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HomeMy WebLinkAboutMinutes - 3/21/2022 - City Council City Council Meeting Minutes March 21, 2022 Page 1 McHenry City Council Regular Meeting Minutes March 21, 2022 Call to Order The City Council of the City of McHenry, Illinois, met at McHenry City Hall, 333 S Green St, on Monday, March 21, 2021, at 7:00 p.m. Roll Call Deputy Clerk Johnson called the roll. Roll call: Members present: Alderman Santi, Alderman Glab, Alderman McClatchey, Alderman Harding, Alderman Strach, Alderman Devine, Alderwoman Miller, Mayor Jett. Others present: Attorney McArdle, Administrator Morefield, Director of Public Works Strange, Director of Community Development Polerecky, Finance Director Lynch, Director of Economic Development Martin, Director of Parks and Recreation Hobson, Chief of Police Birk, and Human Resources Director Campanella. Pledge of Allegiance Mayor Jett lead those present in the Pledge of Allegiance. Public Comment There was no public comment from anybody in attendance. Consent Agenda A.Award of bid to Peter Baker and Son Company of Lake Bluff, Illinois for the 2022 Hot Mix Asphalt (FOB) Materials Contract in the amount of $55.00/ton for HMA Surface Mixture and $50.00/ton for HMA Binder Mixture B.An Ordinance amending the FY21/22 Water and Sewer Fund Budget in the amount of $55,000 for a Utility Division truck and authorization to waive competitive bidding and to enter into a purchase agreement with Lynch Truck of Waterford, Wisconsin for the purchase of a 2021 Chevrolet Silverado 3500 work truck in the amount of $53,532.50 C. Title 3, Finance and Taxation, of the McHenry City Code City Council Meeting Minutes March 21, 2022 Page 2 D. March 7, 2022 City Council Meeting Minutes E. Issuance of Checks in the amount of $391,843.09 F. As Needed Checks in the amount of $664,539.46 A motion was made by Alderwoman Miller and seconded by Alderman McClatchey to approve consent agenda items A through F as presented. Roll Call: Vote: 7-ayes: Alderman Santi, Alderman Strach, Alderman Glab, Alderman McClatchey, Alderman Harding, Alderman Devine, Alderwoman Miller. 0-nays, 0-abstained. Motion carried. Discussion Items Presentation and discussion regarding the following FY22/23 proposed budgets General Fund Revenues and Expenditures, General Fund Operating, Recreation Center, Water and Sewer Fund, General Fund Balance, General Fund Capital Improvement and Equipment, Water and Sewer Fund Capital Improvement and Equipment. (City Administrator Morefield, Department Directors) As to review the 21/22 General Fund budget revenues & expenditures, the proposed 22/23 General Fund revenues & expenditures, the 22/23 General Fund balance, the 22/23 Recreation Center budget, the 22/23 Water & Sewer fund, and the 22/23 capital asset and replacement projects. He also recapped what had transpired over the last two years with the pandemic. In 2020, when the pandemic first hit, there was major cause for concern that revenues could take a 15-20% hit. That news came after the budget had already been prepared, and the Council put the trust in Staff and the process to keep the budget in place and allow Staff to make adjustments throughout the year. He thanked the Council for their support over the last two years as things worked out financially for the City. He also stated that he has never felt more positive or enthused in his career than where we are at now coming out of the pandemic. Alderman Santi asked for clarification or examples of what types things go into the contractuals in the budget. Director Morefield stated that these would be outside firms we hire to handle certain activities. Director Polerecky stated that one example is the Community Development Department has an agreement with Trane to handle the air conditioning units. Human Resources Director Ann Campanella explained that the City has an agreement with Northwestern for drug testing. Highlights of the presentation included the following: FY21/22 estimated year-end General Fund revenues are $2,061,681 (8.5%) higher than budgeted; FY21/22 estimated year-end General Fund expenditures are $770,077 (3%) less than budgeted; FY22/23 General Fund operating budget is balanced by $150,426; FY 22/23 General Fund revenues are forecasted to increase by City Council Meeting Minutes March 21, 2022 Page 3 $2,334,687; FY22/23 proposed local street program is $4,360,511; no water and sewer rate increases are recommended, the 120-day General Fund balance is achieved and we are able to transfer $485,795 to the Capital Improvement Fund for future projects; the adoption of new be maintained for the foreseeable future. Alderman Glab said that it is great to see a balanced budget, but he is concerned that we may be looking too aggressively at the increases in the budget from things like video gaming. Administrator Morefield explained that we have always been conservative when budgeting income, and that we rely heavily on the IML for looking at trends from the State. We utilize that data, look at our budgets over time, and look at the actuals over the previous years. Alderman Glab stated that we should keep an eye on the economy with the rise in gas prices, the war, and another possible COVID outbreak. If the economy tanks, that would hurt our actual income. Administrator Morefield assured the Council that Director Lynch does a great job in staying on top of our actual income on a monthly basis, and if we were to drop off, we would make adjustments to spending and report them to the Council. Alderman Glab also asked if we have seen our internet sales tax come in as it is supposed to. Director Lynch explained that there is no way for us to prove that we are actually getting what we are supposed to, but our sales tax from internet sales has increased and we are capturing that. Administrator Morefield explained what some of the key factors were that contributed to the changes in the budget. Personnel costs for FY21/22 are estimated $371,800 (2.2%) less due to attrition, reorganization, and reduced IMRF funding. Capital Outlay for FY21/22 is estimated $330,900 more due to a budget amendment for the 1209 N Green Street acquisition. FY 22/23 personnel costs are $547,479 (3.32%) higher, contractual costs for FY22/23 are $1,117,095 (53.11%) higher, but due mostly to the streets line item for resurfacing, the creation of a Road & Bridge line item, and the cost of the comprehensive plan. Supply costs for FY22/23 are $76,700 higher due to increased pricing. Transfer costs for FY22/23 are $470,170 higher due to the risk management premium increase. It was noted that if not for the $840,000 in streets resurfacing and $200,000 for the Community Development comprehensive plan, the budget would be balanced by $1,190,426. Administrator Morefield reviewed the Recreation Center budget. FY22/23 represents the fifth full budget year for the Recreation Center. The goal was to be able to build membership to have an operationally balanced budget and pay the annual debt service so it could operate without general fund dollars. That goal had been achieved until COVID-19 mandates required the facility to be closed or to reduce services. The balance in that fund has been able to meet costs, and revenues appear to be rebounding. Staff will continue to monitor the budget in FY22/23 and will make adjustments as needed. Alderman Glab asked how much longer we owe on the bonds for the Rec Center. Director Lynch stated that we have 15 more years of payments to make. Alderman Glab asked if we could expedite that payment if our revenues increase, and Director Hobson said that we would look into that possibility if that were to happen. Park Developer Donations could also be used to help make additional payments. City Council Meeting Minutes March 21, 2022 Page 4 Administrator Morefield reviewed the Water and Sewer Fund budget. The fund is treated like an enterprise/business-type fund for operating and capital costs related to water and sewer systems. Revenues are derived directly from water and sewer sales, base charges, connection fees, and service penalties. Updated base fees were adopted in 2021 in order to ensure water and sewer maintenance and replacement infrastructure projects can be funded. Water Division expenditures are proposed at a $53,119 decrease attributable to personnel adjustments. Sewer Division expenditures are proposed at a $13,011 increase attributable to personnel costs. Utility Division expenditures are proposed at a $15,899 increase attributable to personnel costs. There are no water or sewer rate adjustments recommended for FY22/23. Administrator Morefield explained that a list of Capital Projects was submitted for the upcoming to the summary of projects at the bottom of the page. The total amount of capital projects funded for the upcoming year is proposed to come at a total cost of $6,353,011. The downtown streetscape project was reviewed and comes with a Phase 1 engineering cost of $358,800. The new gateway sign that was placed on the eastern side of McHenry on Route 120 was discussed. The new sign came at a cost of $40,000, and it was proposed that a new sign could be installed each year to spread out the cost amongst future budgets. Alderwoman Miller stated that she would like the City to move forward with installing all of the signs in this next fiscal year so that the project could be completed and that the community members could see where their tax dollars are spent. Alderman Glab warned that spending that much money in signs in one year could cause other projects to be dropped from the list. After discussion amongst the Council members, Administrator Morefield stated that he would bring back a budget showing the different options for having all signs installed this upcoming year. Administrator Morefield explained that feedback finalize this portion of the budget. All other funds will be discussed and presented at the April th 5 City Council meeting, and a final budget will be passed at the City Council meeting on April th 18. Executive Session A motion was made by Alderman Strach and seconded by Alderman Santi to adjourn to executive session at 8:05 p.m. to discuss the purchase or lease of real property for the use of the public body, including meetings held for the purpose of discussing whether a particular parcel should be acquired (5 ILCS 120/(c)(5).). Roll Call: Vote: 7-ayes: Alderman Santi, Alderman Strach, Alderman Glab, Alderman McClatchey, Alderman Harding, Alderman Devine, Alderwoman Miller. 0-nays, 0-abstained. Motion carried. City Council Meeting Minutes March 21, 2022 Page 5 Mayor Jett reconvened the meeting out of executive session at 8:32 p.m. A roll call vote was taken. Roll call: Members present: Alderman Santi, Alderman Glab, Alderman McClatchey, Alderman Harding, Alderman Strach, Alderman Devine, Alderwoman Miller, Mayor Jett. Staff Report Director of Parks & Recreation Bill Hobson explained that ShamRocks the Fox went well despite the cold weather. Financially the City came out positive from the event. Sunday was the best Sunday that we have had for the event. Many families were in attendance and the fireworks were great. He thanked all volunteers and participants who came out to support the event. Chief Birk explained that from a police standpoint, things went smoothly. The cold weather helped keep people from the open carry so many people stayed indoors at local establishments. There was no report from Mayor Jett. City Council Comment There were no comments from the City Council. Adjournment A motion was made by Alderman Strach and seconded by Alderman Harding to adjourn the meeting at 8:34 p.m. Roll call Vote: 7-ayes: Alderman McClatchey, Alderman Santi, Alderman Glab, Alderman Harding, Alderman Strach, Alderman Devine, Alderwoman Miller. 0-nays, 0- abstained. Motion carried. Mayor Wayne Jett Deputy Clerk Monte Johnson _________________________________ ________________________________