the proposed use is in substantial conformance with the objectives and goals of the City’s Comprehensive Plan and Development Policies including the Main Street Subarea Plan. Located within the historic downtown area, staff believes the proposed 290 Department of Community Development McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2170 Fax: (815) 363-2173 www.cityofmchenry.org architectural details would blend in with the surrounding properties. Staff does not believe the proposed development would create any adverse impacts and would be a less intense use than the existing Industrial Zoning. Staff does not object to the petitioner’s request and recommends approval subject to appropriate conditions. as presented and outlined in the Staf f Report. Planner Sheriff stated if the Planning & Zoning Commission agrees with staff’s assessment, the motion as presented is recommended. Chairwoman Rockweiler invited questions and/or comments from the Commissioners. Commissioner Bremer inquired, using the Naperville study, if they had any idea how many students would impact the local school districts. Planner Sheriff was unable to provide that information at this time. She also wanted to confirm that no traffic study had been done on this project. Mr. Victor responded there was no traffic study done but he could say based on years of experience and similar other developments their project would bring a maximum of about 20 cars at peak hours. Commissioner Smale likes the concept and the fact they work with non-profits supporting the community. There were no questions from Commissioners Lehman, Walsh Sobotta, or Davis. Chairwoman Rockweiler invited questions and/or comments from the Public. Leonore Mersch, 721 Lillian St was sworn in and asked if the historical part of the building will remain the same or if the inside will be gutted and outside only will remain historical. Mr. Victor responded the inside will be gutted and remodeled but most of the outside facade will remain the same. She is concerned with traffic going toward Route 120 as it often gets backed up and there will be more cut-through traffic on South Street. Stephanie Greidanus, 4109 W Crystal Lake Road was sworn in and stated she owns the corner of Crystal Lake Road and Mill St. She is most concerned with safety of children on the bike path and believes the area is dangerous and it would be reckless to add more traffic and people. Glenn Runkel,1022 Hanley St. was sworn in said the proposal is exciting and would like traffic - calming features for the bike path as well. He also wondered if light pollution could be kept down with dark sky compliant lighting fixtures. Mr. Victor responded that was a great idea and it is their intent to take steps necessary to mitigate the light impact. Planner Sheriff stated the applicant must meet lighting requirements by code. 291 Department of Community Development McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2170 Fax: (815) 363-2173 www.cityofmchenry.org Mary Lee Bershram, 4222 Crestwood was sworn in and stated her concern is cut through traffic. Her belief is one more car added to the traffic flow is dangerous as there is already constant traffic through the neighborhood causing dangerous pedestrian situations. Kathie Lynd 813 N Mill St was sworn in and read a one-page statement from the Cooney Heights United group working together to prevent the development due to dang erous traffic situations. Ron Wagner (no address given) expressed concern about safety on local streets without sidewalks and population density. Lois Koss 4105 Crestwood Dr was sworn in and agrees with all comments regarding traffic. She is concerned with the bus stops and danger to children and the change in quality of life with these developments. Current apartment complex residents cut through yards and do illicit things on and in view and in hearing range of her private property. She believes it will only get worse. She is concerned about the damage that might be done to future value of her home and others. Craig Davidson was sworn in and disclosed he has an ownership interest in 4025 Main St. Mr. Davidson stated neighbors should consider alternatives of another industrial use being put on this property rather than a nice residential area and what they want to look at. There were no further comments from the public. Chairwoman Rockweiler closed the public comment portion of the hearing at 10:37 p.m. Commissioner Walsh stated besides the traffic concerns it is a nice development and believes neighbor concerns can be addressed with local enforcement. Commissioner Sobotta had no comments. Commissioner Smale agrees with Commissioner Walsh and hears the concerns from the neighbors but believes they can be further addressed. Asked if there is any way to restrict the flow of outside traffic without inhibiting the residents. Planner Sheriff responded adding stop signs is a thought and another effective method for psychological impact is actually narrow the roadways themselves. He stated he had a discussion with the Public Works Director and oth er than stop signs other changes may be cost-prohibitive. Commissioner Lehman likes the conceptual drawings and believes it’s a good fit for the area itself but understands the neighborhood concerns regarding speed allowed on the roads. He 292 Department of Community Development McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2170 Fax: (815) 363-2173 www.cityofmchenry.org inquired if low profile gradual speed bumps would be possible in this area. Planner Sheriff stated he’s not sure it is possible on a local road and suggested rumble strips might be able to be looked into along with the addition of sidewalks. He stated these things would be outside the scope of the development’s responsibility, however. Commissioner Davis agrees the development itself adds value to the area but agrees traffic is a concern. He does not believe this development will greatly increase the traffic concer ns. Commissioner Bremer stated she agrees with other commissioners and likes the historical façade being kept. Her concern rests with the bike path safety and she asked Planner Sheriff if it can be looked into. Planner Sheriff stated there is already a separated lane which is the safest thing available easily. Chairwoman Rockweiler likes the historic preservation and understands the neighborhood concerns and would suggest law enforcement get more involved with the traffic and speeding concerns. Motion by Bremer seconded by Smale with regard to File No. Z -998, to recommend approval of the petitioner’s request for a Preliminary Plan for a Multifamily Integrated Design District Development subject to the following conditions: 1) The petitioner shall provide a tree survey of the site. 2) The petitioner shall revise the site plan to include a sidewalk and curb along Mill Street. 3) The petitioner shall preserve the existing trees along Mill Street to the greatest extent possible. AND by making said motion, we agree the Approval Criteria for Development Review has been met as outlined and presented in the Staff Report. Roll Call: Vote: 7-ayes: Bremer, Davis, Lehman, Rockweiler, Smale, Sobotta and Walsh. 0 -nays, 0-abstained, 0-absent. Motion Carried. Chairwoman Rockweiler closed the hearing regarding File No. Z-998 at 10:50 p.m. Staff Report: The next meeting is Wednesday November 17, 2021. Planner Sheriff gave information on a proposal coming forward soon for the Central Wastewater Treatment Plant along the riverfront. Commissioner Walsh announced his resignation from the Planning & Zoning Commission. 293 Department of Community Development McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2170 Fax: (815) 363-2173 www.cityofmchenry.org Adjourn: Motion by Smale and seconded by Rockweiler, all approved. Meeting adjourned at 10:55 p.m. 294 Department of Community Development McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2170 Fax: (815) 363-2173 www.cityofmchenry.org ORDINANCE NO 21- ORDINANCE GRANTING PRELIMINARY PLAN APPROVAL FOR THE TAYLOR PLACE APARTMENTS PLANNED MULTIFAMILY INTEGRATED DESIGN DISTRICT DEVELOPMENT AT 812 N MILL STREET WHEREAS, the City of McHenry, McHenry County, Illinois, is a home rule municipality as contemplated under Article VII, Section 6, of the Constitution of the State of Illinois, and the passage of this Ordinance constitutes an exercise of the City’s home rule powers and functions as granted in the Constitution of the State of Illinois; and WHEREAS, a petition has been filed with the City by Northpointe Development Corporation (“CONTRACT PURCHASER”), requesting preliminary plan approval for a Planned Multifamily Integrated Design District Development for the property located at 812 N Mill Street and legally described in Exhibit “A”, attached hereto and incorporated herein, the “SUBJECT PROPERTY”; and WHEREAS, a public hearing on said petition was held before the Planning and Zoning Commission on October 20, 2021 in the manner prescribed by ordinance and statute, and as a result of said hearing, the Planning and Zoning Commission did unanimously recommend to the City Council the granting of the requested Preliminary Plan for a Planned Multifamily Integrated Design District Development; and WHEREAS, the City Council has considered the evidence and recommendations from the Planning and Zoning Commission and finds that the approval of the requested Preliminary Planned Multifamily Integrated Design District Development is consistent with the objectives of the City of McHenry Zoning Ordinance to protect the public health, safety, morals and general welfare of its residents. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF MCHENRY, MCHENRY COUNTY, ILLINOIS, AS FOLLOWS: SECTION 1: That the SUBJECT PROPERTY is hereby granted preliminary approval for a Planned Multifamily Integrated Design District Development subject to the following conditions: 1. The CONTRACT PURCHASER shall submit final plans to be in substantial conformance with the plans attached hereto and incorporated herein as Exhibit “B”. 2. The CONTRACT PURCHASER shall provide a traffic impact analysis. 3. The CONTRACT PURCHASER shall conduct a tree survey of the site. 295 Department of Community Development McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2170 Fax: (815) 363-2173 www.cityofmchenry.org 4. The CONTRACT PURCHASER shall revise the site plan to include a sidewalk and curb along Mill Street. 5. The CONTRACT PURCHASER shall preserve the existing trees along Mill Street to the greatest extent possible. SECTION 2: This Ordinance shall be published in pamphlet form by and under the authority of the corporate authorities of the City of McHenry, McHenry County, Illinois. SECTION 3: This Ordinance shall be in full force and effect from and after its passage, approval, and publication in pamphlet form as provided by law. Passed this 1st day of November, 2021. Ayes Nays Absent Abstain Alderman Devine _____ _____ _____ _____ Alderman Glab _____ _____ _____ _____ Alderman Harding _____ _____ _____ _____ Alderman Strach _____ _____ _____ _____ Alderwoman Miller _____ _____ _____ _____ Alderman Santi _____ _____ _____ _____ Alderman McClatchey _____ _____ _____ _____ ______________________ ________________________ Wayne Jett, Mayor Trisha Ramel, City Clerk 296 Department of Community Development McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2170 Fax: (815) 363-2173 www.cityofmchenry.org Exhibit A Legal Description of the Subject Property PARCEL 1: THAT PART OF LOT 18 OF THE COUNTY CLERK’S PLAT OF SECTION 27, TOWNSHIP 45 NORTH, RANGE 8, EAST OF THE THIRD PRINCIPAL MERIDIAN, ACCORDING TO THE PLAT THEREOF RECORDED MAY 6, 1902 IN BOOK 2 OF PLATS, PAGE 41, DESCRIBED AS FOLLOWS: BEGINNING AT THE INTERSECTION OF THE CENTER’S OF MILL STREE AND MCHENRY AND CRYSTAL LAKE ROAD IN THE VILLAGE OF WEST MCHENRY; THENCE NORTH AND EAST ALONG THE CENTER LINE OF CRYSTAL LAKE ROAD, TO THE INTERSECTION OF THE CENTER LINE OF MAIN STREET WITH SAID CENTER LINE OF CRYSTAL LAKE ROAD; THENCE SOUTH AND EAST ALONG THE CENTER LINE OF MAIN STREET, A DISTANCE OF 246.0 FEET; THENCE SOUTH AND WEST ALONG A LINE THAT INTERSECTS THE CENTER LINE OF MILL STREET, AT A POINT 295.0 FEET SOUTH AND EAST OF CRYSTAL LAKE ROAD, AS MEASURED ALONG THE CENTER LINE OF MILL STREET; THENCE NORTH AND WEST ALONG SAID CENTER LINE OF MILL STREET, 295.0 FEET TO THE PLACE OF BEGINNING, (EXCEPTING THEREFROM THAT PART CONVEYED BY WILLIAM SPENCER AND MARY FRANCIS SPENCER, HIS WIFE, TO HELENA M. ALLISON B Y WARRANTY DEED DATED JULY 31, 1926 AS RECORDED IN BOOK 174 OF DEEDS, PAGE 517) IN MCHENRY COUNTY, ILLINOIS. PARCEL 2: THAT PART OF SECTIONS 27 AND 34, TOWNSHIP 45 NORTH, RANGE 8, EAST OF THE THIRD PRINCIPAL MERIDIAN, DESCRIBED AS FOLLOWS: COMMENCING AT THE NORTHEAST CORNER OF SAID SECTION 34; THENCE SOUTHERLY ALONG THE EAST LINE OF SAID SECTION 34, A DISTANCE OF 38.34 FEET, FOR A PLACE OF BEGINNING; THENCE CONTINUING SOUTHERLY ALONG SAID EAST LINE, A DISTANCE OF 282.36 FEET TO THE NORTHEAST ERLY LINE OF MILL STREET; THENCE NORTHWESTERLY ALONG THE NORTHEASTERLY LINE OF MILL STREET, A DISTANCE OF 479.2 FEET; THENCE NORTHEASTERLY ALONG A LINE WHICH FORMS AN ANGLE OF 81 DEGREES, 08 MINUTES TO THE RIGHT WITH THE PROLONGATION OF THE LAS DESCRIBED COURSE, A DISTANCE OF 216.3 FEET; THENCE SOUTHEASTERLY, A DISTANCE OF 309.88 FEET TO THE PLACE OF BEGINNING, (EXCEPTING THEREFROM THAT PART CONVEYED BY J. ALTHOFF TO STEPHEN E. BUSS BY WARRANTY DEED DATE DECEMBER 27, 1994 AS DOCUMENT NUMBER 1994R0070820) IN MCHENRY COUNTY, ILLINOIS. Exhibit B 297 Department of Community Development McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2170 Fax: (815) 363-2173 www.cityofmchenry.org Site Plan, Preliminary Landscape Plan, and Building Elevations 298 Page 141 of 144299 Page 142 of 144300 Page 143 of 144301 Page 144 of 144302 10/26/2021 15 15 303 10/26/2021 16 16 304 10/26/2021 17 17 305 10/26/2021 18 18 306 10/26/2021 19 19 307 10/26/2021 20 20 308 10/26/2021 21 21 309 10/26/2021 22 22 310 10/26/2021 23 23 311 312 313 314 Staff Report for the City of McHenry Planning & Zoning Commission Staff Comments The following comments and conclusions are based upon staff analysis and review prior to this hearing and are to be considered viable unless evidence is established to the contrary. Staff may have additional comments based upon the testimony presented during the public hearing. BACKGROUND & REQUEST SUMMARY The petitioner, Northpointe Development Corporation (Contract Purchaser), is proposing to construct a 54- unit planned multifamily integrated design district development at 812 N Mill Street called Taylor Place Apartments. To accommodate the proposed development, the petitioner is requesting Preliminary Plan approval prior to submitting their Final Plans. Upon completion, the proposed development will consist of: • A new three-story, forty-six-unit (46) apartment building. • A new two-story, four-unit (4) townhome building. • An adaptively reused, two-story, four-unit (4) townhome building (Identified as the beige building). • An adaptively reused, one-story, community room building featuring a fitness room, leasing office, and common space. The developer will be applying for the Illinois Housing Development Authority’s Low Income Housing Tax Credit (LIHTC) to construct the development. This program requires developers to set aside all units for residents earning 30-80 percent or less of the prevailing McHenry County Area Median Income (AMI). CITY OF MCHENRY ORDINANCES • The petitioner must meet the Approval Criteria for Development Review, listed in §11-11-5 of the City of McHenry Zoning Ordinance. STAFF ANALYSIS FUTURE LAND USE MAP RECOMMENDATION The Future Land Use Map recommends commercial use of the property. The proposed use of the property for multifamily is not consistent with the Future Land Use Map recommendation. The subject property is within the Main Street Sub-Area Plan boundaries. The plan identifies the future land use of the project area as mixed use commercial and residential. The proposed development is somewhat consistent with this recommendation. CURRENT LAND USE AND ZONING The subject property is currently zoned I-1 Industrial District and has been utilized for commercial warehousing and storage. The primary concern for the proposed development is traffic impact and how the proposed use will blend in with the surrounding properties. The subject property, also known as the historic mill or Hanly’s Mill, was first constructed in the 1870s. The single-family residential subdivision to the south was plated in 1893. For the past 120+ years, an industrial use has located next to the existing residential neighborhood. The proposed multifamily development would be considered a less intense use compared to industrial. 315 316 COMPREHENSIVE PLAN OBJECTIVES AND POLICIES Overall, staff believes the proposed development is consistent with the City’s Comprehensive Plan objectives and policies and the Main Street Subarea Plan Goals and Objectives. Staff comments italicized. Land Use • Policy: “Promote the Integrated Design District land use for unique or urban properties in the City.” (p. 27) The petitioner is proposing to preserve the historic mill building which was a wood mill in the 1870s and then later the home of Taylor Made Golf. With multiple buildings, the Integrated Design District is appropriate to accommodate the adaptive repurpose of the existing mill structure with the added multifamily housing. • Policy: “Encourage redevelopment of older commercial areas by adopting Sub-Area Plans or working through the different sections of the Plan to help facilitate the development.” (p. 27) The subject property is located within the Main Street Sub-Area Plan. • Policy: "Promote high-density residential only in areas where transportation services exist to facilitate the efficient movement from home to work or services for the residents." (p. 28) The property is adjacent to the Metra Station and would be considered a transit-oriented development 1. • Policy: “Encourage IDD land use and zoning to facilitate the completion of multi-use projects located on urban sites.” (p. 29) The developer is proposing to construct a new 46-unit apartment building, adaptively reuse the historic mill site by converting it into 2, 4-unit townhome buildings with amenities and construct a new 4-unit townhome building. With multiple buildings, staff believes the proposed IDD development is appropriate. Transportation • Policy: “Avoid creating through traffic on local streets.” (p. 41) The proposed access on Mill Street would create through traffic on local streets. However, these access points are required for the internal circulation of emergency vehicles. It is also important to note the location is within walking distance of the Metra Station and many downtown amenities. This proximity has the added benefit of reducing trip generation. The residential subdivision to the south of the subject property was plated in 1893. Cars weren’t accessible to the workforce until after the 1920s post-WWI. As such, the layout and design of roadways for single-occupancy vehicles wasn’t a design priority because most didn’t know they needed to be. The functional classification system2 (arterials, collectors, local roads, etc.) wasn’t created by the Federal Highway Administration until 1973 and then later nationally adopted to be consistent with the states in 1995. The existing layout of the roadway is the same today as it was back in 1893. According to the Institute of Transportation Engineers (ITE), during peak PM hours (4-6PM), suburban low-rise apartments/townhomes generate approximately 0.56 trips per unit. This equates to 30.24 cars between 4-6PM (15.12 cars/hour). Staff does not believe the proposed development would have a significant impact on the adjacent neighborhood. 1 Transit Oriented Developments are typically within walking distance of a train station which equates to approximately 0.25-0.5 miles. 2 Functional classification is the process by which streets and highways are grouped into classes according to the character of service they are intended to provide. http://ced1.org/wp-content/uploads/2010/03/ODOT-Hwy-funtional-classification-guide.pdf 317 Main Street Subarea Plan – Overall Goal: “The goal of the Main Street Sub-Area Plan is to provide guidelines that will foster redevelopment of the area into a mixed-use and pedestrian-friendly neighborhood, taking advantage of public transportation options, while maintaining the existing historical integrity of the sub-area.” (p. 12) Overall, staff believes the proposed development is consistent with the plan of the Main Street Subarea. Being located within one of the more historic areas, the Commission should provide feedback on the proposed building elevations and small site details to complement the character of the downtown. Main Street Subarea Plan – Land Use Objectives and Policies • “Promote high-density residential development in the area near the Metra station.” (p. 12) The proposed development is in conformance with the Main Street Plan recommendation. • “Minimize impacts of existing and new development on older established residential neighborhoods.” (p. 12) The petitioner is proposing two full access points off Mill Street with an additional full access on Main Street. The residential subdivision to the south of the subject property is the Hanly’s 1st and 2nd Addition to West McHenry Subdivision that was originally plated in 1893. The Mill itself was built around 1870. Based on the estimated traffic generated during peak hours, staff does not believe the proposed use would have a significant impact on the existing neighborhood. • “As existing industrial uses west of the railroad tracks turn over or relocate, development of these sites should be mixed-use with non-residential on first floor and residential on remaining floors, with potential of having underground parking.” (p. 14) The proposed development is somewhat consistent with this recommendation; however, there is no commercial use proposed on the first floor of the development. • “Maintain historic Mill building as commercial/office property.” (p. 18) The proposed development is somewhat consistent with this recommendation. The Mill is being adaptively repurposed into a two-story, 4-unit, townhouse with a community space in the red brick building. SITE PLAN ANALYSIS Overall, the proposed site plan is mostly consistent with the City’s Zoning Ordinance Requirements. See below staff comments for various site elements. • Parking. The petitioner is proposed a total of 110 parking spaces in lieu of the required 131 spaces. As noted in the Authentix Development, the City’s Parking Ordinance requirements are excessive in comparison to other municipalities. Staff is comfortable with the proposed parking composition. However, the petitioner will most likely be revising their site plan to incorporate additional green space at the request of City Council. This may result in a reduction in parking. Multifamily Apartments Required Parking # units Required Spaces Total Studio 1.5 0 0 1 2 22 44 2 2.33 11 25.63 318 3 2.33 13 30.29 99.92 Townhomes Required Parking # units Required Spaces Total Studio 1.5 0 1 2 2 4 2 2.33 2 4.66 3 2.33 4 9.32 Total Spaces 17.98 Total Required Visitor Parking 13.5 Total Required Resident Parking 117.9 Total Residential and Visitor Parking 131.4 Proposed Parking 110 Proposed Spaces/ Dwelling Unit 2.037037037 • Landscaping & Screening. The petitioner has provided a preliminary landscape plan for the Commission’s review. Much of the existing site is covered in impervious surface. Staff believes the proposed landscaping will be a significant improvement to the site. The petitioner is also proposing to preserve the existing mature trees along Mill Street. Staff will be recommending a tree survey prior to their final submittal. • Density, Bulk, and Setback Information. The petitioner is proposing approximately 54 units on 2.9 acres which equates to 18.6 dwelling units per acre. The most recent downtown development was on Green Street with the River Place Apartments which contains 27 dwelling units on a 1.02-acre site (26 dwelling units per acre). The C-4 Downtown Business District allows development to build to the property line. The developer is proposing a 25-foot setback along Mill Street. • Pedestrian Circulation. Currently, there are no sidewalks proposed on Mill Street. Staff is recommending the petitioners provide sidewalk in the right of way along with curb. Staff is also recommending the petitioners provide a tree survey when they return for their final submittal. The developer should attempt to preserve the existing trees to the greatest extent possible. 319 STAFF RECOMMENDATION & MOTION In summary, staff believes the proposed use in substantial conformance with the objectives and goals of the City’s Comprehensive Plan and Development Policies including the Main Street Subarea Plan. Located within the historic downtown area, staff believes the proposed architectural details would blend in with the surrounding properties. Staff does not believe the proposed development would create any adverse impacts and would be a less intense use than the existing Industrial Zoning. Staff does not object to the petitioner’s request and recommends approval subject to appropriate conditions. If the Planning & Zoning Commission agrees with staff’s assessment, then the following motion is recommended: MOTION: A motion to recommend approval of a Preliminary Plan for a Multifamily Integrated Design District Development subject to the following conditions: 1. The petitioner shall provide a tree survey of the site. 2. The petitioner shall revise the site plan to include a sidewalk and curb along Mill Street. 3. The petitioner shall preserve the existing trees along Mill Street to the greatest extent possible. AND by making said motion, you agree the Approval Criteria for Development Review has been met as outlined in the Staff Report. APPROVAL CRITERIA FOR DEVELOPMENT REVIEW (§11-11-5). Staff comments italicized below. A. In what respects is the proposed plan consistent with the City’s Comprehensive Plan and the stated purpose and intent of the IDD regulations? Staff believes the proposed plan is consistent with the Comprehensive Plan and the Intent of the IDD regulations. The Main Street Subarea plan identifies the area as being mixed use residential and commercial in addition to increasing density near the Metra Station. Staff believes the proposed development is consistent with the plan. The Main Street Subarea Plan also identifies the historic preservation and adaptive re-use of the space as office. The petitioner is proposing to utilize the front building as a community space with the conversion of the Mill structure to a 4-unit townhouse. Staff believes this is consistent with the Main Street Subarea Plan. B. To what extent does the proposed plan depart from the requirements of the City’s Zoning and Subdivision Control and Development Ordinances that are otherwise applicable to the property, including, but not limited to: density, bulk regulations and uses and the reasons why such departures are deemed to be in the public interest and/or as a result of the physical topography of the property and other circumstances unique to the property and not solely in the interest of the developer? The City of McHenry’s Parking Ordinance in comparison to other municipalities is excessive and needs to be amended to reflect modern trends. Requiring excess parking only adds to the amount of impervious surface and less green space. Staff believes the proposed amount of parking is adequate to service the development. C. To what extent and what accommodations are made for the unique topographical and/or environmental features of the property, how are they incorporated into the overall development and design of the property and management plan for the property, while preserving and maintaining the integrity and character of those features and using them for the overall benefit of the public? The petitioner is proposing to preserve the historic mill building by adaptively repurposing the site into residential townhomes and a community space. Staff believes this is a unique cultural feature of the property and that its preservation is important to the City of McHenry. 320 D. To what extent does the proposed plan provide adequate control for vehicular traffic and pedestrian circulation, accommodation for and protection of designated open space and further the amenities of light, air, recreation and visual enjoyment? Located within the downtown and adjacent to Fort McHenry, Prairie Path, and Metra Station, staff believes the proposed development is consistent with a transit-oriented development. Staff estimates the project will generate approximately 15 cars per hour during peak hour traffic. Staff does not believe this will generate a significant impact on the surrounding properties. E. Does the plan provide appropriate street connectivity and functional connection among buildings within the development, such as pedestrian connections, that promote the public interest and enhance the quality of life of persons within the development? The petitioner is providing a sidewalk and green space within the development. Staff is also recommending a condition of approval for the installation of sidewalk along Mill Street while preserving the existing mature trees to provide a more pleasant pedestrian experience. F. Is there a continuity of scale amongst the buildings to promote visual enjoyment, while maintaining maximum sunlight exposure? Staff believes there is a continuity of scale amongst the structure to promote visual enjoyment, while maintaining maximum sunlight exposure. G. The relationship and compatibility of the proposed plan to the adjacent properties. The developer is incorporating the existing historic mill building into the development. The development is also adjacent to the Metra Station which would classify the development as a transit-oriented development. Staff also believes the traffic generated from the site to have minimal impact on the adjacent single-family homes. The site is approximately 5 feet lower than the adjacent single family homes which allows more privacy for the adjacent single family residences. H. The desirability of the proposed plan with regard to physical development, tax base and economic well being of the City. The City of McHenry has long desired to revitalize the area west of the Metra Station. Industrial Use is not compatible with a downtown setting and a transit-oriented development would only help to improve the City’s chances of increasing the level of train service. I. The desirability of the proposed plan with regard to the burden placed on City services and facilities in relation to the public benefits that will be realized after the development of the property, including, but not limited to: sewer, water, fire, police, schools, roads and making adequate provision for those public services. Staff believes the plan is highly desirable and the public benefit received outweighs any burden on public services. J. Is the plan in conformance with existing Federal, State and other local regulations? Staff believes the proposed development is in conformance with all existing Federal, State and local regulations. Attachments: • Petitioner’s Application and attachments • Receipt of publication of legal notice 321 Northpointe Development Low-Income Housing Tax Credit (LIHTC) experience Our team is uniquely experienced working in the areas of new construction family and senior multi-family housing, historic rehabilitation, and commercial development throughout the mid- west. Northpointe envisions vibrant communities that strengthen neighborhoods, enhance livelihoods, respond to the environment, and connect people and places. The company's mission is to provide sustainable housing for communities in a collaborative, honest, and transparent manner. Northpointe has a great reputation with the communities where we've developed housing. Northpointe is one of Wisconsin’s Housing Finance Authorities largest and longest-standing customers, consistently receiving the highest developer team score possible for a for-profit developer. 100% of the Housing Credit awards received by Northpointe have moved forward into quality housing developments. Northpointe and its principals have the capacity to successfully complete the project as well as secure market to above market equity pricing. Northpointe has maintained a reputation for creative problem solving. We have received numerous awards for our ability to re-think spaces and places – including: 2013 Top Projects Award Milwaukee 2015 National Historic Preservation Award 2014 Runner-Up for J. Timothy Anderson National Award for Excellence 2017 Wisconsin Trust for Historic Preservation Award 2019 Remarkable Milwaukee Award 2019 Carolyn Kellogg Historic Preservation Award Most of our portfolio utilizes the various Housing Tax Credit programs as well as other available resources including Home, TIF, Brownfield Grants, Federal and State Historic Credits. A significant number of our developments have required us to connect with government entities, including the Department of Natural Resources, HUD, IHDA, WHEDA, WEDC, the Federal Energy Regulatory Commission. Our team also has previous experience working on Choice Neighborhood and NMTC projects. Northpointe Development has made equity and inclusion work a top priority in recent years. Our work is highlighted by our partnerships with DreamLane Real Estate Group, minority-managed non-profit organizations such as Housing Opportunity Development Corporation, and our continual push for the inclusion of MBE/WBE/DBE construction sub-contractors. Top-Notch Reputation Northpointe Development is well regarded in the industry after years of successful project completions. With our track record, the City could rest assured they will be heard, and proud of Taylor Place Apartments for years to come. 322 The table below summarizes some of our Housing Tax Credit work: Northpointe Experience # of Units Total project costs Year Completed The Rivers Senior Living 60 $8,231,087 2011 Bayside Senior Living 24 $3,324,739 2011 Kenwood Senior Living 24 $3,519,290 2012 Fair Acre Townhomes 55 $8,730,209 2012 The Fountains of West Allis 35 $3,324,333 2012 Blackstone Cottages 24 $3,646,938 2013 Oconomowoc School 55 $10,798,685 2013 Nicolet Townhomes 60 $9,463,364 2014 Anthem 80 $8,833,073 2015 Mercantile Lofts 36 $8,676,974 2016 The Rivers II Senior Living 40 $6,205,802 2016 Shoe Factory Lofts 55 $11,767,591 2016 Woolen Mills Lofts 60 $13,077,712 2017 Bayshore Townhomes 32 $5,722,857 2017 Century Building 44 $13,003,776 2018 Whispering Echoes 28 $5,054,224 2018 Cranberry Woods 40 $6,943,913 2018 Regency Place 40 $7,030,069 2019 Arbor Terrace 40 $7,166,527 2020 Crescent Lofts 69 $16,676,852 2021 City Center 40 $7,781,249 2021 LIHTC EXPERIEINCE 29 LIHTC AWARDS $230,000,000 IN DEVELOPMENT 1,200 UNITS 323 Callan Schultz Callan Schultz is a founder and partner of both Keystone and Northpointe Development, he has been active in the development of multi-family housing since 1999. Cal formed Keystone Development, LLC in 1999 and later started Northpointe Development with Andy Dumke in 2011. Throughout his career, he has built over 3,500 units of multi-family housing throughout the states of Wisconsin, Michigan, Ohio, and Iowa. Andrew Dumke Andrew Dumke is a founder and partner of both Alliance and Northpointe Development, he has been active in many aspects of the real estate industry since 1993. Andy spent most of his career developing commercial real estate with Alliance Development – Andy expanded his portfolio to multi-family with the establishment of Northpointe Development. Andy has found great synergies between the sectors – specifically when it comes to master development planning and collaborating with municipalities. Alliance Development has developed over $200mm in real estate. Samples of nationally accredited tenants are Starbucks, Panera, Fed EX/Kinkos, TJ Maxx, US Cellular, Verizon, Chipotle, Baker Tilly, and Old National Bank. With a portfolio of over 1,000,000 square feet, Andy is involved with multi-family apartments, commercial office buildings, warehouse buildings, and retail centers. Sean O’Brien Sean O’Brien is a partner of Northpointe Development, he has been involved with housing and community development for over 15 years. Prior to Northpointe, Sean worked at the Wisconsin Housing and Economic Development Authority (WHEDA) for 14 years. The last 6 years of which he was the Director of Commercial Lending. As Director, Sean led the development of Wisconsin's Affordable Housing Policy and allocation of the Low-Income Housing Tax Credit Program. In 2018, the Commercial Lending team implemented the State Housing Tax Credit Program which allowed WHEDA to allocate a new credit that creates or preserves at least a thousand affordable homes annually. For four years, Sean served on the Community Investment Advisory Council for the Federal Home Loan Bank of Chicago. Jake Victor Jake Victor is Vice President of Development for Northpointe Development, he began his career at WHEDA. Jake was tasked with allocating the state’s Housing Tax Credit programs, originating multifamily loans, and overseeing Wisconsin's National Housing Trust Fund Program. Jake successfully originated over $140mm in lending activity (14 developments) for affordable housing and was deeply involved with more than 30 LIHTC transactions. 324 325 326 327 328 329 FORM A File Number PUBLIC HEARING APPLICATION Planning and Zoning Commission City of McHenry 1. Name of Applicant Northpointe Development Corporation 230 Ohio Street Suite 200 Oshkosh, WI 54902 Contact: Jake Victor Fax: (920) 230 – 3628 Phone: (920) 230 – 6485 Jake@NorthpointeDev.com 2. Name of Property Owner Althoff & Associates, Ltd. (Represented by Jack Minero, contact info below) 330 W. Virginia Street Crystal Lake, IL 60014 (815) 382 – 9728 Contact: Jack Minero jminero@starckrealtors.com 3. Name of Engineer Vierbicher Associates, Inc. 999 Fourier Drive, Suite 201. Madison, WI 53717 (608) 821-3947 Contact: Justin Zampardi jzam@vierbicher.com 4. Name of Attorney Hirschberg Law, LLC 601 Oregon Street, Suite A Oshkosh, WI 54902 Contact: Jason J. Hirschberg Fax: (920) – 744 – 0102 Phone: (920) 267 – 5780 Jason@hirschberglaw.com 5. Common Address or Location of Property Land assemblage at W. Crystal Lake Rd. / Mill Street Assemblage (Parcels: 09-34-228-002, 09-27-480- 005, 09-27-480-006, 09-27-480-001) 6. Requested Action Zoning Map Amendment (Re-zoning) from I-1 Industrial District to Integrated Design District (IDD), and Conditional Use Permit for an Integrated Design District Planned Multifamily Development 330 FORM A NARRATIVE Northpointe Development and Housing Opportunity Development Corporation (“Developer”) are proposing the new construction and adaptive reuse of Taylor Place Apartments, a fifty-four-unit Section 42 Housing Tax Credit (“LIHTC”) multi-family rental housing development located in the City of McHenry, Illinois. More specifically, the subject site is comprised of several adjoining parcels currently improved by Office and Warehouse buildings located at 812 N Mill St, McHenry, IL 60050 and 4103 W Crystal Lake Rd, McHenry, IL 60050. Parcel Numbers and Legal Descriptions are attached. Upon completion, the proposed Taylor Place Apartments will consist of: • A new construction, three-story, forty-six-unit apartment building • A new construction, two-story, four-unit townhome building • An adaptively reused, two-story, four-unit townhome building (Identified as the beige building) • An adaptively reused, one-story, community room building featuring a fitness room, leasing office, and common space Units will be marketed towards residents of all ages. Common spaces will include a playground and community garden. The property will also feature 24 garages spaces. The Developer proposes to set aside all units for residents earning 30-80 percent or less of the prevailing McHenry County Area Median Income (“AMI”) using an allocation of Section 42 LIHTCs from the Illinois Housing Development Authority’s (“IHDA’s”) rental housing tax credit program. Most units will be marketed towards individuals earning 50-80% of AMI. Most of the subject site is rectangular in shape and flat in topography. The subject site is bordered by a variety of uses, including: North: Commercial/Industrial Uses East: Metra Rail; Multi-Family Housing South: Single Family Housing West: Commercial Uses and Fort McHenry 331 FORM A Appropriate Use of Integrated Design District (IDD): A Zoning Map Amendment to the Integrated Design District (IDD) is being requested. In meeting with City Staff, Council Members, and based of a productive neighborhood meeting – several important considerations have been raised. Emphasis was placed on the site’s landscaping, the adaptive reuse of the two well-preserved historic buildings, and mitigating the traffic impact of the proposal. IDD zoning allows the flexibility necessary for Northpointe Development to develop the site in a manner that respects these priorities. Based upon Northpointe’s extensive experience in multi-family housing, the development team was comfortable in reducing the number of parking stalls beyond what is typically required per city ordinances to provide additional landscaping features. The plan carefully considered both vehicular and pedestrian connectivity, providing ingress/egress on both Main Street and N. Mill Street as well as significant investment in sidewalks that connect both the multiple buildings and landscaping spaces provided throughout the property. Architectural features were selected in a manner that conforms with the overall character of existing residential uses – both multi- and single- family housing directly adjacent to the site. Building placement was determined to maximize the capture of sunlight and mitigate the impact of commercial uses on future residents and on adjacent long-term homeowners. Units and amenities were purposely placed to provide accommodation for light, air, recreation, and visual enjoyment. The re-development of the proposed site has been identified by City Staff as a priority with the expectation that higher density residential housing off Main Street could serve as a catalyst for additional economic growth. In conversations with Metra, the city indicated that adding additional residential housing in the area may result in future improvements to the existing public transportation system. With 54 units, there is an expected impact on City services and facilities. This is mitigated through the generated tax base from the site’s redevelopment, future spending of residents, and future economic development generated. This plan will confirm with existing Federal, State, and local regulations. The proposed plan departs from the City’s Zoning and Subdivision Control and Development Ordinances as defined below: • Parking: An exception to the Parking Ordinance is being requested as outlined below to accommodate additional landscaping space as requested by City Council members and adjacent neighbors. Based on the decade long experience of Northpointe Development, the nature of the development does not require the typical parking ratio outlined in the ordinance. This is in large part due to the easily accessible public transportation system. Ordinance Required Per Unit Stalls Required 1 Bedroom 2.00 48 2 Bedroom 2.33 70 Parking Ordinance requires 118 parking stalls or 2.19 stalls/unit. The petitioner is requesting an exception to provide the development with 100 parking stalls or 1.85 parking stalls/unit. • Landscaping and Screening: The proposed plan will adhere to and likely exceed the requirements of all landscaping and screening ordinances • Subdivision Ordinance: No subdivision is being requested in connection with this proposal 332 FORM A Current Use of Property Industrial and Office 7. Current Zoning Classification of Property, Including Variances or Conditional Uses (Interactive Zoning Map) Specific Parcel Zoning: 09-34-228-002: I-1 Industrial District, Commercial Use 09-27-480-005: I-1 Industrial District, Office Use 09-27-480-006: I-1 Industrial District, Industrial Use 09-27-480-001: I-1 Industrial District, Vacant 8. Current Zoning Classification and Land Use of Adjoining Properties (Interactive Zoning Map) North: I-1 Industrial District, commercial warehousing South: RS-4 High-Density Single Family Residential East: C-4 Downtown Commercial District, Vacant/Metra Parking Lot West: C-5 Highway Commercial (Office Space), RS-3 Medium-High Density Single Family Residential (City Park), RS-4 High-Density Single Family Residential District 9. Required Attachments (check all items submitted) Please refer to the Public Hearing Requirements Checklist to determine the required attachments. Application Fee (amount) $ 950.00 Narrative Description of Request FORM A – Public Hearing Application FORM B – Zoning Map Amendment (Rezoning) Application FORM C – Conditional Use Application FORM D – Zoning Variance Application FORM E – Use Variance Application Proof of Ownership and/or Written Consent from Property Owner in the Form of an Affidavit Plat of Survey with Legal Description List of Owners of all Adjoining Properties Public Hearing Notice Sign (Provided by the City) Site Plan Landscape Plan (Conceptual acceptable for preliminary, final landscape plan for final plan approval) Architectural Rendering of Building Elevations Performance Standards Certification Traffic Analysis School Impact Analysis 333 FORM B Page 1 of 1 FORM B File Number ZONING MAP AMENDMENT (REZONING) Planning and Zoning Commission City of McHenry 333 South Green Street McHenry, IL 60050 Tel: (815) 363-2170 Fax: (815) 363-2173 Table 33 of the City of McHenry Zoning Ordinance provides that in recommending approval of a Zoning Map Amendment (Rezoning), the Planning and Zoning Commission shall transmit to the City Council written findings that all of the conditions listed below apply to the requested action. Please respond to each of these conditions as it relates to your request. 1. Compatible with Use or Zoning of Environs The proposed use(s) or the uses permitted under the proposed zoning classification are compatible with existing uses or existing zoning of property in the environs. 2. Supported by Trend of Development The trend of development in the general area since the original zoning of the affected property was established supports the proposed use(s) or zoning classification. 3. Consistent with Comprehensive Plan Objectives The proposed use(s) or zoning classification is in harmony with the objectives of the Comprehensive Plan of the City as viewed in light of any changed conditions since the adoption of the Plan. 4. Furthers Public Interest The proposed use(s) or zoning classification promotes the public interest and not solely the interest of the applicant. The proposed use is a 54-unit multi-family building. This use is consistent with surrounding single-family and multi-family uses. The proposed site has been identified as one prime for re-development into multi-family housing. Removal of industrial uses on Main Street aligns with the city's long term planning vision. The proposes multi-family use aligns with the objective of the City's planning department in bringing revitilization and new development onto Main Street. The proposed use will create a 54-unit affordable living community with the intention of providing existing McHenry residents with a safe, affordable place to call home. 334 FORM C Page 1 of 2 FORM C File Number CONDITIONAL USE PERMIT Planning and Zoning Commission City of McHenry 333 South Green Street McHenry, IL 60050 Tel: (815) 363-2170 Fax: (815) 363-2173 Table 31 of the City of McHenry Zoning Ordinance provides that in recommending approval or conditional approval of a Conditional Use Permit, the Planning and Zoning Commission shall transmit to the City Council written findings that all of the conditions listed below apply to the requested action. Please respond to each of these conditions as it relates to your request. 1. Traffic Any adverse impact of types or volumes of traffic flow not otherwise typical in the zoning district has been minimized. 2. Environmental Nuisance Any adverse effects of noise, glare, odor, dust, waste disposal, blockage of light or air, or other adverse environmental effects of a type or degree not characteristic of permitted uses in the zoning district have been appropriately controlled. 3. Neighborhood Character The proposed use will fit harmoniously with the existing natural or man-made character of its surroundings and with permitted uses in the zoning district. The use will not have undue deleterious effect on the environmental quality, property values, or neighborhood character existing in the area or normally associated with permitted uses in the district. Site ingress/egress as well as the number of parking spots provided has been carefully considered to mitigate the proposed multi-family development on surrounding residents. Any potential adverse effects of noise, glare, odor, dust, water disposal, blockage of light or air, or other adverse environmental effects on adjoining land owners has been mitigated to the furthest extent possible. This includes careful selection on the placement of buildings, parking spaces, common areas, and landscaping. The architectural design utilized in the proposal as shown by elevations and renderings was carefully selected to align with existing residential uses and respect the impact of the proposed development on community members. Historic buildings are being preserved in line with the wishes of residents, which also provides for a good transitional use between W. Crystal Lake Road and N. Mill Street. 335 FORM C Page 2 of 2 4. Public Services and Facilities The proposed use will not require existing community facilities or services to a degree disproportionate to that normally expected of permitted uses in the district, nor generate disproportionate demand for new services or facilities, in such a way as to place undue burdens upon existing development in the area. 5. Public Safety and Health The proposed use will not be detrimental to the safety or health of the employees, patrons, or visitors associated with the use nor of the general public in the vicinity. 6. Other Factors The proposed use is in harmony with all other elements of compatibility pertinent to the Conditional Use and its particular location. 336 Department of Community & Economic Development McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2170 Fax: (815) 363-2173 www.cityofmchenry.org AGENDA SUPPLEMENT TO: Mayor and City Council FOR: November 1, 2021 Regular City Council Meeting FROM: Cody Sheriff, City Planner RE: Ordinance granting a Use Variation, and Zoning Variations for a 50 -unit Multifamily Apartment Building at 914 N Front Street. ATT: 1. Unapproved Planning and Zoning Commission Minutes dated October 20, 2021 2. Ordinance granting a Use Variation, and Zoning Variations for a 50-unit Multifamily Apartment Building at 914 N Front Street. 3. Planning & Zoning Commission Staff Report 4. Application Packet AGENDA ITEM SUMMARY: The petitioner, Commonwealth Development Corp. of America, is proposing to construct a 50-unit, 3-story, multifamily apartment building at 914 N. Front Street. To accommodate the development, the petitioner is requesting zoning approval for the following items: • A Use Variation to allow a multifamily apartment building within the C -5 Highway Commercial District. • A Zoning Variation to allow a corner side yard setback of 19’ in lieu of the required 30 feet. • A Zoning Variation to allow 100 parking spaces in lieu of the required 124 spaces. • Any other variations necessary to accommodate the proposed development. If the petitioners are approved, staff will work with the petitioners to draft a development agreement for the vacation of the right-of-way to the north of the property along with a reduction in capital development impact fees based on actual usage. 337 Department of Community Development McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2170 Fax: (815) 363-2173 www.cityofmchenry.org 1 PLANNING & ZONING COMMISSION DISCUSSION & RECOMMENDATION: A Planning & Zoning Commission hearing was held on October 20, 2021. The primary concern for the proposed development was related to traffic generation, how the existing development would blend in with the surrounding properties, and the desire of the city to lose commercial property along IL-31 before IDOT’s expansion of the roadway. Commissioners also noted the area somewhat blighted with older commercial properties that have not aged well. New investment in the corridor would hopefully have a catalytic effect and encourage reinvestment in the area. The Commission also expressed concern about the Main Street Subarea plan’s recommendation for medium density residential on the west instead of high density residential. They also agreed with the idea of having more high density residential on the east side of IL-31 due to the already existing multifamily near the development site. Ultimately, the Commission voted to recommend approval of the development (5-yay; 2-nay) to City Council. STAFF ANALYSIS: The petitioner is seeking approval to build a 50-unit, 3-story, multifamily apartment building on the former Just For Fun Roller Rink Site. The Main Street Subarea plan recommends a mix of office/entertainment commercial uses for the property. However, directly west of the property, the subarea plan recommends medium density residential. There are also several other multifamily apartments to the south and east of the subject property. Located on a State Highway, staff does not believe traffic generated from the proposed development will generate a significant impact on the surrounding properties. The petitioner has since revised the site plan and building elevations from the prior conceptual presentation to City Council. The petitioners have added underground parking, additional green space, and a small playground area. At the request of staff, the petitioner added a pedestrian crossing to the adjacent Center Street Park. A condition of approval has been added that the developer shall enter into an agreement with the City to expand the existing facilities in Center Street Park or provide a monetary donation in lieu of improvements. If the City Council concurs, it is recommended that the attached Ordinance granting a Use Variation, and Zoning Variations for a 50-unit Multifamily Apartment Building at 914 N Front Street be approved. (City Council vote-simple majority). 338 Department of Community Development McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2170 Fax: (815) 363-2173 www.cityofmchenry.org 2 Unapproved Planning & Zoning Commission Minutes from October 20, 2021 File No. Z-999 Commonwealth Development Corp. of America Use Variation and Zoning Variations for a Multifamily Building at 914 N Front Street Chairwoman Rockweiler called the hearing to order at 8:50 p.m. regarding File No Z -999 a Use Variation and Zoning Variations for a Multifamily Building at the subject property, commonly known as 914 N. Front Street. Chairwoman Rockweiler confirmed all legal posting requirements have been met. Attorney Joe Gottemoller was in attendance. Tyler Sheeran, with Commonwealth Develo pment Corp. of America, who resides in Verona WI and Ben Marshall, 1823 Brooklyn Dr., Bristol, WI were sworn in. Attorney Gottemoller stated they are requesting a use variance and zoning variations on the old McHenry roller rink site. Mr. Sheeran gave a p resentation on the Commonwealth Development Front Street Housing Development that they are proposing. The Corporation was established by a Marine Corps veteran to establish affordable workforce housing. It is not Section 8 housing. An amended drawing was presented from the original presentation to City Council and that which was included in the Staff Report which includes more open green space and some underground parking. Attorney Gottemoller stated the use variance criteria is addressed with convenien t transportation opportunities to Metra and the location on Route 31. Practical difficulties will be addressed due to the fire at the old roller rink and the investment opportunities being limited in this corridor. He clarified the many opportunities this development would offer to the community and fall within the criteria identified. He stated McHenry’s parking requirements are more restrictive than surrounding areas. City Planner Sheriff provided the Commission with the Staff Report regarding this file stating due to the type of funding the applicant is using zoning and variances needs to receive approval before funding is applied for. In summary, staff believes the proposed development would have a positive impact on the local economy. Although the development is inconsistent with the Main Street Subarea Plan recommendation for entertainment/office space use, the plan does recommend multifamily land use directly west of the site. The site is also less than 500 feet away from at least two other multifamily developments in the area. Planner Sheriff asked the Commission to discuss the proposed development with a change in conditions and other trends in development in the 339 Department of Community Development McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2170 Fax: (815) 363-2173 www.cityofmchenry.org 3 area. Adjacent to a state highway, staff does not believe there will be any adverse impacts on the surrounding properties. Staff does not object to the petitioner’s request and recommends approval subject to appropriate conditions. Planner Sheriff stated if the Planning & Zoning Commission agrees with staff’s assessment, then two separate motions were recommended as presented and outlined in the Staff Report. Chairwoman Rockweiler invited questions and/or comments from the Commissioners. Commissioner Lehman asked for clarification in regard to traffic patterns with Route 31 road widening plans and asked if underbuilding parking in the plans will be in-ground or at grade level. Planner Sheriff stated it is really not up to the City and IDOT will make all the recommendations. Mr. Sheeran stated the parking will be fully underground. Planner Sheriff shared the amended building elevation drawings. Commissioner Walsh requested clarification on whether the police and fire department have reviewed and agree with the plans for a one in / one out entrance or if they had any concerns. Planner Sheriff stated it is a single building on a major highway so he doesn’t believe it is necessary for that input. Commissioner Walsh also asked if there are estimates on the percentage of approval and denial on the tax credit applications. Attorney Gottemoller has been involved in three other similar applications of this type and there is a scoring system used. This round of funding applications is due by end of February with decision to be made by end of May. Commissioner Davis asked for clarification on approval chances based on the due diligence done on this property location. Attorney Gottemoller stated conditions were very amenable to this location. Commissioner Bremer inquired if shrubs will be required to screen the residential area from the development. Mr. Sheeran said yes. Commissioner Bremer inquired as to statistics on how many students may enter the school districts in McHenry. Planner Sheriff does not have statistics at this time but can obtain them in the future. Commissioner Bremer stated her concern as school board president on the impact on the schools and is specifically concerned with the plans depicting twenty-five 3-bedroom units as well as the 2-bed units. After discussion, Mr. Sheeran gave a broad estimate of 50 students impacting the schools from this development. Chairwoman Rockweiler asked for clarification on the zoning of the property. Planner Sheriff clarified the zoning request applies only for this project unless someone else came in with the exact same plan. 340 Department of Community Development McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2170 Fax: (815) 363-2173 www.cityofmchenry.org 4 Commissioner Smale asked for clarification of the amenities proposed on the new property. Mr. Sheeran clarified the amenities expected to be provided. There were no questions from Commissioner Sobotta. Chairwoman Rockweiler invited questions and/or comments from the Public. Kevin Thimios, 4306 Ponca St was sworn in and stated Route 31 traffic is terrible and he is very concerned how this many units will cause an extreme strain on an already traffic-congested area. He does like the development, however, but not this location. Leonore Mersch, 721 Lillian Street was sworn in and stated although the location is close to stores and other businesses the traffic in the area does get extremely congested. She does think the development is a good proposal. Maureen O’Halleran 915 Center St was sworn in and asked for clarification on an article in the NW Herald on the past Thursday regarding an additional roadway being in the plans to the adjoining neighborhood. Mr. Sheeran stated that was no longer in the plans. Chairwoman Rockweiler closed the public comment portion of the hearing at 9:30 p.m. Commissioner Sobotta disagreed with Attorney Gottemoller that there are not many opti ons in this area for other uses. He believes a professional building, bar or restaurant would be a more viable option on this property due to traffic and occupancy concerns for such a large development and suggests further discussion. He is against this t ype of development at this location. Commissioner Bremer asked if a traffic study has been done in the area. Planner Sheriff responded no because it is only a 50-unit development equaling 14 trips per hour and staff is not concerned with traffic due to the fact that IDOT has already scheduled this to be expanded to a 4-lane highway by 2025. He believes Commissioner Sobotta’s suggestion is valid and should be discussed. Commissioner Bremer stated there is a huge shortage of rental opportunities, but she is not sure this is the best location for traffic patterns and is also concerned about impact on schools. Commissioner Lehman likes the concept for this area but does have concerns about the traffic presently in the area. He stated he has less of a concern with the knowledge the road will be widened. He asked if a restaurant or bar in the location would eliminate any traffic impacts. Mr. Sheeran stated if funding is approved for the location construction would not be completed until late Fall of 2023. 341 Department of Community Development McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2170 Fax: (815) 363-2173 www.cityofmchenry.org 5 Commissioner Sobotta asked for clarification on whether this would be the largest structure in the area. Planner Sheriff could not confirm. Commissioner Smale agreed with Commissioner Lehman’s traffic concerns being met by road widening. He asked if there would be a potential for a traffic signal at the development. Planner Sheriff responded it would be up to IDOT but most likely would not constitute one being added due to its size. Commissioner Walsh thanked the petitioners for a great plan and design. However, he does not believe the location is the right fit for the development at this time. Commissioner Davis stated all present buildings in the area are a bit of an eye sore and he stated while this proposal is large, he does believe it could be a catalyst for other new buildings in the area. There are minor concerns with traffic, but road widening will alleviate some of that and the thinks it is a good opportunity for the community. He asked Staff if any other developers have looked at the property. Planner Sheriff responded a gas station that wanted video gaming. Commissioner Davis feels the traffic impact from this development might be less than peak times at a restaurant or bar. Chairwoman Rockweiler also agreed with Commissioner Davis regar ding changes being needed to update the neighborhood and this project having less traffic impact than a restaurant or bar. Attorney Gottemoller stated if close transportation is not in the area (Metra) an application will not score high enough to be approved so locations for this type of housing are limited and there are not other locations available in McHenry meeting the transportation requirements. Motion by Davis seconded by Smale with regard to File No. Z-999, to recommend approval of the petitioner’s request for a Use Variation to allow a 50-unit multifamily development at 914 N Front Street, subject to the following conditions: 1. The property owner shall revise the site plan to provide safe pedestrian access to Center Street Park which shall be reviewed by the Zoning Administrator. The Zoning Administrator shall approve, approve with conditions, or deny the revisions and recommend back to the Planning & Zoning Commission. 342 Department of Community Development McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2170 Fax: (815) 363-2173 www.cityofmchenry.org 6 2. The property owner shall enter into a development agreement with the City o f McHenry to provide improvements to the Center Street Park or a fee in lieu of providing improvements. 3. The development shall comply with Chapter 13: Landscaping and Screening of the City of McHenry Zoning Ordinance. 4. All development shall be in substantial conformance with the submitted site plan, landscape plan, and building elevations. 5. All other federal, state, and local laws shall be met. and by making said motion, we agree with staff’s assessment that the approval criteria for Use Variations have been met as outlined in the Staff Report. Roll Call: Vote: 5-ayes: Davis, Lehman, Rockweiler, Smale and Walsh. 2-nays: Bremer, Sobotta. 0-abstained, 0-absent. Motion Carried. Motion by Smale seconded by Lehman with regard to File No. Z -999, to recommend approval of the petitioner’s request for the following Zoning Variations: 1) A Zoning Variation to allow a corner side yard setback of 19’ in lieu of the required 30 feet. 2) A Zoning Variation to allow 100 parking spaces in lieu of the required 124 spaces. 3) Any other variations necessary to accommodate the proposed development subject to the condition that the development be in substantial conformance with the submitted site plan, landscape plan, and building elevations. AND by making said motion, we agree with staff’s assessment as outlined in the staff report that the approval criteria for Zoning Variances have been met. Roll Call: Vote: 5-ayes: Davis, Lehman, Rockweiler, Smale, and Walsh. 2-nays: Bremer, Sobotta. 0-abstained, 0-absent. Motion Carried. Chairwoman Rockweiler closed the hearing regarding File No. Z-999 at 9:55 p.m. 343 Department of Community Development McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2170 Fax: (815) 363-2173 www.cityofmchenry.org 7 ORDINANCE NO 21- ORDINANCE GRANTING A USE VARIATION, AND ZONING VARIATIONS FOR A 50-UNIT MULTIFAMILY APARTMENT BUILDING AT 914 N FRONT STREET WHEREAS, the City of McHenry, McHenry County, Illinois, is a home rule municipality as contemplated under Article VII, Section 6, of the Constitution of the State of Illinois, and the passage of this Ordinance constitutes an exercise of the City’s home rule powers and function s as granted in the Constitution of the State of Illinois; and WHEREAS, a petition has been filed with the City by Commonwealth Development Corp. of America (“CONTRACT PURCHASER”), requesting approval of a Use Variation and Zoning Variations for a 50-unit, 3-story, multifamily apartment building at 914 N Front Street and legally described in Exhibit “A”, attached hereto and incorporated herein, the “SUBJECT PROPERTY”; and WHEREAS, a public hearing on said petition was held before the Planning and Zoning Commission on October 20, 2021 in the manner prescribed by ordinance and statute, and as a result of said hearing, the Planning and Zoning Commission did recommend to the City Council the granting of the requested Use Variation and Zoning Variations; and WHEREAS, the City Council has considered the evidence and recommendations from the Planning and Zoning Commission and finds that the approval of the requested Preliminary Planned Multifamily Integrated Design District Development is consistent with the objectives of the City of McHenry Zoning Ordinance to protect the public health, safety, morals, and general welfare of its residents. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF MCHENRY, MCHENRY COUNTY, ILLINOIS, AS FOLLOWS: SECTION 1: That the SUBJECT PROPERTY is hereby granted a Use Variation to allow a 50-unit, 3-story, multifamily apartment building subject to the following conditions: 1. The property owner shall enter into a development agreement with the City of McHenry to provide improvements to the Center Street Park or a fe e in lieu of providing improvements. 2. The development shall comply with Chapter 13: Landscaping and Screening of the City of McHenry Zoning Ordinance. 3. All development shall be in substantial conformance with the site plan, landscape plan, and building elevations attached hereto and incorporated herein as Exhibit “B”. 344 Department of Community Development McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2170 Fax: (815) 363-2173 www.cityofmchenry.org 8 4. All other federal, state, and local laws shall be met. SECTION 2: In granting said Use Variation, the City Council finds that the Approval Criteria for Use Variances listed in §11-19-6 of the City of McHenry Zoning Ordinance have been met. SECTION 3: That the SUBJECT PROPERTY is hereby granted approval of the following Zoning Variations: 1. A Zoning Variation to allow a corner side yard setback of 19’ in lieu of the required 30 feet. 2. A Zoning Variation to allow 100 parking spaces in lieu of the required 124 spaces. 3. Any other variations necessary to accommodate the propose d development. SECTION 4: In granting said Variances, the City Council finds that the Approval Criteria for Variances listed in §11-19-5 of the City of McHenry Zoning Ordinance have been met. SECTION 5: This Ordinance shall be published in pamphlet form by and under the authority of the corporate authorities of the City of McHenry, McHenry County, Illinois. SECTION 6: This Ordinance shall be in full force and effect from and after its passage, approval, and publication in pamphlet form as provided by law. Passed this 1st day of November, 2021. Ayes Nays Absent Abstain Alderman Devine _____ _____ _____ _____ Alderman Glab _____ _____ _____ _____ Alderman Harding _____ _____ _____ _____ Alderman Strach _____ _____ _____ _____ Alderwoman Miller _____ _____ _____ _____ Alderman Santi _____ _____ _____ _____ Alderman McClatchey _____ _____ _____ _____ ______________________ ________________________ Wayne Jett, Mayor Trisha Ramel, City Clerk 345 Department of Community Development McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2170 Fax: (815) 363-2173 www.cityofmchenry.org 9 Exhibit A Legal Description of the Subject Property OUTLOT NUMBER SIX (6) ACCORDING TO THE PLAT OF WEST MCHENRY, AS RECORDED IN THE RECORDER’S OFFICE OF MCHENRY COUNTY, ILLINOIS IN BOOK 24 OF DEEDS, ON PAGE 22 (EXCEPTING AND RESERVING THEREFROM THE EASTERLY 200 FEET THEREOF AS CONVEYED BY WARRANTY DEED FROM FRANK H. WATTLES AND WIFE TO THE VILLAGE OF MCHENRY, SAID DEED BEING RECORDED IN THE RECORDER’S OFFICE IN MCHENRY COUNTY, ILLINOIS, IN BOOK 162 OF DEEDS, ON PAGE 103), SAID OUTLOT BEING LOCATED IN AND BEING A PART OF THE NORTHWEST QUARTER OF SECTION 35, IN TOWNSHIP 45 NORTH, OF RANGE 8 EAST OF THE THIRD PRINCIPAL MERIDIAN, SITUATED IN THE CITY OF MCHENRY, IN THE COUNTY OF MCHENRY, IN THE STATE OF ILLINOIS. 346 Department of Community Development McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2170 Fax: (815) 363-2173 www.cityofmchenry.org 10 Exhibit B Site Plan, Landscape Plan, and Building Elevations 347 PRELIMINARYSITE PLAN SCALE: 1" = 20'-0"NORTH10149157860 PARKING STALLSSETBACK LINEPROPERTY LINE103'-3"241'-6"58'-6"40'-5"30'-9"33'-0"31'-9"61'-0"178'-6"23'-0" 19'-0" SETBACK 34'-0"SETBACK19'-0"SETBACK34'-0"SETBACK39'-7"C-5: HIGHWAY COMMERCIALAREA = 100,188 S.F. (2.3 ACRES)PROPERTY AREA:EXISTING ZONING:SETBACKS: BUILDING: FRONT = 34' (30' + 4' FOR 37' BLDG HEIGHT)SIDE = 19' (15' + 4' FOR 37' BLDG HEIGHT)REAR = 34' (30' + 4' FOR 37' BLDG HEIGHT)PROPOSED PARKING:MULTI-FAMILY RESIDENTIALPROPOSED USE:SITE INFORMATION:NUMBER OF UNITS:DENSITY:20.68 UNITS PER ACRE (MAX 24 UNITS PER ACRE)BUILDING AREA: 65,000 S.F. EACH FLOOR2.0 STALLS PER DWELLING UNIT = 100 PARKING STALLSTOTAL: 50 UNITSBUILDING AREA: .648167'-11"11'-3"8'-5"24'-11"36'-9"(40 UNDERGROUND STALLS, 60 SURFACE STALLS)3 STORY APARTMENT BUILDING50 UNITS (16 1BR, 9 2BR, 25 3BR)65,000 S.F.PLAYGROUNDPERGOLA COVEREDPICNIC AREAWALK PATH TO PARKTRASHENCLOSURECOMMUNITYPATIO PRELIMINARYSHEET DATES:C1.02021 M+A DESIGN, INCc l.petrie@madesigninc.net (920) 922-8170JOB NUMBER:SHEET24 SOUTH BROOKE STREET FOND du LAC, WISCONSIN 54937 COMPANIES COMMONWEALTH 9 SHEBOYGAN STREET (920) 922-8170 FAX: (920) 922-81712021.48NEW APARTMENT PROJECT FOR:DOMAIN 914 FRONT STREET MCHENRY, ILLINOIS FOND du LAC, WISCONSIN 54935348 LANDSCAPESITE PLAN SCALE: 1" = 20'-0"NORTH2GT21AM21AM2CO2GT1TO1TO1JO3AS35BA35MCPS23AS33AS5AS5AS5AS5CO2RG4SH9SH9SH9JO5JO5SH95MCPS23AS33BA32GT2MULCHMULCHTREE RING5MCBA3BA35MCPLASTIC EDGING1AM2MULCH1GT245TOJO5BA2PS23BA35MCJO3JO3AS35AS5BA2BA35MC5MCBA3AS33JO55MC1AM2EXISTING TREESTO REMAINMULCHTREESCODEBOTANICAL / COMMON NAMESIZEQTYAM2 ACER MIYABEI `MORTON` TM 1.5" B&B 2STATE STREET MIYABEI MAPLEAG AMELANCHIER X GRANDIFLORA `AUTUMN BRILLIANCE` 1.5" B&B 2AUTUMN BRILLIANCE APPLE SERVICEBERRYCO CELTIS OCCIDENTALIS 1.5" B&B 5COMMON HACKBERRYCC CERCIS CANADENSIS 1.5" B&B 2EASTERN REDBUDGT GLEDITSIA TRIACANTHOS F. INERMIS 1.5" B&B 2THORNLESS HONEY LOCUSTGT2 GLEDITSIA TRIACANTHOS F. INERMIS 1.5" B&B 2THORNLESS HONEY LOCUSTGD GYMNOCLADUS DIOICA `ESPRESSO` 1.5" B&B 3KENTUCKY COFFEETREEMA MAGNOLIA X `ANN` 1.5" B&B 7ANN MAGNOLIAQM QUERCUS MUEHLENBERGII 1.5" B&B 1CHINKAPIN OAKTO THUJA OCCIDENTALIS 1.5" B&B 2AMERICAN ARBORVITAETF THUJA OCCIDENTALIS `FASTIGIATA` 1.5" B&B 2PYRAMIDAL ARBORVITAESHRUBSCODEBOTANICAL / COMMON NAMECONTQTYHL HYDRANGEA PANICULATA `LIMELIGHT` #5 13LIMELIGHT HYDRANGEAJO JUNIPERUS VIRGINIANA `GREY OWL` #5 25GREY OWL JUNIPERPS PHYSOCARPUS OPULIFOLIUS `SEWARD` TM #5 6SUMMER WINE NINEBARKRG RHUS AROMATICA `GRO-LOW` #5 4GRO-LOW FRAGRANT SUMACSS SPIRAEA X VANHOUTTEI `SNOW WHITE` #5 3SNOW WHITE VANHOUTTE SPIREAPERENNIALSCODEBOTANICAL / COMMON NAMECONTQTYAS2 ACHILLEA MILLEFOLIUM `STRAWBERRY SEDUCTION` #1 5STRAWBERRY SEDUCTION COMMON YARROWAS3 ALLIUM X `SUMMER BEAUTY` #1 44SUMMER BEAUTY ORNAMENTAL ONIONAS ANDROPOGON SCOPARIUS #1 27LITTLE BLUESTEMBA BAPTISIA AUSTRALIS #1 9BLUE WILD INDIGOGM GERANIUM SANGUINEUM `MAX FREI` #1 6MAX FREI BLOODRED GERANIUMMC MOLINIA CAERULEA `VARIEGATA` #1 3VARIEGATED MOOR GRASSNF NEPETA X FAASSENII #1 34CATMINTPS2 PANICUM VIRGATUM `SHENANDOAH` #1 6SHENANDOAH SWITCH GRASSRG2 RUDBECKIA HIRTA `GOLDILOCKS` #1 6GOLDILOCKS BLACK-EYED SUSANSH SPOROBOLUS HETEROLEPIS #1 33PRAIRIE DROPSEEDPLANT SCHEDULELEGENDPROPOSED MNDOT V612 CURB & GUTTERPROPOSED ASPHALTC8.0116' PRIVACY FENCEPROPOSED SIDEWALKC8.013PROPOSED SIGNPROPOSED HANDICAP PARKINGPROPOSED MNDOT V612 CURB & GUTTER REJECTTO BE SEEDEDPRELIMINARYSHEET DATES:L1.02021 M+A DESIGN, INCc l.petrie@madesigninc.net (920) 922-8170JOB NUMBER:SHEET24 SOUTH BROOKE STREET FOND du LAC, WISCONSIN 54937 COMPANIES COMMONWEALTH 9 SHEBOYGAN STREET (920) 922-8170 FAX: (920) 922-81712021.48NEW APARTMENT PROJECT FOR:DOMAIN 914 FRONT STREET MCHENRY, ILLINOIS FOND du LAC, WISCONSIN 54935 GENERAL LANDSCAPE NOTES1. CONTRACTOR RESPONSIBLE FOR CONTACTING PUBLIC AND PRIVATE UNDERGROUND UTILITY LOCATING SERVICE TO HAVE SITE MARKED PRIOR TO ANY DIGGINGOR EARTHWORK.2. CONTRACTOR TO VERIFY ALL PLANT QUANTITIES SHOWN ON PLANT LIST AND VERIFY WITH PLAN. REPORT ANY DISCREPANCIES IMMEDIATELY TO GENERALCONTRACTOR.3. CONTRACTOR TO REPAIR AND RESTORE ALL AREAS DISTURBED BY CONSTRUCTION ACTIVITIES TO ORIGINAL CONDITION.4. ALL PLANTINGS SHALL COMPLY WITH STANDARDS AS DESCRIBED IN AMERICAN STANDARD OF NURSERY STOCK - ANSI Z60.1 (LATEST VERSION). GENERALCONTRACTOR OR OWNER'S REPRESENTATIVE RESERVES THE RIGHT TO INSPECT AND POTENTIALLY REJECT ANY PLANTS THAT ARE INFERIOR, COMPROMISED,UNDERSIZED, DISEASED, IMPROPERLY TRANSPORTED, INSTALLED INCORRECTLY OR DAMAGED.5. ANY POTENTIAL PLANT SUBSTITUTIONS MUST BE SUBMITTED IN WRITING AND APPROVED BY THE LANDSCAPE ARCHITECT OR OWNER'S REPRESENTATIVE PRIORTO INSTALLATION. ALL PLANTS MUST BE INSTALLED AS PER SIZES SHOWN ON PLANT MATERIAL SCHEDULE, UNLESS APPROVED BY LANDSCAPE ARCHITECT OROWNER'S REPRESENTATIVE.6. TOPSOIL SHOULD BE PLACED TO WITHIN 3'' OF FINISH GRADE BY GENERAL / GRADING CONTRACTOR DURING ROUGH GRADING OPERATIONS. ALL PLANTING BEDSTO BE BACKFILLED WITH TOPSOIL TO A MINIMUM DEPTH OF 18" AND CROWN ALL PLANTING BEDS A MINIMUM OF 6'' TO PROVIDE PROPER DRAINAGE (UNLESSOTHERWISE SPECIFIED) BY GRADING CONTRACTOR TO INSURE LONG TERM PLANT HEALTH.7. THE LANDSCAPE CONTRACTOR TO BE RESPONSIBLE FOR THE FINE GRADING OF ALL LANDSCAPED AREAS. A MINIMUM DEPTH OF 6" OF BLENDED, PREPARED ANDNON-COMPACTED TOPSOIL IS REQUIRED FOR ALL SEEDED AREAS. FINISHED LANDSCAPED AREAS TO BE SMOOTH, UNIFORM AND PROVIDE POSITIVE DRAINAGEAWAY FROM ALL STRUCTURES AND PAVEMENT.8. SHRUB PLANTING: ALL SHRUBS TO BE POCKET PLANTED WITH A 50/50 MIX OF PLANT STARTER AND TOPSOIL. INSTALL TOPSOIL INTO ALL PLANT BEDS AS NEEDEDTO ACHIEVE PROPER GRADE AND REPLACE UNDESIRABLE SOIL (SEE PLANTING DETAIL). REMOVE ALL EXCESSIVE GRAVEL, CLAY AND STONES FROM PLANT BEDSPRIOR TO PLANTING. WHEN HOLE IS TWO-THIRDS FULL, SHRUBS SHALL BE WATERED THOROUGHLY AND WATER LEFT TO SOAK IN BEFORE PROCEEDING.9. MULCHING: ALL TREE, SHRUB AND PERENNIAL PLANTING BEDS TO RECEIVE A 4" DEEP LAYER TWICE SHREDDED HARDWOOD MULCH. DO NOT MULCH ANNUALFLOWER BEDS (IF APPLICABLE). DO NOT ALLOW MULCH TO CONTACT PLANT STEMS AND TREE TRUNKS.10.ALL BED EDGES SHALL BE BLACK DIAMOND BY VALLEY VIEW OR APPROVED EQUAL. INSTALL WITH 9" STEEL STAKES AT 45 DEGREE ANGLES.11.PLANT BED PREPARATION: ALL PERENNIAL AREAS ARE REQUIRED TO RECEIVE A BLEND OF ORGANIC SOIL AMENDMENTS PRIOR TO INSTALLATION. ROTOTILL THEFOLLOWING MATERIALS, AT THE RATIO GIVEN, INTO THE REQUIRED 12" OF TOPSOIL TO A DEPTH OF APPROX. 8''.12.PER EVERY 100 SQUARE FEET OF BED AREA ADD: 2 LBS. OF 5-10-5 SLOW RELEASE FERTILIZER.13.WARRANTY AND REPLACEMENTS: SHRUBS TO BE GUARANTEED (100% REPLACEMENT) FOR A MINIMUM OF ONE (1) YEAR FROM THE DATE OF SUBSTANTIAL PROJECTCOMPLETION.14.THE LANDSCAPE CONTRACTOR IS RESPONSIBLE FOR THE WATERING AND MAINTENANCE OF ALL LANDSCAPE AREAS AT TIME OF PLANTING, THROUGHOUTCONSTRUCTION AND FOR A PERIOD OF 90 DAYS AFTER THE SUBSTANTIAL COMPLETION OF THE INSTALLATION. THIS INCLUDES WEEDING, EDGING, MULCHING(ONLY IF REQUIRED), FERTILIZING, TRIMMING, SWEEPING UP GRASS CLIPPINGS, PRUNING AND DEADHEADING.15.PROJECT COMPLETION: UPON SUBSTANTIAL COMPLETION OF THE PROJECT, THE LANDSCAPE CONTRACTOR IS RESPONSIBLE TO CONDUCT A FINAL REVIEW WITHTHE OWNER'S REPRESENTATIVE AND THE GENERAL CONTRACTOR TO ANSWER QUESTIONS AND INSURE THAT ALL SPECIFICATIONS HAVE BEEN MET. THELANDSCAPE CONTRACTOR IS TO PROVIDE WATERING AND GENERAL ONGOING MAINTENANCE INSTRUCTIONS (IN WRITING) FOR THE NEW PLANTINGS AND LAWNTO THE OWNER AND GENERAL CONTRACTOR .16.ALL PROPOSED SHRUBS MUST HAVE A MINIMUM HEIGHT OF 24"349 SPACE PLANTS ACCORDING TO PLANSMULCH AS SPECIFIED. DO NOT PLACEMULCH IN CONTACT WITH THE PLANT.MAINTAIN WEED-FREE FOR THE DURATIONOF THE WARRANTY PERIOD. PLACE MULCHWITHIN 48 HOURS OF SECOND WATERING.NOTES:xIF PLANT IS SHIPPED WITH A CONTAINER AROUND THE ROOTBALL, SLICE SIDES OF CONTAINER AND REMOVECOMPLETELY. USE FINGERS OR SMALL HAND TOOLS TO PULL ROOTS OUT OF THE OUTER LAYER OF POTTINGSOIL, THEN CUT OR PULL APART ANY CIRCLING ROOTS. REMOVE ALL ROPE, TWINE AND BURLAP FROM TOPHALF OF ROOT BALL FROM B&B SHRUBS.xSET TOP OF ROOT BALL FLUSH TO GRADE OR 1-2 IN. HIGHER IN SLOWLY DRAINING SOILS. ADD MYCORRHIZALTRANSPLANT INOCULANT AT PLANTING TIME PER MANUFACTURER'S DIRECTIONS.xDURING THE SPRING PLANTING SEASON, ANY EVERGREEN SHRUB DELIVERED WITH NEW GROWTH INADVANCE STAGE OF CANDLING OUT WILL BE REJECTED.xDO NOT HEAVILY PRUNE AT PLANTING. PRUNE ONLY BROKEN OR DEAD BRANCHES, RETAINING NATURAL FORM.DIG HOLE 2x ROOT BALL DIA. SCARIFY SIDESAND BOTTOM OF HOLE BEFORE PLACING SHRUBIN THE PLANTING HOLE. BACKFILL WITHMODIFIED PLANTING SOIL AND ADD ANY SOILAMENDMENTS OR FERTILIZERS AS SPECIFIEDAND CONSTRUCT 3" HIGH EARTH SAUCERBEYOND EDGE OF ROOT BALL. WATERTHOROUGHLY WITHIN 2 HOURS.TYPICAL SHRUB PLANTING1L1.1MULCH AS SPECIFIED. DO NOT PLACE MULCH IN CONTACT WITH THE PLANT.MAINTAIN THE MULCH WEED-FREE FOR THE DURATION OF THE WARRENTYPERIOD. PLACE MULCH WITHIN 48 HOURS OF SECOND WATERING.DIG HOLE 2x ROOT BALL DIA. SCARIFY THE SIDES AND BOTTOM OF THE HOLEBEFORE PLACING THE PLANT IN THE PLANTING HOLE. BACKFILL WITH MODIFIEDPLANTING SOIL AS SPECIFIED. WATER THOROUGHLY WITHIN 2 HOURS.IF PLANT IS SHIPPED WITH A CONTAINER AROUND THE ROOTBALL, SLICE SIDESOF CONTAINER AND REMOVE COMPLETELY. USE FINGERS OR SMALL HANDTOOLS TO PULL ROOTS OUT OF THE OUTER LAYER OF POTTING SOIL, THENCUT OR PULL APART ANY CIRCLING ROOTS.SET TOP OF ROOT BALL FLUSH TO GRADE OR 1-2 IN. HIGHER IN SLOWLYDRAINING SOILS.SPACE PLANTS ACCORDING TO PLAN.PLANTING AS SHOWN ON PLANSTOP OF MULCH SHALL BE EVENWITH WALK. PLANTING SOILFINISH GRADE SHALL BE 2" BELOWCURB OR WALK ELEVATION.STRUCTURED EDGE AS PER PLANSPLANTING SOILSLOPE EDGE OF COMPACTEDBASE AND SUBGRADE AT45 DEGREE ANGLEUNDISTURBED OR COMPACTEDSUBSOILTYPICAL PERENNIAL PLANTING2L1.1NOTE:CONTRACTOR SHALL FABRICATE AND INSTALL HARDWARE CLOTH DEER PROTECTION WRAPSAROUND ALL DECIDUOUS TREES. 6-8" DIAMETER, 12" MESH, 5' HT. OR TO LOWEST BRANCH.DEER PROTECTION SHALL BE INCIDENTAL TO THE TREE IT PROTECTS.TYPICAL TREE PLANTING2L1.1PRUNE BRANCHES TO A MINIMUM OF 8' TO ALLOW FOR A CLEAR SIGHT DISTANCE.DO NOT HEAVILY PRUNE THE TREE AT PLANTING. PRUNE ONLY CROSSOVER LIMBS, CO-DOMINANT LEADERS ANDBROKEN OR DEAD BRANCHES, SOME INTERIOR TWIGS AND LATERAL BRANCHES MAY BE PRUNED; HOWEVER DO NOTREMOVE THE TERMINAL BUDS OF BRANCHES THAT EXTEND TO THE EDGE OF THE CROWN.STAKE TREES ONLY AS SPECIFIED AT THE DIRECTION OF LANDSCAPE ARCHITECT WRAP TREE TRUNKS AS SPECIFIED.MARK THE NORTH SIDE OF THE TREE IN THE NURSERY, AND ROTATE TREE TO FACE NORTH IN THE FIELD.SET TOP OF ROOT BALL FLUSH TO GRADE OR 1-2 IN. HIGHER IN SLOWLY DRAINING SOILS.CONTRACTOR IS RESPONSIBLE FOR TESTING PERCOLATION RATES PRIOR TO PLANTING. NOTIFY LANDSCAPEARCHITECT OF ANY POTENTIAL DRAINAGE ISSUES PRIOR TO FINAL PLANTING. INSTALL APPROVED DRAINAGEMATERIALS AS DIRECTED.IF PLANT IS SHIPPED WITH A CONTAINER AROUND THE ROOTBALL, SLICE SIDES OF CONTAINER AND REMOVECOMPLETELY. USE FINGERS OR SMALL HAND TOOLS TO PULL ROOTS OUT OF THE OUTER LAYER OF POTTING SOIL,THEN CUT OR PULL APART ANY CIRCLING ROOTS.SET TREE PLUMB AND MAINTAIN THROUGHOUT WARRANTY PERIOD. REMOVE ALL FLAGGING AND LABELS.EACH TREE MUST BE PLANTED SUCH THAT THE ROOT FLARE IS VISIBLE AT THE TOP OF THE ROOT BALL. TREESWHERE THE ROOT FLARE IS NOT VISIBLE SHALL BE REJECTED. DO NOT COVER THE TOP OF THE ROOT BALL WITHSOIL. ROOT BALLS DELIVERED WITH THE ROOT FLARE MORE THAN 4" BELOW THE TOP OF THE BALL WILL BEREJECTED.MULCH AS SPECIFIED, DO NOT PLACE MULCH IN CONTACT WITH TREE TRUNK, MAINTAIN THE MULCH WEED-FREE FORTHE DURATION OF THE WARRANTY PERIOD. PLACE MULCH WITHIN 48 HOURS OF SECOND WATERING. MULCH SHALLBE INCIDENTAL TO PROJECT.DIG HOLE 3x ROOT BALL DIA. OR AS SPECIFIED FOR SOIL CONDITION ENCOUNTERED WITH TAPERED SIDES. SCARIFYTHE SIDES AND BOTTOM OF THE HOLE BEFORE PLACING THE TREE IN THE PLANTING HOLE. BACKFILL 2/3 WITHMODIFIED PLANTING SOIL AS SPECIFIED FOR THE SPECIFIC SOIL CONDITION ENCOUNTERED AND WATERTHOROUGHLY WITHIN 2 HOURS. BACKFILL REMAINING 1/3 WITHIN 48 HOURS AND CONSTRUCT 4" HIGH EARTHSAUCER BEYOND EDGE OF ROOT BALL AND WATER THOROUGHLY.REMOVE ALL TWINE, ROPE AND WIREBASKET AND BURLAP FROM TOP 1/3 OF ROOT BALL OR TO 2ND RING OF WIREBASKET, WHICHEVER IS GREATER. REMOVE ALL PLASTIC WRAP OR ROPE FROM ENTIRE BALL.PLACE ROOT BALL ON FIRM UNEXCAVATED OR TAMPED SOIL.TAMP SOIL AROUND BASE OF ROOT BALL FIRMLY WITH FOOT PRESSURE SO THAT ROOT BALL DOES NOT SHIFT.SPACE TREES ACCORDING TO PLANS.6'-0"2'-0"PRELIMINARYSHEET DATES:L1.12021 M+A DESIGN, INCc l.petrie@madesigninc.net (920) 922-8170JOB NUMBER:SHEET24 SOUTH BROOKE STREET FOND du LAC, WISCONSIN 54937 COMPANIES COMMONWEALTH 9 SHEBOYGAN STREET (920) 922-8170 FAX: (920) 922-81712021.48NEW APARTMENT PROJECT FOR:DOMAIN 914 FRONT STREET MCHENRY, ILLINOIS FOND du LAC, WISCONSIN 54935350 WEST ELEVATIONSCALE: 1/8" = 1'-0"FIRST FL'REL. = 100'-0"SECOND FL'REL. = 112'-1 7/8"THIRD FL'REL. = 122'-3 3/4"TRUSS BRG.EL. = 130'-4 7/8"NORTH ELEVATIONSCALE: 1/8" = 1'-0"RIDGE LINEEL. = 144'-1 7/8"FIRST FL'REL. = 100'-0"SECOND FL'REL. = 112'-1 7/8"THIRD FL'REL. = 122'-3 3/4"TRUSS BRG.EL. = 130'-4 7/8"EAST ELEVATIONSCALE: 1/8" = 1'-0"FIRST FL'REL. = 100'-0"SECOND FL'REL. = 112'-1 7/8"THIRD FL'REL. = 122'-3 3/4"TRUSS BRG.EL. = 130'-4 7/8"SOUTH ELEVATIONSCALE: 1/8" = 1'-0"SECOND FL'REL. = 112'-1 7/8"THIRD FL'REL. = 122'-3 3/4"TRUSS BRG.EL. = 130'-4 7/8"FIRST FL'REL. = 100'-0"RIDGE LINEEL. = 144'-1 7/8"RIDGE LINEEL. = 144'-1 7/8"RIDGE LINEEL. = 144'-1 7/8"PRELIMINARYSHEET DATES:A2.09/29/202110/15/20212021 M+A DESIGN, INCc l.petrie@madesigninc.net (920) 922-8170JOB NUMBER:SHEET24 SOUTH BROOKE STREET FOND du LAC, WISCONSIN 54937 COMPANIES COMMONWEALTH 9 SHEBOYGAN STREET (920) 922-8170 FAX: (920) 922-81712021.48NEW APARTMENT PROJECT FOR:DOMAIN 914 FRONT STREETMCHENRY, ILLINOIS FOND du LAC, WISCONSIN 54935351 352 353 354 Staff Report for the City of McHenry Planning & Zoning Commission Staff Comments The following comments and conclusions are based upon staff analysis and review prior to this hearing and are to be considered viable unless evidence is established to the contrary. Staff may have additional comments based upon the testimony presented during the public hearing. BACKGROUND & REQUEST SUMMARY The petitioner, Commonwealth Development Corp of America (Contract Purchaser), is proposing to construct a three-story, 50-unit, apartment building at 914 N Front Street (Former Roller Rink). Upon completion, the proposed development will consist of 16 one-bedroom units, 9 two-bedroom units, and 25 three-bedroom units. The developer will need to receive approval of the following zoning items to accommodate the development: • A Use Variation to allow a multifamily apartment building within the C-5 Highway Commercial District. • A Zoning Variation to allow a corner side yard setback of 19’ in lieu of the required 30 feet. • A Zoning Variation to allow 100 parking spaces in lieu of the required 124 spaces. • Any other variations necessary to accommodate the proposed development. The developer will be applying for the Illinois Housing Development Authority’s Low Income Housing Tax Credit (LIHTC) to construct the development. This program requires developers to set aside all units for residents earning 30-80 percent or less of the prevailing McHenry County Area Median Income (AMI). CITY OF MCHENRY ORDINANCES • The petitioner must meet the Approval Criteria for Use Variances, listed in §11-19-6 of the City of McHenry Zoning Ordinance. • The petitioners must meet the Approval Criteria for Variances, listed in §11-19-5 of the City of McHenry Zoning Ordinance. STAFF ANALYSIS CURRENT LAND USE AND ZONING The subject property is currently zoned C-5 Highway Commercial District. The site was formely occupied by Just for Fun Roller Rink, tragically the principal structure was destroyed due to arson. The City is in the process of condemning the site because the property owner has failed to remediate the existing debris from the structure fire. Primarily surrounded by commercial, a portion of the property abuts a single-family home on the southeast corner of the property. Center Street Park is located directly east of the subject property. Staff is recommending the petitioners provide a safe pedestrian access in addition to either upgrading the existing equipment or providing a monetary donation to the City. FUTURE LAND USE MAP RECOMMENDATION The Future Land Use Map recommends commercial use of the property. The proposed use of the property for multifamily is not consistent with the Future Land Use Map recommendation. The subject property is within the Main Street Sub-Area Plan boundaries which also recommends office or entertainment use opportunities for the site. However, the subarea plan does recommend multifamily on the property directly west of the subject property. 355 COMPREHENSIVE PLAN OBJECTIVES AND POLICIES Overall, staff believes the proposed development is somewhat consistent with the City’s Comprehensive Plan objectives and policies and the Main Street Subarea Plan Goals and Objectives. Staff comments italicized. Land Use • Policy: “Encourage redevelopment of older commercial areas by adopting Sub-Area Plans or working through the different sections of the Plan to help facilitate the development.” (p. 27) The subject property is located within the Main Street Sub-Area Plan. • Policy: "Promote high-density residential only in areas where transportation services exist to facilitate the efficient movement from home to work or services for the residents." (p. 28) The property is within 0.25 miles of the Metra Station and would be considered a transit-oriented development 1. Transportation • Policy: “Avoid creating through traffic on local streets.” (p. 41) Located on a state highway, staff believes there is adequate capacity to service the development and not burden local roads and streets. Main Street Subarea Plan – Overall Goal: “The goal of the Main Street Sub-Area Plan is to provide guidelines that will foster redevelopment of the area into a mixed-use and pedestrian-friendly neighborhood, taking advantage of public transportation options, while maintaining the existing historical integrity of the sub-area.” (p. 12) Overall, staff believes the proposed development is somewhat consistent with the plan for the Main Street Subarea. Approval of the plan would be supportive of promoting a walkable pedestrian-friendly neighborhood that is able to take advantage of public transportation options. Main Street Subarea Plan – Land Use Objectives and Policies • “Promote high-density residential development in the area near the Metra station.” (p. 12) The proposed development is in conformance with the Main Street Plan recommendation since it is located within 0.25 miles of the train station. • “Minimize impacts of existing and new development on older established residential neighborhoods.” (p. 12) The petitioner is proposing a single access point on IL-31. Staff does not believe the proposed development will generate any adverse impacts on the surrounding properties. • “Redevelop sites [south of John St] for office or entertainment use opportunities.” (p. 20) The petitioner is not in compliance with this recommendation. The Commission should take into consideration whether the request is consistent with existing trends in development or if the request is in response to a change in the environment. (Staff report continues next page) 1 Transit Oriented Developments are typically within walking distance of a train station which equates to approximately 0.25-0.5 miles. 356 SITE PLAN ANALYSIS Overall, the proposed site plan is in substantial conformance with the City’s Zoning Ordinance with only a few minor exceptions. See below staff comments for various site elements. • Parking. The petitioner is proposing a total of 100 parking spaces in lieu of the required 124 spaces. As noted in the prior Authentix Multifamily Development, the City’s Parking Ordinance requirements are excessive in comparison to other municipalities. Staff is comfortable with the proposed parking composition of 2.0 spaces per dwelling unit. Multifamily Apartments Required Parking # units Required Spaces Total Studio 1.5 0 0 1 2 16 32 2 2.33 9 20.97 3 2.33 25 58.25 Total 50 111.22 Visitor Parking 0.25 50 12.5 Total Required Parking 123.72 Proposed Parking 100 • Landscaping & Screening. The petitioner has provided a landscape plan that appears to be mostly in compliance with the Ordinance. Parking Lot Perimeter Landscaping requires the installation of at least two (2) other species of shrub (missing) in addition to a 3-foot high wall of evergreen screening. Staff believes the lack of shrubs was more of an oversite rather than a sought-after variation. Staff is recommending the petitioner comply with the Ordinance. • Fencing. The petitioner is not currently proposing a privacy fence along the southeast corner of the property abutting single-family residential. Staff believes having such a small portion be covered by a fence would look out of place. Staff is requesting the Commission’s feedback on this item. • Density. The petitioner is proposing approximately 50 units on 2.8 acres which equates to 17.85 dwelling units per acre. The proposed density is not out of line with other multifamily developments in the city (see below table). Year Built Units Acres Density Single-Family Home Density Adjacent to Development Garden Quarter Apartments 1970s 68 units 4.7 acres 14 units/acre 3.28 units/acre Hillcrest Apartments 1982 88 units 4.89 acres 17.9 units/acre 2.33 units/acre; 2.88 units/acre; Fawn Ridge Trails Apartments 1988 208 units 10.75 acres 19.3 units/acre Southgate Apartments 1977 64 units 3.55 acres 18 units/acre 2.55 units/acre Authentix 2021 288 units 20 acres 14.4 units/acre 2.55 units/acre 357 • Setback Variation. To the north of the subject property is an unimproved road right-of-way. The north property line therefore is considered a corner side yard. The ordinance requires a 30’ setback from the corner side yard in the C-5 Highway Commercial District. However, staff will be proposing to vacate the roadway in the event their grant application is successful. Vacating the roadway would bring the development into compliance with the ordinance requirements. • Center Street Park. The petitioner is not proposing to provide any outdoor playground areas. Located next to a City park, staff is recommending the petitioners revise their site plan to include a pedestrian access point to the park. Staff will also be recommending the petitioner work with the city to improve the park or provide a monetary donation. STAFF RECOMMENDATION & MOTION In summary, staff believes the proposed development would have a positive impact on the local economy. Although the development is inconsistent with the Main Street Subarea Plan recommendation for entertainment/office space use, the plan does recommend multifamily land use directly west of the site. The site is also less than 500 feet away from at least two other multifamily developments in the area. The Commission should discuss whether the proposed development with a change in conditions and other trends in development in the area. Adjacent to a state highway, staff does not believe there will be any adverse impacts on the surrounding properties. Staff does not object to the petitioner’s request and recommends approval subject to appropriate conditions. If the Planning & Zoning Commission agrees with staff’s assessment, then two separate motions are recommended: MOTION: A motion to recommend approval of the petitioner’s request for a Use Variation to allow a 50-unit multifamily development at 914 N Front Street, subject to the following conditions: 1. The property owner shall revise the site plan to provide safe pedestrian access to Center Street Park which shall be reviewed by the Zoning Administrator. The Zoning Administrator shall approve, approve with conditions, or deny the revisions and recommend back to the Planning & Zoning Commission. 2. The property owner shall enter into a development agreement with the City of McHenry to provide improvements to the Center Street Park or a fee in lieu of providing improvements. 3. The development shall comply with Chapter 13: Landscaping and Screening of the City of McHenry Zoning Ordinance. 4. All development shall be in substantial conformance with the submitted site plan, landscape plan, and building elevations. 5. All other federal, state, and local laws shall be met. AND by making said motion, you agree the Approval Criteria for Use Variations have been met as outlined in the staff report. APPROVAL CRITERIA FOR USE VARIANCES (§11-19-6) A. Practical Difficulties or Particular Hardship: For reasons fully set forth in the written findings, the strict application of the provisions of this title relating to the use of the buildings or structures, or the use of the land, would result in unnecessary and undue hardship upon the applicant, as distinguished from mere inconvenience. Staff believes the strict application of the provisions of the Zoning Ordinance would result in an unnecessary and undue hardship upon the applicant. 358 B. Reasonable Return: The property cannot yield a reasonable return if permitted to be used only under the conditions allowed by the regulations in this title for the pertinent zoning district. Staff believes the subject property cannot yield a reasonable return if permitted to be used only under the conditions allowed by the regulations. C. Unique Circumstance: Special circumstances, fully described in the written findings, exist that are peculiar to the property for which the use variance is sought and that they do not apply generally to other properties in the same zoning district. Staff does believe this is a unique circumstance. The proposed use of the property for multifamily residential is consistent with other multifamily development less than 500 feet from the subject property. The Main Street Subarea Plan also recommends multifamily directly west of the subject property. D. Not Alter Local Character: The granting of the use variance will not alter the essential character of the locality, nor substantially impair environmental quality, property values or public safety or welfare in the vicinity. Staff does not believe approval of the request will generate any adverse impacts on the surrounding area and would have a positive economic impact on the surrounding businesses. E. Consistent With Title And Comprehensive Plan: The granting of a use variance will be in harmony with the general purpose and intent of this title and of the Comprehensive Plan of the City. Staff believes the overall request is consistent with the Title and Comprehensive Plan. The site is within 500 feet of several other multifamily developments and the Main Street Subarea Plan recommends multifamily land use directly west of the subject property. 2nd MOTION: I motion to approve the petitioner’s request for the following zoning variations: 1. A Zoning Variation to allow a corner side yard setback of 19’ in lieu of the required 30 feet. 2. A Zoning Variation to allow 100 parking spaces in lieu of the required 124 spaces. 3. Any other variations necessary to accommodate the proposed development. Subject to the condition that the development be in substantial conformance with the submitted site plan, landscape plan, and building elevations. AND By making said motion I agree with staff’s assessment that the approval criteria for zoning variances have been met as outlined in the staff report. VARIANCE APPROVAL CRITERIA (11-19-5). Comments of staff italicized below. A. Special Circumstances Not Found Elsewhere. Staff believes this is an unusual circumstance. The City plans to vacate the proposed right-of-way in the future which would bring the development in compliance with the Zoning Ordinance. The City’s parking regulations have been noted in prior developments to be excessive. B. Circumstances Relate to the Property Only. Staff believes this is a special circumstance as a result of the property being located adjacent to an unimproved right-of-way. Staff will be proposing to vacate the unimproved right of way which would bring the property into compliance with the Ordinance. The City’s parking regulations, as noted before, are excessive and have been allowed to be reduced in prior developments. C. Not Resulting From Applicant Action. The applicant did not create unimproved right-of-way which is planned to be vacated in the future to bring the property into compliance with the Zoning Ordinance. The applicant did not create the City’s parking regulations. D. Unnecessary Hardship. Staff believes if the city enforces the ordinance that it would cause undue hardship on the applicant since other properties have been granted similar parking variation requests. E. Preserves Rights Conferred By District: Staff believes this does not confer a special privilege for the subject property. F. Necessary For Use Of Property: 359 Staff believes that without approval, the petitioner would be denied reasonable use and enjoyment of the property. G. Not Alter Local Character: Staff believes approval of the applicant’s request would not substantially alter essential character of the locality nor have any other adverse impacts. Improvements to the subject property would positively impact the surrounding area. H. Consistent With Title And Plan: Staff believes the proposal is appropriate given its proximity to the downtown which is consistent with the Comprehensive Plan recommendation for increasing overall density in the downtown area. I. Minimum Variance Recommended: Staff believes the proposed variance requests are the minimum required. Attachments: • Petitioner’s Application and attachments • Receipt of publication of legal notice 360 7447 UNIVERSITY AVENUE, SUITE 210 MIDDLETON, WI 53562 (608) 824-2290 FAX (608) 260-7832 WWW.COMMONWEALTHCO.NET , 2021 City of McHenry 333 South Green Street McHenry, IL 60050 Re: Proposed DOMAIN Development – 914 Front Street Dear Mayor Jett, Council Members, and City Staff, Commonwealth Development Corporation of America is requesting a Use Variation to permit the proposed DOMAIN multi-family development consisting of fifty dwelling units for the property located on 914 Front Street. The proposed unit mix entails 16-one bedrooms, 9-two bedrooms, and 25-three bedrooms with rents in the realm of $400 up to $1,200. Current zoning of the forementioned property is Highway Commercial (C-5) which does not currently permit the development of a new multi-family apartment complex. For this reason, Commonwealth is seeking a Use Variation. In addition, a variance is being requested to decrease the required parking stalls to permit 100 stalls in total providing a 2:1 ratio for future tenants. We believe is more than sufficient based on Commonwealth’s 20 years of operational history demonstrating the average household requires 1.6 stalls per household. This proposal achieves this sites’ highest and best use as it is currently underutilized and presents a great opportunity for a new infill development given the proximity to amenities, transit, downtown, and more. The city of McHenry is currently experiencing a shortage in housing as development has been stagnated over the years with the average unit constructed in 1983 per the Strategic Planning Analysis conducted by Tracy Cross & Associates, Inc. (TCAI) in March of 2021. Even with the aging housing stock, TCAI’s report indicates a current vacancy rating of 0.7% demonstrating an extraordinarily strong market. TCAI suggests the addition of 320 apartment units by 2025 and while the Mayor, Council Members, and City Staff are making great strides in achieving this goal by approving multi-family developments as of recent, there must be a focus on providing high-quality units at a range of price points opposed to strictly luxury that are not affordable to a vast majority of the community. Present day apartment trends are creating a perception that a $1,000 studio/1BR apartment is affordable, when often that is not that case. For an individual making less than $3,335 a month ($40K annually) this price point is too high and places them in a “Rent Burden” in accordance with the 30-percent rule — that a household should spend no more than 30 percent of its income on housing costs. 361 This calculates to roughly $19 an hour. Active job postings within the city of McHenry that fall within this pay scale include Dental Receptionist, General Laborer, Caregiver, Culinary Team Member, and Security Officer to name a few. As demonstrated in this list, there are a vast majority of individuals within the McHenry workforce contributing to society on a daily basis that cannot afford the standard market-rate apartment rents that continue to climb at a breakneck pace. For this reason, Commonwealth is requesting a Use Variance along with supplemental Variances to permit the proposed development as it will benefit the existing workforce immensely while promoting future economic growth. Limited housing stock will no longer prohibit corporate expansion for the city of McHenry. If you require further information, please do not hesitate to contact me via email at t.sheeran@commonwealthco.net or by telephone at (608) 556-2939. With appreciation, Tyler Sheeran 362 363 364 365 366 367 368 369 370 371 372 373 374 375 376 Owner Mail to Address RUBINO II LLC 1515 W RIVER TERRACE DR, JOHNSBURG, IL 60051 MW ME OHALLERAN 915 CENTER ST, MCHENRY, IL 60050 R C M J TR 2012 1 BECKER 3108 CHARLOTTE AVE, MCHENRY, IL 600505827 CHGO TITLE LAND TR CO TR 2264 B8000226456 10 S LASALLE ST STE 2750, CHICAGO, IL 60603 ALTHOFFS GAS SVC INC 8001 S IL RT 31, CRYSTAL LAKE, IL 600148184 PADOVA PROP LLC 909 SERIES 1427 DUNHEATH DR, INVERNESS, IL 60010 BAGGIO PROP LLC AUTO CENTER 3860 VALLEY VIEW RD, PRAIRIE GROVE, IL 60012 Adjacent Property Owners 377 378 379 380 381 382 383 384 385 386