HomeMy WebLinkAboutPacket - 11/18/2019 - City CouncilThe City of McHenry is dedicated to providing its citizens, businesses, and visitors with the highest quality of programs and services in
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AGENDA
REGULAR CITY COUNCIL MEETING
City Council Chambers, 333 S Green Street
Monday, November 18, 2019
1. Call to Order.
2. Roll Call.
3. Pledge of Allegiance.
4. Public Comments: Any member of the public wishing to address the Council is invited to do so by
signing in at the meeting entrance and, when recognized, stepping to the podium. Opportunities for
Public Comment are also provided under each Individual Action Item.
5. Consent Agenda: Motion to Approve the Following Consent Agenda Items:
A. Resolution designating November 30, 2019 Small Business Saturday in the City of McHenry;
B. Resolution establishing the 2020 City Council Meeting Schedule;
C. Appointment of Susan E. Meyer to the McHenry Police Commission Board for a term that will
expire on April 30th, 2022; and to the McHenry City Ethics Commission Board for a term that
will expire on August 19th, 2020;
D. Authorization to sign and execute an update an Intergovernmental Agreement fo r the Northeast
McHenry County Major Crash Assistance Team (MCAT);
E. Ordinance authorizing the execution of Northern Illinois Purchasing Cooperative (“NIPC”) 2020
Intergovernmental Agreement for the Purchase of Electricity and other Goods and Services;
F. Authorization to Execute Draw Certificate and Sight Draft Relating to Irrevocable Letter of
Credit No. 150026679-201 in favor for the account of First Midwest Bank in the amount of
$330,000;
G. Two Interconnection Agreements with Aqua Illinois to provide temporary water service for
McHenry Shores and Eastwood Manor water systems for the good of the general public at large
H. November 4, 2019, City Council Meeting Minutes;
I. Issuance of Checks in the amount of $2,140,466.68;
J. Issuance of As Needed Checks in the amount of $313,190.28.
6. Individual Action Item Agenda:
A. Motion to approve a Resolution estimating the Property Tax Levy request for 2019 (collected in
2020) at $4,618,786.
7. Discussion Items.
A. Presentation of the FY18/19 Audit
B. Allowing Non-Highway Vehicles on Roadways in McHenry
8. Staff Reports.
9. Mayor’s Report.
10. City Council Comments.
11. Adjourn.
The complete City Council packet is available for review online via the City website at www.ci.mchenry.il.us. For further
information, please contact the Office of the City Administrator at 815-363-2108.
The proceedings of the City Council meeting are being video-recorded and every attempt is made to ensure that they are
posted on the City of McHenry, IL “YouTube” channel within twenty -four (24) hours of the meeting adjournment.
NOTICE: In compliance with the Americans with Disabilities Act (ADA), this and all other City Council meetings are located
in facilities that are physically accessible to those who have disabilities. If additional accommodations are needed, please
call the Office of the City Administrator at 815-363-2108 at least 72 hours prior to any meeting so that accommodations can
be made.
Department of Community&
Economic Development
McHenry Municipal Center
333 Green Street
McHenry, Illinois 60050
Phone: (815) 363-2170
McHenl v Fax: (815) 363-2173
www.ci.mchenry.il.us
CONSENT AGENDA
TO: Mayor and City Council
FROM: Douglas Martin, Director of Economic Development
FOR: November 18, 2019
RE:Resolution designating November 30, 2019 Small Business Saturday in the City
of McHenry
Attached is a resolution designating November 30, 2019 Small Business Saturday in the City of
McHenry.
If the City Council concurs it is recommended the attached resolution designating November
30, 2019 Small Business Saturday in the City of McHenry be approved.
Department of Community&
Economic Development
McHenry Municipal Center
333 Green Street
McHenry, Illinois 60050
Phone: (815) 363-2170
McHenix Fax: (815) 363-2173
www.ci.mchenry.il.us
R-19-
A RESOLUTION DESIGNATING November 30, 2019 SMALL BUSINESS SATURDAY
IN THE CITY OF MCHENRY, MCHENRY COUNTY, ILLINOIS
WHEREAS, America's progress has been driven by pioneers who think big, take risks and
work hard; and
WHEREAS, from the storefront shops that anchor Main Street to the high-tech startups
that keep America on the cutting edge, small businesses are the backbone of our economy and
the cornerstones of our nation's promise; and
WHEREAS, small business owners and Main Street businesses have energy and a
passion for what they do; and
WHEREAS, when we support small business, jobs are created and local communities
preserve their unique culture; and
WHEREAS, because this country's 30 million small businesses create nearly two out of
three jobs in our economy, we cannot resolve ourselves to create jobs and spur economic
growth in America without discussing ways to support our entrepreneurs; and
WHEREAS, 87 percent of consumers in the United States agree that the success of small
businesses is critical to the overall economic health of the United States;
WHEREAS, 89 percent of consumers in the United States agree that small businesses
contribute positively to local communities by supplying jobs and generating tax revenue;
WHEREAS,the City of McHenry supports and joins in this national effort to help
America's small businesses do what they do best—grow their business, create jobs, and ensure
that our communities remain as vibrant tomorrow as they are today.
NOW,THEREFORE, BE IT RESOLVED NOVEMBER 30, 2019 SHALL BE DESIGNATED SMALL
BUSINESS SATURDAY IN THE CITY OF MCHENRY, ILLINOIS.
ADOPTED this the 18th day of November, 2019.
Wayne S.Jett, Mayor
Trisha Ramel, City Clerk
RESOLUTION R-19-xxx
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, 2020, to
December 31, 2020, is hereby adopted:
Monday, January 6 7:00 p.m. Regular Meeting
Monday, January 20 7:00 p.m. Regular Meeting
Monday, February 3 7:00 p.m. Regular Meeting
Tuesday, February 18 7:00 p.m. Regular Meeting
Monday, March 2 7:00 p.m. Regular Meeting
Monday, March 16 7:00 p.m. Regular Meeting
Monday, March 30 6:00 p.m. Special Meeting – Budgeting
Monday, April 6 7:00 p.m. Regular Meeting
Monday, April 20 7:00 p.m. Annual Meeting
Monday, May 4 7:00 p.m. Regular Meeting
Monday, May 18 7:00 p.m. Regular Meeting
Monday, June 1 7:00 p.m. Regular Meeting
Monday, June 15 7:00 p.m. Regular Meeting
Monday, July 6 7:00 p.m. Regular Meeting
Monday, July 20 7:00 p.m. Regular Meeting
Monday, August 3 7:00 p.m. Regular Meeting
Monday, August 17 7:00 p.m. Regular Meeting
Tuesday, September 8 7:00 p.m. Regular Meeting
Monday, September 21 7:00 p.m. Regular Meeting
Monday, October 5 7:00 p.m. Regular Meeting
Monday, October 19 7:00 p.m. Regular Meeting
Monday, November 2 7:00 p.m. Regular Meeting
Monday, November 16 7:00 pm. Regular Meeting
Monday, December 7 7:00 p.m. Regular Meeting
Monday, December 21 7:00 p.m. Regular Meeting
Passed this 18th day of November, 2019.
Ayes Nays Absent Abstain
Alderwoman Baehne ____ _____ _____ _____
Alderman Devine ____ _____ _____ _____
Alderman Glab ____ _____ _____ _____
Alderman Mihevc _____ _____ _____ _____
Alderman Miller _____ _____ _____ _____
Alderman Santi _____ _____ _____ _____
Alderman Schaefer _____ _____ _____ _____
______________________ ________________________
Wayne Jett, Mayor Trisha Ramel, City Clerk
ot
Akip Office of the Mayor
MOW ''
V'-k Wayne Jett,Jr.
McHenry Municipal Center
333 Green Street
McHenry, Illinois 60050
Phone: (815) 363-2100
MCHenr www.ci.mchenry.il.us
CONSENT AGENDA SUPPLEMENT
TO:City Council
FROM: Wayne Jett, Mayor
FOR: November 18th, 2019 Regular City Council meeting
RE:McHenry Police Commission Board and Ethics Commission Board Appointment
Agenda Item Summary:
In October of 2019 the Mayor's Office was notified that Richard Huber resigned down from his
appointed position on the McHenry Police Commission Board and Ethics Commission Board.
With this vacancy, Susan Meyer is being proposed by the Mayor for appointment to fill the
vacant Board positions for both the Police Commission and Ethics Commission with the advice
and consent of the City Council.
Background:
In October of 2019 the Mayor's Office was notified that long standing McHenry Police
Commissioner Richard Huber resigned effective October 29th, 2019. In August of 2019 the City
Council elected to appoint the McHenry Police Commissioners to a dual role as board members
of the McHenry City Ethics Commission. Attached to this supplement is Commissioner Huber's
letter of resignation. With this resignation, Mr. Huber will also be stepping down as a board
member for the McHenry City Ethics Commission. The vacant Police Commission position
carries a term that expires on April 30th, 2022 and the vacant Ethics Commission position carries
a term that expires on August 19th, 2020.
Susan E. Meyer expressed an interest in filling the vacancy on the Police Commission. Attached
is Susan Meyer's letter of consideration. Mayor Jett and Chief Birk spoke with Mrs. Meyer to
discuss her qualifications and the expectations and responsibilities of the position. At this time
Mrs. Meyer was also informed of the Ethics Commission vacancy as well and how the Police
Commission had been selected to hold dual Board positions on both Commissions.
Analysis:
Susan E. Meyer is a lifelong McHenry resident who has a significant background in education
and public service, which includes that of past City Council member and past Mayor for the City
of McHenry. These past positions have provided her the opportunity and experience required
to become an asset to the McHenry Police Commission and the McHenry Ethics Commission. In
speaking with Mrs. Meyer is was apparent that she has a desire to continue serving McHenry in
the capacity of a Police Commissioner and Ethics Commissioner.
Recommendation:
A motion providing City Council's consent of Mayor Jett's proposed appointment of Susan E.
Meyer to the McHenry Police Commission Board for a term that will expire on April 30t", 2022
and to the McHenry City Ethics Commission Board for a term that will expire on August 19tn
2020.
Mayor Wayne Jett
City of McHenry
October 29,2019
Dear Mayor Jett,
It is with regret that I must tender you my resignation as Chairman of the Board of Police
Commissioners. I have accepted a job offer in another part of the state and will be relocating my
residence to be closer to my new employer. As such, it would be very difficult to perform the duties of a
McHenry Police Commissioner.
I have enjoyed my time on the Commission very much and am proud of the fine men and women we
have hired and promoted to serve and protect the citizens of McHenry during my tenure. It was a
pleasure to work with Commissioners Roberts,Jones and Gregorio and a privilege to work with Chief
Birk and Deputy Chief Walsh.
Please accept my resignation effective October 29, 2019.
Most kind regards.
Richard Huber
Chairman, Board of Police Commissioners
E
I
I
November 51h, 2019
Mayor Wayne Jett
City of McHenry
333 S. Green Street
McHenry, Illinois 60050
Dear Mayor Jett,
Congratulations on your great success with Green Street and the Riverwalk. Downtown looks
beautiful!
I have recently learned that there may be an opening on the McHenry Police Commission. I have
always had a desire to serve on this commission, and I ask that you consider this a formal request
to be considered for this appointment.
Through my past service to our city I have gained a great understanding of the workings of our
police department. I am knowledgeable about our Dispatch Center, about CALEA re-
certification, and about the general operation of the police department. I believe that this
knowledge as well as a stron, desire to serve, would make for a very smooth transition in
appointing a new commissioner.
I believe that the McHenry Police Department is one of the finest in the State of Illinois and I
would be proud to support your Administration in this capacity.
Please don't hesitate to contact me if you have any questions about my experience or
background. I would welcome the opportunity to discuss this opportunity with you.
Sincerely,
Susan E. Meyer
4013 Boone Creek Circle
Mchcnry, IL 60060
815-405-7240
Al -
Rio
Office of the Chief of Police
John R. Birk
McHenry Municipal Center
333 Green Street
McHenry, Illinois 60050
Phone: (815) 363-2200
MCHenr Fax: (815) 363-2149
www.ci.mchenry.il.us
CONSENT AGENDA SUPPLEMENT
TO: Mayor and City Council
FROM: John R. Birk, Chief of Police
FOR: November 18th, 2019 Regular City Council meeting
RE: Authorization to sign and execute an updated intergovernmental agreement
for the Northeast McHenry County Major Crash Assistance Team (MCAT).
ATT: MCAT Intergovernmental Agreement
Summary:
The McHenry Police Department has an active member of the Northeast McHenry County Major
Crash Assistance Team since its inception in 2014. Over the years the team has grown from
three agencies to now five agencies. With this growth staff has prepared a single universal
agreement that can be signed by all parties rather than carrying multiple individual agreements
with each agency. Staff is asking for Council's support to enter into this new agreement. Staff is
available for any questions Council may have.
Background:
In 2014 the City of McHenry became a founding member of the Northeast McHenry County
Major Crash Assistance Team (MCAT). Originally MCAT was founded through a partnership
with the Johnsburg Police Department and the Spring Grove Police Department. In 2016 the
Woodstock Police Department joined MCAT. The mission of MCAT is to assist a member
agency, at the request of that agency, who is involved in a major crash investigation by
providing a structured team consisting of trained manpower and equipment to assist in the
investigation MCAT currently operates under the authority of Illinois statutory law and separate
intergovernmental agreements signed by all participating agencies.
In late August of 2019 the member MCAT agencies approved the addition of the Harvard Police
Department to the team. It was at this time that the MCAT Chiefs agreed that in moving forward
one consolidated intergovernmental agreement signed by all agencies would be more efficient
than each agency holding separate agreements for all other partnering agencies.
With the assistance of David McArdle and the Law Offices of Zukowski. Rogers, Flood and
McArdle a revised universal MCAT Intergovernmental Agreement was drafted and all the
member Chiefs unanimously approved this new agreement to replace the outdated individual
agreements MCAT was previously operating under.
Analysis:
MCAT is a valuable resource for the City of McHenry and our continued participation is needed
to assure that we are prepared to provide the best police services to our citizens in the event of a
major crash or traffic related incident that will require additional specialized resources and
personnel. The revised agreement allows for the team to operate in a manner that is consistent
with current laws, while clearly defining the purpose, power and authority, and indemnification
of the agencies entering into the agreement.
Recommendation:
If Council concurs, then it is recommended that a motion is considered to authorize the Chief of
Police to sign and execute this new intergovernmental agreement between the City of McHenry
and all other member agencies of MCAT.
INTERGOVERNMENTAL MUTUAL AID AGREEMENT
This Agreement providing law enforcement mutual aid services for major crash assistance
and diagramming major crime scenes is made and entered into among the Illinois municipalities who
become signatories to the attached Exhibit A, through each respective police chief ("Party" or
collectively as the"Parties").
WHEREAS,each of the Parties maintains equipment and personnel for law enforcement and
public safety within its own jurisdiction;
WHEREAS,the Parties desire to augment the law enforcement available in their jurisdiction
for major crashes and major crime scenes, when necessary;
WHEREAS,the corporate boundaries of the Parties hereto are contiguous or in reasonable
proximity so that mutual assistance in law enforcement is deemed feasible;
WHEREAS,it is mutually agreed that said mutual assistance in law enforcement is deemed
sound, desirable,practical, and beneficial for the Parties of this Agreement to render assistance to
one another by forming a McHenry County Regional Major Crash Assistance Team("MCAT") in
accordance with these terms; and
WHEREAS,the Parties have the power and authority to enter into this Agreement pursuant
to the provisions of Article VII, Section 10 of the Illinois Constitution of 1979, and the Illinois
Intergovernmental Cooperation Act, as amended, 5 ILCS 220/1 et seq., and other applicable
authority.
NOW, THEREFORE, in consideration of the promises and agreements made herein,the
adequacy and sufficiency of which is acknowledged as received by each Party, it is agreed as
follows:
I.INTENT OF PARTIES
The Parties shall provide mutual aid for major crash assistance and diagramming of major crime
scenes by forming MCAT and operating it pursuant to the terms of this Agreement.
II. TERM OF THE AGREEMENT
The term of this Agreement shall be from the date hereof until cancelled by mutual agreement of the
Parties or by written notice by one Party to all other Parties, giving sixty (60) days' notice of said
cancellation. Termination by any Party shall not affect the agreement between the other Parties.
III. COMPENSATION FOR SERVICES
The Parties agree all services and assistance performed under this Agreement shall be rendered
without reimbursement of any Party from another Party. Provided,however, extraordinary costs,
including emergency food,office space and materials and travel expenses shall be the responsibility
of the Party who requested MCAT activation.
Page 1 of 11
IV. FUNDING OF MCAT
No separate funding will be provided to MCAT at this time. Personnel costs, equipment costs,
training costs and other resources needed will be provided by each individual Parry.
V. ADMINISTRATION OF MCAT
A. Parties Control. All administration and procedures of MCAT shall be governed and
controlled by a majority vote of the chiefs of police or their designees of each Parry. Parties may be
present personally or attend meetings telephonically if they are unavailable to attend the meeting in
person and cannot send a designee. Each Parry will have one vote. MCAT administration and
procedures shall include:
1.Appointment and removal of the following officers: Chairman, Secretary,
Commander and Assistant Commander(there shall be only one Commander
or Assistant Commander actively serving from any one Parry);
2. Accept/deny applicants for becoming a Party;
3.Make final decisions on controversial problems;
4.Make final decisions of complete withdrawal of MCAT from an
investigation;
5.Review MCAT manpower once MCAT has been activated;
6.Determine who will function as MCAT's legal advisor;
7.Meet at least two times per year, in April and November;
8.Accept or reject team MCAT members;
9.Determine training needs; and
10. Determine extraordinary costs.
B. Chairman and Secretary. The Chairman and Secretary shall serve for a term of two
2)years with appointments made at the April meeting on even years. The duties of the Chairman
and Secretary include any specific duties assigned by the Parties at a meeting and the following:
1. The Chairman duties include scheduling dates, time, agenda and place for all
meetings.
2. The Secretary duties include acting as Chairman when the Chairman is absent at any
meeting; and keeping accurate records of all MCAT meetings.
VI. OPERATIONS OF MCAT
All MCAT operations shall be carried out pursuant to the chain of command structure, including a
designated Commander,Assistant Commander and Lead Investigator("Command Staff')set forth
below and depicted in Exhibit B, attached hereto.
Page 2 of 11
A. Commander.
1. Nature of Work. This is a highly responsible supervisory and administrative position
in planning,organizing and directing the activities of MCAT.Work involves responsibility for
the efficient operation of MCAT through careful planning, organizing and directing of its
activities. Work is performed with wide latitude in interpreting, applying, and formulating
procedures. The Commander shall be appointed by a majority vote of the Parties and the
Commander shall report directly to the Parties, working through the Chairman.
2. Requirements of the Position.
1.Minimum three(3)years supervisory level experience at the rank of Sergeant
or above;
2.Full-time employment as a sworn officer with a Party law enforcement
agency;
3.Certification as Evidence Technician(1-week basic class);
4. Basic Traffic Crash Investigation Certification(1-week basic class);
5.Demonstrate strong leadership and administrative skills;
6.Demonstrate written and verbal skills enabling effective communication with
all levels of government and the public;
7.Comprehensive knowledge of law enforcement investigative techniques and
strategies related to crash investigations; and
8.Range of experience should include concentration in all phases of crash
investigations and criminal investigations.
3. Duties.
1.Report to all Parties for all activities not involving an investigation when
MCAT has been activated;
2.Report to the top administrator of the Requesting Agency and all Parties for
all activities related to that investigation. The top administrator of the
Requesting Agency is the final authority in matters directly relating to the
investigation;
3.Direct supervision of the Assistant Commander;
4.Meet with the Assistant Commander and the Lead Investigator on a bi-
monthly basis to discuss MCAT related business; and
5.Maintain training documents and after action operational reports.
B. Assistant Commander
1. Nature of Work. This position is a highly responsible supervisory and administrative
position for MCAT. Work involves assisting the Commander in the planning, organizing,
directing,and supervising the programs and activities of MCAT.The Assistant Commander shall
be appointed by a majority vote of the Parties and report directly to the Commander. The
Assistant Commander is subject to the orders and commands of and the direction of the
Commander.
2. Requirements of Position.
Page 3 of 11
1.Minimum two(2)years supervisory level experience at the rank of Sergeant
or above, unless waived by a majority of the Parties;
2.Full-time employment as a sworn officer with the Parry law enforcement
agency;
3.Certification as Evidence Technician(1-week basic class);
4.Basic Traffic Crash Investigation Certification(1-week basic class);
5.Demonstrate strong leadership and administrative skills;
6.Demonstrate written and verbal skills enabling effective communication;
7.Comprehensive knowledge of law enforcement investigative techniques and
strategies related to crash investigations; and
8.Range of experience should include concentration in all phases of crash
investigations and criminal investigations.
3. Duties.
1.Acting Commander in the event of the Commander's absence;
2.Reporting to the Commander for all activities not involving an investigation
when MCAT has been activated;
3.Direct supervision of the Lead Investigator;
4.Meet with the Commander and the Lead Investigator on a bi-monthly basis to
discuss MCAT related business; and
5.Plan training for the Commander.
C. Lead Investigator.
1. Nature of Work. This position calls for an investigative supervisor who will be
responsible for his/her own motivation of a team of Crash Investigators. Work involves
competence in all phases of criminal investigation techniques and strategies as they relate to
crash investigations and crime scenes. Work involves the comprehensive knowledge and skills
to guide others towards a common goal. Appointed by the Commander and reports to the
Commander and Assistant Commander. The Lead Investigator is subject to the orders and
commands of and the direction of the Commander and Assistant Commander.
2. Requirements of the Position.
1.Minimum three (3)years experience as a major crash investigator;
2.Full-time employment as a sworn officer with the Party law enforcement
agency;
3.Certification as Evidence Technician (1-week basic class);
4.Basic Traffic Crash Investigation Certification(1-week basic class);
5.Possess above average verbal and written communication skills;
6.Comprehensive knowledge of law enforcement investigative techniques and
strategies related to crash investigations and crime scenes;
7.Have a strong understanding of arrest, search, and seizure laws and
procedures;
8.Has proven himself/herself through past performance as a recognized team
leader;
9.Demonstrates and leads by example through character, integrity and sound
Page 4 of 11
judgment and team orientation;
10. Have and demonstrate administrative skills;
11. Provide proof of all specialized schools, seminars,and classes in the area of
major crash investigations;
12. Physical and mental stamina and agility as well as the ability to work
successfully for extended periods of time;
13. Have an exceptional background in the processing of crime scenes, the
handling of and preservation of evidence; and
14. Possess above average knowledge of and be well-versed in contemporary
advanced crash scene investigative techniques and their application.
3. Duties.
1. Act as Commander in the event of the Commander's absence and the
Assistant Commander's absence; and
2.Direct supervision of a team of Crash Investigators.
3.Meet with the Commander and the Assistant Commander on a bi-monthly
basis to discuss MCAT related business.
4.Conduct all investigative tasks assigned by the senior Command Staff,
including but not limited to diagraming, interviewing, evidence collection,
data collection,report writing,testimony,and warrant execution,and similar
assigned duties.
D. Crash Investigator/Team Member.
1. Nature of Work. This is a highly responsible position for trained crash investigators.
The work involves a comprehensive knowledge of criminal investigative techniques and
strategies as they relate to major crash investigations. Those currently assigned to MCAT are
required to secure the identified minimum training requirements as soon as possible. A Crash
Investigator shall be appointed by a majority vote of the Parties and report directly to the Lead
Investigator. A Crash Investigator is subject to the orders and commands of and the direction of
the Commander.
2. Requirements of the Position.
1.Full-time employment as a sworn officer with the Party law enforcement
agency;
2.Certification as Evidence Technician (1-week basic class);
3. Basic Traffic Crash Investigation Certification(1-week basic class)at time of
appointment or within twelve (12) months;
4. Ability to properly document a crash scene through photography;
5.Ability to used approved methods to measure and document a scene for
diagramming purposes;
6. Ability to operate computerized diagramming equipment;
7. Ability to identify and properly collect/process evidence;
8.The ability to produce results based on a team approach, without regard for
personal reward;
9. A demonstrated pattern of successful interview and interrogation skills;
Page 5 of 11
10. An ability to review, consolidate and analyze large volumes of information
and reports;
11. Demonstrate above average written and verbal communication skills, with
the added ability to construct police reports in a clear and concise manner,
with the end result being an above average product;
12. Provide proof of all specialized training to include seminars, schools and
classes attended; at a minimum, be able to obtain the following
courses/certifications within the defined timeframe:
o Interview and Interrogation course (24 months)
o Crime Scene Photography (12 months)
o Certifications on all MCAT Equipment(12 months)
o Certification as Accident Investigator 1 -2 week course(12 months)
13. Have demonstrated the physical and mental stamina and agility as well as the
ability to work successfully for extended periods of time; and
14. Has demonstrated concerned initiative and competence in investigating major
crash scenes, with the added ability to follow direction.
3. Duties.
Conduct all investigative tasks assigned by the Command Staff,including but not limited
to diagraming,interviewing,evidence collection,data collection,report writing,testimony,and
warrant execution, and similar assigned duties.
VII. MCAT TEAM MEMBERS
A. Appointment of MCAT Team Member(s).
1. Each Party shall submit the name of a candidate who has full-time employment as a
sworn law enforcement officer with the Party to the Chairman for submittal to the Parties for
appointment or denial as a team member.
2. The Parties may make civilian appointments of highly qualified specialists who may
assist MCAT in the investigation involving their area of expertise. A Party shall submit the
name of a civilian candidate to the Chairman for submittal to the Parties for appointment or
denial as a team member.
3. The candidate should meet all the requirements for the position. Ifthe candidate does
not meet all the requirements of the position,the Parry should make written recommendation as
to why certain requirements should be waived. The recommendation should include a resume
and a schedule of training, which will then bring the candidate in line with the requirements.
4. The candidate shall then be submitted to the Commander for interview and, if a
civilian candidate,a background investigation.The Commander shall make a recommendation to
the Parties for appointment or denial as a team member.
5. Appointment of a team member to MCAT shall be made by the Parties.
Page 6 of 11
B. Withdrawal of MCAT Team Member(s).
1. The Parties agree not to withdraw an MCAT team member without giving a written
notice to the each of the other Parties at least thirty(3 0)days prior to the time of the removal, if
possible.
2. A Party withdrawing any MCAT team member must submit a replacement candidate
pursuant to the appointment procedure set forth above within thirty(30)days of withdrawing its
MCAT team member.
C. Removal of Team Member(s).
1. If the Commander is having a problem with a team member, he/she shall discuss it
with the Chairman. The Chairman and Commander will meet with the team member's Chief and
make every effort to correct the problem. If the problem cannot be resolved, it will then be
referred to the Parties.
2. The Parties have the authority to remove any team member if the problem cannot be
resolved.
VIII. MCAT EQUIPMENT
A. MCAT Equipment.
1. Any equipment donated by a Party to MCAT will remain under the ownership of the
donor. The Commander will maintain a list of this equipment and donor. A list of this
equipment will contain the following information:
1.Type of equipment
2.Make and model
3.Serial number
4.MCAT number
5.Equipment location
6.24-hour name and number for repairs
7.Cleaning dates
2. All equipment will be put into service to assist MCAT in resolving cases and the
Commander will maintain a list of all equipment available.
B. Personal Equipment. Upon activation,each Party,if possible,shall provide its team
member assigned to MCAT, an automobile, camera and digital audio recorder. The Commander,
with the approval of the Parties,has the authority to select personal equipment that should be issued
to each individual team member assigned to MCAT for use. This equipment may include team ID,
badge,uniform clothing,protective clothing,flash drives and computer equipment.Each Party shall
purchase and pay the cost of all personal equipment.
IX. MCAT TRAINING
A. Required Training. Quarterly training will be required by all MCAT team
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members, with a minimum of twenty-four (24) hours annually. The Commander will ensure that
quarterly training sessions occur. MCAT call outs can be used as training hours.
B. Training Documentation.
1. The Commander will be responsible for documenting the following training
information:
1.Type of Training
2.Instructor
3.Date of Training
4.Hours of Training
5.Personnel who attend the training
6. Absent personnel
2. All completed documentation will be forwarded to the individual agency to be stored
within individual training files. If an MCAT team member is absent from a training, the
Commander will contact the Party's Chief of Police or his/her appointee and inform them of the
absenteeism. MCAT team members may be removed from MCAT for not attending training.
X. ACTIVATION AND DEACTIVATION OF MCAT
A. Types of MCAT Cases. The following are the types of cases that may require
MCAT to be activated. They are meant to be guidelines and are not all-inclusive:
1.Crashes involving one or more fatalities;
2.Crashes involving personal injury where probability of death or great bodily
harm is great;
3.Crashes involving an emergency vehicle with serious injuries;
4.Crashes that are complicated or unusual and require technical crash
investigation skills and equipment; and
5.Other crime scenes that require a detailed diagram and accounting of the
scene.
B. Authority to Request Activation. Any Parry's Chief of Police or his/her appointee
who requires assistance while investigating any of the cases that MCAT may be activated for,
possess the authority to request MCAT activation.
C. Activation. The Parties agree a Party's Chief of Police or his/her appointee will
immediately contact the Commander with his/her request to activate MCAT. Any request for
MCAT activation should be made within the first hour of a crash investigation. However,a request
of MCAT to document a non-traffic related crime scene does not need to be made within the first
hour. The Commander will activate MCAT and contact the Chairman as soon as possible and notify
him/her of the activation. The Party requesting to activate MCAT shall be the lead agency.
D. Length of Activation.
1. The lead agency's Chief of Police or his/her appointee and the Commander will make
Page 8 of 11
all attempts to return MCAT team members back to their Parties' law enforcement agencies as
soon as possible without undermining the investigation at hand.
2. The lead agency is expected to exert maximum effort in participating in the
investigation.
3. The Commander will update the Chairman within twenty-four(24)hours to advise
whether the team has completed its work and deactivated. If an activation lasts longer that
twenty-four(24)hours,approval for the extension should be obtained by the Commander from
the Chairman.
E. Deactivation.
1. The Commander shall deactivate MCAT with the approval ofthe lead agency's Chief
of Police or his/her appointee.Upon deactivation,MCAT team members will be released back to
their Parties' law enforcement agencies.
2. Although MCAT as a whole may deactivate, the Commander may task specific
MCAT team members follow-up duties in reference to the incident such as:
1.Follow-up interviews;
2.Evidence work;
3.Diagram preparation;
4.Miscellaneous incident paperwork; and
5.Any other task deemed necessary by the Commander in MCAT's completion
of its investigation.
XI. MCAT RESPONSIBILITIES
A. Crash Investigation.
1. During a crash investigation, MCAT is responsible for the following functions:
1.Crash scene investigation;
2.WitnessNictim/Offender interviews;
3.Scene photography;
4.Crash scene diagramming;
5.Preparation and execution of search warrants and arrest warrants; and
6.Oversight of citations to be issued or criminal charges to be filed by
requesting agency.
2. The MCAT team member from the lead agency or other lead agency officer will be
responsible for the signing of all tickets, search warrants and arrest warrants.
B. Major Crime Scene. During a major crime investigation,MCAT is responsible for
Crime scene diagramming
Page 9 of 11
C. Investigation Documentation.
1. The Parties agree the lead agency will be responsible for the storage of:
1.Original investigative reports;
2. All evidence; and
3.Investigative notes.
The lead agency will be responsible for determining what information is to be released and to
whom it will be released. Because MCAT plays a support role, no MCAT team member will
release information about any investigation without the permission of the lead agency's Chief of
Police or his/her appointee.
XII. MEDIA RELEASES
A. Authority to Release. The lead agency's Chief of Police or his/her appointee is
responsible for determining who will make any and all media releases.No other Party will make any
media release about any active or inactive investigation unless the lead agency's Chief of Police or
his/her appointee has first been consulted and approved the same.
B. Unauthorized Release. Any MCAT team member who releases information in any
way to the media without first getting permission from the lead agency's Chief of Police or his/her
appointee is subject to immediate removal from the investigation by either the lead agency's Chief of
Police or the Commander. Once an MCAT team member is removed for releasing unauthorized
information to the media on an active or inactive investigation the MCAT team member will be
considered suspended from MCAT until the Parties have met and made a decision if the MCAT
team member is to be permanently removed.
XIII. MINIMUM INSURANCE REQUIRED
Each Party to this Agreement shall,during the entire term hereof,procure and maintain the following
insurance:
1. Comprehensive General Liability Insurance with minimum limits of$1,000,000 per
occurrence,including owners,landlords and tenants;manufacturers and contractors;owners and
contractors protective; products and completed operations; and contractual liability (which
insures this Agreement).
2. Personal Injury Liability Insurance with minimum limits of $1,000,000 per
occurrence,which insures all regular law enforcement personnel of the named,insured including
false arrest,false imprisonment,malicious prosecution,libel,slander and invasion of the right of
private occupancy.
3. Automobile Liability Insurance with minimum limits of$1,000,000 per occurrence
covering all owned or leased automobiles.
Each Parry will provide to the other Parties, upon request, a certificate of insurance, in form
Page 10 of 11
reasonably acceptable to the requesting Party, evidencing the existence of such insurance.
XIV. COUNTERPARTS
This Agreement shall be signed in counterparts by the parties hereto and each counterpart
shall be construed as one document.
XV. MISCELLANEOUS PROVISIONS
No Party shall be deemed to be an authorized agent of any other Party to this Agreement.
This Agreement constitutes the entire agreement between the Parties hereto and no other person or
entity shall be deemed to be a beneficiary of this Agreement. No Party hereto shall assign this
Agreement or the rights and duties hereunder. This Agreement shall not be construed as or deemed
to be an agreement for the benefit of any third parry or parties, and no third party or parties shall
have any right of action whatsoever hereunder for any cause whatsoever. The Parties further agree
that each Party will be responsible for defending its own respective entity in any action or dispute
that arises in connection with or as the result of this Agreement and that each Party will be
responsible for bearing its own costs, damages, losses, expenses and attorneys' fees. All notices
given or required under this Agreement shall be in writing and sent by certified mail to each Party at
the address listed on the signatory page of this Agreement.
Page 11 of 11
EXHIBIT A to
Intergovernmental Mutual Aid Agreement
S_ianatures of Parties to
Intergovernmental Mutual Aid Agreement
The below referenced police chief certifies that he/she has the authority to bind their respective
municipality to the Agreement to which this Exhibit is attached and such authority has been
authorized by motion, resolution, or ordinance of the designated municipality.
City of Harvard
By Harvard Police Department
By:
Mark Krause, Police Chief Date
EXHIBIT A to
Intergovernmental Mutual Aid Agreement
Signatures of Parties to
Intergovernmental Mutual Aid Agreement
The below referenced police chief certifies that he/she has the authority to bind their respective
municipality to the Agreement to which this Exhibit is attached and such authority has been
authorized by motion, resolution, or ordinance of the designated municipality.
City of Woodstock
By Woodstock Police Department
By:
John L. Lieb, Police Chief Date
EXHIBIT A to
Intergovernmental Mutual Aid Agreement
Signatures of Parties to
Intergovernmental Mutual Aid Agreement
The below referenced police chief certifies that he/she has the authority to bind their respective
municipality to the Agreement to which this Exhibit is attached and such authority has been
authorized by motion, resolution, or ordinance of the designated municipality.
Village of Spring Grove
By Spring Grove Police Department
By:
Thomas Sanders, Police Chief Date
EXHIBIT A to
Intergovernmental Mutual Aid Agreement
Signatures of Parties to
Intergovernmental Mutual Aid Agreement
The below referenced police chief certifies that he/she has the authority to bind their respective
municipality to the Agreement to which this Exhibit is attached and such authority has been
authorized by motion, resolution, or ordinance of the designated municipality.
Village of Johnsburg
By Johnsburg Police Department
By:
Keith VonAllmen, Police Chief Date
EXHIBIT A to
Intergovernmental Mutual Aid Agreement
Signatures of Parties to
Intergovernmental Mutual Aid Agreement
The below referenced police chief certifies that he/she has the authority to bind their respective
municipality to the Agreement to which this Exhibit is attached and such authority has been
authorized by motion, resolution, or ordinance of the designated municipality.
City of McHenry
By McHenry Police Department
By:
John R. Birk, Police Chief Date
EXHIBIT B to
I_ntergovernmental Mutual Aid Agreement
Chain of Command
Administration
All MCAT Parties,
including Chairman and
Secretary
M. C.A. T .
Commander
IF
M. C .A.T . Assistant Commander
Coroner' s Office
Outside Agency called in
to assist with Death
Investiqations
State' s Attorney' s
Office
Outside Agency called in to
assist MCAT Command Staff
Lead Investigator
Additionat Civilian
Crash Resources
Investigators/Team
Members
r•."'.,„
Office of Finance &Accounting
Carolyn Lynch, Director
McHenry Municipal Center
v 4
333 Green Street
McHenry, Illinois 60050
Phone: (815) 363-2100
MCHenr v Fax: (815) 363-2119
www.ci.mchenry.il.us
CONSENT AGENDA SUPPLEMENT
DATE: November 18, 2019
TO: Mayor and City Council
FROM: Carolyn Lynch, Finance Director
RE: Intergovernmental Agreement to remain a part of the Northern Illinois
Purchasing Cooperative ("NIPC")
ATTACHMENTS:An Ordinance authorizing the execution of Northern Illinois Purchasing
Cooperative ("NIPC") 2020 Intergovernmental Agreement for the Purchase
of Electricity and other Goods and Services
Northern Illinois Purchasing Cooperative ("NIPC") 2020 Intergovernmental
Agreement for the Purchase of Power Supplies and Other Goods and
Services
AGENDA ITEM SUMMARY:
Staff requests City Council to consider approving the attached Intergovernmental Agreement
with the Northern Illinois Purchasing Cooperative ("NIPC") for the purchase of power supplies
and other goods and services for an additional five year.
BACKGROUND:
In 2006, 2008, and 2013 the City entered into an intergovernmental agreement (IGA)with several
governmental agencies (Algonquin, Lakewood, Genoa, Huntley, Richmond, Hampshire,
Woodstock, Johnsburg, Lake In the Hills, Woodstock Fire/Rescue) collectively forming the
Northern Illinois Governmental Energy Cooperative (NIGEC) to negotiate the economical
purchase of power supplies and other goods and services. In 2014,the name of the Cooperative
was changed to the Northern Illinois Purchasing Cooperative (NIPC) and the focus in the IGA was
changed to include all types of purchases instead of just power purchases. This edited agreement
is set to expire January 31, 2020.
ANALYSIS:
Attached is an IGA authorizing the City's continued participation in NIPC. The attached
agreement outlines the duties of the cooperative and appointment of one representative from
each community who will act as the government's voting representative. Each member
community is allowed one vote and a majority vote of the affected members is required to enter
into any agreements. Approving the agreement authorizes staff to act as a voting member and
permits the consortium to accept a winning bidder and staff to sign a contract.
It is also important to note that the agreement was developed under the legal counsel of Ruth
Schlossberg of Zukowski, Rogers, Flood & McArdle to ensure that the terms contained therein
are in conformance with statutory guidelines.
RECOMMENDATION:
Therefore, if Council concurs, it is recommended that a motion be made to approve the attached
ordinance authorizing the execution of the Northern Illinois Purchasing Cooperative ("NIPC")
2020 Intergovernmental Agreement for the purchase of Electricity and other Goods and Services.
ORDINANCE NO. ORD-]9,U00Y
An Ordinance Authorizing Execution of the Northern Illinois Purchasing Cooperative
NIPC') 2020 Intergovernmental Agreement for the Purchase of Power Supplies and Other
Goods and Services; Waiving Local Bidding Requirements for Purchases Made through
NIPC; and Authorizing Purchase Agreements Made through NIPC
WHEREAS, the City of McHenry, 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.
WHEREAS, the City has participated in the Northern Illinois Purchasing Cooperative
NIPC")Intergovernmental Agreement("IGA")for the economical purchase of goods and services;
and
WHEREAS, by working through NIPC, the participants have been able to secure
competitively priced electrical power and have been able to reduce the total transaction costs of
identifying and negotiating power purchase arrangements with third party suppliers; and
WHEREAS, units of local government may contract and associate among themselves
pursuant to Article VII, Section 10, of the Illinois Constitution of 1970 and the Illinois
Intergovernmental Cooperation Act, 5 ILCS 220/1 et seq.; and
WHEREAS,some of the proposed NIPC members have local codes or rules that require that
certain purchases must be solicited for bids pursuant to their local rules, but under the proposed
NIPC intergovernmental agreement the NIPC purchasing rules shall apply instead; and
WHEREAS, the NIPC agreement contemplates authorizing certain specific parties to
execute contracts on behalf of the members; and
WHEREAS, the NIPC members wish to continue their cooperation by renewing and
revising the NIPC IGA which is attached hereto as Exhibit A.
NOW,THEREFORE,BE IT ORDAINED by the Mayor and City Council of McHenry,
Illinois, as follows:
SECTION 1:The Mayor be,and is hereby authorized and directed to execute,and the Clerk
is authorized and directed to attest, duplicate original copies of the NORTHERN ILLINOIS
PURCHASING COOPERATIVE ("NIPC") 2020 INTERGOVERNMENTAL AGREEMENT
FOR THE PURCHASE OF POWER SUPPLIES AND OTHER GOODS AND SERVICES
Agreement"), a copy of which is attached hereto as Exhibit A. This approval includes explicit
waiver of any conflict of interest, if any, for the law firm of Zukowski,Rogers,Flood and McArdle
to represent NIPC.
SECTION 2: The administration is directed to take all actions necessary to implement the
terms of the IGA and to execute contracts negotiated under the IGA in a manner consistent with its
terms, and any local ordinances or rules governing purchases that will instead be made through
NIPC are hereby waived and those purchases will instead be subject to NIPC's procedures.
SECTION 3: 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 4:All ordinances or parts of ordinances in conflict herewith are hereby repealed
to the extent of such conflict and the Intergovernmental Agreement establishing NIGEC is hereby
replaced by this new Agreement.
SECTION 5:This Ordinance shall be in full force and effect upon its passage,approval and
publication in pamphlet form(which publication is hereby authorized) as provided by law.
Passed this 18th day of November, 2019.
Ayes Nays Absent Abstain
Alderwoman Baehne
Alderman Devine
Alderman Glab
Alderman Mihevc
Alderwoman Miller
Alderman Santi
Alderman Schaefer
Wayne Jett, Mayor Trisha Ramel, City Clerk
Execution Copy
NORTHERN ILLINOIS PURCHASING COOPERATIVE ("NIPC"")
2020 INTERGOVERNMENTAL AGREEMENT
FOR THE PURCHASE OF POWER SUPPLIES
AND OTHER GOODS AND SERVICES
This Intergovernmental Agreement ("Agreement") is entered into between the signatory parties
below, all Illinois municipal corporations or other governmental entities, (collectively, "Members") for
purposes of renewing and revising the 2014 Intergovernmental Agreement for the Northern Illinois
Purchasing Cooperative ("NIPC"). It is explicitly contemplated that additional local governmental
entities may join this Agreement at a later date on the same terms as the signatory parties, with the
permission of the Administrator, as defined below, and without additional approval from the original
contracting Members. This Agreement shall be binding on any signatories.
WHEREAS, the Members have agreed that there may be economies of scale, reduced
administrative costs and improved commodity prices by purchasing goods and services, electricity and
other power supplies as a group;and
WHEREAS, in order to obtain these economies, several municipalities previously joined
together to create the Northern Illinois Governmental Energy Cooperative ("NIGEC") and continued that
cooperation through a previous intergovernmental agreement ("IGA") for NIPC and several of those
municipalities wish to continue that association by renewing and revising the NIPC IGA; and
WHEREAS, such cooperation is one of the purposes of the Intergovernmental Cooperation
Agreement Act("Act")(5 ILCS 220/1 et seq.); and
WHEREAS, this Agreement satisfies the requirements of that Act and of the Illinois State
Constitution provisions authorizing Intergovernmental Agreements (Article 7, Section 10).
NOW,THEREFORE,the Members agree as follows:
1. PURPOSE. To cooperate to negotiate economical purchase agreements for goods and
services as well as for power purchase agreements ("Purchase Agreements") all as directed by the
Governing Board(as that term is defined below).
Page 1 of 8
Execution Copy
2. GOVERNANCE. The NIPC membership shall be governed by one representative of
each Member (the "Governing Board"). Each Member shall have one vote, and unless otherwise
specifically provided for elsewhere in this Agreement,the Governing Board shall require a majority vote
for any binding decisions. All votes by the membership may be taken by telephone, e-mail or other
electronic or digital communication.
3. ADMINISTRATION.
a.The NIPC membership agrees to place administrative responsibility for its operations,
including approval of any new members, with the Director of the McHenry County Council of
Governments ("MCCG") (the "Administrator"), who will report to the Governing Board on
administrative matters. By a majority vote, the NIPC Governing Board shall agree upon an appropriate
level of compensation to MCCG(or any subsequent Administrator)for these administrative services.
b. The Governing Board may elect a new Administrator at any time by a majority vote.
4. SOLICITING AND SELECTING SUPPLIERS.
a.Solicitation.
i. NIPC shall seek to obtain supplies that are competitively priced or that are
supplied on terms that are in the best interests of the Affected Members (as that term is defined in
Section 4.a.ii below). To meet this goal NIPC may rely upon a variety of methodologies including using
a Request for Proposal solicitation, by the use of an on-line auction format or by using such other
methodology as the Affected Members determine are appropriate and consistent with applicable law.
ii. The Administrator is responsible for ensuring that each Member is on notice of
each new bidding opportunity. Each NIPC Member may choose, prior to the issuance of any bid request
or other solicitation for purchase, whether or not to participate in the specific bid request. Those
members who participate in each bid request shall be referred to as the "Affected Members". In cases
where less than the full NIPC membership is participating in a bid request or solicitation for purchase,
then only the Affected Members and not the entire Governing Board shall be permitted to vote on that
Page 2 of 8
Execution Copy
particular bid request or solicitation.
1) The Administrator may require Members to indicate whether they intend to
participate in any specific bid solicitation or purchasing effort and may require that the Members give
written notice to the Administrator of their intent to withdraw from participation, provided that no
withdrawal from participation shall be permitted if a solicitation is outstanding at the time of such
withdrawal notice or if bids already have been received and are being considered or negotiated by NIPC.
2) If a Member has not provided notice of withdrawal from a specific bid when so
required by the Administrator and if the Member has been included in any bid solicitation announcement
or process, then the Member must complete and execute any related Purchase Agreement that is
ultimately approved by the Affected Members. Such Member also shall be counted in any tally of
Affected Members for purposes of calculating the number of votes required for approval of any matter
related to a specific purchase initiative. However, the Administrator shall have discretion to permit
withdrawal of that member if, in the sole determination of the Administrator, such withdrawal will not
affect the price or terms offered to the balance of the Affected Members.
3) This limitation on withdrawal is imposed in order to ensure that the Affected
Members benefit from any bulk purchasing advantages resulting from guaranteeing to supply bidders a
defined customer base because this has an impact on the bid prices for supplies.
iii. For each bid solicitation, in the discretion of the Administrator, bidding may
exclude accounts that are not likely to offer significant financial advantages to members. This includes,
but is not limited to, situations in which bidding some or all of the electric power accounts of some
members will not offer significant financial advantages over Commonwealth Edison rates or other
existing or potential rates, such as for instance accounts for street lights and any franchise accounts.
iv. NIPC may waive bidding or solicitation for a non-public works purchase by a
two-thirds vote of the Affected Members provided that the Affected Members determine that this will
result in a competitive price or that such waiver is in the best interests of the Affected Members. Such
Page 3 of 8
Execution Copy
bid-waiver option shall include, but not be limited to, the extension of existing agreements without
additional solicitation or bidding.
V. By approving this Agreement, all Members agree that this process shall apply
to all purchasing by NIPC and any Member regulations governing purchasing to the contrary are hereby
waived for purchases made through NIPC. Nothing in this Agreement is intended to waive any
applicable Illinois law .
b. Selection and Execution of Agreements.
i. The Administrator may negotiate the terms for any Purchase Agreement in
preparation for consideration by the Affected Members.
ii. Each Affected Member shall be given one vote for purposes of determining
whether to enter into a specific Purchase Agreement.
iii. A majority vote of the Affected Members shall be required to authorize entry
into any specific Purchase Agreement except in cases subject to Section 4(a)(iv) of this agreement
involving waiver of bids or solicitation when a two-thirds vote of the Affected Members shall be
required to authorize entry into a Purchase Agreement.
iv. All Affected Members agree to be bound by the vote of the Affected Members
in favor of entering into a specific Purchase Agreement.
V. Following approval of a Purchase Agreement as required by this Section, the
Administrator may verbally commit the Affected Members to accept the Purchase Agreement, and each
Affected Member agrees to execute a Purchase Agreement binding their respective unit of government
within the time period approved by the Administrator. The Members acknowledge that the rapidly
shifting commodity price nature of many goods and some services, including but not limited to prices in
the power market, necessitates this structure, and that by approving this Agreement, they are authorizing
any of the following representatives of the Members to execute the Purchase Agreement:
1) President or Mayor
Page 4 of 8
Execution Copy
2) Board Member or Council Members designated by the
President or Mayor
3) Manager or Chief Administrator
4) Authorized Staff Person designated by Manager, Chief
Administrator,President or Mayor
5. USE OF CONSULTANTS BY NIPC. By a majority vote of the membership, NIPC,
through the Administrator,may negotiate with and retain a consultant or advisor who may coordinate the
purchasing process on behalf of NIPC and its Members. Any agreement between NIPC and any such
consultant must be approved by a majority vote of the Governing Board.
6. MEMBER COOPERATION REQUIRED. The NIPC membership agrees to provide
the necessary information required to develop bid specifications or to identify electric power supply
opportunities or goods and services in a timely manner in response to any request being made by the
Administrator or Consultant. Failure to provide this information in a timely manner may result in
exclusion from a particular Purchase Agreement or bid for such Purchase Agreement at the discretion of
the Administrator.
7. ALLOCATION OF NIPC COSTS. The NIPC membership agrees to share all costs
associated with the Administration of this Agreement, which costs shall be allocated among them by the
Administrator based on the number of Affected Members participating in a specific matter.
8. LEGAL REPRESENTATION. By executing this Agreement, each Member hereby
waives any conflict of interest, permitting the law firm of Zukowski, Rogers, Flood & McArdle
ZRFM")to represent them individually as well as serving as counsel to NIPC. This representation may
be changed by a majority vote of the Governing Board.
9. AGREEMENT REPLACES EARLIER NIPCAGREEMENT. By executing this
Agreement, a Member that belonged to any previous Agreement governing NIPC agrees, instead, to be
bound by the terms of this Agreement effective February 1, 2020..
10. TERM. This Agreement will be effective commencing on February 1, 2020 . The
Members agree to be bound by this Intergovernmental Agreement through January 30, 2025 regardless
Page 5 of 8
Execution Copy
of the date any individual Member initially approved the Agreement.
11. INDEMNIFICATION.
a.To the extent permitted by law, each Member hereby agrees to indemnify, hold
harmless, and defend any other Member from and against any and all losses, claims, expenses and
damages (including reasonable attorney's fees) made against or incurred by the other Member for any
actions taken or failures to act by the indemnifying Member in connection with or arising out of this
Agreement, to the extent that such claims were caused by actions, or failures to act, of the indemnifying
Member.
b. To the extent permitted by law, each Member agrees to indemnify, hold harmless, and
defend the Administrator and any of its officers, employees or agents from and against any and all losses,
claims, expenses and damages (including reasonable attorneys' fees) made against or incurred by the
Administrator or any of the Administrator's officers, employees and agents for actions taken or failures
to act under this Agreement in its role as Administrator except to the extent such actions or failures to act
were willful and wanton.
12. COUNTERPARTS. This Agreement may be executed by all of the parties in identical
original duplicates and each of the duplicates shall, individually and taken together, constitute one and
the same Agreement.
SIGNATURE PAGES FOLLOW]
Page 6 of 8
Execution Copy
VILLAGE OF ALGONQUIN ATTEST:
By
John C.Schmitt,President Gerald S. Kautz,Clerk
DATE: 2019
CITY OF GENOA ATTEST:
By
Mark Vicary,Mayor Kim Winker,Clerk
DATE: 2019
VILLAGE OF HAMPSHIRE ATTEST:
By
Jeffrey Magnussen,President Linda R.Vasquez,Clerk
DATE: 2019
VILLAGE OF HUNTLEY ATTEST:
By
Charles Sass,Mayor Rita McMahon,Clerk
DATE: 2019
VILLAGE OF JOHNSBURG
ATTEST:
By
Edwin P.Hettermann,President
Claudett E.Peters,Clerk
DATE: 12019
VILLAGE OF LAKE IN THE HILLS ATTEST:
By
Russ Ruzanski,President Cecilia Carman,Clerk
DATE: 2019
Page 7 of 8
Execution Copy
VILLAGE OF LAKEWOOD ATTEST:
By
Phil Stephan,President Janice S.Hansen,Clerk
DATE: 12019
CITY OF McHENRY ATTEST:
By
Wayne S.Jett,President Trisha Ramel,Clerk
DATE: 2019
VILLAGE OF RICHMOND ATTEST:
By
Craig Kunz,President Karla L. Thomas,Clerk
DATE: 2019
CITY OF WOODSTOCK ATTEST:
By
Brian Sager,PhD,Mayor Cindy Smiley,Clerk
DATE: 92019
WOODSTOCK FIRE AND RESCUE ATTEST:
DISTRICT
By Robert A.Kristensen,Secretary
Fred Spitzer,President
DATE: 2019
Z.WWIGEC NIPCUGA.NIPC.IGA.renewal2019.ExecutionCopy.redline.doc
Page 8 of 8
Department of
Economic Development
McHenry Municipal Center
333 Green Street
McHenry, Illinois 60050
Phone: (815) 363-2170
MCHenix Fax: (815) 363-2128
www.ci.mchenry.il.us
CONSENT AGENDA SUPPLEMENT
TO: Mayor and City Council
FOR: November 18, 2019 Regular City Council Meeting
FROM: Douglas Martin, Director of Economic Development
RE:Authorization to Execute Draw Certificate and Sight Draft Relating to Irrevocable
Letter of Credit No. 150026679-201 in favor for the account of First Midwest
Bank in the amount of$330,000
ATT:
1.Irrevocable Letter of Credit No. 150026679-201 in favor for the account of First Midwest
Bank in the amount of$330,000
2. Third Amendment to Redevelopment Agreement dated June 27, 2011
AGENDA ITEM SUMMARY:
Attached is a highlighted Irrevocable Letter of Credit No. 150026679-201 in favor of the City and
issued by First Midwest Bank in the amount of$330,000. Staff is seeking authorization to execute
the Draw Certificate and Sight Draft in the forms attached as Exhibits A and B to the letter of
credit to draw $55,000 in accordance with the Third Amendment to Redevelopment Agreement
paragraph nine.
BACKGROUND:
On June 27, 2011 the City entered into the Third Amendment to Redevelopment Agreement as
part of the River Place Residences development. A provision within that agreement requires the
four-story building at Waukegan and Green to be converted to condominiums no later than July
1, 2019. In the event this does not occur, a payment of$55,000 from First Midwest Bank is due
to the City each year the building has not been converted for up to six consecutive years for a
total maximum payment of $330,000. A letter of credit was filed in June of 2011 to guarantee
payment if timely payment was not made by First Midwest Bank.
RECOMMENDATION:
Attached is the letter of credit and agreement. Staff is seeking authorization to execute the Draw
Certificate and Sight Draft in the forms attached as Exhibits A and B to the letter of credit to
Department of
0% Economic Development
McHenry Municipal Center
333 Green Street
McHenry, Illinois 60050
Phone: (815) 363-2170
McHenr Fax: (815) 363-2128
www.ci.mchenry.il.us
receive the $55,000 in accordance with the Third Amendment to Redevelopment Agreement
paragraph nine. A motion for this is recommended.
981011AI First Alidwe.sl 13wik
3110;North Bunt Uuh Road
FirstIIi
11031.2;1)2
rst Midwest
June 3 0, 2011
City of McHeluy
333 South Green Street
McHenry, Illinois 60050
IRREVOCABLE LETTER OF CREDIT NO. 150026679-201
Beneficiary: City of McHenry, Illinois, an Illinois Municipal Corporation
Applicant: First Midwest Bank
Amount: $330,000.00
Expiration: July 20, 2024 or sooner as described in the Third Amendment to Redevelopment
Agreement dated June 30, 2011 by and between the City of McHenry, 1110
Green, LLC, Synergy Property Holdings and First Midwest Bank, a copy of
which is attached hereto as Exhibit C and a part hereof ((he "Redevelopment
Agreement").
Gentlemen:
We hereby establish our Irrevocable Letter of Credit No. 150026679-201 in your favor for the
account of First Midwest Bank for a sum or sums not to exceed Three Hundred Thirty Thousand
and 001100 DOLLARS (U.S. $330,000.00) available by your drafts at sight in the form attached
hereto as Exhibit A,accompanied by the following documents:
Certificate in the form attached hereto as Exhibit B, executed by an agent or official of
the City of McHenry.
This Letter of Credit will not expire to the expiration date stated above without forty-five (45)
days' prior written notice to the City of McHenry.
The obligation covered by this Irrevocable Letter of Credit is described in Paragraph 9 of the
Redevelopment Agreement.
The amount of this Irrevocable Letter of Credit will be reduced by all draws against it or other
payments made by First Midwest Bank in satisfaction of the terms of Paragraph 9 of the
Redevelopment Agreement.
UNDtQ
Alemhcr I U[C
NIGINAL
Irrevocable Lettei-of Credit No. 150026679-201
June 30,2011
Page 2
We hereby agree with the drawers, endorsers and bona fide holders of all drafts drawn and
documents presented under and in compliance with the terms of this Irrevocable Letter of Credit,
that such drafts will be duly honored upon presentation to us. If, within five (5) business days of
the date any draft drawn in conformity with this Irrevocable Letter of Credit is presented, we
wrongfully fail to honor same, we agree to pay all reasonable attorneys' fees, court costs and
other expenses incurred by the City of McHenry in enforcing the terms of this Letter of Credit.
This Letter of Credit shall be deemed a contract made under the laws of the State of Illinois and
shall be governed by and construed in accordance with such laws. The undersigned agrees that
venue for any actions brought with respect to this Letter of Credit shall be in the Twenty-Second
Judicial Circuit, McHenry County, Illinois.
The undersigned represents and warrants that the undersigned has full power and authority to
issue this Letter of Credit, and that all conditions precedent to the issuance of this Letter of
Credit have been satisfied.
FIRST MIDWEST RANI{
BY: Emery cl olcol BY: Sandra D. Houseman
ITS: Assistant Vice President ITS: Vice President
SAVED AS:first midnrst bank Ic 201.DOC
Exhibit A to First Midwest Bank
Irrevocable Letter of Credit No. 150026679-201
EXHIBIT A
SIGHT DRAFT
55,000.00
Date: 20
TO: First Midwest Bank
Attn: Letter of Credit Department
300 North Hunt Club Road
Gurnee, IL 60031
At sight, pay to the order of the City of McHenry, the stun of Fifty-fivc Thousand Dollars
55,000.00)
CITY OF MCHENRY
By:
Its:
Title
Draft No. drawn under First Midwest Bank
Irrevocable Letter of Credit No. 150026679-201
Dated June 30,2011.
Form of Sight Draft Approved
on June 30, 2011
First Midwest Bank
Its:
Title
Exhibit B to First Midwest Bank-
Irrevocable Letter of Credit No.150026679-201
EXHIBIT B
CERTIFICATE
The City of McHenry, an Illinois municipal corporation, hereby certifies as follows:
1. This statement is executed by whose position or title is
and who is duly authorized to execute this statement
on behalf of the City of McHenry; and
2. This statement is made and delivered to obtain payment against First Midwest
Bank's Irrevocable Letter of Credit No. 150026679-201, dated June 30, 2011; and
3. That Total Condominium Conversion has not occurred as described in the Third
Amendment to Redevelopment Agreement; and either
a) That First Midwest Bank is in default of its payment obligations pursuant
to the terms of the Third Amendment to Redevelopment Agreement; or
b) That Letter of Credit No. 150026679-201, issued by First Midwest Bank
will expire in forty-five (45) days or less and has not been renewed in
conformance with the terms of the Third Amendment to Redevelopment
Agreement.
CITY OF MCHENRY
By:
Its:
Title
Form of Certification Approved
on June 30,2011
First Midwest Bank
Its: V16,
Title
I
EXHIBIT "C"
THIRD AMENDMENT TO REDEVELOPMENT
AGREEMENT
i
TTiIRD AMENDMENT TO MIDl'irl LOPMCNT AGREEMENT
This Third Amendment to Redevelopment Agreement("Third Amendment")is entered
into this 27th day of June,2011,between the CITY OF MCBENRY,an Illinois municipal
corporation("City"), 1110 GREEN LLC,a Delaware braite.d liability company("Third
Developer');Synergy Property Holdings,LLC("Titleholder'D and First Midwest BRA-,an
llliaois banking corporation (`Tust Midwest,,).
RECITALS
A. On or about March 5,2007,the City entered into a Redevelopment Agreement for
the property commonly known as 1110 N. Green Street,McHenry,Illinois(the"Original
A.gzeememt")v6th Curtis Conmiercial,Iuc..("Original Developer').
13. On or about Aprit 7,200$,the p;qt"to the Original Agreement executed a First
Amendment to Redevelopment Agreement("First Amendment").
C. On oz about December 14,2009,the parties to the Original Agreement and
McHenry Riverwalk Center,LLC("Second Developer") executed a Second Amendnrmmt to
Redevelopment Agreement("Second'Amencbuent")which provided in part that all of Orietaal
Developer's right,title and interest in and to tlae Origuaal Agreemcnnt was assigned to the Second
Developer. The Original Agreement amended by the Fi mt Amendment and the Second
Amendment is hereafter referred to as the"Redevelopment Agreement,as amended."
D. On or about February 18,2011,the Second Developer conveyed to the
Titleholder,by a deed in lieu of forec).osure,all of its right,title and interest to the property
commonly known*as 1110 N. Green Street,Mclim-try, Illinois(the"Redevelopment Property'),
and all its interest in.the Redevelopment Agreement,as amended-
E. The Third Developer. bas entered into an agreement with Titleholder,a wb,olly
owned subsidiary of the parent company of First Midwest,to purolnase the Redevelopment
Property and the parties hereto desire to sign this agreement W order fo movo completion of the
Redevelopment Property;fonvard.
NOW,THEREFORE,the parties, for, good and valuable consideration,the receipt and
sufficiency of which are hereby acknowledged, agree as follows:
1. All of tho recitals contained in this Thud Amendment are tnne and correct and are
hereby iixot'pe gated into this Thud Amendment as though they were fully set forth in this
Section 1. This Third Aznendbanen.t shall be deemed effective as of Juune 27,2011.
2. .Any reference to the term`knulfi-fhmjly-residenntial housing condominium,"
condominium homes,""o,.vuer-oceupicd"units or similar term evidencing the intent of the
parties that the residential units which are a part of the Redevelopment.property shall be owner
occupied,in,the Original Agreement,attached exhibits, or amendments thereto, or in the Site
Development Plan referenced in the Original Agreement or arnericUents thereto, is hereby
amended to include the tem)"zentai apartment units leased by the Third Developer"as being
permitted by the City. The Third Developer is permitted to rent the residential units,which are a
part a£tbe Redevelopment Property to third parties or convert all of said units to individual,
residential condomkn uuns pursuant to the Illinois Condominium Property Act by filing a
condominium declaration and subdividing the residential portion of the Redevelopment property
into individual units("Total Condorairaurn Conversion').
3. Rach residential rental unit within the Redevelopment Property(the"residential
rental units')shall be subject to tttt occupancy limitation based solely upon each unit's size and
the City of McHery Building Code,Section 404.4 and Table 404.5, a copy of wbiab is attaeb.ed
hereto as `TxbJbjt A". The maximum occupancy for each residential rental.unit,based'upon the
squar,e footage of each such unit is set forth on the Riverwalk Information sheet which is
attached hereto as"Exhibit B". The tenants of each residential rental unit shall be subjeci to
Hiles and regulations for tba Redevelopment Property,a copy of wWob.is attached hereto ns
1~:,xbjbit C. The City shall have the right,but not the obligation,to enforce the terms of Exhibit
C,,vhich shall not be wnended without the written consent of the City,which consent shall not
be ttareasonable Nvilield,delayed or conditioned. Die City shalt not exercise its right to enforce
Exhibit C without providing the Third Developer with written notice to cure in accordance with
provisions witbin tl~e Original,Agrectn. t In addition,the Third Developer shall strictly comply
witb.phase 7 and please E of the City of McHenry Police Departmet!t's Crime Frec McHenry
Housing Pzograoi,as amended from time to time. Provided,however,the ThirdDeveloper shall
not be required to post signs on the property regardiug said program. In the evcut the City
exercises its right to enforce Exhibit C,the Thud Developer shall tbirnburse the City for sll of its
costs incurred including reasonable nttorney fees and costs.
4. Promptly following the date on which the Third Developer closes on its purchase
of the Redevelopment Property from Titleholder, the Boat Slip Access Easement and
Assignment agreement,dated October 28,2008,and xecorded on Dcc;ember 30,2008 itz the
McHenry County R;r.,otxler of.Deeds;office as Document Number 2008ROO63234("Boat Slip
Agreement")sball be amended to provide,inter-alia: a)that the easement,revocable license
areas, and boat slips referenced therein may be used by the Third Developer and the tenants of the
residential rental tuuts uritIdn the Redevelopment Property, and b)that the Right of First Offer.
referenced thereizi(paragraph.3 of the Boat Slip.Agreement)shall apply to the eight(8)slips at
the atuount agreed upon behveen the Third Developer and a good faith third party buyer;and c)
that the Third Developer sL%ll be entitled to transfer all of its rein Aning boat slips to any third
party Nvlro purchases All ofthe Third Developer's interest in the Redevelopment Property without
the requirement that said slips be first offered to lb.e City for purclase.
5. The Third Developer skull be pe=jtted three(3) temporary banners,for a period
not-to-exceed two hunched and ten(210)days from the elate the Third Developer closes its
purchase of the Redevelopment Property from Titleholder,not to exceed 64 square feet each.
The Third Developer shall also be entitled to the use of two snudwicli board open house si'm' s, 10
square feet each,placed so as not to irnpcde pedestrian traffic dufbig its business]louts.The
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Third Developer shall also crave the option of qr-vV.PS pezrnaJient si&T variances before the City
Council if deemed necessary.
6. Section 7 (iii)of the Oiztuial Agreement shall be amended by deletbig&0
reference to`Developer"and substituting in its place the words"Third Developer!'
7. Tlie Third Developer hereby guarantees and assiunes all of the obligations of
McHenry Rivenvalk Center, LLC relative to a Third Party Beneficiary and Indemnification
Agreement dated August 30'-,2610, a copy ofwhich is attached hereto as'Exhibit W.
8. Section 8.b.c.I and Exhibit F of the Original Agreenteaat shall be amended by
deletimg any reference to"Developer"and substituting in its place'Third Developer", By virtue
of this Third Amendment,the patties aclmowledge.that,subject to the Parking and Completion
Rccpiirement reshictions referenced herein, the Thud Developer sliall receive a maximum
reimbimsonaemt from the City of the Redevelopment Project Costs,of$624,028.00, "Maximum
TIF Reimbursement Amounn as if it were the party which advanced the funds and costs
necessary to develop the Dtwelopment as set forth in the Redevelopment Agreement and any
amendments thereto.
9. In the event Total Condozninitun Conversion has not occurred on or before July 1,
2019,First Mdwest shall pay to the City the sum of$55,000,on July 15''of each year for six(6)
consecutive years thereafter,commencing on July 1.5,2019("Conversion Years')or.until.Total
Condonunium Conversion sijall have occurred,wbicbever first occurs{"First Midwest
Obligation"). Payoaeut to the City of$55,000 io each of the Conversion Yews shall be racm-
1,ofirndable. To secure We First NVIdwest Obligation,upon execution of this Agreement,First
Midwest shall file with the City and continue to renew a clean irrevocable letter of credit issued
by Firr,t Midwest,in a Perim and substance,rensom-ibly npproved by rbe City Attorney. The
amount of the letter of credit shall be S330,000. The letter of credit shall remain in force until
the earlier of full Condominium Conversion or July 20,2024, The terni.s of the letter of credit
shall include,but not be limited to pzovisions that it Nvj.11 not expire without 45 days prior written
notice to the City and may be drawn upon(i) on July 15"'(or the next business day thereafter if
such date is not a bus tess day) of eaon Convervion Year if Total Condominium Conversion has
not occurred prior to such date or(b)if the letter of credit in srb eduled to expim anal has not been
remewed io.comfbrmkvice with the terms of this Agreement. Once Total Condominium
Conversion has occurred, all obligations of First Midwest under this Paragraph 9 shall terminate,
the letter of credit shall for all ptuposes be deemed to have expired and the original thereof shall
promptly be returned to First Midwest. NotMtbstaud.iog the foregoing,Furst Midwest shall Have
no obligation under.ties Paragraph 9 (anal the City slr<a11 have not right to draw upon the aforesaid
letter of credit)to pay the City in any Conversion Yenr unless the City has paid to the Third
Developer prior to the first Conversion Year an aggregate TIF Reimbursement Amount o.not
less than S330,000.
10. The first sentence or Section 5 of the Second Amendment to Redevelopment
Agreement is deleted in its outuaty amd the following substituted in its stead:'Thor to the sale of
any residential dwall5ng units,Third Developer have caused Total Condominium Conversion to
have,ocouzred.
It
3
i
i
11. No later than one hundred and eighty(180)days from the date the Third
Developer closes'its purchase of the Redevelopment property from Titleholder,Third Developer
shall,at its sole cost and expense,reconstruct the parking lot referenced in Section 4 of the
Second Amendment(the"WAHL parking lot ). 'Thd speci.fi.catic ms of said reconstruructiou shall
be those referentced is Table Tl-3,Stnrctlual Requirements, for a Bitiuninous Residential
Collector as listed in the Technical Specifications Manual and Standard Details as pail of the
City'*Subdivision Control wid Development Ordinance adopted 7anuary 19,2004.by Ordinance
No. MC-04-941 and amended August 6,2007 by Ordinance No.MC-07-926 by tare McHenry
City Council. In addition,uo later.than three Hundred(300)days from the date the Third
Developer closes its purchase of the Redevelopment Property from Titleholder,the Third
Developer shall,at its sole cost and expense, complete interior constnretion,renovatiwi.,
rehabilitation,alteration and other cosmetic improvements in all twenty-seven(27)residential
dwelling units,in sHct accordance with the interior residential dwelling unit build-out exlribits,
depicting countertop,flooring,cabinetry and appliance specifications and finish materials and
attached hereto and incorporated herein as pxbibit Band obtain all 27 certificates of occupancy
for the residential iurits,within said three hundred(300)days of the date that the Third
Developer closes its purchase of the Redevelopment property from Titleholder. The city shall
not to reasonably withhold,delay or condition the issuance of said occupancy permits. The
parldug lot reconstruction and completion of the residential rental units shall collectively be
referred to as,"Parl.-iiig and Completion Requirements". Other than meeting the Parking and
Completion Requirements,the Tbird Developer shall not be required to obtain any building or
other permits from the City or pay any fee or cost to the City as a condition of allowing it to
complete the interior. of any of the residential units. In order to secure timely compliance with
the Parking and Completion Regi*nients, any T17 distributions otherwise payable by the City
in 2011 shall be withheld until the Third Developer leas met the obligations of the Parking and
Completion Requirements.
12. The City represents and warrants to the Tlad)developer as follows:
a. That,with respect to the Redevelopment Agreement,as amended,and the
Redovelopment Property, all of the Developer's financial obligations,with the exception of
obligations referenced in this Third Amendment have beeu fully performed and accepted by the
City.
b. That the Third Developer shall be allowed to construct additional physical
amenities to the Redovelopuzeut Property including but not 1buited to a gym area,business center
and/or common roof top sun deck, subject to the provisions of the applicable City ordinances.
c. That all parking requixements for the Redevelopment Property have been
met,with the exception of the rc-construction of the)A'AHL parking lot.
d. That there are no major outstanduig building code, zoning ordinance,or
any other City of McHeriry code violation with respect to or affectjzrg the Redevelopment
Property.
4
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e. That the Redevelopment Property is zoned CA Commercial District by the
City of McHenry Zoning Ordinance and that there are no zui miun pariang requirements for any
permitted uses in said zoning district.
13, The City bereby consents to the assignment of the sight,title, arrd interest in and
to tLe Redevelopment Agreement, as amended from the Second Developer to tlxe ThJjr.d
Developer. This Third Amendment shall run:with the land, be filcd in the office of the McHenry
County Recorder of Deeds and be binding upon the parties Hereto and their successors and
assigns. Third Developer.may also collaterally assign all of its rights Hereunder to Third
Devcloper's leader without any further action and witliou.t consent of the City and to any third
party,without any further action and without consent oftlre City as long as such lender agrees to
be bound to the terms and provisions of the Redevelopt,rent Agreement,as amettded, amid this
Third Amendment.
14. In the event the terms of this Tlvrd AmeMment ooz n ct-Mth the terms of the
Redevelopment Agreement, as previously amended, die-terms of this'Third Amendment shall
govern. Except as specifically provided herein,the Redevelopment Agreement,as previously
amended,shall remain in frill force and effect.
15. All notices,demands,requests, consents,approvals, or other instruments requited
or permitted by this Amendment and the Redevelopment Agreement, as amended,shall be in
writing and shall be executed by the pasty or an officer,agent,or attorney of the party,and shall
be deemed to have been effective as of the date of actual delivery,if delivered personally, or as
of the third(3'd)
day from and including the date of posting,if.mailed by registered.or certified
mail,return receipt requested,with postage prepaid,addressed as follows:
To the Third Developer:Roy Blavvise
1110 Green LLC
655 hying parlr Road, Suite 105
Chicago, )L 60613
With a copy to: Steven I Cuda
Hntner, SchuL&Cuda
101 Van Buren,Straot
Woodstock, IL 60099
To the City: City Administrator
City of McHenry
333 South CITeen Street
McHeray, IL 60050
With a copy to: David W.McArdle
Zukowski,Rogers,Flood&McArdlc
50 Virginia Street
Crystal Lake,IL 60014
S
With a copy to: First Midwest Bank
770 W.Dundec Road
Arlington Heights,M 60004
Attn: Edward J.Melton
With a copy to: A.Ivnberg Goldgelvi Davis&Garraisa
330 N.Wabash Avenue—Suite 1700
Chicago,IL 60611
Attn: Bernard A.Schlifke
16. This 11b.-d AvoeAdment shalt be moil$nd void io,the even.t'fbizd Developer fails
to close its purchase of the Redevelopment Property from Titleholder within one hundred and
twenty(120)days of the date hereof. Third Developer shall provide the City with written
dociunentation dint it has closed said purchase within fourteen(14)days of the date of closing.
17. No single party shall be deemed to have drafted this Third Amendment or any
portion thereof. This Third Amendment is a product of Ibe,collaborative efforts of the ptuties
and their attorneys.
IN 1,VITNESS' W1i=017,the parties hereto have emised this Turd Amendment to be
executed by their duly authorized officers on the above date in McHenry,Illinois.
City of McHenry 1110 Gieon,LLC
13y: By:
Its Mayor I$MgEr
First Midwest,N.A. Synergy Property Iioldi,,i,s,LLC
Its
7.:%rMellrngCityotC:uri iDOLlRaevelopmcotAgmc3rdArnndChenge9wi:h Idoc
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Exhibit C"
Rules and Regulations for Ge Redevelopuieut Property
1. No dogs, ants or otl,=animals shall be kept or allon,ed'in the premises except with the
Lessor's prior convent and subject to the conditions set forth in any su.,h consent.No
animals shall be pom;ltted without n leash in any public ucas of the Prenoimr.. Assist
animals are permitted.
No additional locks or other similar devices shall be attached to any door without
Lessor's written consent.
3. Lessee shall not install or operate any machinery,refrigeration or healing devices.or use
or peradt onto the Premises any inflamtnnble fluids or materials which maybe hazardous
to life or property.
4. Hallways, stairways,and elevators shall not be obstru.ctod or used for any puipose other
than ingress and egu=s fox the Building,nor shall childroo,be permitted to-play in the
common areas,nor shall Lessee placo or store any it-cuts in tho hallways or Ioommon areas
of the Building.
5. No musical instrummt shall be played arud no radio or television set shall be,operated at
any time in such manner as to disturb or annoy other occupants of the Building,nor aball
other noises be viade«luelu will disturb or annoy any occupants of the BuZdba&
Operation o`'electrical devices which interfere with radio or tele-vision reception shall not
be permitted.
5: All moving and delivery shall be tbzough the roar eijtranco,stairway or service elevator at
hours designated by Lessor.
7. Lessee-shall.waintain the smoke detectors and carbon monoxide(CO)detectors,and
replace the batteries whoa necessary.
8. Lessee shall infbim the Lessor in writing of Lessee's intent to renew not less than forty-
five(45)days priorio Lease expiration.
9. Washrooms shall not be used foz any purpose other tb,,.0 that for which they are designed,
and no rubbish,rags,or ii udous items shall be placed in plumbing facilities or
receptacles,
10.' Lessee shall not place or pzmiit any article or antenna outside of the wxado'ws,on the
exterior walls,or on.the roof of the Building,and shall not throw or drop any article from
ajiy window.
11. Lessee sball not place, erect or install any sighs or advertisements on the v6dows,nor on
aaypart of the Building or Premises.
4
12. All garbage or refuse shall be seetirely wrapped and paced in the incinerator or garbage
container.
13. Waterbeds shall not be permitted in tic Premises without Lessor's writtcA.cowsemt.
14. Lessee shall not intoid'ere in any manner with tl?e beating or lighting or other fxturas in
the Building,nor run extmsioo cords or electrical appliances in violation of the Building
Code..
15. Lessee shall not solicit, canvas or conduct any door-to-door activities on the Premises.
16. Lessor requires Lessee to provide appropriate mater's insurance for Lessee's personal
property.
17. Right of Accoss to Show Aparhnents to Prospective Tenants and Purchasers;Lessor shall
have the right to show the apailm3ent to all prospective tenants and purchasers,and any of
Lessor's other invitees, in accordance with local stztutes md/or ordin urces.Tenant%hall
not iuteri'exe vnth Lessor's efforts to lease the apartmeat or sell the property, and tenant
shall be liable for any damages caused by breach of this provision.
IS. Lessor has the right to bar individuals from the Promises.Tenant must inform their guests
of all Lease provisions regarding use of the Premises and all rules and regulations.If
these provisions are violated by the tenant's pests,the Miest.may be barred and/or
tixested for criminal trespassing, after they)rave received abarred notice rind then have
been placed on a barred list by Lessor.If the ter?ant violates-the Lease or any of the rules
and regulations,'it shall.be grounds for termination.of tenancy.
19, The outside window covering shall be of a-Deutral color.
20, If Lessee vacates the apartment prior to the Lease expiration without benefit of any
approved sublet or Lease cancell.ati.ou agreemeut,the apartment'fflill be placed on the
market when vacant and the apartment keys tine returned.T.zssee sball be responsible for
monthly rent until the Lease expires or the apartment is re--leased.
21. No personal property shall be lcil in any public area and residents shall not bang towels,
laundry,clothing or anything else on patios,balconies or wiud6wsills,
22, —Boxes,trash,or other items shall not be stored outside the apartment doors or on patios
or balconnies,
23, -Bicycles and motorcycles shall not be stored orkept on patios,balconies or under
stairways or in uy other areas not designated by Management.
5
24. No boats,trailers,house trailers,recreational vehicles;vans,trucks and similar type
vehicles larger than one-half ton capacity shall be barked or stored in or about the
premises without the written consent of Manflgement.
Violation of auy of tliese riles and regulations shall be grounds for immediate,termination of
Us apartment lease. The City of McHenry has the right bat not the obligation to enforce these
niles and regulations.
3
6
E+;.laabit p»
Third Party.Beneficiary and Indemnification Agreement dated August 30t1i,2010
ORDutANCX K0,ORD.IMS12
AN OMINANCL A.VnT08II]NGM7.YXXCM0N j
OPAPA1trIIIfGI.O]'vvAs AG1t1;JJdtS{TbD'Yff EttT.V;'4TrXOx2GCF3;iF
AKDrnWAItD7N1:'AllA7 tlx.,A9Y7tQG1T.FAAZv'n7 t'RIElROvISZOFHOPAntUSY'
ACRF7'VMN-'DA'1F,DMW,,ES,2007,AND KNOWN AS TEX YDWARDT,NT,IIMEA ,J%7IlM r, .
TOR THF.PROPJ'Etl'Y T.00ATJ72 AT lJlz x Gut»x STzt z'r 'nil•t 9TY OF hfCfrFIIRS i
MCLLEM:Y,t;0IIY1'Y,ILLr110b4
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etbgdpigoas.l]ee000fepcvtioeof•Hilt.uiLewSkbit dcdr t+ropytirrtlottrrn ofhreei5veti
Lid W=VoRnRorllordaiu111111(3m+StrediotheMYCMla wY,nllla!t
A'OW,13i1Mn..-)M lr OPDADTD 3IY UM MYOR AM CITY COUNCM OF im CITY
OP.Aif n YeY,1dCHStIIt}'00[INIY,II1AOi9 A$J:OII.OV16:
R.91MILL The J,ra!o Avvm td,bw%o me duo dAgtitt 3P:24]o tKc*em F d,rtf t l lfromrnn
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tUi of Wooe nd bDMocrad hadi by m&rwm
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Cabinetry,and Appliance Specific f oars s iaci.Fiuisb NJuierin[s
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18h18 porcelain file with glass or for Xsitchen
stone imsci-ts for ldtchen anal baths - Sminless steel appliances
Berber carpeting Full gloss shower doors
42"stained wood cabinets with Tiled foyer'entrance
crown moldiig 2 panel interior wood doors
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talus all the convenience of dining and high-end
retail right inside the building.
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Department of Public Works
4 ^ Troy Strange, Director of Public Works
1415 Industrial Drive
McHenry, Illinois 60050
Phone: (815) 363-2186
Fax: (815) 363-2214
McHenrwww.cityofmchenry.org
CONSENT AGENDA SUPPLEMENT
DATE: November 18, 2019
TO:Mayor and City Council
FROM: Troy Strange, Director of Public Works
RE:Temporary Interconnection Agreements with Aqua Illinois
ATT: Interconnection Agreement Between the City of McHenry and Aqua Illinois related
to McHenry Shores
Interconnection Agreement Between the City of McHenry and Aqua Illinois related
Eastwood Manor
Interconnection Location Displays McHenry Shores & Eastwood Manor
Approved Interconnection Engineering Plans
AGENDA ITEM SUMMARY:
Staff requests City Council to consider interconnection agreements with Aqua Illinois to provide
temporary water service for the McHenry Shores and Eastwood Manor water systems. The
purpose for the temporary interconnections between the City's public water supply and Aqua's
private systems is solely to provide water in the event of an emergency or possible maintenance
with the private Aqua utility. The agreements protect indemnify and hold the City harmless of
any liability associated with the allowance of the interconnection. It is important to note that
the City of McHenry bears no responsibility to provide water should the City (in the best interest
of its residents) feel the safety or supply of water could be compromised.
BACKGROUND:
Before City Council are two proposed agreements: an Interconnection Agreement with McHenry
Shores and an Interconnection Agreement with Eastwood Manor. There is currently an existing
interconnection between McHenry Shores and the City's public water supply. This connection
was previously installed by the City as a protective measure in the event that temporary water
service was needed for City residents whom reside in McHenry Shores. In the past, the City has
supplied temporary water service to McHenry Shores for electrical power supply issues, water
tower repainting, and a water main break which Aqua Illinois had difficulty locating for several
days. Eastwood Manor has no current interconnection with the City, however the City was
The City of McHenry is dedicated to providing the citizens,businesses and visitors of McHenry with the highest
quality of programs and services in a customer-oriented,efficient and fiscally responsible manner.
approached by Aqua Illinois for a temporary emergency interconnection. Since there have been
no agreements executed to-date, these two agreements will ratify and formalize the temporary
interconnections.
ANALYSIS:
Staff has reviewed the proposed agreements with the City Attorney and Aqua's legal counsels.
One important difference between the agreements is that after five years, should Aqua desire to
keep the agreement for McHenry Shores in place, Aqua will be required to install a new
interconnection between the City's utilities and Aqua's utilities at their sole expense. This future
improvement is necessary due to the current interconnection being small and antiquated. The
Eastwood Manor interconnection will be new construction and completed in accordance with all
modern standards for this type of connection.
RECOMMENDATION:
Therefore,if Council concurs, it is recommended to approve the two interconnection agreements
with Aqua Illinois to provide temporary water service for McHenry Shores and Eastwood Manor
water systems for the good of the general public at large.
The City of McHenry is dedicated to providing the citizens,businesses and visitors of McHenry with the highest
quality of programs and services in a customer-oriented,efficient and fiscally responsible manner.
Emergency Water Service Agreement
Between the City of McHenry Illinois and
Aqua Illinois. Inc. for McHenry Shores Water System(IL 1115020)
This Agreement entered into this day of 2019 by and between
Aqua Illinois, Inc., an Illinois public utility corporation hereinafter called "Aqua", a corporation
established under the laws of the State of Illinois and the City of McHenry, McHenry County,
Illinois, a municipal corporation under the laws of Illinois,hereinafter called"City". Individually,
City and Aqua may be referred to as a"Party" and collectively as "Parties".
WHEREAS, Aqua and City own and operate separate public water supply systems which
furnish potable water for the use of their respective customers; and
WHEREAS, Aqua desires to provide for a re-connection between the City's water system
and Aqua's McHenry Shores Water System, currently located at an existing water meter vault on
the west side of Barreville Road,north of Biscayne Drive,("Subject Location") as a backup supply
of potable water to its residents under certain terms and conditions stated herein. Collectively,the
two potable water systems of each Party shall be referred to as "Systems".
Now, therefore, in consideration of the mutual covenants, conditions and Agreements
herein contained, the adequacy and sufficiency of which is acknowledged as sufficient by the
Parties hereto, it is agreed as follows:
1. Term. This Agreement shall commence upon the determination by the City Engineer,
in writing, to the parties hereto,that all of the required construction referenced herein to provide for the
connection between the two Systems has been completed and all required fees due from Aqua to the City
have been paid. This Agreement may be terminated by either Party, for any reason or no reason at
all, by written notice given to the non-terminating Party.
2. Water Service Connection.
A. Subject Location Connection.The City will make a water connection with
a backflow prevention device and water meter in the meter vault at the Subject
Location. The parties agree that this shall be a temporary water service only due to
an emergency or in the cases of maintenance causing the McHenry Shores Water
system to not have sufficient water supply to service its customers. The Subject
Location Connection location, meter and vault shall be owned and maintained by
the City.
B. Subsequent Interconnection. On or before June 1, 2024, should Aqua
continue this Agreement, Aqua shall cause a new metering and backflow
prevention vault to be installed on the east side of Barreville Road across from the
existing metering vault ("Subsequent Interconnection"). The full cost of
Subsequent Interconnection construction is to be solely born by Aqua. Thereafter,
the Subject Location Connection shall be disconnected by the City and the
Subsequent Interconnection shall serve as the Water Service Connection hereunder.
The parties agree that the Subsequent Interconnection shall also be a temporary
water service only used in the event of an emergency or in the cases of maintenance
causing the McHenry Shores Water system to not have sufficient water supply to
service its customers. The Subsequent Interconnection, including the location,
meter and vault shall be owned and maintained by Aqua.
C. The purpose of the Subject Location Connection and Subsequent
Interconnection are to allow Aqua to access City potable water service for Aqua
residents within the McHenry Shores subdivision pursuant to the terms of this
Agreement. Aqua shall reimburse the City for all costs incurred for labor and
materials it provides relating to the construction and maintenance, if any, of the
Subject Location Connection and Subsequent Interconnection, in addition to all
attorney fees incurred in connection with preparing this Agreement. The City does
not guaranty specific GPM quantities or system pressures to Aqua.A representative
from the City and Aqua must be present at which time controlling valves for the
Interconnection are opened or closed. This Subject Location Connection and
Subsequent Interconnection shall only be utilized by Aqua in emergency situations
where Aqua's System cannot supply sufficient water to its residents or in the case
of maintenance of the system wherein Aqua's System is down and Aqua is unable
to supply sufficient water to its residents. Nothing herein is intended to or should
be constructed to create an obligation of the City to furnish water service to Aqua
during or after the term of this Agreement. Aqua will pay all the costs of
constructing and maintaining the Subject Location Connection and Subsequent
Interconnection . An annual backflow test will be conducted by Aqua on the
backflow device and reported, in-writing, to the City. The water meter shall be of
the manufacturer and specifications determined by the City. Aqua shall be solely
responsible for the components of its water system. Aqua shall not operate or
attempt to operate its well or water treatment equipment while the temporary water
service connection is in place.
3. Indemnification by Aqua. The City shall not be responsible for complying with
any laws or regulations pertaining to the operation of a public water utility, nor will the City be
responsible for Aqua's system or its residents resulting from water pressure increase or decreases,
water quality or quantity issues or any other matters resulting from Aqua's use of the Subject
Location Connection and Subsequent Interconnection. Aqua specifically agrees to save, hold
harmless and indemnify the City from any costs,claims,expenses,or liabilities, including attorney
fees and court costs, including System damages incurred or personal injuries, resulting from or in
any way related to the use of the Subject Location Connection and Subsequent Interconnection.
4. Non-Exclusive Agreement. Nothing in this Agreement shall be construed to
prohibit Aqua or City from entering into any mutual emergency water service contract with any
other person, corporation, firm, utility, municipal corporation or governmental authority, for the
purpose of obtaining additional water for the System.
5.Suspension of Service. The City may temporarily suspend service hereunder at
any time if, in its sole judgment, continuing such service would jeopardize the safety or adequacy
of the water supply to the City's current customers, be damaging to the City's water quality,
quantity or its distribution system, or because of an actual or threatened breach of this Agreement
2
by Aqua. Notice of such suspension shall be given to Aqua as soon as practicable under the
circumstances.
6. Rates and Payment. Aqua shall pay user fees to the City fees in accordance with
applicable City water usage charges using inside Corporate Limit rates, as provided for in the City
Municipal Code, as amended from time to time. Expect as stated herein, there shall not be any
charges for availability, standby, or meter charges; nor shall there be any base charges or
volumetric charges during any monthly period unless Aqua receives water from the City during
such monthly period. Invoices for service provided hereunder shall be submitted monthly and
shall be due and payable within thirty (30) days from the date of invoice. In the event that Aqua
fails to immediately pay any City invoice for its water usage,the City may immediately discontinue
service and disconnect the Subject Location Connection and Subsequent Interconnection. If Aqua
shall fail to make payment thereof within said thirty (30) days, then it shall pay interest on the
unpaid balance of said account at the rate of twelve (12) percent per annum until paid, plus all
attorney fees incurred by the City to enforce the terms of this Agreement and its ordinances.
7.Technical Provisions.
A. No Cross Connections..
Neither Aqua nor City shall allow any cross connection between its distribution
system and any other private water supply system.
B. Meter. The City shall own the meter. The meter shall be read monthly by
the City during times when Aqua is receiving water from the City.
In the event that the meter fails to register, or registers incorrectly, the water
furnished through such meter,the Parties shall agree upon the length of period during which such
meter failed to register or registered incorrectly, and the quantity of water delivered through such
meter during such period, and upon agreement, an appropriate adjustment in usage and any rates
charged based thereon shall be made. For the purpose of the preceding sentence, a meter which
registers within three (3) percent, plus or minus, of the true registration, shall be deemed correct.
The properly authorized officers, agents and representatives of Aqua and City, shall at all times
have free access to the meter or meters and all other facilities herein provided for, for the purpose
of reading the registrations of said water meter.
City shall periodically cause its meter to be inspected and tested. Advance written
notice of such tests shall be given to Aqua one week before such test are to be made, and, at the
option of Aqua, such tests shall be conducted in the presence of Aqua.
Aqua may have additional tests conducted on the meter at a reasonable interval at
its cost and expense.
The Parties may,at their option and own expense, install and operate a check meter
to check the rate and quantity of flow, provided that the measurement of water for the purpose of
this Agreement shall be solely by the Delivery Meter except in the cases hereinabove specifically
provided to the contrary. All such check meters shall be of standard make and shall be subject at
all reasonable times to inspection and examination by any employee or agent of the other Party,
3
but the reading, calibration and adjustment thereof shall be made only by the installing and
operating Party, except during any period when a check meter may be used for measuring the
amount of water delivered.
C. Water Quali1y. Potable water delivered under this Agreement shall conform
to the then-current applicable standards established by the Illinois Environmental Protection
Agency and the United States Environmental Protection Agency and to any other water quality
laws, rules or regulations then applicable to potable water. The City shall inform AQUA at least six
6) months (or when such is contemplated if less than six (6) months) of any planned changes to the
treatment or disinfectant methods of the water supply to be delivered hereunder.
8. Miscellaneous Provisions.
A. This Agreement is not assignable and no rights under this Agreement shall
inure to third parties who may receive benefits under this Agreement or for whom water is
furnished hereunder.
B. Notices sent hereunder may be served by hand delivering, e-mail
transmission, or by Fed Ex to the Parry to be notified at the following addresses of the Parties:
Aqua Illinois, Inc. 1000
S. Schuyler Avenue
Kankakee, IL 60901
Attn: President/Regional Manager
Email:
City of McHenry
333 S. Green Street
McHenry, IL 60050
Attn: Administrator
Email:
The Parties hereto shall have the right from time to time and at any time to change their
respective addresses by written notice to the other Party.
C. It is agreed that the exclusive venue for any and all disputes relating to this
Agreement shall be in the 22"a Judicial Circuit Court, McHenry County Illinois. The City shall be
entitled to recover from Aqua all of its attorney fees incurred in the event any lawsuit is filed by
or against Aqua regarding this Agreement.
D. This Agreement may be executed in any number of counterparts, and by
facsimile or electronic scanned signature, each of which shall be deemed to be an original, and all
of such counterparts shall constitute one Agreement.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
by their respective corporate officials, authority therefore having first been provided.
AQUA ILLINOIS, INC.
4
By
President/Regional Manager Date
City of McHenry
By
Mayor Date
5
Emergency Water Service Agreement
Between the City of McHenry Illinois and
Aqua Illinois. Inc. for Eastwood Manor Water System(IL1115250)
This Agreement entered into this day of 2019 by and between
Aqua Illinois, Inc., an Illinois public utility corporation hereinafter called "Aqua", a corporation
established under the laws of the State of Illinois and the City of McHenry, McHenry County,
Illinois, a municipal corporation under the laws of Illinois, hereinafter called"City". Individually,
City and Aqua may be referred to as a"Party" and collectively as "Parties".
WHEREAS, Aqua and City own and operate separate public water supply systems which
furnish potable water for the use of their respective customers; and
WHEREAS,Aqua desires to provide for a connection between the City's water system and
Aqua's Eastwood Manor Water System, located approximately three hundred feet west of the
centerline of Hillside Lane on the south side of Lincoln Road, ("Subject Location") as a backup
supply of potable water to its residents under certain terms and conditions stated herein.
Collectively,the two potable water systems of each Party shall be referred to as "Systems".
Now, therefore, in consideration of the mutual covenants, conditions and Agreements
herein contained, the adequacy and sufficiency of which is acknowledged as sufficient by the
Parties hereto, it is agreed as follows:
1.Term. This Agreement shall commence upon the determination by the City Engineer,
in writing, to the parties hereto, that all of the required construction referenced herein to provide for the
connection between the two Systems has been completed and all required fees due from Aqua to the City
have been paid. This Agreement may be terminated by either Party, for any reason or no reason at
all,by written notice given to the non-terminating Party.
2. Water Service Connection. During the Term of this Agreement, the City will
permit to be installed, at the Subject Location, water service connection plumbing, backflow
prevention device and water meter in a meter vault installed at Aqua's expense,in compliance with
the plans and specifications prepared by Trotter and Associates, Inc. and dated June 13, 2019
Water Service Connection"). The purpose of the Water Service Connection is to allow Aqua to
access City potable water service for Aqua residents within the Eastwood Manor subdivision
pursuant to the terms of this Agreement. Aqua shall reimburse the City for all costs incurred for
labor and materials it provides relating to the construction and maintenance, if any, of the Water
Service Connection, in addition to all attorney fees incurred in connection with preparing this
Agreement. The City does not guaranty specific GPM quantities or system pressures to Aqua. A
representative from the City and Aqua must be present at which time controlling valves for the
Interconnection are opened or closed. This Water Service Connection shall only be utilized by
Aqua in emergency situations where Aqua's System cannot supply sufficient water to its residents
or in the case of maintenance of the system wherein Aqua's System is down and Aqua is unable
to supply sufficient water to its residents. Nothing herein is intended to or should be constructed
to create an obligation of the City to furnish water service to Aqua during or after the term of this
Agreement. Aqua will pay all the costs of constructing and maintaining the Water Service
Connection. An annual backflow test will be conducted by Aqua on the backflow device and
reported, in writing, to the City. The water meter shall be of the manufacturer and specifications
determined by the City. Aqua shall be solely responsible for the components of its water system.
Aqua shall not operate or attempt to operate its well or water treatment equipment while the
temporary water service connection is in place.
3. Indemnification by Aqua. The City shall not be responsible for complying with
any laws or regulations pertaining to the operation of a public water utility, nor will the City be
responsible for Aqua's system or its residents resulting from water pressure increase or decreases,
water quality or quantity issues or any other matters resulting from Aqua's use of the Water Service
Connection. Aqua specifically agrees to save, hold harmless and indemnify the City from any
costs, claims, expenses, or liabilities, including attorney fees and court costs, including System
damages incurred or personal injuries,resulting from or in any way related to the use of the Water
Service Connection.
4. Non-Exclusive Agreement. Nothing in this Agreement shall be construed to
prohibit Aqua or City from entering into any mutual emergency water service contract with any
other person, corporation, firm, utility, municipal corporation or governmental authority, for the
purpose of obtaining additional water for the System.
5.Suspension of Service. The City may temporarily suspend service hereunder at
any time if, in its sole judgment, continuing such service would jeopardize the safety or adequacy
of the water supply to the City's current customers, be damaging to the City's water quality,
quantity or its distribution system, or because of an actual or threatened breach of this Agreement
by Aqua. Notice of such suspension shall be given to Aqua as soon as practicable under the
circumstances.
6. Rates and Payment. Aqua shall pay user fees to the City fees in accordance with
applicable City water usage charges using inside Corporate Limit rates, as provided for in the City
Municipal Code, as amended from time to time. Expect as stated herein, there shall not be any
charges for availability, standby, or meter charges; nor shall there be any base charges or
volumetric charges during any monthly period unless Aqua receives water from the City during
such monthly period. Invoices for service provided hereunder shall be submitted monthly and
shall be due and payable within thirty (30) days from the date of invoice. In the event that Aqua
fails to immediately pay any City invoice for its water usage,the City may immediately discontinue
service and disconnect the Water Service Connection. If Aqua shall fail to make payment thereof
within said thirty (30) days, then it shall pay interest on the unpaid balance of said account at the
rate of twelve (12) percent per annum until paid, plus all attorney fees incurred by the City to
enforce the terms of this Agreement and its ordinances.
7. Technical Provisions.
A. Interconnection Facilities. The Interconnection Facilities are located at
2500 Block of Lincoln Road or T.B.D.
The Interconnection Facilities, including the location at the tap to the City water
system,the valve, backflow device, tapping sleeve and vault shall be owned by the Aqua. Except
as provided herein, Aqua shall maintain the Interconnection Facilities.
2
City shall own and maintain only the City watermain.
Neither Aqua nor City shall allow any cross connection between its distribution
system and any other private water supply system.
B. Meter. The City shall own the meter. The meter shall be read monthly by
the City during times when Aqua is receiving water from the City.
In the event that the meter fails to register, or registers incorrectly, the water
furnished through such meter, the Parties shall agree upon the length of period during which such
meter failed to register or registered incorrectly, and the quantity of water delivered through such
meter during such period, and upon agreement, an appropriate adjustment in usage and any rates
charged based thereon shall be made. For the purpose of the preceding sentence, a meter which
registers within three (3) percent, plus or minus, of the true registration, shall be deemed correct.
The properly authorized officers, agents and representatives of Aqua and City, shall at all times
have free access to the meter or meters and all other facilities herein provided for, for the purpose
of reading the registrations of said water meter.
City shall periodically cause its meter to be inspected and tested. Advance written
notice of such tests shall be given to Aqua one week before such test are to be made, and, at the
option of Aqua, such tests shall be conducted in the presence of Aqua.
Aqua may have additional tests conducted on the meter at a reasonable interval at
its cost and expense.
The Parties may,at their option and own expense, install and operate a check meter
to check the rate and quantity of flow, provided that the measurement of water for the purpose of
this Agreement shall be solely by the Delivery Meter except in the cases hereinabove specifically
provided to the contrary. All such check meters shall be of standard make and shall be subject at
all reasonable times to inspection and examination by any employee or agent of the other Party,
but the reading, calibration and adjustment thereof shall be made only by the installing and
operating Party, except during any period when a check meter may be used for measuring the
amount of water delivered.
C. Water Quality. Potable water delivered under this Agreement shall conform
to the then-current applicable standards established by the Illinois Environmental Protection
Agency and the United States Environmental Protection Agency and to any other water quality
laws,rules or regulations then applicable to potable water.
i. The City shall inform AQUA at least six(6)months(or when such is contemplated
if less than six(6)months)of any planned changes to the treatment or disinfectant
methods of the water supply to be delivered hereunder.
8. Miscellaneous Provisions.
A. This Agreement is not assignable and no rights under this Agreement shall
inure to third parties who may receive benefits under this Agreement or for whom water is
furnished hereunder.
3
B. Notices sent hereunder may be served by hand delivering, e-mail
transmission, or by Fed Ex to the Parry to be notified at the following addresses of the Parties:
Aqua Illinois, Inc. 1000
S. Schuyler Avenue
Kankakee, IL 60901
Attn: President/Regional Manager
Email:
City of McHenry
333 S. Green Street
McHenry, IL 60050
Attn: Administrator
Email:
The Parties hereto shall have the right from time to time and at any time to change their
respective addresses by written notice to the other Party.
C. It is agreed that the exclusive venue for any and all disputes relating to this
Agreement shall be in the 22°d Judicial Circuit Court, McHenry County Illinois. The City shall be
entitled to recover from Aqua all of its attorney fees incurred in the event any lawsuit is filed by
or against Aqua regarding this Agreement.
D. This Agreement may be executed in any number of counterparts, and by
facsimile or electronic scanned signature, each of which shall be deemed to be an original, and all
of such counterparts shall constitute one Agreement.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
by their respective corporate officials, authority therefore having first been provided.
AQUA ILLINOIS, INC.
By
President/Regional Manager Date
City of McHenry
By
Mayor Date
4
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Eastgate Manor - Interconnect to McHenry Water System
Located in Section 25, Township 45 North, Range 8 East
McHenry, McHenry County, Illinois
Aqua Illinois,Inc. Index of Sheets
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City of McHenry Council
Meeting Minutes
11.4.19
1
Minutes
REGULAR CITY COUNCIL MEETING
City Council Chambers, 333 S Green Street
Monday, November 4, 2019
Call to Order:
The City Council of the City of McHenry, Illinois, met in regular session on Monday,
November 4, 2019, at 7:00 p.m. in the McHenry City Council Chambers, 333 S. Green Street,
McHenry, IL.
Roll Call: Mayor Jett called the roll call.
Members present: Alderman Santi, Alderman Glab, Alderman Schaefer, Alderman Mihevc,
Alderman Devine, Alderwoman Miller- absent, Alderwoman Bahne and Mayor Jett. Others
present: Attorney McArdle, Administrator Morefield, Interim Director of Public Works Strange,
Director of Community Development Polerecky, Finance Director Lynch, Director of Parks and
Recreation Hobson, Director of Economic Development Martin, and Chief of Police Birk, and
City Clerk Ramel.
Pledge of Allegiance: Mayor Jett led those present in the Pledge of Allegiance.
Public Comments: None
Consent Agenda: Motion to Approve the Following Consent Agenda Items: (Pulled Separate)
A. Sign variance to Lennar Builders to allow advertising signs to be placed in the City’s
right-of-way for a period of one year; item was pulled separate requested by Alderman
Glab.
Following the motion to approve consent agenda items, Alderwoman Baehne stated that she
believes it is their job as Council members to support the staff and not assault them like was
done at the last Council meeting. She was personally embarrassed and offended, and would
ask Council to seriously consider the way they are conducing ourselves at a meeting,
especially in regards to the way they are treating the staff. She also stated that a violation of
the Open Meetings Act occurred by a Council member by discussing something that was not
listed on the agenda at a special meeting. Attorney McArdle did confirm that unlike a regular
meeting, items cannot be discussed at a special meeting unless they are specifically listed on
the agenda.
Mayor Jett wants all of Council to work together to help McHenry grow moving forward.
Alderman Glab stated that he pulled the Consent Agenda Item A. because of the ordinance to
not put these signs in the right away. He discussed that we could potentially open the door for
City of McHenry Council
Meeting Minutes
11.4.19
2
others to have signs that violate the ordinance. The discussion was brief regarding this Consent
Agenda Item.
A motion was made by Alderwoman Baehne and seconded by Alderman Mihevc to
approve Consent Agenda items as presented. Roll Call: Vote: 5-ayes: Alderman Santi,
Alderman Schaefer, Alderwoman Baehne, Alderman Mihevc, Alderman Devine, Alderwoman
Miller-absent. 1-nay- Alderman Glab, 0-abstained. Motion carried.
Consent Agenda: Motion to Approve the Following Consent Agenda Items: (Pulled Separate)
B. Contract with Dixon Engineering, Inc. for water tower coating inspection services in the
amount of $14,415.00
D. Resolution recognizing the importance of apprenticeships and designating November
11-17, 2019 and National Apprenticeship Week in the City of McHenry;
G. Issuance of Checks in the amount of $1,633,961.31.
A motion was made by Alderman Santi and seconded by Alderman Glab to approve
Consent Agenda items as presented. Roll Call: Vote: 6-ayes: Alderman Santi, Alderman
Glab, Alderman Schaefer, Alderwoman Baehne, Alderman Mihevc, Alderman Devine,
Alderwoman Miller-absent. 0-nayes, 0-abstained. Motion carried.
Consent Agenda: Motion to Approve the Following Consent Agenda Items:
C. Award of bid for the installation of holiday lighting in Veterans Memorial Park to Fox
Valley Lighting for $19,500.00;
Item was pulled because the budget was over by $2,000 by Director of Parks and
Recreation Hobson, needed budget amendment. Make motion subject to the budget
amendment next meeting.
A motion was made by Alderman Santi and seconded by Alderman Schaefer to approve
Consent Agenda items as presented. Roll Call: Vote: 6-ayes: Alderman Santi, Alderman
Glab, Alderman Schaefer, Alderwoman Baehne, Alderman Mihevc, Alderman Devine,
Alderwoman Miller-absent. 0-nayes, 0-abstained. Motion carried.
Consent Agenda: Motion to Approve the Following Consent Agenda Items:
E. October 21, 2019, City Council Meeting Minutes;
F. October 28, 2019, Special City Council Meeting Minutes;
Agenda item E needed to be updated with more specifics on who voted no, also the Agenda
item F needed to be updated with more conversation notes. Both were intended to be updated
and vote reflected this and were questioned by Alderman Schaefer. Note: As of November 6,
2019 all meeting minutes were updated.
A motion was made by Alderman Schaefer and seconded by Alderman Devine to
approve Consent Agenda items as presented. Roll Call: Vote: 6-ayes: Alderman Santi,
Alderman Glab,Alderman Schaefer, Alderwoman Baehne, Alderman Mihevc, Alderman
Devine, Alderwoman Miller-absent. 0-nayes, 0-abstained. Motion carried.
City of McHenry Council
Meeting Minutes
11.4.19
3
Individual Action Item Agenda: None
Discussion Items:
A. Orchard Beach Road
Discussion resumed regarding Orchard Beach Road, documents were gathered regarding this
Discussion Item. Director of Public Works Strange explained the direction that is wanted by the
Township. There were blueprints that were presented regarding the current plats and Orchard
Beach Drive by the McHenry Township Road District Highway Commissioner, James Condon
regarding Orchard Beach Road. He displayed to the The Council the blueprints to help explain
the private drive vs. public road of Orchard Beach. There was also talk about the sanitation
sewers and its service. Alderman Schaefer questioned where it is stated as to who will upkeep
of the road, also touched about pruning of trees etc. Commissioner stated that he would clarify
that and that The Township would upkeep it. Alderman Glab stated that there is a referendum
occurring in the spring and wanted to know how this would effect this. At this point it is hard to
know which way this would go. Right now The Council needs to act as if things are the way it
is today.
Drainage would be improved from the road to the river, per the Commissioner, Alderman Glab
had been questioning, The Township would not have issues to help maintain it. He also
explained how they would reconstruct the road and how to reduce the drainage to help keep
the road more stable. Alderman Schaefer wanted to know where the two storm sewers were
located, one is out of Kennedy Homes, the other is further north beyond the city limits. Those
would be utilized to help take care of any water issues. Discussion continued for some time
regarding this topic. To summarize the Commissioner wants to know if we can come up to an
agreement to make this a better road. He had ended his discussion, and was thankful to The
Council for the time taken to listen.
Mayor Jett asked if The Council is willing to move forward. Alderman Mihevc and Santi were
heisitant, but Mayor Jett asked to move it forward.
B. 2019 Property Tax Levy
Finance Director Lynch presented this topic. She explained that the levy has been flat since
2011. For 2019 $110K would be the increase. Several of the increases such as salaries and
roads repairs would be part of that. Director Lynch asked The Council what direction they would
like to move forward with, what ideas. Alderman Schaefer would like to see the levy stay flat,
feels the residence need to encourage other taxing bodies to hold their levies, the burden
should not be added to the residents. Alderman Glab spoke out about property taxes going up
that he sees more people getting more frustrated and many want to put up for sale signs. He
feels that the people of McHenry are overtaxed, he would like to see it flat again. Much
discussion regarding the city growing as well as supporting the residence was also discussed
during the meeting. Alderman Mihevc did not want the burden of growing our city to go into
property taxes. Alderman Santi also agrees to keep it flat. Much of the Council did agree that
keeping the property tax should stay flat including the Mayor. Mayor Jett also wants to look at
other ways to bring in other revenue for the city. Administrator Morefield talked about identifying
the opportunities to maximize what revenue is already present, he stated that it is being taken
seriously and would like to provide other ideas in the future.
The Council continued the discussion, many leaning to keep the property tax levy flat.
City of McHenry Council
Meeting Minutes
11.4.19
4
Executive Session: none
Staff Reports: none
Mayor’s Report: none
City Council Comments:
Wants everyone to work together to have a balanced community per Alderman Glab.
Alderman Schaefer asked about JESSUP
Alderwoman Baehne, will be resigning, tonight is her last night, Mayor Jett has thanked her
for all that she has done in the community. A public announcement will be made on social
media and the like.
Adjourn:
A motion was made Alderman Santi and seconded by Alderwoman Baehne to adjourn
the meeting at 8:00 p.m. Roll Call: Vote: 6-ayes: Alderman Santi, Alderman Schaefer,
Alderman Glab, Alderwoman Baehne, Alderman Mihevc, Alderman Devine, Alderwoman
Miller-absent. 0-nays, 0-abstained. Motion carried
X
Mayor Wayne Jett
X
City Clerk Trisha Ramel
Vendor Name
Expense Approval Register
McHenry, IL List of Bills Council Meeting 114&19
Payable Number Post Date Description (Item) Account Number Amount
Vendor: AALTO, BRIAN
AALTO, BRIAN
INV0009074
11/18/2019
TRAINING-AALTO
100-22-5420
24.00
Vendor AALTO, BRIAN Total:
24.00
Vendor: ABLIN, ELIZABETH
ABLIN, ELIZABETH
251029
11/18/2019
REFUND
100-41-3636
50.00
Vendor ABLIN, ELIZABETH Total:
50.00
Vendor: ACE HARDWARE, MCHENRY
ACE HARDWARE, MCHENRY
108032 10/25/19
11/18/2019
MTHLYSTMT
100-33-6115
81.68
ACE HARDWARE, MCHENRY
10803210/25/19
11/18/2019
MTHLY STMT
100-44-6110
68.62
ACE HARDWARE, MCHENRY
10803210/25/19
11/18/2019
MTHLYSTMT
100-45-6110
412.49
ACE HARDWARE, MCHENRY
10803210/25/19
11/18/2019
MTHLY STMT
100-47-6110
9.52
ACE HARDWARE, MCHENRY
INV0009075
11/18/2019
MTHLYSTMT
510-31-6110
197,00
ACE HARDWARE, MCHENRY
INV0009075
11/18/2019
MTHLY STMT
510-32-4510
103.49
ACE HARDWARE, MCHENRY
INV0009075
11/18/2019
MTHLY STMT
510-32-6110
310.94
ACE HARDWARE, MCHENRY
INV0009075
11/18/2019
MTHLYSTMT
510-35-6110
262.16
Vendor ACE HARDWARE, MCHENRY Total:
1,445.90
Vendor: BAKER & SON CO, PETER
BAKER & SON CO, PETER
27649
11/18/2019
BNDR, SFC
100-33-6110
51007A7
BAKER & SON CO, PETER
27775
11/18/2019
SFC
100-33-6110
2,784.72
Vendor BAKER & SON CO, PETER Total:
7,792.19
Vendor: BANWART, NATE
BANWART, NATE
INV0009076
11/18/2019
UNIFORM REIMB
100-33-4510
100.85
BANWART, NATE
INV0009076
11/18/2019
UNIFORM REIMB
100-33-4510
83.49
Vendor BANWART, NATE Total:
184.34
Vendor: BARROWS, DEXTER
BARROWS, DEXTER
INV0009077
11/18/2019
MEAL REIMB
100-23-5420
8,00
Vendor BARROWS, DEXTER Total:
8.00
Vendor: BAXTER & WOODMAN
BAXTER & WOODMAN
0209284
11/18/2019
W/WW CAP DEV FEE
STUDY 100-03-5110
21776,87
BAXTER & WOODMAN
209284
11/18/2019
W/WW CAP DEV FEE
STUDY 510-31-5110
11388,44
BAXTER & WOODMAN
209284
11/18/2019
W/WW CAP DEV FEE
STUDY 510-32-5110
1,388.44
Vendor BAXTER & WOODMAN Total:
5,553.75
Vendor: BIRK, ADRIANA
BIRK, ADRIANA
INV0009078
11/18/2019
REIMB PRSUPP
100-22-6210
197.26
Vendor BIRK, ADRIANA Total:
197.26
Vendor: BLUE LINE, THE
BLUE LINE, THE
39384
11/18/2019
RECR LIST
100-21-5110
348.00
Vendor BLUE LINE, THE Total:
348.00
Vendor: CANNABLISS CBD SHOP
CANNABLISS CBD SHOP
19-10-049
11/18/2019
TEMP SIGN REFUND
100-00-3410
30.00
Vendor CANNABLISS CBD SHOP Total:
30.00
Vendor: CITY OF HARVARD
CITY OF HARVARD
INV0009080
11/18/2019
FY 18-19 DISPATCH REFUND 100-22-5110
14,453.37
Vendor CITY OF HARVARD Total:
14,453.37
Vendor: CITY OF WOODSTOCK
CITY OF WOODSTOCK
INV0009079
11/18/2019
FY 18/19 DISPATCH REFUND
100-22-5110
41,265,42
Vendor CITY OF WOODSTOCK Total:
41,265.42
Vendor: CLEAN SWEEP
CLEAN SWEEP
PS298434
11/18/2019
2019 STREET SWEEPING 100-33-5110
121955,00
Vendor CLEAN SWEEP Total:
12,955.00
11/13/2019 3:22:13 PM
Expense Approval Register
Vendor Name Payable Number Post Date
Vendor: CLEARVIEW LANDSCAPE CONSTRUCTION, INC
CLEARVIEW
LANDSCAPE
10195
11/18/2019
CLEARVIEW
LANDSCAPE
10195
11/18/2019
CLEARVIEW
LANDSCAPE
10195A
11/18/2019
CLEARVIEW
LANDSCAPE
10195A
11/18/2019
Vendor: COMED
COMED INV0009081
11/18/2019
COMED INV0009082
11/18/2019
COMED INV0009082
11/18/2019
Vendor: COMPASS MINERALS AMERICA
COMPASS MINERALS AMERICA 521597 11/18/2019
Vendor: CONDUENT HR CONSULTING LLC
CONDUENT HR CONSULTING 2433770 11/18/2019
Vendor: CONSERV FS
CONSERV FS 65085138 11/18/2019
CONSERV FS 65085144 11/18/2019
Vendor: CRUZ, MICHAEL
CRUZ, MICHAEL INV0009083 11/18/2019
Vendor: CVSHEALTH
CVSHEALTH INV0009084 11/18/2019
Vendor: EDER CASELLA & CO
EDER CASELLA & CO 31905 11/18/2019
Vendor: ED'S AUTOMOTIVE/1IM'S MUFFLER SHOP
ED'S AUTOMOTIVE/JIM'S INV0009085
EYSAUTOMOTIVE/JIM'S INV0009086
ED'S AUTOMOTIVE/JIM'S INV0009086
Vendor: FOERSTER, JEFFERY S
FOERSTER, JEFFERY S INV0009087
Vendor: FRITZ, KEREN
FRITZ, KEREN 251069
FRITZ, KEREN 251032
Vendor: GOETTSCHE, NICHOLAS
GOETTSCHE, NICHOLAS INV0009088
Vendor: HAVENS, GRANT
HAVENS, GRANT INV0009104
Vendor: HENDRICKSON, ROGER
HENDRICKSON, ROGER INV0009089
Vendor: HRGREEN
HRGREEN 130017
HRGREEN 130018
Packet: APPKTO1657-114849 AP CKS
Description (Item) Account Number Amount
MOWING 10/14-11/8/19 100-33-5110 1,524.96
MOWING 10/14-11/8/19 100-45-5110 9,194.80
MOWING 510-31-5110 854.40
MOWING 510-32-5110 424.64
Vendor CLEARVIEW LANDSCAPE CONSTRUCTION, INC Total: 11,998.80
UTIL 100-33-5520 58.17
UTIL 510-31-5510 11805,18
UTIL 510-32-5510 2,218.77
Vendor COMED Total: 4,082.12
SALT 270-00-6110 30,254.59
Vendor COMPASS MINERALS AMERICA Total: 30,254.59
SEPT 2019 SVS FEES
600-00-6960
83.25
Vendor
CONDUENT
HR CONSULTING LLC Total:
83.25
SPORTS FIELDSUPP/PERT 100-45-6110 574.50
SPORTS FIELD SUPP/FERT 100-45-6110 182.90
Vendor CONSERV FS Total: 757.40
MEAL REIMB
2017&2018 SALES TAX
100-22-5420
Vendor CRUZ, MICHAEL Total:
100-04-6945
Vendor CVSHEALTH Total
REMAINDER OF 2019 AUDIT 230-00-5110
Vendor EDER CASELLA & CO Total:
11/18/2019 OCT STMT 100-33-5370
11/18/2019 OCT STMT 510-32-5370
11/18/2019 OCT STMT 510-35-5370
Vendor ED'S AUTOMOTIVE/JIM'S MUFFLER SHOP Total:
11/18/2019 PARKING REIMB 100-22-5420
Vendor FOERSTER, JEFFERY S Total:
11/11/2019 PGM CXL 100-41-3636
11/18/2019 PGM CXL 100-41-3636
Vendor FRITZ, KEREN Total:
11/18/2019 UNIFORM REIMB 100-33-4510
Vendor GOETTSCHE, NICHOLAS Total:
11/18/2019 MEAL REIMB 100-23-5420
Vendor HAVENS, GRANTTotal:
11/18/2019 TRAVEL FUEL EXPENSE 100-22-5420
Vendor HENDRICKSON, ROGER Total:
11/18/2019
RET
PERS
- IGNITE OBSERV
740-00-5220
11/18/2019
RET
PERSJESSUP
740-00-5220
8.00
76,933,80
76,933.80
20,145.00
20,145900
180.00
89.00
150.00
419.00
23.00
23.00
142.00
45.00
187.00
177.74
177.74
51.24
51.24
126.01
126.01
5,401.75
1,427.50
11/13/2019 3:22:13 PM
Expense Approval Register
Packet: APPKTO1657-114849
AP CKS
Vendor Name
Payable Number
Post Date
Description (Item)
Account Number
Amount
HRGREEN
130019
11/18/2019
RET PERS 130019
740-00-5220
580.00
Vendor HRGREEN Total:
7,409.25
Vendor: ILLINOIS ENVIRONMENTAL PROTECTION AGENCY
ILLINOIS ENVIRONMENTAL
4
11/18/2019
WW PROJ
510-2308
700,982.54
ILLINOIS ENVIRONMENTAL
4
11/18/2019
WW PROJ
510-32-7605
286,336.04
Vendor ILLINOIS ENVIRONMENTAL PROTECTION AGENCY Total:
987,318.58
Vendor: ILLINOIS MUNICIPAL LEAGUE
ILLINOIS MUNICIPAL LEAGUE
INV0009090
11/18/2019
2020 MSHIP DUES
100-01-5410
2,000.00
Vendor ILLINOIS MUNICIPAL LEAGUE Total:
2/000000
Vendor: LECHNER,TIM
LECHNER,TIM
INV0009091
11/18/2019
UNIFORM REIMB
510-35-4510
84.05
Vendor LECHNER, TIM Total:
84.05
Vendor: LEIBACH, JUSTIN
LEIBACH,JUSTIN
INV0009092
11/18/2019
MEAL REIMB
100-23-5420
8.00
LEIBACH,JUSTIN
INV0009105
11/18/2019
FUEL, MEAL REIMB
100-23-5420
91.59
Vendor LEIBACH, JUSTIN Total:
99.59
Vendor: LEISTEN, RICK
LEISTEN, RICK
INV0009093
11/18/2019
UNIFRRM REIMB
100-33-4510
150.49
Vendor LEISTEN, RICK Total:
150.49
Vendor: LENNAR HOMES
LENNAR HOMES
19-05-147,148
11/18/2019
REFUND ON PERMITS 19-05-
100-03-5110
28.00
Vendor LENNAR HOMES Total:
28.00
Vendor: LEXISNEXIS
LEXISNEXIS
1236684-20191031
11/18/2019
OCTOBER 2019 PHONE SEARCH
100-22-5110
244.50
Vendor LEXISNEXIS Total:
244.50
Vendor: MCHENRY COMMUNITY HIGH SCHOOL DIST 156
MCHENRY COMMUNITY HIGH
INV0009107
11/18/2019
MAY'19-OCT'19 OPER FEES
260-00-6970
77,540.00
Vendor MCHENRY COMMUNITY HIGH SCHOOL DIST 156 Total:
77,540.00
Vendor: MCHENRY COMMUNITY SCHOOL DIST #15
MCHENRY COMMUNITY
INV0009106
11/18/2019
MAY'19-OCT'19 OPER FEES
260-00-6970
105,332.00
Vendor MCHENRY COMMUNITY SCHOOL DIST #15 Total:
105,332.00
Vendor: MCHENRY COUNTY CHIEFS
OF POLICE
MCHENRY COUNTY CHIEFS OF
INV0009094
11/18/2019
NOVLUNCH
100-22-5430
60.00
Vendor MCHENRY COUNTY CHIEFS OF POLICE Total:
60.00
Vendor: MCHENRY PUBLIC LIBRARY
MCHENRY PUBLIC LIBRARY
INV0009108
11/18/2019
MAY'19-OCT'19
260-00-6980
5,933.00
Vendor MCHENRY PUBLIC LIBRARY Total:
5,933.00
Vendor: MCHENRY TOWNSHIP
FIRE PROTECTION DIST
MCHENRY TOWNSHIP FIRE
INV0009109
11/18/2019
MAY'19-OCT'190PERATING
260-00-6990
4,468.00
Vendor MCHENRY TOWNSHIP FIRE PROTECTION DIST Total:
4,468.00
Vendor: MUNICIPAL CLERKS OF
ILLNOIS
MUNICIPAL CLERKS OF ILLNOIS
INV0009095
11/18/2019
M JOHNSON RENEWAL
100-01-5410
75.00
Vendor MUNICIPAL
CLERKS OF ILLNOIS Total:
75.00
Vendor: NAPA AUTO PARTS MPEC
NAPA AUTO PARTS MPEC
137010/31/19
11/18/2019
PARTS
100-01-5370
331.12
NAPA AUTO PARTS MPEC
137010/31/19
11/18/2019
PARTS
100-22-5370
700.92
NAPA AUTO PARTS MPEC
137010/31/19
11/18/2019
PARTS
100-33-5370
2,264.12
NAPA AUTO PARTS MPEC
137010/31/19
11/18/2019
PARTS
100-45-5370
501.20
NAPA AUTO PARTS MPEC
INV0009096
11/18/2019
PARTS
510-31-5370
110.84
NAPA AUTO PARTS MPEC
INV0009096
11/18/2019
PARTS
510-32-5370
988.87
NAPA AUTO PARTS MPEC
INV0009096
11/18/2019
PARTS
510-35-5370
491A3
Vendor
NAPA AUTO PARTS MPEC Total:
5,388.50
Vendor: PRAIRIELAND DISPOSLA
PRAIRIELAND DISPOSLA
9A000023
11/18/2019
OCTOBER REFUSE ST
100-01-6110
61600,00
Vendor PRAIRIELAND DISPOSLA Total:
6,600.00
11/13/2019 3:22:13 PM
Expense Approval Register
Vendor Name Payable Number Post Date
Vendor: ROBINSON ENGINEERING LTD
ROBINSON ENGINEERING LTD 19100148 11/18/2019
Vendor: ROTARY CLUB OF MCHENRY
ROTARY CLUB OF MCHENRY INV0009097 11/18/2019
Vendor: SCARLET ENTERPRISES LLC
SCARLET ENTERPRISES LLC INV0009098 11/18/2019
Vendor: SCHMITT, MATTHEW
SCHMITT, MATTHEW INV0009099 11/18/2019
Vendor: SCHWEDA, SCOTT
SCHWEDA, SCOTT 10474 10/31/19 11/18/2019
SCHWEDA, SCOTT 10474 10/31/19 11/18/2019
SCHWEDA, SCOTT INV0009100 11/18/2019
Vendor: SHAW MEDIA
SHAW MEDIA 10147410/31/19 11/18/2019
SHAW MEDIA 10147410/31/19 11/18/2019
Vendor: SHOEMAKER, DEBRA
SHOEMAKER, DEBRA INV0009101 11/18/2019
Vendor: STANLEY CONSULTANTS
STANLEY CONSULTANTS 0218470 11/18/2019
Vendor: SYNCHRONOUS ENERGY SOLUTIONS, INC
SYNCHRONOUS ENERGY 1 11/18/2019
Vendor: THEODORE POLYGRAPH SERV
THEODORE POLYGRAPH SERV 6830 11/18/2019
Vendor: UMB BANK NA
UMB BANK NA INV0009102 11/18/2019
UMB BANK NA INV0009102 11/18/2019
Vendor: WINNEBAGO LANDFILL CO
WINNEBAGO LANDFILL CO 4950 11/18/2019
Vendor: WOODWARD PRINTING SERVICES
WOODWARD PRINTING 2886031 11/18/2019
Vendor: ZUNKEL, SANDY
ZUNKEL, SANDY INV0009103 11/18/2019
Packet: APPKTO1657-114849 AP CKS
Description (Item) Account Number Amount
ALTANALYSIS MILLSTREAM 510-32-8500 387.00
Vendor ROBINSON ENGINEERING LTD Total: 387.00
DUES 100-01-5410 459.00
Vendor ROTARY CLUB OF MCHENRY Total: 459.00
REF ON OVERPAID PARK TICKET 100-2200 25.00
Vendor SCARLET ENTERPRISES LLC Total: 25.00
ILEAS TRAINING MEAL REIMB 100-22-5420 4.39
Vendor SCHMITT, MATTHEW Total: 4.39
MTHLY ADV 100-04-6110 1,988.00
MTHLY ADV 400-00-5210 596.00
UNIFORM REIMB 100-33-4510 47.80
Vendor SCHWEDA, SCOTTTotal: 2,631.80
OCT ADS 100-01-5330
1,988.88
OCT ADS 400-00-5210
596.00
Vendor SHAW MEDIA Total:
2,584.88
ALT- UNIFORM ALLOW 100-22-4510
35.00
Vendor SHOEMAKER, DEBRA Total:
35.00
WWTP LITIG ASSIST 510-32-5110
2/775616
Vendor STANLEY CONSULTANTS Total:
2,775.16
10/31/19STMTSVS 100-01-5110
4,650.00
Vendor SYNCHRONOUS ENERGY SOLUTIONS, INC Total:
4,650.00
POLYGRAPH - H KRUEGER 100-21-5110
175.00
Vendor THEODORE POLYGRAPH SERV Total:
175.00
ILG0BDSSERIES 2015 300-00-7100
470,000.00
IL GO BIDS SERIES 2015 300-00-7200
56,439.38
Vendor UMB BANK NA Total:
526,439.38
SLDGE 510-32-5580
2,344.92
Vendor WINNEBAGO LANDFILL CO Total:
2/344992
FALL/WINTER 2019 100-01-5330
21913,00
Vendor WOODWARD PRINTING SERVICES Total:
2,913.00
ONLINE COURSE REIMB 100-47-5430
25.00
Vendor ZUNKEL, SANDYTotal:
25.00
Grand Total: 1,977,734.67
11J13/2019 3:22:13 PM
Expense Approval Register
Packet: APPKT01657-114849 AP CKS
Fund Summary
Fund
100- GENERAL FUND
230-AUDIT EXPENSE FUND
260-ANNEXATION FUND
270- MOTOR FUELTAX FUND
300 - DEBT SERVICE-1997A FUND
400 - RECREATION CENTER FUND
510- WATER/SEWER FUND
600 - EMPLOYEE INSURANCE FUND
740 -RETAINED PERSONNEL ESCROW
11/13/2019 3:22: 13 PM
Expense Amount
195,244.89
20,145.00
193,273.00
30,254.59
526,439,38
11192,00
1,003,693.31
83.25
7,409.25
Grand Total: 1,977,734.67
Vendor Name
McHenry, IL
Payable Number
Vendor: 5 STAR SPORTS ACADEMY INC
5 STAR SPORTS ACADEMY INC 1219-761
Vendor: ADAMS ENTERPRISES INC, R A
ADAMS ENTERPRISES INC, RA J004294
ADAMS ENTERPRISES INC, RA 5016876
ADAMS ENTERPRISES INC, RA 5017313
Vendor: ADAMS STEEL SERVICE &SUPPLY, INC
ADAMS STEEL SERVICE & 358684
ADAMS STEEL SERVICE& 358977
ADAMS STEEL SERVICE & 358983
Vendor: ADVANCED TURF SOLUTIONS
ADVANCED TURF SOLUTIONS S0796081.1
ADVANCED TURF SOLUTIONS 5O796081.2
Vendor: ALA ARCHITECTS &PLANNERS, INC
ALA ARCHITECTS & PLANNERS, 11086
ALA ARCHITECTS & PLANNERS, 11166
Vendor: ALPHA BUILDING MAINTENANCE SERVICE INC
ALPHA BUILDING 19733MRC
Vendor: AMERICAN HEATING &COOLING
AMERICAN HEATING & 04042385
Vendor: ARAMARK
ARAMARK 21911860
ARAMARK 21915131
ARAMARK 21922733
Vendor: ASSOCIATED ELECTRICAL CONTRACTORS
ASSOCIATED ELECTRICAL 350070909
Vendor: AT&T
AT&T 363 3
Vendor: AUTO TECH CENTERS INC
AUTO
TECH
CENTERS
INC
298826
AUTO
TECH
CENTERS
INC
299133
AUTO
TECH
CENTERS
INC
299134
AUTO
TECH
CENTERS
INC
299254
AUTO
TECH
CENTERS
INC
299284
AUTO
TECH
CENTERS
INC
299554
Vendor: BERKHEIMER CO INC, G W
BERKHEIMER CO INC, G W 524062
BERKHEIMER CO INC, G W 533810
Expense Approval Register
#2 List of Bills Council Meeting 114&19
Post Date Description (Item) Account Number Amount
11/18/2019
Fall Invoice 2019 -Session 1
100-47-5110
1,634.00
Vendor 5
STAR SPORTS ACADEMY INC Total:
1,634.00
11/18/2019
Vehicle Maintenance
100-45-5370
5,700.00
11/18/2019
plow blades
100-33-5370
1,263.95
11/18/2019
Vehicle Maintenance
100-45-5370
275A0
Vendor
ADAMS ENTERPRISES INC, R A Total:
7,239.35
11/18/2019 230 Pound Nitrogen Tank- 510-32-5375 50.75
11/18/2019 406 100-33-5370 35.00
11/18/2019 405 100-33-5370 39.00
Vendor ADAMS STEEL SERVICE & SUPPLY, INC Total: 124.75
11/18/2019
Landscape
supplies
100-45-6110
1,282.80
11/18/2019
Landscape
supplies
100-45-6110
21192,00
Vendor ADVANCED TURF SOLUTIONS Total:
3,474.80
11/18/2019
Design fees for Vets Park
280-41-8800
1,900.00
11/18/2019
Design fees for Vets Park
280 41-8800
1,900.00
Vendor ALA
ARCHITECTS
& PLANNERS, INC Total:
3,800.00
11/18/2019
Monthly cleaning
400-00-5200
2,080.00
Vendor ALPHA BUILDING
MAINTENANCE SERVICE INC Total:
2,080.00
11/13/2019
Rooftop Heater Maintenance
100-33-5115
540.00
Vendor AMERICAN HEATING &COOLING
Total:
540.00
11/18/2019
Clothing: Gorniak
100-45-4510
94.91
11/18/2019
Clothing -Palmer
510-31-4510
36.22
11/18/2019
uniforms for Paul Clements
510-35-4510
177.96
Vendor ARAMARK
Total:
309.09
11/18/2019
WTP #2 - MCC Transformer
510-31-5110
31200,00
Vendor ASSOCIATED ELECTRICAL CONTRACTORS
Total:
3,200.00
11/18/2019
MONTHLY STATEMENT
620-00-5320
252.32
Vendor AT&T
Total:
252.32
11/18/2019
tire 305
100-22-5370
143.96
11/18/2019
tires 304
100-22-5370
236.96
11/18/2019
diposel of tires
100-33-5370
11.00
11/18/2019
tires 327
100-22-5370
625.52
11/18/2019
tires 127
100-45-5370
268.38
11/18/2019
423
100-33-5370
696.14
Vendor
AUTO TECH CENTERS INC
Total:
1,981.96
11/18/2019
ROOF TOP UNITAIR FILTERS
100-03-6110
307.44
11/18/2019
DAMPER
100-03-6110
6.06
Vendor BERKHEIMER CO INC, G W
Total:
313.50
11/13/2019 3:31:10 PM
Expense Approval Register
Packet: APPKTO1660-1148-19
RE Ci INVOICE
Vendor Name
Payable Number
Post Date
Description (Item)
Account Number
Amount
Vendor: BPH PUMP & EQUIPMENT INC
BPH PUMP & EQUIPMENT INC 4106
11/18/2019
403
100-33-5370
471.00
Vendor BPH PUMP & EQUIPMENT INC Total:
471.00
Vendor: BROWN, BRAD
BROWN, BRAD
CS-19-055
11/18/2019
PAINTING PREP
100-03-5120
900.00
Vendor BROWN, BRAD Total:
900.00
Vendor: BRUCESKI'S MARINE
CONSTRUCTION
BRUCESKI'S MARINE
5323
11/18/2019
IDNR Permit- Bruceskis Marine
100-01-5110
11124.75
Vendor BRUCESKI'S MARINE CONSTRUCTION Total:
1,124.75
Vendor: BURRIS EQUIPMENT
COMPANY
BURRIS EQUIPMENT COMPANY WL13795
11/18/2019
Small Equipment
100-45-6270
171270.00
Vendor BURRIS EQUIPMENT COMPANYTotal:
17,270.00
Vendor: BUSS FORD SALES
BUSS FORD SALES
5035896
11/18/2019
blower 320
100-22-5370
181.75
BUSS FORD SALES
6060448
11/18/2019
wiring repair 312
100-22-5370
354.01
Vendor BUSS FORD SALES Total:
535.76
Vendor: CABAY & COMPANY
INC
CABAY & COMPANY INC
61374
11/18/2019
TOWELS
100-03-5120
58.70
CABAY & COMPANY INC
61775
11/18/2019
HAND SOAP/SANITIZER
100-03-5120
258.88
CABAY & COMPANY INC
61798
11/18/2019
Custodial supplies
400-00-6111
365.16
CABAY & COMPANY INC
61798
11/18/2019
Custodial supplies
400-40-6110
435.18
CABAY & COMPANY INC
61810
11/18/2019
paper supplies shop
100-33-6115
288.16
Vendor CABAY & COMPANY INC Total:
1,406.08
Vendor: CAREY ELECTRIC
CAREY ELECTRIC
35540
11/18/2019
Riverwalk Electrical Repairs
100-45-5110
1,252.00
Vendor CAREY ELECTRIC Total:
11252.00
Vendor: CDW GOVERNMENT
INC
CDW GOVERNMENT INC
VKX8181
11/18/2019
ACROBAT PART
620-00-6110
213.02
Vendor CDW GOVERNMENT INC Total:
213.02
Vendor: COMCAST CABLE
COMCAST CABLE
6201920210
11/18/2019
MONTHLY STATEMENT
620-00-5320
164.85
Vendor COMCAST CABLE Total:
164.85
Vendor: CONSERV FS
CONSERV FS
65085298
11/18/2019
SportsField Supplies
100-45-6110
97.50
Vendor CONSERV FS Total:
97.50
Vendor: CRYSTAL LAKE PARK
DISTRICT
CRYSTAL LAKE PARK DISTRICT
282958
11/18/2019
Trip- Fish Boil
100-46-5110
160.00
Vendor CRYSTAL LAKE PARK DISTRICT Total:
160.00
Vendor: CURRAN CONTRACTING
COMPANY
CURRAN CONTRACTING
17845
11/18/2019
46464 commercial surface.
100-33-6110
136.62
CURRAN CONTRACTING
17845A
11/18/2019
45084 N50 surface. vendor
100-33-6110
93.90
CURRAN CONTRACTING
17845C
11/18/2019
45084 N50 surface. vendor
100-33-6110
619.44
CURRAN CONTRACTING
18745E
11/18/2019
45084 N50 surface. vendor
100-33-6110
416.08
Vendor CURRAN
CONTRACTING COMPANY Total:
11266.04
Vendor: CUTTING EDGE COMMUNICATIONS INC
CUTTING EDGE
190946
11/18/2019
VAULT DOOR
620-00-5110
107.00
Vendor CUTTING EDGE COMMUNICATIONS INC Total:
107.00
Vendor: D & L MIDWEST
D & L MIDWEST
19-01165
11/18/2019
SEIZURE TOW
100-22-5110
200.00
Vendor D & L MIDWEST Total:
200.00
Vendor: DIRECT FITNESS SOLUTIONS
DIRECT FITNESS SOLUTIONS
0549241-IN
11/18/2019
DFS preventative maintenance
400-40-5110
11770,00
Vendor DIRECT
FITNESS SOLUTIONS Total:
1,770.00
11/13/2019 3:31:10 PM
Expense Approval Register
Vendor Name Payable Number Post Date
Vendor: DREISILKER ELECTRIC MOTORS INC
DREISILKER ELECTRIC MOTORS 1137806 11/18/2019
Vendor: DURA WAX COMPANY INC, THE
DURA WAX COMPANY INC, THE 402881 11/18/2019
Vendor: EBY GRAPHICS INC
EBY GRAPHICS INC 5452 11/18/2019
Vendor: ED'S
RENTAL
&SALES
INC
ED'S RENTAL
& SALES
INC
279303-1 11/18/2019
Vendor: FOX VALLEY FIRE &SAFETY
FOX VALLEY FIRE & SAFETY IN306876
FOX VALLEY FIRE & SAFETY IN307309
Vendor: GALLS LLC
GALLS
LLC
GALLS
LLC
GALLS
LLC
GALLS
LLC
GALLS
LLC
GALLS
LLC
GALLS
LLC
GALLS
LLC
GALLS
LLC
GALLS
LLC
GALLS
LLC
GALLS
LLC
GALLS
LLC
GALLS
LLC
GALLS
LLC
GALLS
LLC
Vendor: GALVICIUS, DEREK
GALVICIUS, DEREK
Vendor: GESKE AND SONS INC
GESKE
AND
SONS
INC
GESKE
AND
SONS
INC
GESKE
AND
SONS
INC
GESKE
AND
SONS
INC
GESKE
AND
SONS
INC
GESKE
AND
SONS
INC
GESKE
AND
SONS
INC
GESKE
AND
SONS
INC
GESKE
AND
SONS
INC
GESKE
AND
SONS
INC
GESKE
AND
SONS
INC
13964697
13998899
13999243
14020464
14026849
14027347
14050820
14050987
14051931
14062819
14066287
14074040
14089966
14101578
14118645
14128264
1219-786
52433
52433A
52433B
52464
52464A
52502
52502A
52502E
52502C
52502D
52502E
Vendor: GOVCONNECTION, INC
GOVCONNECTION, INC 52-1837891
Vendor: HAWKINS INC
HAWKINS INC 4602220
Packet: APPKTO1660-114849 RE CT INVOICE
Description (Item) Account Number Amount
HVAC Motor an WTP #2 510 31-6110
Vendor DREISILKER ELECTRIC MOTORS INC Total:
City Wide Toilet Supplies 100-01-6110
Vendor DURA WAX COMPANY INC, THE Total:
VEHICLE GRAPHIC-326 100-22-5370
Vendor EBY GRAPHICS INC Total
propane 100-33-5370
Vendor ED'S RENTAL & SALES INC Total:
11/18/2019 Annual sprinkler inspection 400-00-5110
11/18/2019 Fire Dood annual test 400-00-5110
Vendor FOX VALLEY FIRE & SAFETY Total
11/18/2019
11/18/2019
11/18/2019
11/18/2019
11/18/2019
11/18/2019
11/18/2019
11/18/2019
11/18/2019
11/18/2019
11/18/2019
11/18/2019
11/18/2019
11/18/2019
11/18/2019
11/18/2019
11/18/2019
11/18/2019
11/18/2019
11/18/2019
11/18/2019
11/18/2019
11/18/2019
11/18/2019
11/18/2019
11/18/2019
11/18/2019
11/18/2019
11/18/2019
11/18/2019
K9 UNIFORM ORDER
UNIFORM
ORDER -
VOELKER
UNIFORM
ORDER -
GARRETT
UNIFORM
ORDER -ALLEN
UNIFORM
ORDER -SCIAME
UNIFORM
ORDER -VASQUEZ
UNIFORM
ORDER -STAINES
UNIFORM
ORDER-
MADER
UNIFORM
ORDER-J.DUCAK
UNIFORM
ORDER -
UNIFORM
ORDER -
GARRETT
UNIFORM
ORDER-
RECENDEZ
UNIFORM
ORDER -
UNIFORM
ORDER-
MCKEEN
UNIFORM
ORDER-
RECENDIZ
UNIFORM
ORDER -SHAFER
Event -Dad &Daughter DJ
100-22-6310
100-22-4510
100-23-4510
100-23-4510
100-22-4510
100-23-4510
100-22-6110
100-22-4510
100-22-4510
100-22-6110
100-23-4510
100-23-6110
100-22-6110
100-22-4510
100-23-6110
100-22-4510
Vendor GALLS LLC Total:
100-46-6920
Vendor GALVICIUS, DEREK Total:
HMA
binder N50.
vendor ticket
100-33-6110
HMA
binder N50.
vendor ticket
100-33-6110
HMA
binder N50.
vendor ticket
100-33-6110
HMA
binder N50.
vendor ticket
100-33-6110
HMA
binder N50.
vendor ticket
100-33-6110
HMA
surface N50.
vendor
100-33-6110
HMA
binder N50.
vendor ticket
100-33-6110
HMA
surface N50.
vendor
100-33-6110
HMA
surface N50.
vendor
100-33-6110
HMA
surface N50.
vendor
100-33-6110
HMA
surface N50.
vendor
100-33-6110
Vendor GESKE AND SONS INC Total:
AutoCAD License &Display 620-00-5110
Vendor GOVCONNECTION, INC Total:
Chemical Delivery 510-32-6110
Vendor HAWKINS INC Total:
203.58
203.58
105.60
105.60
475.00
475.00
27.84
27.84
275.00
325.00
45.49
111.82
83.38
99.15
109.20
83.37
89.49
106.93
59.74
42.78
35.53
312.22
320.47
82.30
16.97
26.10
1,624.94
200.00
200.00
476.69
476.15
841.02
649.49
467.59
168.15
704.60
60.77
427.16
480.26
944.00
5,695.88
390.64
390.64
4,583.00
4,583.00
11/13/2019 3:31:10 PM
Expense Approval Register
Vendor Name Payable Number
Vendor: HERITAGE -CRYSTAL CLEAN LLC
HERITAGE -CRYSTAL CLEAN LLC 15963819
HERITAGE -CRYSTAL CLEAN LLC 15963862
Vendor: HYDRAULIC SERVICES AND REPAIRS INC
HYDRAULIC SERVICES AND 342314
Vendor: INFANTE, ALFONSO
INFANTE, ALFONSO 19-20-310
Vendor: INTERSTATE BILLING SERVICE INC
INTERSTATE BILLING SERVICE 3017031920
Vendor: JG UNIFORMS INC
JG UNIFORMS INC 63781
Vendor: KIMBALL MIDWEST
KIMBALLMIDWEST 7509991
KIMBALLMIDWEST 7525523
Vendor: KIWANIS CLUB OF MCHENRY
KIWANIS CLUB OF MCHENRY 1272
Vendor: LAFARGE NORTH AMERICA
LAFARGE NORTH AMERICA 711763159
LAFARGE NORTH AMERICA 711826546
LAFARGE NORTH AMERICA 711826546A
Vendor: LIFEGUARD STORE INC, THE
LIFEGUARD STORE INC, THE INV918954
LIFEGUARD STORE INC, THE INV919673
Vendor: LIfTEK, INC
LIFTEK,INC CS-19-056
Vendor: MAGIC OF GARY KANTOR
MAGIC OF GARY KANTOR 10/22/19
Vendor: MARATHON TOWING
MARATHON TOWING 24214
Vendor: MCCANN INDUSTRIES INC
MCCANN INDUSTRIES INC P02221
MCCANN INDUSTRIES INC P02362
Vendor: MCHENRY HIGH SCHOOL DISTRICT 156
MCHENRY HIGH SCHOOL 1219-736
MCHENRY HIGH SCHOOL 1219-737
Vendor: MCHENRY MARLINS AQUATIC CLUB
MCHENRY MARLINS AQUATIC 311
MCHENRY MARLINS AQUATIC 312
Packet: APPKT01660-11-18-19
RECT INVOICE
Post Date Description
(Item)
Account Number
Amount
11/18/2019 Parts cleaner service 510-32-6110 202.86
11/18/2019 solvent tank shop 100-33-6250 202.86
Vendor HERITAGE -CRYSTAL CLEAN LLC Total: 405.72
11/18/2019 403 100-33-5370 891.24
Vendor HYDRAULIC SERVICES AND REPAIRS INC Total: 891.24
11/18/2019 Recreation Center Landscaping 400-00-5110 1,000.00
Vendor INFANTE, ALFONSO Total: 11000.00
11/18/2019
411 100-33-5370
447.88
Vendor INTERSTATE BILLING SERVICE INC Total:
447.88
11/18/2019
UNIFORM ORDER - ELLIS 100-22-6110
279.84
Vendor JIG UNIFORMS INC Total:
279.84
11/18/2019
stock 100-22-5370
288.29
11/18/2019
stock 510-32-6110
609.41
Vendor KIMBALL MIDWEST Total:
897.70
11/18/2019
Kiwanis- Meetings 100-46-6110
45.00
Vendor KIWANIS CLUB OF MCHENRY Total:
45.00
11/18/2019
Wash Stone UTY- 167583408 510-35-6110
122.88
11/18/2019
Wash Stone- UTY - 167584371 510-35-6110
125.92
11/18/2019
Sand - UTY-167584484 510-35-6110
51.44
Vendor LAFARGE NORTH AMERICA Total:
300.24
11/18/2019
Custom Caps 100-47-6110
287.00
11/18/2019
Silicone Caps 100-47-6110
148.75
Vendor LIFEGUARD STORE INC, THE Total:
435.75
11/18/2019
ELEVATOR REPAIR 100-03-5120
235.00
Vendor LIFTEK, INC Total:
235.00
11/18/2019
Cont- Magic Workshop 100-46-5110
126.00
Vendor MAGIC OF GARY KANTOR Total:
126.00
11/18/2019 TOW MOTORCYCLE REPORT 100-22-5110 255.00
Vendor MARATHON TOWING Total: 255.00
11/18/2019
443
100-33-5370
76.00
11/18/2019
switch
443 100-33-5370
34.00
Vendor MCCANN INDUSTRIES INC Total:
110.00
11/18/2019
Rent -
Dad & Daughter 100-46-5110
564.00
11/18/2019
Rent -
Dance Recital 100-46-5110
837.00
Vendor MCHENRY HIGH SCHOOL DISTRICT 156 Total:
1,401.00
11/18/2019
Suzy Gavars & GatorlSl Meet
100-47-5110
159.00
11/18/2019
MMAC Fee for ECST Meet
100-47-5110
45.00
Vendor MCHENRY
MARLINS AQUATIC CLUB Total:
204.00
11/13/2019 3:31:10 PM
Expense Approval Register
Vendor Name Payable Number Post Date
Vendor: MCHENRY POWER EQUIPMENT INC
MCHENRY POWER EQUIPMENT 348149 11/18/2019
Vendor: MCHENRY SPECIALTIES
MCHENRY SPECIALTIES 2019-579 11/18/2019
Vendor: MCHENRY TOWNSHIP ROAD DISTRICT
MCHENRY TOWNSHIP ROAD 20191023H 11/18/2019
Vendor: MEADE INC
MEADE INC 690194 11/13/2019
MEADE INC 690195 11/18/2019
Vendor: MENARDS -CRYSTAL LAKE
MENARDS-CRYSTAL LAKE 7161
MENARDS - CRYSTAL LAKE 8130
Vendor: MENDEZ LANDSCAPING &BRICK PAVERS INC
MENDEZ LANDSCAPING & 6518
Vendor: METRO DOOR AND DOCK INC
METRO DOOR AND DOCK INC 59405
METRO DOOR AND DOCK INC E13453
Vendor: METROPOLITAN INDUSTRIES
METROPOLITAN INDUSTRIES INV010521
Vendor: MID AMERICAN WATER OF WAUCONDA INC
MID AMERICAN WATER OF 223791W
MID AMERICAN WATER OF 223859W
Vendor: MIDWEST HOSE AND FITTINGS INC
MIDWEST HOSE AND FITTINGS M27086
MIDWEST HOSE AND FITTINGS M27147
MIDWEST HOSE AND FITTINGS M27182
Vendor: MIDWEST METER INC
MIDWEST METER INC 116072-IN
MIDWEST METER INC 116530-IN
Vendor: MINUTEMAN PRESS OF MCH
MINUTEMAN PRESS OF MCH 93280
MINUTEMAN PRESS OF MCH 93400
Vendor: NCL OF WISCONSIN INC
NCLOF WISCONSIN INC 430745
Vendor: NORTH EAST MULTI -REGIONAL TRAINING INC
NORTH EAST MULTI -REGIONAL 263961
Vendor: NORTH SHORE WATER RECLAMATION DISTRICT
NORTH SHORE WATER MISC117392
Vendor: NORTHERN ILLINOIS POLICE ALARM SYSTEM
NORTHERN ILLINOIS POLICE 13115
Packet: APPKT01660-114849 RECT INVOICE
Description (Item) Account Number Amount
blower parts 100-33-5370
Vendor MCHENRY POWER EQUIPMENT INC Total:
Parade Marshal Key to the City 100-01-6110
Vendor MCHENRY SPECIALTIES Total:
road striping 100-33-5110
Vendor MCHENRY TOWNSHIP ROAD DISTRICT Total:
Traffic
Light
-STS -
690194
Traffic
Light
- STS -
690195
100-33-5110
100 33-5110
Vendor MEADE INC Total:
11/18/2019 Electrical Supplies 100-45-6110
11/18/2019 Recreation Center Supplies 400-00-6110
Vendor MENARDS - CRYSTAL LAKE Total:
11/18/2019 CITY HALL MAINTENANCE 100-03-5120
Vendor MENDEZ LANDSCAPING & BRICK PAVERS INC Total:
11/18/2019 Hickory Creek Farm repairs 100-45-5110
11/18/2019 door repair 100-33-5115
Vendor METRO DOOR AND DOCK INC Total:
11/18/2019 Diamond Lift -Pump Impellers 510-32-5380
Vendor METROPOLITAN INDUSTRIES Total:
11/18/2019 4 inchto 6 inch fittings 510-35-6110
11/18/2019 flinch by 6inchreducer 510-35-6110
Vendor MID AMERICAN WATER OF WAUCONDA INC Total:
11/18/2019 448 100-33-5370
11/18/2019 hose ends 100-33-5370
11/18/2019 Inv# M27182 510-31-6110
Vendor MIDWEST HOSE AND FITTINGS INCTotal:
11/18/2019 2" Compound repair parts 510-31-6110
11/18/2019 100-M25 Register, 500 gaskets, 510-31-6110
Vendor MIDWEST METER INC Total
11/18/2019 Stephanie Erb business card 100-22-6210
11/18/2019 APPROVED STICKERS 100-03-5330
Vendor MINUTEMAN PRESS OF MCH Total:
11/18/2019 Lab Supplies 510-32-6110
Vendor NCL OF WISCONSIN INC Total:
11/18/2019 SROSCHOOL- P.PRATHER 100-22-5430
Vendor NORTH EAST MULTI -REGIONAL TRAININGlNCTotal:
11/18/2019 Bio Monitoring Analysis 510-32-6110
Vendor NORTH SHORE WATER RECLAMATION DISTRICT Total:
11/18/2019 UNIFORM ORDER- NIPAS 100-22-4510
42.75
42.75
28.00
28.00
8,224.50
8,224.50
193.54
193.54
387.08
479.94
257.20
737.14
300.00
300.00
1,150.57
923.82
2,074.39
2,574.05
2,574.05
392.00
341.00
733.00
308.92
25.28
212.90
547.10
686.48
7,659.81
8,346.29
48.00
59.70
107.70
746.12
746.12
375.00
375.00
800.00
800.00
5,683.28
11/13/2019 3:31:10 PM
Expense Approval Register
Packet: APPKTO1660-114849
RE CT INVOICE
Vendor Name
Payable Number
Post Date
Description (Item)
Account Number
Amount
NORTHERN ILLINOIS POLICE
13133
11/18/2019
LANGUAGE LINE
100-22-5110
95.00
Vendor NORTHERN ILLINOIS POLICE ALARM SYSTEM Total:
51778.28
Vendor: NORTHWEST ELECTRICAL SUPPLY CO INC
NORTHWEST ELECTRICAL
17439784
11/18/2019
Riverwalk Lightpoles
280-41-8800
10,075.00
NORTHWEST ELECTRICAL
17442292
11/18/2019
Riverwalk Lightpoles
280-41-8800
16,125.00
Vendor NORTHWEST ELECTRICAL
SUPPLY CO INC Total:
26,200.00
Vendor: NORTHWESTERN MEDICINE
OCC HEALTH
NORTHWESTERN MEDICINE
400819
11/18/2019
Drug Screens: Randoms, New
100-05-5110
330.00
NORTHWESTERN MEDICINE
401628
11/18/2019
Drug Screen (New Hire/Post
100-05-5110
100.00
NORTHWESTERN MEDICINE
401656
11/18/2019
Drug Screen New Hire #401656
100-05-5110
35.00
Vendor NORTHWESTERN MEDICINE OCC HEALTH Total:
465.00
Vendor: OTTER SALES & SERVICE INC
OTTER SALES & SERVICE INC
1020610
11/18/2019
pump 449
100-33-5370
91.84
Vendor OTTER SALES & SERVICE INC Total:
91.84
Vendor: PDC LABORATORIES INC
PDC LABORATORIES INC
19392242
11/18/2019
Total Nigtrogen Sample
510-32-6110
60.00
PDC LABORATORIES INC
19392243
11/18/2019
Total Nitrogen Sample
510-32-6110
60.00
PDC LABORATORIES INC
19392244
11/18/2019
Total Nitrogen Sample
510-32-6110
60.00
PDC LABORATORIES INC
19392245
11/18/2019
Oct19 Samples- Inv#19392245
510-31-5110
380.00
Vendor PDC LABORATORIES INC Total:
560.00
Vendor: PETROCHOICE LLC
PETROCHOICE LLC
11116597
11/18/2019
Fuel - UTY-11116597
510-35-6250
469.33
PETROCHOICE LLC
11116608
11/18/2019
FUEL BILL
100-03-6250
73.03
PETROCHOICE LLC
11116609
11/18/2019
Fuel - WW-11116609
510-32-6250
248.19
PETROCHOICE LLC
11116610
11/18/2019
Fuel - WTR-11116610
510-31-6250
163.14
PETROCHOICE LLC
11116612
11/18/2019
Fuel - STS-11116612
100-33-6250
619.73
PETROCHOICE LLC
11121920
11/18/2019
Fuel - UTY-11121920
510-35-6250
265.80
PETROCHOICE LLC
11121930
11/18/2019
FUEL BILL
100-03-6250
52.61
PETROCHOICE LLC
11121931
11/18/2019
Fuel - W W-11121931
510-32-6250
131.20
PETROCHOICE LLC
11121932
11/18/2019
Fuel- WTR-11121932
510-31-6250
157.84
PETROCHOICE LLC
11121934
11/18/2019
Fuel - STS-11121934
100-33-6250
11206.84
PETROCHOICE LLC
11121935
11/18/2019
FUEL11121935
100-22-6250
845.19
PETROCHOICE LLC
11131313
11/18/2019
FUEL BILL
100-03-6250
129.48
PETROCHOICE LLC
11131314
11/18/2019
Fuel - W W-11131314
510-32-6250
487.32
PETROCHOICE LLC
11131315
11/18/2019
Fuel - WTR-11131315
510-31-6250
309.02
Vendor PETROCHOICE LLC Total:
5,158.72
Vendor: PH&S PRODUCTS
PH&SPRODUCTS
11116614
11/18/2019
EVIDENCE SUPPLIES
100-22-6210
258.00
Vendor PH&S PRODUCTS Total:
258.00
Vendor: PLATINUM HEATING &
COOLING INC
PLATINUM HEATING &
8656
11/18/2019
A/C unit Annual Inspection and
510-32-6110
1,200.00
Vendor PLATINUM
HEATING & COOLING INC Total:
11200.00
Vendor: PROSHRED SECURITY
PROSHRED SECURITY
990045846
11/18/2019
MONTHLYSHRED
100-22-5110
53.00
Vendor PROSHRED SECURITY Total:
53.00
Vendor: RED WING BUSINESS ADVANTAGE
RED WING BUSINESS
740-1-37870
11/18/2019
Safety boots Dave Fees
510-32-4510
166A9
RED WING BUSINESS
740-1-38254
11/18/2019
Boots (Steve Wirch)
510-35-4510
134.99
RED WING BUSINESS
740-1-38697
11/18/2019
Boots - Sean Johnson -#38697
510-35-4510
193.59
Vendor RED WING BUSINESS ADVANTAGE Total:
495.07
Vendor: RIVERSIDE BAKE SHOP
RIVERSIDE BAKESHOP
INV0009143
11/18/2019
snow meeting
100-33-6110
66.24
RIVERSIDE BAKE SHOP
INV0009144
11/18/2019
United Way Kick -Off Donuts
100-01-6110
66.24
RIVERSIDE BAKE SHOP
MHCITY 10/31/19
11/18/2019
United Way Kick -Off Donuts
100-01-6110
115.92
Vendor RIVERSIDE BAKE SHOP Total:
248A0
11/13/2019 3:31:10 PM
Expense Approval Register
Packet: APPKT01660-11.18.19
RECT INVOICE
Vendor Name
Payable Number
Post Date
Description (Item)
Account Number
Amount
Vendor: RUSSO POWER EQUIPMENT
RUSSO POWER EQUIPMENT
SPI10029598
11/18/2019
chain saw parts
100-45-5370
39.57
Vendor RUSSO POWER EQUIPMENTTotal:
39.57
Vendor: SCHOPEN PEST SOLUTIONS
INC
SCHOPENPESTSOLUTIONS INC
204723
11/18/2019
PEST CONTROL SPRAY SQUAD
100-22-5110
100.00
Vendor SCHOPEN PEST SOLUTIONS INC Total:
100.00
Vendor: SHAW MEDIA
SHAW MEDIA
101910086163
11/18/2019
Chamber Guide Ad
400-00-5210
950.00
Vendor SHAW MEDIA Total:
950.00
Vendor: SIGN A RAMA GRAYSLAKE
SIGN A RAMA GRAYSLAKE
INV-1539
11/18/2019
Parks Signage
100-45-5110
31085.88
Vendor
SIGN A RAMA GRAYSLAKE Total:
31085.88
Vendor: SIRCHIE FINGER PRINT
LABORATORIES
SIRCHIE FINGER PRINT
422360-IN
11/18/2019
EVIDENCE SUPPLIES
100-22-6210
307.72
Vendor SIRCHIE FINGER PRINT LABORATORIES Total:
307.72
Vendor: STANS LPS MIDWEST
STANS LPS MIDWEST
348892
11/18/2019
SERVICE
620-00-6210
107.94
STANS LPS MIDWEST
348909
11/18/2019
SERVICE AGREEMENT/COMM
620-00-6210
49.04
STANS LPS MIDWEST
348960
11/18/2019
SERVICE AGREEMENT/COMM
620-00-6210
453.51
STANS LPS MIDWEST
348980
11/18/2019
Copier Servies
400-00-6210
735.58
STANS LPS MIDWEST
348990
11/18/2019
SERVICE AGREEMENT/ADMIN
620-00-6210
221.79
STANS LPS MIDWEST
349020
11/18/2019
SERVICE AGREEMENT/PUBLIC
620-00-6210
129.06
Vendor STANS LPS MIDWEST Total:
1,696.92
Vendor: STOCK+ FIELD
STOCK +FIELD
1150210/31/19
11/18/2019
Riverwalk Supplies
100-45-6110
39.90
Vendor STOCK + FIELD Total:
39.90
Vendor: SUMIT CONSTRUCTION CO., INC
SUMIT CONSTRUCTION CO.,
5903
11/18/2019
Concrete restortion
510-35-5110
21000,00
Vendor SUMIT CONSTRUCTION CO., INCTotal:
2,000.00
Vendor: TKB ASSOCIATES, INC
TKB ASSOCIATES, INC
13702
11/18/2019
LASERFICHE LICENSES
620-00-5110
31400.00
Vendor TKB ASSOCIATES, INC Total:
31400.00
Vendor: TONYAN, LUCY
TONYAN, LUCY
1219-789
11/18/2019
Cont - Young Artists
100-46-5110
124.20
Vendor TONYAN, LUCY Total:
124.20
Vendor: TREDROC TIRE/ANTIOCH 002
TREDROCTIRE/ANTIOCH 002
7020030269
11/18/2019
411
100-33-5370
11410.75
Vendor TREDROC TIRE/ANTIOCH 002 Total:
10410.75
Vendor: ULTRA STROBE COMMUNICATIONS
INC
ULTRA STROBE
076530
11/18/2019
WALLCHARGER
100-22-6310
34.95
ULTRA STROBE
076542
11/18/2019
REPLACE LIGHTS 321
100-22-5370
549.85
ULTRA STROBE
076549
11/18/2019
Vehicle Maintenance
100-45-5370
2,807.30
Vendor ULTRA STROBE COMMUNICATIONS INC Total:
3,392.10
Vendor: USA BLUEBOOK
USA BLUEBOOK
045737
11/18/2019
Gloves- Safety equipment
510-32-6110
82.92
USA BLUEBOOK
047127
11/18/2019
41N1 wrench
510-35-6270
80.95
USA BLUEBOOK
048087
11/18/2019
Gloves- Safety equipment
510-32-6110
57.96
USA BLUEBOOK
050142
11/18/2019
3inch Tigertails
510-35-6110
154.85
Vendor USA BLUEBOOK Total:
376.68
Vendor: VERIZON WIRELESS
VERIZON WIRELESS
9841396474
11/18/2019
MONTHLY STATEMENT
620-00-5320
21148.24
Vendor VERIZON WIRELESS Total:
2,148.24
Vendor: WEATHER COMMAND, MURRAYAND TRETTEL INC
WEATHERCOMMAND,
STSSS442
11/18/2019
weather service
100-33-5110
31800.00
Vendor WEATHER COMMAND,
MURRAY AND TRETTEL INC Total:
3,800.00
11/13/2019 3:31:10 PM
Expense Approval Register Packet: APPKT01660-114849 RE CT INVOICE
Vendor Name Payable Number Post Date Description (Item) Account Number Amount
Vendor: WHIMS TOWING INC
WHIMS TOWING INC FMMO2530 11/18/2019 tire change road call 510-32-5370 500,00
Vendor WHIMS TOWING INC Total: 500000
Grand Total: 162,73101
11/13/2019 3;31:10 PM
Expense Approval Register
Packet: APPKT01660-114849 RECT INVOICE
Fund Summary
Fund Expense Amount
100 - GENERAL FUND 86,761.51
280 - DEVELOPER DONATION FUND 30,000.00
400 - RECREATION CENTER FUND 81193,12
510 - WATER/SEWER FUND 30,139,97
620 - INFORMATION TECHNOLOGY FUND 71637*41
Grand Total: 162,73201
AS -NEEDED CHECKS COUNCIL MEETING 11/18/19
100 100-33-4510 CINTAS CORPORATION LOC 355 10/04/2019 32.00
100 100-33-5520 COMED 10/04/2019 537,36
100 10045-5510 COMED 10/04/2019 115053
100 100-01-8200 FGM ARCHITECTS 10/04/2019 4160,00
100 10047-5110 FOX VALLEY PARK DISTRICT 10/04/2019 272.00
100 100-22-5420 HENDRICKSON, ROGER 10/04/2019 210,00
100 10047-5410 ILLINOIS SWIMMING INC 10/04/2019 158.00
100 1 00-01 -51 10 MCHENRY COUNTY COLLECTOR 10/04/2019 17692,94
100 10047-5110 PATRIOT AQUATIC CLUB 10/04/2019 63100
100 100-01-6940 SECRETARY OF STATE 10/04/2019 10,00
290 290-00-6940 MASTER, RICHARD & PEGGY 10/04/2019 1461 *96
290 290-00-6940 RNM LLC 10/04/2019 67448,55
400 400-00-6130 CINTAS 10/04/2019 80.34
510 510-32-5510 COMED 10/04/2019 194,10
510 510-32-5510 COMED 10/04/2019 74,58
620 620-00-5320 AT&T 10/04/2019 249,66
620 620-00-6210 STANS LPS MIDWEST 10/04/2019 217,29
100 100-01-5110 BRUCESKI'S MARINE CONSTRUCTION 10/11/2019 30000,00
100 10046-6110 CINTAS 10/11/2019 536.63
100 100-23-5420 HOLIDAY INN EXPRESS-SPRINGFIELD 10/11/2019 332,22
100 1 00-22-5430 ILETSBEI 10/11/2019 250.00
100 1 00-33-61 10 MCCANN INDUSTRIES INC 10/11/2019 96,84
100 100-22-5430 MCHENRY COUNTY CHIEFS OF POLICE 10/11/2019 60.00
100 100-01-5230 MCHENRY COUNTY COUNCIL OF GOVERI 10/11/2019 115,23
100 10047-5110 MCHENRY MARLINS AQUATIC CLUB 10/11/2019 93.00
100 100-22-5420 MICROTEL INN 10/11/2019 85,43
100 10045-6250 PETROCHOICE LLC 10/11/2019 416.82
100 10045-5110 PLUS ONE TREE SERVICE 10/11/2019 2500,00
100 100-01-5110 RYDIN DECAL 10/11/2019 16.97
100 100-01-6940 SECRETARY OF STATE / DEPT OF POLICE 10/11/2019 101,00
100 100-04-5310 UPS 10/11/2019 10.77
210 210-00-5110 HOBSON, BILL 10/11/2019 450,00
620 620-00-5320 AT&T 10/11/2019 564,36
620 620-00-5110 AT&T 10/11/2019 1018,26
760 760-004990 VILLAGE OF ARLINGTON HEIGHTS 10/11/2019 42903,80
100 1 00-03-61 10 ACE HARDWARE, MCHENRY 10/18/2019 284.37
100 1 00-33-61 10 ACE HARDWARE, MCHENRY 10/18/2019 496,31
100 10045-6110 ACE HARDWARE, MCHENRY 10/18/2019 537,74
100 100-33-5370 BONNELL INDUSTRIES INC 10/18/2019 170,38
100 1 00-03-51 10 CINTAS CORPORATION LOC 355 10/18/2019 221,04
100 100-334510 CINTAS CORPORATION LOC 355 10/18/2019 343.98
100 1 00-33-61 10 CINTAS CORPORATION LOC 355 10/18/2019 298,20
100 10047-5110 FOX VALLEY PARK DISTRICT 10/18/2019 12.00
100 100-22-5430 GLOCK PROFESSIONAL, INC 10/18/2019 250,00
100 1 00-03-61 10 HOME DEPOT CREDIT SERVICES 10/18/2019 205.85
100 100-33-6115 HOME DEPOT CREDIT SERVICES 10/18/2019 134,94
100 10045-6110 HOME DEPOT CREDIT SERVICES 10/18/2019 957.74
100 100-01-6210 STAPLES BUSINESS CREDIT 10/18/2019 147,51
100 1 00-03-621 0 STAPLES BUSINESS CREDIT 10/18/2019 104639
100 100-04-6210 STAPLES BUSINESS CREDIT 10/18/2019 237,22
100 1 00-22-621 0 STAPLES BUSINESS CREDIT 10/18/2019 401,07
100 100-30-6210 STAPLES BUSINESS CREDIT 10/18/2019 23,78
100 100-22-5370 SYNCB/AMAZON 10/18/2019 139,92
100 1 00-22-621 0 SYNCB/AMAZON 10/18/2019 20.26
100 100-22-6310 SYNCB/AMAZON 10/18/2019 219,99
100 100-01-6110 SYNCB/AMAZON 10/18/2019 24,35
100 100-01-6210 SYNCB/AMAZON 10/18/2019 160.64
100 1 00-03-61 10 SYNCB/AMAZON 10/18/2019 153,75
100 100-03-6270 SYNCB/AMAZON 10/18/2019 319,99
100 100-41-6210 SYNCB/AMAZON 10/18/2019 42,96
100 10045-6110 SYNCB/AMAZON 10/18/2019 419,53
100 10046-6110 SYNCB/AMAZON 10/18/2019 123,98
100 10046-6920 SYNCB/AMAZON 10/18/2019 80,15
100 1 00-47-61 10 SYNCB/AMAZON 10/18/2019 465,90
100 1 00-33-61 10 TRAFFIC CONTROL & PROTECTION INC 10/18/2019 765,90
270 270-00-8600 BAXTER & WOODMAN 10/18/2019 6891,70
280 28041-8800 MARTAM CONSTRUCTION INC 10/18/2019 72071,06
400 40040-5110 BANKCARD PROCESSING CENTER 10/18/2019 529,00
400 400-00-6210 STAPLES BUSINESS CREDIT 10/18/2019 84,78
400 400-00-6110 SYNCB/AMAZON 10/18/2019 85,38
400 400-00-6120 SYNCB/AMAZON 10/18/2019 8,99
510 510-31-6110 ACE HARDWARE, MCHENRY 10/18/2019 44,37
510 510-32-6110 ACE HARDWARE, MCHENRY 10/18/2019 416,13
510 510-35-6110 ACE HARDWARE, MCHENRY 10/18/2019 29,47
510 510-324510 CINTAS CORPORATION LOC 355 10/18/2019 1018,88
510 510-32-5375 HOME DEPOT CREDIT SERVICES 10/18/2019 131,07
510 510-32-6110 HOME DEPOT CREDIT SERVICES 10/18/2019 1194010
510 510-35-6110 HOME DEPOT CREDIT SERVICES 10/18/2019 30,81
510 510-32-8500 ROBINSON ENGINEERING LTD 10/18/2019 774.00
510 510-32-6110 USA BLUEBOOK 10/18/2019 253,85
510 510-32-5580 WINNEBAGO LANDFILL CO 10/18/2019 2714*34
510 510-32-5580 WINNEBAGO LANDFILL CO 10/18/2019 2327,88
620 620-00-5320 AT&T 10/18/2019 49.09
620 620-00-5320 AT&T 10/18/2019 246,10
620 620-00-5320 AT&T 10/18/2019 246.63
620 620-00-5320 AT&T 10/18/2019 402,71
620 620-00-5320 AT&T 10/18/2019 250.62
620 620-00-5320 AT&T 10/18/2019 872,27
620 620-00-5320 AT&T 10/18/2019 253,18
620 620-00-5320 AT&T LONG DISTANCE 10/18/2019 1,89
620 620-00-5110 COMCAST CABLE 10/18/2019 140,82
620 620-00-5110 COMCAST CABLE 10/18/2019 164085
620 620-00-5110 COMCAST CABLE 10/18/2019 28,54
620 620-00-5110 COMCAST CABLE 10/18/2019 155076
620 620-00-6210 DOCUMENT IMAGING SERVICES, LLC 10/18/2019 69,00
620 620-00-5110 ILLINOIS AUDIO PRODUCTIONS 10/18/2019 135,00
620 620-00-6210 STANS LPS MIDWEST 10/18/2019 201,96
620 620-00-6210 STANS LPS MIDWEST 10/18/2019 172,39
620 620-00-6210 SYNCB/AMAZON 10/18/2019 6.65
760 760-004990 FOERSTER, JEFFERY S 10/18/2019 1752,66
100 10047-5110 ALLIGATOR AQUATICS 10/25/2019 835.00
100 1 00-33-61 10 BAKER & SON CO, PETER 10/25/2019 345,44
100 100-22-5420 BANKCARD PROCESSING CENTER 10/25/2019 413.36
100 100-22-5430 BANKCARD PROCESSING CENTER 10/25/2019 80,00
100 100-23-5430 BANKCARD PROCESSING CENTER 10/25/2019 84,00
100 10047-5110 BARRINGTON SWIM CLUB 10/25/2019 775,00
100 10047-5110 BARRINGTON SWIM CLUB 10/25/2019 15,00
100 100-33-5520 COMED 10/25/2019 29030
100 100-04-6945 FABRIK INDUSTRIES 10/25/2019 5897,27
100 100-22-5420 FIRST BANKCARD 10/25/2019 9.50
100 100-22-5420 FIRST BANKCARD 10/25/2019 526,66
100 100-22-5430 FIRST BANKCARD 10/25/2019 80,00
100 100-23-5430 FIRST BANKCARD 10/25/2019 84.00
100 10041-5330 FIRST BANKCARD 10/25/2019 75,00
100 10044-6110 FIRST BANKCARD 10/25/2019 813.00
100 10045-5110 FIRST BANKCARD 10/25/2019 2831,51
100 10045-6110 FIRST BANKCARD 10/25/2019 678.30
100 10046-5110 FIRST BANKCARD 10/25/2019 100.00
100 1004&6110 FIRST BANKCARD 10/25/2019 87.52
100 10047-5410 FIRST BANKCARD 10/25/2019 88.00
100 10047-6110 FIRST BANKCARD 10/25/2019 1263,94
100 100-304510 GRUEN, GREG 10/25/2019 199.31
100 1 00-22-51 10 NAVSURFWARCENDIV CRANE 10/25/2019 900.00
100 10045-6110 NORTHWEST ELECTRICAL SUPPLY CO IN 10/25/2019 25.00
100 10045-6110 NORTHWEST ELECTRICAL SUPPLY CO IN 10/25/2019 18.00
100 10045-6110 NORTHWEST ELECTRICAL SUPPLY CO IN 10/25/2019 125.00
100 10045-6110 NORTHWEST ELECTRICAL SUPPLY CO IN 10/25/2019 69.56
100 10044-6110 PEPSI COLA 10/25/2019 6.23
100 100-22-5370 ULTRA STROBE COMMUNICATIONS INC 10/25/2019 360.00
100 100-01-5310 UPS 10/25/2019 6.60
510 510-35-6110 BAKER & SON CO, PETER 10/25/2019 120.02
510 510-31-5510 COMED 10/25/2019 1814,82
510 510-32-5510 COMED 10/25/2019 1706,52
510 510-31-5410 FIRST BANKCARD 10/25/2019 83.00
510 510-35-5430 FIRST BANKCARD 10/25/2019 120.00
510 510-32-6110 HAWKINS INC 10/25/2019 8909420
510 510-31-5110 MARKS TREE SERVICE & SNOW PLOW[N< 10/25/2019 2000,00
510 510-35-6110 RNOW INC 10/25/2019 211.97
510 510-31-5310 UPS 10/25/2019 4.26
620 620-00-5110 SECURITY FANATICS 10/25/2019 4640.00
620 620-00-6210 US BANK EQUIPMENT FINANCE 10/25/2019 311.00
620 620-00-6210 US BANK EQUIPMENT FINANCE 10/25/2019 225.00
620 620-00-5320 VERIZON WIRELESS 10/25/2019 1604,58
TOTAL 313190028
FUND
100
TOTAL
83021.08
FUND
210
TOTAL
450.00
FUND
270
TOTAL
6891670
FUND
280
TOTAL
72071, 06
FUND
290
TOTAL
68910,51
FUND
400
TOTAL
788.49
FUND
510
TOTAL
24173,37
FUND
620
TOTAL
12227061
FUND
760
TOTAL
44656,46
TOTAL
313190,28
Office of Finance &Accounting
Carolyn Lynch, Director
McHenry Municipal Center
333 Green Street
McHenry, Illinois 60050
i,
Phone: (815) 363-2100
MCHenr Y Fax: (815) 363-2119
www.ci.mchenry.il.us
REGULAR AGENDA SUPPLEMENT
DATE: November 18, 2019
TO:Mayor and City Council
FROM: Carolyn Lynch, Finance Director
RE:Consideration of a Resolution establishing the date and time of Monday,
December 16, 2019 at 7:00p.m. for conducting a Public Hearing for establishing
the 2019 City of McHenry Property Tax Levy in the amount of$4,618,786.
ATT: 1. Property Tax Rates and Amounts by Government Entity for— Resident
2. Police Pension Letter for 2020/21 Funding
AGENDA ITEM SUMMARY:
The purpose of this agenda item is to provide the City Council with information needed for the
establishment of the 2019 Property Tax Levy amount and for the adoption of a resolution
identifying levy amount to be requested and establishing Monday, December 16t" at 7:00p.m. as
the date and time for the conducting of the Property Tax Levy Public Hearing and consideration
of the 2019 Property Tax Levy Ordinance.
BACKGROUND/ANALYSIS:
Approximately 76.2% of the FY19/20 budgeted General Fund Revenues are derived from Sales
Tax, Income Tax and Property Tax receipts with the remaining approximate 23.8% coming from
such sources as miscellaneous other intergovernmental taxes, grants,franchise fees, licenses and
permits, fines and forfeitures, and charges for services. For the FY19/20 Budget, Property Tax
receipts comprised 20.5% ($4,942,359) of the total budgeted revenues ($24,060,427).
As the Council is aware, McHenry has implemented a Fund Balance and Reserve Policy and for
the General Fund, this policy recommends that the unrestricted fund balance be maintained at
120 days of estimated operating expenses. Additionally, after the minimum fund balance is met,
that excess fund balance should be assigned for future capital expenses. At the end of
FY2018/19, there were $0 additional funds to be transferred to the Capital Improvements Fund
as excess fund balance. In fact, the fund balance is actually $385,383 below the required 120
minimum, but not below the 90 day balance that requires a plan to be enacted to build up the
fund balance.
As the Council discusses the property tax levy, it should keep the following factors in mind.
First,that the FY19/20 General Fund Capital Improvement Program (CIP) includes about$64
million in projects (including an approximately$50 million local road program) that rely
primarily on General Fund Revenues for implementation. The 5 Year Capital Improvement Plan
is in the early development phase and funding for the program will be based on budgeted
revenues over expenses for FY20/21. The Capital Improvements Fund Balance has been
depleted with projects to be completed in FY19/20.
The second factor is that, that despite the most conservative budgeting efforts, General Fund
operating costs will continue to increase. For example, Police Pension contributions are
estimated to increase $149,318, and overall salary increases are estimated to increase
466,271 for FY20/21, a total of$615,589 which represents a 2.5% increase in FY19/20
Budgeted Expenditures of$24,543,633.
The council did approve the additional 0.25% increase in Home Rule Sales Tax which is in effect
as of July 1, 2019. This revenue is being reserved for capital projects for at least the first year.
The first payment was received and it is approximately $94,500 higher than last July (received in
October). This is a good sign that the City will bring in an additional $1,000,000 each year from
this revenue source to be used on capital projects.
Despite the fact that as a "Home Rule" community the City of McHenry is no longer subject to
the Property Tax Extension Limitation Law,or PTELL-which limits increases to residents' property
taxes by preventing a local government's property tax levy from growing at a faster pace than
the rate of inflation, or 5%, whichever is less - the City has continued to follow PTELL guidelines
for establishing the property tax levy. In fact,for the years 2011-2015 the City chose to maintain
a flat property tax levy request at the amount that was requested in 2010. In 2016, Council chose
to decrease the property tax levy request by 3%. And in 2017-2018 the levy was again maintained
flat from the 2016 reduced amount.
For the 2019 tax year the inflationary rate is 1.9%. The Estimated Rate Setting EAV supplied by
McHenry County is 708,626,214 (an increase of 7.4%over 2018)which includes new construction
of 3,376,264. PTELL calculated with the inflationary rate and the estimated EAV equates to an
Estimated Limited Extension of $4,729,088, or an $110,302 increase over last year. Even if the
City were to adopt this increase, it would not cover the anticipated increases in costs for FY20/21.
Based on the above information, it is important to remind the Council that freezing or reducing
the City's portion of the property tax levy does not mean that home-owners will see a reduction
in their property tax bill. Change in EAV also drives change in the property tax bill. When the
EAV declines the tax rates must go up in order to fully fund the property tax levy because the
same amount of money needs to be collected across the new lower values as requested by all
taxing districts. For 2018, the EAV increased for the third consecutive year so the tax rates for
the City went down slightly lowering the burden on taxpayers. In fact, in 2018 that portion of a
resident's tax bill directed to the City of McHenry was only 6.1% of the total amount. However,
this does not take into consideration actions taken by the other taxing jurisdictions that comprise
the total property tax bill. As an example, in 2015 the City of McHenry kept its portion of the
property tax bill the same as 2014, but the amount of property tax paid by the owner of a
200,000 home actually increased by$43.51 due to levy increases by other taxing bodies.
Annually, prior to the end of the calendar year, the City must provide the amounts required for
the property tax levy so that the funds generated through this revenue mechanism will become
available during the 2020/2021 fiscal year. The levy request must be approved by the City Council
and submitted to the McHenry County Clerk by the last Tuesday in December (the 31St in 2019).
There are public notification timeframes also associated with this process. With this date as a
target, the 2019 Property Tax Resolution indicating the levy amount and Public Hearing will be
presented at the November 18th, 2019 Council meeting and, upon adoption of the resolution,
the Property Tax Levy Public Hearing and consideration/adoption of the levy amount is scheduled
for the December 16, 2019 City Council meeting.
Based on the totality of the information that has been reviewed in this memorandum, and with
input from the discussion at the City Council Meeting at its November 4, 2019, staff is forwarding
a recommendation to maintain the property tax levy at the current amount of$4,618,786. This
represents the ninth (91h) consecutive year that the City of McHenry has foregone an increase in
the amount of property taxes collected. Based on the PTELL estimates provided by McHenry
County, the amount of revenues deferred by this action will be approximately $110,302. Staff
reminds Council that we will continue to carefully plan and monitor revenues and expenditures
during the upcoming year and monitor any other internal or external factors that may have an
impact on the City's overall financial stability.
RECOMMENDATION:
Therefore, if City Council concurs, a motion should be made to adopt the attached Resolution
establishing the date and time of Monday, December 16, 2019 at 7:OOp.m. for conducting a
Public Hearing for establishing the 2019 City of McHenry Property Tax Levy in the amount of
4,618,786 and, upon closing the Public Hearing, the consideration of the 2019 Property Tax
Levy Ordinance in the amount of$4,618,786.
City of McHenry
2018 Property Taxes on $200,000 Home
By Government Unit
2018 Tax Percent
Government Unit Rate Amount of Total
McHenry County 0.831721 554.48 7.26%
McHenry Co. Conservation 0.237971 158.65 2.08%
MCC College District 0.365514 243.68 3.19%
School Dist.#15 5.432629 3621.75 47.40%
School Dist.#156 2.643308 1762.21 23.07%
McHenry Fire District 0.551940 367.96 4.82%
McHenry Library 0.316629 211.09 2.76%
McHenry Twnshp. 0.122123 81.42 1.07%
McHenry Twnshp. Rd. & Br.0.258223 172.15 2.25%
McHenry City 0.699985 466.66
11.460043 $7,640.05 100.00%
City of McHenry- Flat Taxes
2019 Property Taxes on $200,000 Home
By Government Unit
2018 Tax Percent
Government Unit Rate Amount of Total
McHenry County 0.831721 554.48 7.30%
McHenry Co. Conservation 0.237971 158.65 2.09%
MCC College District 0.365514 243.68 3.20%
School Dist.#15 5.432629 3621.75 47.60%
School Dist.#156 2.643308 1762.21 23.16%
McHenry Fire District 0.551940 367.96 4.84%
McHenry Library 0.316629 211.09 2.77%
McHenry Twnshp. 0.122123 81.42 1.07%
McHenry Twnshp. Rd. & Br. 0.258223 172.15 2.26%
McHenry City 0.651800 434.53
11.411858 $7,607.92 100.00%
City Decrease- 1.9%32.13
City of McHenry
333 Green Street
McHenry, Illinois 60050
Phone: (815) 363-2100
Fax: (815) 363-2119
McHenry www.cityofmclienry.org
October 17"'.2019
Mayor Wayne Jett
City of McHenry
333 S.Green Street
McHenry, IL 60050
RE. Funding of the Mellen{,Qr Police Pension Fund in the 1020-21 Budget
Dear Mayor Jett:
Under Section 3-125(a)of the Illinois Pension Code,the City is required to annually levy a tax"... which will produce an
amount which,when added to the deductions from the salaries or wages of police officers,and revenues available from other
sources,will equal a sum sufficient to meet the annual requirements of the police pension fund."40 1LCS 5/3-125(a).
With respect to the 2020-21 budget presently under consideration,the actuary mutually retained by the Fund,Lauterbach&
Amen, LLP, has reported that the City's required contribution for the Police Pension Fund is$2,231,742. We request that
the City levy this amount for the Fund in the 2020-21 budget.
As Trustees of the Police Pension Fund, it is our fiduciary responsibility to seek proper funding at 100%of the actuary's
required contribution, as contemplated by law and our prior agreement with the City to make contributions at the level
required by a mutually-retained actuary. As you know,contributions to the Fund are invested and, over time,the Fund's
investments are expected to achieve a 7.0%rate of return. Underfunding diminishes these earnings and ultimately will lead
to a need for greater contributions by the City. We respectfully request that the City consider adopting a plan for rectifying
the prior underfunding through enhanced contributions.
In summary,the Trustees respectfully request that:
The 2020-21 budget reflect the actuarially required contribution amount of$2.231,742
If you have any questions or concerns regarding the Board's position in these matters,please let us know.
Sincerely,
McHenry City Poli Pension Fund Board of Trustees
JeffeFf S.Foerst ,President
cc: Police Pension Fund Trustees
Members of the City Council
Carolyn Lynch.Finance Department
RESOLUTION R-19-xxx
RESOLUTION DETERMINING THE AMOUNT OF FUNDS TO BE LEVIED FOR THE 2019
TAX YEAR THROUGH REAL ESTATE TAXES FOR THE CITY OF MCHENRY, MCHENRY
COUNTY, ILLINOIS
WHEREAS, the City of McHenry has historically levied taxes for the purpose of
conducting City business for its residents and local businesses; and
WHEREAS, the City of McHenry has worked diligently on behalf of its residents and
local businesses to reduce expenditures while attempting to provide the same high quality of
programs and services; and
WHEREAS, the City of McHenry has, for the past eight (8) years (2011, 2012, 2013,
2014, 2015, 2016, 2017, 2018), forgone an increase or decreased the Property Tax Levy thereby
keeping proposed levy amounts equal or less than the amount approved in 2010; and
WHEREAS, the City of McHenry is proposing no increase to the proposed levy amount
of $4,618,786 to be collected in 2020; and
WHEREAS, a Public Hearing will be held on December 16, 2019, at 7:00 p.m., at which
date and time the public will have an opportunity to comment on said proposed levy; and
WHEREAS, the date of the Public Hearing will be published in the Northwest Herald
newspaper and posted in the McHenry Municipal Center.
NOW, THEREFORE, BE IT RESOLVED by the Mayor and City Council of the City
of McHenry, McHenry County, Illinois go on record establishing the date and time, December
16, 2019, at 7:00 p.m. for the Public Hearing to consider the proposed 2019 Property Tax Levy
in the amount of $4,618,786.
Passed this 18th day of November, 2019.
Ayes Nays Absent Abstain
Alderwoman Baehne _____ _____ _____ _____
Alderman Devine _____ _____ _____ _____
Alderman Glab _____ _____ _____ _____
Alderman Mihevc _____ _____ _____ _____
Alderman Miller _____ _____ _____ _____
Alderman Santi _____ _____ _____ _____
Alderman Schaefer _____ _____ _____ _____
______________________ ________________________
Wayne Jett, Mayor Trisha Ramel, City Clerk
Office of Finance &Accounting
el Carolyn Lynch, Director
A McHenry Municipal Center
333 Green Street
McHenry, Illinois 60050
y y
Phone: (815) 363-2100
Mc j e Ia Fax: (815) 363-2119
www.ci.mchenry.il.us
PRESENTATION/DISCUSSION
DATE: November 18, 2019
TO: Mayor and City Council
FROM: Carolyn Lynch, Finance Director
RE: FY18/19 Audit
ATTACHMENTS: FY18/19 SAS Letter
FY18/19 Audit Report
Attached is the Draft Annual Financial Report for the year ending April 30, 2019 that was
completed by the firm of Eder, Casella, and Company. The draft document was received by staff
and the audit document includes important information about the City's results for the 2018/19
fiscal year and current financial condition.
There area 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 61-62 of the
audit includes the year end results and the total fund balance for the General Fund. The total
fund balance is $7,254,970, which reflects a transfer to the Capital Improvements Fund of$0 as
excess Fund Balance because the required General Fund Balance is$7,640,353 (which is$385,383
higher than the current balance) 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 Capital Improvements Fund Balance is $580,128. The budget for
fiscal year 2019-20 includes capital improvement projects to use up all of the excess balance in
this fund.
Second, the Statement of Revenues, Expenses and Changes in Net Position — Proprietary Funds
pg. 19) show the annual operating income and expenses for the Water and Sewer Fund. The
Water and Sewer Fund has an operating income of$1,852,619. 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. Finally, this year's report once again
includes additional required information per GASB 75, Accounting and Financial Reporting for
Postemployment Benefits Other Than Pensions, and GASB 85, Omnibus 2017 and GASB 89,
Accounting for Interest Cost Incurred Before the End of a Construction Period. A representative
from Eder, Casella and Company is in attendance to present a summary of the audit, and answer
any questions Council may have.
815.344.1300 mchenry
eC CO,
841.311.3366 barrington
J 847.336.6455 gurnee
www.edercosello.com
October 21, 2019
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)for the year
ended April 30, 2019. Professional standards require that we provide you with information about our
responsibilities under generally accepted auditing standards (and, if applicable, Government Auditing
Standards), as well as certain information related to the planned scope and timing of our audit. We
have communicated such information in our letter to you dated July 8, 2019. Professional standards
also require that we communicate to you the following information related to our audit.D
Significant Audit Matters
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. The (D
significant accounting policies used by City of McHenry are described in Note 1 to the financial
statements. During fiscal year 2019, the City implemented GASB Statement No. 75, Accounting and
Financial Reporting for Postemployment Benefits Other Than Pensions and GASB Statement No. 85,
Omnibus 2017 and GASB Statement No. 89, Accounting for Interest Cost Incurred Before the End of
a Construction Period. The application of existing policies was not changed during fiscal year 2019.
We noted no transactions entered into by the City during the year for which there is a lack of
authoritative guidance or consensus. All significant transactions have been recognized in the
financial statements in the proper period.
Accounting estimates are an integral part of the financial statements prepared by management and V
are based on management's 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 significantly from those expected. We evaluated the key factors and assumptions
used to develop the estimates in determining that they are reasonable in relation to the financial
statements taken as a whole. The most sensitive estimates affecting the financial statements were:
Management's estimate of depreciation expense is based on estimated useful lives of the
capital assets held by the District.
Management's estimates regarding pension and OPEB liabilities were based on various
actuarial assumptions regarding projected salaries, market trends, and expected mortality.
Management's estimates regarding allowances on receivables were based on historical
collection rates.
The financial statement disclosures are neutral, consistent, and clear.
Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing
our audit.
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during
the audit, other than those that are clearly trivial, and communicate them to the appropriate level of
management. The attached adjustments, detected as a result of audit procedures, were corrected
by management.
Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting, reporting, or
auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial
statements or the auditor's report. We are pleased to report that no such disagreements arose during
the course of our audit.
Management Representations
We have requested certain representations from management that are included in the management
representation letter, a copy of which is attached.
Management Consultations with Other Independent 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. To our knowledge, there were no such consultations with other accountants.
Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and
auditing standards, with management each year prior to retention as the City's auditors. However,
these discussions occurred in the normal course of our professional relationship and our responses
were not a condition to our retention.
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 which accompany the financial statements
but are not RSI. With respect to the supplemental information 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 information 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
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Client: City of McHenry F
Engagement: City of McHenry
Period Ending: 413012019
Workpaper: General Fund AJEs Report rr
Account Description Debit Credit
3
Adjusting Journal Entries JE#1
PBC-Accrue 3rd and 4th quarter Dispatch Revenue Share Payment of PTFPD
per Carolyn
X23-5110 Contractual Services 37,202.00
210 Accounts Payable 37,202.00
Total 37,202.00 37,202.00
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Adjusting Journal Entries JE#2
PBC-Transfer from general fund parks to the recreation center fund for the
parks payroll expenses
X41-9902 Transfer-Recreation Center Fund 81,954.00 w
1990 Cash in Pool 81,954.00
Total 81,954.00 81,954.00
Adjusting Journal Entries JE#3
PBC-Clean up intertund balance accounts.Wrong account used for transfer
for Lisafeld's L150 insurance payments f
1990 Cash in Pool 18,153.00
1552 Due From Water Sewer Fund 18,153.00
Total 18,153.00 18,153.00
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Adjusting Journal Entries JE#4
Reclass Radicom prior year prepaid to expense
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X22-5110 Contractual Services 20,683.00
130 Prepaid Expenses 20,683.00
Total 20,683.00 20,683.00
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Adjusting Journal Entries JE#5
PBC-Incorrect amount was entered for police pension property tax receipts for
10/19/18 i
X22-4430 Employer Contributions-PPF 200.00
R3051.22 Property Tax Coll-Police Pension 200.00
Total 200.00 200.00 I
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Adjusting Journal Entries JE#6
Reclass reimbursement from McHenry County ETSB
R3180 Grants 192,227.00
R3882.22 Reimb-Misc 192,227.00
Total 192,227.00 192,227.00
I have reviewed and agree with the adjustments above:
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8/13/2019
4:57 PM
Client: City of McHenry-City of McHenry
Engagement:City of McHenry
Period Ending: 413012019
Trial Balance: 200-Tourism Fund
Workpaper: 200-Tourism Fund AJE's Report
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Account Description W/P Ref Debit Credit
Adjusting Journal Entries JE#1 i
Remove duplicate Visit McHenry County Payment from
Accounts Payable.
210 Accounts Payable 12,000.00
5110 Contractual Services 12,000.00
Total 12,000.00 12,000.00
I have reviewed and agree with the adjustment(s)above:
Client Signatur
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8/13/2019
5:00 PM
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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 Debit Credit
Adjusting Journal Entries JE#1
Reclass receivable from State for Intercepted Payments to be refunded-Bike Path
1180 Due From Other Gov't Units 2,702.00
199 Cash in Pool 2,702.00
Total 2,702.00 2,702.00
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I have reviewed and agree with the adjustment(s)above:
Client Signature
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Client: City of McHenry-City of McHenry
Engagement:City of McHenry
Period Ending: 413012019
Trial Balance: 440-Capital Improvements Fund
Workpaper: 440-Capital Improvements AJES I
Account Description W/P Ref Debit Credit a
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Adjusting Journal Entries JE#1
Reclass receivable from State to Water Sewer for Intercepted Payments to be
refunded r
237 Due to Water Sewer Fund 97,714.00
3886 Reimb-Misc-State 97,714.00
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118 Due From Other Gov't Units 97,714.00 is
5110 Contractual Services 97,714.00
Total 195,428.00 195,428.00
Adjusting Journal Entries JE#2
Reclass intercepted funds from State for Bike Path
199 Cash in Pool 2,702.00
3886 Reimb-Misc-State 2,702.00
118 Due From Other Gov't Units 2,702.00
5110 Contractual Services 2,702.00
Total 5,404.00 6,404.00
I have reviewed and agree with the justments above:
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Clien ignature
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5:04 PM
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Client: City of McHenry-City of McHenry
Engagement: City of McHenry
Period Ending: 413012019
Trial Balance: 510-WatenSewer Fund
Workpaper: 610-Water Sewer Adjusting Joumal Entries Report
Account Description WiP Ref Debit Credit
Adjusting Journal Entries JE#1
PBC-Record other half of Interrund transaction-Record September IPBC Insurance
Payment-Health,Dental,Life Insurance
X31-4330 US Life Insurance 19.00
X32-4330 US Life Insurance 30.00
X35-4330 US Life Insurance 27.00
235 Due to General Fund 76.00 w
Total 76.00 76.00
Adjusting Journal Entries JE#2
PBC-Record other half of interfund transaction.Local 150 insurance premiums changed
effective 5/1/19-correct amount charged to departments
X31-4310 Insurance Premiums-HeafthfVision 796.00
X32-4310 Insurance Premiums-HeafthMston 943.00
X35-4310 Insurance Premiums-Health 1,233.00
235 Due to General Fund 2,972.00
Total 2,972.00 2,972.00
Adjusting Journal Entries JE#3
PBC-Clean up interfund balance accounts.Wrong account used for transfer.
d
1551 Due from General Fund 14,988.00
1995 Claim on 995 14,988.00
Total 14,988.00 14,988.00
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Adjusting Journal Entries JE#4
Reclass receivable from State for Intercepted Funds for]EPA loan g
118 Due From Other Gov't Units 97,714.00
1550 Due From Other Funds 97,714.00
Total 97,714.00 97,714.00
Adjusting Journal Entries JE#5
Accrue interest on WWTP IEPA loan
X32-7600 Loan Interest 230,053.00
232 Accrued Interest Payable 230,053.00
Total 230,053.00 230,063.00
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Adjusting Journal Entries JE#6 f
Record construction period interest on the WWTP IEPA loan via GASS Stmt 89 a
X32-7600 Loan interest 531,550.00
2308 WWTP Loan Payable 531,550.00
Total 531,550.00 531,550.00
Adjusting Journal Entries JE#7 1,
Adjust IMRF liability for actuarial valuation IQ
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226 IMRF Deferred Outflows-Actuarial Evaluation 929,974.00 f
2448 IMRF Deferred Inflows of Resources 168.165.00
X31-4420 IMRF 3,430.00
X32-4420 IMRF 4,888.00
X35-4420 Employer Contribution-IMRF 4,322.00
225 IMRF Net Pension Liability 1,103,647.00
227 IMRF Deferred Outflows-Contributions after Measurement 7,232.00
Total 1,110,779.00 1,110,779.00
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8/13/2019
5:04 PM
Client: City of McHenry-City of McHenry
Engagement: City of McHenry
Period Ending: 413012019
Trial Balance: 510-WaterlSewer Fund
Workpaper: 510-Water Sewer Adjusting Journal Entries Report
Account Description W/P Ref Debit Credit
Adjusting Journal Entries JE#8
Record Net OPEB Liability t
228 Deferred Outflows-OPEB 33,846.00
241 Net OPEB Liability 20,552.00
250 Fund Balance 280,325.00
X99-9200 OPEB Expense 9,078.00 R
229 Deferred Infows-OPEB 55,480.00
241 Net OPEB Liability 280,325.00
X99-9300 OPEB Contributions 7,996.00
Total 343,801.00 343,801.00
Adjusting Journal Entries JE#9
Adjust current portion for IEPA loan s
249 Less Current Portion-Long Term Debt 1,395,506.00
247 Current Portion 1,395,506.00
Total 1,395,506.00 1,395,506.00
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I have reviewed and agree with the adjustment(s)above:
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8/13/2019
5:05 PM
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Client: City of McHenry-City of McHenry
Engagement: City of McHenry
Period Ending: 413012019
Trial Balance: 550-Capital Development Fund
Workpaper: 550-Capital Development AJE's Report
Account Description Debit Credit
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Adjusting Journal Entries JE#1
PBC-Clean up interfund balance accounts.Wrong account used for transfer.
1995 Claim on 995 14,988.00
1551 Due from General Fund 14,988.00
Total 14,988.00 14,988.00
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I have reviewed and agree with the adjustment(s)above:
Client Signature
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8/13/2019
5:06 PM
Client: City of McHenry-City of McHenry
Engagement: City of McHenry i
Period Ending: 413012019 s
Trial Balance: 600-Employee Insurance Fund
Workpaper: 600-Employee Insurance Fund AJE's Report
Account Description Debit Credit
Adjusting Journal Entries JE#1
PBC-Clean up interfund balance accounts.Wrong account used for transfer
for Lisafeld's L150 insurance payments
1552 Due From Water Sewer 18,153.00
199 Cash in Pool 18,153.00
Total 18,153.00 18,153.00
Adjusting Journal Entries JE#2
PBC-Correct transfers for insurance payments
4310 Insurance Premiums-Health 2,679.00
5245 Health HRA Reimbursement 1,125.00
3831 Employees Contributions 57.00
3975 General Fund Transfer 2,391.00
3978 Water/Sewer Fund Transfer 1,356.00
4310 Insurance Premiums-Health
Total 3,804.00 3,804.00
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I have reviewed and agree with the adjustment(s)above:
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Date
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8/13/2019
5:07 PM
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Client: Cifyof McHenry-City of Mc Henry
Engagement: Cltyof McHenry
Period Ending: 4/30/2019
Trial Balance: 620.Information Technology Fund
Warkpaper. 620-Information Technology Fund AJE Repoli
Account Description WIP Ref Debit Credit
Adjusting Journal Entries JE#1
Adjust IMRF liability to actuarial valuation
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231 IMRF Deferred Outflows-Actuarial Report 77.531.00
240 IMRF Deferred Inflows of Resources 11,232.00
4420 IMRF Expense 816.00
230 IMRF Net Pension Liability 89,207.00
232 IMRF Deferred Outflows-Contributions made after Meaurement Date 372.00
Total 89,579.00 89,579.00
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Adjusting Journal Entries JE#2
Record OPEB Liabilry
241 Net OPEB Liability 1,889.01)
242 Deferred Outflows-OPED 2.781.00
250 Fund Balance 23,031.00
9930 OPEB Expense 746.00
241 Nel OPEB Liability 23,031.00
243 Delemed Inflows-OPES 4,550.00
9940 OPEB Contributions 658.00
Total 28,247.00 28.247.00 4[
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I have reviepdd agree with the adjustments)
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8/13/2019
5:09 PM
Client: City of McHenry-City of McHenry
Engagement: City of McHenry
Period Ending: 413012019
Trial Balance: 760-Police Pension Fund
Workpaper 760-Police Pension AJE's Report
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Account Description Debit Credit
Adjusting Journal Entries JE#1 011-
Record non-duty disability pension payable at year end
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4940 Non-duty Disability Payments 28,782.00
215 Pensions and Benefits Due and Unpaid 28,782.00
Total 28,782.00 28,782.00
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1 have reviewed and agree with the adjustment(s)above:
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9/24/2019
9:25 AM
Client: City of McHenry-Cityo/McHenry
Engagement: CityofMcHenry
Period Ending: 413012019
Trial Balance: 400-Recreation Center Fund
Workpaper:400-Recreation Center Adjusting Journal Entries Report
Account Description WIP Ref Debit Credit
Adjusting Journal Entries JE#1
PBC- transfer from general fund parks to the recreation center fund for the parks
payroll expenses
1990 Cash in Pool 81,954.00
3975 Transfer General Fund 81,954.00
Total 1,954.00 81,954.00
Adjusting Journal Entries JE#2
Record rec center receivables per Carolyn
128 Accounts Receivable-Unbilled 39,924.00
3645 Annual Membership 39,924.00
Total 39,924.00 39,924.00
1 have reviewed and agree with the adjustment(s)above:
Irent Silrnetun,
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City of McHenry j
333 S. Green Street
McHenry, IL 60050
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Eder. Casella&Co.
5400 West Elm Street
Suite 203 i
McHenry, Illinois 60050
This representation letter is provided in connection with your audit of the financial statements of City
of McHenry (City), which comprise the respective financial position of the governmental activities,
the business-type activities, each major fund, and the aggregate remaining fund information as of
April 30, 2019, and the respective changes in financial position and,where applicable,cash flows for
the year then ended, and the related notes to the financial statements,for the purpose of expressing
opinions as to whether the financial statements are presented fairly, in all material respects, in
accordance with accounting principles generally accepted in the United States of America (U.S.
GAAP).
Certain representations in this letter are described as being limited to matters that are material. Items
are considered material,regardless of size,if they involve an omission or misstatement of accounting
information that, in light of surrounding circumstances, makes it probable that the judgment of a t
reasonable person relying on the information would be changed or influenced by the omission or
misstatement. An omission or misstatement that is monetarily small in amount could be considered
material as a result of qualitative factors.
We confirm,to the best of our knowledge and belief,the following representations made to you during
your audit.
G!
Financial Statements
1. We have fulfilled our responsibilities, as set out in the terms of the audit engagement letter
dated July 8, 2019, including our responsibility for the preparation and fair presentation of the y
financial statements in accordance with U.S. GAAP and for preparation of the supplementary
information in accordance with the applicable criteria.
2. The financial statements referred to above are fairly presented in conformity with U.S. GAAP
and include all properly classified funds and other financial information of the primary a
government and all component units required by generally accepted accounting principles to
be included in the financial reporting entity.
3. We acknowledge our responsibility for 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.
4. We acknowledge our responsibility for the design,implementation, and maintenance of internal
control to prevent and detect fraud.
5. Significant assumptions we used in making accounting estimates, including those measured
at fair value, are reasonable.
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6. Related party relationships and transactions, including revenues, expenditures/expenses,
loans, transfers, leasing arrangements, and guarantees, and amounts receivable from or
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payable to related parties have been appropriately accounted for and disclosed in accordance
with U.S. GAAP.
7. Adjustments or disclosures have been made for all events, including instances of j
noncompliance, subsequent to the date of the financial statements that would require
adjustment to or disclosure in the financial statements.
8. We are in agreement with the adjusting journal entries you have proposed, if any, and they will
be posted.
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9. The effects of all known actual or possible litigation, claims, and assessments have been x
accounted for and disclosed in accordance with U.S. GAAP.
10. Guarantees, whether written or oral, under which the City is contingently liable, if any, have
been properly recorded or disclosed.
Information Provided
11. We have provided you with:
a. Access to all information, of which we are aware,that is relevant to the preparation and fair
presentation of the financial statements, such as records, documentation, and other g
matters.
b. Additional information that you have requested from us for the purpose of the audit.
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c. Unrestricted access to persons within the City from whom you determined it necessary to
obtain audit evidence.
d. Minutes of the meetings of the Board of Trustees or summaries of actions of recent I
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meetings as listed below:
i. 5/7/2018 xviii. 12/3/2018
ii. 5/21/2018 xix. 12/17/2018
iii. 6/4/2018 xx. 1/21/2019
iv. 6/18/2018 xxi. 2/4/2019
v. 7/10/2018 xxii. 2/28/2019
vi. 7/23/2018 xxiii. 3/4/2019
vii. 7/31/2018—Special Meeting xxiv. 3/18/2019 i
viii. 8/6/2018 xxv. 4/1/2019
ix. 8120/2018 xxvi. 4/15/2019
x. 8/23/2018—Special Meeting xxvii. 4/29/2019
A. 9/4/2018—Special Meeting xxviii. 5/6/2019
xii. 9/10/2018 xxix. 5/20/2019
xiii. 9/24/2018 xxx. 6/3/2019 (Agenda Only)
xiv. 10/1/2018 xxxi. 6/17/2019
xv. 10/15/2018 xxxii. 7/15/2019(Agenda Only)
xvi. 11/12/2018 xxxiii. 8/5/2019(Agenda Only)
xvii. 11/26/2018
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12. All material transactions have been recorded in the accounting records and are reflected in the
financial statements.
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13. We have disclosed to you the results of our assessment of the risk that the financial statements
may be materially misstated as a result of fraud.
14. We have no knowledge of any fraud or suspected fraud that affects the City and involves: j
a. Management,
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b. Employees who have significant roles in internal control, or
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c. Others where the fraud could have a material effect on the financial statements.
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15. We have no knowledge of any allegations of fraud or suspected fraud affecting the City's
financial statements communicated by employees,former employees, regulators, or others.
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16. We have no knowledge of instances of noncompliance or suspected noncompliance with
provisions of laws, regulations, contracts,or grant agreements,or abuse,whose effects should
be considered when preparing financial statements. I'
17. We have disclosed to you all known actual or possible litigation, claims, and assessments I
whose effects should be considered when preparing the financial statements.C
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18. We have disclosed to you the identity of the City's related parties and all the related party z
relationships and transactions of which we are aware.g
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Government-specific
19. There have been no communications from regulatory agencies concerning noncompliance
with, or deficiencies in, financial reporting practices.
20. We have identified to you any previous audits, attestation engagements, and other studies
related to the audit objectives and whether related recommendations have been implemented.
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21. The City has no plans or intentions that may materially affect the carrying value or classification
of assets, deferred outflows of resources, liabilities, deferred inflows of resources, and fund
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balance or net position.F
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22. We are responsible for compliance with the laws, regulations, and provisions of contracts and
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grant agreements applicable to us, including tax or debt limits and debt contracts, and legal
and contractual provisions for reporting specific activities in separate funds, i
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23. We have identified and disclosed to you all instances that have occurred or are likely to have
occurred, of fraud and noncompliance with provisions of laws and regulations that we believe
have a material effect on the financial statements or other financial data significant to the audit
objectives, and any other instances that warrant the attention of those charged with
governance.
24. We have identified and disclosed to you all instances,which have occurred or are likely to have
occurred, of noncompliance with provisions of contracts and grant agreements that we believe
have a material effect on the determination of financial statement amounts or other financial
data significant to the audit objectives.
25. We have identified and disclosed to you all instances that have occurred or are likely to have
occurred, of abuse that could be quantitatively or qualitatively material to the financial
statements or other financial data significant to the audit objectives.
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26. There are no violations or possible violations of budget ordinances, laws and regulations
including those pertaining to adopting, approving, and amending budgets), provisions of
contracts and grant agreements, tax or debt limits, and any related debt covenants whose X
effects should be considered for disclosure in the financial statements, or as a basis for 4
recording a loss contingency, or for reporting on noncompliance.
27. The City has satisfactory title to all owned assets, and there are no liens or encumbrances on
such assets nor has any asset been pledged as collateral.n
28. The City has complied with all aspects of contractual agreements that would have a material
effect on the financial statements in the event of noncompliance.
29. The financial statements include all component units as well as joint ventures with an equityP1qtY
interest, and properly disclose all other joint ventures and other related organizations.
30. The financial statements properly classify all funds and activities in accordance with GASB
Statement No. 34.
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31. All funds that meet the quantitative criteria in GASBS Nos.34 and 37 for presentation as major
are identified and presented as such and all other funds that are presented as major are
particularly important to financial statement users. F
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32. Components of net position (net investment in capital assets; restricted; and unrestricted)and
classifications of fund balance (nonspendable, restricted, committed, assigned, and
unassigned)are properly classified and, if applicable, approved.
33. Investments, derivative instruments, and land and other real estate held by endowments are
properly valued.
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34. Provisions for uncollectible receivables have been properly identified and recorded.
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35. Expenses have been appropriately classified in or allocated to functions and programs in the
Statement of Activities, and allocations have been made on a reasonable basis.
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36. Revenues are appropriately classified in the Statement of Activities within program revenues,
general revenues, contributions to term or permanent endowments, or contributions to
permanent fund principal.
37. Interfund, internal,and intra-entity activity and balances have been appropriately classified and
reported.
38. Deposits and investment securities and derivative instruments are properly classified as to risk
and are properly disclosed.
39. Capital assets, including infrastructure and intangible assets,are properly capitalized,reported,
and, if applicable, depreciated. i
40. We are not aware of any current or anticipated losses in excess of our insurance coverage
for which we would be financially liable.
41. The City meets the GASB-established requirements for accounting for eligible infrastructure
assets using the modified approach.
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42. We have appropriately disclosed the City's policy regarding whether to first apply restricted or
unrestricted resources when an expense is incurred for purposes for which both restricted and
unrestricted net position is available and have determined that net position is properly
recognized under the policy.
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43. We are following our established accounting policy regarding which resources (that is, E
restricted, committed, assigned, or unassigned) are considered to be spent first for
expenditures for which more than one resource classification is available. That policy
determines the fund balance classifications for financial reporting purposes.
44. We acknowledge our responsibility for the required supplementary information(RSI). The RSI
is measured and presented within prescribed guidelines and the methods of measurement and
presentation have not changed from those used in the prior period. We have disclosed to you
any significant assumptions and interpretations underlying the measurement and presentation
of the RSI.
45. With respect to the supplemental financial information we acknowledge our responsibility for
presenting the supplemental financial information in accordance with accounting principles
generally accepted in the United States of America, and we believe the supplemental financial
information, including its form and content, is fairly presented in accordance with accounting
principles generally accepted in the United States of America. The methods of measurement
and presentation of the supplemental financial information have not changed from those used
in the prior period, and we have disclosed to you any significant assumptions or interpretations
underlying the measurement and presentation of the supplemental information.
i
46. We agree with the findings of specialists in evaluating the City's accrued pension liability and
OPEB liability and have adequately considered the qualifications of the specialists in
determining the amounts and disclosures used in the financial statements and underlying
accounting records. We did not give or cause any instructions to be given to specialists with
respect to the values or amounts derived in an attempt to bias their work, and we are not
otherwise aware of any matters that have had an impact on the independence or objectivity of
the specialists.
47. We believe that the actuarial assumptions and methods used to measure pension liabilities t
and costs for financial accounting purposes are appropriate in the circumstances.
48. In regards to the preparation of the financial statements, comptroller report and IDOI report
services performed by you,we have:
a. Assumed all management responsibilities.
b. Designated an individual who has suitable skill, knowledge, or experience to oversee the
services.
c. Evaluated the adequacy and results of the services performed.
6
d. Accepted responsibility for the results of the services.
Signed:
Title: !;' Q. CG rIn 11 2G"D
10Date:
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CITY OF McHENRY, ILLINOIS 1
ANNUAL FINANCIAL REPORT
APRIL 30, 2019
CITY OF McHENRY, ILLINOIS
TABLE OF CONTENTS
APRIL 30, 2019
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 12
Statement of Activities 13
Fund Financial Statements
Balance Sheet—Governmental Funds 14
Reconciliation of the Balance Sheet to the Statement of Net
Position 15
Statement of Revenues, Expenditures, and Changes in Fund
Balances—Governmental Funds 16
Reconciliation of the Statement of Revenues, Expenditures, and
Changes in Fund Balances to the Statement of Activities 17
Statement of Net Position — Proprietary Funds 18
Statement of Revenues, Expenses, and Changes in Net
Position — Proprietary Funds 19
Statement of Cash Flows— Proprietary Funds 20
Statement of Fiduciary Net Position — Fiduciary Funds 21
Statement of Changes in Fiduciary Net Position — Fiduciary Funds 22
Notes to Financial Statements 23
REQUIRED SUPPLEMENTARY INFORMATION
Illinois Municipal Retirement Fund —Schedule of Changes in the Employer's
Net Pension Liability and Related Ratios 51
CITY OF McHENRY, ILLINOIS
TABLE OF CONTENTS
APRIL 30, 2019
PAGE
REQUIRED SUPPLEMENTARY INFORMATION (Continued)
Illinois Municipal Retirement Fund —Schedule of Employer Contribution 52
Police Pension Plan — Schedule of Changes in the Employer's Net
Pension Liability and Related Ratios 53
Police Pension Plan — Schedule of Employer Contribution 54
Other Post-Employment Benefit—Schedule of Changes in the Employer's Net
OPEB Liability and Related Ratios 55
Other Post-Employment Benefit— Schedule of Employer Contribution 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
Summary of Federal Grants 71
Summary of State Grants 72
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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 D
City of McHenry
f and for the year ended April 30, 2019, and the related notes to the financial statements,as o a y p
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
yL]
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.
Page 1
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, 2019, 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.
89, Accounting for Interest Cost Incurred Before the End of a Construction Period, GASB
Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than
Pensions and GASB Statement No 85, Omnibus 2017. 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
Management's Discussion and Analysis, Schedules of Changes in the Employer's Net Pension
Liability and Related Ratios, Schedules of Employer Contribution, Schedules of Changes in the
Employer's Net OPEB Liability and Related Ratios, Schedule of Employer OPEB Contribution,
and budgetary comparison information, as listed on 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, is presented for purposes of additional analysis and is not a required
part of the basic financial statements.
The supplemental information is the responsibility of management and was derived from and
relates 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 is fairly stated in all material
respects in relation to the basic financial statements as a whole.
Page 2
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
October 21, 2019 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 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 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 21, 2019
Page 3
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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, 2019, 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 21, 2019,
Internal Control Over Financial Reporting
In planning and performing our audit, we considered City of McHenry's internal control over n
financial reporting (internal control) to determine the 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 V )
internal control.
MAdeficiencyininternalcontrolexistswhenthedesignoroperationofacontroldoesnotallow
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 entity'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. 0
Compliance and Other Matters
As part of obtaining reasonable assurance about whether City of McHenry's financial
statements are free of material misstatement, we performed tests of its compliance with certain
provisions of laws, regulations, contracts, and grant agreements, noncompliance with which
Page 4
could have a direct and material effect on the determination of financial statement amounts.
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 entity'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 entity's internal control and
compliance. Accordingly, this communication is not suitable for any other purpose.
EDER, CASELLA & CO.
Certified Public Accountants
McHenry, Illinois
October 21, 2019
Page 5
REQUIRED SUPPLEMENTARY INFORMATION
CITY OF MMENRY, ILLINOIS
MANAGEMENT'S DISCUSSION AND ANALYSIS
April 30, 2019
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, 2019. We encourage
readers to consider the information presented here in conjunction with additional information found in the
notes to the financial statements.
FINANCIAL HIGHLIGHTS
The assets and deferred outflows of resources of the City exceed its liabilities and deferred inflows of
resources at April 30, 2019 by $112,007,402 (total net position).
The City's total net position decreased by$2,428,104 from current year activities,which includes a net
position adjustment of$(5,539,557).
At April 30, 2019, the City's governmental funds reported combined ending fund balances of
12,751,324, a decrease from current year activities of $19,434, which includes a fund balance
adjustment of($31,539).
At April 30, 2019, the unassigned fund balance for the General Fund was $7,179,532, or 30% of total
General Fund expenditures.
The City's total governmental long-term obligations increased by $2,755,105 primarily due to the
scheduled payments on general obligation bonds offset by changes in the net pension and other post-
employment benefit liabilities. Long-term obligations from business-type activities increased $713,216
due to additional draws on the IEPA Revolving Loan and changes in the net pension and other post-
employment benefit liabilities offset by scheduled bond and loan payments.
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).
Page 6
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.
The government-wide financial statements can be found on pages 12 and 13 of this report.
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
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 12 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 eleven governmental funds are combined into a single, aggregated presentation. The other eleven
funds include Pageant, Audit, Recreation Center, Capital Improvements, Capital Equipment, Debt Service,
Motor Fuel Tax, Developer Donations, Tax Increment Financing, and two Special Service Areas.
The basic governmental fund financial statements can be found on pages 14 through 17 of this report.
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 on pages 67 and 68 of this report.
The basic proprietary fund financial statements can be found on pages 18 through 20 of this report.
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
Page 7
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 three Agency Funds.
The basic fiduciary fund financial statements can be found on pages 21 and 22 of this report.
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. The notes to the
financial statements can be found on pages 23 through 50 of this report.
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. Required supplementary information can be found on pages 51 through 59 of this report.
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 $112,007,402 at April 30, 2019.
By far, the largest portion of the City's net position, 112%, 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.
City of McHenry's Statement of Net Position
Governmental Activities Business-Type Activities Total
4/30/2019 4/30/2018 4/30/2019 4/30/2018 4/30/2019 4/30/2018
Assets
Current and Other Assets 21,294,312 $ 21,840,181 $ 7,860,991 $ 10,393,800 $ 29,155,303 $ 32,233,981
Capital Assets 91,383,064 90,340,932 78,596,880 77,685,469 169,979,944 168,026,401
Total Assets 112,677,376 $ 112,181,113 $ 86,457,871 $ 88,079,269 $ 199,135,247 $ 200,260,382
Deferred Outflows of Resources $ 7,151,011 $ 4,046,809 $ 1,336,866 $ 380,278 $ 8,487,877 $ 4,427,087
Liabilities
Long-Term Liabilities
Outstanding 41,441,373 $ 33,401,822 $ 39,083,518 $ 38,089,977 $ 80,524,891 $ 71,491,799
Other Liabilities 2,260,983 2,731,341 1,088,954 4,173,265 3,349,937 6,904,606
Total Liabilities 43,702,356 $ 36,133,163 $ 40,172,472 $ 42,263,242 $ 83,874,828 $ 78,396,405
Deferred Inflows of Resources $ 11,125,270 $ 11,127,249 $ 615,624 $ 728,309 $ 11,740,894 $ 11,855,558
Net Position
Net Investment in Capital
Assets 84,036,457 $ 81,849,844 $ 41,647,875 $ 41,610,920 $ 125,684,332 $ 123,460,764
Restricted 960,578 1,039,545 960,578 1,039,545
Unrestricted 19,996,274) (13,921,879) 5,358,766 3,857,076 (14,637,508) (10,064,803)
Total Net Position 65,000,761 $ 68,967,510 $ 47,006,641 $ 45,467,996 $ 112,007,402 $ 114,435,506
An additional portion of the City's net position, 1%, represents resources that are subject to external
restrictions on how they may be used (e.g. Highways and Streets, Capital Projects, and Special Service
Areas). The remaining balance of unrestricted net position was a deficit in the current year of$14,637,508.
Governmental Activities. Governmental activities decreased the City's net position by $3,966,749, which
includes a net position adjustment of($5,259,505). Key differences from the prior year are as follows:
Page 8
City of McHenry's Change in Net Position
Governmental Activities Business-Type Activities Total
FY 2019 FY 2018 FY 2019 FY 2018 FY 2019 FY 2018
Revenues
Program Revenues
Charges for Services 6,956,885 $ 6,136,199 $ 6,992,168 $ 7,726,595 $ 13,949,053 $ 13,862,794
Operating Grants and Contributions 385,819 169,093 385,819 169,093
Capital Grants and Contributions 2,324,418 1,315,386 1,388,023 3,712,441 1,315,386
General Revenues
Property Taxes 5,477,514 5,371,369 5,477,514 5,371,369
Sales Taxes 9,768,862 9,647,976 9,768,862 9,647,976
Other Taxes 3,919,890 3,592,054 3,919,890 3,592,054
Other 307,491 187,460 147,410 99,374 454,901 286,834
Total Revenues 29,140,879 $ 26,419,537 $ 8,527,601 $ 7,825,969 $ 37,668,480 $ 34,245,506
Expenses
General Office 4,047,562 $ 3,801,309 $ 4,047,562 $ 3,801,309
Public Safety 13,021,758 12,914,929 13,021,758 12,914,929
Public Works 6,947,382 7,256,545 6,947,382 7,256,545
Parks and Recreation 3,560,675 3,418,406 3,560,675 3,418,406
Interest and Fees 188,971 219,383 188,971 219,383
Depreciation 209,683 172,178 209,683 172,178
Water 1,967,241 1,831,093 1,967,241 1,831,093
Sewer 3,559,439 3,729,086 3,559,439 3,729,086
Utility Work 1,091,776 1,246,261 1,091,776 1,246,261
Total Expenses 27,976,031 $ 27,782,750 $ 6,618,456 $ 6,806,440 $ 34,594,487 $ 34,589,190
Increase/(Decrease)in Net Position
Before Transfers 1,164,848 $ (1,363,213) $ 1,909,145 $ 1,019,529 $ 3,073,993 $ (343,684)
Transfers 93,883 93,865 93,883) 93,865)
Gain/(Loss)on Sale of Capital Assets 34,025 10,789 3,435 37,460 10,789
Increase/(Decrease)in Net Position 1,292,756 $ (1,258,559) $ 1,818,697 $ 925,664 $ 3,111,453 $ (332,895)
Net Position-Beginning of Year 68,967,510 70,242,707 45,467,996 44,542,332 114,435,506 114,785,039
Net Position Adjustment 5,259,505) 16,638) 280,052) 5,539,557) 16,638)
Net Position-End of Year 65,000,761 $ 68,967,510 $ 47,006,641 $ 45,467,996 $ 112,007,402 $ 114,435,506
Revenues significantly increased in the current year, mainly due to a large developer donation of capital
assets and increases in various types of charges for services due to increased activity.
Business-Type Activities. Business-type activities increased the City's net position by $1,538,645, whichincludesanetpositionadjustmentof($280,052).
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
financing requirements. In particular, unassigned fund balance may serve as a useful measure of the City'snetresourcesavailableforspendingattheendofthefiscalyear.
At April 30, 2019, the City's governmental funds reported combined ending fund balances of$12,751,324,
a decrease of$19,434 in comparison with the prior year. Approximately 55%of this total amount constitutes
unassigned fund balance, which is available for spending at the City's discretion. Of the remaining fundbalance, 37% constitutes assigned fund balance, with the remainder of the fund balance restricted to
Page 9
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, 2019, the fund balance of the General
Fund was $9,171,660, of which $7,179,532 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 30% of total General Fund expenditures.
The General Fund's fund balance increased by $408,110 during the year ended April 30, 2019.
Other significant highlights in the governmental funds for the year ended April 30, 2019 are outlined below:
Debt service expenses of$1,445,000 were paid to meet the debt service requirements of the City.
Four parcels of land were purchased using $295,070 cash and a note payable for$305,500.
Other governmental funds show a total decrease in fund balance of$427,544, which includes a fund
balance adjustment of ($31,539). The decrease was mainly due to a significant amount of capital
outlay expenses in the Capital Improvements Fund.
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, 2019, the Police Pension Fund's net
position amounted to$27,153,629. Additions exceeded deductions during the year, resulting in an increase
of$1,805,097 in net position.
GENERAL FUND BUDGETARY HIGHLIGHTS
The General Fund actual revenue exceeded budgeted revenue by$1,740,219. This difference was primarily
due to more than expected revenue from royalties, licenses and permits, reimbursements and state income
tax. Actual expenditures exceeded budgeted expenditures by$124,981. The difference was primarily due
to higher than expected public works expense related to streets.
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, 2019 amounts to $169,979,944 (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.
City of McHenry's Capital Assets(net of depreciation)
Governmental Activities Business-Type Activities Total
4/30/2019 4/30/2018 4/30/2019 4/30/2018 4/30/2019 4/30/2018
Land 42,130,875 $ 41,491,738 $ 2,208,117 $ 2,208,117 $ 44,338,992 $ 43,699,855
Land Improvements 2,357,891 1,890,091 2,357,891 1,890,091
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 786,317 691,693 36,555,001 35,901,416 37,341,318 36,593,109
Buildings 12,516,371 12,901,595 499,829 560,000 13,016,200 13,461,595
Vehicles 996,915 1,135,134 879,215 942,556 1,876,130 2,077,690
Systems and Equipment 1,831,674 2,056,448 38,454,718 38,073,380 40,286,392 40,129,828
Infrastructure 28,804,094 28,215,306 28,804,094 28,215,306
Total 91,383,064 $ 90,340,932 $ 78,596,880 $ 77,685,469 $ 169,979,944 $ 168,026,401
Major capital asset events during the year ended April 30, 2019 included the following:
Governmental activities additions of $1,652,124 to Public Works Infrastructure due to the receipt of
donated storm sewer and roadway improvements from local developers.
Page 10
866,344 expended in prior years for the recreation center parking lot and Curran/Bull Valley Road
improvements were placed in service upon the completion of the projects during the year endedApril30, 2019.
Business-type activities additions of$1,388,023 to Water& Sewer Systems and Equipment due to the
receipt of donated sanitary sewer and watermain improvements from local developers.
For further information, please see Note 4 on pages 30 and 31 of this report.
Long-Term Debt. At April 30, 2019, the City had total bonded debt outstanding of$12,450,000, all of which
is backed by the full faith and credit of the City.
City of McHenry's Outstanding Debt
Governmental Activities Business-Type Activities Total
4/30/2019 4/30/2018 4/30/2019 4/30/2018 4/30/2019 4/30/2018
General Obligation Bonds 6,980,000 $ 8,425,000 $ 5,470,000 $ 5,835,000 $ 12,450,000 $ 14,260,000
IEPA Revolving Loan Fund 31,483,345 31,507,182 31,483,345 31,507,182
Notes Payable 305,500 305,500
Bond Premium 65,682 74,060 6,827 7,339 72,509 81,399
Bond Discount 4,575) 7,972) 11,167) 15,107) 15,742) 23,079)
Total 7,346,607 $ 8,491,088 $ 36,949,005 $ 37,334,414 $ 44,295,612 $ 45,825,502
Additional information on the City's long-term debt can be found in Note 5 on pages 31 through 33 of this
report.
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:
The average unemployment rate for McHenry County in 2017 was 3.4%, which is 1% lower than a year
ago. This is lower than the State's average unemployment rate of 4.3%.
Inflation in the area compares to the national consumer price index. Similar to a nationwide trend,
residential growth in the City has slowed dramatically in the last few years. The number of single-family
residential building permits issued by the City has decreased from 139 in 2007 to 36 in 2018. However,
there have been some signs of improvement,for instance the total value of all commercial and residential
improvements and new permits increased from $15.2 million in 2012 to $39.3 million in 2018.
Development and adoption of the 2019/20 budget was premised on providing core municipal services while
having an operationally balanced budget. Sales tax receipts and state shared revenue sources, primarilyincometaxreceipts, are expected to increase slightly. 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
0.739406 in 2017 to $0.699985 in 2018.
In April 2019, the City Council approved the proposed fiscal year 2019/20 General Fund budget increasingtheprioryear's budget by $994,941. The City increased the annual police pension contribution in order to
meet actuarial requirements and personnel cost increases. Capital expenditures are 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.
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.
Page 11
S1N3W3iViS IVIONVNIA OISVe
CITY OF MCHENRY, ILLINOIS
GOVERNMENT-WIDE FINANCIAL STATEMENTS
STATEMENT OF NET POSITION
APRIL 30,2019
Governmental Business-Type
Activities Activities Total
ASSETS
Cash and Cash Equivalents 10,292,925 $ 5,136,702 $ 15,429,627
Deposit with Paying Agent 586,955 586,955
Investments 767,335 1,251,429 2,018,764
Prepaid Expenses 145,726 34,954 180,680
Inventory 8,661 8,661
Receivables(Net of Allowance for Estimated
Uncollectible Amounts)
Accounts Receivable-Billed 539,206 122,937 662,143
Accounts Receivable-Unbilled 114,640 1,189,825 1,304,465
Property Taxes 5,642,729 5,642,729
Accrued Interest 4,688 6,077 10,765
Due from Other Governmental Units 2,895,440 97,714 2,993,154
Grants Receivable 176,519 176,519
Cable Franchise Fee Receivable 114,246 114,246
Interest Rebate Receivable 5,242 21,353 26,595
Capital Assets
Land,Construction in Progress,and Other
Non-Depreciable Assets 44,876,119 38,763,118 83,639,237
Other Capital Assets,Net of Depreciation 46,506,945 39,833,762 86,340,707
TOTAL ASSETS 112,677,376 $ 86,457,871 $ 199,135,247
DEFERRED OUTFLOWS OF RESOURCES
Pension Expense/Revenue-IMRF 4,419,592 $ 1,303,020 $ 5,722,612
Pension Expense/Revenue-Police Pension 2,057,432 2,057,432
OPEB Expense/Revenue 673,987 33,846 707,833
TOTAL DEFERRED OUTFLOWS OF RESOURCES 7,151,011 $ 1,336,866 $ 8,487,877
LIABILITIES
Accounts Payable and Accrued Expenses 1,413,007 $664,511 $ 2,077,518
Security Deposits Held 3,000 3,000
Due to Other Governmental Units 160,903 160,903
Due to Other Funds 45,515 45,515)
Unearned Revenue 575,419 156,675 732,094
Accrued Interest 66,139 310,283 376,422
Non-Current Liabilities
Due Within One Year 1,547,995 1,767,077 3,315,072
Due in More Than One Year 39,893,378 37,316,441 77,209,819
TOTAL LIABILITIES 43,702,356 $ 40,172,472 $ 83,874,828
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue-Property Taxes 5,642,729 $ 5,642,729
Unavailable Revenue-State Taxes 5,234 5,234
Unavailable Revenue-Rent 2,400 2,400
Pension Expense/Revenue-IMRF 1,899,898 560,144 2,460,042
Pension Expense/Revenue-Police Pension 2,470,209 2,470,209
OPEB Expense/Revenue 1,104,800 55,480 1,160,280
TOTAL DEFERRED INFLOWS OF RESOURCES 11,125,270 $615,624 $ 11,740,894
NET POSITION
Net Investment in Capital Assets 84,036,457 $ 41,647,875 $ 125,684,332
Restricted for:
Highways and Streets 180,847 180,847
Capital Projects 779,711 779,711
Special Service Areas 20 20
Unrestricted/(Deficit) 19,996,274) 5,358,766 14,637,508)
TOTAL NET POSITION 65,000,761 $ 47,006,641 $ 112,007,402
The Notes to Financial Statements are an integral part of this statement.
Page 12
CITY OF MCHENRY,ILLINOIS
GOVERNMENT-WIDE FINANCIAL STATEMENTS
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED APRIL 30,2019
Net(Expense)Revenue and
Program Revenues Changes in Net Position
Operating Capital
Charges for Grants and Grants and Governmental Business-Type
Functions/Programs
Expenses Services Contributions Contributions Activities Activities Total
Governmental Activities
General Office 4,047,562 $ 4,298,453 $ 176,853 $ 96,000 $ 523,744 $ 523,744
Public Safety 13,021,758 1,092,805 3,000 61,068 11,864,885) 11,864,885)
Public Works 6,947,382 412,264 204,516 1,861,713 4,468,889) 4,468,889)Parks and Recreation 3,560,675 1,153,363 1,450 305,637 2,100,225) 2,100,225)
Interest and Fees on Long-Term Debt 188,971 188,971) 188,971)
Depreciation-Unallocated 209,683 209,683)209,683)
27,976,031 $ 6,956,885 $ 385,819 $ 2,324,418 $ (18,308,909) $ 18,308,909)
Business-Type Activities
Water 1,967,241 $ 2,584,525 $ 577,430 $ 1,194,714 $ 1,194,714
Sewer 3,559,439 4,406,320 810,593 1,657,474 1,657,474
Utility Work 1,091,776 1,323 1,090,453) 1,090,453)
6,618,456 $ 6,992,168 $ 1,388,023 $ 1,761,735 $ 1,761,735
Total Primary Government 34,594,487 $ 13,949,053 $ 385,819 $ 3,712,441 $ (18,308,909) $ 1,761,735 $ (16,547,174)
General Revenues
Taxes
Property Tax,Levied for General Purposes 5,477,514 $ 5,477,514
State Sales Tax 9,768,862 9,768,862
State Income Tax 2,792,465 2,792,465
State Motor Fuel Tax 716,649 716,649
Other Taxes 410,776 410,776
Unrestricted Investment Earnings 217,195 88,714 305,909
Gain/(Loss)on Sale of Capital Assets 34,025 3,435 37,460
Miscellaneous 20,262 58,696 78,958
Special Events 70,034 70,034
Transfers 93,883 93,883)
Total General Revenues and Transfers 19,601,665 $ 56,962 $ 19,658,627
Change in Net Position 1,292,756 $ 1,818,697 $ 3,111,453
Net Position-May 1,2018 68,967,510 45,467,996 114,435,506
Net Position Adjustment 5,259,505) 280,052) 5,539,557)
Net Position-April 30,2019 65,000,761 $ 47,006,641 $ 112,007,402
Page 13
The Notes to Financial Statements are an integral part of this statement.
CITY OF MCHENRY,ILLINOIS
FUND FINANCIAL STATEMENTS
BALANCE SHEET
GOVERNMENTALFUNDS
APRIL 30,2019
Other Total
General Governmental Governmental
Fund Funds Funds
ASSETS
Cash and Cash Equivalents 7,163,053 $ 2,441,904 $ 9,604,957
Deposit with Paying Agent 586,955 586,955
Investments 181,526 577,614 759,140
Prepaid Expenses 75,438 75,438
Inventory 8,661 8,661
Receivables(Net of Allowance for
Estimated Uncollectible Amounts)
Accounts Receivable-Billed 533,091 5,400 538,491
Accounts Receivable-Unbilled 114,640 114,640
Property Taxes 4,962,485 680,244 5,642,729
Accrued Interest 776 3,877 4,653
Due from Other Governmental Units 2,835,694 59,746 2,895,440
Grants Receivable 176,519 176,519
Cable Franchise Fee Receivable 114,246 114,246
TOTAL ASSETS 15,980,949 $ 4,540,920 $ 20,521,869
LIABILITIES
Accounts Payable and Accrued Expenses 1,196,028 $ 208,496 $ 1,404,524
Due to Other Governmental Units 99,240 61,663 160,903
Due to Other Funds 49,985 49,985
Unearned Revenue 501,551 3,219 504,770
TOTAL LIABILITIES 1,846,804 $ 273,378 $ 2,120,182
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue-Property Taxes 4,962,485 $ 680,244 $ 5,642,729
Unavailable Revenue-State Taxes 5,234 5,234
Unavailable Revenue-Rent 2,400 2,400
TOTAL DEFERRED INFLOWS OF RESOURCES 4,962,485 $ 687,878 $ 5,650,363
FUND BALANCES
Nonspendable 75,438 $ 75,438
Restricted for:
Capital Projects 779,711 779,711
Highways and Streets 180,847 180,847
Special Service Areas 20 20
Assigned for:
Alarm 587,406 587,406
Audit 12,829 12,829
Tourism 262,481 262,481
Band 15,130 15,130
Highways and Streets 934,965 934,965
Capital Projects 926,720 1,001,789 1,928,509
Capital Equipment 190 190
Revolving Loan 121,296 121,296
Civil Defense 3,657 3,657
Debt Service 367,012 367,012
Parks and Recreation 528,174 528,174
Special Service Areas 43 43
Unassigned 7,179,532 225,916) 6,953,616
TOTAL FUND BALANCES 9,171,660 $ 3,579,664 $ 12,751,324
TOTAL LIABILITIES,DEFERRED INFLOWS OF
RESOURCES,AND FUND BALANCES 15,980,949 $ 4,540,920 $ 20,521,869
Page 14
The Notes to Financial Statements are an integral part of this statement.
CITY OF MCHENRY, ILLINOIS
FUND FINANCIAL STATEMENTS
RECONCILIATION OF THE BALANCE SHEET TO THE STATEMENT OF NET POSITION
APR IL 30,2019
Total Fund Balances-Governmental Funds 12,751,324
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 91,383,064
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 4,575
Some liabilities are not due and payable in the current period and therefore
are not reported in the funds.
Bonds and Notes Payable 7,285,500)
Bond Premiums, net of related amortization 65,682)
Accrued Interest on Long-Term Debt, net of receivable 60,897)
Compensated Absences 606,217)
OPEB Liability 5,172,944)
Net Pension Liability-IMRF 5,782,645)
Net Pension Liability-Police Pension 22,532,960)
41,506,845)
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 2,057,432
Pension Deferred Outflows-IMRF 4,419,592
Pension Deferred Inflows-Police Pension 2,470,209)
Pension Deferred Inflow-IMRF 1,899,898)
OPEB Deferred Outflows 673,987
OPEB Deferred Inflows 1,104,800)
1,676,104
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 not included in other reconciling items above:
Current Assets 771,671
Current Liabilities 79,132)
692,539
Net Position of Governmental Activities 65,000,761
The Notes to Financial Statements are an integral part of this statement.
Page 15
CITY OF MCHENRY, ILLINOIS
FUND FINANCIAL STATEMENTS
STATEMENT OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES
GOVERNMENTALFUNDS
FOR THE YEAR ENDED APRIL 30,2019
Other Total
General Governmental Governmental
REVENUES
Fund Funds Funds
Local Taxes
Property Tax 4,945,232 $ 532,282 $ 5,477,514
Intergovernmental
State Sales Tax 9,768,862 9,768,862
State Income Tax 2,792,465 2,792,465
State Replacement Tax 65,260 65,260
State Motor Fuel Tax 716,649 716,649
State Pull Tab/Games Tax 883 883
Inter Track Wagering Tax 46,192 46,192
State Telecommunications Tax 123,903 123,903
State Grants 61,068 61,068
Federal Grants 176,519 176,519
Bond Interest Rebates 20,262 20,262
Other Local Sources
Hotel/Motel Tax 174,538 174,538
Franchise Fees 345,056 345,056
Licenses and Permits 1,041,459 1,041,459
Fines and Forfeitures 413,137 413,137
Charges for Services 1,371,297 849,983 2,221,280
Interest 172,186 47,332 219,518
Miscellaneous
Rent 14,646 58,339 72,985
Royalties 500,000 500,000
Donations 4,450 578,490 582,940
Annexation Fees 203,679 203,679
Reimbursements 2,282,376 23,824 2,306,200
Concessions 62 62
Special Events 70,034 70,034
Other Miscellaneous 70,408 20,206 90,614
EXPENDITURES
24,467,131 $ 3,023,948 $ 27,491,079
Current
General Office 3,907,631 $ 96,523 $ 4,004,154
Public Safety 12,035,394 12,035,394
Public Works 3,721,153 163,445 3,884,598
Parks and Recreation 2,276,981 821,869 3,098,850
Capital Outlay 1,651,268 1,638,728 3,289,996
Debt Service
Principal 1,445,000 1,445,000
Interest and Fees 202,718 202,718
EXCESS OR(DEFICIENCY)OF REVENUES
23,592,427 $ 4,368,283 $ 27,960,710
OVER EXPENDITURES 874,704 $ (1,344,335) $ (469,631)
OTHER FINANCING SOURCES/(USES)
Transfers 854,447) $ 948,330 $ 93,883
Proceeds from Note Payable 305,500 305,500
Sale of City Property 82,353 82,353
466,594) $ 948,330 $ 481,736
NET CHANGE IN FUND BALANCES 408,110 $ (396,005) $ 12,105
FUND BALANCES-MAY 1,2018 8,763,550 4,007,208 12,770,758
FUND BALANCE ADJUSTMENT 31,539) 31,539)
FUND BALANCES-APRIL 30,2019 9,171,660 $ 3,579,664 $ 12,751,324
Page 16
The Notes to Financial Statements are an integral part of this statement.
CITY OF MCHENRY,ILLINOIS
FUND FINANCIAL STATEMENTS
RECONCILIATION OF THE STATEMENT OF REVENUES,EXPENDITURES,AND
CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED APRIL 30,2019
Net Change in Fund Balances-Total Governmental Funds 12,105
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 2,998,667)
Capital Outlays 2,347,787
650,880)
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 82,353)
Gain/(Loss)on Sale of Capital Assets 34,025
48,328)
Donated capital assets used in govemmental activities are not current financial
resources and therefore are not reported as revenue in the governmental funds. 1,652,123
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.
Note Payable Proceeds 305,500)
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 12,270
Accrued Interest Rebate 2,323)
Bond Discount-Amortization 3,397)
Bond Premium-Amortization 8,378
Charge on Bond Refunding-Amortization 3,504)
Pension Expense 3,251,902)
OPEB Expense 180,033)
Compensated Absences 34,810)
3,455,321)
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 662,387
Pension Employer Contributions-Police Pension 2,017,300
OPEB Employer Contributions 158,579
2,838,266
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-Terre Debt 1,445,000
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 227,896)
Depreciation Expense(included in Change in Net Position above) 33,187
194,709)
Change in Net Position of Governmental Activities 1,292,756
The Notes to Financial Statements are an integral part of this statement.
Page 17
CITY OF MCHENRY,ILLINOIS
FUND FINANCIAL STATEMENTS
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
APRIL 30,2019
Business Type Governmental
Activities- Activities-
Enterprise Fund Internal
Water and Sewer Service Funds
ASSETS
Current Assets
Cash and Cash Equivalents 5,136,702 $ 687,968
Investments 1,251,429 8,195
Prepaid Expenses 34,954 70,288
Receivables(Net of Allowance for
Estimated Uncollectible Amounts)
Accounts Receivable-Billed 122,937 715
Accounts Receivable-Unbilled 1,189,825
Accrued Interest 6,077 35
Due from Other Governmental Units 97,714
Due from Other Funds 45,515 4,470
Interest Rebate Receivable 21,353
7,906,506 $ 771,671
Non-Current Assets
Capital Assets
Land 2,208,117 $
Buildings 2,736,098
Systems and Equipment 68,620,399 486,378
Vehicles 1,938,817
Construction in Progress 36,555,001
Less: Accumulated Depreciation 33,461,552) 363,556)
78,596,880 $ 122,822
TOTAL ASSETS 86,503,386 $ 894,493
DEFERRED OUTFLOWS OF RESOURCES
Pension Expense/Revenue-IMRF 1,303,020 $ 107,053
OPEB Expense/Revenue 33,846 2,781
TOTAL DEFERRED OUTFLOWS OF RESOURCES 1,336,866 $ 109,834
LIABILITIES
Current Liabilities
Accounts Payable and Accrued Expenses 664,511 $ 8,483
Security Deposits Held 3,000
Unearned Revenue 156,675 70,649
Accrued Interest 310,283
IEPA Loan Payable-Current 1,395,506
Bonds Payable-Current 371,571
2,901,546 $ 79,132
Non-Current Liabilities
Compensated Absences 87,658 $ 6,749
IMRF Net Pension Liability 1,787,082 186,217
Total OPEB Liability 259,773 21,342
IEPA Loan Payable(Net of Current Portion Shown Above) 30,087,839
Bonds Payable(Net of Current Portion Shown Above) 5,094,089
37,316,441 $ 214,308
TOTAL LIABILITIES 40,217,987 $ 293,440
DEFERRED INFLOWS OF RESOURCES
Pension Expense/Revenue-IMRF 560,144 $ 46,020
OPEB Expense/Revenue 55,480 4,558
TOTAL DEFERRED INFLOWS OF RESOURCES 615,624 $ 50,578
NET POSITION
Net Investment in Capital Assets 41,647,875 $ 122,822
Unrestricted/(Deficit) 5,358,766 537,487
TOTAL NET POSITION 47,006,641 $ 660,309
The Notes to Financial Statements are an integral part of this statement.
Page 18
CITY OF MCHENRY, ILLINOIS
FUND FINANCIAL STATEMENTS
STATEMENT OF REVENUES,EXPENSES,AND CHANGES IN NET POSITION
PROPRIETARY FUNDS
FOR THE YEAR ENDED APRIL 30,2019
Business Type Governmental
Activities- Activities-
Enterprise Fund Internal
Water and Sewer Service Funds
OPERATING REVENUES
Charges for Services
Customer Fees 5,275,533 $
Capital Fees 396,783
Debt Service Fees 2,615,897
Penalties 151,313
Water Meter Sales 25,075
Other 6,474
Internal Service Funds 4,474,918
8,471,075 $ 4,474,918
OPERATING EXPENSES
Water Department
Personnel Salaries 478,315 $
Miscellaneous Personnel Expenses 214,130
Other Operating Expenses 742,494
Depreciation 532,302
Sewer Department
Personnel Salaries 645,519
Miscellaneous Personnel Expenses 329,488
Other Operating Expenses 1,344,641
Depreciation 1,239,791
Utility Work Department
Personnel Salaries 605,615
Miscellaneous Personnel Expenses 270,728
Other Operating Expenses 215,433
Internal Service Funds
Personnel Salaries 145,423
Miscellaneous Personnel Expenses 3,268,304
Other Operating Expenses 1,257,795
Depreciation 33,187
6,618,456 $ 4,704,709
OPERATING INCOME/(LOSS) 1,852,619 $229,791)
NON-OPERATING REVENUE/(EXPENSE)
Interest Income 88,714 $ 1,895
Rental Income 76,465
Interest Rebate Income 58,696
Interest and Fees 1,551,943)
Amortization 3,429)
Gain/(Loss)on Sale of Fixed Asset 3,435
Donated Public Improvements-Water 577,430
Donated Public Improvements-Sewer 810,593
59,961 $ 1,895
INCOME/(LOSS)BEFORE CONTRIBUTIONS
AND TRANSFERS 1,912,580 $227,896)
TRANSFERS(TO)/FROM OTHER FUNDS 93,883)
CHANGE IN NET POSITION 1,818,697 $227,896)
NET POSITION-MAY 1,2018 45,467,996 911,236
NET POSITION ADJUSTMENT 280,052) 23,031)
NET POSITION-APRIL 30,2019 47,006,641 $660,309
The Notes to Financial Statements are an integral part of this statement.
Page 19
CITY OF MCHENRY, ILLINOIS
FUND FINANCIAL STATEMENTS
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED APRIL 30,2019
Business Type Governmental
Activities- Activities-
Enterprise Fund Internal
Water and Sewer Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from Customers 9,283,167 $
Receipts from Employees for Services 472,523
Receipts from Other Funds for Services 4,013,679
Payments to Suppliers for Goods and Services 2,820,807) 4,482,674)
Payments to Employees for Services 1,690,808) 141,627)
Payments to Other Funds for Services 1,128,301) 32,911)
Internal Activity-Payments(to)/from Other Funds 30,527)
Net Cash Provided/(Used)by Operating Activities 3,612,724 $171,010)
CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES
Transfers(to)/from Other Funds 93,883) $
Net Cash Provided/(Used)by Non-Capital Financing Activities 93,883) $
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Proceeds from the Sale of Capital Assets 3,435 $
Purchase of Capital Assets 30,075) 32,734)
Interest Paid on Capital Debt, Net of Rebate 1,267,124)
Principal Paid on Capital Debt 1,653,966)
Other Receipts/(Payments) 21,249)
Net Cash Provided/(Used)by Capital and Related Financing Activities 2,968,979) $ 32,734)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on Cash and Cash Equivalents and Investments 80,757 $ 1,870
Net Cash Provided/(Used)by Investing Activities 80,757 $ 1,870
NET INCREASE/(DECREASE)IN CASH AND CASH EQUIVALENTS 630,619 $201,874)
CASH AND CASH EQUIVALENTS BALANCE-MAY 1,2018
INCLUDING RESTRICTED CASH AND OVERDRAFTS) 4,506,083 889,842
CASH AND CASH EQUIVALENTS BALANCE-APRIL 30,2019
INCLUDING RESTRICTED CASH AND OVERDRAFTS) 5,136,702 $ 687,968
RECONCILIATION OF OPERATING INCOME/(LOSS)TO NET
CASH PROVIDED/(USED) BY OPERATING ACTIVITIES
Operating Income/(Loss) 1,852,619 $229,791)
Adjustments to reconcile operating income to net cash
provided by operating activities:
Depreciation Expense 1,772,093 33,187
Change in assets, liabilities and deferred amounts:
Receivables, net 812,465 3,145
Prepaid Expenses 5,457) 12,642
Accounts Payable and Other Payables 832,718) 1,908
Unearned Revenue 6,995
Pension Liabilities 1,103,547 89,207
OPEB Liabilities 20,552)1,689)
Deferred Pension Expenses/Revenues 1,090,907) 88,391)
Deferred OPEB Expenses/Revenue 21,634 1,777
Net Cash Provided/(Used)by Operating Activities 3,612,724 $171,010)
NONCASH CAPITAL FINANCING ACTIVITIES
IEPA Loan Draws 1,265,130 $
The Notes to Financial Statements are an integral part of this statement.
Page 20
CITY OF MCHENRY, ILLINOIS
FUND FINANCIAL STATEMENTS
STATEMENT OF FIDUCIARY NET POSITION
FIDUCIARY FUNDS
APRIL 30, 2019
POLICE
PENSION AGENCY
TRUSTFUND FUNDS
ASSETS
Cash and Cash Equivalents 1,080,008 $ 43,062
Investments 26,015,227
Accrued Interest 87,176
TOTAL ASSETS 27,182,411 $ 43,062
LIABILITIES
Accounts Payable 12,948
Benefits Payable 28,782
Due to Depositors 30,114
TOTAL LIABILITIES 28,782 $ 43,062
NET POSITION- RESTRICTED FOR PENSION BENEFITS 27,153,629
The Notes to Financial Statements are an integral part of this statement.
Page 21
CITY OF MCHENRY, ILLINOIS
FUND FINANCIAL STATEMENTS
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FIDUCIARY FUNDS
FOR THE YEAR ENDED APRIL 30, 2019
POLICE
PENSION
TRUST FUND
ADDITIONS
Contributions
Employer 2,017,300
Plan Members 428,598
Total Contributions 2,445,898
Investment Income
Interest and Dividends 1,390,114
Gain/(Loss) on Sale of Investments 11,055)
Net Increase/(Decrease) in Fair Value of Investments 96,344
1,475,403
Less: Investment Management Fees 21,410
Net Investment Income 1,453,993
TOTAL ADDITIONS 3,899,891
DEDUCTIONS
Benefits 2,028,470
Refunds of Contributions 48,561
Administrative Expenses 17,763
TOTAL DEDUCTIONS 2,094,794
NET INCREASE/(DECREASE) 1,805,097
NET POSITION - RESTRICTED FOR PENSION BENEFITS-MAY 1, 2018 25,348,532
NET POSITION -RESTRICTED FOR PENSION BENEFITS-APRIL 30, 2019 27,153,629
The Notes to Financial Statements are an integral part of this statement.
Page 22
CITY OF McHENRY, ILLINOIS
NOTES TO FINANCIAL STATEMENTS
APR IL 30, 2019
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.).
Page 23
NOTES TO FINANCIAL STATEMENTS (Continued)
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.
Page 24
NOTES TO FINANCIAL STATEMENTS (Continued)
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, 2019:
Page 25
NOTES TO FINANCIAL STATEMENTS (Continued)
Debt Service Fund 235,902
SSA#4 Lakewood Fund 338
SSA#6 Huntersville Fund 179,115
Tax Increment Financing Fund 45,619
Capital Equipment Fund 23,411
484,385
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$71,041 and all other allowances for other accounts receivable is$535,492.
G. Prepaid Expenses
Prepaid expenses 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, 2019 is
8,661.
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.
Page 26
NOTES TO FINANCIAL STATEMENTS (Continued)
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.
Page 27
NOTES TO FINANCIAL STATEMENTS (Continued)
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 2018 levy was passed by the Board on December 3,
2018. 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
Page 28
NOTES TO FINANCIAL STATEMENTS (Continued)
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, 2019, the City had the following investments and maturities:
Investment Maturities(in Years)
Investments Fair Value Less Than 1 1-5 5-10 More Than 10
External Investment Pools $ 10,250,358 $ 10,250,358 $
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:
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.
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:
Limiting investments to the safest type of securities.
Pre-qualifying the financial institutions, brokers/dealers, intermediaries, and advisers with which the
City will do business.
Diversifying the investment portfolio so that potential losses on individual securities will be
minimized.
As of April 30, 2019, 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.
Page 29
NOTES TO FINANCIAL STATEMENTS (Continued)
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, 2019:
Fair Value Measurements Using:
Quoted Prices in Active Markets Significant Other
Investments by fair value level 4/30/2019 for Identical Assets(Level 1) Observable Inputs(Level 2)
Certificates of Deposit 2,018,763 2,018,763
Debt Securities:
U.S.Treasury securities 1,213,455 1,213,455
Corporate bonds 6,277,246 6,277,246
Government securities 295,086 295,086
Municipal Issues 767,848 767,848
Total Debt Securities 8,553,635 1,213,455 7,340,180
Equity Securities:
Foreign Issues 551,710 551,710
Total Equity Securities 551,710 551,710
Mutual Funds 16,909,882 16,909,882
Total Investments by fair value level $ 28,033,990 18,675,047 9,358,943
Debt and equity securities classified in Level 1 of the fair value hierarchy are valued using prices quoted
in active markets for those securities.
NOTE 4- CAPITAL ASSETS
Capital asset activity for the year ended April 30, 2019 was as follows:
Balance Net Position Balance
May 1,2018 Adjustment Increases Decreases April 30,2019
Governmental Activities
Capital Assets not being depreciated
Land 41,491,738 $639,137 $42,130,875
Art and Historical Treasures 1,658,927 1,658,927
Intangibles 300,000 300,000
Construction in Progress 691,693 1,126,585 1,031,961 786,317
Total Capital Assets not being depreciated $ 44,142,358 $1,765,722 $ 1,031,961 $ 44,876,119
Other Capital Assets
Land Improvements 5,513,729 $685,100 $ 6,198,829
Buildings 17,621,006 10,948 17,631,954
Vehicles 3,948,868 184,837 185,424 3,948,281
Equipment 4,296,507 61,217 4,357,724
Infrastructure 73,646,543 2,356,781 76,003,324
Total Other Capital Assets at Historical Cost $ 105,026,653 $3,298,883 $ 185,424 $ 108,140,112
Less Accumulated Depreciation for:
Land Improvements 3,623,638 $217,300 $ 3,840,938
Buildings 4,719,411 396,172 5,115,583
Vehicles 2,813,734 274,728 137,096 2,951,366
Equipment 2,240,059 285,991 2,526,050
Infrastructure 45,431,237 56,483) 1,824,476 47,199,230
Total Accumulated Depreciation 58,828,079 $ (56,483) $ 2,998,667 $ 137,096 $ 61,633,167
Other Capital Assets,Net 46,198,574 $ 56,483 $ 300,216 $ 48,328 $ 46,506,945
Governmental Activities Capital Assets,Net 90,340,932 $ 56,483 $ 2,065,938 $ 1,080,289 $ 91,383,064
Page 30
NOTES TO FINANCIAL STATEMENTS (Continued)
Balance Net Position Balance
May 1,2018 Adjustment Increases Decreases April 30,2019
Business-Type Activities
Capital Assets not being depreciated
Land 2,208,117 $2,208,117
Construction in Progress 35,901,416 653,585 36,555,001
Total Capital Assets not being depreciated $ 38,109,533 $653,585 $38,763,118
Other Capital Assets
Buildings 2,736,098 $2,736,098
Vehicles 1,929,107 29,500 19,790 1,938,817
Systems and Equipment 66,620,255 2,000,144 68,620,399
Total Other Capital Assets at Historical Cost $ 71,285,460 $2,029,644 $ 19,790 $ 73,295,314
Less Accumulated Depreciation for:
Buildings 2,176,098 $60,171 $ 2,236,269
Vehicles 986,551 92,841 19,790 1,059,602
Systems and Equipment 28,546,875 275) 1,619,081 30,165,681
Total Accumulated Depreciation 31,709,524 $275) $ 1,772,093 $ 19,790 $ 33,461,552
Other Capital Assets,Net 39,575,936 $ 275 $ 257,551 $ 39,833,762
Business-Type Activities Capital Assets,Net $ 77,685,469 $ 275 $ 911,136 $78,596,880
Depreciation expense was charged to functions as follows:
Governmental Activities
Public Safety 273,922
Public Works 2,100,402
Parks and Recreation 414,660
Unallocated 209,683
Total Governmental Activities Depreciation Expense 2,998,667
Business-Type Activities
Water 532,302
Sewer 1,239,791
Total Business-Type Activities Depreciation Expense 1,772,093
NOTE 5 - LONG-TERM LIABILITY ACTIVITY
Long-term liability activity for the year ended April 30, 2019 was as follows:
Amounts
Balance Balance Due Within
May 1,2018 Additions Retirements April 30,2019 One Year
Governmental Activities
Bonds and Notes Payable
General Obligation Bonds 8,425,000 $1,445,000 $ 6,980,000 $ 1,485,000
Unamortized Bond Discount 7,972) 3,397) 4,575) 2,267)
Unamortized Bond Premium 74,060 8,378 65,682 8,378
Note Payable 305,500 305,500 56,884
Total Bonds and Notes Payable 8,491,088 $ 305,500 $ 1,449,981 $ 7,346,607 $ 1,547,995
Other Long-Term Liabilities
Compensated Absences 568,514 $ 37,703 $ 606,217 $
IMRF Net Pension Liability 2,004,143 4,487,640 709,138 5,782,645
Police Pension Net Pension Liability 22,040,308 4,392,594 3,899,942 22,532,960
Total OPEB Liability 5,582,215 854,766 1,264,037 5,172,944
Total Other Long-Term Liabilities 30,195,180 $ 9,772,703 $ 5,873,117 $ 34,094,766 $
Governmental Activities Long-
Term Obligations 38,686,268 $ 10,078,203 $ 7,323,098 $ 41,441,373 $ 1,547,995
Page 31
NOTES TO FINANCIAL STATEMENTS (Continued)
Amounts
Balance Balance Due Within
May 1,2018 Additions Retirements April 30,2019 One Year
Business-Type Activities
Bonds and Notes Payable
General Obligation Bonds 5,835,000 $ 365,000 $ 5,470,000 $ 375,000
IEPA Revolving Loan Fund 31,507,182 1,265,130 1,288,967 31,483,345 1,395,506
Unamortized Bond Discount 15,107) 3,940) 11,167) 3,941)
Unamortized Bond Premium 7,339 512 6,827 512
Total Bonds and Notes Payable 37,334,414 $ 1,265,130 $ 1,650,539 $ 36,949,005 $ 1,767,077
Other Long-Term Liabilities
Compensated Absences 72,028 $ 15,630 $ 87,658 $
IMRF Net Pension Liability 683,535 1,312,621 209,074 1,787,082
Total OPEB Liability 280,325 42,924 63,476 259,773
Total Other Long-Term Liabilities 1,035,888 $ 1,371,175 $ 272,550 $ 2,134,513 $
Business-Type Activities
Long-Term Obligations 38,370,302 $ 2,636,305 $ 1,923,089 $ 39,083,518 $ 1,767,077
Bonds and notes payable consisted of the following at April 30, 2019:
Maturity Interest Face Carrying
Date Rate Amount Amount
Governmental Activities
General Obligation Bonds 2010B 12/15/2020 1.40%-4.40% $ 3,510,000 $ 770,000
General Obligation Bonds 2012 12/15/2027 2.00%-2.50% 850,000 545,000
General Obligation Refunding Bonds 2013 5/1/2019 0.40%-1.30% 1,965,000 550,000
General Obligation Bonds 2013 5/1/2027 0.40%-2.75% 415,000 290,000
General Obligation Bonds 2015 12/15/2035 2.00%-3.25% 6,375,000 4,825,000
Note Payable 2/20/2024 3.50% 305,500 305,500
4 parcels of land pledged as collateral to this loan
Total 13,420,500 $ 7,285,500
Business-Type Activities
General Obligation Bonds 2010C 12/15/2029 1.00%-5.25% $ 5,665,000 $ 3,775,000
General Obligation Bonds 2012 12/15/2032 2.00%-2.80% 2,250,000 1,695,000
IEPA Revolving Loan Fund 12/30/2037 1.86% 31,507,182 31,483,345
Total 39,422,182 $ 36,953,345
At April 30, 2019 the annual debt service requirements to service all long-term debt attributable to
governmental activities are:
Year Ending April 30 Principal Interest Total Rebate
2020 1,541,884 $ 178,300 $ 1,720,184 $14,904
2021 1,008,896 145,743 1,154,639 7,722
2022 631,029 115,220 746,249
2023 648,214 101,605 749,819
2024 660,477 87,612 748,089
2025-2029 1,970,000 253,866 2,223,866
2030-2034 570,000 94,812 664,812
2035-2039 255,000 12,512 267,512
7,285,500 $ 989,670 $ 8,275,170 $22,626
Page 32
NOTES TO FINANCIAL STATEMENTS (Continued)
At April 30, 2019 the annual debt service requirements to service all long-term debt attributable to
business-type activities are:
Year Ending April 30 Principal Interest Total Rebate
2020 1,770,506 $ 734,659 $ 2,505,165 $58,420
2021 1,806,583 698,131 2,504,714 57,383
2022 1,853,148 662,805 2,515,953 53,743
2023 1,890,208 625,746 2,515,954 49,490
2024 1,937,775 587,919 2,525,694 45,096
2025-2029 10,405,741 2,311,911 12,717,652 140,544
2030-2034 9,711,399 1,211,474 10,922,873 7,809
2035-2039 7,577,985 320,564 7,898,549
36,953,345 $ 7,153,209 $ 44,106,554 $ 412,485
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 issues of the bonds aggregated to $7,500,000, and at April 30, 2019 the outstanding
balance on the bonds was $2,203,570.
NOTE 6 - RESTRICTED EQUITY
The following amounts are restricted equity balances at April 30, 2019:
Restricted Restricted
Restricted for Net Position Fund Balance
Governmental Activities/Governmental Funds
Highways and Streets 180,847 $ 180,847
Capital Projects 779,711 779,711
Special Service Areas 20 20
960,578 $ 960,578
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, 2019 was $4,562,265
NOTE 8 - DEFICIT FUND BALANCE
At April 30, 2019 a deficit fund balance existed in the following funds:
Pageant Fund 1,182
Tax Increment Financing Fund 45,619
SSA#6 Huntersville Fund 179,115
225,916
NOTE 9 - NET POSITION/FUND BALANCE ADJUSTMENT
During the year, the City made the following net position/fund balance adjustments:
Page 33
NOTES TO FINANCIAL STATEMENTS (Continued)
Governmental Funds Fund Balance Proprietary Funds Fund Balance
Motor Fuel Tax Fund Water&Sewer Fund
Adjustment to capture 2018 salt expense Adjustment related to incorrect prior year
in prior year 31,539) depreciation expense 273
Adjustment to record beginning OPEB liability
balance in relation to GASB 75 implementation 280,325)
280,052)
IT Fund
Adjustment to record beginning OPEB liability
balance in relation to GASB 75 implementation $ (23,031)
Governmental Activities Net Position Business-Type Activities Fund Balance
Water&Sewer Fund
Adjustment to record beginning OPEB liability Adjustment related to incorrect prior year
balance in relation to GASB 75 implementation $ (5,284,446) depreciation expense 273
Adjustment to capture 2018 salt expense Adjustment to record beginning OPEB liability
in prior year 31,539) balance in relation to GASB 75 implementation 280,325)
Adjustment related to incorrect prior year 280,052)
depreciation expense 56,480
5,259,505)
NOTE 10 - PROPERTY TAXES
Property taxes receivable and unavailable revenue recorded in these financial statements, in the amount
of$5,642,729, are from the 2018 tax levy. The unavailable revenue is 100% of the 2018 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 2019. The
City has determined that 100% of the amounts collected for the 2017 levy ($5,477,514) are allocable for
use in fiscal year 2019 and, therefore, are recorded in these financial statements as property taxes
revenue. A summary of the assessed valuation, rates, and extensions for the years 2018, 2017, and
2016 follows:
Tax Year 2018 2017 2016
Assessed Valuation 659,844,715 624,662,787 588,650,542
Rates Extensions Rates Extensions Rates Extensions
General 0.0756 $ 499,047 0.0899 $ 561,765 0.1201 $ 707,252
Police Protection 0.0830 547,962 0.0877 547,960 0.0931 547,963
Insurance 0.0758 499,997 0.0800 499,999 0.0849 500,000
Retirement 0.0605 399,199 0.0639 399,197 0.0678 399,199
Social Security 0.0854 563,752 0.0902 563,746 0.0958 563,751
Audit 0.0040 26,433 0.0042 26,429 0.0045 26,430
Police Pension 0.3156 2,082,424 0.3233 2,019,704 0.3184 1,874,222
Total Taxes Extended 0.7000 $ 4,618,814 0.7394 $ 4,618,800 0.7846 $ 4,618,817
Road and Bridge
from Townships) 370,104 359,432 369,787
Special Service Area#1A
Special Service Area#4A 16,847 16,847 16,847
Tax Increment Financing 636,500 489,962 380,344
NOTE 11 - EXCESS OF EXPENDITURES OVER BUDGET
For the year ended April 30, 2019, the following governmental funds had expenditures that exceeded the
budget:
Excess of Actual
Fund Budget Actual Over Budget
General 23,467,446 $ 23,592,427 $ 124,981
Pageant 1,200 2,420 1,220
Recreation Center 1,011,554 1,049,492 37,938
Motor Fuel Tax 367,000 370,445 3,445
Information Technology 638,521 710,210 71,689
Page 34
NOTES TO FINANCIAL STATEMENTS (Continued)
NOTE 12 - 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.ora.
B. Benefits Provided
IMRF has three benefit plans. The vast majority of IMRF members participate in the Regular Plan (RP).
The Sheriffs 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,
plus 2%for each year of service credit after 15 years to a maximum of 75P 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:
3% of the original pension amount, or
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, 2018, the following employees were covered by the benefit terms:
Retirees and beneficiaries currently receiving benefits 83
Inactive plan members entitled to but not yet receiving benefits 42
Active plan members 105
Total 230
Page 35
NOTES TO FINANCIAL STATEMENTS (Continued)
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 2018 was 12.18%. For the fiscal year ended April 30, 2019, the City
contributed $881,033 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, 2018, and a measurement date as of December 31, 2018, calculated in accordance with
GASB Statement No. 68, were as follows:
Total Pension Liability 39,034,861
IMRF Fiduciary Net Position 31,465,134
City's Net Pension Liability 7,569,727
IMRF Fiduciary Net Position as a Percentage
of the Total Pension Liability 80.61%
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.
F. Actuarial Assumptions
The total pension liability above was determined by an actuarial valuation performed as of
December 31, 2018 using the following actuarial methods and assumptions:
Assumptions
Inflation 2.50%
Salary Increases 3.39-14.25%including inflation
Interest Rate 7.25%
Asset Valuation Method Market Value of Assets
Experience-based Table of Rates,specific to the type of
Projected Retirement Age eligibility condition,last updated for the 2017 valuation
according to an experience study from years 2014 to 2016
For non-disabled retirees, an IMRF specific mortality table was used with fully generational projection
scale MP-2017 (base year 2015). The IMRF specific rates were developed from the RP-2014 Blue 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-2017(base
year 2015). 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 active members, an IMRF
specific mortality table was used with fully generational projection scale MP-2017 (base year 2015). The
IMRF specific rates were developed from the RP-2014 Employee Mortality Table with adjustments to
match current IMRF experience.
Page 36
NOTES TO FINANCIAL STATEMENTS (Continued)
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, 2018:
Target Projected
Asset Class Allocation Return
Equities 37.00% 7.15%
International Equities 18.00% 7.25%
Fixed Income 28.00% 3.75%
Real Estate 9.00% 6.25%
Alternatives 7.00%
Private Equity 8.50%
Hedge Funds 5.50%
Commodities 3.20%
Cash 1.00% 2.50%
100.00%
H. Single Discount Rate
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
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 3.71%; 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 31,2017 35,615,648 $ 32,927,971 $ 2,687,677
Changes for the year:
Service Cost 740,595 $ 740,595
Interest on the Total Pension Liability 2,641,076 2,641,076
Differences Between Expected and Actual
Experience of the Total Pension Liability 381,201 381,201
Changes of Assumptions 1,199,530 1,199,530
Contributions-Employer 918,212 918,212)
Contributions-Employee 340,841 340,841)
Net Investment Income 1,672,533) 1,672,533
Benefit Payments,including Refunds
of Employee Contributions 1,543,189) 1,543,189)
Other(Net Transfer) 493,832 493,832)
Net Changes 3,419,213 $ (1,462,837) $ 4,882,050
Balances at December 31,2018 39,034,861 $ 31,465,134 $ 7,569,727
Page 37
NOTES TO FINANCIAL STATEMENTS (Continued)
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 $ 13,039,152 $ 7,569,727 $ 3,101,661
K. Pension Expense/(Income) and Deferred Outflows of Resources and Deferred Inflows of
Resources Related to Pensions
For the year ended April 30, 2019, the City recognized pension expense/(income) of $941,966. At
April 30, 2019, 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 738,114 $ 41,965 $ 696,149
Changes of assumptions 985,193 769,228 215,965
Net difference between projected and actual
earnings on pension plan investments 3,755,578 1,648,850 2,106,728
Total deferred amounts to be recognized in
pension expense in future periods 5,478,885 $ 2,460,043 $ 3,018,842
Pension contributions made subsequent to
the measurement date 243,726 243,726
Total deferred amounts related to pensions 5,722,611 $ 2,460,043 $ 3,262,568
The deferred outflows of resources related to pensions resulting from the City's contributions in fiscal
year 2019 subsequent to the measurement date will be recognized as a reduction of the net pension
liability for the year ended April 30, 2020. 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
2019 872,427
2020 480,670
2021 477,463
2022 1,087,971
2023 100,311
Thereafter
3,018,842
NOTE 13 - 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.
Page 38
NOTES TO FINANCIAL STATEMENTS (Continued)
B. Plan Membership
At May 30, 2018, the date of the latest actuarial valuation, Plan participation consisted of:
Retirees and beneficiaries receiving benefits 30
Terminated plan members entitled to but not yet receiving benefits 3
Active plan members 45
Total 78
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, 2019 the City's contribution was
46.65% of covered payroll.
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%
Cash and Securities 2% 0.33%
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 2.5%. 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
Page 39
NOTES TO FINANCIAL STATEMENTS (Continued)
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 December 31, 2014 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, 2019 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, 2019, the annual money-weighted rate of return on pension plan
investments, net of pension plan investment expense, was 5.73%. The money-weighted rate of return
expresses investment performance, net of investment expense, adjusted for the changing amounts
actually invested.
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, 2019:
Investment Maturities(in Years)
Investments Fair Value Less Than 1 1-5 5-10 More Than 10
External Investment Pools 218,592 $ 218,592 $
Foreign Issues 551,710 203,142 348,568
US Treasury 1,213,455 179,107 1,034,348
Federal Home Loan Banks 295,086 295,086
Municipal Bonds 767,848 589,253 178,595
Corporate Bonds 6,277,246 5,116,689 939,817 96,819 123,921
Mutual Funds 16,909,882 16,909,882
Total 26,233,819 $ 23,037,558 $ 1,583,471 $ 454,521 $ 1,158,269
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,
Page 40
NOTES TO FINANCIAL STATEMENTS (Continued)
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, 2019,the Plan's investments were
rated as follows:
Investments Credit Rating Rating Source
Illinois Funds Investment Pool AAAm Standard and Poor's
US Treasury Bond Aaa Moody's
US Treasury Notes Aaa Moody's
Federal Home Loan Banks AA+Standard and Poor's
Foreign Issues Barclays Bank Plc A Standard and Poor's
Foreign Issues Barclays Bank Plc A Standard and Poor's
Foreign Issues Barrick Australia Finance BBB Standard and Poor's
Corporate Bonds American Express Credit A- Standard and Poor's
Corporate Bonds Apple Inc AA+Standard and Poor's
Corporate Bonds Capital One Bank USA Na BBB+ Standard and Poor's
Corporate Bonds Capital One Na BBB+ Standard and Poor's
Corporate Bonds Citigroup Inc BBB+ Standard and Poor's
Corporate Bonds Compass Bank BBB+ Standard and Poor's
Corporate Bonds Constellation Brands Inc BBB Standard and Poor's
Corporate Bonds Cvs Caremark Corp BBB Standard and Poor's
Corporate Bonds First Tennessee Bank BBB Standard and Poor's
Corporate Bonds Ford Motor Credit Co LLC BBB Standard and Poor's
Corporate Bonds Fortune Brands Home SE BBB+ Standard and Poor's
Corporate Bonds General Elec Cap Corp BBB+ Standard and Poor's
Corporate Bonds General Motors Fin[Co BBB Standard and Poor's
Corporate Bonds Goldman Sachs Bank USA A+and BBB+ Standard and Poor's
Corporate Bonds Intl Lease Finance Corp BBB-Standard and Poor's
Corporate Bonds Kinder Morgan Ener Part BBB Standard and Poor's
Corporate Bonds Kraft Foods Group Inc BBB Standard and Poor's
Corporate Bonds Microsoft Corp AAA Standard and Poor's
Corporate Bonds Morgan Stanley BBB+ Standard and Poor's
Corporate Bonds Sempra Energy BBB+ Standard and Poor's
Corporate Bonds Williams Partners LP BBB Standard and Poor's
Mutual Funds Not Rated N/A
Municipal Bonds La Salle Cnty Sch Dist 141 Ottawa AA Standard and Poor's
Municipal Bonds Moline Ref Ser G Al Moody's
Municipal Bonds Carol Stream Park Dist Cabs Ser A A2 Moody's
Municipal Bonds Decatur II Build America Bonds A2 Moody's
Municipal Bonds Illinois ST Build America Bonds BBB-Standard and Poor's
L. Net Pension Liability
The components of the net pension liability of the Plan as of April 30, 2019, calculated in accordance with
GASB Statement No. 68, were as follows:
Total Pension Liability 49,686,589
Plan Fiduciary Net Position 27,153,629
City's Net Pension Liability 22,532,960
Plan Fiduciary Net Position as a Percentage
of the Total Pension Liability 54.65%
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
Page 41
NOTES TO FINANCIAL STATEMENTS (Continued)
The total pension liability above was determined by an actuarial valuation performed as of April 30, 2019
using the following actuarial methods and assumptions:
Actuarial Valuation Date May 1,2018
Actuarial Cost Method Entry Age Normal(Level%)
Assumptions
Inflation 2.50%
Salary Increases 4.00%-10.27%
Investment Rate of Return 7.00%
Asset Valuation Method Market Value
Mortality rates were based on the RP-2014 Mortality Table(BCHA) projected to 2017 using improvement
scale MP-2016. The other non-economic actuarial assumptions used in the May 30, 2018 valuation were
based on a review of assumptions in the L&A 2016 study for Illinois Police Officers.
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.
O. Changes in the Net Pension Liability
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability
A) B)A)-(B)
Balances at April 30,2018 47,388,840 $ 25,348,532 $ 22,040,308
Changes for the year:
Service Cost 964,573 $ 964,573
Interest on the Total Pension Liability 3,244,523 3,244,523
Differences Between Expected and Actual
Experience 165,685 165,685
Contributions-Employer 2,017,300 2,017,300)
Contributions-Employee 427,378 427,378)
Contributions-Other 1,221 1,221)
Net Investment Income 1,454,043 1,454,043)
Benefit Payments,including Refunds
of Employee Contributions 2,077,032) 2,077,032)
Administrative Expense 17,813) 17,813
Net Changes 2,297,749 $ 1,805,097 $ 492,652
Balances at April 30,2019 49,686,589 $ 27,153,629 $ 22,532,960
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:
Page 42
NOTES TO FINANCIAL STATEMENTS (Continued)
Current
1%Decrease Discount Rate 1%Increase
6.00% 7.00% 8.00%
Net Pension Liability 28,964,580 $ 22,532,960 $ 15,163,797
Q. Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related
to Pensions
For the year ended April 30, 2019, the City recognized pension expense of$2,542,040.At April 30, 2019,
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 145,698 $ 1,037,637 $ (891,939)
Assumption changes 1,283,903 824,998 458,905
Net difference between projected and
actual earnings on pension investments 627,831 607,574 20,257
Total deferred amounts to be recognized in
pension expense in future periods 2,057,432 $ 2,470,209 $ (412,777)
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
2020 530,411
2021 44,382
2022 334,902)
2023 211,037)
2024 277,562)
Thereafter 164,069)
412,777)
NOTE 14 - POST EMPLOYMENT BENEFIT COMMITMENTS
A. Retiree Insurance Plan
Plan Overview
In addition to the retirement plan described in Notes 12 and 13, 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.
Page 43
NOTES TO FINANCIAL STATEMENTS (Continued)
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)
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, 2018,the date of the latest actuarial valuation:
Active Employees 110
Inactive Employees Entitled to but not yet Receiving Benefits 0
Inactive Employees Currently Receiving Benefits 16
Total 126
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, 2019, and the total OPEB liability was
determined by an actuarial valuation as of May 1, 2018.
Actuarial Assumptions
The total OPEB liability in the May 1, 2018 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 3.21%
Salary Rate Increase 4.00%
Expected long-term
investment rate of return N/A
Page 44
NOTES TO FINANCIAL STATEMENTS (Continued)
Health Care Trend Insurance Year Trends Fiscal Year Trends
Pre- Pre-
Medicare Eligible Medicare Medicare Eligible Medicare
BCBS BCBS PPO- BCBS BCBS BCBS PPO- BCBS
Period HMO PPO HRA HMO Period HMO PPO HRA HMO
1)Known rate IY18-IY19 0%0) 0%0) 0%0) 0%(
1)
FY19-FY20 2.33% 2.33% 2.33% 2.33%
IY19-IY20 7.00% 7.00% 7.00% 7.00% FY20-FY21 6.92% 6.92% 6.92% 6,92%
IY20-IY21 6.75% 6.75% 6.75% 6.75% FY21-FY22 6.67% 6.67% 6.67% 6.67%
IY21-IY22 6.50% 6.50% 6.50% 6.50% FY22-FY23 6.42% 6.42% 6.42% 6.42%
IY22-IY23 6.25% 6.25% 6.25% 6.25% FY23-FY24 6.17% 6.17% 6.17% 6.17%
IY23-IY24 6.00% 6.00% 6.00% 6.00% FY24-FY25 5.92% 5.92% 5.92% 5.92%
IY24-IY25 5.75% 5.75% 5.75% 5.75% FY25-FY26 5.67% 5.67% 5.67% 5.67%
IY25-IY26 5.50% 5.50% 5.50% 5.50% FY26-FY27 5.42% 5.42% 5.42% 5.42%
IY26-IY27 5.25% 5.25% 5.25% 5.25% FY27-FY28 5.17% 5.17% 5.17% 5.17%
IY27-IY28 5.00% 5.00% 5.00% 5.00% FY28-FY29 5.00% 5.00% 5.00% 5.00%
Subsequent 5.00% 5.00% 5.00% 5.00% Subsequent 5.00% 5.00% 5.00% 5.00%
Retiree Contribution Trend Same as Health Care Trend
Mortality RP-2014 Combined Annuitant Mortality Table for males and females.
The Mortality Table reflects recent rates developed by the Society of Actuaries.
Disability Rates IMRF Employees:Rates from the December 31,2017 IMRF Actuarial Valuation Report
Police Employees:Rates from the City of McHenry Police Pension Fund Actuarial Valuation for the Year Beginning
May 1,2018
Starting Per Capita Costs Retiree Spouse
BCBS HMO $ 10,083 $11,369
BCBS PPO 12,941 14,593
PPO-HRA 10,757 12,130
Retiree Contributions Retiree Spouse
BCBS HMO $ 7,662 $ 8,640
BCBS PPO 9,834 11,089
PPO-HRA 8,174 9,218
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.
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.
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 3.21% is used, which is the S&P Municipal Bond 20-Year High-Grade Rate Index as of
April 30, 2019.
Page 45
NOTES TO FINANCIAL STATEMENTS (Continued)
Changes in the Total OPEB Liability
Increase/(Decrease)
Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability
a) b) a)-(b)
Balances at April 30,2018 5,862,540 $5,862,540
Changes for the year:
Service Cost 32,964 $32,964
Interest on Total OPEB Liability 209,775 209,775
Actuarial Experience 1,070,724) 1,070,724)
Assumption Changes 417,482 417,482
Benefit Payments 167,232) 167,232)
Other Changes 147,912 147,912
Net Changes 429,823) $429,823)
Balances at April 30,2019 5,432,717 $5,432,717
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:
Plan's Total OPEB Liability/(Asset)
1%Increase Valuation Rate 1%Decrease
4,078,269 $ 5,432,717 $ 7,582,546
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:
Plan's Total OPEB Liability/(Asset)
Healthcare Cost
1%Increase Valuation Rate 1%Decrease
7,535,275 $ 5,432,717 $ 4,070,588
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to
OPEB
For the fiscal year ended April 30, 2019, the City recognized OPEB expense of $189,858. At
April 30, 2019, 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 958,677 $ 958,677)
Changes of Assumptions 707,832 201,604 506,228
Total 707,832 $ 1,160,281 $ 452,449)
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 (9.56 years, active and retired) in the postretirement plan.
Page 46
NOTES TO FINANCIAL STATEMENTS (Continued)
Amounts reported as deferred outflows of resources related to OPEB will be recognized as future
OPEB expense as follows:
Net Inflows of
Year ending April 30 Resources
2020 52,881)
2021 52,881)
2022 52,881)
2023 52,881)
2024 52,881)
2025-2029 188,044)
452,449)
B. Social Security
All employees are covered under Social Security. The City paid the total required contribution for the
current fiscal year.
NOTE 15 - INTERFUND BALANCES AND TRANSFERS
Interfund balances at April 30, 2019 consisted of the following:
Due From Due To Amount
General Fund Water and Sewer Fund 49,985
Water Sewer Fund Internal Service Funds 4,470
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, 2019 consisted of the following:
Transfer From Transfer To Amount
Water Sewer Fund Nonmajor Governmental Funds $ 93,883
General Fund Nonmajor Governmental Funds 854,447
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 16 - 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
Page 47
NOTES TO FINANCIAL STATEMENTS (Continued)
loss of reduction and prevention procedures to be followed by the members. During fiscal year 2019
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, 2019, there were no significant adjustments in premiums based
on actual experience.
NOTE 17 - 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 totaling $1,163,300 and
Boone Creek Dredging for $416,000. For the Water and Sewer Fund there were outstanding costs for
the waste water treatment plant consolidation totaling $299,150.
NOTE 18 - CONTINGENCIES
There is no outstanding litigation which may have a materially adverse effect on the City's financial
position.
NOTE 19 - 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.
2018 EAV 659,844,715
X 8.625%
Debt Margin 56,911,607
Current Debt 7,285,500
Remaining Debt Margin 49,626,107
NOTE 20 - 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 six entities as of April 30, 2019 as follows:
Name of Eligibility Criteria Amount of Taxes
Abatement Type of Taxes and Mechanism Abated During
Agreement Abated of Abatement the Fiscal Year
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
Gary Lang Business Property between $450,000 and $750,000 annually shall be
District Development Sales taxes
rebated to Gary Lang, 60% of sales tax revenue generated $503,598
Agreement 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.
Page 48
NOTES TO FINANCIAL STATEMENTS (Continued)
Name of Eligibility Criteria Amount of Taxes
Abatement Type of Taxes and Mechanism Abated During
Agreement Abated of Abatement the Fiscal Year
1110 N Green LLC
TIF property Rebate 100% of the TIF Increment assessed up toRedevelopment
taxes 624,028. 65,982
Agreement
McHenry Commons Rebate 100% of base sales tax received by the State
Shopping Center
Sales taxes
attributable to the gross sales generated at the Hobby $ 28,705EconomicIncentiveLobbyStore. The total rebate payments cannot exceed
Agreement 677,500 or 20 years.
Rebate 50% of sales tax revenues generated by CVS
CVS Pharmacy Pharmacy in calendar years 2016 through 2020 and 25%of
Economic Incentive Sales taxes sales tax revenues generated by CVS Pharmacy in $ 43,477
Agreement calendar years 2021 through 2025. The total rebate
payments cannot exceed$175,000.
Central Big R Stores Rebate 100% of base sales tax received by the State
Inc. Economic Sales taxes
attributable to the gross sales generated at the Big R Store. $
79,281
Incentive Agreement The total rebate payments cannot exceed $400,000 and
end December 31, 2020.
3017 Route 120& Rebate 50% of base sales tax in calendar years 2017
Northwest Suburban through 2021 and 25% of base sales tax in calendar years
Auto Group Sales taxes 2022 through 2026 received by the State attributable to the $ 30,655
Economic Incentive gross sales generated at Northwest Suburban Auto Group.
Agreement The total rebate payments cannot exceed$150,000.
McHenry Donuts,
Rebate 100% of Non-Home Rule Sales taxes in 2017Inc. Economic Sales taxes
through 2026 up to$62,500. 9,707
Incentive Agreement
Sunnyside Auto
Rebate durinFinanceCompanypercentage g years 2017-2019 75% above
Economic Incentive
Sales taxes $66,212.Years 2020-2027 50%above$66,212.Years 2028• $ 22,310
Agreement
2036 25%above$66,212. Not to exceed$300,000.
Curt Ames DBA
Chain O'Lakes
TIF PropertyBrewingCompanyTaxes
Rebate 100%of the TIF Increment assessed up to$17,585. $ 938
Redevelopment
Agreement
Seth Wagner and
Associates Real Abate real estate taxes levied against the subject property
Estate Company Property Taxes
each year that the taxing body's property taxes exceed the $
6,340
Property Tax dollar amount from the 2014 base property tax year
Abatement 3,458.64)through December 31,2026.
Agreement
Boone Creek
Crossing LLC TIF Property
Redevelopment Taxes
Agreement Rebate 100%of the TIF Increment assessed up to$25,000
Page 49
NOTES TO FINANCIAL STATEMENTS (Continued)
Name of Eligibility Criteria Amount of Taxes
Abatement Type of Taxes and Mechanism Abated During
Agreement Abated of Abatement the Fiscal Year
e a e 507 OT oase and nome rue sales ax receive
above $1,666.67 per month by the State attributable to the
gross sales generated at McHenry BP sites at 5301 Bull
Graham Enterprise Valley Road and 5520 W. Elm Street. The total rebate
Inc Economic Sales taxes payments cannot exceed $1,000,000 and end December $
Incentive Agreement 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.
BPI, Break Parts Inc
LLC Property Tax
Property Taxes
10-year 100% abatement over and above the 2018 taxes $
Abatement commencing with the 2019 tax bill payable in 2020 through
Agreement the 2028 tax bill payable in 2029.
Rebate 50% of base and home rule sales tax received by
RR McHenry LLC the State attributable to the property at the NW corner of IL
Economic Incentive Sales taxes Route 120 and Chapel Hill Road, excluding the Riverside $
Agreement Chocolate Factory parcel. The total rebate payments
cannot exceed$1,000,000 and end after the 20th Sales Tax
Incentive Year.
NOTE 21 - CHANGE IN ACCOUNTING PRINCIPLE
Effective for the year ended April 30, 2019,the City has implemented GASB Statement No 89,Accounting
for Interest Cost Incurred Before the End of a Construction Period. This Statement requires that interest
cost incurred before the end of a construction period be recognized as an expense in the period in which
the cost is incurred. This standard is effective for reporting periods beginning after December 15, 2019.
However, the City has chosen to early implement GASB Statement No. 89 for the period ended
April 30, 2019.
Effective for the year ended April 30, 2019, the City has implemented GASB Statement No. 75,
Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions and GASB
Statement No. 85, Omnibus 2017. These Statements establish financial reporting standards for
postemployment benefits other than pension agreements offered by the City. These statements also
require additional disclosures about the postemployment benefits other than pensions offered by the City.
See Note 14 for additional information.
As a result of the City's implementation of GASB Statement No. 75, adjustments were made to net
position as outlined in Note 9.
Page 50
REQUIRED SUPPLEMENTARY INFORMATION
CITY OF MCHENRY,ILLINOIS
ILLINOIS MUNICIPAL RETIREMENT FUND
SCHEDULE OF CHANGES IN THE EMPLOYER'S NET PENSION
LIABILITY AND RELATED RATIOS
APRIL 30,2019
4/30/2019* 4/30/2018* 4/30/2017* 4/30/2016*
TOTAL PENSION LIABILITY
Service Cost 740,595 $ 707,796 $ 704,466 $ 652,882
Interest on Total Pension Liability 2,641,076 2,542,116 2,419,748 2,286,008
Differences Between Expected and Actual Experience 381,201 646,124 98,080) 86,269
Changes of Assumptions 1,199,530 (1,124,675) 136,959) 44,481
Benefit Payments,Including Refunds of Member Contributions 1,543,189) (1,393,390) (1,384,293) (1,144,016)
Net Change in Total Pension Liability 3,419,213 $ 1,377,971 $ 1,504,882 $ 1,925,624
Total Pension Liability-Beginning 35,615,648 34,237,677 32,732,795 30,807,171
Total Pension Liability-Ending 39,034,861 $ 35,615,648 $ 34,237,677 $ 32,732,795
PLAN FIDUCIARY NET POSITION
Contributions-Employer 918,212 $ 915,963 $ 844,878 $ 801,851
Contributions-Member 340,841 328,547 366,710 277,350
Net Investment Income 1,672,533) 4,871,136 1,840,322 133,288
Benefit Payments,Including Refunds of Member Contributions 1,543,189) (1,393,390) (1,384,293) (1,144,016)
Administrative Expenses 493,832 352,231) 293,436 161,598)
Net Change in Plan Fiduciary Net Position 1,462,837) $ 4,370,025 $ 1,961,053 $ (93,125)
Plan Net Position-Beginning 32,927,971 28,557,946 26,596,893 26,690,018
Plan Net Position-Ending 31,465,134 $ 32,927,971 $ 28,557,946 $ 26,596,893
City's Net Pension Liability 7,569,727 $ 2,687,677 $ 5,679,731 $ 6,135,902
Plan Fiduciary Net Position as a Percentage
of the Total Pension Liability 80.61% 92.45% 83.41% 81.25%
Covered-Valuation Payroll 7,538,685 $ 7,241,274 $ 6,362,027 $ 6,163,340
Employer's Net Pension Liability as a Percentage
of Covered-Valuation Payroll 100.41% 37.12% 89.28% 99.55%
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 those years for which information is available.
See Accompanying Independent Auditor's Report
Page 51
CITY OF MCHENRY,ILLINOIS
ILLINOIS MUNICIPAL RETIREMENT FUND
SCHEDULE OF EMPLOYER CONTRIBUTION
LAST TEN FISCAL YEARS
4/30/2019*4/30/2018*4/30/2017*4/30/2016*
Actuarially-Determined Contribution 918,212 $ 908,056 $ 844,877 $ 801,851
Contributions in Relation to Actuarially-Determined Contribution 918,212 915,963 844,878 801,851
Contribution Deficiency/(Excess) 7,907) $ 1) $
Covered Payroll 7,594,095 $ 7,469,026 $ 6,362,027 $ 6,163,340
Contributions as a Percentage of Covered Payroll 12.09% 12.26% 13.28% 13.01%
Notes to Schedule:
Actuarial Method and Assumptions Used on the Calculation of the 2018 Contribution Rate
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.
Actuarial Cost Method: Aggregate entry age=normal
Amortization Method: Level percentage of payroll,closed
Remaining Amortization Period: 25-year closed period
Asset Valuation Method: 5-year smoothed market;20%corridor
Wage Growth: 3.5%
Price Inflation: 2.75%,approximate;No explicit price inflation assumption is used in this valuation.
Salary Increases: 3.75%to 14.50%,including inflation
Investment Rate of Return: 7.50%
Retirement Age: Experience-based table of rates that are specific to the type of eligibility condition; last updated for the 2014 valuation pursuant to an experience
study of the period 2011-2013.
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-2014 Blue 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 active members,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 Table with
adjustments to match current IMRF experience.
Based on Valuation Assumptions used in the December 31,2016 actuarial valuation;note two year lag between valuation and rate setting.
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.
See Accompanying Independent Auditor's Report
Page 52
CITY OF MCHENRY,ILLINOIS
POLICE PENSION PLAN
SCHEDULE OF CHANGES IN THE EMPLOYER'S NET PENSION
LIABILITY AND RELATED RATIOS
APRIL 30,2019
TOTAL PENSION LIABILITY
4/30/2019 4/30/2018 4/30/2017 4/30/2016 4/30/2015
Service Cost 964,573 $ 969,843 $ 906,395 $ 948,282 $ 876,654
Interest 3,244,523 3,100,186 3,130,927 2,940,204 2,804,198
Differences Between Expected and Actual Experience 165,685 13,601) (1,315,850)531,862)300,710)
Changes in Assumptions 1,259,209) 4,137,023 391,028
Benefit Payments,Including Refunds of Member Contributions 2,077,032) (1,911,914) (1,890,931) (2,046,745) (1,868,756)
Net Change in Total Pension Liability 2,297,749 $ 2,144,514 $ (428,668) $ 5,446,902 $ 1,902,414
Total Pension Liability-Beginning 47,388,840 45,244,326 45,672,994 40,226,092 38,323,678
Total Pension Liability-Ending 49,686,589 $ 47,388,840 $ 45,244,326 $ 45,672,994 $ 40,226,092
PLAN FIDUCIARY NET POSITION
Contributions-Employer 2,017,300 $ 1,868,798 $ 1.521,914 $ 1,386,205 $ 1,295,101
Contributions-Member 427,378 409,415 397,515 513,111 381,363
Contributions-Other 1,221
Net Investment Income 1,454,043 2,225,784 2,041,694 228,847) 1,101,915
Benefit Payments,Including Refunds of Member Contributions 2,077,032) (1,911,914) (1,890,931) (2,046745) (1,868,756)
Administrative Expenses 17,813) 18,717) 41,164) 29:539) 36,845)
Net Change in Plan Fiduciary Net Position 1,805,097 $ 2,573,366 $ 2,029,028 $ (405,815) $ 872,778
Plan Net Position-Beginning 25,348,532 22,775,166 20,746,138 21,151,953 20,279,175
Plan Net Position-Ending 27,153,629 $ 25,348,532 $ 22,775,166 $ 20,746,138 $ 21,151,953
City's Net Pension Liability 22,532,960 $ 22,040,308 $ 22,469,160 $ 24,926,856 $ 19,074,139
Plan Fiduciary Net Position as a Percentage
of the Total Pension Liability 54.65% 53.49% 50.34% 45.42% 52.58%
Covered-Employee Payroll 4,224,124 $ 4,204,784 $ 4,082,315 $ 3,880,748 $ 3,791,467
Employer's Net Pension Liability as a Percentage
of Covered-Employee Payroll 533.44% 524.17% 550.40% 642.32% 503.08%
Annual Money-Weighted Rate of Return,
2019 2018 2017 2016 2015
Net of Investment Expenses 5.73% 9.60% 5.60% 1.53% 5.41%
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.
See Accompanying Independent Auditor's Report
Page 53
CITY OF MCHENRY,ILLINOIS
POLICE PENSION PLAN
SCHEDULE OF EMPLOYER CONTRIBUTION
LAST TEN FISCAL YEARS
4/30/2019 4/30/2018 4/30/2017 4/30/2016 4/30/2015
Actuarially-Determined Contribution 2,019,703 $ 1,874,219 $ 1,524,244 $ 1,387,374 $ 1,295,577
Contributions in Relation to Actuarially-Determined Contribution 2,017,300 1,868,798 1,521,914 1,386,205 1,295,101
Contribution Deficiency/(Excess) 2,403 $ 5,421 $ 2,330 $ 1,169 $ 476
Covered-Employee Payroll 4,324,167 $ 4,291,809 $ 4,082,315 $ 3,880,748 $ 3,791,467
Contributions as a Percentage of Covered-Employee Payroll 46.65% 43.54% 37.28% 35.72% 34.16%
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 thoseyearsforwhichinformationisavailable.
Page 54
See Accompanying Independent Auditor's Report
CITY OF MCHENRY
OTHER POST-EMPLOYMENT BENEFIT
SCHEDULE OF CHANGES IN THE EMPLOYER'S NET OPEB
LIABILITY AND RELATED RATIOS
APRIL 30, 2019
4/30/2019
TOTAL OPEB LIABILITY
Service Cost 32,964
Interest 209,775
Differences Between Expected and Actual Experience 1,070,724)
Benefit Payments 167,232)
Changes in Assumptions 417,482
Other Changes 147,912
Net Change in Total OPEB Liability 429,823)
Total OPEB Liability- Beginning 5,862,540
Total OPEB Liability- Ending 5,432,717
OPEB PLAN FIDUCIARY NET POSITION
Contributions -Employer
Contributions-Member
Contributions-Other
Net Investment Income
Benefit Payments
Administrative Expense
Net Change in OPEB Plan Net Position
OPEB Plan Net Position - Beginning
OPEB Net Position - Ending
District's Net OPEB Plan Liability 5,432,717
OPEB Plan Fiduciary Net Position as a Percentage
of the Total OPEB Liability 0.00%
Covered-Employee Payroll 8,796,233
Employer's Net OPEB Liability as a Percentage
of Covered-Valuation Payroll 61.76%
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.
Page 55
See Accompanying Independent Auditor's Report
CITY OF MCHENRY
OTHER POST-EMPLOYMENT BENEFIT
SCHEDULE OF EMPLOYER CONTRIBUTION
APRIL 30, 2019
4/30/2019
Actuarially-Determined Contribution N/A
Contributions in Relation to Actuarially-Determined Contribution
Contribution Deficiency/(Excess)N/A
Covered-Employee Payroll 8,796,233
Contributions as a Percentage of Covered-Employee Payroll 0.00%
Notes to Schedule:
There is no ADC or employer contribution in relation to the ADC, as the total OPEB liabilities are
currently an unfunded obligation.
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.
Page 56
See Accompanying Independent Auditor's Report
CITY OF MCHENRY, ILLINOIS
SCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES
IN FUND BALANCES-BUDGET AND ACTUAL
GENERALFUND
FOR THE YEAR ENDED APRIL 30,2019
Budgeted Amounts Actual
REVENUES
Original Final Amounts
Local Taxes
Property Tax 4,942,359 $ 4,942,359 $ 4,945,232
Intergovernmental
State Sales Tax 9,672,507 9,672,507 9,768,862
State Income Tax 2,585,834 2,585,834 2,792,465
State Replacement Tax 70,000 70,000 65,260
State Pull Tab/Games Tax 1,000 1,000 883
Inter Track Wagering Tax 52,000 52,000 46,192
State Telecommunications Tax 135,000 135,000 123,903
State Grants
61,068
Other Local Sources
Hotel/Motel Tax 175,500 175,500 174,538
Franchise Fees 345,000 345,000 345,056
Licenses and Permits 780,000 780,000 1,041,459
Fines and Forfeitures 443,300 443,300 413,137
Charges for Services 1,287,634 1,287,634 1,371,297
Interest 37,850 37,850 172,186
Miscellaneous
Rent 20,000 20,000 14,646
Royalties 65,000 65,000 500,000
Donations 10,000 10,000 4,450
Annexation Fees 20,000 20,000 203,679
Reimbursements 1,985,606 2,050,928 2,282,376
Special Events 70,034
Other Miscellaneous 33,000 33,000 70,408
Total Revenues 22,661,590 $ 22,726,912 $ 24,467,131
EXPENDITURES
Current
General Office
Administration 953,102 $ 974,102 $ 1,318,613
Elected Officials 100,179 102,039 82,854
Community Development 717,913 786,495 697,129
Finance Department 1,235,825 1,245,114 1,304,715
Human Resources 163,743 164,783 156,439
Economic Development 330,289 337,181 347,881
Public Safety
3,501,051 $ 3,609,714 $ 3,907,631
Police Commission 6,953 $ 6,953 $ 10,282
Police Department 9,659,665 9,659,665 9,653,036
Dispatch Center 2,482,908 2,482,908 2,372,076
Public Works
12,149,526 $ 12,149,526 $ 12,035,394
Administration 449,515 $ 449,515 $ 455,968
Street Department 3,051,644 3,096,492 3,265,185
Parks and Recreation
3,501,159 $ 3,546,007 $ 3,721,153
Parks and Recreation 2,276,912 $ 2,280,575 $ 2,276,981
2,276,912 $ 2,280,575 $ 2,276,981
Page 57
See Accompanying Independent Auditor's Report
CITY OF MCHENRY, ILLINOIS
SCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES
IN FUND BALANCES-BUDGET AND ACTUAL
GENERALFUND
FOR THE YEAR ENDED APRIL 30,2019
Budgeted Amounts Actual
Original Final Amounts
EXPENDITURES (Continued)
Capital Outlay
Public Safety
Police Department 19,650 $ 144,124 $ 211,045
Public Works
Street Department 1,406,500 1,406,500 808,554
Parks and Recreation
Parks and Recreation 31,099
Unallocated 331,000 600,570
1,426,150 $ 1,881,624 $ 1,651,268
Total Expenditures 22,854,798 $ 23,467,446 $ 23,592,427
EXCESS OR(DEFICIENCY) OF REVENUES
OVER EXPENDITURES 193,208) $ (740,534) $ 874,704
OTHER FINANCING SOURCES/(USES)
Transfers 772,493) $ (772,493) $ (854,447)
Proceeds from Note Payable 305,500
Sale of City Property 10,000 10,000 82,353
762,493) $ (762,493) $ (466,594)
NET CHANGE IN FUND BALANCE 955,701) $ (1,503,027) $ 408,110
FUND BALANCE-MAY 1,2018 8,763,550
FUND BALANCE-APRIL 30,2019 9,171,660
See Accompanying Independent Auditor's Report
Page 58
CITY OF MCHENRY, ILLINOIS
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
APRIL 30, 2019
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 30, 2018 and was amended June 4, 2018, July 10, 2018,
July 23, 2018, August 6, 2018, November 12, 2018, and December 17, 2018.
NOTE 2 - EXCESS OF EXPENDITURES OVER BUDGET
For the year ended April 30, 2019, the following fund presented as Required Supplementary Information
had expenditures that exceeded budget:
Excess of Actual
Fund Budget Actual Over Budget
General 23,467,446 $ 23,592,427 $ 124,981
Page 59
SUPPLEMENTAL FINANCIAL INFORMATION
CITY OF MCHENRY,ILLINOIS
COMBINING BALANCE SHEET-GENERAL FUND
APRIL 30,2019
Civil Revolving Total
General Annexation Alarm Board Band Defense Loan Tourism General
ASSETS
Fund Fund Fund Fund Fund Fund Fund Fund
Cash and Cash Equivalents 5,174,039 $ 999,375 $ 598,549 $ 13,554 $ 3,657 $ 112,661 $ 261,218 $ 7,163,053
Investments 139,881 20,049 1,569 3,647 16,380 181,526
Prepaid Expenses 75,438 75,438
Receivables(Net of Allowance for
Estimated Uncollectible Amounts)
Accounts Receivable-Billed 481,317 6,450 6,987 38,337 533,091
Accounts Receivable-Unbilled 66,999 34,560 13,081 114,640
Property Taxes 4,962,485 4,962,485
Accrued Interest 597 86 7 16 70 776
Due from Other Governmental Units 2,835,694 2,835,694
Cable Franchise Fee Receivable 114,246 114,246
TOTALASSETS 13,850,696 $ 1,025,960 $ 640,096 $ 15,130 $ 3,657 $ 154,661 $ 290,749 $ 15,980,949
LIABILITIES
Accounts Payable and Accrued Expenses 1,081,705 $52,690 $33,365 $ 28,268 $ 1,196,028
Due to Other Governmental Units 99,240 99,240
Due to Other Funds 49,985 49,985
Unearned Revenue 501,551 501,551
TOTAL LIABILITIES 1,633,241 $ 99,240 $ 52,690 $ 33,365 $ 28,268 $ 1,846,804
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue-Property Taxes 4,962,485 $4,962,485
TOTAL DEFERRED INFLOWS OF RESOURCES $ 4,962,485 $ 4,962,485
FUND BALANCES
Nonspendable 75,438 $ 75,438
Assigned for:
Alarm 587,406 587,406
Tourism 262,481 262,481
Band 15,130 15,130
Capital Projects 926,720 926,720
Revolving Loan 121,296 121,296
Civil Defense 3,657 3,657
Unassigned 7,179,532 7,179,532
TOTAL FUND BALANCES 7,254,970 $ 926,720 $ 587,406 $ 15,130 $ 3,657 $ 121,296 $ 262,481 $ 9,171,660
TOTAL LIABILITIES,DEFERRED INFLOWS OF
RESOURCES,AND FUND BALANCES 13,850,696 $ 1,025,960 $ 640,096 $ 15,130 $ 3,657 $ 154,661 $ 290,749 $ 15,980,949
Page 60
See Accompanying Independent Auditor's Report
CITY OF MCHENRY,ILLINOIS
FUND FINANCIAL STATEMENTS
COMBINING SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCES
GENERALFUND
FOR THE YEAR ENDED APRIL 30,2019
Alarm Civil Revolving Total
Annexation Board Band Defense Loan Tourism General
General Fund Fund Fund Fund Fund Fund Fund Fund
REVENUES
Local Taxes
Property Tax 4,945,232 $ 4,945,232
Intergovernmental
State Sales Tax 9,768,862 9,768,862
State Income Tax 2,792,465 2,792.465
State Replacement Tax 65,260 65,260
State Pull Tab/Games Tax 883 863
Inter Track Wagering Tax 46,192 46,192
State Telecommunications Tax 123,903 123,903
State Grants 61,068 61,068
Other Local Sources
Hotel/Motel Tax 2 174,536 174,538
Franchise Fees 345,056 345,056
Licenses and Permits 1,041,459 1,041,459
Fines and Forfeitures 413,137 413,137
Charges for Services 1,166,073 205,224 1,371,297
Interest 165,030 1,269 2,060 32 2,156 1,639 172,186
Miscellaneous
Rent 14,646 14,646
Royalties 500,000 500,000
Donations 4,450 4,450
Annexation Fees 203,679 203,679
Reimbursements 2,282,376 2,282,376
Special Events 70,034 70,034
Other Miscellaneous 70,408 70,408
Total Revenues 23,306,500 $ 704,948 $ 2 77,284 $32 $ 2 $ 2,156 $ 246,209 $ 24,467,131
EXPENDITURES
Current
General Office
Administration 1,079,979 $ 150,260 $ 88,374 $ 1,318,613
Elected Officials 82,854 82,854
Community Development 697,129 697,129
Finance Department 1,304,715 1,304,715
Human Resources 156,439 156,439
Economic Development 347,881 347,881
3,668,997 $ 150,260 $ 88,374 $ 3,907,631
Public Safety
Police Commission 10,282 $10,282
Police Department 9,574,095 78,331 610 9,653,036
Dispatch Center 2,372,076 2,372,076
11,956,453 $ 88,331 $ 610 $ 12,035,394
Public Works
Administration 455,968 $ 455,968
Street Department 3,265,185 3,265,185
3,721,153 $3,721,153
Parks and Recreation
Parks and Recreation 2,263,096 $ 13,885 $ 2,276,981
2,263,096 $13,885 $ 2,276,981
See Accompanying Independent Auditor's Report
Page 61
CITY OF MCHENRY,ILLINOIS
FUND FINANCIAL STATEMENTS
COMBINING SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCES
GENERALFUND
FOR THE YEAR ENDED APRIL 30,2019
Alarm Civil Revolving Total
Annexation Board Band Defense Loan Tourism General
EXPENDITURES(Continued)
General Fund Fund Fund Fund Fund Fund Fund Fund
Capital Outlay
Public Safety
Police Department 211,045 $ 211,045PublicWorks
Street Department 808,554 808,554ParksandRecreation
Parks and Recreation 31,099 31,099Unallocated
600,570 600,570
1,050,698 $600,570 $ 1,651,268
Total Expenditures 22,660,397 $ 150,260 $ 78,331 $ 13,885 $ 610 $688,944 $ 23,592,427
EXCESS OR(DEFICIENCY)OF REVENUES
OVER EXPENDITURES 646,103 $ 554,688 $ 128,953 $ (13,853) $ (608) $ 2,156 $ (442,735) $ 874,704
OTHER FINANCING SOURCES/(USES)
Transfers 740,447) $ (35,000) $12,000 $ 8,000 $99,000) $ (854,447LoanProceeds
305,500 305,500SaleofCityProperty82,353 82,353
658,094) $ (35,000) $12,000 $ 8,000 $206,500 $ (466,594)
NET CHANGE IN FUND BALANCE 11,991) $ 519,688 $ 128,953 $ (1,853) $ 7,392 $ 2,156 $ (236,235) $ 408,110
FUND BALANCE-MAY 1,2018 7,266,961 407,032 458,453 16,983 3,735)119,140 498,716 8,763,550
FUND BALANCE-APRIL 30,2019 7,254,970 $ 926,720 $ 587,406 $ 15,130 $ 3,657 $ 121,296 $ 262,481 $ 9,171,660
Page 62
See Accompanying Independent Auditor's Report
CITY OF MCHENRY,ILLINOIS
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS
APRIL 30,2019
Special Special
Service Service Total
Recreation Capital Capital Debt Motor Developer Area#4- Area#6- OtherPageantAuditCenterImprovementsEquipmentServiceFuelTaxDonationsTIFLakewoodHuntersvilleGovernmentalFundFundFundFundFundFundFundFundFundFundFundFunds
ASSETS
Cash and Cash Equivalents 1,818 $ 12,330 $ 181,723 $ 347,879 $ - $ - $ 1,052.639 $ 1,329,900 $ - $ _ $ 2,926,289DepositwithPayingAgent586,955 6,Investments 497 374,477 99,097 23,501 16,208 63,435 399 577,614
955
Inventory 8,661 8,661Receivables(Net of Allowance for
Estimated UncollectibleAmounts)
Accounts Receivable-Billed
5,400 5,400PropertyTaxes26,433 636,964 16,847 680,244AccruedInterest21,599 1,834 100 69 271 2 3,877DuefromOtherGovernmentalUnits59,746 59,746GrantsReceivable1738172,702 176,519
TOTALASSETS 1,818 $ 39,262 $ 557,799 $ 622,627 $ 23,601 $ 603,232 $ 1,121,046 $ 1,401,708 $ 636,964 $ 17,248 $ 5,025,305
LIABILITIES
Accounts Payable and Accrued Expenses $ 150 $ - $ 29,256 $ 42,499 $ - $ 318 $ - $ 136,273 $ 208,496Overdrafts23,411 235,902 45,619 338 179,115 484,385DuetoOtherGovernmentalUnits
61,663 61,663UnearnedRevenue-Fees 2,850 369
3,219TOTALLIABILITIES3,000 $ - $ 29,625 $ 42,499 $ 23,411 $ 236,220 $ 197,936 $ 45,619 $ 338 $ 179,115 $ 757,763
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue-Property Taxes 26,433 $ - $ - $ - $ _ $ _ $ - $ 636,964 $ 16,847 $ 680,244UnavailableRevenue-Stale Taxes
5,234 5,234UnavailableRevenue-Rent
2,400 2,400TOTALDEFERREDINFLOWSOFRESOURCES $ - $ 26,433 $ - $ _ $ _ $ _ $ 5,234 $ 2,400 $ 636,964 $ 16,847 $ 687,878
FUND BALANCES
Restricted for:
Capital Projects
779,711 $ - $ 779,711SpecialServiceAreas
20 20-Highways and Streets
180g47 180,820Assignedfor:
Audit 12,829
12,829
65
Highways and Streets
934,9 934,965CapitalProjects580,128
C 421,661 1,001,789CapitalEquipment190190ParksandRecreation528,174
528,174DebtService
Special Service Areas
367,012 367,01
43 43Unassigned1,182) 45,619) 179,115) (225,916)TOTAL FUND BALANCES 1,182) $ 12,829 $ 528,174 $ 580,128 $ 190 $ 367,012 $ 1,115,812 $ 1,201,372 $ (45,619) $ 63 $ (179,115) $ 3,579,664
TOTAL LIABILITIES,DEFERRED INFLOWS
OF RESOURCES,AND FUND BALANCES 1,818 $ 39,262 $ 557,799 $ 622,627 $ 23,601 $ 603,232 $ 1,121,046 $ 1,401,708 $ 636,964 $ 17,248 $ 5,025,305
Page 63
See Accompanying Independent Auditor's Report
CITY OF MCHENRY,ILLINOIS
COMBINING SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCES
OTHER GOVERNMENTAL FUNDS
FOR THE YEAR ENDED APRIL 30,2019
Special Special
Service Service Total
Recreation Capital Capital Debt Motor Developer Area#4- Area#6- Other
Pageant Audit Center Improvements Equipment Service Fuel Tax Donations TIF Lakewood Huntersville Governmental
Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund Funds
REVENUES
Loral Taxes
Property Tax 26,397 $ - $ - $ - $ - $ - $ - $ 489,034 $ 16,851 $ - $ 532,282
Intergovernmental
State Motor Fuel Tax 716,649 716,649
Federal Grants 173,817 2,702 176,519
Bond Interest Rebates 20,262 20,262
Other Local Sources
Charges for Services 849,983 849,983
Interest 1 36 2,294 18,569 70 284 18,884 7,143 38 13 47,332
Miscellaneous
Rent 17,376 40,963 58,339
Concessions 62 62
Donations 578,490 578,490
Reimbursements 22,824 1,000 23,824
Other Miscellaneous 2,666 17,540 20,206
2,667 $ 26,433 $ 869,715 $ 215,210 $ 70 $ 20,546 $ 735,533 $ 646,838 $ 490,072 $ 16,864 $ 3,023,948
EXPENDITURES
Current
General Office 2,420 $ 27,183 $ - $ - $ - $ - $ - $ - $ 66,920 $ - $ - $ 96,523
Public Works 163,445 163,445
Parks and Recreation 633,061 188,808 821,869
Capital Outlay 416,431 686,127 207,000 328,995 175 1,638,728
Debt Service
Principal 1,445,000 1,445,000
Interest and Fees 202,718 202,718
2,420 $ 27,183 $ 1,049,492 $ 686,127 $ 1,647,718 $ 370,445 $ 517,803 $ 67,095 $ 4,368,283
EXCESS OR(DEFICIENCY)OF REVENUES
OVER EXPENDITURES 247 $ (750) $ (179,777) $ (470,917) $ 70 $(1,627,172) $ 365,088 $ 129,035 $ 422,977 $ 16,864 $ - $ (1,344,335)
OTHER FINANCING SOURCES/(USES)
Transfers 52,102) 1,636,744 (397,930) 221,535) (16,847) 948,330
NET CHANGE IN FUND BALANCES 247 $ (750) $ (231,879) $ (470,917) $ 70 $ 9,572 $ (32,842) $ 129,035 $ 201,442 $ 17 $ - $ (396,005)
FUND BALANCES-MAY 1,2018 1,429) 13,579 760,053 1,051,045 120 357,440 1,180,193 1,072,337 (247,061) 46 (179,115) 4,007,208
FUND BALANCE ADJUSTMENT(Note 9) 31,539)31,539)
FUND BALANCES-APRIL 30,2019 1,182) $ 12,829 $ 528,174 $ 580,128 $ 190 $ 367,012 $ 1,115,812 $ 1,201,372 $ (45,619) $ 63 $ (179,115) $ 3,579,664
See Accompanying Independent Auditor's Report
Page 64
CITY OF MCHENRY,ILLINOIS
COMBINING SCHEDULE OF NET POSITION
WATER AND SEWER FUNDS
APRIL 30,2019
Capital Utility Marina Total
Water/Sewer Development Improvements Operations Water and
ASSETS
Fund Fund Fund Fund Sewer Funds
Current Assets
Cash and Cash Equivalents 4,585,030 $ 1,340,731 $363,479 $ 6,289,240DepositwithPayingAgent
Investments 419,667 254,562 479,149 98,051 1,251,429PrepaidExpenses34,954 34,954Receivables(Net of Allowance for
Estimated Uncollectible Amounts)
Accounts Receivable-Billed 122,937 122,937AccountsReceivable-Unbilled 1,189,825 1,189,825AccruedInterest2,822 1,478 1,238 539 6,077DuefromOtherGovernmentalUnits97,714 97,714DuefromOtherFunds97144,544 45,515InterestRebateReceivable21,353 21,353
6,475,273 $ 1,641,315 $ 480,387 $ 462,069 $ 9,059,044
Non-Current Assets
Capital Assets
Land 2,208,117 $ - $ - $ - $ 2,208,117Buildings2,736,098 2,736,098SystemsandEquipment68,620,399 68,620,399Vehicles1,938,817 1,938,817ConstructioninProgress31,670,530 4,884,471 36,555,001Less: Accumulated Depreciation 33,461,552) 33,461,552)
73,712,409 $ - $ 4,884,471 $ 78,596,880
TOTALASSETS 80,187,682 $ 1,641,315 $ 5,364,858 $ 462,069 $87,655,924
DEFERRED OUTFLOWS OF RESOURCES
Pension Expense/Revenue-IMRF 1,303.020 $ - $ - $ - $ 1,303,020OPEBExpense/Revenue 33,846 33,846TOTALDEFERREDOUTFLOWSOFRESOURCES1,336,866 $ 1,336,866
LIABILITIES
Current Liabilities
Accounts Payable and Accrued Expenses 489,511 $ 175,000 $ 664,511Overdraft1,152,538 1,152,538
Security Deposits Held 3,000 3,000UnearnedRevenue156,675 156,675AccruedInterest310,283 310,283IEPALoanPayable-Current 1,395,506 1,395,506BondsPayable-Current 371,571 371,571
2,723,546 $ 3,000 $ 1,327,538 $ 4,054,084
Non-Current Liabilities
Compensated Absences 87,658 $ 87,658IMRFNetPensionLiability1,787,082 1,787,082TotalOPEBLiability259,773 259,773IEPALoanPayable(Net of Current Portion Shown Above) 30,087,839 30,087,839BondsPayable(Net of Current Portion Shown Above) 5,094,089 5,094,089
37,316,441 $37,316,441
TOTAL LIABILITIES 40,039,987 $ 3,000 $ 1,327,538 $ 41,370,525
DEFERRED INFLOWS OF RESOURCES
Pension Revenue/Expense-IMRF 560,144 $ - $560,144OPEBRevenue/Expense 55,480 55,480TOTALDEFERREDINFLOWSOFRESOURCES615,624 $ 615,624
NET POSITION
Net Investment in Capital Assets 36,763,404 $ - $ 4,884,471 $ - $41,647,875
Unrestricted/(Deficit) 4,105,533 1,638,315 (847,151) 462,069 5,358,766
TOTAL NET POSITION 40,868,937 $ 1,638,315 $ 4,037,320 $ 462,069 $47,006,641
Page 65
See Accompanying Independent Auditor's Report
CITY OF MCHENRY, ILLINOIS
COMBINING SCHEDULE OF REVENUES, EXPENSES,AND CHANGES IN NET POSITION
WATER AND SEWER FUNDS
FOR THE YEAR ENDED APRIL 30, 2019
Capital Utility Marina Total
Water/Sewer Development Improvements Operations Water and
Fund Fund Fund Fund Sewer Funds
OPERATING REVENUES
Charges for Services
Customer Fees 4,851,140 $ 424,393 $ 5,275,533
Capital Fees 396,783 396,783
Debt Service Fees 2,615,897 2,615,897
Penalties 151,313 151,313
Water Meter Sales 25,075 25,075
Other 6,474 6,474
8,046,682 $ 424,393 $ 8,471,075
OPERATING EXPENSES
Water Department
Personnel Salaries 478,315 $ 478,315
Miscellaneous Personnel Expenses 214,130 214,130
Other Operating Expenses 742,494 742,494
Depreciation 532,302 532,302
Sewer Department
Personnel Salaries 645,519 645,519
Miscellaneous Personnel Expenses 329,488 329,488
Other Operating Expenses 1,313,990 30,651 1,344,641
Depreciation 1,239,791 1,239,791
Utility Work Department
Personnel Salaries 605,615 605,615
Miscellaneous Personnel Expenses 270,728 270,728
Other Operating Expenses 215,433 215,433
6,587,805 $ 30,651 $ 6,618,456
OPERATING INCOME/(LOSS) 1,458,877 $ 424,393 $ 30,651) $ 1,852,619
NON-OPERATING REVENUE/(EXPENSE)
Interest Income 57,410 $ 1,862 $ 28,763 $ 679 $ 88,714
Rental Income 30,000 46,465 76,465
Interest Rebate Income 58,696 58,696
Interest and Fees 1,551,943) 1,551,943)
Amortization 3,429) 3,429)
Gain/(Loss)on Sale of Fixed Asset 3,435 3,435
Donated Public Improvements-Water 577,430 577,430
Donated Public Improvements-Sewer 810,593 810,593
17,808) $ 1,862 $ 28,763 $ 47,144 $ 59,961
INCOME/(LOSS) BEFORE CONTRIBUTIONS
AND TRANSFERS 1,441,069 $ 426,255 $ 28,763 $ 16,493 $ 1,912,580
TRANSFERS(TO)/FROM OTHER FUNDS 110,730) 16,847 93,883)
CHANGE IN NET POSITION 1,330,339 $ 426,255 $ 45,610 $ 16,493 $ 1,818,697
NET POSITION-MAY 1, 2018 39,818,650 1,212,060 3,991,710 445,576 45,467,996
NET POSITION ADJUSTMENT(Note 9)280,052) 280,052)
NET POSITION-APRIL 30, 2019 40,868,937 $ 1,638,315 $ 4,037,320 $ 462,069 $ 47,006,641
See Accompanying Independent Auditor's Report
Page 66
CITY OF MCHENRY, ILLINOIS
COMBINING SCHEDULE OF NET POSITION
INTERNAL SERVICE FUNDS
APRIL 30, 2019
Employee Risk Information Total
Insurance Management Technology Internal Service
ASSETS
Fund Fund Fund Funds
Current Assets
Cash and Cash Equivalents 643,951 $ 131,127 $ 775,078Investments
8,195 8,195PrepaidExpenses70,288 70,288Receivables(Net of Allowance for
Estimated Uncollectible Amounts)
Accounts Receivable-Billed 715 715
Accrued Interest 35 35
Due from Other Funds 4,470 4,470
Non-Current Assets
75,473 $ 643,951 $ 139,357 $ 858,781
Capital Assets
Systems and Equipment 486,378 $ 486,378Less: Accumulated Depreciation 363,556) 363,556)
122,822 $ 122,822
TOTALASSETS 75,473 $ 643,951 $ 262,179 $ 981,603
DEFERRED OUTFLOWS OF RESOURCES
Pension Expense/Revenue-IMRF 107,053 $ 107,053
OPEB Expense/Revenue 2,781 2,781
TOTAL DEFERRED OUTFLOWS OF RESOURCES 109,834 $ 109,834
LIABILITIES
Current Liabilities
Accounts Payable and Accrued Expenses 65 $ 65 $8,353 $8,483Overdrafts87,110 87,110
Unearned Revenue 70,649 70,649
Non-Current Liabilities
157,824 $ 65 $8,353 $ 166,242
Compensated Absences 6,749 $6,749
IMRF Net Pension Liability 186,217 186,217
Total OPEB Liability 21,342 21,342
214,308 $ 214,308
TOTAL LIABILITIES 157,824 $ 65 $ 222,661 $ 380,550
DEFERRED INFLOWS OF RESOURCES
Pension Revenue/Expense- IMRF 46,020 $ 46,020OPEBRevenue/Expense 4,558 4,558
DEFERRED INFLOWS OF RESOURCES 50,578 $ 50,578
NET POSITION
Net Investment in Capital Assets 122,822 $ 122,822
Unrestricted/(Deficit) 82,351) 643,886 24,048) 537,487
TOTAL NET POSITION 82,351) $ 643,886 $ 98,774 $ 660,309
Page 67
See Accompanying Independent Auditor's Report
CITY OF MCHENRY, ILLINOIS
COMBINING SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED APRIL 30, 2019
Employee Risk Information Total
Insurance Management Technology Internal Service
OPERATING REVENUES
Fund Fund Fund Funds
Charges for Services 3,146,328 $ 695,175 $ 633,415 $ 4,474,918
3,146,328 $ 695,175 $ 633,415 $ 4,474,918
OPERATING EXPENSES
Personnel Salaries 145,423 $ 145,423
Miscellaneous Personnel Expenses 3,205,456 62,848 3,268,304
Other Operating Expenses 776 788,267 468,752 1,257,795
Depreciation 33,187 33,187
3,206,232 $ 788,267 $ 710,210 $ 4,704,709
OPERATING INCOME/(LOSS) 59,904) $ (93,092) $ (76,795) $ (229,791)
NON-OPERATING REVENUE/(EXPENSE)
Interest Income 497 1,121 277 1,895
CHANGE IN NET POSITION 59,407) $ (91,971) $ (76,518) $ (227,896)
NET POSITION-MAY 1,2018 22,944) 735,857 198,323 911,236
NET POSITION ADJUSTMENT(Note 8) 23,031) 23,031)
NET POSITION-APRIL 30, 2019 82,351) $ 643,886 $ 98,774 $ 660,309
See Accompanying Independent Auditor's Report
Page 68
CITY OF MCHENRY, ILLINOIS
COMBINING SCHEDULE OF NET POSITION
AGENCY FUNDS
APRIL 30, 2019
Retained
Developmental Personnel Total
Escrow Escrow Agency
Fund Fund Funds
ASSETS
Current Assets
Cash and Cash Equivalents 30,114 $ 12,948 $ 43,062
TOTAL ASSETS 30,114 $ 12,948 $ 43,062
LIABILITIES
Current Liabilities
Accounts Payable and Accrued Expenses $ 12,948 $ 12,948
Due to Depositors 30,114 30,114
TOTAL LIABILITIES 30,114 $ 12,948 $ 43,062
TOTAL NET POSITION
Page 69
See Accompanying Independent Auditor's Report
CITY OF MCHENRY, ILLINOIS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCES-BUDGET AND ACTUAL
SPECIAL REVENUE FUND-TAX INCREMENT FINANCING FUND
FOR THE YEAR ENDED APRIL 30, 2019
Budgeted
Amounts
Original Actual
REVENUES
and Final Final Amounts
Local Taxes
Property Tax 400,000 $400,000 $489,034
Intergovernmental
Other Local Sources
Interest 38
Miscellaneous
Reimbursements 1,000 1,000 1,000
Total Revenues 401,000 $401,000 $490,072
EXPENDITURES
Current
General Office 62,000 $ 62,000 $ 66,920
Capital Outlay 20,000 $ 20,000 $ 175
Total Expenditures 82,000 $ 82,000 $ 67,095
EXCESS OR (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 319,000 $319,000 $422,977
OTHER FINANCING SOURCES/(USES)
Transfers 221,535) 221,535) 221,535)
NET CHANGE IN FUND BALANCE 97,465 $ 97,465 $201,442
FUND BALANCE-MAY 1,2018 247,061)
FUND BALANCE-APRIL 30, 2019 45,619)
See Accompanying Independent Auditor's Report
Page 70
CITY OF McHENRY,ILLINOIS
SUMMARY OF FEDERAL GRANTS
FOR THE YEAR ENDED APRIL 30,2019
REVENUE REVENUE
FEDERAL GRANTOR/ PROGRAM RECOGNIZED EXPENSES RECOGNIZED EXPENSES GRANT GRANT
PASS-THROUGH GRANTOR OR AWARD 5/1/2018 to 5/1/2018 to INCEPTION TO INCEPTION TO RECEIVABLE UNEARNED
PROGRAM TITLE AMOUNT 4/30/2019 4/30/2019 4/30/2019 4/30/2019 4/30/2019 4/30/2019
Federal Highway Administration/Illinois Department of Transportation
Illinois Transportation Enhancements Program N/A 176,519 $ 176,519 $ 314,318 $ 314,318 $ 176,519 $
Total Federal Financial Assistance 176,519 $ 176,519 $ 314,318 $ 314,318 $ 176,519 $
Unaudited
Page 71
CITY OF McHENRY,ILLINOIS
SUMMARY OF STATE GRANTS
FOR THE YEAR ENDED APRIL 30,2019
REVENUE REVENUE
PROGRAM RECOGNIZED EXPENSES RECOGNIZED EXPENSES GRANT GRANT
OR AWARD 5/1/2018 TO 5/1/2018 TO INCEPTION TO INCEPTION TO RECEIVABLE UNEARNEDAMOUNT4/30/2019 4/30/2019 4/30/2019 4/30/2019 4/30/2019 4/30/2019
Illinois Law Enforcement Training Standards Board
Camera Grant 67,500 $ 61,068 $ 61,068 $ 61,068 $ 61,068 $
Page 72
Unaudited
r•^'y John R. Birk, Chief of Police
McHenry Municipal Center
333 Green Street
McHenry, Illinois 60050
Phone: (815) 363-2200
Fax: (815) 363-2149
McHenr jbirk@ci.mchenry.il.us
COUNCIL DISCUSSION ITEM
DATE: November 181", 2019
TO: Mayor and City Council
FROM: John R. Birk, Chief of Police
RE: Discussion on Allowing Non-Highway Vehicles on Roadways in McHenry
Introduction:
City Staff has received numerous inquiries from within the community about an ordinance
allowing non-highway vehicles to be operated on City roadways. The State of Illinois gives
municipalities the autonomy to allow these types of vehicles on their local roadways. As other
communities within the State and McHenry County (including Johnsburg) have passed
ordinances to allow these vehicles on their local roadways, interest in McHenry has increased.
Within this document staff has provided Council with the information related to allowing non-
highway vehicles to be operated on local roadways within McHenry. Staff impartially provides
options and ask Council for direction as to which option they would like Staff to take. Once
direction is provided, if needed Staff will work on drafting the appropriate ordinances needed to
take action.
Overview:
The following information is provided to use as points of discussion on this topic so that Council
in the end can provide Staff with clear directions.
As defined by the Illinois Complied Statutes:
Golf Cart: A vehicle specifically designed and intended for the purposes of transporting one or
more persons and their golf clubs or maintenance equipment while engaged in the playing of
golf, supervising the play of golf, or maintaining the condition of the grounds on a public or
private golf course. 625 ILCS 511-123.9
Recreational Off-Highway Vehicle: Any motorized off-highway device designed to travel
primarily off-highway, 64 inches or less in width, having a manufacturer's dry weight of 2,000
pounds or less, traveling on 4 or more non-highway tires, designed with a non-straddle seat and a
steering wheel for steering control, except equipment such as lawnmowers (625 ILCS 5/1-168.8).
The common term for these type of vehicles is "UTV" (utility task vehicle) or "side by side"
The City of McHenry is dedicated to providing the citizens, businesses and visitors of McHenry with the highest
quality of programs and services in a customer-oriented, efficient and fiscally responsible manner.
Off-highway vehicles (traditional 3 or 4 wheelers) and off-highway motorcycles (traditional dirt
bikes) are not further defined for this discussion because staff does not support these vehicles for
use on roadways.
Under 625 ILCS 5/11-1426.1, a municipality may authorize, by ordinance or resolution, the
operation of golf carts, UTVs or side-by-sides on roadways under its jurisdiction if the unit of
local government determines that the public safety will not be jeopardized. The unit of local
government may restrict the types of non-highway vehicles that are authorized to be used on its
streets.
Before permitting the operation of golf carts, UTVs or side-by-sides on its roadways, a
municipality must consider the volume, speed, and character of traffic on the roadway and
determine whether these non-highway vehicles may safely travel on or cross the roadway. Upon
determining that these non-highway vehicles may safely operate on a roadway and the adoption
of an ordinance or resolution by a municipality, appropriate signs must be posted.
No golf cart, UTV or side-by-side if approved may be operated on a roadway unless, at a
minimum, it has the following: brakes, a steering apparatus, tires, a rearview mirror, red
reflectorized warning devices in the front and rear, a slow moving emblem (as required of other
vehicles in Section 12-709 of the Illinois Vehicle Code) on the rear of the non-highway vehicle,
a headlight that emits a white light visible from a distance of 500 feet to the front, a tail lamp that
emits a red light visible from at least 100 feet from the rear, brake lights, and turn signals.
If the operation of these specific non-highway vehicles is authorized, they may be operated only
on streets where the posted speed limit is 35 miles per hour or less. This limit can be further
restricted by local ordinance such as 25 mph. This speed limit restriction does not prohibit these
vehicle from crossing a road or street at an intersection where the road or street has a posted
speed limit of more than 35 miles per hour but the City can further restrict crossings as well such
as controlled intersections or four way stop intersections. In addition the City can restrict the use
to certain geographical areas within the City as well.
Currently, the following McHenry County communities allow the operation of non-highway
vehicles on their local roadway:
Johnsburg: Golf Carts, UTVs and side-by-sides only
Huntley: Golf Carts only
Fox River Grove: Golf Carts only
Staff could identify the only risk to our community being general traffic safety. Illinois law only
allows the operation of non-highway vehicles on roadways by those holding a valid driver's
license and having valid insurance. Drivers need to obey all State traffic laws and local
ordinances, including those falling under the Driving Under the Influence statues.
In the last five years, the McHenry Police Department has investigated two incidents in which
persons operated non-highway vehicles on City roadways.
1. 08/15/2018 — 35 year old subject was driving a golf cart in the Country Club subdivision,
fell out of the cart and suffered a head injury. An investigation was conducted and the
driver was charged with Driving Under the Influence of Alcohol.
2. 09/21/2019 — a 31 year old subject was hanging on the back of a golf cart in the Country
Club subdivision when they fell off the cart and struck their head on the roadway. The
driver of the cart was cited for operating a non-highway vehicle on the roadway.
In speaking with our neighboring community of Johnsburg, the police department reported no
significant issues since they legalized the use in 2014. Currently Johnsburg has over 150
registered golf carts and UTVs in their community.
Licensing:
Before operating a non-highway vehicle on a City roadway, an operator would be required to
obtain a local annual registration which includes a vehicle inspection by the McHenry Police
Department. The inspection would ensure the vehicle has all the equipment required by State
statue/local ordinance and also is in compliance with the provisions of the Illinois Compiled
Statutes regarding minimum liability insurance.
Once all the requirements are met, the applicant would pay a licensing fee (renewable yearly) to
the City and a sticker will to be affixed to the vehicle.
As part of the application process, the applicant would release the City, its elected officials and
its employees and agree to indemnify and hold them harmless from any and all claims resulting
from the operation of the non-highway vehicle on public streets.
Proposed Options: Staff has proposed the following options for Council to consider when
providing Staff direction on this topic.
Option 1: Maintain status quo and prohibit the operation of all non-highway vehicles on
roadways within the corporate limits of McHenry.
Option 2: Allow the operation of golf carts, UTVs and side-by-sides on roadways within
the corporate limits of McHenry as allowed by the Illinois Complied Statutes.
Option 3: Allow the operation of golf carts, UTVs and side-by-sides on roadways within
the corporate limits of McHenry but provide further restrictions base on roadway speed
limit, geographical boundaries and roadway crossing restrictions.