HomeMy WebLinkAbout24-25 BudgetFiscal Year 2024/2025 Annual BudgetApril 2024
City of McHenry, Illinois
FY2024/2025 Annual Budget
Table of Contents Letter of Budget Transmittal……….…………………………………………………………………………. 4 Introduction…………………………….…………………………………………………………………………. 25 Elected Officials, Department Directors and Primary Administrators…………. 26 History and Demographic Snapshot of McHenry………………………………………. 27 Budget Document Guide…………………………………………………………………………. 29 Basis of Accounting and Budgeting…………………………………………………………… 29 Budget Process Summary………………………………………………………………………… 30 Budget Process Timeline…………………………………………………………………………. 32 City of McHenry Organizational Chart………………………………………………………. 33 Personnel Summary………………………………………………………………………………... 34 Fund Structure Overview………………………………………………………………………… 35 Chart of Accounts Overview…………………………………………………………………….. 38 Summary of Revenues & Expenditures – All Funds…………………………….………………… 51 Summary of Proposed Revenues – All Funds……………………………………………. 52 Comparison of Budget vs. Proposed Revenues – All Funds………………………… 53 Summary of Revenues and Other Financing Sources – All Funds……………….. 54 Summary of Proposed Expenditures – All Funds………………………………………. 55 Comparison of Budget vs. Proposed Expenditures – All Funds…………………... 56 Expenditures by Function – All Funds……………………………………………………… 57 General Fund Revenues, Expenditures & Fund Balance Summary…………………………. 58 General Fund Overview…………………………………………………………………………... 59 General Fund Revenues, Expenditures and Fund Balance Summary…………… 59 General Fund Revenues – Budgeted, Estimated, Proposed…………………………. 60 General Fund Expenditures – Budgeted, Estimated, Proposed……………………. 65 General Fund - Fund Balance……………………………………………………………………. 68 General Fund Operating Budgets………………………………………………………………………….. 71 General Fund Operating Budgets Overview………………………………………………. 72 General Administration……………………………………………………………………………. 75 Elected Officials………………………………………………………………………………………. 81Community Development…………………………………………………………………………. 84 Finance……………………………………………………………………………………………………. 91 Human Resources……………………………………………………………………………………. 99 Economic Development……………………………………………………………………………. 106 Police Commission…………………………………………………………………………………… 115 Police/Dispatch..………………………………………………………………………………………. 118 Public Works – Administration…………………………………………………………………. 142 Public Works – Streets……………………………………………………………………………… 150 Parks and Recreation………………………………………………………………………………... 158 Special Revenue Funds………….………………………………………………………………………………. 170 Tourism……………………………………………………………………………………………………. 171 Pageant………………………..……………………………………………………………………………. 174 Band…………………………………………………………………………………………………………. 177 Civil Defense……………………………………………………………………………………………... 180 Alarm Board…………………………………………………………………………………………….... 183 Audit………………………………………………………………………………………………………… 186 Annexation………………………………………………………………………………………………... 189
Motor Fuel Tax………………………………………………………………………………………….. 192 Local Motor Fuel Tax………………………………………………………………………………….. 195 Developer Donation…………………………………………………………………………………… 198 Tax Increment Finance………………………………………………………………………………. 201 Capital Projects & Debt Service Funds……………………………………………………………………. 204 Debt Service Fund……………………………………………………………………………………… 205 Recreation Center Fund……………………..………………………………………………………. 208 Special Service Area #4……………………………………………………………………………… 216Capital Improvements Fund……………………………………………………………………….. 219 Capital Equipment Fund…………………………………………………………………………….. 222 Capital Asset Maintenance & Replacement Fund ………………………………………… 225 Capital Asset New Projects Fund (New FY23/24)………………………………………... 257 Enterprise Funds………………………………………………………………………………………………….. 260 Water & Sewer Fund…………………………………………………………………………………. 261 Public Works – Water……………………………………………………………………………….. 263 Public Works – Wastewater……………………………………………………………………….. 268 Public Works – Utility……………………………………………………………………………….. 273 Capital Development…………………………………………………………………………………. 285 Utility Improvements………………………………………………………………………………... 288 Marina Operations…………………………………………………………………………………….. 291 Internal Service Funds…………………………………………………………………………………………. 294 Employee Insurance…………………………………………………………………………………. 295 Risk Management…………………………………………………………………………………….. 298 Information Technology...………………………………………………………………………….. 301 Fiduciary Funds……………………………………………………………………………………………………. 306 Employee Flexible Spending………………………………………………………………………. 307 Development Escrow…………………………………………………………………………………. 310 Retained Personnel……………………………………………………………………………………. 313 Revolving Loan…………………………………………………………………………………………. 316 Police Pension…………………………………………………………………………………………… 319 Supplemental Information…………………………………………………………………………………….. 322 Financial Policies Overview……………………………………………………………………….. 323 Fund Balance and Reserve Policy……………………………………………………………….. 325 Community Investment Program Financial Policies……………………………………. 334 Investment Policy……………………………………………………………………………………… 335Purchasing Policy and Procedures………………………………………………………………. 342Glossary of Terms……………………………………………………………………………………… 344
Suzanne Ostrovsky, City Administrator
McHenry Municipal Center
333 Green Street
McHenry, Illinois 60050
Phone: (815) 363-2100
Fax: (815) 363-2119
sostrovsky@cityofmchenry.org LETTER OF BUDGET TRANSMITTAL April 15, 2024 Honorable Mayor and City Council and Residents of McHenry: On behalf of the Department Directors and all employees of the City of McHenry, I am pleased to be able to submit for your consideration the Fiscal Year 2024/2025 Budget. The purpose of this letter of budget transmittal is to provide a broad overview of the budget information contained in the detailed budget document that follows. As always, it is the goal of the City Administration to provide the City Council and general public with a budget document that is transparent and provides an accounting for all of the funds that the City receives and expends.
BACKGROUND: The City’s annual fiscal year budget covers the period beginning May 1st and ending April 30th. The budget document itself, upon completion, contains information relative to estimated revenues and planned operational and capital expenditures for the various funds of the municipality for the identified fiscal year. Although the budget is not formally adopted by the City Council until April of each year, the budget development process officially begins each October with the preparation of the annual tax levy, which is used to fund many of the current programs and services, along with the development/update of the Community Investment Plan. The budget preparation process provides the various divisions and departments of the City with the opportunity to review accomplishments, set goals and objectives, and identify the means for accomplishing these goals and objectives. Every employee of the municipality plays a role in the budgeting process – be it formulation, preparation, implementation, administration, or evaluation. Ultimately, Department Directors, through the Finance Director and City Administrator, are accountable to the City Council and to the residents of McHenry for the performance of departments in meeting the goals and objectives of a full-service municipality, and for the diligent fiscal management of funds, as set forth in the budget document. Department Directors, with input from their respective managers, superintendents and departmental staff, analyze historical data, review existing operational needs, and project anticipated operational needs in order develop line-item budget requests that allow them to maintain or enhance the level of programs and services within their departments. These
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detailed requests submitted to the City Administrator and Finance Director, and meetings are held with Department Directors to review and adjust requests based on identified need and anticipated revenues, keeping in mind the overall services that the municipality must provide to residents. As always, it is the goal of City Administration to present City
Council with a balanced operating budget. This goal is achieved in the attached budget
information. The discussion that follows includes analyses and recommendations based on the best available information that staff has at the time of budget development and reflects a commitment to meeting or exceeding budgetary guidelines as established by the National Advisory Council on State and Local Budgeting and the Government Finance Officers Association best practices on budgeting.
ANALYSIS – GENERAL FUND: The General Fund represents the core revenue and expense fund for municipal functions. General Fund Revenues are comprised of Intergovernmental sources such as Property Tax, State Sales Tax, Local Sales Tax, State Income Tax, State Replacement Tax, State Pull Tabs, Intertrack Wagering, State Communications Tax, and State Grants; Local Sources such as Franchise Fees, Licenses and Permits, Fines and Forfeitures, Charges for Services, and Interest Income; and Miscellaneous sources such as Donations and Reimbursements for Services. General Fund Expenses include personnel, contractual, supplies and other operating expenses related to the following operating budgets - Administration (100.01), Elected Officials (100.02), Community Development (100.03), Finance (100.04), Human Resources (100.05), Economic Development (100.06), Police Commission (100.21), Police (100.22), Police Dispatch (100.23), Public Works-Administration (100.30), Public Works-Streets (100.33), Parks and Recreation (100.41), and Parks Maintenance (100.45).
Please reference the attached spreadsheet titled “General Fund – Revenues,
Expenditures and Fund Balance Summary” for the following discussion.
General Fund Revenue, Expenditure and Fund Balance Summary In summary, FY24/25 proposed General Fund Revenues and Expenditures reflect total revenues of $31,140,129 (an increase of $1,364,875 or 4.58% from the FY23/24 Budget amount – Row 27, Column W), and total operating expenditures of $30,289,012 (an increase of $996,073 or 3.40%, less capital, from the FY23/24 Budget amount – Row 38, Column W).
This reflects a net difference (revenues over expenditures) of $851,117. Importantly,
this means that the proposed General Fund Operating Budget, as presented, is
BALANCED. While COVID-19 has made many revenues volatile over the last few years, the City has been fortunate to see recovery in many revenue sources. While specifics will be detailed in the discussion that follows, the primary reasons for increases in revenues relate to projections for State Income Taxes (an increase of $423,306 or 10.04% - Row 12, Column W), Intertrack
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Wagering Taxes (an increase of $13,000 or 52% - Row 17, Column W), Video Gaming Revenue (an increase of $25,000 or 2.78% - Row 18, Column W), Charges for Services (an increase of $171,000 or 14.09% - Row 22, Column W), Reimbursements (an increase of $609,344 or 19.79% - Row 23, Column W), and Interest Income (an increase of $250,000 or 71.43% - Row 24, Column W). These increases are partially offset by decreases to Property Taxes (a decrease of $40,379 or 0.8% - Row 9, Column W), State Sales Taxes (a decrease of $104,490 or 1.10% - Row 10, Column W), and Franchise Fees (a decrease of $40,000 or 10.53% - Row 19, Column W). Regarding General Fund Expenditures, Personnel costs are proposed to increase by $324,310, or 1.72% (Row 30, Column W) due to Union Contract increases, CPI-U increases for non-bargaining unit employees, the addition of a part-time FOIA Officer in the police department and higher insurance costs. It should be noted that a portion of the Police Dispatch Center costs and the School Resource Officers that are in the middle and high schools are offset by General Fund Revenue increases in the form of reimbursements (reflected in Row 23, Column W) from dispatch partner agencies, customers, and the school districts. Most notably, FY24/25 General Fund Expenditures, as proposed, reflect increased Contractual costs of $400,952 or 10.55% (Row 31, Column W), and Transfers reflect an increase of $248,212 or 5.97% (Row 35, Column W). Reasons for these increases are discussed in detail beginning on page 10 of this memorandum. Finally, the FY24/25 General Fund Expenditures, as identified in this attachment, do not include any transfers for Capital Improvement or Capital Equipment at this time. As discussed in detail on pages 12 and 13 of this memo, the Fund Balance and Reserve Policy defines the process for transferring excess funds for capital needs. In FY22/23 and FY23/24, capital projects were budgeted in the General Fund using Fund balance, which canceled the Fund Balance transfer that would have occurred during the audit process. There are a few carryover projects from FY23/24 that are budgeted to be completed in FY24/25, as well as $100,000 in vehicle replacement purchases included in the General Fund Budget. At this time, estimated Fund Balance totals for FY23/24 show that there will be Fund Balance available to transfer to the Capital Accounts for projects, in accordance with the City’s policy. However, with the creation of the ComEd and Nicor Utility Taxes in FY2023/24, capital projects will be primarily budgeted using Utility Tax funds going forward. This may necessitate updates to the Fund Balance and Reserve Policy; this topic will be brought forward for City Council consideration after the FY23/24 audit has concluded. Carrying the General Fund Revenue and Expenditure estimates through the end of the fiscal year (April 30, 2024), it is projected that the total General Fund Balance will be $19,223,163 at the end of FY23/24 (Column V, Row 44). As defined in the Fund Balance and Reserve Policy, the estimated required 120-day General Fund Balance Reserve would be $10,096,337, so this balance is projected to be approximately $9,126,826 higher than the requirement. However, a significant amount of this fund balance is reserved for specific projects. American Rescue Plan Act (ARPA) COVID funds ($3,682,586) are reserved for the Route 31 widening capital project projected to commence in FY25/26; Public Safety Answering Point (PSAP, or 911) Grant funds ($1,240,442) are reserved specifically for dispatch expenses and are approved for spending by the NERCOM board; and Police Seizure Funds ($221,256) can only
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be allotted to specific Police eligible expenses. The remaining FY23/24 General Fund Balance that could be utilized for capital projects is $4,203,798 (Column V, Row 49); as you will see, a portion of this amount is budgeted for capital projects to be completed in FY24/25.
REVENUES:
General Fund Revenues – FY23/24 Budgeted, FY23/24 Estimated, FY24/25 Proposed General Fund Revenues are derived from a number of sources – taxes, video gaming, licenses and permits, fines and forfeitures, franchise fees, charges for services, reimbursement for services, donations, interest income, and other miscellaneous sources. Some revenues can be clearly identified and estimated based on historical performance or other factors. For example, Property Tax revenue is based on the adoption of the annual property tax levy. However, the economic recession of 2007/2008 and the pandemic have served to remind local governments that economic-based revenues, such as Sales Taxes and State Income Taxes, are not guaranteed and are closely tied to the economy and disposable income. In estimating General Fund Revenues for the purpose of budget development, City Administration takes a conservative approach in order to: 1) ensure that General Fund Revenue projections are not overstated to avoid deficit spending and the need to utilize the General Fund Balance (e.g., 120 day unassigned fund balance) for operational expenses; 2) limit excessive increases in operating expenditures; and 3) maintain a financial “buffer,” in the form of the General Fund Balance, to protect the City from future unforeseen economic threats. Utilizing this philosophy, City Administration then considers past revenue performance, current economic trends, local economic conditions, and economic forecast models developed by the Illinois Municipal League (IML) for use by local governments in developing revenue projections for the purpose of budget development.
FY23/24 Budgeted Revenues (Column U) In FY23/24, total budgeted General Fund Revenues were $29,775,254 (Column U, Row 27). Of this, $5,027,941 (16.9%) was from Property Taxes, $9,460,894 (31.8%) was from the City’s 1% share of the State Sales Tax, $3,866,480 (13.0%) was from the .75% Local Sales Tax, and $4,216,779 (14.2%) came from the City’s share of the State Income Tax. Revenues derived from these four (4) sources were budgeted at $22,572,094 or 75.8% of total General Fund Revenues. Of the remaining $7,203,160 (24.2%) in budgeted General Fund Revenues, $1,213,289 (4.1%) were from Charges for Services, $3,078,871 (10.3%) from Reimbursement for Services, $363,000 (1.2%) from Fines and Forfeitures, $295,000 (1.0%) from Licenses and Permits, $380,000 (1.3%) from Franchise Fees, $900,000 (3.0%) from Video Gaming, $200,000 from Telecommunications Tax (0.7%), $350,000 (1.2%) from Interest Income, and the remaining $423,000 (1.4%) came from all other sources combined.
FY23/24 Estimated Revenues (Column V) The following estimated revenues are based on 10 months of actual revenues and projected through the remainder of the fiscal year (April 30, 2024). Unfortunately, in some cases this estimation is more difficult than simply annualizing by dividing the 10-month actual by 10 and multiplying by 12, due to the timing of when specific revenues are received. Further,
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FY23/24 Actual revenues will not be known and confirmed until approximately 2-3 months (June-July) after the close of the fiscal year due to the timing involved with the receipt of state-shared revenues and, ultimately, the completion of the annual audit in September/October 2024, 4-5 months into the new budget year. At this time, estimated General Fund Revenues are projected to be $31,192,842 (Column V, Row 27) or $1,417,588 (4.8%) higher than FY23/24 Budgeted revenues of $29,775,254. This reflects an estimated decrease of $640,759, or 2.0%, from FY22/23 Actual revenues of $31,833,601. Notably, FY23/24 Estimated Revenues, when compared to FY22/23 Actual revenues and FY23/24 Budgeted revenues, highlight the following:
• (Row 10) State Sales Tax revenue is projected to be $37,185 (0.4%) lower than budgeted and $100,000 (1.1%) lower than the FY22/23 Actual amount.
• (Row 11) Local Sales Tax revenue is projected to be $73,735 (1.9%) lower than budgeted and $30,000 (0.8%) lower than received in FY22/23.
• (Row 10 + Row 11) Combined, total Sales Tax revenue is estimated to be $110,920 (0.8%) lower than budgeted and $130,000 (1.0%) lower than the FY22/23 Actual. State Sales Tax revenues have shown significant signs of an economic recovery since the beginning of COVID-19, but they have recently begun to this year are showing signs of level off. Estimates and proposed amounts for FY24/25 are extremely conservative, as City Administration watches the actual receipts closely. As a reminder, Local Sales Tax revenues do not include the sale of licensed or titled items such as cars, boats or motorcycles. As such, while the economic recovery and resulting increase in the sale of licensed vehicles has had a positive impact on the City’s portion of the State Sales Tax, it has not similarly impacted Local Sales Tax revenues.
• (Row 12) State Income Tax receipts are estimated to be $226,144 (5.4%) higher than budgeted and $58,494 (1.3%) higher than FY22/23.
• (Row 13) State Replacement Tax receipts are estimated to be $53,333 (27.7%) lower than budgeted and $99,766 (40.5%) lower than FY22/23.
• (Row 15) Self Storage Tax receipts are estimated to be $9,433 (7.9%) higher than budgeted and $85,376 (193.8%) higher than FY22/23. These taxes were not budgeted in FY22/23, as the tax was passed by City Council in June of 2022 and went to effect on 1/1/2023.
• (Row 18) Video Gaming revenues are estimated to be $926,806, which is $26,806 (3.0%) higher than budgeted and $15,603 (1.7%) lower than FY22/23.
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• (Row 19) Franchise Fees revenues are estimated to be $34,027 (9.0%) lower than budgeted and $33,105 (8.7%) lower than FY22/23.
• (Row 22) Charges for Services revenues are estimated to be $271,867 (22.4%) higher than budgeted and $98,048 (7.1%) higher than FY22/23.
• (Row 23) Reimbursements for services revenues are estimated to be $425,262 (13.8%) higher than budgeted and $850,720 (32.1%) higher than FY22/23. The large increase over FY23/24 budget is due to Reimbursements for the two school resource officers in the middle schools that were not budgeted.
• (Row 24) Interest Income revenues are estimated to be $493,766 (141%) higher than budgeted and $404,144 (91.9%) higher than FY22/23 due to increased interest rates, as well as fund reserves held for Rt. 31 construction and other purposes.
• (Row 26) Miscellaneous Income revenues are estimated at $4,778 (6.2%) higher than budgeted and $2,043,202 (96.2%) lower than FY22/23. The large decrease over the FY22/23 actual is due to ARPA COVID funds received in FY22/23.
In summary, FY23/24 Estimated Revenues are projected at $1,417,588 (4.8%) higher
than budgeted primarily due to State Income Tax, Video Gaming receipts, Fines and
Forfeitures, Charges for Services, Interest Income, and Reimbursements. When
compared to FY22/23 Actual Revenues, total General Fund Revenues decreased
$640,759 (2.0%). This is primarily due to State and Local Tax receipts, State
Replacement Tax, and Miscellaneous Income.
FY24/25 Proposed Revenues (Column W) FY24/25 Proposed General Fund Revenues represent a net increase of $1,364,875 (4.6%) from FY23/24 Budgeted revenues and a decrease of $693,472 (2.2%) from FY22/23 Actual revenues. Highlights of changes to General Fund Revenues proposed for FY24/25 include:
• (Row 9) At the direction of City Council, the City’s property tax levy was not increased for 2024. This, combined with declining Road and Bridge Taxes and property tax collection rates around 99%, resulted in an estimated Property Tax revenue decrease of $40,379 (0.8%) versus the FY23/24 Budget.
• (Row 10) State Sales Tax revenues are proposed at $9,356,404, which is $104,490 (1.1%) lower than FY23/24 Budget. The City has seen the leveling out of Sales Taxes during FY23/24, so FY24/25 revenue was conservatively decreased.
o The Governor has proposed permanently eliminating the state-wide 1% Grocery Tax and has not proposed covering the losses from other sources for local governments. If this occurs, the City’s Sales Tax revenue would decrease by approximately an additional $900,000. This would be a significant reduction to the City’s overall budget. As of March 1, 2024, the Illinois
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Municipal League is actively lobbying against this proposal on behalf of Illinois municipalities.
• (Row 11) Local Sales Tax revenues are proposed at $3,874,618, an increase of $8,138 (.2%) from the amount budgeted in FY23/24.
• (Row 10 + Row 11) Combined State and Local Sales Tax revenues are proposed at $13,231,022, a decrease of $96,352 (0.7%) from the FY23/24 Budget amount.
• (Row 12) State Income Tax revenues are proposed at $4,640,085, an increase of $423,306 (10.04%) from FY23/24. Regarding State Income Tax revenues, please note the following:
o There are multiple agencies working to restore the Local Government Distributive Fund (LGDF), which includes Income Tax distribution, to its full 10 percent (which was cut to 6% in 2011, changed a few times since then and currently sits at just over 6%). Over the years, the Governor has proposed cutting an additional 10% from the LGDF. Restoring or cutting these funds could represent a large increase or decrease in revenues. Staff will continue to watch these developments closely in case expense adjustments need to be made to offset any decrease in revenue.
• (Row 14) State Telecommunication Tax revenues are proposed at $190,000, which is $10,000 (5.0%) less than the amount budgeted in FY23/24, as revenues have continued to decline over the last few years.
• (Row 15) Self Storage Tax receipts are expected to be $125,000 in FY24/25, an increase of $5,000 (4.2%) from the amount budgeted in FY23/24.
• (Row 18) Video Gaming revenues are proposed at $925,000, a $25,000 (2.78%) increase from the FY23/24 Budget amount.
• (Row 19) Franchise Fees revenues are proposed to decrease by $40,000, or 10.53% from the amount budgeted in FY23/24.
• (Row 20) Licenses and Permits revenues are proposed to decrease by $6,000, or 2.03% from the amount budgeted in FY23/24.
• (Row 22) Charges for Services revenues are proposed to increase by $171,000, or 14.09% from the amount budgeted in FY23/24.
• (Row 23) Reimbursements are proposed to increase $609,344 or 19.79%. This category includes the Police Dispatch Center revenues derived from partner and
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customer agencies served through this facility, police school resource officer reimbursements, police impound fees, and other miscellaneous reimbursements.
• (Row 24) Interest Income is proposed to increase $250,000 (71.43%) due to increasing interest rates.
• (Row 26) Miscellaneous Income is proposed to increase $116,456 or 151.24%, primarily due to anticipated Police Department Grant funds for body cameras.
In summary, FY24/25 Proposed Revenues are $1,364,875 (4.6%) higher than
budgeted in FY23/24 and $52,713 (0.2%) lower than FY23/24 Estimated revenues.
The primary reasons for the proposed increase include an increase in Local Sales Tax
($8,138), an increase to the Income Tax ($423,306), an increase to the Self Storage Tax
($5,000), an increase in Video Gaming revenues ($25,000), an increase in Fines and
Forfeitures revenues ($15,000), an increase to Charges for Services revenues
($171,000), an increase to Reimbursement revenues ($609,344), an increase to
Interest Income ($250,000), and an increase to Miscellaneous revenues ($116,456).
These increases are partially offset by decreases to Property Tax revenue ($40,379),
Sales Tax ($104,490), State Replacement Tax revenue ($70,000), State
Telecommunication Tax revenue ($10,000), Franchise Fees revenues ($40,000), and
Licenses and Permit revenues ($6,000).
EXPENDITURES:
General Fund Expenditures – FY23/24 Budgeted, FY23/24 Estimated, FY24/25
Proposed General Fund Expenditures include personnel, contractual, supplies and other operating expenses related to the following operating budgets - Administration (100.01), Elected Officials (100.02), Community Development (100.03), Finance (100.04), Human Resources (100.05), Economic Development (100.06), Police Commission (100.21), Police (100.22), Police Dispatch (100.23), Public Works-Administration (100.30), Public Works-Streets (100.33), Parks and Recreation (100.41), and Parks Maintenance (100.45). In addition, the General Fund also serves as a funding source for revenue transfers to other municipal accounts found within Special Revenue Funds, Debt Service Funds, Internal Service Funds, and Fiduciary Funds.
FY23/24 Budgeted Expenditures (Column U) In FY23/24, total budgeted expenditures (capital and operating) were $31,881,339. Budgeted capital expenditures were $2,588,400, and budgeted operating expenditures were $29,292,939. While this amount reflected an increase of $2,858,417 (10.8%) from the FY22/23 Actual expenditures (Column T, Row 38), this difference was primarily due to contractual and personnel expenses. Three additional police officers, two lead telecommunicators, and a Communications Specialist were added to the Police, Dispatch,
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and Administration departments, respectively. These three positions added almost $700,000 to the budget. The additional $1.1 million was due to contract step and cost of living adjustments for bargaining unit employees and a 5% increase to non-bargaining unit employees as well as insurance increases. Contractual expenses increased just over $550,000 due to increased legal fees, contractual street resurfacing expenses, Comprehensive Plan expenses, and Façade grant expenses.
FY23/24 Estimated Expenditures (Column V) In general, City Administration – including department directors, superintendents, and supervisors – closely monitors expenditures throughout the year to ensure that operating budgets stay within the approved amounts. The fiscal diligence of all of these individuals most often results in expenditures being less than the amount budgeted. Even with surging prices due to recent inflationary pressures, expenditures have been well managed and continue to fall within the budget. For FY23/24, operating expenditures are estimated at $27,595,037, or $1,697,902 (5.8%) less than the budgeted amount of $29,292,939. Highlights of changes to FY23/24 Estimated Expenditures include:
• (Row 30) Reduced Personnel costs of $1,012,894 (5.4%) resulting from budgeted positions unfilled during the year and lower benefit costs.
• (Row 31) Contractual costs are estimated at $485,064 (12.8%) lower than the original budget, due to projects that are started (including the Comprehensive Plan and Streets Engineering) but not yet completed, and therefore will need to be carried over to FY24/25.
• (Row 32) Supply costs are estimated at $125,972 (10.9%) less than budget.
• (Row 33) Other estimated expenditures are estimated at $73,972 (5.6%) less than the original budget.
• (Row 34) Capital Outlay expenditures are $495,315 less than the original budget; however, funds have been carried over to complete a number of these projects in FY24/25. Note: City Administration anticipates changes to FY23/24 Estimated expenditures due to increases or decreases in revenues and expenses through the end of the fiscal year.
FY24/25 Proposed Expenditures (Column W) FY24/25 proposed operating expenditures represent an increase of $996,073 (3.4%) from the FY23/24 Operating Budget amount of $29,292,939. Highlights of changes to General Fund Expenditures proposed for FY24/25 include:
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• (Row 30) Personnel costs are proposed to increase $324,310 (1.72%) over the amount budgeted in FY23/24. Personnel costs include salaries, overtime, health/dental/life/vision insurance, FICA, Police Pension and IMRF retirement, and uniforms. Significant year-over-year changes include: 1. Personnel costs related to salaries account for a $341,077 increase from FY23/24 to FY24/25 due to contract steps and cost of living adjustments. Employees covered by collective bargaining units IUOE Local 150 (Public Works, Parks employees), FOP Unit 1 (Police Patrol), and FOP Unit 2 (Dispatch) receive contract steps and cost of living adjustments (IUOE Local 150 – 2.25%, FOP Unit 1 – 3.5% and FOP Unit 2 – 2.5%). Wage increases are included for Police Sergeants and other non-bargaining employees based on the previous year’s Consumer Price Index for All Urban Areas (CPI-U), which was 3.34% in 2023. City Administration has used the CPI-U as the marker for non-bargaining unit employee increases since FY15/16. In FY24/25, the increases were set at 3.5%, just above the CPI-U. There is no additional merit component proposed for FY24/25. 2. Police Pension costs are proposed at $2,373,955 (of which $1,663,589 is a transfer to the Debt Service Fund to cover the Pension Obligation Bond). This equates to an increase of $37,427 (1.6%). Police Pension costs are determined by an actuary retained by the Police Pension Board and are based on several factors, including wages, investment rate, and age of the workforce. The City issued the Pension Obligation Bond in 2020 to set the City up to be 100% funded by the required deadline of 2040. 3. A second part-time Freedom of Information Act (FOIA) Officer position has been added to the Police Department budget to process the additional FOIA requests that are anticipated due to the addition of body cameras; this position is budgeted at $21,920. 4. NERCOM has voted to again use PSAP funds to supplement the budget. In FY22/23, $300,000 in PSAP funds was used to cover expenses; this was increased to $500,000 in FY23/24. For FY24/25, $700,000 in PSAP revenues are budgeted to offset dispatch center expenses. Note that the NERCOM board for the dispatch center approved adding two additional Lead Telecommunicator positions to the FY23/24 budget; however, these positions were not filled until December 2023, resulting in salary and benefit savings. 5. Total Benefit costs are proposed to decrease $88,447 (9.4%) due to decreases to insurance elections, FICA, and IMRF costs.
• (Row 31) Contractual costs are anticipated to increase by $400,952 (10.55%) from the amount budgeted in FY23/24 due to the following:
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1. The purchase of Body Worn and In-Squad Cameras for the Police Department will add $265,768 to the FY24/25 budget. The Department will apply for grant funding to cover a portion of this cost; in anticipation of being awarded this grant, $115,456 has been budgeted in Reimbursement Revenue. Note that there will be a recurring annual cost for data storage after the first year of the contract. 2. Streets Department expenses were increased by $74,200 (30.29%) to cover an updated road condition survey. 3. Parks Department expenses were increased by $81,914 (28.29%) due to increased special recreation association (NISRA) dues, fees, and additional parks trip expenses. 4. Additional funds were added to other line items due to expected increases in prices due to inflation.
• (Row 32) Supplies expenditures are proposed to be increased by 0.61% ($7,100) due to increases in prices for all supplies.
• (Row 33) Other expenditures are anticipated to increase by $15,499 (1.18%) due to additional funds budgeted for Special Events.
• (Row 35) Transfers are anticipated to increase by $248,212 (5.97%) due to increased expenses in the Information Technology Fund.
GENERAL FUND BALANCE: On February 1, 2016, City Council adopted a new Fund Balance and Reserve Policy that, in summary, establishes minimum levels for designated funds to ensure stability and meet future needs. This policy meets the reporting requirements of Government Accounting Standards Board (GASB) Statement 54, which requires the formal adoption of a policy for the classification of fund balances to categories other than “unassigned.” The policy was established to provide financial stability in the various municipal funds, ensure adequate cash flow for operations, and provide some assurance that the City will be able to respond to emergencies with fiscal strength. In regard to the General Fund Balance, specifically, the Fund Balance and Reserve Policy states:
“General Fund – The unrestricted fund balance target should be set at 120 days
(4 months) of estimated operating expenditures including those expenditures
reported in other Governmental Funds that receive annual operating transfers,
with the exception of transfers intended to fund capital projects. If the
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unreserved fund balance falls below 120 days, a plan will be developed to return
to the target balance. If the unreserved fund balance reaches a low of 90 days (3
months), the plan will be implemented to return the fund balance to the target
within a reasonable amount of time. One-time revenues shall not be used to fund
current operations.”
This level of fund balance shall provide the capacity to:
• Offset unexpected downturns in elastic revenues due to fluctuations in the
local, state and national economies or the loss of major sales tax
contributor(s);
• Offset negative fiscal changes brought about by action or legislation of
another unit of government or agency;
• Ensure the continued, timely repayment of debt obligations that the City may
have in the event of a financial downturn;
• Provide a sufficient cash flow for daily financial needs at all times; and,
• Provide a funding source for unanticipated expenditures or emergencies that
may occur. As identified, the parameters in this policy help to guide City Administration in the development of the annual budget by ensuring that the General Fund Budget is presented as balanced, revenues over expenditures, while maintaining this reserve. Further, the establishment of the target minimum of 120 days provides clarity in identifying the level of funding that is available – once revenues, expenditures and fund balance are identified – to address the City’s capital needs. In other words, any funds remaining after meeting the operational and reserve needs of the municipality are “Assigned for Capital.” The FY23/24 Budget included a beginning General Fund balance of $17,718,443 (Column U, Row 6), based on FY22/23 audited financial information. Based on FY23/24 budgeted revenues, operating expenditures, and capital expenditures (which were funded with fund balance), it was anticipated that the ending fund balance would be $15,612,358 (Column U, Row 44), with an estimated ending unassigned 120-day fund balance of $9,739,783 (Column U, Row 45). With a total of $4,452,282 reserved for the Rt. 31 widening and other uses discussed on page 4 above, the anticipated balance to be transferred to the Capital Improvement Fund was projected to be $1,420,293 (Column U, Row 49). This figure was used to develop the FY24/25 Budget. As noted previously, the City recently implemented two Utility Taxes to address General Fund Capital needs. The ComEd Utility Tax was implemented for existing capital asset maintenance and replacement, and the Nicor Utility Tax was implemented for new capital assets. The City’s existing Capital Improvement and Capital Equipment Funds will be phased out once projects are completed within those funds; they will be replaced with the Capital Asset Maintenance and Replacement Fund (to be funded by the ComEd Utility Tax) and the Capital Asset New Project Fund (to be funded by the Nicor Utility Tax). As referenced above,
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due to these changes, the Fund Balance and Reserve Policy will likely need to be updated to provide direction for future years where revenues may be greater than expenses.
ANALYSIS – GENERAL FUND OPERATING DEPARTMENTS:
Please reference the attached operating department spreadsheets for the following
discussion. General Fund Operating Departments include personnel, contractual, supplies and other operating expenses for the following departments - Administration (100.01), Elected Officials (100.02), Community Development (100.03), Finance (100.04), Human Resources (100.05), Economic Development (100.06), Police Commission (100.21), Police (100.22), Police Dispatch (100.23), Public Works-Administration (100.30), Public Works-Streets (100.33), Parks and Recreation (100.41), and Parks Maintenance (100.45). These expenditures have already been summarized, in total, as part of the previous discussion of General Fund Revenues and Expenditures. The following narrative will focus on identifying the major points of each operating department. Note, the Budget Variance $ (Column W) and Budget Variance % (Column X) are based on a budget-to-budget comparison from the FY24/25 Budgeted amount to the FY23/24 Budgeted amount.
General Administration (100.01) Overall, the Administration operating budget is proposed to decrease by $80,700 or 5.71% in FY24/25 (Column V, Row 59). Salary/Benefit costs are identified to decrease by a net of $62,562 or 7.76%, primarily due to the removal of expenses budgeted for a retirement payout. Contractual expenditures (Row 21), which includes property tax expenses, insurance administrative expenses, shredding, and other miscellaneous administrative costs, are expected to remain the same in FY24/25. Corporate Legal Fees (Row 22) include the City Attorney, Traffic Attorney and Collective Bargaining representation and are identified to decrease $30,000 in FY24/25. Other expenditures – which includes Administrative Expenses and internal transfers for Risk Management and Information Technology – is proposed to increase by $10,362 (Column V, Row 45).
Elected Officials (100.02) The Elected Officials budget is proposed for a $1,361 increase, or 2.11%, due to an increase to internal transfers for Information Technology. (Column V, Row 37).
Community Development (100.03) The Community Development budget is proposed increase $134,815, or 9.03% (Column V, Row 42).
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Salary/Benefit costs are budgeted to increase by $114,764 (12.42%). This includes $81,488 in non-union salary increases (which incorporates absorbing the transfer of an existing Customer Support Specialist position from Finance) and $33,276 in benefit cost increases. Contractual Services are identified to increase by $6,300 (1.53%). Supplies will remain the same, and the internal transfer for Risk Management and Information Technology will increase by $13,751 (12.38%).
Finance (100.04) Salary/Benefit costs are anticipated to decrease by $59,840 (10.71%) due to moving an existing Customer Support Specialist position to the Community Development Department. Contractual Expenses are expected to increase $5,000 (7.04%) due to higher credit card fees and postage increases. Development Expenses are expected to be remain the same, as no new incentives were added in FY23/24. Transfers for Debt Service, Civil Defense Fund, Information Technology, and Audit Funds are budgeted to increase by $29,910 (1.76%).
Human Resources (100.05) Salaries/Benefit costs are budgeted to increase by $24,571 (8.82%), which is primarily due to salary and insurance increases. Contractual Services are budgeted to decrease by $16,500 (26.48%) due primarily to the removal of the FY23/24 expense for the City Administrator recruitment, while Other Expenses increase by $4,154 (18.97%) due to an increased Information Technology Fund transfer.
Economic Development (100.06) Salary/Benefit costs are budgeted to increase by $7,516 (2.55%) due to salary and insurance increases. Contractual Services increase $6,050 (3.04%) due to increased Marketing expenses. Purchase of Services – Information Technology expenses increase by $2,006 (18.98%).
Police (100.22) The Police budget is proposed at an overall increase of $578,122, or 4.72% from FY23/24. Salary costs (Column W, Rows 7 through 11) are identified to increase by $178,559 due to the addition of a second part-time FOIA officer, sworn salary increases, and non-sworn salary increases. These increases are offset by benefit decreases of $16,030 which are attributable to lower insurance costs due to insurance election changes. . As discussed earlier, Police Pension costs are determined by an actuary retained by the Police Pension Board and are based on a number of factors, including wages, investment rate, and age of the workforce. Contractual Services are budgeted to increase by $252,018 (68.22%) due to the purchase of body-worn and in-car cameras, increased telephone costs and training/travel. Supplies decrease by $16,950 (6.89%) due to lower gasoline usage/costs. The transfer to Information Technology increases by $127,409 (20.51%) due to higher expenses within the Information Technology Fund. Capital Expenses within the Police Department Budget include a speed sign, firearms simulator, furniture, handheld radar units, and miscellaneous police equipment. The FY24/25 capital budget also includes a project to install a security fence for
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a new fueling station at the Public Works garage; seizure funds will be used to pay for this $50,000 expense.
Dispatch Center (100.23) FY24/25 represents the eighth full year of operation for the consolidated dispatch center, NERCOM, which serves 16 area agencies. The proposed FY24/25 budget has been presented and approved by the partners of the dispatch center. The total amount proposed for the dispatch center in FY24/25 is $3,164,925. Salaries/Benefit Costs show a net decrease of $10,464 (0.35%) due to decreased benefit costs. As referenced above, PSAP Grant Funds have been used for the past few years to offset NERCOM’s costs. For FY22/23, the partners voted to use $300,000 in PSAP Grant funds; for FY23/24, this was increased to $500,000 in PSAP Grant funds (which are currently reflected in the General Fund Balance due to timing). The partners voted to increase PSAP grant funds to $700,000 to support the dispatch center for FY24/25. This grant funding has helped to lower the overall cost to the City and the other partners of the dispatch center, and the remaining funds can be used when updates are needed to the Center. As a reminder, the total dispatch center budget is also offset by more than $1.7 million in reimbursements as a result of the partnerships with the City of Woodstock, City of Harvard and McHenry Township Fire Protection District, and through charges for dispatch services paid by customers of the dispatch center. These are reflected as General Fund Revenues and included in Row 23 of the General Fund – Revenues,
Expenditures and Fund Balance Summary sheet.
Public Works Administration (100.30) The overall Public Works Administration budget is proposed to decrease by $19,840 (3.68%) due to decreases to salaries and insurance costs, offset slightly by an increase to transfers for Information Technology.
Public Works Streets (100.33) The FY24/25 Public Works Streets budget is proposed to increase by a total of $125,216 (3.02%) from FY23/24. Salaries/Benefits are proposed to increase by $91,423 (5.42%) due to salary and insurance increases. Additionally, Contractual (Row 21) costs have been increased by $74,200 (30.29%) due to an updated road condition survey expense. Materials and Supplies costs have been reduced by $40,000 (6.97%) due to an analysis of historical trends. Transfers for Information Technology increase $4,823 (18.61%).
Parks and Recreation (100.41) As of FY23/24, the Parks Maintenance department was removed from the Parks and Recreation budget, but all programming expenses related to the Recreation Division not associated with the McHenry Recreation Center are still included. Revenues from recreation programming, which are reflected in General Fund Revenues, offset many of these costs. The overall FY24/25 Parks and Recreation budget is proposed to increase by a total of $254,811 (15.95%). Salary/Benefit costs are identified to increase by a total of $50,795 (7.2%), primarily due to increases to Seasonal Salaries for increased programming; Contractual Services are budgeted to increase by $81,914 (28.29%) due to increased NISRA dues, increased fees, and trip fees; Supplies to increase by $25,400 (23.94%); and Other costs
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to increase by $56,702 (11.41%) due to increases to Special Events expenses and the Information Technology and Recreation Center Transfers. A Capital Expense of $40,000 was added to cover three basketball court renovations.
Parks Maintenance (100.45) The Parks maintenance budget is proposed to increase by $86,685, or 5.78% from FY23/24. Salary/Benefit costs are identified to increase $30,685 (2.67%) due to contract and benefit increases. Contractual expenses will increase by $20,000 (9.64%) due to increased repair expenses. Supplies expenses will increase by $36,000 (25.0%) due to Petersen Farmhouse improvements and increased maintenance costs.
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ANALYSIS – MCHENRY RECREATION CENTER:
Please reference the attached spreadsheet titled “Recreation Center – Fund Summary”
for the following discussion. The McHenry Recreation Center officially opened on February 29, 2016. With more than 800 memberships sold prior to the opening date, the McHenry Recreation Center exceeded all expectations through its third full year of operation. Unfortunately, the COVID-19 pandemic changed the outlook of the Recreation Center Fund, and revenues remain unable to meet the demands of increasing expenses. Staff is working diligently to produce a plan to make sure operating costs are covered with operating revenues. At the close of FY20/21 and FY21/22, the McHenry Recreation Center was required to use $183,183 and $137,793 of the Recreation Center Fund Balance, respectively, to balance the operating expenses. This left an ending fund balance of $99,076 at the end of FY21/22. This Fund Balance was intended to be used to pay for future capital needs of the facility and/or any recreation center expansion efforts, but was instead used to cover operating needs. During FY22/23, a $100,000 General Fund transfer was made to the Recreation Center to help cover operating expenses and debt service as the Center continued to recover from COVID-19 closures and declining memberships. Recreation Center revenues are directly tied to memberships, which decreased dramatically in FY20/21, stabilized in FY21/22 and have been slowly increasing in FY22/23 and FY23/24. Therefore, estimated actual revenues for FY23/24 are above budgeted amounts by $42,358 (Columns T and U, Row 30). FY23/24 expenditures directly related to the operation of the facility (Salaries/Benefits, Contractual Services and Supplies) are estimated at $25,892 higher than the budgeted amounts due to unbudgeted and unforeseen health insurance expenses. Total Estimated Expenses are expected to be $47,505 over budget, primarily due to an unexpected capital expense ($21,740 to replace a failed water heater). In developing the FY24/25 proposed revenue and expenditures budget, staff continues to estimate revenues conservatively to account for the slow increases in membership. An additional $150,000 Transfer from the General Fund has been included in the budget to cover the Recreation Center Debt Service payment and ensure that the fund is not running in a deficit. Staff is closely watching memberships and will continue to actively market the Recreation Center. Additionally, monthly membership fees have recently been increased to help alleviate some of the increasing operating expenses (i.e., minimum wage increases and material and supplies increases due to inflation). Revenues are proposed at $854,500, which is $71,344 (9.11%) higher than the budgeted amount in FY23/24. Total Expenditures for FY24/25 are budgeted to be $849,826, or $60,570 (7.67%) higher than FY23/24.
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ANALYSIS – WATER AND SEWER FUND: The Water and Sewer Fund is an enterprise fund – that is, a business-type fund utilized to account for operations and activities that are financed and operated in a manner similar to a private business enterprise, and where the cost of providing goods and services to the general public on a continuing basis is expected to be recovered primarily through user charges, including operating costs and capital improvement costs related to the maintenance of the water and sewer utility systems. These charges fund the operations of the Water, Wastewater and Utility Divisions in the Department of Public Works. The operating functions of these three divisions are to provide a safe and reliable supply of high-quality potable water and to protect public health and the environment by treating sewage to meet stringent environmental standards prior to discharge. Expenses for the Utility Division are split between the Water and Wastewater Divisions, with approximately 63.7% of operating expenses paid from the Water Division and the remaining 36.3% paid from the Wastewater Division. Water and sewer revenues are derived directly from water and sewer sales, base charges, connection fees, and service penalties. These revenues should be sufficient to fund the operating and capital costs for the Water, Wastewater and Utility Divisions. Importantly, water and sewer revenues are driven by consumption and, as such, with a growing awareness of water conservancy (which the City supports) and wetter than average summer months, consumption has been relatively flat over the last ten years. The City commissioned a water and sewer rate study that was completed in FY13/14. The results of this analysis identified the need to adjust water and sewer rates at that time and to annually review and adjust water and sewer rates based on operational costs and implement water and sewer base fees to fund utility system capital improvements. As a reminder, Base Fee rate adjustments were completed during FY21/22 to directly address capital needs within the Water and Sewer Funds. As a result, water and sewer sales and service penalties will be designated for operating costs and will be analyzed with the budget process each year to ensure they meet all operating needs only. The narrative that follows provides a snapshot of the status of the Water and Sewer Fund and identifies operational and capital expenses.
Please reference the attached worksheets titled “Water and Sewer Fund Summary (Fund
510, Department 31 Water, Water and Sewer Fund Summary (Fund 510, Department 32
Sewer, and Water and Sewer Fund Summary (Fund 510, Department 35 Utility)” for the
following discussion.
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Water and Sewer Fund Revenues, Expenditures and Capital
FY24/25 Water Division FY24/25 Water Division operating expenditures are proposed at $2,573,791, an increase of $87,973 (3.54%) from FY23/24. This increase is due primarily to increasing personnel costs and benefit increases, as well as increases to Contractual Services, Materials and Supplies and Transfers to Information Technology. A 5% water rate increase is recommended for
FY24/25 and will be brought before the City Council for consideration in mid-2024.
Water Capital Asset Maintenance and Replacement Projects It is estimated that the capital base charge of $8 will generate $550,000 in FY24/25 for capital projects. In FY24/25, this amount, along with reserves in the Water/Sewer Fund, will be used to fund the following water system capital projects identified in the Community Investment Plan - $800,000 for Water Tower 4 Repainting, $150,000 for Water Plant 2 Control Upgrade and MCC Relocation, $85,000 for Well 6 Pump Replacement & Aquifer Rehabilitation, and $250,000 for Kane Street Water Main Replacement.
FY24/25 Wastewater Division FY24/25 Wastewater Division operating expenditures are projected at $3,661,956, an increase of $118,160 (3.33%) from FY23/24. This increase is due to increasing salary and benefit costs, as well as repair and maintenance and material and supplies costs. A 5%
sewer rate increase is recommended for FY24/25 and will be brought before the City
Council for consideration in mid-2024.
Sewer Capital Asset Maintenance and Replacement Projects It is estimated that the existing $7 capital base charge will generate $520,000 in FY24/25 for capital projects. This amount, along with existing Water and Sewer Fund Balance, will be used to complete capital projects. In FY24/25, the following sewer capital projects are identified in the Community Investment Plan - $178,504 for Freund Lift Station Pump and Mechanical Upgrade (Bidding & Construction), $325,000 for Sanitary Sewer Lining Annual Program, $20,000 for MCC 50 & MCC 70 HVAC Replacement, $40,000 for Dryer Rotary Joint Replacement, and $100,000 for Secondary Clarifier Drive Rebuilds (Clarifiers 1-4).
FY24/25 Utility Division FY24/25 Utility Division operating expenditures are projected at $1,029,088, a decrease of $28,782 (2.72%) from FY23/24. Personnel Costs have decreased by $12,282 due to reduced benefit costs due to different insurance elections, and Contractual and Supplies expenses were decreased as well to better match actuals. As discussed above, the Utility Division is funded through transfers from the Water and Wastewater Division revenues. If transfers from the Water and Wastewater Divisions exceed expenses within the Utility Division, adjustments will be made in the following fiscal years, which may result in lower operating budgets for the Water and Wastewater Divisions.
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ANALYSIS – CAPITAL IMPROVEMENT/CAPITAL EQUIPMENT PROJECTS: As stated earlier, the Capital Improvement and Capital Equipment Funds will be phased out as projects that were budgeted in those two funds are completed. These will be replaced by the newly-created Capital Asset Maintenance and Replacement Fund (funded by ComEd Utility Taxes) and the Capital Asset New Project Fund (funded by Nicor Utility Taxes). Any remaining fund balance will be transferred to the Capital Asset Maintenance and Replacement Fund to address maintenance of existing infrastructure and equipment. The following capital projects have been identified for implementation and funding through the FY24/25 General Fund budget. These include a combination of new projects as well as projects identified for “carryover” or “rebudgeting” from FY23/24 due to timing of the fiscal year end. As a reminder, as of FY21/22, the Local Street Program is funded primarily through Motor Fuel Tax revenues (as distinct from General Fund revenues).
General Fund Projects using Fund Balance (in Administration Budget) Those projects with asterisks * are funded in whole or in part from non-municipal sources. Streets/Sidewalks/Signals South Main Street Parking Lot Engineering - $40,000 (Rebudget from FY23/24) Riverside Streetscape Design - $157,000 (Rebudget from FY23/24) Bull Valley Rd LBFP Phase I Engineering - $209,970* (Partial Rebudget from FY23/24) Riverside Sidewalk Engineering - $23,000 (Rebudget from FY23/24) Public Facilities City Gateway Entrance Signs - $240,000 (Rebudget from FY23/24) Motor Pool Vehicle Replacement - $50,000 Roller - $50,000
Capital Improvements/Equipment Fund Projects Public Safety License Plate Reader System - $35,000 (Rebudget from FY23/24) Streets/Sidewalks/Signals Venice Avenue Design - $48,000 (Rebudget from FY23/24)
Capital Asset Maintenance and Replacement Fund Projects Parks and Recreation Knox Park Skate Park Improvements - $25,000 Motor Pool Wing Truck - $135,715 (Rebudget)
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Concrete Truck - $82,200 (Rebudget) 1-Ton Dump - $135,000 (Rebudget) Patrol SUV Replacements – $295,000 Parks and Community Development Vehicle Replacements - $110,000 Maintenance Cart - $10,000 Street Sweeper - $335,000 Streets/Sidewalks/Signals South Main Street Parking Lot Paving - $350,000 Street Lights (Route 120) - $30,000
Motor Fuel Tax/Local Motor Fuel Tax Projects Streets/Sidewalks/Signals Local Street Program - $1,500,000 (MFT) Bull Valley Rd.* - $195,000 (Partial MFT) Local Street Program - $540,000 (Streets Expense Line Item) Oakwood Dr. Bridge Rehab Engineering - $159,770 (Streets Expense Line Item) Local Street Program - $330,000 (Local MFT) Barreville Rd. Engineering - $50,000 (Local MFT) Green St. STP - $93,000* (Partial MFT) Total General Fund = $1,167,459 Total Capital Improvements/Equipment Fund = $83,000 Total Capital Maintenance & Replacement Fund = $1,507,915 Total Motor Fuel Tax Fund = $1,730,400 Total Local Motor Fuel Tax Fund = $380,000 Total Non-Municipal Funding Sources = $359,881
Total Amount Funded = $5,228,655 Note that this includes General Fund capital projects only. Additional capital projects are included in the Information Technology Fund, Developer Donations Fund, and TIF Fund budgets. Water and Sewer Fund capital improvement and capital equipment projects were included as part of the review of this fund above.
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Fiscal Year 2024/2025 Annual Budget
Introduction
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Elected Officials Wayne S. Jett, Mayor Ward 1 Victor A. Santi, Alderman Ward 2 Andy Glab, Alderman Ward 3 Frank McClatchey, Alderman Ward 4 Chris Bassi, Alderwoman Ward 5 Shawn Strach, Alderman Ward 6 Michael Koch, Alderman Ward 7 Sue Miller, Alderwoman City Clerk Trisha Ramel Department Directors and Primary Administrators Suzanne Ostrovsky City Administrator John Birk, Chief of Police Ann Campanella, Director of Human Resources Bill Hobson, Director of Parks and Recreation Carolyn Lynch, Director of Finance Doug Martin, Director of Economic Development Ross Polerecky, Director of Community Development Steve Wirch, Director of Public Works Monte Johnson, Deputy City Clerk
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History and Demographic Snapshot of McHenry McHenry is located in east-central McHenry County, 55 miles northwest of the Chicago Loop and 35 miles from O’Hare International Airport. The City is centered on two major State highways – Illinois Route 31, which runs north/south from Wisconsin to South Elgin; and Illinois Route 120, which runs east/west from Woodstock to Park City. The City consists of approximately 13 square miles in land area. In 1832, Major William McHenry led an expeditionary force through northern Illinois during the Black Hawk War. Settlement of the Fox River Valley began over the next few years, and on the river's west bank, at the site of an old Indian ford, the hamlet of McHenry established in 1836. The McLean, Wheeler, McCullom, and Boone families were influential in the community's early years. A sawmill, hotel, and ferryboat were in operation by 1837, and legislation creating McHenry County was passed that year. The village served as county seat until 1844. Gristmills started along newly dammed Boone Creek, and a wagon road entered town from the south in 1851. In 1864, the famed Riverside Hotel was built and still stands today. George Gage, who served as the region's first state senator (1854–1858), owned the lands west of the millpond, and was able to secure the route of the Fox Valley Railroad (afterward a branch of the Chicago & North Western) from Chicago in 1854. Consequently, Gagetown (later West McHenry) began to eclipse the older east side of town containing the Riverside section and Green Street area, once known as Centerville. This can still be detected in the distinct commercial pattern that characterizes McHenry’s “downtown.” The village incorporated in 1872. Though there were fewer than 800 inhabitants, commerce flourished. By 1876, there were seven churches and over 80 enterprises, including flour mills, harnessmakers, a pickle factory, a brewery, seven saloons, and a newspaper. The newspaper, the
McHenry Plaindealer, was in publication from 1875 to 1985. Over the next 50 years, McHenry grew slowly. During the 1920s, the town became known as a resort destination because of the Fox River, surrounding lakes, and easy accessibility from Chicago. Bands played at local pavilions, trainloads of visitors arrived to tour the famous lotus beds, and summer cottages proliferated along the Fox River. A boat-building industry flourished; marine recreation still remains important. For decades, McHenry took very seriously its title as the "Gateway to the Chain-of-Lakes,” and this is still evidenced today in the city’s motto, “Heart of the Fox River.” With the advent of the automobile, State Route 120 crossed the Fox River on a new two-lane bridge. The old wagon trail, now Highway 31, doglegged along the same route for a critical half mile before turning north toward Wisconsin. These configurations effectively relocated the city's commercial center to Route 120, and also had the unintended side effect of isolating the original business districts (West Main, Riverside Drive, and Green Street). In addition to its beauty and strong attraction to tourists, McHenry owed its growth to the stability provided by the many farmers who worked the fertile land, as well as the establishment of industry with new factories such as Admiral, Borden and The Hunter Boat Company. The Fox River helped facilitate the import and export of lumber, cigars, clay, food products and brewing, which all helped
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draw new residents to the area. The drainage of a large 60-acre pond that previously divided the community in half contributed to increased development and improved roadways, while the railroad allowed commuters to find this area the perfect place to settle with their families. A new wave of industry, including automotive components, electronics, and metalworking, swept into town after World War II. The Northern Illinois Medical Center, begun in 1956 as a 23-bed community hospital, evolved into a regional trauma center serving two states. Beginning in the late 1940s, subdivisions were annexed on all sides of the city. By this time, many residents were commuting to work in other localities, including Chicago. McHenry's population tripled from 2,080 in 1950 to 6,772 in 1970, and tripled again to 21,501 in 2000. The City of McHenry’s current population is approximately 28,117, including approximately 11,018 occupied housing units, 8,291 of which are owner-occupied and 2,727 of which are renter-occupied, with an average household size of 2.5 and a median household income of $83,651. The median age is 42.2, 26.9% of which have bachelor’s degrees or higher (of those 25 years or older). The City’s three largest employment industry sectors are Healthcare (16.8%), Retail Trade (13.6%) and Administration (13.1%). Currently, homes for sale in McHenry, IL have an average price of $302,519. On the average, homes in McHenry, IL sell after 18 days on the market as compared to the national average of 42 days on the market. The average sale price for homes in the City of McHenry over the last 12 months is $296,500, which is up 7% from the average home sale price over the previous 12 months. Approximately 606 homes have sold in McHenry over the past 12 months. The City’s 2023 EAV was $918,922,607.
Green Street looking south from State Route 120 (circa 1920s)
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Budget Document Guide This budget document is prepared with two major objectives in mind. First, to provide citizens and others interested in the City’s finances with complete and understandable information regarding the budget. Second, to develop an annual fiscal plan that will assist City leaders in making better decisions and enhance financial accountability. This document shall serve as:
Policy Document As a policy document, the City Council has established specific strategies to achieve its goals through policy decisions as noted in the City Administrator’s letter of transmittal. These sections include:
• A budget message, included in the transmittal letter, that articulates priorities and budget issues, particularly major issues affecting budget decisions;
• Short-term initiatives that guide development of the budget in the upcoming year; and
• General information describing each budget unit’s prior year accomplishments and budget year goals and objectives.
Operations Guide As an operations guide, the budget document describes activities, services, and functions carried out by the organizational units. In addition, it provides an organizational chart and summary of authorized personnel for the prior year and the budget year.
Financial Plan As a financial plan, the budget document describes all funds subject to appropriation in the fund structure overview section. In addition, all summaries of all major revenues and expenditures are provided in summary tables. The final budget also includes actual General Fund revenues for the FY17/18 through FY22/23 and estimated actuals for FY23/24 as well as budget amounts for FY23/24 and FY24/25. Finally, the summary section includes information as the projected changes in fund balances for all appropriated funds.
Communication Device The Budget Document contains narratives, supplemented with tables and charts, which present the budget in a manner that is simple and understandable. The Proposed FY24/25 Budget is available for public review at the McHenry Municipal Center, 333 S. Green Street, McHenry, as well as on the City’s website at www.cityofmchenry.org, both before and after adoption by the City Council. Basis of Accounting and Budgeting The City of McHenry uses the modified accrual basis of accounting to budget and account for transactions of the governmental funds. Under this basis of accounting, revenues are recognized when susceptible to accrual (when they are measurable and available), and expenditures are recognized when the fund liability is incurred. For the City’s proprietary funds, the City uses the accrual basis of accounting. Under this basis, revenues are recorded when earned and expenses are recorded when the liability is incurred. The City prepares the budgets for proprietary funds consistent with this basis except that capital outlay items are included in the budget.
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The City prepares its budget on a basis consistent with generally accepted accounting principles. The City appropriates funds for capital projects on a fiscal year basis. The Capital Projects section of this document includes descriptive information on each project with estimated costs and financing sources. Budget Process Summary
Budget Process Overview The City’s annual fiscal year budget covers the period beginning May 1st and ending April 30th and contains information relative to estimated revenues and planned operational and capital expenditures for the various funds of the municipality for the identified fiscal year. Although the budget is not formally adopted by the City Council until April of each year, the budget development process officially begins each October with the preparation of the annual tax levy, which is used to fund many of the current programs and services, along with the development/update of the Community Investment Plan (CIP). The budget preparation process provides the various divisions and departments of the City with the opportunity to review accomplishments, set goals and objectives, and identify the means for accomplishing these goals and objectives.
Capital Improvement Plan/Community Investment Plant Previous to FY21/22, the City of McHenry utilized a five-year Capital Improvement Program as a planning tool for the identification of capital improvement and capital equipment projects. In an effort to develop a more useful short and long-term planning and budgeting tool for capital improvement and capital equipment items, the City developed a new Community Investment Plan document to replace the Capital Improvement Plan beginning in FY22/23. This document provides more accurate financials for capital acquisition and replacement over a 20-year period. This document is also reviewed and updated on an annual basis.
Budget Roles and Responsibilities Every employee of the municipality plays a role in the budgeting process – be it formulation, preparation, implementation, administration, or evaluation. Ultimately, Department Directors, through the City Administrator, are accountable to the City Council and to the residents of McHenry for the performance of departments in meeting goals and objectives as they are laid out in the budget document. Department Directors, with input from their respective managers, superintendents and departmental staff analyze historical data, review existing operational needs, and project anticipated operational needs in order develop detailed line-item budget requests that allow them to maintain or enhance the level of programs and services within their departments. These detailed requests are then submitted to the City Administrator and Finance Director, meetings are held with Department Directors to adjust requests based on anticipated revenues keeping in mind the overall needs of the municipality, and the fund line item requests found in the attached budget document are identified.
Budget Officer Finance System In FY19/20, the City adopted the Budget Officer Finance System after using the appropriation method previously. The annual budget serves in lieu of the appropriation ordinance and must be adopted prior to the beginning of the fiscal year. The Illinois Optional Municipal Budget Act, passed by the Illinois General Assembly in 1967, allows municipalities to use the budget as the legal document to
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spend public monies. Prior to the budget being passed, the document must be made available for public inspection at least ten days prior to its passage. A notice must be published not less than one week after the budget is made available for the public inspection and at least one week prior to the public hearing.
Budget Amendment Process During the fiscal year it may be necessary, from time to time, to amend the approved budget for spending that was not planned for during the budget process. Budget amendments are brought before Council, per the Purchasing Policy and Procedures approved in 2016 and updated in 2020.
Budgetary Controls Without proper internal financial controls, the budget document will not serve its role as a guidance tool for City programs and projects. To this end, the Finance Department prepares monthly reports which are reviewed by the Finance Director, respective Department Directors, and the City Administrator. These monthly reviews provide, at a minimum, an opportunity to make operational adjustments throughout the year as necessary. Any deviations from the fund budgetary amounts are discussed in this document and, when necessary, solutions are presented. Quarterly financial reports are also transmitted to the City Council via a City Council Meeting Consent Agenda to ensure that the elected body is consistently apprised of the status of municipal revenues and expenditures.
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Budget Process Timeline Tuesday, January 2, 2024 City Administrator, Finance Director distribute instructions for budget preparation to Department Directors Friday, January 19, 2024 Department Directors submit budget requests to City Administrator and Finance Director – revenues and expenditures only (no narratives) January 22-February 2, 2024 City Administrator and Finance Director review budget requests with respective Department Directors Friday, February 2, 2024 Department Directors submit completed budget narratives to City Administrator February 5 - March 1, 2024 Preparation of the Draft FY24/25 Budget Monday, March 4, 2024 Transmit Draft FY24/25 Budget to City Council (operating funds) Monday, March 18, 2024 City Council Regular Meeting - Discussion of Draft FY24/25 Budget (operating funds) Monday, April 1, 2024 City Council Regular Meeting – Discussion of Draft FY24/25 Budget (all funds) Wednesday, April 10, 2024 Final FY24/25 Budget (including narratives) transmitted to City Council Monday, April 15, 2024 Annual Meeting - FY24/25 Budget adopted by City Council
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City of McHenry Organizational Chart
Mayor and City
Council
Office of the City
Administrator
Parks &
Recreation
Parks
Maintenance
Recreation Center
Aquatic
Center
Recreation
Programs
Community
Development
Planning &
Zoning
Commercial
Inspections
Residential
Inspections
Code
Enforcement
Municipal
Center
Maintenance
Economic
Development Finance
Accounts
Payable
Accounts
Receivable
Utility
Billing
Administrative
Adjudication
Public Works
Treatment
Operations
Water
Division
Sewer
Division
Field
Operations
Streets
Division
Utility
Division
Human
Resources Police
Operations
Division
Support Services
Division
NERCOM
Dispatch
Information
Technology
City
Attorney
City
Clerk
Deputy City
Clerk/Executive
Assistant
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Personnel Summary The following table provides a summary overview of the staffing level of the municipality for the previous five (5) fiscal years and identifies the proposed staffing level for FY24/25. Staffing identified in the Recreation Center and Water and Sewer Funds is financed by revenues generated by these funds.
Authorized Personnel
Change
from
Prior FY
FY24/25
Proposed
FY
23/24
FY
22/23
FY
21/22
FY
20/21 FY
19/20 FY
18/19 FY
17/18 General Fund Administration 0.00 5.00 5.00 4.00 4.00 3.00 3.00 3.00 6.00 Community Development 1.00 9.00 8.00 8.00 7.00 7.50 7.50 6.50 7.90 Finance (1.00) 4.00 5.00 5.00 5.00 5.00 5.00 6.00 5.00 Human Resources 0.00 2.00 2.00 2.00 2.00 2.00 2.00 1.00 0.00 Economic Development 0.00 2.00 2.00 2.00 2.00 2.00 2.00 3.00 0.00 Police 0.00 57.00 57.00 54.00 53.75 54.75 54.75 52.75 52.75 NERCOM (Dispatch) 0.00 25.00 25.00 23.00 23.25 23.25 23.25 22.25 22.25 Public Works Administration 0.00 3.00 3.00 3.00 3.00 3.00 3.50 3.50 3.5 Public Works Streets 0.00 13.00 13.00 14.00 14.00 17.00 19.00 19.00 19.00 Parks and Recreation 0.00 3.50 3.50 11.30 10.75 10.75 10.50 9.25 11.00 Parks Maintenance 0.00 8.00 8.00 0.00 0.00 0.00 0.00 0.00 0.00
Total General Fund 0.00 131.50 131.50 126.3
0 124.7
5 128.25 130.50 126.25 127.40
Recreation Center Fund 0.00 1.30 1.30 1.50 2.05 2.05 2.00 2.25 1.00
Information Technology Fund 0.00 3.00 3.00 3.00 2.00 2.00 2.00 2.00 2.00 Water and Sewer Fund Water Division 0.00 4.50 4.50 4.50 5.00 5.50 5.50 5.50 5.50 Wastewater Division 0.00 8.50 8.50 8.50 9.00 8.00 8.00 8.00 9.00 Utility Division 0.00 7.00 7.00 8.00 7.00 8.00 8.00 8.00 8.00
Total Water and Sewer Fund 0.00 20.00 20.00 21.00 21.00 21.50 21.50 21.50 22.50
Total City of McHenry 0.00 155.80 155.80 151.8
0 149.8
0 153.80 156.00 152.00 152.90 Population 27,135 27,135 27,135 26,992 26,992 26,992 26,992 26,992 Employees per 1,000 Population 5.74 5.74 5.59 5.55 5.70 5.78 5.67 5.66
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Fund Structure Overview The accounting system and the budget appropriation process are structured according to the basic guidelines established by the Government Finance Officers Association (GFOA) of the United States and Canada. The format includes the basic funds and fund types which follow.
The City’s governmental funds are as follows:
General Fund (100s) This fund accounts for all transactions of the city that pertain to the general administration of the city and the services traditionally provided to its citizens. This includes Administration, Elected Officials, Community Development, Finance, Human Resources, Economic Development, Police, Dispatch, Public Works Administration, Streets, and Parks and Recreation.
Special Revenue Funds (200s) These funds are utilized to account for revenues derived from specific sources which are usually required by law or regulation to be accounted for as separate funds. For the City of McHenry these funds include the Tourism Fund, Pageant Fund, Band Fund, Civil Defense Fund, Alarm Board Fund, Audit Fund, Annexation Fund, Motor Fuel Tax Fund, Local Motor Fuel Tax Fund, Developer Donation Fund, and Tax Increment Fund.
Debt Service Fund (300) This fund accounts for the accumulation of revenues for and payment of principal and interest on general obligation long term debt.
Capital Funds (400s) These funds are utilized to account for financial resources to be used for the acquisition or construction of capital facilities or other major fixed assets. For the City of McHenry these funds include the Recreation Center Fund, Capital Improvement Fund, Capital Asset Maintenance & Replacement Fund, Capital Equipment Fund, Capital Asset New Project Fund.
The City’s business-type funds include the following:
Enterprise Funds (500s) These funds are utilized to account for operations and activities that are financed and operated in a manner similar to a private business enterprise, and where the cost of providing goods and services to the general public on a continuing basis is expected to be recovered primarily through user charges. The City has also established Enterprise Funds when it was advantageous to segregate revenues earned and expenses incurred for an operation for purposes of capital maintenance, public policy, management control or accountability. Enterprise Funds for the City include the Water and Sewer Fund, Capital Development Fund, Utility Improvements Fund, and Marina Operations Fund.
Internal Service Funds (600s) These funds are established to finance and account for services and/or commodities furnished by one department or agency to other departments or agencies of the city. The Internal Service Funds of the City are the Employee Insurance Fund, Risk Management Fund, and Information Technology Fund.
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The City’s other funds include the following:
Fiduciary Funds (700s) These funds are used to account for resources held for the benefit of parties outside the city. The fiduciary funds of the city are the Employee Flexible Spending Fund, Developmental Escrow Fund, Retained Personnel Fund, Revolving Loan Fund, and the Police Pension Trust Fund.
Accounting for the financial activities of the City and the budget process are also presented
according to classifications required by the State of Illinois. Revenues are credited to
individual fund types while expenditures/expenses are recorded according to functional
areas within specific funds for budgetary control purposes. The following functional areas
are included in the budget:
General Government This function provides for the operation of the government and assures the general administration of the municipality. Activities included in this function also include Municipal Center Building and Grounds Maintenance.
Community Development The overall mission of this function is to protect and promote the health, welfare, safety and quality of life of McHenry Citizens, property owners, visitors and commercial interests through the development and implementation of the City’s adopted ordinances and policies. Planning and development activities are also included within this function.
Finance This function applies modern financial management practices to ensure that the City is able to deliver services effectively and efficiently on a sustained basis. Activities included in this function are reporting financial transactions, billing and collecting money, accounts payable, managing cash and investments, preparing the annual financial report, and developing the budget and financial forecasts.
Human Resources The Department of Human Resources and Director of Human Resources coordinates the employee and risk related functions of the City. This includes compensation, benefits, wellness, staffing, recruitment & selection, internal policies, workers compensation and safety, performance management, labor relations, and employee relations, training, and process improvement.
Economic Development The Economic Development Department is the first point of contact with potential businesses, citizens, and elected officials regarding business inquiries and potential new business opportunities. The department is responsible for effectuating orderly economic growth of the City, attracting, retaining, and serving businesses and residents in the community.
Public Safety This function provides for services to reduce the amount and effects of external harm to individuals and damage to property, and in general to promote an atmosphere of personal security from external events.
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Public Works This function provides for safe and well-maintained infrastructure for the City. Activities included in this function are public works administration, roadway maintenance, snow and ice control, street cleaning, traffic control and engineering.
Parks and Recreation This function promotes the general well-being of the City and encourages the fullest development of cultural and educational potentials of the citizens in the community. This function includes the activities of general parks, parks and maintenance, downtown maintenance and programs.
Debt Service This function provides for the accumulation of resources for and the payment of principal and interest on long-term debt of the City.
Capital Projects This function provides for the acquisition or construction of major capital facilities or equipment for the City.
Business-Type Activities This function includes activities of the City that are financed in whole, or in part, by fees charged to external parties for goods and services. These activities are accounted for as enterprise funds and include the Water and Sewer and Marina Operations Funds.
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Chart of Accounts Overview Funds are comprised of various line item accounts. These are separated as “Revenues” and/or “Expenses” as appropriate and are assigned based on the following specific line item designations:
Revenues
3010 Property Tax Collection – Amount collected in taxes assessed on real estate.
3015 Property Tax Collection – 2020B Pension OB Bond – Amount collected in taxes assessed on real estate for pension obligation bond payments.
3020 Property Tax Collection – Road & Bridge – Amount collected in taxes assessed on real estate by the McHenry and Nunda Township Road Districts and disbursed to the City for roads and bridges within the City.
3030 Property Tax Collection – Police Protection – Amount collected in taxes assessed on real estate that funds a portion of police protection expenses.
3040 Property Tax Collection – Retirement – Amount collected in taxes assessed on real estate that funds a portion of retirement expenses.
3050 Property Tax Collection – Liability Insurance – Amount collected in taxes assessed on real estate that funds a portion of liability insurance expenses.
3051 Property Tax Collection – Police Pension – Amount collected in taxes assessed on real estate that funds the actuarial required contribution to the police pension fund.
3110 Personal Property Replacement Taxes – Revenues collected by the State of Illinois and disbursed to the City to replace money that was lost by local governments when their powers to impose personal property taxes on corporations, partnerships, and other business entities was taken away in 1979. These funds are limited to use for retirement funding.
3120 State Sales Taxes – The state collects a 1% tax on a seller’s receipts from sales of tangible personal property for use or consumption that is distributed based on sales in the City.
3121 Home Rule Sales Taxes – The state collects a 0.5% tax on a seller’s receipts from sales of tangible personal property for use or consumption that is distributed based on sales in the City. This home rule sales tax is not charged on sales of vehicles.
3122 Cannabis Use Taxes – The state collects state revenues from the Cannabis Regulation and Tax Act and 8% of deposits go to local governments, through Local Government Distributive Fund, which are to be used to fund crime prevention programs, training and interdiction efforts.
3125 Telecommunications Taxes – The state collects an 8% tax that is imposed on intrastate and interstate messages and 1% is distributed to the City.
3130 State Income Taxes – Amount collected in taxes imposed on financial income generated by all entities within the State. The State distributes 8% of the net collections of all income tax received
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from individuals, trusts, and estates and 9.14% of the net collections of all income tax received from corporations to local governments based on the population in proportion to the total state population.
3140 Pull Tabs – Amount collected by the State and disbursed to the City for operator licenses and taxes on gross proceeds of pull tabs and jar games.
3141 Inter-Track Wagering – Amount collected for a 1% tax collected on the handle at Trackside McHenry Off Track Betting establishments within the City.
3142 Hotel/Motel Taxes – Amount collected for a 5% tax assessed on the rental or leasing charges for hotel or motel rooms.
3145 Electric Use Tax – Amount collected for a utility tax on the electric consumption per kilowatt-hours used.
3146 Gas Use Tax – Amount collected for a $0.03 utility tax assessed on the per therm natural gas usage.
3150 Motor Fuel Tax Allotment – Taxes collected on gasoline and diesel fuel collected by the State and disbursed to the City based on the population.
3165 Storage Tax - Amount collected on the rental or leasing of any Self-Storage Facility accommodations in the City of McHenry at the rate of 5% of the gross rental or leasing charge.
3180 Grants – Amount collected from an external entity, such as a governmental agency, corporation or private foundation under a grant agreement.
3210 Interest Income – Interest earned on cash temporarily held in checking accounts, certificates of deposits, or other investments.
3310 Liquor Licenses – Amount paid by establishments within the City that hold valid liquor licenses.
3320 City Licenses – Amount collected from businesses within the City for licenses for massage parlors, athletic exhibitions for profit, billiard and pool halls, carnivals, circuses, exhibitions, motion pictures and theatricals, public dance halls, skating rinks, bowling alleys, and mechanical amusement.
3350 Video Gambling Licenses – Amount paid annually by each private business and terminal operator for a video gambling license. Also includes the amount disbursed by the State of Illinois for the City’s portion of the video gaming tax.
3410 Permits – Amount collected to issue a building permit for miscellaneous improvements such as roof repairs, siding repairs, fences, etc.
3420 Plumbing Inspections – Amount collected for the inspection of the connection to a water main through a permit fee.
3430 Zoning & Plat Fees – Amount collected for residents or business owners to have a hearing before the planning & zoning commission for items like conditional use permits, variances, etc.
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3505 Traffic Fines – Amount collected by the McHenry County Circuit Clerk’s office and forwarded to the City for traffic fines that occurred within the City.
3510 Parking Fines – Amount collected in fines for parking violations.
3515 Police – Accident Reports – Amount collected for administrative fees to furnish accident reports.
3520 Police – Field Reports – Amount collected for administrative fees to furnish field reports.
3525 Drug Asset Forfeitures – Amount collected through the sale of assets that were forfeited.
3530 DUI Fines – Amount collected by the McHenry County Circuit Clerk’s office and forwarded to the City for DUI charges.
3532 Overweight Truck Permits – Amount collected for the issuance of overweight truck permits.
3536 Police Bail Bond Processing Fees – Amount collected in fees to process bail paperwork.
3537 Police Impound Fees – Amount collected as an administrative penalty for a motor vehicle that is used in connection with the following driving violations such as driving under the influence, driving while license is suspended or revoked, no valid driver’s license, etc.
3538 Warrant Execution – Amount received from other governmental agencies for the execution of a warrant by the City’s police department.
3539 Electronic Citation – Amount collected by the McHenry County Circuit Clerk and forwarded to the City for electronic citation.
3540 Vehicle License Fines – Amount collected for fines for vehicle stickers that are purchased after the due date of June 30th.
3545 Vehicle Fund Fines – Amount collected by the McHenry County Circuit Clerk and forwarded to the City for vehicle court supervision fines.
3610 Sales – Water/Sewer – Amount collected for water and sewer usage based on meter readings charged at a per 1,000 gallon rate.
3615 Base Charge – Capital – Amount collected through the utility bill for water and sewer base fees that will be retained and used for development and repairs to the utility capital system.
3620 Penalties – Amount collected for utility bills that are paid after the due date.
3630 Hookup/Connection Fees – Amount collected for permit fees that are charged for the connection to the water and sewer system.
3631 Parks & Recreation Programs – Amount collected for programs offered through the parks and recreation department.
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3632 Concessions – Amount collected at concession stands at City parks as well as at the Recreation Center.
3633 Beach Programs – Amount collected for daily admission at the McCullom Lake Beach.
3634 Swimming Pool – Amount collected for admission to the Merkel Aquatic Center.
3635 Park – Amount collected for programs offered through the parks and recreation department.
3636 General Program – Amount collected for programs offered through the parks and recreation department.
3637 Athletic Program – Amount collected for athletic programs offered through the parks and recreation department.
3640 Water Meter Sales – Amount collected for the initial or replacement water meter.
3641 Babysitting – Amount collected for childcare services offered at the Recreation Center.
3642 Room Rentals – Amount collected at the Recreation Center for community room rentals.
3643 Birthday Parties – Amount collected for birthday parties that are held and run by personnel at the Recreation Center.
3644 Sponsorship/Advertisement – Amount collected for sponsors or advertisements at the Recreation Center.
3645 Annual Membership – Amount collected for membership fees for the Recreation Center.
3646 Short-Term Membership – Amount collected for temporary membership fees for the Recreation Center.
3647 Daily Admissions – Amount collected for daily membership fees for the Recreation Center.
3648 Punch Passes – Amount collected for 10 and 20 punch passes that act as daily membership to the Recreation Center as well as attendance at specialty fitness classes held at the center.
3649 Miscellaneous Fees – Amount collected at the Recreation Center for miscellaneous fees such as workout logging devices, and other items sold at the center.
3650 Fitness Classes – Session Based – Amount collected for fitness classes held at the Recreation Center.
3651 Small Group Personal Training – Amount collected for Recreation Center members that sign up for a small group personal training session.
3652 Personal Training – Amount collected for Recreation Center members that sign up for personal training services.
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3653 Elective Participant Premium – Amount collected for City provided health insurance for retired employees or former employees on COBRA.
3660 Debt Service Fees – Amount collected from sewer users to retire debt issued by the City.
3665 Debt Service Fees – IEPA Loan – Amount collected from sewer users to retire an Illinois Environmental Protection Agency loan used to consolidate the Central and South Wastewater Treatment Plants.
3682 Mowing/Weeds – Amount collected for the cutting or removal of weeds and plant growth in excess of 8 inches which is paid for by the owner of the property.
3683 Alarm Board – Fines collected on false alarms after having six free alarms.
3684 Boat Launch – Fees collected for the use of the boat launch at Miller Riverfront Park.
3711 Meeting Fees – Planning & Zoning - Reimbursements by developers and zoning petitioners for the Planning & Zoning Commission hearing attendance collected in the Retained Personnel Fund.
3715 Annexation Income – Amount collected as determined by the annexation agreement.
3720 Operating Fees – Amount collected through permit fees on behalf of the school districts, fire district and library district from the developer to pay its fair share of public improvements that may be required because of the new development. These fees are paid out to the districts monthly.
3730 Engineering Fees – Reimbursements by developers for expenses paid for contracted engineering advice and service in the Retained Personnel Fund.
3735 Legal Fees – Reimbursements by developers for expenses paid for legal fees in the Retained Personnel Fund.
3740 Fees – Developers – Miscellaneous – Reimbursements by developers for miscellaneous expenses such as recording fees in the Retained Personnel Fund.
3745 Gravel Mining/Annexation Agreement – Amount received per the annexation agreement for the gravel pit within the City.
3750 Refunds – Developers – Amount paid by developers for a retained personnel deposit that is over and above the expenses and will be refunded to the developer.
3760 Received from Developers – Amount collected from developers as contributions to public improvements such as signs, traffic signals, intersection improvements, etc.
3775 Developer Donations – Schools – Amount collected through permit fees on behalf of the school districts from the developer to pay its fair share of public improvements that may be required because of the new development. These fees are paid out to the school districts annually.
3780 Developer Donations – Parks – Amount collected through permit fees for parks from the developer to pay its fair share of public improvements that may be required because of the new development.
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3785 Developer Donations – Library – Amount collected through permit fees on behalf of the library district from the developer to pay its fair share of public improvements that may be required because of the new development. These fees are paid out to the library district annually.
3790 Developer Donations – Fire – Amount collected through permit fees on behalf of the fire district from the developer to pay its fair share of public improvements that may be required because of the new development. These fees are paid out to the fire district annually.
3815 Donations – Amount donated to the City for various reasons.
3830 Employer Contributions – Actuarial contrived amount that the City contributes to the Police Pension Fund.
3831 Employee Contributions – Amount collected from employees for benefits provided by the City.
3832 Cable Franchise Fees – Amount charged to a cable television company for the use of public rights-of-way.
3835 Garbage Bags – Amount collected for the sale of garbage stickers to residents.
3836 Gain/Loss on Sale – Amount received on the sale of an asset is greater than the asset’s book value a gain is recorded, amount received on the sale of an asset is less than the asset’s book value a loss is recorded.
3836 Unrealized Gain/Loss – Unrealized gain is a “paper” gain that results from holding an asset that has increased in price but has not been realized since it is still held. Unrealized loss is a “paper” loss that results from holding an asset that has decreased in price but has not been realized since it is still held.
3845 Rental Income – Rent charged for the use of municipal properties including Main Street Station, Hickory Creek Farm, farmlands, water towers, the marina, etc.
3881 Reimbursement – Communication Desk – Amount charged to agencies that the City provides dispatching services for.
3882 Reimbursement – Miscellaneous – Reimbursement for expenses for city services provided such as school resource officers, traffic control, snowplowing, etc.
3885 Reimbursements – Property Insurance – Insurance payments for property damage within the City.
3886 Reimbursement – State – Reimbursement for expenses from the state through an agreement for various projects.
3890 Miscellaneous Income – Revenue that does not fit into other categories such as handicap placards, lien fees, collection fees, adjudication court fees, etc.
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3895 Alarm Board – Revenue for fire alarm monitoring for businesses via direct connection to NERCOM dispatch center.
3915 Bond Interest Rebate – Interest rebate issued to the City from the Department of the Treasury Internal Revenue Service for Recovery Zone Economic Development Bonds and Build America Bonds.
3920 Sale of Fixed Assets – Proceeds from the sale of municipal owned fixed assets.
3969 Transfer – TIF – Internal Fund Transfer from the TIF Fund to cover debt service fees.
3970 Charges for Services – Internal Fund Transfer from the Water/Sewer Fund to cover administrative costs for the issuance of utility bills.
3971 Transfers – Annexation Fund – Internal Fund Transfer from the Annexation Fund to cover debt service fees.
3972 Transfers – Recreation Center Fund – Internal Fund Transfer from the Recreation Center Fund to cover debt service fees.
3975 Transfers – General Fund – Internal Fund Transfer from the General Fund to cover debt service fees, capital expenses, insurance expenses, and information technology expenses.
3978 Transfers – Water/Sewer Fund – Internal Fund Transfer from the Water/Sewer Fund to cover debt service fees, utility division expenses, insurance expenses, and information technology expenses.
3986 Transfers – Motor Fuel Tax Fund – Internal Fund Transfer from the Motor Fuel Tax Fund to cover debt service fees.
3994 Transfers – SSA #4 – Internal Fund Transfer from the SSA #4 Fund to cover expenses for the Lakewood Road Utility.
3999 Transfers – Other Funds – Internal Fund Transfer from miscellaneous special revenue funds and internal service funds to cover items such as fireworks, risk management, etc.
Expenses
4010 Salaries – Regular – Salary expense for employees who work 40 hours or full time.
4020 Salaries – Sworn – Salary expense for sworn police department employees who work 40 hours or full time.
4030 Salaries – Regular Part-time – Salary expense for employees who work less than 40 hours, but are employed throughout the calendar year.
4050 Salaries – Regular Overtime – Salary expense paid to non-exempt non-sworn employees at one and one-half times or two times the employee’s regular hourly rate for all hours worked in excess of forty hours per week.
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4055 Salaries – Regular Sworn Overtime - Salary expense paid to non-exempt sworn employees at one and one-half times the employee’s regular hourly rate for all hours worked in excess of forty hours per week.
4060 Salaries - Snow Removal Overtime - Salary expense paid to non-exempt non-sworn employees at one and one-half times or two times the employee’s regular hourly rate for all hours worked in excess of forty hours per week for snowplowing.
4080 Salaries – Career Ladder – Salary expense paid to sworn police department employees for on-call and investigator stipend pay.
4100 Salaries – Seasonal/Part-time – Salary expense for employees who work less than 40 hours per week and can be seasonal help.
4220 Salaries – Boards & Commissions – Salary expense for the Mayor, Council members, the City Clerk and the Planning and Zoning Commissioners.
4310 Health Insurance – Expenses for employee group medical insurance premiums.
4320 Dental Insurance – Expenses for employee group dental insurance premiums.
4330 Life Insurance – Expenses for employee group life insurance premiums for city provided coverage at $30,000.
4340 Vision Insurance – Expenses for employee group vision insurance premiums.
4410 Contribution - FICA – The employer contribution of Social Security and Medicare, which is currently at 7.65% of eligible wages.
4420 Contribution IMRF – The employer contribution of IMRF for all employees covered under the IMRF program.
4430 Contribution Police Pension – The amount provided through property tax collection for the Police Pension Fund. This amount is determined by an actuarial study conducted on an annual basis.
4510 Uniform Allowance – Expenses for uniforms and personal protective equipment provided for those public service employees required to wear uniforms while performing their jobs.
4910 Retirement Benefits – Retirement benefits paid to police pension beneficiaries who apply for a regular pension.
4920 Disability Benefits – Retirement benefits paid to police pension beneficiaries who have been found to have a duty disability. This type of pensions must be approved by the Police Pension board.
4930 Survivor Benefits – Retirement benefits paid to the surviving spouse of a police pension beneficiary.
4940 Non-Duty Disability Benefits - Retirement benefits paid to police pension beneficiaries who have been found to have a non-duty disability. This type of pensions must be approved by the Police Pension board.
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4990 Contribution Refund – Refund of police pension contributions made by a sworn employee that is no longer employed with the City. The employee must request a refund from the pension fund.
5110 Contractual Services – Expenses that are based on a contract or are paid on a monthly basis such as mowing, PACE fees, copier lease payments, bank service charges, miscellaneous building charges, etc.
5200 Contract Custodial – Expenses for monthly janitorial serves at the Recreation Center.
5215 Retention/Promotion – Expenses for promotional materials for the Recreation Center.
5220 Engineering Fees – Expenses paid for contracted engineering advice and service in the Retained Personnel Fund, which are reimbursed by the developers.
5230 Legal Services – Expenses for contracted legal advice and services.
5245 Health HRA Reimbursement – Employee health insurance reimbursement expenses paid by the city that covers expenses above the in-house set deductible up to the insurance carrier’s deductible.
5310 Postage & Meter – Expenses for postal related services such as stamps, bulk mailings, overnight deliveries, UPS, etc.
5320 Telephone – Expenses for telephone lines, alarm circuits, and cellular phone services.
5321 Cable/TV – Expenses for monthly cable television service at the Recreation Center.
5330 Printing & Publishing – Expenses for advertisements such as employee recruitment ads, bid notices, legal notices, and other required notices. Expenses also for the city newsletter and printing of vehicle sticker notices and utility bills.
5370 Repair & Maintenance – Expenses for routine maintenance on municipal vehicles.
5375 Repair & Maintenance – Equipment – Expenses for routines maintenance on municipal equipment.
5380 Repair & Maintenance – Utility System – Expenses for routine maintenance on municipal utility systems.
5410 Dues – Expenses for membership dues for various professional organizations.
5420 Travel Expenses – Expenses paid for travel related costs such as mileage, tolls, per diem, lodging for conferences and training for employees on municipal business.
5430 Training – Expenses including registration fees, tuition, etc. for attendance at professional conferences and meetings for professional development.
5440 Tuition Reimbursement – Expenses for tuition that covers successful completion of course work with proof of a passing grade or certification.
46
5450 Publications – Expenses for books, magazines, periodicals, pamphlets, maps, subscriptions, training materials, etc. used for professional development.
5510 Utilities – Monthly expenses for utilities used by municipal buildings including electric and natural gas.
5520 Street Lighting – Monthly expenses for electric usage for streetlights throughout the city.
5580 Disposal – Expenses for sludge removal at the wastewater plant.
5600 Credit Card/Bank Fees – Expenses for monthly credit card and banking fees charged to the Recreation Center.
5950 MCMRMA Fees – Expenses for McHenry County Municipal Risk Management Agency annual fees for insurance that covers unemployment, workers compensation, car insurance, liability, fire, theft, property damage, etc.
5960 Insurance Premiums – Miscellaneous – Expenses for notary bonds and public official bonds.
5980 Property Damage – Expenses to repair municipal property damage that will be covered with insurance.
6110 Materials & Supplies – Expenses for operating materials & supplies such as custodial cleaning supplies, garbage stickers, miscellaneous building supplies, police training supplies, ammunition, badges, etc.
6111 Supplies – Custodial – Expenses for contracted custodial services at the Recreation Center.
6120 Supplies – Childcare – Expenses for small toys, books, and art supplies for the childcare room at the Recreation Center.
6130 Supplies – Safety – Expenses for first aid and other miscellaneous safety items for the Recreation Center.
6141 Office Furniture/Equipment – Expenses for desks, chairs, and other small equipment at the Recreation Center.
6142 Fitness Equipment – Expenses for fitness balls, bands, mats, cardio equipment, etc. at the Recreation Center.
6210 Bulk Office Supplies – Expenses for pens, pencils, paper, staples, binders, folders, calendars, ink, etc.
6250 Gasoline & Oil – Expenses for gasoline and oil used for municipal vehicles.
6270 Small Equipment & Tools – Expenses for equipment and tools used to maintain municipal equipment and personnel such as body armor, evidence equipment, weed trimmers, shop tools, etc.
47
6290 Safety & Personal Protection Equipment – Expenses for personal protective equipment provided to employees such as goggles, boots, chest waders, etc.
6310 Police – Canine Unit – Expenses for training, food, veterinarian bills, etc. for the sworn canine officer.
6340 Police – Forfeiture Expenses – Expenses that are paid for using police forfeiture funds that must be tracked separately.
6920 Special Events – Expenses for community festivals and events such as the fireworks, community pool party, daddy/daughter date night, etc.
6940 Administrative Expenses – Expenses for notary fees, secretary of state fees for vehicles, county recording fees, holiday lighting, real estate taxes, etc.
6945 Development Expense – Sales tax incentive payments based on the terms of the development agreement.
6950 Forestry – Expenses for the tree program including trees, watering, chainsaws for trimming, tree removal, etc.
6960 Miscellaneous Expenses – Expenses for miscellaneous items not previously covered such as insurance processing fees.
6961 Miscellaneous Refunds – Expenses for refunds of retained personnel deposits that are not used for development expenses.
6965 Reimbursements – Flexible Spending – Expenses paid to employees from their flexible spending accounts for qualified medical expenses.
6970 Distributions – Schools – Permit fees that are collected on behalf of the school districts from the developer to pay its fair share of public improvements that may be required because of the new development. These fees are paid out to the school districts annually.
6980 Distributions – Library - Permit fees that are collected on behalf of the library district from the developer to pay its fair share of public improvements that may be required because of the new development. These fees are paid out to the library district annually.
6990 Distributions – Fire - Permit fees that are collected on behalf of the fire district from the developer to pay its fair share of public improvements that may be required because of the new development. These fees are paid out to the fire district annually.
7091 Debt Service – Accrued Interest – Amount of interest owed on a loan/bond that has accumulated but not yet paid.
7100 Bond Principal – Amount paid for principal payment on bonds.
7110 Capital Lease Principal Payments – Amount paid for principal payments on capital leases. Capital leases are used when the item is going to be purchased when the term of the lease is over.
48
7200 Bond Interest – Amount paid for interest payments on bonds, which are charges paid on the principal based on an agreed upon rate.
7300 Fees – Paying Agent – Amount paid to an escrow agent for various filings for the issued bonds.
7400 Bond Issuance Costs – Amount paid to issue a bond.
7450 Bond Discount – Amount by which the market price of a bond is lower than its principal amount due at maturity.
7600 Loan Interest – Amount paid for interest payment on loans.
7610 Loan Principal – Amount paid for principal payment on loans.
8100 Land Acquisition – Amount used for the purchase of land.
8200 Buildings – Amounts paid for the acquisition and improvements to municipal buildings.
8300 Equipment – Amount paid for the acquisition of equipment costing $5,000 or more such as machines, shop equipment, playground equipment, mowers, etc.
8400 Vehicles – Amount paid for the acquisition of vehicles and the necessary equipment to use the vehicle.
8500 Utility System – Amount paid for the acquisition and improvements to the water and sewer utility systems.
8600 Streets – Amount paid for improvements to municipal streets.
8800 Park Improvements – Amount paid for improvements to municipal parks.
8900 Public Improvements – Amount paid for the acquisition and improvements to other miscellaneous municipal capital items.
9100 Amortization – Bond Discount – Annual amount to gradually reduce the discount on bonds payable over the life of the bonds until the bonds’ carrying value equals the face value at maturity.
9510 Depreciation – Amount charged as an expense for an expired portion of a fixed asset.
9605 OPEB – Actuarial determined amount for Other Post-Employment Benefits, adjusted annually.
9605 OPEB Contributions – Actuarial determined amount for Other Post-Employment Benefits, adjusted annually.
9901 Transfer – General Fund – Internal Fund Transfers from the Tourism Fund to cover miscellaneous special events with hotel/motel taxes.
9904 Transfer – Debt Service Fund – Internal Fund Transfers from various City funds to cover annual bond interest and principal costs for City projects.
49
9920 Purchase Service – Risk Management – Internal Fund Transfers from General Fund Departments as well as Water/Sewer Fund Departments and Information Technology Fund to cover the insurance premiums for McHenry County Municipal Risk Management Agency. These premiums cover unemployment, workers compensation, car insurance, liability, fire, theft, property damage, etc.
9921 Purchase Service – Billing General Fund – Internal Fund Transfers to the General Fund for the water and sewer portion of costs that are paid for by the finance department for billing administrative duties and water/sewer bill mailings.
9922 Purchase Service – Information Technology – Internal Fund Transfer to cover information technology expenses for all departments within the city. These expenses include salaries and benefits for Information Technology employees as well as computers, supplies, and software used in all City departments.
9923 Purchase Service – Audit Fund – Internal Fund Transfer to cover the external auditing annual fees for all funds within the City.
9930 Transfer – Water/Sewer Fund – Internal Fund Transfer to the Water and Sewer Divisions to cover Utility Division expenses.
9936 Transfer – Utility Improvement Fund – Internal Fund Transfer from the Water and Sewer Divisions to cover Capital expenses for the Utility System.
9942 Transfer – Capital Improvements Fund – Internal Fund Transfer from the General Fund Departments to cover capital charges for items that are over $10,000 and have a useful life of over 5 years.
9944 Transfer – Band Fund – Internal Fund Transfer from the General Fund to cover the music in the park weekly event. This covers the expenses for the municipal band as well as community bands that perform.
9945 Transfer – Civil Defense Fund – Internal Fund Transfer from the General Fund for expenses to train personnel and maintain the early warning system equipment to protect and defend the City from natural disasters or man-made environmental disasters through early warning and public notification systems.
9946 Transfer – Capital Equipment Fund - Internal Fund Transfer from the General Fund Departments to cover capital vehicle and equipment charges for items that are over $10,000 and have a useful life of over 5 years.
50
Fiscal Year 2024/2025 Annual Budget
Summary of Revenues &
Expenditures – All Funds
51
Summary of Proposed Revenues - All Funds
1
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
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
A B C D E F
Revenue Budget 2024/25 All Funds
Total Net
Revenue Transfers Revenue
General Fund $31,174,529 $630,289 $30,544,240
Special Revenue Funds
Band Fund 12,000 12,000 0
Civil Defense Fund 6,000 6,000 0
Alarm Board Fund 231,000 0 231,000
Audit Fund 53,876 27,450 26,426
Annexation Fund 128,000 0 128,000
Motor Fuel Tax Fund 1,300,686 0 1,300,686
Local Motor Fuel Tax Fund 370,000 0 370,000
Developer Donations 180,000 0 180,000
Developer Donations (Parks)859,517 0 859,517
TIF Fund 898,000 0 898,000
Pageant Fund 4,000 0 4,000
Tourism Fund 275,000 0 275,000
Total Special Revenue Funds 4,318,079 45,450 4,272,629
Capital Project Funds
Recreation Center Construction Fund 854,500 270,000 584,500
Special Service Area #1A 0 0 0
Special Service Area #4 15,580 0 15,580
Capital Improvements Fund 27,000 0 27,000
Capital Maintenance & Replacement Fund 1,091,000 0 1,091,000
Capital Equipment Fund 5,400 5,000 400
Capital Asset New Projects Fund 285,200 0 285,200
Total Capital Project Funds 2,278,680 275,000 2,003,680
Debt Service Funds
Debt Service Fund 2,356,047 2,356,047 0
Total Debt Service Funds 2,356,047 2,356,047 0
Proprietary Funds
Public Works - Water 3,217,597 0 3,217,597
Public Works - Wastewater 6,146,320 0 6,146,320
Public Works - Utility 1,029,088 1,029,088 0
Capital Development Fund 345,000 0 345,000
Marina Operations Fund 41,000 0 41,000
Utility Improvements Fund 20,000 0 20,000
Total Proprietary Funds 10,799,005 1,029,088 9,769,917
Internal Service Funds
Risk Management Fund 1,154,320 1,129,320 25,000
Information Technology Fund 1,531,728 1,529,728 2,000
Health Insurance Fund 4,098,809 3,593,651 505,158
Total Internal Service Funds 6,784,857 6,252,699 532,158
Fiduciary Funds
Medical Flexible Spending Fund 45,000 0 45,000
Revolving Loan Fund 1,000 0 1,000
Police Pension Fund 1,628,262 703,262 925,000
Development Escrow Fund 0 0 0
Retained Personnel Fund 75,000 0 75,000
Total Fiduciary Funds 1,749,262 703,262 1,046,000
Total All Funds $59,460,459 $11,291,835 $48,168,624
52
Comparison of Budget vs. Proposed Revenues - All Funds
1
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
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
A B C D E
Revenue Budget All Funds
Pecent
2023/24 2024/25 Difference Change
General Fund $29,775,254 $31,174,529 $1,399,275 4.7%
Special Revenue Funds
Band Fund 12,000 12,000 0 0.0%
Civil Defense Fund 4,000 6,000 2,000 50.0%
Alarm Board Fund 230,000 231,000 1,000 0.4%
Audit Fund 48,550 53,876 5,326 11.0%
Annexation Fund 227,500 128,000 (99,500)-43.7%
Motor Fuel Tax Fund 1,283,672 1,300,686 17,014 1.3%
Local Motor Fuel Tax Fund 360,000 370,000 10,000 0.0%
Developer Donations 120,000 180,000 60,000 50.0%
Developer Donations (Parks)243,000 859,517 616,517 253.7%
TIF Fund 1,513,000 898,000 (615,000)-40.6%
Pageant Fund 4,000 4,000 0 0.0%
Tourism Fund 268,000 275,000 7,000 2.6%
Total Special Revenue Funds 4,313,722 4,318,079 4,357 0.1%
Capital Project Funds
Recreation Center Construction Fund 783,156 854,500 71,344 9.1%
Special Service Area #1A 0 0 0 0.0%
Special Service Area #4 15,580 15,580 0 0.0%
Capital Improvements Fund 1,950 27,000 25,050 1284.6%
Capital Maintenance & Replacement Fund 1,126,000 1,091,000 (35,000)-3.1%
Capital Equipment Fund 400 5,400 5,000 1250.0%
Capital Asset New Projects Fund 0 285,200 285,200 0.0%
Total Capital Project Funds 1,927,086 2,278,680 351,594 18.2%
Debt Service Funds
Debt Service Fund 2,349,940 2,356,047 6,107 0.3%
Total Debt Service Funds 2,349,940 2,356,047 6,107 0.3%
Proprietary Funds
Public Works - Water 3,197,500 3,217,597 20,097 0.6%
Public Works - Wastewater 5,966,836 6,146,320 179,484 3.0%
Public Works - Uility 1,057,870 1,029,088 (28,782)-2.7%
Capital Development Fund 221,000 345,000 124,000 56.1%
Marina Operations Fund 45,500 41,000 (4,500)-9.9%
Utility Improvements Fund 271,580 20,000 (251,580)-92.6%
Total Proprietary Funds 10,760,286 10,799,005 38,719 0.4%
Internal Service Funds
Risk Management Fund 1,149,503 1,154,320 4,817 0.4%
Information Technology Fund 1,293,988 1,531,728 237,740 18.4%
Health Insurance Fund 4,125,008 4,098,809 (26,199)-0.6%
Total Internal Service Funds 6,568,499 6,784,857 216,358 3.3%
Fiduciary Funds
Employee Flexible Spending Fund 45,000 45,000 0 0.0%
Revolving Loan Fund 1,230 1,000 (230)-18.7%
Police Pension Fund 2,861,455 1,628,262 (1,233,193)-43.1%
Development Escrow Fund 0 0 0 0.0%
Retained Personnel Fund 75,000 75,000 0 0.0%
Total Fiduciary Funds 2,982,685 1,749,262 (1,233,423)-41.4%
Total All Funds $58,677,472 $59,460,459 $782,987 1.3%
53
Summary of Revenues and Other Financing Sources - All Funds
Source 2023/24 2024/25 Dollar Change
%
Change
Property Taxes 5,874,947 5,869,568 (5,379) -0.09%
Sales Taxes 13,327,374 13,231,022 (96,352) -0.72%
Intergovernmental Revenue 6,991,451 7,614,271 622,820 8.91%
Licenses & Fines 2,068,000 2,152,000 84,000 4.06%
Services Charges 11,871,532 12,498,575 627,043 5.28%
Interest Income 2,353,580 1,265,600 (1,087,980) -46.23%
Bond Proceeds - - - 0.00%
Transfers 11,249,017 11,291,835 42,818 0.38%
Other Financing Sources 4,941,571 5,537,588 596,017 12.06%
Total 58,677,472 59,460,459 782,987 1.33%
Property Taxes
10%Sales Taxes
22%
Intergovernmental
Revenue
13%Licenses & Fines
4%
Services
Charges
21%
Interest Income
2%
Bond Proceeds
0%
Transfers
19%
Other Financing
Sources
9%
2024/25 Budget Revenues by Source
54
Summary of Proposed Expenditures - All Funds
1
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
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
A B C D E F G
Expense Budget 2024/25 All Funds
Total Net
Budget Transfers Budget
General Fund
Administration $2,103,316 $148,719 $1,954,597
Elected Offices 65,911 8,534 57,377
Community Development 1,628,042 124,856 1,503,186
Finance Department 2,265,361 404,788 1,860,573
Human Resources 375,307 26,052 349,255
Economic Development 519,784 12,577 507,207
Police Commission 8,328 0 8,328
Police Department 12,870,236 2,790,580 10,079,656
Dispatch Department 3,164,925 141,322 3,023,603
Public Works - Administration 518,774 65,734 453,040
Public Works - Streets 4,264,942 168,608 4,096,334
Parks and Recreation 1,852,730 511,004 1,341,726
Parks Maintenance 1,585,726 0 1,585,726
Total General Fund 31,223,382 4,402,774 26,820,608
Special Revenue Funds
Band Fund 15,000 0 15,000
Civil Defense Fund 6,000 0 6,000
Alarm Board Fund 125,000 0 125,000
Audit Fund 53,500 0 53,500
Annexation Fund 35,000 35,000 0
Motor Fuel Tax Fund 1,788,500 0 1,788,500
Local Motor Fuel Tax Fund 380,000 0 380,000
Developer Donations 180,000 0 180,000
Developer Donations (Parks)963,017 0 963,017
TIF Fund 1,792,816 227,230 1,565,586
Pageant Fund 4,000 0 4,000
Tourism Fund 211,500 111,500 100,000
Total Special Revenue Funds 5,554,333 373,730 5,180,603
Capital Project Funds
Recreation Center Construction Fund 849,826 223,463 626,363
Special Service Area #1A 0 0 0
Special Service Area #4 15,580 15,580 0
Capital Improvements Fund 53,000 5,000 48,000
Capital Maintenance & Replacement 1,507,915 0 1,507,915
Capital Equipment 35,000 0 35,000
Capital Asset New Projects Fund 0 0 0
Total Capital Project Funds 2,461,321 244,043 2,217,278
Debt Service Funds
Debt Service Fund 2,356,049 0 2,356,049
Total Debt Service Funds 2,356,049 0 2,356,049
Proprietary Funds
Public Works - Water 3,223,791 1,225,906 1,997,885
Public Works - Wastewater 7,913,297 743,604 7,169,693
Public Works - Utility 1,029,088 0 1,029,088
Capital Development Fund 0 0 0
Marina Operations Fund 44,000 0 44,000
Utility Improvements Fund 0 0 0
Total Proprietary Funds 12,210,176 1,969,510 10,240,666
Internal Service Funds
Risk Management Fund 1,149,503 22,503 1,127,000
Information Technology Fund 1,584,729 10,683 1,574,046
Health Insurance Fund 4,087,010 0 4,087,010
Total Internal Service Funds 6,821,242 33,186 6,788,056
Fiduciary Funds
Employee Flexible Spending Fund 45,000 0 45,000
Revolving Loan Fund 0 0 0
Police Pension Fund 2,603,039 4,450 2,598,589
Development Escrow Fund 0 0 0
Retained Personnel Fund 75,000 0 75,000
Fiduciary Funds 2,723,039 4,450 2,718,589
Total All Funds $63,349,542 $7,027,693 $56,321,849
55
Comparison of Budget vs. Proposed Expenditures - All Funds
1
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
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
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60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
A B C D E F G H I
Expense Budget 2024/25
Total Total
Budgeted Budgeted
Expenditures Expenditures Percentage
2023/24 2024/25 Difference Change
General Fund
Administration $3,974,946 $2,103,316 ($1,871,630)-47.09%
Elected Offices 64,550 65,911 1,361 2.11%
Community Development 1,493,227 1,628,042 134,815 9.03%
Finance Department 2,291,091 2,265,361 (25,730)-1.12%
Human Resources Department 363,082 375,307 12,225 0.00%
Economic Development Department 504,062 519,784 15,722 0.00%
Police Commission 8,328 8,328 0 0.00%
Police Department 12,249,814 12,870,236 620,422 5.06%
Dispatch Department 3,156,939 3,164,925 7,986 0.25%
Public Works - Administration 538,614 518,774 (19,840)-3.68%
Public Works - Streets 4,139,726 4,264,942 125,216 3.02%
Parks and Recreation 1,597,919 1,852,730 254,811 15.95%
Parks Maintenance 1,499,041 1,585,726 86,685 5.78%
Total General Fund 31,881,339 31,223,382 (657,957)-2.06%
Special Revenue Funds
Band Fund 14,500 15,000 500 3.45%
Civil Defense Fund 5,300 6,000 700 13.21%
Alarm Board Fund 145,000 125,000 (20,000)-13.79%
Audit Fund 50,200 53,500 3,300 6.57%
Annexation Fund 85,000 35,000 (50,000)-58.82%
Motor Fuel Tax Fund 2,936,206 1,788,500 (1,147,706)-39.09%
Local Motor Fuel Tax Fund 300,000 380,000 80,000 26.67%
Developer Donations 120,000 180,000 60,000 50.00%
Developer Donations (Parks)600,959 963,017 362,058 60.25%
TIF Fund 1,421,535 1,792,816 371,281 26.12%
Pageant Fund 3,900 4,000 100 2.56%
Tourism Fund 261,250 211,500 (49,750)-19.04%
Total Special Revenue Funds 5,943,850 5,554,333 (389,517)-6.55%
Capital Project Funds
Recreation Center Construction Fund 789,256 849,826 60,570 7.67%
Special Service Area #1A 0 0 0 0.00%
Special Service Area #4A 15,580 15,580 0 0.00%
Capital Improvements Fund 48,500 53,000 4,500 9.28%
Capital Maintenance & Replacement Fund 1,974,000 1,507,915 (466,085)-23.61%
Capital Equipment Fund 30,000 35,000 5,000 0.00%
Total Capital Project Funds 2,857,336 2,461,321 (396,015)-13.86%
Debt Service Funds
Debt Service Fund 2,349,942 2,356,049 6,107 0.26%
Total Debt Service Funds 2,349,942 2,356,049 6,107 0.26%
Proprietary Funds
Public Works - Water 3,135,868 3,223,791 87,923 2.80%
Public Works - Wastewater 7,695,137 7,913,297 218,160 2.84%
Public Works - Utility 1,057,870 1,029,088 (28,782)-2.72%
Capital Development Fund 250,000 0 (250,000)0.00%
Marina Operations Fund 44,000 44,000 0 0.00%
Utility Improvements Fund 350,000 0 (350,000)0.00%
Total Proprietary Funds 12,532,875 12,210,176 (322,699)-2.57%
Internal Service Funds
Risk Management Fund 1,149,503 1,149,503 0 0.00%
Information Technology Fund 1,370,152 1,584,729 214,577 15.66%
Health Insurance Fund 4,090,594 4,087,010 (3,584)-0.09%
Total Internal Service Funds 6,610,249 6,821,242 210,993 3.19%
Fiduciary Funds
Employee Medical Flexible Spending Fund 45,000 45,000 0 0.00%
Revolving Loan Fund 0 0 0 0.00%
Police Pension Fund 2,450,444 2,603,039 152,595 6.23%
Development Escrow Fund 0 0 0 0.00%
Retained Personnel Fund 75,000 75,000 0 0.00%
Total Fiduciary Funds 2,570,444 2,723,039 152,595 5.94%
Total All Funds $64,746,035 $63,349,542 ($1,396,493)-2.16%
All Funds
56
Expenditures by Function - All Funds
Function 2022/23 2023/24 2024/25
Dollar
Change
Percent
Change
General Government 4,217,487 4,770,833 4,818,278 47,445 0.99%
Public Safety 13,762,331 15,166,473 15,759,076 592,603 3.91%
Public Works 13,454,337 14,405,749 14,790,540 384,791 2.67%
Culture and Recreation 3,200,107 3,388,614 3,645,315 256,701 7.58%
Capital Projects 9,970,814 10,253,565 7,408,188 (2,845,377) -27.75%
Comm. & Econ. Dev.1,919,907 2,140,613 2,285,393 144,780 6.76%
Debt Service 2,351,471 2,349,942 2,356,049 6,107 0.26%
Other 4,782,309 5,262,594 5,259,010 (3,584) -0.07%
Total 53,658,763 57,738,383 56,321,849 (1,416,534) -2.45%
General
Government
9%
Public Safety
28%
Public Works
26%
Culture and
Recreation
7%
Capital Projects
13%
Comm. & Econ.
Dev.
4%
Debt Service
4%
Other
9%2024/25 Budget
Expenditures by Function*
57
Fiscal Year 2024/2025 Annual Budget
General Fund Revenues,
Expenditures & Fund
Balance Summary
58
General Fund Revenues, Expenditures & Fund Balance Summary
General Fund Overview The General Fund represents the core revenue and expense fund for municipal functions. General Fund Revenues are comprised of Intergovernmental sources such as Property Tax, State Sales Tax, Local Sales Tax, State Income Tax, State Replacement Tax, State Pull Tabs, Inter Track Wagering, State Communications Tax, and State Grants; Local Sources such as Franchise Fees, Licenses and Permits, Fines and Forfeitures, Charges for Services, and Interest Income; and Miscellaneous sources such as Donations and Reimbursements for Services. General Fund Expenses include personnel, contractual, supplies and other operating expenses related to the following operating budgets - Administration (100.01), Elected Officials (100.02), Community Development (100.03), Finance (100.04), Human Resources (100.05), Economic Development (100.06), Police Commission (100.21), Police (100.22), Police Dispatch (100.23), Public Works-Administration (100.30), Public Works-Streets (100.33), and Parks and Recreation (100.41).
Please reference the spreadsheet found at the end of this section titled “General Fund – Revenues,
Expenditures and Fund Balance Summary” for the following discussion.
General Fund Revenue, Expenditure and Fund Balance Summary In summary, FY24/25 proposed General Fund Revenues and Expenditures reflect total revenues of $31,174,529 (an increase of $1,399,275 or 4.7% from the FY23/24 Budget amount – Row 27, Column W), and total operating expenditures of $30,331,312 (an increase of $1,038,373 or 3.54%, less capital, from the FY23/24 Budget amount – Row 38, Column W). This reflects a net difference (revenues over expenditures) of $843,217.
Importantly, this means that the proposed General Fund Operating Budget, as
presented, is BALANCED. While COVID-19 has made many revenues volatile over the last few years, the City has been fortunate to see recovery in many revenue sources. While specifics will be detailed in the discussion that follows, the primary reasons for increases in revenues relate to projections for State Income Taxes (an increase of $423,306 or 10.04% - Row 12, Column W), Intertrack Wagering Taxes (an increase of $13,000 or 52% - Row 17, Column W), Video Gaming Revenue (an increase of $25,000 or 2.78% - Row 18, Column W), Charges for Services (an increase of $171,000 or 14.09% - Row 22, Column W), Reimbursements (an increase of $643,744 or 20.91% - Row 23, Column W), and Interest Income (an increase of $250,000 or 71.43% - Row 24, Column W). These increases are partially offset by decreases to Property Taxes (a decrease of $40,379 or 0.8% - Row 9, Column W), State Sales Taxes (a decrease of $104,490 or 1.10% - Row 10, Column W), and Franchise Fees (a decrease of $40,000 or 10.53% - Row 19, Column W). Regarding General Fund Expenditures, Personnel costs are proposed to increase by $324,310, or 1.72% (Row 30, Column W) due to Union Contract increases, CPI-U increases for non-bargaining unit employees, the addition of a part-time FOIA Officer in the police department and higher insurance costs. It should be noted that a portion of the Police Dispatch Center costs and the School Resource Officers that are in the middle and high
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schools are offset by General Fund Revenue increases in the form of reimbursements (reflected in Row 23, Column W) from dispatch partner agencies, customers, and the school districts. Most notably, FY24/25 General Fund Expenditures, as proposed, reflect increased Contractual costs of $443,252 or 11.66% (Row 31, Column W), and Transfers reflect an increase of $248,212 or 5.97% (Row 35, Column W). Reasons for these increases are discussed in detail later in this memorandum. Finally, the FY24/25 General Fund Expenditures, as identified in this attachment, do not include any transfers for Capital Improvement or Capital Equipment at this time. As discussed in detail on pages 12 and 13 of this memo, the Fund Balance and Reserve Policy defines the process for transferring excess funds for capital needs. In FY22/23 and FY23/24, capital projects were budgeted in the General Fund using Fund balance, which canceled the Fund Balance transfer that would have occurred during the audit process. There are a few carryover projects from FY23/24 that are budgeted to be completed in FY24/25, as well as $100,000 in vehicle replacement purchases included in the General Fund Budget. At this time, estimated Fund Balance totals for FY23/24 show that there will be Fund Balance available to transfer to the Capital Accounts for projects, in accordance with the City’s policy. However, with the creation of the ComEd and Nicor Utility Taxes in FY2023/24, capital projects will be primarily budgeted using Utility Tax funds going forward. This may necessitate updates to the Fund Balance and Reserve Policy; this topic will be brought forward for City Council consideration after the FY23/24 audit has concluded. Carrying the General Fund Revenue and Expenditure estimates through the end of the fiscal year (April 30, 2024), it is projected that the total General Fund Balance will be $19,223,163 at the end of FY23/24 (Column V, Row 44). As defined in the Fund Balance and Reserve Policy, the estimated required 120-day General Fund Balance Reserve would be $10,096,337, so this balance is projected to be approximately $9,126,826 higher than the requirement. However, a significant amount of this fund balance is reserved for specific projects. American Rescue Plan Act (ARPA) COVID funds ($3,682,586) are reserved for the Route 31 widening capital project projected to commence in FY25/26; Public Safety Answering Point (PSAP, or 911) Grant funds ($1,240,442) are reserved specifically for dispatch expenses and are approved for spending by the NERCOM board; and Police Seizure Funds ($221,256) can only be allotted to specific Police eligible expenses. The remaining FY23/24 General Fund Balance that could be utilized for capital projects is $4,203,798 (Column V, Row 49); as you will see, a portion of this amount is budgeted for capital projects to be completed in FY24/25.
REVENUES:
General Fund Revenues – FY23/24 Budgeted, FY23/24 Estimated, FY24/25 Proposed General Fund Revenues are derived from a number of sources – taxes, video gaming, licenses and permits, fines and forfeitures, franchise fees, charges for services, reimbursement for services, donations, interest income, and other miscellaneous sources. Some revenues can be clearly identified and estimated based on historical performance or other factors. For example, Property Tax revenue is based on the adoption of the annual property tax levy. However, the economic recession of 2007/2008 and the pandemic have served to remind
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local governments that economic-based revenues, such as Sales Taxes and State Income Taxes, are not guaranteed and are closely tied to the economy and disposable income. In estimating General Fund Revenues for the purpose of budget development, City Administration takes a conservative approach in order to: 1) ensure that General Fund Revenue projections are not overstated to avoid deficit spending and the need to utilize the General Fund Balance (e.g., 120 day unassigned fund balance) for operational expenses; 2) limit excessive increases in operating expenditures; and 3) maintain a financial “buffer,” in the form of the General Fund Balance, to protect the City from future unforeseen economic threats. Utilizing this philosophy, City Administration then considers past revenue performance, current economic trends, local economic conditions, and economic forecast models developed by the Illinois Municipal League (IML) for use by local governments in developing revenue projections for the purpose of budget development.
FY23/24 Budgeted Revenues (Column U) In FY23/24, total budgeted General Fund Revenues were $29,775,254 (Column U, Row 27). Of this, $5,027,941 (16.9%) was from Property Taxes, $9,460,894 (31.8%) was from the City’s 1% share of the State Sales Tax, $3,866,480 (13.0%) was from the .75% Local Sales Tax, and $4,216,779 (14.2%) came from the City’s share of the State Income Tax. Revenues derived from these four (4) sources were budgeted at $22,572,094 or 75.8% of total General Fund Revenues. Of the remaining $7,203,160 (24.2%) in budgeted General Fund Revenues, $1,213,289 (4.1%) were from Charges for Services, $3,078,871 (10.3%) from Reimbursement for Services, $363,000 (1.2%) from Fines and Forfeitures, $295,000 (1.0%) from Licenses and Permits, $380,000 (1.3%) from Franchise Fees, $900,000 (3.0%) from Video Gaming, $200,000 from Telecommunications Tax (0.7%), $350,000 (1.2%) from Interest Income, and the remaining $423,000 (1.4%) came from all other sources combined.
FY23/24 Estimated Revenues (Column V) The following estimated revenues are based on 10 months of actual revenues and projected through the remainder of the fiscal year (April 30, 2024). Unfortunately, in some cases this estimation is more difficult than simply annualizing by dividing the 10-month actual by 10 and multiplying by 12, due to the timing of when specific revenues are received. Further, FY23/24 Actual revenues will not be known and confirmed until approximately 2-3 months (June-July) after the close of the fiscal year due to the timing involved with the receipt of state-shared revenues and, ultimately, the completion of the annual audit in September/October 2024, 4-5 months into the new budget year. At this time, estimated General Fund Revenues are projected to be $31,192,842 (Column V, Row 27) or $1,417,588 (4.8%) higher than FY23/24 Budgeted revenues of $29,775,254. This reflects an estimated decrease of $640,759, or 2.0%, from FY22/23 Actual revenues of $31,833,601. Notably, FY23/24 Estimated Revenues, when compared to FY22/23 Actual revenues and FY23/24 Budgeted revenues, highlight the following:
• (Row 10) State Sales Tax revenue is projected to be $37,185 (0.4%) lower than budgeted and $100,000 (1.1%) lower than the FY22/23 Actual amount.
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• (Row 11) Local Sales Tax revenue is projected to be $73,735 (1.9%) lower than budgeted and $30,000 (0.8%) lower than received in FY22/23.
• (Row 10 + Row 11) Combined, total Sales Tax revenue is estimated to be $110,920 (0.8%) lower than budgeted and $130,000 (1.0%) lower than the FY22/23 Actual. State Sales Tax revenues have shown significant signs of an economic recovery since the beginning of COVID-19, but they have recently begun to this year are showing signs of level off. Estimates and proposed amounts for FY24/25 are extremely conservative, as City Administration watches the actual receipts closely. As a reminder, Local Sales Tax revenues do not include the sale of licensed or titled items such as cars, boats or motorcycles. As such, while the economic recovery and resulting increase in the sale of licensed vehicles has had a positive impact on the City’s portion of the State Sales Tax, it has not similarly impacted Local Sales Tax revenues.
• (Row 12) State Income Tax receipts are estimated to be $226,144 (5.4%) higher than budgeted and $58,494 (1.3%) higher than FY22/23.
• (Row 13) State Replacement Tax receipts are estimated to be $53,333 (27.7%) lower than budgeted and $99,766 (40.5%) lower than FY22/23.
• (Row 15) Self Storage Tax receipts are estimated to be $9,433 (7.9%) higher than budgeted and $85,376 (193.8%) higher than FY22/23. These taxes were not budgeted in FY22/23, as the tax was passed by City Council in June of 2022 and went to effect on 1/1/2023.
• (Row 18) Video Gaming revenues are estimated to be $926,806, which is $26,806 (3.0%) higher than budgeted and $15,603 (1.7%) lower than FY22/23.
• (Row 19) Franchise Fees revenues are estimated to be $34,027 (9.0%) lower than budgeted and $33,105 (8.7%) lower than FY22/23.
• (Row 22) Charges for Services revenues are estimated to be $271,867 (22.4%) higher than budgeted and $98,048 (7.1%) higher than FY22/23.
• (Row 23) Reimbursements for services revenues are estimated to be $425,262 (13.8%) higher than budgeted and $850,720 (32.1%) higher than FY22/23. The large increase over FY23/24 budget is due to Reimbursements for the two school resource officers in the middle schools that were not budgeted.
• (Row 24) Interest Income revenues are estimated to be $493,766 (141%) higher than budgeted and $404,144 (91.9%) higher than FY22/23 due to increased interest rates, as well as fund reserves held for Rt. 31 construction and other purposes.
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• (Row 26) Miscellaneous Income revenues are estimated at $4,778 (6.2%) higher than budgeted and $2,043,202 (96.2%) lower than FY22/23. The large decrease over the FY22/23 actual is due to ARPA COVID funds received in FY22/23.
In summary, FY23/24 Estimated Revenues are projected at $1,417,588 (4.8%) higher
than budgeted primarily due to State Income Tax, Video Gaming receipts, Fines and
Forfeitures, Charges for Services, Interest Income, and Reimbursements. When
compared to FY22/23 Actual Revenues, total General Fund Revenues decreased
$640,759 (2.0%). This is primarily due to State and Local Tax receipts, State
Replacement Tax, and Miscellaneous Income.
FY24/25 Proposed Revenues (Column W) FY24/25 Proposed General Fund Revenues represent a net increase of $1,399,275 (4.7%) from FY23/24 Budgeted revenues and a decrease of $659,072 (2.1%) from FY22/23 Actual revenues. Highlights of changes to General Fund Revenues proposed for FY24/25 include:
• (Row 9) At the direction of City Council, the City’s property tax levy was not increased for 2024. This, combined with declining Road and Bridge Taxes and property tax collection rates around 99%, resulted in an estimated Property Tax revenue decrease of $40,379 (0.8%) versus the FY23/24 Budget.
• (Row 10) State Sales Tax revenues are proposed at $9,356,404, which is $104,490 (1.1%) lower than FY23/24 Budget. The City has seen the leveling out of Sales Taxes during FY23/24, so FY24/25 revenue was conservatively decreased.
o The Governor has proposed permanently eliminating the state-wide 1% Grocery Tax and has not proposed covering the losses from other sources for local governments. If this occurs, the City’s Sales Tax revenue would decrease by approximately an additional $900,000. This would be a significant reduction to the City’s overall budget. As of March 1, 2024, the Illinois Municipal League is actively lobbying against this proposal on behalf of Illinois municipalities.
• (Row 11) Local Sales Tax revenues are proposed at $3,874,618, an increase of $8,138 (.2%) from the amount budgeted in FY23/24.
• (Row 10 + Row 11) Combined State and Local Sales Tax revenues are proposed at $13,231,022, a decrease of $96,352 (0.7%) from the FY23/24 Budget amount.
• (Row 12) State Income Tax revenues are proposed at $4,640,085, an increase of $423,306 (10.04%) from FY23/24. Regarding State Income Tax revenues, please note the following:
o There are multiple agencies working to restore the Local Government Distributive Fund (LGDF), which includes Income Tax distribution, to its full
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10 percent (which was cut to 6% in 2011, changed a few times since then and currently sits at just over 6%). Over the years, the Governor has proposed cutting an additional 10% from the LGDF. Restoring or cutting these funds could represent a large increase or decrease in revenues. Staff will continue to watch these developments closely in case expense adjustments need to be made to offset any decrease in revenue.
• (Row 14) State Telecommunication Tax revenues are proposed at $190,000, which is $10,000 (5.0%) less than the amount budgeted in FY23/24, as revenues have continued to decline over the last few years.
• (Row 15) Self Storage Tax receipts are expected to be $125,000 in FY24/25, an increase of $5,000 (4.2%) from the amount budgeted in FY23/24.
• (Row 18) Video Gaming revenues are proposed at $925,000, a $25,000 (2.78%) increase from the FY23/24 Budget amount.
• (Row 19) Franchise Fees revenues are proposed to decrease by $40,000, or 10.53% from the amount budgeted in FY23/24.
• (Row 20) Licenses and Permits revenues are proposed to decrease by $6,000, or 2.03% from the amount budgeted in FY23/24.
• (Row 22) Charges for Services revenues are proposed to increase by $171,000, or 14.09% from the amount budgeted in FY23/24.
• (Row 23) Reimbursements are proposed to increase $643,744 or 20.91%. This category includes the Police Dispatch Center revenues derived from partner and customer agencies served through this facility, police school resource officer reimbursements, police impound fees, and other miscellaneous reimbursements.
• (Row 24) Interest Income is proposed to increase $250,000 (71.43%) due to increasing interest rates.
• (Row 26) Miscellaneous Income is proposed to increase $116,456 or 151.24%, primarily due to anticipated Police Department Grant funds for body cameras.
In summary, FY24/25 Proposed Revenues are $1,399,275 (4.7%) higher than
budgeted in FY23/24 and $18,313 (0.05%) lower than FY23/24 Estimated revenues.
The primary reasons for the proposed increase include an increase in Local Sales Tax
($8,138), an increase to the Income Tax ($423,306), an increase to the Self Storage Tax
($5,000), an increase in Video Gaming revenues ($25,000), an increase in Fines and
Forfeitures revenues ($15,000), an increase to Charges for Services revenues
($171,000), an increase to Reimbursement revenues ($643,744), an increase to
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Interest Income ($250,000), and an increase to Miscellaneous revenues ($116,456).
These increases are partially offset by decreases to Property Tax revenue ($40,379),
Sales Tax ($104,490), State Replacement Tax revenue ($70,000), State
Telecommunication Tax revenue ($10,000), Franchise Fees revenues ($40,000), and
Licenses and Permit revenues ($6,000).
EXPENDITURES:
General Fund Expenditures – FY23/24 Budgeted, FY23/24 Estimated, FY24/25
Proposed General Fund Expenditures include personnel, contractual, supplies and other operating expenses related to the following operating budgets - Administration (100.01), Elected Officials (100.02), Community Development (100.03), Finance (100.04), Human Resources (100.05), Economic Development (100.06), Police Commission (100.21), Police (100.22), Police Dispatch (100.23), Public Works-Administration (100.30), Public Works-Streets (100.33), Parks and Recreation (100.41), and Parks Maintenance (100.45). In addition, the General Fund also serves as a funding source for revenue transfers to other municipal accounts found within Special Revenue Funds, Debt Service Funds, Internal Service Funds, and Fiduciary Funds.
FY23/24 Budgeted Expenditures (Column U) In FY23/24, total budgeted expenditures (capital and operating) were $31,881,339. Budgeted capital expenditures were $2,588,400, and budgeted operating expenditures were $29,292,939. While this amount reflected an increase of $2,858,417 (10.8%) from the FY22/23 Actual expenditures (Column T, Row 38), this difference was primarily due to contractual and personnel expenses. Three additional police officers, two lead telecommunicators, and a Communications Specialist were added to the Police, Dispatch, and Administration departments, respectively. These three positions added almost $700,000 to the budget. The additional $1.1 million was due to contract step and cost of living adjustments for bargaining unit employees and a 5% increase to non-bargaining unit employees as well as insurance increases. Contractual expenses increased just over $550,000 due to increased legal fees, contractual street resurfacing expenses, Comprehensive Plan expenses, and Façade grant expenses.
FY23/24 Estimated Expenditures (Column V) In general, City Administration – including department directors, superintendents, and supervisors – closely monitors expenditures throughout the year to ensure that operating budgets stay within the approved amounts. The fiscal diligence of all of these individuals most often results in expenditures being less than the amount budgeted. Even with surging prices due to recent inflationary pressures, expenditures have been well managed and continue to fall within the budget.
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For FY23/24, operating expenditures are estimated at $27,595,037, or $1,697,902 (5.8%) less than the budgeted amount of $29,292,939. Highlights of changes to FY23/24 Estimated Expenditures include:
• (Row 30) Reduced Personnel costs of $1,012,894 (5.4%) resulting from budgeted positions unfilled during the year and lower benefit costs.
• (Row 31) Contractual costs are estimated at $485,064 (12.8%) lower than the original budget, due to projects that are started (including the Comprehensive Plan and Streets Engineering) but not yet completed, and therefore will need to be carried over to FY24/25.
• (Row 32) Supply costs are estimated at $125,972 (10.9%) less than budget.
• (Row 33) Other estimated expenditures are estimated at $73,972 (5.6%) less than the original budget.
• (Row 34) Capital Outlay expenditures are $495,315 less than the original budget; however, funds have been carried over to complete a number of these projects in FY24/25. Note: City Administration anticipates changes to FY23/24 Estimated expenditures due to increases or decreases in revenues and expenses through the end of the fiscal year.
FY24/25 Proposed Expenditures (Column W) FY24/25 proposed operating expenditures represent an increase of $1,038,373 (3.54%) from the FY23/24 Operating Budget amount of $29,292,939. Highlights of changes to General Fund Expenditures proposed for FY24/25 include:
• (Row 30) Personnel costs are proposed to increase $324,310 (1.72%) over the amount budgeted in FY23/24. Personnel costs include salaries, overtime, health/dental/life/vision insurance, FICA, Police Pension and IMRF retirement, and uniforms. Significant year-over-year changes include: 1. Personnel costs related to salaries account for a $341,077 increase from FY23/24 to FY24/25 due to contract steps and cost of living adjustments. Employees covered by collective bargaining units IUOE Local 150 (Public Works, Parks employees), FOP Unit 1 (Police Patrol), and FOP Unit 2 (Dispatch) receive contract steps and cost of living adjustments (IUOE Local 150 – 2.25%, FOP Unit 1 – 3.5% and FOP Unit 2 – 2.5%). Wage increases are included for Police Sergeants and other non-bargaining employees based on the previous year’s Consumer Price Index for All Urban Areas (CPI-U), which was 3.34% in 2023. City Administration has used the CPI-U as the marker for non-bargaining unit employee increases since FY15/16. In FY24/25, the
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increases were set at 3.5%, just above the CPI-U. There is no additional merit component proposed for FY24/25. 2. Police Pension costs are proposed at $2,373,955 (of which $1,663,589 is a transfer to the Debt Service Fund to cover the Pension Obligation Bond). This equates to an increase of $37,427 (1.6%). Police Pension costs are determined by an actuary retained by the Police Pension Board and are based on several factors, including wages, investment rate, and age of the workforce. The City issued the Pension Obligation Bond in 2020 to set the City up to be 100% funded by the required deadline of 2040. 3. A second part-time Freedom of Information Act (FOIA) Officer position has been added to the Police Department budget to process the additional FOIA requests that are anticipated due to the addition of body cameras; this position is budgeted at $21,920. 4. NERCOM has voted to again use PSAP funds to supplement the budget. In FY22/23, $300,000 in PSAP funds was used to cover expenses; this was increased to $500,000 in FY23/24. For FY24/25, $700,000 in PSAP revenues are budgeted to offset dispatch center expenses. Note that the NERCOM board for the dispatch center approved adding two additional Lead Telecommunicator positions to the FY23/24 budget; however, these positions were not filled until December 2023, resulting in salary and benefit savings. 5. Total Benefit costs are proposed to decrease $88,447 (9.4%) due to decreases to insurance elections, FICA, and IMRF costs.
• (Row 31) Contractual costs are anticipated to increase by $443,252 (11.66%) from the amount budgeted in FY23/24 due to the following: 1. The purchase of Body Worn and In-Squad Cameras for the Police Department will add $265,768 to the FY24/25 budget. The Department will apply for grant funding to cover a portion of this cost; in anticipation of being awarded this grant, $115,456 has been budgeted in Reimbursement Revenue. Note that there will be a recurring annual cost for data storage after the first year of the contract. 2. Streets Department expenses were increased by $74,200 (30.29%) to cover an updated road condition survey. 3. Parks Department expenses were increased by $81,914 (28.29%) due to increased special recreation association (NISRA) dues, fees, and additional parks trip expenses. 4. Additional funds were added to other line items due to expected increases in prices due to inflation.
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• (Row 32) Supplies expenditures are proposed to be increased by 0.61% ($7,100) due to increases in prices for all supplies.
• (Row 33) Other expenditures are anticipated to increase by $15,499 (1.18%) due to additional funds budgeted for Special Events.
• (Row 35) Transfers are anticipated to increase by $248,212 (5.97%) due to increased expenses in the Information Technology Fund.
GENERAL FUND BALANCE: On February 1, 2016, City Council adopted a Fund Balance and Reserve Policy that, in summary, establishes minimum levels for designated funds to ensure stability and meet future needs. This policy meets the reporting requirements of Government Accounting Standards Board (GASB) Statement 54, which requires the formal adoption of a policy for the classification of fund balances to categories other than “unassigned.” The policy was established to provide financial stability in the various municipal funds, ensure adequate cash flow for operations, and provide some assurance that the City will be able to respond to emergencies with fiscal strength. In regard to the General Fund Balance, specifically, the Fund Balance and Reserve Policy states:
“General Fund – The unrestricted fund balance target should be set at 120 days
(4 months) of estimated operating expenditures including those expenditures
reported in other Governmental Funds that receive annual operating transfers,
with the exception of transfers intended to fund capital projects. If the
unreserved fund balance falls below 120 days, a plan will be developed to return
to the target balance. If the unreserved fund balance reaches a low of 90 days (3
months), the plan will be implemented to return the fund balance to the target
within a reasonable amount of time. One-time revenues shall not be used to fund
current operations.”
This level of fund balance shall provide the capacity to:
• Offset unexpected downturns in elastic revenues due to fluctuations in the
local, state and national economies or the loss of major sales tax
contributor(s);
• Offset negative fiscal changes brought about by action or legislation of
another unit of government or agency;
• Ensure the continued, timely repayment of debt obligations that the City may
have in the event of a financial downturn;
• Provide a sufficient cash flow for daily financial needs at all times; and,
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• Provide a funding source for unanticipated expenditures or emergencies that
may occur. As identified, the parameters in this policy help to guide City Administration in the development of the annual budget by ensuring that the General Fund Budget is presented as balanced, revenues over expenditures, while maintaining this reserve. Further, the establishment of the target minimum of 120 days provides clarity in identifying the level of funding that is available – once revenues, expenditures and fund balance are identified – to address the City’s capital needs. In other words, any funds remaining after meeting the operational and reserve needs of the municipality are “Assigned for Capital.” The FY23/24 Budget included a beginning General Fund balance of $17,718,443 (Column U, Row 6), based on FY22/23 audited financial information. Based on FY23/24 budgeted revenues, operating expenditures, and capital expenditures (which were funded with fund balance), it was anticipated that the ending fund balance would be $15,612,358 (Column U, Row 44), with an estimated ending unassigned 120-day fund balance of $9,739,783 (Column U, Row 45). With a total of $4,452,282 reserved for the Rt. 31 widening and other uses discussed on page 4 above, the anticipated balance to be transferred to the Capital Improvement Fund was projected to be $1,420,293 (Column U, Row 49). This figure was used to develop the FY24/25 Budget. As noted previously, the City recently implemented two Utility Taxes to address General Fund Capital needs. The ComEd Utility Tax was implemented for existing capital asset maintenance and replacement, and the Nicor Utility Tax was implemented for new capital assets. The City’s existing Capital Improvement and Capital Equipment Funds will be phased out once projects are completed within those funds; they will be replaced with the Capital Asset Maintenance and Replacement Fund (to be funded by the ComEd Utility Tax) and the Capital Asset New Project Fund (to be funded by the Nicor Utility Tax). As referenced above, due to these changes, the Fund Balance and Reserve Policy will likely need to be updated to provide direction for future years where revenues may be greater than expenses.
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A J L N P R T U V W X Y
FY17/18 FY18/19 FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 FY23/24 FY24/25 Budget Budget
Actual Actual Actual Actual Actual Actual Budget Estimated Proposed Variance $Variance %
FUND BALANCE BEGINNING 7,303,780 7,266,953 7,263,313 7,036,056 9,985,441 14,705,115 17,720,608 17,720,608 19,225,328 1,504,720 8.49%
REVENUES Property Taxes 4,947,812 4,945,232 4,950,914 4,940,219 4,844,022 4,975,754 5,027,941 5,000,455 4,987,562 (40,379) -0.80% State Sales Tax 7,659,203 7,765,544 7,810,823 8,730,755 9,227,405 9,523,709 9,460,894 9,423,709 9,356,404 (104,490) -1.10% Local Sales Tax 1,988,773 2,003,318 2,642,858 2,997,213 3,580,074 3,822,745 3,866,480 3,792,745 3,874,618 8,138 0.21% State Income Tax 2,456,160 2,792,465 2,655,608 3,276,353 4,301,251 4,384,429 4,216,779 4,442,923 4,640,085 423,306 10.04% State Replacement Tax 59,769 65,260 83,626 78,561 184,105 246,433 200,000 146,667 130,000 (70,000) -35.00% State Telecommunications Tax 129,378 123,903 260,750 244,938 209,789 198,361 200,000 190,300 190,000 (10,000) -5.00% Self Storage Tax - - - - - 44,057 120,000 129,433 125,000 5,000 4.17% Pull Tabs 886 883 930 893 674 1,312 1,000 310 500 (500) -50.00% Intertrack Wagering 49,872 46,192 40,725 16,080 31,550 39,296 25,000 39,184 38,000 13,000 52.00% Video Gaming 522,691 609,064 533,347 629,107 906,233 942,409 900,000 926,806 925,000 25,000 2.78% Franchise Fees 344,775 345,056 352,679 360,325 386,552 379,078 380,000 345,973 340,000 (40,000) -10.53% Licenses and Permits 368,219 440,575 274,640 346,134 397,499 313,857 295,000 298,874 289,000 (6,000) -2.03% Fines and Forfeitures 368,411 349,262 349,075 309,027 420,532 343,690 363,000 539,780 378,000 15,000 4.13% Charges for Services 1,142,382 1,182,875 1,191,117 927,154 1,271,413 1,387,108 1,213,289 1,485,156 1,384,289 171,000 14.09% Reimbursements 2,127,511 2,338,070 2,072,393 3,504,190 2,732,948 2,653,413 3,078,871 3,504,133 3,722,615 643,744 20.91% Interest Income 80,010 165,029 152,344 15,771 12,157 439,622 350,000 843,766 600,000 250,000 71.43% Donations 17,279 4,450 640 750 13,064 13,348 - 850 - - #DIV/0! Miscellaneous 251,325 313,172 325,294 25,720,555 2,158,123 2,124,980 77,000 81,778 193,456 116,456 151.24%
TOTAL REVENUE 22,514,456 23,490,350 23,697,763 52,098,025 30,677,391 31,833,601 29,775,254 31,192,842 31,174,529 1,399,275 4.70%
EXPENDITURES Personnel 16,450,544 16,671,961 17,064,143 41,566,435 16,285,444 17,037,545 18,859,878 17,846,984 19,184,188 324,310 1.72% Contractual 2,170,853 2,166,593 2,249,031 2,007,064 1,967,719 3,251,340 3,801,918 3,316,854 4,245,170 443,252 11.66% Supplies 896,035 863,022 914,317 645,947 977,964 1,091,952 1,160,070 1,034,098 1,167,170 7,100 0.61% Other 786,570 795,806 864,056 1,580,459 1,092,852 1,289,053 1,316,511 1,242,539 1,332,010 15,499 1.18% Capital Outlay 355,432 1,050,698 1,057,884 1,744,150 1,727,328 2,383,586 2,588,400 2,093,085 892,070 (1,696,330) -65.54% Transfers 1,891,849 1,954,260 1,775,589 1,604,585 3,906,410 3,764,632 4,154,562 4,154,562 4,402,774 248,212 5.97%
TOTAL EXPENDITURES 22,551,283 23,502,340 23,925,020 49,148,640 25,957,717 28,818,108 31,881,339 29,688,122 31,223,382 (657,957) -2.06%
TOTAL OPERATING EXPENDITURES 22,195,851 22,451,642 22,867,136 47,404,490 24,230,389 26,434,522 29,292,939 27,595,037 30,331,312 1,038,373 3.54%
EXCESS/(DEFICIENCY) REVENUES
OVER EXPENDITURES (36,827) (11,990) (227,257) 2,949,385 4,719,674 3,015,493 (2,106,085) 1,504,720 (48,853)
NET CHANGE IN FUND BALANCE (36,827) (11,990) (227,257) 2,949,385 4,719,674 3,015,493 (2,106,085) 1,504,720 (48,853)
FUND BALANCE ENDING 7,266,953 7,254,963 7,036,056 9,985,441 14,705,115 17,720,608 15,614,523 19,225,328 19,176,475 Less Unassigned - 120 days 7,350,447 7,640,353 8,045,963 7,946,826 8,788,191 8,787,381 9,739,783 10,096,337 10,096,337 Less Assigned for Rt 31 Widening 3,682,586 3,682,586 3,682,586 3,682,586 Less PSAP Grant Funds 769,696 769,696 1,240,442 1,540,442 Less Seizure Funds 221,256 171,256 Assigned for Capital (83,494) (385,390) (1,009,907) 2,038,615 5,916,924 4,480,945 1,422,458 4,205,963 3,685,854
General Fund - Revenues, Expenditures and Fund Balance Summary
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Fiscal Year 2024/2025 Annual Budget
General Fund
Operating Budgets
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General Fund Operating Budgets - Overview This section includes the budgets for all operating departments funded through the General Fund. General Fund Operating Departments include - Administration (100.01), Elected Officials (100.02), Community Development (100.03), Finance (100.04), Human Resources (100.05), Economic Development (100.06), Police Commission (100.21), Police (100.22), Police Dispatch (100.23), Public Works-Administration (100.30), Public Works-Streets (100.33), and Parks and Recreation (100.41). While these expenditures have already been summarized, in total, as part of the previous discussion of General Fund Revenues and Expenditures, the information contained in each of the following sections will provide details regarding each operating department. The narrative below is a summary overview of sections that follow.
General Administration (100.01) Overall, the Administration operating budget is proposed to decrease by $80,700 or 5.71% in FY24/25 (Column V, Row 59). Salary/Benefit costs are identified to decrease by a net of $62,562 or 7.76%, primarily due to the removal of expenses budgeted for a retirement payout. Contractual expenditures (Row 21), which includes property tax expenses, insurance administrative expenses, shredding, and other miscellaneous administrative costs, are expected to remain the same in FY24/25. Corporate Legal Fees (Row 22) include the City Attorney, Traffic Attorney and Collective Bargaining representation and are identified to decrease $30,000 in FY24/25. Other expenditures – which includes Administrative Expenses and internal transfers for Risk Management and Information Technology – is proposed to increase by $10,362 (Column V, Row 45).
Elected Officials (100.02) The Elected Officials budget is proposed for a $1,361 increase, or 2.11%, due to an increase to internal transfers for Information Technology. (Column V, Row 37).
Community Development (100.03) The Community Development budget is proposed increase $134,815, or 9.03% (Column V, Row 42). Salary/Benefit costs are budgeted to increase by $114,764 (12.42%). This includes $81,488 in non-union salary increases (which incorporates absorbing the transfer of an existing Customer Support Specialist position from Finance) and $33,276 in benefit cost increases. Contractual Services are identified to increase by $6,300 (1.53%). Supplies will remain the same, and the internal transfer for Risk Management and Information Technology will increase by $13,751 (12.38%).
Finance (100.04) Salary/Benefit costs are anticipated to decrease by $59,840 (10.71%) due to moving an existing Customer Support Specialist position to the Community Development Department. Contractual Expenses are expected to increase $5,000 (7.04%) due to higher credit card fees and postage increases. Development Expenses are expected to be remain the same, as no new incentives were added in FY23/24. Transfers for Debt Service, Civil Defense Fund, Information Technology, and Audit Funds are budgeted to increase by $29,910 (1.76%).
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Human Resources (100.05) Salaries/Benefit costs are budgeted to increase by $24,571 (8.82%), which is primarily due to salary and insurance increases. Contractual Services are budgeted to decrease by $16,500 (26.48%) due primarily to the removal of the FY23/24 expense for the City Administrator recruitment, while Other Expenses increase by $4,154 (18.97%) due to an increased Information Technology Fund transfer.
Economic Development (100.06) Salary/Benefit costs are budgeted to increase by $7,516 (2.55%) due to salary and insurance increases. Contractual Services increase $6,050 (3.04%) due to increased Marketing expenses. Purchase of Services – Information Technology expenses increase by $2,006 (18.98%).
Police (100.22) The Police budget is proposed at an overall increase of $620,422, or 5.06% from FY23/24. Salary costs (Column W, Rows 7 through 11) are identified to increase by $178,559 due to the addition of a second part-time FOIA officer, sworn salary increases, and non-sworn salary increases. These increases are offset by benefit decreases of $16,030 which are attributable to lower insurance costs due to insurance election changes. . As discussed earlier, Police Pension costs are determined by an actuary retained by the Police Pension Board and are based on a number of factors, including wages, investment rate, and age of the workforce. Contractual Services are budgeted to increase by $294,318 (79.67%) due to the purchase of body-worn and in-car cameras, annual expenses for the McHenry Forensic Computer Tech Lab, increased telephone costs and training/travel. Supplies decrease by $16,950 (6.89%) due to lower gasoline usage/costs. The transfer to Information Technology increases by $127,409 (20.51%) due to higher expenses within the Information Technology Fund. Capital Expenses within the Police Department Budget include a speed sign, firearms simulator, furniture, handheld radar units, and miscellaneous police equipment. The FY24/25 capital budget also includes a project to install a security fence for a new fueling station at the Public Works garage; seizure funds will be used to pay for this $50,000 expense.
Dispatch Center (100.23) FY24/25 represents the eighth full year of operation for the consolidated dispatch center, NERCOM, which serves 16 area agencies. The proposed FY24/25 budget has been presented and approved by the partners of the dispatch center. The total amount proposed for the dispatch center in FY24/25 is $3,164,925. Salaries/Benefit Costs show a net decrease of $10,464 (0.35%) due to decreased benefit costs. As referenced above, PSAP Grant Funds have been used for the past few years to offset NERCOM’s costs. For FY22/23, the partners voted to use $300,000 in PSAP Grant funds; for FY23/24, this was increased to $500,000 in PSAP Grant funds (which are currently reflected in the General Fund Balance due to timing). The partners voted to increase PSAP grant funds to $700,000 to support the dispatch center for FY24/25. This grant funding has helped to lower the overall cost to the City and the other partners of the dispatch center, and the remaining funds can be used when updates are needed to the Center. As a reminder, the total dispatch center budget is also offset by more than $1.7 million in reimbursements as a result of the partnerships with the City of Woodstock, City of Harvard and McHenry Township Fire Protection District, and through charges for dispatch services paid by customers of the dispatch center. These are reflected as General Fund Revenues and included in Row 23 of the General Fund – Revenues, Expenditures and Fund Balance Summary sheet.
Public Works Administration (100.30) The overall Public Works Administration budget is proposed to decrease by $19,840 (3.68%) due
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to decreases to salaries and insurance costs, offset slightly by an increase to transfers for Information Technology.
Public Works Streets (100.33) The FY24/25 Public Works Streets budget is proposed to increase by a total of $125,216 (3.02%) from FY23/24. Salaries/Benefits are proposed to increase by $91,423 (5.42%) due to salary and insurance increases. Additionally, Contractual (Row 21) costs have been increased by $74,200 (30.29%) due to an updated road condition survey expense. Materials and Supplies costs have been reduced by $40,000 (6.97%) due to an analysis of historical trends. Transfers for Information Technology increase $4,823 (18.61%).
Parks and Recreation (100.41) As of FY23/24, the Parks Maintenance department was removed from the Parks and Recreation budget, but all programming expenses related to the Recreation Division not associated with the McHenry Recreation Center are still included. Revenues from recreation programming, which are reflected in General Fund Revenues, offset many of these costs. The overall FY24/25 Parks and Recreation budget is proposed to increase by a total of $254,811 (15.95%). Salary/Benefit costs are identified to increase by a total of $50,795 (7.2%), primarily due to increases to Seasonal Salaries for increased programming; Contractual Services are budgeted to increase by $81,914 (28.29%) due to increased NISRA dues, increased fees, and trip fees; Supplies to increase by $25,400 (23.94%); and Other costs to increase by $56,702 (11.41%) due to increases to Special Events expenses and the Information Technology and Recreation Center Transfers. A Capital Expense of $40,000 was added to cover three basketball court renovations.
Parks Maintenance (100.45) The Parks maintenance budget is proposed to increase by $86,685, or 5.78% from FY23/24. Salary/Benefit costs are identified to increase $30,685 (2.67%) due to contract and benefit increases. Contractual expenses will increase by $20,000 (9.64%) due to increased repair expenses. Supplies expenses will increase by $36,000 (25.0%) due to Petersen Farmhouse improvements and increased maintenance costs.
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. Fiscal Year 2024/2025 Annual Budget
General
Administration
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General Administration – Overview The General Administration Budget contains personnel and operational functions related to the provision of general administrative services and, beginning in FY19/20, includes capital projects expenditures from the General Fund Balance. Beginning in FY18/19, due to operational/department restructuring, economic development and human resources functions were formed under separate departmental budgets (Economic Development and Human Resources) and, as such, all related expenditures are now found within these budgets. Next, municipal center building and grounds maintenance activities are now included under the Department of Community Development and, starting in FY19/20, all Contractual and Repair and Maintenance costs related to these activities were also transferred to the Community Development Budget. Finally, capital projects to be funded through the General Fund Balance are accounted for in this fund. The Office of the City Administrator, which includes the positions of City Administrator and Deputy City Clerk, is responsible for providing management services, budgeting, legislative support, and communications to elected officials, staff, and the public in carrying out the policy and direction as set by the City Council.
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General Administration – Organizational Chart
City Administrator
Suzanne Ostrovsky
Deputy City Clerk
Monte Johnson
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General Administration – FY23/24 Accomplishments
• Delivered positive financial results for FY23/24; the fiscal year is projected to end with 4.8% higher overall revenues and 6.9% lower overall expenses than budgeted.
• Developed and presented a balanced operating budget to City Council for FY24/25, including a $3.2 million local street program.
• Coordinated all City liquor and gaming license application procedures; enacted an ordinance in 2023 to help define a video gaming café, and to restrict any new video gaming cafes from obtaining liquor and gaming licenses.
• Laserfiche, the City’s digital document program, continues to grow as over 1 million documents have now been scanned or uploaded to the system. This makes the finding of historical documents very efficient when it otherwise may have been impossible to find certain documents. Many forms have been digitized for both public and internal use, further making tasks more efficient.
• The City’s Geographic Information System (GIS) continues to grow and become a vital part of daily work activity. Public Works assets are housed in GIS, and public facing GIS applications allow the City to promote transparency and give the public an easy way to use City data in a geographical manner.
• Completed the recruitment and onboarding process for a new City Administrator. General Administration – FY24/25 Goals & Objectives
• Assist department staff as needed to support growth and development in the City, with a primary focus on maximizing investment within the City’s downtown Tax Increment Financing (TIF) district.
• Continue to evaluate and identify alternative revenue sources, especially as the State of Illinois continues to threaten local government pass-through revenues.
• Develop a long-term revenue and expense forecast formula.
• Formulate a cohesive and collaborative path forward for the City, which may include a formal strategic planning effort.
• Collaborate with Human Resources and Department Directors to develop departmental succession plans.
• Continue to provide leadership and oversight to all departments to provide the highest quality of services in the most cost and time efficient manner to customers.
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A B O Q S T U V W X
Account Account FY20/21 FY21/22 FY22/23 FY23/24 FY23/24 FY24/25
Number Description Actual Actual Actual Budget Estimated Proposed
Salaries/Benefits4010Salaries 301,140 318,799 350,538 584,376 457,104 527,891 (56,485) -9.67%4050 Overtime 146 - - 1,000 750 1,000 - 0.00%4110 Salaries - Seasonal 74 - - - - - - #DIV/0!4220 Board and Commission Expense 6,087 2,644 6,313 16,000 6,300 6,500 (9,500) -59.38%4310 Health Insurance 65,217 68,609 65,290 103,101 58,201 114,250 11,149 10.81%4320 Dental Insurance 1,723 2,497 3,037 4,333 3,195 4,337 4 0.09%4330 Life Insurance 215 257 266 476 212 288 (188) -39.50%4340 Vision Insurance 152 297 338 474 340 448 (26) -5.49%4410 FICA Medicare 20,832 21,810 23,891 38,729 33,969 37,742 (987) -2.55%4420 IMRF Retirement 36,324 37,316 36,104 57,250 43,821 50,721 (6,529) -11.40%4510 Uniform Allowance 246 413 83 950 699 950 - 0.00%TOTAL SALARIES/BENEFITS 432,156 452,642 485,860 806,689 604,591 744,127 (62,562) -7.76%Contractual Services5110Contractual 154,956 95,321 56,358 100,000 91,928 100,000 - 0.00%5230 Corporate Legal Fees (All Departments)243,660 240,682 319,123 300,000 264,068 270,000 (30,000) -10.00%5310 Postage and Meter 1,071 862 918 1,000 952 1,000 - 0.00%5330 Printing and Publishing 4,952 4,136 330 2,500 487 2,500 - 0.00%5370 Repair and Maintenance - - - 500 - - (500) -100.00%5410 Dues 15,241 14,923 17,322 19,000 14,252 19,000 - 0.00%5420 Travel Expense - 383 6,050 4,000 3,846 5,000 1,000 25.00%5430 Training 912 1,155 2,916 1,500 1,058 2,500 1,000 66.67%5510 Utilities - - 17 500 - 500 - 0.00%TOTAL CONTRACTUAL SERVICES 420,792 357,462 403,034 429,000 376,591 400,500 (28,500) -6.64%Supplies6110 Materials and Supplies 33,821 27,599 55,824 30,000 25,396 30,000 - 0.00%6210 Office Supplies 687 1,256 333 1,500 1,695 1,500 - 0.00%6250 Gasoline and Oil - 828 - - - - - #DIV/0!TOTAL SUPPLIES 34,508 29,683 56,157 31,500 27,091 31,500 - 0.00%
Variance
($)
Variance
(%)
General Administration - Fund Summary (Fund 100, Department 01)
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A B O Q S T U V W X
Account Account FY20/21 FY21/22 FY22/23 FY23/24 FY23/24 FY24/25
Number Description Actual Actual Actual Budget Estimated Proposed
Variance
($)
Variance
(%)
General Administration - Fund Summary (Fund 100, Department 01)
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- #DIV/0!Other6940 Administrative Expense 236,600 11,106 7,479 8,500 5,850 8,500 - 0.00%9920 Purchase of Services - Risk Management 48,302 51,418 65,949 80,739 80,739 80,739 - 0.00%9922 Purchase of Services - Information Tech 40,688 43,415 48,172 57,618 57,618 67,980 10,362 17.98%TOTAL OTHER 325,590 105,939 121,600 146,857 144,207 157,219 10,362 7.06%Capital Outlay8100Land - 533,969 809,618 40,000 45,052 - (40,000) -100.00%8200 Buildings 389,843 99,266 303,590 - (2,181) - - #DIV/0!8300 Equipment 100,276 68,878 172,024 - 7,064 - - #DIV/0!8400 Vehicle 1,128,524 226,925 271,684 - - 100,000 100,000 #DIV/0!8600 Streets 30,812 7,008 - 100,000 - 209,970 109,970 109.97%8900 Public Improvements 44,925 269,748 549,359 2,420,900 2,028,112 460,000 (1,960,900) -81.00%TOTAL CAPITAL OUTLAY 1,694,380 1,205,794 2,106,275 2,560,900 2,078,047 769,970 (1,790,930) -69.93%TOTAL GENERAL ADMINISTRATION 2,907,426 2,151,520 3,172,926 3,974,946 3,230,527 2,103,316 (1,871,630) -47.09%TOTAL GENERAL OPERATING EXPENDITURES 1,213,046 945,726 1,066,651 1,414,046 1,152,480 1,333,346 (80,700) -5.71%
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Fiscal Year 2024/2025 Annual Budget
Elected
Officials
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Elected Officials - Overview The Elected Officials Budget contains personnel and operational functions related to the elected positions of the municipality. These include the Office of the Mayor, the seven (7) Aldermen, and the City Clerk. The primary functions of these elected positions are described below. The Office of the Mayor provides leadership, initiative, and direction necessary to provide quality services to the citizens of McHenry. The Mayor interacts continuously with the appointed City Administrator in ensuring that the established policies and ordinances of the municipality, as set by the City Council, are carried out by the various departments, divisions and employees of the city. The City Council, comprised of seven (7) Aldermen representing geographically defined wards and elected to staggered four (4) year terms, is the legislative body for the City of McHenry. The authority of the City Council is expressed during regularly scheduled City Council Meetings (1st and 3rd Mondays of each month) through the adoption of policies, resolutions, ordinances and other related actions as deemed appropriate to promote and protect the high level of service quality and financial stability of the City. The City Clerk, elected every four (4) years, has the responsibility for taking minutes for all regular City Council meetings, Committee of the Whole meetings, and Planning and Zoning Board meetings. The City Clerk is also responsible for records management of the municipality. The City Clerk is assisted in these efforts by an appointed Deputy City Clerk who is a full-time employee of the City.
Wayne S. JettMayor
Victor A SantiAldermanWard 1 Andrew GlabAldermanWard 2
Frank McClatcheyAldermanWard 3 Chris BassiAldermanWard 4
Shawn StrachAldermanWard 5 Michael KochAldermanWard 6
Sue MillerAlderwomanWard 7
Trisha RamelCity Clerk
Monte JohnsonDeputy City Clerk
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A B O Q S T U V W X
Account Account FY20/21 FY21/22 FY22/23 FY23/24 FY23/24 FY24/25
Number Description Actual Actual Actual Budget Estimated Proposed
Salaries/Benefits4010Salaries - - - - - - #DIV/0!4210 Salaries - Elected Officials 53,135 52,675 53,700 53,300 53,850 53,300 - 0.00%4410 FICA Medicare 4,065 4,030 4,109 4,077 4,106 4,077 - 0.00%4420 IMRF Retirement - - - - - - - #DIV/0!TOTAL SALARIES/BENEFITS 57,200 56,705 57,809 57,377 57,956 57,377 - 0.00%Contractual Services5310Postage and Meter - - 5 - - - - #DIV/0!5330 Printing and Publishing 46 - - - - - - #DIV/0!5410 Dues - - - - - - - #DIV/0!5420 Travel Expense - - - - - - - #DIV/0!5430 Training - - - - - - - #DIV/0!5450 Publications - - - - - - - #DIV/0!TOTAL CONTRACTUAL SERVICES 46 - 5 - - - - #DIV/0!Supplies6210 Office Supplies 70 - - - - - - #DIV/0!TOTAL SUPPLIES 70 - - - - - - #DIV/0!Other6940 Administrative Expense 19,568 - - - - - - #DIV/0!9922 Purchase of Services - Information Tech 8,025 8,606 5,933 7,173 7,173 8,534 1,361 18.97%TOTAL OTHER 27,593 8,606 5,933 7,173 7,173 8,534 1,361 18.97%TOTAL ELECTED OFFICIALS 84,909 65,311 63,747 64,550 65,129 65,911 1,361 2.11%
Variance
($)
Variance
(%)
Elected Officials - Fund Summary (Fund 100, Department 02)
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Fiscal Year 2024/2025 Annual Budget
Community
Development
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Community Development - Overview
The Department of Community Development is responsible for promoting the health, welfare, safety, and quality of life to McHenry citizens, property owners, visitors, and commercial interests. These services are provided by an experienced and professional staff that consists of a City Planner, Building Inspector, Plans Examiner, Plumbing Inspector/ Code Enforcement Officer, and a full time Code Enforcement Officer. The administrative staff within the department includes one Permit & Customer Service Representative and two Customer Service Specialists. The Community Development administrative staff is tasked with handling day-to-day operations at the City’s main customer service counter. This incudes acceptance of payment of water bills, adjudication fines and permitting fees, issuance of building and downtown parking permits, and answering general questions, along with a range of additional operational tasks. Building grounds and maintenance for the Municipal Center also falls under Community Development; this division consists of one full time Facilities Manager and one full time custodial position. The Department relies on a partnership with local and regional government and public agencies, community-based organizations, and the business community to succeed in its mission. The Department of Community Development strives to achieve the highest level of customer service and professionalism in helping the community thrive. The Department of Community Development coordinates closely with the Director of Economic Development to ensure that business expansion, relocation and development projects remain top priorities. Staff also ensures that processes are streamlined to the extent possible, while maintaining the appropriate attention to detail regarding applicable codes and other guidelines.
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Community Development – Organizational Chart
Community Development
Director
Ross Polerecky
Planning & Zoning
City Planner
Cody Sherrif
Building
Inspection
Building Inspector
Dave Watkins
Plans Examiner
Dan Tonyan
Plumbing Inspector /Code
Enforcment Officer
Norman Swanson
Code
Enforcement
Code Enforcement
Officer
Jake Marino
Building & Grounds
Maintenance
Facilities Manager
John Cummings
Custodian
Jeff Oland
Permit and Cusomer Service
Representative
Susan Youngblood
Customer Service
Specialist
Samantha Preston
Customer ServiceSpecialist
Haley Riendeau
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Community Development – FY23/24 Accomplishments
• Continued to provide exceptional service to the community
• Continued to work with comprehensive plan consultant HDR to establish a new and updated comprehensive plan for the City
• Issuance of over 26 single and multi-family home permits
• Consolidation of the City’s GIS maps into one functional package that can be used by all individuals in the City, but maintaining restrictions for editing and viewing of certain sensitive layers (i.e., water and sewer infrastructure)
• Continued efforts to digitize historical building documents using Laserfiche
• Creation of a downtown streetscape plan for the Riverside Drive Corridor
• Approval and start of construction for 540 market rate apartments in the Fox Meadows subdivision
• Updates to the Municipal Code and Zoning Ordinance
• Acquisition of properties within the downtown area to help facilitate development within the Downtown TIF District
• Updated downtown parking permit ordinances and regulations
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Community Development – FY24/25 Goals & Objectives
• Continue to support efforts to redevelop the Green Street corridor and the Central Wastewater Treatment Plant site
• Focus on redevelopment of additional vacant lots within the downtown districts
• Update building permit fees
• Update building codes
• Continue to update antiquated ordinances
• Continue to provide a high level of customer service to residents and businesses
• Focus on continuing education of employees within the department to ensure that we provide the highest level of service possible
• Work closely with Economic Development to continue efforts to draw development to the City of McHenry
• Implementation of the downtown streetscape plan for the Riverside Drive Corridor
• Explore options to create a unified development ordinance
• Continue code enforcement efforts
• Continue to focus on residential growth, particularly single family homesites
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Community Development – FY24/25 Performance Measures Item Goal Description FY24/25 Proposed Outcome(s)
Redevelopment of vacant downtown parcels Focus efforts to redevelop downtown vacant parcels Recruit qualified developers Masterplan the downtown districts
Explore options to create a unified development ordinance
Research other municipalities and their UDO to educate ourselves on the processes of implementing a UDO
A UDO is a document in
which traditional zoning
regulations are combined
with other desired city
regulations, such as design
guidelines and water
management, into a single
document
To be ready to start implementation of a UDO in the 24/25 fiscal year
Code Enforcement efforts To use education and face to face contact with residents to increase code compliance
Are code compliance violations being mitigated and closed in an efficient manner Continue a high level of compliance in the code enforcement department
Digitize historical building documents
To continue to digitize building documents thus eliminating paper and creating an easier more efficient way to review these documents
Digitize, label and file documents to create a more efficient method of searching reviewing old documents 60% of historic documents transferred to Laserfishe
Downtown Streetscape Masterplan Continue with design of the Riverside Drive corridor
Explore grant opportunities to help fund construction of phase I of the downtown streetscape plan
To set a construction schedule for the construction of phase I of the downtown streetscape plan
Comprehensive Plan Continue to work with comprehensive plan consultant
Focus on community outreach and develop a useful comprehensive plan to help guide new development Present a new comprehensive plan to the city
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A B O Q S T U V W X
Account Account FY20/21 FY21/22 FY22/23 FY23/24 FY23/24 FY24/25
Number Description Actual Actual Actual Budget Estimated Proposed
Salaries/Benefits4010Salaries 512,770 524,676 609,003 624,528 662,604 706,016 81,488 13.05%4310 Health Insurance 117,869 131,874 149,860 178,815 165,871 200,972 22,157 12.39%4320 Dental Insurance 4,270 5,211 6,220 7,695 7,354 7,775 80 1.04%4330 Life Insurance 267 411 568 664 475 459 (205) -30.87%4340 Vision Insurance 498 699 797 890 875 871 (19) -2.13%4410 FICA Medicare 37,331 37,997 44,279 47,776 47,731 53,245 5,469 11.45%4420 IMRF Retirement 128,386 61,366 62,735 61,079 62,156 66,748 5,669 9.28%4510 Uniform Allowance 1,009 1,052 1,566 2,375 1,202 2,500 125 5.26%TOTAL SALARIES/BENEFITS 802,400 763,286 875,028 923,822 948,268 1,038,586 114,764 12.42%Contractual Services5110Contractual 23,746 21,035 205,355 316,100 313,197 325,000 8,900 2.82%5120 Building Maintenance 36,360 27,875 39,336 82,600 80,956 72,000 (10,600) -12.83%5310 Postage and Meter 569 357 724 1,000 1,024 2,000 1,000 100.00%5330 Printing and Publishing 297 1,019 1,916 1,500 2,206 1,500 - 0.00%5370 Repair and Maintenance 1,118 646 3,713 5,000 4,262 5,000 - 0.00%5410 Dues 422 664 967 1,600 481 1,600 - 0.00%5420 Travel Expense - - - - - - - #DIV/0!5430 Training 1,090 1,399 1,919 3,000 2,394 6,000 3,000 100.00%5450 Publications 3,899 46 174 1,000 245 5,000 4,000 400.00%TOTAL CONTRACTUAL SERVICES 67,501 53,041 254,104 411,800 404,765 418,100 6,300 1.53%Supplies6110 Materials and Supplies 9,543 15,479 27,079 30,000 21,771 30,000 - 0.00%6210 Office Supplies 982 953 1,614 2,500 2,866 2,500 - 0.00%6250 Gasoline and Oil 3,732 8,492 12,842 12,000 12,005 12,000 - 0.00%6270 Small Equipment 879 537 156 2,000 - 2,000 - 0.00%TOTAL SUPPLIES 15,136 25,461 41,691 46,500 36,642 46,500 - 0.00%Other9920 Purchase of Services - Risk Management 23,540 23,540 30,127 36,884 36,884 36,884 - 0.00%9922 Purchase of Services - Information Tech 50,592 54,128 61,684 74,221 74,221 87,972 13,751 18.53%TOTAL OTHER 74,132 77,668 91,811 111,105 111,105 124,856 13,751 12.38%
TOTAL COMMUNITY DEVELOPMENT 959,169 919,456 1,262,634 1,493,227 1,500,780 1,628,042 134,815 9.03%
Community Development - Fund Summary (Fund 100, Department 03)
Budget
Variance ($)
Budget
Variance (%)
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Fiscal Year 2024/2025 Annual Budget
Finance
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Finance - Overview
Mission Statement It is the mission of the Finance Department to account for all municipal resources and to apply such resources in a manner that is most beneficial to the citizens of McHenry. The primary operating functions of the Finance Department are as follows:
• Administration: Responsible for management of financial affairs of the city, including budgeting and financial planning, and supervision of operations within the department.
• Accounting: Provides the City’s financial reporting, payroll processing, accounts payable and receivable, purchasing, fixed asset reporting, special tax collections, billing, and auditing functions.
• Revenue: Collects various revenues, manages the Police Pension fund, ensures payments to retirees are processed, and invests idle City funds.
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Finance – Organizational Chart
Finance DirectorCarolyn Lynch
Finance SpecialistAccounts PayableBonnie Rostron
Finance SpecialistPayrollAccounts ReceivableAmy Nuss
Finance SpecialistUtility BillingJulia Heil
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Finance – FY23/24 Accomplishments
• Assisted with obtaining new software for online Utility bill payments.
• Completed analysis on water/sewer rates to ensure operating expenses are covered.
• Received an unqualified opinion on the audit.
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Finance – FY24/25 Goals & Objectives
• Improve management of the City’s investment portfolio, including implementing cash flow modeling and investment strategies.
• Create a procedure manual for all duties within the finance department including screenshots of the Tyler software to help with cross training.
• Begin cross training within the finance department to ensure vacancies can be covered.
• Improve communication of information to residents.
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Finance – FY24/25 Performance Measures Performance Item Performance Goal Performance Measure FY24/25 Proposed Outcome(s) Quarterly Reports Develop and update quarterly reports and transmit to the appropriate board. Was the quarterly report updated and transmitted to the board quarterly? September 2024, December 2024, March 2025, and June 2025
Annual Budget Develop and present a balanced operating budget for City Council consideration. Was a balanced operating budget presented for City Council’s consideration? April 2025
Annual Audit Continually have an unqualified audit opinion Whether or not an unqualified opinion has been issued An unqualified opinion issued on the 24/25 audit presented to council in September or October of 2025 Customer and Vendor Concerns/Complaints Return all calls within one business day % of Time that Finance Department Responds to Calls within one business day 100% of the time respond to calls within one business day.
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Account Account FY20/21 FY21/22 FY22/23 FY23/24 FY23/24 FY24/25
Number Description Actual Actual Actual Budget Estimated Proposed
Salaries/Benefits4010Salaries 328,222 364,298 390,182 410,421 371,277 361,648 (48,773) -11.88%4310 Health Insurance 55,120 60,331 68,412 72,773 60,606 72,055 (718) -0.99%4320 Dental Insurance 2,289 2,737 2,801 3,203 2,635 2,478 (725) -22.64%4330 Life Insurance 192 286 363 415 218 204 (211) -50.84%4340 Vision Insurance 388 493 498 530 419 305 (225) -42.45%4410 FICA Medicare 23,882 26,530 28,515 31,397 26,947 27,666 (3,731) -11.88%4420 IMRF Retirement 40,174 42,673 40,201 40,139 34,793 34,682 (5,457) -13.60%TOTAL SALARIES/BENEFITS 450,267 497,348 530,972 558,878 496,895 499,038 (59,840) -10.71%Contractual Services5110Contractual 15,379 31,137 36,607 24,000 27,749 27,000 3,000 12.50%5310 Postage and Meter 27,400 28,326 31,793 34,000 35,602 35,000 1,000 2.94%5330 Printing and Publishing 4,645 11,629 11,578 12,000 13,366 13,000 1,000 8.33%5410 Dues 525 525 525 525 525 525 - 0.00%5420 Travel Expense - - - - - - - #DIV/0!5430 Training - - - 500 - 500 - 0.00%TOTAL CONTRACTUAL SERVICES 47,949 71,617 80,503 71,025 77,242 76,025 5,000 7.04%Supplies6110 Materials and Supplies 972 440 410 500 59 500 - 0.00%6210 Office Supplies 4,933 4,528 4,304 4,000 1,705 4,000 - 0.00%TOTAL SUPPLIES 5,905 4,968 4,714 4,500 1,764 4,500 - 0.00%
Variance
($)
Variance
(%)
Finance - Fund Summary (Fund 100, Department 04)
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A B O Q S T U V W X
Account Account FY20/21 FY21/22 FY22/23 FY23/24 FY23/24 FY24/25
Number Description Actual Actual Actual Budget Estimated Proposed
Variance
($)
Variance
(%)
Finance - Fund Summary (Fund 100, Department 04)
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Other6945 Development Expense 717,140 763,220 982,788 1,000,000 911,695 1,000,000 - 0.00%7600 Loan Interest - 29,053 25,794 17,798 17,798 9,550 (8,248) -46.34%7610 Loan Payment 244,568 251,957 233,555 263,213 263,213 271,460 8,247 3.13%9904 Transfer to Debt Service 182,642 182,975 185,938 188,769 188,769 187,934 (835) -0.44%9942 Transfer to Capital Improvement Fund - 696,503 - - - - - #DIV/0!9944 Transfer to Band Fund 12,000 - 12,000 12,000 12,000 12,000 - 0.00%9945 Transfer to Civil Defense Fund 6,000 6,000 4,000 4,000 4,000 6,000 2,000 50.00%9947 Transfer Other Funds 22,500 (84,555) - - - - - #DIV/0!9920 Purchase of Service - Risk Management 16,226 16,226 20,758 25,414 25,414 25,414 - 0.00%9922 Purchase of Service - IT 90,331 96,269 116,664 138,494 138,494 162,440 23,946 17.29%9923 Purchase of Service - Audit - 2,000 14,000 7,000 7,000 11,000 4,000 57.14%TOTAL OTHER 1,291,407 1,959,648 1,595,497 1,656,688 1,568,383 1,685,798 29,110 1.76%TOTAL FINANCE 1,795,528 2,533,581 2,211,686 2,291,091 2,144,284 2,265,361 (25,730) -1.12%
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Fiscal Year 2024/2025 Annual Budget
Human
Resources
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Human Resources – Overview The Department of Human Resources coordinates the employee and risk related functions of the City. This includes compensation, benefits, wellness, staffing, recruitment & selection, internal policies, workers compensation and safety, performance management, labor relations, and employee relations, training, and process improvement. The City employs an average of 275 full and permanent part-time staff, including staff for the McHenry Recreation Center. During the summer season, this increases to around 330 employees. During the 24/25 budget year we, along with our consultants, will continue to watch insurance costs including health, workers compensation, and liability. The insurance industry continues to be volatile with weather-based claims throughout the country, the rising cost of pharmaceuticals, and the emotional health of our employees and their families. We continue to be as proactive as possible to mitigate claims, train on safety, and minimize insurance rate increases.
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Human Resources – Organizational Chart
Director of Human Resources
Ann Campanella
Human Resources Coordinator
Nicole Meyer
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Human Resources – FY23/24 Accomplishments
• Wellness. Human Resources staff revised the City’s wellness program to increase employee accountability for their own health year-round. Continued success with our wellness program, including biometric screenings, earned the City nearly $20,000 in rebates from the IPBC, the City’s insurance cooperative.
• We implemented a new electronic benefit system, PlanSource, through the IPBC. This was time consuming, as the migration of employee and retiree information from our old system did not go as PlanSource had planned. We were on the forefront of finding errors and working with the implementation team to find solutions.
• NeoGov Perform Software Customization. This has moved from implementation to working on customization for different departments.
• Harassment Prevention Training. Human Resources staff oversees the annual training required for all employees.
• Employee Handbook. Yearly updates to align with new legislation.
• Family & Medical Leave. Coordinator Meyer has kept the City compliant, managing 25 FMLA full time and intermittent cases in 2023.
• Implementation of NeoGov Learn. Starting implementation of this learning management software. With the increasing requirement of mandated training, even for part time employees, this system that comes with thousands of interactive training modules, will track each employee’s training, send reminders, and give employees greater opportunities for development.
• Implement Paid Time Off for All Workers Act. This new Illinois mandate took effect 1/1/24, however there was much work in 2023 to find a timekeeping system for the part time/seasonal staff, create the policy, and coordinate the training of timekeeping and the Act itself.
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Human Resources – FY24/25 Goals & Objectives
• Processes & Procedures. Continue the process of creating a written record of all HR & Risk processes and procedures.
• Wellness. Roll out updated wellness program and increase participation.
• Risk Management. Work with our insurer, Safety National, to create more safety training options.
• Compliance. Each year employers are required to provide numerous compliance notices to all employees, especially regarding health care. This year we will create a system to track and disseminate these notices.
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Human Resources – FY24/25 Performance Measures
Item Goal Description FY24/25 Proposed Outcome(s)
Training & Development Add customization to Learn program Customize training and create more courses
Provide more training & development opportunities
Process & Procedures Continue documentation of procedures & processes
Analyze & document procedures & processes Process & Procedure manual for HR/Risk
Performance
Customize rating forms for departments that need customization
Enhance some forms with customization More meaningful evaluations forms.
Compliance paperwork for various healthcare laws
Become compliant with all associated paperwork.
Over 20 healthcare compliance notices that must be given to new and current employees
Ensure all paperwork is available electronically or manually for all employees
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Account Account FY20/21 FY21/22 FY22/23 FY23/24 FY23/24 FY24/25
Number Description Actual Actual Actual Budget Estimated Proposed
Salaries/Benefits4010Salaries 159,539 171,924 196,355 217,664 220,992 229,385 11,721 5.38%4310 Health Insurance 18,367 19,117 20,392 21,682 20,564 32,758 11,076 51.08%4320 Dental Insurance 850 887 895 998 1,146 1,209 211 21.14%4330 Life Insurance 81 114 145 166 101 102 (64) -38.55%4340 Vision Insurance 154 169 168 176 171 195 19 10.80%4410 FICA Medicare 11,674 12,580 14,441 16,651 16,323 17,548 897 5.39%4420 IMRF Retirement 19,528 20,098 20,235 21,287 20,769 21,998 711 3.34%TOTAL SALARIES/BENEFITS 210,193 224,889 252,631 278,624 280,066 303,195 24,571 8.82%Contractual Services5110Contractual 21,930 35,624 22,013 51,500 43,589 35,000 (16,500) -32.04%5410 Dues 219 449 1,017 1,310 794 1,310 - 0.00%5420 Travel Expense - 297 - 2,500 - 2,500 - 0.00%5430 Training 2,583 995 229 7,000 - 7,000 - 0.00%TOTAL CONTRACTUAL SERVICES 24,732 37,365 23,259 62,310 44,383 45,810 (16,500) -26.48%Supplies6210 Office Supplies 52 695 343 250 245 250 - 0.00%TOTAL SUPPLIES 52 695 343 250 245 250 - 0.00%Other - #DIV/0!9922 Purchase of Services - Information Tech 10,150 10,884 18,111 21,898 21,898 26,052 4,154 18.97%TOTAL OTHER 10,150 10,884 18,111 21,898 21,898 26,052 4,154 18.97%TOTAL HUMAN RESOURCES 245,127 273,833 294,344 363,082 346,592 375,307 12,225 3.37%
Human Resources - Fund Summary (Fund 100, Department 05)
Variance
($)
Variance
(%)
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Fiscal Year 2024/2025 Annual Budget
Economic
Development
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Economic Development – Overview
The Department of Economic Development Budget contains personnel and operational functions related to the provision of economic development services in the City. Before FY18/19, costs related to economic development activities and personnel were accounted for in the General Administration and Community Development Budgets. With a growing emphasis on economic development activities, a separate budget fund was established to account for expenditures. The Economic Development Department is the first point of contact with potential businesses, citizens, and elected officials regarding business inquiries and potential new business opportunities. The department is responsible for effectuating orderly economic growth of the City and attracting, retaining, and serving businesses and residents in the community.
PRIMARY GOALS AND OBJECTIVES
• Cultivate and develop continual relationships: with real estate brokers, current and prospective businesses, retailers, manufacturers, developers, attorneys, architects, engineers, etc.;
• Maintain contact with retailers, developers, manufacturers, and prospective business owners regularly to assist in workforce and space needs and location preferences;
• Promote City successes through social media, marketing and promotion, including businesses expanding, new businesses, and events, to keep residents and business owners informed;
• Maintain a list of available properties, including downtown and Richmond Road, along with demographics, socioeconomic and related data and in a format that provides quick access to all inquiries on the City and ThinkMcHenry websites;
• Maintain contact with Nicor and ComEd executive staff as it relates to development and business assistance;
• Work with the Community Development Department (zoning, subdivision, and coordination of development) to facilitate business retention, attraction and expansion;
• Facilitate Business Retention Visits with McHenry County Economic Development Corporation (MCEDC), State Department of Commerce and Economic Opportunity (DCEO), McHenry County Workforce Network, and the Small Business Development Center (SBDC) to provide assistance with issues facing companies in today’s business climate and to prevent companies from closing or relocating to a new community;
• Maintain a list of City manufacturers which includes contacts, business type, space, employee count, and other demographics for ease of reporting and coordination with partner agencies in the county and state;
• Maintain a comprehensive list of all businesses in the City to ensure prompt and accurate information sharing;
• Work with the Department of Commerce and Economic Opportunity (DCEO); McHenry County Economic Development Corporation (MCEDC); Intersect Illinois; McHenry Area Chamber of Commerce; Small Business Development Center (SBDC) and other economic partners to provide business assistance, site selection, expansion, and retention;
• Continue multi-faceted efforts to retain existing businesses and attract new businesses to the City.
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Economic Development – Organizational Chart
Economic Development
Director
Doug Martin
Economic Development
Coordinator
Dorothy Wolf
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Economic Development – FY23/24 Accomplishments
• Worked cooperatively with key property owners and McHenry Area Chamber of Commerce, downtown business owners, and other relevant organizations and parties in seeking additional ways to revitalize downtown, working more closely with businesses with the goal being to attract additional investment in the downtown area, retain existing businesses, promote investment in older properties and assist smaller businesses struggling to keep doors open;
• Promoted business growth in all geographic areas of the City, on the City’s major retail corridors, downtown, Illinois Route 120, Illinois Route 31, and in the City’s business parks;
• Nominated Superior Felt and Filtration, Rock Solid Builders and Heartland as MCEDC Business Champions for our region – both Rock Solid Builders and Heartland won in their respective categories;
• Worked with McHenry County College/Small Business Development Center (SBDC) on business attraction and retention, employment needs, and collaboration for business development of the McHenry Riverwalk Shoppes;
• Continued to serve on the Manufacturing Pathways Consortium and make valuable business connections at the County and MCC Manufacturing events;
• Represented the City attending McHenry Area Chamber Business Mixers, Multi-Chamber Mixers; Ribbon Cuttings and Grand Openings for new and expanding businesses;
• Continued to serve as a member of the McHenry County Public Transit Access Committee;
• Served as a board member of the McHenry Area Chamber of Commerce;
• Attended McHenry County Workforce Network Meetings, serving as a board member for the City, and collaborating with other municipalities in the County in a concerted effort to assist and meet the needs of our primary employers;
• Assisted in the formation of the McHenry Riverwalk Shoppes by serving on the founding committee, coordinating efforts for mutual agreements, and assisting shop owners in relocating from the shops to storefronts in the City. Four of the 2023 shops have already acquired locations. Three more were not quite ready but are committed to opening stores in the City of McHenry possibly next year;
• Worked cooperatively with Naturally McHenry County in promotional marketing and social media for the City for tourism-related events and activities, often using social media influencers to obtain a further geographical reach;
• Worked cooperatively with the Parks and Recreation Department, Naturally McHenry County and the McHenry Area Chamber of Commerce on a combined Events Planning Committee for 2024;
• Collaborated with the Parks and Recreation Department and Chamber of Commerce in creating updated downtown wayfinding maps;
• Served alongside other municipalities and organizations on the MCEDC Economic Development Growth Experts (EDGE) group, working collaboratively toward growth in McHenry County;
• Coordinated business retail and industrial site visits;
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• Cooperatively worked with downtown businesses and community organizations, school districts, and service and not-for-profit agencies to promote and meet our collective goals in the City;
• Created, promoted and facilitated processing of a new Façade Grant Program encouraging the revitalization of more building facades throughout the City;
• Increased activity on social media incorporating Linked-In to facilitate sharing business recognition, milestone anniversaries, and industry trends using pictures and videos;
• Worked assertively with developers and entrepreneurs to fill vacant storefronts in all areas of the City;
• Streamlined economic development website content for ease and attraction of new business development and added a News and Events page to filter marketing promoted through Naturally McHenry County and other agencies to our ThinkMcHenry website;
• Welcomed and introduced Economic Development staff to prospective businesses by attending all new business walk-through inspections as they are scheduled, making valuable connections in drawing new business to the City;
• Attended ICSC events in Chicago and Las Vegas to maintain prior contacts and establish new business connections with national restauranteurs and retailers, developing relationships and promoting expansion to the City;
• Regularly attended Coffee with the Chief at the McHenry Library and provided updates on economic development;
• Encouraged development on the south side of the City along the Route 31 corridor, most recently working with hotels and retailers and a developer on the Pacini property at Route 31 and Bull Valley Rd;
• Utilized CoStar to be more efficient in locating properties and providing information to prospective retailers and other businesses;
• Worked with several entities on attracting the City’s first cannabis dispensary, EarthMed, to McHenry;
• Implemented Bludot, a content management system and Business Directory for the City, which will also include a unique “Shop McHenry” program and app that rewards residents when they shop at businesses in the City limits;
• Implemented Alpha Map, a GIS based program which assists in locating new businesses and obtaining demographic, socio-economic and traffic information on properties.
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Economic Development – FY24/25 Goals & Objectives
• Work cooperatively with key property owners and the McHenry Area Chamber of Commerce, downtown business owners, and other relevant organizations and parties in seeking additional ways to revitalize downtown, working more closely with businesses with the goal being to attract additional investment in the downtown area, retain existing businesses, promote investment in older properties and assist smaller businesses struggling to keep doors open;
• Evaluate additional Tax Increment Financing (TIF) districts to support long-term growth and development.
• Promote business growth in all geographic areas of the City, on the City’s major retail corridors, downtown, Illinois Route 120, Illinois Route 31, and in the City’s business parks;
• Continue to coordinate and promote the Commercial Tenant Incentive Improvement Program;
• Continue to coordinate and promote the Façade Improvement Grant Program;
• Become fluent in the use of Bludot and Alpha Map;
• Implement “Shop McHenry” program;
• Continue to assist and be a resource to businesses as-needed;
• Continue to regularly attend Coffee with the Chief at the McHenry Library and participate as needed;
• Represent the City in attending McHenry Area Chamber Mixers, Multi-Chamber Mixers; Ribbon Cuttings and Grand Openings for New Businesses to attract new business;
• Continue to serve as a member of the McHenry County Public Transit Access Committee;
• Serve as a board member of the McHenry Area Chamber of Commerce;
• Attend McHenry County Workforce Network Meetings (serve as a board member and POPS Committee member) continuing to work together to meet the needs of all the City’s employers promoting and supporting workforce development in McHenry County;
• Coordinate site visits with existing businesses to track business retention and expansion needs;
• Be more active and present on all social media and advertising platforms: sharing business recognition milestone anniversaries, promoting businesses and events in McHenry with pictures and videos to have a competitive advantage over neighboring municipalities;
• Work assertively with developers to fill vacant storefronts in all areas of the City;
• Streamline and promote economic development website content over a wider demographic area for ease and attraction of new business development;
• Introduce economic development staff to prospective businesses by attending all new business walk-through inspections as they are scheduled;
• Attend ICSC to promote the economic advantages of the City of McHenry;
• Boost and promote development on the south side of the City;
• Continue to work on developing the northwest corner of Bull Valley Road and Illinois Route 31;
• Increase efforts in the development of R.J. Roberts property;
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• Encourage and promote the development of a hotel;
• Work assertively with the owners of McHenry Commons to redevelop the site;
• Work to bring more cannabis related businesses to the City;
• Work cooperatively with the McHenry Riverwalk Shoppes owners to locate brick-and-mortar locations for the new successful businesses to remain in McHenry after their first year, increasing our tax base and drawing more consumers to our downtown;
• Coordinate a second business symposium targeting property developers to continue developing relationships that will ultimately contribute to revitalizing vacant properties;
• Work with local businesses to promote the creation of additional murals in the City and on the Riverwalk;
• Become more active in the Manufacturing Pathways Consortium in supporting and promoting workforce development in McHenry County;
• Attract beautification and new businesses to east and west sides of City along Illinois Route 120.
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Economic Development – Performance Measures FY24/25 Item Goal Description FY 24/25 Proposed Outcome(s)
Work on development of
NWC of Crystal Lake Road
and Bull Valley Road
Work with broker and
property owner for this
site to find suitable
developer
Develop the site at the
NWC of Crystal Lake Road
and BVR
Begin to develop site pads
for construction at NWC of
Crystal Lake Road and Bull
Valley Road
Work to redevelop the
former Sears/Kmart
Building Site
Get site redeveloped
The building is no longer
vacant or standing, and
the site is redeveloped
Site set for redevelopment
Bring another hotel to
the City
Have a new hotel built
in the City of McHenry Hotel built or planned Hotel being constructed
Work on development of
NWC of Bull Valley Road
and Illinois Route 31
Work with developer in
constructing a planned
development at the
NWC of BVR and IL RTE
31
Redevelop site at NWC of
Bull Valley Road and
Illinois Route 31
Begin to develop site pads
for construction at NWC of
Bull Valley Road and Illinois
Route 31
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A B O Q S T U V W X
Account Account FY20/21 FY21/22 FY22/23 FY23/24 FY23/24 FY24/25
Number Description Actual Actual Actual Budget Estimated Proposed
Salaries/Benefits4010Salaries 178,709 184,779 201,788 211,901 213,434 219,317 7,416 3.50%4310 Health Insurance 36,151 37,776 40,528 43,245 35,903 42,693 (552) -1.28%4320 Dental Insurance 1,445 1,541 1,580 1,815 1,904 1,664 (151) -8.32%4330 Life Insurance 81 114 145 166 101 102 (64) -38.55%4340 Vision Insurance 151 193 191 204 185 195 (9) -4.41%4410 FICA Medicare 12,663 13,079 14,473 16,211 15,528 16,778 567 3.50%4420 IMRF Retirement 21,833 21,619 20,800 20,724 19,995 21,033 309 1.49%TOTAL SALARIES/BENEFITS 251,033 259,101 279,505 294,266 287,050 301,782 7,516 2.55%Contractual Services5110Contractual 15,419 46,143 74,689 190,000 173,184 195,000 5,000 2.63%5310 Postage & Meter - - - 25 - 25 - 0.00%5330 Printing and Publishing 672 150 160 250 122 500 250 100.00%5410 Dues 2,384 2,509 2,617 2,700 1,890 2,700 - 0.00%5420 Travel Expense - 1,101 1,409 3,500 1,602 3,800 300 8.57%5430 Training 239 1,132 2,882 2,500 2,623 3,000 500 20.00%TOTAL CONTRACTUAL SERVICES 18,714 51,035 81,757 198,975 179,421 205,025 6,050 3.04%Supplies6110 Materials and Supplies 63 74 146 100 - 100 - 0.00%6210 Office Supplies 281 174 46 150 76 300 150 100.00%TOTAL SUPPLIES 344 248 192 250 76 400 150 60.00%Other9922 Purchase of Services - Information Tech 17,231 18,478 8,743 10,571 10,571 12,577 2,006 18.98%TOTAL OTHER 17,231 18,478 8,743 10,571 10,571 12,577 2,006 18.98%TOTAL ECONOMIC DEVELOPMENT 287,322 328,862 370,197 504,062 477,118 519,784 15,722 3.12%
Economic Development - Fund Summary (Fund 100, Department 06)
Budget
Variance ($)
Budget
Variance (%)
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Fiscal Year 2024/2025 Annual Budget
Police
Commission
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Police Commission – Overview The purpose of the Police Commission is to select sworn personnel in accordance with the employment policies of the City of McHenry, as well as investigate conduct hearings regarding any sworn member of the McHenry Police Department.
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A B O Q S T U V W X
Account Account FY20/21 FY21/22 FY22/23 FY23/24 FY23/24 FY24/25
Number Description Actual Actual Actual Budget Estimated Proposed
Salaries/Benefits4220Salaries 2,475 1,350 1,350 1,350 1,350 1,350 - 0.00%4410 Social Security - Medicare 189 103 103 103 103 103 - 0.00%TOTAL SALARIES/BENEFITS 2,664 1,453 1,453 1,453 1,453 1,453 - 0.00%Contractual Services5110Contractual 3,191 5,335 3,111 6,000 6,286 6,000 - 0.00%5330 Printing and Publishing - - - - - - - #DIV/0!5410 Dues - - - 375 - 375 - 0.00%5430 Training - - - 500 - 500 - 0.00%5450 Publications - - - - - - - #DIV/0!TOTAL CONTRACTUAL SERVICES 3,191 5,335 3,111 6,875 6,286 6,875 - 0.00%Supplies6110 Materials and Supplies - - 20 - - - #DIV/0!TOTAL SUPPLIES - - 20 - - - - #DIV/0!TOTAL POLICE COMMISSION 5,855 6,788 4,584 8,328 7,739 8,328
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Police Commission - Fund Summary (Fund 100, Department 21)
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Fiscal Year 2024/2025 Annual Budget
Police
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Police - Overview
Vision Statement The McHenry Police Department will maintain the highest standards of criminal justice excellence in all aspects of policing. Through these standards the McHenry Police Department will define itself as a leader in the industry by those we serve and protect.
Mission Statement The Mission of the McHenry Police Department is to work in a true partnership with the citizens we serve, enhance the quality of life and provide excellence in public safety.
Agency Values The McHenry Police Department is charged with the responsibility to serve and protect the citizens of McHenry. Our agency values provide the foundation for our mission and guide us in our effort to meet the vision of the agency. The McHenry Police Department operates off the core values of;
Integrity, Courage, Service, Honor and Duty.
Agency Structure The McHenry Police Department is the third largest law enforcement agency in McHenry County. Organized into four main divisions of Administration, Support Services, Field Operations and Information Technologies (I.T.), the McHenry Police Department serves and protects the citizens of McHenry and all those who visit. Within each division specialty units are established to meet specific needs of the agency that support our vision and goals. The McHenry Police Department is a community-oriented organization that operates off a problem-solving philosophy. The Administration Division is comprised of the Chief of Police, Deputy Chief of Police and an administrative assistant. The Support Services Division and Field Operations Division are each headed by Division Commanders and the I.T. Division is headed by a manager. These supervisors report to the Deputy Chief of Police. The Deputy Chief of Police reports to the Chief of Police. All sections and units of the organization are structured under one of the following divisions.
Field Operations Division The Patrol Section is the largest component of the Field Operations Division and is responsible for responding to both emergency and non-emergency calls for services from the public. The Patrol Section is divided into three shifts to provide 24-hour police services. Each shift is supervised by two Sergeants. Uniformed Patrol Officers and one Community Service Officer (CSO) are responsible for partnering with the community to protect life and property and to maintain peace, order and safety. In addition, this Division handles special assignments, self-initiated activities and addresses community concerns. Additional Units within Field Operations include the Field Training Unit, Canine Unit, Truck Enforcement Unit, Bicycle Patrol Unit, Major Crash Assistance Team, Mobile Field Force Officers and Tactical Response Officers.
Support Services Division The Support Services Division is comprised of the Investigation Section, Accreditation Unit, Training Unit, Public Relations Unit, Social Services Unit, Communications Center and Planning/Research/Technical.
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• Detectives work in plainclothes and provide expertise and resources to investigate crimes that happen in McHenry. Detectives investigate crimes that are often complex and may extend over a significant period of time and geographical area. The cases are investigated until an arrest is made or there are no longer leads to pursue. Many of the investigators have received specialized training in the investigation of homicides, child abuse, sexual assaults, juvenile delinquency, crime scene processing, felony property crimes, robberies, felony crimes against persons and cybercrime.
• The Accreditation Unit is utilized to revise and draft department policy and ensure that the agency is performing its duties in a manner that is consistent with the Law Enforcement Commission on Accreditation for Law Enforcement standards.
• The Training Unit is responsible for the management of all ongoing training for police personnel. Training includes annual in-house training such as Defense Tactics and Firearms along with all external training. Each officer and civilian employee is required to receive mandated training in accordance with our departmental policy, CALEA standards and Illinois statutes. This Unit is responsible for the coordination and implementation of thousands of hours of training each year.
• The Public Relations Unit is charged with the responsibility to foster the community orientated philosophy and problem-solving practices of the McHenry Police Department. This is done through multiple educational and community events provided to our citizens by the police.
• Social Services Unit is tasked with overseeing all social service-related efforts of the police department. This includes but is not limited to referrals of community members to social service resources, providing on-scene and on-call crisis intervention serves, overseeing the department’s peer support program, providing professional and clinical consultation to department staff members and handing the department’s comfort canine.
• The Dispatch Center, named Northeast Regional Communications (NERCOM), is the final and largest component of the Support Services Division. This unit is a consolidated dispatch center that provides emergency dispatch services for sixteen (16) police, fire and EMS agencies. Although the center is owned and operated by the McHenry Police Department, a partnership through an intergovernmental agreement between the McHenry Township Fire Protection District, Harvard Police Department and Woodstock Police Department allows for joint decision making on policy development and shared financial responsibility. The center operates off a separate budget which is managed by the Chief of Police and Deputy Chief of Police. In an overview of the day-to-day operations of the center, at its optimal staffing level NERCOM is manned twenty-four hours a day, seven days a week, 365 days a year by a minimum of four telecommunicators at all times. Each telecommunicator is crossed-trained to be proficient in both police and fire/rescue disciplines of dispatching. In addition, the center provides Emergency Medical Dispatch services to all of our customers. Roles defined within the dispatch center include 911 call takers, police dispatch and fire/EMS dispatch. These defined roles allow for the center to provide services in the most efficient and effective way exceeding industry standards.
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• The Planning/Research/Technical sections coordinate the specific planning and research activities of the department, complete short- and long-term special projects, attend to critical risk management issues and research & write grant proposals.
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Police - Organizational Charts Police Overall
Chief of PoliceJohn Birk
Deputy Chief of PoliceThomas Walsh
Commander Field OperationsPaul Funk
Patrol Day ShiftSergeant Brian AaltoPatrol Day ShiftSergeant Brian McKeen
Patrol PM ShiftSergeant Brett KinneyPatrol PM ShiftSergeant Kelly Ducak
Patrol Midnight ShiftSergeant Roger HendricksonPatrol Midnight ShiftSergeant Patrick Polidori
Social Services CoordinatorJason SterwerfI.T. ManagerAaron Greve
I.T. Specialists
Commander Support ServicesNicholas Clesen
Investigations UnitSergeant Jaimie PratherTelecommunications SupervisorJennifer Synek
Records ClerksLead Telecommunicators and Telecommunicators
Accrediatation ManagerStephanie ErbPublic Affairs OfficerAshley O'Herron
FOIA OfficerRoger Pechous
Executive AssistantDebora Shuett
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Police Administration
Chief of PoliceJohn Birk
Deputy Chief of PoliceThomas Walsh
Field Operations Commander Paul Funk Support Services Commander Nicholas Clesen Information Technologies ManagerAaron Greve Social Services CoordinatorJason Sterwerf
Executive AssistantDebora Shuett
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Police - Patrol Section
Commander of Field OperationsPaul Funk
Afternoon ShiftSergeants Kelly Ducak and Brett Kinney
OfficerKatelyn LorenzOfficerJoshua Conway & K9 Eli
OfficerHenri KruegerOfficerDiana Hernandez
OfficerMatthew SzokeOfficerDaniel Lincicum
OfficerWilliam CamposOfficerGrahm McClure
OfficerChristopher CummingsOfficerMatthew Meyers
OfficerTBD
Day ShiftSergeants Brian McKeen and Brian Aalto
OfficerRobert RoskeOfficerJill Foley
OfficerJason DucakOfficerMarc Fisher
OfficerPaul PratherOfficerRyan Pardue
Community Service OfficerDavid PorterOfficerRobert Klasek
OfficerAlex LopezOfficerSamuel Shafer
OfficerTBD
Midnight ShiftSergeants Patrick Polidori and Roger Hendrickson
OfficerMichael SpohnOfficerJohn Adams
OfficerRobert BeaudoinOfficerMatthew Schmitt
OfficerAlberto MartinezOfficerKatherine Zajac
OfficerStevan BarjaktarevicOfficerTrevor Pederson
OfficerJustin McCauley
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Police – Investigations Section
Commander of Support ServicesNicholas Clesen
Investigations SergeantJaimie Prather
School Resource OfficerRichard Rewiako InvestigatorAdriana Birk
School Resource OfficerJames Harris Investigator Matthew Voelker
School Resource OfficerChristina Noyes InvestigatorRyan Ehardt
School Resource OfficerMegan Carey InvestigatorSuan Ellis
InvestigatorZachary Diebold
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Police – Support Services Division Telecommunications, Records, Community Service Officers
Commander ofSupport ServicesNicholas Clesen
TelecommunicationsCenter
Dispatch Center Supervisor Jennifer Synek
Lead TelecommunicatorsJustin Leibach and Ryan Miller
TelecommunicatorTracy McNamara TelecommunicatorHolly Neville
TelecommunicatorKelly Schmitt TelecommunicatorGrant Havens
TelecommunicatorKatherine Fitzgerald TelecommunicatorGwendolyn Allen
TelecommunicatorKaitlin Durband TelecommunicatorBridgette Veronese
TelecommunicatorTBD TelecommunicatorTBD
Lead TelecommunicatorsDexter Barrows and Kathryn Wilbur
TelecommunicatorEileen Beidelman TelecommunicatorRebecca Morrison
TelecommunicatorMichelle Zujewski TelecommunicatorPenelope Wegner
TelecommunicatorTamara Soto TelecommunicatorFarah Cvitkovic
TelecommunicatorJonathan Lechner TelecommunicatorPeter Mader
TelecommunicatorTBD TelecommunicatorTBD
Records, Community Service Officers, Public Affairs, FOIA
Records ClerkMarybeth Varvil Records ClerkDebra Shoemaker
Accreditation Manager and Training CoordinatorStephanie Erb Public Affairs Officer Ashley O'Herron
FOIA OfficerRoger Pechous
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Police – FY2023/24 Accomplishments
Personnel
Promotions
• On December 18th, 2023, Telecommunicators Ryan Miller and Kathryn Wilbur were promoted to the position of Lead Telecommunicator. Ryan has served with the police department since October 2015 and Kathryn has served with us since February 2020. The advancement of these two Telecommunicators will allow the department to have a Lead Telecommunicator on each of the dispatch center’s four work shifts.
• On January 16th, 2024, Sergeant Nicholas Clesen was promoted to the rank of Commander. Commander Clesen started his career with the department in September 2003 and prior to promotion was tasked with supervising the Investigations Unit.
• Also on January 16th, 2024, Officer Roger Hendrickson was promoted to the rank of Sergeant. Sergeant Hendrickson joined us in December 2017 and during his career was assigned to the Northern Illinois Police Alarm System (NIPAS) Emergency Services Team.
Retirements
• On January 2nd, 2024, Commander Michael Cruz retired from the police department with just over twenty years of service. During his career Mike During his time with the department Mike’s specialty assignments included Bicycle Patrol Officer, Firearms Instructor, School Resource Officer (MCHS – East Campus) and Detective. He has also held the ranks of Sergeant and retired as a Commander.
• Omar Morales retired from the department on January 3rd, 2024. He had been with the McHenry Police Department since April 12th, 2002. During his time with the department Omar’s specialty assignments included being assigned to the McHenry County Sheriff’s Office as a Narcotics Officer, a member of the department’s Street Crimes Unit, and assigned by the department as a Task Force Officer with the Department of Homeland Security.
• On January 31st, 2024, telecommunicator Patricia Garrett retired from the department. Pat served with the Mchenry Police Department since October 2016, starting as a part-time Telecommunicator, and transitioned to full-time on January 1st, 2017. Prior to joining our team, she was a Police Assistant and Dispatcher with the City of Harvard for over thirteen years. Pat also served our country for over twenty years in the United States Army.
New Hires
• On April 19th, 2023, three new police officers joined the department. Trevor Pederson and Matthew Meyers attended the basic police academy at the Suburban Law Enforcement Academy at the College of DuPage. They graduated on August 18th, 2023, and then successfully completed the department’s Field Training Program. Alex Lopez joined the department with over five years of experience with the Chicago Police Department.
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• Stevan Barjaktarevic and Justin McCauley were sworn in as new police officers on August 16th, 2023. They attended the basic police academy at the Southwest Illinois Police Academy in Belleville, Illinois, graduating on December 22nd, 2023.
• On September 25th, 2023, Jonathan Lechner started his career with the police department as a Telecommunicator. Jon is an Illinois State University graduate and served in the United States Marine Corps.
• Trinity Tonyan joined the department as a Telecommunicator on October 25th, 2023. She is a MCHS graduate and spent some time with us in the school’s internship program.
• On January 2nd, 2024, Christopher Cummings was sworn in as a new police officer. Chris started the basic police academy at Police Training Institute at the University of Illinois Urbana-Champaign.
Training
The McHenry Police Department recognizes the need to make sure all our sworn and civilian employees receive the highest level of training available. During FY 2023/24 sworn officers and civilian staff members of the McHenry Police Department participated in approximately 4,700 hours of training, both internally and externally. Training directly affects the success of service provided to the community and liability placed on the City. Some highlights were:
• Chief Birk, Deputy Chief Walsh and Sergeant Clesen attended the International Association of Chiefs of Police Conference in San Diego, California, and received world-renown training in topics that addressed contemporary or emerging issues confronting the law enforcement profession and the leaders of law enforcement agencies worldwide.
• Sergeant Polidori attended Northwestern University, School of Police Staff and Command. This extensive 10-week course provided management training by top law enforcement executives on topics including leadership, human resources, employee relations, organizational behavior, applied statistics, planning and policy development, and budgeting and resource allocation.
• Sergeants Ducak, Aalto, Kinney, and Prather all attended advanced training hosted by the FBI’s Law Enforcement Executive Development Association. The Command Leadership Institute provides real-life, contemporary, best-practice strategies and techniques in topics such as: credibility, command discipline, liability, problem employees, and leading change within an organization. Annual, Bi-Annual and Tri-Annual Training for the department includes:
• Arrest Search and Seizure law under the Fourth Amendment, Bias Based Policing (CALEA), Bloodborne Pathogens (OSHA), Civil Rights, Constitutional and Proper Use of Law Enforcement Authority, CPR/AED, Crisis Intervention Training, Critical Incident Response (CALEA), Crowd Control Response Training (CALEA), Cultural Competency, Defensive Tactics (CALEA), Emergency Medical Response, Ethics (CALEA), Firearms Qualifications, HAZMAT first responder awareness level, High Risk Traffic Stops, Human Rights, Implicit Bias, Investigations of Sexual Assault and Sexual Abuse, Law Legal Updates, Mental Health Awareness*(CALEA), Narcan, Officer Safety Techniques, Officer Wellness and Mental Health, Portable Fire Extinguisher Training, Procedural Justice, Psychology of Domestic Violence, Racial and Ethnic Sensitivity, Reporting Child Abuse and Neglect, Sexual Harassment, Standardized Field Sobriety Testing, Taser, Temporary Detention (CALEA), Trauma Informed Responses to Sexual Assault and Sexual Abuse, Use of Force.
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Sworn Officer training was conducted in:
• Law Enforcement Administration
• Canine Unit Operations
• Narcotics Investigations
• Weekly Case Law Updates
• Crime Scene Investigations
• Homicide Investigations
• Interview & Interrogations
• Special Response Teams Training
• Rapid Deployment Training
• Firearms Training
• Critical Accident Investigations
• Patrol Operations
• Arson Investigations
• State Mandated Annual Training Segments
Civilian training was conducted in:
• Dispatch Leadership Symposium
• Integrated Emergency Management Course
• Dispatch Rapid SOS Admin Training
• CIT for 911 Dispatchers
• Dispatch - IPSTA Conference
• Dispatch - Mental Health First Aid for Public Safety
• Dispatch – Text To 911
• Dispatch - LEADS 3.0 Update
• Weekly Dispatch In-House Training 1-2 hours weekly
• Dispatch CPR Training
• Dispatch Annual ICS Training
• Dispatch Annual LEADS Certification
• Dispatch – Monthly Police/Fire/EMS Scenario Based Training Modules
Calls for Service Police Calls for Service In the 2023 calendar year the McHenry Police Department handled 26,179 calls for service through dispatch and police services. The following list highlights the types and volume of specific areas of investigation by the department. These investigations resulted in over 212 felony and misdemeanor charges being filed.
Homicide 0 Sex Offenses 3 Robbery 1
Burglary 11 Theft 74 Motor Vehicle Theft 9
Weapons Offenses 0 Domestic Disturbances 398 Drug Investigations 43
Fire Investigations 12 Death Investigations 46 Burglary to Vehicle 17
Juvenile Incidents 424
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Dispatch Center Calls for Service During the 2023 calendar year, NERCOM answered approximately 44,809 Emergency 911 calls, approximately 78 text-to-9-1-1 calls for service, and approximately 77,394 non-emergency administrative calls. An additional 30,200 outgoing calls were made on the behalf of our customers for additional tasks.
The dispatch center handled the following calls for service during the 2023 calendar year:
Department Calls for Service
McHenry Police 26,179
Johnsburg Police 3,325
Marengo Police 4,174
Union Police 106
Woodstock Police 38,544
Harvard Police 10,939
Fox River Grove Police 5,032
McHenry Fire 7,587
Marengo Fire & Rescue 1,982
Union Fire 124
Woodstock Fire 5,580
Harvard Fire 1,336
Cary Fire 2,656
Nunda Fire 498
Fox River Grove Fire 763
Mutual Aid During FY 2023/24 the McHenry Police Department participated in multiple mutual aid requests. Sergeant Ducak, Detective Voelker and Officer Carey participated in eight (8) taskforce callouts through the McHenry County Major Investigation Assistance Team (MIAT), which resulted in one adult being charged with Aggravated Assault of a Peace Officer and one juvenile being charged with Aggravated Unlawful Use of a Weapon. Multiple officers from the McHenry Police Department participated in three (3) callouts through the McHenry County Major Accident Assistance Team. These officers investigated vehicle crashes that resulted in death or serious bodily injury. The McHenry Police Department has an officer assigned to the Northern Illinois Police Alarm System (NIPAS) Emergency Service Team. That officer participated in seventeen (17) callouts for incidents such as high-risk felony arrest warrants and armed/barricaded subjects.
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Public Safety Initiative During FY2023/24 the McHenry Police Department continued to take on the opioid and heroin crisis head on. Through a multi-tiered approach of solving this crisis, the McHenry Police Department has acted through enforcement efforts (arrests and drug seizures), the use of Narcan and participation in the “A Way Out Program”. During the 2023 calendar year the McHenry Police saved eleven (11) lives using Narcan and assisted eleven (11) people into the “A Way Out Program”. The department’s I.T. Division spearheaded a program and installed security cameras at the newly renovated Miller Point Park and new Tiny Shops of Riverside Drive. These cameras live-stream through the City’s existing system and can be monitored by the police department’s dispatch center. In the rare case of a crime at one these locations (ex. Vandalism), footage can be used to identify the offender(s) and hold them responsible for their actions.
Accreditation The Commission on Accreditation for Law Enforcement (CALEA) has been an ongoing partnership for the police department since 2002. The purpose of CALEA is to improve the delivery of public safety services, primarily by: maintaining a body of standards, developed by public safety practitioners, covering a wide range of up-to-date public safety initiatives; establishing and administering an accreditation process; and recognizing professional excellence.
• The continuous re-accreditation of the McHenry Police Department has proven that the agency has set and followed the following goals set by CALEA.
• Strengthen crime prevention and control capabilities;
• Formalize essential management procedures;
• Establish fair and nondiscriminatory personnel practices;
• Improve service delivery;
• Solidify interagency cooperation and coordination; and
• Increase community and staff confidence in the agency.
• Developed a comprehensive, well thought out, uniform set of written directives.
• Established a preparedness program that is ready to address natural or man-made critical incidents.
• Strengthened the agency's accountability, both within the agency and the community.
• Limited the agency's liability and risk Through our continued efforts the McHenry Police Department successful completed another annual assessment by CALEA, maintaining our accreditation. In FY 22/23 the dispatch center was recognized by The International Academies of Emergency Dispatch (IAED) as an Accredited Center of Excellence (ACE) for emergency dispatching. McHenry Police Department/NERCOM is the 307th Medical ACE in the world and only the 7th center in Illinois to reach this status. The dispatch center maintained this accreditation through FY 23/24 certifying that the center is performing at or above the established standards for the industry. Centers who earn ACE status are the embodiment of dispatch done right, and have demonstrated strong local oversight, rigorous quality processes, and a commitment to data-driven continuous improvement.
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Social Services Program The police department Social Services program provided services for 142 different cases, which was a 166% increase in case referral from 2022. The social service program has been widely utilized and accepted by the McHenry Police officers as an additional tool to use in providing resources for the community. The Social Service Coordinator is also the primary handler for the departments therapy canine, Oakley. Oakley continues his work and was deployed over 80 times in 2023. These deployments include every school in the city of McHenry, community events, partner law enforcement agency projects, hospital visits, and several nursing home outings. Oakley continued his official training in 2023 and completed his required visits to achieve AKC Therapy Dog (THD) and will complete the next level of AKC Therapy Dog Advance (THDA) which requires at least 100 deployments. In December 2023 Oakley was recertified by the Masonic Association of Service and Therapy Dogs for the 2024 year.
Community Outreach The McHenry Police Department, in an effort to accomplish the agency’s mission, participates in many community outreach events each year. Below highlights some of the more notable events that were able to occur in FY2023/24. National Night Out On August 8th, 2023 the police department hosted National Night Out at Knox Park. We were joined by the McHenry County Sheriff’s Office, Johnsburg Police Department, McHenry County Conservation District Police, and the McHenry Township Fire Protection District. National Night Out is a campaign that enhances the relationship between neighbors and law enforcement while bringing back a true sense of community. Furthermore, it provides a great opportunity to bring police and neighbors together under positive circumstances. Child Safety Seat Installations The McHenry Police Department has a team of certified car seat technicians dedicated to providing education to parents and caretakers of young children. Members of the car seat team stay certified by acquiring continued education credits and demonstrating their use of proper skills and education techniques. Technician duties include offering free inspections of child’s safety seats at both our police department and scheduled events. In 2023, the McHenry Police Department installed over 120 child seats and showed current parents and parents to be how to keep their families safe. Adopt-A-School Program In FY 2023/24, the McHenry Police Department continued the agency’s “Adopt-A-School” program. This program pairs individual officers with specific grade schools with the community to increase awareness and safety within those schools. The program entails individual Day Shift patrol officers being assigned their own specific grade school. The objective is for the officers to get to know the faculty and students at their respective school so that the police department can provide a better service. This program involves activities such as foot patrols, classroom instruction blocks, training exercises, and a community approach to solving problems within our schools. The plan is designed to further the McHenry Police Department’s mission of increasing school safety in our local schools.
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Social Media Messaging During FY2023/24, the McHenry Police Department continues its efforts to reach community members through social media. These platforms disseminate critical information and also help us show the lighter side of the department’s daily operations. Recognizing that many in and around our community utilize social media as an information source, the police department improved its efforts on Facebook and Twitter, increasing our followers from the previous year and having a reach of over 17,000 people on Facebook. Since 2009, the McHenry Police Department has been using Nixle to communicate emergency messages in real-time. The police department currently has over 21,000 subscribers to this free service. Special Olympics Illinois Special Olympics is a global organization that unleashes the human spirit through the transformative power and joy of sport, every day around the world. Through programming in sports, health, education and community building, Special Olympics is changing the lives of people with intellectual disabilities solving the global injustice, isolation, intolerance, and inactivity they face. Special Olympics Illinois provides opportunities for more than 22,000 traditional athletes, more than 20,000 Young Athletes (ages 2-7), approximately 40,000 coaches and volunteers and thousands more people statewide through 19 area programs in all 102 counties of the state. The Law Enforcement Torch Run is the single largest year-round fundraising vehicle benefiting Special Olympics Illinois. The annual intrastate relay and its various fundraising projects have two goals: to raise money and to gain awareness for the athletes who participate in Special Olympics Illinois. The Law Enforcement Torch Run has raised over $1,000,000,000 over the last 44 years while increasing awareness of Special Olympics athletes and their accomplishments. Our efforts helped raise almost $10,0000 for the athletes of Special Olympics - Illinois. Senior Citizen Dispatch Call-In Program NERCOM participates in a Senior-Citizen call-in program designed by Woodstock PD to keep daily track of those who live alone within the Woodstock community. As a result of these daily phone calls with the telecommunicators, they have established friendships with the senior citizens and again this year, volunteered during their off time to bake Christmas cookies for them and to celebrate their birthdays. Coffee with the Chief Since 2012, the police department has held an active “Coffee with the Chief” Program. Currently this program is a partnership with the McHenry Public Library. This public meeting is offered to residents of McHenry as part of the McHenry Police Department’s continued commitment in keeping our citizens and community informed about their police department. These events are opportunities for the Chief and members of the McHenry Police Department to obtain face to face feedback from our citizens. In addition, our Dispatch Center Supervisor and several Telecommunicators participated in Woodstock’s Coffee with the Chief this year as well. Our staff members were invited to discuss the
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many challenges of dispatching police and fire services for multiple agencies. The presentation and Q & A session were well-received, and we were invited to return again next year. Police Department Tours During FY2023/24 the police department was visited by several community and youth groups who wanted to learn more about the functions and staff of the department. Officers gave tours and discussed/demonstrated forensic techniques. One of the highlights was the annual visit from the students of Riverwood School. Mayor Jett discussed the role of the City Council, Deputy Clerk Johnson gave a tour of the Municipal Center and Chief Birk show the students the department and one of our squad cars. Rotary Secret Santa Program This is the McHenry Police Department’s fifth year assisting the McHenry Rotary Club with their Secret Santa Program. This program collects, wraps and distributes over 7,600 gifts for almost 2,000 children in need throughout McHenry County and then hand delivers them all. Both sworn and civilian employees of the department (and their family members) volunteered their time to sort, wrap and participate in a coordinated deliver event of these gifts.
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Police – FY2024/25 Goals & Objectives Below are the highlighted Goals and Objectives that the McHenry Police Department will focus on during the 2024/25 fiscal year.
• Continue to provide the highest level of police services to the citizens of McHenry.
• Further advancement of resources for the department’s Social Services Program.
• Continue with the department’s renovation / expansion phases to meet the department’s performance and usage needs.
• Seek and secure the highest-level training opportunities for all agency members.
• Continue and expand the department’s public relations/community involvement programs.
• Continued support for overall community school safety through the School Resource Officers (SRO) and the Adopt-A-School program.
• In partnership with District 15, launch a new drug prevention program in the junior high schools called “To Good for Drugs”.
• Continue the department’s Traffic Safety Plan in order to keep our roadways safe.
• Maintain fiscal responsibility and reduce any financial burden on the City through grant funding.
• Continue to maintain professional standards by being assessed through the Commission on Accreditation for Law Enforcement Agencies (CALEA).
• Maintain Emergency Medical Dispatch (EMD) ACE Accreditation through Priority Dispatch.
• Continue to actively partner with other organizations such as MCAT, MIAT, NIPAS and ILEAS in an effort to share police resources and reduce operational costs.
• Replace five police vehicles, all with appropriate emergency equipment.
• Replace four in-squad computers.
• Implement a new Body-Worn Camera program.
• Establish agency memberships in the newly created McHenry County Regional Training Center.
• Improve the quality of services provided to other outside police agencies.
• Strengthen our customer base through professional relationships.
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• Annual review, revision and development of department policies and operational procedures.
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Police – FY2024/25 Performance Measures Item Goal Description FY24/25 Proposed Outcome(s)
Crime Rate Actively suppress property crime and crimes against persons in order to ensure the safety of the McHenry Community and its citizens.
Did UCR reportable property crimes and crimes against person totals stay the same or see a reduction? February 15, 2025
Annual Police Budget Manage police department resources in an efficient and effective manner ensuring that community needs are met.
To complete FY 24/25 by keeping expenditure at or under approved police budget. April 30, 2025
Traffic Crash / Roadway Safety Create a safe roadway system within the City by enforcing traffic laws in order to create safe driving behavior.
To complete the 2024 calendar year with an overall reduction in traffic accidents. A reduction is traffic crashes investigated in 2024 as compared to 2023.
Accreditation
To improve the delivery of public safety services, primarily by: maintaining a body of standards, developed by public safety practitioners, covering a wide range of up-to-date public safety initiatives; establishing and administering an accreditation process; and recognizing professional excellence.
To successfully review and revise policies in accordance with new laws or practices; Complete CALEA proofs and reports as required.
1. Review and revise as needed all agency policies by January 2025. 2. Complete all required CALEA standard proofs and reports for the 2024 calendar year by February 2025.
Community Relations
Maintain a strong working relationship with the McHenry Community and its Citizens in order to maintain trust and support in our mission to serve and protect.
1. Improvements to community events such as; Child Safety Seat Installations, Coffee with the Chief, School Safety, Adopt-A-School Program, Garden Quarter Community Days, Special Olympics Illinois, safety Expos and MCPOA Events 2. Continued improvement to Public Relations and Social Media Interaction.
An increase in attendance to all community events, positive community feedback and the launch of new initiatives by April 2025.
Training Provide the highest level of professional police services with the lowest liability or risk to the City and the Citizens who we serve.
2024/25 McHenry Police Department Training Plan. Illinois Police Training Act 50/ILCS 705/7
Meet or exceed all training requirements in the calendar year 2024, established by departmental policy and Illinois State Statute.
Narcotics Enforcement Reduce the amount of opioid usage and overdoses.
Arrest / Investigation enforcement action of the illegal sale and use of opioids. Narcan deployment. Participation in the “A Way Out” Program.
Obtain a reduction in the amount of opioid (specifically heroin) overdoses and deaths in McHenry for the 2024 calendar year.
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Grants See alternative ways to fund police related projects that support the mission of the organization.
Annual review of all grant submission applied for and all grant submission awarded.
Awarded grant funding for traffic enforcement and ballistic vest purchases with a minimum of two additional grants to be applied for. Maintain state certification for Emergency Medical Dispatching Meet the standard goal of priority dispatch for certification
All telecommunicators shall hold a current EMD certification from IDPH at all times.
Measure will be evaluated continually throughout the year and produced in annual report .
Emergency Call Processing
Initially process 95% of emergency calls within 60 seconds of them being answered.
Telecommunicator shall, within 60 seconds of answering an emergency call, acquire location of incident, phone number of caller, complaint type, and create a CAD event OR complete a PSAP to PSAP transfer at least 95% of the time.
Measure will be substantiated through the use of quarterly reporting, which will culminate into an annual report.
Emergency Call Dispatching Dispatch 95% of emergency calls within 90 seconds of them being answered.
Telecommunicator group shall dispatch at least 95 % of all emergency calls within 90 seconds of them being answered.
Measure will be substantiated through the use of quarterly reporting, which will culminate into an annual report.
LEADS Hot File Entry All Criminal Hot Files will be entered without delay.
Telecommunicator shall, within 60 minutes of receiving all necessary information, complete each Criminal Hot File entry into the LEADS/NCIC database.
Measure will be based on regular auditing of the LEADS CHF records contained within the 911 center.
Non-Emergency Call processing. Initially process 95% of all non-emergency calls within 120 seconds of them being answered.
Telecommunicator shall, within 120 seconds of answering a non-emergency call, acquire location of incident, phone number of caller, complaint type, and create a CAD event OR complete a PSAP to PSAP transfer at least 95% of the time.
Measure will be substantiated through the use of quarterly reporting, which will culminate into an annual report.
Non-Emergency Call Dispatching Dispatch 95% of non- emergency calls within 150 seconds of them being answered.
Telecommunicator group shall dispatch at least 95 % of all non-emergency calls within 150 seconds of them being answered.
Measure will be substantiated through the use of quarterly reporting, which will culminate into an annual report.
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Account Account FY20/21 FY21/22 FY22/23 FY23/24 FY23/24 FY24/25
Number Description Actual Actual Actual Budget Estimated Proposed
Salaries/Benefits4010Salaries 383,114 394,570 451,844 424,455 451,413 443,198 18,743 4.42%4020 Sworn Salaries 4,903,477 5,002,324 5,261,441 5,684,302 5,665,965 5,816,698 132,396 2.33%4030 Salaries - Part Time 16,119 16,681 15,935 25,920 5,587 47,840 21,920 84.57%4050 Overtime 169 203 - 5,000 - 5,000 - 0.00%4055 Sworn Overtime 184,320 289,240 239,816 244,500 256,617 250,000 5,500 2.25%4080 Career Ladder 23,673 23,098 21,043 24,000 21,274 24,000 - 0.00%4310 Health Insurance 1,005,590 996,674 1,063,642 1,223,772 954,169 1,149,413 (74,359) -6.08%4320 Dental Insurance 37,338 39,730 40,270 47,107 43,837 48,378 1,271 2.70%4330 Life Insurance 2,107 3,004 3,905 4,731 2,885 2,907 (1,824) -38.55%4340 Vision Insurance 3,554 4,793 4,860 5,652 4,986 5,053 (599) -10.60%4410 FICA Medicare 390,083 410,608 430,791 490,226 466,699 503,885 13,659 2.79%4420 IMRF Retirement 45,319 44,240 44,997 42,659 40,734 43,570 911 2.14%4430 Contribution - Police Pension 26,150,315 655,318 621,970 671,455 669,181 710,366 38,911 5.80%4510 Uniform Allowance 31,616 34,808 38,665 48,600 41,127 54,600 6,000 12.35%TOTAL SALARIES/BENEFITS 33,176,794 7,915,291 8,239,179 8,942,379 8,624,474 9,104,908 162,529 1.82%Contractual Services5110Contractual 173,621 135,330 218,628 133,200 181,406 405,768 272,568 204.63%5310 Postage and Meter 1,696 2,595 1,391 2,000 2,800 2,000 - 0.00%5320 Telephone 29,674 12,171 12,459 33,000 35,492 40,500 7,500 22.73%5370 Repair and Maintenance 86,644 40,998 57,987 61,500 46,723 61,500 - 0.00%5410 Dues 1,513 1,509 3,071 2,500 2,654 2,500 - 0.00%5420 Travel Expense 3,852 9,622 11,296 29,200 17,731 31,200 2,000 6.85%5430 Training 27,120 42,629 44,736 92,830 76,706 105,080 12,250 13.20%5440 Tuition Reimbursements 11,250 13,090 18,791 15,000 7,853 15,000 - 0.00%5450 Publications 166 - 166 200 166 200 - 0.00%TOTAL CONTRACTUAL SERVICES 335,536 257,944 368,525 369,430 371,531 663,748 294,318 79.67%
Variance ($)
Variance
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Police Department - Fund Summary (Fund 100, Department 22)
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Account Account FY20/21 FY21/22 FY22/23 FY23/24 FY23/24 FY24/25
Number Description Actual Actual Actual Budget Estimated Proposed Variance ($)
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Police Department - Fund Summary (Fund 100, Department 22)
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Supplies6110 Materials and Supplies 21,037 21,641 19,318 25,500 25,845 26,000 500 1.96%6210 Office Supplies 12,953 17,102 20,537 21,500 18,128 20,000 (1,500) -6.98%6250 Gasoline and Oil 84,806 116,652 150,765 168,000 145,606 150,000 (18,000) -10.71%6270 Small Equipment 24,568 12,947 23,185 19,700 21,690 21,750 2,050 10.41%6310 K-9 Unit 3,198 4,527 14,164 11,150 12,605 11,150 - 0.00%6340 Forfeiture Expenses - - - - - - - #DIV/0!TOTAL SUPPLIES 146,562 172,869 227,969 245,850 223,874 228,900 (16,950) -6.89%Other7400 Bond Issuance Costs 335,432 - - - - - #DIV/0!9904 Transfer - Debt Service - 1,667,297 1,664,827 1,665,073 1,665,073 1,663,589 (1,484) -0.09%9920 Purchase of Services - Risk Management 229,083 229,083 303,597 378,487 378,487 378,487 - 0.00%9922 Purchase of Services - Information Tech 355,398 382,585 506,380 621,095 621,095 748,504 127,409 20.51%TOTAL OTHER 919,913 2,278,965 2,474,804 2,664,655 2,664,655 2,790,580 125,925 4.73%
Capital Outlay8300Capital - Equipment 9,167 39,330 243,617 27,500 3,504 82,100 54,600 198.55%8400 Capital - Vehicles - - - - - - - #DIV/0!TOTAL CAPITAL OUTLAY 9,167 39,330 243,617 27,500 3,504 82,100 54,600 198.55%TOTAL POLICE DEPARTMENT 34,587,972 10,664,399 11,554,094 12,249,814 11,888,038 12,870,236 620,422 5.06%
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Account Account FY20/21 FY21/22 FY22/23 FY23/24 FY23/24 FY24/25
Number Description Actual Actual Actual Budget Estimated Proposed
Salaries/Benefits4010Salaries 1,630,007 1,580,982 1,498,966 1,872,576 1,727,351 1,950,559 77,983 4.16%4030 Salaries - Part Time 13,220 10,520 7,750 30,000 - 30,000 - 0.00%4050 Overtime 119,484 153,627 222,346 125,000 184,641 125,000 - 0.00%4310 Health Insurance 347,313 364,402 395,932 539,040 348,589 472,727 (66,313) -12.30%4320 Dental Insurance 13,254 13,746 14,836 21,679 16,297 19,233 (2,446) -11.28%4330 Life Insurance 897 1,255 1,484 2,075 1,094 1,275 (800) -38.55%4340 Vision Insurance 1,350 1,795 1,814 2,448 1,350 2,278 (170) -6.94%4410 FICA Medicare 133,643 125,841 124,722 155,110 139,895 161,075 5,965 3.85%4420 IMRF Retirement 212,400 203,409 177,747 223,729 182,973 199,046 (24,683) -11.03%4510 Uniform Allowance 6,247 6,274 8,056 10,000 6,759 10,000 - 0.00%TOTAL SALARIES/BENEFITS 2,477,815 2,461,851 2,453,653 2,981,657 2,608,949 2,971,193 (10,464) -0.35%Contractual Services5110Contractual 10,034 11,146 23,007 10,900 17,459 14,900 4,000 36.70%5310 Postage and Meter - 52 - 50 33 50 - 0.00%5320 Telephone - - - - - - - #DIV/0!5420 Travel Expense (24) 1,451 4,306 6,850 1,690 6,850 - 0.00%5430 Training 10,216 8,249 7,333 14,990 10,805 17,990 3,000 20.01%5440 Tuition Reimbursements 1,750 1,750 - 2,500 - 2,500 - 0.00%5510 Utilities - - - 500 - 500 - 0.00%TOTAL CONTRACTUAL SERVICES 21,976 22,648 34,646 35,790 29,987 42,790 7,000 19.56%Supplies6110 Materials and Supplies 4,295 5,340 3,082 5,620 5,953 7,120 1,500 26.69%6210 Office Supplies 472 707 802 1,000 260 2,500 1,500 150.00%6270 Small Equipment - - - - - - - #DIV/0!TOTAL SUPPLIES 4,767 6,047 3,884 6,620 6,213 9,620 3,000 45.32%Other9920 Purchase of Service - Risk Management 51,132 51,132 54,711 60,182 60,182 64,997 4,815 8.00%9922 Purchase of Service - IT 37,462 38,399 67,935 72,690 72,690 76,325 3,635 5.00%TOTAL OTHER 88,594 89,531 122,646 132,872 132,872 141,322 8,450 6.36%TOTAL DISPATCH CENTER 2,593,152 2,580,077 2,614,829 3,156,939 2,778,021 3,164,925 7,986 0.25%
Variance
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Dispatch Center - Fund Summary (Fund 100, Department 23)
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Fiscal Year 2024/2025 Annual Budget
Public Works
Administration
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Public Works Administration - Overview
Public Works Departmental Mission The mission of the Public Works Department is to respond to the community needs consistent with the policies determined by City Council, to maintain a working environment built upon trust, respect and citizen involvement, and to achieve the City's goal of being responsive to resident needs and focusing on customer service. The Department consists of four operating sections that provide services to the citizens of our community. These sections include Administration, Street/Utility Division, Water Division, and Wastewater Division. In spring of 2020, the Public Works Department was reorganized to consolidate duties, reduce management personnel costs, and create opportunities for cross training between divisions. Maintenance operations are now divided into two groups: Field Operations, which includes the Street and Utility Divisions, and Treatment Operations, which includes the Water and Wastewater Divisions.
Public Works Administration Mission It is the purpose of the Administration Division to provide direction and administrative support to the Department of Public Works. Public Works Administration is also responsible for completing City projects for the public welfare, to the highest quality, in accordance with legal and contractual standards, and in accordance with City statutes. The Public Works Department is responsible for the management of all City Engineering and Construction Projects, Request for Proposal solicitation for Engineering and Construction projects, contract enforcement, and general technical assistance for the Public Works Department. There are several primary operating functions within the Public Works Administration Division:
• To coordinate with the Mayor, City Council and City Administrator to ensure proper execution of the City’s policies and departmental programs.
• To provide “in-house” engineering services for a number of City projects, to perform plan review for development and utility projects, and to perform project management services for the City’s contracted engineering services and publicly bid capital construction projects.
• To provide administration, personnel management, asset management, departmental strategic planning, financial management, and capital improvement program planning/implementation for a Public Works Department responsible for all municipally owned and operated public infrastructure within the corporate limits of the City of McHenry. The Public Works Administration Division includes the Director of Public Works Steve Wirch, Staff Engineer Greg Gruen, and Administrative Analyst Elizabeth Roth.
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Public Works Administration – Organizational Chart
Public Works
Director
Steve Wirch
Treatment
Operations Manager
Russell Ruzicka
Wastewater
Superintendent
Russell Adams
Water ROIC
Operator
Bryan Scheel
Street/Utilities
Superintendent
Doug Mace
Field Supervisor
Mike Lange
Field Supervisor &
Arborist
Mike Harper
Staff Engineer
Greg Gruen
Administrative
Analyst
Elizabeth Roth
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Public Works Administration – FY23/24 Accomplishments
• Administration and oversight of Refuse Collection Contract.
• Awarded “Tree City USA” for the 28th consecutive year.
• Successful completion of FY23/24 Road Resurfacing Program which included over 6 miles of resurfacing.
• Year 2 implementation of the 20-year Community Investment Plan which was funded with base fees implemented in January of 2022.
• Consultant selection, project startup, project management and coordination with all City Departments for the design of Riverside Drive Streetscape Improvements.
• Project management for the completion of the North Riverside Drive Parking Lot Reconstruction.
• “In-House” plan and contract document preparation, public bidding, and project management for the resurfacing of parking lots at Petersen Park.
• Ongoing project management for the construction of the South Main Street Parking Lot Rehabilitation.
• Ongoing project management and coordination of design services for utility relocation associated with the future reconstruction of Illinois Route 31.
• Ongoing project management for the Bull Valley Road Surface Transportation Program (STP).
• Project management for the completion of the Green Street STP resurfacing project.
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• Ongoing project management for the Barreville Road STP project selected in the Spring 2022 Council of Mayors call for projects.
• Ongoing project management and “in-house” engineering design for the Illinois Department of Natural Resources $150,000 grant funding for the City Boat Launch Parking Lot Paving Project.
• Successful award of the Illinois Transportation Enhancement Program for Illinois Route 31 sidewalks and street lighting.
• Ongoing project management for the Oakwood Drive bridge rehabilitation.
• Successful completion and/or award of grants totaling $6,556,000 over the last 4 years for the following projects: Green Street-STP (2023) $919,000; Bull Valley Road-STP (2024) $262,000; Barreville Road (2027) $709,000; IDNR Boat Launch Paving (2024) $150,000; Oakwood Drive Bridge (2026) $631,000; Bull Valley Road Bridge (2028) $1,368,000; Route 31 Sidewalk & Lighting ITEP (2028) $2,517,000
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Public Works Administration – FY24/25 Goals & Objectives
• Provide effective communication with the City residents about the various Public Works projects, programs, and services.
• Ongoing management of the City’s refuse collection contract, leaf pickup, yard waste, and e-waste/Christmas lights recycling programs.
• Provide responsible financial management while maintaining existing Public Works services.
• Continue electronic archiving efforts to fully digitize existing paper records into a searchable electronic record.
• Continued implementation of an annual road resurfacing program of more than $2.0 million including successful management and completion of a $2.8 million program in 2024.
• Year 3 implementation of the 20-year Community Investment Plan adopted by City Council in January of 2022.
• Successful project management for construction of the Bull Valley Road STP project.
• Ongoing project management with the Village of Prairie Grove for the Barreville Road STP Project.
• Completion of Phase II Engineering and project management for the Oakwood Drive Bridge Project.
• Project management for ongoing design projects, including Venice Avenue Reconstruction and Water Tower #4 painting.
• Project management, coordination with City Departments, and final plan delivery for the Riverside Drive Streetscape Improvements Project.
• Project management for the design and construction of the South Main Steet Parking Lot Construction.
• Ongoing project management and securing of easements for the design of the Mill Street and Richmond Road Water Main Replacement projects (FY22/23 Water Main Replacement Program).
• Continued project management of design services for utility relocation associated with the future reconstruction of Illinois Route 31.
• Continued implementation and maintenance of OHSA Safety Programs & Policies for all Local 150 and Public Works staff.
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Public Works Administration – FY24/25 Performance Measures
Performance Item Performance Goal Performance Measure FY24/25 Proposed Outcome(s)
Capital Improvement Program (CIP) Develop an updated CIP and transmit to Finance and Administration Department
Was the CIP updated and transmitted to the Finance and Administration Department by the due date? All deadlines are met
Annual Budget Develop and present an operating budget to the Finance and Administration Department
Was the operating budget transmitted to the Finance and Administration Department by the due date? All deadlines are met
Resident Complaints/Inquires Respond to a resident complaint or inquiry within one working day from receipt % of time that Public Works Department staff responds within one day
Respond to resident complaints/inquiries within one working day 100% of the time throughout the year
Request for Proposals (RFP) Development Develop all RFP’s for Engineering Services and for Construction projects for which the City performs “in house” engineering services Status of RFP’s for budgeted projects All RFP’s completed, issued, and contracts awarded for projects in current budget year
Project Management Manage City Engineering and Construction Projects and assure projects are completed on time and on budget Schedule and Budget status of City Engineering and Construction Projects All Engineering and Construction Projects completed on time and on budget
Contract Enforcement Assure that City Engineering and Construction Projects are completed in accordance with contract documents and scope of services
Quality Assurance of City Engineering and Construction Projects All contract work and scope items are completed in accordance with contract provisions
Permit Reviews Review and issue utility permit applications and assure that City infrastructure is undamaged or is fully restored upon completion of permit work Status of issued permit All issued permits are completed and closed per the terms of the original permit application. No/minimal outstanding permits.
Technical Support for Maintenance Staff Provide all requested technical support for Operations Managers, Maintenance Superintendents, and Supervisors Completion status of requests for technical assistance All requests for technical assistance are completed on “as needed” basis
Financial Management Efficient management of all operating fund accounts Final Operating Expenditures relative to budgeted operating expenditures
All operating funds are at or below the approved operating budget and/or overages are documented and justified
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A B O Q S T U V W X
Account Account FY20/21 FY21/22 FY22/23 FY23/24 FY23/24 FY24/25
Number Description Actual Actual Actual Budget Estimated Proposed
Salaries/Benefits4010Salaries 285,990 295,606 340,257 367,180 330,059 343,439 (23,741) -6.47%4050 Overtime - - - - - - - #DIV/0!4110 Salaries - PT Seasonal 389 5,704 13,173 15,000 - 10,000 (5,000) -33.33%4310 Health Insurance 24,188 22,943 21,655 22,913 20,958 31,983 9,070 39.58%4320 Dental Insurance 1,020 1,097 1,417 2,552 2,119 2,396 (156) -6.11%4330 Life Insurance 131 171 211 249 143 153 (96) -38.55%4340 Vision Insurance 151 193 191 206 168 195 (11) -5.34%4410 FICA Medicare 21,727 22,862 25,919 29,237 24,940 27,038 (2,199) -7.52%4420 IMRF Retirement 35,079 34,605 35,104 35,910 31,087 32,936 (2,974) -8.28%4510 Uniform Allowance 82 - - 500 - 500 - 0.00%TOTAL SALARIES/BENEFITS 368,757 383,181 437,927 473,747 409,474 448,640 (25,107) -5.30%Contractual Services5110Contractual 2,428 12,170 28 - 28 - - #DIV/0!5310 Postage and Meter 183 568 66 200 227 200 - 0.00%5410 Dues 1,060 866 823 1,000 823 500 (500) -50.00%5420 Travel Expense - - - 500 - 1,700 1,200 240.00%5430 Training - - 125 500 2,100 1,500 1,000 200.00%5440 Tuition Reimbursement - 1,564 3,000 3,000 - - (3,000) -100.00%TOTAL CONTRACTUAL SERVICES 3,671 15,168 4,042 5,200 3,178 3,900 (1,300) -25.00%Supplies6210 Office Supplies 600 750 508 500 518 500 - 0.00%6270 Small Equipment 147 - - 500 - - (500) -100.00%6950 Forestry 9,000 8 34 - - - - #DIV/0!TOTAL SUPPLIES 9,747 758 542 1,000 518 500 (500) -50.00%Other9920 Purchase of Service - Risk Management 13,384 13,384 17,084 20,916 20,916 20,916 - 0.00%9922 Purchase of Service - IT 27,330 29,271 31,309 37,751 37,751 44,818 7,067 18.72%TOTAL OTHER 40,714 42,655 48,393 58,667 58,667 65,734 7,067 12.05%TOTAL PUBLIC WORKS - ADMINISTRATION 422,889 441,762 490,904 538,614 471,837 518,774 (19,840) -3.68%
Variance
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Variance
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Public Works Administration - Fund Summary (Fund 100, Department 30)
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Fiscal Year 2024/2025 Annual Budget
Public Works
Street Division
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Public Works Street Division - Overview
Public Works Street Division Mission It is the mission of the Street Division to support and enhance a high quality of life for the City’s residents, businesses, and visitors by providing a well-planned, environmentally sensitive, and cost-effective infrastructure through superb customer service. In addition, the division will provide residents with a quality urban forestry program which is cost effective and acts as a responsible steward for the natural resources of the community. The functions of the Street Division include street cleaning, street maintenance, responding to all resident requests, and snow and ice removal. All City-owned vehicles and various pieces of equipment are repaired and maintained at the Public Works Facility with two full-time mechanics. The division also maintains public sidewalks and curbs. The Street Division provides residents with cost effective and quality urban forestry services and delivers responsible stewardship for the natural resources of the community. The arborist’s crews utilize professional management practices in tree planting, maintenance, and removal to improve the quality of the urban tree canopy. In summary, Street Division employees undertake the following tasks:
• Remove snow, control ice, conduct street cleaning, and perform other necessary miscellaneous repairs.
• Repair and maintenance of all City-owned vehicles and various equipment with two full-time mechanics.
• Monitoring and maintenance of City streetlights and signals by a private contractor.
• Maintenance of City streets by filling potholes and patching.
• Monitor creek levels and maintenance of channels to prevent flooding.
• Advise and consult with the Department Director regarding fleet and infrastructure needs and responses to service requests.
• Tree planting, maintenance and removal, completion of tree inventories, performance of tree surveys for insect, disease and any hazardous tree problems, administration of the City Arbor Day Program, maintenance of the City’s status in the Tree City USA and Growth Awards Program. Coordinate with other City departments, community groups and volunteers on tree related issues, and oversight of the Tree Preservation Ordinance for compliance.
• Oversight of the mowing contract for City properties.
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Public Works Street Division – Organizational Chart
Street & Utility
Superintendent
Supervisors (2)
Mike Lange &
Mike Harper (Arborist)
Maintenance
Worker IV
Esteban Ramirez
Maintenance
Worker III
Sean Johnson
Maintenance
Worker III
Todd Sasak
Maintenance
Worker III
Ryan Cheney
Maintenance
Worker III
Henry Lobermeier
Maintenance
Worker III
Tim Lechner
Maintenance
Worker III
Paul Clements
Maintenance
Worker III
Pat Maher
Maintenance
Worker II
Nate Banwart
Maintenance
Worker II
Sam Burrafato
Maintenance
Worker II
Nick Goettsche
Maintenance
Worker II
Robert Glascott
Maintenance
Worker II
Chris Sandoz
Maintenance
Worker II
Rick Leisten
Maintenance
Worker II
Clint Greve
Mechanic II
Ron Barta
Mechanic II
Jason Lamz
In May of 2020, the Public Works Department combined the Street Division and the Utility Division. Combining the two divisions into one was done to further utilize City personnel for daily operations. Street-related operations are solely funded through the General Fund while Utility-related operations are funded through both the Water/Sewer Fund and the General Fund. The hours worked and expenses for FY23/24 have been properly separated by Fund to account for the amount budgeted annually.
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Public Works Street Division - FY23/24 Accomplishments
• Maintained level of service while reducing personnel costs through an ongoing staff attrition process.
• Replaced 160 signs throughout the City through the Sign Replacement Program.
• Completed the bi-annual brush pick-up program.
• Completed ADA ramps and concrete curbs in advance of the 2024 Road Resurfacing Program.
• Removed brush and cleared the Lakeland Park Drainage Ditch of excess vegetation.
• Fleet maintenance staff performed ongoing maintenance of City-owned vehicles and equipment.
• Division staff performed ongoing right-of-way maintenance including parkway restoration, mowing, and creek cleaning.
• Staff successfully completed snow removal, ice control, and street cleaning in addition to making miscellaneous repairs.
• 300 City trees were trimmed by staff and 1,000 contracted trees were trimmed in various locations throughout City rights-of-way.
• 62 trees were removed in 2023 by City personnel and 10 trees were contracted for removal.
• 35 trees were planted throughout the city.
• Contracted for City street pavement marking program. Striping took place in various parts of town, striping stop bars, crosswalks, and longitudinal lines.
• Completion of the ADA sidewalk survey.
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Public Works Street Division – FY24/25 Goals & Objectives
• Continue to provide a quality level of service while reducing personnel costs through an ongoing staff attrition process.
• Address all snow and ice events by clearing roadways to ensure safe travel on City streets.
• Maintain the City’s fleet to ensure efficient operations and maximize fleet service life.
• Repair and maintain City streets by dedicating personnel to patch grind and pothole repair.
• Continued successful performance of mowing of the City’s rights-of-way and property in a timely fashion.
• Successfully respond to all resident requests in a timely manner.
• Continue a 5-year striping program interval for all neighborhood crosswalks and stop bars not currently on a schedule.
• Continue a 10-year Sign Replacement Program.
• Inspect and maintain the City-owned street light systems.
• Continued assistance with the preparation for Fiesta Days, 4th of July activities, and other City festivals.
• Plant five trees for the City Arbor Day celebration, ten trees within the City Park System, and 50 trees in City parkways.
• Successfully assist Developers with tree plantings in new subdivisions on an as-needed basis.
• Continue implementation of the 5-year pruning rotation in City parks and City parkways.
• Identify hazardous trees for removal and remove other trees as required.
• Continue to monitor for Emerald Ash Borer, Gypsy Moth, and Japanese Beetle.
• Manage contracted services agreements.
• Assist with the administration of Capital Improvement Projects including the 2024 Road Resurfacing Program.
• Complete the ADA sidewalk survey for IDOT ADA transition plan.
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Public Works Street Division – FY24/25 Performance Measures
Performance Item Performance Goal Performance Measure FY24/25 Proposed Outcome(s) Internal Training Provide all necessary training for all division employees each year Was all training required for the year completed? Staff is fully prepared for work. Work related injuries are minimized.
Street Sweeping Sweep 121 center lane miles per year Number of sweeping cycles completed Clean streets & well-functioning closed drainage systems
Sidewalk Maintenance Repair all uneven sidewalk panels identified through sidewalk survey Number of locations completed and outstanding locations Safer sidewalks for residents
Asphalt Maintenance Pothole and spot patching Were all necessary road repairs made? Safe roads, well maintained roads, and cost-effective roadway maintenance Road Resurfacing Program Support ADA ramp installation All ADA ramps in next year’s Road Program All ADA ramps in next year’s Road Program in advance of the bidding process. Drainage Maintenance Provide all necessary ditching and creek maintenance to prevent flooding Repairs completed and outstanding necessary repairs Well maintained creeks and drainage ways which reduce the City’s risk of flooding
ADA Sidewalk Survey Perform ADA sidewalk survey Completion ADA sidewalk survey for City sidewalks Complete IDOT ADA transition plan
Manage Woodland Areas Creek Maintenance/Controlled burns One prescribed burn/all creeks maintained Successful maintenance of the City’s natural areas/preserve creeks
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A B O Q S T U V W X
Account Account FY20/21 FY21/22 FY22/23 FY23/24 FY23/24 FY24/25
Number Description Actual Actual Actual Budget Estimated ProposedSalaries/Benefits4010Salaries 1,144,738 998,542 1,006,215 1,041,589 1,036,213 1,096,833 55,244 5.30%4050 Overtime 13,070 14,825 15,542 17,500 13,203 17,500 - 0.00%4060 Overtime - Snow Removal 96,713 45,106 54,869 72,500 45,789 72,500 - 0.00%4110 Salaries - PT Seasonal 185 8,184 13,862 15,000 18,533 15,000 - 0.00%4310 Health Insurance 312,104 307,395 335,649 331,913 346,839 360,825 28,912 8.71%4320 Dental Insurance 1,536 1,320 1,409 1,624 1,585 1,941 317 19.52%4330 Life Insurance 615 746 919 1,079 651 663 (416) -38.55%4340 Vision Insurance 134 187 216 228 210 220 (8) -3.51%4410 FICA Medicare 86,782 78,694 79,683 87,714 80,732 91,940 4,226 4.82%4420 IMRF Retirement 229,929 120,770 108,632 110,669 99,075 113,817 3,148 2.84%4510 Uniform Allowance 9,824 9,323 10,707 8,125 9,226 8,125 - 0.00%TOTAL SALARIES/BENEFITS 1,895,630 1,585,092 1,627,703 1,687,941 1,652,056 1,779,364 91,423 5.42%Contractual Services5110Contractual 207,555 173,671 156,332 245,000 182,898 319,200 74,200 30.29%5300 Contractual Street Resurfacing - - 543,322 705,000 349,045 699,770 (5,230) -0.74%5301 Contractual Street Resuracing Township - - 300,000 300,000 300,000 300,000 - 0.00%5320 Telephone 43 - - - - - - #DIV/0!5370 Repair & Maintenance 155,904 149,638 152,333 170,000 159,361 170,000 - 0.00%5430 Training Reimbursement 1,004 820 968 1,500 606 1,500 - 0.00%5440 Tuition Reimbursement 844 3,000 3,000 3,000 3,000 3,000 - 0.00%5510 Utilities - - - - - - - #DIV/0!5520 Street Lighting 320,227 264,809 283,633 290,000 290,789 290,000 - 0.00%TOTAL CONTRACTUAL SERVICES 685,577 591,938 1,439,588 1,714,500 1,285,699 1,783,470 68,970 4.02%Supplies6110 Materials & Supplies 174,534 273,606 282,201 330,000 272,682 305,000 (25,000) -7.58%6210 Office Supplies 481 495 853 500 422 500 - 0.00%6250 Gasoline & Oil 56,949 74,562 66,923 70,000 68,301 70,000 - 0.00%6270 Small Equipment 2,126 1,270 2,352 2,000 973 2,000 - 0.00%6290 Safety Equipment 636 51 1,811 1,000 750 1,000 - 0.00%6950 Forestry 8,533 146,750 143,483 170,000 142,097 155,000 (15,000) -8.82%TOTAL SUPPLIES 243,259 496,734 497,623 573,500 485,225 533,500 (40,000) -6.97%
Variance
($)
Variance
(%)
Public Works Streets - Fund Summary (Fund 100, Department 33)
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A B O Q S T U V W X
Account Account FY20/21 FY21/22 FY22/23 FY23/24 FY23/24 FY24/25
Number Description Actual Actual Actual Budget Estimated Proposed
Variance
($)
Variance
(%)
Public Works Streets - Fund Summary (Fund 100, Department 33)
40
41
42
43
44
45
46
47
48
49
50
51
52
Other9920 Purchase of Service - Risk Management 88,088 88,088 112,608 137,864 137,864 137,864 - 0.00%9922 Purchase of Service - IT 19,934 21,340 21,525 25,921 25,921 30,744 4,823 18.61%TOTAL OTHER 108,022 109,428 134,133 163,785 163,785 168,608 4,823 2.94%
Capital Outlay8300Capital - Equipment 19,108 - - - - - - #DIV/0!8400 Capital - Vehicle 18,000 - - - - - - #DIV/0!8600 Capital - Streets - 476,687 12,876 - - - - #DIV/0!TOTAL CAPITAL OUTLAY 37,108 476,687 12,876 - - - - #DIV/0!TOTAL PUBLIC WORKS - STREETS 2,969,596 3,259,879 3,711,923 4,139,726 3,586,765 4,264,942 125,216 3.02%
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Fiscal Year 2024/2025 Annual Budget
Parks and
Recreation
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Parks and Recreation - Overview
Mission It is the mission of the Parks and Recreation Department to provide planned recreation programs and maintain facilities and parks to meet the recreational and park facility needs of the public, recognizing that leisure activities, facilities, and open spaces are important to individuals, families, and community life. The Recreation Division of the Parks and Recreation Department consists of five full-time personnel. Director of Parks and Recreation Bill Hobson works alongside Athletics and Aquatics Supervisor Nicole Thompson, Recreation Supervisor Cindy Witt, Fitness Coordinator Becky Moore and Recreation Program Specialist Mannon Amelio to coordinate the various programs, events and services provided by the Department. Additionally, staff oversees the management of the McHenry Recreation Center, Petersen Beach and Merkel Aquatics Center facilities for the Department.
The Parks Division, consisting of Superintendent of Parks and Downtown Maintenance Pat Gorniak, Assistant Superintendent Jeff Friedle and six (6) full-time Parks Maintenance Workers, maintain the City’s more than 650 acres of park space, contained in thirty-eight (38) municipally owned park sites. In addition, the Parks Division is responsible for maintaining the amenities of the City’s three downtown business districts – Riverside Drive, Green Street, and Main Street.
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Parks and Recreation – Organizational Chart
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Parks and Recreation – FY23/24 Accomplishments
Recreation Center
• Recreation Center memberships continued to rebound in 2023 from the significant Covid-related losses in 2020 and 2021. Membership totals have grown to nearly 1,300. These “active members” are paying members who are in an annual contract, in good standing, and do not include employees, punch pass holders or other short-term memberships.
Special Events
• River Run is in the process of rebuilding post-covid. The Kids Fun Run, catering to children aged 5-10, was a new addition this year and received positive feedback. The event will be relocated to Petersen Park and rebranded as the Lakefront 5K and Fun Run in 2024.
• The Big Wheels Race is also gradually making a comeback, with around 40 children taking part. To boost participation, the event will be rescheduled to the first Sunday of Fiesta Days.
• The first Let’s Get Jiggy Puzzle Competition in the spring was well received.
• The Dad & Daughter Dance in February attracted a record turnout of over 500 attendees. Jersey Mike’s provided discounted food for the occasion.
• Other holiday events throughout the seasons included the Halloween Bash, Santa’s Candy Cane Hunt, Letters from Santa, and Breakfast with the Bunny.
Programs
• Sixteen sessions of the Explorers Camp (ages 4-6) took place at Knox Park over the summer. Daily activities, arts & crafts, and games were organized around different themes.
• The Summer Day Camp (ages 6-15) was highly successful at Knox Park, running for ten weeks with a full capacity of 125 campers each week.
• The fall/spring dance program saw 125 students participating, with a dance recital scheduled for May 4 at McHenry High School West Campus.
• The "Bags-to-Go" art-themed activities for toddlers continued throughout the year, offering monthly kits of activities and supplies for purchase and pickup.
• The community rooms at the McHenry Recreation Center remained a popular choice for family and business events, being rented 58 times for occasions such as birthdays, showers, seminars, meetings, and luncheons.
• Collaborative Programs with Local Businesses:
o Rock ‘n’ Kids – Children’s music programs
o Snapology of McHenry – Children’s programs, camps, & birthday parties
o Totally Cupcaked (pick-up) – Monthly cupcake club
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o The Studio – Children's art & poetry classes at the local art studio
o Young Rembrandts – Children’s art & cartooning programs and camps
o Minds in Motion – Children's STEM programs & camps
Field Trips
• 35 Adult Field Trips were organized in partnership with Crystal Lake, Cary, and Barrington Park Districts, along with Lake in the Hills Parks and Recreation Department. These trips cater to adults and seniors, with at least two to three trips offered per month. Excursions include visits to theaters, musical productions, casinos, museums, historical tours, food tours, educational trips, and lunch outings.
Athletics
• We served 1,391 local youth through our sports programs during the last year. We continue to offer between 150-180 program session of athletics per year. It accounts for an increase of over $30,000 in revenue than the previous year. Our largest user group continues to be our 2-5 year old program offerings. We have added current trends like pickleball classes to our program offerings, along with partnering with a new gym and bringing back a gymnastics program.
• Adult leagues continue to decline each year. So, we have tried to offer new leagues at different times of the year to see what works. Examples include fall adult basketball leagues, spring pickleball leagues, and a winter adult co-ed volleyball league. We will continue to market and explore running these programs while finding out what the community is looking for and what time of the year works best. We have moved to utilizing the unused fields for rentals to bring in additional revenue.
• Fall/Winter swim team had 60 swimmers enrolled. To increase enrollment, we have started offering swim lessons during the school year at the upper campus pool. We have seen an increase in our swim team enrollment already through this endeavor.
• Our McHenry Instructional Basketball league went into its 6th year of operations. We had 177 children enrolled in the league from grades 1st through 8th. The league continues to flourish and see advancement of all players with a focus on good sportsmanship.
Aquatics
• The pool had a total of 9,455 visitors. This was an increase of 2,632 more visitors than the 2022 season. The beach had a total of 2,353 visits during the 2023 operating season.
• We saw an increase in revenue by close to $30,000 from the previous summer due to a minor fee increase, increased usage, high swim lesson numbers, and addition of swim lessons during the school year.
• We serviced more than 486 children in our swim lesson program. The focus on safety around the pool and surrounding water continues to be a focal point for our program. The number is an increase of 146 kids from the previous season.
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• We continue to navigate repairs and maintenance plans for our facilities as they continue to age and become outdated. Every year we focus on replacing a little bit at a time as we know that repairs will continue to come up. This past season, we operated with our new heater installed that helped us maintain a comfortable water temp all season long.
Parks Improvements
• The defining project for the department in the past year was the complete renovation of Miller Point Park. The $2.6 million investment created a gathering point on the shores of the Fox River and Boone Creek. The park is set up to host both large and smaller events. It serves as the home for a privately owned boat and kayak rental business that the City leases to a private vendor, along with a small bar for refreshments. It is a destination location for the City of McHenry that also has become a hub for the Riverwalk.
o Nearly $600,000 in donations was received for the park improvements:
$250,000 from the Gary Lang Family for the large amphitheater
$200,000 from the R.I.S.E. Up Foundation towards site improvements
$75,000 from the Cunat Family for a lighted splash pad
$30,000 from the A.D. Johnson Family Foundation for seatwalls
$7,500 from Mel and Cynthia Locke-Jones for sod in the park
o Piers at Miller Point were also renovated as the existing had become unstable and did not accommodate larger boats very well.
o $300,000 was invested into a permanent restroom/maintenance hub facility in the park.
o City IT divisions installed numerous security cameras throughout the park.
• A driving factor in the renovation of the park was the implementation of a tiny shoppes project that was the result of a partnership between the City of McHenry, the Parks and Recreation Department, the McHenry Area Chamber of Commerce and the District 156 School District.
o Ten incubator shoppes were to be constructed in order to bring businesses to town and provide an easy start-up venture, with a goal to transition those shoppes to permanent brick and mortar businesses.
o A committee looked at many different locations and identified Miller Point Park as the optimal spot for the initiative. With an accepted park design by City Council, students at McHenry High School engineering and trades began construction of the walls for the shoppes. The “pre-fab” walls were transported by the Parks Department and stored in a barn.
o The City bid the project which included $1.0 million in improvements for the tiny shoppes, renamed as the Riverwalk Shoppes, and construction commenced in March of 2023.
o The Chamber of Commerce spearheaded construction. The community lined up with manpower and in-kind donations to the project in order to complete the shoppes. In all, the project benefited from over $800,000 of in-kind donations and volunteer hours.
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o Parks Maintenance staff played a huge role in the facilitation of the construction of the shoppes, on-site daily assisting in construction.
o The Riverwalk Shoppes opened in August of 2023 and have been extremely successful in their short time. Applications for season 2 have been submitted and decided upon for the May 3, 2024, season open.
• Another large-scale project completed in 2023 was the reroof of the Hickory Creek Horse Barn. The transition from a cedar shake roof to a metal roof will provide a safer, more weather-secure facility for the boarding of horses and the hose operation, including the storage of hay. The $350,000 investment into the property will ensure many years added to the structure and further the goal of introducing more of a public component to the use of the facility.
• A brand-new equipment shed on a poured concrete slab was constructed at the Merkel Aquatic Center. This will provide a bigger and more secure area for the storage of pool related items both in and out of season. The old shed was able to be moved and refurbished to be utilized for park program storage at Knox Park.
• One quarter acre of scrub trees and brush were cleared in Whispering Oaks Park. This provided better visibility for Fort McHenry Playground as well as for the new business, Wingstop, adjacent to the park.
• Eight raised planter beds were built by the Parks Maintenance team. The beds were placed at Petersen Farm and will serve as a community garden initiative for the City of McHenry.
• The Parks Department also spearheaded many of our downtown initiatives and projects. The most prominent of which last year was the expansion of the decorative street signs, utilizing the Site Link Poles and black surrounds of the street signage.
• Another downtown project led by the Parks Department was the paving of the parking lots in the main area of the Green Street lot on the former bank site and on the upper lot, former site of the Justen Funeral home. The lots were laid out and designed by the Public Works Department. The two departments collaborated to prepare the lots for pavement, which was partially donated.
• The Parks Department installed 320 cubic yards of mulch in playgrounds this past season.
• Lastly, security camera and hotspot points were installed at Petersen Park Beach front. The hotspots will be particularly helpful during the larger events that are hosted there.
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Parks and Recreation – FY24/25 Goals & Objectives
• Complete construction of Phase 4 of the McHenry downtown Riverwalk.
• Complete improvements to Miller Riverfront Park and boat launch, to include construction of the McHenry County Sheriff’s Marine Unit building, new public restroom facilities, and paving of the parking lot.
• Establish and execute a plan for ongoing maintenance of the City’s parks and park amenities.
• Evaluate and continue to improve key City events, including ShamRocks the Fox; collaborate closely with local user groups, service groups and businesses to increase engagement with McHenry’s fantastic public events.
• Continue to offer and improve quality recreation programming for City residents.
• Enhance Department’s sponsorship program.
• Continue to develop relationships with school districts, chamber, and various social clubs in community.
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Parks and Recreation – FY24/25 Performance Measures
Item
Goal
Description
FY 24/25 Proposed
Outcome(s)
Marketing
Measure the Department’s
marketing success and
effectiveness.
Are the Department’s
marketing efforts reaching the
intended audience and which
methods are most effective?
October 2024
Technology
Explore opportunities to
improve customer service and
department operations through
the introduction of
technological advancements.
What technology are we
utilizing and is it the most
effective tool for the specific
task? i.e. Programming
Software
December 2024
Staff Development/Retention
Invest in training, retention
methods, staff recognition and
cross training in order to
develop staff workforce and
reduce turnover/loss.
How do we improve the
performance of department
staff?
February 2025
Membership Rebuilding
Run professional Marketing
campaigns with a wider reach to
gain memberships. Continue to
reach out to potential corporate
partners.
What is the value of a
membership? Are we
continuing to offer the most
current group exercise classes?
Are we maintaining a clean
facility?
January 2025
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33
A B M O Q S T U V W X
Account Account FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 FY23/24 FY24/25
Number Description Actual Actual Actual Actual Budget Estimated Proposed
Salaries/Benefits4010Salaries 298,127 332,441 348,005 397,350 289,507 293,265 299,575 10,068 3.48%4030 Salaries - Part Time - - - - 4,080 - 4,080 - 0.00%4050 Overtime - - - - - - - - #DIV/0!4110 Salaries - Seasonal 218,220 136,723 269,981 288,241 301,000 331,044 338,000 37,000 12.29%4150 Overtime - Seasonal - - 77 - - 171 - - #DIV/0!4310 Health Insurance 53,795 55,246 57,471 63,687 32,957 31,971 32,907 (50) -0.15%4320 Dental Insurance 2,191 2,089 2,226 2,545 1,607 1,788 1,489 (118) -7.34%4330 Life Insurance 531 528 721 922 291 197 179 (112) -38.49%4340 Vision Insurance 196 234 310 362 262 248 253 (9) -3.44%4410 FICA Medicare 38,332 34,602 45,992 51,199 45,486 46,911 49,087 3,601 7.92%4420 IMRF Retirement 33,756 40,580 40,708 40,930 28,314 27,532 28,729 415 1.47%4510 Uniforms - 1,037 1,586 2,511 2,000 1,152 2,000 - 0.00%TOTAL SALARIES/BENEFITS 645,148 603,480 767,077 847,747 705,504 734,279 756,299 50,795 7.20%Contractual Services5110Contractual 127,823 40,528 128,083 157,417 106,900 147,533 151,400 44,500 41.63%5310 Postage and Meter 3,846 3,051 6,634 4,960 6,000 4,758 6,500 500 8.33%5330 Printing and Publishing 19,826 8,182 14,121 22,254 22,875 19,809 23,025 150 0.66%5370 Repair and Maintenance - - - - - - - - #DIV/0!5410 Dues 135,053 136,569 136,853 134,028 131,418 129,033 164,682 33,264 25.31%5420 Travel Expense 61 - 482 623 1,600 500 1,600 - 0.00%5430 Training 3,969 3,359 4,069 6,625 7,220 6,858 7,220 - 0.00%5440 Tuition Reimbursements - - - - - - - - #DIV/0!5450 Publications 547 373 386 437 - - - - #DIV/0!5510 Utilities 14,744 11,479 11,924 14,189 13,500 16,289 17,000 3,500 25.93%TOTAL CONTRACTUAL SERVICES 305,869 203,541 302,552 340,533 289,513 324,780 371,427 81,914 28.29%
Variance
($)
Variance
(%)
Parks and Recreation - Fund Summary (Fund 100, Department 41-44,46,47)
167
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A B M O Q S T U V W X
Account Account FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 FY23/24 FY24/25
Number Description Actual Actual Actual Actual Budget Estimated Proposed
Variance
($)
Variance
(%)
Parks and Recreation - Fund Summary (Fund 100, Department 41-44,46,47)
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
Supplies6110 Materials and Supplies 108,488 60,149 110,045 109,573 102,100 94,671 127,500 25,400 24.88%6210 Office Supplies 946 528 1,633 1,732 2,000 1,283 2,000 - 0.00%6250 Gasoline and Oil - - - - - - - - #DIV/0!6270 Small Equipment - 1,574 - 1,755 2,000 1,889 2,000 - 0.00%TOTAL SUPPLIES 109,434 62,251 111,678 113,060 106,100 97,843 131,500 25,400 23.94%Other6920 Special Events 51,526 27,151 37,516 39,437 27,000 43,983 42,500 15,500 57.41%9902 Transfer - Recreation Center 81,954 111,985 111,985 211,985 250,356 250,356 270,000 19,644 7.85%9920 Purchase of Services - Risk Management 66,973 66,973 66,973 85,604 104,804 104,804 104,804 - 0.00%9922 Purchase of Services - Information Tech 63,068 75,589 80,986 94,988 114,642 114,642 136,200 21,558 18.80%TOTAL OTHER 263,521 281,698 297,460 432,014 496,802 513,785 553,504 56,702 11.41%
Capital Outlay8300Capital Expense - Equipment 17,270 - 5,517 20,818 - 11,534 - - #DIV/0!8400 Capital Expense - Vehicles - - - - - - - - #DIV/0!8700 Capital Expense - Park Improvements - - - - - - - - #DIV/0!8800 Public Improvements 19,829 3,495 - - - - 40,000 40,000 #DIV/0!TOTAL CAPITAL OUTLAY 37,099 3,495 5,517 20,818 - 11,534 40,000 40,000 #DIV/0!TOTAL PARKS & RECREATION 1,361,071 1,154,465 1,484,284 1,754,172 1,597,919 1,682,221 1,852,730 254,811 15.95%
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35
36
A B D E F H I J K L M
Account Account FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 FY23/24 FY24/25
Number Description Actual Actual Actual Actual Budget Estimated Proposed
Salaries/Benefits4010Salaries 489,353 522,519 544,611 569,728 708,769 707,597 728,706 19,937 2.81%4050 Overtime 17,196 17,140 38,159 38,087 30,000 32,391 30,000 - 0.00%4110 Salaries - Seasonal 51,963 14,765 37,665 37,000 42,640 42,928 43,800 1,160 2.72%4150 Overtime - Seasonal 6,028 721 1,536 1,588 - 3,288 4,000 4,000 #DIV/0!4310 Health Insurance 153,718 166,418 173,978 183,340 226,568 221,251 230,348 3,780 1.67%4320 Dental Insurance 1,077 1,022 1,101 1,134 2,632 2,262 2,396 (236) -8.97%4330 Life Insurance - - - - 664 403 408 (256) -38.55%4340 Vision Insurance 59 74 109 107 238 202 110 (128) -53.78%4410 FICA Medicare 43,224 43,527 47,808 49,682 59,778 59,200 61,698 1,920 3.21%4420 IMRF Retirement 56,738 68,656 69,569 63,764 72,252 70,294 72,760 508 0.70%4510 Uniforms 3,751 3,205 2,992 3,648 4,000 1,657 4,000 - 0.00%TOTAL SALARIES/BENEFITS 823,107 838,047 917,528 948,078 1,147,541 1,141,473 1,178,226 30,685 2.67%Contractual Services5110Contractual 144,299 144,131 158,224 190,894 180,500 193,835 202,500 22,000 12.19%5310 Postage and Meter 18 18 - 15 - - - - #DIV/0!5370 Repair and Maintenance 29,128 16,227 29,807 15,078 15,000 9,119 13,000 (2,000) -13.33%5430 Training 1,347 495 1,610 - - - - - #DIV/0!5510 Utilities 9,259 12,968 11,973 12,246 12,000 10,037 12,000 - 0.00%TOTAL CONTRACTUAL SERVICES 184,051 173,839 201,614 218,233 207,500 212,991 227,500 20,000 9.64%Supplies6110 Materials and Supplies 103,827 98,068 98,646 116,491 107,000 112,623 143,000 36,000 33.64%6210 Office Supplies 150 152 59 10 - 207 - - #DIV/0!6250 Gasoline and Oil 16,247 13,874 18,043 28,830 25,000 24,608 25,000 - 0.00%6270 Small Equipment 544 11,252 12,075 426 12,000 17,169 12,000 - 0.00%TOTAL SUPPLIES 120,768 123,346 128,823 145,757 144,000 154,607 180,000 36,000 25.00%
TOTAL PARKS MAINTENANCE 1,127,926 1,135,232 1,247,965 1,312,068 1,499,041 1,509,071 1,585,726 86,685 5.78%
Parks Maintenance - Fund Summary (Fund 100, Department 45)
Variance
($)
Variance
(%)
169
Fiscal Year 2024/2025 Annual Budget
Special Revenue
Funds
170
Fiscal Year 2024/2025 Annual Budget
Tourism Fund
171
Tourism Fund – Overview The purpose of the Tourism Fund is to finance tourism-related promotions of the City of McHenry. Revenues of the Tourism Fund are derived from a 5% tax on hotel and motel room receipts. Expenditures currently include annual contributions to the Naturally McHenry County organization (formerly McHenry County Convention and Visitors Bureau); partnering with the McHenry Jaycees to fund a portion of the annual Independence Day fireworks in Petersen Park; and on the City share of festivals and special events such as Fiesta Days, ShamRocks the Fox, and Bands, Brews & BBQ. During FY23/24, the Tourism Fund paid off the loan on the acquisition of the Green Street Parking Lot.
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3233
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A B O Q S T U V W X
Account Account FY20/21 FY21/22 FY22/23 FY23/24 FY23/24 FY24/25
Number Description Actual Actual Actual Budget Estimated Proposed
228,269 129,878 140,945 161,549 161,549 168,299
3142 Taxes - Hotel/Motel 81,358 185,360 199,517 210,000 210,401 210,000 - 0.00%3210 Interest 3 3 141 3,000 - 5,000 2,000 66.67%3220 CD Interest 50 30 280 - 573 - - #DIV/0!3240 IL Funds Interest 114 81 2,984 - 5,676 - - #DIV/0!3890 Miscellaneous Income - 71,216 73,502 55,000 63,502 60,000 5,000 9.09%3911 Loan Proceeds - - - - - - - #DIV/0!
TOTAL REVENUES 81,525 256,690 276,424 268,000 280,152 275,000 7,000 2.61%
Contractual Services5110Contractual 13,696 79,403 89,600 95,000 93,654 100,000 5,000 5.26%TOTAL CONTRACTUAL SERVICES 13,696 79,403 89,600 95,000 93,654 100,000 5,000 5.26%Other7600 Loan Interest 8,235 6,453 4,006 1,750 - - (1,750) -100.00%7610 Loan Principal Payment 58,985 60,767 63,214 65,500 - - (65,500) -100.00%8100 Land Aqusition - - - - - - - #DIV/0!9901 Transfer to General Fund 99,000 99,000 99,000 99,000 99,000 111,500 12,500 12.63%TOTAL OTHER 166,220 166,220 166,220 166,250 99,000 111,500 (54,750) -32.93%
TOTAL EXPENDITURES 179,916 245,623 255,820 261,250 192,654 211,500
NET INCREASE/(DECREASE)(98,391) 11,067 20,604 6,750 87,498 63,500 129,878 140,945 161,549 168,299 249,047 231,799 Ending Fund Balance
Variance
($)
Variance
(%)
Tourism - Fund Summary (Fund 200, Department 00)
REVENUES
EXPENDITURES
Beginning Fund Balance
173
Fiscal Year 2024/2025 Annual Budget
Pageant Fund
174
Pageant Fund – Overview The purpose of the Pageant Fund is to account for revenues and expenditures used to conduct the annual Miss McHenry Pageant. The pageant, a community tradition for 60 years, is conducted annually. Female contestants between the ages of 16 and 20, living within the boundaries of the McHenry District 156 school district and having a McHenry address, are eligible to participate. Revenues are derived from entrance fees of $200 per participant, normally paid by a sponsor, and other donations. Expenditures are directly related to the holding of the pageant.
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Pageant - Fund Summary (Fund 205, Department 00)
Account Account FY20/21 FY21/22 FY22/23 FY23/24 FY23/24 FY24/25
Number Description Actual Actual Actual Budget Estimated Proposed
1,857 1,953 1,946 1,953 1,953 1,953
3210 Interest Income - - 7 - - - - #DIV/0!3890 Miscellaneous Income - - - 4,000 - 4,000 - 0.00%
TOTAL REVENUES - - 7 4,000 - 4,000 - 0.00%
Contractual Services5110Contractual - - - 1,200 - 1,500 300 25.00%5310 Postage & Meter 4 7 - - - - - #DIV/0!TOTAL CONTRACTUAL SERVICES 4 7 - 1,200 - 1,500 300 25.00%Other6940 Administrative Expenses (100) - - 2,700 - 2,500 (200) -7.41%TOTAL OTHER (100) - - 2,700 - 2,500 (200) -7.41%
TOTAL EXPENDITURES (96) 7 - 3,900 - 4,000 NET INCREASE/(DECREASE)96 (7) 7 100 - - 1,953 1,946 1,953 2,053 1,953 1,953 Ending Fund Balance
Variance
($)
Variance
(%)Beginning Fund Balance
REVENUES
EXPENDITURES
176
Fiscal Year 2024/2025 Annual Budget
Band Fund
177
Band Fund – Overview The purpose of the Band Fund is to finance and account for expenditures incurred for the provision of summer concerts by the municipal band to promote culture and recreation in McHenry. Revenues are derived through a transfer from the General Fund and expenditures are related to stipends paid to the members of the band.
178
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Account Account FY20/21 FY21/22 FY22/23 FY23/24 FY23/24 FY24/25
Number Description Actual Actual Actual Budget Estimated Proposed
12,583 24,646 13,294 11,040 11,040 10,131
3210 Interest Income - 2 27 - 15 - - #DIV/0!3220 CD Interest 5 3 27 - 20 - - #DIV/0!3975 Transfer From General Fund 12,000 - 12,000 12,000 12,000 12,000 - 0.00%
TOTAL REVENUES 12,005 5 12,054 12,000 12,035 12,000 - 0.00%
Contractual Services5110Contractual (58) 11,357 14,308 14,500 12,944 15,000 500 3.45%TOTAL CONTRACTUAL SERVICES (58) 11,357 14,308 14,500 12,944 15,000 500 3.45%Other6110 Materials & Supplies - - - - - - - #DIV/0!6940 Administrative Expenses - - - - - - - #DIV/0!TOTAL OTHER - - - - - - - #DIV/0!
TOTAL EXPENDITURES (58) 11,357 14,308 14,500 12,944 15,000 NET INCREASE/(DECREASE)12,063 (11,352) (2,254) (2,500) (909) (3,000) 24,646 13,294 11,040 8,540 10,131 7,131 Ending Fund Balance
EXPENDITURES
Variance
($)
Variance
(%)
Band - Fund Summary (Fund 210, Department 00)
Beginning Fund Balance
REVENUES
179
Fiscal Year 2024/2025 Annual Budget
Civil Defense
Fund
180
Civil Defense Fund – Overview The Civil Defense Fund accounts for the training of personnel and the purchase and maintenance of equipment needed to protect and defend the City from natural disasters or man-made environmental disasters through early warning and public notification systems. Revenues are derived from a General Fund transfer, and expenditures are as-needed.
181
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Account Account FY20/21 FY21/22 FY22/23 FY23/24 FY23/24 FY24/25
Number Description Actual Actual Actual Budget Estimated Proposed
5,836 8,640 10,091 8,148 8,148 10,274
3210 Interest Income 4 1 42 - 24 - - #DIV/0!3975 Transfer From General Fund 6,000 6,000 4,000 4,000 4,000 6,000 2,000 50.00%
TOTAL REVENUES 6,004 6,001 4,042 4,000 4,024 6,000 2,000 50.00%
5375 Repair & Maintenance 3,200 4,550 5,985 5,300 1,898 6,000 700 13.21%
TOTAL EXPENDITURES 3,200 4,550 5,985 5,300 1,898 6,000 700 13.21%NET INCREASE/(DECREASE)2,804 1,451 (1,943) (1,300) 2,126 - 8,640 10,091 8,148 6,848 10,274 10,274 Ending Fund Balance
Civil Defense - Fund Summary (Fund 220, Department 00)
Variance
($)
Variance
(%)
REVENUES
EXPENDITURES
Beginning Fund Balance
182
Fiscal Year 2024/2025 Annual Budget
Alarm Board
Fund
183
Alarm Board Fund – Overview The Alarm Board Fund is to pay for the maintenance of radios and “head-end” equipment in the municipal 911 dispatch center (NERCOM). This equipment comprises the city’s direct connect radio fire alarm monitoring network. City businesses which are required, by building code, to have a fire alarm monitoring system are required to be monitored via direct connection to NERCOM. This direct connection helps to ensure a more efficient emergency response.
184
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1920
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Account Account FY20/21 FY21/22 FY22/23 FY23/24 FY23/24 FY24/25
Number Description Actual Actual Actual Budget Estimated Proposed
725,659 870,026 985,779 1,106,887 1,106,887 1,249,668
3210 Interest Income 19 104 3,147 5,000 3,110 6,000 1,000 20.00%3240 IL Fund Interest 125 82 3,183 - 6,420 - - #DIV/0!3895 Alarm Board Revenue 218,766 221,866 229,742 225,000 230,650 225,000 - 0.00%
TOTAL REVENUES 218,910 222,052 236,072 230,000 240,180 231,000 1,000 0.43%
5110 Contractual 74,543 106,299 114,964 125,000 97,399 125,000 - 0.00%8300 Capital Expense - Equipment - - - 20,000 - - (20,000) -100.00%
TOTAL EXPENDITURES 74,543 106,299 114,964 145,000 97,399 125,000 (20,000) -13.79%NET INCREASE/(DECREASE)144,367 115,753 121,108 85,000 142,781 106,000 870,026 985,779 1,106,887 1,191,887 1,249,668 1,355,668
EXPENDITURES
Ending Fund Balance
Variance
($)
Variance
(%)
Alarm Board - Fund Summary (Fund 225, Department 00)
Beginning Fund Balance
REVENUES
185
Fiscal Year 2024/2025 Annual Budget
Audit Fund
186
Audit Fund – Overview The purpose of the Audit Fund is to account for expenses incurred to complete the annual audit of the city’s financial statements. The State of Illinois requires that the City of McHenry conducts an independent audit on an annual basis. Statutes provide authority for an entity to levy a portion of the property tax to pay for the audit. Since the authority to levy a property tax for the audit is separate from the authority to levy the corporate rate, the levy amount for audit is deposited into a separate fund and kept segregated from the General Fund receipts.
187
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Account Account FY20/21 FY21/22 FY22/23 FY23/24 FY23/24 FY24/25
Number Description Actual Actual Actual Budget Estimated Proposed
8,246 4,618 (4,198) 3,474 3,474 596
3010 Property Tax Collections 26,299 26,313 26,275 26,426 26,339 26,426 - 0.00%3210 Interest Income - - 13 - 4 - - #DIV/0!3220 CD Interest 2 1 9 - 5 - - #DIV/0!3970 Charges for Services 13,676 16,145 29,700 22,124 22,124 27,450 5,326 24.07%
TOTAL REVENUES 39,977 42,459 55,997 48,550 48,472 53,876 5,326 10.97%
5110 Contractual 43,605 51,275 51,825 50,200 51,350 53,500 3,300 6.57%
TOTAL EXPENDITURES 43,605 51,275 48,325 50,200 51,350 53,500 3,300 6.57%NET INCREASE/(DECREASE)(3,628) (8,816) 7,672 (1,650) (2,878) 376 4,618 (4,198) 3,474 1,824 596 972
EXPENDITURES
Ending Fund Balance
Variance
($)
Variance
(%)
Audit - Fund Summary (Fund 230, Department 00)
Beginning Fund Balance
REVENUES
188
Fiscal Year 2024/2025 Annual Budget
Annexation
Fund
189
Annexation Fund – Overview The Annexation Fund is a non-operating fund that is used to account for receipts from generally non-recurring revenue sources resulting from negotiated annexation agreements. Revenues include a fee assessed on gravel mining on a per ton basis; revenues from property being annexed into the City on an acreage and lot basis; and an additional per unit fee that is distributed to other taxing bodies. Expenses in the fund are related to improvements to infrastructure or municipal facilities.
190
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Account Account FY20/21 FY21/22 FY22/23 FY23/24 FY23/24 FY24/25
Number Description Actual Actual Actual Budget Estimated Proposed
982,758 1,123,041 1,263,178 1,406,727 1,406,727 1,550,874
3210 Interest Income 22 101 3,206 2,500 3,671 3,000 500 20.00%3220 CD Interest 61 36 343 - 476 - - #DIV/0!3715 Annexation Income 200 - - - - - - #DIV/0!3720 Operating Fees - Annexation - - - 50,000 - - (50,000) -100.00%3721 Operating Fees - District #15 137,424 - - - - - - #DIV/0!3722 Operating Fees - District #156 100,022 - - - - - - #DIV/0!3723 Operating Fees - Library 7,945 - - - - - - #DIV/0!3724 Operating Fees - Fire 3,770 - - - - - - #DIV/0!3745 Gravel Mining/Annexation Agreement 175,000 175,000 175,000 175,000 175,000 125,000 (50,000) -28.57%
TOTAL REVENUES 424,444 175,137 178,549 227,500 179,147 128,000 (99,500) -43.74%
6970 Distributions - Schools 237,446 - - 40,000 - - (40,000) -100.00%6980 Distributions - Library 7,945 - - 5,000 - - (5,000) -100.00%6990 Distributions - Fire 3,770 - - 5,000 - - (5,000) -100.00%9901 Transfer General Fund - - - - - - - #DIV/0!9904 Transfer to Debt Service 35,000 35,000 35,000 35,000 35,000 35,000 - 0.00%
TOTAL EXPENDITURES 284,161 35,000 35,000 85,000 35,000 35,000 (50,000) -58.82%NET INCREASE/(DECREASE)140,283 140,137 143,549 142,500 144,147 93,000 1,123,041 1,263,178 1,406,727 1,549,227 1,550,874 1,643,874
EXPENDITURES
Ending Fund Balance
Variance
($)
Variance
(%)
Annexation - Fund Summary (Fund 260, Department 00)
Beginning Fund Balance
REVENUES
191
Fiscal Year 2024/2025 Annual Budget
Motor Fuel Tax
Fund
192
Motor Fuel Tax Fund – Overview The purpose of the Motor Fuel Tax (MFT) Fund is to provide dedicated revenues from taxes on gasoline and diesel sales primarily to fund road improvements and maintenance. Motor Fuel Taxes are generated by a flat rate of cents per gallon. In 2021, the State of Illinois increased the monthly Municipal Motor Fuel Tax allotment by approximately 40%, bringing the City’s annual revenue to over $1.1 million. Beginning in FY22/23, the entirety of the Motor Fuel Tax revenue was dedicated to the Local Streets Resurfacing Program. These revenues, combined with the implementation of a Municipal Motor Fuel Sales Tax, dedication of all Township Road and Bridge Fund distributions, and the dedication of Street Division operating capital funds, have created a consistent annual program budget for the Local Streets Resurfacing Program. The Motor Fuel Tax Fund alone is budgeted for almost $1.8 million for the FY24/25 program.
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Account Account FY20/21 FY21/22 FY22/23 FY23/24 FY23/24 FY24/25
Number Description Actual Actual Actual Budget Estimated Proposed
1,441,795 2,426,895 3,080,153 2,418,598 2,418,598 1,524,570
3150 MFT Allotments from State 1,034,926 1,128,538 1,139,143 1,152,966 1,167,619 1,183,086 30,120 2.61%3155 Rebuild IL Grant 1,037,679 444,720 296,480 - - - - #DIV/0!3180 Grants - - - - - - - #DIV/0!3210 Interest Income - - - - - - - #DIV/0!3240 IL Fund Interest 2,221 2,025 55,730 60,000 73,358 60,000 - 0.00%3882 Reimbursements - Misc - - - - - - - #DIV/0!3886 Reimbursements - State 70,933 31,211 - 70,706 63,298 57,600 (13,106) -18.54%3975 Transfer from General Fund - - - - - - #DIV/0!3999 Transfer from Other Funds - - - - - - #DIV/0!
TOTAL REVENUES 2,145,759 1,606,494 1,491,353 1,283,672 1,304,275 1,300,686 17,014 1.33%
6110 Materials & Supplies 140,108 - 182 500 - 500 - 0.00%8600 Streets 590,634 340,313 932,215 2,935,706 2,198,303 1,788,000 (1,147,706) -39.09%8605 Streets - Rebuild IL Grant 30,000 528,368 1,220,511 - - - - #DIV/0!9901 Transfer to General Fund - 84,555 - - - - - #DIV/0!9904 Transfer to Debt Service 399,917 - - - - - - #DIV/0!
TOTAL EXPENDITURES 1,160,659 953,236 2,152,908 2,936,206 2,198,303 1,788,500 (1,147,706) -39.09%NET INCREASE/(DECREASE)985,100 653,258 (661,555) (1,652,534) (894,028) (487,814) 2,426,895 3,080,153 2,418,598 766,064 1,524,570 1,036,756
EXPENDITURES
Ending Fund Balance
Variance
($)
Variance
(%)
Motor Fuel Tax - Fund Summary (Fund 270, Department 00)
Beginning Fund Balance
REVENUES
194
Fiscal Year 2024/2025 Annual Budget
Local Motor Fuel Tax
Fund
195
Local Motor Fuel Tax Fund – Overview The purpose of the Local Motor Fuel Tax (MFT) Fund is to provide dedicated revenues from taxes on gasoline and diesel sales primarily to fund contracted resurfacing projects. A Municipal Retail Motor Fuel Tax in the amount of $0.03 per gallon was approved in FY 20/21 and implemented in September 2020. These revenues, combined with the state Motor Fuel Tax, dedication of all Township Road and Bridge Fund distributions, and the dedication of Street Division operating capital funds, have created a consistent annual program budget for the Local Streets Resurfacing Program. The FY24/25 Local Motor Fuel Tax Fund budget includes $380,000 in street projects.
196
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Account Account FY20/21 FY21/22 FY22/23 FY23/24 FY23/24 FY24/25
Number Description Actual Actual Actual Budget Estimated Proposed
- 203,595 52,592 117,247 117,247 218,473
3160 Municipal Retail MFT Allotment 203,595 348,997 364,598 360,000 376,158 370,000 10,000 2.78%3210 Interest Income - - 57 - 68 - - #DIV/0!
TOTAL REVENUES 203,595 348,997 364,655 360,000 376,226 370,000 10,000 2.78%
6110 Materials & Supplies - - - #DIV/0!8600 Streets - 500,000 300,000 300,000 275,000 380,000 80,000 26.67%
TOTAL EXPENDITURES - 500,000 300,000 300,000 275,000 380,000 80,000 26.67%NET INCREASE/(DECREASE)203,595 (151,003) 64,655 60,000 101,226 (10,000) 203,595 52,592 117,247 177,247 218,473 208,473 Ending Fund Balance
Local Motor Fuel Tax - Fund Summary (Fund 275, Department 00)
Variance
($)
Variance
(%)Beginning Fund Balance
REVENUES
EXPENDITURES
197
Fiscal Year 2024/2025 Annual Budget
Developer Donation
Fund
198
Developer Donation Fund – Overview The Developer Donation Fund is to account for donations collected from developers on behalf of the primary and secondary school districts, fire protection district, library district and the municipal park system. Developer Donations are collected to ensure the provision of public facilities to serve new development by requiring each new developer to pay a calculated share of the costs of such improvements as a condition of approval. By municipal ordinance, anyone applying for a building permit for a residential unit is required to pay fees for each unit constructed.
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Account Account FY20/21 FY21/22 FY22/23 FY23/24 FY23/24 FY24/25
Number Description Actual Actual Actual Budget Estimated Proposed
1,487,942 1,239,634 1,501,288 921,605 921,605 964,746
3775 Developer Donations - Schools 94,110 289,500 67,994 80,000 92,680 80,000 - 0.00%3780 Devleoper Donations - Parks 162,470 764,352 139,283 160,000 365,037 200,000 40,000 25.00%3785 Developer Donations - Library 15,664 129,584 19,224 20,000 70,844 50,000 30,000 150.00%3790 Developer Donations - Fire District 48,060 129,584 19,224 20,000 70,844 50,000 30,000 150.00%3180 Grants - - - - - 150,000 150,000 #DIV/0!3210 Interest Income 37 141 2,900 8,000 2,957 8,000 - 0.00%3220 CD Interest 193 115 1,086 - 1,491 - - #DIV/0!3240 IL Fund Interest 518 291 9,381 - 12,428 - - #DIV/0!3684 Boat Launch Revenues 38,520 43,558 44,995 40,000 53,042 50,000 10,000 25.00%3815 Donations 197,700 - - 75,000 - - #DIV/0!3845 Rental Income 38,849 19,649 36,438 35,000 40,866 40,000 5,000 14.29%3882 Reimbursements - Miscellaneous - - - - - 411,517 411,517 #DIV/0!3886 Reimbursements - State - - - - - - - #DIV/0!3890 Miscellaneous Income - 2,885 - - - - - #DIV/0!
TOTAL REVENUES 398,421 1,577,359 340,525 363,000 785,189 1,039,517 676,517 186.37%
6940 Administrative Expenses 11,805 11,325 17,064 12,500 7,772 12,500 - 0.00%6970 Distributions - Schools 94,110 289,500 67,994 80,000 92,680 80,000 - 0.00%6980 Distributions - Library 15,664 129,584 19,224 20,000 70,844 50,000 30,000 150.00%6990 Distributions - Fire 48,060 129,584 19,224 20,000 70,844 50,000 30,000 150.00%8100 Land Acquisition - - - - - - - #DIV/0!8800 Park Playground Improvements 477,090 755,712 796,702 588,459 499,908 950,517 362,058 61.53%
TOTAL EXPENDITURES 646,729 1,315,705 920,208 720,959 742,048 1,143,017 422,058 58.54%NET INCREASE/(DECREASE)(248,308) 261,654 (579,683) (357,959) 43,141 (103,500) 1,239,634 1,501,288 921,605 563,646 964,746 861,246
EXPENDITURES
Ending Fund Balance
Variance
($)
Variance
(%)
Developer Donation - Fund Summary (Fund 280, Departments 00, 41)
Beginning Fund Balance
REVENUES
200
Fiscal Year 2024/2025 Annual Budget
Tax Increment
Finance Fund
201
Tax Increment Finance Fund – Overview The Tax Increment Finance (TIF) Fund accounts for revenues and expenditures related to the city’s Downtown Tax Increment Finance District, established in 2002. The TIF District was recently extended for an additional 12 years and is now scheduled to sunset in 2037. TIF revenues are derived from the collection of property taxes each year at an increment based on the increase in the assessed valuation of properties within the area since creation of the district. Expenditures are related to the repayment of private development “extraordinary costs” per approved development agreements and for public improvements within the district that increase the value of all properties within the area. The TIF Fund is a valuable tool to continue to attract development of key sites that were identified in the initial planning stages of the TIF District, including the Central Wastewater Treatment Plant site and the Central Green Street area. The TIF Fund is also targeted to accomplish the completion of the Riverwalk and the implementation of a streetscape program.
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Account Account FY20/21 FY21/22 FY22/23 FY22/23 FY23/24 FY23/24 FY24/25
Number Description Actual Actual Budget Actual Budget Estimated Proposed
280,604 719,415 993,626 993,626 232,000 323,465 279,903
3010 Property Tax Collections 655,428 678,920 720,000 694,137 805,000 848,809 840,000 35,000 4.86%3180 Grants - - 200,000 178,164 200,000 8,947 - (200,000) -100.00%3210 Interest Income 26 121 - 2,621 3,000 3,000 3,000 - #DIV/0!3815 Donations - - - 20,000 450,000 450,000 - (450,000) #DIV/0!3890 Miscellaneous Income 62,860 55,000 355,000 65,388 55,000 55,000 55,000 - 0.00%
TOTAL REVENUES 718,314 734,041 1,275,000 960,310 1,513,000 1,365,756 898,000 (615,000) -48.24%
5110 Contractual Services 7,860 9,525 - 108,966 10,000 3,505 10,000 - 0.00%6940 Administrative Expenses 10,237 1,300 50,000 2,396 10,000 4,278 10,000 - 0.00%8900 Public Improvements 37,571 224,170 2,145,000 1,384,839 1,180,000 1,180,000 1,545,586 365,586 30.98%9901 Transfer to General Fund 2,500 2,500 2,500 2,500 2,500 2,500 2,500 - 0.00%9904 Transfer to Debt Service 221,335 222,335 223,235 223,235 219,035 219,035 224,730 5,695 2.60%
TOTAL EXPENDITURES 279,503 459,830 2,420,735 1,721,936 1,421,535 1,409,318 1,792,816 371,281 26.12%NET INCREASE/(DECREASE)438,811 274,211 (1,145,735) (761,626) 91,465 (43,562) (894,816) 719,415 993,626 (152,109) 232,000 323,465 279,903 (614,913)
EXPENDITURES
Ending Fund Balance
Variance
($)
Variance
(%)
Tax Increment Finance - Fund Summary (Fund 290, Department 00)
Beginning Fund Balance
REVENUES
203
Fiscal Year 2024/2025 Annual Budget
Capital Projects &
Debt Service Funds
204
Fiscal Year 2024/2025 Annual Budget
Debt Service
Fund
205
Debt Service Fund – Overview The Debt Service Fund accounts for the bonded indebtedness incurred by the City’s General Fund, including bond and interest payments.
206
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Account Account FY20/21 FY21/22 FY22/23 FY23/24 FY23/24 FY24/25
Number Description Actual Actual Actual Budget Estimated Proposed
4,962 (226) 5,568 7,607 7,607 10,314
3210 Interest Income 10 4 1,106 - 990 - - #DIV/0!3220 CD Interest 49 29 277 - 250 - - #DIV/0!3910 Bond Proceeds - - - - - - - #DIV/0!3915 Bond Interest Rebate 3,688 3,692 - - - - - #DIV/0!3966 Premium on Refunding - - - - - - - #DIV/0!3969 TIF Fund Transfer 221,335 222,335 223,235 219,035 219,035 224,730 5,695 2.60%3971 Transfer from Annexation Fund 35,000 35,000 35,000 35,000 35,000 35,000 - 0.00%3972 Transfer from Recreation Center Fund 130,656 133,956 132,156 130,356 130,356 133,511 3,155 2.42%3975 Transfer from General Fund 182,642 1,850,272 1,850,765 1,853,842 1,853,842 1,851,523 (2,319) -0.13%3978 Transfer from Water/Sewer Fund 110,627 108,763 110,269 111,707 111,707 111,283 (424) -0.38%3986 Transfer from MFT Fund 399,917 - - - - - - #DIV/0!
TOTAL REVENUES 1,083,924 2,354,051 2,352,808 2,349,940 2,351,180 2,356,047 6,107 0.26%
7100 Bond Principal 950,000 1,605,000 1,675,000 1,695,000 1,695,000 1,725,000 30,000 1.77%7200 Bond Interest 137,419 741,326 672,471 650,942 650,942 627,049 (23,893) -3.67%7300 Fees - Paying Agent 1,693 1,931 3,298 4,000 2,531 4,000 - 0.00%7500 Bond Refunding - - - - - - - #DIV/0!
TOTAL EXPENDITURES 1,089,112 2,348,257 2,350,769 2,349,942 2,348,473 2,356,049 6,107 0.26%NET INCREASE/(DECREASE)(5,188) 5,794 2,039 (2) 2,707 (2) (226) 5,568 7,607 7,605 10,314 10,312
EXPENDITURES
Ending Fund Balance
Variance
($)
Variance
(%)
Debt Service - Fund Summary (Fund 300, Department 00)
Beginning Fund Balance
REVENUES
207
Fiscal Year 2024/2025 Annual Budget
Recreation Center
Fund
208
Recreation Center Fund – Overview In March 1999, the City Council passed a resolution stating that 50% of developer donation fees for parks were to be set aside for the construction of a recreation center. Consequently, the Recreation Center Fund was created to account for these donations. In addition, any future funding sources identified for the construction of the facility would be deposited in this fund and, further, the expenditure of funds for the construction of a recreation facility would be taken from this fund. In 2013 and 2014, City Council undertook a process to evaluate the feasibility of various options for recreation facilities, including the development of a family aquatics facility and/or a recreation center. Ultimately, it was determined that a recreation center should be the primary focus. Construction began in 2015, and the McHenry Recreation Center opened in February 2016. Construction was financed through a combination of cash payments from the Recreation Center Fund and the issuance of debt. This was done to ensure that funding remained in the Recreation Center Fund to cover any operating shortfalls, to serve as capital improvement funding for facility needs, or seed money for future expansions of recreation facilities.
The McHenry Recreation Center was negatively impacted by the COVID-19 pandemic; closures and restrictions led to a significant reduction in membership. Reserve funds were depleted as a result of reduced revenues. Staff has been engaged in a sustained effort to attract new members, and Recreation Center membership continues to increase. However, the recovery continues, since revenues are still not sufficient to fund day-to-day operations.
209
Recreation Center Fund – FY23/24 Accomplishments
Recreation Center
• Group fitness class attendance has maintained a consistent number of class participants per week. Average class numbers per week from May 2022 – April 2023 was around 700 participants. Since May 2023 – mid March 2024 numbers have increased to 720 – 740 participants per week with 70% of classes at full capacity.
• Group Fitness attendance from May 2023 – March 2024 – 26,770 visits
• Our personal trainers are currently seeing around 35 clients per week, with 4 groups of partner trainings and 2 monthly PT members.
• We offer 55 classes per week in categories ranging from HIIT, Strength, Mind/Body, Active Adults, Barre, TRX, Cycle, Kickboxing, Dance, Pilates and Kettlebell. Cardio Boxing was added in the fall of 2023 as a specialized program which runs 8 weeks per session and is a separate paid program to our group fitness schedule.
• Our group fitness staff heads up 4 holiday bootcamps per year for our Rec Center members. The 1.5-hour bootcamps are well attended by members and non-members with around 50 people.
• The last Friday of every month we host a potluck for our senior group x members which gives them the opportunity to have lunch with their friends and provides a fun social atmosphere after their workout.
• The Recreation Center serves as a hub for much more than simply a fitness center. The facility houses many of our classes and workshops. It also is a location that is rented out for any number of occasions to our community.
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Recreation Center Fund – FY24/25 Goals & Objectives
• Create a collaborative marketing plan for programs, events and facilities; whereby increasing community reach, efficiency, return on investment.
• Increase visitation at Recreation Center, thereby increasing revenue. This shall include quarterly free community fitness days.
• Research trends, explore community partnerships and evaluate existing programs in an effort to consistently develop new programs and special events.
• Enhance Department’s sponsorship program and apply it where applicable at the Recreation Center.
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Recreation Center Fund – FY24/25 Performance Measures
Item
Goal
Description
FY 24/25 Proposed
Outcome(s)
Membership Retention
To maintain a 60% fitness
membership retention rate for
the facility.
Through outreach to members
and continual update of
offerings, the goal is to keep
members engaged and
interested.
Membership loss is minimized
and client base remains fairly
constant.
Sponsorship
Further develop and apply a
sponsorship program to the
Recreation Center.
In identifying a comprehensive
sponsorship program, additional
community connections will be
created as well introducing
additional revenue
Fostering community
partnerships and adding a
revenue stream to the facility
Membership Rebuilding
Utilization of active marketing
campaigns at key times of the
year as well as free fitness days
to increase the facility’s
community exposure.
What is the value of a
membership? Are we
continuing to offer the most
current group exercise classes?
Are we maintaining a clean
facility?
Continued rebuilding of
membership base dramatically
impacted by Covid-19
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A B O Q S T U V W X
Account Account FY20/21 FY21/22 FY22/23 FY23/24 FY23/24 FY24/25
Number Description Actual Actual Actual Budget Estimated Proposed
420,052 236,869 99,076 112,125 112,125 100,878
3210 Interest Income 61 - - - - - - #DIV/0!3220 CD Interest 1,137 678 6,411 700 5,000 3,000 2,300 328.57%3240 IL Fund Interest 108 80 2,910 5,000 3,000 3,000 (2,000) -40.00%3632 Concessions - 568 2,996 3,000 3,409 3,500 500 16.67%3641 Babysitting 6,086 12,748 10,505 10,000 13,175 13,000 3,000 30.00%3642 Recreation Center Room Rentals 4,298 13,413 22,800 18,000 12,172 12,000 (6,000) -33.33%3643 Birthday Parties - - - - - - - #DIV/0!3644 Sponsorship/Advertisement 100 100 - 100 - - (100) -100.00%3645 Annual Memberships 287,751 352,774 412,859 420,000 447,116 460,000 40,000 9.52%3646 Short-Term Memberships 4,252 8,469 8,646 10,000 11,625 11,000 1,000 10.00%3647 Daily Admissions 768 1,842 4,318 3,000 2,480 3,000 - 0.00%3648 Punch Passes 5,391 10,626 11,166 10,000 12,412 12,000 2,000 20.00%3649 Recreation Center Misc. Fees 2,345 1,959 1,459 2,000 1,755 2,000 - 0.00%3650 Fitness Classes 2,290 1,581 565 1,000 7,237 7,000 6,000 600.00%3651 Small Group Personal Training 15 - - - - - - #DIV/0!3652 Personal Training 28,823 34,240 55,497 50,000 55,777 55,000 5,000 10.00%3780 Transfer from Developer Donation Fund - - - - - - - #DIV/0!3882 Miscellaneous Reimbursement - - - - - - - #DIV/0!3910 Bond Proceeds - - - - - - - #DIV/0!3965 Premium on Bonds Payable - - - - - - - #DIV/0!3975 Transfer - General Fund 111,985 111,985 211,985 250,356 250,356 270,000 19,644 7.85%
TOTAL REVENUES 455,410 551,063 752,117 783,156 825,514 854,500 71,344 9.11%
Variance
($)
Variance
(%)
Recreation Center - Fund Summary (Fund 400, Departments 00 & 40 Combined)
Beginning Fund Balance
REVENUES
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Account Account FY20/21 FY21/22 FY22/23 FY23/24 FY23/24 FY24/25
Number Description Actual Actual Actual Budget Estimated Proposed
Variance
($)
Variance
(%)
Recreation Center - Fund Summary (Fund 400, Departments 00 & 40 Combined)
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35
36
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39
40
41
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Salaries/Benefits4010Salaries 28,996 30,276 52,353 60,678 57,891 59,882 (796) -1.31%4050 Overtime - - - - - - - #DIV/0!4110 Salaries - Part- Time - - - - - - - #DIV/0!4130 Salaries - Front Desk Attendants 91,816 110,092 122,222 140,000 127,891 148,640 8,640 6.17%4135 Salaries - Fitness Coordinator 72,640 63,154 46,459 50,820 49,188 52,345 1,525 3.00%4140 Salaries - Childcare Attendants 16,606 19,917 24,711 21,500 27,456 30,000 8,500 39.53%4145 Salaries - Rental Attendants - 45 368 250 145 - (250) -100.00%4160 Salaries - Personal Trainers 17,502 23,555 37,587 38,000 36,685 30,000 (8,000) -21.05%4165 Salaries - Orientation/Consultants 468 660 876 1,000 759 800 (200) -20.00%4170 Salaries - Group Exercise Instructors 56,215 58,294 58,606 66,360 61,061 61,000 (5,360) -8.08%4175 Salaries - Fitness Program Instructors 21 601 263 700 854 500 (200) -28.57%4180 Salaries - Facility Attendants 29,550 38,546 39,920 41,000 44,442 49,500 8,500 20.73%4310 Health/Vision 28,018 23,515 12,753 5,583 36,514 39,879 34,296 614.29%4320 Dental Insurance 1,020 867 435 203 1,334 1,384 1,181 581.77%4330 Life Insurance - - - 125 55 77 (48) -38.40%4340 Insurance Premiums Vision 74 86 49 29 130 138 109 375.86%4410 FICA Medicare 23,294 26,079 29,123 32,154 30,628 33,099 945 2.94%4420 IMRF Retirement 12,413 11,518 10,654 10,904 11,756 14,119 3,215 29.48%4510 Uniform Allowance - - 1,578 1,000 810 1,000 - 0.00%TOTAL SALARIES/BENEFITS 378,633 407,205 437,957 470,306 487,599 522,363 52,057 11.07%Contractual Services5110Contractual 9,769 11,180 16,854 16,700 17,200 17,000 300 1.80%5200 Contract Custodial - - - - - - - #DIV/0!5210 Marketing & Advertising 161 411 3,111 4,500 3,825 4,500 - 0.00%5215 Retention/Promotion - - 741 1,000 - 1,000 - 0.00%5225 Room Contractor - 960 1,455 - 1,050 - - #DIV/0!5320 Telephone - - - - - - - #DIV/0!5321 Cable/TV 3,446 4,102 3,958 3,800 4,109 4,200 400 10.53%5375 Repair & Maintenance - Equipment 10,639 12,109 16,291 11,500 9,548 9,000 (2,500) -21.74%5430 Training 574 757 704 500 717 500 - 0.00%5510 Utilities 24,333 31,735 19,348 28,000 32,217 32,000 4,000 14.29%5600 Credit Card/Bank Fees 6,957 9,947 16,256 15,000 12,556 11,000 (4,000) -26.67%TOTAL CONTRACTUAL SERVICES 55,879 71,201 78,718 81,000 81,222 79,200 (1,800) -2.22%
EXPENDITURES
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A B O Q S T U V W X
Account Account FY20/21 FY21/22 FY22/23 FY23/24 FY23/24 FY24/25
Number Description Actual Actual Actual Budget Estimated Proposed
Variance
($)
Variance
(%)
Recreation Center - Fund Summary (Fund 400, Departments 00 & 40 Combined)
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
9293
94
95
Supplies6110 Materials and Supplies 6,068 3,021 14,527 6,000 15,600 15,000 9,000 150.00%6111 Custodial Supplies 10,585 11,958 7,345 9,000 6,640 8,000 (1,000) -11.11%6120 Supplies - Childcare 30 23 - 300 - 300 - 0.00%6130 Supplies - Safety 1,390 1,370 1,339 1,200 1,180 1,000 (200) -16.67%6141 Office Furniture/Equipment - 132 - - - - - #DIV/0!6142 Fitness Equipment 969 3,097 147 - 1,087 - - #DIV/0!6210 Office & Technology Supplies - 22 544 500 870 500 - 0.00%TOTAL SUPPLIES 19,042 19,623 23,902 17,000 25,377 24,800 7,800 45.88%Other7400 Bond Issuance Costs - - - - - - - #DIV/0!8200 Buildings - - - - 21,740 - - #DIV/0!8300 Equipment - - - 10,000 9,873 - (10,000) -100.00%9901 General Fund Transfer - - - - - - - #DIV/0!9904 Transfer to Debt Service Fund 130,656 133,956 132,156 130,356 130,356 133,511 3,155 2.42%9920 Purchase of Services - Risk Management 20,000 20,000 25,534 31,261 31,261 31,261 - 0.00%9922 Purchase of Service - IT 34,383 36,871 40,801 49,333 49,333 58,691 9,358 18.97%TOTAL OTHER 185,039 190,827 198,491 220,950 242,563 223,463 2,513 1.14%
TOTAL EXPENDITURES 638,593 688,856 739,068 789,256 836,761 849,826 60,570 7.67%NET INCREASE/(DECREASE)(183,183) (137,793) 13,049 (6,100) (11,247) 4,674 236,869 99,076 112,125 106,025 100,878 105,552 Ending Fund Balance
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Fiscal Year 2024/2025 Annual Budget
Special Service
Area #4 Fund
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Special Service Area #4 Fund – Overview The Special Service Area (SSA) #4 Fund is to account for revenues and expenses associated with annual debt service for a sewer project that was completed in 2004 in the Lakewood Road Subdivision. SSAs allow a municipality to levy a property tax on property within a defined area to fund specific improvements. Through an SSA, payments are spread equally over the identified number of taxable lots rather than through assessment (Special Assessment). The SSA is to expire in tax year 2024.
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A B O Q S T U V W X
Account Account FY20/21 FY21/22 FY22/23 FY23/24 FY23/24 FY24/25
Number Description Actual Actual Actual Budget Estimated Proposed
82 (641) (232) 27 27 59
3010 Property Tax Collections 16,123 16,123 15,581 15,580 15,584 15,580 - 0.00%3210 Interest Income - - 18 - 20 - - #DIV/0!3220 CD Interest 1 1 7 - 8 - - #DIV/0!
TOTAL REVENUES 16,124 16,124 15,606 15,580 15,612 15,580 - 0.00%
9936 Transfer to Utility Improvement Fund 16,847 15,715 15,347 15,580 15,580 15,580 - 0.00%
TOTAL EXPENDITURES 16,847 15,715 15,347 15,580 15,580 15,580 - 0.00%NET INCREASE/(DECREASE)(723) 409 259 - 32 - (641) (232) 27 27 59 59
EXPENDITURES
Ending Fund Balance
Variance
($)
Variance
(%)
Lakewood SSA#4 - Fund Summary (Fund 424, Department 00)
Beginning Fund Balance
REVENUES
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Fiscal Year 2024/2025 Annual Budget
Capital
Improvements Fund
219
Capital Improvements Fund – Overview Historically, the purpose of the Capital Improvements Fund has been to account for funds identified for the maintenance and construction of public infrastructure projects other than water and sewer utilities. This includes roads and public facility maintenance, improvements and/or construction. Through FY21/22, Capital Improvements Fund Revenues were derived from transfers from other funds - primarily the previous fiscal year-end surplus (revenues/expenditures) of the General Fund which, by policy, is then assigned for future capital asset maintenance and replacement projects. During FY21/22, the City Council adopted a tax on electric (started in June 2022) and natural gas (started in June 2023) utilities. Per City Ordinance adopted by Council, those revenues derived from the electric usage portion of these taxes are to be used to fund the City’s General Fund capital asset and maintenance replacement program for projects identified as part of the Community Investment Plan. In FY24/25, the Capital Improvements Fund will be used to account for any carryover funding from FY23/24 and capital asset maintenance and replacement projects, identified in the Community Investment Plan, will be funded through a newly established “Capital Asset Maintenance & Replacement Fund” section of the budget. This Capital Improvements Fund will then be removed from future budget documents.
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2930
31
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A B O Q S T U V W X
Account Account FY20/21 FY21/22 FY22/23 FY23/24 FY23/24 FY24/25
Number Description Actual Actual Actual Budget Estimated Proposed
478,286 321,452 1,013,329 251,039 251,039 283,262
3210 Interest Income 1,402 382 663 1,000 31,148 25,000 24,000 2400.00%3220 CD Interest 301 179 1,696 250 2,500 2,000 1,750 700.00%3760 Received from Developers - - - - - - - #DIV/0!3837 Unrealized Gain/Loss - (2,134) 14,071 - - - - #DIV/0!3882 Reimbursements - Miscellaneous 48,772 34,870 39,037 700 - - (700) -100.00%3886 Reimbursements - State - - - - - - - #DIV/0!3971 Transfer from Annexation Fund - - - - - - - #DIV/0!3975 Transfer from General Fund - 696,503 - - - - - #DIV/0!
TOTAL REVENUES 50,475 729,800 55,467 1,950 33,648 27,000 25,050 1284.62%
5110 Contractual Services - - - - - - - #DIV/0!8100 Land Acquisitions - - - - - - - #DIV/0!8200 Buildings 130,350 - 100,000 - - - - #DIV/0!8600 Streets - - 175,295 25,000 1,209 48,000 23,000 92.00%8800 Park Playground Improvements 29,300 - 189 - - - - #DIV/0!8900 Capital - Other Improvements 18,659 37,923 390,373 23,500 216 - (23,500) -100.00%9901 Transfer - Capital Equipment Fund 29,000 - 151,900 - - 5,000 5,000 #DIV/0!
TOTAL EXPENDITURES 207,309 37,923 817,757 48,500 1,425 53,000 4,500 9.28%NET INCREASE/(DECREASE)(156,834) 691,877 (762,290) (46,550) 32,223 (26,000) 321,452 1,013,329 251,039 204,489 283,262 257,262
EXPENDITURES
Ending Fund Balance
Variance
($)
Variance
(%)
Capital Improvements - Fund Summary (Fund 440, Department 00)
Beginning Fund Balance
REVENUES
221
Fiscal Year 2024/2025 Annual Budget
Capital Equipment
Fund
222
Capital Equipment Fund – Overview Historically, the Capital Equipment Fund has been utilitzed to track annual expenditures of equipment replacement (e.g., vehicles, computer equipment, etc.) as identified in the five-year Capital Improvement Plan. Through FY21/22, Capital Equipment Fund Revenues were derived from transfers from other funds – primarily the previous fiscal year-end surplus (revenues/expenditures) of the General Fund which, by policy, is then assigned for future capital projects. During FY21/22, the City Council adopted a tax on electric (started in June 2022) and natural gas (started in June 2023) utilities. Per City Ordinance adopted by Council, those revenues derived from the natural gas usage portion of these taxes are to be used to fund any new (as distinct from maintenance and replacement) projects as identified as part of the Community Investment Plan. In FY24/25, the Capital Equipment Fund will be used to account for any carryover funding from FY23/24 and this Capital Equipment Fund will be removed once projects are finished from future budget documents.
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A B O Q S T U V W X
Account Account FY20/21 FY21/22 FY22/23 FY23/24 FY23/24 FY24/25
Number Description Actual Actual Actual Budget Estimated Proposed
(28,749) 322 365 31,425 31,425 31,850
3210 Interest Income - - 104 400 25 400 - 0.00%
3220 CD Interest 71 43 402 - 400 - - #DIV/0!
3975 Transfer from General Fund 29,000 - 151,900 - - 5,000 5,000 #DIV/0!
TOTAL REVENUES 29,071 43 152,406 400 425 5,400 5,000 1250.00%
8300 Capital - Equipment - - 71,346 30,000 - 35,000 5,000 16.67%
8400 Capital - Vehicles - - 50,000 - - - - #DIV/0!
TOTAL EXPENDITURES - - 121,346 30,000 - 35,000 5,000 16.67%
NET INCREASE/(DECREASE)29,071 43 31,060 (29,600) 425 (29,600)
322 365 31,425 1,825 31,850 2,250
EXPENDITURES
Ending Fund Balance
Variance
($)
Variance
(%)
Capital Equipment - Fund Summary (Fund 450, Department 00)
Beginning Fund Balance
REVENUES
224
Fiscal Year 2024/2025 Annual Budget
Capital Asset
Maintenance &
Replacement Fund
225
Capital Asset New Projects Fund – Overview The Capital Asset Maintenance & Replacement Fund is being established in the FY24/25 Budget to identify the funding for the maintenance and replacement of existing capital assets with a cost of more than $10,000. During FY21/22 the City Council adopted a tax on electric utilities and, per City Ordinance, those revenues derived from this tax are to be used for the sole purpose of funding the Capital Asset Maintenance & Replacement Program as identified in the Community Investment Plan (CIP). The CIP is updated by Staff and reviewed and approved by the City Council on an annual basis as part of the budget development process. Capital Asset Maintenance & Replacement Projects identified for funding in FY24/25 include: Knox Park Skate Park Improvements $25,000 Wing Truck $135,715 Concrete Truck $82,200 1-Ton Dump $135,000 Patrol SUV Replacements $295,000 Vehicle Replacement $110,000 Maintenance Cart $10,000 Street Sweeper $335,000 South Main Street Parking Lot Paving $350,000 Street Lights (Route 120) $30,000
Total $1,507,915 Detailed descriptions of these projects can be found in the attached Community Investment Plan document.
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23
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25
A B D E G H I J K L
Account Account FY20/21 FY21/22 FY22/23 FY23/24 FY23/24 FY24/25
Number Description Actual Actual Actual Budget Estimated Proposed
- - - 865,821 865,821 438,566
3210 Interest Income - - 1,610 1,000 1,103 1,000 - 0.00%
3145 Electric Use Tax - - 1,043,524 1,125,000 1,077,565 1,090,000 (35,000) -3.11%
TOTAL REVENUES - - 1,045,134 1,126,000 1,078,668 1,091,000 (35,000) -3.11%
8200 Capital - Buildings - - - 460,000 436,856 - (460,000) -100.00%
8300 Capital - Equipment - - - 40,000 29,184 - (40,000) -100.00%
8400 Capital - Vehicles - - 179,313 829,000 508,782 1,102,915 273,915 33.04%
8600 Capital - Streets - - - 25,000 24,905 - (25,000) -100.00%
8800 Capital - Park Improvements - - - 70,000 63,321 25,000 (45,000) -64.29%
8900 Capital - Public Improvements - - - 550,000 442,875 380,000 (170,000) -30.91%
TOTAL EXPENDITURES - - 179,313 1,974,000 1,505,923 1,507,915 (466,085) -23.61%
NET INCREASE/(DECREASE)- - 865,821 (848,000) (427,255) (416,915)
- - 865,821 17,821 438,566 21,651 Ending Fund Balance
Capital Asset Maintenance & Replacement - Fund Summary (Fund 445, Department 00)
Variance ($)
Variance
(%)
Beginning Fund Balance
REVENUES
EXPENDITURES
227
CITY OF MCHENRY
General Fund
Community Investment Plan (CIP)
Years 2024 through 2043
228
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; water and sewer expansion projects are funded through utility capacity fees; and,
Recreation Center maintenance, replacement and new capital assets are funded through the
user fees of the facility. The purpose of this Community Investment Plan (CIP) is to serve as a
realistic, strategic blueprint for the capital asset maintenance and replacement and new capital
asset projects not related to Water and Sewer utilities or the Recreation Center.
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. This practice, along
with the fact that the recession of 2007/2008 resulted in the deferral of capital asset
maintenance and replacement projects for a number of years. The municipality is still impacted
by this backlog of these deferred items even today.
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 served 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 an understanding of future demands. This Community Investment
Plan includes separate sections that address 1) the maintenance and replacement of existing
capital assets and 2) the development of new assets (e.g., the construction of a new public
facility), providing a clear distinction between meeting existing needs versus new capital asset
projects.
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Goals for the Plan
During the 2019 City Council 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 capital
costs based upon realistic service lives of existing assets were needed. With these objectives in
mind, the structure and goals for this Community Investment Plan document are as follows:
1. The “wish list” approach for capital asset maintenance and replacement and the
introduction of new capital asset projects is abandoned and replaced with a plan and
schedule that is realistic to implement based on available funding.
2. Funding and implementation prioritization is for capital asset maintenance and
replacement projects before the implementation of new capital asset projects.
3. Maintenance and replacement of existing capital assets is scheduled and implemented
based upon acceptable costs and reasonable service lives. This information is analyzed
and updated as part of the annual update of this plan.
4. Capital asset maintenance and replacement project costs are funded by the Electricity
Use Tax (ComEd), the revenues of which are dedicated by municipal ordinance for the
maintenance and replacement of existing assets only. No new capital assets are funded
through this revenue source.
5. New capital assets must be justified and prioritized based on the needs of the
community and are deliberately planned and funded through any one or a combination
of the following sources – Natural Gas Utility Tax (Nicor), the revenues of which are
dedicated by municipal ordinance for the development of new capital assets; General
Fund surplus (revenues/expenditures, ensuring the General Fund Balance is achieved
and that capital asset maintenance and replacement needs are met; 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 Community Investment Plan was assigned to the city staff and all
department heads continue to coordinate to prioritize projects and develop cost projections.
230
Capital expenditures are classified by department, expenditure, and type of treatment. Costs
are also assigned projected year for implementation which is then used to develop a long-term
projection and implementation schedule. The method of developing these costs included the
following assumptions: 1) small items (under $10,000) which are sporadically replaced through
operating budgets are not included in the projection; 2) only existing capital assets are included
in the projection; 3) maintenance treatments to fulfill the full asset service life and asset
replacement costs were included; and, 4) each treatment or asset replacement was to include a
cost and associated service life. 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.
Alternatively, new capital asset projects are identified separately in this document, with
justification for need and estimated development costs. These projects should only be
considered based on the availability of funding through the Natural Gas Utility Tax, if there is
sufficient General Fund surplus, and/or if other revenues sources have been identified. More
on project funding below.
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 has resulted in the ability to address some of the City’s capital
needs, funding levels can be unreliable from year-to-year, resulting in the inability to
appropriately budget, plan, and implement a regularly scheduled capital maintenance and
replacement plan or to strategically plan for the development of new capital assets.
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 Utility Tax (ComEd). Annual revenues of this tax
were estimated at $1.1 million. Importantly, in analyzing identified General Fund capital asset
maintenance and replacement needs through 2043, the City Administration has determined
that the annualized cost of capital maintenance and replacement projects is approximately
$1.6 million, which means that the maintenance and replacement projects, as identified, will
require additional funding support from the General Fund and/or that projects require
additional prioritizing for implementation. A listing of capital asset maintenance and
replacement projects are identified in Appendix C.
Also in February 2022, the City Council adopted a Natural Gas Utility Tax (Nicor) with estimated
annual revenues estimated at $760,000. By ordinance, Council dedicated these revenues for
the development of any new capital asset projects. Council also made the decision to defer the
231
implementation of the Natural Gas Utility Tax until June 2023 and, as such, FY24/25 will be the
first year that revenues from the Natural Gas Utility Tax will be available for new capital asset
projects.
Organization of the Plan
The Community Investment Plan (CIP) is organized and presented to clearly distinguish Capital
Asset Maintenance and Replacement Projects from New Capital Asset Projects.
Capital Asset Maintenance and Replacement Projects
Capital asset maintenance and replacement projects included in the Community Investment
Plan are those projects estimated to cost at least $10,000 and have a useful life of greater than
one year. Projects are presented in two formats: 1) individually, via a brief project description
that identifies the proposed project maintenance needs and/or replacement timeframe and
estimated cost(s) (Appendix B); and 2) collectively, 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 to 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.
Capital asset maintenance and replacement 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. Note that 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
232
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 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 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.
New Capital Asset Projects
New capital asset 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. New capital asset projects and
estimated costs are identified within the narrative of this document, just before Appendix A.
This includes a brief project description with estimated cost. Detailed information regarding the
justification, development, implementation, and funding of new capital asset projects would be
required as part of the budgeting process. New capital asset project categories are defined
below.
Facilities and Infrastructure
Projects related to the expansion of existing public facilities beyond existing building footprints
or the development of new infrastructure projects beyond existing limits. This could include,
but is not limited to municipal buildings, public parking lots, multi-use paths, culverts, street
lighting and other streetscape amenities, signalization, curbs, sidewalks, and corrugated steel
culverts.
Parks and Land
Projects related to the expansion and/or acquisition of additional property for public use such
as parking lots, playgrounds, ball courts, open park space, etc. and for which other public
funding is not available.
Vehicles and Equipment
Projects related to the addition of vehicles and/or equipment to the municipal fleet.
Implementation of the Plan
Because it was uncertain when the Electricity Utility Tax revenues would be available 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 budgets and minimum fund balances. The Capital Improvement
Program also included projects both for the development of new assets as well as maintenance
233
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 this Community Investment Plan by updating the schedule and beginning to
shift projects to better match revenues to expenditures in the early years of the plan.
With deferred implementation based on the availability of funding, Electricity Utility Tax
revenues in the amount of $1.8 million (representing 18 months of collection) were able to be
implemented in the FY23/24 Budget.
Because the Natural Gas Utility Tax did not take effect until June 2023, no new capital asset
projects were planned to utilize this funding in FY23/24. While Natural Gas Utility Tax revenues
are now being generated, it is still too early to appropriately estimate funding for the FY24/25
Budget. At this time, proposed projects will be identified with any projects recommended for
funding as part of the FY24/25 Budget development process in March/April 2024.
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 and that new capital asset
projects are appropriately justified and planned. Identified projects will be included for
approval as part of each fiscal year budget based on the maintenance and replacement
schedules or defined new projects identified in this document.
Capital Asset Maintenance and Replacement Projects
The tables below identify the expenditure status, as of the development of this document, of
capital asset maintenance and replacement projects included in the FY23/24 Budget (or added
as amendments to the budget) and those projects identified to be included in the FY24/25
Budget. Again, it is important to remember that projects identified for implementation are
based on the maintenance and replacement schedule provided in Appendix C.
Capital asset maintenance and replacement projects completed or substantially completed in
FY23/24 include:
Project
Budgeted
Amount
Actual/Projected
Amounts*
City Hall Parking Lot Rehabilitation $550,000 $435,000
City Hall Front Entrance and Doors $100,000 $100,000
Jaycees Park Gazebo Roof Replacement $5,000 $5,000
234
Knox Park Maintenance Sheds Replacement $20,000 $20,000
Miller Riverfront Gazebo Roof Replacement $5,000 $5,000
Petersen Park Horse Barn Roof Replacement $350,000 $330,000
Freund Field Basketball Court Lighting** $50,000 $50,000
Ballistic Helmet Replacement $40,000 $40,000
Patrol SUV Vehicle Replacement (310) $64,000 $57,000
Patrol SUV Vehicle Replacement (311) $64,000 $57,000
Patrol Utility Vehicle Replacement (325) $59,000 $53,000
Patrol Utility Vehicle Replacement (317) $59,000 $53,000
Patrol Utility Vehicle Replacement (327) $59,000 $53,000
Patrol Utility Vehicle Replacement (326) $59,000 $53,000
Pearl Street Bridge Deck Oil $25,000 $25,000
South Main Street Parking Lot Design*** $0 $60,400
Wing Truck $305,000 $305,000
1-Ton Dump (Snowplow) $115,000 $135,000
1-Ton Pickup (Concrete) $75,000 $82,200
Body Cameras**** $85,000 $0
TOTALS $2,089,000 $1,918,600
*Note that the final costs for some of the identified projects may increase or decrease as they
are completed.
**Costs reallocated for the paving of the former Justen Funeral Home site and Green Street
parking lots.
***This project was added during FY23/24 for Design Costs. Construction to occur in FY24/25.
****Project deferred for implementation to FY24/25.
Based on Electricity Utility Tax revenues from FY22/23 and FY23/24, it is anticipated that the
amount of funding available for the FY24/25 Capital Asset Maintenance and Replacement
Program will be $1,100,000. Unfortunately, due to capital asset maintenance and replacement
projects being deferred in previous years, capital asset maintenance and replacement needs
are greater than anticipated resources. The nineteen (19) projects identified in the following
table are estimated at $1,710,000 and are listed in terms of priority – with Green being the
highest priorities and Orange being lower immediate needs. The highlighted higher priority
projects (those in Green) total $1,255,000. Identified needs greater than available Electricity
Utility Tax revenues will be funded with any unused funds from FY23/24 or FY23/24 General
Fund surplus (Revenues/Expenditures). Further, capital asset maintenance and replacement
needs will be a priority over the funding of any new capital projects with surplus funds. The full
maintenance and replacement schedule identified in Appendix C.
235
Department
Project
Proposed
Amount
Community Development ¾ Ton Maintenance Pickup $40,000
Parks & Recreation Knox Park Skate Park $25,000
Parks & Recreation Multi Use Vehicle $50,000
Parks & Recreation ¾ Ton Pickup $40,000
Parks & Recreation Sedan (Taurus) $30,000
Parks & Recreation Maintenance Cart $10,000
Police PD Vehicle $59,000
Police PD Vehicle $59,000
Police PD Vehicle $59,000
Police PD Vehicle $59,000
Police PD Vehicle $59,000
Public Works South Main Street Parking Lot $350,000
Public Works Street Lights (Route 120) $30,000
Public Works Street Sweeper $335,000
Public Works Roller $50,000
Parks & Recreation Garage Roof $250,000
Parks & Recreation Garage Doors & Windows $50,000
Parks & Recreation Garage Heating Unit $30,000
Parks & Recreation Veterans Memorial Park Lighting $125,000
TOTAL $1,710,000
A detailed description of each of these projects is included in Appendix B of this document.
Capital Asset New Projects
As identified previously in this document, the Electricity Utility Tax (ComEd) portion of the
Municipal Utility Taxes is assigned for maintenance and replacement projects only, with
revenues generated by the Natural Gas Utility Tax (NICOR) being assigned for Capital Asset New
Projects. These projects are those facility, infrastructure, parks, land, vehicles and/or
equipment projects that are not identified as maintenance or replacement projects in nature.
While these additional expansion projects may be deemed important in nature, they will only
be able to be implemented at such time as 1) there is sufficient funding is generated by the
Natural Gas Utility Tax; 2) there is sufficient available General Fund surplus
(revenues/expenditures) and capital maintenance and replacement projects have been funded;
and/or, 3) alternate funding sources (municipal or non-municipal) are identified. This list
continues to evolve, and new project ideas may be forwarded at any time for inclusion on this
list. Projects are not listed in any order of priority and are only included in the Community
Investment Plan so that they are appropriately identified. Identification of available funding
and ability to implement any of the following projects will not be known until the
development of FY24/25 Budget.
236
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.
Annual Sidewalk Replacement Program $300,000
The scope of this project includes the replacement of existing sidewalks throughout the city
based on identified need, much the same as the city’s local road program.
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
237
5. Miscellaneous Streetscape Improvements $1,500,000
Riverwalk Expansion (Phase 4) $1,750,000
This project includes the construction of Riverwalk segment from Pearl Street to Elm Street.
The city has been coordinating with private property owners and Commonwealth Edison for the
burial of power poles which will occur in FY23/24 however, the most significant portion of this
project includes the development of the Riverwalk pathway itself. Completion of this segment
will establish a continuous route from Weber’s Park to Green Street along the Fox River and
Boone Creek.
Route 31 Local Matches (Non-Water-Sewer) $1,000,000
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.
238
Appendix A
This appendix includes a 10-year summary chart comparing estimated Electricity Utility Tax
revenues and capital asset maintenance and replacement projects.
239
FY22/23
Actual
FY23/24
Estimated &
Available
FY24/25
Estimated
FY25/26
Estimated
FY26/27
Estimated
FY27/28
Estimated
FY28/29
Estimated
FY29/30
Estimated
FY30/31
Estimated
FY31/32
Estimated
FY32/33
Estimated
Electricity Utility Tax Revenue $1,043,524 $1,908,524 $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
Maint & Replacement Costs $175,000 $1,918,600 $1,710,000 $1,673,000 $843,000 $2,781,000 $2,879,000 $569,000 $2,072,000 $1,249,000 $2,630,000
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
City of McHenry Community Investment Plan
10-Year Estimated Revenues vs. Maintenance & Replacement Costs
240
Appendix B
Included in this appendix is an individual project sheet for each capital item that is being funded
in Fiscal Year 2024-2025. Sheets include a brief project description, sponsoring department
information, engineering expenditure information, an anticipated service life, and a cost. Each
page also includes a photo representing the project and a five-year table of expenditures for
multi-year projects.
241
Community Investment Plan (General Fund)
Project Project Number
Project Description Department
Category
Service Life
Fiscal Year
Vehicle Cost
27/2826/27
Fiscal Year Expenditures
23/24 24/25 25/26
-$ 40,000.00$
10-12 Years
24/25
$40,000.00
The proposed funding continues the gradual replacement of the Community
Development Department fleet.
3/4 Ton Pick-up
Community Dev
Vehicle
242
Community Investment Plan (General Fund)
Project Project Number
Project Description Department
Category
Service Life
Design Fiscal Year
Design Cost
Construction Fiscal Year
Construction Cost
23/24 24/25 25/26 26/27 27/28
-$ 25,000.00$
Fiscal Year Expenditures
Knox Park Skate Park
Parks & Recreation
Expansion
25 Years
23/24
$0.00
24/25
$25,000.00
The proposed funding in set earmarked to introduce a new pre-cast concrete
ramp to the existing skatepark, which has been untouched since its
construction.
243
Community Investment Plan (General Fund)
Project Project Number
Project Description Department
Category
Service Life
Fiscal Year
Vehicle Cost
27/2826/27
Fiscal Year Expenditures
23/24 24/25 25/26
-$ 50,000.00$
10-12 Years
24/25
$50,000.00
The proposed funding is for the replacement of the Toro Workman. This is a
multi-use vehile that can utilize a variety of attachements.
Multi-Use Vehicle
Parks & Recreation
Vehicle
244
Community Investment Plan (General Fund)
Project Project Number
Project Description Department
Category
Service Life
Fiscal Year
Vehicle Cost
10-12 Years
24/25
$40,000.00
The proposed funding continues the gradual replacement of the Parks
Maintenance Department fleet.
3/4 Ton Pick-up
Parks Maintenance
Vehicle
27/2826/27
Fiscal Year Expenditures
23/24 24/25 25/26
-$ 40,000.00$
245
Community Investment Plan (General Fund)
Project Project Number
Project Description Department
Category
Service Life
Fiscal Year
Vehicle Cost
10-12 Years
24/25
$30,000.00
The proposed funding is for the replacement of the the current staff use 2004
Ford Taurus.
Sedan (Taurus)
Parks & Recreation
Vehicle
27/2826/27
Fiscal Year Expenditures
23/24 24/25 25/26
-$ 30,000.00$
246
Community Investment Plan (General Fund)
Project Project Number
Project Description Department
Category
Service Life
Fiscal Year
Vehicle Cost
27/2826/27
Fiscal Year Expenditures
23/24 24/25 25/26
-$ 10,000.00$
10-12 Years
24/25
$10,000.00
The proposed funding is for the replacement of the the John Deere Gator.
Maintenance Cart
Parks & Recreation
Vehicle
247
248
Community Investment Plan (General Fund)
Project Project Number
Project Description Department
On Dec 21, 2021 City Council approved the Engineering Services Contract Category
award Christopher B. Burke Engineering, LTD.
The easements required for this projest were obtained in 2023.Service Life
Rehilibiltation of the South Main Street Parking would include Design Fiscal Year
resurfacing, lighting and drainage.Design Cost
Construction Fiscal Year
Construction Cost
23/24 24/25 25/26 26/27 27/28
60,400.00$ 350,000.00$
Fiscal Year Expenditures
South Main Street Parking Lot
Public Works
Rehilbiltation
25 Years
23/24
$60,400.00
24/25
$350,000.00
249
250
251
252
Community Investment Plan (General Fund)
Project Project Number
Project Description Department
Category
Service Life
Fiscal Year
Vehicle Cost
27/2826/27
Fiscal Year Expenditures
23/24 24/25 25/26
-$ 350,000.00$
25 Years
24/25
$350,000.00
The proposed funding are for the repairs to the parks and recreation
maintenance building at 105 N. Green Street. The repairs include: $250,000 for
a complete re-roof (this is essential), $50,000 for replacement of garage doors
and building windows, $50,000 for replacement of existing building heaters.
Parks Maintenance Garage Improvements/Repairs
Parks & Recreation
Buildings
253
Community Investment Plan (General Fund)
Project Project Number
Project Description Department
Category
Service Life
Fiscal Year
Vehicle Cost
30 Years
24/25
$125,000.00
The proposed funding is for the installation of bollards around Veteran's
Memorial Park as well as the repalcement of the existing lighting.
Veteran's Memorial Park Lighting
Parks & Recreation
Facility Improvements
27/2826/27
Fiscal Year Expenditures
23/24 24/25 25/26
-$ 125,000.00$
254
Appendix C
This appendix is the master spreadsheet of all capital items included in the 20-year projection.
This spreadsheet is annually.
255
General Fund (MUT) Capital Projection (2023-2042)
Project Number Department City of McHenry Asset Sub Asset/Description Asset Class Treatment Interval Year Cost Annualized 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033-2037 2038-2042
30-INF-001 Public Works City of McHenry Streets Annual Crack Seal Infrastructure Crack Sealing 8 Annual Annual 100,000.00$ Omitted this FY 100,000.00$ 100,000.00$ 100,000.00$ 100,000.00$ 100,000.00$ 100,000.00$ 100,000.00$ 100,000.00$ 500,000.00$ 500,000.00$
30-EQPT-003 Public Works City of McHenry Wing Truck 406 Vehicle/Equipment Replacement 20 2024 305,000.00$ 15,250.00$ 305,000.00$ ---------$ 325,000.00$
01-FAC-001 Admin City of McHenry City Hall Parking Lot Facility Major Rehabilitation 25 2023 550,000.00$ 22,000.00$ 435,000.00$ ----------$ -$
01-FAC-002 Admin City of McHenry City Hall Front Entrance & Front Doors Facility Replacement 30 2023 100,000.00$ 3,333.33$ 100,000.00$ ----------$ -$
41-PARK-001 Parks & Rec City of McHenry Jaycees Park Gazebo Park/Land Roof Replacement 25 2023 5,000.00$ 200.00$ 5,000.00$ ----------$ -$
41-PARK-002 Parks & Rec City of McHenry Knox Park Maintenance Sheds (2 each)Park/Land Replacement 25 2023 20,000.00$ 800.00$ 20,000.00$ ----------$ -$
41-PARK-003 Parks & Rec City of McHenry Miller Riverfront Gazebo Park/Land Roof Replacement 25 2023 5,000.00$ 200.00$ 5,000.00$ ----------$ -$
41-PARK-004 Parks & Rec City of McHenry Horse Farm Barn Park/Land Roof Replacement 25 2023 350,000.00$ 14,000.00$ 330,000.00$ ----------$ -$
41-PARK-005 Parks & Rec City of McHenry Freund Field Basketball Courts (Lighting)Park/Land Replacement 25 2023 50,000.00$ 2,000.00$ 50,000.00$ ----------$ -$
22-LEQPT-002 Police City of McHenry Ballistic Helmets (55 each)Light Equipment Replacement 5 2023 40,000.00$ 8,000.00$ 40,000.00$ ----40,000.00$ ----40,000.00$ 40,000.00$
22-EQPT-001 Police City of McHenry SUV - Patrol 310 Vehicle/Equipment Replacement 5 2023 64,000.00$ 12,800.00$ 57,000.00$ ----64,000.00$ ----64,000.00$ 64,000.00$
22-EQPT-002 Police City of McHenry SUV - Patrol 311 Vehicle/Equipment Replacement 5 2023 64,000.00$ 12,800.00$ 57,000.00$ ----64,000.00$ ----64,000.00$ 64,000.00$
22-EQPT-003 Police City of McHenry Utility - Patrol 325 Vehicle/Equipment Replacement 5 2023 59,000.00$ 11,800.00$ 53,000.00$ ----59,000.00$ ----59,000.00$ 59,000.00$
22-EQPT-004 Police City of McHenry Utility - Patrol 317 Vehicle/Equipment Replacement 5 2023 59,000.00$ 11,800.00$ 53,000.00$ ----59,000.00$ ----59,000.00$ 59,000.00$
22-EQPT-005 Police City of McHenry Utility - Patrol 327 Vehicle/Equipment Replacement 5 2023 59,000.00$ 11,800.00$ 53,000.00$ ----59,000.00$ ----59,000.00$ 59,000.00$
22-EQPT-006 Police City of McHenry Utility - Patrol 326 Vehicle/Equipment Replacement 5 2023 59,000.00$ 11,800.00$ 53,000.00$ ----59,000.00$ ----59,000.00$ 59,000.00$
Public Works City of McHenry South Main Parking Lot Infrastructure Major Rehabilitation - Design 20 2023 60,400.00$ 3,020.00$ 60,400.00$ --------
30-INF-002 Public Works City of McHenry Bridge Pearl Street Bridge Deck Sealer Infrastructure Rehabilitation 5 2023 25,000.00$ 5,000.00$ 25,000.00$ ----------$ -$
30-EQPT-001 Public Works City of McHenry 1 Ton Small Dump 430 Vehicle/Equipment Replacement 15 2023 115,000.00$ 7,666.67$ 135,000.00$ ----------$ 115,000.00$
30-EQPT-002 Public Works City of McHenry 1 Ton Pickup 425 Vehicle/Equipment Replacement 12 2023 75,000.00$ 6,250.00$ 82,200.00$ ---------75,000.00$ -$
03-EQPT-001 ComDev City of McHenry 3/4 Ton Maint PU Vehicle/Equipment Replacement 12 2024 25,000.00$ 2,083.33$ -40,000.00$ ---------$ -$
41-FAC-001 Parks & Rec City of McHenry Parks Garage Roof Facility Replacement 50 2024 250,000.00$ 5,000.00$ -250,000.00$ ---------$ -$
41-FAC-002 Parks & Rec City of McHenry Parks Garage Windows Facility Replacement 50 2024 150,000.00$ 3,000.00$ -50,000.00$ ---------$ -$
41-FAC-003 Parks & Rec City of McHenry Parks Garage Heating Unit Facility Replacement 25 2024 100,000.00$ 4,000.00$ -30,000.00$ ---------$ -$
41-PARK-006 Parks & Rec City of McHenry Veterans Memorial Park Lighting System Park/Land Replacement 50 2024 125,000.00$ 2,500.00$ -125,000.00$ ---------$ -$
41-PARK-007 Parks & Rec City of McHenry Knox Park Skate Park Park/Land Major Rehabilitation 25 2024 25,000.00$ 1,000.00$ -25,000.00$ ---------$ -$
41-EQPT-001 Parks & Rec City of McHenry Multi-Use Vehicle Formerly (141)Vehicle/Equipment Replacement 25 2024 50,000.00$ 2,000.00$ -50,000.00$ ---------$ -$
41-EQPT-003 Parks & Rec City of McHenry 3/4 Ton Pickup 120 Vehicle/Equipment Replacement 12 2024 40,000.00$ 3,333.33$ -40,000.00$ --------40,000.00$ -$
41-EQPT-004 Parks & Rec City of McHenry Sedan-Recreation 131 Vehicle/Equipment Replacement 12 2024 30,000.00$ 2,500.00$ -30,000.00$ --------30,000.00$ -$
41-EQPT-005 Parks & Rec City of McHenry Maintenance Cart Vehicle/Equipment New Purchase 25 2024 10,000.00$ 400.00$ -10,000.00$ ---------$ -$
22-EQPT-011 Police City of McHenry PD Vehicle Vehicle/Equipment Replacement 7 2024 59,000.00$ 8,428.57$ -59,000.00$ ------59,000.00$ --$ 59,000.00$
22-EQPT-012 Police City of McHenry PD Vehicle Vehicle/Equipment Replacement 7 2024 59,000.00$ 8,428.57$ -59,000.00$ ------59,000.00$ --$ 59,000.00$
22-EQPT-013 Police City of McHenry PD Vehicle Vehicle/Equipment Replacement 7 2024 59,000.00$ 8,428.57$ -59,000.00$ ------59,000.00$ --$ 59,000.00$
22-EQPT-014 Police City of McHenry PD Vehicle Vehicle/Equipment Replacement 7 2024 59,000.00$ 8,428.57$ -59,000.00$ ------59,000.00$ --$ 59,000.00$
22-EQPT-015 Police City of McHenry PD Vehicle Vehicle/Equipment Replacement 5 2024 59,000.00$ 11,800.00$ -59,000.00$ ----59,000.00$ ---59,000.00$ -$
Public Works City of McHenry South Main Parking Lot Infrastructure Major Rehabilitation 20 2024 350,000.00$ 17,500.00$ -350,000.00$ ------
30-INF-003 Public Works City of McHenry Street Lights Route 120 (East) (21 each)Infrastructure Replacement 30 2024 230,000.00$ 7,666.67$ -30,000.00$ 200,000.00$ --------$ -$
30-EQPT-004 Public Works City of McHenry Street Sweeper 441 Vehicle/Equipment Replacement 15 2024 325,000.00$ 21,666.67$ -335,000.00$ ---------$ -$
30-EQPT-005 Public Works City of McHenry Roller 450 Vehicle/Equipment Replacement 25 2024 50,000.00$ 2,000.00$ -50,000.00$ ---------$ -$
Annual Cost 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033-2037 2038-2042
1,496,154.92$ 1,918,600.00$ 1,710,000.00$ 1,673,000.00$ 843,000.00$ 2,781,000.00$ 2,879,000.00$ 569,000.00$ 2,072,000.00$ 1,249,000.00$ 2,630,000.00$ 8,876,000.00$ 7,101,000.00$
256
Fiscal Year 2024/2025 Annual Budget
Capital Asset
New Projects Fund
257
Capital Asset New Projects Fund – Overview The Capital Asset New Projects Fund was established in the FY24/25 Budget to identify the funding for the development of new capital assets (as distinct from maintenance and replacement of existing capital assets) with a cost of more than $10,000. During FY21/22 the City Council adopted a tax on natural gas utilities and, per City Ordinance, those revenues derived from this tax are to be used for the sole purpose of funding the Capital Asset New Projects Fund. Since the implementation of the natural gas tax was deferred until June 2023, projects will not be identified for funding as part of the Community Investment Plan until such time as the city realizes a full fiscal year of revenues. As such, no new capital asset projects are identified for funding through this source for FY24/25.
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A B C E G H I J K L
Account Account FY20/21 FY21/22 FY22/23 FY23/24 FY23/24 FY24/25
Number Description Actual Actual Actual Budget Estimated Proposed
- - - - - 272,020
3210 Interest Income - - - - 162 200 200 #DIV/0!
3146 Gas Use Tax - - - - 271,858 285,000 285,000 #DIV/0!
TOTAL REVENUES - - - - 272,020 285,200 285,200 #DIV/0!
8200 Capital - Buildings - - - - - - - #DIV/0!
8900 Capital - Public Improvements - - - - - - - #DIV/0!
TOTAL EXPENDITURES - - - - - - - #DIV/0!
NET INCREASE/(DECREASE)- - - - 272,020 285,200
- - - - 272,020 557,220 Ending Fund Balance
Capital Asset New Projects - Fund Summary (Fund 455, Department 00)
Variance
($)
Variance
(%)
Beginning Fund Balance
REVENUES
EXPENDITURES
259
Fiscal Year 2024/2025 Annual Budget
Enterprise Funds
260
Fiscal Year 2024/2025 Annual Budget
Water & Sewer Fund
Water/Sewer Revenues and Public Works
Water, Wastewater, Utility
261
Water & Sewer Fund - Overview The Water and Sewer Fund is an enterprise fund – that is, a business-type fund utilized to account for operations and activities that are financed and operated in a manner similar to a private business enterprise, and where the cost of providing goods and services to the general public on a continuing basis is expected to be recovered primarily through user charges, including operating costs and capital improvement costs related to the maintenance of the water and sewer utility systems. These fund the operations of the Water, Wastewater and Utility Divisions in the Department of Public Works. The operating functions of these three divisions are to provide a safe and reliable supply of high-quality potable water and to protect public health and the environment by treating sewage to meet stringent environmental standards prior to discharge. Of note, the Utility Division was established in FY15/16, combining existing Water and Wastewater Division Maintenance Workers to specifically address utility system maintenance needs more routinely. Prior to this, utility maintenance projects were addressed by either the Water Division or Wastewater Division and often required coordination with the other division to ensure adequate manpower. The creation of the Utility Division established more effective means to deliver utility maintenance projects. The Utility Division has now been combined with the Street Division into the Street/Utility Division. The operating expenses for all Utilities maintenance are still accounted for separately and are reflected in the Utility Division section of the Enterprise Fund Budget. The expenses for the Utility Division are split between the Water and Wastewater Divisions as follows - approximately 63.7% of operating expenses are paid from the Water Division and the remaining 36.3% are paid from the Wastewater Division. Capital expenses are charged to the division that benefits from the maintenance project. In general, water and sewer revenues are derived directly from water and sewer sales, base charges, connection fees, and service penalties and should be sufficient to fund the operating and capital costs for the Water, Wastewater and Utility Divisions. Importantly, water and sewer revenues are driven by consumption and, as such, with a growing awareness of water conservancy (which the City supports) and wetter than average summer months, consumption has been relatively flat over the last two years. The City reviews and adjusts water and sewer rates annually based on operational costs and implements water and sewer base fees to fund utility system capital improvements. The narrative that follows provides a snapshot of the status of the Water and Sewer Fund and identifies operational and capital expenses. This is followed by more detailed summaries of the Water, Wastewater and Utility Divisions of the Department of Public Works.
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Public Works Water Division - Overview
Public Works Water Division Mission The primary focus and overlying responsibility of the Water Division is to provide a safe and reliable supply of potable water. This is accomplished by producing water from a system of wells, treating water, and conducting over 500 required water samples, thereby meeting or exceeding all federal and state health standards. Of major importance to the Water Division employees is providing the consumer with the highest level of customer service possible. We believe this inspires public trust within the community. In summary, Water Division employees undertake the following tasks:
• Production of safe potable water that meets or exceeds State and Federal Drinking Water Regulations.
• Water Production – The Division maintains four iron removal filtration treatment plants served by eight active wells. The City has two emergency or backup wells that have no iron removal filtration but do have temporary chemical feed buildings.
• Water Storage consists of four elevated water storage tanks with a combined storage capacity of 2,750,000 gallons.
• Operation and maintenance of one booster pumping station.
• Provide meter readings to the Finance Department for utility billing for City water and sewer services. The Division manages meter accuracy and replacements as needed of approximately 8,538 water meters.
• Respond to consumer inquiries within 24 hours regarding water quality or high consumption questions or general concerns.
263
Public Works Water Division – Organizational Chart
Treatment Operations
Manager
Russell Ruzicka
Water ROIC Operator
Bryan Scheel
Water Operator II
Doug Mace
Water Operator II
Jason McMahon
Water Operator II
Ben Lesperance
264
Public Works Water Division – FY23/24 Accomplishments
• Met or exceeded State and Federal Drinking water regulations.
• The Water Division employees provided a high level of customer service by responding to customer requests within 24 hours and making available information consumers need to be informed about their drinking water source and water treatment technologies.
• In 2023, the Water Division produced over 801 million gallons of potable water and provided meter readings for over 8,538 water and sewer accounts for billing purposes.
• Received 27th consecutive annual fluoride award from the Illinois Department of Public Health.
• Installed 51 water meters for new construction.
• Completed the required lead and copper sampling of the City of McHenry’s community water system.
• The Water Division had no reported personnel injuries or accidents in the past year.
• Completed Engineering & Design for Water Tower #4 repainting (FY24/25).
265
Public Works Water Division – FY24/25 Goals & Objectives
• Continue to meet or exceed all Federal and State drinking water regulations.
• Continue to provide the highest level of customer service possible by responding to customer requests within 24 hours and make information available for consumers to be informed about their drinking water source and water treatment technologies.
• Look for new opportunities to improve customer service to the consumer.
• Continue to maintain and improve water treatment facilities while remaining in budget.
• Continue to be injury and accident free.
• Release Water Tower #4 repainting project for bids in FY24/25 and complete the project in FY24/25.
• Plant #2 MCC Relocation.
• Continue to develop and train existing licensed operators.
266
Public Works Water Division – FY24/25 Performance Measures
Performance Item Performance Goal Performance Measure FY24/25 Proposed Outcome(s)
IEPA Compliance Achieve 100% compliance in all categories 100% compliance with no violations 100% compliance is expected with no violations Respond to Customer Inquiries and Complaints Respond to all inquiries within 24 hours of receiving Percentage responded to within 24 hours Response to all customer inquiries and complaints.
Capital Projects Complete all Capital Projects on time and within budget Were projects completed on time and within budget All capital projects completed in a timely manner and under budget
Training/Licensing Keep operators current with trainings. Achieve highest possible license. Trainings completed/Tests passed Operators keep license current. New licensed operators.
Safety –Personal Injury/Vehicle Accidents Zero Injuries/ Accidents How many reported injuries/accidents No loss of workdays and remain on/under budget.
267
Public Works Wastewater Division – Overview
Public Works Wastewater Division Mission It is the mission of the Public Works Department Wastewater Division to protect public health and the environment by treating sewage to meet stringent environmental standards prior to discharge. The function of the Wastewater Division is to operate and maintain the Wastewater Treatment Plant and twenty lift stations. The goal of the Wastewater Division is to efficiently maintain these facilities and to produce treated effluent which either meets or exceeds State and Federal standards. The division is also responsible for the removal and disposal of all by-products generated by the treatment process. This is accomplished through daily testing and monitoring of the treatment process and by operating sludge de-watering equipment to produce a high-quality biosolids product. In summary, Wastewater Division employees undertake the following tasks:
• Provide for the operation and maintenance of the City’s Wastewater Treatment Plant as well as the care and upkeep of twenty lift stations.
• Conduct daily testing and monitoring to ensure the treatment processes are working properly and efficiently and make any necessary changes to operations.
• Dispose of all treatment process by-products in a safe and cost-effective manner.
• Maintain records on the amount of wastewater treated and the quality of water discharged into the Fox River and report this information to the Illinois Environmental Protection Agency in compliance with NPDES permits.
Cleaning and inspection of SBR Basin Operational SBR Basin at WWTP
268
Public Works Wastewater Division – Organizational Chart
Treatment
Operations Manager
Russell Ruzicka
Wastewater
Superintendent
Russell Adams
Mechanic
Kevin Beggs
Wastewater Operator
II
Tim Hendrickson
Wastewater Operator
II
Daniel Duffy
Wastewater Operator
II
Bryan Thome
Wastewater Operator
I
Greg Oliver
Maintenance Worker
David Fees
Wastewater Operator
I
Adam Cashmore
269
Public Works Wastewater Division – FY23/24 Accomplishments
• In FY23/24, the Wastewater Division continued to maintain compliance with the City NPDES permits.
• In 2023, the Wastewater Division treated over 1.017 BILLION gallons of wastewater.
• In 2023, Wastewater Division personnel responded to 138 emergency callouts. Quickly responding to and resolving these events prevents adverse incidents such as overflows, backups, or bypasses from occurring.
• The City of McHenry’s current NPDES discharge permit went into effect on July 1st, 2021. Included in this permit was a future discharge limit of 0.50 mg/L for Total Phosphorous. The new limit takes effect in 2030. Wastewater Division personnel began implementing process changes in 2023 to further reduce Phosphorous concentrations in treated effluent. In 2023, the average Total Phosphorous in the treated effluent was 0.43 mg/L.
• The Wastewater Division added another licensed operator to its roster. Adam Cashmore (IEPA Class 3) was hired in June to fill a vacant position.
• In 2023, the Wastewater Division continued its partnership with Dahm Enterprises, Inc. to land-apply the Class A, Exceptional Quality (EQ) biosolids produced at the facility. This has allowed the Division to put its dried biosolids to beneficial use while simultaneously reducing disposal costs.
270
Public Works Wastewater Division – FY24/25 Goals & Objectives
• Continue to meet or exceed the NPDES permit requirements and regulations as set forth by the Illinois Environmental Protection Agency.
• Operate treatment plants and lift stations in a manner which minimizes the potential for a sanitary sewer overflow.
• Continue to analyze ways to maintain a high level of service and performance while minimizing operating costs.
• Optimize the Phosphorous removal process to achieve a twelve-month average discharge concentration below 0.40 mg/L. Building on the progress that has already been made, staff will continue to monitor the treatment process and identify ways to further optimize the treatment process to meet this goal.
• Promote individual advancement and certification through training opportunities for operations and maintenance personnel in the Wastewater division.
• Oversee the rebuild of the main drives on all four secondary clarifiers while minimizing disruptions of the treatment process.
• Complete Freund Lift Station mechanical improvements.
• Provide for the replacement of two failed air conditioning systems at the treatment plant which protect sensitive electrical components from overheating.
Belt Press at WWTP. Disk Filters at WWTP.
271
Public Works Wastewater Div. – FY24/25 Performance Measures
Performance Item Performance Goal Performance Measure FY24/25 Proposed Outcome(s) Compliance with all NPDES Permits issued by the IEPA 100% Compliance with all permits at all times Annual inspection/evaluation and monthly reports Satisfactory annual inspection/report and no violations on monthly reports
Phosphorous Optimization Reduce effluent Phosphorous concentrations to a level compliant with future limits.
Achieve a twelve-month average effluent concentration of 0.40 mg/L or lower.
Achieve effluent phosphorous levels below our current twelve-month average of 0.43 mg/L
Lift Stations Reduction in number of off hours call-outs Track number of callouts to each lift station Reduce overtime costs
Safety Reduce lost time hours due to work related injuries Continued safety training 0 lost time days due to work related injuries
Sanitary Sewer Overflows (SSO’s) Prevent sanitary sewer overflows Operate Acti-flo storm clarifier at the correct capacity No sanitary sewer overflows
Certification Grow the knowledge of the operations team through certification. Increase the number of licensed plant staff. Select one employee to send to training; pass IEPA wastewater license exam.
272
Public Works Utility Division – Overview
Public Works Utility Division Mission It is the mission of the Utility Division to provide the highest level of customer service to its residents and consumers. Maintaining the water distribution, sanitary sewer collection systems and storm sewer system to peak performance will continue to ensure reliable services to City of McHenry’s residents and businesses. This will enhance public safety within the community. The Utility Division maintains and repairs all water mains, valves, fire hydrants, and "buffalo" boxes which are all part of the water distribution system. Another one of its duties is to maintain, clean, and televise the sanitary sewer collection system. The Division also maintains and repairs the storm sewer system. The Utility Division also serves an emergency response role for winter snow plowing operations, after-hours water main breaks, and after-hours sanitary sewer backups. In summary, employees undertake the following tasks:
• Maintenance of the City sanitary sewer collection system.
• Maintenance of the City water distribution system.
• Maintenance of the City owned storm water infrastructure.
• Support of winter operations.
• Emergency response for after-hours utility emergencies.
273
Public Works Utility Division – Organizational Chart In May of 2020, the Public Works Department combined the Street Division and the Utility Division. Combining the two divisions into one was done to further utilize city personnel for daily operations. Street-related operations are solely funded through the General Fund while Utility-related operations are funded through both the Water/Sewer Fund and General Fund. For personnel organizational chart, please refer to the organizational chart included in the Public Works Street Division annual budget section. The equivalent of 8 FTE’s from the Utility Division are funded out of the Water/Sewer Fund.
274
Public Works Utility Division - FY23/24 Accomplishments
• Flushed all the City’s fire hydrants for spring and fall hydrant flushing programs.
• Cleaned and televised over 102,000 feet of sanitary main.
• Repaired 13 water main breaks.
• Repaired 9 water services.
• Responded to multiple possible sanitary sewer backups.
• Cleaned and televised the storm sewer system in advance of the 2024 Road Resurfacing Program.
• Repaired and rehabilitated storm sewer structures in advance of the 2024 Road Resurfacing Program.
• Assisted with the ADA ramps for 2024 Road Resurfacing Program.
• Completed 100% of water service material survey for IEPA lead service inventory.
• Continued the annual Sewer Lining Program.
• Cleaned 25% of all City storm sewer catch basins.
• Completed Year 2 of the 3-year contracted hydrant painting program.
275
Public Works Utility Division – FY24/25 Goals & Objectives
• Continue to keep the sanitary collection system well maintained, which includes cleaning and televising the entire collection system on regularly scheduled intervals.
• Reduce inflow and infiltration in the collection system through the Capital Improvement Program which includes the sanitary sewer main and sewer manhole rehabilitation programs. Replace old style manhole covers with “new” sealed covers.
• Perform annual routing maintenance of the water distribution system through the annual water valve maintenance program, annual hydrant painting program, spring and fall hydrant flushing programs and the water main replacement program through the Community Investment Plan.
• Continue ongoing mapping of the storm sewer system in the City GIS database.
• Management of Sewer Lining Program.
• Submit final lead water service inventory to IEPA.
276
Public Works Utility Division – FY24/25 Performance Measures
Performance Item Performance Goal Performance Measure FY24/25 Proposed Outcome(s) Clean & televise sanitary sewer collection system 100,000 lineal ft/year Lineal ft/year Clean & televise 100,000 lineal ft/year
Hydrant Flushing Complete spring and fall hydrant flushing programs Flush all hydrants spring and fall Completion of spring and fall flushing programs
Water Distribution System Maintenance Hydrant Painting & Valve Exercising Number of hydrants painted; number of valves exercised 20% of hydrants painted & 20% of valves exercised annually
Storm sewer mapping Locate and shoot structures Amount of storm sewer structures shot on GIS Complete mapping of the storm sewer system
277
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16
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18
19
20
21
22
23
24
25
A B O Q S T U V W X
Account Account FY20/21 FY21/22 FY22/23 FY23/24 FY23/24 FY24/25
Number Description Actual Actual Actual Budget Estimated Proposed
3180 Grants 95,556 - - - - - - #DIV/0!
3200 Interest Income - - - 100,000 - 50,000 (50,000) -50.00%
3220 CD Interest 1,043 496 1,440 - 2,500 - - #DIV/0!
3240 IL Fund Interest 2,728 1,524 50,706 - 72,250 - - #DIV/0!
3610 Sales 2,211,341 2,481,440 2,442,323 2,437,500 2,360,920 2,477,597 40,097 1.65%
3615 Base Charge - Capital 127,408 330,058 544,754 520,000 561,109 550,000 30,000 5.77%
3620 Penalties 53,013 100,772 75,360 85,000 40,125 85,000 - 0.00%
3630 Hookup/Connection Fees 34,250 23,250 8,250 10,000 7,500 10,000 - 0.00%
3640 Water Meter Sales 37,025 52,107 20,650 10,000 15,750 10,000 - 0.00%
3821 Donated Public Improvements 2,334,210 1,096,340 - - - - - #DIV/0!
3836 Gain/Loss on Sale 3,500 - 6,000 - - - - #DIV/0!
3845 Rental Income 30,000 30,000 25,697 30,000 26,000 30,000 - 0.00%
3882 Miscellaneous Reimbursement - - 632 - 8,572 - - #DIV/0!
3890 Miscellaneous Income 2,230 4,504 27,694 5,000 3,107 5,000 - 0.00%
3920 Proceeds from Fixed Asset Sale - - - - - - - #DIV/0!
3991 Transfer from Marina Fund - - - - - - - #DIV/0!
TOTAL REVENUES 4,932,304 4,120,491 3,203,506 3,197,500 3,097,833 3,217,597 20,097 0.63%
TOTAL OPERATING REVENUES
2,270,355 2,588,736 2,597,523 2,627,500 2,478,902 2,617,597
REVENUES
Variance
($)
Variance
(%)
Water and Sewer Fund Summary (Fund 510, Department 31 Water)
278
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2
3
4
A B O Q S T U V W X
Account Account FY20/21 FY21/22 FY22/23 FY23/24 FY23/24 FY24/25
Number Description Actual Actual Actual Budget Estimated Proposed
Variance
($)
Variance
(%)
Water and Sewer Fund Summary (Fund 510, Department 31 Water)
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
Salaries/Benefits
4010 Salaries - Regular 480,830 406,260 404,638 417,023 406,977 445,796 28,773 6.90%
4050 Overtime - Regular 28,196 24,486 26,736 34,000 29,283 34,000 - 0.00%
4110 Salaries - Seasonal - 4,422 1,160 7,500 6,264 7,500 - 0.00%
4310 Health Insurance 122,890 104,856 87,526 51,757 93,937 52,695 938 1.81%
4320 Dental Insurance 865 - 224 244 301 233 (11) -4.51%
4330 Life Insurance 198 286 363 374 227 230 (144) -38.50%
4340 Vision Insurance 109 - 42 44 41 43 (1) -2.27%
4410 FICA 39,687 33,124 32,868 35,077 35,083 37,278 2,201 6.27%
4420 IMRF (660) - 110,539 44,110 42,742 46,012 1,902 4.31%
4510 Uniforms 1,526 1,733 1,938 2,250 1,448 2,250 - 0.00%
TOTAL SALARIES/BENEFITS 673,641 575,167 666,034 592,379 616,303 626,037 33,658 5.68%
Contractual Services
5110 Contractual 113,324 110,114 100,696 140,000 73,378 154,500 14,500 10.36%
5310 Postage & Meter 3 2,612 141 1,000 134 1,000 - 0.00%
5320 Telephone - - - - - - - #DIV/0!
5370 Repair & Maintenance 5,988 1,979 1,097 4,000 3,959 4,000 - 0.00%
5410 Dues 764 694 821 1,500 1,530 2,000 500 33.33%
5430 Training 383 2,356 579 1,500 694 1,500 - 0.00%
5440 Tuition Reimbursement - - - - - - - #DIV/0!
5510 Utilities 135,066 147,741 123,122 110,000 156,512 135,000 25,000 22.73%
TOTAL CONTRACTUAL SERVICES 255,528 265,496 226,456 258,000 236,207 298,000 40,000 15.50%
Supplies
6110 Materials and Supplies 150,546 235,298 242,473 250,000 289,870 270,000 20,000 8.00%
6210 Office Supplies 615 500 564 500 286 500 - 0.00%
6250 Gasoline & Oil 5,618 5,584 6,332 7,000 6,480 7,000 - 0.00%
6270 Small Equipment & Tools 999 995 292 1,000 953 1,000 - 0.00%
6940 Administrative Expenses 1,462 731 925 - 422 - - #DIV/0!
TOTAL SUPPLIES 159,240 243,108 250,586 258,500 298,011 278,500 20,000 7.74%
EXPENDITURES
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4
A B O Q S T U V W X
Account Account FY20/21 FY21/22 FY22/23 FY23/24 FY23/24 FY24/25
Number Description Actual Actual Actual Budget Estimated Proposed
Variance
($)
Variance
(%)
Water and Sewer Fund Summary (Fund 510, Department 31 Water)
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
Other
7091 Debt Service - Accrued Interest (750) (788) (788) - (788) - - #DIV/0!
7100 Principal Payment - - - 110,000 - 115,000 5,000 4.55%
7200 Bond Interest 38,508 36,508 34,408 32,308 32,308 29,998 (2,310) -7.15%
7300 Fees - Paying Agent 311 311 311 350 311 350 - 0.00%
8300 Capital - Equipment - - - - - - - #DIV/0!
8500 Capital - Utility System - 66,942 - - - - - #DIV/0!
9000 Amortization - Bond Issue Costs - - - - - - - #DIV/0!
9100 Amortization - Bond Discount (46,517) (512) (512) - (512) - - #DIV/0!
9510 Depreciation Expense 588,751 631,243 647,212 650,000 649,000 650,000 - 0.00%
9605 OPEB Expense 4,831 (16,959) 62,431 - - - - #DIV/0!
9606 OPEB Contributions (5,906) (8,492) (9,774) - - - - #DIV/0!
9904 Transfer to Debt Service 98,152 96,499 97,835 99,112 99,112 98,735 (377) -0.38%
9920 Purchase of Service - MCMRMA 64,895 64,895 82,941 101,543 101,543 101,543 - 0.00%
9921 Purchase of Service - Billing 245,048 245,048 245,048 245,048 245,048 245,048 - 0.00%
9922 Purchase of Service - IT 26,258 27,778 28,357 33,188 33,188 38,488 5,300 15.97%
9923 Purchase of Service - Audit 4,863 5,035 5,750 5,399 5,399 6,000 601 11.13%
9930 Water/Sewer Transfer 625,101 720,385 731,578 750,041 750,041 736,092 (13,949) -1.86%
9930 Water/Sewer Transfer - Utility Capital - - - - - - - #DIV/0!
TOTAL OTHER 1,643,545 1,867,893 1,924,797 2,026,989 1,914,650 2,021,254 (5,735) -0.28%
TOTAL OPERATING EXPENDITURES 2,143,203 2,320,421 2,420,661 2,485,868 2,416,171 2,573,791 87,923 3.54%
TOTAL EXPENDITURES 2,731,954 2,951,664 3,067,873 3,135,868 3,065,171 3,223,791 87,923 2.80%
280
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3
4
5
6
7
8
9
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11
12
13
14
15
16
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19
20
21
22
23
24
A B N P R S T U V W
Account Account FY20/21 FY21/22 FY22/23 FY23/24 FY23/24 FY24/25
Number Description Actual Actual Actual Budget Estimated Proposed
3180 Grants 525,000 - - - - - - #DIV/0!
3200 Interest Income - - - 100,000 - 50,000 (50,000) -50.00%
3220 CD Interest 1,043 496 1,440 - 2,500 - - #DIV/0!
3240 IL Fund Interest 2,728 1,524 50,706 - 72,250 - - #DIV/0!
3610 Sales 2,704,124 2,901,088 2,872,692 2,981,836 2,986,740 3,120,320 138,484 4.64%
3615 Base Charge - Capital 276,036 388,515 510,811 500,000 522,597 520,000 20,000 4.00%
3620 Penalties 45,137 72,724 58,783 65,000 37,136 65,000 - 0.00%
3630 Hookup/Connection Fees 46,137 23,750 7,500 10,000 7,500 10,000 - 0.00%
3660 Debt Service Fee 421,409 424,643 432,360 425,000 440,631 430,000 5,000 1.18%
3665 Debt Service - IEPA Loan 2,245,661 2,081,334 1,913,864 1,884,000 1,963,407 1,950,000 66,000 3.50%
3821 Donated Public Improvements 1,745,000 1,357,882 - - - - - #DIV/0!
3836 Gain/Loss on Sale (1,242,786) 32,760 - - - - - #DIV/0!
3890 Miscellaneous Income 4,580 12,289 755 1,000 3,095 1,000 - 0.00%
3915 Bond Interest Rebate 7,254 25,082 - - - - - #DIV/0!
3981 Transfer - Capital Development 16,776 - - - - - - #DIV/0!
TOTAL REVENUES 6,798,099 7,322,087 5,848,911 5,966,836 6,035,856 6,146,320 179,484 3.01%
TOTAL OPERATING REVENUES
3,711,275 3,437,846 3,416,736 3,572,836 3,542,352 3,666,320 93,484 2.62%
REVENUES
Variance ($)
Variance
(%)
Water and Sewer Fund Summary (Fund 510, Department 32 Sewer)
281
1
2
3
4
A B N P R S T U V W
Account Account FY20/21 FY21/22 FY22/23 FY23/24 FY23/24 FY24/25
Number Description Actual Actual Actual Budget Estimated Proposed Variance ($)
Variance
(%)
Water and Sewer Fund Summary (Fund 510, Department 32 Sewer)
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
Salaries/Benefits
4010 Salaries - Regular 693,097 695,642 746,111 797,577 757,873 804,194 6,617 0.83%
4050 Overtime - Regular 31,742 33,190 39,642 40,000 33,620 40,000 - 0.00%
4110 Salaries - Seasonal - 4,507 5,184 7,500 5,888 7,500 - 0.00%
4310 Health Insurance 203,936 203,427 238,654 282,069 264,652 286,902 4,833 1.71%
4320 Dental Insurance 850 1,109 1,357 1,520 1,438 1,431 (89) -5.86%
4330 Life Insurance 323 428 546 697 403 434 (263) -37.73%
4340 Vision Insurance 154 177 149 162 144 153 (9) -5.56%
4410 FICA 55,382 55,959 60,386 64,648 63,033 65,155 507 0.78%
4420 IMRF 7,121 - 203,295 81,915 78,221 80,958 (957) -1.17%
4510 Uniforms 9,075 9,481 10,699 11,775 11,239 13,025 1,250 10.62%
TOTAL SALARIES/BENEFITS 1,001,680 1,003,920 1,306,023 1,287,863 1,216,511 1,299,752 11,889 0.92%
Contractual Services
5110 Contractual 162,611 156,784 168,756 180,000 143,171 180,000 - 0.00%
5310 Postage & Meter 74 23 31 200 132 200 - 0.00%
5320 Telephone - - - - - - - #DIV/0!
5370 Repair & Maintenance 25,314 6,654 31,610 15,000 19,064 18,000 3,000 20.00%
5375 Repair & Maintenance - Equipment 96,617 66,423 132,686 115,000 170,181 175,000 60,000 52.17%
5380 Repair & Maintenance - Utility System 71,460 42,027 73,475 75,000 86,893 75,000 - 0.00%
5410 Dues 1,139 335 580 600 470 600 - 0.00%
5430 Training 1,444 1,295 631 1,250 196 1,000 (250) -20.00%
5440 Tuition Reimbursement 409 514 575 600 - 600 - 0.00%
5450 Publications - - - - - - - #DIV/0!
5510 Utilities 333,041 313,241 293,882 325,000 354,136 325,000 - 0.00%
5580 Sludge Disposal 50,307 87,415 27,118 80,000 45,800 80,000 - 0.00%
TOTAL CONTRACTUAL SERVICES 742,416 674,711 729,344 792,650 820,043 855,400 62,750 7.92%
EXPENDITURES
282
1
2
3
4
A B N P R S T U V W
Account Account FY20/21 FY21/22 FY22/23 FY23/24 FY23/24 FY24/25
Number Description Actual Actual Actual Budget Estimated Proposed Variance ($)
Variance
(%)
Water and Sewer Fund Summary (Fund 510, Department 32 Sewer)
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
Supplies
6110 Materials and Supplies 192,982 198,177 240,235 303,000 349,700 348,500 45,500 15.02%
6210 Office Supplies 610 750 968 750 225 750 - 0.00%
6270 Small Equipment & Tools - - 1,031 1,000 1,019 1,000 - 0.00%
6250 Gasoline & Oil 17,453 28,823 31,431 30,000 29,498 30,000 - 0.00%
TOTAL SUPPLIES 211,045 227,750 273,665 334,750 380,442 380,250 45,500 13.59%
Other
6940 Administrative Expenses 2,150 1,585 2,086 - 1,004 - - #DIV/0!
7091 Debt Service - Accrued Interest (23,398) (12,254) (15,173) - (16,000) - - #DIV/0!
7100 Principal Payment - - - 285,000 - 300,000 15,000 5.26%
7200 Bond Interest 163,953 118,958 104,200 93,600 93,600 82,200 (11,400) -12.18%
7300 Fees - Paying Agent 1,093 750 750 750 750 750 - 0.00%
7400 Bond Issuance Costs 35,270 - - - - - - #DIV/0!
7450 Bond Discount Expense 18,776 - - - - - - #DIV/0!
7605 IEPA Loan Principal - - - 1,561,149 - 1,590,322 29,173 1.87%
7600 IEPA Loan Interest 564,003 534,492 518,829 490,192 490,192 461,019 (29,173) -5.95%
8300 Capital - Equipment - - - - - - - #DIV/0!
8500 Capital - Utility System 397,472 293,685 26,504 - - - - #DIV/0!
9000 Amortization - Bond Issue Costs - - - - - - - #DIV/0!
9100 Amortization - Bond Discount 7,225 (46,005) (46,005) - (46,005) - - #DIV/0!
9510 Depreciation Expense 1,704,349 2,133,432 2,157,391 2,100,000 2,167,000 2,200,000 100,000 4.76%
9605 OPEB Expense 4,831 (16,959) 62,431 - - - - #DIV/0!
9606 OPEB Contributions (5,906) (8,492) (9,774) - - - - #DIV/0!
9904 Transfer to Debt Service 12,475 12,264 12,434 12,596 12,596 12,548 (48) -0.38%
9920 Purchase of Service - MCMRMA 86,695 86,695 110,863 135,728 135,728 135,728 - 0.00%
9921 Purchase of Service - Billing 261,238 261,238 261,238 261,238 261,238 261,238 - 0.00%
9922 Purchase of Service - IT 22,009 23,221 22,736 26,393 26,393 30,403 4,010 15.19%
9923 Purchase of Service - Audit 4,863 5,035 5,750 5,399 5,399 6,000 601 11.13%
9930 Water/Sewer Transfer 421,309 296,916 301,622 307,829 307,829 297,687 (10,142) -3.29%
9930 Water/Sewer Transfer - Utility Capital - - - - - - - #DIV/0!
9936 Transfer to Utility Improvement Fund - 6,250 - - - - - #DIV/0!
TOTAL OTHER 3,678,407 3,690,811 3,515,882 5,279,874 3,439,724 5,377,895 98,021 1.86%
TOTAL OPERATING EXPENDITURES 3,365,196 2,923,018 3,148,694 3,543,796 3,199,528 3,661,956 118,160 3.33%
TOTAL EXPENDITURES 5,633,548 5,597,192 5,824,914 7,695,137 5,856,720 7,913,297 218,160 2.84%
283
1
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
29
30
31
32
33
34
35
36
37
38
39
40
41
42
A B O Q S T U V W X
Account Account FY20/21 FY21/22 FY22/23 FY23/24 FY23/24 FY24/25
Number Description Actual Actual Actual Budget Estimated Proposed
3890 Miscellaneous Income - - 838 - - - - #DIV/0!
3978 Transfer from Water/Sewer Fund 1,046,410 1,017,301 1,033,200 1,057,870 1,057,870 1,029,088 (28,782) -2.72%
TOTAL REVENUES 1,046,410 1,017,301 1,034,038 1,057,870 1,057,870 1,029,088 (28,782) -2.72%
Salaries/Benefits
4010 Salaries - Regular 637,269 592,670 616,004 620,829 493,759 621,360 531 0.09%
4050 Overtime - Regular 18,457 30,648 18,724 20,000 9,528 15,000 (5,000) -25.00%
4110 Salaries - Seasonal - 4,928 5,351 7,500 7,500 7,500 - 0.00%
4310 Health Insurance 201,041 203,668 207,787 218,308 191,397 221,931 3,623 1.66%
4320 Dental Insurance 1,018 1,097 1,134 1,316 475 1,198 (118) -8.97%
4330 Life Insurance 323 457 568 581 353 357 (224) -38.55%
4340 Vision Insurance 74 108 107 116 44 110 (6) -5.17%
4410 FICA 50,654 48,337 49,333 49,597 44,879 49,255 (342) -0.69%
4420 IMRF 7,151 (21,127) 165,466 71,773 52,151 61,027 (10,746) -14.97%
4510 Uniforms 3,130 3,473 3,229 3,000 2,990 3,000 - 0.00%
TOTAL SALARIES/BENEFITS 919,117 864,259 1,067,703 993,020 803,076 980,738 (12,282) -1.24%
Contractual Services
5110 Contractual 4,010 3,773 - - - - - #DIV/0!
5310 Postage & Meter 1 - - 100 - 100 - 0.00%
5320 Telephone - - - - - - - #DIV/0!
5370 Repair & Maintenance 30,306 34,557 19,721 25,000 21,765 20,000 (5,000) -20.00%
5410 Dues 364 323 327 500 100 500 - 0.00%
5430 Training 512 1,554 61 3,000 126 1,500 (1,500) -50.00%
TOTAL CONTRACTUAL SERVICES 35,193 40,207 20,109 28,600 21,991 22,100 (6,500) -22.73%
Supplies
6110 Materials and Supplies 23,424 338 3,592 - 115 - - #DIV/0!
6210 Office Supplies 91 257 248 250 209 250 - 0.00%
6250 Gasoline & Oil 20,133 21,865 29,902 35,000 24,351 25,000 (10,000) -28.57%
6270 Small Equipment & Tools - 567 566 1,000 567 1,000 - 0.00%
TOTAL SUPPLIES 43,648 23,027 34,308 36,250 25,242 26,250 (10,000) -27.59%
TOTAL EXPENDITURES 997,958 927,493 1,122,120 1,057,870 850,309 1,029,088 (28,782)-2.72%
REVENUES
EXPENDITURES
Variance
($)
Variance
(%)
Water and Sewer Fund Summary (Fund 510, Department 35 Utility)
284
Fiscal Year 2024/2025 Annual Budget
Capital Development
Fund
285
Capital Development Fund – Overview This fund accounts for the construction, expansion and/or extension of water and wastewater systems to accommodate new development and growth in the community. Revenues are generated through capital development fees on new residential and non-residential development.
286
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
A B O Q S T U V W X
Account Account FY20/21 FY21/22 FY22/23 FY23/24 FY23/24 FY24/25
Number Description Actual Actual Actual Budget Estimated Proposed
2,756,938 3,271,079 4,366,875 4,649,925 4,649,925 4,808,203
3200 Interest 1,080 534 21,578 1,000 23,000 20,000 19,000 1900.00%
3630 Hookup/Connection Fees (31 - Water)297,365 573,689 202,585 120,000 168,614 150,000 30,000 25.00%
3630 Hookup/Connection Fees (32 - Sewer)232,472 665,323 178,700 100,000 195,621 175,000 75,000 75.00%
3837 Unrealized Gain/Loss - - 25,187 - 21,043 - - #DIV/0!
TOTAL REVENUES 530,917 1,239,546 428,050 221,000 408,278 345,000 124,000 56.11%
9936 Transfer to Utility Improvement Fund 16,776 143,750 145,000 250,000 250,000 - (250,000) -100.00%
TOTAL EXPENDITURES 16,776 143,750 145,000 250,000 250,000 - (250,000) -100.00%
NET INCREASE/(DECREASE)514,141 1,095,796 283,050 (29,000) 158,278 345,000
3,271,079 4,366,875 4,649,925 4,620,925 4,808,203 5,153,203
Capital Development - Fund Summary (Fund 550)
Beginning Fund Balance
Ending Fund Balance
REVENUES
EXPENDITURES
Variance
($)
Variance
(%)
287
Fiscal Year 2024/2025 Annual Budget
Utility
Improvements Fund
288
Utility Improvements Fund – Overview The Utility Improvements Fund was created to provide a single fund to record revenues and expenses for capital asset maintenance and replacement projects for the water and wastewater utilities as well as the expansion and/or extension of water and wastewater systems. Funding for these projects is derived primarily from transfer from the water and sewer and capital development funds. All projects for FY24/25 are budgeted in the Water and Sewer Funds, no transfers are scheduled to the Utility Improvements Fund.
289
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
A B O Q S T U V W X
Account Account FY20/21 FY21/22 FY22/23 FY23/24 FY23/24 FY24/25
Number Description Actual Actual Actual Budget Estimated Proposed
3180 Grants 175,000 - - - - - - #DIV/0!
3200 Interest 3,649 1,019 9,747 6,000 25,850 20,000 14,000 233.33%
3837 Unrealized Gain/Loss - (3,118) 27,252 - - - - #DIV/0!
3978 Transfer from Water/Sewer Fund - 6,250 - - - - - #DIV/0!
3981 Transfer from Capital Development Fund - 143,750 145,000 250,000 250,000 - (250,000) -100.00%
3994 Transfer from SSA #4 16,847 15,715 15,347 15,580 15,580 - (15,580) -100.00%
TOTAL REVENUES 195,496 163,616 197,346 271,580 291,430 20,000 (251,580) -92.64%
8500 Capital - Utility Improvement Projects - - 10,118 350,000 - - (350,000) -100.00%
TOTAL EXPENDITURES - - 10,118 350,000 - - (350,000) -100.00%
NET INCREASE/(DECREASE)195,496 163,616 187,228 (78,420) 291,430 20,000
REVENUES
EXPENDITURES
Variance
($)
Variance
(%)
Utility Improvements - Fund Summary (Fund 580)
290
Fiscal Year 2024/2025 Annual Budget
Marina Operations
Fund
291
Marina Operations Fund – Overview The City of McHenry acquired the marina in 2000 to be able to expand the Central Wastewater Treatment Plant. After the marina was acquired, it was determined that the wastewater facility could not be expanded at the existing site. At this time, the Marina Operations Fund is an enterprise fund that provides for the maintenance of a 60-slip marina on the Fox River that is being operated with the assistance of a subcontractor.
292
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
A B O Q S T U V W X
Account Account FY20/21 FY21/22 FY22/23 FY23/24 FY23/24 FY24/25
Number Description Actual Actual Actual Budget Estimated Proposed
470,430 451,310 461,281 477,322 477,322 478,770
3200 Interest 403 197 1,049 500 2,253 1,000 500 100.00%
3845 Rental Income 16,352 35,460 57,113 45,000 13,000 40,000 (5,000) -11.11%
TOTAL REVENUES 16,755 35,657 58,162 45,500 15,253 41,000 (4,500) -9.89%
5110 Contractual Services 4,996 - - 15,000 - 15,000 - 0.00%
6940 Administrative Expenses 30,879 25,686 42,121 29,000 13,805 29,000 - 0.00%
9930 Transfer to Water/Sewer Fund - - - - - - - #DIV/0!
TOTAL EXPENDITURES 35,875 25,686 42,121 44,000 13,805 44,000 - 0.00%
NET INCREASE/(DECREASE)(19,120) 9,971 16,041 1,500 1,448 (3,000)
451,310 461,281 477,322 478,822 478,770 475,770
Marina Operations - Fund Summary (Fund 590)
Beginning Fund Balance
Ending Fund Balance
REVENUES
EXPENDITURES
Variance
($)
Variance
(%)
293
Fiscal Year 2024/2025 Annual Budget
Internal Service
Funds
294
Fiscal Year 2024/2025 Annual Budget
Employee Insurance
Fund
295
Employee Insurance Fund – Overview The City of McHenry recognizes that health insurance benefits are an important component of an employee’s total compensation package. The purpose of the Employee Insurance Fund is to finance and account for expenditures incurred to provide health insurance benefits to employees. The current health insurance plan provided to employees offers a choice between a PPO (Preferred Provider Organization), an HMO (Health Maintenance Organization), and an HSA (Health Savings Account). Providing employees with a choice of plans allows for flexibility based on preference and affordability. In addition, employees receive dental and vision benefits. All IUOE 150 employees (Public Works and Parks Maintenance staff) are required to be on the IUOE 150 insurance plan as per their collective bargaining agreement.
296
1
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
A B O Q S T U V W X
Account Account FY20/21 FY21/22 FY22/23 FY23/24 FY23/24 FY24/25
Number Description Actual Actual Actual Budget Estimated Proposed
(85,783) (90,560) (93,742) (91,283) (91,283) (40,146)
3240 IL Funds Interest 70 61 2,359 2,000 3,683 2,000 - 0.00%
3653 Elective Participant Premium 215,360 217,268 168,185 195,170 136,536 144,599 (50,571) -25.91%
3831 Employee Contributions 283,282 290,172 303,192 357,926 326,937 358,559 633 0.18%
3975 Transfer from General Fund 2,331,807 2,341,073 2,513,838 2,896,073 2,633,199 2,883,583 (12,490) -0.43%
3978 Transfer from Water/Sewer Fund 514,236 514,515 532,998 584,486 566,590 610,773 26,287 4.50%
3999 Tranfer from Other Funds 46,058 53,511 43,503 89,353 51,150 99,295 9,942 11.13%
TOTAL REVENUES 3,390,813 3,416,600 3,564,075 4,125,008 3,718,095 4,098,809 (26,199) -0.64%
4310 Insurance Premiums - Health 3,067,089 3,095,181 3,228,276 3,745,991 3,343,436 3,744,581 (1,410) -0.04%
4320 Insurance Premiums - Dental 121,487 128,899 133,724 154,345 135,327 152,244 (2,101) -1.36%
4340 Insurance Premiums - Vision 20,814 23,440 23,509 25,958 23,716 25,185 (773) -2.98%
5245 Health HRA Reimbursement 185,500 171,175 175,263 163,500 163,500 164,000 500 0.31%
6960 Miscellaneous Expenses 700 1,087 844 800 979 1,000 200 25.00%
TOTAL EXPENDITURES 3,395,590 3,419,782 3,561,616 4,090,594 3,666,958 4,087,010 (3,584) -0.09%
NET INCREASE/(DECREASE)(4,777) (3,182) 2,459 34,414 51,137 11,799
(90,560) (93,742) (91,283) (56,869) (40,146) (28,347)
Employee Insurance - Fund Summary (Fund 600)
Beginning Fund Balance
Ending Fund Balance
REVENUES
EXPENDITURES
Variance
($)
Variance
(%)
297
Fiscal Year 2024/2025 Annual Budget
Risk Management
Fund
298
Risk Management Fund – Overview The purpose of the Risk Management Fund is to account for all activity related to risk management and insurance costs (other than employee health insurance) including loss control, loss prevention, risk transfer, and risk assessment. The City of McHenry is a member of the McHenry County Risk Management Agency (MCMRMA), a public entity risk pool through which property, general liability, automobile liability, crime, cyber, excess property, excess liability, and boiler and machinery coverage is provided. The relationship between the City and MCMRMA is defined through a contractual obligation approved by both the City Council and MCMRMA Executive Board. Revenues for the fund are generated by service charges to the City’s General Fund and non-General Fund operating units. The service charges to the General Fund are provided for the most part by the liability insurance portion of the property tax levy. Incidental revenues from interest earnings and reimbursements from MCMRMA are also occasionally posted to the fund.
299
1
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
29
30
31
32
A B O Q S T U V W X
Account Account FY20/21 FY21/22 FY22/23 FY23/24 FY23/24 FY24/25
Number Description Actual Actual Actual Budget Estimated Proposed
500,158 349,540 88,217 (26,189) (26,189) 46,043
3200 Interest Earnings 3 11 34 363 - - #DIV/0!
3847 MCMRMA Refund - - - - - - #DIV/0!
3884 Reimb-Property Damage 25,855 195 35,565 25,000 64,032 25,000 - 0.00%
3885 Property Damage Reimbursements - 332,874 - - - - - #DIV/0!
3970 Charges for Services 715,175 718,291 918,502 1,124,503 1,124,503 1,129,320 4,817 0.43%
3975 Transfer from General Fund - - - - - - - #DIV/0!
3978 Transfer from Water/Sewer Fund - - - - - - - #DIV/0!
Transfer from IT Fund (need new acct #)- - - - - - - #DIV/0!
3890 Misc. Income - - - - - - #DIV/0!
TOTAL REVENUES 741,033 1,051,371 954,101 1,149,503 1,188,898 1,154,320 4,817 0.42%
5950 Insurance Premium - MCMRMA 842,789 855,514 932,886 1,100,000 1,005,849 1,100,000 - 0.00%
5960 Insurance Premium - Other - - 3,381 5,000 14,389 5,000 - 0.00%
5980 Property Damage 19,292 432,004 30,416 20,000 72,345 20,000 - 0.00%
6940 Administrative Expense 1,075 2,673 2,365 2,000 1,580 2,000 - 0.00%
6960 Misc. Expense 3,000 - - - - - - #DIV/0!
9901 Transfer General Fund - - 76,956 - - - - #DIV/0!
9921 Purchase of Service - GF 25,495 22,503 22,503 22,503 22,503 22,503 - 0.00%
TOTAL EXPENDITURES 891,651 1,312,694 1,068,507 1,149,503 1,116,666 1,149,503 - 0.00%
NET INCREASE/(DECREASE)(150,618) (261,323) (114,406) - 72,232 4,817
349,540 88,217 (26,189) (26,189) 46,043 50,860
Risk Management - Fund Summary (Fund 610)
Beginning Fund Balance
Ending Fund Balance
REVENUES
EXPENDITURES
Variance
($)
Variance
(%)
300
Fiscal Year 2024/2025 Annual Budget
Information
Technology Fund
301
Information Technology Fund – Overview The I.T. Division (located within the Police Department) purchases, operates, maintains, repairs and replaces all information technology related-programs, systems, software and hardware across the City organization. The mission of the Information Technology Division is to provide the most innovate, highest quality, technology-based services in a cost-effective manner and to facilitate the achievement of the goals and objectives of each of the City’s operating departments. Information Technology Fund revenues are derived from transfers from the City’s operating departments, and expenses are related to the direct provision of technology services by the Division’s three staff members and for the replacement of equipment and software throughout the municipality.
302
Information Technology - Organizational Chart
Information Technologies ManagerAaron Greve
Information Technologies (I.T.) SpecialistMichael Hodge Information Technologies (I.T.) SpecialistMichael Wood
303
1
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
29
30
31
32
33
34
35
36
A B O Q S T U V W X
Account Account FY20/21 FY21/22 FY22/23 FY23/24 FY23/24 FY24/25
Number Description Actual Actual Actual Budget Estimated Proposed
226,346 390,786 433,004 466,953 466,953 556,327
3200 Interest Earnings 35 64 1,295 3,000 1,819 2,000 (1,000) -33.33%
3882 Miscellaneous Reimbursement 57,266 - 2,250 - 2,714 - - #DIV/0!
3970 Charges for Services 815,380 872,231 1,073,338 1,290,988 1,290,988 1,529,728 238,740 18.49%
3975 Transfer from General Fund - - - - - - - #DIV/0!
3978 Transfer from Water/Sewer Fund - - - - - - - #DIV/0!
TOTAL REVENUES 872,681 872,295 1,076,883 1,293,988 1,295,521 1,531,728 237,740 18.37%
Salaries/Benefits
4010 Salaries 158,902 160,214 221,138 269,845 274,986 279,738 9,893 3.67%
4050 Overtime - Regular - - - - - - - #DIV/0!
4310 Health Insurance 51,160 51,159 48,594 63,565 66,327 74,062 10,497 16.51%
4320 Dental Insurance 2,039 2,194 2,112 2,627 2,783 2,862 235 8.95%
4330 Life Insurance 81 114 152 249 151 153 (96) -38.55%
4340 Vision Insurance 147 217 221 318 289 305 (13) -4.09%
4410 FICA Medicare 11,122 11,398 15,648 20,643 19,276 21,400 757 3.67%
4420 IMRF Retirement 1,983 (21,664) 57,014 26,391 25,293 26,827 436 1.65%
4510 Uniform Allowance 896 815 787 1,500 622 1,500 - 0.00%
TOTAL SALARIES/BENEFITS 226,330 204,447 345,666 385,138 389,727 406,847 21,709 5.64%
Contractual Services
5110 Contractual 254,325 286,953 431,061 578,731 558,643 727,724 148,993 25.74%
5320 Telephone 45,334 44,580 46,717 50,000 42,143 58,500 8,500 17.00%
5410 Dues 300 300 300 600 300 600 - 0.00%
5420 Travel Expense - 226 385 4,500 100 4,500 - 0.00%
5430 Training 45 7,395 125 8,000 125 8,000 - 0.00%
5440 Tuition Reimbursement - - - - - 3,000 3,000 #DIV/0!
TOTAL CONTRACTUAL SERVICES 300,004 339,454 478,588 641,831 601,311 802,324 160,493 25.01%
Information Technology - Fund Summary (Fund 620)
Beginning Fund Balance (Cash & Cash Equivalents)
REVENUES
EXPENDITURES
Variance
($)
Variance
(%)
304
1
2
3
4
A B O Q S T U V W X
Account Account FY20/21 FY21/22 FY22/23 FY23/24 FY23/24 FY24/25
Number Description Actual Actual Actual Budget Estimated Proposed
Information Technology - Fund Summary (Fund 620)
Variance
($)
Variance
(%)
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
Supplies
6110 Materials and Supplies 9,087 5,643 4,906 29,950 22,913 22,125 (7,825) -26.13%
6210 Office Supplies 785 1,996 2,113 2,500 778 3,200 700 28.00%
6270 Small Equipment 9,840 13,770 5,724 21,550 20,735 23,450 1,900 8.82%
TOTAL SUPPLIES 19,712 21,409 12,743 54,000 44,426 48,775 (5,225) -9.68%
Other
9510 Depreciation 46,312 48,637 52,939 50,000 53,000 55,000 5,000 10.00%
9605 OPEB Expense 578 11,462 3,820 - - - - #DIV/0!
9606 OPEB Contributions (705) (2,425) (2,275) - - - - #DIV/0!
9920 Purchase of Services - Risk Management 6,857 6,857 8,726 10,683 10,683 10,683 - 0.00%
TOTAL OTHER 53,042 64,531 63,210 60,683 63,683 65,683 5,000 8.24%
Capital Outlay
8300 Capital - Equipment 25,569 225,350 106,965 228,500 160,000 261,100 32,600 14.27%
TOTAL CAPITAL OUTLAY 25,569 225,350 106,965 228,500 160,000 261,100 32,600 14.27%
TOTAL EXPENDITURES 624,657 855,191 1,007,172 1,370,152 1,259,147 1,584,729 214,577 15.66%
NET INCREASE/(DECREASE)248,024 17,104 69,711 (76,164) 36,374 (53,001)
390,786 433,004 466,953 440,789 556,327 558,326 Ending Fund Balance (Cash & Cash Equivalents)
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Fiscal Year 2024/2025 Annual Budget
Fiduciary Funds
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Fiscal Year 2024/2025 Annual Budget
Employee Flexible
Spending Fund
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Employee Flexible Spending Fund – Overview The Employee Flexible spending account is used to account for employee pre-tax medical spending accounts that are offered as a benefit to City employees. Under the Internal Revenue Service (IRS) rules and regulations, employees can set aside money for certain medical benefits on a pre-tax basis. These benefits include medical expenses not covered under the employee’s health insurance plan. When allowable medical costs are paid by the employee, the employee can be reimbursed from their flexible spending account. Depending on the tax bracket of the employee and the extent of utilization, an employee could potentially save several hundred dollars through medical and dependent care flexible spending deductions.
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A B O Q S T U V W X
Account Account FY20/21 FY21/22 FY22/23 FY23/24 FY23/24 FY24/25
Number Description Actual Actual Actual Budget Estimated Proposed
14,647 9,363 13,332 16,062 16,062 18,698
3831 Employee Contributions 41,434 41,234 45,524 45,000 48,148 45,000 - 0.00%
3882 Reimbursement - Miscellaneous 48 147 731 - - - - #DIV/0!
TOTAL REVENUES 41,482 41,381 46,255 45,000 48,148 45,000 - 0.00%
6940 Administrative Expenses 2,130 1,816 1,405 2,500 185 2,000 (500) -20.00%
6965 Medical Reimbursements 44,636 35,596 42,121 42,500 45,327 43,000 500 1.18%
9999 Revenue/Expense Closing (5,284) 3,969 2,730 - 2,636 - - #DIV/0!
TOTAL EXPENDITURES 41,482 41,381 46,256 45,000 48,148 45,000 - 0.00%
9,363 13,332 16,062 16,062 18,698 18,698
Employee Flex - Fund Summary (Fund 700)
Beginning Fund Balance
Ending Fund Balance
REVENUES
EXPENDITURES
Variance
($)
Variance
(%)
309
Fiscal Year 2024/2025 Annual Budget
Development Escrow
Fund
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Development Escrow Fund – Overview The Development Escrow Fund is a fiduciary fund used to account for assets held by the City in a trustee capacity or as an agent for individuals, private organizations, and other governments or funds. The Development Escrow Fund holds funds deposited by developers until such time as certain improvements are completed or in lieu of developer provided improvements. These funds are custodial in nature and do not involve measurement of results of operations.
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A B O Q S T U V W X
Account Account FY20/21 FY21/22 FY22/23 FY23/24 FY23/24 FY24/25
Number Description Actual Actual Actual Budget Estimated Proposed
6,830 6,830 6,830 6,854 6,854 6,878
3210 Interest Earnings - 1 24 - 24 - - #DIV/0!
3760 Received from Developers - - - - - - - #DIV/0!
TOTAL REVENUES - 1 24 - 24 - #DIV/0!
6961 Miscellaneous Refunds - - - - - - - #DIV/0!
9942 Transfer to Capital Improvements Fund - - - - - - - #DIV/0!
9999 Revenue/Expense Closing - 1 - - - - - #DIV/0!
TOTAL EXPENDITURES - 1 - - - - - #DIV/0!
NET INCREASE/(DECREASE)- - 24 - 24 -
6,830 6,830 6,854 6,854 6,878 6,878
Developmental Escrow - Fund Summary (Fund 720)
Beginning Fund Balance
Ending Fund Balance
REVENUES
EXPENDITURES
Variance
($)
Variance
(%)
312
Fiscal Year 2024/2025 Annual Budget
Retained Personnel
Fund
313
Retained Personnel Fund – Overview The Retained Personnel Fund is used to account for funds collected as reimbursement and expended for professional and technical services used to assist or advise the City in connection with land development. The City’s retained personnel costs included engineering, legal, planning, and other technical professional matters. The City typically collects a deposit from property owners at the initiation of annexation, zoning, or other development proceedings that approximate the total retained personnel costs expected to be incurred.
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A B O Q S T U V W X
Account Account FY20/21 FY21/22 FY22/23 FY23/24 FY23/24 FY24/25
Number Description Actual Actual Actual Budget Estimated Proposed
49,204 49,204 49,204 49,204 49,204 49,204
3730 Engineering Fees 30,309 54,862 11,949 50,000 13,607 50,000 - 0.00%
3735 Legal Fees - 21,097 17,242 15,000 9,508 15,000 - 0.00%
3740 Developer Miscellaneous Fees - 4,725 - 8,000 - 8,000 - 0.00%
3750 Developer Refunds - - 5,382 2,000 - 2,000 - 0.00%
TOTAL REVENUES 30,309 80,684 34,573 75,000 23,115 75,000 - 0.00%
5220 Engineering Fees 30,309 61,828 11,949 50,000 23,005 50,000 - 0.00%
5230 Legal Fees - 18,342 17,242 15,000 - 15,000 - 0.00%
6960 Miscellaneous Fees - 514 - 8,000 110 8,000 - 0.00%
6961 Miscellaneous Refunds - - 5,382 2,000 - 2,000 - 0.00%
TOTAL EXPENDITURES 30,309 80,684 34,573 75,000 23,115 75,000 - 0.00%
NET INCREASE/(DECREASE)- - - - - -
49,204 49,204 49,204 49,204 49,204 49,204
Retained Personnel - Fund Summary (Fund 740)
Beginning Fund Balance
Ending Fund Balance
REVENUES
EXPENDITURES
Variance
($)
Variance
(%)
315
Fiscal Year 2024/2025 Annual Budget
Revolving Loan
Fund
316
Revolving Loan Fund – Overview The Revolving Loan Fund provides low interest loans to qualified existing and prospective businesses within the City of McHenry. The loan proceeds can be used to assist in the startup of a new business, expand an existing business, update existing facilities to make the business more competitive, or provide an incentive for established businesses to relocate to the City. The primary goal of the program is job creation and expansion of the sales and property tax bases. The program requires loan applicants to complete a formal application that is then reviewed by City staff and the City Council. Terms are identified/negotiated, and a recommendation is provided to the full City Council for consideration. Of note, the Revolving Loan Fund itself does not have expenditures, as the loans are originated through the City’s identified lender. Revenues are comprised of interest on the loans and interest income on available cash.
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A B O Q S T U V W X
Account Account FY20/21 FY21/22 FY22/23 FY23/24 FY23/24 FY24/25
Number Description Actual Actual Actual Budget Estimated Proposed
277,748 301,017 301,385 302,408 302,408 303,388
3210 Interest Earnings 11 32 961 1,000 980 1,000 - 0.00%
3210 Loan Interest 758 336 62 230 - - (230) -100.00%
3975 Transfer General Fund 22,500 - - - - - - #DIV/0!
TOTAL REVENUES 23,269 368 1,023 1,230 980 1,000 (230) -18.70%
5110 Contractual Services - - - - - - - #DIV/0!
TOTAL EXPENDITURES - - - - - - - #DIV/0!
NET INCREASE/(DECREASE)23,269 368 1,023 1,230 980 1,000
301,017 301,385 302,408 303,638 303,388 304,388
Revolving Loan - Fund Summary (Fund 750)
Beginning Fund Balance
Ending Fund Balance
REVENUES
EXPENDITURES
Variance
($)
Variance
(%)
318
Fiscal Year 2024/2025 Annual Budget
Police Pension
Fund
319
Police Pension Fund – Overview The Police Pension Fund accounts for retirement benefits for retired police officers and their beneficiaries through employer and employee contributions and investment earnings. The primary purpose of this non-operating budgetary unit is to finance pensions for employees thorough employer and employee contributions combined with interest earnings on those contributions. These three revenue streams, if based on sound actuarial assumptions, should generate sufficient funds for employee retirement without placing undue burden on the employer or a risk to the pension due the employee. The City’s pension plan is a defined benefit plan, meaning that regardless of investment performance, the plan is obligated to pay the defined benefit. The Police Pension plan is administered by a board of trustees. The duties of the board are to control and manage the pension fund, to enforce the collection of contributions, to hear and determine applications for pensions, to authorize payment of pensions. Financial planning and investment management are now provided by the Illinois Police Officers’ Pension Investment Fund (IPOPIF) staff and vendors. All investable assets of the Police Pension fund were transferred to IPOPIF, per the Illinois Pension Consolidation Act of 2019, in September of 2022. This act was created to allow for the pooling of assets into one larger investment fund to reduce costs through better negotiating power, access to investments that were closed to smaller local funds, and access to best-in-class investment managers at competitive pricing.
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A B O Q S T U V W X
Account Account FY20/21 FY21/22 FY22/23 FY23/24 FY23/24 FY24/25
Number Description Actual Actual Actual Budget Estimated Proposed
27,655,974 61,710,978 56,638,040 55,718,518 55,718,518 59,692,236
3210 Interest Earnings 1,199,824 3,503,502 1,326,285 1,700,000 377,985 400,000 (1,300,000) -76.47%
3830 Employer Contributions 25,650,315 655,318 621,970 671,455 669,181 703,262 31,807 4.74%
3831 Employee Contributions 904,347 494,892 491,717 490,000 520,482 525,000 35,000 7.14%
3836 Gain/Loss on Sale (94,810) (824,298) (5,542,682) - 98,213 - - #DIV/0!
3837 Unrealized Gain/Loss 8,457,610 (6,303,419) 4,572,665 - 4,729,008 - - #DIV/0!
3839 Budget Stabilization Revenue 500,000 - - - - - - #DIV/0!
3882 Miscellaneous Reimbursement - 493 16,531 - - - - #DIV/0!
TOTAL REVENUES 36,617,286 (2,473,512) 1,486,486 2,861,455 6,394,869 1,628,262 (1,233,193) -43.10%
4910 Pension Payments 1,678,791 1,768,422 1,807,854 1,832,678 1,885,732 2,056,026 223,348 12.19%
4920 Duty Disability Payments 259,310 291,764 343,378 347,500 347,647 351,622 4,122 1.19%
4930 Survivor Benefit Payments 210,606 210,606 70,933 108,177 108,176 108,177 - 0.00%
4940 Non-Duty Disability Payments 57,763 57,763 57,764 57,764 57,763 57,764 - 0.00%
4990 Contribution Refunds 234,629 100,133 - - - - - #DIV/0!
5110 Contractual Services 117,233 164,888 121,879 100,000 17,508 25,000 (75,000) -75.00%
5410 Dues - 1,325 - - - - #DIV/0!
6940 Administrative Expenses - 450 - - - - #DIV/0!
9923 Purchase of Service - Audit 3,950 4,075 4,200 4,325 4,325 4,450 125 2.89%
TOTAL EXPENDITURES 2,562,282 2,599,426 2,406,008 2,450,444 2,421,151 2,603,039 152,595 6.23%
NET INCREASE/(DECREASE)34,055,004 (5,072,938) (919,522) 411,011 3,973,718 (974,777)
61,710,978 56,638,040 55,718,518 56,129,529 59,692,236 58,717,459
Police Pension - Fund Summary (Fund 760)
Beginning Fund Balance
Ending Fund Balance
REVENUES
EXPENDITURES
Variance
($)
Variance
(%)
321
Fiscal Year 2024/2025 Annual Budget
Supplemental
Information
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Financial Policies Overview The following City financial policies, along with the approved Fund Balance and Reserve, Investment and Capital Improvement Program policies, establish the framework for McHenry’s overall fiscal planning and management.
Operating Budget and Expense Policies 1. The City shall annually adopt a balanced budget where operating revenues are equal to, or exceed, operating expenditures in each fund. 2. Beginning fund balance should only be appropriated to the extent it supports non-recurring expenditures, replaces temporary declines in revenue, or is reasonably anticipated to be offset by an increase in revenue. 3. As part of the annual budget review process, the City will project General Fund revenues and expenditures for four years beyond the budget year and compare the projected balances to the fund balance policy. This will allow the City to identify potential problems early enough to correct them. 4. The City Council shall be provided monthly actual revenues and expenditures for all funds. Any departments or divisions projected to exceed their annual spending authority for the year shall work with the City Administrator to reduce expenses. This may include a deferral of hiring and major expenses for goods and services.
Revenue Policies
1. The City shall maintain a diversified and stable revenue system to the extent provided by law to insulate it from short-term fluctuations in any one revenue source. 2. The City will not budget one-time revenue sources to fund annual operating expenditures. Such revenues will fund non-recurring activities, such as capital projects and major capital equipment purchases. 3. Grant revenues shall be pursued to provide or enhance City services. However, recurring activities shall be initiated with grant funds only if the activity can be terminated in the event grant funds are discontinued or the activity should and can be funded within recurring City revenues. 4. All non-enterprise user fees and charges will be examined annually to determine the direct and indirect cost of service recovery rate. The acceptable recovery rate and any associated changes to user fees and charges will be approved by the City Council. 5. The City will set fees and user charges for the Water and Sewer funds at a level that fully supports the total direct and indirect costs of the activity. Indirect costs include the replacement of the capital assets of the fund.
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Debt Management Policies
1. The City limits long-term debt to only those capital improvements that cannot be financed from current revenues and have an estimated useful life of at least ten years.
2. For General Obligation Debt, the City will maintain a debt to assessed valuation ratio that is 25% more stringent than the state debt limit.
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Fund Balance and Reserve Policy
Overview
• The purpose of this policy is to establish the principles and parameters to which a Fund Balance target will be defined at the beginning of each budget period. This policy is established to provide financial stability, cash flow for operations, and the assurance that the City will be able to respond to emergencies with fiscal strength.
• In the event that unexpected situations may cause the City to fall below the minimum fund balance level, certain steps will be followed to correct the deficiency, as outlined in the section below titled “Fund Balance Parameters.”
Definitions
• Fund Balance – The difference between assets and liabilities in a Governmental Fund.
• Net Position – The amount remaining after subtracting total liabilities from total assets for Proprietary Funds.
• Operating Expenditures – Total expenditures minus capital and debt service.
• Governmental Funds – Are used to account for all or most of the City’s general activities, including the collection and disbursement of restricted or committed monies (special revenue funds), the funds restricted, committed or assigned for the acquisition or construction of major capital assets (capital projects fund), and the funds restricted, committed or assigned for the servicing of general long-term debt (debt service funds). The general fund is used to account for all activities of the general government not accounted for in some other fund.
o General Fund – Accounts for all activities of the City not accounted for in another fund. The General Corporate Fund is used to account for most of the day-to-day operations of the City, which are financed from tax revenues and other general revenues. Nine (9) separate activities are accounted for within the General Fund including: Administration, Elected Officials, Community & Economic Development, Finance Department, Police Commission, Police Department, Public Works-Administration, Public Works-Streets, and Parks and Recreation.
o Special Revenue Funds – These funds are utilized to account for revenues derived from specific sources which are usually required by law or regulation to be accounted for as separate funds. For the City of McHenry these funds include the following funds, with definitions provided:
Tourism Fund – The Tourism Fund is used for the purpose of financing tourism through promotion of the City. It is derived from a 5% occupancy tax on motel and hotel receipts.
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Pageant Fund – The purpose of the Pageant Fund is to account for revenues and expenditures used to conduct the annual Miss McHenry Pageant.
Band Fund – The purpose of the Band Fund is to finance and account for expenditures incurred in the provision of summer concerts to promote culture and recreation to the community.
Civil Defense Fund – The City Defense Fund is used to fund and account for activities related to the training of personnel and the purchase and maintenance of equipment to protect and defend the City from natural disasters or man-made environmental disasters through early warning and public notification systems.
Alarm Board Fund – The purpose of this fund is to pay for the maintenance of radios, as well as the annual maintenance of the head-end equipment, in the City’s dispatch center. Revenues are derived from the monitoring of business fire alarms, which are directly connected to the dispatch center.
Audit Fund – The Audit Fund accounts for expenses incurred to complete the annual financial audit of the City.
Annexation Fund – This fund tracks funds received from negotiated annexation agreements that are intended to be used for improvements to infrastructure or City facilities.
Motor Fuel Tax Fund – The Motor Fuel Tax (MFT) Fund is to provide dedicated revenues from taxes on gasoline and diesel sales primarily to road maintenance and improvements.
Local Motor Fuel Tax Fund – The purpose of this fund is to provide dedicated revenues from $0.03 per gallon local tax on gasoline and diesel sales to fund contracted road resurfacing projects.
Developer Donation Fund – The purpose of this fund is to account for donations collected from developers on behalf of the primary and secondary school districts, fire protection district, and the City’s park system.
Tax Increment Finance Fund – The Tax Increment Finance (TIF) Fund is utilized to capture the tax increment on property taxes generated through private investment within the downtown TIF District. These funds are then reinvested into this area to undertake public improvements and/or as incentivization to spur additional private investment.
o Capital Projects Fund – Capital Projects Fund is utilized to account for financial resources to be used for the acquisition or construction of capital facilities or other major fixed assets. The following funds are identified within the Capital Projects Fund:
Recreation Center Construction Fund – The purpose of this fund is to, first, account for revenues and expenditures related to the construction of the
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recreation center facility; and, second, to account for capital expenditures specific to the completed recreation center facility.
Special Service Area #4A – The SSA#4 Fund is utilized to account for revenues and expenses associated with annual debt service for the sewer project located in the Lakewood Road Subdivision.
Capital Maintenance & Replacement Fund – The purpose of this fund is to provide dedicated revenues from electricity tax for the sole purpose of funding the maintenance and replacement of existing assets.
Capital Asset New Projects Fund – The purpose of this fund is to provide dedicated revenues from gas tax for the sole purpose of funding new capital projects.
Capital Improvements Fund – The purpose of the Capital Improvements Fund is to account for funds identified for the maintenance and construction of public infrastructure projects other than water and sewer utilities. This includes roads and public facility maintenance, improvements and/or construction.
Capital Equipment Fund – The Capital Equipment Fund is utilized to track annual expenditures of equipment replacement (e.g., vehicles, computer equipment) as identified in the 5-Year Capital Improvement Program.
o Debt Service Fund – The Debt Service Fund accounts for bonded indebtedness incurred by the City’s General Fund, including bond and interest payments.
• Enterprise Funds – Enterprise Funds are business-type funds utilized to account for operations and activities that are financed and operated in a manner similar to a private business enterprise, and where the cost of providing goods and services to the general public on a continuing basis is expected to be recovered primarily through user charges. The City has also established Enterprise Funds when it was advantageous to segregate revenues earned and expenses incurred for an operation for purposes of capital maintenance, public policy, management control, or accountability. The following funds comprise the City’s Enterprise Funds:
o Water and Sewer Fund – The Water and Sewer Fund funds the operations of the Water, Wastewater and Utility Division of the Department of Public Works whose functions are to provide a safe and reliable supply of high quality potable water and to protect public health and the environment by treating sewage to meet stringent environmental standards prior to discharge.
o Capital Development Fund – This fund accounts for the construction, expansion and/or extension of water and wastewater systems to accommodate new development and growth in the community. Revenues are generated through capital development fees on new residential and non-residential development.
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o Utility Improvements Fund – The Utility Improvements Fund is utilized for capital projects that improve or expand the capacity of the Water and Wastewater utilities.
o Marina Operations Fund – This Enterprise Fund is used to maintain a city-owned 60-slip marina on the Fox River.
• Internal Service Funds – Internal Service Funds are established to finance and account for services and/or commodities furnished by one department or agency to other departments or agencies of the city. The Internal Service Funds of the City are as follows:
o Employee Insurance Fund – The purpose of this fund is to finance and account for expenditures incurred to provide health insurance benefits to employees.
o Risk Management Fund – The Risk Management Fund accounts for all activity related to risk management and insurance costs (other than employee health insurance) including loss control, loss prevention, risk transfer, and risk assessment.
o Information Technology Fund – The IT Fund facilitates the implementation of innovative, high quality technology-based services to each of the City’s departments.
• Fiduciary Funds – These funds are used to account for resources held for the benefit of parties outside of the city. The Fiduciary Funds of the city include the following funds:
o Employee Flexible Spending Fund – Accounts for employees’ pre-tax medical spending accounts that are offered as a benefit to City employees.
o Development Escrow Fund – This fund is used to segregate developer funds held by the City to ensure the completion of specific public improvements such as sidewalks and traffic signals.
o Retained Personnel Fund – The Retained Personnel Fund accounts for funds collected as reimbursement and expended for professional and technical services used to assist or advise the City in connection with land development.
o Revolving Loan Fund – This fund accounts for activity in the Revolving Loan Program, a low-interest program for businesses and industry with the goal of job creation.
o Police Pension Fund – Accounts for retirement benefits for retired police officers and their beneficiaries through employer and employee contributions and investment earnings.
Governmental Fund Equity
• With the implementation of GASB 54, the fund balance structure for governmental funds changed as of the fiscal year ended April 30, 2012. Multiple fund balance classifications include: Non-Spendable, Restricted, and Unrestricted, with unrestricted being further broken down into: Committed, Assigned, and Unassigned.
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• Expenses that can be attained from multiple fund classifications shall be used from the most to least restrictive fund. With the discretion of the Finance Director, and with the advice and consent of the Finance and Personnel Committee, a deviation can be made from this policy if it is in the best interest of the City of McHenry.
• Fund classifications are described by the following:
o Non-Spendable Fund Balance – (1 of 2 conditions)
Amounts that are not in spendable form
Can never be spent (i.e., Inventory, Prepaid Rent)
Cannot currently be spent because of cash flow timing (i.e., Long-Term Receivables)
Amounts that are required to be maintained intact (i.e., principal of an endowment)
o Restricted
Externally enforceable legal restrictions (i.e., grants, debt proceeds, tax levies)
o Unrestricted (3 designations)
Committed – Amounts constrained for a specific purpose by a government using its highest level of decision-making authority
Must be committed prior to fiscal year-end, however, dollar amount can be decided at a later time.
Revenues reported within any given special revenue fund are considered “Committed” by the City Council in accordance with GASB Statement 54 and are intended to be used for the related purpose.
Assigned – Amounts constrained, for the intent to be used for a specific purpose by the City Administrator and Finance Director
Includes any remaining positive balances in governmental funds (other than the General Fund) that is not classified in any other fund balance category
A drawdown of the fund balance would be classified within this category
Unassigned – Remainder of the General Fund’s fund balance that is not classified in a previous category and amounts have not been expended in excess of resources available in other governmental funds
Proprietary (Enterprise/Internal Service) Fund Equity
• Proprietary funds include Enterprise and Internal Service Funds.
• Expenses that can be attained from multiple fund classifications shall be used from the most to least restrictive fund. With the discretion of the Finance Director, and with the advice and consent of the Finance and Personnel Committee, a lesser restrictive net asset classification can be used if they determine that it is in the best interest of the City.
• The net assets will be composed of three primary categories:
o Net Investment in Capital Assets – That portion of a proprietary fund’s net assets that reflects the fund’s net investment in capital assets less any amount of outstanding debt related to the purchase/acquisition of said capital assets.
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Related debt, for this purpose, includes the outstanding balances of any bonds, mortgages, notes, or other borrowings that are attributable to the acquisition, construction, or improvement of capital assets of the Government.
o Restricted Net Assets – That portion of a proprietary fund’s net assets that are subject to external enforceable legal restrictions (e.g., grantor, contributor and bond covenants).
o Unrestricted Net Assets – That portion of a proprietary fund’s net assets that is neither restricted nor invested in capital assets (net of related debt).
Fund Balance Parameters (By Fund)
• It is the City’s philosophy to support long-term financial strategies, where fiscal sustainability is its first priority, while also building funds for future growth. It is essential to maintain adequate levels of fund balance to mitigate current and future risks and to ensure stable tax levies. Credit rating agencies carefully monitor levels of fund balance to evaluate a city’s creditworthiness.
• Revenues received within a given fund are specifically committed for its related purpose. Revenues reported within any fund may be modified from time to time through the annual budget process.
• The following parameters will be used as part of the budget process to establish targets for the following funds:
o General Fund – The unrestricted fund balance target should be set at 120 days (4 months) of estimated operating expenditures including those expenditures reported in other Governmental Funds that receive annual operating transfers, with the exception of transfers intended to fund capital projects. If the unreserved fund balance falls below 120 days, a plan will be developed to return to the target balance. If the unreserved fund balance reaches a low of 90 days (3 months), the plan will be implemented to return the fund balance to the target within a reasonable amount of time. One-time revenues shall not be used to fund current operations. This level of fund balance shall provide the capacity to:
Offset unexpected downturns in elastic revenues due to fluctuations in the local, state and national economies or the loss of a major sales tax contributor(s);
Offset negative fiscal changes brought about by action or legislation of another unit of government or agency;
Ensure the continued, timely repayment of debt obligations that the City may have in the event of a financial downturn;
Provide a sufficient cash flow for daily financial needs at all times; and,
Provide a funding source for unanticipated expenditures or emergencies that may occur.
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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.
o Tourism Fund – No target is established for this fund. The expenditures in this fund are to be used for financing tourism through promotion of the City.
o Pageant Fund – No target is established for this fund.
o Band Fund – No target is established for this fund. There is an estimated yearly operating transfer provided by the General Fund to cover expenses.
o Civil Defense Fund – The unrestricted fund balance should be maintained at 120 days (4 months) of estimated operating expenditures. Additional fund balance needs to be retained to address long-term equipment replacement and or repair.
o Alarm Board Fund – The unrestricted fund balance should be maintained at 120 days (4 months) of estimated operating expenditures. Additional fund balance needs to be retained to address long-term equipment replacement.
o Audit Fund – No target is established for this fund. Any fund balance accumulated within this fund will be utilized to lower operating transfers from other funds or the property tax levy.
o Annexation Fund – The unrestricted fund balance should be maintained at sufficient levels to address the related annual debt service payments pledged by this fund and additional funding for capital projects.
o Motor Fuel Tax Fund – No target is established for this fund. The expenditures intended for the Motor Fuel Tax revenues must not exceed the amount of funds available from the State of Illinois Motor Fuel Tax Fund. These revenues should only be used for street improvements and repair, as allowed by the State of Illinois Law.
o Developer Donation Fund – The unrestricted fund balance should be maintained at sufficient levels to fund park related capital projects.
o Tax Increment Finance Fund – No target is established for this fund. All fund balance within this fund will go to pay for improvements completed within the TIF district.
o Recreation Center Construction Fund – The unrestricted fund balance should be maintained at 120 days (4 months) of estimated operating expenditures. Additional fund balance needs to be retained to address long-term equipment/furniture replacement or other unforeseen capital needs.
o Special Service Area #4 (SSA#4) – No fund balance is maintained in this fund, all revenues are transferred to the Utility Improvements Fund to cover project costs.
o Capital Improvements Fund – No target is established for this fund. The expenditures in this fund are to be used for retiring debt service and for capital
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infrastructure expenditures. One-time revenues should be placed in this fund. However, the City will plan appropriately and maintain a sufficient reserve in order to meet the long-term capital planning, projected cash flow requirements, and infrastructure needs of the community.
o Capital Equipment Fund – No target is established for this fund. The expenditures in this fund are to be used for capital equipment expenditures.
o Debt Service Fund – No target is established for this fund. This fund is used only as a debt service fund.
o Water and Sewer Fund – The Water and Sewer Fund cash and investment balance should be maintained at a minimum level of 25%-35% of the previous year’s operating expenses taking into account typical levels of expenditures required for capital outlays. Rates should be maintained at sufficient levels to meet the costs of water and sewer programs, fund depreciation, and build reserves for future capital needs. Water rates for consumers will be reviewed on an annual basis based on operating and capital needs. If the balances fall below the minimum, rates will be adjusted so as to gradually return to the minimum within a reasonable period of time. If balances exceed the minimum, the overage will be used to keep future rate increases lower or fund capital projects for the water/sewer systems.
o Capital Development Fund – No target is established for this fund. The expenditures in this fund are to be used for retiring debt service and for capital expenditures.
o Utility Improvements Fund – No target is established for this fund. The expenditures in this fund are to be used for capital infrastructure expenditures. One-time revenues should be placed in this fund. However, the City will plan appropriately and maintain a sufficient reserve in order to meet the long-term capital planning, projected cash flow requirements, and infrastructure needs of the community.
o Marina Operations Fund – No target is established for this fund. All fund balance within this fund will go to maintain the City owned marina.
o Employee Insurance Fund – No target is established for this fund. Any fund balance accumulated within this fund will be utilized to provide stability for the City’s health insurance costs.
o Risk Management Fund – No target is established for this fund. Any fund balance accumulated within this fund will be utilized to provide stability for the City’s risk management costs.
o Information Technology Fund – The unrestricted fund balance should be maintained at 120 days (4 months) of estimated operating expenditures. Additional fund balance needs to be retained to address capital expenditures.
o Employee Flexible Spending Fund – No fund balance is maintained within this fund. This fund is used only as an agency fund.
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o Development Escrow Fund – No fund balance is maintained within this fund. This fund is used only as an agency fund.
o Retained Personnel Fund – No fund balance is maintained within this fund. This fund is used only as an agency fund.
o Revolving Loan Fund – No target is established for this fund. Any fund balance accumulated within this fund will be utilized to offer low interest loans to local businesses.
o Police Pension Fund – Fund balance targets will be determined through the Police Pension Board and the annual actuarial analysis.
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Community Investment Program Financial Policy 1. The Community Investment Program (CIP) plan shall identify projects, their costs and the revenue sources and amounts needed to finance them. 2. The first year of the CIP program effectively becomes the capital projects budget within the operating budget for the year subject to the availability of adequate funds in the operating budget. Approval of the CIP does not guarantee that funds will be appropriated for the projects included in the first year of the CIP. 3. For General Obligation Debt, the City will maintain a debt to assessed value ratio that is 25% more stringent than the state debt limit (State limit is 8.625% of EAV; proposed limit would reduce to this ceiling to approximately 6.5% of EAV or $25.5 million outstanding). 4. Bonds issued to finance capital projects shall be structured to coincide as closely as feasibly possible to the useful life of the project. By equitably distributing the costs of the project over time, those citizens benefiting from the project will share in the cost. In no instance shall the maturity exceed the useful life of the project. 5. The City will not use long-term debt for current operations. 6. Where feasible, the City shall investigate the use of all sources of revenue available before using local property tax funds for capital projects. 7. Where feasible, the City will pursue project financing mechanisms - such as special service areas, special assessments or other mechanisms - that target citizens receiving a disproportionate share of the project benefit.
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Investment Policy
I. Policy It is the policy of the City of McHenry to invest public funds in a manner which will provide the highest investment return with the maximum security while meeting the daily cash flow demands of the City and conforming to all state and local statutes governing the investment of public funds.
II. Scope This policy includes all funds governed by the Mayor and Council (“City Council”).
III. General Objectives The primary objectives, in priority order, of investment activities shall be safety, liquidity, and yield: A. Safety. Safety of principal is the foremost objective of the investment program. Investments shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. The objective will be to mitigate credit risk and interest rate risk. 1. Credit Risk. The City will minimize credit risk, the risk of loss due to the failure of the security issuer or backer, by: (a) Limiting investments to the safest types of securities. (b) Pre-qualifying the financial institutions, brokers/dealers, intermediaries, and advisers with which the City will do business. (c) Diversifying the investment portfolio so that potential losses on individual securities will be minimized. 2. 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: (a) 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. (b) Investing operating funds primarily in shorter-term securities, money market mutual funds, or similar investment pools. B. Liquidity. The investment portfolio shall remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated. This is accomplished by structuring the portfolio so that securities mature concurrent with cash needs to meet
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anticipated demands (static liquidity). Furthermore, since all possible cash demands cannot be anticipated, the portfolio should consist largely of securities with active secondary or resale markets (dynamic liquidity). A portion of the portfolio also may be placed in money market mutual funds or local government investment pools which offer same-day liquidity for short-term funds. C. Yield. The investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment constraints and liquidity needs. Return on investment is of secondary importance compared to the safety and liquidity objectives described above. The core of investments are limited to relatively low risk securities as identified in this policy in anticipation of earning a fair return relative to the risk being assumed. Securities shall not be sold prior to maturity with the following exceptions: 1. A security with declining credit may be sold early to minimize loss of principal. 2. A security swap would improve the quality, yield, or target duration in the portfolio. 3. Liquidity needs of the portfolio require that the security be sold.
IV. Prudence The standard of prudence to be used by investment officials shall be the “prudent person” standard and shall be applied in the context of managing an overall portfolio. Investment officers acting in accordance with written procedures and this investment policy and exercising due diligence shall be relieved of personal responsibility for an individual security’s credit risk or market price changes, provided deviations from expectations are reported in a timely fashion and the liquidity and the sale of the securities are carried out in accordance with the terms of this policy. Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived.
V. Ethics and Conflicts of Interest Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with the proper execution and management of the investment program, or that could impair their ability to make impartial decisions. Employees and investment officials shall disclose any material interests in financial institutions with which they conduct business. They shall further disclose any personal financial/investment positions that could be related to the performance of the investment portfolio. Employees and officers shall refrain from undertaking personal investment transactions with the same individual with whom business is conducted on behalf of the City.
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VI. Delegation of Authority Authority to manage the investment program is granted to the City Treasurer or his designee, hereinafter referred to as Investment Officer. Responsibility for the operation of the investment program is hereby delegated to the Investment Officer, who shall act in accordance with established procedures and internal controls for the operation of the investment program consistent with this investment policy. Procedures should include references to: safekeeping, delivery vs. payment, investment accounting, repurchase agreements, wire transfer agreements, and collateral/depository agreements. No person may engage in an investment transaction except as provided under the terms of this policy and the procedures established by the Investment Officer. The Investment Officer shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials.
VII. Authorized Financial Dealers and Institutions A list will be maintained of financial institutions authorized to provide investment services. In addition, a list also will be maintained of approved security broker/dealers selected by creditworthiness (e.g., a minimum capital requirement of $10,000,000 and at least five years of operation). These may include “primary” dealers or regional dealers that qualify under Securities and Exchange Commission (SEC) Rule 15C3-1 (uniform net capital rule). All financial institutions and broker/dealers who desire to become qualified for investment transactions must supply the following as appropriate: A. Audited financial statements. B. Proof of National Association of Securities Dealers (NASD) certification. C. Proof of state registration. D. Completed broker/dealer questionnaire. E. Certification of having read and understood and agreeing to comply with the City’s investment policy. An annual review of the financial condition and registration of qualified financial institutions and broker/dealers will be conducted by the Investment Officer.
VIII. Suitable and Authorized Investments The City may invest in any investment allowed for in the Illinois statutes regarding investment of public funds including but not limited to the following: A. U.S. government obligations, U.S. government agency obligations, and U.S. government instrumentality obligations, which have a liquid market with a readily determinable market value.
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B. Canadian government obligations (payable in local currency). C. Certificates of deposit and other evidences of deposit at financial institutions, bankers’ acceptances, and commercial paper, rated in the highest tier (e.g., A-1, P-1, F-1, or D-1 or higher) by a nationally recognized rating agency. D. Investment-grade obligations of state, provincial and local governments and public authorities. E. Repurchase agreements only if the underlying purchased securities consist of government securities which are subject to the Government Securities Act of 1986 or as authorized in 30 ILCS 235/2(h)(1)-(11). F. Money market mutual funds regulated by the Securities and Exchange Commission and whose portfolios consist only of dollar-denominated securities. G. Local government investment pools, either state-administered or through joint powers statutes and other intergovernmental agreement legislation.
IX. Collateralization Funds on deposit (checking accounts, certificates of deposit, etc.) in excess of FDIC limits must be secured by some form of collateral, witnessed by a written agreement and held at an independent – third party institution in the name of the City.
X. Safekeeping and Custody All security transactions, including collateral for repurchase agreements, entered into by the City, shall be conducted on a delivery-versus-payment (DVP) basis. Securities will be held by an independent third-party custodian designated by the Investment Officer and evidenced by safekeeping receipts and a written custodial agreement.
XI. Diversification The investments shall be diversified by: A. Limiting investments to avoid over concentration in securities from a specific issuer or business sector (excluding U.S. Treasury securities). B. Limiting investment in securities that have higher credit risks. C. Investing in securities with varying maturities. D. Continuously investing a portion of the portfolio in readily available funds such as local government investment pools (LGIPs), money market funds or overnight
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repurchase agreements to ensure that appropriate liquidity is maintained in order to meet ongoing obligations.
XII. Maximum Maturities To the extent possible, the City shall attempt to match its investments with anticipated cash flow requirements. Unless matched to a specific cash flow, the City will not directly invest in securities maturing more than two years from the date of purchase or in accordance with state and local statutes and ordinances. Reserve funds may be invested in securities exceeding two years if maturity of such investments is made to coincide as nearly as practicable with the expected use of the funds. The intent to invest in securities with longer maturities shall be disclosed to the corporate authorities.
XIII. Internal Controls The Investment Officer is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the City are protected from loss, theft or misuse. The internal control structure shall be designed to provide reasonable assurance that these objectives are met. The concept of reasonable assurance recognizes that (1) the cost of a control should not exceed the benefits likely to be derived and (2) the valuation of costs and benefits requires estimates and judgments by management. Accordingly, the Investment Officer shall establish a process for an annual independent review by an external auditor to assure compliance with policies and procedures. The internal controls shall address the following points: A. Control of collusion. B. Separation of transaction authority from accounting and recordkeeping. C. Custodial safekeeping. D. Avoidance of physical delivery securities. E. Clear delegation of authority to subordinate staff members. F. Written confirmation of transactions for investments and wire transfers. G. Development of a wire transfer agreement with the lead bank and third-party custodian.
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XIV. Performance Standards The investment portfolio will be managed in accordance with the parameters specified within this policy. The portfolio should obtain a market average rate of return during a market/economic environment of stable interest rates. A series of appropriate benchmarks shall be established against which portfolio performance shall be compared on a regular basis.
XV. Reporting The Investment Officer, or his designee, shall prepare an investment report at least quarterly, including a management summary that provides an analysis of the status of the current investment portfolio and transactions made over the last quarter. This management summary will be prepared in a manner which will allow the City to ascertain whether investment activities during the reporting period have conformed to the investment policy. The report should be provided to the Investment Officer, the legislative body, and any pool participants. The report will include the following: A. Listing of individual securities held at the end of the reporting period. B. Realized and unrealized gains or losses resulting from appreciation or depreciation by listing the cost and market value of securities over one-year duration that are not intended to be held until maturity. C. Average weighted yield to maturity of portfolio on investments as compared to applicable benchmarks. D. Listing of investment by maturity date. E. Percentage of the total portfolio which each type of investment represents.
XVI. Marking to Market A statement of the market value of the portfolio shall be issued to the Mayor and City Council quarterly.
XVII. Exemption Any investment currently held that does not meet the guidelines of this policy shall be exempted from the requirement of this policy. At maturity or liquidation, such monies shall be reinvested only as provided by this policy.
XVIII. Amendments This policy shall be reviewed on an annual basis. The Investment Officer may implement changes in the investment policy after gaining approval from the Mayor and City Council for
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the amendments. Any and all amendments to the investment policy shall be provided to the individual(s) charged with maintaining internal controls.
XIX. Investment Policy Adoption The investment policy shall be adopted by the Mayor and City Council. The policy shall be reviewed on an annual basis by the Investment Officer and any modifications made thereto must be presented to the Mayor and City Council for approval.
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Purchasing Policy and Procedures
A. General Rules, Regulations and Ethics Purchasing of goods and services for the City of McHenry shall be in accordance with this Purchasing Policy, City Ordinances and applicable statutes of the State of Illinois. Items procured must represent the maximum economic benefit for each dollar spent. Purchases shall be of high quality and continued availability. Purchases shall be based on obtaining cost comparisons, quotations, or competitive bids. Purchases shall be based on obtaining better knowledge of methods and of commodities required to operate cost effectively. Local participation will be encouraged in the purchasing process. Consideration should be given to participate in cooperative purchasing efforts with other local government entities and in the State of Illinois Joint Purchasing Program whenever possible. All personnel involved in the purchasing process shall conduct themselves with fairness and impartiality and demand the same of all vendors. Negotiations and discussions involving purchases shall be conducted in compliance with the Code of Ethics and Rules of Conduct in the City’s Personnel Handbook. The purchasing process shall promote professionalism and be committed to the efficiencies of centralized purchasing.
B. Expenditure Approval Authority The following table includes the personnel authorized to make purchases and the amount each are authorized to spend on items included in the annual fiscal year budget, as approved by the City Council:
Budgeted
Amounts
Designated
Employees*
Supervisors/Managers
Department
Directors
Mayor, City
Administrator
or Finance
Director Less than $750 X X X X Less than $2,500 X X X Less than $10,000 X X Less than $20,000 X
* Designated Employees:
• Executive Assistant/Deputy City Clerk
• Coordinators and Analysts
• Administrative Assistants (all departments)
• Public Works Maintenance Worker
• Public Works Operator
• Public Works Mechanic
• Parks & Recreation Maintenance Worker
• Public Works Project Engineer
• Community Development Plumbing Inspector
• Community Development Code Enforcement Officer
• Community Development Permit Technician
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C. Purchasing Procedure for Budgeted Items The following purchasing procedures apply to budgeted amounts, excluding architectural, surveying or engineering, legal, auditing, information technology or other professional services.
o For budgeted items from $2,500.00 to $9,999.99, three (3) cost comparisons shall be obtained prior to all purchases.
o For budgeted items from $10,000.00 to $19,999.99, three (3) written quotations shall be obtained prior to all purchases.
o For budgeted items $20,000.00 and over, all purchases shall follow a competitive bidding process whereby bid specifications are developed, bids solicited, bids are received and evaluated by staff, and a recommendation is forwarded to the City Council for award/approval. The City Council reserves the right to waive the competitive bidding process upon the vote of 2/3 of the City Council members then holding office.
D. Purchasing Procedure for Non-budgeted Amounts For all purchases that are not included in the annual fiscal year budget, a budget amendment request must be approved by the City Council prior to purchase, unless the actions are considered emergency in nature. Once approved, purchases may be made in accordance with the Expenditure Approval Authority set forth above.
E. Purchasing Procedure – Emergencies For all purchases considered emergency in nature by the City Administrator or Mayor, such as threats to public health or safety, where immediate repairs to City property are required to protect or prevent against further loss or damage, or where immediate action is needed to prevent or minimize serious disruption to City services, competitive purchasing procedures, as directed by the Mayor or City Administrator under the circumstances, shall be used. The City Council shall be notified of the emergency circumstances and the expenditure amount and the item will be presented for formal approval or ratification at the next regular meeting of the City Council.
F. Change Orders Change orders $20,000.00 and over shall be brought before the City Council unless specifically authorized in the bid selection process. However, if a change order for any public works contract authorizes or necessitates any increase in the contract price that is fifty percent (50%) or more of the original contract price or that authorizes or necessitates any increase in the price of a subcontract under the contract that is fifty percent (50%) or more of the original subcontract price, then the portion of the contract that is covered by the change order must be resubmitted for bidding in the same manner for which the original contract was bid pursuant to the Public Works Contract Change Order Act, 50 ILCS 525.
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Glossary of Terms
Accrual Basis of Accounting: A method of accounting that recognizes the financial effect of transactions, events, and interfund activities when they occur, regardless of the timing of related cash flows.
Activity: Specific or distinguishable type of work performed by a component of government for the purpose of accomplishing a function for which the government is responsible.
Appropriation: Legal authorization by the City Council to make expenditures and to incur obligations for specific purposes.
Assessed Valuation: A valuation set upon real estate or other property by a government as a basis for levying taxes.
Availability Criterion: Principle of the modified accrual basis of accounting according to which revenues may only be recognized when they are collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period.
Basis of Accounting: The timing of recognition, that is, when the effects of transactions or events should be recognized for financial reporting purposes. For example, the effects of transactions or events can be recognized on an accrual basis (that is, when the transactions or events take place), or on a cash basis (that is, when cash is received or paid).
Bond: A written promise to pay a specific sum of money, called the face value or principal amount, at a specified date or dates in the future, called the maturity dates, together with periodic interest at a specified rate.
Budget: The financial plan for the operation of a program or organization, which includes an estimate of proposed expenditures for a given period, and the proposed means of financing those expenditures.
Budget Message: A general outline of the budget, which includes comments regarding the government’s experience during the past period, its financial status at the time of the message, and recommendations regarding the financial policy for the coming period.
Budgetary Basis of Accounting: The method used to determine when revenues and expenditures are recognized for budgetary purposes.
Business-Type Activities: Activities of the City that are financed in whole, or in part, by fees charged to external parties for goods or services. These activities are accounted for as enterprise funds and include the Airport, Transit, Parking, Golf Course, Boat Harbor, Marina, Ambulance, Refuse Collection, Landfill, Transfer Station, Water Pollution Control, and Collection and Drainage Funds.
Capital Improvements Program: An annually updated plan or schedule of projected expenditures for public facilities and improvements which includes estimated project costs, sources of funding, and timing of work over a five-year period. For financial planning and general management, the program is presented as a plan of work and proposed expenditures and is the basis for appropriation requests and bond issues.
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Capital Outlay: Fixed assets which have a value of $300 or more and have a useful economic lifetime of more than one year.
Capital Projects Fund: Fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.
Commodities: Supplies required by the municipality in order to perform the services to its citizens.
Community and Economic Development Function: Government function that provides for planning and development of the City including the social, physical and economic needs of the City. Activities included in this function are Planning, Zoning and Building Safety, Economic Development and the Municipal Housing Programs.
Contractual Services: Services other than employee services such as contractual arrangements and consultant services, which may be required by the municipality.
Culture and Recreation Function: This function promotes the general wellbeing of the City and encourages the fullest development of cultural and educational potentials of the citizens in the community. This function includes the activities of library, art center, parks and recreation, and cemetery.
Debt Service Fund: A fund established to account for the accumulation of resources for and the payment of general long-term debt, principal, and interest.
Depreciation: An appropriation is expended when a capital asset is acquired or constructed. By definition, a capital asset has a service life expected to extend over more than one fiscal period. The process of allocating the cost of a capital asset to the periods during which the asset is used is called depreciation.
Encumbrances: Obligations in the form of purchase orders, and/or contracts, which are chargeable to an appropriation and for which a part of the appropriation is reserved.
Enterprise Fund: A fund established to account for operations that are financed and operated in a manner similar to private business enterprises. The intent of a governing body is that the cost of providing goods and services to the general public on a continuing basis be financed or recovered primarily through user charges or where the governing body has decided that periodic determination of revenues earned, expenses incurred and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes.
Expenditures: The cost of goods received or services rendered for the government unit. For the City of McHenry, expenditures are charged against an appropriation when incurred, not when paid.
Fiscal Policy: The City of McHenry’s policy with respect to taxes, spending and debt management as they relate to government services, programs, and capital investments.
Fiscal Year: A twelve-month period to which an annual operating budget applies.
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Fringe Benefits: Benefits paid by the City of McHenry for social security, retirement, group health, life, dental and long-term disability insurance. It also includes costs for worker’s compensation and unemployment.
Function: A group of related activities aimed at providing a major service or regulatory program for which a government is responsible.
Fund: The fiscal and accounting entity with a self-balancing set of accounts recording cash and other financial resources together with all related liabilities and residual equity or balances and changes therein which are segregated for the purpose of carrying out specific activities or obtaining certain objectives in accordance with special regulations, restrictions or limitations.
Fund Balance: Funds remaining after the application of available revenues and resources to support expenditures for the fund.
General Fund: A fund used to account for all financial resources except those required to be accounted for in another fund.
General Government Function: Function that provides for the operation of the government and assures the general administration of the municipality. Activities included in this function are mayor and council, legal services, city administrator, human resources, wellness program, finance, computer operations, risk management, and buildings and grounds.
General Obligation Bonds: Bonds for the payment of which the full faith and credit of the issuing government are pledged. Goal: Broad statement of desired results for the city, department, and/or activity relating to the quality of services to be provided to the citizens of McHenry.
Governmental Funds: Funds generally used to account for tax-supported activities. There are five different types of governmental funds: the general fund, special revenue funds, debt service funds, capital projects funds, and permanent hinds.
Health and Social Services Function: Government function which provides for assistance to service agencies involved in providing health and social services in the community. For the City, this function includes the Economic Well-Being activity.
Intergovernmental Revenues: Revenue from other governments, primarily in the form of Federal and State grants, but may also be payments from other local governments.
Internal Service Fund: A fund used to account for the financing of goods and services provided by one department or agency to other departments or agencies of a government on a cost-reimbursement basis.
Legal Debt Martin: The excess of the amount of debt legally authorized over the amount of debt outstanding.
Level of Service: Generally used to define the existing or current services, programs and facilities provided by the government for its citizens. Level of service of any given activity may be increased, decreased, or remain the same depending upon the needs, alternatives, and available resources.
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Levy: The total amount of taxes, special assessments, or service charges imposed by a government to support governmental activities.
Modified Accrual Basis of Accounting: Basis of accounting according to which (a) revenues are recognized in the accounting period in which they become available and measurable and (b) expenditures are recognized in the accounting period in which the fund liability is incurred, if measurable, except for unmatured interest on general long-term debt and certain similar accrued obligations, which should be recognized when due.
Objectives: Specific measurable achievements that an activity seeks to accomplish within a given time frame, which are directed to a particular goal. An objective should be stated in terms of results, not processes or activities. For the City of McHenry, departmental objectives are included in the department’s budget request.
Ordinance: A formal legislative enactment by the governing body of a municipality.
Performance Measurement: Commonly used term for service efforts and accomplishments reporting.
Permanent Funds: A fiduciary fund type used to report resources that are legally restricted to the extent that only earnings, and not principal, may be used for purposes that support the reporting government’s programs.
Personal Services: Expenditures for salaries, wages, and related employee benefits for persons employed by the municipality.
Proprietary Funds: Funds that focus on the determination of operating income, changes in net assets (or cost recovery), financial position, and cash flows. There are two different types of proprietary funds: enterprise funds and internal service funds.
Public Safety Function: Government function that provides for services to reduce the amount and effects of external harm to individuals and damage to property, and in general to promote an atmosphere of personal security from external events. Police, animal control, communications, fire, and civil defense activities are included in this function.
Public Works Function: Government function that provides for safe and well-maintained infrastructure for the City. Activities included in this function are public works administration, roadway maintenance, snow and ice control, street cleaning, traffic control and engineering.
Resolution: An order of a legislative body requiring less legal formality than an ordinance; additionally, it has less legal status.
Revenue: Income received by the City of McHenry to support the government’s program of services to the citizens. Income includes such items as property tax, fees, user charges, grants and fines.
Special Assessment: A compulsory levy made against certain properties to defray part or all of the cost of a specific improvement or service deemed to primarily benefit those properties.
Special Revenue Funds: Funds used to account for proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes.
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Taxable Valuations: Valuations set upon real estate or other property by a government as the basis for levying taxes.
Taxes: Compulsory charges levied by government for the purpose of financing services performed for the common benefit. This does not include specific charges made against particular persons or property for current or permanent benefits such as special assessments.
Trust and Agency Funds: Funds used to account for assets held by a government in a trustee or agent capacity for individuals, private organizations, other governments, and/or other finds.
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