HomeMy WebLinkAboutPacket - 04/29/2002 - City Council
R E V I S E D
A G E N D A
REGULAR CITY COUNCIL MEETING
Monday, April 29, 2002 7:30 P.M.
1. Call to Order
2. Roll Call
3. Pledge of Allegiance
4. Presentation of Proclamation to Deputy Chief Gary Wigman
5. Oath of Office – Thomas J. O’Meara, Chief of Police
6. Public Input Session – 10 Minute Limitation
7. Consent Agenda:
Supplemental Appropriation Ordinance Fiscal Year 2001/2002;
Approve Change Order for North Interceptor Sewer Project to George Kennedy
Construction for an amount not to exceed $18,308.18;
Bonfire Permit Request;
Block Party Request;
Authorization to Promote Ambrose Kittle to Park Maintenance Crew Leader;
Authorization to Advertise for Replacement Park Maintenance Worker;
Approve Regular City Council Meeting Minutes: March 11, 2002 and March 18, 2002;
Approve April 22, 2002 Annual City Council Meeting Minutes ;
List of Bills for Approval.
8. Discussion: ComEd/Millstream Funding Option
9. Recommendation to Approve Fiscal Year 2002/2003 Budget
10. Approve changes made to certain language to the Northern Illinois Special Recreation
Association of Agreement and to the Northern Illinois Special Recreation Bylaws
11. Ratification of Northern Illinois Special Recreation Association Fiscal Year 2002/2003 Budget
12. Resolution Authorizing Northern Illinois Special Recreation Association to purchase property
at
820 E. Terra Cotta Avenue, Crystal Lake
13. Ordinance Adopting Various Text Amendments to the McHenry Zoning Ordinance
14. Award of Bids for Improvements to Main Street Commuter Rail Station, 4005 West Main
Street for the installation of a New Roof to Master Project, Inc. not to exceed $22,100; and for
Tuckpointing to Western Waterproofing Company, Inc. not to exceed $11,693.
15. Royal Drive & Crystal Lake Road Traffic Signal Project Changes
16. Mayor – Statement and Reports
17. Committee Reports
18. Department Head Reports
19. New Business
20. Adjournment
Posted and Mailed: April 24, 2002
C O N S E N T A G E N D A
The Consent Agenda for the April 29, 2002 City Council meeting consists of the
following items:
Supplemental Appropriation Ordinance Fiscal Year 2001/2002;
Approve Change Order for North Interceptor Sewer Project to George Kennedy Construction for an
amount not to exceed $18,308.18;
Bonfire Permit Request;
Block Party Request;
Authorization to Promote Ambrose Kittle to Park Maintenance Crew Leader;
Authorization to Advertise for Replacement Park Maintenance Worker;
Approve City Council Minutes: March 11, 2002 and March 18, 2002;
Approve April 22, 2002 Annual City Council Meeting Minutes ;
List of Bills for Approval.
Attachments
OATH OF OFFICE
TO: City Council
FROM: Mayor Pamela J. Althoff
FOR: April 29,2002 Regular City Council Meeting
RE: Oath of Office – Thomas J. O’Meara, Chief of Police
Police Commission Chairman Father Robert Sherry will be presented to deliver the
Oath of Office to newly hired Chief of Police Thomas J. O’Meara. A reception for
friends and family will immediately follow in the Municipal Classroom.
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CONSENT AGENDA
TO: Mayor and City Council
FROM: John A. Lobaito, City Administrator
FOR: April 22, 2002 Regular City Council Meeting
RE: Supplemental Appropriation Ordinance
On July 18, 2001, the City Council conducted a public hearing and considered the annual
appropriation ordinance for the 2001-02 fiscal year. The appropriation ordinance provides
the legal authority to allocate funds to specific spending activities and establishes the city’s
legal spending limit for the fiscal year. Despite the best efforts of staff, the estimated
spending requirements are occasionally underestimated. Consequently, a supplemental
appropriation ordinance must be passed prior to the conclusion of the fiscal year to amend
the appropriation ordinance and the legal spending limit for the fiscal year.
The supplemental appropriation ordinance for the 2001-02 fiscal year is attached. Changes
can be classified as either omissions from the original appropriation ordinance or increases
in the appropriation due to spending requirements or new programs implemented during
the year. The total increase in the appropriation is $613,975. The total appropriation for
the operating funds (General Fund and Water/Sewer Fund) does not change from the
original appropriation.
Revenue to cover the increased appropriations comes from savings in other accounts
within the same fund or a use of reserves which were available at the beginning of the
fiscal year but which were not appropriated. Consequently, no adjustments or increases in
revenues are required. In reality, the supplemental appropriation ordinance is an
accounting adjustment bringing city spending into compliance with state law. The city’s
budget remains as the internal control on spending.
It is recommended that the City Council consideration and approval of the supplemental
appropriation ordinance for fiscal year 2001-02.
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Attach.
AGENDA SUPPLEMENT
TO: Mayor and City Council
FROM: John A. Lobaito, City Administrator
FOR: April 29, 2002 Regular City Council Meeting
RE: Proposed Fiscal Year 2002/2003 Budget
Presented herein for the review and consideration of the Mayor and City Council is the proposed
2002-03 fiscal year budget.
Overview. The fiscal year 2002-03 expenditure budget totals $37,346,573 for all funds. However,
after eliminating inter-fund transfers for such things as health insurance, retirement contributions,
debt service and transfers of reserves to capital project funds, the net budget totals $28,172,909.
On the revenue side, the budget shows current revenues of $36,570,653 with an additional
$1,552,300 in planned reserve reductions. In total, net available revenues amount to $38,122,953.
Projected year end reserves for the General Fund and Water/Sewer Fund meet the reserve policies
of 33% and 25% of operating expenses set by the City Council.
General Fund. For the general fund, budgeted revenues show continued growth with an increase
of 7.9% over the 2001-02 budget and an increase of 4.5% over the estimated 2001-02 actual. In
total, General Fund revenues increase $917,200 and $542,500 over the prior year’s budget and the
projected actual for 2001-02 respectively.
The largest single source of revenue in the General Fund - sales tax revenue - accounts for 49.6%
of the fund’s current revenues. Sales tax revenues are budgeted at $6,200,000, an increase of
$900,000 (17.0%) over the prior year’s budget and approximately $815,000 (15.1%) over the
projected year-end actual for 2001-02. These adjustments continue to reflect the increase in retail
activity taking place in the City through large retail developments. Despite a slight decrease in the
property tax rate, property tax revenue is projected to increase $198,250 over the prior year’s
budget, an 8.4% increase. Assessed value within the City grew by approximately $40 million in
2001, a growth rate of 9.4%.
Personnel authorizations within the General Fund show the addition of 1.60 full time equivalents
(FTEs). Two new positions – a Finance Director and a Special Events Coordinator - are added in
the Administration Office. While the Finance Director is budgeted for a full year, the Special Events
Coordinator is budgeted for four months with an anticipated start date in January 2003. The Parks
Department adds an additional full time maintenance worker while eliminating one recreation
supervisor position with an employee returning from a leave of absence. A minor increase in a part
time position’s hours in the Community Development Department rounds out the personnel
changes for the year.
A 3.0% wage adjustment is included in the proposed budget for the non-contract employees.
Agreements with the three collective bargaining units – Fraternal Order of Police Units I, II, and the
Teamsters, expire at the end of the 2001/02 fiscal year. Adjustments will be made to the budget
once the agreements have been reached. Benefit levels for employees remain unchanged while
the City’s cost of providing health insurance increases a relatively modest 15% compared to the
prior year’s increase of over 35%.
Highlights of the 2002-03 General Fund expenditure budget are as follows:
A $500,000 transfer to the TIF Fund for the Riverwalk Project.
A transfer of $956,000 in General Fund Reserves for capital improvement projects.
Continuing the vehicle replacement program with the scheduled replacement of four
marked and one unmarked squads in the Police Department, one inspector’s vehicle
in the Community Development Department, a one-ton 4x4 truck in the Parks and
Recreation Department, and a 4x4 pickup and one large dump truck in the Public
Works Street Division.
Addition of a Finance Director and a Special Events Coordinator in the
Administration Department.
Increasing the hours of a part-time position in the Community Development
Department to assist customers better at the counter.
General salary adjustments of 3% for non-contract positions.
Commitments to capital projects consistent with the Five-Year Capital Improvements
Program (CIP).
In total, the General Fund expenditure budget increases $830,600 (6.4%). The General Fund
budget is balanced after discounting the planned use of reserves for capital projects and equipment
and re-appropriated items. In addition, despite directing significant amounts of the reserve to
capital projects, the budget maintains a reserve level of approximately 40% which exceeds the City
Council’s stated reserve policy of 33% of the General Fund operating budget.
Water/Sewer Fund. The total water/sewer utility expenditure budget totals $3,922,084, a decrease
of $983,184 over the prior year primarily attributable to prior year capital project spending. For
revenues, the fund increases to $3.67 million, $250,900 over the 2001/02 budget. The budget for
the Water/Sewer Fund is a status quo budget with no additional personnel added. Spending for
fixed assets is limited to $182,500, which includes the replacement of a 1990 dump truck, budgeted
at $80,000.
Summary. In summary, the fiscal year 2002-03 budget as proposed provides for the maintenance
of existing service levels and programs while undertaking an aggressive capital improvements
program. The budget as presented is balanced using a planned use of reserves for projects or
equipment previously appropriated, but for which an expenditure was not made, and for one-time,
capital project expenditures. The proposed budget achieves the City’s goal of maintaining
adequate reserves for unforeseen events, changes in economic conditions and daily cash-flow
requirements despite undertaking an aggressive infrastructure improvement program with the
issuance of minimal debt.
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The completion of the proposed budget is a culmination of the efforts of department heads, staff,
and elected officials. Staff looks forward to working with the City Council in the coming year to
implement the projects and programs presented in the budget. Staff recommends approving the
proposed 2002-03 fiscal year budget as presented.
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AGENDA SUPPLEMENT
TO: Mayor and City Council
FROM: John A. Lobaito, City Administrator
FOR: April 29, 2002 Regular City Council Meeting
RE: Funding Options for the Burial of ComEd Power Lines on Millstream
RECOMMENDATION: TO DISCUSS THE VARIOUS OPTIONS FOR FUNDING.
Background
At its April 15, 2002 meeting, the City Council approved burying ComEd lines on millstream
at a cost of $56,443.88. The total project cost is to be paid by the City of McHenry. At the
meeting, the City Council recommended to send this to the Finance/Personnel Committee
for a funding recommendation.
At the April 22, 2002 City Council meeting, Alderman Murgatroyd recommended, and the
City Council agreed, to discuss this matter at the next City Council meeting.
Funding Options
This project is not budgeted in the current fiscal year, nor is it planned in the 2002/2003
Fiscal Year budget. The following options are available to the City Council for funding this
project.
1) Utilize General Fund Reserves for 100% of the project cost. This option would not
affect any planned projects in the Fiscal Year 2002/2003 budget and would not
affect the city’s reserve policy of 33% of the operating budget.
2) Utilize annexation fund to pay 100% of the project cost. These funds are
unrestricted and may be used for this purpose. There are no projects in Fiscal Year
2002/2003 being paid from this fund.
3) A third option is to split the cost of the project 50/50 between the Annexation Fund
and the General Fund. General Fund monies would be drawn from fund reserves.
4) The last option is to eliminate budgeted capital projects funded by the General Fund
to pay for the Millstream project. Below is a list of projects supported by General
Fund Revenues that have not been started.
A) Olde Mill Pond Subdivision Bridge (Lot 106) $10,000
B) Electrical Improvements
Whispering Oaks Park/Veterans Memorial Park and
Green/Elm Street Park $37,000
C) Public Works Garage – Engineering $100,000
D) Civil Defense Sirens $30,000
E) Leonard/Maple Sidewalk $54,000
It is recommended that the City Council discuss these options and decide on a funding
source so that adjustments can be made to the 2002/2003 Fiscal Year budget.
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