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HomeMy WebLinkAboutPacket - 1/16/2023 - City CouncilThe City of McHenry is dedicated to providing its citizens, businesses, and visitors with the highest quality of programs and services in a customer-oriented, efficient, and fiscally responsible manner. AGENDA REGULAR CITY COUNCIL MEETING Monday, January 16, 2023, 7:00 p.m. City Council Chamber, 333 S Green St, McHenry, IL 60050 1.Call to Order. 2.Roll Call. 3.Pledge of Allegiance. 4.Public Comments. 5.Police Promotion/Oath of Office Ceremony: Promotions of Sgt. Michael Cruz to the rank of Commander and Officer Jaimie Prather to the rank of Sergeant. 6.Public Hearing: Proposed Amended and Restated Annexation Agreement with Meyer Material (LaFarge/Holcim) – North Property. 7.Motion to adopt an Ordinance Approving Amended and Restated Meyer Material Annexation Agreement North Property. 8.Presentation: Annual Financial Report for the Fiscal Year ending April 20, 2022. (Eder, Casella, and Company) 9.Consent Agenda. Motion to Approve the following Consent Agenda Items as presented: A.Motion to authorize staff to publicly bid the Dartmoor Drive Resurfacing Project and to solicit Phase II Engineering Proposals. (Public Works Director Strange) B.Motion to approve an amendment to the FY23/24 Budget in the amount of $50,000 , funded through a transfer of funds from the Police Seizure Fund; to accept a change order quote by the approved Phase 3 general contractor and waive any competitive bid requirements and the city’s purchasing policy; and, to authorize the Director of Community Development to enter into a new Purchase Order Contract with J.H. Freund in an amount not to exceed $40,434.82. (Staff) C.Motion to authorize the Mayor and Deputy City Clerk to execute a Collective Bargaining Agreement between the City of McHenry and the Illinois Fraternal Order of Police (McHenry Unit 1) for the period May 1, 2023 through April 30, 2027. (Police Chief Birk) D.December 19, 2022 City Council Meeting Minutes; E.Issuance of Checks in the amount of $292,981.93 F.As Needed Checks in the amount of $863,224.41 1 10. Individual Action Item Agenda. A. Professional Engineering Services with Christopher B. Burke Engineerin g, Ltd. Motion to approve an amendment to the FY23/24 Budget in the amount of $41,000; to exercise the City’s Home Rule Authority and authorize the Mayor to execute a contract with Chris topher B. Burke, Ltd. (CBBEL) in the amount of $41,000 for Professional Engineering Services for the design of a municipal right-of-way between Green Street and Elm Street; and, to award a contract to CBBEL for this work. (Public Works Director Strange) B. Whiskey Diablo Capital Development Fee Waiver or Amendment to Economic Incentive Agreement Motion to consider a request from the owner of Whiskey Diablo Restaurant to either waive Capital Development Fees in the amount of $17,149 or amend the existing Economic Incentive Agreement by increasing the maximum sales tax rebate amount from $45,000 to $62,149. (City Administrator Morefield) 11. Discussion Item Agenda. A. Presentation of the FY2023-FY2042 General Fund Municipal Utility Tax Community Investment Plan. (Public Works Director Strange) 12. Staff Reports. Staff reports are provided the first meeting of each month. 13. Mayor’s Report. 14. City Council Comments. 15. Closed session to discuss the appointment, employment, compensation, discipline, performance, or dismissal of specific employees of the public body (5 ILCS 120/2(c)(1).). 16. Adjourn. The complete City Council packet is available for review online via the City website at www.cityofmchenry.org. For further information, please contact the Office of the City Administrator at 815-363-2108. This meeting will be live streamed with a quorum of the City Council physically present. Public comments may only be heard by members of the public physically present at the meeting. Remote public comments will not be heard. The public can listen and view the meeting from the following link: https://cityofmchenry.zoom.us/j/84012153685 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Office of Finance & Accounting Carolyn Lynch, Director McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2100 Fax: (815) 363-2119 www.cityofmchenry.org PRESENTATION DATE: January 16, 2023 TO: Mayor and City Council FROM: Carolyn Lynch, Finance Director RE: FY21/22 Audit ATTACHMENTS: FY21/22 SAS Letter FY21/22 Audit Report _____________________________________________________________________________ Attached is the Annual Financial Report for the year ending April 30, 2022 that was completed by the firm of Eder, Casella, and Company. The audit document was received by staff and the document includes important information about the City’s results for the 2021/22 fiscal year and current financial condition. There are a few areas of the report that are important to highlight. First, the Combining Schedule of Revenues, Expenditures, and Changes in Fund Balance – General Fund on page 60-61 of the audit includes the year end results and the total fund balance for the General Fund. The total fund balance is $14,702,956, which is an increase of $4,719,669 over April 30, 2022. Per the Fund Balance and Reserve Policy a transfer to the Capital Improvements Fund of excess Fund Balance is not proposed this year because during the FY22/23 budget process it was proposed to use $1,607,024 in fund balance for capital projects and $1.8 million is reserved from the ARPA funds for capital expenses related to the Route 31 widening project. The board also approved the improvements at Miller Point for over $2.2 million and the excess fund balance will go to fund these improvements as well. As a reminder according to the Fund Balance and Reserve policy, the General Fund unassigned balance should be approximately 120 days of the estimated operating expenditures. Second, the Statement of Revenues, Expenses and Changes in Net Position – Proprietary Funds (pg. 20) show the annual operating income and expenses for the Water and Sewer Fund. The Water and Sewer Fund has an operating income of $2,346,325. 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 29 rates). These IEPA loan fees cover principal payments that are not presented on this statement, they are presented on the Statement of Net Position. Third, the Police Pension Plan Schedule of Changes in the Employer’s Net Pension Liability and Related Ratios report (p. 53) still shows a high Total Pension Liability of $57,107,066. On this same page the Plan Net Position has decreased even with the issuance of the Pension Obligation Bond due to lower investment returns to $56,638,040. The Police Pension Fund is still in a really good position at 99% funded as of April 30, 2022. A representative from Eder, Casella and Company is in attendance to present a summary of the audit, and answer any questions Council may have. 30 CITY OF McHENRY, ILLINOIS ANNUAL FINANCIAL REPORT APRIL 30, 2022 31 CITY OF McHENRY, ILLINOIS TABLE OF CONTENTS APRIL 30, 2022 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 5 REQUIRED SUPPLEMENTARY INFORMATION Management’s Discussion and Analysis 6 BASIC FINANCIAL STATEMENTS Government-Wide Financial Statements Statement of Net Position 13 Statement of Activities 14 Fund Financial Statements Balance Sheet – Governmental Funds 15 Reconciliation of the Balance Sheet to the Statement of Net Position 16 Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds 17 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances to the Statement of Activities 18 Statement of Net Position – Proprietary Funds 19 Statement of Revenues, Expenses, and Changes in Net Position – Proprietary Funds 20 Statement of Cash Flows – Proprietary Funds 21 Statement of Fiduciary Net Position – Fiduciary Funds 22 Statement of Changes in Fiduciary Net Position – Fiduciary Funds 23 Notes to Financial Statements 24 REQUIRED SUPPLEMENTARY INFORMATION Illinois Municipal Retirement Fund – Schedule of Changes in the Employer’s Net Pension Liability and Related Ratios 51 32 CITY OF McHENRY, ILLINOIS TABLE OF CONTENTS APRIL 30, 2022 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 Total OPEB Liability and Related Ratios 55 Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual – General Fund 56 Notes to Required Supplementary Information 58 SUPPLEMENTAL FINANCIAL INFORMATION Combining Balance Sheet – General Fund 59 Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances – General Fund 60 Combining Balance Sheet – Other Governmental Funds 62 Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances – Other Governmental Funds 63 Combining Schedule of Net Position – Water and Sewer Funds 64 Combining Schedule of Revenues, Expenses, and Changes in Net Position – Water and Sewer Funds 65 Combining Schedule of Net Position – Internal Service Funds 66 Combining Schedule of Revenues, Expenses, and Changes in Net Position – Internal Service Funds 67 Combining Schedule of Net Position – Custodial Funds 68 Combining Schedule of Changes in Fiduciary Net Position – Custodial Funds 69 Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual – Special Revenue Fund – Tax Increment Financing Fund 70 33 Page 1 INDEPENDENT AUDITOR’S REPORT To the Mayor and City Council Members City of McHenry, Illinois Report on the Audit of the Financial Statements Opinions 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 City of McHenry as of and for the year ended April 30, 2022, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents. 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 City of McHenry as of April 30, 2022, 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. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of City of McHenry and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Responsibilities of Management 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. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for one year after the date that the financial statements are issued. Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute 34 Page 2 assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS and Government Auditing Standards, we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risk of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit 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 City of McHenry’s internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. • Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about City of McHenry’s ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the required supplementary information as listed in the table of contents, be presented to supplement the basic financial statements. Such information is the responsibility of management and, 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. Supplementary 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, are presented for purposes of additional analysis and are not a required part of the basic financial statements. 35 Page 3 The supplemental information is the responsibility of management and was derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplemental information is fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 2, 2022 on our consideration of City of McHenry’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering City of McHenry’s internal control over financial reporting and compliance. EDER, CASELLA & CO. Certified Public Accountants McHenry, Illinois December 2, 2022 36 Page 4 INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Mayor and City Council Members City of McHenry, Illinois We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund and the aggregate remaining fund information of City of McHenry as of and for the year ended April 30, 2022, 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 December 2, 2022. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered City of McHenry’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of City of McHenry’s internal control. Accordingly, we do not express an opinion on the effectiveness of City of McHenry’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the City’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Compliance and Other Matters As part of obtaining reasonable assurance about whether City of McHenry’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those 37 Page 5 provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. EDER, CASELLA & CO. Certified Public Accountants McHenry, Illinois December 2, 2022 38 REQUIRED SUPPLEMENTARY INFORMATION 39 Page 6 CITY OF McHENRY, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS APRIL 30, 2022 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, 2022. We encourage readers to consider the information presented here in conjunction with additional information found in the notes to the financial statements. OVERVIEW OF THE FINANCIAL STATEMENTS This discussion and analysis is intended to serve as an introduction to the City’s basic financial statements. The City’s basic financial statements comprise three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. Both perspectives (government-wide and fund level financial statements) allow the user to address relevant questions, broaden a basis for comparison (year to year or government to government) and enhance the City’s accountability. This report also contains other supplementary information in addition to the basic financial statements themselves. Government-wide Financial Statements. The government-wide financial statements are designed to provide readers with a broad overview of the City’s finances, in a manner similar to a private business. The Statement of Net Position presents information on all the City’s assets, deferred outflows of resources, liabilities, and deferred inflows of resources with the difference amongst those being reported as net position. Increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating when comparing year to year results. The Statement of Activities presents information showing how the City’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). Both government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City include general office, public safety, public works, and parks and recreation. The business-type activities of the City include a water and sewer division. Fund Financial Statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local 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. 40 Page 7 Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the City’s near-term financing decisions. Both the governmental fund Balance Sheet and the governmental fund Statement of Revenues, Expenditures, and Changes in Fund Balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The City maintains 13 individual governmental funds. Information is presented separately in the governmental fund Balance Sheet and in the governmental fund Statement of Revenues, Expenditures, and Changes in Fund Balances for the General Fund which is considered to be a major fund. Data from the other twelve governmental funds are combined into a single, aggregated presentation. The other twelve funds include Pageant, Audit, Recreation Center, Capital Improvements, Capital Equipment, Debt Service, Motor Fuel Tax, Municipal Motor Fuel Tax, Developer Donations, Tax Increment Financing, and two Special Service Areas. Proprietary Funds. The City maintains two different types of proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses an enterprise fund to account for the Water and Sewer Division. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City’s various functions. The City uses internal service funds to account for its employee insurance, risk management, and information technology. Because these services predominately benefit governmental rather than business-type functions, they have been included within governmental activities in the government-wide financial statements. Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the water and sewer functions. Internal service funds are combined into a single, aggregate presentation in the proprietary fund financial statements. Individual fund data for the internal service funds is provided in the form of combining statements. Fiduciary Funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the City. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the City’s own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. The City’s fiduciary funds include the Police Pension Trust Fund and two Custodial Funds. Notes to the Financial Statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. Other Information. In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the City’s appropriation to actual for the General Fund. 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 $90,357,329 at April 30, 2022. By far, the largest portion of the City’s net position, 93%, reflects its net investment in capital assets (e.g., land, construction in progress, buildings, and equipment); less any related debt used to acquire those assets that is still outstanding. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City’s investment in capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt 41 Page 8 must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. 4/30/2022 4/30/2021 4/30/2022 4/30/2021 4/30/2022 4/30/2021 Assets Current and Other Assets 33,833,389$ 25,692,075$ 11,953,256$ 10,302,358$ 45,786,645$ 35,994,433$ Capital Assets 95,044,404 93,079,776 79,296,456 79,117,145 174,340,860 172,196,921 Net Pension Asset - IMRF 1,915,256 - 884 - 1,916,140 - Net Pension Asset - Police - 5,366,471 - - - 5,366,471 Total Assets 130,793,049$ 124,138,322$ 91,250,596$ 89,419,503$ 222,043,645$ 213,557,825$ Deferred Outflows of Resources 8,234,178$ 5,043,989$ 537,931$ 663,123$ 8,772,109$ 5,707,112$ Liabilities Long-Term Liabilities Outstanding 28,826,835$ 30,570,994$ 32,696,374$ 34,489,375$ 61,523,209$ 65,060,369$ Net Pension Liability - IMRF - 1,417,243 - 361,888 - 1,779,131 Net Pension Liability - Police 469,026 - - - 469,026 - Net OPEB Liability 1,200,063 5,445,540 129,680 271,890 1,329,743 5,717,430 Other Liabilities 2,422,222 2,551,356 520,673 576,039 2,942,895 3,127,395 Total Liabilities 32,918,146$ 39,985,133$ 33,346,727$ 35,699,192$ 66,264,873$ 75,684,325$ Deferred Inflows of Resources 15,751,752$ 15,996,392$ 1,187,812$ 1,091,294$ 16,939,564$ 17,087,686$ Net Position Net Investment in Capital Assets 90,072,809$ 87,364,529$ 46,698,746$ 44,729,867$ 136,771,555$ 132,094,396$ Restricted 5,894,047 4,551,421 - - 5,894,047 4,551,421 Unrestricted (5,609,527) (18,715,164) 10,555,242 8,562,273 4,945,715 (10,152,891) Total Net Position 90,357,329$ 73,200,786$ 57,253,988$ 53,292,140$ 147,611,317$ 126,492,926$ City of McHenry's Statement of Net Position TotalBusiness-Type ActivitiesGovernmental Activities An additional portion of the City’s net position, 4%, represents resources that are subject to external restrictions on how they may be used (e.g. Highways and Streets, Capital Projects, Police Pension and Special Service Areas). The remaining balance of unrestricted net position ($4,945,715) may be used to meet the City’s ongoing obligations to citizens and creditors. Governmental Activities. Governmental activities increased the City’s net position by $17,156,543. Key differences from the prior year are as follows: 42 Page 9 FY 2022 FY 2021 FY 2022 FY 2021 FY 2022 FY 2021 Revenues Program Revenues Charges for Services 7,142,687$ 6,051,369$ 10,247,466$ 8,823,831$ 17,390,153$ 14,875,200$ Operating Grants and Contributions 3,716,047 1,374,741 - - 3,716,047 1,374,741 Capital Grants and Contributions 5,119,713 5,466,135 2,454,222 4,874,766 7,573,935 10,340,901 General Revenues Property Taxes 5,565,378 5,638,068 - - 5,565,378 5,638,068 Sales Taxes 12,807,479 11,727,968 - - 12,807,479 11,727,968 Other Taxes 6,433,338 4,960,587 - - 6,433,338 4,960,587 Other 21,008 23,125 30,872 19,764 51,880 42,889 Total Revenues 40,805,650$ 35,241,993$ 12,732,560$ 13,718,361$ 53,538,210$ 48,960,354$ Expenses General Office 4,118,881$ 4,421,135$ -$ -$ 4,118,881$ 4,421,135$ Public Safety 9,328,245 11,376,829 - - 9,328,245 11,376,829 Public Works 5,068,211 5,246,147 - - 5,068,211 5,246,147 Parks and Recreation 4,305,299 3,277,676 - - 4,305,299 3,277,676 Interest and Fees 714,641 708,614 - - 714,641 708,614 Depreciation 227,178 223,641 - - 227,178 223,641 Water - - 2,160,744 2,056,292 2,160,744 2,056,292 Sewer - - 5,328,003 6,476,625 5,328,003 6,476,625 Utility Work - - 930,611 997,958 930,611 997,958 Total Expenses 23,762,455$ 25,254,042$ 8,419,358$ 9,530,875$ 32,181,813$ 34,784,917$ Increase/(Decrease) in Net Position Before Transfers 17,043,195$ 9,987,951$ 4,313,202$ 4,187,486$ 21,356,397$ 14,175,437$ Transfers 93,048 93,780 (93,048) (93,780) - - Gain on Sale of Capital Assets 20,300 28,350 32,760 10,000 53,060 38,350 Increase/(Decrease) in Net Position 17,156,543$ 10,110,081$ 4,252,914$ 4,103,706$ 21,409,457$ 14,213,787$ Net Position - Beginning of Year 73,200,786 63,090,705 53,292,140 49,188,434 126,492,926 112,279,139 Net Position Adjustment - - (291,066) - (291,066) - Net Position - End of Year 90,357,329$ 73,200,786$ 57,253,988$ 53,292,140$ 147,611,317$ 126,492,926$ City of McHenry's Change in Net Position Governmental Activities Business-Type Activities Total Revenues increased in the current year due to increases in charges for services which was due to various factors, such as increased need/usage, annual rate increases and increases in one time type fees such as licenses/permits and hookup/connection fees. There was also an increase in Operating Grants, which was mainly due to the receipt of the American Rescue Plan funds. Sales taxes also rebounded in the current year after a decline due to the COVID pandemic in the prior years. Expenses decreased mainly due to decreases in the expenses related to the Police Pension and IMRF Pension liabilities in the current year. Business-Type Activities. Business-type activities increased the City’s net position by $4,252,914. Revenues for business-type activities decreased in the current year due to a decrease in capital grants and contributions. Expenses for business-type activities decreased in the current year due to a significant loss related to the disposal of the old plant with the new Sewer Consolidation project being completed and put into service in the prior year. 43 Page 10 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’s net resources available for spending at the end of the fiscal year. At April 30, 2022, the City’s governmental funds reported combined ending fund balances of $23,686,300, an increase of $6,570,991 in comparison with the prior year. Approximately 60% of this total amount constitutes unassigned fund balance, which is available for spending at the City’s discretion. Of the remaining fund balance, 21% constitutes assigned fund balance, with the remainder of the fund balance restricted to indicate that it is not available for new spending because it has already been restricted for specific purposes or is nonspendable. The General Fund is the chief operating fund of the City. At April 30, 2022, the fund balance of the General Fund was $17,117,629, of which $14,542,134 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 61% of total General Fund expenditures. The General Fund’s fund balance increased by $4,977,096 during the year ended April 30, 2022.This was mainly due to increases in state sales tax and state income taxes. There was also an increase in Federal grants, which was mainly due to the receipt of the American Rescue Plan grant. Other significant highlights in the governmental funds for the year ended April 30, 2022 are outlined below: •Debt service expenses of $2,696,487 were paid to meet the debt service requirements of the City. •Other governmental funds show a total increase in fund balance of $1,593,895. 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 Custodial Funds). At April 30, 2022, the Police Pension Fund’s net position amounted to $56,638,040. Deductions exceeded additions during the year, resulting in a decrease of $5,072,940 in net position. The decrease was largely due to a significant decrease in the fair value of investments. GENERAL FUND BUDGETARY HIGHLIGHTS The City amended the budget during the year ended April 30, 2022. A significant difference between original and final budget was an increase in general office expenditures of $512,898. The General Fund actual revenue exceeded budgeted revenue by $6,454,853. This difference was primarily due to more than expected revenue from state sales and income taxes, and receipt of the American Rescue Plan grant. Budgeted expenditures exceeded actual expenditures by $812,592. The difference was mainly due to less than expected expenditures in all areas, aside from Parks and Recreation which was slightly higher than expected. 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, 2022 amounts to $174,340,860 (net of accumulated depreciation). This investment 44 Page 11 includes land, land improvements, art and historical treasures, intangibles, construction in progress, buildings, vehicles, systems and equipment, and infrastructure. 4/30/2022 4/30/2021 4/30/2022 4/30/2021 4/30/2022 4/30/2021 Land 42,664,844$ 42,130,875$ 2,208,117$ 2,208,117$ 44,872,961$ 44,338,992$ Land Improvements 2,584,275 2,270,560 - - 2,584,275 2,270,560 Art and Historical Treasures 1,658,927 1,658,927 - - 1,658,927 1,658,927 Intangibles 300,000 300,000 - - 300,000 300,000 Construction in Progress 1,463,648 1,189,805 57,193 38,619 1,520,841 1,228,424 Buildings 12,352,919 12,570,264 361,206 388,139 12,714,125 12,958,403 Vehicles 1,574,244 1,672,496 778,749 780,920 2,352,993 2,453,416 Systems and Equipment 1,468,179 1,650,507 75,891,191 75,701,350 77,359,370 77,351,857 Infrastructure 30,977,368 29,636,342 - - 30,977,368 29,636,342 Total 95,044,404$ 93,079,776$ 79,296,456$ 79,117,145$ 174,340,860$ 172,196,921$ City of McHenry's Capital Assets (net of depreciation) Governmental Activities Business-Type Activities Total Major capital asset events during the year ended April 30, 2022 included the following: •Developer donated public improvements for watermains and sanitary sewers, as well as completed roads totaling $5,574,220. •The purchase of land totaling $533,969. •The purchase of four new police vehicles totaling $174,993. For further information on the City’s capital assets see Note 3 in the notes to the financial statements. Long-Term Debt. At April 30, 2022, the City had total bonded debt outstanding of $31,200,000, all of which is backed by the full faith and credit of the City. 4/30/2022 4/30/2021 4/30/2022 4/30/2021 4/30/2022 4/30/2021 General Obligation Bonds 27,205,000$ 28,810,000$ 3,995,000$ 4,350,000$ 31,200,000$ 33,160,000$ IEPA Revolving Loan Fund - - 28,275,383 29,663,434 28,275,383 29,663,434 Notes Payable 956,419 1,121,882 - - 956,419 1,121,882 Bond Premium 40,547 48,925 327,327 373,844 367,874 422,769 Bond Discount (371) (560) - - (371) (560) Total 28,201,595$ 29,980,247$ 32,597,710$ 34,387,278$ 60,799,305$ 64,367,525$ City of McHenry's Outstanding Debt Governmental Activities Business-Type Activities Total For further information on the City’s long-term debt see Note 5 in the notes to the financial statements. 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 27,135 in 2020. 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 2021 was 4.8 percent, which is 42.9 percent lower than a year ago. This is lower than the State’s average unemployment rate of 6.2 percent. •Inflation in the area compares to the national consumer price index. Similar to a nationwide trend, residential growth in the City has slowed, but has been increasing over the last few years. The number of single-family residential building permits issued by the City has decreased from 139 in 45 Page 12 2007 to 85 in 2020 and 42 in 2021. However, there has been a large increase in multi-family from 0 in 2012 to 378 in 2021. The total value of all commercial and residential improvements and new permits increased from $15.2 million in 2012 to $73.3 million in 2021. Development and adoption of the 2022/23 budget was premised on providing core municipal services while having an operationally balanced budget. It was expected there was going to be a volatile economic forecast when the pandemic began, but the City is fortunate to be in a favorable financial situation because of rebounding revenues and controlled operating expenses. Property tax revenues were increased for the first time since 2010, but EAV values have increased slightly causing the City’s tax rate to decrease from $0.620882 in 2020 to $0.605781 in 2021. In April 2022, the City Council approved the proposed fiscal year 2022/23 General Fund budget increasing the prior year’s budget by $2,400,876. These increases were primarily due to personnel and capital outlay expenses. In the last few years, capital expenditures have been funded with Fund Balance Reserves which have been built up due to cost reduction measures necessary to adopt a balanced budget in the past years as well as rebounding state shared revenues. Management is still closely monitoring revenues as well as expenses for any changes. REQUESTS FOR INFORMATION This financial report is designed to provide a general overview of the City’s finances for all those with an interest in the City’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to: City of McHenry, 333 South Green St., McHenry, Illinois, 60050. 46 BASIC FINANCIAL STATEMENTS 47 Governmental Business-Type Activities Activities Total ASSETS Cash and Cash Equivalents 17,391,826$ 7,785,955$ 25,177,781$ Deposit with Paying Agent 32,555 - 32,555 Investments 3,523,459 2,620,391 6,143,850 Prepaid Items 119,998 37,103 157,101 Receivables (Net of Allowance for Estimated Uncollectible Amounts) Accounts Receivable - Billed 567,164 93,486 660,650 Accounts Receivable - Unbilled 202,900 1,314,672 1,517,572 Property Taxes 5,778,770 - 5,778,770 Accrued Interest 2,039 3,935 5,974 Due from Other Governmental Units 4,120,739 97,714 4,218,453 Grants Receivable 1,841,293 - 1,841,293 Cable Franchise Fee Receivable 130,550 - 130,550 Inventory 122,096 - 122,096 IMRF Net Pension Asset 1,915,256 884 1,916,140 Capital Assets Land, Construction in Progress, and Other Non-Depreciable Assets 46,087,419 2,265,310 48,352,729 Other Capital Assets, Net of Depreciation 48,956,985 77,031,146 125,988,131 TOTAL ASSETS 130,793,049$ 91,250,596$ 222,043,645$ DEFERRED OUTFLOWS OF RESOURCES Pension Expense/Revenue - IMRF 1,847,644$ 338,373$ 2,186,017$ Pension Expense/Revenue - Police Pension 4,536,468 - 4,536,468 OPEB Expense/Revenue 1,850,066 199,558 2,049,624 TOTAL DEFERRED OUTFLOWS OF RESOURCES 8,234,178$ 537,931$ 8,772,109$ LIABILITIES Accounts Payable and Accrued Expenses 1,409,008$ 253,448$ 1,662,456$ Security Deposits Held - 3,000 3,000 Due to Other Governmental Units 60,576 - 60,576 Due to Other Funds 61,040 (61,040) - Unearned Revenue 662,618 66,675 729,293 Accrued Interest 228,980 258,590 487,570 Non-Current Liabilities Due Within One Year 2,650,962 2,047,693 4,698,655 Due in More Than One Year 26,175,873 30,648,681 56,824,554 Police Pension Liability 469,026 - 469,026 Total OPEB Liability 1,200,063 129,680 1,329,743 TOTAL LIABILITIES 32,918,146$ 33,346,727$ 66,264,873$ DEFERRED INFLOWS OF RESOURCES Unavailable Revenue - Property Taxes 5,778,770$ -$ 5,778,770$ Unavailable Revenue - State Taxes 8,752 - 8,752 Pension Expense/Revenue - IMRF 4,847,694 887,799 5,735,493 Pension Expense/Revenue - Police Pension 2,335,169 - 2,335,169 OPEB Expense/Revenue 2,781,367 300,013 3,081,380 TOTAL DEFERRED INFLOWS OF RESOURCES 15,751,752$ 1,187,812$ 16,939,564$ NET POSITION Net Investment in Capital Assets 90,072,809$ 46,698,746$ 136,771,555$ Restricted for: Public Safety 1,732,273 - 1,732,273 Highways and Streets 2,261,450 - 2,261,450 Capital Projects 870,419 - 870,419 Special Service Areas 408 - 408 Tax Increment Financing 1,029,497 - 1,029,497 Unrestricted/(Deficit)(5,609,527) 10,555,242 4,945,715 TOTAL NET POSITION 90,357,329$ 57,253,988$ 147,611,317$ APRIL 30, 2022 CITY OF MCHENRY, ILLINOIS STATEMENT OF NET POSITION GOVERNMENT-WIDE FINANCIAL STATEMENTS Page 13 The Notes to Financial Statements are an integral part of this statement. 48 Operating Capital Charges for Grants and Grants and Governmental Business-Type Expenses Services Contributions Contributions Activities Activities Total Functions/Programs Governmental Activities General Office 4,118,881$ 5,692,515$ -$ 1,523,784$ 3,097,418$ -$ 3,097,418$ Public Safety 9,328,245 1,244,740 - - (8,083,505) - (8,083,505) Public Works 5,068,211 - 3,716,047 3,595,929 2,243,765 - 2,243,765 Parks and Recreation 4,305,299 205,432 - - (4,099,867) - (4,099,867) Interest and Fees on Long-Term Debt 714,641 - - - (714,641) - (714,641) Depreciation - Unallocated 227,178 - - - (227,178) - (227,178) 23,762,455$ 7,142,687$ 3,716,047$ 5,119,713$ (7,784,008)$ -$ (7,784,008)$ Business-Type Activities Water 2,160,744$ 3,631,792$ -$ 1,096,340$ -$ 2,567,388$ 2,567,388$ Sewer 5,328,003 6,615,674 - 1,357,882 - 2,645,553 2,645,553 Utility Work 930,611 - - - - (930,611) (930,611) 8,419,358$ 10,247,466$ -$ 2,454,222$ -$ 4,282,330$ 4,282,330$ Total Primary Government 32,181,813$ 17,390,153$ 3,716,047$ 7,573,935$ (7,784,008)$ 4,282,330$ (3,501,678)$ General Revenues Taxes Property Tax, Levied for General Purposes 5,565,378$ -$ 5,565,378$ Intergovernmental State Sales Tax 12,807,479 - 12,807,479 State Income Tax 4,301,251 - 4,301,251 State Motor Fuel Tax 1,477,535 - 1,477,535 Other Taxes 654,552 - 654,552 Unrestricted Investment Earnings 17,056 5,790 22,846 Gain on Sale of Capital Assets 20,300 32,760 53,060 Miscellaneous 3,952 25,082 29,034 Transfers 93,048 (93,048) - Total General Revenues and Transfers 24,940,551$ (29,416)$ 24,911,135$ Change in Net Position 17,156,543$ 4,252,914$ 21,409,457$ Net Position - May 1, 2021 73,200,786 53,292,140 126,492,926 Net Position Adjustment (Note 9)- (291,066) (291,066) Net Position - April 30, 2022 90,357,329$ 57,253,988$ 147,611,317$ CITY OF MCHENRY, ILLINOIS GOVERNMENT-WIDE FINANCIAL STATEMENTS STATEMENT OF ACTIVITIES FOR THE YEAR ENDED APRIL 30, 2022 Net (Expense) Revenue and Changes in Net PositionProgram Revenues Page 14 The Notes to Financial Statements are an integral part of this statement. 49 Other Total General Governmental Governmental Fund Funds Funds ASSETS Cash and Cash Equivalents 11,916,840$ 5,040,305$ 16,957,145$ Deposit with Paying Agent - 32,555 32,555 Investments 2,018,644 1,496,521 3,515,165 Prepaid Items 38,726 - 38,726 Receivables (Net of Allowance for Estimated Uncollectible Amounts) Accounts Receivable - Billed 560,832 5,400 566,232 Accounts Receivable - Unbilled 159,637 40,081 199,718 Property Taxes 5,003,951 774,819 5,778,770 Accrued Interest 1,462 577 2,039 Due from Other Governmental Units 3,996,912 123,827 4,120,739 Due from Other Funds - 2,390 2,390 Grants Receivable 1,841,293 - 1,841,293 Cable Franchise Fee Receivable 130,550 - 130,550 Inventory 122,096 - 122,096 TOTAL ASSETS 25,790,943$ 7,516,475$ 33,307,418$ LIABILITIES Accounts Payable and Accrued Expenditures 1,190,825$ 103,657$ 1,294,482$ Due to Other Governmental Units - 60,576 60,576 Due to Other Funds 63,430 - 63,430 Unearned Revenue 573,815 - 573,815 TOTAL LIABILITIES 1,828,070$ 164,233$ 1,992,303$ DEFERRED INFLOWS OF RESOURCES Unavailable Revenue - Property Taxes 5,003,951$ 774,819$ 5,778,770$ Unavailable Revenue - State Taxes - 8,752 8,752 Unavailable Revenue - Grants 1,841,293 - 1,841,293 TOTAL DEFERRED INFLOWS OF RESOURCES 6,845,244$ 783,571$ 7,628,815$ FUND BALANCES Nonspendable 160,822$ -$ 160,822$ Restricted for: Capital Projects - 870,419 870,419 Highways and Streets - 2,261,450 2,261,450 Special Service Areas - 408 408 Tax Increment Financing - 1,029,497 1,029,497 Assigned for: Alarm 985,780 - 985,780 Tourism 140,946 - 140,946 Band 13,293 - 13,293 Highways and Streets - 871,293 871,293 Capital Projects 963,177 1,648,828 2,612,005 Revolving Loan 301,386 - 301,386 Civil Defense 10,091 - 10,091 Debt Service - 5,570 5,570 Parks and Recreation - 101,027 101,027 Unassigned 14,542,134 (219,821) 14,322,313 TOTAL FUND BALANCES 17,117,629$ 6,568,671$ 23,686,300$ TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES 25,790,943$ 7,516,475$ 33,307,418$ CITY OF MCHENRY, ILLINOIS FUND FINANCIAL STATEMENTS BALANCE SHEET GOVERNMENTAL FUNDS APRIL 30, 2022 Page 15 The Notes to Financial Statements are an integral part of this statement. 50 Total Fund Balances - Governmental Funds 23,686,300$ 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 95,044,404 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 371 Other assets/liabilities are not available/used to pay for current period expenditures and therefore are deferred inflows/outflows of resources in the funds. Revenue deferrals - ARP Grant 1,841,293 Some liabilities are not due and payable in the current period and therefore are not reported in the funds. Bonds and Notes Payable (28,161,419)$ Bond Premiums, net of related amortization (40,547) Accrued Interest on Long-Term Debt, net of receivable (228,980) Compensated Absences (625,240) Total OPEB Liability (1,200,063) Net Pension Asset/(Liability) - IMRF 1,915,256 Net Pension Asset/(Liability) - Police Pension (469,026) (28,810,019) 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 4,536,468$ Pension Deferred Outflows - IMRF 1,847,644 Pension Deferred Inflows - Police Pension (2,335,169) Pension Deferred Inflow - IMRF (4,847,694) OPEB Deferred Outflows 1,850,066 OPEB Deferred Inflows (2,781,367) (1,730,052) Internal service funds are used by management to charge the cost of certain activities, such as insurance and information technology, to individual funds. The assets and liabilities of the internal service funds are included in governmental activities in the government-wide Statement of Net Position (net of amount allocated to business-type activities). Internal service fund balances are not included in other reconciling items above except for long term debt and long term pension items. Current Assets 528,361$ Current Liabilities (203,329) 325,032 Net Position of Governmental Activities 90,357,329$ CITY OF MCHENRY, ILLINOIS FUND FINANCIAL STATEMENTS RECONCILIATION OF THE BALANCE SHEET TO THE STATEMENT OF NET POSITION APRIL 30, 2022 Page 16 The Notes to Financial Statements are an integral part of this statement. 51 Other Total General Governmental Governmental Fund Funds Funds REVENUES Local Taxes Property Tax 4,844,022$ 721,356$ 5,565,378$ Intergovernmental State Sales Tax 12,807,479 - 12,807,479 State Income Tax 4,301,251 - 4,301,251 State Replacement Tax 184,105 - 184,105 State Motor Fuel Tax - 1,477,535 1,477,535 State Pull Tab/Games Tax 674 - 674 Inter Track Wagering Tax 31,550 - 31,550 State Telecommunications Tax 209,789 - 209,789 State Grants - 444,720 444,720 Cannabis Use Tax 43,074 - 43,074 Federal Grants 1,841,293 31,211 1,872,504 Bond Interest Rebates - 3,692 3,692 Other Local Sources Hotel/Motel Tax 185,360 - 185,360 Franchise Fees 386,552 - 386,552 Licenses and Permits 1,291,057 - 1,291,057 Fines and Forfeitures 480,503 - 480,503 Charges for Services 1,371,889 440,952 1,812,841 Interest 12,967 4,089 17,056 Local Grants 33,461 - 33,461 Miscellaneous Rent 18,694 33,062 51,756 Royalties 175,000 - 175,000 Donations 13,064 1,510,720 1,523,784 Reimbursements 2,686,722 89,870 2,776,592 Other Miscellaneous 119,709 48,677 168,386 31,038,215$ 4,805,884$ 35,844,099$ EXPENDITURES Current General Office 4,064,240$ 62,107$ 4,126,347$ Public Safety 11,655,486 - 11,655,486 Public Works 3,224,954 - 3,224,954 Parks and Recreation 2,626,103 1,114,892 3,740,995 Capital Outlay 1,727,328 2,386,486 4,113,814 Debt Service Principal 312,724 1,605,000 1,917,724 Interest and Fees 35,506 743,257 778,763 23,646,341$ 5,911,742$ 29,558,083$ EXCESS OR (DEFICIENCY) OF REVENUES OVER EXPENDITURES 7,391,874$ (1,105,858)$ 6,286,016$ OTHER FINANCING SOURCES/(USES) Transfers (2,606,705)$ 2,699,753$ 93,048$ Proceeds from Loan 171,627 - 171,627 Sale of City Property 20,300 - 20,300 (2,414,778)$ 2,699,753$ 284,975$ NET CHANGE IN FUND BALANCES 4,977,096$ 1,593,895$ 6,570,991$ FUND BALANCES - MAY 1, 2021 12,140,533 4,974,776 17,115,309 FUND BALANCES - APRIL 30, 2022 17,117,629$ 6,568,671$ 23,686,300$ FOR THE YEAR ENDED APRIL 30, 2022 CITY OF MCHENRY, ILLINOIS FUND FINANCIAL STATEMENTS STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS Page 17 The Notes to Financial Statements are an integral part of this statement. 52 Net Change in Fund Balances - Total Governmental Funds 6,570,991$ Amounts reported for governmental activities in the Statement of Activities are different because: Governmental funds report capital outlays as expenditures. However, in the Statement of Activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capital outlay exceeds depreciation expense in the current period. Depreciation Expense (3,235,810)$ Capital Outlays 2,049,903 (1,185,907) Donated capital assets used in governmental activities are not current financial resources and therefore are not reported as revenue in the governmental funds.3,119,998 Some revenue/expenses reported in the Statement of Activities do not provide/use current financial resources and therefore are deferred in the governmental funds. Contra Grant Revenue 1,841,293 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 (171,627) 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 55,933$ Bond Discount - Amortization (189) Bond Premium - Amortization 8,378 Pension Expense - Police (366,990) Pension Expense - IMRF 600,182 OPEB Expense 3,313,533 Compensated Absences (36,552) 3,574,295 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 882,174$ Pension Employer Contributions - Police Pension 655,318 OPEB Employer Contributions 157,444 1,694,936 Repayment of long-term debt requires the use of current financial resources of governmental funds and is therefore shown as an expenditure in the Statement of Revenues, Expenditures, and Changes in Fund Balances, but the repayment reduces long-term liabilities in the Statement of Net Position and is therefore not reported in the Statement of Activities. Repayment of Long-Term Debt 1,917,984 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 (247,400)$ Pension Expense - IMRF (included in Pension - IMRF Expense Above)(15,694) OPEB Expense (included in OPEB Expense Above)11,462 OPEB Employer Contributions (included in OPEB Employer Contributions Above)(2,425) Depreciation Expense (included in Change in Net Position above)48,637 (205,420) Change in Net Position of Governmental Activities 17,156,543$ CITY OF MCHENRY, ILLINOIS FUND FINANCIAL STATEMENTS RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND FOR THE YEAR ENDED APRIL 30, 2022 CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES Page 18 The Notes to Financial Statements are an integral part of this statement. 53 Business Type Governmental Activities -Activities - Enterprise Fund Internal Water and Sewer Service Funds ASSETS Current Assets Cash and Cash Equivalents 7,785,955$ 434,681$ Investments 2,620,391 8,294 Prepaid Items 37,103 81,272 Receivables (Net of Allowance for Estimated Uncollectible Amounts) Accounts Receivable - Billed 93,486 932 Accounts Receivable - Unbilled 1,314,672 3,182 Accrued Interest 3,935 - Due from Other Governmental Units 97,714 - Due from Other Funds 63,430 - 12,016,686$ 528,361$ Non-Current Assets IMRF Net Pension Asset 884$ 7,366$ Capital Assets Land 2,208,117 - Buildings 2,736,098 - Systems and Equipment 112,191,349 690,756 Vehicles 1,702,060 - Construction in Progress 57,193 - Less: Accumulated Depreciation (39,598,361) (494,217) 79,297,340$ 203,905$ TOTAL ASSETS 91,314,026$ 732,266$ DEFERRED OUTFLOWS OF RESOURCES Pension Expense/Revenue - IMRF 338,373$ 48,315$ OPEB Expense/Revenue 199,558 28,495 TOTAL DEFERRED OUTFLOWS OF RESOURCES 537,931$ 76,810$ LIABILITIES Current Liabilities Accounts Payable and Accrued Expenses 253,448$ 114,526$ Security Deposits Held 3,000 - Due to Other Funds 2,390 - Unearned Revenue 66,675 88,803 Accrued Interest 258,590 - Compensated Absences - Current 98,664 3,646 IEPA Loan Payable - Current 1,532,512 - Bonds Payable - Current 416,517 - Lease Payable - Current - 24,103 2,631,796$ 231,078$ Non-Current Liabilities Total OPEB Liability 129,680$ 17,820$ IEPA Loan Payable (Net of Current Portion Shown Above)26,742,871 - Bonds Payable (Net of Current Portion Shown Above)3,905,810 - 30,778,361$ 17,820$ TOTAL LIABILITIES 33,410,157$ 248,898$ DEFERRED INFLOWS OF RESOURCES Pension Expense/Revenue - IMRF 887,799$ 126,769$ OPEB Expense/Revenue 300,013 42,839 TOTAL DEFERRED INFLOWS OF RESOURCES 1,187,812$ 169,608$ NET POSITION Net Investment in Capital Assets 46,698,746$ 172,436$ Unrestricted/(Deficit)10,555,242 218,134 TOTAL NET POSITION 57,253,988$ 390,570$ APRIL 30, 2022 CITY OF MCHENRY, ILLINOIS FUND FINANCIAL STATEMENTS STATEMENT OF NET POSITION PROPRIETARY FUNDS Page 19 The Notes to Financial Statements are an integral part of this statement. 54 Business Type Governmental Activities -Activities - Enterprise Fund Internal Water and Sewer Service Funds OPERATING REVENUES Charges for Services Customer Fees 6,668,540$ -$ Capital Fees 718,573 - Debt Service Fees 2,505,977 - Penalties 173,496 - Water Meter Sales 52,107 - Other 16,796 - Internal Service Funds - 5,007,061 10,135,489$ 5,007,061$ OPERATING EXPENSES Water Department Personnel Salaries 435,169$ -$ Miscellaneous Personnel Expenses 139,999 - Other Operating Expenses 918,302 - Depreciation 631,243 - Sewer Department Personnel Salaries 733,339 - Miscellaneous Personnel Expenses 270,581 - Other Operating Expenses 1,599,606 - Depreciation 2,133,432 - Utility Work Department Personnel Salaries 628,246 - Miscellaneous Personnel Expenses 236,013 - Other Operating Expenses 63,234 - Internal Service Funds Personnel Salaries - 160,214 Miscellaneous Personnel Expenses - 3,471,965 Other Operating Expenses - 1,573,783 Depreciation - 48,637 7,789,164$ 5,254,599$ OPERATING INCOME/(LOSS)2,346,325$ (247,538)$ NON-OPERATING REVENUE/(EXPENSE) Interest Income 5,790$ 138$ Unrealized Gain/Loss (3,118) - Rental Income 65,460 - Interest Rebate Income 25,082 - Interest and Fees (627,076) - Amortization 46,517 - Gain/(Loss) on Sale of Fixed Asset 32,760 - Donated Public Improvements - Water 1,096,340 - Donated Public Improvements - Sewer 1,357,882 - 1,999,637$ 138$ INCOME/(LOSS) BEFORE CONTRIBUTIONS AND TRANSFERS 4,345,962$ (247,400)$ TRANSFERS (TO)/FROM OTHER FUNDS (93,048) - CHANGE IN NET POSITION 4,252,914$ (247,400)$ NET POSITION - MAY 1, 2021 53,292,140 637,970 NET POSITION ADJUSTMENT (Note 9)(291,066) - NET POSITION - APRIL 30, 2022 57,253,988$ 390,570$ FOR THE YEAR ENDED APRIL 30, 2022 CITY OF MCHENRY, ILLINOIS FUND FINANCIAL STATEMENTS STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION PROPRIETARY FUNDS Page 20 The Notes to Financial Statements are an integral part of this statement. 55 Business Type Governmental Activities -Activities - Enterprise Fund Internal Water and Sewer Service Funds CASH FLOWS FROM OPERATING ACTIVITIES Receipts from Customers 10,002,102$ -$ Receipts from Employees for Services - 1,502 Receipts from Other Funds for Services - 5,007,061 Payments to Suppliers for Goods and Services (3,617,689) (4,911,927) Payments to Employees for Services (2,083,459) (193,909) Payments to Other Funds for Services 2,390 (66,636) Internal Activity - Payments (to)/from Other Funds 83,439 - Net Cash Provided/(Used) by Operating Activities 4,386,783$ (163,909)$ CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES Transfers (to)/from Other Funds (93,048)$ -$ Net Cash Provided/(Used) by Non-Capital Financing Activities (93,048)$ -$ CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Proceeds from the Sale of Capital Assets 32,760$ -$ Purchase of Capital Assets (489,763) (30,537) Proceeds from Bond Issuance, including Bond Premium 92,911 - Interest Paid on Capital Debt, Net of Rebate (615,036) - Principal Paid on Capital Debt (1,835,962) (24,104) Other Receipts/(Payments)590,460 - Net Cash Provided/(Used) by Capital and Related Financing Activities (2,224,630)$ (54,641)$ CASH FLOWS FROM INVESTING ACTIVITIES Interest on Cash and Cash Equivalents and Investments (1,349,195)$ 123$ Net Cash Provided/(Used) by Investing Activities (1,349,195)$ 123$ NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS 719,910$ (218,427)$ CASH AND CASH EQUIVALENTS BALANCE - MAY 1, 2021 (INCLUDING RESTRICTED CASH AND OVERDRAFTS)7,066,045 653,108 CASH AND CASH EQUIVALENTS BALANCE - APRIL 30, 2022 (INCLUDING RESTRICTED CASH AND OVERDRAFTS)7,785,955$ 434,681$ RECONCILIATION OF OPERATING INCOME/(LOSS) TO NET CASH PROVIDED/(USED) BY OPERATING ACTIVITIES Operating Income/(Loss)2,346,325$ (247,538)$ Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation Expense 2,764,675 48,637 Change in assets, liabilities and deferred amounts: Receivables, net (19,948) (1,351) Prepaid Items (734) (9,456) Accounts Payable and Other Payables (390,263) 74,582 Unearned Revenue (30,000) 2,853 Pension Liabilities (362,772) (94,271) OPEB Liabilities (142,210) (4,759) Deferred Pension Expenses/Revenues 130,401 53,598 Deferred OPEB Expenses/Revenue 91,309 13,796 Net Cash Provided/(Used) by Operating Activities 4,386,783$ (163,909)$ NONCASH CAPITAL FINANCING ACTIVITIES IEPA Loan Draws 92,911$ -$ FOR THE YEAR ENDED APRIL 30, 2022 CITY OF MCHENRY, ILLINOIS FUND FINANCIAL STATEMENTS STATEMENT OF CASH FLOWS PROPRIETARY FUNDS Page 21 The Notes to Financial Statements are an integral part of this statement. 56 POLICE PENSION CUSTODIAL TRUST FUND FUNDS ASSETS Cash and Cash Equivalents 1,576,402$ 56,035$ Investments, at fair value Corporate Bonds 9,375,006 - Mutual Funds 36,023,253 - Municipal Bonds 838,244 - U.S. Treasury Securities 585,199 - Foreign Issues 8,042,197 - Receivables (Net of Allowance for Estimated Uncollectible Amounts) Accounts Receivable - Unbilled 2,534 - Accrued Interest 195,205 - TOTAL ASSETS 56,638,040$ 56,035$ LIABILITIES TOTAL LIABILITIES -$ -$ NET POSITION Restricted for Pensions 56,638,040$ -$ Restricted for Developers, Property Owners, and Others - 56,035 TOTLA NET POSITION 56,638,040$ 56,035$ CITY OF MCHENRY, ILLINOIS STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS APRIL 30, 2022 FUND FINANCIAL STATEMENTS Page 22 The Notes to Financial Statements are an integral part of this statement. 57 POLICE PENSION CUSTODIAL TRUST FUND FUNDS ADDITIONS Contributions Employer 655,318$ -$ Plan Members 494,892 - Developers, Property Owners, and Others - 80,685 Other Additions 493 - Total Contributions 1,150,703$ 80,685$ Investment Income Interest and Dividends 3,503,501$ -$ Gain/(Loss) on Sale of Investments (824,299) - Net Increase/(Decrease) in Fair Value of Investments (6,303,419) - (3,624,217)$ -$ Less: Investment Management Fees 128,957 - Net Investment Income (3,753,174)$ -$ TOTAL ADDITIONS (2,602,471)$ 80,685$ DEDUCTIONS Benefits 2,328,555$ -$ Refunds of Contributions 100,133 - Administrative Expenses 41,781 - Engineering and Legal Fees - 80,685 TOTAL DEDUCTIONS 2,470,469$ 80,685$ NET INCREASE/(DECREASE)(5,072,940)$ -$ NET POSITION - MAY 1, 2021 61,710,980 - NET POSITION ADJUSTMENT (Note 9)- 56,035 NET POSITION - APRIL 30, 2022 56,638,040$ 56,035$ CITY OF MCHENRY, ILLINOIS FUND FINANCIAL STATEMENTS STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FIDUCIARY FUNDS FOR THE YEAR ENDED APRIL 30, 2022 Page 23 The Notes to Financial Statements are an integral part of this statement. 58 Page 24 CITY OF McHENRY, ILLINOIS NOTES TO FINANCIAL STATEMENTS APRIL 30, 2022 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. In the process of aggregating data for the government-wide financial statements, some amounts reported as interfund activity and balances were eliminated or reclassified. Interfund services provided and used are not eliminated in the process of consolidation. The net costs (by function or business-type activity) are normally covered by general revenue (property taxes, sales taxes, unrestricted investment earnings, etc.). 59 NOTES TO FINANCIAL STATEMENTS (Continued) Page 25 The City does not allocate indirect costs. This government-wide focus is more on the sustainability of the City as an entity and the change in the City’s net position resulting from the current year’s activities. C. Basic Financial Statements – Fund Financial Statements The financial transactions of the City are reported in individual funds in the fund financial statements. Each fund is accounted for by providing a separate set of self-balancing accounts that comprise its assets, liabilities, reserves, fund equity, revenues, and expenditures/expenses. The various funds are reported by generic classification within the financial statements. The emphasis in fund financial statements is on the major funds in either the governmental or business- type activities categories. Nonmajor funds by category are summarized into a single column. GASB Statement No. 34 sets forth minimum criteria (percentage of the assets, liabilities, revenues, or expenditures/expenses of either fund category or the governmental and enterprise combined) for the determination of major funds. The following fund types are used by the City: 1. Governmental Funds The focus of the governmental funds’ measurement (in the fund statements) is upon determination of financial position and changes in financial position (sources, uses, and balances of financial resources) rather than upon net income. The City reports these governmental funds and fund types: General Fund – The General Fund is the general operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund. The Annexation, Alarm Board, Band, Civil Defense, Revolving Loan, Tourism, and Employee Flex Funds are included in this fund. Special Revenue Funds – The Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes. Debt Service Fund – The Debt Service Fund is used to account for the accumulation of funds for the periodic payment of principal, interest, and related fees on general long-term debt. Capital Projects Funds – The Capital Projects Funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by business- type/proprietary funds). The activities reported in these funds are reported as governmental activities in the government-wide financial statements. 2. Proprietary Fund Types The focus of proprietary fund measurement is upon determination of operating income, changes in net position, financial position, and cash flows. The generally accepted accounting principles applicable are those similar to businesses in the private sector. The City reports the following proprietary fund types: Enterprise Funds – Enterprise Funds are required to be used to account for operations for which a fee is charged to external users for goods or services and the activity is financed with debt that is solely secured by a pledge of the net revenues. The activities reported in these funds are reported as business-type activities in the government-wide financial statements. 60 NOTES TO FINANCIAL STATEMENTS (Continued) Page 26 Internal Service Funds – Internal Service Funds are used to account for the financing of goods or services provided by an activity to other departments or funds of the City on a cost-reimbursement basis. Because the principal users of the internal services are the City’s governmental activities, the financial statement of the Internal Service Fund is consolidated into the governmental column when presented in the government-wide financial statements. 3. Fiduciary Fund Types Fiduciary Funds are used to report assets held in a trustee or custodial 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 custodial). 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 overdraft balances at April 30, 2022: 61 NOTES TO FINANCIAL STATEMENTS (Continued) Page 27 Audit Fund 4,699$ Recreation Center Fund 268,643 Capital Improvements Fund 3,538 Capital Equipment Fund 23,421 Debt Service Fund 43,071 SSA #4 Lakewood Fund 635 SSA #6 Huntersville Fund 179,115 523,122$ 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 $63,450 and all other allowances for other accounts receivable is $664,783. G.Prepaid Items Prepaid items are for payments made by the City in the current year for goods and services received in the subsequent fiscal year. H.Inventories Inventories consist of the cost of unused salt for the roads. The salt inventory as of April 30, 2022 is $122,096. 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. Donated capital assets, donated works of art and similar items, and capital assets received in a service concession arrangement are reported at acquisition value. 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 62 NOTES TO FINANCIAL STATEMENTS (Continued) Page 28 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. 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. 63 NOTES TO FINANCIAL STATEMENTS (Continued) Page 29 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. 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 2021 levy was passed by the Board on December 20, 2021. 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. 64 NOTES TO FINANCIAL STATEMENTS (Continued) Page 30 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 (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, INVESTMENTS, AND FAIR VALUE MEASUREMENTS 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, 2022, the City and Police Pension had the following investments, maturities, and fair value measurements: City Credit Quality/ Segmented Time Types of investments Ratings Distribution Amount Level 1 Level 2 N/A Debt Securities: U.S. Treasury Securities Not Rated less than 1 year 4,100,609$ 4,100,609$ -$ -$ External Investment Pools AAAmmf less than 1 year 18,208,389 - - 18,208,389 Certificates of Deposit N/A less than 1 year 2,048,245 - 2,048,245 - Total Debt Securities 24,357,243$ 4,100,609$ 2,048,245$ 18,208,389$ Total Investments 24,357,243$ 4,100,609$ 2,048,245$ 18,208,389$ Fair Value Measurement Using Police Pension Credit Quality/ Segmented Time Types of investments Ratings Distribution Amount Level 1 Level 2 N/A Debt Securities: U.S. Treasury Securities Not Rated More than 10 years 585,199$ 585,199$ -$ -$ Municipal Bonds BBB - AAA less than 1 year 302,063 - 302,063 - Municipal Bonds BBB - AAA 1 to 5 years 124,881 - 124,881 - Municipal Bonds BBB - AAA 5 to 10 years 326,452 - 326,452 - Municipal Bonds BBB - AAA More than 10 years 84,848 - 84,848 - Corporate Bonds BBB - AAA less than 1 year 4,856,257 - 4,856,257 - Corporate Bonds BBB - AAA 1 to 5 years 4,162,112 - 4,162,112 - Corporate Bonds BBB - AAA 5 to 10 years 356,637 - 356,637 - External Investment Pools AAAmmf less than 1 year 609,103 - - 609,103 Foreign Issues BBB - AAA less than 1 year 3,916,074 - 3,916,074 - Foreign Issues BBB - AAA 1 to 5 years 4,126,123 - 4,126,123 - Total Debt Securities 19,449,749$ 585,199$ 18,255,447$ 609,103$ Equity Securities: Mutual Funds Not Rated less than 1 year 36,023,253$ 36,023,253$ -$ -$ Total Equity Securities 36,023,253$ 36,023,253$ -$ -$ Total Investments 55,473,002$ 36,608,452$ 18,255,447$ 609,103$ Fair Value Measurement Using 65 NOTES TO FINANCIAL STATEMENTS (Continued) Page 31 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; debt securities and certificates of deposit classified in Level 2 of the fair value hierarchy are valued using a matrix pricing technique. Matrix pricing is used to value securities based on the securities’ relationship to benchmark quoted prices; Level 3 inputs are significant unobservable inputs. Debt and equity securities classified in Level 1 of the fair value hierarchy are valued using prices quoted in active markets for those securities. Debt securities and certificates of deposit classified in Level 2 of the fair value hierarchy are valued using a matrix pricing technique. Matrix pricing is used to value securities based on the securities’ relationship to benchmark quoted prices. 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. 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. NOTE 3 - CAPITAL ASSETS Capital asset activity for the year ended April 30, 2022 was as follows: 66 NOTES TO FINANCIAL STATEMENTS (Continued) Page 32 Balance Balance May 1, 2021 Increases Decreases April 30, 2022 Governmental Activities Capital Assets not being depreciated Land 42,130,875$ 533,969$ -$ 42,664,844$ Art and Historical Treasures 1,658,927 - - 1,658,927 Intangibles 300,000 - - 300,000 Construction in Progress 1,189,805 424,207 150,364 1,463,648 Total Capital Assets not being depreciated 45,279,607$ 958,176$ 150,364$ 46,087,419$ Other Capital Assets Land Improvements 6,551,923$ 558,363$ 69,966$ 7,040,320$ Buildings 18,502,058 203,179 - 18,705,237 Vehicles 4,823,009 266,039 224,648 4,864,400 Equipment 4,758,464 110,145 - 4,868,609 Infrastructure 80,535,272 3,254,900 - 83,790,172 Total Other Capital Assets at Historical Cost 115,170,726$ 4,392,626$ 294,614$ 119,268,738$ Less Accumulated Depreciation for: Land Improvements 4,281,363$ 244,648$ 69,966$ 4,456,045$ Buildings 5,931,794 420,524 - 6,352,318 Vehicles 3,150,513 364,291 224,648 3,290,156 Equipment 3,107,957 292,473 - 3,400,430 Infrastructure 50,898,930 1,913,874 - 52,812,804 Total Accumulated Depreciation 67,370,557$ 3,235,810$ 294,614$ 70,311,753$ Other Capital Assets, Net 47,800,169$ 1,156,816$ -$ 48,956,985$ Governmental Activities Capital Assets, Net 93,079,776$ 2,114,992$ 150,364$ 95,044,404$ Business-Type Activities Capital Assets not being depreciated Land 2,208,117$ -$ -$ 2,208,117$ Construction in Progress 38,619 162,020 143,446 57,193 Total Capital Assets not being depreciated 2,246,736$ 162,020$ 143,446$ 2,265,310$ Other Capital Assets Buildings 2,736,098$ -$ -$ 2,736,098$ Vehicles 1,855,839 64,789 218,568 1,702,060 Systems and Equipment 109,330,726 2,860,623 - 112,191,349 Total Other Capital Assets at Historical Cost 113,922,663$ 2,925,412$ 218,568$ 116,629,507$ Less Accumulated Depreciation for: Buildings 2,347,959$ 26,933$ -$ 2,374,892$ Vehicles 1,074,919 66,960 218,568 923,311 Systems and Equipment 33,629,376 2,670,782 - 36,300,158 Total Accumulated Depreciation 37,052,254$ 2,764,675$ 218,568$ 39,598,361$ Other Capital Assets, Net 76,870,409$ 160,737$ -$ 77,031,146$ Business-Type Activities Capital Assets, Net 79,117,145$ 322,757$ 143,446$ 79,296,456$ Depreciation expense was charged to functions as follows: Governmental Activities Public Safety 330,906$ Public Works 2,210,059 Parks and Recreation 467,667 Unallocated 227,178 Total Governmental Activities Depreciation Expense 3,235,810$ Business-Type Activities Water 631,243$ Sewer 2,133,432 Total Business-Type Activities Depreciation Expense 2,764,675$ NOTE 4 - NET INVESTMENT IN CAPITAL ASSET CALCULATION Net investment in capital asset calculation as of April 30, 2022 was as follows: 67 NOTES TO FINANCIAL STATEMENTS (Continued) Page 33 Governmental Activities Capital Assets, Net of Accumulated Depreciation 95,044,404$ Les s : Capital Related Debt (4,971,595) Investment in Capital Assets 90,072,809$ Business-Type Activities Capital Assets, Net of Accumulated Depreciation 79,296,456$ Less: Capital Related Debt (32,597,710) Investment in Capital Assets 46,698,746$ NOTE 5 - LONG-TERM LIABILITY ACTIVITY Long-term liability activity for the year ended April 30, 2022 was as follows: Amounts Balance Balance Due Within May 1, 2021 Additions Retirements April 30, 2022 One Year Governmental Activities Bonds and Notes Payable General Obligation Bonds 28,810,000$ -$ 1,605,000$ 27,205,000$ 1,675,000$ Unamortized Bond Discount (560) 189 - (371) (189) Unamortized Bond Premium 48,925 - 8,378 40,547 8,378 Note Payable 1,121,882 171,627 337,090 956,419 342,533 Total Bonds and Notes Payable 29,980,247$ 171,816$ 1,950,468$ 28,201,595$ 2,025,722$ Other Long-Term Liabilities Compensated Absences 590,747$ 625,240$ 590,747$ 625,240$ 625,240$ Total Other Long-Term Liabilities 590,747$ 625,240$ 590,747$ 625,240$ 625,240$ Governmental Activities Long-Term Obligations 30,570,994$ 797,056$ 2,541,215$ 28,826,835$ 2,650,962$ Business-Type Activities Bonds and Notes Payable General Obligation Bonds 4,350,000$ -$ 355,000$ 3,995,000$ 370,000$ IEPA Revolving Loan Fund 29,663,434 92,911 1,480,962 28,275,383 1,532,512 Unamortized Bond Premium 373,844 - 46,517 327,327 46,517 Total Bonds and Notes Payable 34,387,278$ 92,911$ 1,882,479$ 32,597,710$ 1,949,029$ Other Long-Term Liabilities Compensated Absences 102,097$ 98,664$ 102,097$ 98,664$ 98,664$ Total Other Long-Term Liabilities 102,097$ 98,664$ 102,097$ 98,664$ 98,664$ Business-Type Activities Long-Term Obligations 34,489,375$ 191,575$ 1,984,576$ 32,696,374$ 2,047,693$ Bonds and notes payable consisted of the following at April 30, 2022: Maturity Interest Face Carrying Date Rate Amount Amount Governmental Activities General Obligation Bonds 2012 12/15/2027 2.00% - 2.50%850,000$ 380,000$ General Obligation Bonds 2013 5/1/2027 0.40% - 2.75%415,000 200,000 General Obligation Bonds 2015 12/15/2035 2.00% - 3.25%6,375,000 3,395,000 General Obligation Bonds 2020B 4/30/2040 0.849% - 3.376%24,265,000 23,230,000 Note Payable 2/20/2024 3.50%574,171 128,691 4 parcels of land pledged as collateral to this loan Note Payable 5/25/2024 3.10%1,300,151 803,625 26 vehicles pledged as collateral to this loan Capital Lease - Dell Financial 7/31/2022 0.00%72,310 24,103 Total 33,851,632$ 28,161,419$ 68 NOTES TO FINANCIAL STATEMENTS (Continued) Page 34 Maturity Interest Face Carrying Date Rate Amount Amount Business-Type Activities General Obligation Bonds 2012 12/15/2032 2.00% - 2.80%2,250,000$ 1,390,000$ General Obligation Bonds 2020A 4/30/2030 4%2,855,000 2,605,000 IEPA Revolving Loan Fund 12/30/2037 1.86%31,507,182 28,275,383 Total 36,612,182$ 32,270,383$ At April 30, 2022 the annual debt service requirements to service all long-term debt attributable to governmental activities are: Year Ending April 30 Principal Interest Total 2023 2,017,533$ 702,271$ 2,719,804$ 2024 2,023,690 670,482 2,694,172 2025 1,974,798 636,599 2,611,397 2026 1,565,398 600,660 2,166,058 2027 1,560,000 573,793 2,133,793 2028 - 2032 6,945,000 2,390,868 9,335,868 2033 - 2037 7,395,000 1,461,702 8,856,702 2038 - 2040 4,680,000 317,858 4,997,858 28,161,419$ 7,354,233$ 35,515,652$ At April 30, 2022 the annual debt service requirements to service all long-term debt attributable to business-type activities are: Year Ending April 30 Principal Interest Total 2023 1,902,512$ 657,436$ 2,559,948$ 2024 1,956,149 616,099 2,572,248 2025 2,005,322 573,217 2,578,539 2026 2,050,039 529,084 2,579,123 2027 2,100,312 483,509 2,583,821 2028 - 2032 10,510,827 1,698,258 12,209,085 2033 - 2037 9,722,146 688,759 10,410,905 2038 2,023,076 28,266 2,051,342 32,270,383$ 5,274,628$ 37,545,011$ Industrial Development Revenue Bonds, Series 2016A and 2016B During fiscal year 2017, the City issued Industrial Development Revenue Bonds on behalf of Fabrik Industries. The bonds are not obligations of the City; therefore, the City does not record the assets or liabilities resulting from the bond issuance as its primary function is to arrange financing between Fabrik and the bond holders. All funds are controlled by the trustee of the bonds (American Community Bank & Trust). The original issue of the bonds aggregated to $7,500,000, and at April 30, 2022 the outstanding balance on the bonds was $1,405,489. Long-term liabilities are being repaid from the following funds: Obligation Fund Governmental Activities General Obligation Bonds General Fund, Annexation Fund, Capital Improvements Fund, TIF Fund, Recreation Center Fund, Water and Sewer Fund Note Payable General Fund, Tourism Fund, Information Technology Fund Compensated Absences General Fund, Infromation Technology Fund Business-Type Activities General Obligation Bonds Water and Sewer Fund IEPA Revolving Loan Fund Water and Sewer Fund Compensated Absences Water and Sewer Fund 69 NOTES TO FINANCIAL STATEMENTS (Continued) Page 35 NOTE 6 - RESTRICTED EQUITY The following amounts are restricted equity balances at April 30, 2022: Restricted Restricted Restricted for Net Position Fund Balance Governmental Activities/Governmental Funds Public Safety 1,732,273$ -$ Highways and Streets 2,261,450 2,261,450 Capital Projects 870,419 870,419 Special Service Areas 408 408 Tax Increment Financing 1,029,497 1,029,497 5,894,047$ 4,161,774$ 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, 2022 was $3,979,811. NOTE 8 - DEFICIT FUND BALANCE At April 30, 2022 a deficit fund balance existed in the following funds: Audit Fund 4,196$ SSA #4 Lakewood Fund 231 SSA #6 Huntersville Fund 179,115 183,542$ NOTE 9 - NET POSITION/FUND BALANCE ADJUSTMENT During the year, the City made the following net position/fund balance adjustments: Proprietary Funds Net Positon Fiduciary Funds Net Position Water and Sewer Fund Developmental Escrow Funds Adjustment related to incorrect prior year Adjustment related to recording beginning accounts payable (291,066)$ net position due to GASB 84 6,831$ Retained Personnel Escrow Funds Adjustment related to recording beginning net position due to GASB 84 49,204$ Business-Type Activities Net Position Fiduciary Fund Activities Net Position Water and Sewer Fund Custodial Funds Adjustment related to incorrect prior year Adjustment related to recording beginning accounts payable (291,066)$ net position due to GASB 84 56,035$ NOTE 10 - PROPERTY TAXES Property taxes receivable and unavailable revenue recorded in these financial statements, in the amount of $5,778,770, are from the 2021 tax levy. The unavailable revenue is 100% of the 2021 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 2022. The City has determined that 100% of the amounts collected for the 2020 levy ($5,565,378) are allocable for use in fiscal year 2022 and, therefore, are recorded in these financial statements as property taxes revenue. A summary of the assessed valuation, rates, and extensions for the years 2021, 2020, and 2019 follows: 70 NOTES TO FINANCIAL STATEMENTS (Continued) Page 36 Tax Year Assessed Valuation Rates Extens ions Rates Extensions Rates Extensions General 0.0524 410,155$ 0.0344 255,869$ 0.0499 349,728$ Bond 0.2129 1,664,873 0.2241 1,667,294 - - Police Protection 0.0701 547,965 0.0737 547,966 0.0781 547,964 Insurance 0.0639 499,998 0.0672 499,999 0.0713 500,000 Retirement 0.0510 399,197 0.0537 399,198 0.0569 399,199 Social Security 0.0721 563,749 0.0758 563,751 0.0804 563,745 Audit 0.0034 26,428 0.0036 26,431 0.0038 26,430 Police Pension 0.0800 625,607 0.0885 658,311 0.3182 2,231,744 Total Taxes Extended 0.6058 4,737,972$ 0.6209 4,618,819$ 0.6585 4,618,810$ Road and Bridge (from Townships)- 292,407$ - 273,254$ - 371,126$ Special Service Area #4A - 15,580$ - 16,123$ - 16,123$ Tax Increment Financing - 732,268$ - 680,014$ - 710,181$ 2019 $701,420,237 2021 $782,126,233 2020 $743,912,520 NOTE 11 - EXCESS OF EXPENDITURES OVER BUDGET For the year ended April 30, 2022, the following funds had expenditures that exceeded the budget: Fund Budget Actual Capital Improvements $ 10,000 $ 37,923 27,923$ Audit 45,125 51,275 6,150 Risk Management 943,503 979,625 36,122 Retained Personnel Escrow 75,000 80,685 5,685 Police Pension 2,399,286 2,599,426 200,140 Excess of Actual Over Budget 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 Annual Comprehensive Financial Report that includes financial statements, detailed information about the pension plan’s fiduciary net position, and required supplementary information. The report is available for download at www.imrf.org. B. Benefits Provided IMRF has three benefit plans. The vast majority of IMRF members participate in the Regular Plan (RP). The Sheriff’s Law Enforcement Personnel (SLEP) plan is for sheriffs, deputy sheriffs, and selected police chiefs. Counties could adopt the Elected County Official (ECO) plan for officials elected prior to August 8, 2011 (the ECO plan was closed to new participants after that date). All three IMRF benefit plans have two tiers. Employees hired before January 1, 2011 are eligible for Tier 1 benefits. Tier 1 employees are vested for pension benefits when they have at least eight years of qualifying service credit. Tier 1 employees who retire at age 55 (at reduced benefits) or after age 60 (at full benefits) with eight years of service are entitled to an annual retirement benefit, payable monthly for life, in an amount equal to 1-2/3% of the final rate of earnings for the first 15 years of service credit, plus 2% for each year of service credit after 15 years to a maximum of 75% of their final rate of earnings. 71 NOTES TO FINANCIAL STATEMENTS (Continued) Page 37 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, 2021, the following employees were covered by the benefit terms: Retirees and beneficiaries currently receiving benefits 101 Inactive plan members entitled to but not yet receiving benefits 45 Active plan members 101 Total 247 D. Contributions As set by statute, the City’s Regular Plan Members are required to contribute 4.5% of their annual covered salary. The statute requires employers to contribute the amount necessary, in addition to member contributions, to finance the retirement coverage of its own employees. The City’s annual contribution rate for calendar year’s 2022 and 2021 was 10.82% and 12.24%. For the fiscal year ended April 30, 2022, the City contributed $939,948 to the plan. The City also contributes for disability benefits, death benefits, and supplemental retirement benefits, all of which are pooled at the IMRF level. Contribution rates for disability and death benefits are set by IMRF’s Board of Trustees, while the supplemental retirement benefits rate is set by statute. E. Net Pension Liability The components of the net pension liability of the IMRF actuarial valuation performed as of December 31, 2021, and a measurement date as of December 31, 2021, calculated in accordance with GASB Statement No. 68, were as follows: Total Pension Liability 46,142,272$ IMRF Fiduciary Net Position 48,058,412 City's Net Pension Liability (1,916,140) IMRF Fiduciary Net Position as a Percentage of the Total Pension Liability 104.15% 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. 72 NOTES TO FINANCIAL STATEMENTS (Continued) Page 38 F. Actuarial Assumptions The total pension liability above was determined by an actuarial valuation performed as of December 31, 2021 using the following actuarial methods and assumptions: Assumptions Inflation 2.25% Salary Increases 2.85% - 13.75% including inflation Interest Rate 7.25% Asset Cost Method Entry Age Normal Asset Valuation Method Market Value of Assets Projected Retirement Age Experience-based Table of Rates,specific to the type of eligibility condition,last updated for the 2020 valuation according to an experience study from years 2017 to 2019 For non-disabled retirees, the Pub-2010, Amount-Weighted, below-median income, General, Retiree, Male (adjusted 106%) and Female (adjusted 105%) tables, and future mortality improvements projected using scale MP-2020 were used. For disabled retirees, the Pub-2010, Amount-Weighted, below-median income, General, Disabled Retiree, Male and Female (both unadjusted) tables, and future mortality improvements projected using scale MP-2020 were used. For active members, the Pub-2010, Amount- Weighted, below-median income, General, Employee, Male and Female (both unadjusted) tables, and future mortality improvements projected using scale MP-2020 were used. G. Long-Term Expected Rate of Return The long-term expected rate of return on pension plan investments was determined using a building- block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense, and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return to the target asset allocation percentage and adding expected inflation. The target allocation and best estimates of geometric real rates of return for each major asset class are summarized in the following table as of December 31, 2021: Asset Class Target Allocation Projected Return Equities 39.00% 1.90% International Equities 15.00% 3.15% Fixed Income 25.00% -0.60% Real Estate 10.00% 3.30% Alternatives 10.00% Private Equity 5.50% Hedge Funds N/A Commodities 1.70% Cash 1.00% -0.90% 100.00% H. Single Discount Rate A Single Discount Rate of 7.25% was used to measure the total pension liability as of December 31, 2021. 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 73 NOTES TO FINANCIAL STATEMENTS (Continued) Page 39 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 1.84%; and resulting single discount rate is 7.25%. The prior year single discount rate was 7.25% and increased 0.00% to the current year single discount rate. I.Changes in Net Pension Liability Total Pension Plan Fiduciary Net Pension Liability Net Position Liability (A)(B)(A)-(B) Balances at December 31, 2020 43,538,937$ 41,759,806$ 1,779,131$ Changes for the year: Service Cost 728,190$ -$ 728,190$ Interest on the Total Pension Liability 3,102,945 - 3,102,945 Differences Between Expected and Actual Experience of the Total Pension Liability 979,789 - 979,789 Changes of Assumptions - - - Contributions - Employer - 1,068,306 (1,068,306) Contributions - Employee - 385,024 (385,024) Net Investment Income - 7,088,187 (7,088,187) Benefit Payments, including Refunds of Employee Contributions (2,207,589) (2,207,589) - Other (Net Transfer)- (35,322) 35,322 Net Changes 2,603,335$ 6,298,606$ (3,695,271)$ Balances at December 31, 2021 46,142,272$ 48,058,412$ (1,916,140)$ J.Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following presents the plan’s net pension liability, calculated using a Single Discount Rate of 7.25%, as well as what the plan’s net pension liability would be if it were calculated using a single Discount Rate that is 1% lower or 1% higher than the current rate: Current 1% Decrease Discount Rate 1% Increase 6.25%7.25%8.25% Net Pension Liability/(Asset)4,203,401$ (1,916,140)$ (6,717,922)$ K.Pension Expense/(Income) and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions For the year ended April 30, 2022, the City recognized pension expense/(income) of $(710,055). At April 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Outflows of Inflows of Net Outflows Expense in Future Periods Resources Resources of Resources Differences between expected and actual experience 1,582,440$ -$ 1,582,440$ Changes of assumptions 300,802 374,309 (73,507) Net difference between projected and actual earnings on pension plan investments - 5,361,184 (5,361,184) Total deferred amounts to be recognized in pension expense in future periods 1,883,242$ 5,735,493$ (3,852,251)$ Pension contributions made subsequent to the measurement date 302,778 - 302,778 Total deferred amounts related to pensions 2,186,020$ 5,735,493$ (3,549,473)$ 74 NOTES TO FINANCIAL STATEMENTS (Continued) Page 40 $302,778 reported as deferred outflows of resources related to pensions resulting from the City’s contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the reporting year ended April 30, 2023. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Net Deferred Year Ending Outflow s of December 31 Resources 2021 (582,055)$ 2022 (1,569,715) 2023 (1,054,368) 2024 (646,113) 2025 - Thereafter - (3,852,251)$ 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. B. Plan Membership At May 1, 2021, the date of the latest actuarial valuation, Plan participation consisted of: Retirees and beneficiaries receiving benefits 32 Terminated plan members entitled to but not yet receiving benefits 9 Active plan members 48 Total 89 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, 2022 the City’s contribution was 13.89% 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 75 NOTES TO FINANCIAL STATEMENTS (Continued) Page 41 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. Shortly after year-end, all investments were transferred into the Illinois Police Officers' Pension Investment Fund (IPOPIF) due to the pension consolidation act - Public Act (P.A.) 101-0610. Due to this, the following long-term expected rates below are representative expectations as disclosed in the IPOPIF actuarial experience study dated March 4, 2022. Long-Term Expected Long-Term Long-Term Expected Target Asset Class Rate of Return Inflation Expectations Real Rate of Return Allocation US Large 6.65%2.50%4.15%23.00% US Small 7.04%2.50%4.54%5.00% International Developed 7.14%2.50%4.64%18.00% International Developed Small 2.25%2.50%-0.25%5.00% Emerging Markets 7.81%2.50%5.31%7.00% Private Equity (Direct)9.65%2.50%7.15%7.00% Bank Loans 4.98%2.50%2.48%3.00% High Yield Corp. Credit 4.98%2.50%2.48%3.00% Emerging Market Debt 5.32%2.50%2.82%3.00% Private Credit 6.87%2.50%4.37%5.00% US TIPS 2.38%2.50%-0.12%3.00% Real Estate/Infrastructure 6.50%2.50%4.00%8.00% Cash 2.23%2.50%-0.27%1.00% Short-Term Gov't/Credit 3.23%2.50%0.73%3.00% US Treasury 1.90%2.50%-0.60%3.00% Core Plus Fixed Income 3.23%2.50%0.73%3.00% 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, 2022 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, 2022, the annual money-weighted rate of return on pension plan investments, net of pension plan investment expense, was (5.64)%. 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. 76 NOTES TO FINANCIAL STATEMENTS (Continued) Page 42 J. Interest Rate Risk The investments, maturities, and fair value measurements of the Plan’s debt securities can be found in Note 2. In accordance with its investment policy, the Plan limits its exposure to interest rate risk by structuring the portfolio to provide liquidity for operating funds and maximizing yields for funds not needed for expected current cash flows. The investment policy does not limit the maximum maturity length of investments in the Plan. K. Credit Risk The Plan limits its exposure to credit risk, the risk that the issuer of a debt security will not pay its par value upon maturity, by primarily investing in obligations guaranteed by the United States Government, securities issued by agencies of the United States Government that are explicitly or implicitly guaranteed by the United States Government, and investment grade corporate bonds rated by at least one of the two largest rating services at the time of purchase. If subsequently downgraded below investment grade, the bonds must be liquidated by the manager from the portfolio within 90 days after being downgraded. However, certain fixed income securities are not rated. As of April 30, 2022, the Plan’s investments ratings can be found in Note 2. L. Net Pension (Asset)/Liability The components of the net pension liability of the Plan as of April 30, 2022, calculated in accordance with GASB Statement No. 68, were as follows: Total Pension Liability 57,107,066$ Plan Fiduciary Net Position 56,638,040 City's Net Pension (Asset)/Liability 469,026 Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 99.18% See the Schedule of Changes in the Employer’s Net Pension Liability and Related Ratios in the Required Supplementary Information for additional information related to the funded status of the Plan. M. Actuarial Assumptions The total pension liability above was determined by an actuarial valuation performed as of April 30, 2022 using the following actuarial methods and assumptions: Actuarial Valuation Date May 1, 2021 Actuarial Cost Method Entry Age Normal (Level %) Assumptions Inflation 2.25% Salary Increases 3.75% - 10.02% Investment Rate of Return 7.00% Asset Valuation Method Market Value Mortality rates were based on the PubS-2010(A). The other non-economic actuarial assumptions used in the May 1, 2021 valuation were based on a review of assumptions in the L&A 2020 study for Illinois Police Officers. Active Mortality follows the Sex Distinct Raw Rates as developed in the PubS-2010(A) Study. Mortality improvement uses MP-2019 Improvement Rates applied on a fully generational basis. 50% of active Member deaths are assumed to be in the Line of Duty. 77 NOTES TO FINANCIAL STATEMENTS (Continued) Page 43 Retiree Mortality follows the L&A Assumption Study for Police 2020. These rates are experience weighted with the Sex District Raw Rates as developed in the PubS-2010(A) Study improved to 2017 using MP- 2019 Improvement Rates. These rates are then improved fully generationally using MP-2019 Improvement Rates. Disabled Mortality follows the Sex Distinct Raw Rates as developed in the PubS-2019 Study for disabled participants. Mortality improvement uses MP-2019 Improvement Rates applied on a fully generational basis. Spouse Mortality follows the Sex Distinct Raw Rates as developed in the PubS-2010(A) Study for contingent survivors. For all rates not provided there (ages 45 and younger) the PubG-2010 Study for general employees was used. Mortality improvement uses MP-2019 Improvement Rates applied on a fully generational basis. Other actuarial assumption (demographic) rates are based on a review of the L&A Assumption Study for Police 2020. N. Discount Rate The discount rate used to measure the total pension liability was 7%. The discount rate used in the determination of the Total Pension Liability is based on a combination of the expected long-term rate of return on plan investments and the municipal bond rate. Cash flow projections were used to determine the extent which the plan’s future net position will be able to cover future benefit payments. To the extent future benefit payments are covered by the plan’s projected net position, the expected rate of return on plan investments is used to determine the portion of the net pension liability associated with those payments. To the extent future benefit payments are not covered by the plan’s projected net position, the municipal bond rate is used to determine the portion of the net pension liability associated with those payments. 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, 2021 56,351,734$ 61,710,979$ (5,359,245)$ Changes for the year: Service Cost 1,104,977$ -$ 1,104,977$ Interest on the Total Pension Liability 3,739,492 - 3,739,492 Differences Between Expected and Actual Experience (1,660,449) - (1,660,449) Contributions - Employer - 655,318 (655,318) Contributions - Employee - 467,800 (467,800) Contributions - Other - 27,092 (27,092) Net Investment Income - (3,752,680) 3,752,680 Benefit Payments, including Refunds of Employee Contributions (2,428,688) (2,428,688) - Administrative Expense - (41,781) 41,781 Net Changes 755,332$ (5,072,939)$ 5,828,271$ Balances at April 30, 2022 57,107,066$ 56,638,040$ 469,026$ 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: 78 NOTES TO FINANCIAL STATEMENTS (Continued) Page 44 Current 1% Decrease Discount Rate 1% Increase 6.00% 7.00% 8.00% Net Pension Liability/(Asset)9,096,440$ 469,026$ (6,538,787)$ Q. Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions For the year ended April 30, 2022, the City recognized pension expense of $366,990. At April 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Outflows of Inflows of Net Outflows Expense in Future Periods Resources Resources of Resources Differences between expected and actual experience 710,769$ 1,944,382$ (1,233,613)$ Assumption changes 681,272 390,787 290,485 Net difference between projected and actual earnings on pension investments 3,144,427 - 3,144,427 Total deferred amounts to be recognized in pension expense in future periods 4,536,468$ 2,335,169$ 2,201,299$ 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 Outflow s of April 30 Resources 2023 365,629$ 2024 299,102 2025 55,994 2026 1,599,288 2027 (19,069) Thereafter (99,645) 2,201,299$ NOTE 14 - POST EMPLOYMENT BENEFIT COMMITMENTS A. Retiree Insurance Plan Plan Overview In addition to the retirement plans described in Notes 12 and 13, the City provides post-employment benefits other than pensions (“OPEB”) for retired employees through a single-employer defined benefit plan. The benefits, benefit levels, employee contributions and employer contributions are governed by the City and can be amended by the City through its personnel manual and union contracts. The plan is not accounted for as a trust fund, as an irrevocable trust has not been established to account for the plan. The plan does not issue a separate report. The activity of the plan is reported in the City’s governmental activities. Benefits Provided The City provides postemployment health care benefits to its retirees and certain disable employees. To be eligible for benefits, an employee must qualify for retirement under one of the City’s retirement plans or meet COBRA requirements. All health care benefits are provided through the City’s insured health plan. The benefit levels are the same as those afforded to active employees. The Plan provides the following coverage: 79 NOTES TO FINANCIAL STATEMENTS (Continued) Page 45 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. Membership Membership in the plan consisted of the following at May 1, 2021, the date of the latest actuarial valuation: Active employees 112 Inactiv e employees entitled to but not yet receiving benefits - Inactive employees currently receiving benefits 15 Total 127 Total OPEB Liability The City’s total OPEB liability was measured as of April 30, 2022, and the total OPEB liability was determined by an actuarial valuation as of May 1, 2021. Actuarial Assumptions The total OPEB liability in the May 1, 2021 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 3.98% Inflation 3.00% Salary Rate Increase 4.00% Health Care Trend Initial Trend Rate 5.50% Ultimate Trend Rate 4.50% FY the Ultimate Rate is Reached 2038 Mortality Disability Rates Election at Retirement Marital Status Active Employees: PubG.H-2010(B) Mortality Table - General (below median income) with future mortality improvements using Scale MP-2020 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. A ctual spouse date was used for current retirees. Retirees: PubG.H-2010(B) Mortality Table - General (below-median income). Male adjusted 106% and Female adjusted 105% tables, with future mortality improvements using scale MP-2020 Police Employees and Retirees: PubS.H-2010(A) Mortality Table - Safety with future mortality improvements using Scale MP-2020. IMRF Employees: Rates from the December 31, 2020 IMRF Actuarial Valuation Report Police Employees: Rates from the City of McHenry Police Pension Fund Actuarial Valuation for the Year Beginning May 1, 2020 10% of active employees are assumed to elect coverage at retirement The actuarial assumptions used in the May 1, 2021 valuation were based on information found in the most recent IMRF and Police Pension actuarial valuation reports. Assumption changes reflect a change in the discount rate of 2.15 from 1.83% for the beginning of the year values and 3.98% for the disclosure date. 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. 80 NOTES TO FINANCIAL STATEMENTS (Continued) Page 46 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 3.98% is used, which is the S&P Municipal Bond 20-Year High-Grade Rate Index as of April 30, 2022. Changes in the Total OPEB Liability Total OPEB Plan Fiduciary Net OPEB Liability Net Position Liability (a)(b)(a) - (b) Balances at April 30, 2021 5,717,430$ -$ 5,717,430$ Changes for the year: Service Cost 38,558$ -$ 38,558$ Interest on Total OPEB Liability 103,035 - 103,035 Changes of Benefit Terms (3,356,991) - (3,356,991) Difference between Expected & Actual Experience 393,032 - 393,032 Assumption Changes (1,390,894) - (1,390,894) Benefit Payments (174,427) - (174,427) Net Changes (4,387,687)$ -$ (4,387,687)$ Balances at April 30, 2022 1,329,743$ -$ 1,329,743$ Increase/(Decrease) Sensitivity of the Total OPEB Liability to Changes in the Discount Rate The following presents the total OPEB liability of the City, as well as what the City’s total OPEB liability would be if it were calculated using a discount rate that is 1 percentage-point lower or 1 percentage-point higher than the current discount rate: 1% Increase Valuation Rate 1% Decreas e 1,202,913$ 1,329,743$ 1,486,500$ Plan's Total OPEB Liability/(Asset) Sensitivity of the Total OPEB Liability to Changes in the Health Care Cost Trend Rates The following presents the total OPEB liability of the City, as well as what the City’s total OPEB liability would be if it were calculated using healthcare cost trend rates that are 1 percentage-point lower or 1 percentage-point higher than the current healthcare cost trend rates: Healthcare Cost 1% Increase Valuation Rate 1% Decrease 1,505,527$ 1,329,743$ 1,188,028$ Plan's Total OPEB Liability/(Asset) OPEB Expense/(Income) and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB For the fiscal year ended April 30, 2022, the City recognized OPEB expense/(income) of $(3,347,451). At April 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: 81 NOTES TO FINANCIAL STATEMENTS (Continued) Page 47 Deferred Outflows Deferred Inflows of Net Inflows of Resourc es Resources of Resources Differences Between Expected and Actual Experience 352,088$ 1,125,009$ (772,921)$ Changes of Assumptions 1,697,536 1,956,371 (258,835) Total 2,049,624$ 3,081,380$ (1,031,756)$ Changes in total OPEB liability related to the difference in actual and expected experience, or changes in assumptions regarding future events, are recognized in OPEB expense over the expected remaining service life of all employees (9.6 years, active and retired) in the postretirement plan. Amounts reported as deferred outflows of resources related to OPEB will be recognized as future OPEB expense as follows: Year ending April 30 Net Inflows of Resources 2023 (132,052)$ 2024 (132,052) 2025 (132,052) 2026 (132,052) 2027 (132,052) 2028-2031 (371,496) (1,031,756)$ 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, 2022 consisted of the following: Due From Due To Amount General Fund Water and Sewer Fund 61,040$ 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, 2022 consisted of the following: Transfer From Transfer To Amount Water and Sewer Fund Nonmajor Governmental Funds 93,048$ General Fund Nonmajor Governmental Funds 2,606,705 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. 82 NOTES TO FINANCIAL STATEMENTS (Continued) Page 48 The relationship between the City and MCMRMA is governed by a contract and by-laws that have been adopted by resolution of each unit’s governing body. The City is contractually obligated to make all annual and supplementary contributions for MCMRMA, to report claims on a timely basis, cooperate with MCMRMA, its claims administrator and attorneys in claims investigation and settlement, and to follow risk management procedures as outlined by MCMRMA. Members have a contractual obligation to fund any deficit of MCMRMA attributable to a membership year during which they were a member. MCMRMA is responsible for administering the self-insurance program and purchasing excess insurance according to the direction of the Board of Directors. MCMRMA also provides its members with risk management services, including the defense of and settlement of claims, and establishes reasonable and necessary loss of reduction and prevention procedures to be followed by the members. During fiscal year 2022 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, 2022, 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, parking lot improvements, riverwalk construction, horse barn improvements, and other various parks projects as of April 30, 2022 totaling $1,277,305. Beginning in May 2022 the City has a contract commitment in place for various road projects for $3,256,103. For the Water and Sewer Fund as of April 30, 2022, there were contract commitments in place for Route 31 Utility Relocation, City Wide Water and Sewer Model update, and Sanitary Sewer Lining totaling $335,670. NOTE 18 - CONTINGENCIES There is no outstanding litigation which may have a materially adverse effect on the City’s financial position. NOTE 19 - LEGAL DEBT LIMITATION The Illinois Compiled Statutes limits the amount of indebtedness to 8.625% of the most recent available equalized assessed valuation (EAV) of the City. 2021 EAV 782,126,233$ X 8.625% Debt Margin 67,458,388$ Current Debt 32,156,419 Remaining Debt Margin 35,301,969$ 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 various entities as of April 30, 2022 as follows: 83 NOTES TO FINANCIAL STATEMENTS (Continued) Page 49 Name of Eligibility Criteria Amount of Taxes Abatement Type of Taxes and Mechanism Abated During Agreement Abated of Abatement the Fiscal Year Gary Lang Business District Developm ent Agreement Sales taxes First $450,000 in sales tax revenues generated within the Business District Property are retained by the City, 100% of the sales tax revenue generated within the Business District Property between $450,000 and $750,000 annuallyshall be rebated to Gary Lang,60% of sales tax revenue generated within the Business District Property above $750,000 shall be rebated to Gary Lang.The total rebate for the year cannotexceed 55% of the total annual sales tax revenue generated with the Business District Property.The total rebate payments cannot exceed $8,441,377.04 or 20 years. 564,524$ 1110 N Green LLC Redevelopment Agreement TIF property taxes Rebate 100% of the TIF Increment assessed up to $624,028.-$ McHenry Commons Shopping Center Economic Incentive Agreement Sales taxes Rebate 100% of base sales ta x received by the State attributable to the gross sales generated at the Hobby Lobby Store.The total rebate payments cannotexceed $677,500 or 20 years. 41,355$ CVS Pharmacy Economic Incentive Agreement Sales taxes Rebate 50% of sales tax revenues generated by CVS Pharmacy in calendar years 2016 through 2020 and 25% of sales tax revenues generated by CVS Pharmacy in calendar years 2021 through 2025.The total rebate payments cannot exceed $175,000. -$ Tea Olive, I LLC Sales taxes Rebate 100% of base sales ta x received by the State attributable to the gross sales generated at the Big R Store.The total rebate payments cannot exceed $400,000 and end December 31, 2020. -$ 3017 Route 120 & Northwest Suburban Auto Group Economic Incentive Agreement Sales taxes Rebate 50% of base sales ta x in calendar years 2017 through 2021 and 25% of base sales tax in calendar years 2022 through 2026 received by the State attributable to the gross sales generated atNorthwest Suburban Auto Group.The total rebate payments cannot exceed $150,000. -$ McHenry Donuts, Inc. Economic Incentive Agreement Sales taxes Rebate 100% of Non-Home Rule Sales taxes in 2017 through 2026 up to $62,500.13,399$ Sunnyside Auto Finance Company Econom ic Incentive Agreement Sales taxes Rebate percentage during years 2017-2019 75% above $66,212.Years 2020-2027 50% above $66,212. Years 2028-2036 25% above $66,212. Not to exceed $300,000. 14,757$ Curt Ames DBA Chain O'Lakes Brewing Company Redevelopment Agreement TIF Property Taxes Rebate 100% of the TIF Increment assessed up to $17,585.-$ 84 NOTES TO FINANCIAL STATEMENTS (Continued) Page 50 Name of Eligibility Criteria Amount of Taxes Abatement Type of Taxes and Mechanism Abated During Agreement Abated of Abatement the Fiscal Year Seth Wagner and Associates Real Estate Com pany Property Tax Abatement Agreement Property Taxes Abate real estate taxes levied against the subject property each year that the taxing body's propertytaxes exceed the dollar amount from the 2014 base property tax year ($3,458.64) through December 31, 2026. 5,583$ Boone Creek Crossing LLC Redevelopment Agreement TIF Property Taxes Rebate 100% of the TIF Increm ent assessed up to $25,000 1,300$ Graham Enterprise Inc Economic Incentive Agreement Sales taxes Rebate 50% ofbase and home rule sales tax received above $1,666.67 per month by the State attributable to the gross sales generated at McHenry BP sites at 5301 Bull Valley Road and 5520 W.Elm Street.The total rebate payments cannot exceed $1,000,000 and end December 31,2039. These rebates do not begin until buildings are torn down at 5301 Bull ValleyRoad, 5520 W.Elm St,and 4410 W.Elm St;and a new building is built at 5301 Bully Valley Road. 91,185$ BPI, Break Parts Inc LLC Property Tax Abatem ent Agreement Property Taxes 10-year 100% abatement over and above the 2018 taxes commencing with the 2019 tax bill payable in 2020 through the 2028 tax bill payable in 2029. 12,297$ RR McHenry LLC Economic Incentive Agreement Sales taxes Rebate 50% ofbase and home rule sales tax received by the State attributable to the property at the NW corner of IL Route 120 and Chapel Hill Road, excluding the Riverside Chocolate Factory parcel.The total rebate payments cannot exceed $1,000,000 and end after the 20th Sales Tax Incentive Year. 30,585$ NOTE 21 - SUBSEQUENT EVENTS On December 18, 2019, Governor JB Pritzker signed SB1300. The law, a Public Act (P.A.), 101-0610, represents the culmination of more than a decade of work by the Illinois Municipal League (IML). The law consolidates the assets of the state’s more than 650 downstate and suburban public safety pension funds into two consolidated investment funds, one for police officers (Article 3) and one for firefighters (Article 4), which will improve investment returns, eliminate unnecessary and redundant administrative costs, ensure more money is available to fund pension benefits, and reduce the burden on local taxpayers. The law was effective as of January 1, 2020. All pension fund assets, currently reported within the fiduciary fund statements of the Plan, will be transferred to Police’s pension investment fund no later than 30 months after the effective date of the transitions. This may change the reporting of the Fund as a fiduciary fund in future reporting periods. The Pension Plan transferred assets to the fund on September 1, 2022. 85 REQUIRED SUPPLEMENTARY INFORMATION 86 4/30/2022*4/30/2021*4/30/2020*4/30/2019*4/30/2018*4/30/2017*4/30/2016* TOTAL PENSION LIABILITY Service Cost 728,190$ 805,614$ 781,612$ 740,595$ 707,796$ 704,466$ 652,882$ Interest on Total Pension Liability 3,102,945 2,967,915 2,796,732 2,641,076 2,542,116 2,419,748 2,286,008 Differences Between Expected and Actual Experience 979,789 680,117 594,214 381,201 646,124 (98,080) 86,269 Changes of Assumptions - (475,311) - 1,199,530 (1,124,675) (136,959) 44,481 Benefit Payments, Including Refunds of Member Contributions (2,207,589) (1,946,703) (1,700,114) (1,543,189) (1,393,390) (1,384,293) (1,144,016) Net Change in Total Pension Liability 2,603,335$ 2,031,632$ 2,472,444$ 3,419,213$ 1,377,971$ 1,504,882$ 1,925,624$ Total Pension Liability - Beginning 43,538,937 41,507,305 39,034,861 35,615,648 34,237,677 32,732,795 30,807,171 Total Pension Liability - Ending 46,142,272$ 43,538,937$ 41,507,305$ 39,034,861$ 35,615,648$ 34,237,677$ 32,732,795$ PLAN FIDUCIARY NET POSITION Contributions - Employer 1,068,306$ 1,137,523$ 787,631$ 918,212$ 915,963$ 844,878$ 801,851$ Contributions - Member 385,024 361,437 344,894 340,841 328,547 366,710 277,350 Net Investment Income 7,088,187 5,164,342 5,817,683 (1,672,533) 4,871,136 1,840,322 133,288 Benefit Payments, Including Refunds of Member Contributions (2,207,589) (1,946,703) (1,700,114) (1,543,189) (1,393,390) (1,384,293) (1,144,016) Administrative Expenses (35,322) 131,829 196,150 493,832 (352,231) 293,436 (161,598) Net Change in Plan Fiduciary Net Position 6,298,606$ 4,848,428$ 5,446,244$ (1,462,837)$ 4,370,025$ 1,961,053$ (93,125)$ Plan Net Position - Beginning 41,759,806 36,911,378 31,465,134 32,927,971 28,557,946 26,596,893 26,690,018 Plan Net Position - Ending 48,058,412$ 41,759,806$ 36,911,378$ 31,465,134$ 32,927,971$ 28,557,946$ 26,596,893$ City's Net Pension Liability (1,916,140)$ 1,779,131$ 4,595,927$ 7,569,727$ 2,687,677$ 5,679,731$ 6,135,902$ Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 104.15%95.91%88.93%80.61%92.45%83.41%81.25% Covered-Valuation Payroll 7,995,414$ 8,031,924$ 7,718,418$ 7,538,685$ 7,241,274$ 6,362,027$ 6,163,340$ Employer's Net Pension Liability as a Percentage of Covered-Valuation Payroll -23.97%22.15%59.54%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. CITY OF MCHENRY, ILLINOIS ILLINOIS MUNICIPAL RETIREMENT FUND SCHEDULE OF CHANGES IN THE EMPLOYER'S NET PENSION LIABILITY AND RELATED RATIOS APRIL 30, 2022 Page 51 See Accompanying Independent Auditor's Report 87 4/30/2022*4/30/2021*4/30/2020*4/30/2019*4/30/2018*4/30/2017*4/30/2016* Actuarially-Determined Contribution 978,639$ 983,107$ 796,541$ 918,212$ 908,056$ 844,877$ 801,851$ Contributions in Relation to Actuarially-Determined Contribution 1,068,306 1,137,523 787,631 918,212 915,963 844,878 801,851 Contribution Deficiency/(Excess)(89,667)$ (154,416)$ 8,910$ -$ (7,907)$ (1)$ -$ Covered Payroll 7,213,419$ 7,135,984$ 7,780,883$ 7,594,095$ 7,469,026$ 6,362,027$ 6,163,340$ Contributions as a Percentage of Covered Payroll 14.81%15.94%10.12%12.09%12.26%13.28%13.01% Notes to Schedule: Actuarially determined contribution rates are calculated as of December 31 each year, which are 12 months prior to the beginning of the fiscal year in which contributions are reported. Remaining Amortization Period: 22-year closed period Price Inflation: 2.50%, approximate; No explicit price inflation assumption is used in this valuation. Retirement Age: Experience-based table of rates that are specific to the type of eligibility condition; last updated for the 2017 valuation pursuant to an experience study of the period 2014 to 2016. Actuarial Cost Method: Aggregate entry age = normal Amortization Method: Level percentage of payroll, closed Asset Valuation Method: 5-year smoothed market; 20% corridor Wage Growth: 3.25% CITY OF MCHENRY, ILLINOIS ILLINOIS MUNICIPAL RETIREMENT FUND SCHEDULE OF EMPLOYER CONTRIBUTION LAST TEN FISCAL YEARS Actuarial Method and Assumptions Used on the Calculation of the 2021 Contribution Rate * Salary Increases: 3.35% to 14.25%, including inflation Investment Rate of Return: 7.25% Mortality: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 rates were 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 rates were 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. *Based on Valuation Assumptions used in the December 31, 2019 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. Page 52 See Accompanying Independent Auditor's Report 88 4/30/2022 4/30/2021 4/30/2020 4/30/2019 4/30/2018 4/30/2017 4/30/2016 4/30/2015 TOTAL PENSION LIABILITY Service Cost 1,104,977$ 1,106,282$ 1,020,016$ 964,573$ 969,843$ 906,395$ 948,282$ 876,654$ Interest 3,739,492 3,687,359 3,400,174 3,244,523 3,100,186 3,130,927 2,940,204 2,804,198 Changes in Benefit Terms - - 267,927 - - - - - Differences Between Expected and Actual Experience (1,660,449) (143,994) 953,997 165,685 (13,601) (1,315,850) (531,862) (300,710) Changes in Assumptions - - 1,039,838 - - (1,259,209) 4,137,023 391,028 Benefit Payments, Including Refunds of Member Contributions (2,428,688) (2,441,099) (2,225,355) (2,077,032) (1,911,914) (1,890,931) (2,046,745) (1,868,756) Net Change in Total Pension Liability 755,332$ 2,208,548$ 4,456,597$ 2,297,749$ 2,144,514$ (428,668)$ 5,446,902$ 1,902,414$ Total Pension Liability - Beginning 56,351,734 54,143,186 49,686,589 47,388,840 45,244,326 45,672,994 40,226,092 38,323,678 Total Pension Liability - Ending 57,107,066$ 56,351,734$ 54,143,186$ 49,686,589$ 47,388,840$ 45,244,326$ 45,672,994$ 40,226,092$ PLAN FIDUCIARY NET POSITION Contributions - Employer 655,318$ 26,150,315$ 2,077,704$ 2,017,300$ 1,868,798$ 1,521,914$ 1,386,205$ 1,295,101$ Contributions - Member 467,800 469,279 500,202 427,378 409,415 397,515 513,111 381,363 Contributions - Other 27,092 435,068 - 1,221 - - - - Net Investment Income (3,752,680) 9,474,445 249,889 1,454,043 2,225,784 2,041,694 (228,847) 1,101,915 Benefit Payments, Including Refunds of Member Contributions (2,428,688) (2,441,099) (2,225,355) (2,077,032) (1,911,914) (1,890,931) (2,046,745) (1,868,756) Administrative Expenses (49,007) (25,668) (100,204) (17,813) (18,717) (41,164) (29,539) (36,845) Net Change in Plan Fiduciary Net Position (5,080,165)$ 34,062,340$ 502,236$ 1,805,097$ 2,573,366$ 2,029,028$ (405,815)$ 872,778$ Plan Net Position - Beginning 61,718,205 27,655,865 27,153,629 25,348,532 22,775,166 20,746,138 21,151,953 20,279,175 Plan Net Position - Ending 56,638,040$ 61,718,205$ 27,655,865$ 27,153,629$ 25,348,532$ 22,775,166$ 20,746,138$ 21,151,953$ City's Net Pension Liability 469,026$ (5,366,471)$ 26,487,321$ 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 99.18%109.52%51.08%54.65%53.49%50.34%45.42%52.58% Covered-Employee Payroll 4,717,332$ 4,686,805$ 4,444,767$ 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 9.94%-114.50%595.92%533.44%524.17%550.40%642.32%503.08% 2022 2021 2020 2019 2018 2017 2016 2015 Annual Money-Weighted Rate of Return, Net of Investment Expenses 4.26%32.11%-0.48%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. CITY OF MCHENRY, ILLINOIS POLICE PENSION PLAN SCHEDULE OF CHANGES IN THE EMPLOYER'S NET PENSION LIABILITY AND RELATED RATIOS APRIL 30, 2022 Page 53 See Accompanying Independent Auditor's Report 89 4/30/2022 4/30/2021 4/30/2020 4/30/2019 4/30/2018 4/30/2017 4/30/2016 4/30/2015 Actuarially-Determined Contribution 2,576,006$ 2,231,742$ 2,082,421$ 2,019,703$ 1,874,219$ 1,524,244$ 1,387,374$ 1,295,577$ Contributions in Relation to Actuarially-Determined Contribution 655,318 26,150,315 2,077,704 2,017,300 1,868,798 1,521,914 1,386,205 1,295,101 Contribution Deficiency/(Excess)1,920,688$ (23,918,573)$ 4,717$ 2,403$ 5,421$ 2,330$ 1,169$ 476$ Covered-Employee Payroll 4,717,332$ 4,686,805$ 4,422,539$ 4,324,167$ 4,291,809$ 4,082,315$ 3,880,748$ 3,791,467$ Contributions as a Percentage of Covered-Employee Payroll 13.89%557.96%46.98%46.65%43.54%37.28%35.72%34.16% Notes to Schedule: Salary Increases: 3.75% to 10.02%, including inflation 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. Actuarial Method and Assumptions Used on the Calculation of the 2021 Contribution Rate * Actuarial Cost Method: Entry age normal Amortization Method: Level percentage of payroll, closed Termination Rates: 100% of L&A 2020 Illinois Police Termination Rates Disability Rates: 100% of L&A 2020 Illinois Police Disability Rates *Based on Valuation Assumptions used in the May 1, 2020 actuarial valuation for the December 2020 tax levy, if applicable Investment Rate of Return: 7.00% Retirement Age: 100% of L&A 2020 Illinois Police Retirement Rates Capped at Age 65 Remaining Amortization Period: 20-year closed period Asset Valuation Method: 5-year smoothed market; 20% corridor Wage Growth: 3.00% Price Inflation: 2.25%, approximate; No explicit price inflation assumption is used in this valuation. CITY OF MCHENRY, ILLINOIS POLICE PENSION PLAN SCHEDULE OF EMPLOYER CONTRIBUTION LAST TEN FISCAL YEARS Page 54 See Accompanying Independent Auditor's Report 90 4/30/2022 4/30/2021 4/30/2020 4/30/2019 TOTAL OPEB LIABILITY Service Cost 38,558$ 38,278$ 36,378$ 32,964$ Interest 103,035 165,119 171,790 209,775 Changes in Benefit Terms (3,356,991) - - - Differences Between Expected and Actual Experience 393,032 (646,027) - (1,070,724) Benefit Payments (174,427) (214,301) (162,019) (167,232) Changes in Assumptions (1,390,894) 473,546 513,575 417,482 Other Changes - - (91,626) 147,912 Net Change in Total OPEB Liability (4,387,687)$ (183,385)$ 468,098$ (429,823)$ Total OPEB Liability - Beginning 5,717,430 5,900,815 5,432,717 5,862,540 Total OPEB Liability - Ending 1,329,743$ 5,717,430$ 5,900,815$ 5,432,717$ Covered-Employee Payroll 9,802,365$ 9,342,565$ 8,796,233$ *8,796,233$ Employer's Net OPEB Liability as a Percentage of Covered-Valuation Payroll 13.57%61.20%67.08%61.76% Notes to Schedule: The following are the discount rates used in each period:3.98%1.83%3.21%3.21% No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75. This schedule is presented to illustrate the requirement to show information for ten years. However, until a full ten-year trend is compiled, information is presented for those years for which information is available. Changes of Assumptions. Changes of assumptions and other inputs reflect the effects of changes in the discount rate of each period. There is no actuarially-determined contribution (ADC)or employer contribution in relation to the ADC as the total OPEB liabilities are currently an unfunded obligation. * - Covered-Employee Payroll is the same as the prior year due to the valuation being a rollforward instead of a new valuation. CITY OF MCHENRY OTHER POST-EMPLOYMENT BENEFIT SCHEDULE OF CHANGES IN THE EMPLOYER'S TOTAL OPEB LIABILITY AND RELATED RATIOS APRIL 30, 2022 Page 55 See Accompanying Independent Auditor's Report 91 Actual Original Final Amounts REVENUES Local Taxes Property Tax 4,950,359$ 4,950,359$ 4,844,022$ Intergovernmental State Sales Tax 10,975,350 10,975,350 12,807,479 State Income Tax 2,993,413 2,993,413 4,301,251 State Replacement Tax 65,000 65,000 184,105 State Pull Tab/Games Tax 900 900 674 Inter Track Wagering Tax 15,000 15,000 31,550 State Telecommunications Tax 270,000 270,000 209,789 Cannabis Use Tax 18,000 18,000 43,074 Federal Grants - - 1,841,293 Other Local Sources Hotel/Motel Tax 100,000 100,000 185,360 Franchise Fees 350,000 350,000 386,552 Licenses and Permits 787,500 787,500 1,291,057 Fines and Forfeitures 367,500 367,500 480,503 Charges for Services 1,193,289 1,193,289 1,371,889 Interest 21,550 21,550 12,967 Local Grants - - 33,461 Miscellaneous Rent 18,000 18,000 18,694 Royalties 175,000 175,000 175,000 Donations - - 13,064 Annexation Fees 150,000 150,000 - Reimbursements 2,059,251 2,059,251 2,686,722 Other Miscellaneous 73,250 73,250 119,709 Total Revenues 24,583,362$ 24,583,362$ 31,038,215$ EXPENDITURES Current General Office Administration 1,242,589$ 1,252,589$ 1,025,130$ Elected Officials 85,983 85,983 65,311 Community Development 908,233 970,833 919,456 Finance Department 1,382,522 1,382,522 1,451,648 Human Resources 268,821 268,821 273,833 Economic Development 402,922 402,922 328,862 4,291,070$ 4,363,670$ 4,064,240$ Public Safety Police Commission 6,953$ 6,953$ 6,788$ Police Department 9,254,838 9,254,838 9,068,621 Dispatch Center 2,679,504 2,679,504 2,580,077 11,941,295$ 11,941,295$ 11,655,486$ Public Works Administration 435,669$ 435,669$ 441,762$ Street Department 2,866,676 2,866,676 2,783,192 3,302,345$ 3,302,345$ 3,224,954$ Parks and Recreation Parks and Recreation 2,497,962$ 2,497,962$ 2,626,103$ 2,497,962$ 2,497,962$ 2,626,103$ Budgeted Amounts CITY OF MCHENRY, ILLINOIS FOR THE YEAR ENDED APRIL 30, 2022 GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL Page 56 See Accompanying Independent Auditor's Report 92 Actual Original Final Amounts Budgeted Amounts CITY OF MCHENRY, ILLINOIS FOR THE YEAR ENDED APRIL 30, 2022 GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL EXPENDITURES (Continued) Capital Outlay General Office Administration 985,000$ 1,425,298$ 1,205,794$ Public Safety Police Department 3,500 29,773 39,330 Public Works Street Department 525,000 525,000 476,687 Parks and Recreation Parks and Recreation - - 5,517 Unallocated - 22,022 - 1,513,500$ 2,002,093$ 1,727,328$ Debt Service Principal 344,568$ 344,568$ 312,724$ Interest and Fees 7,000 7,000 35,506 351,568$ 351,568$ 348,230$ Total Expenditures 23,897,740$ 24,458,933$ 23,646,341$ EXCESS OR (DEFICIENCY) OF REVENUES OVER EXPENDITURES 685,622$ 124,429$ 7,391,874$ OTHER FINANCING SOURCES/(USES) Transfers (1,994,757)$ (1,994,757)$ (2,606,705)$ Proceeds from Loan - - 171,627 Sale of City Property 10,000 10,000 20,300 (1,984,757)$ (1,984,757)$ (2,414,778)$ NET CHANGE IN FUND BALANCE (1,299,135)$ (1,860,328)$ 4,977,096$ FUND BALANCE - MAY 1, 2021 12,140,533 FUND BALANCE - APRIL 30, 2022 17,117,629$ Page 57 See Accompanying Independent Auditor's Report 93 Page 58 CITY OF MCHENRY, ILLINOIS NOTES TO REQUIRED SUPPLEMENTARY INFORMATION APRIL 30, 2022 NOTE 1 - BUDGET Budgets are adopted on a basis consistent with generally accepted accounting principles. Annual budgets are adopted for all funds except custodial 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 19, 2021 and was amended twelve times during the fiscal year with the final amendment occurring on March 21, 2022. NOTE 2 - EXCESS OF EXPENDITURES OVER BUDGET For the year ended April 30, 2022, the funds presented as Required Supplementary Information did not have expenditures that exceeded the budget. 94 SUPPLEMENTAL FINANCIAL INFORMATION 95 Civil Revolving Total General Annexation Alarm Board Band Defense Loan Tourism General Fund Fund Fund Fund Fund Fund Fund Fund ASSETS Cash and Cash Equivalents 9,632,367$ 936,435$ 985,019$ 11,705$ 10,091$ 238,190$ 103,033$ 11,916,840$ Investments 1,976,497 20,291 - 1,588 - 3,691 16,577 2,018,644 Prepaid Items 38,726 - - - - - - 38,726 Receivables (Net of Allowance for Estimated Uncollectible Amounts) Accounts Receivable - Billed 459,331 6,450 21,420 - - 61,631 12,000 560,832 Accounts Receivable - Unbilled 103,582 - 36,720 - - - 19,335 159,637 Property Taxes 5,003,951 - - - - - - 5,003,951 Accrued Interest 1,124 1 - - - 336 1 1,462 Due from Other Governmental Units 3,996,912 - - - - - - 3,996,912 Grants Receivable 1,841,293 - - - - - - 1,841,293 Cable Franchise Fee Receivable 130,550 - - - - - - 130,550 Inventory 122,096 - - - - - - 122,096 TOTAL ASSETS 23,306,429$ 963,177$ 1,043,159$ 13,293$ 10,091$ 303,848$ 150,946$ 25,790,943$ LIABILITIES Accounts Payable and Accrued Expenditures 1,120,984$ -$ 57,379$ -$ -$ 2,462$ 10,000$ 1,190,825$ Due to Other Funds 63,430 - - - - - - 63,430 Unearned Revenue 2,415,108 - - - - - - 2,415,108 TOTAL LIABILITIES 3,599,522$ -$ 57,379$ -$ -$ 2,462$ 10,000$ 3,669,363$ DEFERRED INFLOWS OF RESOURCES Unavailable Revenue - Property Taxes 5,003,951$ -$ -$ -$ -$ -$ -$ 5,003,951$ TOTAL DEFERRED INFLOWS OF RESOURCES 5,003,951$ -$ -$ -$ -$ -$ -$ 5,003,951$ FUND BALANCES Nonspendable 160,822$ -$ -$ -$ -$ -$ -$ 160,822$ Assigned for: Alarm - - 985,780 - - - - 985,780 Tourism - - - - - - 140,946 140,946 Band - - - 13,293 - - - 13,293 Capital Projects - 963,177 - - - - - 963,177 Revolving Loan - - - - - 301,386 - 301,386 Civil Defense - - - - 10,091 - - 10,091 Unassigned 14,542,134 - - - - - - 14,542,134 TOTAL FUND BALANCES 14,702,956$ 963,177$ 985,780$ 13,293$ 10,091$ 301,386$ 140,946$ 17,117,629$ TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES 23,306,429$ 963,177$ 1,043,159$ 13,293$ 10,091$ 303,848$ 150,946$ 25,790,943$ CITY OF MCHENRY, ILLINOIS COMBINING BALANCE SHEET - GENERAL FUND APRIL 30, 2022 Page 59 See Accompanying Independent Auditor's Report 96 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 4,844,022$ -$ -$ -$ -$ -$ -$ 4,844,022$ Intergovernmental State Sales Tax 12,807,479 - - - - - - 12,807,479 State Income Tax 4,301,251 - - - - - - 4,301,251 State Replacement Tax 184,105 - - - - - - 184,105 State Pull Tab/Games Tax 674 - - - - - - 674 Inter Track Wagering Tax 31,550 - - - - - - 31,550 State Telecommunications Tax 209,789 - - - - - - 209,789 Cannabis Use Tax 43,074 43,074 Federal Grants 1,841,293 - - - - - - 1,841,293 Other Local Sources Hotel/Motel Tax - - - - - - 185,360 185,360 Franchise Fees 386,552 - - - - - - 386,552 Licenses and Permits 1,291,057 - - - - - - 1,291,057 Fines and Forfeitures 480,503 - - - - - - 480,503 Charges for Services 1,150,023 - 221,866 - - - - 1,371,889 Interest 12,153 138 188 5 1 368 114 12,967 Local Grants 33,461 - - - - - - 33,461 Miscellaneous Rent 18,694 - - - - - - 18,694 Royalties - 175,000 - - - - - 175,000 Donations 13,064 - - - - - - 13,064 Reimbursements 2,686,722 - - - - - - 2,686,722 Other Miscellaneous 48,493 - - - - - 71,216 119,709 Total Revenues 30,383,959$ 175,138$ 222,054$ 5$ 1$ 368$ 256,690$ 31,038,215$ EXPENDITURES Current General Office Administration 945,727 -$ -$ -$ -$ -$ 79,403$ 1,025,130$ Elected Officials 65,311 - - - - - - 65,311 Community Development 919,456 - - - - - - 919,456 Finance Department 1,451,648 - - - - - - 1,451,648 Human Resources 273,833 - - - - - - 273,833 Economic Development 328,862 - - - - - - 328,862 3,984,837$ -$ -$ -$ -$ -$ 79,403$ 4,064,240$ Public Safety Police Commission 6,788$ -$ -$ -$ -$ -$ -$ 6,788$ Police Department 8,957,772 - 106,299 - 4,550 - - 9,068,621 Dispatch Center 2,580,077 - - - - - - 2,580,077 11,544,637$ -$ 106,299$ -$ 4,550$ -$ -$ 11,655,486$ Public Works Administration 441,762$ -$ -$ -$ -$ -$ -$ 441,762$ Street Department 2,783,192 - - - - - - 2,783,192 3,224,954$ -$ -$ -$ -$ -$ -$ 3,224,954$ CITY OF MCHENRY, ILLINOIS FUND FINANCIAL STATEMENTS COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GENERAL FUND FOR THE YEAR ENDED APRIL 30, 2022 Page 60 See Accompanying Independent Auditor's Report 97 Alarm Civil Revolving Total Annexation Board Band Defense Loan Tourism General General Fund Fund Fund Fund Fund Fund Fund Fund CITY OF MCHENRY, ILLINOIS FUND FINANCIAL STATEMENTS COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GENERAL FUND FOR THE YEAR ENDED APRIL 30, 2022 EXPENDITURES (Continued) Current (Continued) Parks and Recreation Parks and Recreation 2,614,746$ -$ -$ 11,357 -$ -$ -$ 2,626,103$ 2,614,746$ -$ -$ 11,357$ -$ -$ -$ 2,626,103$ Capital Outlay General Office Administration 1,205,794$ -$ -$ -$ -$ -$ -$ 1,205,794$ Public Safety Police Department 39,330 - - - - - - 39,330 Public Works Street Department 476,687 - - - - - - 476,687 Parks and Recreation Parks and Recreation 5,517 - - - - - - 5,517 1,727,328$ -$ -$ -$ -$ -$ -$ 1,727,328$ Debt Service Principal 251,957$ -$ -$ -$ -$ -$ 60,767$ 312,724$ Interest and Fees 29,053 - - - - - 6,453 35,506 281,010$ -$ -$ -$ -$ -$ 67,220$ 348,230$ Total Expenditures 23,377,512$ -$ 106,299$ 11,357$ 4,550$ -$ 146,623$ 23,646,341$ EXCESS OR (DEFICIENCY) OF REVENUES OVER EXPENDITURES 7,006,447$ 175,138$ 115,755$ (11,352)$ (4,549)$ 368$ 110,067$ 7,391,874$ OTHER FINANCING SOURCES/(USES) Transfers (2,478,705)$ (35,000)$ -$ -$ 6,000$ -$ (99,000)$ (2,606,705)$ Loan Proceeds 171,627 - - - - - - 171,627 Sale of City Property 20,300 - - - - - - 20,300 (2,286,778)$ (35,000)$ -$ -$ 6,000$ -$ (99,000)$ (2,414,778)$ NET CHANGE IN FUND BALANCE 4,719,669$ 140,138$ 115,755$ (11,352)$ 1,451$ 368$ 11,067$ 4,977,096$ FUND BALANCE - MAY 1, 2021 9,983,287 823,039 870,025 24,645 8,640 301,018 129,879 12,140,533 FUND BALANCE - APRIL 30, 2022 14,702,956$ 963,177$ 985,780$ 13,293$ 10,091$ 301,386$ 140,946$ 17,117,629$ Page 61 See Accompanying Independent Auditor's Report 98 Special Special Municipal Service Service Total Recreation Capital Capital Debt Motor Motor Developer Area #4 -Area #6 -Other Pageant Audit Center Improvements Equipment Service Fuel Tax Fuel Tax Donations TIF Lakewood Huntersville Governmental Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund Funds ASSETS Cash and Cash Equivalents 1,947$ -$ -$ -$ -$ -$ 2,982,475$ 14,036$ 1,571,343$ 993,626$ -$ -$ 5,563,427$ Deposit with Paying Agent - - - - - 32,555 - - - - - - 32,555 Investments - 503 379,001 1,012,223 23,785 16,404 - - 64,201 - 404 - 1,496,521 Receivables (Net of Allowance for Estimated Uncollectible Amounts) Accounts Receivable - Billed - - - - - - - - 5,400 - - - 5,400 Accounts Receivable - Unbilled - - 3,915 - - - - 36,166 - - - - 40,081 Property Taxes - 26,428 - - - - - - - 732,268 16,123 - 774,819 Accrued Interest - - 16 557 1 - - - 3 - - - 577 Due from Other Governmental Units - - - 8,351 - - 112,774 - 2,702 - - - 123,827 Due from Other Funds - - - - - - - 2,390 - - - - 2,390 TOTAL ASSETS 1,947$ 26,931$ 382,932$ 1,021,131$ 23,786$ 48,959$ 3,095,249$ 52,592$ 1,643,649$ 1,725,894$ 16,527$ -$ 8,039,597$ LIABILITIES Accounts Payable and Accrued Expenditures -$ -$ 15,209$ -$ -$ 318$ 6,346$ -$ 81,784$ -$ -$ -$ 103,657$ Overdrafts - 4,699 268,643 3,538 23,421 43,071 - - - - 635 179,115 523,122 Due to Other Governmental Units - - - - - - - - 60,576 - - - 60,576 TOTAL LIABILITIES -$ 4,699$ 283,852$ 3,538$ 23,421$ 43,389$ 6,346$ -$ 142,360$ -$ 635$ 179,115$ 687,355$ DEFERRED INFLOWS OF RESOURCES Unavailable Revenue - Property Taxes -$ 26,428$ -$ -$ -$ -$ -$ -$ -$ 732,268$ 16,123$ -$ 774,819$ Unavailable Revenue - State Taxes - - - - - - 8,752 - - - - - 8,752 TOTAL DEFERRED INFLOWS OF RESOURCES -$ 26,428$ -$ -$ -$ -$ 8,752$ -$ -$ 732,268$ 16,123$ -$ 783,571$ FUND BALANCES Restricted for: Capital Projects -$ -$ -$ -$ -$ -$ -$ -$ 870,419$ -$ -$ -$ 870,419$ Special Service Areas - - - - - - - - - - 408 - 408 Tax Increment Financing - - - - - - - - - 1,029,497 - - 1,029,497 Highways and Streets - - - - - - 2,208,858 52,592 - - - - 2,261,450 Assigned for: Highways and Streets - - - - - - 871,293 - - - - - 871,293 Capital Projects - - - 1,017,593 365 - - - 630,870 - - - 1,648,828 Parks and Recreation 1,947 - 99,080 - - - - - - - - - 101,027 Debt Service - - - - - 5,570 - - - - - - 5,570 Unassigned - (4,196) - - - - - - - (35,871) (639) (179,115) (219,821) TOTAL FUND BALANCES 1,947$ (4,196)$ 99,080$ 1,017,593$ 365$ 5,570$ 3,080,151$ 52,592$ 1,501,289$ 993,626$ (231)$ (179,115)$ 6,568,671$ TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES 1,947$ 26,931$ 382,932$ 1,021,131$ 23,786$ 48,959$ 3,095,249$ 52,592$ 1,643,649$ 1,725,894$ 16,527$ -$ 8,039,597$ CITY OF MCHENRY, ILLINOIS COMBINING BALANCE SHEET OTHER GOVERNMENTAL FUNDS APRIL 30, 2022 Page 62 See Accompanying Independent Auditor's Report 99 Special Special Municipal Service Service Total Recreation Capital Capital Debt Motor Motor Developer Area #4 -Area #6 -Other Pageant Audit Center Improvements Equipment Service Fuel Tax Fuel Tax Donations TIF Lakewood Huntersville Governmental Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund Funds REVENUES Local Taxes Property Tax -$ 26,313$ -$ -$ -$ -$ -$ -$ -$ 678,920$ 16,123$ -$ 721,356$ Intergovernmental State Motor Fuel Tax - - - - - - 1,128,538 348,997 - - - - 1,477,535 State Grants - - - - - - 444,720 - - - - - 444,720 Federal Grants - - - - - - 31,211 - - - - - 31,211 Bond Interest Rebates - - - - - 3,692 - - - - - - 3,692 Other Local Sources Charges for Services - 16,145 424,807 - - - - - - - - - 440,952 Interest - 1 758 560 43 33 2,025 - 547 121 1 - 4,089 Miscellaneous Rent - - 13,413 - - - - - 19,649 - - - 33,062 Donations - - - - - - - - 1,510,720 - - - 1,510,720 Reimbursements - - - 34,870 - - - - - 55,000 - - 89,870 Other Miscellaneous - - 100 2,134 - - - - 46,443 - - - 48,677 -$ 42,459$ 439,078$ 37,564$ 43$ 3,725$ 1,606,494$ 348,997$ 1,577,359$ 734,041$ 16,124$ -$ 4,805,884$ EXPENDITURES Current General Office 7$ 51,275$ -$ -$ -$ -$ -$ -$ -$ 10,825$ -$ -$ 62,107$ Parks and Recreation - - 554,899 - - - - - 559,993 - - - 1,114,892 Capital Outlay - - - 37,923 - - 868,681 500,000 755,712 224,170 - - 2,386,486 Debt Service Principal - - - - - 1,605,000 - - - - - - 1,605,000 Interest and Fees - - - - - 743,257 - - - - - - 743,257 7$ 51,275$ 554,899$ 37,923$ -$ 2,348,257$ 868,681$ 500,000$ 1,315,705$ 234,995$ -$ -$ 5,911,742$ EXCESS OR (DEFICIENCY) OF REVENUES OVER EXPENDITURES (7)$ (8,816)$ (115,821)$ (359)$ 43$ (2,344,532)$ 737,813$ (151,003)$ 261,654$ 499,046$ 16,124$ -$ (1,105,858)$ OTHER FINANCING SOURCES/(USES) Transfers - - (21,971) 696,503 - 2,350,326 (84,555)- - (224,835) (15,715) - 2,699,753 NET CHANGE IN FUND BALANCES (7)$ (8,816)$ (137,792)$ 696,144$ 43$ 5,794$ 653,258$ (151,003)$ 261,654$ 274,211$ 409$ -$ 1,593,895$ FUND BALANCES - MAY 1, 2021 1,954 4,620 236,872 321,449 322 (224) 2,426,893 203,595 1,239,635 719,415 (640) (179,115) 4,974,776 FUND BALANCES - APRIL 30, 2022 1,947$ (4,196)$ 99,080$ 1,017,593$ 365$ 5,570$ 3,080,151$ 52,592$ 1,501,289$ 993,626$ (231)$ (179,115)$ 6,568,671$ CITY OF MCHENRY, ILLINOIS COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OTHER GOVERNMENTAL FUNDS FOR THE YEAR ENDED APRIL 30, 2022 Page 63 See Accompanying Independent Auditor's Report 100 Capital Utility Marina Total Water/Sewer Development Improvements Operations Water and Fund Fund Fund Fund Sewer Funds ASSETS Current Assets Cash and Cash Equivalents 5,651,996$ 4,052,782$ -$ 361,264$ 10,066,042$ Investments 428,802 259,140 1,832,717 99,732 2,620,391 Prepaid Items 37,103 - - - 37,103 Receivables (Net of Allowance for Estimated Uncollectible Amounts) Accounts Receivable - Billed 93,486 - - - 93,486 Accounts Receivable - Unbilled 1,314,672 - - - 1,314,672 Accrued Interest 1,543 790 1,317 285 3,935 Due from Other Governmental Units 97,714 - - - 97,714 Due from Other Funds 6,266 57,164 - - 63,430 7,631,582$ 4,369,876$ 1,834,034$ 461,281$ 14,296,773$ Non-Current Assets IMRF Net Pension Asset 884$ -$ -$ -$ 884$ Capital Assets Land 2,208,117 - - - 2,208,117 Buildings 2,736,098 - - - 2,736,098 Systems and Equipment 112,191,349 - - - 112,191,349 Vehicles 1,702,060 - - - 1,702,060 Construction in Progress 57,193 - - - 57,193 Less: Accumulated Depreciation (39,598,361) - - - (39,598,361) 79,297,340$ -$ -$ -$ 79,297,340$ TOTAL ASSETS 86,928,922$ 4,369,876$ 1,834,034$ 461,281$ 93,594,113$ DEFERRED OUTFLOWS OF RESOURCES Pension Expense/Revenue - IMRF 338,373$ -$ -$ -$ 338,373$ OPEB Expense/Revenue 199,558 - - - 199,558 TOTAL DEFERRED OUTFLOWS OF RESOURCES 537,931$ -$ -$ -$ 537,931$ LIABILITIES Current Liabilities Accounts Payable and Accrued Expenses 253,448$ -$ -$ -$ 253,448$ Overdraft - - 2,280,087 - 2,280,087 Security Deposits Held - 3,000 - - 3,000 Due to Other Funds 2,390 - - - 2,390 Unearned Revenue 66,675 - - - 66,675 Accrued Interest 258,590 - - - 258,590 Compensated Absences - Current 98,664 - - - 98,664 IEPA Loan Payable - Current 1,532,512 - - - 1,532,512 Bonds Payable - Current 416,517 - - - 416,517 2,628,796$ 3,000$ 2,280,087$ -$ 4,911,883$ Non-Current Liabilities Total OPEB Liability 129,680$ -$ -$ -$ 129,680$ IEPA Loan Payable (Net of Current Portion Shown Above)26,742,871 - - - 26,742,871 Bonds Payable (Net of Current Portion Shown Above)3,905,810 - - - 3,905,810 30,778,361$ -$ -$ -$ 30,778,361$ TOTAL LIABILITIES 33,407,157$ 3,000$ 2,280,087$ -$ 35,690,244$ DEFERRED INFLOWS OF RESOURCES Pension Revenue/Expense - IMRF 887,799$ -$ -$ -$ 887,799$ OPEB Revenue/Expense 300,013 - - - 300,013 TOTAL DEFERRED INFLOWS OF RESOURCES 1,187,812$ -$ -$ -$ 1,187,812$ NET POSITION Net Investment in Capital Assets 46,698,746$ -$ -$ -$ 46,698,746$ Unrestricted/(Deficit)6,173,138 4,366,876 (446,053) 461,281 10,555,242 TOTAL NET POSITION 52,871,884$ 4,366,876$ (446,053)$ 461,281$ 57,253,988$ CITY OF MCHENRY, ILLINOIS COMBINING SCHEDULE OF NET POSITION WATER AND SEWER FUNDS APRIL 30, 2022 Page 64 See Accompanying Independent Auditor's Report 101 Capital Utility Marina Total Water/Sewer Development Improvements Operations Water and Fund Fund Fund Fund Sewer Funds OPERATING REVENUES Charges for Services Customer Fees 5,429,528$ 1,239,012$ -$ -$ 6,668,540$ Capital Fees 718,573 - - - 718,573 Debt Service Fees 2,505,977 - - - 2,505,977 Penalties 173,496 - - - 173,496 Water Meter Sales 52,107 - - - 52,107 Other 16,796 - - - 16,796 8,896,477$ 1,239,012$ -$ -$ 10,135,489$ OPERATING EXPENSES Water Department Personnel Salaries 435,169$ -$ -$ -$ 435,169$ Miscellaneous Personnel Expenses 139,999 - - - 139,999 Other Operating Expenses 918,302 - - - 918,302 Depreciation 631,243 - - - 631,243 Sewer Department Personnel Salaries 733,339 - - - 733,339 Miscellaneous Personnel Expenses 270,581 - - - 270,581 Other Operating Expenses 1,573,920 - - 25,686 1,599,606 Depreciation 2,133,432 - - - 2,133,432 Utility Work Department Personnel Salaries 628,246 - - - 628,246 Miscellaneous Personnel Expenses 236,013 - - - 236,013 Other Operating Expenses 63,234 - - - 63,234 7,763,478$ -$ -$ 25,686$ 7,789,164$ OPERATING INCOME/(LOSS)1,132,999$ 1,239,012$ -$ (25,686)$ 2,346,325$ NON-OPERATING REVENUE/(EXPENSE) Interest Income 4,041$ 533$ 1,018$ 198$ 5,790$ Unrealized Gain/Loss - - (3,118)- (3,118) Rental Income 30,000 - - 35,460 65,460 Interest Rebate Income 25,082 - - - 25,082 Interest and Fees (627,076) - - - (627,076) Amortization 46,517 - - - 46,517 Gain/(Loss) on Sale of Fixed Asset 32,760 - - - 32,760 Donated Public Improvements - Water 1,096,340 - - - 1,096,340 Donated Public Improvements - Sewer 1,357,882 - - - 1,357,882 1,965,546$ 533$ (2,100)$ 35,658$ 1,999,637$ INCOME/(LOSS) BEFORE CONTRIBUTIONS AND TRANSFERS 3,098,545$ 1,239,545$ (2,100)$ 9,972$ 4,345,962$ TRANSFERS (TO)/FROM OTHER FUNDS (115,013) (143,750) 165,715 - (93,048) CHANGE IN NET POSITION 2,983,532$ 1,095,795$ 163,615$ 9,972$ 4,252,914$ NET POSITION - MAY 1, 2021 50,179,418 3,271,081 (609,668) 451,309 53,292,140 NET POSITION ADJUSTMENT (Note 9)(291,066) - - - (291,066) NET POSITION - APRIL 30, 2022 52,871,884$ 4,366,876$ (446,053)$ 461,281$ 57,253,988$ CITY OF MCHENRY, ILLINOIS COMBINING SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION WATER AND SEWER FUNDS FOR THE YEAR ENDED APRIL 30, 2022 Page 65 See Accompanying Independent Auditor's Report 102 Employee Risk Information Total Insurance Management Technology Internal Service Fund Fund Fund Funds ASSETS Current Assets Cash and Cash Equivalents -$ 89,638$ 424,709$ 514,347$ Investments - - 8,294 8,294 Prepaid Items 73,929 - 7,343 81,272 Receivables (Net of Allowance for Estimated Uncollectible Amounts) Accounts Receivable - Billed 932 - - 932 Accounts Receivable - Unbilled - 3,182 - 3,182 74,861$ 92,820$ 440,346$ 608,027$ Non-Current Assets IMRF Net Pension Asset -$ -$ 7,366$ 7,366$ Capital Assets Systems and Equipment - - 690,756 690,756 Less: Accumulated Depreciation - - (494,217) (494,217) -$ -$ 203,905$ 203,905$ TOTAL ASSETS 74,861$ 92,820$ 644,251$ 811,932$ DEFERRED OUTFLOWS OF RESOURCES Pension Expense/Revenue - IMRF -$ -$ 48,315$ 48,315$ OPEB Expense / Revenue - - 28,495 28,495 TOTAL DEFERRED OUTFLOWS OF RESOURCES -$ -$ 76,810$ 76,810$ LIABILITIES Current Liabilities Accounts Payable and Accrued Expenses 133$ 4,602$ 109,791$ 114,526$ Overdrafts 79,666 - - 79,666 Unearned Revenue 88,803 - - 88,803 Compensated Absences - - 3,646 3,646 Capital Lease Payable - - 24,103 24,103 168,602$ 4,602$ 137,540$ 310,744$ Non-Current Liabilities Total OPEB Liability -$ -$ 17,820$ 17,820$ -$ -$ 17,820$ 17,820$ TOTAL LIABILITIES 168,602$ 4,602$ 155,360$ 328,564$ DEFERRED INFLOWS OF RESOURCES Pension Revenue/Expense - IMRF -$ -$ 126,769$ 126,769$ OPEB Revenue/Expense - - 42,839 42,839 DEFERRED INFLOWS OF RESOURCES -$ -$ 169,608$ 169,608$ NET POSITION Net Investment in Capital Assets -$ -$ 172,436$ 172,436$ Unrestricted/(Deficit)(93,741) 88,218 223,657 218,134 TOTAL NET POSITION (93,741)$ 88,218$ 396,093$ 390,570$ CITY OF MCHENRY, ILLINOIS COMBINING SCHEDULE OF NET POSITION INTERNAL SERVICE FUNDS APRIL 30, 2022 Page 66 See Accompanying Independent Auditor's Report 103 Employee Risk Information Total Insurance Management Technology Internal Service Fund Fund Fund Funds OPERATING REVENUES Charges for Services 3,416,539$ 718,291$ 872,231$ 5,007,061$ 3,416,539$ 718,291$ 872,231$ 5,007,061$ OPERATING EXPENSES Personnel Salaries -$ -$ 160,214$ 160,214$ Miscellaneous Personnel Expenses 3,418,695 - 53,270 3,471,965 Other Operating Expenses 1,088 979,625 593,070 1,573,783 Depreciation - - 48,637 48,637 3,419,783$ 979,625$ 855,191$ 5,254,599$ OPERATING INCOME/(LOSS)(3,244)$ (261,334)$ 17,040$ (247,538)$ NON-OPERATING REVENUE/(EXPENSE) Interest Income 61 13 64 138 INCOME/(LOSS) BEFORE CONTRIBUTIONS AND TRANSFERS (3,183)$ (261,321)$ 17,104$ (247,400)$ CAPITAL CONTRIBUTIONS - - - - CHANGE IN NET POSITION (3,183)$ (261,321)$ 17,104$ (247,400)$ NET POSITION - MAY 1, 2021 (90,558) 349,539 378,989 637,970 NET POSITION - APRIL 30, 2022 (93,741)$ 88,218$ 396,093$ 390,570$ CITY OF MCHENRY, ILLINOIS COMBINING SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION INTERNAL SERVICE FUNDS FOR THE YEAR ENDED APRIL 30, 2022 Page 67 See Accompanying Independent Auditor's Report 104 Retained Developmental Personnel Total Escrow Escrow Custodial Fund Fund Funds ASSETS Current Assets Cash and Cash Equivalents 6,831$ 49,204$ 56,035$ TOTAL ASSETS 6,831$ 49,204$ 56,035$ LIABILITIES -$ -$ -$ NET POSITION Restricted for Developers, Property Owners, and Others 6,831$ 49,204$ 56,035$ TOTAL NET POSITION 6,831$ 49,204$ 56,035$ CITY OF MCHENRY, ILLINOIS COMBINING SCHEDULE OF NET POSITION CUSTODIAL FUNDS APRIL 30, 2022 Page 68 See Accompanying Independent Auditor's Report 105 Developmental Retained Total Escrow Personnel Escrow Custodial Funds Funds Funds ADDITIONS Contributions Developers, Property Owners, and Others -$ 80,685$ 80,685$ Total Contributions -$ 80,685$ 80,685$ TOTAL ADDITIONS -$ 80,685$ 80,685$ DEDUCTIONS Engineering and Legal Fees -$ 80,685 80,685$ Refund - - - TOTAL DEDUCTIONS -$ 80,685$ 80,685$ NET INCREASE/(DECREASE)-$ -$ -$ NET POSITION - MAY 1, 2021 - - - NET POSITION ADJUSTMENT (Note 9)6,831 49,204 56,035 NET POSITION - APRIL 30, 2022 6,831$ 49,204$ 56,035$ CITY OF MCHENRY, ILLINOIS CUSTODIAL FUNDS YEAR ENDED APRIL 30, 2022 COMBINING SCHEDULE OF CHANGES IN FIDUCIARY NET POSITION Page 69 See Accompanying Independent Auditor's Report 106 Actual Original Final Amounts REVENUES Local Taxes Property Tax 720,000$ 720,000$ 678,920$ Other Local Sources Interest - - 121 Miscellaneous Reimbursements 60,000 60,000 55,000 Total Revenues 780,000$ 780,000$ 734,041$ EXPENDITURES Current General Office 50,000$ 50,000$ 10,825$ Capital Outlay 440,000$ 1,084,304$ 224,170$ Total Expenditures 490,000$ 1,134,304$ 234,995$ EXCESS OR (DEFICIENCY) OF REVENUES OVER EXPENDITURES 290,000$ (354,304)$ 499,046$ OTHER FINANCING SOURCES/(USES) Transfers (224,835) (224,835) (224,835) NET CHANGE IN FUND BALANCE 65,165$ (579,139)$ 274,211$ FUND BALANCE - MAY 1, 2021 719,415 FUND BALANCE - APRIL 30, 2022 993,626$ Budgeted Amounts CITY OF MCHENRY, ILLINOIS FOR THE YEAR ENDED APRIL 30, 2022 SPECIAL REVENUE FUND - TAX INCREMENT FINANCING FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL Page 70 See Accompanying Independent Auditor's Report 107 December 2, 2022 To the Mayor and City Council Members City of McHenry McHenry, Illinois We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of City of McHenry (City) as of and for the year ended April 30, 2022, and have issued our report thereon dated December 2, 2022. Professional standards require that we advise you of the following matters relating to our audit. Our Responsibility in Relation to the Financial Statement Audit As communicated in our engagement letter dated June 15, 2022, our responsibility under generally accepted auditing standards and, if applicable, Government Auditing Standards and Uniform Guidance, is to form and express an opinions about whether the financial statements that have been prepared by management with your oversight are presented fairly, in all material respects, in accordance with accounting principles generally accepted in the United States of America. Our audit of the financial statements does not relieve you or management of your respective responsibilities. Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain reasonable, rather than absolute, assurance about whether the financial statements are free of material misstatement. An audit of financial statements includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control over financial reporting. Accordingly, as part of our audit, we considered the internal control of the City solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control. We are also responsible for communicating significant matters related to the audit that are, in our professional judgment, relevant to your responsibilities in overseeing the financial reporting process. However, we are not required to design procedures for the purpose of identifying other matters to communicate to you. Planned Scope and Timing of the Audit We conducted our audit consistent with the planned scope and timing we previously communicated to you. Qualitative Aspects of the Organization’s Significant Accounting Practices Significant Accounting Policies Management has the responsibility to select and use appropriate accounting policies. A summary of the significant accounting policies adopted by the City are included in Note 1 to the financial statements. There have been no initial selection of accounting policies and no changes in significant accounting policies or their application during fiscal year 2022. No matters have come to our attention that would require us, under professional standards, to inform you about (1) the methods used to account for significant unusual transactions and (2) the effect of significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus. 108 Significant Accounting Estimates Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s current judgment. Those judgments are normally based on knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ markedly from management’s current judgment. We evaluated the key factors and assumptions used to develop the estimates and determined that they are reasonable in relation to the financial statements taken as a whole and in relation to the applicable opinion units. The most sensitive estimate(s) affecting the financial statements are: •Management’s estimate of depreciation expense is based on estimated useful lives of the capital assets held by the City. •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. Financial Statement Disclosures Certain financial statement disclosures involve significant judgement and are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting the City’s financial statements relate to depreciation, pension and OPEB liabilities, and fair value estimates. The financial statement disclosures are neutral, consistent, and clear. Significant Unusual Transactions For purposes of this communication, professional standards require us to communicate to you significant unusual transactions identified during our audit. The following significant unusual transactions identified as a result of our audit procedures were brought to the attention of management: none noted Significant Difficulties Encountered during the Audit We encountered no significant difficulties in dealing with management relating to the performance of the audit. Uncorrected and Corrected Misstatements For purposes of this communication, professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that we believe are trivial, and communicate them to the appropriate level of management. Further, professional standards require us to also communicate the effect of uncorrected misstatements related to prior periods on the relevant classes of transactions, account balances or disclosures, and the financial statements as a whole and each applicable opinion unit. Management has corrected all identified misstatements. In addition, professional standards require us to communicate to you all material, corrected misstatements that were brought to the attention of management as a result of our audit procedures. The attached misstatements that we identified as a result of our audit procedures were brought to the attention of, and corrected by, management. 109 Disagreements with Management For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or audit matter, which could be significant to the City’s financial statements or the auditor’s report. No such disagreements arose during the course of the audit. Circumstances that Affect the Form and Content of the Auditor’s Report For purposes of this letter, professional standards require that we communicate any circumstances that affect the form and content of our auditor’s report. None Noted Representations Requested from Management We have requested certain written representations from management, which are included in the attached letter. Management Consultations with Other Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to the City’s financial statements or a determination of the type of auditor’s opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. Management informed us that, and to our knowledge, there were no consultations with other accountants regarding auditing and accounting matters. Other Significant Matters, Findings, or Issues In the normal course of our professional association with the City, we generally discuss a variety of matters, including the application of accounting principles and auditing standards, significant events or transactions that occurred during the year, operating and regulatory conditions affecting the City, and operating plans and strategies that may affect the risks of material misstatement. However, none of the matters discussed resulted in a condition to our retention as the City’s auditors. Other Matters We applied certain limited procedures to the required information, which is required supplemental information (RSI) that supplement the basic financial statements (as listed on the table of contents in the audit report). Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI. We were engaged to report on supplemental information 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. 110 Restriction on Use This report is intended solely for the information and use of the City Council and management of City of McHenry and is not intended to be, and should not be, used by anyone other than these specified parties. Very truly yours, EDER, CASELLA & CO. Certified Public Accountants 111 Client:City of McHenry Engagement:City of McHenry Period Ending:4/30/2022 Workpaper:General Fund AJEs Report Account Description Debit Credit Adjusting Journal Entries JE # 1 100-2100 ACCOUNTS PAYABLE 3,750.00 100-41-5110 CONTRACTUAL SERVICES 3,750.00 Total 3,750.00 3,750.00 Adjusting Journal Entries JE # 2 100-1201 GRANTS RECEIVABLE 1,841,293.00 100-00-3180 GRANTS 1,841,293.00 Total 1,841,293.00 1,841,293.00 Adjusting Journal Entries JE # 3 100-33-5520 STREET LIGHTING 19,248.00 100-2100 ACCOUNTS PAYABLE 19,248.00 Total 19,248.00 19,248.00 Adjusting Journal Entries JE # 4 100-1345 SALT INVENTORY 122,096.00 100-04-9947 TRANSFER OTHER FUNDS 84,555.00 100-33-6110 MATERIALS & SUPPLIES 37,541.00 Total 122,096.00 122,096.00 I have reviewed and agree with the adjustments above: Client Signature Date To move item to fixed assets account Reclass/Record ARPA Grant Activity Record Addtional AP Record Salt Transfer 112 8/22/2022 3:18 PM Client:City of McHenry - City of McHenry Engagement:City of McHenry Period Ending:4/30/2022 Trial Balance:200 - Tourism Fund Workpaper:200 - Tourism Fund AJE's Report Account Description W/P Ref Debit Credit Adjusting Journal Entries JE # 1 200-2100 ACCOUNTS PAYABLE 2,000.00 200-00-5110 CONTRACTUAL SERVICES 2,000.00 Total 2,000.00 2,000.00 I have reviewed and agree with the adjustment(s) above: Client Signature Date Adjust AP For portion of invoice for FY23 1 of 1 113 8/22/2022 3:20 PM Client:City of McHenry - City of McHenry Engagement:City of McHenry Period Ending:4/30/2022 Trial Balance:225 - Alarm Board Fund Workpaper:225 - Alarm Board Fund - 2 Account Description W/P Ref Debit Credit 225-00-5110 CONTRACTUAL SERVICES 780.00 225-2100 ACCOUNTS PAYABLE 780.00 Total 780.00 780.00 Total Adjusting Journal Entries 780.00 780.00 Total All Journal Entries 780.00 780.00 Signature Date Adjusting Journal Entries Adjusting Journal Entries JE # 1 Adjust AP to actual 1 of 1 114 9/26/2022 9:51 AM Client:City of McHenry - City of McHenry Engagement:City of McHenry Period Ending:4/30/2022 Trial Balance:270 - Motor Fuel Tax Fund Workpaper:270 - Motor Fuel Tax Adjusting Journal Entries Report Account Description W/P Ref Debit Credit Adjusting Journal Entries JE # 1 270-2100 ACCOUNTS PAYABLE 464.00 270-00-8600 STREETS 464.00 Total 464.00 464.00 Adjusting Journal Entries JE # 2 270-2530 DEFERRED REVENUE 7,293.00 270-00-3150 MFT-ALLOTMENTS FROM STATE 7,293.00 Total 7,293.00 7,293.00 Adjusting Journal Entries JE # 3 270-2530 DEFERRED REVENUE 49,413.00 270-00-3155 REBUILD ILLINOIS GRANT 49,413.00 Total 49,413.00 49,413.00 Adjusting Journal Entries JE # 4 270-00-6110 MATERIALS & SUPPLIES 37,541.00 270-00-9901 TRANSFER GENERAL FUND 84,555.00 270-1345 SALT INVENTORY 122,096.00 Total 122,096.00 122,096.00 I have reviewed and agree with the adjustment(s) above: Client Signature Date Reverse S Curve Project Costs - PBC Record PBC Entry for May & June High Growth Payments Remove Rebuild IL Deferred Revenue Move Salt to General Fund 1 of 1 115 8/22/2022 3:22 PM Client:City of McHenry - City of McHenry Engagement:City of McHenry Period Ending:4/30/2022 Trial Balance:280 - Developer Donations Fund Workpaper:280 - Developer Donations Adjusting Journal Entries Report Account Description W/P Ref Debit Credit 280-2100 ACCOUNTS PAYABLE 40,971.00 280-41-8800 PARK PLAYGROUND IMPROVEMENTS 40,971.00 Total 40,971.00 40,971.00 280-41-8800 PARK PLAYGROUND IMPROVEMENTS 3,750.00 280-2100 ACCOUNTS PAYABLE 3,750.00 Total 3,750.00 3,750.00 Total Adjusting Journal Entries 44,721.00 44,721.00 Total All Journal Entries 44,721.00 44,721.00 Adjusting Journal Entries Adjusting Journal Entries JE # 1 To reverse non capitlal expenditure in capital account Adjusting Journal Entries JE # 2 To move item to fixed asset account 1 of 1 116 9/11/2022 8:47 AM Client:City of McHenry - City of McHenry Engagement:City of McHenry Period Ending:4/30/2022 Trial Balance:510 - Water/Sewer Fund Workpaper:510 - Water Sewer Adjusting Journal Entries Report Account Description W/P Ref Debit Credit Adjusting Journal Entries JE # 1 510-2170 COMPENSATED ABSENCES 5,038.00 510-31-4010 SALARIES-REGULAR 900.00 510-32-4010 SALARIES-REGULAR 3,961.00 510-35-4010 SALARIES - REGULAR 1,977.00 Total 5,938.00 5,938.00 Adjusting Journal Entries JE # 2 510-2500 FUND BALANCE 291,066.00 510-31-8500 UTILITY SYSTEM 291,066.00 Total 291,066.00 291,066.00 Adjusting Journal Entries JE # 3 510-32-7600 LOAN INTEREST 2,067.00 510-2308 WWTP LOAN PAYABLE 2,067.00 Total 2,067.00 2,067.00 Adjusting Journal Entries JE # 4 510-2308 WWTP LOAN PAYABLE 5,879.00 510-32-7600 LOAN INTEREST 5,879.00 Total 5,879.00 5,879.00 Adjusting Journal Entries JE # 5 510-2443 IMRF NET PENSION LIABILITY 362,772.00 510-2448 IMRF - DEFERRED INFLOWS 523,102.00 510-2444 IMRF DEFERRED OUTFLOWS-ACT EVAL 610,601.00 510-2445 IMRF DEFERRED OUTFLOWS-CONT AFTER 42,902.00 510-31-4420 EMPLOYER CONTRIBUTION - IMRF 50,118.00 510-32-4420 EMPLOYER CONTRIBUTION - IMRF 86,795.00 510-35-4420 EMPLOYER CONTRIBUTION - IMRF 95,458.00 Total 885,874.00 885,874.00 Adjusting Journal Entries JE # 6 510-2449 DEFERRED OUTFLOWS - OPEB 91,915.00 510-2450 NET OPEB LIABILITY 142,210.00 510-2451 DEFERRED INFLOWS - OPEB 183,224.00 510-99-9930 OPEB EXPENSE 33,918.00 510-99-9940 OPEB CONTRIBUTIONS 16,983.00 Total 234,125.00 234,125.00 Correct PY Accounts Payable for fixed asset entry made incorrectly in PY Adjust compensated absences - original entry was using incorrect hourly rates Adjust Construction Period Interest on IEPA Loan Adjust IEPA Loan Balance for Amount Not Actually Received from PY Record GASB 68 IMRF Activity Record GASB 75 Activity 1 of 2 117 9/11/2022 8:47 AM Client:City of McHenry - City of McHenry Engagement:City of McHenry Period Ending:4/30/2022 Trial Balance:510 - Water/Sewer Fund Workpaper:510 - Water Sewer Adjusting Journal Entries Report Account Description W/P Ref Debit Credit Adjusting Journal Entries JE # 7 510-1388 ACCUM DEPREC - SYSTEM & EQUIPMEN 7,277.00 510-32-9510 DEPRECIATION EXPENSE 7,277.00 Total 7,277.00 7,277.00 I have reviewed and agree with the adjustment(s) above: Client Signature Date Adjust depreciation for double recorded water plant 2 of 2 118 Client:City of McHenry Engagement:City of McHenry Period Ending:4/30/2022 Workpaper:Utility Improvements Fund AJEs Account Description W/P Ref Debit Credit Adjusting Journal Entries JE # 1 580-00-3981 TRANSFER CAPITAL DEVELOPMENT FUN 6,250.00 580-00-3978 TRANSFER FROM WATER SEWER 6,250.00 Total 6,250.00 6,250.00 I have reviewed and agree with the adjustment(s) above: Client Signature Date Adjust transfers between funds 119 9/11/2022 8:47 AM Client:City of McHenry - City of McHenry Engagement:City of McHenry Period Ending:4/30/2022 Trial Balance:620 - Information Technology Fund Workpaper:620 - Information Technology Fund AJE Report Account Description W/P Ref Debit Credit 620-2500 FUND BALANCE 310.00 620-00-5110 CONTRACTUAL SERVICES 310.00 Total 310.00 310.00 Adjusting Journal Entries JE # 2 620-2443 IMRF NET PENSION LIABILITY 94,271.00 620-2445 IMRF DEF OUTFLOWS - CONTR MADE AFTER MEAS 1,367.00 620-00-4420 EMPLOYER CONTRIBUTION - IMRF 40,673.00 620-2444 IMRF DEFERRED OUTLFOWS-ACTUARIAL REPORT 11,886.00 620-2448 IMRF - DEFFERED INFLOWS 43,079.00 Total 95,638.00 95,638.00 Adjusting Journal Entries JE # 3 620-00-9930 OPEB EXPENSE 11,462.00 620-2449 DEFERRED OUTFLOWS - OPEB 22,073.00 620-2450 NET OPEB LIABILITY 4,759.00 620-00-9940 OPEB CONTRIBUTIONS 2,425.00 620-2451 DEFERRED INFLOWS - OPEB 35,869.00 Total 38,294.00 38,294.00 Adjusting Journal Entries JE # 4 620-2308 LESS CURRENT PORTION-LONG TERM DEBT 24,103.00 620-00-3210 INTEREST INCOME 1.00 620-2310 CAPITAL LEASE PAYABLE 24,102.00 Total 24,103.00 24,103.00 I have reviewed and agree with the adjustment(s) above: Client Signature Date Record GASB 68 IMRF Activity Record GASB 75 Activity Adjusting Journal Entries JE # 1 Correct Fund Balance Issue Related to AJE from Prior Year Adjust balances of loan accounts 1 of 1 120 9/26/2022 9:55 AM Client:City of McHenry - City of McHenry Engagement:City of McHenry Period Ending:4/30/2022 Trial Balance:760 - Police Pension Fund Workpaper:760 - Police Pension AJE's Report Account Description W/P Ref Debit Credit Adjusting Journal Entries JE # 1 760-00-3210 INTEREST INCOME 502.00 760-1125 US BANK TRUST - FMV 502.00 Total 502.00 502.00 Client Signature Date Adjust FMV to match bank statement 1 of 1 121 122 123 124 125 126 127 128 Department of Public Works Troy Strange, P.E., Director of Public Works 1415 Industrial Drive McHenry, Illinois 60050 Phone: (815) 363-2186 Fax: (815) 363-2214 www.cityofmchenry.org 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. REGULAR AGENDA SUPPLEMENT DATE: January 16, 2023 TO: Mayor and City Council FROM: Troy Strange, P.E. Director of Public Works Greg Gruen, P.E. Staff Engineer RE: Dartmoor Drive Resurfacing Project Request for Authorization to Bid ATT: Engineer’s Estimate of Cost Project Location Map ____________________________________________________________________________ AGENDA ITEM SUMMARY: Staff requests City Council to authorize staff to publicly bid the Dartmoor Drive Resurfacing Project and to solicit Phase III Engineering proposals. BACKGROUND: In 2020, City Staff submitted the Dartmoor Drive Resurfacing Project to the McHenry County Council of Mayor’s (MCCOM) Surface Transportation Program (STP) for consideration for funding. The project was not selected initially for funding and was placed on the multi-year contingency list. During this time, a contract was awarded to Hampton, Lenzini, & Renwick Inc. to complete engineering design services to have the project ready for completion in the case that the project was selected from the contingency list for funding. Additionally, staff recommended to the City Council that this project be programmed for completion and funded 100% locally in the case that the project was not selected for funding. After two years being held on the contingency list, the MCCOM released a new call for projects, and sponsors for projects which remained on the contingency were notified that the projects would not be moving forward for funding. Therefore, staff is recommending that the project be completed as a part of the 2023 Road Resurfacing Program. The project is intended to be released for bidding in February 2023 prior to the end of this fiscal year and is recommended for award and funding in Fiscal Year 2023-2024. 129 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. ANALYSIS: The current Engineer’s Estimate of Cost to resurface 1.08 miles of Dartmoor Drive including contingencies and Phase III Engineering is $957,765 ($886,820/mile). This cost per mile of $886,820 is significantly more than the unit costs seen on the “in-house” road resurfacing projects which have been completed in recent years. This is due to a large amount of concrete work, waterproof membrane replacement for the Dartmoor Drive Bridge, and asphalt price increases of more than 25% due to inflation and material prices. RECOMMENDATION: Therefore, if Council concurs, it is recommended to authorize staff to publicly bid the Dartmoor Drive Resurfacing Project and to solicit Phase III Engineering proposals. 130 SCHEDULE I - DARTMOOR DRIVE - EAST AND WEST LEGS (CONSTRUCTION ONLY) No.Item Quantity Unit Unit Price Extension 1 HMA Pavement Removal, 3.5"21455.18 SY 4.00$ 85,820.72$ 2 HMA Binder - 2.25"2703 TON 90.00$ 243,270.00$ 3 HMA Surface - 1.5"1802 TON 95.00$ 171,190.00$ 4 Waterproofing Membrane System 252 SY 100.00$ 25,200.00$ 5 Comb C&G Removal 941 LF 12.00$ 11,292.00$ 6 Comb C&G - M3.12 670 LF 30.00$ 20,100.00$ 7 Comb C&G - M6.12 271 LF 30.00$ 8,130.00$ 8 Class D Patch - 4"1072.75 SY 50.00$ 53,637.50$ 9 HMA Driveway R&R 100 SY 100.00$ 10,000.00$ 10 Inlet Filters 38 EACH 500.00$ 19,000.00$ 11 Manholes to be Adjusted 14 EACH 1,000.00$ 14,000.00$ 12 Catch Basins to be Adjusted 4 EACH 1,000.00$ 4,000.00$ 13 Valve Vaults to be Adjusted 2 EACH 1,000.00$ 2,000.00$ 14 Therm Pvmt Markings - 24"193 LF 25.00$ 4,825.00$ 15 Therm Pvmt Markings - 12"523 LF 10.00$ 5,230.00$ 16 Therm Pvmt Markings - 6"651 LF 5.00$ 3,255.00$ 17 Therm Pvmt Markings - 4"1082 LF 2.00$ 2,164.00$ 18 Therm Pvmt Markings - L&S 300 SF 10.00$ 3,000.00$ 19 HMA Bike Path Removal - 2"153.44 SY 10.00$ 1,534.40$ 20 PCC Sidewalk Removal 2242 SF 10.00$ 22,420.00$ 21 PCC Sidewalk - 5"3612 SF 15.00$ 54,180.00$ 22 Detectable Warnings 334 SF 40.00$ 13,360.00$ 23 Changeable Message Sign 4 CAL MO 2,000.00$ 8,000.00$ 24 Landscape Restoration 1 LS 10,000.00$ 10,000.00$ SUBTOTAL SCHEDULE I - DARTMOOR DRIVE (CONSTRUCTION ONLY)795,608.62$ CONTINGENCY @ 10%79,560.86$ PHASE III ENGINEERING 82,595.00$ TOTAL 957,764.48$ Notes: 1)Project costs are in current year dollars. Contingency or cost escallation should be added to reflect projected construction year. 2)EOPC based on engineer's experience and research of other similar projects. Due to circumstances beyond our control such and the bidding environment, labor rates, material costs and ENGINEER'S OPINION OF PROBABLE COST (EOPC) DARTMOOR DRIVE RESURFACING 12/21/2022 131 132 133 134 135 136 137 138 139 140 141 142 143 John R. Birk, Chief of Police McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2200 Fax: (815) 363-2149 jbirk@cityofmchenry.org 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. CONSENT AGENDA SUPPLEMENT DATE: January 16, 2023 TO: Mayor and City Council FROM: John R. Birk, Police Chief RE: Authorization for the Mayor and Deputy City Clerk to Execute a Collective Bargaining Agreement Between the City of McHenry and Illinois Fraternal Order of Police, representing City of McHenry Patrol Officers (Unit 1) for the period May 1, 2023 through April 30, 2027 ATT: Collective Bargaining Agreement / Ordinance AGENDA ITEM SUMMARY: The purpose of this agenda item is to present, for consideration and approval by Council, a four (4) year contract renewal between the City of McHenry and the Illinois Fraternal Order of Police (FOP), representing City of McHenry Patrol Officers (Unit 1). Staff has tentatively negotiated a new agreement with the FOP and is seeking Council’s approval to authorize the Mayor and Deputy City Clerk to enter into a new collective bargaining agreement between the City of McHenry and the FOP. Staff is available for any questions Council may have. BACKGROUND: The previous four (4) year contract with FOP/Unit 1 covered a period beginning May 1, 2019 and is set to expire this upcoming April 30, 2023. During this previous period, annual cost of living increases for wages were identified at 2.5% each year over a four-year period. Additionally, during this same period, health insurance contributions from Unit 1 personnel were increased to allow for adjustments to health insurance costs. These increases varied based on the type of plan (PPO, HSA, HMO) and the type of coverage (Single, Single + Spouse, Single + Children, Family). ANALYSIS: Beginning in December of 2022 the Police Administration, represented by Chief Birk and Deputy Chief Walsh, with guidance and input from City Administrator and Finance Director Lynch, met with representatives of FOP/Unit 1 to discuss wages/benefits related to contract renewal. As a direct result of strong employer/employee relations the City was able to quickly reach a tentative 144 reasonable agreement that addresses all wages/benefits within the agreement. This process was completed with no additional outside legal fees and prior to letting the current agreement expire. The term of the new contract is proposed for four (4) years beginning May 1, 2023 and ending April 30, 2027. While a majority of the new contract maintained the same language/terms as the previous contract, some changes were made to ensure that the contract reflects updates required by new statutory laws and improvements to operational needs. Non-financial amendments to the contract include: • Term of Agreement: 4 Years (5/1/23 – 4/30/27) • Section 6.10 Shift Bidding / Reserved Positions: This section was amended to allow for new officers who would normally have to rotate their work shifts every four months for the first three years of employment to rotate only until they have completed training plus one full calendar year. The City still maintains the right to move an officer’s shift based on performance issues. • Section 7.2 Probationary Period: This section is being amended to increase the probationary time of a new police officer from fifteen months to eighteen months and a lateral hire police officer from twelve months to fifteen months. With the additional training requirements imposed on officers this provides the City additional time to determine employment status on new employees without cause. • Section 11.3 Holiday Pay: Amendments to this section were made to allow for holiday pay to be paid out to eligible employees on the last pay period in November rather than the first pay period in December. • Appendix H Seniority List: Update seniority • Section 13.6 Unused Sick Leave: Language was added to ensure that officers who are retiring in good standing with more than twenty years of service are entitled to participate in the existing sick leave buy back program regardless of whether they have a minimum of 400 hours of sick time in their sick bank. • Section 14.3 Bereavement Leave: Nieces and nephews were added to the approved bereavement list for “extended family”. Financial amendments to the contract include: • Section 6.5 Court and Training Time: Language was amended to allow for a minimum of three hours of overtime pay for off duty officers attending Grand Jury testimony. This is now the same minimum overtime offered as all other court appearances while off duty. • Section 6.11 Officer-In-Charge Pay: Language was amended to allow officers who are assuming “officer-in-charge” responsibilities in the absence of an on-duty sergeant shall receive one hour of overtime pay rather than one hour of straight pay. • Section 11.1 Holidays: Language was amended to add Martin Luther King Jr.’s Birthday as an approved Holiday. 145 •Section 16.2: Uniform Allowance: Language was added to increase the current uniform allowance from $600 annually to $800. This increase was based on rising equipment costs. This is the first adjustment since 2005. •Appendix A Wages: An annual raise of 3.5%, 3.5%, 3.5% and 3.5% in date order for each of the four fiscal years of the contract. •Section 17.6 Employee Deductible and Co-Insurance Costs: New adjusted employee contribution cap amounts were added to each year of the contract. The previous four years of actual insurance costs were factored in to help project the most accurate estimate of insurance costs in the coming four years. All of these employee contributions caps were increased each year to allow for the City to charge the employee a greater amount for their contribution. As a reminder the McHenry Police Officers Civilian Personnel (Unit 2) contract expires on April 30, 2025 and provides for a 2.25% raise on May 1t, 2023 and a 2.5% raise on May 1, 2024. The current Public Works contract is set to expire on April 30th, 2025 and provides a 2.25% raise on May 1, 2023 and a 2.5% raise on May 1, 2024. Staff feels that the FOP Unit 1 proposal keeps annual wage increases below expectable thresholds based on the recent trends with the CPIU and inflation. A review regarding comparable departments is part of our review process on wages. With such, information was gathered from other agencies in McHenry County, including Crystal Lake, Algonquin, Lake in the Hills and Woodstock. Currently Algonquin, Lake in the Hills and Crystal Lake have higher wage scales (1% - 6% higher) then what is being recommended. Woodstock has one year remaining on their contract and their wages are within $500-$650 of McHenry now. RECOMMENDATION: If Council concurs, then it is recommended that a motion authorizing the Mayor and the Deputy City Clerk to sign and execute the attached four (4) year collective bargaining agreement between the City of McHenry and Illinois Fraternal Order of Police for a term starting May 1st, 2023 and ending April 30th, 2027. 146 ORDINANCE NO. 23- AN ORDINANCE AUTHORIZING THE MAYOR’S AND DEPUTY CITY CLERK’S EXECUTION OF A LABOR AGREEMENT BETWEEN THE CITY OF MCHENRY AND THE ILLINOIS FRATERNAL ORDER OF POLICE (UNIT 1) MCHENRY CITY POLICE OFFICERS WHEREAS, the City of McHenry, McHenry County, Illinois, is a home rule municipality as contemplated under Article VII, Section 6, of the Constitution of the State of Illinois, and the passage of this Ordinance constitutes an exercise of the City’s home rule powers and functions as granted in the Constitution of the State of Illinois; and WHEREAS, the Mayor and the McHenry City Council desire to enter into a Labor Agreement with the Illinois Fraternal Order of Police (Unit 1) representing the McHenry City Police Officers. NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of McHenry, McHenry County, Illinois, as follows: SECTION 1: a.The Labor Agreement, a copy of which is atached hereto as Exhibit A and made a part hereof, is hereby approved. b.The Mayor of the City of McHenry and the Deputy City Clerk are hereby authorized to execute said agreement. SECTION 2: If any section, paragraph, subdivision, clause, sentence or provision of this Ordinance shall be adjudged by any Court of competent jurisdiction to be invalid, such judgment shall not affect, impair, invalidate or nullify the remainder thereof, which remainder shall remain and continue in full force and effect. SECTION 3: All ordinances, or parts of ordinances in conflict herewith are hereby repealed to the extent of such conflict. SECTION 4: This ordinance shall be published in pamphlet form by and under the authority of the corporate authorities of the City of McHenry, Illinois. SECTION 5: This ordinance shall be in full force and effect from and after its passage, approval and publication, as provided by law. Passed this 16th day of January, 2023. Ayes Nays Absent Abstain Alderman Devine _____ _____ _____ _____ Alderman Glab _____ _____ _____ _____ Alderman Harding _____ _____ _____ _____ Alderman McClatchey _____ _____ _____ _____ 146 A Alderwoman Miller _____ _____ _____ _____ Alderman Santi _____ _____ _____ _____ Alderman Strach _____ _____ _____ _____ ______________________ ________________________ Wayne Jett, Mayor Monte Johnson, Deputy City Clerk 146 B i ILLINOIS FOP LABOR COUNCIL and CITY OF MCHENRY PATROL OFFICERS May 1, 2023 – April 30, 2027 Springfield - Phone: 217-698-9433 / Fax: 217-698-9487 Western Springs - Phone: 708-784-1010 / Fax: 708-784-0058 Web Address: www.fop.org 24-hour Critical Incident Hot Line: 877-IFOP911 147 i TABLE OF CONTENTS PREAMBLE .................................................................................................................... 1 ARTICLE 1 RECOGNITION ........................................................................................... 1 Section 1.1 Recognition ...............................................................................................................1 Section 1.2 Duty of Fair Representation ......................................................................................1 Section 1.3 New Classifications ..................................................................................................1 ARTICLE 2 UNION SECURITY AND RIGHTS ............................................................... 2 Section 2.1 Dues ..........................................................................................................................2 Section 2.2 Bulletin Board ...........................................................................................................3 Section 2.3 Union Indemnification ..............................................................................................3 Section 2.4 Union Officials..........................................................................................................3 ARTICLE 3 MANAGEMENT RIGHTS ............................................................................ 3 ARTICLE 4 LABOR-MANAGEMENT MEETINGS ......................................................... 4 ARTICLE 5 MAINTENANCE OF ECONOMIC BENEFITS ............................................. 4 ARTICLE 6 HOURS OF WORK AND OVERTIME ......................................................... 5 Section 6.1 General Provisions ....................................................................................................5 Section 6.2 Normal Work Period, Workday and Work Schedule ...............................................5 Section 6.3 Changes in Normal Work Period, Workday and Work Schedule ............................6 Section 6.4 Overtime Pay ............................................................................................................6 Section 6.5 Court and Training Time ..........................................................................................6 Section 6.6 Call Back Pay ............................................................................................................6 Section 6.7 Compensatory Time ..................................................................................................7 Section 6.8 Required Overtime ....................................................................................................7 Section 6.9 Shift Trades ...............................................................................................................8 Section 6.10 Seniority Shift Bidding ...........................................................................................8 Section 6.11 Officer-In-Charge/Field Training Officer Pay ......................................................10 Section 6.12 On-Call Pay ...........................................................................................................10 ARTICLE 7 SENIORITY, LAYOFF AND RECALL ....................................................... 10 Section 7.1 Definition of Seniority ............................................................................................10 148 ii Section 7.2 Probationary Period ................................................................................................10 Section 7.3 Seniority List ...........................................................................................................11 Section 7.4 Layoff ......................................................................................................................11 Section 7.5 Recall ......................................................................................................................11 Section 7.6 Termination of Seniority .........................................................................................12 ARTICLE 8 MCHENRY POLICE COMMISSION .......................................................... 12 ARTICLE 9 GRIEVANCE PROCEDURE ...................................................................... 13 Section 9.1 Definition ................................................................................................................13 Section 9.2 Procedure ................................................................................................................13 Section 9.3 Arbitration ...............................................................................................................14 Section 9.4 Limitations on Authority of Arbitrator ...................................................................15 Section 9.5 Time Limit for Filing ..............................................................................................15 Section 9.6 Union Grievances....................................................................................................16 Section 9.7 Miscellaneous .........................................................................................................16 ARTICLE 10 NO STRIKE-NO LOCKOUT .................................................................... 16 Section 10.1 No Strike Commitment .........................................................................................16 Section 10.2 Strikes Prohibited ..................................................................................................16 Section 10.3 Job Actions Prohibited ..........................................................................................17 Section 10.4 Violations of This Article .....................................................................................17 Section 10.5 Illinois Fraternal Order of Police, Labor Council Notification of Employees .....17 Section 10.6 No Lockout ...........................................................................................................17 Section 10.7 Judicial Relief .......................................................................................................17 ARTICLE 11 HOLIDAYS AND PERSONAL BUSINESS LEAVE................................. 17 Section 11.1 Holidays ................................................................................................................17 Section 11.2 Eligibility Requirements .......................................................................................18 Section 11.3 Holiday Pay ...........................................................................................................18 Section 11.4 Personal Business Leave .......................................................................................19 ARTICLE 12 VACATIONS ............................................................................................ 19 Section 12.1 Eligibility and Allowances ....................................................................................19 Section 12.2 Vacation Pay .........................................................................................................20 Section 12.3 Scheduling and Accrual ........................................................................................20 149 iii ARTICLE 13 SICK LEAVE ........................................................................................... 21 Section 13.1 Purpose and Allowance.........................................................................................21 Section 13.2 Days Earned in Accumulation ..............................................................................22 Section 13.3 Notification ...........................................................................................................22 Section 13.4 Medical Examination ............................................................................................22 Section 13.5 Sick Leave Utilization...........................................................................................22 Section 13.6 Unused Sick Leave ...............................................................................................22 ARTICLE 14 ADDITIONAL LEAVES OF ABSENCE ................................................... 23 Section 14.1 Unpaid Discretionary Leaves ................................................................................23 Section 14.2 Military Leave .......................................................................................................23 Section 14.3 Bereavement Leave ...............................................................................................23 Section 14.4 Jury Leave .............................................................................................................24 Section 14.5 Family and Medical Leave Act (“FMLA”) Leave ................................................24 Section 14.6 Application for Leave ...........................................................................................24 Section 14.7 Benefits While on Unpaid Discretionary Leave ...................................................24 Section 14.8 Non-Employment Elsewhere ................................................................................25 Section 14.9 Family Responsibility Leave ................................................................................25 ARTICLE 15 WAGES ................................................................................................... 25 Section 15.1 Base Wages ...........................................................................................................25 Section 15.2 Experience Credits ................................................................................................25 Section 15.3 Tuition Reimbursement ........................................................................................25 Section 15.4 Deferred Compensation Plan (457K)....................................................................26 Section 15.5 Investigator Stipend ..............................................................................................26 Section 15.6 Travel Training Reimbursement ...........................................................................26 ARTICLE 16 UNIFORM ALLOWANCE ........................................................................ 26 Section 16.1 Initial Uniform ......................................................................................................26 Section 16.2 Uniform Allowances .............................................................................................26 Section 16.3 Safety Vest Replacement ......................................................................................26 Section 16.4 Return of Uniforms and Equipment ......................................................................26 Section 16.5 Reimbursement of Uniform Cleaning Expenses...................................................26 ARTICLE 17 INSURANCE ........................................................................................... 27 150 iv Section 17.1 Coverage and Cost ................................................................................................27 Section 17.2 Cost Containment..................................................................................................27 Section 17.3 Life Insurance .......................................................................................................27 Section 17.4 Terms of Insurance Policies to Govern .................................................................27 Section 17.5 Waiver of Insurance ..............................................................................................28 Section 17.6 Employee Deductible and Co-Insurance Costs.....................................................28 ARTICLE 18 EMPLOYEE ALCOHOL AND DRUG TESTING ..................................... 29 Section 18.1 Statement of Policy ...............................................................................................29 Section 18.2 Prohibitions ...........................................................................................................29 Section 18.3 Drug and Alcohol Testing Permitted ....................................................................30 Section 18.4 Order to Submit to Testing ...................................................................................30 Section 18.5 Test to be Conducted ............................................................................................30 Section 18.6 Disciplinary Action ...............................................................................................32 Section 18.7 Voluntary Request for Assistance .........................................................................32 Section 18.8 Treatment ..............................................................................................................33 ARTICLE 19 EMPLOYEE AND OTHER STATUTORY RIGHTS ................................. 33 Section 19.1 Bill of Rights .........................................................................................................33 Section 19.2 Personnel Files ......................................................................................................33 Section 19.3 Indemnification .....................................................................................................34 Section 19.4 Discipline ..............................................................................................................34 Section 19.5 Notice of Discipline ..............................................................................................34 Section 19.6 Access to Arbitration ............................................................................................34 ARTICLE 20 GENERAL PROVISIONS ........................................................................ 34 Section 20.1 Gender ...................................................................................................................34 Section 20.2 Ratification and Amendment ................................................................................34 Section 20.3 Fitness Examinations ............................................................................................34 Section 20.4 Physical Fitness Requirements .............................................................................34 Section 20.5 Secondary Employment ........................................................................................35 Section 20.6 No Smoking ..........................................................................................................35 Section 20.7 Special Assignment Employees ............................................................................35 Section 20.8 Rules and Regulations...........................................................................................35 Section 20.9 Inoculations ...........................................................................................................35 151 v Section 20.10 Communicable Diseases .....................................................................................36 Section 20.11 Replacement of Personal Property ......................................................................36 Section 20.12 Location of Meetings ..........................................................................................36 Section 20.13 No Solicitation ....................................................................................................36 ARTICLE 21 SAVINGS CLAUSE ................................................................................. 37 ARTICLE 22 IMPASSE RESOLUTION ........................................................................ 37 ARTICLE 23 ENTIRE AGREEMENT ............................................................................ 37 ARTICLE 24 TERM OF AGREEMENT ......................................................................... 37 APPENDIX A WAGE TABLE ....................................................................................... 39 APPENDIX B REQUIRED INITIAL UNIFORM LIST..................................................... 39 APPENDIX C GRIEVANCE FORM ............................................................................... 41 APPENDIX D DUES AUTHORIZATION FORM ........................................................... 43 APPENDIX E GENERAL ORDER 22.10 ATTENDANCE RQUIREMENT .................... 44 APPENDIX F FAMILY MEDICAL LEAVE POLICY ...................................................... 47 APPENDIX G GENERAL ORDER 22.4 SECONDARY EMPLOYMENT ...................... 53 APPENDIX H SENIORITY LIST ................................................................................... 55 152 1 Master 01-09-23 M PREAMBLE This Labor Agreement entered into by the City of McHenry, Illinois (hereinafter also referred to as the “City” or the “Employer”) and the McHenry Police Officers Association (hereinafter also referred to as the “Union” or "Illinois Fraternal Order of Police, Labor Council”) is in recognition of the Union’s status as the representative of the City’s sworn full-time peace officers in the rank of Patrol Officer in the Police Department, and has as its intent and purpose being the establishment of an entire agreement covering all rates of pay, hours of work and conditions of employment applicable to bargaining unit employees during the term of this Labor Agreement; the promotion of good working relations between the Employer and the Union; to encourage and improve efficiency and productivity; to prevent interruptions of work, and interference with the operations of the City; and the establishment of an orderly procedure for the resolution of grievances as provided herein. Therefore, in consideration of the mutual promises and agreements contained in this Labor Agreement, the Employer and the Union do mutually promise and agree as follows: ARTICLE 1 RECOGNITION Section 1.1 Recognition The City recognizes the Union as the sole and exclusive collective bargaining representative for employees in bargaining Unit I defined as all sworn full-time peace officers in the rank of Patrol Officer employed by the Police Department of the City hereinafter referred to as “officers” or “employees”), but excluding all other employees, including, but not limited to: all employees holding the position of Police Chief or Deputy Police Chief; all sworn officers above the rank of Patrol Officer; all part-time or temporary employees; employees excluded from the definition of “peace officer” as defined by Subsection 3(k) of the Illinois Public Labor Relations Act (as it existed on January 1, 1993) (hereinafter referred to as “IPLRA”); all non-Police Department employees; and all managerial, supervisory, confidential, professional, short-term, security and craft employees, as defined by the IPLRA. Section 1.2 Duty of Fair Representation The Union recognizes its responsibility as the exclusive bargaining agent for the employees in the bargaining unit covered by this Labor Agreement, and the Illinois Fraternal Order of Police, Labor Council agrees to fulfill its duty to fairly represent all employees in the bargaining unit, whether or not they are members of the Union. Section 1.3 New Classifications The Employer shall promptly notify the Union of its decision to implement any new classifications pertaining to work of a nature performed by employees in the bargaining unit. If the new classification is a successor title to a classification covered by the Labor Agreement and the job duties are not significantly altered or changed, the new classification shall automatically become a part of this Labor Agreement. If the new classification contains a significant part of the work now being done by any of the classifications covered by this Labor Agreement, or whose functions are similar to employees in this bargaining unit, and the new job classification may fall within the bargaining unit, the parties will then meet within thirty (30) days to review the proposed classification and, if unable to reach agreement as to its inclusion or exclusion from the unit, the Employer and the Illinois Fraternal Order of Police, Labor Council agree to jointly petition the ISLRB to seek the necessary unit clarification. 153 2 Master 01-09-23 M The Employer shall be free to implement its decision pending the outcome of the unit clarification petition and/or negotiations. If the inclusion of the proposed classification is agreed to by the parties or found appropriate under the Illinois Public Labor Relations Act, the parties shall then negotiate as to the proper pay grade for the classification, subject to the impasse resolution procedures of Article 22 of this Labor Agreement. ARTICLE 2 UNION SECURITY AND RIGHTS Section 2.1 Dues While this Labor Agreement is in effect, the City will deduct the appropriate biweekly amount of dues from each employee in the bargaining unit who has filed with the City a lawful, voluntary, effective check-off authorization form. Check-off authorization forms shall be supplied to the City by the Union and will be provided to newly hired employees at the same time such employees are requested to complete other required employment documents. The City will honor all executed check-off authorization forms received not later than ten (10) working days (i.e., days the City’s administrative offices are open) prior to the next deduction date. If a conflict exists between the check-off authorization form and this Article, the terms of this Article and Labor Agreement control. The City shall provide the Union with an opportunity to meet with all newly hired bargaining unit members on or before their respective starting dates for the purpose of explaining the benefits of membership in the Union. This privilege is subject to being discontinued in the event that a labor organization other than the Union should file a valid representation petition with the ISLRB claiming to represent a majority of the bargaining unit members. Total deductions collected for each month shall be remitted by the City to the Illinois Fraternal Order of Police, Labor Council by the tenth (10th) of the following month, together with a list of employees for whom deductions have been made. Dues deducted shall be sent to the official address designated in writing to the Employer by the Illinois Fraternal Order of Police, Labor Council. The Union agrees to refund to the employee any amount paid to the Illinois Fraternal Order of Police, Labor Council in error on account of this due’s deduction provision. Dues shall be withheld and remitted to the Illinois Fraternal Order of Police, Labor Council unless or until such time as the City receives ten (10) working days written notice a revocation of dues from an employee, or other timely notice of an employee’s death, transfer from covered employment, termination of covered employment, or when there are insufficient funds available in the employee’s earnings after withholding all other legal and required deductions. Information concerning dues not deducted under this Article shall be forwarded to the Union, and this action will discharge the City’s only responsibility with regard to such cases. The City shall provide the Union with a copy of any revocation of dues deduction authorization within seven (7) calendar days of the date the revocation is received by the City. Semiannually, the City shall provide the Union with a list of all employees in the bargaining unit, their dues status, and the amount paid in the previous six (6) month period. Deductions shall cease at such time as a strike or work stoppage occurs in violation of Article 10 (No Strike-No Lockout). The actual dues to be deducted shall be certified in writing to the City by the Illinois Fraternal Order of Police, Labor Council. 154 3 Master 01-09-23 M Dues shall each be uniform in dollar amount for all employees in order to ease the Employer’s burden of administering this provision. The Illinois Fraternal Order of Police, Labor Council may change the fixed uniform dollar amounts of its regular monthly dues once each calendar year during the life of this Labor Agreement. The Illinois Fraternal Order of Police, Labor Council will give the City thirty (30) calendar days’ notice of any such change in the amount of uniform dues to be deducted. Section 2.2 Bulletin Board The City will make available space on a bulletin board in the Police Department for the posting of official Union business which is germane to its role as the exclusive bargaining representative and which are not defamatory or derogatory in nature. The Union will limit the posting of Union business to such bulletin board. The posting of political materials shall be limited to notice of meetings wherein political issues will be addressed, proposed agenda of political topics to be discussed, and the posting of any final action taken by Illinois Fraternal Order of Police, Labor Council with respect to said political issues via the posting of meeting minutes. Section 2.3 Union Indemnification The Union shall indemnify, defend, and hold harmless the City and its officials, representatives and agents against any and all claims, demands, suits or other forms of liability (monetary or otherwise) and for all legal costs that shall arise out of or by reason of action taken or not taken by the City in complying with the provisions of this Article. Section 2.4 Union Officials For purposes of the Labor Agreement, the term “Union Officials” or “Union Officers” shall refer to the Union’s duly elected Union stewards. The Union will maintain (and keep current) with the Employer a complete written list of its Union Officials and other agents (including their addresses and telephone numbers) who will deal with the City. ARTICLE 3 MANAGEMENT RIGHTS Except as specifically limited by the express provisions of this Labor Agreement, the City retains all traditional rights to manage and direct the affairs of the City in all of its various aspects and to manage and direct its employees, to make and implement decisions with respect to the operation and management of its operations in all respects, including, but not limited to, the following: to plan, direct, control and determine all the operations and services of the City; to determine the Police Department’s mission, policies, procedures, and to set all standards of service offered in the community; to determine the budget, and to allocate budgetary priorities; to utilize and select suppliers and subcontractors; to supervise and direct the working forces; to establish the qualifications for hire and conditions for continued employment; to determine standards of conduct, both on and off duty, to the extent permitted by federal and state law; to select, hire, train, evaluate, promote, demote and transfer employees; to schedule and assign work and work duties; to assign overtime; to establish and enforce work, productivity and performance standards and, from time to time, to change those standards; to determine the methods, means, organization and number of personnel by which City operations and services shall be provided or purchased; to determine whether services are to be provided by employees covered by this Labor Agreement or by other employees or non-employees not covered by this Labor Agreement (provided such action does not result in layoffs in violation of the IPLRA); to make, alter and enforce rules, regulations, 155 4 Master 01-09-23 M orders and policies; to change or eliminate existing methods, equipment or facilities; to layoff or otherwise relieve employees from duty because of lack of work or for other reasons; and to take any and all actions as may be necessary to carry out the mission, duties and responsibilities of the City in situations of local disaster of civil emergencies as may be formally declared by the Mayor or Mayor's designee, the provisions of this Labor Agreement notwithstanding. It is the sole discretion of the Mayor or Mayor's designee to declare that a local disaster of civil emergency condition exists. In the event of such emergency action, the provisions of this Labor Agreement may be suspended. A local disaster of civil emergency shall include, but is not limited to, riots, civil disorder, and natural or manmade disaster conditions. ARTICLE 4 LABOR-MANAGEMENT MEETINGS The Illinois Fraternal Order of Police, Labor Council and the City agree that, in the interest of efficient management and harmonious employee relations, meetings are held up to once quarterly at the request of either party or at other times mutually agreed between Illinois Fraternal Order of Police, Labor Council representatives and the Chief and/or the City Administrator. It is expressly understood and agreed that such meeting shall be exclusive of the grievance procedure. Specific grievances being processed under the grievance procedure shall not be considered at “labor- management meetings” nor shall negotiations for the purpose of adding to or altering any of the terms of this Labor Agreement be carried on at such meetings. Attendance at labor-management meetings shall be voluntary on the employee’s part, and attendance by off-duty personnel during such meetings shall not be considered time worked for compensation purposes. If at the quarterly labor management meeting or meetings scheduled at the request or consent of the City during the regularly scheduled duty hours of one (1) or two (2) employee Union representatives, and if it is mutually agreed between the Chief or Chief's designee and the Union, such employee Union representatives shall be released from duty without loss of pay, provided they shall remain available to return to duty if needed. Normally, up to three (3) persons from each side shall attend these meetings, schedules permitting. Such meetings may be requested by either party at least seven (7) days in advance by placing in writing a request to the other for a “labor-management meeting” and expressly providing the agenda for such meeting. Such meetings and locations, if mutually agreed upon, shall be limited to: (a) discussion on the implementation and general administration of this Labor Agreement. (b) a sharing of general information of interest to the parties. (c) notifying the Illinois Fraternal Order of Police, Labor Council of changes in conditions of employment contemplated by the Employer which may affect employees. (d) issues or concerns involving safety. ARTICLE 5 MAINTENANCE OF ECONOMIC BENEFITS All economic benefits which are not set forth in this Labor Agreement and have not been eliminated during negotiations and that are currently in effect shall continue and remain in effect until such time as the City shall notify Illinois Fraternal Order of Police, Labor Council of its intention to change them. Upon such notification, and if requested by Illinois Fraternal Order of 156 5 Master 01-09-23 M Police, Labor Council, the City shall meet and discuss such change before it is finally implemented by the City. Any change made without such notice shall be considered temporary pending the completion of such meet and confer discussions. If Illinois Fraternal Order of Police, Labor Council becomes aware of such change and has not received notification, the Illinois Fraternal Order of Police, Labor Council must notify the City as soon as possible and request discussions, if such discussions are desired. The failure of the Illinois Fraternal Order of Police, Labor Council to request discussions shall act as a waiver of the right to such discussions by Illinois Fraternal Order of Police, Labor Council; however, no waiver will be construed to have occurred absent a showing that the Illinois Fraternal Order of Police, Labor Council actually knew of the City’s proposed or temporary change and failed to act upon it. No past economic practice, however, shall be construed so as to supersede or alter the plain meaning of the express provisions of this Labor Agreement, nor shall this Article be deemed to restrict management rights as outlined in this Labor Agreement. ARTICLE 6 HOURS OF WORK AND OVERTIME Section 6.1 General Provisions Purpose of Article The sole purpose of this Article is to provide a basis for the calculation of straight time, overtime, and other premium wages. The Employer’s pay records, practices, policies and other procedures shall govern the payment of all wages. No Guarantee of Work Nothing in this Article shall be construed as a guarantee of hours of work. This Article is intended only as a basis for computing overtime consistent with the provisions of the Fair Labor Standards Act. This Article is not intended to establish a right to compensation in any form for time not worked except as specifically provide for in this Labor Agreement. No Pyramiding Compensation shall not be paid more than once for the same hours under any provision of this Labor Agreement. Section 6.2 Normal Work Period, Workday and Work Schedule Shift Employees’ normal work schedules are as follows: 7:30 AM-4:00 PM (Days) 3:30 PM-12:00 AM (Afternoons a/k/a evenings) 11:30 PM-8:00 AM (Night’s a/k/a midnights) Employees shall work what is commonly referred to the 6-3 schedule. The normal workday for shift employees is 8.5 hours for six (6) days, followed by three (3) days off. The workday includes a paid thirty (30) minute lunch break, which will normally be scheduled by the officer’s immediate supervisor. It is understood by the parties that this schedule includes two (2) buy back days. The Chief of Police or Chief's designee will assign personnel to training during the year to total the appropriate number of buy-back hours. Buyback days will be scheduled a minimum of one (1) month in advance. Officers will not be assigned a buyback day on a day off group (three (3) day pattern as defined above) when an officer has previously been approved for benefit time immediately preceding the three (3) days off or immediately following the three (3) days off, unless the officer voluntarily waives this restriction. 157 6 Master 01-09-23 M Section 6.3 Changes in Normal Work Period, Workday and Work Schedule The shifts, workdays and hours to which employees are assigned shall be stated on the Departmental work schedule. Subject to the provisions of Section 6.10 herein, should it be necessary in the interest of efficient operations to temporarily alter or reassign the regular and normal workday, work period, work shift or work schedule, absent unexpected circumstances or an emergency, the City shall give at least twenty-four (24) hours’ notice to the individuals affected by any such change. In its discretion, desires to permanently alter the normal twenty-four (24) scheduling arrangement as set forth in Section 6.2, the City shall (1) inform the Union of any such change thirty (30) days before it is implemented and (2) if requested, allow the Union the opportunity to comment on same through a labor-management meeting in accordance with Article 4, the City’s discretion in permanently altering the normal twenty-four (24) hour scheduling arrangement shall not be unreasonably applied. Section 6.4 Overtime Pay When any employee works more hours in a workday than the number of hours in the employee’s normal shift or works more than one hundred seventy-one (171) hours in a twenty-eight (28) day work period, the officer shall be paid at a rate of one and one-half (1-1/2) times the officer's regular straight-time hourly rate of pay for each overtime hour worked beyond the employee’s normal shift or one hundred seventy-one (171) hours in a twenty-eight (28) day work period. A non-shift employee shall be paid at one and one-half (1-1/2) times the officer's regular straight time hourly rate of pay for each hour worked in excess of the employee’s normal shift or in excess of forty (40) hours in a seven (7) day work period. Overtime pay shall be received in fifteen (15) minute segments as provided by the Fair Labor Standards Act (FLSA). For purposes of this Article, time worked shall include only that time spent on duty as provided by the Fair Labor Standards Act (FLSA) and shall not include any uncompensated periods or time which is compensated but not actually worked, including but not limited to vacation, sick leave, or any other leave of absence. All overtime shall be paid on the basis of a regular straight time hourly rate calculated by dividing an employee’s annual salary by 2080. The parties herein agree that with the transition to the normal twenty-four (24) hour scheduling arrangement as set forth in Section 6.2, all overtime hours incurred during the initial pay period as a result of said transition shall be paid to bargaining unit members at the affected officer’s normal straight time rate of pay. Section 6.5 Court and Training Time Police Officers who would otherwise be off-duty shall be paid a minimum of three (3) hours’ pay at their applicable overtime rate of pay for all hours worked when (1) appearing in court on behalf of the City in the capacity of a commissioned officer, or (2) when preparing for an off-duty court appearance when in the presence of a prosecuting attorney, or (3) when participating in mandatory off-duty training exercises or meetings. The three (3) hours shall not apply where (1) the court or training, or meeting time precedes within three (3) hours of the employee’s regular work shift or (2) court or training or meeting time immediately follows an employee’s regular work shift. Lunch periods in connection with court time shall not be counted toward hours worked. Section 6.6 Call Back Pay A call-back is defined as a work assignment which does not immediately precede or follow an employee’s regularly scheduled working hours. A Police Officer called back to work after having 158 7 Master 01-09-23 M left work shall receive a minimum of two (2) hour’s pay at the overtime rate, unless the individual is called back by the Patrol Officer's supervisor to rectify the officer's own error. Section 6.7 Compensatory Time Where requested by the affected employee, the City shall grant compensatory time for all overtime hours worked, up to a maximum of fifty-one (51) hours of compensatory time per shift employee, or fifty-one (51) hours of compensatory time per non-shift employee, in any given calendar year. Compensatory time may be replenished. Compensatory time off shall be taken at such time as agreed to by the Chief of Police. Accumulated compensatory time not taken by the end of the calendar year shall be paid to the affected employee on the first scheduled payroll in the next calendar year, with the exception of seventeen (17) hours or two regular shifts, whichever is less, which may be carried over to the next calendar year. Compensatory time off shall be counted toward hours of work for purposes of calculating overtime. Compensatory times shall be used in increments of no less than two (2) hours. Section 6.8 Required Overtime The Chief of Police or Chief's designee(s) shall have the right to require overtime work and employees may not refuse overtime assignments. In non-emergency situations, the Chief or Chief's designee as a general rule shall take reasonable steps to obtain volunteers for overtime assignments before assigning required overtime work. However, volunteers will not necessarily be selected for work in progress. Also, specific employees may be selected for special assignments based upon specific skills, ability and experience they may possess. Regular Shift Shortage Required Overtime When such regular shift required overtime becomes available, it will be offered in the following steps: Shift Shortage (with Supervisor already working on the short shift) 1. It shall be offered first to the off going and on coming bargaining unit personnel in four (4) hour increments by seniority, then 2. Offered to off going and on coming supervisors in four (4) increments, then 3. Offered to bargaining unit personnel assigned to the affected shift who are currently off duty by seniority, then 4. Offered to supervisors assigned to the affected shift who are currently off duty, then 5. If the hours remain unfilled, then officers will be ordered to work the required overtime based on reverse seniority of the off going and on coming shifts, in four (4) hour increments. Shift Shortage (with no Supervisor working the short shift) 1. It shall be offered first to off going and on coming supervisors in four (4) hour increments, then 2. Offered to the off going and oncoming bargaining unit personnel in four (4) hour increments, by seniority, then 3. Offered to supervisors assigned to the affected shift who are currently off duty, then 159 8 Master 01-09-23 M 4. Offered to bargaining unit personnel assigned to the affected shift who are currently off duty by seniority, then 5. If the hours remain unfilled, then officers will be ordered to work the required overtime based on reverse seniority of the off going and on coming shifts, in four (4) hour increments. Special Events / Special Assignment Required Overtime When such special event / special assignment required overtime becomes available, the overtime shall be posted as an overtime detail by the Chief of Police or the Chief’s designee(s). The overtime shall be made available to all Unit I bargaining members and those selected will be selected on a rotating seniority basis (that resets annually) and job qualifications. If hours remain unfilled, the overtime shall be filled by ordering members of the bargaining unit to work on a reverse seniority basis. All special assignments that have been approved by the Chief of Police as “Special Assignment Required Overtime” details shall be overtime assignments and one and one half the selected officer’s hourly rate of pay will apply. Overtime Assignment Exception The McHenry West Campus Bus Detail will be filled on a continuous rotating seniority basis. The McHenry West Campus Bus Detail will not follow seniority selection, but Officers and Sergeants will be able to sign up for three (3) details at a time until all monthly bus details are filled. The Chief of Police or Chief’s designee(s) will maintain a record of the process used to assign overtime and will make available to the Union Stewards upon request. Section 6.9 Shift Trades In accordance with the Fair Labor Standards Act, an employee may trade duty days with another employee in the same rank and position, provided that the trade: (a) has been requested at least one (1) duty day in advance, (b) does not adversely interfere with the operations of the department or an employee’s training and (c) is approved by the Chief of Police or Chief's designee; such approval not to be unreasonably withheld. It is understood in this regard that the substitute employee must be capable of performing all of the job functions of the employee originally scheduled to work the shift. The hours worked by the substitute employee shall be excluded by the City in the calculation of hours, for which the substitute employee would otherwise be entitled to compensation including overtime compensation. The hours worked by the substitute employee shall be counted as hours worked by the employee originally scheduled to work. Section 6.10 Seniority Shift Bidding Bargaining unit employees shall be allowed to exercise their seniority for selection of shift assignments and day off patterns on an annual basis. For all available positions within the bargaining unit, the Employer retains the right to decide shift assignments until an employee is (1) released to the solo patrol phase of the Field Training Program and (2) completes one (1) additional calendar year of shift rotation prior to starting a new annual permanent shift assignment. Shift Bids The Employer shall conduct shift bids between September 1 and September 30 each year, for shifts effective January 1, by compiling a list of personnel seniority dates. Employees shall then bid for 160 9 Master 01-09-23 M their choices of shift. Employees shall be given choices corresponding to the number of positions for each shift. All positions of a shift shall be available, except those reserved by the Employer as defined below. On or before October 1, the employer shall post a list identifying which shift each Officer has been assigned. Early car assignments will be selected by the Chief of Police or Chief’s designee(s). Rotation Selection The Employer shall conduct day off patterns bids between October 1 and October 31 each year for day off patterns effective January 1. On or before October 1, the Employer shall post a list identifying which shift each officer has been assigned. Officers assigned to early cars on each shift will bid for a rotation amongst themselves by seniority. Officers on each individual shift that are not designated as early cars, will bid amongst themselves by seniority for their day off pattern. Any shift transfers required as a result of this process shall take effect January 1 each year. Reserved Positions 1) Illinois Fraternal Order of Police, Labor Council and the City agree that employee assignments to K-9 Officer, Street Crimes, School Liaison, Task Force, Public Affairs, and Investigations shall not be considered “available positions” within the meaning of this Section. 2) The Chief of Police reserves the right to temporarily reassign a bargaining unit member to a shift other than the shift the employee bid for by seniority as provided herein, for purposes of continuing law enforcement education and training or other required training of the employee, subject to the notice provisions of Article 6, Section 6.3 herein. 3) The Chief of Police reserves the right to temporarily reassign a bargaining unit member to a shift other than the shift the employee bid for by seniority as provided herein, to temporarily replace another bargaining unit member on extended medical leave of absence. 4) The Chief of Police reserves the right to temporarily reassign bargaining unit members to a shift other than the shift the employee bid for by seniority as provided herein, in the event of an emergency. 5) The Chief of Police reserves the right to reassign a bargaining unit member to a shift other than the shift the employee bid for by seniority as provided herein, where performance deficiencies give rise to the necessity of such transfer. In the event an employee’s performance is deficient, and where the employee has been subjected to an oral reprimand and has subsequently been subjected to a written reprimand for the employee’s performance deficiencies, the Chief of Police, in his discretion, may reassign the employee to another shift determined to be appropriate, said discretion not to be unreasonably applied. In the event the Chief of Police reassigns a bargaining unit member to another shift due to performance deficiencies of the bargaining unit member as described herein above, the City shall first offer to an employee in the same day off group as the transferred employee the opportunity to fill the shift vacancy created by the disciplined employee’s transfer. If an employee in the same day off group declines the opportunity to fill the shift vacancy, the City agrees to fill the shift vacancy created by the disciplined employee’s transfer with a bargaining 161 10 Master 01-09-23 M unit member from the five (5) years or less seniority group, rather than to compromise the schedule of employees within the five (5) years or more of seniority shift bidding group. Shift Trades By mutual agreement between employees with the consent of the Chief of Police or Chief's designee, subject to the operating needs of the department, individual employees may bid shift changes in addition to the annual bid. Shift Vacancies If after bidding for shift a vacancy occurs (sixty (60) days or longer), then preferably an employee on a duplicate day off group may be moved to the vacant position. No further bidding of shifts shall occur until the normal annual shift bidding procedure occurs. The shift bidding provisions above shall begin on October 1, 1996, to be effective for the calendar year beginning January 1, 1997, and shall continue thereafter in subsequent calendar years. Nothing in this Article shall limit the rights of the City or Chief of Police to determine the number of officers on each shift. Section 6.11 Officer-In-Charge/Field Training Officer Pay An employee assigned as an Officer-In-Charge for a minimum of four (4) hours during a shift shall receive additional compensation in the amount of one (1) hour of overtime pay for such assignment. Only one (1) Officer can receive OIC pay per shift. An employee assigned as a Field Training Officer for a minimum of four (4) hours during a shift shall receive additional compensation in the amount of one (1) hour of straight pay for such assignment. No more than two (2) Officers can receive FTO pay for training the same employee on the same day. In the event an employee is assigned to both positions during the same shift, the employee will receive the higher of the two (2) rates. Section 6.12 On-Call Pay Officers who are regularly assigned to be On-Call as a part of their duties shall be compensated for this On-Call status by payment of twenty (20) hours of straight-time pay. Ten (10) hours shall be paid in the first half of the year (May) and ten (10) hours shall be paid in the second half of the year (November). ARTICLE 7 SENIORITY, LAYOFF AND RECALL Section 7.1 Definition of Seniority For purposes of this Labor Agreement, seniority shall be defined as an employee’s length of continuous service from the last date of beginning continuous full-time employment in a position covered by this Labor Agreement. Seniority shall accumulate during all authorized paid leaves of absence and during suspensions of thirty (30) days or less. Seniority shall not accumulate from the first day of an authorized unpaid leave or absence of lay off of thirty (30) calendar days or more. Conflicts of seniority shall be determined on the basis of the order of the employees’ names on the eligibility list from which they were hired. Section 7.2 Probationary Period All new employees and those hired after loss of seniority shall be considered probationary employees until they have completed a probationary period of eighteen (18) months of work. Officers hired from other Departments who are fully credited will be considered probationary until 162 11 Master 01-09-23 M they have completed a probationary period of fifteen (15) months of work. The probationary period may be extended up to three (3) months by the Chief of Police. Time absent from duty or not served for any reason (such as, including but not limited to, unpaid leave of absence, duty related injury or illness, jury duty, military leave, etc.) shall not apply toward satisfaction of the probationary period, except for holidays, vacation and paid sick leave. Probationary employees shall be entitled to all rights, privileges and benefits provided for in this Labor Agreement, except that during an employee’s probationary period, the employee may be terminated without cause. Such probationary employee shall have no recourse to the grievance procedure or to the Board of Police Commissioners to contest a layoff or termination. Furthermore, there shall be no seniority among probationary employees for purposes of layoffs. Upon successful completion of the probationary period, an employee shall acquire seniority which shall be retroactive to the officer's last date of hire with the City in a position covered by this Labor Agreement. Section 7.3 Seniority List On or about October 1 each year, the City will provide the Union with a seniority list of all employees in the bargaining unit setting forth each employee’s seniority date and rank. The City shall not be responsible for any errors in the seniority list unless such errors are brought to the attention of the City in writing within thirty (30) days after the Union’s receipt of the list. Upon request in writing to the Police Chief, an updated seniority list will be provided to the Union during the course of the year. Section 7.4 Layoff The City, in its discretion, shall determine whether layoffs are necessary. If it is determined that layoffs are necessary, employees covered by this Labor Agreement will be laid off in accordance with their length of service as provided in the Illinois Compiled Statutes (65 ILCS 5/10-2.1-18, as it existed as of January 1, 1993), provided that, however, probationary employees shall be selected for layoff based on relative skill and ability as determined by the Chief; and provided further that the remaining employees are qualified to do the remaining work without further training. In the event a non-probationary employee is laid off ahead of a probationary employee subject to the aforementioned provision, said non-probationary employee or employees shall be given an additional twelve (12) months (up to a total of twenty-four (24) months) for purposes of recall pursuant to Section 7.5. Section 7.5 Recall Employees (including probationary employees) who are laid off shall be placed on a recall list, in the reverse order of their layoff for a period of twelve (12) months. If there is a recall, employees who are still on the recall list shall be recalled, in the inverse order of their layoff, provided they meet the City’s medical, physical fitness and mental standards and are fully qualified to perform the work to which they are recalled without further training. An employee who is recalled and fails to meet such standards at the time of recall shall be passed over and returned to the top of the recall list; such an employee will be eligible for a second recall for a future vacancy so long as the officer remains on the recall list. An employee’s seniority will be terminated if the officer fails such standards upon a second recall. Employees who are eligible for recall shall be given at least thirty (30) calendar days’ notice of recall (with the first of the thirty (30) days being the date the notice 163 12 Master 01-09-23 M to the employee is postmarked). The notice of recall shall be sent to the employee by certified mail, return receipt requested, with a copy similarly mailed or personally delivered to a designated representative of the Union. The employee must notify the Police Chief or Chief's designee of the officer's intention to return to work within three (3) calendar days after receiving notice of recall (but in no event later than thirty (30) days from the date of postmark of the notice of recall). The City shall be deemed to have fulfilled its obligations by mailing the recall notice by certified mail, return receipt requested, to the mailing address last provided by the employee, it being the obligation and responsibility of each employee to provide the Police Chief or Chief's designee with the officer's latest mailing address. If an employee fails to timely respond to a recall notice or if an employee either declines the recall or does not report to work as scheduled, the officer's name shall be removed from the recall list. If the City has not heard from the employee within thirty (30) calendar days of mailing a properly addressed notice of recall, or if the notice is returned as undeliverable by the United States Postal Service, whichever occurs first, the employee’s name shall be removed from the recall list. Section 7.6 Termination of Seniority Seniority for all purposes and the employment relationship shall be terminated if the employee: (a)quits; retires or is retired, (b)is discharged, for just cause. (c)falsifies the reason for a leave of absence or is found to be working during a leave of absence without prior written approval of the Chief. (d)fails to report to work at the conclusion of an authorized leave of absence, layoff, or vacation. (e)is laid off and fails to respond to a notice of recall within three (3) calendar days after receiving notice of recall or to report for work at the time prescribed in the notice of recall or otherwise does not timely respond to a notice of recall as provided in Section 7.5 of this Labor Agreement. (f)is laid off or otherwise does not perform bargaining unit work for the City for a period in excess of twelve (12) months; or (g)is absent for three (3) consecutive working days without notification to or authorization from the City. ARTICLE 8 MCHENRY POLICE COMMISSION The parties recognize that the Board of Police Commissioners of the City of McHenry has certain statutory authority over employees covered by this Labor Agreement, except as otherwise referenced in this Labor Agreement, including but not limited to certain authority over discipline and discharge of probationary employees and the right to make, alter and enforce rules and regulations. Nothing in this Labor Agreement is intended in any way to replace or diminish the authority of the Board of Police Commissioners, except as otherwise denoted in the Labor Agreement. 164 13 Master 01-09-23 M ARTICLE 9 GRIEVANCE PROCEDURE Section 9.1 Definition A “grievance” is defined as a dispute or difference of opinion raised under and during the term of this Labor Agreement (as set forth in Article 24, Duration and Term of Agreement) by an employee against the City involving an alleged violation, misinterpretation, or misapplication of an express provision of this Labor Agreement. The parties agree that the Chief of Police (or the Chief’s designee) shall have the right to implement disciplinary suspension, including termination of a covered member for just cause, and shall not file charges with the City’s Board of Fire and Police Commissioners. Neither the Police Chief nor the City or their agents will file charges asking the Board of Fire and Police Commissioners to impose discipline on any non-probationary bargaining unit employee; instead, all such discipline shall be imposed by the Police Chief or designee. The decision of the Police Chief or the Chief’s designee with respect to any suspension or dismissal action shall be deemed final, subject only to the review of said decision through the grievance and arbitration procedure. The sole recourse for appealing any such decision by the Chief of Police or the Chief’s designee shall be for the employee to file a grievance as described herein. If the employee elects to file a grievance as to their suspension or dismissal, the grievance shall be processed in accordance with Article 9 of this Labor Agreement, except that it shall be filed at step 4 of the procedure. If the grievance proceeds to arbitration and the arbitrator determines that the disciplinary action was not supported by just cause, the arbitrator shall have the authority to rescind or to modify the disciplinary action and order back pay, or a portion thereof. No relief shall be available from the Board of Fire and Police Commissioners with respect to any matter which is subject to the grievance and arbitration procedure set forth in Article 9 of this Labor Agreement. The parties have negotiated an alternative procedure based upon the grievance and arbitration provisions of this Labor Agreement, and the foregoing provisions with respect to the appeal and review of suspension and discharge decisions shall be in lieu of and shall expressly supersede and preempt and provisions that might otherwise be the Rules and Regulations of the City’s Board of Fire and Police Commissioner’s. Discipline of probationary officers, as well as any verbal warnings, written reprimands or written warnings shall not be subject to the grievance and arbitration procedure. Section 9.2 Procedure A grievance filed against the City will be processed in the following manner. The parties may bypass one (1) or more steps of the following procedure by written mutual agreement: Step 1 An employee who has a grievance is encouraged to resolve the grievance informally through discussions with the officer's immediate supervisor (normally the Officer's sergeant) who is not a member of any bargaining units and who is not otherwise represented by any Union. Any employee who has a grievance that cannot be resolved informally shall submit the grievance in writing to the immediate supervisor who is not a member of any bargaining unit and who is not otherwise represented by any Union specifically indicating that the matter is a grievance under this Labor Agreement. The grievance shall contain a complete statement of the facts, the provision or provisions of this Labor Agreement which are alleged to have been violated, and the specific relief requested. All grievances must be presented no later than seven (7) calendar days from the date of the occurrence of the event first giving rise to the grievance or within seven (7) calendar days after the employee, through the use of reasonable diligence, could have obtained knowledge of the 165 14 Master 01-09-23 M occurrence of the first event giving rise to the grievance. The immediate supervisor shall render a written answer to the grievant within seven (7) calendar days after the grievance is presented. Step 2 If the grievance is not settled at Step 1 and the grievant wishes to appeal to Step 2 of the grievance procedure, it shall be submitted in writing to the appropriate Division Commander within seven (7) calendar days after receipt of the City’s written answer in Step 1 or within seven (7) calendar days of when the City’s answer in Step 1 was due. The grievance shall specifically state the basis upon which the grievant believes the grievance was improperly denied at the previous step of the grievance procedure. The Division Commander shall meet to discuss the grievance with the grievant at a mutually agreeable time within seven (7) calendar days of the Division Commander's receipt of the grievance. The Division Commander may present other persons whom the Division Commander deems appropriate. If no settlement of the grievance is reached, the Division Commander will provide a written answer within seven (7) calendar days of the meeting or, if no meeting is held, within seven (7) calendar days after the Division Commander's receipt of the grievance. Step 3 If the grievance is not settled at Step 2 and the grievant wishes to appeal to Step 3 of the grievance procedure, it shall be submitted in writing to the Police Chief within seven (7) calendar days after receipt of the City’s written answer in Step 2 within seven (7) calendar days of when the City’s written answer in Step 2 was due. The grievance shall specifically state the basis upon which the grievant believes the grievance was improperly denied at the previous step of the grievance procedure. The Chief shall meet to discuss the grievance with the grievant and a Union Official at a mutually agreeable time within seven (7) calendar days of the Chief's receipt of the grievance. The Chief may present other persons whom the Chief deems appropriate. If no settlement of the grievance is reached, the Chief will provide a written answer within seven (7) calendar days of the meeting or, if no meeting is held, within seven (7) calendar days after the Chief's receipt of the grievance. Step 4 If the grievance is not settled at Step 3 and the grievant wishes to appeal the grievance to Step 4 of the grievance procedure, it shall be submitted in writing to the City Administrator within seven (7) calendar days after receipt of the City’s written answer in Step 3 or within seven (7) calendar days of when the City’s written answer in Step 3 was due. The grievance shall specifically state the basis upon which the grievant believes the grievance was improperly denied at the previous step of the grievance procedure. The City Administrator or City Administrator's designee shall investigate the grievance and, in the course of such investigation, shall meet to discuss the grievance within seven (7) calendar days with the grievant and a Union Official. The City Administrator may present other persons whom he deems appropriate. If no such settlement of the grievance is reached, the City Administrator or City Administrator's designee shall provide a written answer to the grievant and a designated Union Official within seven (7) calendar days following the meeting or, if no meeting is held, within seven (7) calendar days after receipt of the appeal. Section 9.3 Arbitration If the grievance is not settled in Step 4 and the Union wishes to appeal the grievance from Step 4 of the grievance procedure, the Union may refer the grievance to arbitration, as described below, 166 15 Master 01-09-23 M within twenty-one (21) calendar days of the receipt of the City’s written answer as provided to the Union at Step 4 or within twenty-one (21) calendar days of when the City’s answer in Step 4 was due: (a)The parties shall attempt to agree upon an arbitrator within seven (7) calendar days after receipt of the notice of referral. In the event the parties are unable to agree upon the arbitrator within said seven (7) day period, the parties shall jointly request the Federal Mediation and Conciliation Service to submit a panel of seven (7) arbitrators. Each party retains the right to reject one (1) panel in its entirety and request that a new panel be submitted. Both the City and the Union shall have the right to alternately strike being determined by the flip of a coin. The person remaining shall be the arbitrator. (b)The arbitrator shall be notified jointly by the parties of their selection and shall be requested to set a time and place for the hearing, subject to the availability of Union and City representatives. (c)The City and the Union shall have the right to request the arbitrator to require the presence of witnesses or documents. The City and the Union retain the right to employ legal counsel. (d)The arbitrator shall submit the arbitrator's decision in writing within thirty (30) calendar days following the close of the hearing or the submission of briefs by the parties, whichever is later. (e)More than one (1) grievance may be submitted to the same arbitrator only if both parties mutually agree to do so in writing. The fees and expenses of the arbitrator and the cost of a court reporter and a written transcript, if any, shall be divided equally between the City and the Union; provided, however, that each party shall be responsible for compensating its own representatives and witnesses. Section 9.4 Limitations on Authority of Arbitrator The arbitrator shall have no right to amend, modify, and nullify, ignore, add to, or subtract from the provisions of this Labor Agreement. The arbitrator shall consider and decide only the question of fact as to whether there has been a violation, misinterpretation, or misapplication of the specific provisions of this Labor Agreement. The arbitrator shall be empowered to determine the issue raised by the grievance as submitted in writing at Step 2. The arbitrator shall have no authority to make a decision on any issue not so submitted or raised. The arbitrator shall be without power to make any decision or award which is contrary to or inconsistent with, in any way, applicable laws or court decisions, or rules and regulations of administrative bodies that have the force and effect of law. The arbitrator shall not in any way limit or interfere with the powers, duties, and responsibilities of the City under law and applicable court decisions. Any decision or award of the arbitrator rendered within the limitations of this Section 9.4 shall be final and binding upon the City, Union and the employees covered by this Labor Agreement. Section 9.5 Time Limit for Filing No grievance shall be entertained or processed unless it is submitted at Step 1 within seven (7) calendar days after the occurrence of the event first giving rise to the grievance or within seven (7) calendar days after the employee, through the use of reasonable diligence, could have obtained 167 16 Master 01-09-23 M knowledge of the occurrence of the first event giving rise to the grievance. If a grievance is not presented by the employee within the time limits set forth above, it shall be considered “waived” and cannot be pursued further. If a grievance is not appealed to the next step within the specified time limit or any agreed extension thereof, it shall be considered settled on the basis of the City’s last written answer. If the City does not hold a meeting or answer a grievance or an appeal thereof within the specified time limits, the aggrieved employee may elect to treat the grievance as denied at that step and immediately appeal the grievance as denied at that step and immediately appeal the grievance to the next step. The parties may by mutual agreement in writing extend any of the time limits set forth in this Article. Section 9.6 Union Grievances If a grievance alleges a violation, misinterpretation, or misapplication of the specific terms of this Labor Agreement that relate directly to Union rights (e.g., dues check-off, labor-management meetings, bulletin boards) or, if a grievance arises out of the same facts and alleges the same violation, misinterpretation, or misapplication of the specific terms of this Labor Agreement as to a class of two (2) of more employees, the Union, acting through a designated Union official, shall have the right to submit a grievance at the Second Step of the grievance procedure. If the Division Commander and the designated Union Official agree that the grievance cannot properly be resolved by the Divisional Commander, the grievance shall be immediately advanced to the Third Step of the grievance procedure. Any such grievance must be submitted within seven (7) calendar days after the first event giving rise to the grievance or within seven (7) calendar days after the Union, through the use of reasonable diligence, could have obtained knowledge of the occurrence of the first event giving rise to the grievance. Section 9.7 Miscellaneous No member of any bargaining unit shall have any authority to respond to a grievance being processed in accordance with the grievance procedure set forth in this Article. Moreover, no action, statement, agreement, settlement, or representation made by any member of any bargaining unit or other City employee represented by any Union shall impose any obligation or duty or be considered to be authorized by or binding upon the City has agreed thereto in writing. ARTICLE 10 NO STRIKE-NO LOCKOUT Section 10.1 No Strike Commitment The Labor Organization and the members of the bargaining unit covered by this Labor Agreement recognize and agree that the rendering of police services to the City and cooperation and support to surrounding police jurisdictions, cannot, under any circumstances or conditions be withheld, interrupted, or discontinued, and that to do so will endanger the health, safety, and inhabitants thereof. Section 10.2 Strikes Prohibited Neither the Union nor any of its officers or agents, nor any employees covered by this Labor Agreement will, for any reason, instigate, promote, sponsor, aid, condone or engage in any strike, sympathy strike, or any other intentional interruption or disruption of the operations of the City, and no employee covered by this Labor Agreement shall refuse, while on duty, to cross any picket line, wherever established. 168 17 Master 01-09-23 M Section 10.3 Job Actions Prohibited Neither the Union nor any of its officers or agents, nor any employees covered by this Labor Agreement will, for any reason, instigate, promote, sponsor, aid, condone or engage in any boycott, secondary boycott, residential hand billing, work slowdown, speed-up, sit-down, concerted application of unauthorized or abnormal or unapproved enforcement procedures or policies, concerted disobedience of lawful orders of a superior, concerted stoppage of work, concerted refusal to perform overtime, deliberate absenteeism, picketing of any kind or any other intentional interruption or disruption of the operations of the City. Section 10.4 Violations of This Article Any or all employees who violate any of the provisions of this Article may be discharged or otherwise disciplined by the City, and the only issue that may be used in any proceeding in which such discipline or discharge is challenged is whether or not the employee actually engaged in such prohibited conduct. Such discipline may include any, some or all of the employees involved. The failure to confer a penalty in any instance is not a waiver of such right in any instance nor is it a precedent. Any disciplinary action taken by the City for employee activities prohibited by this Section shall not be considered a violation of this Labor Agreement and shall not be subject to the grievance and arbitration procedures of this Labor Agreement. Section 10.5 Illinois Fraternal Order of Police, Labor Council Notification of Employees The Illinois Fraternal Order of Police, Labor Council agrees to notify all Union Officials mid agents of their obligations and responsibility for maintaining compliance with this Section, including their responsibility to abide by the provisions of this Section by remaining at work (that is, those who are employees of the City) during any interruption as outlined above. In addition, in the event of a violation of this Section of this Article, the Illinois Fraternal Order of Police, Labor Council agrees to inform its members of their obligations under this Labor Agreement and to encourage and direct them to return to work by all means available under its Constitution, By- Laws, or otherwise. Section 10.6 No Lockout The City will not lock out any employees during the term of this Labor Agreement as a result of an actual or anticipated labor dispute with the Union so long as there is good faith compliance by the Illinois Fraternal Order of Police, Labor Council with this Article. Section 10.7 Judicial Relief Nothing contained herein shall preclude the Employer from obtaining a temporary restraining order, damages and other judicial relief as determined appropriate by the Court in the event the Illinois Fraternal Order of Police, Labor Council or any employees covered by this Labor Agreement violate this Article. ARTICLE 11 HOLIDAYS AND PERSONAL BUSINESS LEAVE Section 11.1 Holidays The following are recognized as holidays for eligible employees: New Year’s Day Martin Luther King’s Birthday President’s Day Memorial Day 169 18 Master 01-09-23 M Independence Day Labor Day Veterans Day Thanksgiving Friday after Thanksgiving Christmas Eve (one-half 1/2 day) Christmas Day The City agrees to allow bargaining unit employees to use accrued holiday pay as paid time off in lieu of cash payment as provided in Section 11.2 herein. Holiday pay shall accrue to an employee’s credit on the actual holiday itself. Employees may use accrued holiday pay as paid time off by requesting same in writing subject to the approval of the Chief of Police or Chief's designee, such approval not to be unreasonably withheld. Section 11.2 Eligibility Requirements Employees shall work all holidays when scheduled as part of their normal Departmental work schedule. To be eligible to receive holiday pay or “paid time off” in recognition of a holiday, an employee must work the full scheduled day before and after the holiday, when scheduled as part of their normal department work schedule. The Chief shall permit an employee who was ill to verify the officer's illness so as to qualify for holiday pay by submitting to the Chief of Police or Chief's designee a medical certification verifying the employee’s illness. A medical certification is acceptable as provided by a physician or physician’s assistant or nurse practitioner. Section 11.3 Holiday Pay Employees who satisfy the eligibility requirements of Section 11.2 shall receive either “holiday time off" or “holiday pay” equivalent to the holidays for which the officer becomes eligible. Employees wishing to take holiday time off in lieu of the holiday pay may request the holiday time off as if it were personal business leave with the exception that such time must be requested in increments of no less than one half (1/2) of a regularly scheduled shift or four (4) hours, whichever is less. In no event may an employee take holiday time off without having first become eligible for the holiday. Holiday time must be used or paid prior to the end of the calendar year in which it is earned. December holidays, Thanksgiving Day, and the Day after Thanksgiving Day shall not be eligible to be taken as holiday time off. Employees choosing to receive holiday pay and those employees who have failed to take accrued holiday time off by October 31st shall be paid in a lump sum on the last full pay period during the month of November, at a rate equivalent to a regular day’s pay (at the employees straight time rate) for each of the ten and one half (10.5) holidays in the calendar year for which the employee satisfied the eligibility requirements and which the employee has not taken in the form of paid leave as set forth in Section 11.1 herein. Payment of holiday pay shall include prospective pay for any holidays in December and November of said calendar year. In the event an officer becomes ineligible for a paid December or November holiday after the officer has been compensated for it, the City may deduct from the officer's paycheck an amount equivalent to the pay provided for the holiday. Memorial Day, Thanksgiving Day, Christmas Day, Independence Day and Labor Day shall be considered priority holidays and any employee who works on a priority holiday will receive one and one-half (1 ½) times their regular pay for all hours worked. When priority holidays fall on a Monday – Friday, Investigations Unit will be closed. Members of the Investigations Unit with the title of Detective will be given those days off with pay at their regular rate of pay. As a result, the members of the Investigations Unit are not eligible for priority holiday pay. 170 19 Master 01-09-23 M Section 11.4 Personal Business Leave With prior approval of the Police Chief, employees may request to use up to thirty-two (32) hours, four (4) days per calendar year to attend to personal business. Newly hired regular full-time employees will receive the following number of personal business leave days in their first calendar year: Hiring Date Personal Business Leave Days Prior to April 1 4 Between April 1 and June 30 3 Between July 1 and October 31 2 November 1 or later 1 Personal business leave may be used in increments no smaller than one-half (1/2) of a regularly scheduled shift or four (4) hours, whichever is less. In no event shall personal leave be converted to cash compensation or carried over into subsequent years. Personal business leave requests shall be made no later than twenty-four (24) hours in advance of the desired time off. The Chief may approve or deny such requests; such approval shall not be unreasonably denied. Under no circumstances will such requests be approved if, at the time of the request, the absence, in the Chief’s judgment, would cause another employee to be held over or called back to work. ARTICLE 12 VACATIONS Section 12.1 Eligibility and Allowances Every employee shall be eligible to take paid vacation time after the completion of one (1) year of continuous full-time employment with the City in a position covered by this Labor Agreement. Employees shall start to earn vacation allowance as of their date of hire. Vacation allowances shall be earned monthly, based on the following schedule: Length of completed continuous service Number of work days per calendar year After One (1) year of service Ten (10) working days Six (6) – Twelve (12) Years Fifteen (15) working days Thirteen (13) – Nineteen (19) Years Twenty (20) working days Twenty (20) Years Twenty-five (25) working days Employees shall earn vacation allowances for any month in which they receive compensation for more than one hundred twenty (120) “hours of work”. Up to six (6) days may be carried over to the following year but must be used in the next twelve (12) months. For purposes of this Section only, actual work time plus paid vacations and personal days and compensatory hours shall be considered “hours of work” no other paid or unpaid absence from duty shall be counted as “hours of work”. Vacation time may be used in increments of no less than one half (1/2) of a regularly scheduled shift or four (4) hours, whichever is less. 171 20 Master 01-09-23 M Section 12.2 Vacation Pay The rate of vacation pay shall be the employee’s regular straight time rate of pay in effect for the employee’s regular job assignment. Section 12.3 Scheduling and Accrual Bargaining unit employees shall be allowed to exercise their seniority for selection of vacation time on an annual basis. Following the seniority shift bidding procedure as set forth in Section 6.10 herein, the Employer shall conduct vacation bids between November 1st and November 30th of each year for vacation days to be used during the subsequent calendar year. Step 1 On or before November 1, the Police Chief or Chief's designee shall post a schedule of days available for vacation use during the upcoming calendar year. The days available for use shall not include the week of “Fiesta Days” and such other days as designated by the Chief of Police in his discretion, such discretion not to be unreasonably applied. The bargaining unit employees with three (3) or more years of seniority as of October 1st shall then select their vacation preferences in the order of their seniority within their assignment of patrol division, detective division, and special programs, on their respective shift, with the most senior employee on the shift having first choice, the next most senior employee on the shift having second choice, and so on. A bargaining unit employee who does not select vacation time within three (3) working days may choose vacation time anytime thereafter, subject to availability. Bargaining unit employees may make an initial first choice vacation selection of no more than two (2) calendar weeks (to be taken in amounts of no less than one (1) week), consecutively or separately, if eligible, during the initial sign up. For this section only, “Calendar week” means anywhere from one (1) day to six (6) days. After the initial vacation bidding has occurred, the Employer shall create a unit wide vacation schedule indicating all vacations scheduled in the initial bid for all shifts. Step 2 After bargaining unit members with three (3) or more years of seniority have chosen their initial vacations, bargaining unit members with less than three (3) years of seniority shall then select their vacation preferences in the order of their seniority from the unit wide vacation schedule, with the most senior of said employees having first choice, the next most senior employee having second choice, and so on. Bargaining unit members with less than three (3) years of seniority must choose their vacations from the eligible days remaining on the shift corresponding to their assigned shift starting time in accordance with their quarterly rotations; (i.e., bargaining unit members bidding for vacation time during their rotation on midnight’s must choose from the days available on the midnight shift). Step 3 After bargaining unit members with less than three (3) years of seniority have chosen their vacations, bargaining unit members with three (3) or more years of seniority may choose to select their remaining vacations from the vacation schedule for their designated shift, again in order of descending seniority. Only one (1) bargaining unit member for the patrol division, detective division, and special programs, shall be permitted to schedule vacation for any given week during the initial bid. The vacation periods selected pursuant to this procedure shall be submitted to the Police Chief or Chief's designee for approval no later than November 30 each year. Thereafter, the Police Chief or Chief's designee shall review the requests and post a vacation schedule on or before December 25. After the vacation schedule has been posted, employees can trade, schedule, or reschedule vacation days only with the approval of the Police Chief or Chief's designee. 172 21 Master 01-09-23 M Step 4 Upon the close of the initial bidding process (Step 1 through Step 3), notification will be made to bargaining unit members that the initial bidding process is over and that a six (6) day window will be established by the Chief of Police (or designee) in which officers can request the use of additional vacation time or other benefit time that has already been earned. During this six (6) day window all benefit time requests will be held for the duration of the six (6) day period and requests will then be processed in order of seniority. Time off requests made in Step 4 are subject to the approval of the Chief of Police (or designee) and must meet the 24-hour minimum notice requirement of this agreement and staffing levels established by the Chief of Police. All Other Vacation Requests: After the Initial Vacation Bid (Steps 1 through 3) and Step 4 have been completed, any remaining vacation requests shall be reviewed and approved/denied on a first-come, first-served basis. All other earned benefit time requests shall be made in accordance with the section of this agreement that covers the specified benefit time. Vacation allowances are earned on a calendar year basis with the following exceptions. First, new hires will not receive vacation time until the anniversary of their first year of employment upon which they will receive ten (10) shifts of vacation time (subject to the requirements of Section 12.1) which must be used prior to the end of the calendar year (or except as provided in Section 12.1). Beginning the following January 1 and every January 1 thereafter, such employees will receive the vacation time they accrued during the prior calendar year for use in the calendar year in which they are given. Second, on an employee’s anniversary date of employment in a year (after the officer's first) in which the officer becomes eligible to earn additional vacation time (the employee’s sixth, thirteenth and twentieth anniversaries), the employee will receive the additional time on the officer's anniversary for use during the remainder of the calendar year. On the following January 1, the employee will receive the vacation time the officer accrued during the prior calendar year based upon the new rate of vacation accrual. Vacations to be scheduled and taken during a given calendar year are vacation allowances earned during the previous calendar year or provided the employee on the officer's anniversary date of employment for use during the remainder of the calendar year. All vacation days must be taken by the end of the calendar year in which they are to be scheduled, unless the Police Chief authorizes in writing such days to be carried over to the following calendar year or to be bought back, or some combination of the two, as the Chief in the Chief's discretion determines, such discretion not to be unreasonably withheld. The Chief of Police or Chief's designee reserves the right to cancel any or all approved vacation leaves in advance or their being taken and/or to recall any employees from vacations in progress. Such cancellations and revocations shall not be unreasonable. ARTICLE 13 SICK LEAVE Section 13.1 Purpose and Allowance Sick leave with pay is provided as a benefit in recognition that employees do contract various illnesses from time-to-time and that their financial resources may be diminished in such instances if pay is discontinued, and that it may not be in the best interest or health of the employee or fellow employees to work while sick. Any employee contracting or incurring any non-service-connected sickness or disability (except where the injury or illness is incurred while the employee is performing compensated service outside of the officer's employment with the City where 173 22 Master 01-09-23 M compensation for such injury or illness is provided by the outside employer, i.e., workers’ compensation, sick leave, etc.) shall receive sick leave with pay as set forth in this Article. Section 13.2 Days Earned in Accumulation Employees shall be allowed one (1) day of sick leave for each month of service (which equals a total accumulation of twelve (12) workdays per year). Sick leave shall be earned by an employee for any month in which the employee is compensated for more than eighty (80) “hours of work.” For purposes of this Section only, accrued benefit days other than sick leave shall be considered “hours of work”; no other paid or unpaid absence from duty shall be counted as “hours of work.” Sick leave cannot be taken before it is actually earned. Section 13.3 Notification Notification of absence due to sickness shall be given to an individual designated by the Police Chief (normally the Shift Supervisor on duty) as soon as possible on the first day of such absence and every day thereafter (unless this requirement is waived by the Chief in writing), but no later than one (1) hour before the start of the employee’s work shift. Failure to properly report an illness without good cause may be considered as absence without pay and may subject the employee to discipline. Section 13.4 Medical Examination The City may, at its discretion, require an employee to submit a physician’s verification of illness, and such verification normally will be required for sick leave of three (3) consecutive duty shifts or more. The City also may require a physician’s verification that the employee is well enough to return to work. A medical certification is acceptable as provided by a physician, or physician’s assistant or nurse practitioner. Falsification of any verification of illness shall be grounds to subject the employee to disciplinary action, which may include reimbursement by the employee to the City for sick leave benefits wrongfully obtained. The City, at its option, may require an employee to submit to an examination by a physician or other medical professional chosen by the City; if the City requires an employee to submit to an examination by a physician designated by the City, the City will pay the medical expenses to the extent they are not covered by insurance (i.e., the employee shall not be responsible for such costs). Section 13.5 Sick Leave Utilization Sick leave shall be used in no less than one (1) hour increments. Sick leave may be utilized only for the purposes specified in Section 13.1, or as identified by the Illinois Employee Sick Leave Act (Public Act 99-0841) which includes illness, injury, or medical appointment of the employee’s child, spouse, sibling, parent, mother-in-law, father-in-law, grandchild, grandparent, or stepparent. There shall be no maximum accumulation or cap on sick days for use in accordance with Section 13.1. To the extent permitted by law, employees on sick leave are required to remain at home unless hospitalized, visiting their doctor, or acting pursuant to reasonable instructions for care. The General Order 22.10 Attendance Requirement date 03-05-09 will be applicable to this Section. Section 13.6 Unused Sick Leave (a)An employee who has used less than three (3) sick days during any calendar year may elect to receive a sick leave cash payment for difference between three (3) days and the number of sick leave days actually used (three (3) days maximum). 174 23 Master 01-09-23 M The number of days for which such employee elects cash compensation shall be deducted from such employee's accumulated sick leave. Employees who elect to receive such payment for any calendar year must notify the Chief thereof by January 31 of the following year, with such payment to be made by February 28 of such following year. (b) An employee (i) who has been placed on permanent disability pension, or (ii) who has at least twelve (12) years of service on the Department as a full time employee, or (iii) has at least twelve (12) years of service on the Department as a full time employee, is eligible to retire, and who dies (in which case it will be the officer's estate which collects), is eligible to retire and who elects to retire, shall be paid for unused sick leave days at the rate of fifty percent (50%) of the officer's regular rate of pay in effect on the 1st day of May immediately preceding the officer's last day of active work for the City for all accrued and unused sick leave time as of the officer's last day of active work for the City, up to a maximum of one-thousand 1000 hours provided the employee has accumulated at least four-hundred (400) hours of unused sick leave. In other words, the employee retiring with at least four hundred (400) hours of sick leave will be paid fifty percent (50%) for all sick leave hours up to one thousand (1000) for a maximum of five hundred (500) hours of pay. In no event shall any employee be entitled to the benefits set forth in Section 13.6(b) if the employee is discharged. The four hundred (400) hour minimum requirement shall not apply to employees who retire in good standing with at least twenty (20) years of service. ARTICLE 14 ADDITIONAL LEAVES OF ABSENCE Section 14.1 Unpaid Discretionary Leaves The City may grant leaves of absence, without pay or salary, to employees for job-related reasons (such as further training or study), which will enable employees to perform their usual and customary duties with greater efficiency and expertise, or other valid reasons (such as prolonged illness of the employee, the officer's spouse, or the officer's child or children or childbirth). No leave, if granted, shall be for a period exceeding three hundred sixty-five (365) consecutive calendar days. The denial of discretionary leaves shall not be subject to the dispute resolution and grievance procedure of this Labor Agreement. Section 14.2 Military Leave Military leave shall be granted in accordance with applicable law. Employees must apply for such leave as soon as they are aware of the need for such leave. Long-Term Military Duty An employee who enters active military service of the United States shall have re-employment rights as may be provided for under applicable federal law in effect at that time. Military Reserve Duty An employee who is an active member of any recognized state or federal military reserve organization and who is compelled to fulfill a military obligation by law or regulation, shall be entitled to an unpaid leave of absence for the duration of such required military duty, without loss of seniority. Section 14.3 Bereavement Leave In the event of the death of an immediate family member, an employee may be permitted to be absent from the officer's job for an appropriate number of days up to three (3) workdays off, 175 24 Master 01-09-23 M following the death, with the City’s approval and receive regular straight time pay. Although the days are not consecutive, they must be used within a reasonable time frame of the family member’s death and are subject to approval by the Chief of Police For purposes of this Section, immediate family shall include only the following persons related by blood, marriage or law to the employee: parents, spouse, children, siblings, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, sister-in-law, spouse’s child, spouse’s grandparent, grandparents and grandchildren, step-parent and step-children. In the event of the death of an extended family member, an employee may be permitted to be absent from the officer's job for one (1) workday with the City’s approval and receive regular straight time pay. For purposes of this Section, “extended family” shall include aunts, uncles, nieces, nephews, and cousins. Any absence to attend the funeral of anyone who is not a member of an employee’s immediate or extended family may be arranged with the City without pay. However, previously accrued, and unused vacation leave or personal time may be utilized in such case with the consent of the City. An employee shall provide satisfactory evidence of the death and of the employee’s attendance at the funeral is so requested by the City. At the City’s discretion, an employee may be permitted to use accrued sick leave up to a maximum of five (5) additional days in connection with bereavement leave days to extend bereavement leave. Section 14.4 Jury Leave An employee required to report for jury duty (including service on a grand jury) shall be excused from work without loss of pay for jury duty which occurs on the employee’s scheduled duty days and during the employee’s scheduled duty hours. An employee shall immediately notify the Police Chief or the Chief's designee as soon as the officer receives a notice to appear as a juror and must provide the Police Chief or Chief's designee with a copy of the jury summons prior to reporting for jury duty. In order for employees to receive compensation from the City for such jury duty, the employee must sign over to the City any compensation the officer receives for serving as a juror on days for which the Officer was scheduled to be on duty. Section 14.5 Family and Medical Leave Act (“FMLA”) Leave A leave of absence for reasons covered by the FMLA shall be granted in accordance with the City’s published Family and Medical Leave Act policy attached hereto as Appendix F. Section 14.6 Application for Leave Unless otherwise required by law, any request for a leave of absence other than bereavement leave under this Article shall be submitted in writing by the employee to the City or its designee as far in advance as practicable. The request shall state the reason for the leave of absence and the approximate length of time off the employee desires. Authorization for a leave of absence, if granted, will be furnished to the employee by the City and it shall be in writing. Section 14.7 Benefits While on Unpaid Discretionary Leave (a) Unless otherwise required by law, length of service and other benefits shall not accrue for an employee who is on an approved non-pay, discretionary leave status under this Article. Accumulated length of service shall remain in place during that leave and shall begin to accrue again when the employee returns to work on a pay status. Upon return from leave, the City shall place the employee in the officer's previous assignment, if vacant. If not vacant, an employee 176 25 Master 01-09-23 M returning from leave will be placed in the first available assignment according to the employee’s seniority, where skill and ability to perform the work without additional training is equal. (b) If, upon the expiration of a leave of absence, there is no work available for the employee, the officer shall go directly on layoff. (c) During an approved unpaid leave of absence or layoff under this Labor Agreement, an employee shall be entitled to coverage under applicable group medical and life insurance plans to the extent provided in such plan(s), provided the employee makes arrangements for the change and arrangements to pay the entire insurance premium involved, including the amount of the premium previously paid by the City. Section 14.8 Non-Employment Elsewhere A leave of absence will not be granted to enable an employee to try for or accept employment elsewhere or for self-employment without prior written approval of the Chief. Employees who engage in employment elsewhere during such leave without such prior written approval may immediately be terminated by the City. Section 14.9 Family Responsibility Leave Officers shall be granted the use of accrued benefit time to receive paid maternity or paternity leaves of absence to cover periods of pregnancy and post-partum childcare not to exceed four (4) scheduled workdays. When utilizing this benefit sick time shall apply first then all other accrued benefit time. ARTICLE 15 WAGES Section 15.1 Base Wages Employees covered by the Labor Agreement shall be compensated beginning with the first payroll period after the execution of this Labor Agreement in accordance with the wage schedule attached hereto and incorporated herein as Appendix A. Section 15.2 Experience Credits In the event a probationary officer is hired that has current law enforcement experience, that employee may be started at a higher step in the agreed upon wage scale at the discretion of the Chief of Police. The employee may be placed at a higher step in the wage scale for each year of experience of prior experience, up to a maximum of three (3) years. In no event will an employee that is hired with more than three (3) years of service be placed higher than what an officer is paid after three (3) years of service. The officer hired with prior experience must have been working as a full-time law enforcement officer and have completed the required basic training as recognized by the Illinois Law Enforcement Training and Standards Board. This provision will have no effect on the new hire with regard to seniority and related to shift bidding, vacation, etc. Section 15.3 Tuition Reimbursement The City shall continue to make available to employees the same opportunity to have their tuition reimbursed as it offers all City employees at the time of the execution of this Labor Agreement, except that tuition reimbursement shall be limited to three-thousand dollars ($3,000) per fiscal year. 177 26 Master 01-09-23 M Section 15.4 Deferred Compensation Plan (457K) The City shall continue to make available to employees the same 457K Deferred Compensation Plan provided all City employees. The City reserves the right to change, alter, amend, or eliminate the plan, as it deems appropriate. Section 15.5 Investigator Stipend In recognition of their skills and the special obligations place upon them, employees assigned as full-time investigators in the investigations unit shall be paid an annual stipend of one thousand dollars ($1,000.00), payable semi-annually on May 1 and November 1 of each year. Investigator stipends shall be prorated based upon an officer’s date of assignment. Section 15.6 Travel Training Reimbursement To compensate covered members for attending training classes outside of McHenry, Lake, or Boone Counties, excluding firearms training, covered members shall receive one (1) hour of travel time per day at the employee’s regular rate of pay not to exceed ten (10) hours in any fiscal year. ARTICLE 16 UNIFORM ALLOWANCE Section 16.1 Initial Uniform The City shall furnish initial uniforms and equipment to all probationary patrol officers at the City’s expense. Initial uniforms shall consist of items listed in Appendix B and all other uniform equipment normally required or provided by the City or subsequent changes required by the Chief of Police. Section 16.2 Uniform Allowances Employees may purchase approved uniform items with the uniform allowance, not to exceed eight hundred dollars ($800) per fiscal year. The uniform replacement allowance shall apply to civilian clothes worn by plain-clothes officers for departmental approved clothing, shoes, and related plain- clothes equipment. If the City requires a change in uniform or equipment which results in a cost of one hundred dollars ($100) or greater to the employee, the City will credit the uniform account of the employee in the amount of the required purchase. The cost of all items associated with the City’s change of duty weapon will be the responsibility of the City. Section 16.3 Safety Vest Replacement The City shall continue to replace bulletproof safety vests worn by police employees at such durations as are recommended by the manufacturer. Officers may be required to wear their body armor while on duty. Section 16.4 Return of Uniforms and Equipment Upon separation from employment by the City, employees will be responsible for the return of uniforms and equipment purchased with City funds or issued directly by the City in good condition, less normal depreciation and destruction in the course of employment. Section 16.5 Reimbursement of Uniform Cleaning Expenses The City agrees to reimburse bargaining unit members for the reasonable cost of professional cleaning of uniforms required by the City to be worn by members of the bargaining unit in the performance of their official duties. Employees may be reimbursed for cleaning expenses from 178 27 Master 01-09-23 M receipts submitted to the employer; such reimbursements shall be deducted from the uniform allowance of the employee. Employees shall submit receipts to the Chief of Police or Chief's designee, at quarterly increments, documenting the employee’s payment of uniform cleaning charges, when requesting reimbursement. Amounts paid for reimbursement of uniform cleaning expenses shall not be limited other than by Section 16.2. In no instance shall an employee be entitled to more than eight hundred dollars ($800) per fiscal year for the purchase and/or cleaning of required uniforms. ARTICLE 17 INSURANCE Section 17.1 Coverage and Cost The City shall make available to non-retired bargaining unit employees and their eligible dependents the same group health and hospitalization insurance, dental insurance, and vision insurance coverage and benefits to that in existence for other City employees prior to the signing of this Labor Agreement. The City reserves the right to change or offer alternative insurance carriers, health maintenance organizations, or benefit levels or to self-insure, so long as the new, alternative, or remaining coverages and benefit levels are substantially similar to those which they are replacing. In order to control future health and hospitalization insurance cost increases, the City may also alter employee deductibles and/or co-pay requirements provided such changes shall likewise be applicable to all City employees. Employees may continue to elect to participate in the City’s Health Care Benefits Salary Reduction plan, in which they may pay their share of insurance premiums and other out-of-pocket costs with pre-tax dollars. Section 17.2 Cost Containment The City reserves the right to institute cost containment measures relative to insurance coverage so long as the basic level of insurance benefits remains substantially the same. Such changes may include, but are not limited to, mandatory second opinions for elective surgery, pre-admission and continuing admission review, prohibition on weekend admissions except in emergency situations, and mandatory outpatient elective surgery for certain designated surgical procedures. Section 17.3 Life Insurance The current City coverage of thirty thousand dollars ($30,000) for life insurance for each employee covered by this Labor Agreement in effect at the time of the signing of this Labor Agreement shall continue for the life of this Labor Agreement, at no cost to the employee. Section 17.4 Terms of Insurance Policies to Govern The extent of coverage under the insurance policies (including HMO and self-insured plans) referred to in this Labor Agreement shall be governed by the terms and conditions set forth in said policies or plans. Any questions or disputes concerning an employee’s claim for benefits under said insurance policies or plans shall be resolved in accordance with the terms and conditions set forth in said policies or plans and shall not be subject to the grievance and arbitration procedure set forth in this Labor Agreement. The failure of any outside insurance carrier(s) or plan administrator(s) to provide any benefit for which it has contracted or is obligated shall result in no liability to the City, nor shall such failure be considered a breach by the City of any obligation undertaken under this or any other Labor Agreement. However, nothing in this Labor Agreement shall be construed to relieve any insurance carrier(s) or plan administrator(s) from any liability it may have to the City, employee, or beneficiary of any employee. 179 28 Master 01-09-23 M Section 17.5 Waiver of Insurance Any employee shall have the option to waive the right to receive medical, dental and/or vision insurance coverage under the terms of this Section. If an employee waives any such insurance coverage but thereafter chooses to reverse the officer's decision, the reinstatement of each such insurance shall be contingent upon the employee’s insurability and shall also be subject to such conditions, limitations and restrictions as the City’s insurers may prescribe as a consequence of the employee’s prior waiver and non-coverage. Section 17.6 Employee Deductible and Co-Insurance Costs The employee’s premium contributions shall not exceed the monthly premium limit as listed below for the term of this Labor Agreement: 2023 Medical Insurance Health Plan Year (05-01-2023—12-31-2023) Plan Type Single Employee + Spouse Employee + Child(ren) Family PPO Plan $123.00 $273.00 $260.00 $457.75 HSA Plan $95.00 $250.00 $243.00 $405.00 HMO Plan $27.50 $130.00 $125.00 $220.00 2024 Medical Insurance Health Plan Year (01-01-2024—12-31-2024) Plan Type Single Employee + Spouse Employee + Child(ren) Family PPO Plan $140.00 $285.00 $275.00 $475.00 HSA Plan $95,00 $260.00 $252.00 $405.00 HMO Plan $27.50 $130.00 $125.00 $220.00 2025 Medical Insurance Health Plan Year (01-01-2025—12-31-2025) Plan Type Single Employee + Spouse Employee + Child(ren) Family PPO Plan $150.00 $290.00 $282.00 $495.00 HSA Plan $100.00 $270.00 $260.00 $410.00 HMO Plan $27.50 $130.00 $125.00 $220.00 2026 Medical Insurance Health Plan Year (01-01-2026—12-31-2026) Plan Type Single Employee + Spouse Employee + Child(ren) Family PPO Plan $155.00 $295.00 $287.00 $500.00 HSA Plan $105.00 $275.00 $265.00 $415.00 HMO Plan $30.00 $135.00 $130.00 $235.00 180 29 Master 01-09-23 M 2027 Medical Insurance Health Plan Year (01-01-20-2027—04-30-2027) Plan Type Single Employee + Spouse Employee + Child(ren) Family PPO Plan $158.00 $295.00 $287.00 $500.00 HSA Plan $105.00 $275.00 $265.00 $415.00 HMO Plan $30.00 $135.00 $130.00 $235.00 Dental Insurance 05-1-2023 – 04-30-2027 Single Employee + Spouse Employee + Child(ren) Family $6.00 $30.00 $32.00 $60.00 Vision Insurance 05-01-2023 – 04-30-2027 Single Employee + Spouse Employee + Child(ren) Family $2.00 $10.00 $12.00 $25.00 Employee Deductible and Co-Pay Costs During the term of this Labor Agreement, the City agrees that any such deductible and co-pay shall be the same as those costs applicable to the general, non-contract employees, but may be less per the labor negotiations. ARTICLE 18 EMPLOYEE ALCOHOL AND DRUG TESTING Section 18.1 Statement of Policy It is the policy of the City of McHenry that the public has the absolute right to expect persons employed by the City in its Police Department will be free from the effects of drugs and alcohol. The City, as the Employer, has the right to expect its employees to report for work fit and able for duty. The purposes of this policy shall be achieved in such a manner as not to violate any established rights of the employees of the Police Department. Section 18.2 Prohibitions Except as ordered to do so in the line of duty, employees shall be prohibit from: (a) Consuming, possessing or being under the influence of alcohol at any time (during the course of the workday or anywhere on any City premises, including City buildings, properties, or City owned vehicles. (b) Possessing, using, selling, purchasing, or delivering any illegal drug at any time and at any place or abusing any prescription drug. (c) Failing to report to the employee’s supervisor any known adverse side effects of medication or prescription drugs which the employee may be taking. 181 30 Master 01-09-23 M Section 18.3 Drug and Alcohol Testing Permitted The City shall have the right to require an employee to submit immediately at alcohol or drug testing on a specified situation basis (as outlined below) or if the City has reasonable suspicion to believe that (a) an employee is being affected by the use of alcohol; or (b) has abused prescription drugs; or (c) has used illegal drugs. The foregoing shall not limit the right of the City to conduct any tests it may deem appropriate for persons seeking employment prior to their date of hire. Specified situation testing may occur in the following circumstances: (a) If an employee is involved in a motor vehicle accident or otherwise damages City or personal property while in the performance of the officer's duty. (b) If an employee is injured or injures another while in the performance of the officer's duty. (c) If an employee is to be promoted to a higher paying position or recalled from layoff; or (d) If an employee has experienced excessive absenteeism or tardiness under circumstances giving rise to a suspicion of off-duty drug or alcohol abuse. (e) Any covered member who discharges their firearm causing injury or death to a person or persons during the performance of their official duties or in the line of duty, must submit to a drug and alcohol testing as soon as reasonably possible but not later than the end of the covered member’s shift or tour of duty. Section 18.4 Order to Submit to Testing At the time an employee is directed to submit to testing authorized by this Labor Agreement, the City shall provide the employee with a written notice, setting forth the objective facts and reasonable inferences drawn from those facts which have formed the basis of the City’s decision to test. The employee shall be given a reasonable opportunity to consult with a Union representative at the time the notice is given. Refusal to submit to such test may subject the employee to discipline, but the employee’s taking of the test shall not be construed as a waiver of any objection or rights that the officer may possess. In accordance will Illinois Public Act 100- 0389 which takes effect on August 25, 2017 and amends the Illinois Police and Community Relations Improvement Act (50 ILCS 727/1-1), employees that are required to submit to testing in accordance with Section 18.3 of this Agreement shall have no guarantee of written notice. Section 18.5 Test to be Conducted In conducting the testing authorized by this Labor Agreement, the City shall: (a) Use only a clinical laboratory or hospital facility that is licensed pursuant to the Illinois Clinical Laboratory Act that has or is capable of being accredited by the Substance Abuse Management Safety & Health Administration (SAMSHA). (b) Establish a chain of custody procedure for both the sample collection and testing that will ensure the integrity of the identity of each sample and test result. Ensure that the laboratory or facility selected conforms to all SAMSHA standards and provides a designated Medical Review Officer (MRO) who is certified by the State of Illinois to review drug and/or alcohol testing results. 182 31 Master 01-09-23 M No employee covered by this Labor Agreement shall be permitted at any time to become a part of such chain of custody. (c) Collect a sufficient sample of the same bodily fluid or material from an employee to allow for initial screening, a confirmatory test and a sufficient amount to be set aside reserved for later testing if requested by the employee. (d) Collect samples in such a manner as to preserve the individual employee’s right to privacy while insuring a high degree of security for the sample and its freedom from adulteration. Any employee ordered to submit to testing shall not be witnessed by anyone while submitting a sample except in circumstances where the laboratory or facility does not have a “clean room” for submitting samples or where there is reasonable suspicion that the employee may attempt to compromise the accuracy of the testing procedure. (e) Confirm any sample that tests positive in the initial screening for drugs by testing the second portion of the same sample by gas chromatography/mass spectrometry (GC/MS) or an equivalent of better scientifically accurate and accepted method that provides quantitative data about the detected drug or metabolites. (f) Provide the employee tested with an opportunity to have the additional sample tested by a clinical laboratory or hospital facility of the employee’s own choosing, at the employee’s own expense; provided the employee notifies the City within seventy-two (72) hours of receiving the results of the test and provided further that the laboratory or clinic is accredited by SAMSHA and the testing procedure, including chain-of-custody for the transfer of such sample, meets or exceeds the standards established by SAMSHA and is confirmed by a neutral third party. (g) Require that the laboratory or hospital facility report to the City that a blood or urine sample is positive only if both the initial screening and confirmation test are positive for a particular drug. The parties agree that should any information concerning such testing, or the results thereof be obtained by the City, inconsistent with the understandings expressed herein (e.g. billings for testing that reveal the nature or number of tests administered), the City will not use such information in any manner or form adverse to the employee’s interests. (h) Require that with regard to alcohol testing, for the purpose of determining whether the employee is under the influence of alcohol, test results showing an alcohol concentration of .02 percent or more based upon the grams of alcohol per 100 millimeters of blood shall be considered positive. (i) Provide each employee tested with a copy of all information and reports received by the City in connection with the testing and the results. (j) Ensure that no employee is the subject of any adverse employment action except emergency temporary reassignment or relief from duty with pay during the tendency of any testing procedure, any such emergency reassignment or relief from duty shall be immediately discontinued in the event of a negative test result, and the employee shall be fully reinstated to unrestricted duty status. This Section shall not in any way limit the City’s right to take such action as it deems appropriate 183 32 Master 01-09-23 M if an employee is determined to have engaged in conduct prohibited by Section 18.2 of this Article or in conduct that is otherwise subject to discipline. Section 18.6 Disciplinary Action Use, sale, purchase, delivery or possession of illegal drugs at any time and at any place (on or off the job) while employed by the City (except when authorized in the line of duty); abuse of prescribed drugs, failure to report to the Chief any known adverse side effects of medication or prescription drugs which the employee may be taking; and consumption, possession or being under the influence of alcohol while on duty or on City premises (except when authorized in the line of duty), shall be cause for discipline, up to and including termination, subject to the Article 9 Grievance Procedure. In cases where, in the Chief or designees’ discretion, discipline less than discharge is determined to be appropriate, such discipline will be conditioned upon the employee: (a) agreeing to appropriate treatment as determined by the physician(s) involved. (b) discontinuing use of illegal drugs or abuse of alcohol. (c) agreeing to authorize persons involved in counseling, diagnosing, and treating the employee to disclose to, the City Administrator and/or the Police Chief the employee’s progress, cooperation, drug and alcohol use and any dangers perceived in connection with performing job duties and completion or non-completion of treatment. (d) completing the course of treatment prescribed, including an “after-care” group for a period of up to twelve (12) months. (e) agreeing to submit to unlimited random testing during hours of work during the period of “after- care”, and for a period of eighteen (18) months following the period of “after-care”. Employees who do not agree to or act in accordance with the foregoing, or who test positive a second or subsequent time for the presence of illegal drugs or alcohol during the hours of work, shall be subject to discipline, up to and including discharge. This Article shall not be construed as an obligation on the part of the City to retain an employee on active status throughout the period of rehabilitation if it is appropriately determined that the employee’s current use of alcohol or drugs prevents such individual from performing the officer's duties or whose continuance on active status would constitute a direct threat to the property and safety of others. Such employee shall be afforded the opportunity, at the officer's option, to use accumulated paid leave or take an unpaid leave of absence pending treatment. Section 18.7 Voluntary Request for Assistance The City shall take no adverse employment action against any employee who voluntarily seeks treatment, counseling or other support for an alcohol or drug related problem, other than that the City may require reassignment of the employee with pay if the officer is unfit for duty in the officer's current assignment. The foregoing is conditioned upon the employee: (a) agreeing to appropriate treatment as determined by the physician(s) involved. 184 33 Master 01-09-23 M (b) discontinuing use of illegal drugs or abuse of alcohol. (c) agreeing to authorize persons involved in counseling, diagnosing and treatment of the employee to disclose to City personnel the employee’s progress, cooperation, drug and alcohol use and any dangers perceived in connection with performing job duties and completion or non-completion of treatment. (d) completing the course of treatment prescribed, including an “after-care” group for a period of up to twelve (12) months; and (e) agreeing to submit to unlimited random testing during hours of work during the period of “after- care”, and for a period of eighteen (18) months following the period of “after-care”. Employees who do not agree to or act in accordance with the foregoing, or who test positive for the presence of illegal drugs or alcohol during the hours of work, shall be subject to discipline, up to and including discharge. This Article shall not be construed as an obligation on the part of the City to retain an employee on active status throughout the period of rehabilitation if it is appropriately determined that the employee’s current use of alcohol or drugs prevents such individual from performing the officer's duties or whose continuance on active status would constitute a direct threat to the property and safety of others. Such employee shall be afforded the opportunity, at the officer's option, to use accumulated paid leave or take an unpaid leave of absence pending treatment. Upon successful completion of the treatment, the employee shall be returned to the officer's position. This Article also shall not in any way limit the City’s rights to take such action as the City in its discretion deems appropriate if an employee engages in conduct prohibited by Section 18.2 of this Article, or in conduct that is otherwise subject to discipline and is aggravated by drug or alcohol abuse. Section 18.8 Treatment The City’s obligation to provide treatment under this Labor Agreement for alcohol and substance abuse shall be limited to services provided and paid for by the City’s insurance plan in which the employee is enrolled. ARTICLE 19 EMPLOYEE AND OTHER STATUTORY RIGHTS Section 19.1 Bill of Rights The City agrees that at the request of an employee, a Union representative may be present at an investigatory interrogation, undertaken during the course of a formal investigation, which the employee reasonably believes might result in disciplinary action. However, nothing in this Section is intended to modify or expand the rights available to police officers pursuant to the Uniform Peace Officers’ Disciplinary Act, 50 ILCS 725/1, et seq. Section 19.2 Personnel Files The City agrees to abide by the requirements of the Personnel Record Review Act, 820 ILCS 40. 185 34 Master 01-09-23 M Section 19.3 Indemnification The City agrees to abide by all statutory requirements for indemnification of police officers. Section 19.4 Discipline As a matter of policy, the City recognizes the principles of progressive and corrective discipline, where applicable. Nothing, however, shall foreclose the City from seeking discipline commensurate with the offense. The City also acknowledges that non-probationary employees may only be disciplined for just cause. Section 19.5 Notice of Discipline Upon receiving the consent of an employee who is formally disciplined, the City shall notify the Union in writing that said employee received discipline. Section 19.6 Access to Arbitration The parties agree that an alleged violation of Section 19.1, 19.2, or 19.3 above may not be taken to arbitration under the grievance procedure. ARTICLE 20 GENERAL PROVISIONS Section 20.1 Gender Unless the context in which they are used clearly requires otherwise, words used in this Labor Agreement denoting gender shall be deemed to refer to both the masculine and feminine. Section 20.2 Ratification and Amendment This Labor Agreement shall become effective when ratified by the Union and the City Council and signed by authorized representatives thereof and may be amended or modified during its term only with mutual written consent of both parties. Section 20.3 Fitness Examinations If there is any question concerning an employee’s fitness for duty, or fitness to return to duty following a layoff of leave of absence, the City may require, at its expense (to the extent not covered by insurance), that the employee have an examination by a qualified and licensed physician or other appropriate medical professional selected by the City. The City may also require any or all employees to take a complete physical exam as often as once a year. Such physical examinations shall not include employee drug or alcohol testing. Prior to requiring an employee to release the results of an examination due to a question concerning the officer's fitness for duty, as opposed to a normal examination or one scheduled due to a return from a leave of absence of layoff, the Chief shall provide the employee with written notice of the reasons for the examination. Section 20.4 Physical Fitness Requirements In order to maintain and improve efficiency in the Police Department, to best protect the public and to reduce insurance costs and risk, the City may establish reasonable physical fitness requirements for employees, which may include individualized goals and minimum fitness standards. All employees may be required to participate in any such program. Employees who fail to meet minimum fitness standards or who fail to make a good faith effort to achieve individualized goals shall be subject to progressive discipline up to and including discharge. 186 35 Master 01-09-23 M The City will meet with Illinois Fraternal Order of Police, Labor Council representatives in accordance with Article 4 to discuss reasonable physical fitness requirements prior to their implementation or alteration. Section 20.5 Secondary Employment All secondary employment shall comply with General Order 22.4 as it existed on Oct. 1, 2002. Section 20.6 No Smoking All employees are strongly encouraged to quit smoking. Any employees who do not quit smoking may be required by the City of department policy to confine their smoking to a designated area(s). Section 20.7 Special Assignment Employees The City retains its right to participate in any governmental or inter-governmental agency operation or task force having an independent law enforcement authority or basis of jurisdiction. Without otherwise limiting an employee’s legal rights, the parties agree that any contract disputes relating to an employee’s hours, wages, or terms and conditions of employment that arise as a result of a decision rendered by the Narcotics Unit or other such inter-governmental agency shall not be subject to the grievance and arbitration procedure. Any contract disputes relating to hours, wages, or terms and conditions of employment that arise as a result of a decision rendered by the City of McHenry will remain subject to the grievance and arbitration provisions of Article 9. Section 20.8 Rules and Regulations The City’s existing policies, procedures, rules, and regulations, as well as those of its Police Department, shall not be considered a part of this Labor Agreement. Such policies and procedures shall control unless in conflict with specific provisions of this Labor Agreement. The Union acknowledges the rights of the City to make, alter, interpret, and enforce reasonable and lawful rules, orders and policies as it deems appropriate, consistent with the Management Rights Article of this Labor Agreement. Other than in an emergency situation, where the City seeks to add to, modify, alter, change, delete, or otherwise amend or supplement the existing policies, procedures, rules, regulations, orders or directives of the City or the Police Department, the City shall notify the Union in writing of the proposed change(s), at least ten (10) days prior to the effective date of the modification of said non-economic terms and conditions of employment, and shall provide a reasonable opportunity to the Union, before the proposed modifications are finalized, to meet and discuss with the City the proposed modification. Any meeting that occurs pursuant to this Section shall be in the form of a labor-management conference pursuant to Article 4 of this Labor Agreement. Section 20.9 Inoculations The City shall offer, at City expense, a Hepatitis B Virus (HBV) Inoculation Series to all employees. The City shall administer or provide a verification test of successful inoculation to any employee that receives the inoculation series, and any additional inoculations. As non- experimental inoculations become available (as approved by FDA) for additional strains of hepatitis, Human Immune Deficiency Virus (HIV) related conditions or Acquired Immune Deficiency Syndrome (AIDS) antibody positive conditions, such inoculations at City expense shall be provided to employees. 187 36 Master 01-09-23 M Section 20.10 Communicable Diseases The City and the employee shall notify each other as soon as possible if the employee, in the course of the officer's duties, has come into contact with persons found to have a contagious disease. If it is determined that the employee has come into such contact, the City shall provide any medical examination and/or diagnostic test, if necessary, to protect the safety of the employee and/or members of the officer's immediate family with whom the officer resides. Costs for treatment shall be paid for by the City to the extent they are not otherwise covered by insurance. Section 20.11 Replacement of Personal Property In the event any item of personal property specified below is lost or damaged in the course of an employee’s duties while the employee is exercising due care and caution under the circumstances, the City will reimburse the employee for the repair or replacement of such item(s), provided the incident and the amount of the loss or damage is promptly reported to the Police Chief or Chief's designee. Further, the City’s responsibility under this Section shall not exceed three hundred dollars ($300) per employee, per incident, and the City, in its discretion, may pay only for the functional equivalent of the personal property damaged, where the cost of the actual damaged property, although under three hundred dollars ($300), is deemed excessive by the Chief of Police. In the event that the loss or damage is determined not to be in the course of employment or is found to be due to the employee’s negligence or as a result of ordinary wear, no reimbursement shall be made. The following items shall be subject to replacement or repair under the provisions of this Section: eyeglasses, prescription sunglasses, contact lens, hearing aids and watches. The City reserves the right, upon application by an employee, to replace other personal property items at the City’s sole discretion. The employee shall, when applicable, pursue court-ordered restitution and such restitution will be signed over to the City, up to the amount the City paid to the employee. Section 20.12 Location of Meetings All meetings for purposes of administering or negotiating this Labor Agreement shall be held in McHenry, Illinois unless mutually agreed upon otherwise. Section 20.13 No Solicitation While the City acknowledges that the Union may be conducting solicitation of City merchants, residents or citizens, the Union agrees that none of its officers, agents or members will solicit any person or entity for contributions or donations on behalf of the City of McHenry or the McHenry Police Department. The Union agrees that the City name, badge, insignia, communication systems, supplies and materials will not be used for solicitations purposes. Solicitation by bargaining unit employees may not be done on work time or in work areas. Neither the Lodge, nor the Illinois Fraternal Order of Police, Labor Council nor its agents or representatives may use the words “McHenry Police Department” of “City of McHenry” in its name. The Union further agrees that any written or oral solicitation of McHenry residents, citizens or merchants and businesses will include the words “This solicitation is not made on behalf of, nor do receipts go to the benefit of, the McHenry Police Department of the City of McHenry.” The foregoing shall not be construed as a prohibition of lawful solicitation efforts by the Lodge or Illinois Fraternal Order of Police, Labor Council directed to the general public, nor shall it limit the City’s right to make public comments concerning solicitation. The Union may continue to use its current stationary (displaying the City’s badge) until its current supply of stationary is exhausted. 188 37 Master 01-09-23 M ARTICLE 21 SAVINGS CLAUSE In the event any, Section or portion of this Labor Agreement should be held invalid and unenforceable by any board, agency or court of competent jurisdiction or by reason of any subsequently enacted legislation, such decision or legislation shall apply only to the specific Article, Section or portion thereof specifically specified in the board, agency or court decision or subsequent litigation, and the remaining parts or portions of this Labor Agreement shall remain in full force and effect. If there is any conflict between the provisions of this Labor Agreement and any legal obligations or affirmative action requirements imposed on the City by federal or state law, such legal obligations or affirmative action requirements thus imposed shall be controlling. ARTICLE 22 IMPASSE RESOLUTION Upon the expiration of this Labor Agreement, the remedies for the resolution of any bargaining impasse shall be in accordance with the Illinois Public Labor Relations Act, as amended, as it existed on January 1, 1986, with the following exception: The neutral interest arbitrator shall be selected in accordance with the selection procedure set forth in Section 9.3(a) of this Labor Agreement, with the proviso that the entire panel of arbitrators requested has experience in interest arbitration. ARTICLE 23 ENTIRE AGREEMENT This Labor Agreement constitutes the complete and entire agreement between the parties and concludes collective bargaining between the parties for its term. This Labor Agreement supersedes and cancels all prior practices and agreements, whether written or oral, unless expressly stated in this Labor Agreement. The parties acknowledge that during the negotiations which resulted in this Labor Agreement, each had the unlimited right and opportunity to make demands and proposals with respect to any subject or matter not removed by law or ordinance from the area of collective bargaining, and that the understandings and agreements arrived at by the parties after the exercise of that right and opportunity are set forth in this Labor Agreement. The City and the Union, for the duration of this Labor Agreement, each voluntarily and unqualifiedly waives the right, and each agrees that the other shall not be obligated, to bargain collectively with respect to any subject or matter, whether or not referred to or covered in this Labor Agreement, even though such subjects or matters may not have been within the knowledge or contemplation of either or both of the parties at the time they negotiated or signed this Labor Agreement. It is expressly agreed that the City may unilaterally exercise any management rights consistent with Article 3 even though the exercise of such rights may involve subjects or matters not referred to or covered in this Labor Agreement. The Union specifically waives any right it might have to impact or effects bargaining for the life of this Labor Agreement. ARTICLE 24 TERM OF AGREEMENT This Labor Agreement shall be effective upon its ratification and shall remain in full force and effect from May 1, 2023, through April 30, 2027. It shall automatically be renewed from year to year thereafter unless either party shall notify the other in writing at least sixty (60) days prior to the anniversary date that it desires to modify this Labor Agreement. In the event that such notice is given, negotiations shall begin no later than forty-five (45) days prior to the expiration date. 189 38 Master 01-09-23 M Notwithstanding any provision of this Article or agreement to the contrary, this Labor Agreement shall remain in full force and effect after the expiration date and until a new Labor Agreement is reached unless either party gives at least ten (10) days’ written notice to the other party of its desire to terminate this Labor Agreement, provided such termination date shall not be before the anniversary date set forth in the preceding paragraph. Executed this __________ day of __________________, 2023. For the City of McHenry: For the Fraternal Order of Police, Labor Council: ______________________________ _________________________________ Wayne Jett Date Marc J. Fisher Date Mayor Unit Steward _____________________________ _________________________________ Tricia Ramel Date Robert Klasek Date City Clerk Unit Steward _________________________________ Rob Beaudoin Date City Seal: Unit Steward _________________________________ Joshua t. Conway Date Unit Steward _________________________________ Rich Rewiako Date Unit Steward _________________________________ Kevin S. Krug Date FOP, Labor Council Northern Field Supervisor 190 39 Master 01-09-23 M APPENDIX A WAGE TABLE 1-May-22 1-May-23 1-May-24 1-May-25 1-May-26 Current 3.50% 3.50% 3.50% 3.50% Start $67,789.18 $70,161.80 $72,617.46 $75,159.08 $77,789.64 After 1 Year $73,056.87 $75,613.86 $78,260.35 $80,999.46 $83,834.44 After 2 Years $78,324.56 $81,065.92 $83,903.23 $86,839.84 $89,879.23 After 3 Years $83,592.26 $86,517.99 $89,546.12 $92,680.23 $95,924.04 After 4 Years $88,859.95 $91,970.05 $95,189.00 $98,520.61 $101,968.84 After 5 Years $94,127.67 $97,422.14 $100,831.91 $104,361.03 $108,013.67 After 6 Years $99,395.37 $102,874.21 $106,474.81 $110,201.42 $114,058.47 After 7 Years $104,663.05 $108,326.26 $112,117.68 $116,041.79 $120,103.26 Wage adjustments will retroactively apply to all hours worked and paid since May 1, 2023. Retroactivity will also apply to the receipt of one and one-half (1 1/2) times the regular rate of pay for hours worked on priority holidays beginning May 1, 2019. Retroactivity shall not be applicable to any other benefit enhancement resulting from this agreement including but not limited to Court and Training Time (Section 6.5), Sick Leave Utilization (Section 13.5), and Travel Training Reimbursement (Section 15.6) for this Labor Agreement only. APPENDIX B REQUIRED INITIAL UNIFORM LIST DESCRIPTION QUANTITY Pull Over Sweater with Embroidery 1 6 pocket Navy Cargo Pants 4 Short Sleeve Shirt Navy 100 Dac/Poly 3 511 All Season Jacket 1 Long Sleeve Shirt Navy 100 Dac/Poly 3 Black Turtleneck with Embroidery 2 Outside Vest Carrier 1 8” Lug Sole Elimininator Boot 1 Reversible Raincoat Black/Lime 1 Navy 5 Star Cap 1 Silver Expansion Cap Strap 1 Clear Cap Cover 1 Winter Cap 1 Tie Bendover Navy Dac/Wool 1 191 40 Master 01-09-23 M Tie Bar Silver Fil State 1 Silver High Gloss Nameplate 2 Silver Serving Since Tag 2 Baton with holder 1 Sam Browne Belt 2 ¼” BW 1 BW Belt Keepers ¾” 4 BW Cuff Case 1 Handcuffs 1 BW Double Clip Pouch 1 BW Glove Pouch 1 Velcro Trouser Belt BW 1 Stinger XT Flashlight or 511 Flashlight 1 Stinger XT BW Holder w/FL or F11 Holder 1 Radio Holder B/W 1 192 41 Master 01-09-23 M APPENDIX C GRIEVANCE FORM (use additional sheets where necessary) Date Filed: Department: Grievant's Name: Last First M.I. STEP ONE Date of Incident or Date Knew of Facts Giving Rise to Grievance: Article(s)/Sections(s) violated: Briefly state the facts: Remedy Sought: Given To: Date: Grievant's Signature FOP Representative Signature EMPLOYER'S RESPONSE Employer Representative Signature Position Person to Whom Response Given Date STEP TWO Reasons for Advancing Grievance: Given To: Date: Grievant's Signature FOP Representative Signature EMPLOYER'S RESPONSE Employer Representative Signature Position Lodge/Unit No. Year Grievance No. / / 193 42 Master 01-09-23 M Person to Whom Response Given Date STEP THREE Reasons for Advancing Grievance: Given To: Date: Grievant's Signature FOP Representative Signature EMPLOYER'S RESPONSE Employer Representative Signature Position Person to Whom Response Given Date STEP FOUR Reasons for Advancing Grievance: Given To: Date: Grievant's Signature FOP Representative Signature EMPLOYER'S RESPONSE Employer Representative Signature Position Person to Whom Response Given Date REFERRAL TO ARBITRATION by Illinois FOP Labor Council Person to Whom Referral Given Date FOP Labor Council Representative Lodge/Unit No. Year Grievance No. / / 194 43 Master 01-09-23 M APPENDIX D DUES AUTHORIZATION FORM ILLINOIS FRATERNAL ORDER OF POLICE LABOR COUNCIL 974 CLOCK TOWER DRIVE SPRINGFIELD, ILLINOIS 62704 I, _____________________________________, understand that under the U.S. Constitution I have a right not to belong to a Union. By my signature I hereby waive this right and opt to join the IL FOP Labor Council. I, _____________________________________, hereby authorize my Employer, the City of McHenry to deduct from my wages the uniform amount of monthly dues set by the Illinois Fraternal Order of Police Labor Council, for expenses connected with the cost of negotiating and maintaining the collective bargaining agreement between the parties and to remit such dues to the Illinois Fraternal Order of Police Labor Council as it may from time to time direct. In addition, I authorize my Employer to deduct from wages any back dues owed to the Illinois Fraternal Order of Police Labor Council from the date of my employment as exclusive bargaining representative to the date this dues deduction is implemented, in such manner as it so directs. Date: ____________________ Signed: ________________________________________ Address: _______________________________________ City: __________________________________________ State: ______________ Zip: ______________________ Telephone: ______________________________________ Personal Email: __________________________________ Employment Start Date: ___________________ Title: _________________________________ --------------------------------------------------------------------------------------------------------------------- Employer, please remit all dues deductions to: Illinois Fraternal Order of Police Labor Council Attn: Accounting 974 Clock Tower Drive Springfield, IL 62704 (217) 698-9433 Dues remitted to the Illinois Fraternal Order of Police Labor Council are not tax deductible as charitable contributions for federal income tax purposes; however, they may be deductible on Schedule A of 1040 as a miscellaneous deduction. Please check with your tax preparer regarding deductibility. 195 44 Master 01-09-23 M APPENDIX E GENERAL ORDER 22.10 ATTENDANCE RQUIREMENT I. PURPOSE The purpose of this order is to define provisions for employee attendance, promote positive morale and provide for the Department’s ability to serve the Community to the best of its ability. II. POLICY It is the policy of the McHenry Police Department to expect their employees to attend work and to be working in a regular and predictable manner. Failing to do so may be legitimate grounds for disciplinary action up to and including termination, with or without fault. All forms of absenteeism will be classified as either scheduled or non-scheduled, or beyond the employees control. III. DEFINITIONS Abusive Use: Taking leave in a manner for which it was not intended. Employee fault may or may not be a necessary element of cause in proving this offense. Example: Using sick leave in direct proportion to the amount of time earned, or using it as soon as it is earned, or using it in a predictable pattern, is substantial evidence of abusive use. Absent Without Leave: Absence without appropriate notice for three (3) consecutive workdays is considered to be a voluntary resignation, unless the circumstances are beyond the employees control. Excessive Absenteeism: That level of non-scheduled absenteeism that exceeds the calculated work unit average by more than 20 percent of that average (see following example). This is a no-fault standard, which means that cause for taking remedial action is not conditioned on management proving the employee was at fault for the absenteeism problem. Example: The work unit’s average amount of non-scheduled absenteeism is determined to be 16 hrs. for a three month reporting period. Therefore, 16 hrs. + (16 hrs. x 20%) = 19.2 hrs. Absenteeism greater than 19.2 hrs. would be considered to be excessive for that reporting period. Fraudulent Use: Misrepresenting the need for leave or claiming illness or injury under false pretense is fraud. Fraudulent use of leave privileges is theft of time and services. Fraud in any form is a dismissible offense. Employee fault is a necessary element of proof for cause to be established. Scheduled Absenteeism: Absenteeism that is prearranged with an immediate supervisor and/or manager. Examples: Military leave, Family Medical Leave, vacation, arranged use of sick leave, disability leave, jury duty. Non-scheduled absenteeism: Absenteeism that doesn’t fit the definition of scheduled absenteeism. Examples: Calling in sick, leaving work with or without permission, unavailability or failure to report for emergency call out or overtime, without reasonable cause or tardiness. Work Unit: A city department in which employees are involved in a common function. 196 45 Master 01-09-23 M IV.PROCEDURE A.Notification Requirements 1.Employees are required to notify their supervisor, or designated person, if they are going to be tardy or cannot report for work at the designated time or place. 2.Employees are expected to explain or verify all absences. 3.Employees must report unscheduled absences personally to a supervisor with as much advance notice as possible, but no later than one (1) hour before the start of the employee’s work shift. Employees cannot rely on another person to make this report. An exception would be where an emergency has occurred and the employee cannot personally report the absence. In such case, the employee is expected to make a good faith effort, to report as soon as possible. To the extent permitted by law, employees that are on non-scheduled sick leave shall remain at their residence, unless hospitalized, visiting the doctor, or acting pursuant to reasonable instructions for care. 4.In the event an employee becomes ill while on duty or at work, he/she must notify a supervisor immediately, and unless it is an emergency, he/she shall not leave an assignment until properly relieved. 5.Employees are expected to schedule elective absenteeism in advance in order that schedule and work priorities might be adjusted accordingly. Failure to do so may result in denial of leave or pay for the period. B.Criteria for Taking Corrective Actions 1.Regular and predictable attendance is considered to be the primary function of every employee working for the City of McHenry Police Department. Employees who cannot, or will not, fulfill their responsibilities may create cause for Management to take one or more of the following actions: a. Reassignment. b.Fitness for duty testing c.Disciplinary action d.Termination 2.Should an employee have an attendance, tardiness or absenteeism problem, Management will make a case-by case analysis to determine appropriate corrective action. Factors taken into consideration may include, but are not limited to: a.The nature and reasons for the absenteeism problem. b.The employee’s work, productivity and other employment history. c.A predictable pattern of absenteeism exists in the employee’s work record. d.The staffing needs of the Department. e.The economic costs to the Department. f.The employee’s demonstrated ability and willingness to improve and to correct the problem. g.Supervisors have warned an employee of a problem and applied sanctions fairly and consistently. h.The length of time during which the employee had a poor attendance record. i.An employee failed to give proper notice of absence. (No later than 1-hour) j.Reasons for the employee’s absences and whether absences were intermittent or extended. k.Quarterly attendance records of other similarly situated employees. l.Discipline was consistent with the discipline given other employees in similar situations with similar work records. 3.Based on substantial evidence of misuse or abuse, the Department maintains the right to investigate an absence, including but not limited to requesting a doctor’s note or contacting an employee at home during any employee’s absence. 197 46 Master 01-09-23 M C. Incentives As part of the City of McHenry Police Department’s attendance and absenteeism control plan, incentives exist to acknowledge and reward those who maintain good attendance records. Employees may contact their supervisors about these incentives. See also, City of McHenry, Personnel Policies and Procedures, Section 26.5. For purposes here, employees who maintain good attendance records are assured that any other employee with an absenteeism problem may be barred from such things as transfer positions, merit, promotion, or advanced training until they correct their problems. 198 47 Master 01-09-23 M APPENDIX F FAMILY MEDICAL LEAVE POLICY SECTION 28 - FAMILY AND MEDICAL LEAVE ACT POLICY AND PROCEDURES 28.1 Provisions: In accordance with the Family and Medical Leave Act (FMLA),and subject to the conditions stated below, the City will grant to eligible employees up to twelve (12) weeks of job-protected unpaid family and medical leave, per twelve (12) month period, for any one or more of the following reasons: A.The birth of an employee's child, to care for such child or the placement of a child with the employee for adoption or foster care. (Leave for this reason must be taken within the twelve-month period following the child's birth or placement with the employee. If both spouses work for the City, each are permitted to take only a combined total of twelve (12) weeks leave during any twelve (12) month period.) B.To care for the employee's immediate family member, if the immediate family member has a serious health condition; or C.The employee's own serious health condition that makes the employee unable to perform the essential functions of his or her position. 28.2 Definitions: "Twelve-month period" means a rolling twelve (12) month period measured backward from the date leave is taken and continuous with each additional leave day taken. "Spouse" means married domestic partner. "Child" means a child under 18 years of age, or 18 years of age and older, who is incapable of self-care because of a mental or physical disability as determined by the Social Security Act and Americans with Disabilities Act (ADA) regulations. An employee's child is one for whom the employee has actual day-to-day responsibility for care and includes a biological, adopted, foster, or stepchild. "Parent" means the biological parent or an individual who stands or stood in loco parentis (in the place of a parent) to the employee when the employee was a child. It excludes "parents-in-law." "Immediate Family" means the employee's spouse, child, or parent. "Serious Health Condition" means an illness, injury, impairment or physical or mental condition that involves: A.Inpatient care; or B.Any period of incapacity requiring absence from work for more than three calendar days, that also involves continuing treatment by (or being under 199 48 Master 01-09-23 M the supervision of) a health care provider; or C. Continuing treatment by (or under the supervision of) a health care provider for a chronic or long-term health condition that is incurable or which, if left untreated, would likely result in a period of incapacity of more than three calendar days: or D. Prenatal care from a health care provider. "Incapable of self-care" means that the individual requires active assistance or supervision to provide daily self-care in several of the activities of daily living, such as caring appropriately for one's grooming or hygiene, bathing, dressing, eating, cooking, cleaning, shopping, taking public transportation, paying bills, maintaining a residence, using telephones, and the like. "Health Care Provider" - means a Doctor of Medicine or osteopathy, or any other person determined by the Federal Government to be capable of providing health care services including podiatrists, dentists, clinical psychologists, optometrists, chiropractors, nurse-practitioners, nurse-midwives authorized to practice by state law, and Christian Science practitioners. "Medical necessity" means there must be a medical need for the leave, as distinguished from voluntary treatments or procedures. 28.3 Eligible Employee: A. All Employees To be eligible for FMLA, an employee must: 1. Have worked for the City at least 10 months whether consecutively or not, (meaning the employee was maintained on the payroll); and 2. Have worked at least 1250 hours during the year preceding the start of the leave. Hours worked are determined by applying the principles of the Fair Labor Standards Act (FLSA). B. Exempt Employees FLSA exempt employees who have worked for the City at least 12 months are presumed to have met the minimum service required for eligibility. 28.4 Request for Leave: A. No Need to Assert FMLA Rights 200 49 Master 01-09-23 M Employees need not expressly assert their rights under the FMLA, or even mention the FMLA when applying for leave. It is enough to state that leave is needed for one or more of the covered reasons, listed under the heading "Family and Medical Leave Provisions" above. B.Leave for Medical Condition The City may have to inquire further to determine whether the leave requested is for a serious health condition which must be supported by a Medical Certification from the health care provider. C.Planning Treatment Upon getting notice for a leave, the City may, for business reasons, require the employee to try to reschedule the treatment, so long as the treating health care provider approves the modification of the treatment schedule. 28.5 Notice Requirement: A.Foreseeable Leave. 1. Unpaid leave: An employee must give 30 days' notice if the leave is foreseeable and unpaid. The request for leave must be accompanied by the "Employee Leave Request Form" furnished by the City Administrator or his designee. If the employee fails to give 30 days' notice without having a reasonable excuse for the delay, the leave will be denied until 30 days after the employee provides the notice. 2.Paid leave: The notice period for a foreseeable paid leave is the same which the employee is required to give to use vacation, sick leave or whatever applicable paid benefit time the employee requests and is determined either by the City Personnel Policies and Procedures, or a departmental or City-wide procedure. The substitution of paid leave for the otherwise unpaid leave provided by the FMLA is described below. B.Unforeseeable Leave 1. Unpaid leave: In unexpected or unforeseeable situations, an employee should provide as much notice as is practicable under the circumstances. It is expected that the employee would give notice within one or two business days of learning of the need for the leave, except in extraordinary circumstances. The notice shall be followed by the completed "Employee Leave Request Form." In case of a medical emergency involving either the employee's own or the immediate family member's serious health condition, the City's otherwise 201 50 Master 01-09-23 M required advance notice is unenforceable when FMLA leave is involved. 2. Paid leave: The provisions described under Section VII E1b above apply. 28.6 Medical Certification: A. Timeframe to Submit Form: For leaves (unpaid) taken because of the employee's or a covered family member's serious health condition, the employee must submit a completed "Medical Certification" form available from the City Administrator or his designee within 15 days after the City requests completion of the form, or as soon as reasonably possible. B. Subsequent Medical Opinion/Reports: The City may require a second or third opinion, at the City's expense, and periodic reports on the employee's status and intent to return to work. The employee must furnish a fitness for duty report to return from a leave taken because of the employee's own serious health condition. 28.7 Intermittent or Reduced Leave: A. Serious Health Condition: If it is medically necessary, leave may be taken intermittently (a few days/hours at a time), or on a reduced leave schedule to care for an immediate family member with a serious health condition, or because of the employee's own serious health condition. 1. Medical Necessity: The treatment regimen and other information given on the "Medical Certification" form is enough to certify the medical necessity of intermittent or reduced leave. However, the employee must schedule such leave so as not to disrupt the City's operations. Upon request, the employee shall provide the City with the reasons why the intermittent/reduced leave schedule is necessary and furnish a schedule of the treatment. The City and the employee will work out a mutually agreeable schedule, subject to the approval of the health care provider. 2. Temporary Transfer: The employee may be required to transfer temporarily to a position with equivalent pay and benefits that better accommodates recurring periods of leave when the leave is planned for scheduled medical treatment. B. Department's Consent: A leave taken intermittently or on a reduced leave schedule for the birth of the employee's child, or the child's placement with the employee for adoption or foster care, requires the department's consent. C. Part-time/Variable Hours Employees: For part-time employees and those working variable hours, the FMLA leave entitlement is calculated on a pro-rata basis whereby the 12 weeks worked immediately prior to the start of the leave are used to calculate the employee's normal work week. 202 51 Master 01-09-23 M D.Exempt Employees: Exempt employees' salaries will be reduced by the hours taken as intermittent or reduced leave during the work week, without affecting their exempt status. 28.8 Substitution of Paid Leave: A.Required Substitution: Employees are required to substitute all accrued paid benefit time for any part of an FMLA leave taken for any reason except for the last five (or fewer) vacation days left during the remaining employee year, which they may retain for future use. B.Combination of Paid/Unpaid Leave: When an employee has used accrued paid benefit time for a portion of FMLA leave, the employee may request an additional period of unpaid leave for a total combined leave of 12 weeks. C.Right of Substitution: An employee has the right to substitute all of his/her accrued paid benefit time, so long as the City Personnel Policies and Procedures permit the use of paid benefit time for the type of FMLA leave requested. 28.9 Effect on Benefits: A.Group Insurance: The employee's group health insurance and life insurance plan continues under the same conditions as coverage would have been provided if the employee had continuously been employed during the leave period. B.Insurance Contributions: Employees' contributions to premiums continue at the same level as if they were actively employed. If there is a change in the employee's share of premium costs, they are notified of the change and expected to pay the premium they would have paid had they not been on leave. 1.Paid leave: Employees who are on paid leave will have their premium payments withheld through payroll deduction. 2. Unpaid leave: Employees who are on unpaid leave will be advised in writing at the beginning of the leave period of the amount, method, and due date of their premium payments. 3. Late payment: If an employee's premium payment is more than thirty (30) days late, the City may terminate the health coverage. However, the coverage will be restored immediately upon the employee's return from leave. 4. Reimbursement: If the City pays the employee's share of the premium which the employee missed during the leave, the City may require reimbursement from the employee upon return from leave. The employee 203 52 Master 01-09-23 M will be required to sign a written statement at the beginning of the leave authorizing payroll deductions for delinquent payments. 5. Employee does not return from leave: If the employee fails to return from leave for reasons other than the continuation of the employee's serious health condition, or the serious health condition of a covered family member, or circumstances beyond the employee's control, or the employee returns to work for less than 30 days, the City may seek reimbursement for the employer's share of the premiums paid on behalf of the employee during the period of the leave. C.Other Benefits: An employee is not entitled to seniority or benefit accrual during periods of unpaid leave, unless otherwise stated in the City Personnel Policies and Procedures or law. However, the employee will not lose any benefit accrued prior to the leave. 28.10 Job Protection: A.Same or Equivalent Position: If employees return from leave by the end of twelve (12) weeks, or before, they are reinstated to the former position or an equivalent one, with equivalent pay, benefits, status, authority, and other conditions of employment as they held before going on leave. B.Restoration Rights: The restoration rights of an employee returning from FMLA leave are the same as they would have been had the employee continued to work. Therefore, had the employee's position been eliminated, or the employee been terminated while actively at work, there is no right to be reinstated upon return from leave. C.Late Return: If the employee fails to return by the end of twelve (12) weeks, reinstatement to the same or similar position occurs only if it is available. Otherwise, the employee's employment may be terminated. D.Key Employee: An exception to reinstatement may also be made in the case of a "key employee," even if the "key employee" returns timely from leave. A "key employee" is among the 10% highest paid City employees. "Key employees" will be notified of their status in writing when they request FMLA leave and informed as to whether there is a possibility that reinstatement will be denied after leave. Restoration may be denied if it causes substantial and grievous economic injury as defined by FMLA regulations. 204 53 Master 01-09-23 M APPENDIX G GENERAL ORDER 22.4 SECONDARY EMPLOYMENT I.PURPOSE The McHenry Police Department recognizes the desire by employees to maintain outside interests and seek part-time employment opportunities separate from their full-time employment with the department. The purpose of this directive is to ensure that although employees may elect to participate in secondary or extra duty employment opportunities, it is important that they are fit for duty when reporting for their tour of duty at the department. This policy covers both sworn and non-sworn personnel. II.POLICY It is in the Department’s interest to ensure that employees do not participate in secondary employment that would constitute a conflict of interest, infringe on the employee’s ability to do his job or would tend to bring discredit to the Department. Employees engaging in Secondary Employment must reasonably be available to report for duty on short notice when ordered in to work. III.DEFINITIONS Employment: The provision of a service, whether or not in exchange for a fee or other service including self-employment. This includes any employment in which another may financially benefit from the employee’s work. Employment does not include volunteer charity work. Secondary Employment: Any outside employment, which is off duty, wherein the use of law enforcement power is not anticipated. Extra-Duty Employment: Any secondary employment that is conditioned on the actual or potential use of law enforcement powers by the off-duty employee. Employee: All full-time police personnel whether sworn or civilian who are employed by the City of McHenry. IV.PROCEDURES (Calea 22.3.4 a, c, d) A.General Provisions of Secondary and Extra-Duty Employment 1.All off-duty or Secondary and Extra Duty Employment will be approved in accordance with the City of McHenry Personnel Policy Manual, this Policy and the Police Officers Collective Bargaining Agreement. 2.Prior to engaging in Secondary or Extra Duty Employment employees will submit through the chain of command, a “Secondary Employment-Request for Approval Form” (Sample Attached). 3.Upon review this form shall be returned with approval or denial of request within ten (10) days after submission. 4.All approved requests are subject to periodic review and reconsideration for approval by the Chief of Police. Employees shall communicate in writing any changes in the conditions of Secondary or Extra-Duty Employment that were previously approved by the department. 5.The Chief of Police or his designee will be the point of coordination and administration within the agency to ensure compliance with this policy. 6.The Chief of Police or his designee will monitor secondary and extra duty employment of agency personnel. The Chief of Police may revoke the approval of personnel to work certain secondary employment if it appears that the CITY OF McHENRY POLICE DEPARTMENT 333 S. Green Street, McHenry, Illinois 60050 Effective Date October 21, 2002 GENERAL ORDER General Order Number 22.4 Subject Secondary/Extra-Duty Employment Reference McHenry Personnel Policies & Procedures, Section 15, 15.1 J. City of McHenry Collective Bargaining, Article XIX, Section 19.5 Rescinds/Replaces: General Order 22.3 Secondary Employment Last Reviewed/Revised: January 25, 2005 CALEA Standard/s 22.3.3 Off-Duty Employment 22.3.4 Extra-Duty Employment Distribution: Master File Copy All Department Personnel Chapter 3 Personnel Structure Tab 4 No. Pages 3. 205 54 Master 01-09-23 M employment violates any provisions of the law, of this policy, of the City of McHenry’s Personnel Manual or of other provisions of this manual. 7. Court appearances required as a result of Secondary Employment or Extra-Duty Employment is the responsibility of the employee and shall not be attended during on-duty hours. 8.Officers engaged in Off Duty, Secondary Employment or Extra-Duty who use their law enforcement powers are required to notify the department in writing of the circumstances surrounding their use of these powers within 24 hours of the incident. 9.Department employees will not perform duties that are in conflict with Departmental Directives, permit or condone activity that is a violation of Federal, State or Local Statutes or give the impression that the Officer was condoning illegal or immoral activity. 10.Probationary employees, who have not entered the solo step of their probationary period, shall not be eligible to engage in secondary employment. B.Specific Provisions Secondary Employment (Calea 22.3.3) 1.Secondary employment shall not conflict with regularly scheduled duty hours. 2.McHenry Police Officers working any authorized secondary employment will be allowed to work up to a maximum of thirty (30) hours per week or a total of 70 hours in combination with regular duty in a single week. The week is considered as covering the period from 0001 hours Sunday morning to 2400 hours the following Saturday night. There are no restrictions placed on regular days off, holidays or vacation days. 3.No employee shall solicit any person, business or other entity for secondary employment while on duty, or while acting as a McHenry Police Department employee. 4.Employees will not wear any garments that identify them as McHenry Police Officers while performing Secondary Employment. 5.Employees will not access, disseminate information from, or perform inquiries of any law enforcement data system in the performance of any secondary employment. 6.Employees will not identify themselves as a McHenry Police Officer unless required in the process of placing an individual under arrest. 7.Employees shall not utilize City of McHenry uniforms, weapons or any other equipment in the pursuit of Secondary Employment. C.Specific Provisions Extra-Duty Employment (Calea 22.3.4, a., b., c., d., e.) 1.Officers will not wear garments that identify them as McHenry Police Officers while performing Extra-Duty Employment without expressed written permission from the Chief of Police. 2.All City and Department policies, procedures, rules and regulations apply to the behavior and activities of officers during extra-duty employment. 3.Officers will not utilize City of McHenry uniforms, weapons or equipment in the pursuit of Extra-Duty Employment unless authorized by the Chief of Police or his designee. a.Exceptions to this provision may be made for a Department authorized detail of McHenry School District 15 or 156 or another governmental entity. 4.Officers who are engaged in Extra-Duty Employment within the corporate limits of the City of McHenry or authorized region shall notify the on-duty Shift Commander and Communications prior to reporting for duty. 5.Communications equipment shall be utilized to keep the officer in continuous contact with the Communications Center while working within McHenry County. 6.If time allows, it is strongly recommended that an officer engaged in extra-duty employment contact the department or law enforcement agency with jurisdiction over the area where they are employed prior to placing an individual under arrest. If time does not permit, said notification will be made as soon as possible after the arrested individual is secured. 7.McHenry Police Officers working any authorized secondary employment will be allowed to work up to a maximum of thirty (30) hours per week or a total of 70 hours in combination with regular duty in a single week. The week is considered as covering the period from 0001 hours Sunday morning to 2400 hours the following Saturday night. There are no restrictions placed on regular days off, holidays or vacation days. 8.Sworn Employees may engage in employment as a “Peace Officer” as defined in the Criminal Code of 1961, 720 ILCS 5/2-13 for a governmental entity other than the City of McHenry under the terms of this order. Officers who elect to engage in such employment shall not utilize City of McHenry Uniforms, weapons or equipment. 9.Court appearances required as a result of Extra-Duty Employment is the responsibility of the employee and shall not be attended during on-duty hours. Established by the Order of: Thomas J. O’Meara gw Chief Thomas J. O’Meara City Council Review October 7, 2002 Effective Date October 21, 2002 Chapter 3 Personnel Structure Tab 4 206 55 Master 01-09-23 M Sample of Off-Duty Employment-REQUEST FOR APPROVAL ATTACHMENT A 22.3.3 City of McHenry Police Department Off-Duty Employment – Request for Approval To: Chief of Police From: ________________________________ Date of Request: __________________ Prospective Secondary Employer/Company Name: ________________________________________________________________________ Address: ___________________________________ City: _____________ State: _____ Prospective Immediate Supervisor: ______________________ Telephone: ___________ Anticipated Starting Date: ____________Anticipated total work hours per week: ______ (Maximum recommended for sworn officers per regulation is 20 hours per week.) Description of work to be performed: _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________ 1. I have reviewed General Order 22.3.3, Secondary Employment and Extra Duty Employment and agree to conform to the provisions of this order. 2.I am aware that if my off-duty employment is situated outside the corporate limits of the City of McHenry, I will not represent myself as a McHenry police officer during the performance of my duties. In addition, I accept the condition that I am not to use city equipment nor utilize the facilities of our Records Section in connection with my prospective off-duty employment. ______________________________ Date: _________________ Signature of Employee Do not write below this line. To: ___________________________ From: ____________________________ Date: _________________ Request is: Approved Denied Comment: _______________________________________________________________ _______________________________________________________________________ This request must be received in the Chief’s office prior to starting date. Original Copy to Personnel File, one copy to Chief’s office file and one copy returned to submitting employee. MPD 22.3 2002 207 56 Master 01-09-23 M APPENDIX H SENIORITY LIST MCHENRY POLICE DEPT PATROL OFFICER -- SENIORITY LIST 1. Officer John R. Adams #1062 06/14/1999 2. Officer Robert J. Roske #1067 10/01/1999 3. Officer Jill A. Foley #1066 10/01/1999 4.Officer Marc J. Fisher #1074 01/05/2001 5. Officer Lawrence L. Popp #1027 07/02/2001 6.Officer Richard A. Rewiako #1031 07/02/2001 7. Officer Jason C. Ducak #1075 01/04/2002 8.Officer Michael E. Spohn #1076 01/04/2002 9.Officer Omar Morales #1077 04/12/2002 10. Officer Ryan W. Pardue #1078 04/12/2002 11. Officer Adriana Birk #1086 08/16/2004 12. Officer James A. Harris #1087 08/16/2004 13. Officer Paul R. Prather #1089 04/24/2006 14. Officer Matthew E. Schmitt #1097 12/12/2007 15. Officer Robert R. Beaudoin #1102 10/20/2009 16. Officer Robert J. Klasek #1103 02/08/2010 17. Officer Matthew J. Voelker #1104 09/07/2010 18. Officer Christina K. Noyes #1105 01/05/2011 19. Officer Joshua T. Conway #1111 06/30/2014 20. Officer Samuel M. Shafer #1112 09/22/2014 21. Officer Ryan M. Ehardt #1114 09/21/2015 22. Officer Katelyn M. Lorenz #1118 01/25/2017 23. Officer Roger J. Hendrickson #1120 12/04/2017 24.Officer Peter M. Mader #1121 05/14/2018 25.Officer Megan D. Carey #1123 09/12/2018 26. Officer Diana Hernandez #1125 06/17/2019 27. Officer Susan A. Ellis #1126 09/23/2019 28. Officer Ashley N. O’Herron #1127 12/03/2019 29.Officer Henri A. Krueger #1128 12/03/2019 30. Officer Katherine A. Zajac #1130 01/18/2021 31.Officer Alberto Martinez #1131 03/15/2021 32. Officer Daniel S. Lincicum #1132 03/15/2021 33.Officer Matthew D. Szoke #1133 09/10/2021 34. Officer Zachary R. Diebold #1134 12/30/2021 35.Officer Grahm M. McClure #1135 04/18/2022 36.Officer William Campos #1136 04/18/2022 01-09-23 208 City of McHenry Council Meeting Minutes 12.19.22 1 AGENDA REGULAR CITY COUNCIL MEETING Monday, December 19, 2022, 7:00 p.m. City Council Chambers, 333 S Green St, McHenry, IL 60050 Roll Call: Mayor Jett called the roll call. Members present Alderman Santi, Alderman Glab, Alderman McClatchey, Alderman Harding, Alderman Strach-absent, Alderman Devine, Alderwoman Miller, and Mayor Jett. Others present: Attorney McArdle, Administrator Morefield, Director of Public Works Strange, Director of Community Development Polerecky, Finance Director Lynch, Director of Parks and Recreation Hobson-absent, Director of Economic Development Martin, Chief of Police Birk , City Planner Sheriff-absent, Deputy Clerk Johnson, and City Clerk Ramel. Pledge of Allegiance: Mayor Jett led the pledge. Public Comments: None Public Hearing. Public Hearing for the 2022 Property Tax Levy in the amount of $3,072,868 Mayor Jett Opened the Public Hearing A.Motion to adopt the 2022 Property Tax Levy Ordinance in an amount not to exceed $3,072,868.00. (Finance Director Lynch) A motion was made by Alder man Santi and seconded by Alderman Glab to adopt the Property Tax Levy: Roll Call: Vote:6-ayes: Alderman Santi, Alderman Glab, Alderman McClatchey, Alderman Harding, Alderman Strach-absent, Alderman Devine, Alderwoman Miller. 0-nays-, 0-abstained. Motion carried. A motion was made by Alderman Glab and seconded by Alderwoman Miller to close the Public Hearing Roll Call: Vote: 6-ayes: Alderman Santi, Alderman Glab, Al derman McClatchey, Alderman Harding, Alderman Strach -absent, Alderman Devine, Alderwoman Miller. 0-nays-, 0-abstained. Motion carried. No public comment Public Comments: Gerri Condon, the resident of McHenry, spoke regarding her view at the last meeting on the funeral/liquor license and her feelings against it. Also wanted to bring up the term limits that she feels should be across the board. 209 City of McHenry Council Meeting Minutes 12.19.22 2 Consent Agenda: Motion to Approve the following Consent Agenda Items as presented: A.Motion to approve Ordinances providing for the abatement of Real Estate Taxes for Various Bond Issues totaling $1,206,461.26. (Finance Director Lynch) B.Motion to appoint Dan Gleason to the Planning & Zoning Commission with a term expiration date of April 30, 2023. (Community Development Director Polerecky) C.December 5, 2022, City Council Meeting Minutes; D.Issuance of Checks in the amount of $192,236.39; E.As Needed Checks in the amount of $542,011.19 A motion was made by Alderman Santi and seconded by Alderman McClatchey to approve Consent Agenda Items as presented: Roll Call: Vote:6-ayes: Alderman Santi, Alderman Glab, Alderman McClatchey, Alderman Harding, Alderman Strach-absent, Alderman Devine, Alderwoman Miller. 0 -nays-, 0-abstained. Motion carried. No public comment. Individual Action Item Agenda: A.Budget Amendment and Façade Grant – 1406 N. Riverside Drive/After the Fox Motion to approve an Ordinance amending the FY2022/23 Budget in the amount of $10,000 and approval of a Façade Grant in the amount of $10,000 for the property located at 1406 N. Riverside Drive /After the Fox Restaurant. (Economic Development Director Martin) Alderman Glab cannot support the fact that we keep changing for this façade grant. Alderman Santi looking forward to the partitioner doing this work and looking forward to seeing the improvements. Alderman McClatchey commented that it will look nice. No public comment. A motion was made by Alderman McClatchey and seconded by Alderman Harding to approve Individual Agenda Items as presented: Roll Call: Vote: 6-ayes: Alderman Santi, Alderman Glab, Alderman McClatchey, Alderman Harding, Alderman Strach-absent, Alderman Devine, Alderwoman Miller. 0-nays, 0-abstained. Motion carried. B.Budget Amendment and Bid Waiver for the Purchase of Police Vehicles Motion to approve an Ordinance amending the FY2022/23 Budget in the amount of $174,908.96; waive the competitive bidding process to purchase in-stock vehicles 210 City of McHenry Council Meeting Minutes 12.19.22 3 locally; and, authorization to purchase four (4) Chevrolet vehicles from Castle Auto Group in McHenry for a total amount not to exceed $174,908.96. (Police Chief Birk) Chief Birk stated that there has been a challenge over the past few years to purchase vehicles with the shortage. He is looking to purchase now what they would normally purchase in May so that they do not get too far behind in replacing the vehicles. Advice to purchase outright is being followed by our financial department here as well. Alderwoman Miller stated that she likes the different colors. Alderman Glab asked where the funding is coming from. It is coming from the Capital Asset Maintenance & Replacement FuMnd, per Finance Director, Lynch. No public comment. *Clerks Note: Per Chief Birk the actual amount was a total of $177,514.96 as noted during the meeting. A motion was made by Alderwoman Miller and seconded by Alderman Harding to approve Individual Agenda Items as presented: Roll Call: Vote: 6-ayes: Alderman Santi, Alderman Glab, Alderman McClatchey, Alderman Harding, Alderman Strach-absent, Alderman Devine, Alderwoman Miller. 0-nays, 0-abstained. Motion carried. C.Revolving Loan Fund Request – 1786 N. Richmond Road/Woof and Run LLC Motion to approve a Revolving Loan Fund request to Woof and Run LLC, located at 1786 N. Richmond Road, in the amount of $5,000.00. (Economic Development Director Martin) Alderman Santi wanted to wish the petitioner good luck with the new business, the first two years are key and the sign can help them promote. The petitioner did speak regarding the indoor dog park and talked about the uniqueness of the dog park and that business is ramping up for the winter. No public comment A motion was made by Alderman McClatchey and seconded by Alderwoman Miller to approve Individual Agenda Items as presented: Roll Call: Vote: 6-ayes: Alderman Santi, Alderman Glab, Alderman McClatchey, Alderman Harding, Alderman Strach-absent, Alderman Devine, Alderwoman Miller. 0-nays, 0-abstained. Motion carried. Discussion/Presentation Items: A.Presentation: Proposed FY2023 through FY2032 Water and Sewer Fund Community Investment Plan (CIP). (Public Works Director Strange) Director Strange went through the proposal with The Council and also introduced staff that works within Public Works that were also present at the meeting. Director Strange explained 211 City of McHenry Council Meeting Minutes 12.19.22 4 to The Council several informational slides such as the 10 -year Cash Flow Projections along with future projects and the history of water and sewer. The presentation and discussion went on for some time. Staff Reports: Director Polerecky stated that Lennar (developer) decided not to move forward with their proposed residential development project near Draper Road . Mayor’s Report: None City Council Comments: Alderwoman Miller offered a thank you for the luncheon on Friday. Alderman Glab talked about the water main break in Oakwood and that he had checked it out stating it was a rather large mess and noted that within 30 minutes a large crew was out there overnight working on it. The next morning it was amazing how clean everything was. Alderman McClatchey thanked Chief Birk for the tour of the police department today and told everyone to have a Merry Christmas & Happy New Year. Executive Session: 5 ILCS 120/2(c)(1), the appointment, employment, compensation, discipline, performance, or dismissal of specific employees of the public body. A motion was made by Alder woman Miller and seconded by Alderman McClatchey to adjourn to Executive Session at 8:15. Mayor Jett reconvened the meeting from Executive Session at 8:35 p.m. A motion was made by Alderman Glab and seconded by Alderman Santi to return to the open session. Roll Call: Vote: 6-ayes: Alderman Santi, Alderman Glab, Alderman McClatchey, Alderman Harding, Alderman Strach-absent, Alderman Devine, Alderwoman Miller. 0 -nays, 0-abstained. Motion carried. Adjourn: A motion was made by Alderwoman Miller and seconded by Alderman Santi to adjourn the meeting at 8:40. Roll Call: Vote: 6-ayes: Alderman Santi, Alderman Glab, Alderman McClatchey, Alderman Harding, Alderman Strach -absent, Alderman Devine, Alderwoman Miller. 0-nay-, 0-abstained. Motion carried. 212 City of McHenry Council Meeting Minutes 12.19.22 5 X Mayor Wayne Jett X City Clerk Trisha Ramel 213 Expense Approval Register  McHenry, IL Bills Council Meeting ‐ 1‐16‐23 Vendor Name Payable Number Post Date Description (Item) Account Number Amount Vendor: AEP ENERGY   AEP ENERGY  INV0014080 01/16/2023 UTIL 100‐33‐5520 2,528.51 AEP ENERGY  INV0014080 01/16/2023 UTIL 100‐42‐5510 272.47 AEP ENERGY  INV0014080 01/16/2023 UTIL 100‐45‐5510 484.76 AEP ENERGY  INV0014080 01/16/2023 UTIL 400‐00‐5510 23.41 AEP ENERGY  INV0014081 01/16/2023 UTIL 510‐31‐5510 6,666.42 AEP ENERGY  INV0014081 01/16/2023 UTIL 510‐32‐5510 11,947.76 Vendor AEP ENERGY  Total: 21,923.33 Vendor: ASCAP  ASCAP 500640084 2023 01/16/2023 ANNUAL LIC FEE 210‐00‐5110 420.00 Vendor ASCAP Total:   420.00 Vendor: BAXTER & WOODMAN  BAXTER & WOODMAN 0241797 01/16/2023 RIVERSIDE DR CS 100‐01‐8900 687.50 BAXTER & WOODMAN 0241798 01/16/2023 MILL STREET WATER MAIN 510‐31‐8500 3,408.75 Vendor BAXTER & WOODMAN Total:   4,096.25 Vendor: COMED  COMED INV0014082 01/16/2023 UTIL 100‐33‐5520 18,444.13 Vendor COMED Total:   18,444.13 Vendor: CONDUENT HR SERVICES LLC  CONDUENT HR SERVICES LLC 1664620 01/16/2023 HSA NOV 2022 600‐00‐6960 85.50 Vendor CONDUENT HR SERVICES LLC Total:   85.50 Vendor: DAHLIN, M, PC  DAHLIN, M, PC 1‐4‐23 01/16/2023 DEC COURT 2022 100‐03‐5110 55.50 DAHLIN, M, PC 1‐4‐23 01/16/2023 DEC COURT 2022 100‐22‐5110 499.50 Vendor DAHLIN, M, PC Total:   555.00 Vendor: DENCS, MEGHAN  DENCS, MEGHAN 383624 01/16/2023 VBALL CLASS CXL 100‐41‐3637 25.00 Vendor DENCS, MEGHAN Total: 25.00 Vendor: EDGELL, DANA  EDGELL, DANA 383568 01/10/2023 CLASS CXL 100‐41‐3637 20.00 Vendor EDGELL, DANA Total:   20.00 Vendor: FOX VALLEY FIRE & SAFETY  FOX VALLEY FIRE & SAFETY IN00568522 01/16/2023 AUTHENTIX INSTALL 225‐00‐5110 195.00 FOX VALLEY FIRE & SAFETY IN00568535 01/16/2023 MTHLY MAINT 11/16‐12/15/22    225‐00‐5110 3,068.00 FOX VALLEY FIRE & SAFETY IN00569562 01/16/2023 PMAK MCHENRY 213 LLC 225‐00‐5110 195.00 FOX VALLEY FIRE & SAFETY IN00570813 01/16/2023 RADIO  INSTALL TEAME BOBA    225‐00‐5110 195.00 Vendor FOX VALLEY FIRE & SAFETY Total: 3,653.00 Vendor: HLR  HLR 20230083 01/16/2023 DARTMOOR DR RESURF PH II 270‐00‐8600 4,335.00 Vendor HLR Total: 4,335.00 Vendor: HRGREEN  HRGREEN 151058 01/10/2023 CITY‐WIDE WATER & SEWER 510‐31‐8500 10,721.88 HRGREEN 151058 01/10/2023 CITY‐WIDE WATER & SEWER 510‐32‐8500 10,721.87 HRGREEN 149619 01/16/2023 GENERAL CONSULT 2017 100‐03‐5110 400.00 HRGREEN 150439 01/16/2023 CITY‐WIDE WATER & SEWER 510‐31‐8500 11,514.62 HRGREEN 150439 01/16/2023 CITY‐WIDE WATER & SEWER 510‐32‐8500 11,514.63 HRGREEN 151056 01/16/2023 C OF MCHENRY ‐ GENERAL 100‐03‐5110 1,345.00 HRGREEN 151919 01/16/2023 CITY‐WIDE WATER & SEWER 510‐31‐8500 3,451.25 HRGREEN 151919 01/16/2023 CITY‐WIDE WATER & SEWER 510‐32‐8500 3,451.25 HRGREEN 151920 01/16/2023 BLAKE FARM PLAN REVIEW 740‐00‐5220 1,872.50 HRGREEN 151921 01/16/2023 MCCRAKEN FIELD REVIEW 740‐00‐5220 1,920.00 1/11/2023 12:15:33 PM 214 Expense Approval Register Packet: APPKT02589 ‐ 1‐10‐23 AP CKS Vendor Name Payable Number Post Date Description (Item) Account Number Amount HRGREEN 151922 01/16/2023 MCHENRY SENIOR COMMONS 740‐00‐5220 539.25 HRGREEN 152535 01/16/2023 BLAKE FARM PLAN REVIEW 740‐00‐5220 1,327.50 HRGREEN 152537 01/16/2023 TRIO STATION RT 120 & 740‐00‐5220 615.00 HRGREEN 152538 01/16/2023 1860 N RICHMOND RD 740‐00‐5220 615.00 HRGREEN 155613 01/16/2023 CH PARKING LOT REHAB 100‐01‐8900 2,827.50 HRGREEN 155614 01/16/2023 VENICE AVE RECONST & PED 100‐01‐8900 2,726.93 HRGREEN 158699 01/16/2023 PANERA STORMWATER 740‐00‐5220 615.00 HRGREEN 158700 01/16/2023 CH PARKING LOT REHAB 100‐01‐8900 17,165.50 HRGREEN 158701 01/16/2023 VENICE AVE RECONST & PED 100‐01‐8900 18,224.50 HRGREEN 158703 01/16/2023 ARBY'S REVIEW 740‐00‐5220 615.00 Vendor HRGREEN Total:   102,184.18 Vendor: INFOSEND, INC  INFOSEND, INC 227070 01/16/2023 W‐S BILLING 100‐04‐5310 2,595.19 INFOSEND, INC 227070 01/16/2023 W‐S BILLING 100‐04‐5330 776.67 Vendor INFOSEND, INC Total:   3,371.86 Vendor: LEXISNEXIS  LEXISNEXIS 1236684‐20221231 01/16/2023 DEC SEARCHES 100‐22‐5110 121.50 Vendor LEXISNEXIS Total: 121.50 Vendor: MAHLSTEDT, STACY  MAHLSTEDT, STACY 383570 01/16/2023 CLASS CXL 100‐41‐3637 5.00 MAHLSTEDT, STACY 383637 01/16/2023 CLASS CXL 100‐41‐3637 5.00 Vendor MAHLSTEDT, STACY Total: 10.00 Vendor: MCHENRY COUNTY COUNCIL OF GOVERNMENTS  MCHENRY COUNTY COUNCIL 2593 01/16/2023 DEC MTG‐ A.DEVINE, P. 100‐01‐5410 200.00 Vendor MCHENRY COUNTY COUNCIL OF GOVERNMENTS Total:   200.00 Vendor: MCHENRY COUNTY RECORDER OF DEEDS  MCHENRY COUNTY RECORDER    DEC2022 01/16/2023 DEC22 REC FEES 100‐01‐6940 81.00 MCHENRY COUNTY RECORDER  INV0014083 01/16/2023 DEC REC FEES 510‐31‐6940 150.50 MCHENRY COUNTY RECORDER    INV0014083 01/16/2023 DEC REC FEES 510‐32‐6940 236.50 Vendor MCHENRY COUNTY RECORDER OF DEEDS Total: 468.00 Vendor: MCHENRY PRINTING  MCHENRY PRINTING 42229 01/16/2023 BANNERS/SIGNS 100‐03‐5330 335.68 Vendor MCHENRY PRINTING Total:   335.68 Vendor: OPTIONS 4 HEALTH  OPTIONS 4 HEALTH P22‐11‐086 01/16/2023 TEMP SIGN PERMIT 100‐00‐3410 30.00 Vendor OPTIONS 4 HEALTH Total:   30.00 Vendor: PARLOGEAN, SHANNON  PARLOGEAN, SHANNON P112998 01/16/2023 REFUND ON OVERPD TICKET 100‐22‐3510 25.00 Vendor PARLOGEAN, SHANNON Total:   25.00 Vendor: PELLOT, HALEY  PELLOT, HALEY 383580 01/16/2023 CLASS CXL 100‐41‐3637 10.00 Vendor PELLOT, HALEY Total: 10.00 Vendor: PITNEY BOWES INC  PITNEY BOWES INC 1022111340 01/16/2023 QTRLY POSTAGE METER FEE 100‐01‐5310 261.00 Vendor PITNEY BOWES INC Total:   261.00 Vendor: RINGERS LANDSCAPING SERVICES, INC  RINGERS LANDSCAPING P22‐07‐017 01/16/2023 CXL PERMIT 100‐00‐3410 45.00 Vendor RINGERS LANDSCAPING SERVICES, INC Total:   45.00 Vendor: SESAC  SESAC 10609306 01/16/2023 MUSIC PERFORMANCE LIC 200‐00‐5110 1,104.00 Vendor SESAC Total:   1,104.00 Vendor: SHAW MEDIA  SHAW MEDIA 10474 12‐31‐22 01/16/2023 DEC STMT 100‐03‐5330 102.60 SHAW MEDIA 10474 12‐31‐22 01/16/2023 DEC STMT 100‐04‐5330 46.32 SHAW MEDIA 10474 12‐31‐22 01/16/2023 DEC STMT 100‐04‐5330 2,028.88 Vendor SHAW MEDIA Total:   2,177.80 1/11/2023 12:15:33 PM 215 Expense Approval Register Packet: APPKT02589 ‐ 1‐10‐23 AP CKS   Vendor Name    Payable Number    Post Date    Description (Item)    Account Number    Amount   Vendor: SMIESKO, KAREN  SMIESKO, KAREN    383601    01/16/2023    REFUND    100‐41‐3637    15.00 Vendor SMIESKO, KAREN Total:   15.00   Vendor: WINNEBAGO LANDFILL CO  WINNEBAGO LANDFILL CO    11058    01/16/2023    SLUDGE    510‐32‐5580    203.60 Vendor WINNEBAGO LANDFILL CO Total:   203.60        Grand Total:   164,119.83                   1/11/2023 12:15:33 PM   216 Expense Approval Register Packet: APPKT02589 ‐ 1‐10‐23 AP CKS Fund Summary  Fund Expense Amount   100 ‐ GENERAL FUND 72,390.64   200 ‐ TOURISM FUND 1,104.00  210 ‐ BAND FUND 420.00   225 ‐ ALARM BOARD FUND 3,653.00   270 ‐ MOTOR FUEL TAX FUND 4,335.00   400 ‐ RECREATION CENTER FUND 23.41   510 ‐ WATER/SEWER FUND 73,989.03  600 ‐ EMPLOYEE INSURANCE FUND 85.50   740 ‐ RETAINED PERSONNEL ESCROW 8,119.25   Grand Total:   164,119.83   217 2 Expense Approval Register  McHenry, IL #2 List of Bills Council Meeting‐ 1‐16‐23 Vendor Name Payable Number Post Date Description (Item) Account Number Amount Vendor: AHW, LLC  AHW, LLC 11528023 01/16/2023 streets    11528023 100‐33‐5370 51.79 Vendor AHW, LLC Total:   51.79 Vendor: ALTORFER INDUSTRIES, INC  ALTORFER INDUSTRIES, INC PM6A0013812 01/16/2023 Generator Load Test 100‐23‐5110 1,145.00 Vendor ALTORFER INDUSTRIES, INC Total:   1,145.00 Vendor: AMERICAN HEATING & COOLING  AMERICAN HEATING & 04043054 01/16/2023 Hickory Creek Farm furnace 100‐45‐5110 303.00 Vendor AMERICAN HEATING & COOLING Total:   303.00 Vendor: AQUALAB WATER TREATMENT, INC  AQUALAB WATER TREATMENT,    10102 01/16/2023 10102 100‐03‐5120 100.00 Vendor AQUALAB WATER TREATMENT, INC Total: 100.00 Vendor: ARAMARK  ARAMARK 25127615 01/16/2023 Friedle Clothing 100‐45‐4510 87.95 ARAMARK 25180736 01/16/2023 Friedle clothing 100‐45‐4510 2.00 Vendor ARAMARK Total: 89.95 Vendor: BADGER METER INC  BADGER METER INC 80116189 01/16/2023 Badger Monthly & year end 510‐31‐5110 1,920.20 Vendor BADGER METER INC Total: 1,920.20 Vendor: BEARING HEADQUARTERS COMPANY  BEARING HEADQUARTERS 5855998 01/16/2023 Aerator#2 Coupling 510‐32‐5375 1,253.04 Vendor BEARING HEADQUARTERS COMPANY Total:   1,253.04 Vendor: BERGGREN, LEE  BERGGREN, LEE 255301 01/16/2023 Petersen Farm repairs 280‐41‐8800 1,685.00 Vendor BERGGREN, LEE Total:   1,685.00 Vendor: BROWN EQUIPMENT  BROWN EQUIPMENT INV17324 01/16/2023 Aquatech (817) Water Pump 510‐35‐5370 557.55 Vendor BROWN EQUIPMENT Total: 557.55 Vendor: CABAY & COMPANY INC  CABAY & COMPANY INC 67189 01/16/2023 Custodial Supplies 400‐00‐6111 361.55 CABAY & COMPANY INC 67220 01/16/2023 Custodial Supplies 400‐00‐6111 268.86 CABAY & COMPANY INC 67221 01/16/2023 Custodial Supplies 400‐00‐6111 69.99 CABAY & COMPANY INC 67262 01/16/2023 Custodial Supllies 400‐00‐6111 577.14 CABAY & COMPANY INC 67298 01/16/2023 Custodial Supplies 400‐00‐6111 181.42 Vendor CABAY & COMPANY INC Total:   1,458.96 Vendor: CARY PARK DISTRICT  CARY PARK DISTRICT 2144 01/16/2023 Trip ‐ Holiday Party 100‐46‐5110 410.64 Vendor CARY PARK DISTRICT Total:   410.64 Vendor: CASTLE AUTOMOTIVE GROUP  CASTLE AUTOMOTIVE GROUP    5102092 01/16/2023 310 (5102092) 100‐22‐5370 145.88 Vendor CASTLE AUTOMOTIVE GROUP Total:   145.88 Vendor: CENTURY SPRINGS  CENTURY SPRINGS 2016406 01/16/2023 Lab Water INV# 2016406 510‐32‐6110 22.57 CENTURY SPRINGS 2993523 01/16/2023 Lab Water INV# 2993523 510‐32‐6110 22.57 Vendor CENTURY SPRINGS Total:   45.14 Vendor: CINTAS CORPORATION LOC 355  CINTAS CORPORATION LOC 355    5137704739 01/16/2023 Cintas 12/20/2022 400‐00‐6130 214.67 Vendor CINTAS CORPORATION LOC 355 Total: 214.67 1/11/2023 12:16:47 PM 218 Expense Approval Register Packet: APPKT02590 ‐ 1‐16‐23 RECT INV Vendor Name Payable Number Post Date Description (Item) Account Number Amount Vendor: CINTAS   CINTAS  5138802113 01/16/2023 First Aid kit 100‐45‐5110 52.79 Vendor CINTAS  Total:   52.79 Vendor: CITY ELECTRIC SUPPLY  CITY ELECTRIC SUPPLY MCH016421 01/16/2023 Low Voltage Supplies ‐‐ 620‐00‐8300 94.63 CITY ELECTRIC SUPPLY MCH016483 01/16/2023 Low Voltage Supplies ‐‐ 620‐00‐8300 40.00 CITY ELECTRIC SUPPLY MCH016499 01/16/2023 Low Voltage Supplies ‐‐ 620‐00‐8300 8.94 CITY ELECTRIC SUPPLY MCH016502 01/16/2023 Low Voltage Supplies ‐‐ 620‐00‐8300 65.22 CITY ELECTRIC SUPPLY MCH016538 01/16/2023 Low Voltage Supplies ‐‐ 620‐00‐8300 2.98 Vendor CITY ELECTRIC SUPPLY Total:   211.77 Vendor: COMCAST CABLE  COMCAST CABLE 0291 1‐1‐23 01/16/2023 CH Cable TV 620‐00‐5110 27.40 COMCAST CABLE 7920 12‐27‐22 01/16/2023 CH Monthly Internet 620‐00‐5110 178.40 Vendor COMCAST CABLE Total:   205.80 Vendor: CONCENTRIC INTEGRATION,LLC  CONCENTRIC INTEGRATION,LLC    0241799 01/16/2023 Concentric Plt 2 filter backwash    510‐31‐5110 375.00 Vendor CONCENTRIC INTEGRATION,LLC Total:   375.00 Vendor: CRESCENT ELECTRIC SUPPLY CO  CRESCENT ELECTRIC SUPPLY CO  S511011095.002 01/16/2023 Locker Room Expansion 100‐01‐8200 218.28 Vendor CRESCENT ELECTRIC SUPPLY CO Total:   218.28 Vendor: DREISILKER ELECTRIC MOTORS INC  DREISILKER ELECTRIC MOTORS    I229565 01/16/2023 MS Building Exhaust Fan Repair    510‐32‐5375 99.24 DREISILKER ELECTRIC MOTORS    I230706 01/16/2023 Micro Screen Building INV# 510‐32‐5375 44.64 DREISILKER ELECTRIC MOTORS    I230859 01/16/2023 Aerator Gear Box Bearing 510‐32‐5375 508.20 DREISILKER ELECTRIC MOTORS    I231140 01/16/2023 Regional Exhaust Fan Belt  INV#    510‐32‐5375 22.14 DREISILKER ELECTRIC MOTORS    I231208 01/16/2023 2 Meter GBT‐Wash Water 510‐32‐5375 1,033.50 DREISILKER ELECTRIC MOTORS    I231209 01/16/2023 Clarifier Drive‐Rebuild Kit  INV#    510‐32‐5375 488.54 Vendor DREISILKER ELECTRIC MOTORS INC Total:   2,196.26 Vendor: ED'S AUTOMOTIVE/JIM'S MUFFLER SHOP  ED'S AUTOMOTIVE/JIM'S 12‐31‐22 2186 01/16/2023 Vehicle Safety Inspection VEH    510‐35‐5370 44.50 ED'S AUTOMOTIVE/JIM'S 2186 12‐31‐22 01/16/2023 Vehicle Safety Insp. (11 Street    100‐33‐5370 344.50 Vendor ED'S AUTOMOTIVE/JIM'S MUFFLER SHOP Total:   389.00 Vendor: EJ USA INC  EJ USA INC 110230000075/CR1102300002   01/16/2023 6'6" hydrant and a4'6" hydrant    510‐31‐6110 5,971.20 Vendor EJ USA INC Total:   5,971.20 Vendor: FLOOD BROTHERS DISPOSAL  FLOOD BROTHERS DISPOSAL 6496091 01/16/2023 Dumpster rental Hickory Creek    100‐45‐5110 475.00 Vendor FLOOD BROTHERS DISPOSAL Total: 475.00 Vendor: FOXCROFT MEADOWS INC  FOXCROFT MEADOWS INC 70.670 01/16/2023 Straw Mat, Staples #70670 510‐32‐6110 139.00 Vendor FOXCROFT MEADOWS INC Total:   139.00 Vendor: FREUND & SON INC, S H  FREUND & SON INC, S H 12‐6‐22 01/16/2023 Misc Materials ‐ Locker Room 100‐01‐8200 16,750.46 Vendor FREUND & SON INC, S H Total:   16,750.46 Vendor: GALLS LLC  GALLS LLC 022830503/CR022935969 01/16/2023 Order ‐ P. Prather 100‐22‐4510 5.00 GALLS LLC 022906731 01/16/2023 Order ‐ Flashlight 100‐22‐4510 153.84 GALLS LLC 022958434 01/16/2023 Uniform Order ‐ Carey 100‐22‐4510 49.66 GALLS LLC 022958464 01/16/2023 Uniform Order 100‐23‐4510 48.77 GALLS LLC 023007431 01/16/2023 Uniform Order ‐ Carey 100‐22‐4510 67.02 GALLS LLC 023064867 01/16/2023 Uniform Order ‐ Polidori 100‐22‐4510 288.89 GALLS LLC 023065552 01/16/2023 Uniform Order ‐ J. Prather 100‐22‐4510 155.00 GALLS LLC 023102385 01/16/2023 Uniform Order ‐ Aalto 100‐22‐4510 138.99 Vendor GALLS LLC Total:   907.17 1/11/2023 12:16:47 PM 219 Expense Approval Register Packet: APPKT02590 ‐ 1‐16‐23 RECT INV   Vendor Name    Payable Number    Post Date    Description (Item)    Account Number    Amount   Vendor: GRAINGER  GRAINGER    9544565972    01/16/2023    Grainger Air compressor filters    510‐31‐6110    44.94 Vendor GRAINGER Total:   44.94   Vendor: HAWKINS INC  HAWKINS INC    6357160    01/16/2023    Chemical Delivery #6357160    510‐32‐6110    11,733.40 HAWKINS INC    6360443    01/16/2023    Hawkins Demmurage    510‐31‐6110    30.00 HAWKINS INC  6362976  01/16/2023  Hawkins   510‐31‐6110  6,461.50 Vendor HAWKINS INC Total:   18,224.90   Vendor: HEARTLAND BUSINESS SYSTEMS, LLC  HEARTLAND BUSINESS    566827‐H    01/16/2023    Microsoft Monthly M365    620‐00‐5110    3,819.50 HEARTLAND BUSINESS  570023‐H  01/16/2023  Microsoft Windows Enterprise  620‐00‐5110  1,039.50 Vendor HEARTLAND BUSINESS SYSTEMS, LLC Total:   4,859.00   Vendor: HOLCIM‐MAMR, INC  HOLCIM‐MAMR, INC    717345037    01/16/2023    Lakeland Park Comm. Center    510‐31‐6110    128.68 HOLCIM‐MAMR, INC  717387936  01/16/2023  Sand for Hanley Watermain  510‐31‐6110  103.83 Vendor HOLCIM‐MAMR, INC Total:   232.51   Vendor: HRGREEN  HRGREEN    154799    01/16/2023    2022 Biennial Bridge    100‐33‐5110    6,480.53 HRGREEN  158698  01/16/2023  Curran/Dartmoor Signal  100‐33‐5110  724.25 Vendor HRGREEN Total:   7,204.78   Vendor: INDUSTRIAL/ORGANIZATIONAL SOLUTIONS LLC  INDUSTRIAL/ORGANIZATIONAL    C55317A    01/16/2023    Exam Forms    100‐21‐5110    615.00 Vendor INDUSTRIAL/ORGANIZATIONAL SOLUTIONS LLC Total:   615.00   Vendor: INTERSTATE BILLING SERVICE INC  INTERSTATE BILLING SERVICE    3030495940    01/16/2023    407 (3030495940)    100‐33‐5370    268.56 INTERSTATE BILLING SERVICE    3030512109    01/16/2023    411 (3030512109)    100‐33‐5370    135.58 INTERSTATE BILLING SERVICE    3030599659    01/16/2023    412 (3030599659)    100‐33‐5370    852.30 INTERSTATE BILLING SERVICE  3030600155  01/16/2023  412 (3030600155)  100‐33‐5370  590.00 INTERSTATE BILLING SERVICE    3030606305    01/16/2023    412 (3030606305)    100‐33‐5370    500.80 INTERSTATE BILLING SERVICE    3030715218    01/16/2023    407 (3030715218)    100‐33‐5370    1,355.83 INTERSTATE BILLING SERVICE    3030727207    01/16/2023    412 (3030727207)    100‐33‐5370    498.48 INTERSTATE BILLING SERVICE  3030753097  01/16/2023  412 (3030753097)  100‐33‐5370  436.37 INTERSTATE BILLING SERVICE    3030781261    01/16/2023    407 (3030781261)    100‐33‐5370    183.80 Vendor INTERSTATE BILLING SERVICE INC Total: 4,821.72   Vendor: JENSEN, TED  JENSEN, TED  03737  01/16/2023  Large Bearing Install  INV#  510‐32‐5375  80.00 Vendor JENSEN, TED Total:   80.00   Vendor: JG UNIFORMS INC  JG UNIFORMS INC    108298    01/16/2023    Jaimie Prather Promotion Items    100‐22‐4510    111.95 JG UNIFORMS INC    108828    01/16/2023    Uniform Order ‐ J. Prather    100‐22‐4510    489.69 Vendor JG UNIFORMS INC Total:   601.64   Vendor: KIMBALL MIDWEST  KIMBALL MIDWEST    100572561    01/16/2023    411 (100572561)    100‐33‐5370    110.17 KIMBALL MIDWEST  100574822  01/16/2023  kimball stock (100574822)  100‐33‐5370  193.81 KIMBALL MIDWEST    100578675    01/16/2023    411 (100578675)    100‐33‐5370    59.32 KIMBALL MIDWEST    100591789    01/16/2023    kimball stock (100591789)    100‐33‐5370    431.83 KIMBALL MIDWEST    100610788    01/16/2023    kimball stock (100610788)    100‐33‐5370    383.19 KIMBALL MIDWEST    100624535    01/16/2023    kimball stock (100624535)    100‐33‐5370    282.11 Vendor KIMBALL MIDWEST Total:   1,460.43   Vendor: KIWANIS CLUB OF MCHENRY  KIWANIS CLUB OF MCHENRY    10369    01/16/2023    Membership ‐ Kiwanis    100‐41‐5410    150.00 Vendor KIWANIS CLUB OF MCHENRY Total:   150.00   Vendor: KNAPHEIDE EQUIPMENT CO‐CHICAGO  KNAPHEIDE EQUIPMENT CO‐   CIS10974    01/16/2023    vechicle repair    100‐45‐5370    210.00 Vendor KNAPHEIDE EQUIPMENT CO‐CHICAGO Total: 210.00       1/11/2023 12:16:47 PM   220 Expense Approval Register Packet: APPKT02590 ‐ 1‐16‐23 RECT INV Vendor Name Payable Number Post Date Description (Item) Account Number Amount Vendor: KOMLINE‐SANDERSON  KOMLINE‐SANDERSON 42055458 01/16/2023 Dryer Deluge Solenoid INV# 510‐32‐5375 415.64 Vendor KOMLINE‐SANDERSON Total:   415.64 Vendor: L&S ELECTRIC INC  L&S ELECTRIC INC 685985 01/16/2023 Aerator #4 Seal Repair Kit  INV#    510‐32‐5375 943.00 Vendor L&S ELECTRIC INC Total:   943.00 Vendor: LAI LTD  LAI LTD 22‐19880 01/16/2023 Chemical Feed Pump Hose  510‐32‐5375 550.97 Vendor LAI LTD Total: 550.97 Vendor: LIFEGUARD STORE INC, THE  LIFEGUARD STORE INC, THE INV001269791 01/16/2023 Starter Battery 100‐47‐6110 77.20 LIFEGUARD STORE INC, THE INV001269885 01/16/2023 Paddle Tubing 100‐47‐6110 52.50 Vendor LIFEGUARD STORE INC, THE Total: 129.70 Vendor: MCCANN INDUSTRIES INC  MCCANN INDUSTRIES INC P37551 01/16/2023 Concrete Expansion  100‐33‐6110 258.40 Vendor MCCANN INDUSTRIES INC Total:   258.40 Vendor: MCHENRY SPECIALTIES  MCHENRY SPECIALTIES 2022‐852 01/16/2023 Plaque for Sciame 100‐22‐6210 85.00 Vendor MCHENRY SPECIALTIES Total:   85.00 Vendor: MENARDS ‐ CRYSTAL LAKE  MENARDS ‐ CRYSTAL LAKE 81703 01/16/2023 Holiday Supplies  100‐45‐6110 73.83 Vendor MENARDS ‐ CRYSTAL LAKE Total:   73.83 Vendor: MENARDS ‐ WOODSTOCK  MENARDS ‐ WOODSTOCK 90638 01/16/2023 Holiday Supplies 100‐45‐6110 169.62 Vendor MENARDS ‐ WOODSTOCK Total: 169.62 Vendor: METRO DOOR AND DOCK INC  METRO DOOR AND DOCK INC  E16877 01/16/2023 1415 Industrial Dr (Garage 100‐33‐5115 645.00 Vendor METRO DOOR AND DOCK INC Total:   645.00 Vendor: METROPOLITAN INDUSTRIES  METROPOLITAN INDUSTRIES    045376 01/16/2023 W.Dartmoor Lift    INV045376    510‐32‐5380 6,983.87 Vendor METROPOLITAN INDUSTRIES Total:   6,983.87 Vendor: MIDWEST HOSE AND FITTINGS INC  MIDWEST HOSE AND FITTINGS    222651 01/16/2023 Aquatech fitting #222651 510‐32‐6110 12.18 MIDWEST HOSE AND FITTINGS    223229 01/16/2023 4" Cam Lock Caps  INV# 223229    510‐32‐5380 134.61 Vendor MIDWEST HOSE AND FITTINGS INC Total:   146.79 Vendor: MIDWEST METER INC  MIDWEST METER INC 0149854‐IN 01/16/2023 Midwest Meter 2" E sreies 510‐31‐6110 1,240.98 MIDWEST METER INC 0150317‐IN 01/16/2023 Midwest meter 2 x  1" meters    510‐31‐6110 995.75 Vendor MIDWEST METER INC Total:   2,236.73 Vendor: NCL OF WISCONSIN INC  NCL OF WISCONSIN INC 480809 01/16/2023 Lab Supplies INV# 480809 510‐32‐6110 78.47 Vendor NCL OF WISCONSIN INC Total: 78.47 Vendor: NORTHWESTERN MEDICINE OCC HEALTH  NORTHWESTERN MEDICINE 534735 01/16/2023 Randoms, New Hire #534735 100‐05‐5110 275.00 Vendor NORTHWESTERN MEDICINE OCC HEALTH Total: 275.00 Vendor: OLSEN SAFETY EQUIPMENT CORP  OLSEN SAFETY EQUIPMENT 0403220‐IN 01/16/2023 Hip Waders #0403220‐IN 510‐31‐6110 565.50 Vendor OLSEN SAFETY EQUIPMENT CORP Total:   565.50 Vendor: PACE ANALYTICAL SERVICES, LLC  PACE ANALYTICAL SERVICES, I9541724 01/16/2023 Pace Monthly 510‐31‐5110 1,031.70 Vendor PACE ANALYTICAL SERVICES, LLC Total:   1,031.70 Vendor: PETROCHOICE LLC  PETROCHOICE LLC 51078753 01/16/2023 51078753 100‐03‐6250 145.54 PETROCHOICE LLC 51078758 01/16/2023 Fuel ‐ 51078758 100‐22‐6250 1,997.61 PETROCHOICE LLC 51087286 01/16/2023 Fuel ‐ UTY  ‐ 51087286 510‐35‐6250 531.96 1/11/2023 12:16:47 PM 221 Expense Approval Register Packet: APPKT02590 ‐ 1‐16‐23 RECT INV Vendor Name Payable Number Post Date Description (Item) Account Number Amount PETROCHOICE LLC 51087297 01/16/2023 51087297 100‐03‐6250 244.16 PETROCHOICE LLC 51087298 01/16/2023 Fuel ‐ WW ‐ 51087298 510‐32‐6250 181.56 PETROCHOICE LLC 51087299 01/16/2023 Fuel ‐ WTR ‐ 51087299 510‐31‐6250 105.43 PETROCHOICE LLC 51087300 01/16/2023 Fuel 51087300 100‐45‐6250 601.00 PETROCHOICE LLC 51087301 01/16/2023 Fuel ‐ STS ‐ 51087301 100‐33‐6250 1,288.00 PETROCHOICE LLC 51087302 01/16/2023 Fuel ‐ 51087302 100‐22‐6250 2,669.13 PETROCHOICE LLC 51090738 01/16/2023 Fuel # 51090738 100‐45‐6250 96.69 PETROCHOICE LLC 51097066 01/16/2023 Fuel ‐ UTY ‐ 51097066 510‐35‐6250 356.18 PETROCHOICE LLC 51097077 01/16/2023 51097077 100‐03‐6250 138.90 PETROCHOICE LLC 51097078 01/16/2023 Fuel ‐ WW ‐ 51097078 510‐32‐6250 195.77 PETROCHOICE LLC 51097079 01/16/2023 Fuel ‐ WTR ‐ 51097079 510‐31‐6250 54.84 PETROCHOICE LLC 51097080 01/16/2023 Fuel # 51097080 100‐45‐6250 452.99 PETROCHOICE LLC 51097081 01/16/2023 Fuel ‐ STS ‐ 51097081 100‐33‐6250 1,728.70 PETROCHOICE LLC 51097082 01/16/2023 Fuel ‐ 51097082 100‐22‐6250 2,026.93 Vendor PETROCHOICE LLC Total:   12,815.39 Vendor: PETTIBONE & CO, P F  PETTIBONE & CO, P F 183143 01/16/2023 Parking Tickets 100‐22‐6210 1,222.70 PETTIBONE & CO, P F 183144 01/16/2023 Wallet 100‐22‐6210 40.00 Vendor PETTIBONE & CO, P F Total:   1,262.70 Vendor: PROSHRED SECURITY  PROSHRED SECURITY 1089710 01/16/2023 Monthly Shred 100‐22‐5110 77.05 Vendor PROSHRED SECURITY Total: 77.05 Vendor: SERVICEMASTER BY THACKER  SERVICEMASTER BY THACKER 24636‐JAN2023 01/16/2023 1415 Industrial Cleaning ‐ 100‐33‐5115 500.00 Vendor SERVICEMASTER BY THACKER Total:   500.00 Vendor: SHERWIN‐WILLIAMS CO, THE  SHERWIN‐WILLIAMS CO, THE 4281‐4,CR4282‐2 01/16/2023 Paint ‐ Locker Room Expansion    100‐01‐8200 598.64 Vendor SHERWIN‐WILLIAMS CO, THE Total:   598.64 Vendor: SIGNS BY FRY  SIGNS BY FRY 2022594 01/16/2023 Vehicle supplies  100‐45‐6110 52.00 Vendor SIGNS BY FRY Total:   52.00 Vendor: STANARD & ASSOCIATES INC  STANARD & ASSOCIATES INC SA052693 01/16/2023 Personality Evaluation ‐ N. 100‐23‐5110 450.00 Vendor STANARD & ASSOCIATES INC Total: 450.00 Vendor: SYNCB/AMAZON  SYNCB/AMAZON INV0014084 01/16/2023 Chaisr for Training Room 100‐01‐8200 4,289.61 SYNCB/AMAZON INV0014085 01/16/2023 Furniture Stoppers 100‐01‐8200 79.92 SYNCB/AMAZON INV0014086 01/16/2023 Office Supplies 100‐22‐6210 10.00 SYNCB/AMAZON INV0014086 01/16/2023 Office Supplies 100‐22‐6210 189.46 SYNCB/AMAZON INV0014087 01/16/2023 CD's 100‐22‐6210 11.88 SYNCB/AMAZON INV0014087 01/16/2023 CD's 100‐22‐6210 107.41 Vendor SYNCB/AMAZON Total: 4,688.28 Vendor: TOPS IN DOG TRAINING CORP  TOPS IN DOG TRAINING CORP    25574 01/16/2023 K9 Training‐Boarding 100‐22‐6310 410.00 Vendor TOPS IN DOG TRAINING CORP Total:   410.00 Vendor: TRAFFIC CONTROL & PROTECTION INC  TRAFFIC CONTROL & 113354 01/16/2023 Sign Program 2022 #113354 100‐33‐6110 10,563.85 TRAFFIC CONTROL & 113355 01/16/2023 2 Golf Cart Signs #113355 100‐33‐6110 301.10 TRAFFIC CONTROL & 113356 01/16/2023 Parking Restriction Signs 100‐33‐6110 237.75 TRAFFIC CONTROL & 113475 01/16/2023 Street Sign Brackets #113475 100‐33‐6110 784.00 Vendor TRAFFIC CONTROL & PROTECTION INC Total: 11,886.70 Vendor: TYLER TECHNOLOGIES  TYLER TECHNOLOGIES 025‐402336 01/16/2023 ERP Pro Maintenance ‐ Time 620‐00‐5110 159.37 Vendor TYLER TECHNOLOGIES Total:   159.37 1/11/2023 12:16:47 PM 222 Expense Approval Register Packet: APPKT02590 ‐ 1‐16‐23 RECT INV Vendor Name Payable Number Post Date Description (Item) Account Number Amount Vendor: VEOLIA WATER TECHNOLOGIES, INC  VEOLIA WATER 23000036RI05700 01/16/2023 DF1 Actuator 510‐32‐5375 1,775.97 Vendor VEOLIA WATER TECHNOLOGIES, INC Total:   1,775.97 Vendor: VICTOR FORD, INC  VICTOR FORD, INC 168423 01/16/2023 316    168423 100‐22‐5370 157.13 VICTOR FORD, INC 393767 01/16/2023 434 (393767) 100‐33‐5370 1,492.18 Vendor VICTOR FORD, INC Total:   1,649.31 Vendor: WATER PRODUCTS ‐ AURORA  WATER PRODUCTS ‐ AURORA 0312800 01/16/2023 5'6" B‐Boxes 510‐31‐6110 680.00 WATER PRODUCTS ‐ AURORA 0313054 01/16/2023 Hydrant grease #0313054 510‐31‐6110 350.00 WATER PRODUCTS ‐ AURORA 0313803 01/16/2023 Riser rings 100‐33‐6110 510.00 WATER PRODUCTS ‐ AURORA 312457 01/16/2023 10X12 repair clamp 510‐31‐6110 630.00 Vendor WATER PRODUCTS ‐ AURORA Total: 2,170.00 Grand Total:   128,862.10 1/11/2023 12:16:47 PM 223 Expense Approval Register Packet: APPKT02590 ‐ 1‐16‐23 RECT INV Fund Summary  Fund Expense Amount   100 ‐ GENERAL FUND 71,168.91   280 ‐ DEVELOPER DONATION FUND 1,685.00  400 ‐ RECREATION CENTER FUND 1,673.63   510 ‐ WATER/SEWER FUND 48,898.62   620 ‐ INFORMATION TECHNOLOGY FUND 5,435.94   Grand Total:   128,862.10   224 AS NEEDED CHECKS COUNCIL MEETING 1-16-2023 100 100-22-5370 AUTO TECH CENTERS INC 12/02/2022 $681.09 510 510-2305 BANK OF NEW YORK MELLON, THE 12/02/2022 $265,000.00 510 510-32-7200 BANK OF NEW YORK MELLON, THE 12/02/2022 $52,100.00 100 100-22-5370 CASTLE AUTOMOTIVE GROUP 12/02/2022 $548.94 100 100-47-5110 CITY OF ELGIN 12/02/2022 $247.00 100 100-33-5520 COMED 12/02/2022 $51.89 100 100-45-5510 COMED 12/02/2022 $20.41 510 510-32-5510 COMED 12/02/2022 $41.92 510 510-32-5510 COMED 12/02/2022 $1,499.78 510 510-31-6110 HACH COMPANY 12/02/2022 $890.61 100 100-45-6270 KNAPHEIDE EQUIPMENT CO-CHICAGO 12/02/2022 $13,043.00 100 100-01-8200 LIT N GLOW ELECTRIC, INC 12/02/2022 $3,823.00 100 100-01-8200 LIT N GLOW ELECTRIC, INC 12/02/2022 $32,175.00 100 100-01-8200 MODERN FLOORING 12/02/2022 $7,584.70 100 100-45-6110 RICHARDSON CHRISTMAS TREES, LLC 12/02/2022 $400.00 100 100-47-5110 VILLAGE OF PLEASANT PRAIRIE - RECPLEX 12/02/2022 $334.00 100 100-03-6110 ACE HARDWARE 12/09/2022 $47.67 100 100-33-6110 ACE HARDWARE 12/09/2022 $159.18 100 100-45-6110 ACE HARDWARE 12/09/2022 $363.67 510 510-31-6110 ACE HARDWARE 12/09/2022 $154.07 510 510-32-5370 ACE HARDWARE 12/09/2022 $80.00 510 510-32-5375 ACE HARDWARE 12/09/2022 $74.16 510 510-32-5380 ACE HARDWARE 12/09/2022 $23.00 510 510-32-6110 ACE HARDWARE 12/09/2022 $51.70 100 100-01-6110 ARAMARK REFRESHMENT SERVICES LLC 12/09/2022 $68.01 100 100-01-6110 ARAMARK REFRESHMENT SERVICES LLC 12/09/2022 $238.46 100 100-01-6110 CABAY & COMPANY INC 12/09/2022 $416.87 620 620-00-8300 CDW GOVERNMENT INC 12/09/2022 $7,189.17 280 280-41-8800 COPLEY ROOFING CO INC, CHARLES 12/09/2022 $39,000.00 100 100-01-6940 SECRETARY OF STATE/INDEX DEPT 12/09/2022 $15.00 510 510-32-6110 ULINE 12/09/2022 $248.67 100 100-01-5110 31 NORTH BANQUET & CONFERENCE CENTER12/16/2022 $2,410.40 100 100-01-5110 BANKCARD PROCESSING CENTER 12/16/2022 $2,437.28 100 100-01-6940 BANKCARD PROCESSING CENTER 12/16/2022 $39.86 100 100-03-5120 BANKCARD PROCESSING CENTER 12/16/2022 $797.57 100 100-04-5110 BANKCARD PROCESSING CENTER 12/16/2022 $161.68 100 100-05-5110 BANKCARD PROCESSING CENTER 12/16/2022 $195.00 100 100-06-5430 BANKCARD PROCESSING CENTER 12/16/2022 -$49.99 100 100-22-5410 BANKCARD PROCESSING CENTER 12/16/2022 $115.00 100 100-22-6110 BANKCARD PROCESSING CENTER 12/16/2022 $60.99 100 100-22-6210 BANKCARD PROCESSING CENTER 12/16/2022 $331.68 100 100-41-6110 BANKCARD PROCESSING CENTER 12/16/2022 $5.03 100 100-46-6110 BANKCARD PROCESSING CENTER 12/16/2022 $33.73 400 400-00-6111 BANKCARD PROCESSING CENTER 12/16/2022 $8.12 510 510-32-5375 BERKHEIMER CO INC, G W 12/16/2022 $124.80 510 510-32-5375 BERKHEIMER CO INC, G W 12/16/2022 $169.44 100 100-47-5110 CITY OF ELGIN 12/16/2022 $109.00 400 400-40-5375 DIRECT FITNESS SOLUTIONS 12/16/2022 $282.69 100 100-03-5370 FIRST BANKCARD 12/16/2022 $79.80 100 100-22-5370 FIRST BANKCARD 12/16/2022 $614.75 100 100-22-6110 FIRST BANKCARD 12/16/2022 $309.25 100 100-41-5330 FIRST BANKCARD 12/16/2022 $217.39 100 100-41-6110 FIRST BANKCARD 12/16/2022 $99.68 100 100-45-5370 FIRST BANKCARD 12/16/2022 $2,911.82 100 100-46-5110 FIRST BANKCARD 12/16/2022 $48.69 100 100-46-6110 FIRST BANKCARD 12/16/2022 $49.79 225 100 100-46-6920 FIRST BANKCARD 12/16/2022 $386.06 100 100-47-5110 FIRST BANKCARD 12/16/2022 $2,151.50 100 100-47-5410 FIRST BANKCARD 12/16/2022 $70.00 100 100-47-6110 FIRST BANKCARD 12/16/2022 $270.26 400 400-00-5321 FIRST BANKCARD 12/16/2022 $324.98 400 400-00-6110 FIRST BANKCARD 12/16/2022 $34.33 400 400-40-5110 FIRST BANKCARD 12/16/2022 $679.00 620 620-00-5110 FIRST BANKCARD 12/16/2022 $495.00 620 620-00-6210 FIRST BANKCARD 12/16/2022 $25.02 620 620-00-8300 FIRST BANKCARD 12/16/2022 $5,180.88 510 510-32-5410 FIRST BANKCARD 12/16/2022 $105.00 225 225-00-5110 FOX VALLEY FIRE & SAFETY 12/16/2022 $195.00 225 225-00-5110 FOX VALLEY FIRE & SAFETY 12/16/2022 $195.00 225 225-00-5110 FOX VALLEY FIRE & SAFETY 12/16/2022 $195.00 100 100-47-6110 GREEN DOOR PROMOTIONS LLC 12/16/2022 $813.20 280 280-41-8800 HITCHCOCK DESIGN, INC 12/16/2022 $2,000.00 100 100-45-4510 RED WING BUSINESS ADVANTAGE 12/16/2022 $202.39 100 100-33-4510 RED WING BUSINESS ADVANTAGE 12/16/2022 $197.99 100 100-33-4510 RED WING BUSINESS ADVANTAGE 12/16/2022 $246.39 100 100-33-6110 RELIABLE SAND & GRAVEL 12/16/2022 $1,600.00 510 510-31-6110 RELIABLE SAND & GRAVEL 12/16/2022 $1,600.00 100 100-03-6110 SCHWALENBERG, RYAN 12/16/2022 $65.80 100 100-01-8400 CASTLE AUTOMOTIVE GROUP 12/20/2022 $177,514.96 100 100-22-5430 MCHENRY COUNTY CHIEFS OF POLICE 12/20/2022 $30.00 750 750-1215 WOOF AND RUN, LLC 12/20/2022 $5,000.00 100 100-22-5430 MCHENRY COUNTY CHIEFS OF POLICE 12/20/2022 $30.00 100 100-33-5115 ARCO MECHANICAL EQUIPMENT SALES 12/22/2022 $1,440.00 100 100-01-8300 CASTLE AUTOMOTIVE GROUP 12/22/2022 $2,598.00 620 620-00-5110 COLOSSUS, INCORPORATED 12/22/2022 $13,875.00 510 510-32-5380 JRM DIST LLC 12/22/2022 $655.67 100 100-33-5370 KIMBALL MIDWEST 12/22/2022 $120.69 100 100-33-5370 KNAPHEIDE EQUIPMENT CO-CHICAGO 12/22/2022 $191.95 100 100-33-5370 KNAPHEIDE EQUIPMENT CO-CHICAGO 12/22/2022 $304.35 400 400-40-3646 LOEBBAKA, LAURA 12/22/2022 $48.00 510 510-32-5375 PLATINUM HEATING & COOLING INC 12/22/2022 $1,013.64 100 100-33-5110 ROBINSON ENGINEERING LTD 12/22/2022 $1,623.10 510 510-31-5110 ROBINSON ENGINEERING LTD 12/22/2022 $1,623.10 510 510-31-5110 ROBINSON ENGINEERING LTD 12/22/2022 $1,723.25 100 100-03-6110 SYNCB/AMAZON 12/22/2022 $137.25 100 100-41-6210 SYNCB/AMAZON 12/22/2022 $104.91 100 100-45-6110 SYNCB/AMAZON 12/22/2022 $59.96 100 100-46-6920 SYNCB/AMAZON 12/22/2022 $73.18 100 100-47-6110 SYNCB/AMAZON 12/22/2022 $372.74 400 400-00-6110 SYNCB/AMAZON 12/22/2022 $29.88 400 400-40-6110 SYNCB/AMAZON 12/22/2022 $13.28 620 620-00-6110 SYNCB/AMAZON 12/22/2022 $125.95 100 100-46-5110 TONYAN, LUCY 12/22/2022 $859.50 100 100-22-5310 UPS 12/21/2022 $12.48 100 100-04-5310 UPS 12/22/2022 $21.66 510 510-32-6110 USA BLUEBOOK 12/22/2022 $231.57 510 510-32-6110 USA BLUEBOOK 12/22/2022 $248.80 100 100-45-6110 WINDY CITY LIGHTS 12/22/2022 $89.00 510 510-32-5580 WINNEBAGO LANDFILL CO 12/22/2022 $1,390.80 100 100-01-5230 ZUKOWSKI ROGERS FLOOD & MCARDLE 01/02/2023 $580.00 100 100-01-5230 ZUKOWSKI ROGERS FLOOD & MCARDLE 12/22/2022 $13,875.00 100 100-01-5230 ZUKOWSKI ROGERS FLOOD & MCARDLE 12/22/2022 $6,395.88 100 100-01-5230 ZUKOWSKI ROGERS FLOOD & MCARDLE 12/22/2022 $11,961.12 100 100-01-5230 ZUKOWSKI ROGERS FLOOD & MCARDLE 12/22/2022 $7,491.37 226 100 100-01-5230 ZUKOWSKI ROGERS FLOOD & MCARDLE 12/22/2022 $6,479.32 100 100-01-5230 ZUKOWSKI ROGERS FLOOD & MCARDLE 12/22/2022 $18,813.25 100 100-01-5230 ZUKOWSKI ROGERS FLOOD & MCARDLE 12/22/2022 $6,579.90 100 100-01-8100 HERITAGE TITLE COMPANY 12/27/2022 $4,500.00 400 400-00-5375 AFFILIATED SERVICE 12/30/2022 $825.00 400 400-00-5375 AFFILIATED SERVICE 12/30/2022 $250.00 100 100-01-6110 ARAMARK REFRESHMENT SERVICES LLC 12/30/2022 $202.24 620 620-00-5320 AT&T 12/30/2022 $372.22 610 610-00-5980 BAKER & SON CO, PETER 12/30/2022 $309.10 100 100-45-5110 BERGGREN, LEE 12/30/2022 $8,365.00 100 100-03-5120 CINTAS CORPORATION LOC 355 12/30/2022 $95.86 100 100-33-4510 CINTAS CORPORATION LOC 355 12/30/2022 $306.70 100 100-33-6110 CINTAS CORPORATION LOC 355 12/30/2022 $498.70 510 510-32-4510 CINTAS CORPORATION LOC 355 12/30/2022 $1,303.12 100 100-33-5110 CLEARVIEW LANDSCAPE CONSTRUCTION, IN 12/30/2022 $3,962.40 100 100-45-5110 CLEARVIEW LANDSCAPE CONSTRUCTION, IN 12/30/2022 $23,032.00 100 100-33-5110 CLEARVIEW LANDSCAPE CONSTRUCTION, IN 12/30/2022 $3,600.00 100 100-33-5110 CLEARVIEW LANDSCAPE CONSTRUCTION, IN 12/30/2022 $180.00 510 510-31-5110 CLEARVIEW LANDSCAPE CONSTRUCTION, IN 12/30/2022 $1,424.00 510 510-32-5110 CLEARVIEW LANDSCAPE CONSTRUCTION, IN 12/30/2022 $1,061.60 620 620-00-5110 COMCAST CABLE 12/30/2022 $164.90 620 620-00-5110 COMCAST ENS 12/30/2022 $3,668.09 100 100-33-5520 COMED 12/30/2022 $72.82 100 100-45-5510 COMED 12/30/2022 $29.37 510 510-32-5510 COMED 12/30/2022 $23.53 510 510-32-5510 COMED 12/30/2022 $26.96 100 100-01-8200 CRESCENT ELECTRIC SUPPLY CO 12/30/2022 $161.52 100 100-01-8200 DOC'S DUMPSTERS, INC 12/30/2022 $905.60 100 100-33-6110 ED'S RENTAL & SALES INC 12/30/2022 $64.96 610 610-00-5980 FISCHER BROS FRESH 12/30/2022 $569.00 510 510-31-6110 FISCHER BROS FRESH 12/30/2022 $484.26 620 620-00-5110 FLESCH COMPANY INC, GORDON 12/30/2022 $495.00 510 510-31-6110 FPE AUTOMATION INC 12/30/2022 $87.01 100 100-22-4510 GALLS LLC 12/30/2022 $105.00 610 610-00-5980 GESKE AND SONS INC 12/30/2022 $35.28 510 510-32-5375 GRAINGER 12/30/2022 $444.92 100 100-33-5110 HRGREEN 12/30/2022 $200.00 100 100-33-6110 HRGREEN 12/30/2022 $3,775.00 100 100-22-5430 ILLINOIS TACTICAL OFFICERS ASSOCIATION 12/30/2022 $350.00 510 510-32-5110 IN-PIPE TECHNOLOGY COMPANY INC 12/30/2022 $8,525.00 440 440-00-8900 INTEGRITY ENVIRONMENTAL SERVICES, INC 12/30/2022 $1,920.00 440 440-00-8900 INTEGRITY ENVIRONMENTAL SERVICES, INC 12/30/2022 $15,200.00 280 280-41-8800 JUST IN TIME POOL & SPA 12/30/2022 $10,932.99 510 510-32-5375 KOMLINE-SANDERSON 12/30/2022 $1,185.14 510 510-32-5375 KOMLINE-SANDERSON 12/30/2022 $203.01 100 100-22-5110 LEXISNEXIS 12/30/2022 $117.00 100 100-47-6110 LIFEGUARD STORE INC, THE 12/30/2022 $930.00 100 100-33-5110 MEADE INC 12/30/2022 $207.14 100 100-33-5115 METRO DOOR AND DOCK INC 12/30/2022 $1,855.00 100 100-33-6115 MIDWEST ENVIRONMENTAL SALES CO INC 12/30/2022 $608.89 510 510-31-6110 MIDWEST METER INC 12/30/2022 $7,993.50 100 100-23-6210 MINUTEMAN PRESS OF MCH 12/30/2022 $39.38 620 620-00-5110 MITCHELL1 12/30/2022 $3,180.00 100 100-03-6250 PETROCHOICE LLC 12/30/2022 $136.67 100 100-03-6250 PETROCHOICE LLC 12/30/2022 $291.47 580 580-31-8500 ROBINSON ENGINEERING LTD 12/30/2022 $3,671.25 400 400-00-5375 SOUND OF MUSIC & VIDEO SYSTEMS 12/30/2022 $471.00 620 620-00-5110 US BANK EQUIPMENT FINANCE 12/30/2022 $598.56 227 620 620-00-5110 US BANK EQUIPMENT FINANCE 12/30/2022 $336.21 510 510-32-6110 USA BLUEBOOK 12/30/2022 $805.51 620 620-00-5320 VERIZON WIRELESS 12/30/2022 $2,659.80 100 100-21-5110 WAGNER INVESTIGATIVE POLYGRAPH SVS 12/30/2022 $150.00 510 510-35-6110 WATER PRODUCTS - AURORA 12/30/2022 $350.00 TOTAL:$863,224.41 228 Department of Public Works Troy Strange, P.E., Director of Public Works 1415 Industrial Drive McHenry, Illinois 60050 Phone: (815) 363-2186 Fax: (815) 363-2214 www.cityofmchenry.org 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. REGULAR AGENDA SUPPLEMENT DATE: January 16, 2023 TO: Mayor and City Council FROM: Troy Strange, P.E., Director of Public Works RE: Elm Street to Green Street Right of Way, Professional Engineering Services ATT: Concept Alignment Drawing Christopher B. Burke Engineering Ltd. Scope and Fee Proposal City of McHenry Engineering Contract Document for Execution Budget Amendment Ordinance ______________________________________________________________________________ AGENDA ITEM SUMMARY: Staff requests that the City Council consider exercising the City’s Home Rule Authority authorizing the Mayor to enter a contract with Christopher B. Burke Engineering, Ltd. (CBBEL) for Professional Engineering Services for the design of a municipal right of way between Green Street and Elm Street. Staff further requests City Council to consider the approval of a Budget Amendment and the award of a contract to Christopher B. Burke Engineering, Ltd. for Professional Engineering Services for the design of a municipal right of way between Green Street and Elm Street. BACKGROUND: Since 2019 the City of McHenry has been acquiring properties in the blocks bounded by Green Street, Elm Street, and the Boone Lagoon for the purposes of expanded parking for the City’s downtown entertainment district and the construction of a mixed-use development. Through internal deliberations and experiences with potential developers, staff has determined that the creation of a new municipal right of way which bisects the property will enhance the accessibility and feasibility for development of the site. Because the new alignment will require an access to the state route, which is closer than ideal to the intersection, developers have been cautious to invest heavily in performing due diligence on the property and proposed development. The securing of an entitlement to a proposed access will need to be done working through the permitting department at Illinois Department of Transportation (IDOT). Regardless of how this property develops, it is staff’s contention that the proposed right of way and access rights from IDOT will facilitate any future use of the parcel(s). Through it’s own efforts and discussions with developers, staff has determined that it would be in the City’s best interest to perform preliminary engineering on the proposed right of way alignment and work through the IDOT Permitting Department to secure an entitlement for the proposed access associated 229 with the right of way. This work will need to be performed through the assistance of a consulting firm. Because of the unique mix of IDOT permitting experience, public infrastructure, and private development engineering required, staff is recommending the selection of Christopher B. Burke Engineering to perform this proposed scope of services. CBBEL is not a prequalified firm on the City’s short list but is currently heavily involved in planning and design efforts for the downtown due to its involvement in the Downtown Streetscape Program. ANALYSIS: Staff has solicited a proposal and negotiated the proposed scope and fee with CBBEL based upon project requirements, budget, and schedule. CBBEL is proposing a scope and fee of $41,000.00 which includes all engineering work necessary to design the proposed right of way and secure Illinois Department of Transportation approval for the proposed connection with Illinois Route 120 (Elm Street). Staff has reviewed the proposed scope and fee and and has found it to be acceptable. Additionally, staff is currently working with a potential developer who is undisclosed at this time, that has agreed to pay half of all costs associated with the proposed scope and fee. These costs will be shared between the City and Developer who will be disclosed pending the final negotiation and execution of an Development Agreement. RECOMMENDATION: Therefore, if Council concurs, it is recommended that the City Council exercise the City’s Home Rule Authority authorizing the Mayor to enter a contract with Christopher B. Burke Engineering, Ltd. (CBBEL) for Professional Engineering Services for the design of a municipal right of way between Green Street and Elm Street. Staff further recommends that the City Council approve a Budget Amendment (Account 100-01-8900) and awards a contract in the amount of $41,000 (50% City, 50% Developer) to Christopher B. Burke Engineering, Ltd. for Professional Engineering Services for the d esign of a municipal right of way between Green Street and Elm Street. 230 Proposed City ROW (Elm to Green) Potential Development Area Proposed City ROW 231 CHRISTOPHER B. BURKE ENGINEERING, LTD. 9575 W Higgins Road, Suite 600 Rosemont, Illinois 60018-4920 Tel (847) 823-0500 Fax (847) 823-0520 November 23, 2022 City of McHenry – Public Works 1415 Industrial Drive McHenry, IL 60050 Attention: Troy Strange, PE Director of Public Works Subject: Professional Services Agreement IL 120 (Elm Street) and IL Route 31 (Richmond Road) McHenry, Illinois Dear Mr. Strange: Christopher B. Burke Engineering, Ltd. (CBBEL) is pleased to submit this proposal to provide professional engineering services in connection with the proposed development at the southwest corner of IL Route 120 (Elm Street) and IL Route 31 (Richmond Road) in McHenry, Illinois. The purpose of these services is to prepare a Traffic Impact Study (TIS) for submittal to IDOT and to develop conceptual geometry for the site access to IL Route 120 (Elm Street). UNDERSTANDING OF THE ASSIGNMENT The site will consist of an approximately 4.5-acre development parcel at the southwest corner of IL Route 120 (Elm Street) and IL Route 31 (Richmond Road) in McHenry, Illinois, according to information provided by the City. The City desires to develop the parcel and to secure ROW for the access roadway which would bisect the property and provide access to IL Route 120 (Elm Street) on the north and to Green Street on the east. The project will consist of preparing a TIS for submittal to IDOT and to develop conceptual geometry at the intersection of IL 120 (Elm Street) and the new access roadway. SCOPE OF SERVICES Task 1 – Data Collection: This task will include field reconnaissance, conducting traffic counts and developing base traffic conditions. CBBEL will perform field reconnaissance to verify existing conditions including speed limits, roadway network and intersection traffic control devices. Weekday morning and evening peak period traffic counts will be conducted at critical intersections in the site vicinity including IL Route 120 (Elm Street) at IL Route 31 232 2 (Richmond Road). The collected traffic count information will be used to develop the base traffic conditions. Task 2: Traffic Impact Study: CBBEL will prepare a TIS of the proposed development for IDOT approval. The TIS will be prepared based on an approved land plan to be provided by the City. The directional distribution of site-generated traffic on the adjacent street system will be estimated based on existing traffic count data collected in Task 1. The number of estimated trips that will be generated by the proposed development will be developed based on trip generation rates published by the Institute of Transportation Engineers (ITE). CBBEL will obtain CMAP concurrence for 2050 ADT volumes. Using the CMAP approved 2050 ADTs, CBBEL will develop the build plus five year Design Hourly Volumes (DHV) for the background traffic. Background peak hour traffic (non-site) will be combined with the peak period site-generated traffic and assigned to the critical intersections in the study area. The total assigned traffic will be used for evaluation purposes to identify roadway, access and internal circulation improvements that are necessary to accommodate the proposed development. As part of the traffic study, the site plan will be reviewed to determine the adequacy of on-site circulation, truck access and the ability of these elements to accommodate site traffic efficiently. CBBEL will prepare the technical traffic impact study report with our findings and recommendations for review/approval by IDOT. Task 3 – Conceptual Roadway Geometry: CBBEL will develop up to two conceptual geometric plans for the proposed site including the spine road based on the recommendations developed as part of Task 2 – Traffic Impact Study. The geometric plans will include proposed site access locations, lane usage and roadway improvements necessary to accommodate the proposed development. CBBEL will utilize aerial photos and any conceptual site plans to prepare the conceptual roadway plans. The plans will be prepared at a scale of 1”= 20’ and will include existing and proposed right of way, horizontal geometry, pavement markings and basic design elements. This information will be used to establish proposed conditions for the roadway and traffic signal improvements. The conceptual plan will be submitted to IDOT for concurrence. As part of this task, we will develop a preliminary opinion of probable construction cost for the roadway improvements. The opinion of cost will be developed after receipt of IDOT concurrence regarding the overall scope of the proposed improvements. Task 4 – Coordination with IDOT: CBBEL will meet with representatives from IDOT to review the overall project and to determine specific design criteria required by IDOT for the proposed roadway improvements. In addition, we will review with IDOT design review comments and permit requirements. We will attend up to four meetings for this task. 233 3 Task 5 - Consultation During the Design Process: We will meet with the City to advise as to the status of the project and concerns regarding specific design elements. The meetings will also serve to clarify specific design requirements that the City may want incorporated into the plans. We will attend up to four meetings for this task. ESTIMATED FEE We have estimated the fee for the tasks described in this proposal as follows. Task 1 - Data Collection $ 5,000 Task 2 - Traffic Impact Study $ 14,000 Task 3 - Conceptual Roadway Geometry $ 14,000 Task 4 - Coordination with IDOT $ 4,000 Task 5 - Consultation $ 4,000 Total $ 41,000 We will bill you at the hourly rates specified on the attached Schedule of Charges. We will establish our contract in accordance with the attached General Term and Conditions. These General Terms and Conditions are expressly incorporated into and are an integral part of this contract for professional services. Direct costs for blueprints, photocopying, mailing, mileage, overnight delivery, messenger services and report binding are not included in the Fee Estimate. Please note that meetings and additional services performed by CBBEL that are not included as part of this proposal will be billed on a time and materials basis and at the attached hourly rates. Please sign and return one copy of this agreement as an indication of acceptance and notice to proceed. Please feel free to contact us anytime. Sincerely, Michael E. Kerr, PE President Encl. Schedule of Charges General Terms and Conditions THIS PROPOSAL, GENERAL TERMS AND CONDITIONS, AND SCHEDULE OF CHARGES ACCEPTED FOR CITY OF MCHENRY BY: _______________________________________ TITLE: _______________________________________ DATE: _______________________________________ N:\PROPOSALS\ADMIN\2022\McHenry City of IL 31-IL 120\McHenry IL 120-IL31 11232022.doc 234 City of McHenry Professional Services Contract Revised 5/22/17 Professional Services Contract Between The City Of McHenry And CHRISTOPHER B. BURKE ENGINEERING, LTD. For Engineering Services For Riverside Drive Streetscape Project 235 City of McHenry Professional Services Contract Revised 5/22/17 Professional Services Contract Between The City of McHenry And CHRISTOPHER B. BURKE ENGINEERING, LTD. For Professional Engineering Services For Green Street to Elm Street ROW TABLE OF CONTENTS Page ARTICLE 1. THE SERVICES ........................................................................................................ 1 1.1 Intent ........................................................................................................................ 1 1.2 Services .................................................................................................................... 1 1.3 Project Time ............................................................................................................ 1 1.4 Term; Extensions ..................................................................................................... 1 1.5 Other Contracts ........................................................................................................ 1 1.6 Responsibility of Consultant to Perform ................................................................. 1 1.7 Financial Ability to Perform. ................................................................................... 2 ARTICLE 2. COMPENSATION AND PAYMENT ...................................................................... 2 2.1 Pricing Schedule ...................................................................................................... 2 2.2 Monthly Payment; Invoices ..................................................................................... 2 2.3 Taxes ........................................................................................................................ 2 2.4 Final Payment. ......................................................................................................... 2 2.5 Deductions ............................................................................................................... 3 2.6 Use of Deducted Funds ........................................................................................... 3 2.7 Keeping Books and Accounts.................................................................................. 3 ARTICLE 3. PERFORMANCE OF SERVICES ............................................................................ 3 3.1 Standard of Performance ......................................................................................... 3 3.2 Correction of Defects............................................................................................... 3 3.3 Risk of Loss ............................................................................................................. 4 3.4 Opinions of Probable Cost ....................................................................................... 4 3.5 City Responsibilities ................................................................................................ 4 3.6 Time of the Essence. ................................................................................................ 5 236 City of McHenry Professional Services Contract Revised 5/22/17 3.7 Suspension of Services ............................................................................................ 5 ARTICLE 4. SERVICES CHANGE ORDERS; DELAYS ............................................................ 5 4.1 Services Change Orders .......................................................................................... 5 4.2 Revision Notices ...................................................................................................... 5 4.3 No Change in Absence of Services Change Order .................................................. 5 4.4 Delays ...................................................................................................................... 5 ARTICLE 5. INSURANCE ............................................................................................................ 6 5.1 Insurance.................................................................................................................. 6 5.2 Scope of Coverage; Minimum Limits of Coverage................................................. 6 5.3 Deductibles and Self-Insured Retentions ................................................................ 6 5.4 Additional Requirements ......................................................................................... 6 5.5 Verification of Coverage ......................................................................................... 7 5.6 Sub-Consultants and Suppliers ................................................................................ 8 ARTICLE 6. INDEMNIFICATION ............................................................................................... 8 6.1 Agreement to Indemnify.......................................................................................... 8 6.2 No Limit Based on Insurance .................................................................................. 8 6.3 Withholding Payment .............................................................................................. 8 6.4 Limit on Duty to Indemnify ..................................................................................... 8 ARTICLE 7. ARBITRATION ........................................................................................................ 8 7.1 Arbitration ............................................................................................................... 8 ARTICLE 8. TERMINATION........................................................................................................ 9 8.1 Contract is At-Will. ................................................................................................. 9 8.2 Termination by City for Breach. .............................................................................. 9 8.3 City Remedies .......................................................................................................... 9 8.4 Termination by Consultant for Breach. ................................................................... 9 ARTICLE 9. LEGAL RELATIONSHIPS AND GENERAL REQUIREMENTS ......................... 9 9.1 Consultant as Independent Consultant .................................................................. 10 9.2 Compliance with Laws; Communications with Regulators .................................. 10 9.3 Permits and Licenses ............................................................................................. 10 9.4 Safety; Hazardous Materials .................................................................................. 10 9.5 Ownership of Data and Documents ....................................................................... 10 9.6 Notices ................................................................................................................... 10 9.7 No Waiver by City. ................................................................................................ 10 9.8 No Third-Party Beneficiaries ................................................................................. 11 237 City of McHenry Professional Services Contract Revised 5/22/17 9.9 Survival of Terms .................................................................................................. 11 9.10 Assignments. ......................................................................................................... 11 9.11 Amendments .......................................................................................................... 11 9.12 Governing Law ...................................................................................................... 11 9.13 Compliance with Laws, Grant Regulations ........................................................... 11 9.14 Representation of No Conflicts ............................................................................. 11 9.15 No Collusion. ......................................................................................................... 11 238 City of McHenry Professional Services Contract -1- Professional Services Contract Between The City of McHenry And CHRISTOPHER B. BURKE ENGINEERING, LTD. For Professional Engineering Services For Riverside Drive Streetscape Project This contract (the “Contract”) is dated as of July 18, 2022 (the “Effective Date”) and is by and between the City of McHenry, an Illinois municipal corporation, (the “City”) and CHRISTOPHER B. BURKE ENGINEERING, LTD. (the “Consultant”). In consideration of the mutual covenants and promises contained herein, the parties agree as follows: ARTICLE 1. THE SERVICES 1.1 Intent. It is the intent of the parties that this Contract govern the relationship of the parties. 1.2 Services. The Consultant will perform for the City the following services (the “Services”): Engineering Scope of Services included in the attached Scope and Fee dated November 23, 2022 (Pages 1-3). 1.3 Project Time. The Services will be performed according to the following schedule (“Project Schedule”): NA The Services will be completed on or before December 31, 2023 (the “Completion Date”). The Completion Date shall be effective for substantial completion all design services. Bidding Services and Construction Support shall be completed after the date of substantial completion in coordination with construction of the project. 1.4 Term; Extensions. This Contract commences on the Effective Date and terminates on December 31, 2024 unless terminated earlier pursuant to Article 8 of this Contract (the “Term”). All terms of this Contract, including without limitation pricing terms, are firm during the Term, unless as embodied in an amendment to this Contract in accordance with Section 9.15. The Parties may extend this Contract for two additional one-year periods (each an “Extended Term”). Pricing terms may be adjusted by written agreement at the beginning of an Extended Term. 1.5 Other Contracts. The City may enter into agreements with other consultants, pursuant to which the City may award work from time to time at the City’s discretion. 1.6 Responsibility of Consultant to Perform. The Consultant must provide all personnel necessary to complete the Services. The Consultant must perform the Services with its own personnel and under the management, supervision, and control of its own organization unless otherwise approved by the City in writing. All sub-consultants and supplies used by the Consultant in the performance of Services must be acceptable to, and approved in advance by, the City. The City’s approval of any sub-consultant or supplier will not relieve the Consultant of full responsibility and liability for the provision, performance, and completion of the Services in full compliance with, and 239 City of McHenry Professional Services Contract -2- as required by or pursuant to, this Contract. All Services performed by any sub-consultant or supplier are subject to all of the provisions of this Contract in the same manner as if performed directly by the Consultant. If any sub-consultant or supplier fails to properly perform any Services undertaken by it in compliance with this Contract, then the Consultant, immediately on notice from the City, must remove that sub-consultant or supplier and undertake the Services itself or replace the sub - consultant or supplier with a sub-consultant or supplier acceptable to the City. The Consultant will have no claim for damages, for compensation in excess of the Compensation, or for delay or extension of the Project Schedule as a result of any such removal or replacement. 1.7 Financial Ability to Perform. When executing this Contract, the Consultant represents and declares that it is financially solvent, has the financial resources necessary, has sufficient experience and competence, and has the necessary capital, facilities, organization, and staff necessary to provide, perform, and complete the Services set forth in this Contract in full compliance with, and as required by or pursuant to, this Contract. ARTICLE 2. COMPENSATION AND PAYMENT 2.1 Pricing Schedule. As compensation for the performance of the Services (“Compensation”), the City will pay the Consultant the following amounts and in the following manner: Time and Material Basis Not-To-Exceed $41,000 Fee included in attached Scope and Fee Dated November 23, 2022 (Page 3). Except for the Compensation, the City will have no liability for any expenses or costs incurred by the Consultant. 2.2 Monthly Payment; Invoices. The Compensation will be paid in monthly installments. The Consultant must submit to the City, on a monthly basis, a written invoice for payment for completed work. The City may specify the specific day of the month on or before which invoices must be filed. Each invoice must be accompanied by receipts, vouchers, and other documents as necessary to reasonably establish the Consultant’s right to payment of the Compensation stated in the invoice. In addition, each invoice must include (a) employee classifications, rates per hour, and hours worked by each classification and, if the Services are to be performed in separate phases, for each phase, (b) total amount billed in the cur rent period and total amount billed to date and, if the Services are to be performed in separate phases, for each phase, and (c) the estimated percent completion of the Services and, if the Services are to be performed in separate phases, for each phase. 2.3 Taxes. The Compensation includes applicable federal, State of Illinois, and local taxes of every kind and nature applicable to the services provided by the Consultant and all taxes, contributions, and premiums for unemployment insurance, old age or retirem ent benefits, pensions, annuities, or other similar benefits. The Consultant will never have a claim or right to claim additional compensation by reason of the payment of any such tax, contribution, premium, costs, royalties, or fees. 2.4 Final Payment. The Services will be considered complete on the date of final written acceptance by the City of the Services or the relevant phase of the Services. Services related to a submission of the Consultant will be deemed accepted by the City if the City does not object to those 240 City of McHenry Professional Services Contract -3- Services in writing within 30 days after the submission by the Consultant of an invoice for final acceptance and payment The City will make final payment to the Consultant within 30 days after final acceptance of the Services, after deducting therefrom charges, if any, as provided in this Contract (“Final Payment”). The acceptance by the Consultant of Final Payment will operate as a full and complete release of the City by the Consultant of and from any and all lawsuits, claims, or demands for further payment of any kind for the Services encompassed by the Final Payment. 2.5 Deductions. Notwithstanding any other provision of this Contract, the City may deduct and withhold from any payment or from Final Payment such amounts as may reasona bly appear necessary to compensate the City for any loss due to (1) Services that are defective, nonconforming, or incomplete, (2) liens or claims of lien, (3) claims against the Consultant or the City made by any of the Consultant’s sub-consultants or suppliers or by other persons about the Services, regardless of merit, (4) delay by the Consultant in the completion of the Services, the cost to the City, including without limitation reasonable attorneys’ fees, of enforcing the terms of this Contract. The City will notify the Consultant in writing of the City’s determination to deduct and withhold funds, which notice will state with specificity the amount of, and reason or reasons for, such deduction and withholding. 2.6 Use of Deducted Funds. The City will be entitled to retain any and all amounts withheld pursuant to Section 2.5 above until the Consultant either has performed the obligations in question or has furnished security for that performance satisfactory to the City. The City will be entitled to apply any money withheld or any other money due to the Consultant to reimburse itself for any and all costs, expenses, losses, damages, liabilities, suits, judgments, awards, and reasonable attorneys’ fees (collectively “Costs”) incurred, suffered, or sustained by the City and chargeable to the Consultant under this Contract. 2.7 Keeping Books and Accounts. The Consultant must keep accounts, books, and other records of all its billable charges and costs incurred in performing Services in accordance with generally accepted accounting practices, consistently applied, and in such manner as to permit verification of all entries. The Consultant must make all such material available for inspection by the City, at the office of the Consultant during normal business hours during the Term and for a period of five years after termination of this Contract. Copies of such material must be furnished to the City at the City’s request and expense. ARTICLE 3. PERFORMANCE OF SERVICES 3.1 Standard of Performance. The Consultant must perform the Services in a manner consistent with the degree of care and skill ordinarily exercised by members of the same profession currently practicing under similar circumstances in the Chicago Metropolitan Region (“Standard of Performance”). The Consultant is fully and solely responsible for the quality, technical accuracy, completeness, and coordination of all Services. All plans and other documents furnished by the Consultant shall be endorsed and stamped with professional seals when such seals are required by law. 3.2 Correction of Defects. The Consultant must provide, for no additional Compensation and at no separate expense to the City, all work required to correct any defects or deficiencies in the performance of Services, regardless of whether the defect or deficiency relates to the work of the Consultant or of the Consultant’s sub-consultants or suppliers. 241 City of McHenry Professional Services Contract -4- 3.3 Risk of Loss. The Consultant bears the risk of loss in providing all Services. The Consultant is responsible for any and all damages to property or persons arising from any Consultant error, omission, or negligent act and for any losses or costs to repair or remedy any work undertaken by the City based on the Services as a result of any such error, omission, or negligent act. Notwithstanding any other provision of this Contract, the Consultant’s obligations under this Section 3.3 exist without regard to, and may not be construed to be waived by, the availability or unavailability of any insurance, either of the City or the Consultant, to indemnify, hold harmless, or reimburse the Consultant for damages, losses, or costs. 3.4 Opinions of Probable Cost. The Parties recognize that neither the Consultant nor the City has control over the costs of labor, materials, equipment, or services furnished by others or over competitive bidding, market or negotiating conditions, or construction contractors’ methods of determining their prices. Accordingly, any opinions of probable costs provided under this Contract are considered to be estimates only, made on the basis of the Consultant’s experience and qualifications, and those opinions represent the Consultant’s best judgment as an experienced and qualified professional, familiar with the industry. The Consultant does not guar anty that proposals, bids, or actual costs will not vary from the opinions prepared by the Consultant. 3.5 City Responsibilities. The City, at its sole cost and expense, will have the following responsibilities: (a)To designate in writing a person with authority to act as the City’s representative with respect to the Services. In the absence of a written designat ion, the City’s representative will be the City Administrator. The City’s representative will have the authority to act on behalf of the City except on matters that require approval of the City Council. (b)To provide to the Consultant all criteria and information about the requirements for the Services, including, as relevant, the City’s objectives and constraints, schedule, space, capacity and performance requirements, and budgetary limitations. (c)To provide to the Consultant existing studies, reports, and other available data relevant to the Services. (d)To arrange for access to, and make provisions for the Consultant to enter on, public and private property as reasonably required for the Services. (e)To provide, as relevant, surveys describing physical characteristics, legal limitations, and utility locations for the Services and the services of other consultants when the services of other consultants are requested by the Consultant and are necessary for the performance of the Services. (f)To provide structural, mechanical, chemical, air and water tests, tests for hazardous materials, and other laboratory and environmental tests, inspections, and reports required by law to be provided by the City in connection with the Services, except the extent such tests, inspections, or reports are part of the Services. (g)To review reports, documents, data, and all other information presented by the Consultant as appropriate. (h)To provide approvals from all governmental authorities having jurisdiction over the Services when requested by the Consultant, except the extent such approvals are part of the Services. 242 City of McHenry Professional Services Contract -5- (i)To provide, except as provided under Article 5 and Article 6 of this Contract, all accounting, insurance, and legal services as may be necessary from time to time in the judgment of the City to protect the City’s interests with respect to the Services. (j)To attend meetings related to the Services. (k)To give prompt written notice to the Consultant whenever the City observes or otherwise becomes aware of any development that affects the scope or timing of Services, except that the inability or failure of the City to give any such a notice will not relieve the Consultant of any of its responsibilities under this Contract. 3.6 Time of the Essence. Time is of the essence for the Services and all activities with regard to the performance of the Services. 3.7 Suspension of Services. The City, at any time and for any reason, may suspend work on any or all Services by issuing a written work suspension notice to the Consultant. The Consultant must stop the performance of all Services within the scope of the suspension notice until the City directs the Consultant in writing to resume performance. ARTICLE 4. SERVICES CHANGE ORDERS; DELAYS 4.1 Services Change Orders. The City, from time to time, may issue a written order modifying or otherwise changing the scope of the Services included in a Services Change Order (a “Services Change Order”). Any Services Change Order in an amount exceeding $10,000 must be approved by the City Council. The Services Change Order will be generally in the form attached to and by this reference incorporated into this Contract as Attachment A. The Consultant may request a Services Change Order based on a claimed material change to any Services performed under this Contract. A Services Change Order may include additions to and deletions from the Services and will include requested equitable increases or decreases to the Compensation. 4.2 Revision Notices. Within three (3) days after the date of a Services Change Order, and in any event before the Consultant begins work on any changed Services, the Consultant must notify the City in writing if the Consultant desires a revision to the Services Change Order (a “Revision Notice”). The Revision Notice must clearly state the Consultant’s requested revisions and the reasons for the revisions. If the City agrees to any revision, then the City will issu e a revised Services Change Order in a form acceptable to the Parties. If the Consultant does not submit a Revision Notice within the (3) -day period, then the Consultant will be deemed to have accepted the Services Change Order and the Services Change Ord er will be final. 4.3 No Change in Absence of Services Change Order. No claim for an adjustment in Compensation or Project Schedule will be made or allowed unless it is embodied in a Services Change Order signed by the City and the Consultant. If the Consultant believes it is entitled to an adjustment in the Compensation or Project Schedule terms that has not been included, or fully included, in a Services Change Order, then the Consultant may submit to the City a written request for the issuance of, or revision of, a Services Change Order including the desired adjustment. The Consultant’s request must be submitted before the Consultant proceeds with any Services for which an adjustment is desired. 4.4 Delays. If a delay in providing Services results from one or more causes that could not be avoided or controlled by the Consultant, then the Consultant may be entitled to an extension of the Project Schedule for a period of time equal to that delay, or an adjustment in Compensation for extra costs related to the delay, or both. The Consultant must notify the City in writing within 3 days after the start of the delay and again in writing within 3 days after the delay has ended (the 243 City of McHenry Professional Services Contract -6- “Delay Period ”). The first notice must state the cause or causes of the delay and the impact of the delay on providing Services. The second notice must state the cause or causes of the delay, the length of the day, the reasons why the delay disrupted performance of the Services and the Consultant’s request, if any, for a change in Compensation or Project Schedule. If the Consultant fails to submit notices as provided in this Section 4.5, then the Consultant will be deemed to have waived any right to an adjustment in Compensation for the Services. ARTICLE 5. INSURANCE 5.1 Insurance. The Consultant must procure and maintain, for the duration of this Contract, insurance as provided in this Article 5. 5.2 Scope of Coverage; Minimum Limits of Coverage. (a) Commercial General Liability. Insurance Services Office (“ISO”), or reasonable equivalent, Commercial General Liability occurrence form CG 0001, with the City and its officials, officers, employees, and agents named as additional insured on Insurance Service Office (ISO) Additional Insured Endorsement CG 2010 (Exhibit A) or CG 2026 (Exhibit B). Coverage must be at least $1,000,000 combined single limit per occurrence for bodily injury and for property damage and $1,000,000 per occurrence for personal injury. The general aggregate must be twice the required occurrence limit. Minimum General Aggregate must be no less than $2,000,000 or a project- contract specific aggregate of $1,000,000. (b) Automobile Liability. Insurance Service Office Business Auto Liability coverage form number CA 0001, Symbol 01 “Any Auto.” Coverage must be at least $1,000,000 combined single limit per accident for bodily injury and property damage. (c) Professional Liability. Indemnification and for injury or damage arising out of negligent acts, errors, or omissions in providing professional services, including without limitation: (i)preparing, approving, or failure to prepare or approve maps, drawings, opinions, report, surveys, designs or specifications and (ii) providing direction, instruction, supervision, inspection, or engineering services or failing to provide them, if that is the primary cause of injury or damage. Coverage must be at least $5,000,000 each claim with respect to negligent acts, errors, and omissions in connection with all professional services to be provided under th is Contract. (d) Workers’ Compensation and Employers’ Liability . Workers’ Compensation as required by the Workers’ Compensation Act of the State of Illinois and Employers’ Liability insurance. Coverage must be at least Workers’ Compensation Coverage with statutory limits and Employers’ Liability limits of $500,000 per accident. 5.3 Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions must be declared to and approved by the City. At the option of the City, either the insurer must reduce or eliminate such deductibles or self-insured retentions with respect to the City and its officials, officers, employees, and agents or the Consultant must procure a bond guaranteeing payment of losses and related investigation, claim administration, and Consultant defense expenses. 5.4 Additional Requirements. The insurance policies must contain, or be endorsed to contain, the following provisions: (a)Commercial General Liability and Automobile Liability Coverage. The City and its officials, officers, employees must be covered as additional insured as respects: liability arising out of the Consultant’s work, including without limitation activities performed by or on behalf of the Consultant and automobiles owned, leased, hired, or borrowed by the Consultant. Coverage must 244 City of McHenry Professional Services Contract -7- contain no special limitations on the scope of protection afforded to the City or its officials, officers, employees, and agents. (b) Primary Coverage. The insurance coverage must be primary with respect to the City and its officials, officers and employees. Any insurance or self-insurance maintained by the City and its officials, officers, employees, and agents will be excess of the Consultant’s insurance and will not contribute with it. (c) Severability of Interests/Cross Liability. The insurance must contain a Severability of Interests/Cross Liability clause or language stating that the insurance will apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer’s ability. (d) Umbrella Policies. If any commercial general liability insurance is being provided under an excess or umbrella liability policy that does not “follow form,” then the Consultant must name the City and its officials, officers and employees, as additional insured under the umbrella policy. (e) Occurrence Form. All general liability coverage must be provided on an occurrence policy form. Claims-made general liability policies are not acceptable. (f) Workers’ Compensation and Employers’ Liability Coverage. The insurer must agree to waive all rights of subrogation against the City and its officials, officers, employees, a nd agents for losses arising from work performed by the Consultant. (g) Professional Liability. If the policy is written on a claims-made form, the retroactive date must be equal to or preceding the effective date of this Contract. If the policy is cancelled, non- renewed, or switched to an occurrence form, then the Consultant must purchase supplemental extending reporting period coverage for a period of not less than three years after the date of substantial completion. (h) All Coverage. Each insurance policy required must have the City expressly endorsed onto the policy as a Cancellation Notice Recipient. If a policy is canceled before the expiration date of that policy, then notice must be delivered to the Ci ty in accordance with the policy provisions prior to the expiration date. (i) Acceptability of Insurers. Insurance must be placed with insurers with a Best’s rating of no less than A-, VII and licensed to do business in the State of Illinois. (j) Waiver of Limitation. The Consultant hereby agrees to waive any limitation as to the amount of contribution recoverable against it by the City. This specifically includes any limitation imposed by any state statute, regulation, or case law including any Workers’ Compensation Act provision that applies a limitation to the amount recoverable in contribution, such as Kotecki v. Cyclops Welding. Each sub-consultant also must agree to this waiver. 5.5 Verification of Coverage. The Consultant must furnish the City with certificates of insurance naming the City and its officials, officers, employees, and agents as additional insured and with original endorsements affecting coverage required by this Article 5. The certificates and endorsements for each insurance policy must be signed by a person authorized by that insurer to bind coverage on its behalf. The certificates and endorsements may be on forms provided by the City or may be ISO Additional Insured Endorsements CG 2010 or CG 2026 , or reasonable equivalent, and in any event must be received and approved by the City before any work commences. The City reserves the right to request a full certified copy of each insurance policy and endorsement. 245 City of McHenry Professional Services Contract -8- 5.6 Sub-Consultants and Suppliers. The Consultant must include all sub-consultants as insured under its policies or must furnish separate certificates and endorsements for each sub - consultant. All coverage for sub-consultants are subject to all of the requirements stated in this Article 5. ARTICLE 6. INDEMNIFICATION 6.1 Agreement to Indemnify. To the fullest extent permitted by law, the Consultant hereby agrees to indemnify and, at the City’s request, defend the City and its officials, employees, agents, and representatives (collectively the “Indemnified Parties”) against all injuries, deaths, loss, damages, claims, patent claims, lawsuits, liabilities, judgments, costs, and expenses, including attorney fees incurred by the City (collectively “Claims”), that may in any way accrue against the Indemnified Parties or any one of them arising in whole, or in part, or in consequence of the negligent or intentionally tortious performance of any services by the Consultant or its employees or sub - consultants or that may in any way result therefrom, except only Claims arising out of the sole legal cause of the City. In addition, Consultant hereby agrees to indemnify the City with regard to any damages, costs and expenses, including attorney fees incurred by the City for any failure by the Consultant to comply with insurance reporting provisions of any Consultant insurance policy adversely affecting coverage provided to the indemnified parties. 6.2 No Limit Based on Insurance. The Consultant expressly acknowledges and agrees that any performance bond or insurance policy required by this Contract, or otherwise provided by the Consultant, will in no way limit the responsibility to indemnify and defend the Indemnified Parties or any one of them. 6.3 Withholding Payment. To the extent that any payment is due to the Consultant under this Contract, the City may withhold that payment to protect itself against any Indemnified Claims until all claims, suits, or judgments have been settled or discharged and evidence to that effect has been furnished to the satisfaction of the City. 6.4 Limit on Duty to Indemnify. The Consultant is not required to indemnify an Indemnified Party to the extent a Claim resulted solely from the negligence or willful misconduct of the Indemnified Party. ARTICLE 7. ARBITRATION 7.1 Arbitration. Any controversy or claim arising out of or relating to this Contract, or the breach thereof, shall be settled by binding arbitration administered by the American Arbitration Association under its Construction Industry Arbitration Rules or JAMS Dispute Re solution, as determined in the exclusive discretion of the City, at 333 N. Green St. McHenry, Illinois, and judgment on the award rendered by the arbitrator may be entered in any court having jurisdiction thereof. The parties agree that an arbitration award by default may be entered upon the party failing to appear or defend itself in any arbitration proceeding. In the event of any arbitration or litigation of this Contract, the non-prevailing party, as det ermined by the arbiter or court, shall pay all expenses incurred by the prevailing party, including, but not limited to (a) attorney’s fees, (b) filing costs, (c) witness fees, and (d) other general expenses of arbitration or litigation. 246 City of McHenry Professional Services Contract -9- ARTICLE 8. TERMINATION 8.1 Contract is At-Will. This Contract is at-will and may be terminated by the City at any time at the City’s convenience, without reason or cause. If the City terminates this Contract without reason or cause, then the Consultant will be entitled to Compensation for all Service performed by the Consultant up to the date of termination. The Consultant is not entitled to any consequential damages, including without limitation for lost profit, for any Services not performed by the Consultant. 8.2 Termination by City for Breach. The City at any time, by written notice providing Consultant with 10 days’ to cure any alleged breach hereof, may terminate this Contract of breach by the Consultant and of one or more terms of this agreement. “Breach” by the Consultant includes (a) failure of the Consultant to adhere to any terms or conditions of this Contract, (b) failure of the Consultant to properly perform Services, (c) or failure of the Consultant to maintain progress in the performance of Services so as to endanger proper performance of the Services within th e Project Schedule, (d) failure of the Consultant to have or maintain adequate resources to complete any Services. 8.3 City Remedies. If the City terminates this Contract for Breach by the Consultant, then the City will have the right, at its election and without prejudice to any other remedies provided by law or equity, to pursue any one or more of the following remedies: (a) The City may recover from the Consultant any and all costs, including without limitation reasonable attorneys’ fees, incurred by the City as the result of any Breach or as a result of actions taken by the City in response to any Breach. (b) The City may withhold any or all outstanding Compensation to reimburse itself or pay for any and all costs, including without limitation reasonable att orneys’ fees, incurred by the City as the result of any Breach or as a result of actions taken by the City in response to any Breach. In that event, the City will pay any excess funds to the Consultant, if any, after all of the City’s costs are reimbursed or paid. If the Compensation withheld by the City is insufficient to reimburse the City for, or pay, all costs, then the City will has the right to recover directly from the Consultant a sum of money sufficient to reimburse itself, or pay, all remaining costs. 8.4 Termination by Consultant for Breach. The Consultant at any time, by written notice, terminate this Contract on account of failure by the City to properly pay the Consultant and failure of the City to cure the breach within 10 days after that written notice or such further time as the Consultant may agree, in the Consultant’s sole discretion, in response to a written notice from the City seeking additional time to cure. ARTICLE 9. LEGAL RELATIONSHIPS AND GENERAL REQUIREMENTS 9.1 Consultant as Independent Consultant. For purposes of this Contract, the Consultant is an independent consultant and is not, and may not be construed or deemed to be an employee, agent, or joint venturer of the City. 9.2 Communications with Regulators. Any written communication by Consultant directly with applicable governmental regulatory agencies with regard to Services shall be copied to 247 City of McHenry Professional Services Contract -10- the City. 9.3 Permits and Licenses. The Consultant must obtain and pay for all permits and licenses, registrations, qualifications, and other governmental authorizations required by law that are associated with the Consultant’s performance of Services. 9.4 Safety; Hazardous Materials. (a)Protection of Health, Environment. The Consultant’s personnel must be experienced and properly trained to perform the Services and must take adequate precautions to protect human health and the environment in the performance of Services. (b)Notice of Hazardous Conditions. If the Consultant observes a potentially hazardous condition relating to the Services, then the Consultant must bring that condition to the attention of the City. (c)Hazardous Materials. The Consultant acknowledges that there may be hazardous substances, wastes, or materials as defined by applicable Law (“Hazardous Ma terials”) at a project site or otherwise associated with Services, and the Consultant under those circumstances must take appropriate precautions to protect its employees, sub -consultants, and suppliers. 9.5 Ownership of Data and Documents. All data and information, regardless of its format, developed or obtained under this Contract (collectively “Data”), other than the Consultant’s confidential information, will be and remain the sole property of the City. The Consultant must promptly deliver all Data to the City at the City’s request. The Consultant is responsible for the care and protection of the Data until that delivery. The Consultant may retain one copy of the Data for the Consultant’s records subject to the Consultant’s continued compliance with the pro visions of this Article. The City hereby indemnifies the Consultant for damages caused by the City ’s misuse or reuse of Data not originally intended. 9.6 Notices. Any notice or communication required by this Contract will be deemed sufficiently given if in writing and when delivered personally or upon receipt of registered or certified mail, postage prepaid, with the U.S. Postal Service and addressed as follows: If to the City: with a copy to: City Administrator Public Works Director City of McHenry Public Works Department 333 S. Green Street 1415 Industrial Drive McHenry, Illinois 60050 McHenry, Illinois 60050 If to the Consultant: with a copy to: Michael E. Kerr Christopher B. Burke Engineering, Ltd. 9575 West Higgins Rd, Suite 600 Rosemont, IL 60018 or to such other address as the party to whom notice is to be given has furnished in writing. 9.7 No Waiver by City. No act, order, approval, acceptance, or payment by the City, nor any delay by the City in exercising any right under this Contract, will constitute or be deemed to be 248 City of McHenry Professional Services Contract -11- an acceptance of any defective, damaged, flawed, unsuitable, nonconforming, or incomplete Services or operate to waive any requirement or provision of this Contract or any remedy, power, or right of the City. 9.8 No Third-Party Beneficiaries. This Contract is for the benefit of the City and the Consultant only and there can be no valid claim made or held against the City or the Consultant by any third party to be a beneficiary under this Contract. 9.9 Survival of Terms. The following sections will survive the termination of this Contract: 2.7, 3.2, 6.1, 8.4, 9.7, 9.8, and 9.9. 9.10 Assignments. The Consultant may not assign or transfer any term, obligation, right, or other aspect of this Contract without the prior express written consent of the City. If any aspect of this Contract is assigned or transferred, then the Consultant will remain responsible to the City for the proper performance of the Consultant’s obligations under this Contract. The terms and conditions of any agreement by the Consultant to assign or transfer this Contract must include terms requiring the assignee or transferee to fully comply with this Contract unless otherwise authorized in writing by the City. 9.11 Amendments. This Contract may be amended only in writing executed by the City and the Consultant. 9.12 Governing Law. The validity, construction, and performance of this Contract and all disputes between the par ties arising out of or related to this Contract will be governed by the laws of the State of Illinois without regard to choice or conflict of law rules or regulations. 9.13 Compliance with Laws, Grant Regulations. All Services must be provided, performed, and completed in accordance with all applicable governmental permits, licenses, or other approvals and authorizations, and with applicable statutes, ordinances, rules, and regulations. The Consultant also must comply with applicable conditions of any federal, state, or local grant received by the City with respect to this Contract. The Consultant will be solely responsible for any fines or penalties that may be imposed or incurred by a governmental agency with jurisdiction over the Services as a result of the Consultant’s improper performance of, or failure to properly perform, any Services. 9.14 Representation of No Conflicts. The Consultant represents that, to the best of its knowledge, (1) no City employee or agent is financially interested, directly or indirectly, in the business of the Consultant or this Contract, (2) as of the Effective Date neither the Consultant nor any person employed by the Consultant has any interest that would conflict in any manner or degree with the performance of the obligations under this Contract, and (3) neither the Consultant nor any person employed by or associated with the Consultant may at any time during the Term obtain or acquire any interest that would conflict in any manner or degree with the performance of the obligations under this Contract. 9.15 No Collusion. The Consultant represents that the Consultant is not barred from contracting with a unit of state or local government as a result of (1) a delinquency in the payment of any tax administered by the Illinois Department of Revenue unless the Consultant is properly contesting its liability for the tax or the amount of the tax or (2) a violation of either Section 33E -3 or Section 33E-4 or Article 33E of the Criminal Code of 1961, 720 ILCS 5/22E-1 et seq. The Consultant represents that the only persons, firms, or corporations interested in this Agreement as principals are those disclosed to the City prior to the execution of this Contract and that this Contract is made without collusion with any other person, firm, or corporation. 249 City of McHenry Professional Services Contract -12- WHEREFORE, the City and the Consultant have caused this Contract to be executed by their duly authorized representatives as of the Effective Date. CITY OF MCHENRY By: Name: _________ _____________________________ Title: _______________________________________ Date: _______________________________________ CHRISTOPHER B. BURKE ENGINEERING, LTD. By: Name: _______________________________________ Title: _______________________________________ Date: _______________________________________ 250 City of McHenry Professional Services Contract -1- ATTACHMENT A SERVICES CHANGE ORDER NO. In accordance with Section 4.1 of the Contract dated , 20 between the City and the Consultant, the Parties agree to the following Services Change Order: 1. Change in Services: 2. Change in Project Schedule (attach schedule if appropriate): 3. Change in Completion Date: All Services must be completed on or before: , 20 4. Change in Compensation: ALL OTHER TERMS AND CONDITIONS OF THE CONTRACT REMAIN UNCHANGED. CITY CONSULTANT [City’s project representative] Signature Name (Printed or Typed) , 20 , 20 Date Date If compensation change greater than $10,000, then City Administrator signature required. , 20 . City Administrator Date If compensation change greater than $20,000, then City Council approval and Mayor signature required. , 20 . Mayor Date 251 ORDINANCE N O. 23- AN ORDINANCE AMENDING THE FY202 2 /2023 BUDGET FOR THE FISCAL YEAR ENDING APRIL 30, 20 23 WHEREAS, the City of McHenry, McHenry County, Illinois, is a home rule municipality as contemplated under Article VII, Section 6, of the Constitution of the State of Illinois, and the passage of this Ordinance constitutes an exercise of the City’s home rule powers and functions as granted in the Constitut ion of the State of Illinois; and WHEREAS, the City of McHenry acting by and through its Mayor and City Council has previously approved the FY22/23 Annual Budget for the Fiscal Year Ending April 30, 2023 by a motion at the Regular City Council Meeting held on April 18, 2022; and WHEREAS, it is necessary and appropriate to delete, add to, or otherwise change certain line items in said Budget Ordinance as provided in Exhibit A to this Ordinance; NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of McHenry, McHenry County, Illinois, as follows: SECTION 1: That the amendments to the Budget Ordinance for the Fiscal Year Ending April 30, 2023 are hereby approved in the form and content as provided by Exhibit “A” which is attached hereto and made part hereof. SECTION 2: If any section, paragraph, subdivision, clause, sentence or provision of this Ordinance shall be adjudged by any Court of competent jurisdiction to be invalid, such judgment shall not affect, impair, invalidate or nullify the remainder thereof, which remainder shall remain and continue in full force and effect. SECTION 3: All ordinances, or parts of ordinances in conflict herewith are hereby repealed to the extent of such conflict. SECTION 4: This ordinance shall be published in pamphlet form by and under the authority of the corporate authorities of the City of McHenry, Illinois. SECTION 5: This ordinance shall be in full force and effect from and after its passage, approval and publication, as provided by law. Passed t his 16th day of January, 2023. 252 Ayes Nays Absent Abstain Alderman Devine _____ _____ _____ _____ Alderman Glab ____ _____ _____ _____ Alderman Harding ____ _____ _____ _____ Alderman McClatchey _____ _____ _____ _____ Alderwoman Miller ____ _____ _____ _____ Alderman Santi _____ _____ _____ _____ Alderman Strach _____ _____ _____ _____ ______________________ ________________________ Wayne Jett, Mayor Monte Johnson, Deputy City Clerk 253 EXHIBIT A The follo wing budget items are amended by this Ordinance: FY 22/23 Budget Amendment – Public Improvements (100-01-8900) - $41,000.00 254 255 256 257 258 259 260 General Fund (Municipal Utility Tax) Community Investment Plan FY 2023-24 Update City of McHenry January 16, 2023 261 General Fund Operating Revenue vs. Operating Expenditures $- $5,000,000.00 $10,000,000.00 $15,000,000.00 $20,000,000.00 $25,000,000.00 $30,000,000.00 $35,000,000.00 $40,000,000.00 12/13 13/14 14/15 15/16 16/17 17/18 18/19 19/20 20/21 21/22 22/23 23/24 24/25 25/26 26/27 27/28 28/29 29/30 30/31 31/32 FISCAL YEAR General Fund Revenue General Fund Operating Expenditures Fund Balance Linear (General Fund Revenue)Linear (General Fund Operating Expenditures) History & Projection (2012-2032) 262 Municipal Utility Tax (MUT) Capital Program Implementation •In years prior to implementation of MUT, year-to-year capital balances were extremely inconsistent •Maintenance and replacement projects competed for capital funding with new asset and asset expansion projects, which led to a lack of routine maintenance and replacement of City assets •MUT Ordinance was passed in February 2022 •ComEd MUT is dedicated for Maintenance & Replacement Projects •Nicor MUT is not currently assigned but will be utilized for new assets & asset expansion projects 263 Current FY 2023-24 General Fund Capital Budget Status (Non-MUT) •Currently, no available General Fund Capital Balance is anticipated for FY 2023-24. •Miller Point Expansion, which was awarded this year, will be partially funded out of the original FY 2022-23 budget appropriation as well as donations. The remainder of the project will be funded out of the General Fund Capital Balance in FY 2023-24. 264 Fiscal Year 2023-24 Capital Program 1.City Hall Parking Lot Rehabilitation $550,000 2.City Hall Front Entrance and Doors $100,000 3.Jaycees Park Gazebo Roof Replacement $5,000 4.Knox Park Maintenance Sheds Replacement $20,000 5.Miller Riverfront Gazebo Roof Replacement $5,000 6.Petersen Park Horse Barn Roof Replacement $350,000 7.Freund Field Basketball Court Lighting $50,000 8.Ballistic Helmet Replacement $40,000 9.Patrol SUV Replacement (310)$64,000 10.Patrol SUV Replacement (311)$64,000 11.Patrol Utility Vehicle Replacement (325)$59,000 12.Patrol Utility Vehicle Replacement (317)$59,000 13.Patrol Utility Vehicle Replacement (327)$59,000 14.Patrol Utility Vehicle Replacement (326)$59,000 15.Pearl Street Bridge Deck Oil $25,000 16.1-Ton Dump (Snowplow)$115,000 17.1-Ton Pickup (Concrete Truck)$75,000 Reference: Report Narrative Page 6265 Program Implementation •Asset inventory is annually refreshed •Only projects which are “maintenance and replacement” projects are funded through the use of ComEd MUT Funding •Program is fully funded on a year-to-year basis such that “revenue in” is equal to capital expenditures •Projects are deferred in the schedule as necessary based upon available funding •For projects requiring design work, design is funded in the fiscal year preceding intended construction •Annual recommended program is presented for the concurrence of City Council and approved during the final budgeting process 266 Cash Flow Projection Year 2022 Year 2023 Year 2024 Year 2025 Year 2026 Year 2027 Year 2028 Year 2029 Year 2030 Year 2031 Year 2032 MUT Revenue $700,000 $1,100,000 $1,100,000 $1,100,000 $1,100,000 $1,100,000 $1,100,000 $1,100,000 $1,100,000 $1,100,000 $1,100,000 Capital Expenditures $-$1,784,000 $2,562,000 $1,670,000 $795,000 $2,790,000 $2,810,000 $650,000 $2,090,000 $1,095,000 $2,675,000 $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 City of McHenry Community Investment Plan (MUT) 10-Year Expenditure vs. Revenue 267 Future Projects (Facility and Asset Expansion) These projects are not maintenance and replacement projects are thus ineligible for the use of ComEd MUT Funding and must be paid for with other sources of funding (General Fund Balance, TIF Funds, Nicor MUT, Bonds, etc.) •Venice Avenue Reconstruction •City Fueling Station •Police Sallyport & Parking Facility •Riverside Sidewalk Gap •Kane Avenue Sidewalks •Downtown Streetscape (4 Locations) •Miller Point Reconstruction •Riverwalk Expansion TIF District Improvements •Route 31 Improvements (Non-Wate r -Sewer) Reference: Report Narrative Pages 7 & 8 268 GENERAL FUND (MUT) CIP 1 CITY OF MCHENRY General Fund Municipal Utility Tax (MUT) Community Investment Plan (CIP) DRAFT Years 2023 through 2042 269 GENERAL FUND (MUT) CIP 2 Table of Contents Introduction .................................................................................................................................................. 3 Background ................................................................................................................................................... 3 Goals for the Plan .......................................................................................................................................... 3 Development of the Plan .............................................................................................................................. 4 Funding the Plan ........................................................................................................................................... 4 Organization of the Plan ............................................................................................................................... 5 Infrastructure Maintenance/Improvements ............................................................................................ 5 Parks and Land Maintenance/Improvements .......................................................................................... 5 Building Maintenance/Improvements ...................................................................................................... 5 Vehicles and Equipment Replacements .................................................................................................... 5 Implementation of the Plan .......................................................................................................................... 5 Future Considerations ................................................................................................................................... 7 Annual Review and Approval Process ........................................................................................................... 8 Appendix A .................................................................................................................................................... 9 Appendix B .................................................................................................................................................. 15 Appendix C .................................................................................................................................................. 28 270 GENERAL FUND (MUT) CIP 3 Introduction The capital needs of a municipality can be divided into two distinct categories: 1) those related to the maintenance and replacement of existing capital assets; and 2) those related to the development of new capital assets. In McHenry, all capital asset maintenance, replacement, and expansion costs are funded through the General Fund, except for those projects related to the City’s water and sanitary sewer utilities and those related to the McHenry Recreation Center. Water and sewer maintenance and replacement projects are funded through user base fees, and Recreation Center projects are funded through the user fees for the facility. The purpose of this Community Investment Plan (CIP) is to serve as a realistic, strategic blueprint for the maintenance and replacement of the City’s General Fund capital assets. Background Prior to 2013/2014, the City of McHenry did not have a comprehensive multi-year capital improvement/equipment planning process. Capital asset maintenance and replacement and capital improvements (defined as those projects with a cost of more than $10,000) were identified and funded annually as part of the municipal budget process. Beginning in 2013/2014, the City Administration introduced a 5-year Capital Improvement Program planning document. This document, reviewed and updated on an annual basis, became the basis for the City’s capital improvement and equipment planning. While the Capital Improvement Program serviced the city well, current trends in municipal capital asset maintenance and replacement planning have shifted towards a need for a longer term, and much more strategic, planning tool – commonly referred to as a Community Investment Plan – with a focus on capital asset maintenance and replacement projects, and importantly, the identification of funding sources for these projects. This Community Investment Plan provides a framework for long-range capital investment planning allowing for better resource management and the ability for staff and elected officials to ensure that short term needs are met with a knowledge of future demands. This Community Investment Plan includes only the maintenance and replacement of existing capital assets and does not include the development of new assets (e.g., the construction of a new public facility), providing a clear separation between meeting existing needs versus implementing new capital asset projects. In analyzing identified General Fund capital asset maintenance and replacement needs through 2042, the City Administration has determined that between $1.4 million and $2.3 million annually will be required to support these needs, based on the specific programs implemented. A listing of capital asset maintenance and replacement projects are identified in Appendix C. Goals for the Plan During 2019 Strategic Planning sessions, a goal was set to create a long-term projection of capital costs associated strictly with maintenance and replacement of assets that the City already holds. This need was identified due to the sporadic nature of the capital budgeting process which grouped capital projects in one class regardless of whether the capital expenditure was for the purposes of acquiring a new asset or maintenance and replacement of an existing asset. The logic for the change in the approach was that for the City to develop better control and predictability in its capital planning processes, projections of future 271 GENERAL FUND (MUT) CIP 4 capital costs based upon realistic service lives of existing assets were going to have to be developed. In short, the goals for the plan are as follows: 1. The “wish list” approach for capital budgeting is abandoned and replaced with a plan and schedule that is realistic to implement. 2. Priorities for maintenance and replacement of existing assets are set based upon current operational requirements rather than desired or additional new services and programs. 3. Maintenance and replacement of existing capital assets is scheduled and implemented based upon acceptable costs and reasonable service lives. 4. The cost projections are met or funded by a protected revenue source that is dedicated by ordinance for the maintenance and replacement of existing assets only and matches the cost projection. No new assets are funded through this protected revenue source. 5. Projects for the development of new assets are funded through General Fund balances or new sources of revenue; significant facilities and infrastructure expansion projects should be considered for funding through referendums, bonded debt services, special assessments, etc. Development of the Plan The task of developing this projection was assigned to City staff and all department heads worked together to develop these cost projections. Capital expenditures were classified by department, expenditure, and type of treatment. Costs were also given a projected year for implementation which was used to develop a long-term projection and implementation schedule. The method of developing these costs included the following assumptions: small items which are sporadically replaced through operating budgets are not included in the projection, only existing capital assets were to be included in the projection, both maintenance treatments to fulfill the full asset service life and asset replacement costs were included, and each treatment or asset replacement was to include a cost and service life associated. Annualized costs were simply generated by dividing the capital cost over the projected service life; inflation was not included in the projection and therefore, all costs are present costs. The sum of annualized costs was then utilized to develop funding and implementation strategies for the plan. Funding the Plan Traditionally, McHenry’s General Fund capital asset maintenance and replacement needs have been funded through excess General Fund revenues over expenditures after the achievement of a balanced operating budget and ensuring the existence of sufficient funds for the maintenance of the required (by policy) 120-day minimum General Fund balance. While conservative budgeting practices have resulted in the ability to address some of the City’s maintenance and replacement needs, funding levels can be unreliable from year-to-year, resulting in the inability to budget for, plan, and implement a regularly scheduled program. In February 2022, the City Council took a significant step in ensuring annual funding for General Fund capital asset maintenance and replacement projects included in this Community Investment Plan by adopting a new Electricity Use Tax. Annual revenues of this tax are estimated at $1.1 million. The result of this action is that projects within this plan are organized and presented based on this $1.1 million guaranteed annual revenue source. 272 GENERAL FUND (MUT) CIP 5 Organization of the Plan Capital asset maintenance and replacement projects included in the Community Investment Plan are estimated to cost at least $10,000 and have a useful life of greater than one year. Projects are presented in two formats: 1) via a brief project description that identifies the proposed project maintenance needs and/or replacement timeframe and estimated cost(s) (Appendix B); and 2) via a summary spreadsheet that identifies projects by classification (see below) and maintenance/replacement schedule within the 20-year span of this plan (Appendix C). The summary spreadsheet also serves as a master database used perform simple analysis, summarization, categorization, and projection exercises for all the City’s assets. From these exercises, several charts have been generated to illustrate the data. These charts include a breakdown of expenditures by year, a summary of expenditures by asset category, and expenditures by department. These charts are included as Appendix A. Projects are classified into one of the following categories for reference purposes: Infrastructure Maintenance/Improvements Improvements to publicly owned infrastructure such as multi-use paths, crack sealing, culvert rehabilitation and replacement, bridge rehabilitation and replacement, street lighting replacement, signal equipment replacement, curb replacement, sidewalk replacement, and corrugated steel culvert replacement. Local streets are funded with Motor Fuel Tax Funds and, as such, are not included in this category. Parks and Land Maintenance/Improvements Improvements to publicly owned properties outside of a building footprint and for projects that are not eligible for funding through other municipal funds. Examples include parking lots, playground equipment replacement, ball courts, gazebos and other accessory structures, and fences. Building Maintenance/Improvements Improvements to the exterior or interior of publicly owned facilities that are not eligible for funding through other municipal funds (i.e., McHenry Recreation Center, water or sewer conveyance/treatment facilities). The primary example in this category is the maintenance and replacement needs of the McHenry Municipal Center. Vehicles and Equipment Replacements Maintenance or replacement of municipal vehicles and equipment that are not eligible for funding through other municipal funds (i.e., Water/Sewer Fund for Water and Sewer vehicles). This category includes road vehicles as well as other motorized equipment such as backhoes, end-loaders, etc. Additionally, this includes all light equipment which is routinely replaced by the Police Department. This equipment includes radar, radios, helmets, shields, body cameras, etc. and annually averages approximately $155,000. Implementation of the Plan Because it was uncertain when the electric use utility tax revenues would start to be received after the passing of the ordinance in February of 2022, the Fiscal Year 22/23 Capital Improvement Program was funded through the traditional means of General Fund balances that were left after meeting operating 273 GENERAL FUND (MUT) CIP 6 budgets and minimum fund balances. The Capital Improvement Program also included projects both for the development of new assets as well as maintenance and replacement of existing assets, all of which were funded through the same source (General Fund Balances available for capital). As the original capital projection was “front-loaded” with maintenance and replacement projects that were considered immediately necessary, staff began preparations for the implementation of the plan by updating the schedule and beginning to shift projects to better match revenues to expenditures in the early years of the plan. Electric Utility Taxes are now being received in a predictable manner and staff are now prepared to begin implementation of the plan in Fiscal Year 2023/2024. Fiscal Year 2022/2023 revenues are projected to be $0.7 million and Fiscal Year 2023/2024 revenues are projected to be $1.1 million, which brings the available funding for capital maintenance and replacement projects to $1.8 million. To ensure project readiness and implementation of projects within the constraints of the intended fiscal year, it is crucial that projects are ready for a bidding process early in the fiscal year so that contractors and vendors are under contract with a good portion of the fiscal year remaining. This will eliminate or reduce the number of projects that are carried over between fiscal years, which is a burdensome and inefficient process for project accounting. To ensure project readiness, projects which are to be implemented soon which require engineering or architectural services for the development of plans, specifications, and bid documents are split into two expenditures. A portion of the project budget is assigned in the fiscal year prior to full project implementation such that the plans, specifications, and bid documents can be developed and ready for use in the fiscal year intended for project implantation or construction. The Fiscal Year 2023/2024 program includes a budget of $1,784,000 and will begin implementation on May 1, 2023. The list of Fiscal Year 2023/2024 projects is as follows: 1.City Hall Parking Lot Rehabilitation $550,000 2.City Hall Front Entrance and Doors $100,000 3.Jaycees Park Gazebo Roof Replacement $5,000 4.Knox Park Maintenance Sheds Replacement $20,000 5.Miller Riverfront Gazebo Roof Replacement $5,000 6.Petersen Park Horse Barn Roof Replacement $350,000 7.Freund Field Basketball Court Lighting $50,000 8.Ballistic Helmet Replacement $40,000 9.Patrol SUV Replacement (310)$64,000 10.Patrol SUV Replacement (311)$64,000 11.Patrol Utility Vehicle Replacement (325)$59,000 12.Patrol Utility Vehicle Replacement (317)$59,000 13.Patrol Utility Vehicle Replacement (327)$59,000 14.Patrol Utility Vehicle Replacement (326)$59,000 15.Pearl Street Bridge Deck Oil $25,000 16.1-Ton Dump (Snowplow)$115,000 17.1-Ton Pickup (Concrete Truck)$75,000 A detailed description of each of these projects is included in Appendix B of this document. 274 GENERAL FUND (MUT) CIP 7 Future Considerations Because the ComEd portion of the Municipal Utility Taxes is assigned for maintenance and replacement projects only the following projects are not included in the preceding portion of the Community Investment Plan. These projects are considered facilities and infrastructure expansion projects and are to be paid for by other funding sources including year-end General Fund capital balances, the Nicor portion of the Municipal Utility Tax, General Obligation Bonds, Tax Increment Finance District (TIF) revenues, and other new assigned sources of revenue. These projects will not move forward until funding sources are assigned and implemented for the individual projects as they are approved and incorporated into the City’s Budget. Venice Avenue $600,000 This project includes the reconstruction of Venice Avenue and Court Street south of Illinois Route 120. This will include the addition of concrete curb and gutter as well as the addition of a pedestrian walkway to facilitate pedestrian movement from the Green Street Downtown Corridor to the Miller Point and Riverside Drive Corridor. The project is currently in design and will be funded for construction upon the assignment of a revenue source for construction funding. Fueling Station $400,000 This project will include the construction of a new City fueling station on the property at the Public Works Department located at 1415 Industrial Drive. The facility will include above ground gas and diesel tanks, an overhead canopy, necessary utility work, and fuel use tracking software. The proposed facility is currently in design and permitting and will be constructed upon the assignment of a funding source for this new facility project. Police Buildout $800,000 This project will include the expansion and modification of the sallyport in the Police Department portion of the building and the construction of a covered parking area on the north side of the building in the current Police Department parking area. Riverside Sidewalk $150,000 This project includes the necessary design and construction costs to complete missing gaps in the sidewalk along Riverside Drive between Pearl Street and McCullom Lake Road. Necessary work will include grading and drainage work as well as the construction of new base course and sidewalk on the west side of Riverside Drive. Kane Avenue Sidewalks $25,000 This project will include the replacement of all sidewalks on Kane Avenue which front Edgebrook and Duker Schools. City Staff were approached by School District Staff in Summer of 2022 with a request to partner on the replacement of both City sidewalks and School District sidewalks/flatwork. This project will move forward pending a funding commitment from both the School District and the City. 275 GENERAL FUND (MUT) CIP 8 Streetscape Improvements In 2021 the City of McHenry commissioned an engineering and planning study to create a Downtown Streetscape Master Plan to be implemented over a multi-year period. The Study was finalized and adopted in December of 2021. Because of the large capital costs, which are not currently all accounted for, the project locations were prioritized, and preliminary engineering was initiated in 2022 on the highest-ranking location (Riverside Drive). Locations will be implemented and constructed in the future upon assignment of capital funding sources. A brief listing and order of magnitude cost of each corridor included in the Master Plan is as follows: 1.Riverside Streetscape $3,000,000 2.Green Street Streetscape $3,000,000 3.Main Street Streetscape $3,000,000 4.Elm Street Streetscape $3,000,000 5.Miscellaneous Streetscape Improvements $1,500,000 Riverwalk Expansion COST TBD TIF District Improvements COST TBD Route 31 Local Matches (Non-Water-Sewer) $2,000,000 Illinois Department of Transportation (IDOT) is currently in Phase II Design for the reconstruction of Illinois Route 31 between the City of Crystal Lake and the City of McHenry. Construction is currently anticipated no earlier than 2025. In addition to the roadway costs which are strictly IDOT costs there are several costs for optional local improvements which have been outlined in a previously executed Letter of Intent (LOI) between the City of McHenry and IDOT. These costs include the City’s local funding obligations for optional decorative street lighting, the local match for the construction of a multi-use path, and the local match for the municipal legs of signalized intersections. Annual Review and Approval Process The Community Investment Plan will be reviewed and updated annually to ensure that maintenance and replacement schedules are updated appropriately. Identified projects will be included for approval as part of each fiscal year budget based on the maintenance and replacement schedules identified in this document. 276 GENERAL FUND (MUT) CIP 9 Appendix A Included in this appendix are charts and tables which summarize the program by year of expenditure, project categories, and sponsoring departments. 277 GENERAL FUND (MUT) CIP 10 Total $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 Year 2023 Year 2024 Year 2025 Year 2026 Year 2027 Year 2028 Year 2029 Year 2030 Year 2031 Year 2032 City of McHenry Total $1,784,000 $2,562,000 $1,670,000 $795,000 $2,790,000 $2,810,000 $650,000 $2,090,000 $1,095,000 $2,675,000 $1,784,000 $2,562,000 $1,670,000 $795,000 $2,790,000 $2,810,000 $650,000 $2,090,000 $1,095,000 $2,675,000 City of McHenry 10-Year Expenditure Totals 278 GENERAL FUND (MUT) CIP 11 Year 2022 Year 2023 Year 2024 Year 2025 Year 2026 Year 2027 Year 2028 Year 2029 Year 2030 Year 2031 Year 2032 MUT Revenue $700,000 $1,100,000 $1,100,000 $1,100,000 $1,100,000 $1,100,000 $1,100,000 $1,100,000 $1,100,000 $1,100,000 $1,100,000 Capital Expenditures $-$1,784,000 $2,562,000 $1,670,000 $795,000 $2,790,000 $2,810,000 $650,000 $2,090,000 $1,095,000 $2,675,000 $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 City of McHenry Community Investment Plan (MUT) 10-Year Expenditure vs. Revenue 279 GENERAL FUND (MUT) CIP 12 $- $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 Year 2023 Year 2024 Year 2025 Year 2026 Year 2027 Year 2028 Year 2029 Year 2030 Year 2031 Year 2032 Facility $650,000 $500,000 $-$-$735,000 $750,000 $-$100,000 $-$150,000 Infrastructure $25,000 $630,000 $1,090,000 $100,000 $555,000 $1,250,000 $340,000 $1,150,000 $320,000 $360,000 Light Equipment $125,000 $85,000 $230,000 $85,000 $85,000 $200,000 $140,000 $305,000 $85,000 $85,000 Park/Land $430,000 $150,000 $115,000 $-$1,160,000 $75,000 $-$-$-$1,295,000 Vehicle/Equipment $554,000 $1,197,000 $235,000 $610,000 $255,000 $535,000 $170,000 $535,000 $690,000 $785,000Axis TitleGeneral Fund 10-Year Expenditure by Asset 280 GENERAL FUND (MUT) CIP 13 $2,885,000 ; 15% $5,820,000 ; 31% $1,425,000 ; 8% $3,225,000 ; 17% $5,566,000 ; 29% General Fund 10-Year Total Expenditure by Asset Facility Infrastructure Light Equipment Park/Land Vehicle/Equipment 281 GENERAL FUND (MUT) CIP 14 $1,810,000 ; 9% $115,000 ; 1% $4,235,000 ; 22% $3,761,000 ; 20% $9,000,000 ; 48% General Fund 10-Year Total Expenditure by Department Admin ComDev Parks & Rec Police Public Works 282 GENERAL FUND (MUT) CIP 15 Appendix B Included in this appendix is an individual project sheet for each capital item that is being funded in Fiscal Year 2023-2024. Sheets include a brief project description, sponsoring department information, engineering expenditure information, an anticipated service life, and a cost. Each page also includes a photo representing the project and a five year table of expenditures for multi-year projects. 283 Community Investment Plan (General Fund) Project Project Number Project Description Department Treatment Service Life Design Fiscal Year Design Cost Construction Fiscal Year Construction Cost 550,000.00$  Fiscal Year Expenditures 23/24 24/25 25/26 26/27 27/28 01‐FAC‐001 City Hall Parking Lot Rehabilitation Community McHenry City Hall parking lot rehabilitation includes, reconfiguration of  drive isles, curb/sidewalk replacement, storm structure repairs, grinding and  overlay and striping. Also included in this project are new pavers at Police,  Administration, and City Council Chambers entrance as well as area below  the flag poles on the east side of the building.  Development Rehabilitation 30 Years FY22/23 $50,000.00 FY23/24 $550,000.00 GENERAL FUND (MUT) CIP 16 284 Community Investment Plan (General Fund) Project Project Number Project Description Department Treatment Service Life Design Fiscal Year Design Cost Construction Fiscal Year Construction Cost 100,000.00$  Fiscal Year Expenditures 23/24 24/25 25/26 26/27 27/28 01‐FAC‐002 Front Entrance and Front Doors (City Hall) Community The front entry doors to City Hall are original to the building's construction  in 1991. Normal wear and tear over the years has taking its toll on the  doors, doors no longer open and close properly and are in dire need of  replacement.  The replacement includes adding new automated sliding type  doors that would comply with Illinois accessibility code and International  energy conservation codes.  Development Rehabilitation 30 Years FY23/24 $100,000.00 GENERAL FUND (MUT) CIP 17 285 Community Investment Plan (General Fund) Project Project Number Project Description Department Treatment Service Life Design Fiscal Year Design Cost Construction Fiscal Year Construction Cost 41‐PARK‐001&003 Miller Riverfront & Jaycess Gazebo Roof Replacements Parks and This project includes the replacement of the roofs of the gazebos at both  Miller Riverfront Park and Jaycees Park.  Asphalt shingle roofs are planned  for replacement on 25 year intervals and the roofs of both of these gazebos  located at City Park properties are due for replacement as well as repairs  incidental to the replacements. Recreation Replacement 25 Years FY23/24 $10,000.00 Fiscal Year Expenditures 23/24 24/25 25/26 26/27 27/28 10,000.00$  GENERAL FUND (MUT) CIP 18 286 Community Investment Plan (General Fund) Project Project Number Project Description Department Treatment Service Life Design Fiscal Year Design Cost Construction Fiscal Year Construction Cost 41‐PARK‐004 Petersen Horse Barn Roof Replacement Parks and This project includes the replacement of the roof of the horse barn at  Petersen Park.  Asphalt shingle roofs are planned for replacement on 25  year intervals and the roof for the horse barn is overdue for replacement as  well as repairs incidental to the replacements. Recreation Rehabilitation 25 Years FY23/24 $350,000.00 Fiscal Year Expenditures 23/24 24/25 25/26 26/27 27/28 350,000.00$  GENERAL FUND (MUT) CIP 19 287 Community Investment Plan (General Fund) Project Project Number Project Description Department Treatment Service Life Design Fiscal Year Design Cost Construction Fiscal Year Construction Cost 41‐PARK‐002 Knox Park Maintenance Shed Replacements Parks and This project includes the replacement of two maintenance sheds located at  Knox Park.  These sheds are typically replaced on 25 year intervals and are  currently due for replacement. Recreation Replacement 25 Years FY23/24 $20,000.00 Fiscal Year Expenditures 23/24 24/25 25/26 26/27 27/28 20,000.00$  GENERAL FUND (MUT) CIP 20 288 Community Investment Plan (General Fund) Project Project Number Project Description Department Treatment Service Life Design Fiscal Year Design Cost Construction Fiscal Year Construction Cost 41‐PARK‐005 Freund Field Basketball Court Light Replacements Parks and This project includes the replacement of lighting for the basketball courts at  Freund Field.  The current poles and fixtures are beyond their expected  service life and will be replaced with modern LED fixtures with an  anticipated service life of 25 years. Recreation Replacement 25 Years FY23/24 $50,000.00 Fiscal Year Expenditures 23/24 24/25 25/26 26/27 27/28 50,000.00$  GENERAL FUND (MUT) CIP 21 289 Community Investment Plan (General Fund) Project Project Number Project Description Department Treatment Service Life Fiscal Year Replacement Cost Recurring Project 22‐EQPT‐001to006 Police Vehicle / Equipment Replacement Program Police The purpose of this project is to maintain the function of the McHenry  Police Department's Vehicle / Equipment Replacement Program.   This  program was established in order to ensure the agency is capable of  maintaining the proper level of dependable police vehicles needed to  service the community in all law enforcement efforts.  Vehicles are a  primary piece of law enforcement equipment that must be replaced in  order to ensure fleet dependability and service to the community.  This  project is classified as an ongoing program.  Vehicles and equipment are  replaced every 5‐7 years based upon age, condition, and mileage. Replacement 5‐7 Years FY23/24 $364,000.00 Yes Fiscal Year Expenditures 23/24 24/25 25/26 26/27 27/28 364,000.00$  GENERAL FUND (MUT) CIP 22 290 Community Investment Plan (General Fund) Project Project Number Project Description Department Treatment Service Life Fiscal Year Replacement Cost Recurring Project 22‐LEQPT‐002 Ballistic Helmets Police Ballistic helmets provide protection to officers involved in high risk incidents  and incidents involving firearms.  The purpose of this project is to replace all  agency ballistic helmets every five years when they expire.  These helmets  are individually assigned to all officers as a piece of mandatory tactical  safety equipment required by the Police Department. Replacement 5 Years FY23/24 $40,000.00 Yes Fiscal Year Expenditures 23/24 24/25 25/26 26/27 27/28 40,000.00$  GENERAL FUND (MUT) CIP 23 291 Community Investment Plan (General Fund) Project Project Number Project Description Department Treatment Service Life Fiscal Year Replacement Cost Recurring Project 22‐LEQPT‐001 Body / Vehicle Cameras Police This project replaces the Police Department’s current in‐car video camera  systems and incorporates the use of body‐worn cameras into the agency’s  video camera program as required by Illinois Law.  Specifically this project is  classified as an onging program that requires maintenance and replacement  of equipment every 3‐5 years.  This program has an annual re‐occuring cost  paid each budget year. Replacement 3‐5 Years FY23/24 $85,000.00 Yes Fiscal Year Expenditures 23/24 24/25 25/26 26/27 27/28 85,000.00$ 85,000.00$                85,000.00$                85,000.00$                85,000.00$                 GENERAL FUND (MUT) CIP 24 292 Community Investment Plan (General Fund) Project Project Number Project Description Department Treatment Service Life Fiscal Year Replacement Cost Recurring Project 30‐EQPT‐001 Public Works 1 Ton Replacement (With Plow Setup) Public Works This truck is currently used for street maintenance and as a spare truck for  plowing.  Due to high projected capital equipment costs for plow trucks, the  Public Works Department began to test the concept of utilizing 1‐Ton 550  units for plowing neighborhood routes which has been implemented  successfully.  Additionally, these units are versatile for year round  maintenance purposes.  The current unit is beyond its typical service life and  is due for replacement. Replacement 15 Years FY23/24 $115,000.00 Yes Fiscal Year Expenditures 23/24 24/25 25/26 26/27 27/28 115,000.00$  GENERAL FUND (MUT) CIP 25 293 Community Investment Plan (General Fund) Project Project Number Project Description Department Treatment Service Life Fiscal Year Replacement Cost Recurring Project 30‐EQPT‐002 Public Works 1 Ton Replacement (Concrete Truck) Public Works This truck is used as a maintenance truck and for hauling the equipment  trailer for the concrete crew.  The current unit is a 2003 Ford F350 which is  beyond its normal service life.  The truck will be replaced with another 1‐ Ton this Spring pending the results of the City's procurement processes. Replacement 12 Years FY23/24 $75,000.00 Yes Fiscal Year Expenditures 23/24 24/25 25/26 26/27 27/28 75,000.00$  GENERAL FUND (MUT) CIP 26 294 Community Investment Plan (General Fund) Project Project Number Project Description Department Treatment Service Life Design Fiscal Year Design Cost Construction Fiscal Year Construction Cost 30‐INF‐002 Pearl Street Bridge Deck Sealer Public Works The purpose of this project is maintenance and rehabilitative sealing of the  bridge deck superstructure for the Pearl Street Bridge.  In the most recent bi‐ annual bridge inspection for the structure it was recommended that the  bridge deck be re‐sealed as soon as practical.  It is recommended to re‐seal  the deck on regular intervals to maximize the service life of the deck  superstructure and delay the eventual replacement of the bridge deck. Rehabilitation 5 FY23/24 $25,000.00 Fiscal Year Expenditures 23/24 24/25 25/26 26/27 27/28 25,000.00$  GENERAL FUND (MUT) CIP 27 295 GENERAL FUND (MUT) CIP 28 Appendix C This appendix is the master spreadsheet of all capital items included in the 20-year projection. This spreadsheet is annually updated and is utilized to perform simple data analysis and to produce charts for illustration of the plan which are included in Appendix A. 296 General Fund (MUT) Capital Projection (2023‐2042)Project Number Department City of McHenryAssetSub Asset/DescriptionAsset ClassTreatmentInterval YearCostAnnualized 20232024202520262027 2028‐2032 2033‐2037 2038‐204222‐LEQPT‐001 Police City of McHenry Body/Car CamerasLight EquipmentReplacement20 Annual Annual85,000.00$              85,000.00$           85,000.00$           85,000.00$           85,000.00$           85,000.00$           425,000.00$        425,000.00$        425,000.00$        30‐INF‐001 Public Works City of McHenry StreetsAnnual Crack SealInfrastructureCrack Sealing8Annual Annual100,000.00$            Omitted this FY 100,000.00$        100,000.00$        100,000.00$        100,000.00$        500,000.00$        500,000.00$        500,000.00$        01‐FAC‐001Admin City of McHenry City HallParking LotFacilityMajor Rehabilitation252023550,000.00$            22,000.00$              550,000.00$        ‐‐‐‐‐$ ‐$ ‐$ 01‐FAC‐002 Admin City of McHenry City HallFront Entrance & Front Doors FacilityReplacement302023100,000.00$            3,333.33$                 100,000.00$        ‐‐‐‐‐$ ‐$ ‐$ 41‐PARK‐001 Parks & Rec City of McHenry Jaycees ParkGazeboPark/LandRoof Replacement2520235,000.00$                 200.00$ 5,000.00$             ‐‐‐‐‐$ ‐$ ‐$ 41‐PARK‐002 Parks & Rec City of McHenry Knox ParkMaintenance Sheds (2 each) Park/LandReplacement25202320,000.00$              800.00$ 20,000.00$           ‐‐‐‐‐$ ‐$ ‐$ 41‐PARK‐003 Parks & Rec City of McHenry Miller Riverfront GazeboPark/LandRoof Replacement2520235,000.00$                 200.00$ 5,000.00$             ‐‐‐‐‐$ ‐$ ‐$ 41‐PARK‐004 Parks & Rec City of McHenry Horse FarmBarnPark/LandRoof Replacement252023350,000.00$            14,000.00$              350,000.00$        ‐‐‐‐‐$ ‐$ ‐$ 41‐PARK‐005 Parks & Rec City of McHenry Freund Field Basketball Courts (Lighting) Park/LandReplacement25202350,000.00$              2,000.00$                 50,000.00$           ‐‐‐‐‐$ ‐$ ‐$ 22‐LEQPT‐002 Police City of McHenry Ballistic Helmets (55 each)Light EquipmentReplacement5202340,000.00$              8,000.00$                 40,000.00$           ‐‐‐‐40,000.00$           40,000.00$           40,000.00$           22‐EQPT‐001 Police City of McHenry SUV ‐ Patrol310Vehicle/EquipmentReplacement5202364,000.00$              12,800.00$              64,000.00$           ‐‐‐‐64,000.00$           64,000.00$           64,000.00$           22‐EQPT‐002 Police City of McHenry SUV ‐ Patrol311Vehicle/EquipmentReplacement5202364,000.00$              12,800.00$              64,000.00$           ‐‐‐‐64,000.00$           64,000.00$           64,000.00$           22‐EQPT‐003 Police City of McHenry Utility ‐ Patrol 325Vehicle/EquipmentReplacement5202359,000.00$              11,800.00$              59,000.00$           ‐‐‐‐59,000.00$           59,000.00$           59,000.00$           22‐EQPT‐004 Police City of McHenry Utility ‐ Patrol 317Vehicle/EquipmentReplacement5202359,000.00$              11,800.00$              59,000.00$           ‐‐‐‐59,000.00$           59,000.00$           59,000.00$           22‐EQPT‐005Police City of McHenry Utility ‐ Patrol 327Vehicle/EquipmentReplacement5202359,000.00$              11,800.00$              59,000.00$           ‐‐‐‐59,000.00$           59,000.00$           59,000.00$           22‐EQPT‐006 Police City of McHenry Utility ‐ Patrol 326Vehicle/EquipmentReplacement5202359,000.00$              11,800.00$              59,000.00$           ‐‐‐‐59,000.00$           59,000.00$           59,000.00$           30‐INF‐002 Public Works City of McHenry BridgePearl Street Bridge Deck SealerInfrastructureRehabilitation5202325,000.00$              5,000.00$                 25,000.00$           ‐‐‐‐‐$ ‐$ ‐$ 30‐EQPT‐001 Public Works City of McHenry 1 Ton Small Dump 430Vehicle/EquipmentReplacement152023115,000.00$            7,666.67$                 115,000.00$        ‐‐‐‐‐$ ‐$ 115,000.00$        30‐EQPT‐002 Public Works City of McHenry 1 Ton Pickup 425Vehicle/EquipmentReplacement12202375,000.00$              6,250.00$                 75,000.00$           ‐‐‐‐‐$ 75,000.00$           ‐$ 03‐EQPT‐001 ComDev City of McHenry Sedan‐Inspections225Vehicle/EquipmentReplacement12202425,000.00$              2,083.33$                  ‐25,000.00$            ‐‐‐‐$ ‐$ ‐$ 41‐FAC‐001 Parks & Rec City of McHenry Parks Garage RoofFacilityReplacement502024250,000.00$            5,000.00$                  ‐250,000.00$        ‐‐‐‐$ ‐$ ‐$ 41‐FAC‐002 Parks & Rec City of McHenry Parks Garage WindowsFacilityReplacement502024150,000.00$            3,000.00$                  ‐150,000.00$        ‐‐‐‐$ ‐$ ‐$ 41‐FAC‐003 Parks & Rec City of McHenry Parks Garage Heating UnitFacilityReplacement252024100,000.00$            4,000.00$                  ‐100,000.00$        ‐‐‐‐$ ‐$ ‐$ 41‐PARK‐006 Parks & Rec City of McHenry Veterans Memorial ParkLighting SystemPark/LandReplacement502024125,000.00$            2,500.00$                  ‐125,000.00$        ‐‐‐‐$ ‐$ ‐$ 41‐PARK‐007 Parks & Rec City of McHenry Knox ParkSkate ParkPark/LandMajor Rehabilitation25202425,000.00$              1,000.00$                  ‐25,000.00$            ‐‐‐‐$ ‐$ ‐$ 41‐EQPT‐001 Parks & Rec City of McHenry Multi‐Use Vehicle Formerly (141)Vehicle/EquipmentReplacement25202450,000.00$              2,000.00$                  ‐50,000.00$            ‐‐‐‐$ ‐$ ‐$ 41‐EQPT‐002 Parks & Rec City of McHenry Trailer159Vehicle/EquipmentReplacement25202420,000.00$              800.00$  ‐20,000.00$            ‐‐‐‐$ ‐$ ‐$ 41‐EQPT‐003 Parks & Rec City of McHenry 3/4 Ton Pickup 120Vehicle/EquipmentReplacement12202440,000.00$              3,333.33$                  ‐40,000.00$            ‐‐‐‐$ 40,000.00$           ‐$ 41‐EQPT‐004 Parks & Rec City of McHenry Sedan‐Recreation 131Vehicle/EquipmentReplacement12202430,000.00$              2,500.00$                  ‐30,000.00$            ‐‐‐‐$ 30,000.00$           ‐$ 41‐EQPT‐005 Parks & Rec City of McHenry Maintenance CartVehicle/EquipmentNew Purchase25202410,000.00$              400.00$  ‐10,000.00$            ‐‐‐‐$ ‐$ ‐$ 22‐EQPT‐007 Police City of McHenry SUV ‐ Investigation 307Vehicle/EquipmentReplacement7202459,000.00$              8,428.57$                  ‐59,000.00$            ‐‐‐59,000.00$           ‐$ 59,000.00$           22‐EQPT‐008 Police City of McHenrySUV ‐ Investigation 343Vehicle/EquipmentReplacement7202459,000.00$              8,428.57$                  ‐59,000.00$            ‐‐‐59,000.00$           ‐$ 59,000.00$           22‐EQPT‐009 Police City of McHenry Utility ‐ Patrol 318Vehicle/EquipmentReplacement5202459,000.00$              11,800.00$               ‐59,000.00$            ‐‐‐59,000.00$           59,000.00$           59,000.00$           22‐EQPT‐010 Police City of McHenry SUV ‐ Patrol319Vehicle/EquipmentReplacement5202459,000.00$              11,800.00$               ‐59,000.00$            ‐‐‐59,000.00$           59,000.00$           59,000.00$           22‐EQPT‐011 Police City of McHenry SUV‐ Investigation 301Vehicle/EquipmentReplacement7202459,000.00$              8,428.57$                  ‐59,000.00$            ‐‐‐59,000.00$           ‐$ 59,000.00$           22‐EQPT‐012Police City of McHenry Sedan ‐ Investigation 302Vehicle/EquipmentReplacement7202459,000.00$              8,428.57$                  ‐59,000.00$            ‐‐‐59,000.00$           ‐$ 59,000.00$           22‐EQPT‐013 Police City of McHenry Sedan ‐ Investigation 305Vehicle/EquipmentReplacement7202459,000.00$              8,428.57$                  ‐59,000.00$            ‐‐‐59,000.00$           ‐$ 59,000.00$           22‐EQPT‐014 Police City of McHenry SUV ‐ Admin 308Vehicle/EquipmentReplacement7202459,000.00$              8,428.57$                  ‐59,000.00$            ‐‐‐59,000.00$           ‐$ 59,000.00$           22‐EQPT‐015 Police City of McHenry SUV ‐ Patrol324Vehicle/EquipmentReplacement5202459,000.00$              11,800.00$               ‐59,000.00$            ‐‐‐59,000.00$           59,000.00$           ‐$ 30‐INF‐003 Public Works City of McHenry Street Lights Route 120 (East) (21 each) InfrastructureReplacement302024230,000.00$            7,666.67$                  ‐30,000.00$           200,000.00$        ‐‐‐$ ‐$ ‐$ 30‐INF‐004 Public Works City of McHenry BridgeOakwood Drive over Boone Creek InfrastructureReplacement502024500,000.00$            10,000.00$               ‐500,000.00$        ‐‐‐‐$ ‐$ ‐$ 30‐EQPT‐003 Public Works City of McHenry Street Sweeper441Vehicle/EquipmentReplacement152024325,000.00$            21,666.67$               ‐325,000.00$        ‐‐‐‐$ ‐$ 325,000.00$        30‐EQPT‐004 Public Works City of McHenry Wing Truck406Vehicle/EquipmentReplacement202024230,000.00$            11,500.00$               ‐230,000.00$        ‐‐‐‐$ ‐$ ‐$ 30‐EQPT‐005 Public Works City of McHenry Roller450Vehicle/EquipmentReplacement25202450,000.00$              2,000.00$                  ‐50,000.00$            ‐‐‐‐$ ‐$ ‐$ 41‐PARK‐008 Parks & Rec City of McHenry Horse FarmDrivewayPark/LandNew Installation252025100,000.00$            4,000.00$                  ‐‐100,000.00$        ‐‐‐$ ‐$ ‐$ 41‐PARK‐009Parks & Rec City of McHenry Kiwanis Tot Lot Basketball CourtPark/LandReconstruction25202515,000.00$              600.00$  ‐‐15,000.00$            ‐‐‐$ ‐$ ‐$ 41‐EQPT‐006 Parks & Rec City of McHenry Ballfield Rake 144Vehicle/EquipmentReplacement25202515,000.00$              600.00$  ‐‐15,000.00$            ‐‐‐$ ‐$ ‐$ 22‐LEQPT‐003 Police City of McHenry RiflesLight EquipmentReplacement15202555,000.00$              3,666.67$                  ‐‐55,000.00$            ‐‐‐$ ‐$ 55,000.00$           22‐LEQPT‐004 Police City of McHenry Ballistic Shields (18 each)Light EquipmentReplacement5202590,000.00$              18,000.00$              ‐‐90,000.00$            ‐‐90,000.00$           90,000.00$           90,000.00$           22‐EQPT‐016 Police City of McHenry Wells Cargo Utility Traile350Vehicle/EquipmentReplacement20202510,000.00$              500.00$  ‐‐10,000.00$            ‐‐‐$ ‐$ ‐$ 22‐EQPT‐017 Police City of McHenry Utility ‐ Patrol 314Vehicle/EquipmentReplacement5202540,000.00$              8,000.00$                  ‐‐59,000.00$            ‐‐59,000.00$           59,000.00$           59,000.00$           22‐EQPT‐018 Police City of McHenry Utility ‐ Patrol 323Vehicle/EquipmentReplacement5202540,000.00$              8,000.00$                  ‐‐59,000.00$            ‐‐59,000.00$           59,000.00$           59,000.00$           30‐INF‐005 Public Works City of McHenry Box CulvertBarreville Box Culvert Wingwal InfrastructureRehab/Replacement252025200,000.00$            8,000.00$                  ‐‐200,000.00$        ‐‐‐$ ‐$ ‐$ 30‐INF‐006Public Works City of McHenry Large Culvert Boone Creek Spur @ Waters Edge InfrastructureLining50202550,000.00$              1,000.00$                  ‐‐50,000.00$            ‐‐‐$ ‐$ ‐$ 30‐INF‐007 Public Works City of McHenry Multi‐Use Path Dartmoor‐FarmsteadInfrastructureResurfacing252025250,000.00$            10,000.00$               ‐‐250,000.00$        ‐‐‐$ ‐$ ‐$ 30‐INF‐008 Public Works City of McHenry Street Lights Hospital Campus (25 each) InfrastructureReplacement302025250,000.00$            8,333.33$                  ‐‐250,000.00$        ‐‐‐$ ‐$ ‐$ 30‐INF‐009Public Works City of McHenry Street Lights Old Bull Valley Road (4 each) InfrastructureReplacement30202540,000.00$              1,333.33$                  ‐‐40,000.00$            ‐‐‐$ ‐$ ‐$ 30‐EQPT‐006 Public Works City of McHenry Backhoe446Vehicle/EquipmentReplacement252025130,000.00$            5,200.00$                  ‐‐130,000.00$        ‐‐‐$ ‐$ ‐$ 41‐EQPT‐007 Parks & Rec City of McHenry Ballfield RakeVehicle/EquipmentNew Purchase25202615,000.00$              600.00$  ‐‐‐15,000.00$            ‐‐$ ‐$ ‐$ 41‐EQPT‐008 Parks & RecCity of McHenry 3000‐4000 Size Mower 150Vehicle/EquipmentReplacement25202635,000.00$              1,400.00$                  ‐‐‐35,000.00$            ‐‐$ ‐$ ‐$ 41‐EQPT‐009 Parks & Rec City of McHenry Trailer161Vehicle/EquipmentReplacement25202620,000.00$              800.00$  ‐‐‐20,000.00$            ‐‐$ ‐$ ‐$ 22‐EQPT‐019 Police City of McHenry SUV ‐ Patrol313Vehicle/EquipmentReplacement5202659,000.00$              11,800.00$               ‐‐‐59,000.00$            ‐59,000.00$           59,000.00$           59,000.00$           22‐EQPT‐020 Police City of McHenry SUV ‐ Patrol320Vehicle/EquipmentReplacement5202659,000.00$              11,800.00$               ‐‐‐59,000.00$            ‐59,000.00$           59,000.00$           59,000.00$           22‐EQPT‐021 Police City of McHenry SUV ‐ Patrol315Vehicle/EquipmentReplacement5202659,000.00$              11,800.00$               ‐‐‐59,000.00$            ‐59,000.00$           59,000.00$           59,000.00$           22‐EQPT‐022 Police City of McHenry SUV ‐ Patrol316Vehicle/EquipmentReplacement5202659,000.00$              11,800.00$               ‐‐‐59,000.00$            ‐59,000.00$           59,000.00$           59,000.00$           22‐EQPT‐023 Police City of McHenry SUV ‐ Patrol321Vehicle/EquipmentReplacement5202659,000.00$              11,800.00$               ‐‐‐59,000.00$            ‐59,000.00$           59,000.00$           59,000.00$           22‐EQPT‐024 Police City of McHenrySedan ‐ Patrol 322Vehicle/EquipmentReplacement5202659,000.00$              11,800.00$               ‐‐‐59,000.00$            ‐59,000.00$           59,000.00$           59,000.00$           22‐EQPT‐025 Police City of McHenry Sedan ‐ Patrol 312Vehicle/EquipmentReplacement5202659,000.00$              11,800.00$               ‐‐‐59,000.00$            ‐59,000.00$           59,000.00$           59,000.00$           30‐EQPT‐007 Public Works City of McHenry Mowing Tractor 449Vehicle/EquipmentReplacement25202650,000.00$              2,000.00$                  ‐‐‐50,000.00$            ‐‐$ ‐$ ‐$ 30‐EQPT‐008 Public Works City of McHenry Plow Truck408Vehicle/EquipmentReplacement202026210,000.00$            10,500.00$               ‐‐‐210,000.00$        ‐‐$ ‐$ ‐$ 01‐FAC‐003Admin City of McHenry City HallInterior LightingFacilityReplacement50202760,000.00$              1,200.00$                 ‐‐‐‐60,000.00$           ‐$ ‐$ ‐$ 01‐FAC‐004 Admin City of McHenry City HallGeneratorFacilityReplacement302027250,000.00$            8,333.33$                 ‐‐‐‐250,000.00$        ‐$ ‐$ ‐$ 41‐PARK‐010 Parks & Rec City of McHenry East Beach ParkPlayground EquipmentPark/LandReplacement25202735,000.00$              1,400.00$                 ‐‐‐‐35,000.00$           ‐$ ‐$ ‐$ 41‐PARK‐011 Parks & Rec City of McHenry East Beach ParkParking LotPark/LandMajor Rehabilitation25202740,000.00$              1,600.00$                 ‐‐‐‐40,000.00$           ‐$ ‐$ ‐$ 41‐PARK‐012 Parks & Rec City of McHenry Fox RidgeGazeboPark/LandRoof Replacement2520275,000.00$                 200.00$ ‐‐‐‐5,000.00$             ‐$ ‐$ ‐$ GENERAL FUND (MUT) CIP29 297 General Fund (MUT) Capital Projection (2023‐2042)Project Number Department City of McHenryAssetSub Asset/DescriptionAsset ClassTreatmentInterval YearCostAnnualized 20232024202520262027 2028‐2032 2033‐2037 2038‐204241‐PARK‐013 Parks & Rec City of McHenry Freund Field Parking LotPark/LandMajor Rehabilitation25202775,000.00$              3,000.00$                 ‐‐‐‐75,000.00$           ‐$ ‐$ ‐$ 41‐PARK‐014 Parks & Rec City of McHenry Jaycees ParkPlayground EquipmentPark/LandReplacement25202790,000.00$              3,600.00$                 ‐‐‐‐90,000.00$           ‐$ ‐$ ‐$ 41‐PARK‐015 Parks & Rec City of McHenry Jaycees ParkSidewalks & PathsPark/LandMajor Rehabilitation25202730,000.00$              1,200.00$                 ‐‐‐‐30,000.00$           ‐$ ‐$ ‐$ 41‐PARK‐016 Parks & Rec City of McHenry Kiwanis Tot Lot Playground EquipmentPark/LandReplacement25202775,000.00$              3,000.00$                 ‐‐‐‐75,000.00$           ‐$ ‐$ ‐$ 41‐PARK‐017 Parks & Rec City of McHenry Knox ParkPool Lighting SystemPark/LandReplacement50202750,000.00$              1,000.00$                 ‐‐‐‐50,000.00$           ‐$ ‐$ ‐$ 41‐PARK‐018 Parks & Rec City of McHenryKnox ParkTennis Court LightsPark/LandReplacement50202725,000.00$              500.00$ ‐‐‐‐25,000.00$           ‐$ ‐$ ‐$ 41‐PARK‐019 Parks & Rec City of McHenry Knox ParkBaseball Field LightsPark/LandReplacement502027100,000.00$            2,000.00$                 ‐‐‐‐100,000.00$        ‐$ ‐$ ‐$ 41‐PARK‐020 Parks & Rec City of McHenry Knox ParkPool ‐ Mechanical/Electrical Park/LandMajor Rehabilitation502027100,000.00$            2,000.00$                 ‐‐‐‐100,000.00$        ‐$ ‐$ ‐$ 41‐PARK‐021 Parks & Rec City of McHenryMiller RiverfrontParking AreaPark/LandHMA Paving252027100,000.00$            4,000.00$                 ‐‐‐‐100,000.00$        ‐$ ‐$ ‐$ 41‐PARK‐022 Parks & Rec City of McHenry Petersen ParkBaseball Backstops (2 Each) Park/LandReplacement50202710,000.00$              200.00$ ‐‐‐‐10,000.00$           ‐$ ‐$ ‐$ 41‐PARK‐023 Parks & Rec City of McHenry Petersen ParkPicnic Gazebos (2 each)Park/LandRoof Replacement25202710,000.00$              400.00$ ‐‐‐‐10,000.00$           ‐$ ‐$ ‐$ 41‐PARK‐024 Parks & Rec City of McHenry Petersen Farm WindowsPark/LandReplacement25202740,000.00$              1,600.00$                 ‐‐‐‐40,000.00$           ‐$ ‐$ ‐$ 41‐PARK‐025 Parks & Rec City of McHenry Weber ParkSeawallPark/LandReplacement502027100,000.00$            2,000.00$                 ‐‐‐‐100,000.00$        ‐$ ‐$ ‐$ 41‐PARK‐026 Parks & Rec City of McHenry West Beach ParkParking AreaPark/LandMajor Rehabilitation25202775,000.00$              3,000.00$                 ‐‐‐‐75,000.00$           ‐$ ‐$ ‐$ 41‐PARK‐027 Parks & Rec City of McHenry Freund Field Basketball Courts (Pavement) Park/LandReconstruction252027200,000.00$            8,000.00$                 ‐‐‐‐200,000.00$        ‐$ ‐$ ‐$ 22‐EQPT‐026 Police City of McHenry Van ‐ Command 333Vehicle/EquipmentReplacement12202759,000.00$              4,916.67$                 ‐‐‐‐59,000.00$           ‐$ ‐$ 59,000.00$           22‐EQPT‐027 Police City of McHenry SUV ‐ Admin 304Vehicle/EquipmentReplacement7202759,000.00$              8,428.57$                 ‐‐‐‐59,000.00$           ‐$ 59,000.00$           59,000.00$           22‐EQPT‐028 Police City of McHenry SUV ‐ Admin 306Vehicle/EquipmentReplacement7202759,000.00$              8,428.57$                 ‐‐‐‐59,000.00$           ‐$ 59,000.00$           59,000.00$           22‐EQPT‐029 Police City of McHenry SUV ‐ Admin 344Vehicle/EquipmentReplacement7202759,000.00$              8,428.57$                 ‐‐‐‐59,000.00$           ‐$ 59,000.00$           59,000.00$           30‐FAC‐001 Public Works City of McHenry 1415 Industrial Drive Office ACFacilityReplacement252027100,000.00$            4,000.00$                 ‐‐‐‐100,000.00$        ‐$ ‐$ ‐$ 30‐FAC‐002 Public WorksCity of McHenry 1415 Industrial Drive Interior LightingFacilityReplacement25202750,000.00$              2,000.00$                 ‐‐‐‐50,000.00$           ‐$ ‐$ ‐$ 30‐FAC‐003 Public Works City of McHenry 1415 Industrial Drive Parking LotFacilityMajor Rehabilitation252027275,000.00$            11,000.00$              ‐‐‐‐275,000.00$        ‐$ ‐$ ‐$ 30‐INF‐010 Public Works City of McHenry CL Lillian Signal Control CabinetInfrastructureReplacement25202750,000.00$              2,000.00$                 ‐‐‐‐50,000.00$           ‐$ ‐$ ‐$ 30‐INF‐011 Public Works City of McHenryCL Lillian SignalPoles & ArmsInfrastructureReplacement252027100,000.00$            4,000.00$                 ‐‐‐‐100,000.00$        ‐$ ‐$ ‐$ 30‐INF‐012 Public Works City of McHenry CL Wind Creek Signal Control CabinetInfrastructureReplacement25202750,000.00$              2,000.00$                 ‐‐‐‐50,000.00$           ‐$ ‐$ ‐$ 30‐INF‐013 Public Works City of McHenry CL Wind Creek Signal Poles & ArmsInfrastructureReplacement252027100,000.00$            4,000.00$                 ‐‐‐‐100,000.00$        ‐$ ‐$ ‐$ 30‐INF‐014 Public WorksCity of McHenry Multi‐Use Path Veterans ParkwayInfrastructureResurfacing252027125,000.00$            5,000.00$                 ‐‐‐‐125,000.00$        ‐$ ‐$ ‐$ 30‐INF‐015 Public Works City of McHenry Street Lights Pearl Street Bridge (3 each) InfrastructureReplacement30202730,000.00$              1,000.00$                 ‐‐‐‐30,000.00$           ‐$ ‐$ ‐$ 30‐EQPT‐009 Public Works City of McHenry Trailer466Vehicle/EquipmentReplacement25202720,000.00$              800.00$ ‐‐‐‐20,000.00$           ‐$ ‐$ ‐$ 30‐EQPT‐010 Public Works City of McHenry Air Compressor 473Vehicle/EquipmentReplacement25202715,000.00$              600.00$ ‐‐‐‐15,000.00$           ‐$ ‐$ ‐$ 30‐EQPT‐011 Public Works City of McHenry Trailer475Vehicle/EquipmentReplacement25202720,000.00$              800.00$ ‐‐‐‐20,000.00$           ‐$ ‐$ ‐$ 30‐EQPT‐012 Public Works City of McHenry Trailer476Vehicle/EquipmentReplacement25202720,000.00$              800.00$ ‐‐‐‐20,000.00$           ‐$ ‐$ ‐$ 30‐EQPT‐013 Public Works City of McHenry Trailer477Vehicle/EquipmentReplacement25202720,000.00$              800.00$ ‐‐‐‐20,000.00$           ‐$ ‐$ ‐$ 01‐FAC‐005 Admin City of McHenry City HallRoofFacilityReplacement252028750,000.00$            30,000.00$              ‐‐‐‐‐750,000.00$        ‐$ ‐$ 41‐PARK‐028 Parks & Rec City of McHenry McBark Dog Park FencingPark/LandReplacement50202875,000.00$              1,500.00$                 ‐‐‐‐‐75,000.00$           ‐$ ‐$ 41‐EQPT‐010 Parks & Rec City of McHenry Maintenance Cart 152Vehicle/EquipmentReplacement25202810,000.00$              400.00$ ‐‐‐‐‐10,000.00$           ‐$ ‐$ 41‐EQPT‐011 Parks & Rec City of McHenry 3000‐4000 Size Mower 153Vehicle/EquipmentReplacement25202835,000.00$              1,400.00$                 ‐‐‐‐‐35,000.00$           ‐$ ‐$ 41‐EQPT‐012 Parks & Rec City of McHenry 3/4 Ton Pickup 125Vehicle/EquipmentReplacement12202840,000.00$              3,333.33$                 ‐‐‐‐‐40,000.00$           ‐$ 40,000.00$           22‐LEQPT‐005 Police City of McHenry Mobile Radios (32 each)Light EquipmentReplacement102028115,000.00$            11,500.00$              ‐‐‐‐‐115,000.00$        ‐$ 115,000.00$        22‐EQPT‐030 Police City of McHenry Polaris 450 Sportsmen 361Vehicle/EquipmentReplacement2020287,500.00$                 375.00$ ‐‐‐‐‐7,500.00$             ‐$ ‐$ 22‐EQPT‐031 Police City of McHenry Polaris 450 Sportsmen363Vehicle/EquipmentReplacement2020287,500.00$                 375.00$ ‐‐‐‐‐7,500.00$             ‐$ ‐$ 30‐INF‐016 Public Works City of McHenry Street Lights Main Street (24 each)InfrastructureReplacement302028240,000.00$            8,000.00$                 ‐‐‐‐‐240,000.00$        ‐$ ‐$ 30‐INF‐017 Public Works City of McHenry Street Lights Corporate Center (41 each) InfrastructureReplacement302028410,000.00$            13,666.67$              ‐‐‐‐‐410,000.00$        ‐$ ‐$ 30‐INF‐018 Public Works City of McHenry BridgeBull Valley Road over Boone CreekInfrastructureReplacement502028500,000.00$            10,000.00$              ‐‐‐‐‐500,000.00$        ‐$ ‐$ 30‐EQPT‐014 Public Works City of McHenry Forklift452Vehicle/EquipmentReplacement25202835,000.00$              1,400.00$                 ‐‐‐‐‐35,000.00$           ‐$ ‐$ 30‐EQPT‐015 Public Works City of McHenry 3/4 Ton Pickup 432Vehicle/EquipmentReplacement12202840,000.00$              3,333.33$                 ‐‐‐‐‐50,000.00$           ‐$ 50,000.00$           30‐EQPT‐016 Public Works City of McHenry 3/4 Ton Pickup 433Vehicle/EquipmentReplacement12202840,000.00$              3,333.33$                 ‐‐‐‐‐50,000.00$           ‐$ 50,000.00$           30‐EQPT‐017 Public WorksCity of McHenry 3/4 Ton Pickup 434Vehicle/EquipmentReplacement12202840,000.00$              3,333.33$                 ‐‐‐‐‐50,000.00$           ‐$ 50,000.00$           22‐LEQPT‐006 Police City of McHenry HandgunsLight EquipmentReplacement9202955,000.00$              6,111.11$                 ‐‐‐‐‐55,000.00$           ‐$ 55,000.00$           30‐INF‐019 Public Works City of McHenry Street Lights Green Street (24 each)InfrastructureReplacement302029240,000.00$            8,000.00$                 ‐‐‐‐‐240,000.00$        ‐$ ‐$ 30‐EQPT‐018 Public Works City of McHenry Plow Truck (1 Ton Rep) 411Vehicle/EquipmentReplacement152029115,000.00$            7,666.67$                 ‐‐‐‐‐115,000.00$        ‐$ ‐$ 01‐FAC‐006 Admin City of McHenry City HallBoilersFacilityReplacement352030100,000.00$            2,857.14$                 ‐‐‐‐‐100,000.00$        ‐$ ‐$ 41‐EQPT‐013 Parks & Rec City of McHenry Ballfield Rake 147Vehicle/EquipmentReplacement25203015,000.00$              600.00$ ‐‐‐‐‐15,000.00$           ‐$ ‐$ 41‐EQPT‐014 Parks & Rec City of McHenry 3/4 Ton Pickup 124Vehicle/EquipmentReplacement12203040,000.00$              3,333.33$                 ‐‐‐‐‐40,000.00$           ‐$ ‐$ 22‐LEQPT‐007 Police City of McHenryPortable Radios (54 each)Light EquipmentReplacement102030220,000.00$            22,000.00$              ‐‐‐‐‐220,000.00$        ‐$ ‐$ 22‐EQPT‐032 Police City of McHenry CSO ‐ Truck332Vehicle/EquipmentReplacement8203040,000.00$              5,000.00$                 ‐‐‐‐‐59,000.00$           ‐$ 59,000.00$           22‐EQPT‐033 Police City of McHenry Haumark Utility Trailer 351Vehicle/EquipmentReplacement20203010,000.00$              500.00$ ‐‐‐‐‐10,000.00$           ‐$ ‐$ 30‐INF‐020 Public Works City of McHenry BridgeDartmoor over Boone Creek InfrastructureSuperstructure Replacement252030500,000.00$            20,000.00$              ‐‐‐‐‐500,000.00$        ‐$ ‐$ 30‐INF‐021 Public Works City of McHenry Large Culvert Boone Creek Spur @ Front Royal InfrastructureLining50203050,000.00$              1,000.00$                 ‐‐‐‐‐50,000.00$           ‐$ ‐$ 30‐INF‐022 Public Works City of McHenry Large Culvert Edgebrook/Duker Corrugated Steel InfrastructureReplacement752030500,000.00$            6,666.67$                 ‐‐‐‐‐500,000.00$        ‐$ ‐$ 30‐EQPT‐019 Public Works City of McHenry Morbark Chipper 445Vehicle/EquipmentReplacement25203070,000.00$              2,800.00$                 ‐‐‐‐‐70,000.00$           ‐$ ‐$ 30‐EQPT‐020 Public Works City of McHenry Trailer478Vehicle/EquipmentReplacement25203020,000.00$              800.00$ ‐‐‐‐‐20,000.00$           ‐$ ‐$ 30‐EQPT‐021 Public Works City of McHenry 10‐Wheel Dump 416Vehicle/EquipmentReplacement252030180,000.00$            7,200.00$                 ‐‐‐‐‐180,000.00$        ‐$ ‐$ 30‐INF‐023 Public Works City of McHenry Street Lights Adams Industrial (22 each) InfrastructureReplacement302031220,000.00$            7,333.33$                 ‐‐‐‐‐220,000.00$        ‐$ ‐$ 30‐EQPT‐022 Public Works City of McHenry Plow Truck412Vehicle/EquipmentReplacement202031230,000.00$            11,500.00$              ‐‐‐‐‐230,000.00$        ‐$ ‐$ 30‐EQPT‐023 Public Works City of McHenry 3/4 Ton Pickup 423Vehicle/EquipmentReplacement12203150,000.00$              4,166.67$                 ‐‐‐‐‐50,000.00$           ‐$ ‐$ 03‐EQPT‐002 ComDev City of McHenry SUV‐Inspections 220Vehicle/EquipmentReplacement12203230,000.00$              2,500.00$                 ‐‐‐‐‐30,000.00$           ‐$ ‐$ 03‐EQPT‐003 ComDev City of McHenry SUV‐Inspections 222Vehicle/EquipmentReplacement12203230,000.00$              2,500.00$                 ‐‐‐‐‐30,000.00$           ‐$ ‐$ 03‐EQPT‐004 ComDev City of McHenry SUV‐Inspections 226Vehicle/EquipmentReplacement12203230,000.00$              2,500.00$                 ‐‐‐‐‐30,000.00$           ‐$ ‐$ 41‐PARK‐029 Parks & Rec City of McHenry Althoff ParkPlayground EquipmentPark/LandReplacement25203275,000.00$              3,000.00$                 ‐‐‐‐‐75,000.00$           ‐$ ‐$ 41‐PARK‐030 Parks & Rec City of McHenry Althoff ParkParking LotPark/LandMajor Rehabilitation252032280,000.00$            11,200.00$              ‐‐‐‐‐280,000.00$        ‐$ ‐$ 41‐PARK‐031 Parks & Rec City of McHenry Althoff ParkGazeboPark/LandRoof Replacement25203250,000.00$              2,000.00$                 ‐‐‐‐‐50,000.00$           ‐$ ‐$ 41‐PARK‐032 Parks & Rec City of McHenry Center Street ParkGazeboPark/LandRoof Replacement2520325,000.00$                 200.00$ ‐‐‐‐‐5,000.00$             ‐$ ‐$ 41‐PARK‐033 Parks & Rec City of McHenry Creekside ParkParking LotPark/LandMajor Rehabilitation25203230,000.00$              1,200.00$                 ‐‐‐‐‐30,000.00$           ‐$ ‐$ 41‐PARK‐034 Parks & Rec City of McHenry Creekside ParkFencingPark/LandReplacement5020325,000.00$                 100.00$ ‐‐‐‐‐5,000.00$             ‐$ ‐$ GENERAL FUND (MUT) CIP30 298 General Fund (MUT) Capital Projection (2023‐2042)Project Number Department City of McHenryAssetSub Asset/DescriptionAsset ClassTreatmentInterval YearCostAnnualized 20232024202520262027 2028‐2032 2033‐2037 2038‐204241‐PARK‐035 Parks & Rec City of McHenry East Beach ParkBasketball CourtPark/LandReplace Hoops & Resurface25203225,000.00$              1,000.00$                 ‐‐‐‐‐25,000.00$           ‐$ ‐$ 41‐PARK‐036 Parks & Rec City of McHenry Fox RidgeParking LotPark/LandHMA Paving252032150,000.00$            6,000.00$                 ‐‐‐‐‐150,000.00$        ‐$ ‐$ 41‐PARK‐037 Parks & Rec City of McHenry Knox ParkPlayground EquipmentPark/LandReplacement25203290,000.00$              3,600.00$                 ‐‐‐‐‐90,000.00$           ‐$ ‐$ 41‐PARK‐038 Parks & Rec City of McHenry Knox ParkPool FencingPark/LandReplacement50203220,000.00$              400.00$ ‐‐‐‐‐20,000.00$           ‐$ ‐$ 41‐PARK‐039 Parks & Rec City of McHenry Knox ParkBaseball Field FencingPark/LandReplacement50203275,000.00$              1,500.00$                 ‐‐‐‐‐75,000.00$           ‐$ ‐$ 41‐PARK‐040 Parks & Rec City of McHenry Knox ParkPool LinerPark/LandReplacement10203275,000.00$              7,500.00$                 ‐‐‐‐‐75,000.00$           ‐$ ‐$ 41‐PARK‐041 Parks & Rec City of McHenry Knox ParkScoreboardsPark/LandReplacement25203220,000.00$              800.00$ ‐‐‐‐‐20,000.00$           ‐$ ‐$ 41‐PARK‐042 Parks & Rec City of McHenry Lakeland ParkCommunity CenterPark/LandRoof Replacement2520325,000.00$                 200.00$ ‐‐‐‐‐5,000.00$             ‐$ ‐$ 41‐PARK‐043 Parks & Rec City of McHenry North OakPlayground EquipmentPark/LandReplacement25203275,000.00$              3,000.00$                 ‐‐‐‐‐75,000.00$           ‐$ ‐$ 41‐PARK‐044 Parks & Rec City of McHenry Overton Park GazeboPark/LandRoof Replacement2520325,000.00$                 200.00$ ‐‐‐‐‐5,000.00$             ‐$ ‐$ 41‐PARK‐045 Parks & Rec City of McHenry Petersen ParkParking AreaPark/LandMajor Rehabilitation25203290,000.00$              3,600.00$                 ‐‐‐‐‐90,000.00$           ‐$ ‐$ 41‐PARK‐046 Parks & Rec City of McHenry Petersen ParkBeach PathPark/LandMajor Rehabilitation25203250,000.00$              2,000.00$                 ‐‐‐‐‐50,000.00$           ‐$ ‐$ 41‐PARK‐047 Parks & Rec City of McHenry Petersen ParkBeach BathroomsPark/LandRoof Replacement2520325,000.00$                 200.00$ ‐‐‐‐‐5,000.00$             ‐$ ‐$ 41‐PARK‐048 Parks & Rec City of McHenry Petersen ParkConcessions/Maintenance/BathroomPark/LandRoof Replacement25203210,000.00$              400.00$ ‐‐‐‐‐10,000.00$           ‐$ ‐$ 41‐PARK‐049 Parks & Rec City of McHenry Horse FarmFencingPark/LandReplacement25203245,000.00$              1,800.00$                 ‐‐‐‐‐45,000.00$           ‐$ ‐$ 41‐PARK‐050 Parks & Rec City of McHenry Horse FarmElectrical SystemPark/LandMajor Rehabilitation50203250,000.00$              1,000.00$                 ‐‐‐‐‐50,000.00$           ‐$ ‐$ 41‐PARK‐051 Parks & Rec City of McHenry Horse FarmHeating and Air UnitsPark/LandReplacement25203225,000.00$              1,000.00$                 ‐‐‐‐‐25,000.00$           ‐$ ‐$ 41‐PARK‐052Parks & Rec City of McHenry Shamrock Park GazeboPark/LandRoof Replacement2520325,000.00$                 200.00$ ‐‐‐‐‐5,000.00$             ‐$ ‐$ 41‐PARK‐053 Parks & Rec City of McHenry Shamrock Park Basketball CourtsPark/LandMajor Rehabilitation25203215,000.00$              600.00$ ‐‐‐‐‐15,000.00$           ‐$ ‐$ 41‐PARK‐054 Parks & Rec City of McHenry Whispering Oaks Park TrelacePark/LandRemovalNA203215,000.00$              15,000.00$              ‐‐‐‐‐15,000.00$           ‐$ ‐$ 41‐EQPT‐015Parks & RecCity of McHenry 3000‐4000 Size Mower 146Vehicle/EquipmentReplacement25203235,000.00$              1,400.00$                 ‐‐‐‐‐35,000.00$           ‐$ ‐$ 41‐EQPT‐016 Parks & Rec City of McHenry Trailer158Vehicle/EquipmentReplacement25203220,000.00$              800.00$ ‐‐‐‐‐20,000.00$           ‐$ ‐$ 41‐EQPT‐017 Parks & Rec City of McHenry 3/4 Ton Pickup 132Vehicle/EquipmentReplacement12203240,000.00$              3,333.33$                 ‐‐‐‐‐40,000.00$           ‐$ ‐$ 41‐EQPT‐018 Parks & Rec City of McHenry 3/4 Ton Pickup134Vehicle/EquipmentReplacement12203240,000.00$              3,333.33$                 ‐‐‐‐‐40,000.00$           ‐$ ‐$ 30‐FAC‐004 Public Works City of McHenry 1415 Industrial Drive Exterior FaçadeFacilityTuckpointing502032100,000.00$            2,000.00$                 ‐‐‐‐‐100,000.00$        ‐$ ‐$ 30‐FAC‐005 Public Works City of McHenry 1415 Industrial Drive Overhead DoorsFacilityReplacement25203250,000.00$              2,000.00$                 ‐‐‐‐‐50,000.00$           ‐$ ‐$ 30‐INF‐024 Public Works City of McHenry Street Lights Route 120 (West) (26 each) InfrastructureReplacement302032260,000.00$            8,666.67$                 ‐‐‐‐‐260,000.00$        ‐$ ‐$ 30‐EQPT‐024 Public Works City of McHenry Backhoe443Vehicle/EquipmentReplacement252032150,000.00$            6,000.00$                 ‐‐‐‐‐150,000.00$        ‐$ ‐$ 30‐EQPT‐025 Public Works City of McHenry Front End Loader 447Vehicle/EquipmentReplacement252032175,000.00$            7,000.00$                 ‐‐‐‐‐175,000.00$        ‐$ ‐$ 30‐EQPT‐026 Public Works City of McHenry Trailer468Vehicle/EquipmentReplacement25203220,000.00$              800.00$ ‐‐‐‐‐20,000.00$           ‐$ ‐$ 30‐EQPT‐027 Public Works City of McHenry Hot Box469Vehicle/EquipmentReplacement25203225,000.00$              1,000.00$                 ‐‐‐‐‐25,000.00$           ‐$ ‐$ 30‐EQPT‐028 Public Works City of McHenry Plow Truck413Vehicle/EquipmentReplacement202032230,000.00$            11,500.00$              ‐‐‐‐‐230,000.00$        ‐$ ‐$ 41‐EQPT‐019 Parks & Rec City of McHenry 3000‐4000 Size Mower 155Vehicle/EquipmentReplacement25203335,000.00$              1,400.00$                 ‐‐‐‐‐‐$ 35,000.00$           ‐$ 41‐EQPT‐020 Parks & Rec City of McHenry 3/4 Ton Pickup 135Vehicle/EquipmentReplacement12203340,000.00$              3,333.33$                 ‐‐‐‐‐‐$ 40,000.00$           ‐$ 30‐EQPT‐029Public Works City of McHenry Stump Grinder 442Vehicle/EquipmentReplacement25203320,000.00$              800.00$ ‐‐‐‐‐‐$ 20,000.00$           ‐$ 30‐EQPT‐030 Public Works City of McHenry Skid Loader444Vehicle/EquipmentReplacement25203375,000.00$              3,000.00$                 ‐‐‐‐‐‐$ 75,000.00$           ‐$ 30‐EQPT‐031 Public Works City of McHenry 1 Ton Small Dump 427Vehicle/EquipmentReplacement152033115,000.00$            7,666.67$                 ‐‐‐‐‐‐$ 115,000.00$        ‐$ 03‐EQPT‐005 ComDev City of McHenry Truck‐Inspections 223Vehicle/EquipmentReplacement12203430,000.00$              2,500.00$                 ‐‐‐‐‐‐$ 30,000.00$           ‐$ 41‐EQPT‐021 Parks & Rec City of McHenry 3/4 Ton Pickup 122Vehicle/EquipmentReplacement12203440,000.00$              3,333.33$                 ‐‐‐‐‐‐$ 40,000.00$           ‐$ 41‐EQPT‐022 Parks & Rec City of McHenry 1 Ton Pickup 127Vehicle/EquipmentReplacement12203440,000.00$              3,333.33$                 ‐‐‐‐‐‐$ 40,000.00$           ‐$ 41‐EQPT‐023 Parks & Rec City of McHenry 3/4 Ton Pickup 128Vehicle/EquipmentReplacement12203440,000.00$              3,333.33$                 ‐‐‐‐‐‐$ 40,000.00$           ‐$ 41‐EQPT‐024 Parks & Rec City of McHenryVan‐Recreation 130Vehicle/EquipmentReplacement12203430,000.00$              2,500.00$                 ‐‐‐‐‐‐$ 30,000.00$           ‐$ 41‐EQPT‐025 Parks & Rec City of McHenry Van‐Recreation 129Vehicle/EquipmentReplacement12203430,000.00$              2,500.00$                 ‐‐‐‐‐‐$ 30,000.00$           ‐$ 41‐EQPT‐026 Parks & Rec City of McHenry 3/4 Ton PickupVehicle/EquipmentReplacement12203440,000.00$              3,333.33$                 ‐‐‐‐‐‐$ 40,000.00$           ‐$ 30‐INF‐025 Public Works City of McHenry Street Lights Hillside Lane (10 each)InfrastructureReplacement302034100,000.00$            3,333.33$                 ‐‐‐‐‐‐$ 100,000.00$        ‐$ 30‐EQPT‐032 Public Works City of McHenry Morbark Chipper 451Vehicle/EquipmentReplacement25203470,000.00$              2,800.00$                 ‐‐‐‐‐‐$ 70,000.00$           ‐$ 30‐EQPT‐033 Public Works City of McHenry Plow Truck414Vehicle/EquipmentReplacement202034230,000.00$            11,500.00$              ‐‐‐‐‐‐$ 230,000.00$        ‐$ 30‐INF‐026 Public Works City of McHenry BridgePearl Street over FoxInfrastructureDeck Replacement252035500,000.00$            20,000.00$              ‐‐‐‐‐‐$ 500,000.00$        ‐$ 30‐INF‐027 Public Works City of McHenry Large Culvert Green Street Creek CrossingInfrastructureReplacement752035500,000.00$            6,666.67$                 ‐‐‐‐‐‐$ 500,000.00$        ‐$ 30‐INF‐028 Public Works City of McHenry BridgeMillstream over Boone CreekInfrastructureReplacement502035500,000.00$            10,000.00$              ‐‐‐‐‐‐$ 500,000.00$        ‐$ 30‐INF‐029 Public Works City of McHenry Street Lights Blake Boulevard (7 each)InfrastructureReplacement30203570,000.00$              2,333.33$                 ‐‐‐‐‐‐$ 70,000.00$           ‐$ 30‐EQPT‐034 Public Works City of McHenry Plow Truck415Vehicle/EquipmentReplacement202035230,000.00$            11,500.00$              ‐‐‐‐‐‐$ 230,000.00$        ‐$ 30‐EQPT‐035 Public Works City of McHenry 10‐Wheel Dump 417Vehicle/EquipmentReplacement252035180,000.00$            7,200.00$                 ‐‐‐‐‐‐$ 180,000.00$        ‐$ 30‐INF‐030Public Works City of McHenry BridgeGreen Street over Boone CreekInfrastructureReplacement5020363,000,000.00$         60,000.00$              ‐‐‐‐‐‐$ 3,000,000.00$     ‐$ 41‐PARK‐055 Parks & Rec City of McHenry Althoff ParkConcessions & Bathroom Park/LandReplacement50203750,000.00$              1,000.00$                 ‐‐‐‐‐‐$ 50,000.00$           ‐$ 41‐PARK‐056 Parks & Rec City of McHenry Center Street ParkPlayground EquipmentPark/LandReplacement252037100,000.00$            4,000.00$                 ‐‐‐‐‐‐$ 100,000.00$        ‐$ 41‐PARK‐057 Parks & Rec City of McHenry Elm Street Park LandscapingPark/LandReconstruction25203710,000.00$              400.00$ ‐‐‐‐‐‐$ 10,000.00$           ‐$ 41‐PARK‐058 Parks & Rec City of McHenry Homestead Tot Lot Playground EquipmentPark/LandReplacement25203780,000.00$              3,200.00$                 ‐‐‐‐‐‐$ 80,000.00$           ‐$ 41‐PARK‐059 Parks & Rec City of McHenry Knox ParkKnox Park BarnPark/LandRoof Replacement25203725,000.00$              1,000.00$                 ‐‐‐‐‐‐$ 25,000.00$           ‐$ 41‐PARK‐060 Parks & Rec City of McHenry Knox ParkKnox Park BarnPark/LandSiding Replacement502037100,000.00$            2,000.00$                 ‐‐‐‐‐‐$ 100,000.00$        ‐$ 41‐PARK‐061 Parks & Rec City of McHenry Knox ParkTennis CourtsPark/LandReconstruction502037150,000.00$            3,000.00$                 ‐‐‐‐‐‐$ 150,000.00$        ‐$ 41‐PARK‐062 Parks & Rec City of McHenry Liberty Trails Park Playground EquipmentPark/LandReplacement252037120,000.00$            4,800.00$                 ‐‐‐‐‐‐$ 120,000.00$        ‐$ 41‐PARK‐063Parks & Rec City of McHenry Malibu Playground Playground EquipmentPark/LandReplacement25203775,000.00$              3,000.00$                 ‐‐‐‐‐‐$ 75,000.00$           ‐$ 41‐PARK‐064 Parks & Rec City of McHenry McHenry Shores Basketball CourtPark/LandReconstruction25203735,000.00$              1,400.00$                 ‐‐‐‐‐‐$ 35,000.00$           ‐$ 41‐PARK‐065 Parks & Rec City of McHenry Petersen ParkParking AreaPark/LandMajor Rehabilitation252037125,000.00$            5,000.00$                 ‐‐‐‐‐‐$ 125,000.00$        ‐$ 41‐PARK‐066 Parks & Rec City of McHenry Petersen ParkBeach BuildingPark/LandRoof Replacement2520375,000.00$                 200.00$ ‐‐‐‐‐‐$ 5,000.00$             ‐$ 41‐PARK‐067 Parks & Rec City of McHenry Petersen ParkField 3/4 Outfield Fencing Park/LandReplacement50203720,000.00$              400.00$ ‐‐‐‐‐‐$ 20,000.00$           ‐$ 41‐PARK‐068 Parks & Rec City of McHenry Shamrock Park Playground EquipmentPark/LandReplacement252037125,000.00$            5,000.00$                 ‐‐‐‐‐‐$ 125,000.00$        ‐$ 41‐PARK‐069 Parks & Rec City of McHenry Whispering Oaks Park BathroomsPark/LandRoof Replacement2520375,000.00$                 200.00$ ‐‐‐‐‐‐$ 5,000.00$             ‐$ 41‐PARK‐070 Parks & Rec City of McHenry Whispering Oaks Park Picnic ShelterPark/LandRoof Replacement2520375,000.00$                 200.00$ ‐‐‐‐‐‐$ 5,000.00$             ‐$ 22‐EQPT‐034 Police City of McHenry Side by Side365Vehicle/EquipmentReplacement15203725,000.00$              1,666.67$                 ‐‐‐‐‐‐$ 25,000.00$           ‐$ 41‐EQPT‐027 Parks & Rec City of McHenry 3000‐4000 Size Mower 148Vehicle/EquipmentReplacement25203835,000.00$              1,400.00$                 ‐‐‐‐‐‐$ ‐$ 35,000.00$           41‐EQPT‐028 Parks & Rec City of McHenry 3000‐4000 Size Mower 149Vehicle/EquipmentReplacement25203835,000.00$              1,400.00$                 ‐‐‐‐‐‐$ ‐$ 35,000.00$           30‐EQPT‐036 Public Works City of McHenry Plow Truck (1 Ton Rep) 409Vehicle/EquipmentReplacement202038115,000.00$            5,750.00$                 ‐‐‐‐‐‐$ ‐$ 115,000.00$        30‐EQPT‐037 Public Works City of McHenry Front End Loader 448Vehicle/EquipmentReplacement252038175,000.00$            7,000.00$                 ‐‐‐‐‐‐$ ‐$ 175,000.00$        GENERAL FUND (MUT) CIP31 299 General Fund (MUT) Capital Projection (2023‐2042)Project Number Department City of McHenryAssetSub Asset/DescriptionAsset ClassTreatmentInterval YearCostAnnualized 20232024202520262027 2028‐2032 2033‐2037 2038‐204230‐EQPT‐038 Public Works City of McHenry Trailer474Vehicle/EquipmentReplacement25203820,000.00$              800.00$ ‐‐‐‐‐‐$ ‐$ 20,000.00$           41‐EQPT‐029 Parks & Rec City of McHenry Ballfield Rake 145Vehicle/EquipmentReplacement25203915,000.00$              600.00$ ‐‐‐‐‐‐$ ‐$ 15,000.00$           41‐EQPT‐030 Parks & Rec City of McHenry Maintenance Cart 151Vehicle/EquipmentReplacement25203910,000.00$              400.00$ ‐‐‐‐‐‐$ ‐$ 10,000.00$           30‐EQPT‐039 Public Works City of McHenry Leeboy Paver453Vehicle/EquipmentReplacement252039125,000.00$            5,000.00$                 ‐‐‐‐‐‐$ ‐$ 125,000.00$        01‐FAC‐007 Admin City of McHenry City HallWindowsFacilityReplacement5020401,000,000.00$         20,000.00$              ‐‐‐‐‐‐$ ‐$ 1,000,000.00$     01‐FAC‐008 Admin City of McHenry City HallExterior DoorsFacilityReplacement50204050,000.00$              1,000.00$                 ‐‐‐‐‐‐$ ‐$ 50,000.00$           30‐INF‐031 Public Works City of McHenry CL Dart Signal Control CabinetInfrastructureReplacement25204050,000.00$              2,000.00$                 ‐‐‐‐‐‐$ ‐$ 50,000.00$           30‐INF‐032 Public Works City of McHenryCL Dart Signal Poles & ArmsInfrastructureReplacement252040100,000.00$            4,000.00$                 ‐‐‐‐‐‐$ ‐$ 100,000.00$        30‐INF‐033 Public Works City of McHenry Blake/MC Lake Signal Control CabinetInfrastructureReplacement25204050,000.00$              2,000.00$                 ‐‐‐‐‐‐$ ‐$ 50,000.00$           30‐INF‐034 Public Works City of McHenry Blake/MC Lake Signal Poles & ArmsInfrastructureReplacement252040100,000.00$            4,000.00$                 ‐‐‐‐‐‐$ ‐$ 100,000.00$        30‐INF‐035 Public Works City of McHenry Large Culvert John Street Creek CrossingInfrastructureReplacement752040100,000.00$            1,333.33$                 ‐‐‐‐‐‐$ ‐$ 100,000.00$        30‐INF‐036 Public Works City of McHenry Street Lights Mercy Drive (5 each)InfrastructureReplacement30204050,000.00$              1,666.67$                 ‐‐‐‐‐‐$ ‐$ 50,000.00$           30‐EQPT‐040 Public Works City of McHenry Trailer467Vehicle/EquipmentReplacement25204020,000.00$              800.00$ ‐‐‐‐‐‐$ ‐$ 20,000.00$           41‐INF‐001 Parks & Rec City of McHenry Knox ParkMulti‐Use PathInfrastructureResurfacing25204175,000.00$              3,000.00$                 ‐‐‐‐‐‐$ ‐$ 75,000.00$           30‐INF‐037Public Works City of McHenry BV Curran Signal Control CabinetInfrastructureReplacement25204150,000.00$              2,000.00$                 ‐‐‐‐‐‐$ ‐$ 50,000.00$           30‐INF‐038 Public Works City of McHenry BV Curran Signal Poles & ArmsInfrastructureReplacement252041100,000.00$            4,000.00$                 ‐‐‐‐‐‐$ ‐$ 100,000.00$        30‐INF‐039 Public Works City of McHenry CL Royal Signal Control CabinetInfrastructureReplacement25204150,000.00$              2,000.00$                 ‐‐‐‐‐‐$ ‐$ 50,000.00$           30‐INF‐040 Public Works City of McHenryCL Royal Signal Poles & ArmsInfrastructureReplacement252041100,000.00$            4,000.00$                 ‐‐‐‐‐‐$ ‐$ 100,000.00$        30‐EQPT‐041 Public Works City of McHenry Aerial Lift Truck 440Vehicle/EquipmentReplacement252041200,000.00$            8,000.00$                 ‐‐‐‐‐‐$ ‐$ 200,000.00$        30‐EQPT‐042 Public Works City of McHenry Trailer465Vehicle/EquipmentReplacement25204120,000.00$              800.00$ ‐‐‐‐‐‐$ ‐$ 20,000.00$           41‐PARK‐071 Parks & Rec City of McHenry Center Street ParkBasketball CourtPark/LandReplace Hoops & Resurface25204225,000.00$              1,000.00$                 ‐‐‐‐‐‐$ ‐$ 25,000.00$           41‐PARK‐072 Parks & Rec City of McHenry Center Street ParkBackstop (Baseball)Park/LandReplacement50204210,000.00$              200.00$ ‐‐‐‐‐‐$ ‐$ 10,000.00$           41‐PARK‐073 Parks & Rec City of McHenry Center Street ParkFencingPark/LandReplacement50204215,000.00$              300.00$ ‐‐‐‐‐‐$ ‐$ 15,000.00$           41‐PARK‐074 Parks & Rec City of McHenry Cold Springs Park Parking LotPark/LandMajor Rehabilitation25204250,000.00$              2,000.00$                 ‐‐‐‐‐‐$ ‐$ 50,000.00$           41‐PARK‐075 Parks & Rec City of McHenry Creekside ParkPlayground EquipmentPark/LandReplacement25204275,000.00$              3,000.00$                 ‐‐‐‐‐‐$ ‐$ 75,000.00$           41‐PARK‐076 Parks & Rec City of McHenry Creekside ParkGazeboPark/LandRoof Replacement2520425,000.00$                 200.00$ ‐‐‐‐‐‐$ ‐$ 5,000.00$             41‐PARK‐077 Parks & Rec City of McHenry Freund Field Playground EquipmentPark/LandReplacement25204275,000.00$              3,000.00$                 ‐‐‐‐‐‐$ ‐$ 75,000.00$           41‐PARK‐078 Parks & Rec City of McHenry Freund Field Sidewalks & PathsPark/LandMajor Rehabilitation25204215,000.00$              600.00$ ‐‐‐‐‐‐$ ‐$ 15,000.00$           41‐PARK‐079 Parks & Rec City of McHenry Knox ParkGazebo (2 each)Park/LandReplacement50204250,000.00$              1,000.00$                 ‐‐‐‐‐‐$ ‐$ 50,000.00$           41‐PARK‐080 Parks & Rec City of McHenry Knox ParkPool RoofPark/LandReplacement25204250,000.00$              2,000.00$                 ‐‐‐‐‐‐$ ‐$ 50,000.00$           41‐PARK‐081 Parks & Rec City of McHenry Lakeland ParkPlayground EquipmentPark/LandReplacement25204275,000.00$              3,000.00$                 ‐‐‐‐‐‐$ ‐$ 75,000.00$           41‐PARK‐082 Parks & Rec City of McHenry Pebble Creek ParkPlayground EquipmentPark/LandReplacement25204285,000.00$              3,400.00$                 ‐‐‐‐‐‐$ ‐$ 85,000.00$           41‐PARK‐083 Parks & Rec City of McHenry Petersen ParkPlayground EquipmentPark/LandReplacement252042120,000.00$            4,800.00$                 ‐‐‐‐‐‐$ ‐$ 120,000.00$        41‐PARK‐084 Parks & Rec City of McHenry Petersen ParkScoreboardsPark/LandReplacement25204245,000.00$              1,800.00$                 ‐‐‐‐‐‐$ ‐$ 45,000.00$           41‐PARK‐085 Parks & Rec City of McHenry Petersen ParkBasketball & Tennis Courts Park/LandReconstruction502042150,000.00$            3,000.00$                 ‐‐‐‐‐‐$ ‐$ 150,000.00$        41‐PARK‐086 Parks & Rec City of McHenry Petersen ParkSplit Rail FencingPark/LandReplacement25204230,000.00$              1,200.00$                 ‐‐‐‐‐‐$ ‐$ 30,000.00$           41‐PARK‐087 Parks & Rec City of McHenry Petersen ParkChain Link FencingPark/LandReplacement50204250,000.00$              1,000.00$                 ‐‐‐‐‐‐$ ‐$ 50,000.00$           41‐PARK‐088 Parks & Rec City of McHenry Whispering Oaks Park City Sign BoardPark/LandReplacement25204220,000.00$              800.00$ ‐‐‐‐‐‐$ ‐$ 20,000.00$           41‐EQPT‐031 Parks & Rec City of McHenry Trailer156Vehicle/EquipmentReplacement25204220,000.00$              800.00$ ‐‐‐‐‐‐$ ‐$ 20,000.00$           30‐FAC‐006 Public Works City of McHenry 1415 Industrial Drive Exterior DoorsFacilityReplacement50204230,000.00$              600.00$ ‐‐‐‐‐‐$ ‐$ 30,000.00$           30‐FAC‐007 Public Works City of McHenry 1415 Industrial Drive WindowsFacilityReplacement502042500,000.00$            10,000.00$              ‐‐‐‐‐‐$ ‐$ 500,000.00$        30‐FAC‐008 Public Works City of McHenry 1415 Industrial Drive GeneratorFacilityReplacement50204250,000.00$              1,000.00$                 ‐‐‐‐‐‐$ ‐$ 50,000.00$           41‐PARK‐089 Parks & Rec City of McHenry Knox ParkWalking PathPark/LandMajor Rehabilitation252043100,000.00$            4,000.00$                 ‐‐‐‐‐‐$ ‐$ ‐$ 41‐PARK‐090 Parks & RecCity of McHenry Lakeland ParkParking LotPark/LandMajor Rehabilitation25204360,000.00$              2,400.00$                 ‐‐‐‐‐‐$ ‐$ ‐$ 41‐EQPT‐032 Parks & Rec City of McHenry Trailer157Vehicle/EquipmentReplacement25204320,000.00$              800.00$ ‐‐‐‐‐‐$ ‐$ ‐$ 41‐EQPT‐033 Parks & Rec City of McHenry Trailer162Vehicle/EquipmentReplacement25204320,000.00$              800.00$ ‐‐‐‐‐‐$ ‐$ ‐$ 41‐EQPT‐034 Parks & Rec City of McHenry 3000‐4000 Size Mower 163Vehicle/EquipmentReplacement25204335,000.00$              1,400.00$                 ‐‐‐‐‐‐$ ‐$ ‐$ 41‐EQPT‐035Parks & RecCity of McHenry Maintenance Cart 164Vehicle/EquipmentReplacement25204310,000.00$              400.00$ ‐‐‐‐‐‐$ ‐$ ‐$ 30‐INF‐041 Public Works City of McHenry Multi‐Use Path Lincoln RoadInfrastructureResurfacing252043125,000.00$            5,000.00$                 ‐‐‐‐‐‐$ ‐$ ‐$ 30‐EQPT‐043 Public Works City of McHenry Wing Truck404Vehicle/EquipmentReplacement202043230,000.00$            11,500.00$              ‐‐‐‐‐‐$ ‐$ ‐$ 41‐EQPT‐036 Parks & Rec City of McHenry 3000‐4000 Size Mower 165Vehicle/EquipmentReplacement25204435,000.00$              1,400.00$                 ‐‐‐‐‐‐$ ‐$ ‐$ 01‐FAC‐008 Admin City of McHenry City HallRTU'sFacilityReplacement252045340,000.00$            13,600.00$              ‐‐‐‐‐‐$ ‐$ ‐$ 41‐EQPT‐037 Parks & Rec City of McHenry Ventrac Snow Machine 166Vehicle/EquipmentReplacement25204520,000.00$              800.00$ ‐‐‐‐‐‐$ ‐$ ‐$ 30‐INF‐042 Public Works City of McHenry Street Lights Route 31 (11 each)InfrastructureReplacement302045220,000.00$            7,333.33$                 ‐‐‐‐‐‐$ ‐$ ‐$ 41‐PARK‐091 Parks & Rec City of McHenryFox RidgePlayground EquipmentPark/LandReplacement252047150,000.00$            6,000.00$                 ‐‐‐‐‐‐$ ‐$ ‐$ 41‐PARK‐092 Parks & Rec City of McHenry Fox RidgeMaintenance Shed (2 each) Park/LandReplacement25204710,000.00$              400.00$ ‐‐‐‐‐‐$ ‐$ ‐$ 41‐PARK‐093 Parks & Rec City of McHenry Lakeland ParkBaseball Backstop/Outfield FencePark/LandReplacement50204725,000.00$              500.00$ ‐‐‐‐‐‐$ ‐$ ‐$ 41‐PARK‐094 Parks & Rec City of McHenry Miller Riverfront GazeboPark/LandReplacement50204725,000.00$              500.00$ ‐‐‐‐‐‐$ ‐$ ‐$ 41‐PARK‐095 Parks & Rec City of McHenry Petersen ParkPlayground EquipmentPark/LandReplacement25204760,000.00$              2,400.00$                 ‐‐‐‐‐‐$ ‐$ ‐$ 41‐PARK‐096 Parks & Rec City of McHenry Petersen ParkPlayground EquipmentPark/LandReplacement25204790,000.00$              3,600.00$                 ‐‐‐‐‐‐$ ‐$ ‐$ 41‐PARK‐097 Parks & Rec City of McHenry Petersen ParkMaintenance Sheds (4 each) Park/LandReplacement50204720,000.00$              400.00$ ‐‐‐‐‐‐$ ‐$ ‐$ 41‐PARK‐098 Parks & Rec City of McHenry Petersen ParkBaseball FieldsPark/LandReconstruction502047200,000.00$            4,000.00$                 ‐‐‐‐‐‐$ ‐$ ‐$ 41‐PARK‐099 Parks & Rec City of McHenry Riverside Hollow Playground EquipmentPark/LandReplacement25204775,000.00$              3,000.00$                 ‐‐‐‐‐‐$ ‐$ ‐$ 41‐PARK‐100 Parks & Rec City of McHenry Rotary ParkGazeboPark/LandReplacement50204725,000.00$              500.00$ ‐‐‐‐‐‐$ ‐$ ‐$ 41‐PARK‐101 Parks & Rec City of McHenry Veterans Memorial ParkPlayground EquipmentPark/LandReplacement252047125,000.00$            5,000.00$                 ‐‐‐‐‐‐$ ‐$ ‐$ 41‐PARK‐102 Parks & Rec City of McHenry Veterans Memorial ParkPicnic GazeboPark/LandReplacement50204725,000.00$              500.00$ ‐‐‐‐‐‐$ ‐$ ‐$ 41‐PARK‐103 Parks & Rec City of McHenry Veterans Memorial ParkMain GazeboPark/LandMajor Rehabilitation50204750,000.00$              1,000.00$                 ‐‐‐‐‐‐$ ‐$ ‐$ 30‐INF‐043 Public Works City of McHenry Street Lights Municipal Drive (22 each) InfrastructureReplacement302050220,000.00$            7,333.33$                 ‐‐‐‐‐‐$ ‐$ ‐$ 41‐PARK‐104 Parks & Rec City of McHenry Althoff ParkGazeboPark/LandReplacement50205260,000.00$              1,200.00$                 ‐‐‐‐‐‐$ ‐$ ‐$ 41‐PARK‐105 Parks & Rec City of McHenry Center Street ParkGazeboPark/LandReplacement50205225,000.00$              500.00$ ‐‐‐‐‐‐$ ‐$ ‐$ 41‐PARK‐106 Parks & Rec City of McHenry Fox RidgeLighting SystemPark/LandReplacement50205210,000.00$              200.00$ ‐‐‐‐‐‐$ ‐$ ‐$ 41‐PARK‐107 Parks & Rec City of McHenry Fox RidgeGazeboPark/LandReplacement50205225,000.00$              500.00$ ‐‐‐‐‐‐$ ‐$ ‐$ 41‐PARK‐108 Parks & Rec City of McHenry Fox RidgeBaseball FieldsPark/LandReconstruction502052300,000.00$            6,000.00$                 ‐‐‐‐‐‐$ ‐$ ‐$ 41‐PARK‐109Parks & RecCity of McHenry Elm Street Park Sidewalks & PathsPark/LandReconstruction25205215,000.00$              600.00$ ‐‐‐‐‐‐$ ‐$ ‐$ 41‐PARK‐110 Parks & Rec City of McHenry Jaycees ParkGazeboPark/LandReplacement50205225,000.00$              500.00$ ‐‐‐‐‐‐$ ‐$ ‐$ GENERAL FUND (MUT) CIP32 300 General Fund (MUT) Capital Projection (2023‐2042)Project Number Department City of McHenryAssetSub Asset/DescriptionAsset ClassTreatmentInterval YearCostAnnualized 20232024202520262027 2028‐2032 2033‐2037 2038‐204241‐PARK‐111 Parks & Rec City of McHenry Jaycees ParkBackstop (Baseball)Park/LandReplacement50205210,000.00$              200.00$ ‐‐‐‐‐‐$ ‐$ ‐$ 41‐PARK‐112 Parks & Rec City of McHenry Knox ParkBaseball Fields 2 (each)Park/LandReconstruction502052100,000.00$            2,000.00$                 ‐‐‐‐‐‐$ ‐$ ‐$ 41‐PARK‐113 Parks & Rec City of McHenry Knox ParkSkate Park/Bocce Ball FencingPark/LandReplacement50205250,000.00$              1,000.00$                 ‐‐‐‐‐‐$ ‐$ ‐$ 41‐PARK‐114 Parks & Rec City of McHenry McBark Dog Park Gazebos (2 each)Park/LandReplacement50205220,000.00$              400.00$ ‐‐‐‐‐‐$ ‐$ ‐$ 41‐PARK‐115 Parks & Rec City of McHenry Overton Park GazeboPark/LandReplacement50205225,000.00$              500.00$ ‐‐‐‐‐‐$ ‐$ ‐$ 41‐PARK‐116 Parks & Rec City of McHenry Petersen ParkBaseball Field LightsPark/LandReplacement502052100,000.00$            2,000.00$                 ‐‐‐‐‐‐$ ‐$ ‐$ 41‐PARK‐117 Parks & Rec City of McHenry Petersen ParkBeach BuildingPark/LandReplacement50205260,000.00$              1,200.00$                 ‐‐‐‐‐‐$ ‐$ ‐$ 41‐PARK‐118 Parks & Rec City of McHenry Petersen ParkStagePark/LandReplacement502052100,000.00$            2,000.00$                 ‐‐‐‐‐‐$ ‐$ ‐$ 41‐PARK‐119 Parks & Rec City of McHenry Petersen ParkBaseball Backstops (3 Each) Park/LandReplacement50205230,000.00$              600.00$ ‐‐‐‐‐‐$ ‐$ ‐$ 41‐PARK‐120 Parks & Rec City of McHenry Petersen ParkPicnic Gazebos (2 each)Park/LandReplacement50205260,000.00$              1,200.00$                 ‐‐‐‐‐‐$ ‐$ ‐$ 41‐PARK‐121 Parks & Rec City of McHenry Veterans Memorial ParkSidewalks & PathsPark/LandReplacement1002052250,000.00$            2,500.00$                 ‐‐‐‐‐‐$ ‐$ ‐$ 41‐PARK‐122 Parks & Rec City of McHenry Whispering Oaks Park Playground EquipmentPark/LandReplacement302052250,000.00$            8,333.33$                 ‐‐‐‐‐‐$ ‐$ ‐$ 41‐PARK‐123 Parks & Rec City of McHenry Creekside ParkGazeboPark/LandReplacement50205725,000.00$              500.00$ ‐‐‐‐‐‐$ ‐$ ‐$ 41‐PARK‐124 Parks & Rec City of McHenry Freund Field Baseball FieldsPark/LandReconstruction50205750,000.00$              1,000.00$                 ‐‐‐‐‐‐$ ‐$ ‐$ 41‐PARK‐125 Parks & Rec City of McHenry Homestead Tot Lot Sidewalks & PathsPark/LandMajor Rehabilitation50205715,000.00$              300.00$ ‐‐‐‐‐‐$ ‐$ ‐$ 41‐PARK‐126 Parks & Rec City of McHenry Petersen ParkGazeboPark/LandReplacement50205720,000.00$              400.00$ ‐‐‐‐‐‐$ ‐$ ‐$ 41‐PARK‐127 Parks & Rec City of McHenry Shamrock Park GazeboPark/LandReplacement50205750,000.00$              1,000.00$                 ‐‐‐‐‐‐$ ‐$ ‐$ 41‐PARK‐128 Parks & Rec City of McHenry Shamrock Park Baseball FieldsPark/LandMajor Rehabilitation50205740,000.00$              800.00$ ‐‐‐‐‐‐$ ‐$ ‐$ 41‐PARK‐129 Parks & Rec City of McHenry Shamrock Park Basketball CourtsPark/LandReconstruction50205750,000.00$              1,000.00$                 ‐‐‐‐‐‐$ ‐$ ‐$ 41‐PARK‐130Parks & RecCity of McHenry Shamrock Park Baseball BackstopsPark/LandReplacement50205720,000.00$              400.00$ ‐‐‐‐‐‐$ ‐$ ‐$ 41‐PARK‐131 Parks & Rec City of McHenry Elm Street Park ClockPark/LandRehab/Replacement50206225,000.00$              500.00$ ‐‐‐‐‐‐$ ‐$ ‐$ 41‐PARK‐132 Parks & Rec City of McHenry Petersen ParkBeach LightingPark/LandReplacement50206275,000.00$              1,500.00$                 ‐‐‐‐‐‐$ ‐$ ‐$ 41‐PARK‐133 Parks & Rec City of McHenry Whispering Oaks Park BathroomsPark/LandReplacement50206225,000.00$              500.00$ ‐‐‐‐‐‐$ ‐$ ‐$ 41‐PARK‐134 Parks & Rec City of McHenry Whispering Oaks Park Picnic ShelterPark/LandReplacement50206225,000.00$              500.00$ ‐‐‐‐‐‐$ ‐$ ‐$ 30‐FAC‐009 Public Works City of McHenry 1415 Industrial Drive Heating SystemFacilityReplacement502062500,000.00$            10,000.00$              ‐‐‐‐‐‐$ ‐$ ‐$ 30‐FAC‐010 Public Works City of McHenry 1415 Industrial Drive RoofFacilityReplacement502062100,000.00$            2,000.00$                 ‐‐‐‐‐‐$ ‐$ ‐$ 41‐PARK‐135 Parks & Rec City of McHenry Fox RidgeBathroom/Concession Stand Park/LandReplacement502072100,000.00$            2,000.00$                 ‐‐‐‐‐‐$ ‐$ ‐$ 41‐PARK‐136 Parks & Rec City of McHenry Miller Riverfront Lighting SystemPark/LandReplacement50207230,000.00$              600.00$ ‐‐‐‐‐‐$ ‐$ ‐$ 41‐PARK‐137 Parks & Rec City of McHenry Petersen ParkBeach BathroomsPark/LandReplacement50207290,000.00$              1,800.00$                 ‐‐‐‐‐‐$ ‐$ ‐$ 41‐PARK‐138 Parks & Rec City of McHenry Petersen ParkConcessions/Maintenance/BathroomPark/LandReplacement1002072100,000.00$            1,000.00$                 ‐‐‐‐‐‐$ ‐$ ‐$ 41‐PARK‐139 Parks & Rec City of McHenry Veterans Memorial ParkBathroomsPark/LandReplacement50207265,000.00$              1,300.00$                 ‐‐‐‐‐‐$ ‐$ ‐$ 41‐PARK‐140 Parks & Rec City of McHenry Walsh ParkSeawallPark/LandReplacement50207250,000.00$              1,000.00$                 ‐‐‐‐‐‐$ ‐$ ‐$ 30‐EQPT‐044 Public Works City of McHenry Vac Truck454Vehicle/EquipmentReplacement25DROP‐$ ‐$ ‐‐‐‐30‐EQPT‐045 Public Works City of McHenry Plow Truck402Vehicle/EquipmentReplacement20DROP‐‐‐‐30‐EQPT‐046 Public Works City of McHenry Plow Truck403Vehicle/EquipmentReplacement20DROP‐‐‐‐30‐EQPT‐047 Public Works City of McHenry Plow Truck405Vehicle/EquipmentReplacement20DROP‐‐‐‐30‐EQPT‐048Public Works City of McHenry Plow Truck407Vehicle/EquipmentReplacement20DROP‐‐‐‐30‐EQPT‐049 Public Works City of McHenry Plow Truck410Vehicle/EquipmentReplacement20DROP‐‐‐‐30‐EQPT‐050 Public Works City of McHenry 3/4 Ton Pickup 422Vehicle/EquipmentReplacement12DROP‐‐‐‐30‐EQPT‐051 Public Works City of McHenry 3/4 Ton Pickup 431Vehicle/EquipmentReplacement12DROP‐‐‐‐Annual Cost 20232024202520262027 2027‐2031 2032‐2036 2037‐20411,598,142.06$        1,784,000.00$     2,676,000.00$     1,708,000.00$     928,000.00$        2,866,000.00$     10,060,000.00$   9,419,000.00$     7,762,000.00$     GENERAL FUND (MUT) CIP33 301 302 303 304 305 306 307