HomeMy WebLinkAboutPacket - 11/4/2024 - City CouncilThe City of McHenry is dedicated to providing its citizens, businesses, and visitors with the highest quality of programs and services in
a customer-oriented, efficient, and fiscally responsible manner.
AGENDA
REGULAR CITY COUNCIL MEETING
Monday, November 4, 2024, 7:00 p.m.
City Council Chambers, 333 S Green St, McHenry, IL 60050
1.Call to Order
2.Roll Call
3.Pledge of Allegiance
4. Public Comment
5.Presentation: Annual Financial Report for the Fiscal Year ending April 30, 2025 (Eccezion)
6. Consent Agenda. Motion to Approve the following Consent Agenda Items as presented:
A.Amend the opening hours and liquor license times of the 2025 R.I.S.E. Up event for Friday,
September 12th and Saturday, September 13th from 4:30 p.m. to 3:00 p.m.
B.Resolution Designating November 17-23, 2024, National Apprenticeship Week in the City of
McHenry (Director Martin)
C.October 21, 2024 City Council Meeting Minutes
D.Issuance of Checks in the amount of $740,190.22
7.Individual Action Item Agenda
A.TRIO Liquor License
A motion to pass an ordinance Amending Section 4-2-6, Subsection D.3. Class C License, of the
McHenry City Code; and approve a Class C Liquor License to Graham Enterprise, Inc. dba Trio
-138, at 5520 W Elm Street, McHenry, pending the successful completion of a background check
(Deputy Clerk Johnson)
8.Discussion Item Agenda
A. Lennar Conceptual Presentation – Single Family Home Subdivision near Bull Valley and Curran
Road (Director Polerecky)
B. Redevelopment of 3510 W Elm Street (Director Martin)
C.Discussion and Direction – 2024 Property Tax Levy (Director Lynch)
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The City of McHenry is dedicated to providing its citizens, businesses, and visitors with the highest quality of programs and services in
a customer-oriented, efficient, and fiscally responsible manner.
9.Staff Reports
Provided the 1st meeting of each month.
10. Mayor’s Report
11.City Council Comments
12.Executive Session if needed
13. Adjourn
The complete City Council packet is available for review online via the City website at
www.cityofmchenry.org. For further information, please contact the Office of the City Administrator at
815-363-2108.
NOTICE: In compliance with the Americans with Disabilities Act (ADA), this and all other City Council
meetings are located in facilities that are physically accessible to those who have disabilities. If
additional accommodations are needed, please call the Office of the City Administrator at 815-363-2108
at least 72 hours prior to any meeting so that accommodations can be made.
This meeting will be live streamed with a quorum of the City Council physically present. Public
comments may only be heard by members of the public physically present at the meeting. Remote
public comments will not be heard. The public can listen and view the meeting from the following link:
https://cityofmchenry.zoom.us/j/83739714884
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Office of Finance & Accounting
Carolyn Lynch, Director
McHenry Municipal Center
333 Green Street
McHenry, Illinois 60050
Phone: (815) 363-2100
Fax: (815) 363-2119
www.cityofmchenry.org
PRESENTATION
DATE: November 4, 2024
TO: Mayor and City Council
FROM: Carolyn Lynch, Finance Director
RE: FY23/24 Audit
ATTACHMENTS: FY23/24 SAS Letter
FY23/24 Audit Report
_____________________________________________________________________________
Attached is the Annual Financial Report for the year ending April 30, 2024 that was completed by
the firm of Eccezion (formerly Eder, Casella, and Company). The audit document was received
by staff and the document includes important information about the City’s results for the
2023/24 fiscal year and current financial condition.
There are a few areas of the report that are important to highlight. First, the Combining Schedule
of Revenues, Expenditures, and Changes in Fund Balance – General Fund on page 64-65 of the
audit includes the year end results and the total fund balance for the General Fund. The total
fund balance is $18,697,479, which is an increase of $1,840,355 over April 30, 2024. Per the Fund
Balance and Reserve Policy, excess Fund Balance will be transferred to the Capital Improvements
Fund for capital projects. As a reminder according to the Fund Balance and Reserve policy, the
General Fund unassigned balance should be approximately 120 days of the estimated operating
expenditures; this dollar amount is currently $10,096,337. And, $6,286,354 of the current fund
balance is also reserved for specific items/projects, leaving $2,314,788 available for Capital
Projects. City Staff will be bringing forward another discussion on the Fund Balance and Reserve
policy now that there is a defined revenue source for Capital Maintenance and Replacement
Projects because there is a list of unfunded projects and known budget increases.
Second, the Statement of Revenues, Expenses and Changes in Net Position – Proprietary Funds
(pg. 20) show the annual operating income and expenses for the Water and Sewer Fund. The
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Water and Sewer Fund has an operating income of $1,632,986. Even with this operating income,
Water/Sewer rates will still need to be annually reviewed and adjusted, as operating revenues
have increased due to debt service fees for the IEPA loan (as well as increases to water and sewer
rates). These IEPA loan fees cover principal payments that are not presented on this statement,
they are presented on the Statement of Net Position.
Third, the Police Pension Plan Schedule of Changes in the Employer’s Net Pension Liability and
Related Ratios report (p. 56) still shows a high Total Pension Liability of $62,405,662. On this
same page, the Plan Net Position has increased due to higher investment returns to $59,660,419.
The Police Pension Fund is still in a very good position, at 96% funded as of April 30, 2024.
A representative from Eccezion is in attendance to present a summary of the audit and answer
any questions Council may have.
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October 18, 2024
To the Mayor and City Council Members
City of McHenry
McHenry, Illinois
We have audited the financial statements of City of McHenry (City) as of and for the year ended
April 30, 2024, and have issued our report thereon dated October 18, 2024. Professional standards
require that we advise you of the following matters relating to our audit.
Our Responsibility in Relation to the Financial Statement Audit
As communicated in our engagement letter dated May 21, 2024, our responsibility under generally
accepted auditing standards and, if applicable, Government Auditing Standards and Uniform Guidance,
is to form and express opinions about whether the financial statements that have been prepared by
management with your oversight are presented fairly, in all material respects, in accordance with
accounting principles generally accepted in the United States of America. Our audit of the financial
statements does not relieve you or management of your respective responsibilities.
Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain
reasonable, rather than absolute, assurance about whether the financial statements are free of material
misstatement. An audit of financial statements includes consideration of internal control over financial
reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for
the purpose of expressing an opinion on the effectiveness of the City’s internal control over financial
reporting. Accordingly, as part of our audit, we considered the internal control of the City of McHenry
solely for the purpose of determining our audit procedures and not to provide any assurance concerning
such internal control.
We are also responsible for communicating significant matters related to the audit that are, in our
professional judgment, relevant to your responsibilities in overseeing the financial reporting process.
However, we are not required to design procedures for the purpose of identifying other matters to
communicate to you.
Planned Scope and Timing of the Audit
We conducted our audit consistent with the planned scope and timing we previously communicated to
you.
Compliance with All Ethics Requirements Regarding Independence
The engagement team, others in our firm, as appropriate, our firm, and our network firms have complied
with all relevant ethical requirements regarding independence.
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Significant Risks Identified
We have identified the following significant risks:
Management override of controls and improper revenue recognition due to fraud, both of which are
commonly identified as significant risks for audits. As both are common significant risk areas, both are
addressed by performing the following standard procedures:
• Incorporate an element of unpredictability in designing audit procedures: alternating test of controls
at least once every two years, vary sampling techniques for detailed transaction testing, and
interviewing different employees regarding fraud.
• Obtain an understanding of the process and related controls over journal entries and other
adjustments and test journal entries and other adjustments we believe to be of higher risk.
• Review significant accounting estimates for evidence of management bias.
• Obtain an understanding of the entity’s rationale for significant and unusual transactions, if any.
Qualitative Aspects of the Organization’s Significant Accounting Practices
Significant Accounting Policies
Management has the responsibility to select and use appropriate accounting policies. A summary of the
significant accounting policies adopted by City of McHenry are included in Note 1 to the financial
statements. As described in Note 21 to the financial statements, the City implemented GASB Statement
No. 96, Subscription-Based Information Technology Arrangements. There have been no changes in
existing significant accounting policies or their application during fiscal year 2024. No matters have come
to our attention that would require us, under professional standards, to inform you about (1) the methods
used to account for significant unusual transactions and (2) the effect of significant accounting policies in
controversial or emerging areas for which there is a lack of authoritative guidance or consensus.
Significant Accounting Estimates and Related Disclosures
Accounting estimates and related disclosures are an integral part of the financial statements prepared by
management and are based on management’s current judgment. Those judgments are normally based
on knowledge and experience about past and current events and assumptions about future events.
Certain accounting estimates are particularly sensitive because of their significance to the financial
statements and because of the possibility that future events affecting them may differ markedly from
management’s current judgment. The most sensitive estimates affecting the financial statements are:
- Management’s estimates regarding pension and OPEB liabilities were based on various actuarial
assumptions regarding projected salaries, market trends, and expected mortality.
- Management’s estimates of allowances on receivables were based on historical collection rates.
- Management’s estimates of lessor revenues, related to long-term leases, is based on the terms of
the specific lease agreement. The discount rate is either based on a rate stated/implied within the
lease agreement, if available, or an estimate based on similar type arrangements.
We evaluated the key factors and assumptions used to develop the above estimates and determined that
they are reasonable in relation to the financial statements taken as a whole and in relation to the
applicable opinion units.
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Financial Statement Disclosures
Certain financial statement disclosures involve significant judgment and are particularly sensitive
because of their significance to financial statement users. The most sensitive disclosures affecting the
City’s financial statements relate to: Pension and OPEB liabilities.
Significant Unusual Transactions
For purposes of this communication, professional standards require us to communicate to you significant
unusual transactions identified during our audit. The following significant unusual transactions identified
as a result of our audit procedures were brought to the attention of management: None Noted
Significant Difficulties Encountered during the Audit
We encountered no significant difficulties in dealing with management relating to the performance of the
audit.
Uncorrected and Corrected Misstatements
For purposes of this communication, professional standards require us to accumulate all known and likely
misstatements identified during the audit, other than those that we believe are trivial, and communicate
them to the appropriate level of management. Further, professional standards require us to also
communicate the effect of uncorrected misstatements related to prior periods on the relevant classes of
transactions, account balances or disclosures, and the financial statements as a whole and each
applicable opinion unit. The paragraph below summarizes uncorrected financial statement
misstatements whose effects in the current and prior periods, as determined by management, are
immaterial, both individually and in the aggregate, to the financial statements taken as a whole.
Uncorrected misstatement or matters underlying those uncorrected misstatements could potentially
cause future-period financial statements to be materially misstate even though the uncorrected
misstatements are immaterial to the financial statements currently under audit.
There were various contracts which were applicable under GASB 87 leases and GASB 96 SBITAs which
are being recorded, causing understated Right of Use assets and a related understated liability of less
than $100,000 each. The effect on the change in net position is assumed to be trivial as there are not
significant differences between the asset and liability amounts that would be recorded. We do not believe
these amounts to be material to the financial statements quantitatively and trivial in the qualitative sense.
In addition, professional standards require us to communicate to you all material, corrected
misstatements that were brought to the attention of management as a result of our audit procedures. The
attached misstatements that we identified as a result of our audit procedures were brought to the attention
of, and corrected by, management.
Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as a matter,
whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or audit matter,
which could be significant to the City’s financial statements or the auditor’s report. No such
disagreements arose during the course of the audit.
Circumstances that Affect the Form and Content of the Auditor’s Report
For purposes of this letter, professional standards require that we communicate any circumstances that
affect the form and content of our auditor’s report. None Noted.
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Representations Requested from Management
We have requested certain written representations from management, which are included in the attached
letter.
Management Consultations with Other Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting
matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application
of an accounting principle to the City’s financial statements or a determination of the type of auditor’s
opinion that may be expressed on those statements, our professional standards require the consulting
accountant to check with us to determine that the consultant has all the relevant facts. Management
informed us that, and to our knowledge, there were no consultations with other accountants regarding
auditing and accounting matters.
Other Significant Matters, Findings or Issues
In the normal course of our professional association with the City, we generally discuss a variety of
matters, including the application of accounting principles and auditing standards, significant events or
transactions that occurred during the year, operating and regulatory conditions affecting the City, and
operating plans and strategies that may affect the risks of material misstatement. However, none of the
matters discussed resulted in a condition to our retention as the City’s auditors.
Other Matters
We applied certain limited procedures to the required information, which is required supplemental
information (RSI) that supplement the basic financial statements (as listed on the table of contents in the
audit report). Our procedures consisted of inquiries of management regarding the methods of preparing
the information and comparing the information for consistency with management’s responses to our
inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic
financial statements. We did not audit the RSI and do not express an opinion or provide any assurance
on the RSI.
We were engaged to report on supplemental information which accompany the financial statements but
are not RSI. With respect to the supplemental information, we made certain inquiries of management
and evaluated the form, content, and methods of preparing the information to determine that the
information complies with accounting principles generally accepted in the United States of America, the
method of preparing it has not changed from the prior period, and the information is appropriate and
complete in relation to our audit of the financial statements. We compared and reconciled the
supplemental information to the underlying accounting records used to prepare the financial statements
or to the financial statements themselves.
Restriction on Use
This report is intended solely for the information and use of the City Council and management of City of
McHenry and is not intended to be and should not be used by anyone other than these specified parties.
Very truly yours,
Eccezion
Strategic Business Solutions
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Client:City of McHenry
Engagement:City of McHenry
Period Ending:4/30/2024
Workpaper:General Fund AJEs Report
Account Description W/P Ref Debit Credit
Adjusting Journal Entries JE # 1
100-05-5110 CONTRACTUAL SERVICES 11,317.00
100-2100 ACCOUNTS PAYABLE 11,317.00
Total 11,317.00 11,317.00
Adjusting Journal Entries JE # 2
100-1180 DUE FROM OTHER GOV'T UNITS 15,246.00
100-01-3886 REIMB-STATE 15,246.00
Total 15,246.00 15,246.00
Adjusting Journal Entries JE # 3
100-01-8900 PUBLIC IMPROVEMENTS 18,000.00
100-22-3815 DONATIONS 18,000.00
Total 18,000.00 18,000.00
Adjusting Journal Entries JE # 4
100-03-6999 BAD DEBT EXPENSE 65,320.00
100-22-3537 POLICE-VEHICLE IMP. FEES 14,336.00
100-22-6999 BAD DEBT EXPENSE 45,633.00
100-41-6999 BAD DEBT EXPENSE 5,478.00
100-03-3890 MISCELLANEOUS INCOME 65,320.00
100-22-3536 POLICE-BAIL/BOND PROC. FEE 1,100.00
100-22-3890 MISCELLANEOUS INCOME 58,869.00
100-41-3636 GENERAL PROGRAM REVENUE 5,478.00
Total 130,767.00 130,767.00
Adjusting Journal Entries JE # 5
100-1100 INVESTMENTS-CERTIFICATES OF DEPO 3,649.00
100-00-3220 CD INTEREST 3,649.00
Total 3,649.00 3,649.00
I have reviewed and agree with the adjustments above:
Client Signature
Date
DO NOT MAKE PROVIDED BY CLIENT- Adjust AP
Record Oakwood Drive Bridge Project State Reimbursement Receivable
Record City Hall Parking Lot Donated Assets
Reclass Adjustment for Allowance for Uncollectible - DO NOT RECORD, ECC
ENTRY ONLY
Record April Interest on CLB&T CD # 9812
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9/19/2024
2:20 PM
Client:City of McHenry - City of McHenry
Engagement:City of McHenry
Period Ending:4/30/2024
Trial Balance:200 - Tourism Fund
Workpaper:200 - Tourism Fund AJE's Report
Account Description W/P Ref Debit Credit
Adjusting Journal Entries JE # 1
200-00-7610 LOAN PRINCIPAL PAYMENT 198.00
200-00-7600 LOAN INTEREST 198.00
Total 198.00 198.00
I have reviewed and agree with the adjustment(s) above:
Client Signature
Date
Adjust loan principal
1 of 1
10
9/19/2024
2:27 PM
Client:City of McHenry - City of McHenry
Engagement:City of McHenry
Period Ending:4/30/2024
Trial Balance:260 - Annexation Fund
Workpaper:260 - Annexation Fund AJE's Report
Account Description W/P Ref Debit Credit
Adjusting Journal Entries JE # 1
260-1990 CASH IN POOL 18,253.00
260-00-9904 TRANSFER DEBT SERVICE 18,253.00
Total 18,253.00 18,253.00
I have reviewed and agree with the adjustment(s) above:
Client Signature
Date
Adjust Interfund Transfer Through Pooled Cash - TIF Transfer Was Paid Through
Annexation Fund in December
1 of 1
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10/17/2024
2:53 PM
Client:City of McHenry - City of McHenry
Engagement:City of McHenry
Period Ending:4/30/2024
Trial Balance:270 - Motor Fuel Tax Fund
Workpaper:270 - Motor Fuel Tax Adjusting Journal Entries Report
Account Description W/P Ref Debit Credit
Adjusting Journal Entries JE # 1
270-1180 DUE FROM OTHER GOV'T UNITS 99.00
270-00-3150 MFT-ALLOTMENTS FROM STATE 99.00
Total 99.00 99.00
I have reviewed and agree with the adjustment(s) above:
Client Signature
Date
Adjust MFT Revenue to Match PY MFT High Growth Receivable
1 of 1
12
9/19/2024
2:32 PM
Client:City of McHenry - City of McHenry
Engagement:City of McHenry
Period Ending:4/30/2024
Trial Balance:290 - TIF Fund
Workpaper:290 - TIF AJE's Report
Account Description W/P Ref Debit Credit
290-2500 FUND BALANCE 10,000.00
290-00-8900 PUBLIC IMPROVEMENTS 10,000.00
Total 10,000.00 10,000.00
290-00-9904 TRANSFER DEBT SERVICE 18,253.00
290-1990 CASH IN POOL 18,253.00
Total 18,253.00 18,253.00
290-00-8900 PUBLIC IMPROVEMENTS 6,082.00
290-2103 RETENTION PAYABLE 6,082.00
Total 6,082.00 6,082.00
I have reviewed and agree with the adjustments above:
Client Signature
Date
Adjust retainage payable PDW client
Adjusting Journal Entries JE # 1
Correct Fund Balance Rollforward for PY Voided Check Issue
Adjusting Journal Entries JE # 2
Adjust Interfund Transfer Through Pooled Cash - TIF Transfer Was Paid Through Annexation Fund
in December
Adjusting Journal Entries JE # 3
1 of 1
13
9/19/2024
2:53 PM
Client:City of McHenry - City of McHenry
Engagement:City of McHenry
Period Ending:4/30/2024
Trial Balance:510 - Water/Sewer Fund
Workpaper:510 - Water Sewer Adjusting Journal Entries Report
Account Description W/P Ref Debit Credit
Adjusting Journal Entries JE # 1
510-2451 DEFERRED INFLOWS - OPEB 83,785.00
510-2449 DEFERRED OUTFLOWS - OPEB 25,923.00
510-2450 NET OPEB LIABILITY 32,760.00
510-99-9930 OPEB EXPENSE 7,424.00
510-99-9940 OPEB CONTRIBUTIONS 17,678.00
Total 83,785.00 83,785.00
Adjusting Journal Entries JE # 2
510-2443 IMRF NET PENSION LIABILITY 449,064.00
510-2448 IMRF - DEFERRED INFLOWS 40,373.00
510-2444 IMRF DEFERRED OUTFLOWS-ACT EVAL 267,472.00
510-2445 IMRF DEFERRED OUTFLOWS-CONT AFTER 522.00
510-31-4420 EMPLOYER CONTRIBUTION - IMRF 56,441.00
510-32-4420 EMPLOYER CONTRIBUTION - IMRF 98,429.00
510-35-4420 EMPLOYER CONTRIBUTION - IMRF 66,573.00
Total 489,437.00 489,437.00
Adjusting Journal Entries JE # 3
510-32-8300 EQUIPMENT 26,148.00
510-32-8400 VEHICLE 585,818.00
510-32-8400 VEHICLE 26,148.00
510-32-8500 UTILITY SYSTEM 585,818.00
Total 611,966.00 611,966.00
Adjusting Journal Entries JE # 4
510-32-8400 VEHICLE 1.00
510-32-3890 MISCELLANEOUS INCOME 1.00
Total 1.00 1.00
Adjusting Journal Entries JE # 5
510-31-3845 RENTAL INCOME 4,293.00
510-2530 DEFERRED REVENUE 4,293.00
Total 4,293.00 4,293.00
Adjusting Journal Entries JE # 6
510-2101 Accounts Payable 995 Pool 9,673.00
510-32-5375 REPAIR & MAINTENANCE-EQUIPMENT 9,673.00
Total 9,673.00 9,673.00
I have reviewed and agree with the adjustment(s) above:
Client Signature
Date
Record GASB 68 IMRF Activity
Record GASB 75 OPEB Activity
Fixed Asset Entry Correction - PBC
Reclass Negative Expense
Adjust for GASB 87 Lessor Lease - AT&T
Adjust Xylem Water Solutions - not shipped until 5/2024.
1 of 1
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9/19/2024
2:57 PM
Client:City of McHenry - City of McHenry
Engagement:City of McHenry
Period Ending:4/30/2024
Trial Balance:620 - Information Technology Fund
Workpaper:620 - Information Technology Fund AJE Report
Account Description W/P Ref Debit Credit
620-00-5110 CONTRACTUAL SERVICES 7,343.00
620-2500 FUND BALANCE 7,343.00
Total 7,343.00 7,343.00
Adjusting Journal Entries JE # 2
620‐2449 DEFERRED OUTFLOWS - OPEB 4,364.00
620‐2450 NET OPEB LIABILITY 58.00
620‐00‐9930 OPEB EXPENSE 1,089.00
620‐00‐9940 OPEB CONTRIBUTIONS 2,591.00
620‐2451 DEFERRED INFLOWS - OPEB 742.00
Total 4,422.00 4,422.00
Adjusting Journal Entries JE # 3
620‐2443 IMRF NET PENSION LIABILITY 39,428.00
620‐2445 IMRF DEF OUTFLOWS - CONTR MADE AFTER MEAS DATE 1,765.00
620‐2448 IMRF - DEFFERED INFLOWS 2,285.00
620‐00‐4420 EMPLOYER CONTRIBUTION - IMRF 34,302.00
620‐2444 IMRF DEFERRED OUTLFOWS-ACTUARIAL REPORT 9,176.00
Total 43,478.00 43,478.00
I have reviewed and agree with the adjustment(s) above:
Client Signature
Date
Adjusting Journal Entries JE # 1
Correct Fund Balance for PY Prepaid Entry Recorded Backwards
Record GASB 75 OPEB Activity
Record GASB 68 IMRF Activity
1 of 1
15
9/19/2024
3:02 PM
Client:City of McHenry - City of McHenry
Engagement:City of McHenry
Period Ending:4/30/2024
Trial Balance:740 - Retained Personnel Escrow Fund
Workpaper:740 - Retained Personnel Escrow AJEs Report
Account Description W/P Ref Debit Credit
Adjusting Journal Entries JE # 1
740-00-5230 LEGAL SERVICE 5,828.00
740-00-6960 MISCELLANEOUS EXPENSES 340.00
740-00-5220 ENGINEERING FEES 6,168.00
Total 6,168.00 6,168.00
I have reviewed and agree with the adjustment(s) above:
Client Signature
Date
Reclass Expenses to Correct Accounts
1 of 1
16
9/19/2024
3:03 PM
Client:City of McHenry - City of McHenry
Engagement:City of McHenry
Period Ending:4/30/2024
Trial Balance:760 - Police Pension Fund
Workpaper:760 - Police Pension AJE's Report
Account Description W/P Ref Debit Credit
Adjusting Journal Entries JE # 1
760-00-3882 REIMB-MISC 6,310.00
760-00-5110 CONTRACTUAL SERVICES 6,310.00
Total 6,310.00 6,310.00
Adjusting Journal Entries JE # 2
760-00-3882 REIMB-MISC 11,206.00
760-00-3837 UNREALIZED GAIN/LOSS 11,206.00
Total 11,206.00 11,206.00
I have reviewed and agree with the adjustment(s) made above:
Client Signature
Date
Duplicate pension payment paid back
Reclass May IPOPIF Valuation Adjustment
1 of 1
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CITY OF McHENRY, ILLINOIS
ANNUAL FINANCIAL REPORT
APRIL 30, 2024
24
CITY OF McHENRY, ILLINOIS
TABLE OF CONTENTS
APRIL 30, 2024
PAGE
INDEPENDENT AUDITOR’S REPORT 1
INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTORL OVER FINANCIAL
REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN
AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH
GOVERNMENT AUDITING STANDARDS 4
REQUIRED SUPPLEMENTARY INFORMATION
Management’s Discussion and Analysis 6
BASIC FINANCIAL STATEMENTS
Government-Wide Financial Statements
Statement of Net Position 13
Statement of Activities 14
Fund Financial Statements
Balance Sheet – Governmental Funds 15
Reconciliation of the Balance Sheet to the Statement of Net Position 16
Statement of Revenues, Expenditures, and Changes in Fund Balances –
Governmental Funds 17
Reconciliation of the Statement of Revenues, Expenditures, and Changes
in Fund Balances to the Statement of Activities 18
Statement of Net Position – Proprietary Funds 19
Statement of Revenues, Expenses, and Changes in Net Position –
Proprietary Funds 20
Statement of Cash Flows – Proprietary Funds 21
Statement of Fiduciary Net Position – Fiduciary Funds 22
Statement of Changes in Fiduciary Net Position – Fiduciary Funds 23
Notes to Financial Statements 24
REQUIRED SUPPLEMENTARY INFORMATION
Illinois Municipal Retirement Fund – Schedule of Changes in the Employer’s
Net Pension Liability and Related Ratios 54
25
CITY OF McHENRY, ILLINOIS
TABLE OF CONTENTS
APRIL 30, 2024
PAGE
REQUIRED SUPPLEMENTARY INFORMATION (Continued)
Illinois Municipal Retirement Fund – Schedule of Employer Contribution 55
Police Pension Plan – Schedule of Changes in the Employer’s Net Pension
Liability and Related Ratios 56
Police Pension Plan – Schedule of Employer Contribution 57
Other Post-Employment Benefit – Schedule of Changes in the Employer’s
Total OPEB Liability and Related Ratios 58
Schedule of Revenues, Expenditures, and Changes in Fund Balances –
Budget and Actual – General Fund 59
Notes to Required Supplementary Information 61
SUPPLEMENTAL FINANCIAL INFORMATION
Combining Balance Sheet – General Fund 62
Combining Schedule of Revenues, Expenditures, and Changes in Fund
Balances – General Fund 63
Combining Balance Sheet – Other Governmental Funds 65
Combining Schedule of Revenues, Expenditures, and Changes in Fund
Balances – Other Governmental Funds 66
Combining Schedule of Net Position – Water and Sewer Funds 67
Combining Schedule of Revenues, Expenses, and Changes in Net
Position – Water and Sewer Funds 68
Combining Schedule of Net Position – Internal Service Funds 69
Combining Schedule of Revenues, Expenses, and Changes in Net
Position – Internal Service Funds 70
Combining Schedule of Net Position – Custodial Funds 71
Combining Schedule of Changes in Fiduciary Net Position – Custodial Funds 72
Schedule of Revenues, Expenditures, and Changes in Fund Balances –
Budget and Actual – Special Revenue Fund – Tax Increment
Financing Fund 73
26
Page 1
INDEPENDENT AUDITOR’S REPORT
To the Mayor and City Council Members
City of McHenry
McHenry, Illinois
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-
type activities, each major fund, and the aggregate remaining fund information of
City of McHenry
as of and for the year ended April 30, 2024, and the related notes to the financial statements, which
collectively comprise the City’s basic financial statements as listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business-type activities, each major fund,
and the aggregate remaining fund information of City of McHenry as of April 30, 2024, and the respective
changes in financial position and, where applicable, cash flows thereof for the year then ended in
accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States
of America (GAAS) and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Our responsibilities under those
standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements
section of our report. We are required to be independent of City of McHenry and to meet our other ethical
responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe
that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinions.
Change in Accounting Principle
As described in Note 21 to the financial statements, the City implemented GASB Statement No. 96,
Subscription-Based Information Technology Arrangements. Our opinion is not modified with respect to
this matter.
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Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
In preparing the financial statements, management is required to evaluate whether there are conditions
or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as
a going concern for one year beyond the financial statement date, including any currently known
information that may raise substantial doubt shortly thereafter.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance
and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government
Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a
material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Misstatements are considered material if there is a substantial likelihood that, individually or in the
aggregate, they would influence the judgment made by a reasonable user based on the financial
statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we:
x Exercise professional judgment and maintain professional skepticism throughout the audit.
x Identify and assess the risk of material misstatement of the financial statements, whether due to
fraud or error, and design and perform audit procedures responsive to those risks. Such procedures
include examining, on a test basis, evidence regarding the amounts and disclosures in the financial
statements.
x Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of City of McHenry’s internal control. Accordingly, no such opinion is expressed.
x Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements.
x Conclude whether, in our judgment, there are conditions or events, considered in the aggregate,
that raise substantial doubt about City of McHenry’s ability to continue as a going concern for a
reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audit, significant audit findings, and certain internal control-related
matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the required
supplementary information, as listed on the table of contents, be presented to supplement the basic
financial statements. Such information is the responsibility of management and, although not a part of
the basic financial statements, is required by the Governmental Accounting Standards Board who
considers it to be an essential part of financial reporting for placing the basic financial statements in an
appropriate operational, economic, or historical context. We have applied certain limited procedures to
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the required supplementary information in accordance with auditing standards generally accepted in the
United States of America, which consisted of inquiries of management about the methods of preparing
the information and comparing the information for consistency with management’s responses to our
inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic
financial statements. We do not express an opinion or provide any assurance on the information because
the limited procedures do not provide us with sufficient evidence to express an opinion or provide any
assurance.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City’s basic financial statements. The supplementary information, as listed in the table of
contents, are presented for purposes of additional analysis and are not a required part of the basic
financial statements.
The supplementary information is the responsibility of management and was derived from and relates
directly to the underlying accounting and other records used to prepare the basic financial statements.
Such information has been subjected to the auditing procedures applied in the audit of the basic financial
statements and certain additional procedures, including comparing and reconciling such information
directly to the underlying accounting and other records used to prepare the basic financial statements or
to the basic financial statements themselves, and other additional procedures in accordance with auditing
standards generally accepted in the United States of America. In our opinion, the supplementary
information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
October 18, 2024 on our consideration of City of McHenry’s internal control over financial reporting and
on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements
and other matters. The purpose of that report is solely to describe the scope of our testing of internal
control over financial reporting and compliance and the results of that testing, and not to provide an
opinion on the effectiveness of internal control over financial reporting or on compliance. That report is
an integral part of an audit performed in accordance with Government Auditing Standards in considering
City of McHenry’s internal control over financial reporting and compliance.
Eccezion
Strategic Business Solutions
McHenry, Illinois
October 18, 2024
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INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL
REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN
AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
WITH GOVERNMENT AUDITING STANDARDS
To the Mayor and City Council Members
City of McHenry
McHenry, Illinois
We have audited, in accordance with the auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards
issued by the Comptroller General of the United States, the financial statements of the governmental
activities, the business-type activities, each major fund, and the aggregate remaining fund information of
City of McHenry
as of and for the year ended April 30, 2024, and the related notes to the financial statements, which
collectively comprise City of McHenry’s basic financial statements, and have issued our report thereon
dated October 18,2024.
Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered City of McHenry’s internal
control over financial reporting (internal control) as a basis for designing audit procedures that are
appropriate in the circumstances for the purpose of expressing our opinions on the financial statements,
but not for the purpose of expressing an opinion on the effectiveness of City of McHenry’s internal control.
Accordingly, we do not express an opinion on the effectiveness of City of McHenry’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control such that there is a reasonable possibility that a material
misstatement of the City’s financial statements will not be prevented, or detected and corrected on a
timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control
that is less severe than a material weakness, yet important enough to merit attention by those charged
with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any
deficiencies in internal control that we consider to be material weaknesses. However, material
weaknesses may exist that have not been identified.
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Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether City of McHenry’s financial statements are free
from material misstatement, we performed tests of its compliance with certain provisions of laws,
regulations, contracts, and grant agreements, noncompliance with which could have a direct and material
effect on the financial statements. However, providing an opinion on compliance with those provisions
was not an objective of our audit, and accordingly, we do not express such an opinion. The results of
our tests disclosed no instances of noncompliance or other matters that are required to be reported under
Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance
and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal
control or on compliance. This report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the City’s internal control and compliance. Accordingly,
this communication is not suitable for any other purpose.
Eccezion
Strategic Business Solutions
McHenry, Illinois
October 18, 2024
31
REQUIRED SUPPLEMENTARY INFORMATION
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CITY OF McHENRY, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS
APRIL 30, 2024
As management of City of McHenry (City), we offer readers of the City’s statements this narrative
overview and analysis of the financial activities of the City for the fiscal year ended April 30, 2024. We
encourage readers to consider the information presented here in conjunction with additional information
found in the notes to the financial statements.
OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis is intended to serve as an introduction to the City’s basic financial
statements. The City’s basic financial statements comprise three components: 1) government-wide
financial statements, 2) fund financial statements, and 3) notes to the financial statements. Both
perspectives (government-wide and fund level financial statements) allow the user to address relevant
questions, broaden a basis for comparison (year to year or government to government) and enhance the
City’s accountability.
This report also contains other supplementary information in addition to the basic financial statements
themselves.
Government-wide Financial Statements. The government-wide financial statements are designed to
provide readers with a broad overview of the City’s finances, in a manner similar to a private business.
The Statement of Net Position presents information on all the City’s assets, deferred outflows of
resources, liabilities, and deferred inflows of resources with the difference amongst those being reported
as net position. Increases or decreases in net position may serve as a useful indicator of whether the
financial position of the City is improving or deteriorating when comparing year to year results.
The Statement of Activities presents information showing how the City’s net position changed during the
most recent fiscal year. All changes in net position are reported as soon as the underlying event giving
rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses
are reported in this statement for some items that will only result in cash flows in future fiscal periods
(e.g., uncollected taxes and earned but unused vacation leave).
Both government-wide financial statements distinguish functions of the City that are principally supported
by taxes and intergovernmental revenues (governmental activities) from other functions that are intended
to recover all or a significant portion of their costs through user fees and charges (business-type
activities). The governmental activities of the City include general office, public safety, public works, and
parks and recreation. The business-type activities of the City include a water and sewer division.
Fund Financial Statements. A fund is a grouping of related accounts that is used to maintain control
over resources that have been segregated for specific activities or objectives. The City, like other state
and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related
legal requirements. All the funds of the City can be divided into three categories: governmental funds,
proprietary funds, and fiduciary funds.
Governmental Funds. Governmental funds are used to account for essentially the same functions
reported as governmental activities in the government-wide financial statements. However, unlike the
government-wide financial statements, governmental fund financial statements focus on near-term
inflows and outflows of spendable resources, as well as on balances of spendable resources available
at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term
financing requirements.
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Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government-wide financial statements. By doing
so, readers may better understand the long-term impact of the City’s near-term financing decisions. Both
the governmental fund Balance Sheet and the governmental fund Statement of Revenues, Expenditures,
and Changes in Fund Balances provide a reconciliation to facilitate this comparison between
governmental funds and governmental activities.
The City maintains 15 individual governmental funds. Information is presented separately in the
governmental fund Balance Sheet and in the governmental fund Statement of Revenues, Expenditures,
and Changes in Fund Balances for the General Fund which is considered to be a major fund. Data from
the other 14 governmental funds are combined into a single, aggregated presentation. The other 14
funds include Pageant, Audit, Recreation Center, Capital Improvements, Capital Asset Maintenance and
Replacement, Capital Equipment, Capital Asset New Projects, Debt Service, Motor Fuel Tax, Municipal
Motor Fuel Tax, Developer Donations, Tax Increment Financing, and two Special Service Areas.
Proprietary Funds. The City maintains two different types of proprietary funds. Enterprise funds are used
to report the same functions presented as business-type activities in the government-wide financial
statements. The City uses an enterprise fund to account for the Water and Sewer Division. Internal
service funds are an accounting device used to accumulate and allocate costs internally among the City’s
various functions. The City uses internal service funds to account for its employee insurance, risk
management, and information technology. Because these services predominately benefit governmental
rather than business-type functions, they have been included within governmental activities in the
government-wide financial statements.
Proprietary funds provide the same type of information as the government-wide financial statements, only
in more detail. The proprietary fund financial statements provide separate information for the water and
sewer functions. Internal service funds are combined into a single, aggregate presentation in the
proprietary fund financial statements. Individual fund data for the internal service funds is provided in the
form of combining statements.
Fiduciary Funds. Fiduciary funds are used to account for resources held for the benefit of parties outside
the City. Fiduciary funds are not reflected in the government-wide financial statements because the
resources of those funds are not available to support the City’s own programs. The accounting used for
fiduciary funds is much like that used for proprietary funds. The City’s fiduciary funds include the Police
Pension Trust Fund and two Custodial Funds.
Notes to the Financial Statements. The notes provide additional information that is essential to a full
understanding of the data provided in the government-wide and fund financial statements.
Other Information. In addition to the basic financial statements and accompanying notes, this report
also presents certain required supplementary information concerning the City’s appropriation to actual
for the General Fund.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
Net position may serve over time as a useful indicator of a government’s financial position. In the case
of the City, assets and deferred outflows of resources exceeded liabilities and deferred inflows of
resources by $155,728,908 at April 30, 2024.
By far, the largest portion of the City’s net position, 91%, reflects its net investment in capital assets (e.g.,
land, construction in progress, buildings, and equipment); less any related debt used to acquire those
assets that is still outstanding. The City uses these capital assets to provide services to citizens;
consequently, these assets are not available for future spending. Although the City’s investment in capital
assets is reported net of related debt, it should be noted that the resources needed to repay this debt
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must be provided from other sources, since the capital assets themselves cannot be used to liquidate
these liabilities.
4/30/2024 4/30/2023 4/30/2024 4/30/2023 4/30/2024 4/30/2023
Assets
Current and Other Assets 34,431,366$ 32,992,919$ 15,020,896$ 13,576,743$ 49,452,262$ 46,569,662$
Capital Assets 98,145,483 96,526,534 75,664,791 77,053,660 173,810,274 173,580,194
Total Assets 132,576,849$ 129,519,453$ 90,685,687$ 90,630,403$ 223,262,536$ 220,149,856$
Deferred Outflows of Resources 8,491,223$ 11,959,807$ 1,031,197$ 1,325,114$ 9,522,420$ 13,284,921$
Liabilities
Long-Term Liabilities
Outstanding 24,846,038$ 26,838,310$ 28,744,168$ 30,747,863$ 53,590,206$ 57,586,173$
Net Pension Liability - IMRF 4,023,500 5,508,725 1,320,629 1,769,693 5,344,129 7,278,418
Net Pension Liability - Police 2,745,243 4,348,724 - - 2,745,243 4,348,724
Total OPEB Liability 1,081,964 948,640 207,369 174,609 1,289,333 1,123,249
Other Liabilities 2,619,457 2,673,995 531,939 354,638 3,151,396 3,028,633
Total Liabilities 35,316,202$ 40,318,394$ 30,804,105$ 33,046,803$ 66,120,307$ 73,365,197$
Deferred Inflows of Resources 9,988,749$ 10,456,210$ 946,992$ 1,096,857$ 10,935,741$ 11,553,067$
Net Position
Net Investment in Capital
Assets 94,669,805$ 91,764,145$ 46,973,375$ 46,377,371$ 141,643,180$ 138,141,516$
Restricted 1,071,577 2,036,911 - - 1,071,577 2,036,911
Unrestricted 21,739 (3,096,400) 12,992,412 11,434,486 13,014,151 8,338,086
Total Net Position 95,763,121$ 90,704,656$ 59,965,787$ 57,811,857$ 155,728,908$ 148,516,513$
City of McHenry's Statement of Net Position
TotalBusiness-Type ActivitiesGovernmental Activities
An additional portion of the City’s net position, 0.69%, represents resources that are subject to external
restrictions on how they may be used (e.g. Highways and Streets, Capital Projects, Tax Increment
Financing and Special Service Areas). The remaining balance of unrestricted net position ($13,014,151)
may be used to meet the City’s ongoing obligations to citizens and creditors.
Governmental Activities. Governmental activities increased the City’s net position by $5,058,465. Key
differences from the prior year are as follows:
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FY 2024 FY 2023 FY 2024 FY 2023 FY 2024 FY 2023
Revenues
Program Revenues
Charges for Services 7,595,655$ 7,241,916$ 9,839,051$ 9,427,881$ 17,434,706$ 16,669,797$
Operating Grants and Contribu 1,137,473 46,113 - - 1,137,473 46,113
Capital Grants and Contribution 1,379,331 773,717 617,810 - 1,997,141 773,717
General Revenues
Taxes
Property Taxes 5,891,187 5,711,748 - - 5,891,187 5,711,748
Intergovernmental
Sales Taxes 13,355,379 13,346,454 - - 13,355,379 13,346,454
Other Taxes 8,373,431 7,702,910 - - 8,373,431 7,702,910
Other 1,188,701 541,044 514,725 189,104 1,703,426 730,148
Total Revenues 38,921,157$ 35,363,902$ 10,971,586$ 9,616,985$ 49,892,743$ 44,980,887$
Expenses
General Office 8,044,110$ 8,125,923$ -$ -$ 8,044,110$ 8,125,923$
Public Safety 14,518,136 13,663,828 - - 14,518,136 13,663,828
Public Works 5,702,971 7,469,021 - - 5,702,971 7,469,021
Parks and Recreation 4,776,327 4,069,254 - - 4,776,327 4,069,254
Interest and Fees 656,417 689,635 - - 656,417 689,635
Depreciation 273,077 245,712 - - 273,077 245,712
Water - - 2,332,082 2,196,433 2,332,082 2,196,433
Sew er - - 5,565,970 5,651,641 5,565,970 5,651,641
Utility Work - - 823,476 1,122,120 823,476 1,122,120
Total Expenses 33,971,038$ 34,263,373$ 8,721,528$ 8,970,194$ 42,692,566$ 43,233,567$
Increase/(Decrease) in Net Position
Before Transfers 4,950,119$ 1,100,529$ 2,250,058$ 646,791$ 7,200,177$ 1,747,320$
Transfers 96,128 94,922 (96,128) (94,922) - -
Gain on Sale of Capital Assets 12,218 13,200 - 6,000 12,218 19,200
Increase/(Decrease) in Net Position 5,058,465$ 1,208,651$ 2,153,930$ 557,869$ 7,212,395$ 1,766,520$
Net Position - Beginning of Year 90,704,656 90,357,329 57,811,857 57,253,988 148,516,513 147,611,317
Net Position Adjustment - (861,324) - - - (861,324)
Net Position - End of Year 95,763,121$ 90,704,656$ 59,965,787$ 57,811,857$ 155,728,908$ 148,516,513$
City of McHenry's Change in Net Position
Governmental Activities Business-Type Activities Total
Revenues increased in the current year due to increases in all revenue categories. Operating grants and
contributions increased by $1.1 million with the majority of the increase stemming from reimbursements
related to the dispatch PSAP monies from the county. Capital grants and contributions increase was
mainly due to increased developer donations of $585,920 in the current year as well as a $450,000
donation received for a splash pad. The increase in Other Taxes was related to two new taxes being
collected during FY’24, storage tax and gas use tax for a combined total of $527,413.
Expenses decreased compared to the prior year, mainly due to a $1.76 million decrease in Public Works
expenses related to the Police Pension and IMRF Pension liabilities.
Business-Type Activities. Business-type activities increased the City’s net position by $2,153,930.
Revenues for business-type activities increased in the current year due to an increase in capital grants
and contributions from developer donations of $617,810. As well as a $325,621 increase in investment
earnings over the prior year, which was due to much more favorable interest rates.
Expenses for business-type activities decreased slightly in the current year due to decreases in the utility
department related to personnel salaries, miscellaneous personnel expenses, and other operating
expenses.
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FINANCIAL ANALYSIS OF THE CITY’S FUNDS
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-
related legal requirements.
Governmental Funds. The focus of the City’s governmental funds is to provide information on near-
term inflows, outflows, and balances of spendable resources. Such information is useful in assessing
the City’s financing requirements. In particular, unassigned fund balance may serve as a useful measure
of the City’s net resources available for spending at the end of the fiscal year.
At April 30, 2024, the City’s governmental funds reported combined ending fund balances of $25,515,508,
an increase of $1,177,033 in comparison with the prior year. Approximately 39% of this total amount
constitutes unassigned fund balance which is available for spending at the City’s discretion. Of the
remaining fund balance, 56% constitutes assigned fund balance, with the remainder of the fund balance
restricted to indicate that it is not available for new spending because it has already been restricted for
specific purposes or is nonspendable.
The General Fund is the chief operating fund of the City. At April 30, 2024, the fund balance of the
General Fund was $21,744,387, of which $10,096,337 is unassigned. As a measure of the General
Fund’s liquidity, it may be useful to compare unassigned fund balance to total fund expenditures.
Unassigned fund balance represents 36% of total General Fund expenditures.
The General Fund’s fund balance increased by $2,190,504 during the year ended April 30, 2024.
Revenues for the General Fund stayed relatively the same compared to the prior year. However,
expenses increased slightly over $1 million with the biggest increase coming from the Public Safety
department related to personnel salaries and office expenses. This caused the fund balance increase to
decrease by roughly $1 million compared the prior year’s fund balance increase of $3,297,578.
Other significant highlights in the governmental funds for the year ended April 30, 2024 are outlined
below:
x Debt service expenses of $2,696,800 were paid to meet the debt service requirements of the City.
x Other governmental funds show a total decrease in fund balance of $1,013,471.
Proprietary Funds. The City’s proprietary funds provide the same type of information found in the
government-wide financial statements, but in more detail.
Fiduciary Funds (Police Pension and Custodial Funds). At April 30, 2024, the Police Pension Fund’s
net position amounted to $59,660,418. Additions exceeded deductions during the year, resulting in an
increase of $3,941,899 in net position. The increase was largely due to gains on sales of investments
and the net appreciation in fair value of investments.
GENERAL FUND BUDGETARY HIGHLIGHTS
The City amended their budget during the year ended April 30, 2024. The budgets remained largely the
same except for a $19,117 increase to contractual services expenses.
The General Fund actual revenue exceeded budgeted revenue by $2,140,706. This difference was
primarily due to more than expected revenue from state income taxes, fines and forfeitures, charges for
services, reimbursements, and interest income. Budgeted expenditures exceeded actual expenditures
by $1,941,102. The difference was mainly due to less than expected expenditures in all areas, aside
from Parks and Recreation which was slightly higher than expected.
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CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets. The City’s investment in capital assets for its governmental and business-type activities
as of April 30, 2024 amounts to $173,810,274 (net of accumulated depreciation). This investment
includes land, land improvements, art and historical treasures, intangibles, construction in progress,
buildings, vehicles, systems and equipment, and infrastructure.
4/30/2024 4/30/2023 4/30/2024 4/30/2023 4/30/2024 4/30/2023
Land 43,696,556$ 43,651,504$ 2,208,117$ 2,208,117$ 45,904,673$ 45,859,621$
Land Improvements 5,144,913 2,946,509 - - 5,144,913 2,946,509
Art and Historical Treasures 1,658,927 1,658,927 - - 1,658,927 1,658,927
Intangibles 300,000 300,000 - - 300,000 300,000
Construction in Progress 1,759,615 1,831,979 129,933 92,944 1,889,548 1,924,923
Buildings 13,521,012 12,924,652 308,196 334,702 13,829,208 13,259,354
Vehicles 2,249,681 1,810,670 805,474 727,933 3,055,155 2,538,603
Systems and Equipment 1,358,799 1,505,373 72,213,071 73,689,965 73,571,870 75,195,338
Infrastructure 28,455,980 29,896,920 - - 28,455,980 29,896,920
Total 98,145,483$ 96,526,534$ 75,664,791$ 77,053,661$ 173,810,274$ 173,580,195$
City of McHenry's Capital Assets (net of depreciation)
Governmental Activities Business-Type Activities Total
Major capital asset events during the year ended April 30, 2024, included the following:
x Construction in progress additions totaling $3,337,816
x Miller Point and Veterans Park land improvements totaling $2,547,633
x The purchase of twelve new vehicles totaling $996,830
For further information on the City’s capital assets see Note 3 in the notes to the financial statements.
Long-Term Debt. At April 30, 2024, the City had total bonded debt outstanding of $27,065,000, all of
which is backed by the full faith and credit of the City.
4/30/2024 4/30/2023 4/30/2024 4/30/2023 4/30/2024 4/30/2023
General Obligation Bonds 23,835,000$ 25,530,000$ 3,230,000$ 3,625,000$ 27,065,000$ 29,155,000$
IEPA Revolving Loan Fund - - 25,181,722 26,742,871 25,181,722 26,742,871
Notes Payable 306,858 635,548 - - 306,858 635,548
Bond Premium 23,790 32,169 234,292 280,809 258,082 312,978
Bond Discount - (182) - - - (182)
Total 24,165,648$ 26,197,535$ 28,646,014$ 30,648,680$ 52,811,662$ 56,846,215$
City of McHenry's Outstanding Debt
Governmental Activities Business-Type Activities Total
For further information on the City’s long-term debt see Note 5 in the notes to the financial statements.
ECONOMIC FACTORS AND NEXT YEAR’S BUDGET AND RATES
The City has a diversified economy with the manufacturing and health fields being its primary base.
McHenry was among the State’s fastest growing communities with the population tripling from 2,080 in
1950 to 6,772 in 1970 and then tripled again to 21,501 in 2000. The official population in 2020 was
27,135. Over these years, the City experienced significant growth in the retail, office, and industrial
space and a downtown revitalization plan has spurred residential and commercial development in the
Downtown TIF District. The City’s economic conditions are as follows:
x The average unemployment rate for McHenry County in 2023 was 3.7 percent, which is 5.1% lower
than a year ago. This is lower than the State’s average unemployment rate of 4.5 percent.
38
Page 12
x Inflation in the area compares to the national consumer price index. Similar to a nationwide trend,
residential growth in the City has slowed. The number of single-family residential building permits
issued by the City has decreased from 139 in 2007 to 85 in 2020 and 18 in 2023. However, there
was a large increase in multi-family building permits from 0 in 2012 to 378 in 2021, but this has also
declined the last two years to 2 in 2022 and 8 in 2023. The total value of all commercial and residential
improvements and new permits increased from $15.2 million in 2012 to $56.3 million in 2022 and
$87.3 million in 2023.
Development and adoption of the 2024/25 budget was premised on providing core municipal services
while having an operationally balanced budget. It was expected there was going to be a volatile economic
forecast when the pandemic began, but the City has been fortunate over the years to be in a favorable
financial situation because of rebounding revenues and controlled operating expenses. Property tax
revenues were increased for the first time since 2010 in 2021, but then left flat for 2022 and 2023. EAV
values have been gradually increasing which caused the City’s tax rate to continue to decrease from
$0.555713 in 2022 to $0.515600 in 2023.
In April 2024, the City Council approved the proposed fiscal year 2024/25 General Fund budget
increasing the prior year’s budget by $1,038,373. These increases were primarily due to personnel,
contractual, and internal transfers for information technology expenses. In the last few years, capital
expenditures have been funded with Fund Balance Reserves which have been built up due to cost
reduction measures necessary to adopt a balanced budget in the past years as well as rebounding state
shared revenues. These reserves have been decreasing over the years due to this Capital Spending
Policy which has highlighted the need for a dedicated revenue source for the replacement and
maintenance of Capital Assets. With the adoption of the Electric Utility Tax (adopted February 2, 2022,
and placed in effect June 1, 2022), there is now a dedicated revenue stream for the replacement and
maintenance of City Capital Assets. Management is always closely monitoring revenues as well as
expenses for any changes.
REQUESTS FOR INFORMATION This financial report is designed to provide a general overview of the
City’s finances for all those with an interest in the City’s finances. Questions concerning any of the
information provided in this report or requests for additional financial information should be addressed to:
City of McHenry, 333 South Green St., McHenry, Illinois, 60050.
39
BASIC FINANCIAL STATEMENTS
40
Governmental Business-Type
Activities Activities Total
ASSETS
Cash and Cash Equivalents 19,947,912$ 10,058,953$ 30,006,865$
Deposit with Paying Agent 36,925 - 36,925
Investments 3,718,385 2,857,898 6,576,283
Prepaid Items 230,603 40,522 271,125
Receivables (Net of Allowance for Estimated
Uncollectible Amounts)
Accounts Receivable - Billed 161,599 77,386 238,985
Accounts Receivable - Unbilled 497,887 1,351,463 1,849,350
Property Taxes 5,945,758 - 5,945,758
Accrued Interest 71,350 56,993 128,343
Due from Other Governmental Units 3,501,347 97,714 3,599,061
Due from Other Funds 24,614 (24,614) -
Cable Franchise Fee Receivable 110,426 - 110,426
Inventory 184,560 - 184,560
Right-of-Use Lease Receivable - 504,581 504,581
Capital Assets
Land, Construction in Progress, and Other
Non-Depreciable Assets 47,415,098 2,338,050 49,753,148
Other Capital Assets, Net of Depreciation 50,730,385 73,326,741 124,057,126
TOTAL ASSETS 132,576,849$ 90,685,687$ 223,262,536$
DEFERRED OUTFLOWS OF RESOURCES
Pension Expense/Revenue - IMRF 2,994,447$ 786,915$ 3,781,362$
Pension Expense/Revenue - Police Pension 4,064,132 - 4,064,132
OPEB Expense/Revenue 1,432,644 244,282 1,676,926
TOTAL DEFERRED OUTFLOWS OF RESOURCES 8,491,223$ 1,031,197$ 9,522,420$
LIABILITIES
Accounts Payable and Accrued Expenses 1,873,766$ 302,859$ 2,176,625$
Security Deposits Held - 3,000 3,000
Due to Other Governmental Units 203,674 - 203,674
Due to Police Pension Fund 628 - 628
Unearned Revenue 328,650 - 328,650
Accrued Interest 212,739 226,080 438,819
Non-Current Liabilities
Due Within One Year
Bonds and Notes Payable 2,002,767 2,051,839 4,054,606
Compensated Absences 680,390 98,154 778,544
Total OPEB Liability 89,347 15,235 104,582
Due in More Than One Year
Bonds and Notes Payable 22,162,881 26,594,175 48,757,056
Police Pension Liability 2,745,243 - 2,745,243
IMRF Net Pension Liability 4,023,500 1,320,629 5,344,129
Total OPEB Liability 992,617 192,134 1,184,751
TOTAL LIABILITIES 35,316,202$ 30,804,105$ 66,120,307$
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue - Property Taxes 5,945,758$ -$ 5,945,758$
Unavailable Revenue - Right-of-Use Leases - Lessor - 519,852 519,852
Pension Expense/Revenue - IMRF 303,966 79,880 383,846
Pension Expense/Revenue - Police Pension 1,702,448 - 1,702,448
OPEB Expense/Revenue 2,036,577 347,260 2,383,837
TOTAL DEFERRED INFLOWS OF RESOURCES 9,988,749$ 946,992$ 10,935,741$
NET POSITION
Net Investment in Capital Assets 94,669,805$ 46,973,375$ 141,643,180$
Restricted for:
Highways and Streets 763,094 - 763,094
Capital Projects 221,101 - 221,101
Special Service Areas 33 - 33
Tax Increment Financing 87,349 - 87,349
Unrestricted/(Deficit)21,739 12,992,412 13,014,151
TOTAL NET POSITION 95,763,121$ 59,965,787$ 155,728,908$
APRIL 30, 2024
CITY OF MCHENRY, ILLINOIS
STATEMENT OF NET POSITION
GOVERNMENT-WIDE FINANCIAL STATEMENTS
Page 13
The Notes to Financial Statements are an integral part of this statement.
41
Operating Capital
Charges for Grants and Grants and Governmental Business-Type
Expenses Services Contributions Contributions Activities Activities Total
Functions/Programs
Governmental Activities
General Office 8,044,110$ 4,310,682$ -$ 1,302,445$ (2,430,983)$ -$ (2,430,983)$
Public Safety 14,518,136 3,065,287 1,000,000 - (10,452,849) - (10,452,849)
Public Works 5,702,971 - 137,473 76,886 (5,488,612) - (5,488,612)
Parks and Recreation 4,776,327 219,686 - - (4,556,641) - (4,556,641)
Interest and Fees on Long-Term Debt 656,417 - - - (656,417) - (656,417)
Depreciation - Unallocated 273,077 - - - (273,077) - (273,077)
33,971,038$ 7,595,655$ 1,137,473$ 1,379,331$ (23,858,579)$ -$ (23,858,579)$
Business-Type Activities
Water 2,332,082$ 3,424,497$ -$ 315,780$ -$ 1,408,195$ 1,408,195$
Sewer 5,565,970 6,414,554 - 302,030 - 1,150,614 1,150,614
Utility Work 823,476 - - - - (823,476) (823,476)
8,721,528$ 9,839,051$ -$ 617,810$ -$ 1,735,333$ 1,735,333$
Total Primary Government 42,692,566$ 17,434,706$ 1,137,473$ 1,997,141$ (23,858,579)$ 1,735,333$ (22,123,246)$
General Revenues
Taxes
Property Tax, Levied for General Purposes 5,891,187$ -$ 5,891,187$
Intergovernmental
State Sales Tax 13,355,379 - 13,355,379
State Income Tax 4,442,394 - 4,442,394
State Motor Fuel Tax 1,565,314 - 1,565,314
Other Taxes 2,365,723 - 2,365,723
Unrestricted Investment Earnings 1,188,701 514,725 1,703,426
Gain on Sale of Capital Assets 12,218 - 12,218
Transfers 96,128 (96,128) -
Total General Revenues and Transfers 28,917,044$ 418,597$ 29,335,641$
Change in Net Position 5,058,465$ 2,153,930$ 7,212,395$
Net Position - May 1, 2023 90,704,656 57,811,857 148,516,513
Net Position - April 30, 2024 95,763,121$ 59,965,787$ 155,728,908$
CITY OF MCHENRY, ILLINOIS
GOVERNMENT-WIDE FINANCIAL STATEMENTS
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED APRIL 30, 2024
Net (Expense) Revenue and
Changes in Net PositionProgram Revenues
Page 14
The Notes to Financial Statements are an integral part of this statement.
42
Other Total
General Governmental Governmental
Fund Funds Funds
ASSETS
Cash and Cash Equivalents 16,981,410$ 2,376,969$ 19,358,379$
Deposit with Paying Agent - 36,925 36,925
Investments 2,133,104 1,576,495 3,709,599
Prepaid Items 141,345 - 141,345
Receivables (Net of Allowance for
Estimated Uncollectible Amounts)
Accounts Receivable - Billed 156,089 5,400 161,489
Accounts Receivable - Unbilled 173,405 318,037 491,442
Property Taxes 4,982,277 963,481 5,945,758
Accrued Interest 40,932 30,250 71,182
Due from Other Governmental Units 3,324,763 176,584 3,501,347
Due from Other Funds 24,614 - 24,614
Cable Franchise Fee Receivable 110,426 - 110,426
Inventory 184,560 - 184,560
TOTAL ASSETS 28,252,925$ 5,484,141$ 33,737,066$
LIABILITIES
Accounts Payable and Accrued Expenditures 1,285,366$ 539,355$ 1,824,721$
Due to Other Governmental Units - 203,674 203,674
Due to Other Funds 628 - 628
Unearned Revenue 240,267 6,510 246,777
TOTAL LIABILITIES 1,526,261$ 749,539$ 2,275,800$
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue - Property Taxes 4,982,277$ 963,481$ 5,945,758$
TOTAL DEFERRED INFLOWS OF RESOURCES 4,982,277$ 963,481$ 5,945,758$
FUND BALANCES
Nonspendable 141,345$ -$ 141,345$
Restricted for:
Capital Projects - 221,101 221,101
Highways and Streets - 763,094 763,094
Special Service Areas - 33 33
Tax Increment Financing - 87,349 87,349
Assigned for:
Alarm 1,231,245 - 1,231,245
Tourism 242,633 - 242,633
Band 10,225 - 10,225
Highways and Streets - 999,157 999,157
Capital Projects 9,712,473 1,753,977 11,466,450
Revolving Loan 303,921 - 303,921
Civil Defense 6,208 - 6,208
Debt Service - 10,729 10,729
Parks and Recreation - 117,633 117,633
Special Service Areas - 41 41
Unassigned 10,096,337 (181,993) 9,914,344
TOTAL FUND BALANCES 21,744,387$ 3,771,121$ 25,515,508$
TOTAL LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES 28,252,925$ 5,484,141$ 33,737,066$
CITY OF MCHENRY, ILLINOIS
FUND FINANCIAL STATEMENTS
BALANCE SHEET
GOVERNMENTAL FUNDS
APRIL 30, 2024
Page 15
The Notes to Financial Statements are an integral part of this statement.
43
Total Fund Balances - Governmental Funds 25,515,508$
Amounts reported for governmental activities in the Statement of Net Position
are different because:
Capital assets used in governmental activities are not financial resources
and therefore are not reported in the funds.
Capital Assets, net of accumulated depreciation 98,145,483
Some liabilities are not due and payable in the current period and therefore
are not reported in the funds.
Bonds and Notes Payable (24,141,858)$
Bond Premiums, net of related amortization (23,790)
Accrued Interest on Long-Term Debt, net of receivable (212,739)
Compensated Absences (680,390)
Total OPEB Liability (1,081,964)
Net Pension Asset/(Liability) - IMRF (4,023,500)
Net Pension Asset/(Liability) - Police Pension (2,745,243)
(32,909,484)
Deferred pension and OPEB costs in governmental activities are not
financial resources and therefore are not reported in the funds.
Pension Deferred Outflows - Police Pension 4,064,132$
Pension Deferred Outflows - IMRF 2,994,447
Pension Deferred Inflows - Police Pension (1,702,448)
Pension Deferred Inflow - IMRF (303,966)
OPEB Deferred Outflows 1,432,644
OPEB Deferred Inflows (2,036,577)
4,448,232
Internal service funds are used by management to charge the cost of certain
activities, such as insurance and information technology, to individual funds.
The assets and liabilities of the internal service funds are included in
governmental activities in the government-wide Statement of Net Position
(net of amount allocated to business-type activities). Internal service fund
balances are not included in other reconciling items above except for
long-term debt and long-term pension items.
Current Assets 694,300$
Current Liabilities (130,918)
563,382
Net Position of Governmental Activities 95,763,121$
CITY OF MCHENRY, ILLINOIS
FUND FINANCIAL STATEMENTS
RECONCILIATION OF THE BALANCE SHEET TO THE STATEMENT OF NET POSITION
APRIL 30, 2024
Page 16
The Notes to Financial Statements are an integral part of this statement.
44
Other Total
General Governmental Governmental
Fund Funds Funds
REVENUES
Local Taxes
Property Tax 5,000,455$ 890,732$ 5,891,187$
Intergovernmental
State Sales Tax 13,355,379 - 13,355,379
State Income Tax 4,442,394 - 4,442,394
State Replacement Tax 173,671 - 173,671
State Motor Fuel Tax - 1,565,314 1,565,314
State Pull Tab/Games Tax 327 - 327
Inter Track Wagering Tax 33,711 - 33,711
State Telecommunications Tax 190,779 - 190,779
State Grants - 8,947 8,947
Cannabis Use Tax 115,721 - 115,721
Federal Grants - 67,939 67,939
Other Local Sources
Hotel/Motel Tax 218,972 - 218,972
Storage Tax 150,232 - 150,232
Electric Use Tax - 1,105,129 1,105,129
Gas Use Tax - 377,181 377,181
Franchise Fees 341,737 - 341,737
Licenses and Permits 1,253,368 - 1,253,368
Fines and Forfeitures 678,228 - 678,228
Charges for Services 1,576,292 581,624 2,157,916
Interest 997,534 191,167 1,188,701
Local Grants 137,473 - 137,473
Miscellaneous
Rent 18,694 56,616 75,310
Royalties 175,000 - 175,000
Donations 20,800 1,281,645 1,302,445
Reimbursements 3,503,426 210,581 3,714,007
Other Miscellaneous 146,997 53,092 200,089
32,531,190$ 6,389,967$ 38,921,157$
EXPENDITURES
Current
General Office 5,132,206$ 119,377$ 5,251,583$
Public Safety 13,399,259 - 13,399,259
Public Works 4,153,865 26 4,153,891
Parks and Recreation 3,061,238 992,836 4,054,074
Capital Outlay 2,121,677 6,175,186 8,296,863
Debt Service
Principal 328,690 1,695,000 2,023,690
Interest and Fees 19,271 653,839 673,110
28,216,206$ 9,636,264$ 37,852,470$
EXCESS OR (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 4,314,984$ (3,246,297)$ 1,068,687$
OTHER FINANCING SOURCES/(USES)
Transfers (2,136,698)$ 2,232,826$ 96,128$
Sale of City Property 12,218 - 12,218
(2,124,480)$ 2,232,826$ 108,346$
NET CHANGE IN FUND BALANCES 2,190,504$ (1,013,471)$ 1,177,033$
FUND BALANCES - MAY 1, 2023 19,553,883 4,784,592 24,338,475
FUND BALANCES - APRIL 30, 2024 21,744,387$ 3,771,121$ 25,515,508$
FOR THE YEAR ENDED APRIL 30, 2024
CITY OF MCHENRY, ILLINOIS
FUND FINANCIAL STATEMENTS
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
Page 17
The Notes to Financial Statements are an integral part of this statement.45
Net Change in Fund Balances - Total Governmental Funds 1,177,033$
Amounts reported for governmental activities in the Statement of Activities are different because:
Governmental funds report capital outlays as expenditures. However, in the Statement of
Activities the cost of those assets is allocated over their estimated useful lives and reported
as depreciation expense. This is the amount by which capital outlay exceeds depreciation
expense in the current period.
Depreciation Expense (3,568,607)$
Capital Outlays 5,052,705
1,484,098
Donated capital assets used in governmental activities are not current financial resources and
therefore are not reported as revenue in the governmental funds.18,000
Some expenses reported in the Statement of Activities do not require the use of current financial
resources and therefore are not reported as expenditures in governmental funds.
Accrued Interest on Long-Term Debt 8,497$
Bond Discount - Amortization (182)
Bond Premium - Amortization 8,378
Pension Expense - Police (1,650,072)
Pension Expense - IMRF 198,015
OPEB Expense 43,545
Compensated Absences (34,967)
(1,426,786)
Employer Pension and OPEB Contributions are expensed in the fund financial statements but
are treated as a reduction in the Net Pension Liability on the government-wide financial
statements.
Pension Employer Contributions - IMRF 660,235$
Pension Employer Contributions - Police Pension 669,181
OPEB Employer Contributions 103,674
1,433,090
Repayment of long-term debt requires the use of current financial resources of governmental
funds and is therefore shown as an expenditure in the Statement of Revenues, Expenditures,
and Changes in Fund Balances, but the repayment reduces long-term liabilities in the
Statement of Net Position and is therefore not reported in the Statement of Activities.
Repayment of Long-Term Debt 2,023,690
Internal service funds are used by management to charge the costs of certain activities, such
as insurance and information technology, to individual funds. The net revenue of the internal
service funds is reported with governmental activities in the government-wide Statement of
Activities (net of amount allocated to business-type activities).
Change in Net Position 329,542$
Pension Expense - IMRF (included in Pension - IMRF Expense above) (7,628)
IMRF Employer Contributions (included in IMRF Contributions above) (26,674)
OPEB Expense (included in OPEB Expense above) (1,089)
OPEB Employer Contributions (included in OPEB Employer Contributions above)(2,591)
Depreciation Expense (included in Change in Net Position above)57,780
349,340
Change in Net Position of Governmental Activities 5,058,465$
CITY OF MCHENRY, ILLINOIS
FUND FINANCIAL STATEMENTS
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND
FOR THE YEAR ENDED APRIL 30, 2024
CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES
Page 18
The Notes to Financial Statements are an integral part of this statement.
46
Business Type Governmental
Activities - Activities -
Enterprise Fund Internal
Water and Sewer Service Funds
ASSETS
Current Assets
Cash and Cash Equivalents 10,058,953$ 589,533$
Investments 2,857,898 8,786
Prepaid Items 40,522 89,258
Receivables (Net of Allowance for
Estimated Uncollectible Amounts)
Accounts Receivable - Billed 77,386 110
Accounts Receivable - Unbilled 1,351,463 6,445
Accrued Interest 56,993 168
Due from Other Governmental Units 97,714 -
Due from Other Funds 172,258 -
14,713,187$ 694,300$
Non-Current Assets
Right-of-Use Lease Receivable 504,581$ -$
Capital Assets
Land 2,208,117 -
Buildings 2,736,098 -
Systems and Equipment 113,961,975 821,680
Vehicles 1,827,450 -
Construction in Progress 129,933 -
Less: Accumulated Depreciation (45,198,782) (593,150)
76,169,372$ 228,530$
TOTAL ASSETS 90,882,559$ 922,830$
DEFERRED OUTFLOWS OF RESOURCES
Pension Expense/Revenue - IMRF 786,915$ 115,350$
OPEB Expense/Revenue 244,282 35,808
TOTAL DEFERRED OUTFLOWS OF RESOURCES 1,031,197$ 151,158$
LIABILITIES
Current Liabilities
Accounts Payable and Accrued Expenses 302,859$ 49,045$
Security Deposits Held 3,000 -
Due to Other Funds 196,872 -
Unearned Revenue - 81,873
Accrued Interest 226,080 -
Compensated Absences - Current 98,154 12,641
Total OPEB Liability - Current 15,235 2,233
IEPA Loan Payable - Current 1,590,322 -
Bonds Payable - Current 461,517 -
2,894,039$ 145,792$
Non-Current Liabilities
IMRF Net Pension Liability 1,320,629$ 175,004$
Total OPEB Liability 192,134 12,701
IEPA Loan Payable (Net of Current Portion Shown Above)23,591,400 -
Bonds Payable (Net of Current Portion Shown Above)3,002,775 -
28,106,938$ 187,705$
TOTAL LIABILITIES 31,000,977$ 333,497$
DEFERRED INFLOWS OF RESOURCES
Pension Expense/Revenue - IMRF 79,880$ 11,709$
OPEB Expense/Revenue 347,260 50,903
Unavailable Revenue - Right-of-Use Leases - Lessor 519,852 -
TOTAL DEFERRED INFLOWS OF RESOURCES 946,992$ 62,612$
NET POSITION
Net Investment in Capital Assets 46,973,375$ 220,206$
Unrestricted/(Deficit)12,992,412 457,673
TOTAL NET POSITION 59,965,787$ 677,879$
APRIL 30, 2024
CITY OF MCHENRY, ILLINOIS
FUND FINANCIAL STATEMENTS
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
Page 19
The Notes to Financial Statements are an integral part of this statement.
47
Business Type Governmental
Activities -Activities -
Enterprise Fund Internal
Water and Sewer Service Funds
OPERATING REVENUES
Charges for Services
Customer Fees 6,147,178$ -$
Capital Fees 1,079,410 -
Debt Service Fees 2,403,763 -
Penalties 78,631 -
Water Meter Sales 27,670 -
Other 17,175 -
Internal Service Funds - 6,157,952
9,753,827$ 6,157,952$
OPERATING EXPENSES
Water Department
Personnel Salaries 478,317$ -$
Miscellaneous Personnel Expenses 76,136 -
Other Operating Expenses 1,085,843 -
Depreciation 660,033 -
Sewer Department
Personnel Salaries 837,957 -
Miscellaneous Personnel Expenses 335,589 -
Other Operating Expenses 1,649,073 -
Depreciation 2,174,417 -
Utility Work Department
Personnel Salaries 538,492 -
Miscellaneous Personnel Expenses 234,484 -
Other Operating Expenses 50,500 -
Internal Service Funds
Personnel Salaries - 276,876
Miscellaneous Personnel Expenses - 3,796,902
Other Operating Expenses - 1,704,647
Depreciation - 57,780
8,120,841$ 5,836,205$
OPERATING INCOME/(LOSS)1,632,986$ 321,747$
NON-OPERATING REVENUE/(EXPENSE)
Interest Income 420,033$ 7,795$
Unrealized Gain/Loss 94,692 -
Rental Income 38,707 -
Interest and Fees (600,687) -
Amortization 46,517 -
Donated Public Improvements - Water 315,780 -
Donated Public Improvements - Sewer 302,030 -
617,072$ 7,795$
INCOME/(LOSS) BEFORE CONTRIBUTIONS
AND TRANSFERS 2,250,058$ 329,542$
TRANSFERS (TO)/FROM OTHER FUNDS (96,128) -
CHANGE IN NET POSITION 2,153,930$ 329,542$
NET POSITION - MAY 1, 2023 57,811,857 348,337
NET POSITION - APRIL 30, 2024 59,965,787$ 677,879$
FOR THE YEAR ENDED APRIL 30, 2024
CITY OF MCHENRY, ILLINOIS
FUND FINANCIAL STATEMENTS
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
PROPRIETARY FUNDS
Page 20
The Notes to Financial Statements are an integral part of this statement.
48
Business Type Governmental
Activities - Activities -
Enterprise Fund Internal
Water and Sewer Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from Customers 9,706,398$ -$
Receipts from Employees for Services - 1,367
Receipts from Other Funds for Services - 6,157,952
Payments to Suppliers for Goods and Services (2,009,800) (5,381,298)
Payments to Employees for Services (2,087,584) (307,528)
Payments to Other Funds for Services (1,174,029) (108,140)
Internal Activity - Payments (to)/from Other Funds (42,492) (1,273)
Net Cash Provided/(Used) by Operating Activities 4,392,493$ 361,080$
CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES
Transfers (to)/from Other Funds (96,128)$ -$
Net Cash Provided/(Used) by Non-Capital Financing Activities (96,128)$ -$
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Purchase of Capital Assets (827,770)$ (116,852)$
Interest and Fees Paid on Capital Debt (617,237) -
Principal Paid on Capital Debt (1,956,149) -
Other Receipts/(Payments) 13,000 -
Net Cash Provided/(Used) by Capital and Related Financing Activities (3,388,156)$ (116,852)$
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on Cash and Cash Equivalents and Investments 466,799$ 7,276$
Purchase of Investments (1,528,516) -
Sale of Investments 5,312,987 -
Net Cash Provided/(Used) by Investing Activities 4,251,270$ 7,276$
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS 5,159,479$ 251,504$
CASH AND CASH EQUIVALENTS BALANCE - MAY 1, 2023
(INCLUDING RESTRICTED CASH AND OVERDRAFTS) 4,899,474 338,029
CASH AND CASH EQUIVALENTS BALANCE - APRIL 30, 2024
(INCLUDING RESTRICTED CASH AND OVERDRAFTS) 10,058,953$ 589,533$
RECONCILIATION OF OPERATING INCOME/(LOSS) TO NET
CASH PROVIDED/(USED) BY OPERATING ACTIVITIES
Operating Income/(Loss) 1,632,986$ 321,747$
Adjustments to reconcile operating income to net cash
provided by operating activities:
Depreciation Expense 2,834,450 57,780
Change in assets, liabilities and deferred amounts:
Receivables, net (89,921) 1,982
Prepaid Items 1,596 3,132
Accounts Payable and Other Payables 259,927 15,036
Unearned Revenue - (615)
Pension Liabilities (449,064) (39,428)
OPEB Liabilities 32,760 (58)
Deferred Pension Expenses/Revenues 227,621 5,126
Deferred OPEB Expenses/Revenue (57,862) (3,622)
Net Cash Provided/(Used) by Operating Activities 4,392,493$ 361,080$
NONCASH CAPITAL FINANCING ACTIVITIES -$ -$
FOR THE YEAR ENDED APRIL 30, 2024
CITY OF MCHENRY, ILLINOIS
FUND FINANCIAL STATEMENTS
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
Page 21
The Notes to Financial Statements are an integral part of this statement.
49
POLICE
PENSION CUSTODIAL
TRUST FUND FUNDS
ASSETS
Cash and Cash Equivalents 664,240$ 17,006$
Investments, at fair value
Illinois Police Pension Consolidated Investment Fund 58,995,550 -
Receivables (Net of Allowance for Estimated Uncollectible Amounts)
Accounts Receivable - Unbilled - 38,633
Due from General Fund 628 -
TOTAL ASSETS 59,660,418$ 55,639$
TOTAL LIABILITIES -$ -$
NET POSITION
Restricted for Pensions 59,660,418$ -$
Restricted for Developers, Property Owners, and Others - 55,639
TOTAL NET POSITION 59,660,418$ 55,639$
CITY OF MCHENRY, ILLINOIS
STATEMENT OF FIDUCIARY NET POSITION
FIDUCIARY FUNDS
APRIL 30, 2024
FUND FINANCIAL STATEMENTS
Page 22
The Notes to Financial Statements are an integral part of this statement.
50
POLICE
PENSION CUSTODIAL
TRUST FUND FUNDS
ADDITIONS
Contributions
Employer 669,181$ -$
Plan Members 522,287 -
Developers, Property Owners, and Others - 52,048
Total Contributions 1,191,468$ 52,048$
Investment Income
Interest and Dividends 392,331$ 30$
Gain/(Loss) on Sale of Investments 818,745 -
Net Appreciation/(Depreciation) in Fair Value of Investments 3,992,704 -
5,203,780$ 30$
Less: Investment Management Fees 31,218 -
Net Investment Income 5,172,562$ 30$
TOTAL ADDITIONS 6,364,030$ 52,078$
DEDUCTIONS
Benefits 2,399,170$ -$
Administrative Expenses 16,031 -
Engineering and Legal Fees 6,930 52,048
Miscellaneous - 450
TOTAL DEDUCTIONS 2,422,131$ 52,498$
CHANGE IN NET POSITION 3,941,899$ (420)$
NET POSITION - MAY 1, 2023 55,718,519 56,059
NET POSITION - APRIL 30, 2024 59,660,418$ 55,639$
CITY OF MCHENRY, ILLINOIS
FUND FINANCIAL STATEMENTS
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FIDUCIARY FUNDS
FOR THE YEAR ENDED APRIL 30, 2024
Page 23
The Notes to Financial Statements are an integral part of this statement.
51
Page 24
CITY OF McHENRY, ILLINOIS
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 2024
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
City of McHenry, Illinois’ (City) financial statements are prepared in accordance with generally accepted
accounting principles (GAAP) as applied to local governmental units. The Governmental Accounting
Standards Board (GASB) is the accepted standard-setting body for establishing governmental
accounting and financial reporting principles. The most significant accounting policies used by the City
are discussed below.
A. Reporting Entity
The accompanying financial statements comply with the provisions of GASB statements, in that the
financial statements include all organizations, activities, and functions that comprise the City. Component
units are legally separate entities for which the City (the primary entity) is financially accountable.
Financial accountability is defined as the ability to appoint a voting majority of the organization’s
governing body and either (1) the City’s ability to impose its will over the organization or (2) the potential
that the organization will provide a financial benefit to, or impose a financial burden on, the City. Using
these criteria, the City has determined that the Police Pension Fund meets the above criteria. The Police
Pension Fund is blended into the City’s primary government financial statements as a fiduciary fund
although it remains a separate legal entity. In addition, the City is not included as a component unit in
any other governmental reporting entity as defined by GASB pronouncements.
B. Basic Financial Statements – Government-Wide Statements
The City’s basic financial statements include both government-wide (reporting the City as a whole) and
fund (reporting the City’s major funds) financial statements. Both the government-wide and fund financial
statements categorize primary activities as either governmental or business-type. The City’s general
office, public safety, public works, and parks and recreation services are classified as governmental
activities. The City’s water and sewer services are classified as business-type activities.
In the government-wide Statement of Net Position, both the governmental and business-type activities
columns (a) are presented on a consolidated basis by column, and (b) are reported on a full accrual,
economic resource basis, which recognizes all long-term assets and receivables as well as long-term
debt and obligations. The City’s net position is reported in three parts – net investment in capital assets;
restricted net position; and unrestricted net position. The City first utilizes restricted resources to finance
qualifying activities.
The government-wide Statement of Activities reports both the gross and net cost of each of the City’s
functions and business-type activities. The functions are also supported by general government
revenues (property taxes, sales taxes, unrestricted investment earnings, etc.). The Statement of
Activities reduces gross expenses (including depreciation) by related program revenues, operating and
capital grants. Program revenues must be directly associated with the function (public safety, public
works, parks and recreation, etc.) or a business-type activity. Program revenues include charges to
customers or applicants who purchase, use, or directly benefit from goods, services, or privileges
provided by a given function or segment. Program revenues also include grants and contributions that
are restricted to meeting the operational or capital requirements of a particular function or segment.
Operating grants include operating-specific and discretionary (either operating or capital) grants while
the capital grants column reflects capital-specific grants. In the process of aggregating data for the
government-wide financial statements, some amounts reported as interfund activity and balances were
eliminated or reclassified. Interfund services provided and used are not eliminated in the process of
consolidation.
52
NOTES TO FINANCIAL STATEMENTS (Continued)
Page 25
The net costs (by function or business-type activity) are normally covered by general revenue (property
taxes, sales taxes, unrestricted investment earnings, etc.).
The City does not allocate indirect costs.
This government-wide focus is more on the sustainability of the City as an entity and the change in the
City’s net position resulting from the current year’s activities.
C. Basic Financial Statements – Fund Financial Statements
The financial transactions of the City are reported in individual funds in the fund financial statements.
Each fund is accounted for by providing a separate set of self-balancing accounts that comprise its
assets, liabilities, reserves, fund equity, revenues, and expenditures/expenses. The various funds are
reported by generic classification within the financial statements.
The emphasis in fund financial statements is on the major funds in either the governmental or business-
type activities categories. Nonmajor funds by category are summarized into a single column. GASB
Statement No. 34 sets forth minimum criteria (percentage of the assets, liabilities, revenues, or
expenditures/expenses of either fund category or the governmental and enterprise combined) for the
determination of major funds.
The following fund types are used by the City:
1. Governmental Funds
The focus of the governmental funds’ measurement (in the fund statements) is upon determination of
financial position and changes in financial position (sources, uses, and balances of financial resources)
rather than upon net income. The City reports these governmental funds and fund types:
General Fund – The General Fund is the general operating fund of the City. It is used to account for all
financial resources except those required to be accounted for in another fund. The Annexation, Alarm
Board, Band, Civil Defense, Revolving Loan, Tourism, and Employee Flex Funds are included in this
fund.
Special Revenue Funds – The Special Revenue Funds are used to account for the proceeds of specific
revenue sources that are legally restricted to expenditures for specified purposes.
Debt Service Fund – The Debt Service Fund is used to account for the accumulation of funds for the
periodic payment of principal, interest, and related fees on general long-term debt.
Capital Projects Funds – The Capital Projects Funds are used to account for financial resources to be
used for the acquisition or construction of major capital facilities (other than those financed by business-
type/proprietary funds).
The activities reported in these funds are reported as governmental activities in the government-wide
financial statements.
2. Proprietary Fund Types
The focus of proprietary fund measurement is upon determination of operating income, changes in net
position, financial position, and cash flows. The generally accepted accounting principles applicable are
those similar to businesses in the private sector. The City reports the following proprietary fund types:
Enterprise Funds – Enterprise Funds are required to be used to account for operations for which a fee is
charged to external users for goods or services and the activity is financed with debt that is solely secured
by a pledge of the net revenues. The activities reported in these funds are reported as business-type
activities in the government-wide financial statements.
53
NOTES TO FINANCIAL STATEMENTS (Continued)
Page 26
Internal Service Funds – Internal Service Funds are used to account for the financing of goods or services
provided by an activity to other departments or funds of the City on a cost-reimbursement basis. Because
the principal users of the internal services are the City’s governmental activities, the financial statement
of the Internal Service Fund is consolidated into the governmental column when presented in the
government-wide financial statements.
3. Fiduciary Fund Types
Fiduciary Funds are used to report assets held in a trustee or custodial capacity for others and therefore
are not available to support City programs. The reporting focus is on net position and changes in net
position and is reported using accounting principles similar to proprietary funds.
The City’s Fiduciary Funds are presented in the Fiduciary Fund financial statements by type (pension
and custodial). Since by definition these assets are being held for the benefit of a third party (pension
participants, developers, etc.) and cannot be used to address activities or obligations of the City, these
funds are not incorporated into the government-wide statements.
D. Basis of Accounting
Basis of accounting refers to the point at which revenues or expenditures/expenses are recognized in
the accounts and reported in the financial statements. It relates to the timing of the measurements made
regardless of the measurement focus applied.
1. Accrual
Both governmental and business-type activities in the government-wide financial statements and the
proprietary and fiduciary fund financial statements are presented on the accrual basis of accounting.
Property tax revenues are recognized in the period for which levied. Other nonexchange revenues,
including intergovernmental revenues and grants, are reported when all eligibility requirements are met.
Fees and charges and other exchange revenues are recognized when earned and expenses are
recognized when incurred.
2. Modified Accrual
The governmental fund financial statements are presented on the modified accrual basis of accounting.
Under the modified accrual basis of accounting, revenues are recorded when susceptible to accrual; i.e.,
both measurable and available. “Available” means collectible within the current period or within 60 days
after year-end. Property tax revenues are recognized in the period for which levied provided they are
also available. Intergovernmental revenues and grants are recognized when all eligibility requirements
are met and the revenues are available. Expenditures are recognized when the related liability is
incurred. Exceptions to this general rule include principal and interest on general obligation long-term
debt and employee vacation and sick leave, which are recognized when due and payable.
E. Cash and Cash Equivalents and Investments
Separate bank accounts are not maintained for all of the City’s funds. Instead, the funds maintain their
uninvested cash balances in common checking accounts, with accounting records being maintained to
show the portion of the common bank account balances attributable to each participating fund.
Occasionally certain of the funds participating in the common bank accounts will incur overdrafts (deficits)
in the accounts. Such overdrafts in effect constitute cash borrowed from other City funds and are,
therefore, interfund loans that have not been authorized by City Board action.
The following funds incurred overdraft balances at April 30, 2024:
54
NOTES TO FINANCIAL STATEMENTS (Continued)
Page 27
Audit Fund 3,421$
Recreation Center Fund 281,224
Capital Improvements Fund 783,447
Debt Service Fund 43,586
SSA #4 Lakew ood Fund 362
SSA #6 Huntersville Fund 179,115
1,291,155$
Cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term
investments with an original maturity of three months or less from the date of acquisition.
Investments are stated at fair value. Fair value is determined by quoted market prices. Gains or losses
on the sale of investments are recognized as they are incurred.
F. Receivables
Receivables are reported net of estimated uncollectible amounts. No property tax receivable allowance
is recorded as the City receives approximately 100% of the amount levied. The allowance for water and
sewer accounts receivable is $47,361 and all other allowances for other accounts receivable is $667,358.
G. Prepaid Items
Prepaid items are for payments made by the City in the current year for goods and services received in
the subsequent fiscal year.
H. Inventories
Inventories consist of the cost of unused salt for the roads. The salt inventory as of April 30, 2024 is
$184,560.
I. Interfund Activity
Interfund activity is reported either as loans, services provided, reimbursements or transfers. Loans are
reported as interfund receivables and payables as appropriate and are subject to elimination upon
consolidation. Services provided, deemed to be at market or near market rates, are treated as revenues
and expenditures/expenses.
Reimbursements are when one fund incurs a cost, charges the appropriate benefiting fund and reduces
its related cost as a reimbursement. All other interfund transactions are treated as transfers. Transfers
between governmental or between proprietary funds are netted as part of the reconciliation to the
government-wide financial statements.
J. Capital Assets
Capital assets purchased or acquired with an original cost of $5,000 or more, and $10,000 or more for
construction projects, are reported at historical cost or estimated historical cost. Donated capital assets,
donated works of art and similar items, and capital assets received in a service concession arrangement
are reported at acquisition value. Additions, improvements and other capital outlays that significantly
extend the useful life of an asset are capitalized. Other costs incurred for repairs and maintenance are
expensed as incurred. Depreciation on all assets is provided on the straight-line half-year basis over the
following estimated useful lives:
Vehicles 5-15 years
Systems and Equipment 5-40 years
Building and Improvements 5-62 years
Infrastructure 10-40 years
55
NOTES TO FINANCIAL STATEMENTS (Continued)
Page 28
GASB Statement No. 34 required the City to report and depreciate new infrastructure assets effective as
of May 1, 2003. Infrastructure assets include roads, bridges, underground pipe (other than related to
utilities), traffic signals, etc. These infrastructure assets constitute the largest asset class of the City.
K. Deferred Outflows and Inflows of Resources
In addition to assets and liabilities, the Balance Sheets and Statements of Net Position will sometimes
report separate sections for deferred outflows of resources and deferred inflows of resources. Deferred
outflows of resources represent a consumption of net position that applies to a future period and so will
not be recognized as an outflow of resource until then. Deferred inflows of resources represent an
acquisition of net position that applies to a future period and so will not be recognized as an inflow of
resource until that time.
L. Compensated Absences
The City accrues accumulated unpaid vacation and associated employee-related costs when earned (or
estimated to be earned) by the employee. The noncurrent portion (the amount estimated to be used in
subsequent fiscal years) for governmental funds is reported only as a general long-term debt obligation
in the government-wide Statement of Net Position and represents a reconciling item between the fund
and government-wide presentations. In accordance with the provisions of Statement of Financial
Accounting Standards No. 43, “Accounting for Compensated Absences”, no liability is recorded for
nonvesting accumulating rights to receive sick pay benefits.
M. Long-Term Obligations
In the government-wide financial statements and proprietary fund financial statements, long-term debt
and other long-term obligations are reported as liabilities in the applicable governmental activities or
business-type activities and proprietary fund Statement of Net Position. Bond premiums and discounts
are amortized over the life of the bonds on a straight-line basis, rather than expensed in the current year.
Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are
reported as debt service expenditures in the year they occur.
In the fund financial statements, governmental funds recognize bond premiums and discounts, as well
as bond issuance costs, during the current period. The face amount of debt issued is reported as other
financing sources. Premiums received on debt issuances are reported as other financing sources while
discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not
withheld from the actual debt proceeds received, are reported as debt service expenditures.
N. Government-Wide and Proprietary Fund Net Position
Government-wide and proprietary fund net position is divided into three components:
1. Net investment in capital assets – consists of the historical cost of capital assets less accumulated
depreciation and less any debt that remains outstanding that was used to finance those assets.
2. Restricted net position – consists of net position that is restricted by the City’s creditors (for example,
through debt covenants), by the state enabling legislation (through restrictions on shared revenues),
by grantors (both federal and state), and by other contributors.
3. Unrestricted – all other net position is reported in this category.
O. Governmental Fund Balances
Governmental fund balances are divided between nonspendable and spendable.
56
NOTES TO FINANCIAL STATEMENTS (Continued)
Page 29
Nonspendable fund balances are balances that cannot be spent because they are not expected to be
converted to cash or they are legally or contractually required to remain intact.
The spendable fund balances are arranged in a hierarchy based on spending constraints.
1. Restricted – Restricted fund balances are restricted when constraints are placed on the use by
either (a) external creditors, grantors, contributors, or laws or regulations of other governments or
(b) law through constitutional provisions or enabling legislation.
2. Committed – Committed fund balances are amounts that can only be used for specific purposes as
a result of constraints of the City Council. Committed amounts cannot be used for any other
purpose unless the City Council removes those constraints by taking the same type of action (e.g.
legislation, resolution, ordinance). Committed fund balances differ from restricted balances
because the constraints on their use do not come from outside parties, constitutional provisions, or
enabling legislation.
3. Assigned – Assigned fund balances are amounts that are constrained by the City’s intent to be used
for specific purposes but are neither restricted nor committed. Intent is expressed by an appointed
body (e.g. a budget or finance committee) or official to which the Board of Trustees has delegated
the authority to assign, modify or rescind amounts to be used for specific purposes. Pursuant to
resolution #R-12-019 by the City Council, the Finance Director has been delegated this authority,
with the advice and consent of the Finance and Personnel Committee.
Assigned fund balances also include (a) all remaining amounts that are reported in governmental
funds (other than the General Fund) that are not classified as nonspendable, restricted or
committed, and (b) amounts in the General Fund that are intended to be used for a specific purpose.
Specific amounts that are not restricted or committed in a special revenue fund are assigned for
purposes in accordance with the nature of their fund type. Assignment within the General Fund
conveys that the intended use of those amounts is for a specific purpose that is narrower than the
general purpose of the City itself. All assigned fund balances are the residual amounts of the fund.
4. Unassigned – Unassigned fund balance is the residual classification for the General Fund. This
classification represents the General Fund balance that has not been assigned to other funds, and
that has not been restricted, committed, or assigned to specific purposes within the General Fund.
This classification is also used to represent negative fund balances in other funds.
The City permits funds to be expended in the following order: Restricted, Committed, Assigned and
Unassigned.
P. Minimum Fund Balance
The City has adopted a formal minimum fund balance policy. For the General, Recreation Center, and
Information Technology Funds, fund balance will be maintained at 120 days of estimated operating
expenditures. If the balance falls below this minimum a plan will be developed to return to the minimum
balance within a reasonable period of time. Funds in excess of the minimum may be considered for the
funding of one-time, nonrecurring expenditures, assigned for future capital activities, or used for the
funding of other long-term obligations.
Q. Property Tax Calendar and Revenues
The City’s property tax is levied each calendar year on all taxable real property located in the City’s district
on or before the last Tuesday in December. The 2023 levy was passed by the Board on
December 18, 2023. Property taxes attach as an enforceable lien on property as of January 1 of the
calendar year they are for and are payable in two installments early in June and early in September of
the following calendar year. The City receives significant distributions of tax receipts approximately one
month after these dates.
57
NOTES TO FINANCIAL STATEMENTS (Continued)
Page 30
R. Lease and Subscription-Based Information Technology Agreements
The City recognizes right-to-use liabilities and assets for lease and subscription-based IT agreements in
the government-wide and proprietary fund financial statements as a lessee, if any.
At the commencement of a lease or subscription-based IT agreement, City of McHenry initially measures
the right-to-use liability at the present value of payments expected to be made during the agreement
term. Subsequently, the right-to-use liability is reduced by the principal portion payments made. The right-
to-use asset is initially measured as the initial amount of the right-to-use liability, adjusted for payments
made at or before the commencement date, plus certain initial direct costs. Subsequently, the right-to-
use asset is amortized on a straight-line basis over the term of the lease or subscription-based IT
agreement. Key estimates and judgments related to leases or subscription-based IT agreements include
how City of McHenry determines (1) the discount rate it uses to discount the expected payments to
present value, (2) the term, and (3) payments.
The City uses the interest rate charged by the lessor as the discount rate. When the interest rate charged
by the lessor is not provided, the City uses its estimated incremental borrowing rate as the discount rate
for leases or subscription-based IT agreements.
The term includes the noncancellable period of the lease or subscription-based IT agreement. Payments
included in the measurement of the right-to-use liability are composed of fixed payments and purchase
option prices that the City is reasonably certain to exercise.
Right-to-use assets are reported with Capital Assets and right-to-use liabilities are reported with Long
Term Liabilities on the Statement of Net Position, if any.
The City current has no material lessee agreements that fall under this type of arrangement.
The City is a lessor for a lease related to the use of a cell tower by a mobile phone carrier. At the
commencement of a lease, the City initially measures the lease receivable at the present value of
payments expected to be made during the lease term. Subsequently, the lease receivable is reduced by
the principal portion of lease payments made. The unavailable lease revenue is initially measured as the
initial amount of the lease receivable. Subsequently, the unavailable lease revenue is recognized on a
straight-line basis over the lease term. Key estimates and judgments related to leases include how the
City determines (1) the discount rate it uses to discount the expected lease payments to present value,
(2) lease term, and (3) lease payments.
The City monitors changes in circumstances that would require a remeasurement of its lease or
subscription-based IT agreements and will remeasure the related assets and liabilities if certain changes
occur that are expected to significantly affect these amounts.
S. Defining Operating Revenues and Expenses
The City’s proprietary funds distinguish between operating and nonoperating revenues and expenses.
Operating revenues and expenses of the City’s Water and Sewer Fund consist of charges for services
(including tap fees for the water function and systems development charges for the sewer function) and
the costs of providing those services, including depreciation and excluding interest cost. All other revenue
and expenses are reported as nonoperating.
T. Estimates
The preparation of financial statements in conformity with generally accepted accounting principles
requires management to make estimates and assumptions that affect the amounts reported in the
financial statements and accompanying notes. Actual results may differ from those estimates.
58
NOTES TO FINANCIAL STATEMENTS (Continued)
Page 31
NOTE 2 - DEPOSITS, INVESTMENTS, AND FAIR VALUE MEASUREMENTS
Deposits with Financial Institutions
The City maintains a cash and investment pool that is available for use by all funds, except the pension
trust fund. Each fund type’s portion of this pool is displayed on the financial statements as “cash and
investments”. The deposits and investments of the pension trust funds are held separately from those
other funds.
Custodial Credit Risk. In the case of deposits, this is the risk that in the event of a bank failure, the City’s
deposits may not be returned to it. The City’s investment policy states that any City funds on deposit in
excess of FDIC insured limits will be secured by some form of collateral or separate insurance, witnessed
by a written agreement and held by an independent third-party institution in the name of the City of
McHenry. At year-end, the entire amount of bank balance deposits was covered by FDIC insurance or
collateralized.
For an investment, this is the risk that in the event of the failure of the counterparty, the City will not be
able to recover the value of its investments or collateral securities that are in the possession of an outside
party. The City’s investment policy states the same as noted in the paragraph above. At year-end the
City’s investments are all insured, secured, or not subject to custodial credit risk.
Investments
The City is allowed to invest in securities as authorized by the Illinois Compiled Statutes, Chapter 30, Act
235/Articles 2 and 6, and Chapter 40, Act 5/Article 3 – Pensions.
The Police Pension Fund holds all investments within the Illinois Police Officers’ Pension Investment
Fund (IPOPIF). IPOPIF was created by Public Act 101-0610 and codified within the Illinois Pension
Code, becoming effective January 1, 2020, to streamline investments and eliminate unnecessary and
redundant administrative costs, thereby ensuring assets are available to fund pension benefits for the
beneficiaries of the participating pension funds as defined in 40 ILCS 5/22B-105. Participation in IPOPIF
by Illinois suburban and downstate police pension funds is mandatory. IPOPIF’s investment police was
originally adopted by the Board of Trustees on December 17, 2021. IPOPIF has the authority to invest
trust fund assets in any type of security subject to the requirements and restrictions set forth in the Illinois
Pension Code and is not restricted by the Pension Code sections that pertained exclusively to the Article
3 participating police pension funds.
As of April 30, 2024, the City and Police Pension Fund had the following investments, maturities, and fair
value measurements:
City
Credit Quality/ Segmented Time Net Asset
Types of investments Ratings Distribution Amount Level 1 Level 2 Value (NAV)
Debt Securities:
IPRIME Term Series N/A less than 1 year 4,420,644$ 4,420,644$ -$ -$
External Investment Pools AAAmmf less than 1 year 25,369,794 - - 25,369,794
Certificates of Deposit N/A less than 1 year 2,155,637 - 2,155,637 -
Total Debt Securities 31,946,075$ 4,420,644$ 2,155,637$ 25,369,794$
Fair Value Measurement Using
Police Pension
Credit Quality/ Segmented Time Net Asset
Types of investments Ratings Distribution Amount Level 1 Level 2 Value (NAV)
Debt Securities:
External Investment Pool AAAmmf less than 1 year 42,391$ -$ -$ 42,391$
IPOPIF Investment Pool Not Rated less than 1 year 58,995,550 - - 58,995,550
Total Debt Securities 59,037,941$ -$ -$ 59,037,941$
Fair Value Measurement Using
59
NOTES TO FINANCIAL STATEMENTS (Continued)
Page 32
The City and Police Pension Fund categorize its fair value measurements within the fair value hierarchy
established by generally accepted accounting principles. The hierarchy is based on the valuation inputs
used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical
assets; debt securities and certificates of deposit classified in Level 2 of the fair value hierarchy are valued
using a matrix pricing technique. Matrix pricing is used to value securities based on the securities’
relationship to benchmark quoted prices; Level 3 inputs are significant unobservable inputs.
Debt and equity securities classified in Level 1 of the fair value hierarchy are valued using prices quoted
in active markets for those securities. Debt securities and certificates of deposit classified in Level 2 of
the fair value hierarchy are valued using a matrix pricing technique. Matrix pricing is used to value
securities based on the securities’ relationship to benchmark quoted prices.
The Police Pension Fund’s pooled investment in IPOPIF, as noted in the table above, is valued at Net
Asset Value per share. The pooled investments consist of the investments as noted in the target
allocation table available at www.ipopif.org under Governing Documents, Policies, Investment Policy
Statement. Investments in IPOPIF are valued at IPOPIF’s share price, which is the amount it would cost
to buy the shares in the investment pool.
The investments in the External Investment Pools are measured at net asset value. The External
Investment Pools are not registered with the Securities and Exchange Commission (SEC) but operate in
a manner consistent with Rule 2a7 of the Investment Company Act of 1940.
The Police Pension Fund held no investments subject to fair value measurement as of April 30, 2024.
Interest Rate Risk. Interest rate risk is the risk that changes in interest rates will adversely affect the fair
value of an investment. The City’s investment policy states that they will minimize the risk that the market
value of securities in the portfolio will fall due to changes in general interest rates, by:
x 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.
x Investing operating funds primarily in shorter-term securities, money market mutual funds, or similar
investment pools.
Credit Risk. Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its
obligations. The City’s investment policy states that the City minimizes credit risk, the risk of loss due to
the failure of the security issuer or backer, by:
x Limiting investments to the safest type of securities.
x Pre-qualifying the financial institutions, brokers/dealers, intermediaries, and advisers with which the
City will do business.
x Diversifying the investment portfolio so that potential losses on individual securities will be
minimized.
Concentration of Credit Risk. This is the risk of loss attributed to the magnitude of the City’s investment
in a single issuer. The City places no specific limit on the amount the City may invest in any one issuer.
There are currently no investments in any one organization that represent 5% or more of the City’s total
investments.
NOTE 3 - CAPITAL ASSETS
Capital asset activity for the year ended April 30, 2024 was as follows:
60
NOTES TO FINANCIAL STATEMENTS (Continued)
Page 33
Balance Balance
May 1, 2023 Increases Decreases April 30, 2024
Governmental Activities
Capital Assets not being depreciated
Land 43,651,504$ 45,052$ -$ 43,696,556$
Art and Historical Treasures 1,658,927 - - 1,658,927
Intangibles 300,000 - - 300,000
Construction in Progress 1,831,979 3,271,599 3,343,963 1,759,615
Total Capital Assets not being depreciated 47,442,410$ 3,316,651$ 3,343,963$ 47,415,098$
Other Capital Assets
Land Improvements 7,677,809$ 2,547,633$ -$ 10,225,442$
Buildings 19,722,541 1,086,002 - 20,808,543
Vehicles 5,428,152 849,041 73,270 6,203,923
Equipment 5,194,716 173,506 67,786 5,300,436
Infrastructure 84,693,840 558,686 - 85,252,526
Total Other Capital Assets at Historical Cost 122,717,058$ 5,214,868$ 141,056$ 127,790,870$
Less Accumulated Depreciation for:
Land Improvements 4,731,300$ 349,229$ -$ 5,080,529$
Buildings 6,797,889 489,642 - 7,287,531
Vehicles 3,617,482 410,030 73,270 3,954,242
Equipment 3,689,343 320,080 67,786 3,941,637
Infrastructure 54,796,920 1,999,626 - 56,796,546
Total Accumulated Depreciation 73,632,934$ 3,568,607$ 141,056$ 77,060,485$
Other Capital Assets, Net 49,084,124$ 1,646,261$ -$ 50,730,385$
Governmental Activities Capital Assets, Net 96,526,534$ 4,962,912$ 3,343,963$ 98,145,483$
Balance Balance
May 1, 2023 Increases Decreases April 30, 2024
Business-Type Activities
Capital Assets not being depreciated
Land 2,208,117$ -$ -$ 2,208,117$
Construction in Progress 92,944 66,217 29,228 129,933
Total Capital Assets not being depreciated 2,301,061$ 66,217$ 29,228$ 2,338,050$
Other Capital Assets
Buildings 2,736,098$ -$ -$ 2,736,098$
Vehicles 1,679,661 147,789 - 1,827,450
Systems and Equipment 112,701,173 1,260,802 - 113,961,975
Total Other Capital Assets at Historical Cost 117,116,932$ 1,408,591$ -$ 118,525,523$
Less Accumulated Depreciation for:
Buildings 2,401,396$ 26,506$ -$ 2,427,902$
Vehicles 951,728 70,248 - 1,021,976
Systems and Equipment 39,011,208 2,737,696 - 41,748,904
Total Accumulated Depreciation 42,364,332$ 2,834,450$ -$ 45,198,782$
Other Capital Assets, Net 74,752,600$ (1,425,859)$ -$ 73,326,741$
Business-Type Activities Capital Assets, Net 77,053,661$ (1,359,642)$ 29,228$ 75,664,791$
Depreciation expense was charged to functions as follows:
Governmental Activities
Public Safety 398,861$
Public Works 2,287,559
Parks and Recreation 609,110
Unallocated 273,077
Total Governmental Activities Depreciation Expense 3,568,607$
Business-Type Activities
Water 660,033$
Sewer 2,174,417
Total Business-Type Activities Depreciation Expense 2,834,450$
61
NOTES TO FINANCIAL STATEMENTS (Continued)
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NOTE 4 - NET INVESTMENT IN CAPITAL ASSET CALCULATION
Net investment in capital asset calculation as of April 30, 2024, was as follows:
Governmental Activities
Capital Assets, Net of Accumulated Depreciation 98,145,483$
Less:
Capital Related Debt (3,125,648)
Capital Assets in Accounts Payable (350,030)
Investment in Capital Assets 94,669,805$
Business-Type Activities
Capital Assets, Net of Accumulated Depreciation 75,664,791$
Less:
Capital Related Debt (28,646,014)
Capital Assets in Accounts Payable (45,402)
Investment in Capital Assets 46,973,375$
NOTE 5 - LONG-TERM LIABILITY ACTIVITY
Long-term liability activity for the year ended April 30, 2024, was as follows:
Amounts
Balance Balance Due Within
May 1, 2023 Additions Retirements April 30, 2024 One Year
Governmental Activities
Bonds and Notes Payable
General Obligation Bonds 25,530,000$ -$ 1,695,000$ 23,835,000$ 1,725,000$
Unamortized Bond Discount (182) 182 - - -
Unamortized Bond Premium 32,169 - 8,379 23,790 6,307
Note Payable 635,548 - 328,690 306,858 271,460
Total Bonds and Notes Payable 26,197,535$ 182$ 2,032,069$ 24,165,648$ 2,002,767$
Other Long-Term Liabilities
Compensated Absences 640,775$ 680,390$ 640,775$ 680,390$ 680,390$
Total Other Long-Term Liabilities 640,775$ 680,390$ 640,775$ 680,390$ 680,390$
Governmental Activities Long-Term
Obligations 26,838,310$ 680,572$ 2,672,844$ 24,846,038$ 2,683,157$
Business-Type Activities
Bonds and Notes Payable
General Obligation Bonds 3,625,000$ -$ 395,000$ 3,230,000$ 415,000$
IEPA Revolving Loan Fund 26,742,871 - 1,561,149 25,181,722 1,590,322
Unamortized Bond Premium 280,809 - 46,517 234,292 46,517
Total Bonds and Notes Payable 30,648,680$ -$ 2,002,666$ 28,646,014$ 2,051,839$
Other Long-Term Liabilities
Compensated Absences 99,183$ 98,154$ 99,183$ 98,154$ 98,154$
Total Other Long-Term Liabilities 99,183$ 98,154$ 99,183$ 98,154$ 98,154$
Business-Type Activities Long-Term
Obligations 30,747,863$ 98,154$ 2,101,849$ 28,744,168$ 2,149,993$
Bonds and notes payable consisted of the following at April 30, 2024:
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NOTES TO FINANCIAL STATEMENTS (Continued)
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Maturity Interest Face Carrying
Date Rate Amount Amount
Governmental Activities
General Obligation Bonds 2012 12/15/2027 2.00% - 2.50% 850,000$ 260,000$
General Obligation Bonds 2013 5/1/2027 0.40% - 2.75% 415,000 140,000
General Obligation Bonds 2015 12/15/2035 2.00% - 3.25% 6,375,000 2,395,000
General Obligation Bonds 2020B 4/30/2040 0.849% - 3.376% 24,265,000 21,040,000
Note Payable 2/20/2024 3.50%574,171 -
4 parcels of land pledged as collateral to this loan
Note Payable 5/25/2024 3.10%1,300,151 306,858
26 vehicles pledged as collateral to this loan
Total 33,779,322$ 24,141,858$
Business-Type Activities
General Obligation Bonds 2012 12/15/2032 2.00% - 2.80% 2,250,000$ 1,175,000$
General Obligation Bonds 2020A 4/30/2030 4.00% 2,855,000 2,055,000
IEPA Revolving Loan Fund 12/30/2037 1.86%31,507,182 25,181,722
Total 36,612,182$ 28,411,722$
At April 30, 2024, the annual debt service requirements to service all long-term debt attributable to
governmental activities are:
Year Ending April 30 Principal Interest Total
2025 1,996,460$ 636,599$ 2,633,059$
2026 1,565,398 600,660 2,166,058
2027 1,560,000 573,793 2,133,793
2028 1,595,000 543,817 2,138,817
2029 1,290,000 509,072 1,799,072
2030 - 2034 6,940,000 2,049,021 8,989,021
2035 - 2039 7,585,000 1,014,165 8,599,165
2040 1,610,000 54,354 1,664,354
24,141,858$ 5,981,481$ 30,123,339$
At April 30, 2024 the annual debt service requirements to service all long-term debt attributable to
business-type activities are:
Year Ending April 30 Principal Interest Total
2025 2,005,322$ 573,217$ 2,578,539$
2026 2,050,039 529,084 2,579,123
2027 2,100,312 483,509 2,583,821
2028 2,156,151 436,650 2,592,801
2029 2,212,566 388,111 2,600,677
2030 - 2034 10,014,984 1,257,506 11,272,490
2035 - 2039 7,872,348 333,015 8,205,363
28,411,722$ 4,001,092$ 32,412,814$
Industrial Development Revenue Bonds, Series 2016A and 2016B
During fiscal year 2017, the City issued Industrial Development Revenue Bonds on behalf of Fabrik
Industries. The bonds are not obligations of the City; therefore, the City does not record the assets or
liabilities resulting from the bond issuance as its primary function is to arrange financing between Fabrik
and the bond holders. All funds are controlled by the trustee of the bonds (American Community Bank &
Trust). The original issue of the bonds aggregated to $7,500,000, and at April 30, 2024 the outstanding
balance on the bonds was $946,852.
Long-term liabilities are being repaid from the following funds:
63
NOTES TO FINANCIAL STATEMENTS (Continued)
Page 36
Obligation Fund
Governmental Activities
General Obligation Bonds General Fund, Debt Service Fund, Water and Sewer Fund
Note Payable General Fund, Tourism Fund
Compensated Absences General Fund, Information Technology Fund
Business-Type Activities
General Obligation Bonds Water and Sewer Fund
IEPA Revolving Loan Fund Water and Sewer Fund
Compensated Absences Water and Sewer Fund
NOTE 6 - RESTRICTED EQUITY
The following amounts are restricted equity balances at April 30, 2024:
Restricted Restricted
Restricted for Net Position Fund Balance
Governmental Activities/Governmental Funds
Highways and Streets 763,094$ 763,094$
Capital Projects 221,101 221,101
Special Service Areas 33 33
Tax Increment Financing 87,349 87,349
1,071,577$ 1,071,577$
NOTE 7 - DESIGNATED NET POSITION
City management has designated certain Water and Sewer Fund revenues to be used only for debt
service. The amount designated at April 30, 2024 was $4,959,385.
NOTE 8 - DEFICIT FUND BALANCE
At April 30, 2024, a deficit fund balance existed in the following funds:
Audit Fund 2,878$
SSA #6 Huntersville Fund 179,115
181,993$
NOTE 9 - PROPERTY TAXES
Property taxes receivable and unavailable revenue recorded in these financial statements, in the amount
of $5,945,758, are from the 2023 tax levy. The unavailable revenue is 100% of the 2023 tax levy. These
taxes are unavailable as none of the taxes are collected before the end of the fiscal year and the City
does not consider the amounts to be available and does not budget for their use in fiscal year 2024. The
City has determined that 100% of the amounts collected for the 2022 levy ($5,891,187) are allocable for
use in fiscal year 2024 and, therefore, are recorded in these financial statements as property taxes
revenue. A summary of the assessed valuation, rates, and extensions for the years 2023, 2022, and
2021 follows:
64
NOTES TO FINANCIAL STATEMENTS (Continued)
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Tax Year
Assessed Valuation
Rates Extensions Rates Extensions Rates Extensions
General 0.0355 326,668$ 0.0427 364,100$ 0.0524 410,155$
Bond 0.1810 1,663,590 0.1953 1,665,073 0.2129 1,980,289
Police Protection 0.0596 547,963 0.0643 547,962 0.0701 547,965
Insurance 0.0544 499,995 0.0586 499,995 0.0639 499,998
Retirement 0.0434 399,198 0.0468 399,202 0.0510 399,197
Social Security 0.0613 563,750 0.0661 563,752 0.0721 563,749
Audit 0.0029 26,428 0.0031 26,431 0.0034 26,428
Police Pension 0.0773 710,373 0.0788 671,460 0.0800 625,607
Total Taxes Extended 0.5156 4,737,965$ 0.5557 4,737,975$ 0.6058 5,053,388$
2021
$782,126,233
2023
$930,302,882
2022
$864,035,912
Tax Year
Rates Extensions Rates Extensions Rates Extensions
Road and Bridge
(from Townships) - 270,740$ - 305,803$ - 292,407$
Special Service Area #4A - 15,580$ - 15,580$ - 15,580$
Tax Increment Financing - 921,473$ - 816,081$ - 732,268$
20212023 2022
NOTE 10 - EXCESS OF EXPENDITURES OVER BUDGET
For the year ended April 30, 2024, the following funds had expenditures that exceeded the budget:
Fund Budget Actual
Audit $ 50,200 $ 51,350 1,150$
Recreation Center 658,900 720,815 61,915
TIF 1,259,860 1,289,307 29,447
Excess of Actual
Over Budget
NOTE 11 - ILLINOIS MUNICIPAL RETIREMENT FUND
A. Plan Description
The City’s defined benefit pension plan for regular employees provides retirement and disability benefits,
post-retirement increases, and death benefits to plan members and beneficiaries. The City’s plan is
managed by the Illinois Municipal Retirement Fund (IMRF), the administrator of an agent multiple-
employer public pension fund. A summary of IMRF’s pension benefits is provided in the “Benefits
Provided” section of this document. Details of all benefits are available from IMRF. Benefit provisions are
established by statute and may only be changed by the General Assembly of the State of Illinois. IMRF
issues a publicly available Annual Comprehensive Financial Report that includes financial statements,
detailed information about the pension plan’s fiduciary net position, and required supplementary
information. The report is available for download at www.imrf.org.
B. Benefits Provided
IMRF has three benefit plans. The vast majority of IMRF members participate in the Regular Plan (RP).
The Sheriff’s Law Enforcement Personnel (SLEP) plan is for sheriffs, deputy sheriffs, and selected police
chiefs. Counties could adopt the Elected County Official (ECO) plan for officials elected prior to
August 8, 2011 (the ECO plan was closed to new participants after that date).
All three IMRF benefit plans have two tiers. Employees hired before January 1, 2011 are eligible for Tier
1 benefits. Tier 1 employees are vested for pension benefits when they have at least eight years of
qualifying service credit. Tier 1 employees who retire at age 55 (at reduced benefits) or after age 60
(at full benefits) with eight years of service are entitled to an annual retirement benefit, payable monthly
for life, in an amount equal to 1-2/3% of the final rate of earnings for the first 15 years of service credit,
plus 2% for each year of service credit after 15 years to a maximum of 75% of their final rate of earnings.
65
NOTES TO FINANCIAL STATEMENTS (Continued)
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Final rate of earnings is the highest total earnings during any consecutive 48 months within the last ten
years of service, divided by 48. Under Tier 1, the pension is increased by 3% of the original amount on
January 1 every year after retirement.
Employees hired on or after January 1, 2011 are eligible for Tier 2 benefits. For Tier 2 employees,
pension benefits vest after ten years of service. Participating employees who retire at age 62 (at reduced
benefits) or after age 67 (at full benefits) with ten years of service are entitled to an annual retirement
benefit, payable monthly for life, in an amount equal to 1-2/3% of the final rate of earnings for the
first 15 years of service credit, plus 2% for each year of service credit after 15 years to a maximum of
75% of their final rate of earnings. Final rate of earnings is the highest total earnings during any 96
consecutive months within the last ten years of service, divided by 96. Under Tier 2, the pension is
increased on January 1 every year after retirement, upon reaching age 67, by the lesser of:
x 3% of the original pension amount, or
x 1/2 of the increase in the Consumer Price Index of the original pension amount.
C. Employees Covered by Benefit Terms
All appointed employees of a participating employer who are employed in a position normally requiring
600 hours (1,000 hours for certain employees hired after 1981) or more of work in a year are required
to participate. As of December 31, 2023, the following employees were covered by the benefit terms:
Inactive plan members or beneficiaries currently receiving benefits 110
Inactive plan members entitled to but not yet receiving benefits 51
Active plan members 101
Total 262
D. Contributions
As set by statute, the City’s Regular Plan Members are required to contribute 4.5% of their annual
covered salary. The statute requires employers to contribute the amount necessary, in addition to
member contributions, to finance the retirement coverage of its own employees. The City’s annual
contribution rate for calendar year 2023 and 2024 was 9.42% and 9.28%, respectively. For the fiscal year
ended April 30, 2024, the City contributed $829,640 to the plan. The City also contributes for disability
benefits, death benefits, and supplemental retirement benefits, all of which are pooled at the IMRF level.
Contribution rates for disability and death benefits are set by IMRF’s Board of Trustees, while the
supplemental retirement benefits rate is set by statute.
E. Net Pension (Asset)/Liability
The components of the net pension (asset)/liability of the IMRF actuarial valuation performed as of
December 31, 2023, with a measurement date as of that date, calculated in accordance with GASB
Statement No. 68, were as follows:
Total Pension (Asset)/Liability 49,984,222$
IMRF Fiduciary Net Position 44,640,093
City's Net Pension Liability 5,344,129
IMRF Fiduciary Net Position as a Percentage
of the Total Pension Liability 89.31%
See the Schedule of Changes in the Employer’s Net Pension Liability and Related Ratios in the Required
Supplementary Information following the notes to the financial statements for additional information
related to the funded status of the plan.
66
NOTES TO FINANCIAL STATEMENTS (Continued)
Page 39
F. Actuarial Assumptions
The total pension liability above was determined by an actuarial valuation performed as of
December 31, 2023 using the following actuarial methods and assumptions:
Assumptions
Inflation 2.25%
Salary Increases 2.75% - 13.75% including inflation
Interest Rate 7.25%
Actuarial Cost Method Entry Age Normal
Asset Valuation Method Market Value of Assets
Projected Retirement Age Experience-based Table of Rates, specific to the type of eligibility condition, last updated
for the 2023 valuation according to an experience study from years 2020 to 2012
For non-disabled retirees, the Pub-2010, Amount-Weighted, below-median income, General, Retiree,
Male (adjusted 108%) and Female (adjusted 106.4%) tables, and future mortality improvements
projected using scale MP-2021 were used. For disabled retirees, the Pub-2010, Amount-Weighted,
below-median income, General, Disabled Retiree, Male and Female (both unadjusted) tables, and future
mortality improvements projected using scale MP-2021 were used. For active members, the Pub-2010,
Amount-Weighted, below-median income, General, Employee, Male and Female (both unadjusted)
tables, and future mortality improvements projected using scale MP-2021 were used.
G. Long-Term Expected Rate of Return
The long-term expected rate of return on pension plan investments was determined using a building-
block method in which best-estimate ranges of expected future real rates of return (expected returns, net
of pension plan investment expense, and inflation) are developed for each major asset class. These
ranges are combined to produce the long-term expected rate of return by weighting the expected future
real rates of return to the target asset allocation percentage and adding expected inflation. The target
allocation and best estimates of geometric real rates of return for each major asset class are summarized
in the following table as of December 31, 2023:
Asset Class
Target
Allocation
Projected
Return
Equities 34.50% 5.00%
International Equities 18.00% 6.35%
Fixed Income 24.50% 4.75%
Real Estate 10.50% 6.30%
Alternatives 11.50%
Private Equity 8.65%
Hedge Funds N/A
Commodities 6.05%
Cash Equivalents 1.00% 3.80%
100.00%
H. Single Discount Rate
A Single Discount Rate of 7.25% was used to measure the total pension liability as of
December 31, 2023. The projection of cash flow used to determine this Single Discount Rate assumed
that the plan members’ contributions will be made at the current contribution rate, and that employer
contributions will be made at rates equal to the difference between actuarially determined contribution
rates and the member rate. Based on those assumptions, the pension plan’s fiduciary net position was
projected to be available to make all projected future benefit payments of current active and inactive
employees. Therefore, the long-term expected rate of return on pension plan investments was applied
to all periods of projected benefit payments to determine the total pension liability. The Single Discount
Rate reflects:
67
NOTES TO FINANCIAL STATEMENTS (Continued)
Page 40
1. The long-term expected rate of return on pension plan investments (during the period in which the
fiduciary net position is projected to be sufficient to pay benefits), and
2. The tax-exempt municipal bond rate based on an index of 20-year general obligation bonds with an
average AA credit rating (which is published by the Federal Reserve) as of the measurement date
(to the extent that the contributions for use with the long-term expected rate of return are not met).
For the purpose of this discount rate, the expected rate of return on pension plan investments is 7.25%;
the municipal bond rate is 3.77%; and resulting single discount rate is 7.25%. The prior year single
discount rate was 7.25% and increased 0.00% to the current year single discount rate.
Changes in Net Pension (Asset)/Liability
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability
(A) (B) (A)-(B)
Balances at December 31, 2022 47,463,892$ 40,185,474$ 7,278,418$
Changes for the year:
Service Cost 781,374$ -$ 781,374$
Interest on the Total Pension Liability 3,383,604 - 3,383,604
Differences Between Expected and Actual
Experience of the Total Pension Liability 758,139 - 758,139
Changes of Assumptions (34,416) - (34,416)
Contributions - Employer - 816,551 (816,551)
Contributions - Employee - 390,072 (390,072)
Net Investment Income - 4,409,599 (4,409,599)
Benefit Payments, including Refunds
of Employee Contributions (2,368,371) (2,368,371) -
Other (Net Transfer) - 1,206,768 (1,206,768)
Net Changes 2,520,330$ 4,454,619$ (1,934,289)$
Balances at December 31, 2023 49,984,222$ 44,640,093$ 5,344,129$
I. Sensitivity of the Net Pension (Asset)/Liability to Changes in the Discount Rate
The following presents the plan’s net pension liability, calculated using a Single Discount Rate of 7.25%,
as well as what the plan’s net pension liability would be if it were calculated using a single Discount Rate
that is 1% lower or 1% higher than the current rate:
Current
1% Decrease Discount Rate 1% Increase
6.25% 7.25% 8.25%
Net Pension (Asset)/Liability 11,760,850$ 5,344,129$ 311,977$
J. Pension Expense/(Income) and Deferred Outflows of Resources and Deferred Inflows of
Resources Related to Pensions
For the year ended April 30, 2024, the City recognized pension expense/(income) of $(250,053). At
April 30, 2024, the City reported deferred outflows of resources and deferred inflows of resources related
to pensions from the following sources:
68
NOTES TO FINANCIAL STATEMENTS (Continued)
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Deferred Deferred
Outflows of Inflows of Net Outflows
Expense in Future Periods Resources Resources of Resources
Differences between expected and actual experience 1,120,262$ 262,834$ 857,428$
Changes of assumptions - 121,012 (121,012)
Net difference between projected and actual
earnings on pension plan investments 2,370,718 - 2,370,718
Total deferred amounts to be recognized in
pension expense in future periods 3,490,980$ 383,846$ 3,107,134$
Pension contributions made subsequent to
the measurement date 290,382 - 290,382
Total deferred amounts related to pensions 3,781,362$ 383,846$ 3,397,516$
$290,382 reported as deferred outflows of resources related to pensions resulting from the City’s
contributions subsequent to the measurement date will be recognized as a reduction of the net pension
liability in the reporting year ended April 30, 2025. Other amounts reported as deferred outflows of
resources and deferred inflows of resources related to pensions will be recognized in pension expense
in future periods as follows:
Net Deferred
Year Ending Outflows of
December 31 Resources
2024 612,235$
2025 1,020,491
2026 1,688,091
2027 (213,683)
2028 -
Thereafter -
3,107,134$
K. Social Security
Employees not qualifying for coverage under the Illinois Municipal Retirement Fund are considered “non-
participating employees”. These employees and those qualifying for coverage under the Illinois Municipal
Retirement Fund are covered under Social Security. The City paid the total required contribution for the
current fiscal year.
NOTE 12 - POLICE PENSION PLAN
A. Plan Administration
Full-time police sworn personnel of the City are covered by The Police Pension Fund of the City (Plan).
Although this is a single-employer pension plan, the defined benefits and employee and employer
contribution levels are governed by Illinois Compiled Statues (40 IL CS 5/3-1) and may be amended only
by the Illinois legislature. The City accounts for the Plan as a pension trust fund. No separate report is
issued on this pension plan.
The Pension Board administers the Plan and the Illinois Department of Insurance is the oversight agency.
The Board consists of five elected or appointed members.
B. Plan Membership
At May 1, 2023, the date of the latest actuarial valuation, Plan participation consisted of:
69
NOTES TO FINANCIAL STATEMENTS (Continued)
Page 42
Inactive plan members or beneficiaries currently receiving benefits 31
Terminated plan members entitled to but not yet receiving benefits 11
Active plan members 51
Total 93
C. Benefits Provided
The Plan provides retirement, disability, and death benefits to Plan members and their beneficiaries.
Chapter 40-Pensions-Act 5/Article 3 of the Illinois Compiled Statutes assigns the authority to establish
and amend the benefit provisions of the Plan to the Illinois legislature.
Covered employees hired before January 1, 2011 attaining the age of 50 or more with 20 or more years
of creditable service are entitled to receive an annual retirement benefit equal to one half of the salary
attached to the rank held on the last day of service, or for one year prior to the last day, whichever is
greater. The annual benefit shall be increased by 2.5% of such salary for each additional year of service
over 20 years up to 30 years, and 1% of such salary for each additional year of service over 30 years, to
a maximum of 75% of such salary.
Covered employees hired on or after January 1, 2011 attaining the age of 55 or more with 10 or more
years of creditable service are entitled to receive an annual retirement benefit of 2.5% of final average
salary for each year of service, with a maximum salary cap of $106,800 as of January 1, 2011. The
maximum salary cap increases each year thereafter. The monthly benefit of a police officer hired before
January 1, 2011, who retired with 20 or more years of service after January 1, 1977 shall be increased
annually, following the first anniversary date of retirement and be paid upon reaching the age of at least
55 years, by 3% of the original pension and 3% compounded annually thereafter. The monthly pension
of a police officer hired on or after January 1, 2011, shall be increased annually, following the later of the
first anniversary date of retirement or the month following the attainment of age 60, but the lessor of 3%
or ½ the consumer price index. Employees with at least 10 years but less than 20 years of creditable
service may retire at or after age 60 and receive a reduced benefit.
D. Contributions
Employees are required by Illinois Compiled Statutes (ILCS) to contribute 9.91% of their base salary to
the Plan. If an employee leaves covered employment with less than 20 years of service, accumulated
employee contributions may be refunded without accumulated interest. The City is required to contribute
the remaining amounts necessary to finance the plan and the administrative costs as actuarially
determined by an enrolled actuary. Effective January 1, 2011, the City has until the year 2040 to fund
90% of the past service cost for the Plan. For the year ended April 30, 2024 the City’s contribution was
12.70% of covered payroll.
Net Pension (Asset)/Liability
The components of the net pension (asset)/liability of the Plan as of April 30, 2024, calculated in
accordance with GASB Statement No. 68, were as follows:
Total Pension Liability 62,405,662$
Plan Fiduciary Net Position 59,660,419
City's Net Pension (Asset)/Liability 2,745,243
Plan Fiduciary Net Position as a Percentage
of the Total Pension Liability 95.60%
See the Schedule of Changes in the Employer’s Net Pension Liability and Related Ratios in the Required
Supplementary Information for additional information related to the funded status of the Plan.
70
NOTES TO FINANCIAL STATEMENTS (Continued)
Page 43
E. Actuarial Assumptions
The total pension liability above was determined by an actuarial valuation performed as of May 1, 2023
using the following actuarial methods and assumptions:
Actuarial Cost Method Entry Age Normal
Amortization Method Straight Line
Remaining Amortization Period
Actuarial Experience and Changes in Assumptions 7.09 Years
Asset Experience 5 Years
Assumptions
Inflation 2.25%
Salary Increases 3.75% - 10.02%
Interest Rate 7.00%
Payroll Grow th 3.00%
Asset Valuation Method Market Value
Active Mortality follows the Sex Distinct Raw Rates as developed in the PubS-2010(A) Study. Mortality
improvement uses MP-2019 Improvement Rates applied on a fully generational basis. 50% of active
Member deaths are assumed to be in the Line of Duty.
Retiree Mortality follows the L&A Assumption Study for Police 2020. These rates are experience weighted
with the Sex District Raw Rates as developed in the PubS-2010(A) Study improved to 2017 using MP-
2019 Improvement Rates. These rates are then improved fully generationally using MP-2019
Improvement Rates.
Disabled Mortality follows the Sex Distinct Raw Rates as developed in the PubS-2010 Study for disabled
participants. Mortality improvement uses MP-2019 Improvement Rates applied on a fully generational
basis.
Spouse Mortality follows the Sex Distinct Raw Rates as developed in the PubS-2010(A) Study for
contingent survivors. For all rates not provided there (ages 45 and younger) the PubG-2010 Study for
general employees was used. Mortality improvement uses MP-2019 Improvement Rates applied on a
fully generational basis.
Other actuarial assumption (demographic) rates are based on a review of the L&A Assumption Study for
Police 2020.
F. Discount Rate
The discount rate used to measure the total pension liability was 7.00%. The discount rate used in the
determination of the Total Pension Liability is based on a combination of the expected long-term rate of
return on plan investments and the municipal bond rate.
Cash flow projections were used to determine the extent which the plan’s future net position will be able
to cover future benefit payments. To the extent future benefit payments are covered by the plan’s
projected net position, the expected rate of return on plan investments is used to determine the portion
of the net pension liability associated with those payments. To the extent future benefit payments are not
covered by the plan’s projected net position, the municipal bond rate is used to determine the portion of
the net pension liability associated with those payments.
The Plan’s projected net position is expected to cover future benefit payments in full for the current
employees.
71
NOTES TO FINANCIAL STATEMENTS (Continued)
Page 44
Projected benefit payments are determined during the actuarial process based on assumptions. More
details on the assumptions are in the prior section. The expected contributions are based on the funding
policy of the Plan.
G. Changes in the Net Pension (Asset)/Liability
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability
(A) (B) (A)-(B)
Balances at April 30, 2023 60,067,242$ 55,718,518$ 4,348,724$
Changes for the year:
Service Cost 1,203,476$ -$ 1,203,476$
Interest on the Total Pension Liability 4,081,811 - 4,081,811
Differences Between Expected and Actual Experience (547,697) - (547,697)
Contributions - Employer - 669,181 (669,181)
Contributions - Employee - 522,287 (522,287)
Net Investment Income - 5,172,564 (5,172,564)
Benefit Payments, including Refunds of Employee Contributions (2,399,170) (2,399,170) -
Administrative Expense - (22,961) 22,961
Net Changes 2,338,420$ 3,941,901$ (1,603,481)$
Balances at April 30, 2024 62,405,662$ 59,660,419$ 2,745,243$
H. Sensitivity of the Net Pension (Asset)/Liability to Changes in the Discount Rate
The following presents the plan’s net pension liability, calculated using a Single Discount Rate of 7.00%,
as well as what the plan’s net pension liability would be if it were calculated using a single Discount Rate
that is 1% lower or 1% higher:
Current
1% Decrease Discount Rate 1% Increase
6.00% 7.00% 8.00%
Net Pension (Asset)/Liability 12,046,079$ 2,745,243$ (4,821,268)$
I. Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related
to Pensions
For the year ended April 30, 2024, the City recognized pension expense/(income) of $1,650,072. At
April 30, 2024, the City reported deferred outflows of resources and deferred inflows of resources related
to pensions from the following sources:
Deferred Deferred Net Deferred
Outflows of Inflows of Outflows of
Expense in Future Periods Resources Resources Resources
Differences between expected and actual experience 611,435$ 1,601,135$ (989,700)$
Assumption changes 442,228 101,313 340,915
Net difference between projected and
actual earnings on pension investments 3,010,469 - 3,010,469
Total deferred amounts to be recognized in
pension expense in future periods 4,064,132$ 1,702,448$ 2,361,684$
Amounts reported as deferred outflows of resources and deferred inflows of resources related to
pensions will be recognized in pension expense in future periods as follows:
72
NOTES TO FINANCIAL STATEMENTS (Continued)
Page 45
Net Deferred
Year Ending Outflow s of
April 30 Resources
2025 478,226$
2026 2,021,520
2027 403,160
2028 (383,325)
2029 (73,700)
Thereafter (84,197)
2,361,684$
NOTE 13 - POST EMPLOYMENT BENEFIT COMMITMENTS
Retiree Insurance Plan
A. Plan Overview
In addition to the retirement plans described in Notes 11 and 12, the City provides post-employment
benefits other than pensions (“OPEB”) for retired employees through a single-employer defined benefit
plan. The benefits, benefit levels, employee contributions and employer contributions are governed by
the City and can be amended by the City through its personnel manual and union contracts. The plan is
not accounted for as a trust fund, as an irrevocable trust has not been established to account for the plan.
The plan does not issue a separate report. The activity of the plan is reported in the City’s governmental
activities.
B. Benefits Provided
The City provides postemployment health care benefits to its retirees and certain disable employees. To
be eligible for benefits, an employee must qualify for retirement under one of the City’s retirement plans
or meet COBRA requirements. All health care benefits are provided through the City’s insured health
plan. The benefit levels are the same as those afforded to active employees. The Plan provides the
following coverage:
Medical Coverage
Employees may continue coverage into retirement on the City medical plans if they pay the entire premium. Coverage is also
available for eligible dependents on a pay-all basis. Coverage may continue when Medicare eligibility is reached. Coverage for
dependents can continue upon the death of the retiree given that contributions continue.
Full-time sworn Police employees that suffer a catastrophic injury or are killed in the line of duty receive free lifetime coverage
for the employee, their spouse, and each dependent child under the Public Safety Employee Benefits Act. Participants are
required to obtain insurance fromeither a plan of their spouse or fromtheir other employment if available. Otherwise, they can
elect coverage on the City medical plans.
C. Membership
Membership in the plan consisted of the following at May 1, 2022, the date of the latest actuarial valuation:
Active employees 117
Inactive employees entitled to but not yet receiving benefits -
Inactive employees currently receiving benefits 11
Total 128
D. Total OPEB Liability
The City’s total OPEB liability was measured as of April 30, 2024, and the total OPEB liability was
determined by an actuarial valuation as of May 1, 2022.
73
NOTES TO FINANCIAL STATEMENTS (Continued)
Page 46
E. Actuarial Assumptions
The total OPEB liability in the May 1, 2022 actuarial valuation was determined using the following
actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified:
Actuarial Method Entry Age Normal
Discount rate 4.42%
Inflation 3.00%
Salary Rate Increase 4.00%
Health Care Trend
Initial Trend Rate 5.00%
Ultimate Trend Rate 4.50%
FY the Ultimate Rate is Reached 2039
Mortality
Disability Rates
Election at Retirement
Marital Status
Active Employees: PubG.H-2010(B) Mortality Table - General (below median
income) with future mortality improvements using Scale MP-2020
60% of active employees are assumed to be married and elect spousal
coverage upon retirement. Males are assumed to be three years older than
females. Actual spouse date was used for current retirees.
Retirees: PubG.H-2010(B) Mortality Table - General (below-median income).
Male adjusted 106% and Female adjusted 105% tables, with future mortality
improvements using scale MP-2020
Police Employees and Retirees: PubS.H-2010(A) Mortality Table - Safety with
future mortality improvements using Scale MP-2020.
IMRF Employees: Rates from the December 31, 2022 IMRF Actuarial Valuation
Report
Police Employees: Rates from the City of McHenry Police Pension Fund
Actuarial Valuation for the Year Beginning May 1, 2021
10% of active employees are assumed to elect coverage at retirement
The actuarial assumptions used in the May 1, 2022 valuation were based on information found in the
most recent IMRF and Police Pension actuarial valuation reports. Assumption changes reflect a change
in the discount rate of 0.28 from 4.14% for the beginning of the year values and 4.42% for the disclosure
date.
There is no long-term expected rate of return on OPEB plan investments because the City does not have
a trust dedicated exclusively to the payment of OPEB benefits.
F. Discount Rate
The City does not have a dedicated trust to pay retiree healthcare benefits. Per GASB 75, the discount
rate should be a yield or index rate for 20-year, tax-exempt general obligation municipal bonds with an
average rating of AA/Aa or higher (or equivalent quality on another rating scale).
A rate of 4.42% is used, which is the S&P Municipal Bond 20-Year High-Grade Rate Index as of
April 30, 2024.
74
NOTES TO FINANCIAL STATEMENTS (Continued)
Page 47
G. Changes in the Total OPEB Liability
Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability
(a) (b) (a) - (b)
Balances at April 30, 2023 1,123,249$ -$ 1,123,249$
Changes for the year:
Service Cost 31,931$ -$ 31,931$
Interest on Total OPEB Liability 43,990 - 43,990
Difference between Expected & Actual Experience 250,619 - 250,619
Assumption Changes (39,104) - (39,104)
Benefit Payments (121,352) - (121,352)
Net Changes 166,084$ -$ 166,084$
Balances at April 30, 2024 1,289,333$ -$ 1,289,333$
Increase/(Decrease)
H. Sensitivity of the Total OPEB Liability to Changes in the Discount Rate
The following presents the total OPEB liability of the City, as well as what the City’s total OPEB liability
would be if it were calculated using a discount rate that is 1 percentage-point lower or 1 percentage-point
higher than the current discount rate:
1% Decrease
11.63% Valuation Rate
1% Increase
9.65%
1,439,220$ 1,289,333$ 1,164,940$
Plan's Total OPEB Liability/(Asset)
I. Sensitivity of the Total OPEB Liability to Changes in the Health Care Cost Trend Rates
The following presents the total OPEB liability of the City, as well as what the City’s total OPEB liability
would be if it were calculated using healthcare cost trend rates that are 1 percentage-point lower or 1
percentage-point higher than the current healthcare cost trend rates:
1% Decrease Healthcare Cost 1% Increase
10.97% Valuation Rate 13.36%
1,147,886$ 1,289,333$ 1,461,545$
Plan's Total OPEB Liability/(Asset)
J. OPEB Expense/(Income) and Deferred Outflows of Resources and Deferred Inflows of Resources
Related to OPEB
For the fiscal year ended April 30, 2024, the City recognized OPEB expense/(income) of $(50,970). At
April 30, 2024, the City reported deferred outflows of resources and deferred inflows of resources related
to OPEB from the following sources:
Deferred Outflows Deferred Inflows Net Inflows
of Resources of Resources of Resources
Differences Between Expected and Actual Experience 495,512$ 853,608$ (358,096)$
Changes of Assumptions 1,181,414 1,530,229 (348,815)
Total 1,676,926$ 2,383,837$ (706,911)$
Changes in total OPEB liability related to the difference in actual and expected experience, or changes
in assumptions regarding future events, are recognized in OPEB expense over the expected remaining
service life of all employees (9.90 years, active and retired) in the postretirement plan.
75
NOTES TO FINANCIAL STATEMENTS (Continued)
Page 48
Amounts reported as deferred outflows of resources related to OPEB will be recognized as future OPEB
expense in future periods as follows:
Year ending April 30
Net Inflows of
Resources
2025 (126,892)$
2026 (126,892)
2027 (126,892)
2028 (103,413)
2029 (91,514)
2030-2033 (131,308)
(706,911)$
NOTE 14 - INTERFUND BALANCES AND TRANSFERS
Interfund balances at April 30, 2024, consisted of the following:
Due From Due To Amount
Water and Sewer Fund General Fund 24,614$
General Fund Police Pension Fund 628
The above interfund balances resulted from a time lag between the dates that (1) revenue was collected
and remitted to the appropriate funds and (2) expenditures were incurred and reimbursed between funds.
Interfund transfers for the year ended April 30, 2024, consisted of the following:
Transfer From Transfer To Amount
Water and Sewer Fund Nonmajor Governmental Funds 96,128$
General Fund Nonmajor Governmental Funds 2,136,698
Transfers are used to (1) move revenues from the fund that is required to collect them to the fund that is
required to expend them, and (2) move receipts restricted to debt service from the funds collecting the
receipts to the Debt Service Fund as debt service payments become due. The transfer from the Internal
Service Fund to the General Fund nets to zero on the government-wide financials due to the internal
service funds being combined into the governmental activities’ column.
NOTE 15 - RISK MANAGEMENT
The City is exposed to various risks related to torts; theft of, damage to, and destruction of assets; errors
and omissions; and injuries to employees. The City is a member of the McHenry County Municipal Risk
Management Agency (MCMRMA), a public entity risk pool through which property, general liability,
automobile liability, crime, excess property, excess liability, and boiler and machinery coverage is
provided in excess of specified limits for the members, acting as a single insurable unit.
The relationship between the City and MCMRMA is governed by a contract and by-laws that have been
adopted by resolution of each unit’s governing body. The City is contractually obligated to make all
annual and supplementary contributions for MCMRMA, to report claims on a timely basis, cooperate with
MCMRMA, its claims administrator and attorneys in claims investigation and settlement, and to follow
risk management procedures as outlined by MCMRMA. Members have a contractual obligation to fund
any deficit of MCMRMA attributable to a membership year during which they were a member. MCMRMA
is responsible for administering the self-insurance program and purchasing excess insurance according
to the direction of the Board of Directors. MCMRMA also provides its members with risk management
services, including the defense of and settlement of claims, and establishes reasonable and necessary
loss of reduction and prevention procedures to be followed by the members. During fiscal year 2024,
there was no significant reduction in insurance coverage for any category.
76
NOTES TO FINANCIAL STATEMENTS (Continued)
Page 49
There have been no settlement amounts that have exceeded insurance coverage. The City is insured
under a retrospectively-rated policy for workers’ compensation coverage. Whereas the initial premium
may be adjusted based on actual experience. Adjustments in premiums are recorded when paid or
received. During the year ended April 30, 2024, there were no significant adjustments in premiums based
on actual experience.
NOTE 16 - CONSTRUCTION COMMITMENTS
At any point in time, the City is involved in numerous construction contracts. For the governmental
activities, there were contract commitments in place for various road projects and other various parks
projects as of April 30, 2024 totaling $3,198,283. For the Water and Sewer Fund as of April 30, 2024,
there were contract commitments in place for various water and sewer projects totaling $203,674.
NOTE 17 - CONTINGENCIES
There is no outstanding litigation which may have a materially adverse effect on the City’s financial
position.
NOTE 18 - LEGAL DEBT LIMITATION
The Illinois Compiled Statutes limits the amount of indebtedness to 8.625% of the most recent available
equalized assessed valuation (EAV) of the City.
2023 EAV 940,274,097$
X 8.625%
Debt Margin 81,098,641$
Current Debt 27,371,858
Remaining Debt Margin 53,726,783$
NOTE 19 - TAX ABATEMENT AGREEMENTS
The City negotiates property and sales tax abatement agreements on an individual basis. All abatement
agreements are entered into under the authority of the Mayor, City Clerk, and City Council. The City has
tax abatement agreements with various entities as of April 30, 2024 as follows:
77
NOTES TO FINANCIAL STATEMENTS (Continued)
Page 50
Name of Eligibility Criteria Amount of Taxes
Abatement Type of Taxes and Mechanism Abated During
Agreement Abated of Abatement the Fiscal Year
Castle Automotive
Group Business
District
Development
Agreement
Sales taxes
First $450,000 in sales tax revenues generated within
the Business District Property are retained by the City,
100% of the sales tax revenue generated within the
Business District Property between $450,000 and
$750,000 annually shall be rebated to Castle
Automotive Group, 60% of sales tax revenue generated
within the Business District Property above $750,000
shall be rebated to Castle Automotive Group. The total
rebate for the year cannot exceed 55% of the total
annual sales taxrevenue generated with the Business
District Property. The total rebate payments cannot
exceed $8,441,377.04 or 20 years.
545,934$
McHenry
Commons
Shopping Center
Economic
Incentive
Agreement
Sales taxes
Rebate 100% of base sales tax received by the State
attributable to the gross sales generated at the Hobby
LobbyStore. The total rebate payments cannot exceed
$677,500 or 20 years.
39,057$
CVS Pharmacy
Economic
Incentive
Agreement
Sales taxes
Rebate 50% of sales tax revenues generated by CVS
Pharmacy in calendar years 2016 through 2020 and
25% of sales tax revenues generated by CVS
Pharmacy in calendar years 2021 through 2025. The
total rebate payments cannot exceed $175,000.
-$
3017 Route 120 &
Northwest
Suburban Auto
Group Economic
Incentive
Agreement
Sales taxes
Rebate 50% of base sales tax in calendar years 2017
through 2021 and 25% of base sales tax in calendar
years 2022 through 2026 received by the State
attributable to the gross sales generated atNorthwest
Suburban Auto Group. The total rebate payments
cannot exceed $150,000.
-$
McHenry Donuts,
Inc. Economic
Incentive
Agreement
Sales taxes Rebate 100% of Non-Home Rule Sales taxes in 2017
through 2026 up to $62,500.4,806$
Sunnyside Auto
Finance Company
Economic
Incentive
Agreement
Sales taxes
Rebate percentage during years 2017-2019 75%
above $66,212.Years 2020-2027 50% above $66,212.
Years 2028-2036 25% above $66,212. Not to exceed
$300,000.
-$
Curt Ames DBA
Chain O'Lakes
Brewing Company
Redevelopment
Agreement
TIF Property
Taxes
Rebate 100% of the TIF Increment assessed up to
$17,585.685$
78
NOTES TO FINANCIAL STATEMENTS (Continued)
Page 51
Name of Eligibility Criteria Amount of Taxes
Abatement Type of Taxes and Mechanism Abated During
Agreement Abated of Abatement the Fiscal Year
Seth Wagner and
Associates Real
Estate Company
Property Tax
Abatement
Agreement
Property Taxes
Abate real estate taxes levied against the subject
property each year thatthe taxing body's propertytaxes
exceed the dollar amountfrom the 2014 base property
tax year ($3,458.64) through December 31, 2026.
5,784$
Boone Creek
Crossing LLC
Redevelopment
Agreement
TIF Property
Taxes
Rebate 100% of the TIF Increment assessed up to
$25,000 3,593$
Graham Enterprise
Inc Economic
Incentive
Agreement
Sales taxes
Rebate 50% ofbase and home rule sales taxreceived
above $1,666.67 per month by the State attributable to
the gross sales generated at McHenry BP sites at
5301 Bull Valley Road and 5520 W. Elm Street. The
total rebate payments cannot exceed $1,000,000 and
end December 31,2039. These rebates do not begin
until buildings are torn down at 5301 Bull ValleyRoad,
5520 W. Elm St, and 4410 W. Elm St; and a new
building is built at 5301 Bully Valley Road.
101,498$
BPI, Break Parts
Inc LLC Property
Tax Abatement
Agreement
Property Taxes
10-year 100% abatement over and above the 2018
base property tax year ($12.567.67) commencing with
the2019taxbillpayablein2020throughthe2028tax
bill payable in 2029.
-$
RR McHenry LLC
Economic
Incentive
Agreement
Sales taxes
Rebate 50% ofbase and home rule sales taxreceived
by the State attributable to the property at the NW
corner of IL Route 120 and Chapel Hill Road,
excluding the Riverside Chocolate Factory parcel. The
total rebate payments cannot exceed $1,000,000 and
end after the 20th Sales Tax Incentive Year.
74,374$
Advance Real
Estate
Management LLC
Economic
Incentive
Agreement
Sales taxes
Rebate $75,000 from the base sales tax generated
from the subject property, and in addition, 50% of the
base sales tax in excess of the sales tax revenue
baseline received by the city of$195,745. $250,000 in
tenant incentive improvements are paid when
improvements are made in two tenant spaces. Total
rebate cannot exceed $1,500,000 and ends after the
20th anniversary of the completion date.
75,000$
Jessup
Manufacturing
Company Property
Tax Abatement
Agreement
Property Taxes
Abate real estate taxes levied against the subject
property each year thatthe taxing body's propertytaxes
exceed the dollar amountfrom the 2018 base property
tax year ($4,570.54) through December 31, 2026
2,429$
Munson Ski &
Inboard Water
Sports, Inc. DBA
Munson Ski &
Marine Economic
Incentive
Agreement
Sales taxes
Rebate 100% of base sales tax received by the State
attributable to the gross sales generated at Munson
Ski & Marine at Watertower. Total rebate payments
cannot exceed $500,000 and ends on December 31,
2043.
17,286$
1325 Riverside Inc.
DBA Whiskey
Diablo Economic
Incentive
Agreement
Sales taxes
Rebate 100% of base sales tax received by the State
attributable to the gross sales generated at 1325
Riverside Dr McHenry, IL. Total rebate payments
cannot exceed $62,149.
-$
79
NOTES TO FINANCIAL STATEMENTS (Continued)
Page 52
Name of Eligibility Criteria Amount of Taxes
Abatement Type of Taxes and Mechanism Abated During
Agreement Abated of Abatement the Fiscal Year
Graham Enterprise
Inc Economic
Incentive
Agreement
Sales taxes
Rebate 50% ofbase and home rule sales taxreceived
above $2,000.00 per month by the State attributable to
the gross sales generated at 5520 W. Elm Street
(Ringwood Rd Site). The total rebate payments cannot
exceed $500,000 and end December 31, 2033.
-$
Delights
Enterprises LLC
TIF Property
Taxes
Rebate 100% of the TIF Increment over the 2022 TIF
Increment amount of $1,350.82 assessed up to
$50,000.
-$
NOTE 20 - LEASE ARRANGEMENTS
The City, as lessor, has the following lease arrangements:
Contract
Start
Contract
End Items
Initial
Terms
Optional
Terms
Initial
Contract
Value
Borrow ing
Rate
(per year)
Business-Type Activities
Cell Tower 7/21/2014 7/21/2044 Cell Tower 120 months see below 300,000$ N/A
Lease revenue for the fiscal year ended April 30, 2024 was $25,707.
A summary of deferred inflows - leases activity during the year ended April 30, 2024 is as follows:
Balance Balance
May 1, 2023 Additions Deletions April 30, 2024
Business-Type Activities
Deferred Inflows - Leases:571,256$ -$ -$ 571,256$
Total Deferred Inflows - Leases 571,256$ -$ -$ 571,256$
Less earned revenue amounts:
Deferred Inflows - Leases 25,697$ 25,707$ -$ 51,404$
Total Revenue Earned 25,697$ 25,707$ -$ 51,404$
Total Deferred Inflows - Leases, Net 545,559$ (25,707)$ -$ 519,852$
Revenue was recognized in rental income within the Water and Sewer Fund.
The cell tower lease has an initial lease term of ten years running from July 21, 2014 through
July 21, 2024. The lease also contained an optional extension provision. The parties elected to extend
the term of the lease for four additional five-year terms by mutual agreement by May 21, 2024. Lease
payments for each five-year extension term are as follows:
Lease Term Rental Payment
7/21/2024 - 7/21/2029 156,000$
7/21/2029 - 7/21/2034 162,000
7/21/2034 - 7/21/2039 168,000
7/21/2039 - 7/21/2044 174,000
The lease payments are required to be paid up front at the start of each lease term and are shown as
unavailable revenue within both the proprietary fund and government-wide financial statements. The
City will recognize revenue each year as it is earned.
At April 30, 2024, the annual lease payments and subsequent receipts are as follows:
80
NOTES TO FINANCIAL STATEMENTS (Continued)
Page 53
Year Ending April 30 Principal Interes t Total
2025 122,324$ 33,676$ 156,000$
2026 - - -
2027 - - -
2028 - - -
2029 - - -
2030-2034 104,630 57,370 162,000
2035-2039 126,333 41,667 168,000
2040-2044 151,294 22,706 174,000
Total 504,581$ 155,419$ 660,000$
NOTE 21 - CHANGE IN ACCOUNTING PRINCIPLE
The City has implemented GASB Statement No. 96, Subscription-Based Information Technology
Arrangements. This statement establishes financial reporting standards related to subscription-based
information technology arrangements. Implementation of this standard resulted in recognizing the fair
market value of the liability and asset at the commencement of the agreement. There have been no
changes to the previously issued audited financial statements which would be required on a retrospective
basis.
81
REQUIRED SUPPLEMENTARY INFORMATION
82
4/30/2024* 4/30/2023* 4/30/2022* 4/30/2021* 4/30/2020* 4/30/2019* 4/30/2018* 4/30/2017* 4/30/2016*
TOTAL PENSION LIABILITY
Service Cost 781,374$ 763,605$ 728,190$ 805,614$ 781,612$ 740,595$ 707,796$ 704,466$ 652,882$
Interest on Total Pension Liability 3,383,604 3,290,347 3,102,945 2,967,915 2,796,732 2,641,076 2,542,116 2,419,748 2,286,008
Differences Between Expected and Actual Experience 758,139 (452,379) 979,789 680,117 594,214 381,201 646,124 (98,080) 86,269
Changes of Assumptions (34,416) - - (475,311) - 1,199,530 (1,124,675) (136,959) 44,481
Benefit Payments, Including Refunds of Member Contributions (2,368,371) (2,279,953) (2,207,589) (1,946,703) (1,700,114) (1,543,189) (1,393,390) (1,384,293) (1,144,016)
Net Change in Total Pension Liability 2,520,330$ 1,321,620$ 2,603,335$ 2,031,632$ 2,472,444$ 3,419,213$ 1,377,971$ 1,504,882$ 1,925,624$
Total Pension Liability - Beginning 47,463,892 46,142,272 43,538,937 41,507,305 39,034,861 35,615,648 34,237,677 32,732,795 30,807,171
Total Pension Liability - Ending 49,984,222$ 47,463,892$ 46,142,272$ 43,538,937$ 41,507,305$ 39,034,861$ 35,615,648$ 34,237,677$ 32,732,795$
PLAN FIDUCIARY NET POSITION
Contributions - Employer 816,551$ 903,892$ 1,068,306$ 1,137,523$ 787,631$ 918,212$ 915,963$ 844,878$ 801,851$
Contributions - Member 390,072 375,925 385,024 361,437 344,894 340,841 328,547 366,710 277,350
Net Investment Income 4,409,599 (6,083,896) 7,088,187 5,164,342 5,817,683 (1,672,533) 4,871,136 1,840,322 133,288
Benefit Payments, Including Refunds of Member Contributions (2,368,371) (2,279,953) (2,207,589) (1,946,703) (1,700,114) (1,543,189) (1,393,390) (1,384,293) (1,144,016)
Administrative Expenses 1,206,768 (788,906) (35,322) 131,829 196,150 493,832 (352,231) 293,436 (161,598)
Net Change in Plan Fiduciary Net Position 4,454,619$ (7,872,938)$ 6,298,606$ 4,848,428$ 5,446,244$ (1,462,837)$ 4,370,025$ 1,961,053$ (93,125)$
Plan Net Position - Beginning 40,185,474 48,058,412 41,759,806 36,911,378 31,465,134 32,927,971 28,557,946 26,596,893 26,690,018
Plan Net Position - Ending 44,640,093$ 40,185,474$ 48,058,412$ 41,759,806$ 36,911,378$ 31,465,134$ 32,927,971$ 28,557,946$ 26,596,893$
City's Net Pension Liability 5,344,129$ 7,278,418$ (1,916,140)$ 1,779,131$ 4,595,927$ 7,569,727$ 2,687,677$ 5,679,731$ 6,135,902$
Plan Fiduciary Net Position as a Percentage
of the Total Pension Liability 89.31% 84.67% 104.15% 95.91% 88.93% 80.61% 92.45% 83.41% 81.25%
Covered Payroll 8,668,280$ 8,353,902$ 7,995,414$ 8,031,924$ 7,718,418$ 7,538,685$ 7,241,274$ 6,362,027$ 6,163,340$
Employer's Net Pension Liability as a Percentage
of Covered Payroll 61.65% 87.13% -23.97% 22.15% 59.54% 100.41% 37.12% 89.28% 99.55%
* This information presented is based on the actuarial valuation performed as of the December 31 year end prior to the fiscal year end listed above.
This schedule is presented to illustrate the requirement to show information for ten years. However, until a full ten-year trend is compiled, information is presented for those years for which information is available.
CITY OF MCHENRY, ILLINOIS
ILLINOIS MUNICIPAL RETIREMENT FUND
SCHEDULE OF CHANGES IN THE EMPLOYER'S NET PENSION
LIABILITY AND RELATED RATIOS
APRIL 30, 2024
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83
4/30/2024* 4/30/2023* 4/30/2022* 4/30/2021* 4/30/2020* 4/30/2019* 4/30/2018* 4/30/2017* 4/30/2016*
Actuarially-Determined Contribution 816,552$ 903,892$ 978,639$ 983,107$ 796,541$ 918,212$ 908,056$ 844,877$ 801,851$
Contributions in Relation to Actuarially-Determined Contribution 816,551 903,892 1,068,306 1,137,523 787,631 918,212 915,963 844,878 801,851
Contribution Deficiency/(Excess) 1$ -$ (89,667)$ (154,416)$ 8,910$ -$ (7,907)$ (1)$ -$
Covered Payroll 8,853,736$ 8,499,251$ 7,213,419$ 7,135,984$ 7,780,883$ 7,594,095$ 7,469,026$ 6,362,027$ 6,163,340$
Contributions as a Percentage of Covered Payroll 9.22% 10.63% 14.81% 15.94% 10.12% 12.09% 12.26% 13.28% 13.01%
Notes to Schedule:
Salary Increases: 2.75% to 13.75%, including inflation
Investment Rate of Return: 7.25%
Mortality: For non-disabled retirees, the Pub-2010, Amount-Weighted, below-median income, General, Retiree, Male (adjusted 106%) and Female (adjusted 105%) tables, and future mortality improvements projected using scale MP-2020. For disabled retirees, the Pub-2010,
Amount-Weighted, below-median income, General, Disabled Retiree, Male and Female (both unadjusted) tables, and future mortality improvements projected using scale MP-2020. For active members, the Pub-2010, Amount-Weighted, below-median income, General, Employee,
Male and Female (both unadjusted) tables, and future mortality improvements projected using scale MP-2020.
*Based on Valuation Assumptions used in the December 31, 2021 actuarial valuation; note two year lag between valuation and rate setting.
This schedule is presented to illustrate the requirement to show information for ten years. However, until a full ten-year trend is compiled, information is presented for those years for which information is available.
CITY OF MCHENRY, ILLINOIS
ILLINOIS MUNICIPAL RETIREMENT FUND
SCHEDULE OF EMPLOYER CONTRIBUTION
APRIL 30, 2024
Actuarial Method and Assumptions Used on the Calculation of the 2023 Contribution Rate *
Actuarially determined contribution rates are calculated as of December 31 each year, which are 12 months prior to the beginning of the fiscal year in which contributions are reported.
Remaining Amortization Period: 20-year closed period
Price Inflation: 2.25%, approximate; No explicit price inflation assumption is used in this valuation.
Retirement Age: Experience-based table of rates that are specific to the type of eligibility condition; last updated for the 2020 valuation pursuant to an experience study of the period 2017 to 2019.
Actuarial Cost Method: Aggregate Entry Age Normal
Amortization Method: Level percentage of payroll, closed
Asset Valuation Method: 5-year smoothed market; 20% corridor
Wage Growth: 2.75%
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4/30/2024 4/30/2023 4/30/2022 4/30/2021 4/30/2020 4/30/2019 4/30/2018 4/30/2017 4/30/2016
TOTAL PENSION LIABILITY
Service Cost 1,203,476$ 1,133,068$ 1,104,977$ 1,106,282$ 1,020,016$ 964,573$ 969,843$ 906,395$ 948,282$
Interest 4,081,811 3,939,393 3,739,492 3,687,359 3,400,174 3,244,523 3,100,186 3,130,927 2,940,204
Changes in Benefit Terms - (53,189) - - 267,927 - - - -
Differences Between Expected and Actual Experience (547,697) 226,460 (1,660,449) (143,994) 953,997 165,685 (13,601) (1,315,850) (531,862)
Changes in Assumptions - - - - 1,039,838 - - (1,259,209) 4,137,023
Benefit Payments, Including Refunds of Member Contributions (2,399,170) (2,285,556) (2,428,688) (2,441,099) (2,225,355) (2,077,032) (1,911,914) (1,890,931) (2,046,745)
Net Change in Total Pension Liability 2,338,420$ 2,960,176$ 755,332$ 2,208,548$ 4,456,597$ 2,297,749$ 2,144,514$ (428,668)$ 5,446,902$
Total Pension Liability - Beginning 60,067,242 57,107,066 56,351,734 54,143,186 49,686,589 47,388,840 45,244,326 45,672,994 40,226,092
Total Pension Liability - Ending 62,405,662$ 60,067,242$ 57,107,066$ 56,351,734$ 54,143,186$ 49,686,589$ 47,388,840$ 45,244,326$ 45,672,994$
PLAN FIDUCIARY NET POSITION
Contributions - Employer 669,181$ 621,970$ 655,318$ 26,150,315$ 2,077,704$ 2,017,300$ 1,868,798$ 1,521,914$ 1,386,205$
Contributions - Member 522,287 491,717 467,800 469,279 500,202 427,378 409,415 397,515 513,111
Contributions - Other - - 27,092 435,068 - 1,221 - - -
Net Investment Income 5,172,564 276,331 (3,752,680) 9,474,445 249,889 1,454,043 2,225,784 2,041,694 (228,847)
Benefit Payments, Including Refunds of Member Contributions (2,399,170) (2,285,556) (2,428,688) (2,441,099) (2,225,355) (2,077,032) (1,911,914) (1,890,931) (2,046,745)
Administrative Expenses (22,961) (23,984) (49,007) (25,668) (100,204) (17,813) (18,717) (41,164) (29,539)
Net Change in Plan Fiduciary Net Position 3,941,901$ (919,522)$ (5,080,165)$ 34,062,340$ 502,236$ 1,805,097$ 2,573,366$ 2,029,028$ (405,815)$
Plan Net Position - Beginning 55,718,518 56,638,040 61,718,205 27,655,865 27,153,629 25,348,532 22,775,166 20,746,138 21,151,953
Plan Net Position - Ending 59,660,419$ 55,718,518$ 56,638,040$ 61,718,205$ 27,655,865$ 27,153,629$ 25,348,532$ 22,775,166$ 20,746,138$
City's Net Pension Liability 2,745,243$ 4,348,724$ 469,026$ (5,366,471)$ 26,487,321$ 22,532,960$ 22,040,308$ 22,469,160$ 24,926,856$
Plan Fiduciary Net Position as a Percentage
of the Total Pension Liability 95.60%92.76%99.18% 109.52%51.08%54.65%53.49%50.34%45.42%
Covered-Employee Payroll 5,270,293$ 4,959,035$ 4,717,332$ 4,686,805$ 4,444,767$ 4,224,124$ 4,204,784$ 4,082,315$ 3,880,748$
Employer's Net Pension Liability as a Percentage
of Covered-Employee Payroll 52.09%87.69%9.94% -114.50% 595.92% 533.44% 524.17% 550.40% 642.32%
2024 2023 2022 2021 2020 2019 2018 2017 2016
Annual Money-Weighted Rate of Return,
Net of Investment Expenses 9.42%-1.63%4.26%32.11%-0.48%5.73%9.60%5.60%-1.53%
CITY OF MCHENRY, ILLINOIS
POLICE PENSION PLAN
SCHEDULE OF CHANGES IN THE EMPLOYER'S NET PENSION
LIABILITY AND RELATED RATIOS
APRIL 30, 2024
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4/30/2024 4/30/2023 4/30/2022 4/30/2021 4/30/2020 4/30/2019 4/30/2018 4/30/2017 4/30/2016 4/30/2015
Actuarially-Determined Contribution 671,455$ 625,600$ 2,576,006$ 2,231,742$ 2,082,421$ 2,019,703$ 1,874,219$ 1,524,244$ 1,387,374$ 1,295,577$
Contributions in Relation to Actuarially-Determined Contribution 669,181 621,970 655,318 26,150,315 2,077,704 2,017,300 1,868,798 1,521,914 1,386,205 1,295,101
Contribution Deficiency/(Excess) 2,274$ 3,630$ 1,920,688$ (23,918,573)$ 4,717$ 2,403$ 5,421$ 2,330$ 1,169$ 476$
Covered-Employee Payroll 5,270,293$ 4,959,035$ 4,717,332$ 4,686,805$ 4,422,539$ 4,324,167$ 4,291,809$ 4,082,315$ 3,880,748$ 3,791,467$
Contributions as a Percentage of Covered-Employee Payroll 12.70% 12.54% 13.89% 557.96% 46.98% 46.65% 43.54% 37.28% 35.72% 34.16%
Notes to Schedule:
Termination Rates: 100% of L&A 2020 Illinois Police Termination Rates
Disability Rates: 100% of L&A 2020 Illinois Police Disability Rates
*Based on Valuation Assumptions used in the May 1, 2022 actuarial valuation for the December 2022 tax levy
Investment Rate of Return: 7.00%
Retirement Rates: 100% of L&A 2020 Illinois Police Retirement Rates Capped at Age 65
Mortality Rates: Pub-2010 Adjusted for plan Status, Demographics, and Illinois Public Pension Data, as described
CITY OF MCHENRY, ILLINOIS
POLICE PENSION PLAN
SCHEDULE OF EMPLOYER CONTRIBUTION
LAST TEN FISCAL YEARS
Salary Increases: 3.75% to 10.02%
Actuarial Method and Assumptions Used on the Calculation of the 2023 Contribution Rate *
Actuarial Cost Method: Entry age normal
Amortization Method: Level percentage of payroll, closed
Equivalent Single Amortization Period: 100% funded over 15 years
Asset Valuation Method: 5-year smoothed fair value
Wage Growth: 3.00%
Price Inflation: 2.25%
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4/30/2024 4/30/2023 4/30/2022 4/30/2021 4/30/2020 4/30/2019
TOTAL OPEB LIABILITY
Service Cost 31,931$ 31,957$ 38,558$ 38,278$ 36,378$ 32,964$
Interest 43,990 50,394 103,035 165,119 171,790 209,775
Changes in Benefit Terms - - (3,356,991) - - -
Differences Between Expected and Actual Experience 250,619 (120,341) 393,032 (646,027) - (1,070,724)
Benefit Payments (121,352) (127,036) (174,427) (214,301) (162,019) (167,232)
Changes in Assumptions (39,104) (41,468) (1,390,894) 473,546 513,575 417,482
Other Changes - - - - (91,626) 147,912
Net Change in Total OPEB Liability 166,084$ (206,494)$ (4,387,687)$ (183,385)$ 468,098$ (429,823)$
Total OPEB Liability - Beginning 1,123,249 1,329,743 5,717,430 5,900,815 5,432,717 5,862,540
Total OPEB Liability - Ending 1,289,333$ 1,123,249$ 1,329,743$ 5,717,430$ 5,900,815$ 5,432,717$
Covered-Employee Payroll 11,012,021$ 10,588,482$ 9,802,365$ 9,342,565$ 8,796,233$ * 8,796,233$
Employer's Net OPEB Liability as a Percentage
of Covered-Valuation Payroll 11.71%10.61%13.57%61.20%67.08%61.76%
Notes to Schedule:
The following are the discount rates used in each period:4.42%4.14%3.98%1.83%3.21%3.21%
No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75.
This schedule is presented to illustrate the requirement to show information for ten years. However, until a full ten-year trend is compiled, information is presented for those years for
which information is available.
Changes of Assumptions. Changes of assumptions and other inputs reflect the effects of changes in the discount rate of each period.
There is no actuarially-determined contribution (ADC) or employer contribution in relation to the ADC as the total OPEB liabilities are currently an unfunded obligation.
* - Covered-Employee Payroll is the same as the prior year due to the valuation being a rollforward instead of a new valuation.
CITY OF MCHENRY
OTHER POST-EMPLOYMENT BENEFIT
SCHEDULE OF CHANGES IN THE EMPLOYER'S TOTAL OPEB
LIABILITY AND RELATED RATIOS
APRIL 30, 2024
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Actual
Original Final Amounts
REVENUES
Local Taxes
Property Tax 5,027,941$ 5,027,941$ 5,000,455$
Intergovernmental
State Sales Tax 13,327,374 13,327,374 13,355,379
State Income Tax 4,216,779 4,216,779 4,442,394
State Replacement Tax 200,000 200,000 173,671
State Pull Tab/Games Tax 1,000 1,000 327
Inter Track Wagering Tax 25,000 25,000 33,711
State Telecommunications Tax 200,000 200,000 190,779
Cannabis Use Tax 42,000 42,000 115,721
Other Local Sources
Hotel/Motel Tax 210,000 210,000 218,972
Storage Tax 120,000 120,000 150,232
Franchise Fees 380,000 380,000 341,737
Licenses and Permits 1,180,000 1,180,000 1,253,368
Fines and Forfeitures 423,000 423,000 678,228
Charges for Services 1,321,789 1,321,789 1,576,292
Interest 361,730 361,730 997,534
Local Grants - - 137,473
Miscellaneous
Rent 15,000 15,000 18,694
Royalties 175,000 175,000 175,000
Donations - - 20,800
Annexation Fees 50,000 50,000 -
Reimbursements 3,033,871 3,033,871 3,503,426
Other Miscellaneous 80,000 80,000 146,997
Total Revenues 30,390,484$ 30,390,484$ 32,531,190$
EXPENDITURES
Current
General Office
Administration 1,543,046$ 1,543,046$ 1,227,948$
Elected Officials 80,550 80,550 70,032
Community Development 1,493,227 1,512,344 1,479,562
Finance Department 1,805,311 1,805,311 1,540,557
Human Resources 363,082 363,082 355,955
Economic Development 504,062 504,062 458,152
5,789,278$ 5,808,395$ 5,132,206$
Public Safety
Police Commission 8,328$ 8,328$ 7,143$
Police Department 10,707,541 10,707,541 10,642,963
Dispatch Center 3,156,939 3,156,939 2,749,153
13,872,808$ 13,872,808$ 13,399,259$
Public Works
Administration 538,614$ 538,614$ 477,410$
Street Department 4,139,726 4,139,726 3,676,455
4,678,340$ 4,678,340$ 4,153,865$
Parks and Recreation
Parks and Recreation 2,861,104$ 2,861,104$ 3,061,238$
2,861,104$ 2,861,104$ 3,061,238$
Budgeted Amounts
CITY OF MCHENRY, ILLINOIS
FOR THE YEAR ENDED APRIL 30, 2024
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCES - BUDGET AND ACTUAL
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Actual
Original Final Amounts
Budgeted Amounts
CITY OF MCHENRY, ILLINOIS
FOR THE YEAR ENDED APRIL 30, 2024
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCES - BUDGET AND ACTUAL
EXPENDITURES (Continued)
Capital Outlay
General Office
Administration 2,560,900$ 2,560,900$ 2,068,918$
Public Safety
Police Department 27,500 27,500 28,545
Public Works
Street Department - - 9,880
Parks and Recreation
Parks and Recreation - - 14,334
2,588,400$ 2,588,400$ 2,121,677$
Debt Service
Principal 328,713$ 328,713$ 328,690$
Interest and Fees 19,548 19,548 19,271
348,261$ 348,261$ 347,961$
Total Expenditures 30,138,191$ 30,157,308$ 28,216,206$
EXCESS OR (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 252,293$ 233,176$ 4,314,984$
OTHER FINANCING SOURCES/(USES)
Transfers (2,136,698)$ (2,136,698)$ (2,136,698)$
Sale of City Property 10,000 10,000 12,218
(2,126,698)$ (2,126,698)$ (2,124,480)$
NET CHANGE IN FUND BALANCE (1,874,405)$ (1,893,522)$ 2,190,504$
FUND BALANCE - MAY 1, 2023 19,553,883
FUND BALANCE - APRIL 30, 2024 21,744,387$
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Page 61
CITY OF MCHENRY, ILLINOIS
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
APRIL 30, 2024
NOTE 1 - BUDGET
Budgets are adopted on a basis consistent with generally accepted accounting principles. Annual
budgets are adopted for all funds except custodial funds. All annual budgets lapse at fiscal year-end.
Budgeted expenditures are controlled at the departmental level with the City Administrator’s oversight.
All transfers and any revision that changes the total expenditures not contemplated of any fund must be
approved by the City Council. All budget amendments must be approved by the City Council.
The budget was approved on April 17, 2023 and was amended four times during the fiscal year with the
final amendment occurring on March 4, 2024.
NOTE 2 - EXCESS OF EXPENDITURES OVER BUDGET
For the year ended April 30, 2024, the fund presented as Required Supplementary Information did not
have expenditures that exceeded the budget.
90
SUPPLEMENTAL FINANCIAL INFORMATION
91
Civil Revolving Total
General Annexation Alarm Board Band Defense Loan Tourism Employee General
Fund Fund Fund Fund Fund Fund Fund Flex Fund
ASSETS
Cash and Cash Equivalents 14,002,638$ 1,224,322$ 1,223,585$ 8,511$ 10,293$ 297,737$ 199,506$ 14,818$ 16,981,410$
Investments 2,088,461 21,493 - 1,682 - 3,909 17,559 - 2,133,104
Prepaid Items 141,345 - - - - - - - 141,345
Receivables (Net of Allowance for
Estimated Uncollectible Amounts)
Accounts Receivable - Billed 114,801 6,450 30,638 - - 2,200 2,000 - 156,089
Accounts Receivable - Unbilled 110,823 - 39,350 - - - 23,232 - 173,405
Property Taxes 4,982,277 - - - - - - - 4,982,277
Accrued Interest 40,078 411 - 32 - 75 336 - 40,932
Due from Other Governmental Units 3,324,763 - - - - - - - 3,324,763
Due from Other Funds 24,614 - - - - - - - 24,614
Cable Franchise Fee Receivable 110,426 - - - - - - - 110,426
Inventory 184,560 - - - - - - - 184,560
TOTAL ASSETS 25,124,786$ 1,252,676$ 1,293,573$ 10,225$ 10,293$ 303,921$ 242,633$ 14,818$ 28,252,925$
LIABILITIES
Accounts Payable and Accrued Expenditures 1,204,135$ -$ 62,328$ -$ 4,085$ -$ -$ 14,818$ 1,285,366$
Due to Other Funds 628 - - - - - - - 628
Unearned Revenue 240,267 - - - - - - - 240,267
TOTAL LIABILITIES 1,445,030$ -$ 62,328$ -$ 4,085$ -$ -$ 14,818$ 1,526,261$
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue - Property Taxes 4,982,277$ -$ -$ -$ -$ -$ -$ -$ 4,982,277$
TOTAL DEFERRED INFLOWS OF RESOURCES 4,982,277$ -$ -$ -$ -$ -$ -$ -$ 4,982,277$
FUND BALANCES
Nonspendable 141,345$ -$ -$ -$ -$ -$ -$ -$ 141,345$
Assigned for:
Alarm - - 1,231,245 - - - - - 1,231,245
Tourism - - - - - - 242,633 - 242,633
Band - - - 10,225 - - - - 10,225
Capital Projects 8,459,797 1,252,676 - - - - - - 9,712,473
Revolving Loan - - - - - 303,921 - - 303,921
Civil Defense - - - - 6,208 - - - 6,208
Unassigned 10,096,337 - - - - - - - 10,096,337
TOTAL FUND BALANCES 18,697,479$ 1,252,676$ 1,231,245$ 10,225$ 6,208$ 303,921$ 242,633$ -$ 21,744,387$
TOTAL LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES 25,124,786$ 1,252,676$ 1,293,573$ 10,225$ 10,293$ 303,921$ 242,633$ 14,818$ 28,252,925$
CITY OF MCHENRY, ILLINOIS
COMBINING BALANCE SHEET - GENERAL FUND
APRIL 30, 2024
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Alarm Civil Revolving Total
Annexation Board Band Defense Loan Tourism General
General Fund Fund Fund Fund Fund Fund Fund Fund
REVENUES
Local Taxes
Property Tax 5,000,455$ -$ -$ -$ -$ -$ -$ 5,000,455$
Intergovernmental
State Sales Tax 13,355,379 - - - - - - 13,355,379
State Income Tax 4,442,394 - - - - - - 4,442,394
State Replacement Tax 173,671 - - - - - - 173,671
State Pull Tab/Games Tax 327 - - - - - - 327
Inter Track Wagering Tax 33,711 - - - - - - 33,711
State Telecommunications Tax 190,779 - - - - - - 190,779
Cannabis Use Tax 115,721 - - - - - - 115,721
Other Local Sources
Hotel/Motel Tax - - - - - - 218,972 218,972
Storage Tax 150,232 - - - - - - 150,232
Franchise Fees 341,737 - - - - - - 341,737
Licenses and Permits 1,253,368 - - - - - - 1,253,368
Fines and Forfeitures 678,228 - - - - - - 678,228
Charges for Services 1,342,253 - 234,039 - - - - 1,576,292
Interest 971,477 5,950 11,386 129 43 1,513 7,036 997,534
Local Grants 137,473 - - - - - - 137,473
Miscellaneous
Rent 18,694 - - - - - - 18,694
Royalties - 175,000 - - - - - 175,000
Donations 20,800 - - - - - - 20,800
Reimbursements 3,503,426 - - - - - - 3,503,426
Other Miscellaneous 33,897 - - - - - 113,100 146,997
Total Revenues 31,764,022$ 180,950$ 245,425$ 129$ 43$ 1,513$ 339,108$ 32,531,190$
EXPENDITURES
Current
General Office
Administration 1,135,873$ -$ -$ -$ -$ -$ 92,075$ 1,227,948$
Elected Officials 70,032 - - - - - - 70,032
Community Development 1,479,562 - - - - - - 1,479,562
Finance Department 1,540,557 - - - - - - 1,540,557
Human Resources 355,955 - - - - - - 355,955
Economic Development 458,152 - - - - - - 458,152
5,040,131$ -$ -$ -$ -$ -$ 92,075$ 5,132,206$
Public Safety
Police Commission 7,143$ -$ -$ -$ -$ -$ -$ 7,143$
Police Department 10,515,913 - 121,067 - 5,983 - - 10,642,963
Dispatch Center 2,749,153 - - - - - - 2,749,153
13,272,209$ -$ 121,067$ -$ 5,983$ -$ -$ 13,399,259$
Public Works
Administration 477,410$ -$ -$ -$ -$ -$ -$ 477,410$
Street Department 3,676,455 - - - - - - 3,676,455
4,153,865$ -$ -$ -$ -$ -$ -$ 4,153,865$
CITY OF MCHENRY, ILLINOIS
FUND FINANCIAL STATEMENTS
COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GENERAL FUND
FOR THE YEAR ENDED APRIL 30, 2024
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Alarm Civil Revolving Total
Annexation Board Band Defense Loan Tourism General
General Fund Fund Fund Fund Fund Fund Fund Fund
CITY OF MCHENRY, ILLINOIS
FUND FINANCIAL STATEMENTS
COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GENERAL FUND
FOR THE YEAR ENDED APRIL 30, 2024
EXPENDITURES (Continued)
Current (Continued)
Parks and Recreation
Parks and Recreation 3,048,294$ -$ -$ 12,944$ -$ -$ -$ 3,061,238$
3,048,294$ -$ -$ 12,944$ -$ -$ -$ 3,061,238$
Capital Outlay
General Office
Administration 2,068,918$ -$ -$ -$ -$ -$ -$ 2,068,918$
Public Safety
Police Department 28,545 - - - - - - 28,545
Public Works
Street Department 9,880 - - - - - - 9,880
Parks and Recreation
Parks and Recreation 14,334 - - - - - - 14,334
2,121,677$ -$ -$ -$ -$ -$ -$ 2,121,677$
Debt Service
Principal 263,213$ -$ -$ -$ -$ -$ 65,477$ 328,690$
Interest and Fees 17,798 - - - - - 1,473 19,271
281,011$ -$ -$ -$ -$ -$ 66,950$ 347,961$
Total Expenditures 27,917,187$ -$ 121,067$ 12,944$ 5,983$ -$ 159,025$ 28,216,206$
EXCESS OR (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 3,846,835$ 180,950$ 124,358$ (12,815)$ (5,940)$ 1,513$ 180,083$ 4,314,984$
OTHER FINANCING SOURCES/(USES)
Transfers (2,018,698)$ (35,000)$ -$ 12,000$ 4,000$ -$ (99,000)$ (2,136,698)$
Sale of City Property 12,218 - - - - - - 12,218
(2,006,480)$ (35,000)$ -$ 12,000$ 4,000$ -$ (99,000)$ (2,124,480)$
NET CHANGE IN FUND BALANCE 1,840,355$ 145,950$ 124,358$ (815)$ (1,940)$ 1,513$ 81,083$ 2,190,504$
FUND BALANCE - MAY 1, 2023 16,857,124 1,106,726 1,106,887 11,040 8,148 302,408 161,550 19,553,883
FUND BALANCE - APRIL 30, 2024 18,697,479$ 1,252,676$ 1,231,245$ 10,225$ 6,208$ 303,921$ 242,633$ 21,744,387$
Page 64
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94
Special Special
Capital Asset Municipal Service Service Total
Recreation Capital Maintenance and Capital Capital Asset Debt Motor Motor Developer Area #4 - Area #6 - Other
Pageant Audit Center Improvements Replacement Equipment New Projects Service Fuel Tax Fuel Tax Donations TIF Lakewood Huntersville Governmental
Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund Funds
ASSETS
Cash and Cash Equivalents 1,954$ -$ -$ -$ 122,828$ 7,269$ 331,352$ -$ 1,385,664$ 178,995$ 1,208,646$ 431,416$ -$ -$ 3,668,124$
Deposit with Paying Agent - - - - - - - 36,925 - - - - - - 36,925
Investments - 533 401,451 1,063,509 - 25,194 - 17,376 - - 68,004 - 428 - 1,576,495
Receivables (Net of Allowance for
Estimated Uncollectible Amounts)
Accounts Receivable - Billed - - - - - - - - - - 5,400 - - - 5,400
Accounts Receivable - Unbilled - - 8,612 - 75,394 - 46,389 - - 32,061 155,581 - - - 318,037
Property Taxes - 26,428 - - - - - - - - - 921,473 15,580 - 963,481
Accrued Interest - 10 7,677 20,441 - 482 - 332 - - 1,300 - 8 - 30,250
Due from Other Governmental Units - - - 8,351 - - - - 165,531 - 2,702 - - - 176,584
TOTAL ASSETS 1,954$ 26,971$ 417,740$ 1,092,301$ 198,222$ 32,945$ 377,741$ 54,633$ 1,551,195$ 211,056$ 1,441,633$ 1,352,889$ 16,016$ -$ 6,775,296$
LIABILITIES
Accounts Payable and Accrued Expenditures -$ -$ 20,837$ 1,138$ 7,400$ -$ -$ 318$ -$ -$ 165,595$ 344,067$ -$ -$ 539,355$
Overdrafts - 3,421 281,224 783,447 - - - 43,586 - - - - 362 179,115 1,291,155
Due to Other Governmental Units - - - - - - - - - - 203,674 - - - 203,674
Unearned Revenue - Fees - - - - - - - - - - 6,510 - - - 6,510
TOTAL LIABILITIES -$ 3,421$ 302,061$ 784,585$ 7,400$ -$ -$ 43,904$ -$ -$ 375,779$ 344,067$ 362$ 179,115$ 2,040,694$
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue - Property Taxes -$ 26,428$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 921,473$ 15,580$ -$ 963,481$
TOTAL DEFERRED INFLOWS OF RESOURCES -$ 26,428$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 921,473$ 15,580$ -$ 963,481$
FUND BALANCES
Restricted for:
Capital Projects -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 221,101$ -$ -$ -$ 221,101$
Special Service Areas - - - - - - - - - - - - 33 - 33
Tax Increment Financing - - - - - - - - - - - 87,349 - - 87,349
Highways and Streets - - - - - - - - 552,416 210,678 - - - - 763,094
Assigned for:
Highways and Streets - - - - - - - - 998,779 378 - - - - 999,157
Capital Projects - - - 307,716 190,822 32,945 377,741 - - - 844,753 - - - 1,753,977
Parks and Recreation 1,954 - 115,679 - - - - - - - - - - - 117,633
Debt Service - - - - - - - 10,729 - - - - - - 10,729
Special Service Areas - - - - - - - - - - - - 41 - 41
Unassigned - (2,878) - - - - - - - - - - - (179,115) (181,993)
TOTAL FUND BALANCES 1,954$ (2,878)$ 115,679$ 307,716$ 190,822$ 32,945$ 377,741$ 10,729$ 1,551,195$ 211,056$ 1,065,854$ 87,349$ 74$ (179,115)$ 3,771,121$
TOTAL LIABILITIES, DEFERRED INFLOWS
OF RESOURCES, AND FUND BALANCES 1,954$ 26,971$ 417,740$ 1,092,301$ 198,222$ 32,945$ 377,741$ 54,633$ 1,551,195$ 211,056$ 1,441,633$ 1,352,889$ 16,016$ -$ 6,775,296$
CITY OF MCHENRY, ILLINOIS
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS
APRIL 30, 2024
Page 65
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95
Special Special
Capital Asset Municipal Service Service Total
Recreation Capital Maintenance and Capital Capital Asset Debt Motor Motor Developer Area #4 - Area #6 - Other
Pageant Audit Center Improvements Replacement Equipment New Projects Service Fuel Tax Fuel Tax Donations TIF Lakewood Huntersville Governmental
Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund Funds
REVENUES
Local Taxes
Property Tax -$ 26,339$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 848,809$ 15,584$ -$ 890,732$
Intergovernmental
State Motor Fuel Tax - - - - - - - - 1,196,826 368,488 - - - - 1,565,314
State Grants - - - - - - - - - - - 8,947 - - 8,947
Federal Grants - - - - - - - - 67,939 - - - - - 67,939
Other Local Sources
Electric Use Tax - - - - 1,105,129 - - - - - - - - - 1,105,129
Gas Use Tax - - - - - - 377,181 - - - - - - - 377,181
Charges for Services - 22,123 559,501 - - - - - - - - - - - 581,624
Interest 9 34 29,110 55,423 1,612 1,519 560 2,016 71,964 321 25,124 3,434 41 - 191,167
Miscellaneous
Rent - - 15,750 - - - - - - - 40,866 - - - 56,616
Donations - - - - - - - - - - 831,645 450,000 - - 1,281,645
Reimbursements - - - - - - - - - - 155,581 55,000 - - 210,581
Other Miscellaneous - - - - - - - - - - 53,092 - - - 53,092
9$ 48,496$ 604,361$ 55,423$ 1,106,741$ 1,519$ 377,741$ 2,016$ 1,336,729$ 368,809$ 1,106,308$ 1,366,190$ 15,625$ -$ 6,389,967$
EXPENDITURES
Current
General Office 9$ 51,350$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 68,018$ -$ -$ 119,377$
Public Works - - - - - - - - 26 - - - - - 26
Parks and Recreation - - 689,202 - - - - - - - 303,634 - - - 992,836
Capital Outlay - - 31,613 3,013 1,781,740 - - - 2,204,104 275,000 658,427 1,221,289 - - 6,175,186
Debt Service
Principal - - - - - - - 1,695,000 - - - - - - 1,695,000
Interest and Fees - - - - - - - 653,839 - - - - - - 653,839
9$ 51,350$ 720,815$ 3,013$ 1,781,740$ -$ -$ 2,348,839$ 2,204,130$ 275,000$ 962,061$ 1,289,307$ -$ -$ 9,636,264$
EXCESS OR (DEFICIENCY) OF REVENUES
OVER EXPENDITURES -$ (2,854)$ (116,454)$ 52,410$ (674,999)$ 1,519$ 377,741$ (2,346,823)$ (867,401)$ 93,809$ 144,247$ 76,883$ 15,625$ -$ (3,246,297)$
OTHER FINANCING SOURCES/(USES)
Transfers - - 120,000 - - - - 2,349,941 - - - (221,535) (15,580) - 2,232,826
NET CHANGE IN FUND BALANCES -$ (2,854)$ 3,546$ 52,410$ (674,999)$ 1,519$ 377,741$ 3,118$ (867,401)$ 93,809$ 144,247$ (144,652)$ 45$ -$ (1,013,471)$
FUND BALANCES - MAY 1, 2023 1,954 (24) 112,133 255,306 865,821 31,426 - 7,611 2,418,596 117,247 921,607 232,001 29 (179,115) 4,784,592
FUND BALANCES - APRIL 30, 2024 1,954$ (2,878)$ 115,679$ 307,716$ 190,822$ 32,945$ 377,741$ 10,729$ 1,551,195$ 211,056$ 1,065,854$ 87,349$ 74$ (179,115)$ 3,771,121$
CITY OF MCHENRY, ILLINOIS
COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
OTHER GOVERNMENTAL FUNDS
FOR THE YEAR ENDED APRIL 30, 2024
Page 66
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96
Capital Utility Marina Total
Water/Sewer Development Improvements Operations Water and
Fund Fund Fund Fund Sewer Funds
ASSETS
Current Assets
Cash and Cash Equivalents 6,845,769$ 4,775,538$ -$ 375,450$ 11,996,757$
Investments 442,764 375,685 1,935,392 104,057 2,857,898
Prepaid Items 40,522 - - - 40,522
Receivables (Net of Allowance for
Estimated Uncollectible Amounts)
Accounts Receivable - Billed 77,386 - - - 77,386
Accounts Receivable - Unbilled 1,351,463 - - - 1,351,463
Accrued Interest 10,082 7,816 36,898 2,197 56,993
Due from Other Governmental Units 97,714 - - - 97,714
Due from Other Funds - 172,258 - - 172,258
8,865,700$ 5,331,297$ 1,972,290$ 481,704$ 16,650,991$
Non-Current Assets
Right-of-Use Lease Receivable 504,581$ -$ -$ -$ 504,581$
Capital Assets
Land 2,208,117 - - - 2,208,117
Buildings 2,736,098 - - - 2,736,098
Systems and Equipment 113,961,975 - - - 113,961,975
Vehicles 1,827,450 - - - 1,827,450
Construction in Progress 129,933 - - - 129,933
Less: Accumulated Depreciation (45,198,782) - - - (45,198,782)
76,169,372$ -$ -$ -$ 76,169,372$
TOTAL ASSETS 85,035,072$ 5,331,297$ 1,972,290$ 481,704$ 92,820,363$
DEFERRED OUTFLOWS OF RESOURCES
Pension Expense/Revenue - IMRF 786,915$ -$ -$ -$ 786,915$
OPEB Expense/Revenue 244,282 - - - 244,282
TOTAL DEFERRED OUTFLOWS OF RESOURCES 1,031,197$ -$ -$ -$ 1,031,197$
LIABILITIES
Current Liabilities
Accounts Payable and Accrued Expenses 302,859$ -$ -$ -$ 302,859$
Overdraft - - 1,937,804 - 1,937,804
Security Deposits Held - 3,000 - - 3,000
Due to Other Funds 196,872 - - - 196,872
Accrued Interest 226,080 - - - 226,080
Compensated Absences - Current 98,154 - - - 98,154
Total OPEB Liability - Current 15,235 - - - 15,235
IEPA Loan Payable - Current 1,590,322 - - - 1,590,322
Bonds Payable - Current 461,517 - - - 461,517
2,891,039$ 3,000$ 1,937,804$ -$ 4,831,843$
Non-Current Liabilities
IMRF Net Pension Liability 1,320,629$ -$ -$ -$ 1,320,629$
Total OPEB Liability 192,134 - - - 192,134
IEPA Loan Payable (Net of Current Portion Shown Above) 23,591,400 - - - 23,591,400
Bonds Payable (Net of Current Portion Shown Above)3,002,775 - - - 3,002,775
28,106,938$ -$ -$ -$ 28,106,938$
TOTAL LIABILITIES 30,997,977$ 3,000$ 1,937,804$ -$ 32,938,781$
DEFERRED INFLOWS OF RESOURCES
Pension Revenue/Expense - IMRF 79,880$ -$ -$ -$ 79,880$
OPEB Revenue/Expense 347,260 - - - 347,260
Unavailable Revenue - Right-of-Use Leases - Lessor 519,852 - - - 519,852
TOTAL DEFERRED INFLOWS OF RESOURCES 946,992$ -$ -$ -$ 946,992$
NET POSITION
Net Investment in Capital Assets 46,973,375$ -$ -$ -$ 46,973,375$
Unrestricted/(Deficit)7,147,925 5,328,297 34,486 481,704 12,992,412
TOTAL NET POSITION 54,121,300$ 5,328,297$ 34,486$ 481,704$ 59,965,787$
CITY OF MCHENRY, ILLINOIS
COMBINING SCHEDULE OF NET POSITION
WATER AND SEWER FUNDS
APRIL 30, 2024
Page 67
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97
Capital Utility Marina Total
Water/Sewer Development Improvements Operations Water and
Fund Fund Fund Fund Sewer Funds
OPERATING REVENUES
Charges for Services
Customer Fees 5,440,352$ 706,826$ -$ -$ 6,147,178$
Capital Fees 1,079,410 - - - 1,079,410
Debt Service Fees 2,403,763 - - - 2,403,763
Penalties 78,631 - - - 78,631
Water Meter Sales 27,670 - - - 27,670
Other 17,175 - - - 17,175
9,047,001$ 706,826$ -$ -$ 9,753,827$
OPERATING EXPENSES
Water Department
Personnel Salaries 478,317$ -$ -$ -$ 478,317$
Miscellaneous Personnel Expenses 76,136 - - - 76,136
Other Operating Expenses 1,013,695 - 72,148 - 1,085,843
Depreciation 660,033 - - - 660,033
Sewer Department
Personnel Salaries 837,957 - - - 837,957
Miscellaneous Personnel Expenses 335,589 - - - 335,589
Other Operating Expenses 1,632,054 - 3,214 13,805 1,649,073
Depreciation 2,174,417 - - - 2,174,417
Utility Work Department
Personnel Salaries 538,492 - - - 538,492
Miscellaneous Personnel Expenses 234,484 - - - 234,484
Other Operating Expenses 50,500 - - - 50,500
8,031,674$ -$ 75,362$ 13,805$ 8,120,841$
OPERATING INCOME/(LOSS)1,015,327$ 706,826$ (75,362)$ (13,805)$ 1,632,986$
NON-OPERATING REVENUE/(EXPENSE)
Interest Income 184,900$ 126,853$ 103,093$ 5,187$ 420,033$
Unrealized Gain/Loss - 94,692 - - 94,692
Rental Income 25,707 - - 13,000 38,707
Interest and Fees (600,687) - - - (600,687)
Amortization 46,517 - - - 46,517
Donated Public Improvements - Water 315,780 - - - 315,780
Donated Public Improvements - Sewer 302,030 - - - 302,030
274,247$ 221,545$ 103,093$ 18,187$ 617,072$
INCOME/(LOSS) BEFORE CONTRIBUTIONS
AND TRANSFERS 1,289,574$ 928,371$ 27,731$ 4,382$ 2,250,058$
TRANSFERS (TO)/FROM OTHER FUNDS (111,708) (250,000) 265,580 - (96,128)
CHANGE IN NET POSITION 1,177,866$ 678,371$ 293,311$ 4,382$ 2,153,930$
NET POSITION - MAY 1, 2023 52,943,434 4,649,926 (258,825) 477,322 57,811,857
NET POSITION - APRIL 30, 2024 54,121,300$ 5,328,297$ 34,486$ 481,704$ 59,965,787$
CITY OF MCHENRY, ILLINOIS
COMBINING SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
WATER AND SEWER FUNDS
FOR THE YEAR ENDED APRIL 30, 2024
Page 68
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98
Employee Risk Information Total
Insurance Management Technology Internal Service
Fund Fund Fund Funds
ASSETS
Current Assets
Cash and Cash Equivalents -$ 59,734$ 592,596$ 652,330$
Investments - - 8,786 8,786
Prepaid Items 80,946 - 8,312 89,258
Receivables (Net of Allowance for
Estimated Uncollectible Amounts)
Accounts Receivable - Billed 110 - - 110
Accounts Receivable - Unbilled - 6,445 - 6,445
Accrued Interest - - 168 168
81,056$ 66,179$ 609,862$ 757,097$
Non-Current Assets
Capital Assets
Systems and Equipment -$ -$ 821,680$ 821,680$
Less: Accumulated Depreciation - - (593,150) (593,150)
-$ -$ 228,530$ 228,530$
TOTAL ASSETS 81,056$ 66,179$ 838,392$ 985,627$
DEFERRED OUTFLOWS OF RESOURCES
Pension Expense/Revenue - IMRF -$ -$ 115,350$ 115,350$
OPEB Expense/Revenue - - 35,808 35,808
TOTAL DEFERRED OUTFLOWS OF RESOURCES -$ -$ 151,158$ 151,158$
LIABILITIES
Current Liabilities
Accounts Payable and Accrued Expenses 250$ 7,748$ 41,047$ 49,045$
Overdrafts 62,797 - - 62,797
Unearned Revenue 81,873 - - 81,873
Compensated Absences - Current - - 12,641 12,641
Total OPEB Liability - Current - - 2,233 2,233
144,920$ 7,748$ 55,921$ 208,589$
Non-Current Liabilities
IMRF Net Pension Liability -$ -$ 175,004$ 175,004$
Total OPEB Liability - - 12,701 12,701
-$ -$ 187,705$ 187,705$
TOTAL LIABILITIES 144,920$ 7,748$ 243,626$ 396,294$
DEFERRED INFLOWS OF RESOURCES
Pension Revenue/Expense - IMRF -$ -$ 11,709$ 11,709$
OPEB Revenue/Expense - - 50,903 50,903
DEFERRED INFLOWS OF RESOURCES -$ -$ 62,612$ 62,612$
NET POSITION
Net Investment in Capital Assets -$ -$ 220,206$ 220,206$
Unrestricted/(Deficit)(63,864) 58,431 463,106 457,673
TOTAL NET POSITION (63,864)$ 58,431$ 683,312$ 677,879$
CITY OF MCHENRY, ILLINOIS
COMBINING SCHEDULE OF NET POSITION
INTERNAL SERVICE FUNDS
APRIL 30, 2024
Page 69
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99
Employee Risk Information Total
Insurance Management Technology Internal Service
Fund Fund Fund Funds
OPERATING REVENUES
Charges for Services 3,739,001$ 1,124,505$ 1,293,852$ 6,157,358$
Other Income 594 - 594
3,739,595$ 1,124,505$ 1,293,852$ 6,157,952$
OPERATING EXPENSES
Personnel Salaries -$ -$ 276,876$ 276,876$
Miscellaneous Personnel Expenses 3,713,821 - 83,081 3,796,902
Other Operating Expenses 3,171 1,040,286 661,190 1,704,647
Depreciation - - 57,780 57,780
3,716,992$ 1,040,286$ 1,078,927$ 5,836,205$
OPERATING INCOME/(LOSS)22,603$ 84,219$ 214,925$ 321,747$
NON-OPERATING REVENUE/(EXPENSE)
Interest Income 4,813 401 2,581 7,795
INCOME/(LOSS) BEFORE CONTRIBUTIONS
AND TRANSFERS 27,416$ 84,620$ 217,506$ 329,542$
CAPITAL CONTRIBUTIONS - - - -
TRANSFERS (TO)/FROM OTHER FUNDS - - - -
CHANGE IN NET POSITION 27,416$ 84,620$ 217,506$ 329,542$
NET POSITION - MAY 1, 2023 (91,280) (26,189) 465,806 348,337
NET POSITION - APRIL 30, 2024 (63,864)$ 58,431$ 683,312$ 677,879$
CITY OF MCHENRY, ILLINOIS
COMBINING SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED APRIL 30, 2024
Page 70
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100
Retained
Developmental Personnel Total
Escrow Escrow Custodial
Fund Fund Funds
ASSETS
Current Assets
Cash and Cash Equivalents 6,885$ 10,121$ 17,006$
Accounts Receivable (Net of Allowance for
Estimated Uncollectible Amounts) - 38,633 38,633
TOTAL ASSETS 6,885$ 48,754$ 55,639$
TOTAL LIABILITIES -$ -$ -$
NET POSITION
Restricted for Developers, Property Owners, and Others 6,885$ 48,754$ 55,639$
TOTAL NET POSITION 6,885$ 48,754$ 55,639$
CITY OF MCHENRY, ILLINOIS
COMBINING SCHEDULE OF NET POSITION
CUSTODIAL FUNDS
APRIL 30, 2024
Page 71
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101
Developmental Retained Total
Escrow Personnel Escrow Custodial
Funds Funds Funds
ADDITIONS
Contributions
Developers, Property Owners, and Others -$ 52,048$ 52,048$
Total Contributions -$ 52,048$ 52,048$
Investment Income
Interest and Dividends 30$ -$ 30$
Net Investment Income 30$ -$ 30$
TOTAL ADDITIONS 30$ 52,048$ 52,078$
DEDUCTIONS
Engineering and Legal Fees -$ 52,048$ 52,048$
Miscellaneous - 450 450
TOTAL DEDUCTIONS -$ 52,498$ 52,498$
NET INCREASE/(DECREASE)30$ (450)$ (420)$
NET POSITION - MAY 1, 2023 6,855 49,204 56,059
NET POSITION - APRIL 30, 2024 6,885$ 48,754$ 55,639$
CITY OF MCHENRY, ILLINOIS
CUSTODIAL FUNDS
YEAR ENDED APRIL 30, 2024
COMBINING SCHEDULE OF CHANGES IN FIDUCIARY NET POSITION
Page 72
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102
Actual
Original Final Amounts
REVENUES
Local Taxes
Property Tax 805,000$ 805,000$ 848,809$
Intergovernmental
State Grants 200,000 200,000 8,947
Other Local Sources
Interest 3,000 3,000 3,434
Miscellaneous
Donations 450,000 450,000 450,000
Reimbursements 55,000 55,000 55,000
Total Revenues 1,513,000$ 1,513,000$ 1,366,190$
EXPENDITURES
Current
General Office 20,000$ 79,860$ 68,018$
Capital Outlay 1,180,000$ 1,180,000$ 1,221,289$
Total Expenditures 1,200,000$ 1,259,860$ 1,289,307$
EXCESS OR (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 313,000$ 253,140$ 76,883$
OTHER FINANCING SOURCES/(USES)
Transfers (221,535) (221,535) (221,535)
NET CHANGE IN FUND BALANCE 91,465$ 31,605$ (144,652)$
FUND BALANCE - MAY 1, 2023 232,001
FUND BALANCE - APRIL 30, 2024 87,349$
Budgeted Amounts
CITY OF MCHENRY, ILLINOIS
FOR THE YEAR ENDED APRIL 30, 2024
SPECIAL REVENUE FUND - TAX INCREMENT FINANCING FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCES - BUDGET AND ACTUAL
Page 73
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103
City of McHenry
333 S Green Street
McHenry, Illinois 60050
Phone: (815) 363-2100
Fax: (815) 363-2119
www.cityofmchenry.org
CONSENT AGENDA ITEM
DATE: November 4, 2024
TO: City Council
RE: R.I.S.E. Up Event Hours Change
AGENDA ITEM SUMMARY:
Council approved the R.I.S.E. Up event at the Council meeting on August 19, 2024. The opening
event hours and liquor license times on Friday, September 12th and Saturday, September 13th
were approved by City Council to begin at 4:30 p.m. However, to lessen the pressure of
attendee arrival at the same peak hour, organizers have requested that gate opening times be
amended to 3:00 p.m. In addition to the amended gate opening time, organizers are also
requesting to amend the corresponding liquor license time for Friday and Saturday to 3:00
p.m. The live band acts would be pushed up from starting at 4:30 p.m. to instead beginning
at 3:00 p.m.
It is advisable to allow the event to open at 3:00 p.m. and to amend the liquor license so that
traffic concerns can be lessened as well encouraging patrons to enter the more highly
controlled event grounds at an earlier time.
RECOMMENDATION:
Approve the amended opening hours and liquor license times of the 2025 R.I.S.E. Up
event for Friday, September 12th and Saturday September 13th from 4:30pm to 3:00pm.
The City of McHenry is dedicated to providing its citizens, businesses, and visitors with the highest quality of programs and
services in a customer-oriented, efficient, and fiscally responsible manner. 104
Department of
Economic Development
McHenry Municipal Center
(815) 363-2110 (o)
(815) 363-2128 (f)
333 Green Street
McHenry, Illinois 60050
www.cityofmchenry.org
CONSENT AGENDA
TO: Mayor and City Council
FROM: Douglas Martin, Director of Economic Development
FOR: November 4, 2024
RE: Resolution designating November 17-23, 2024 National Apprenticeship Week in
the City of McHenry
ATT: Resolution Designating November 17-23, 2024 National Apprenticeship Week in
the City of McHenry
National Apprenticeship Week is a nationwide celebration that brings together business leaders,
career seekers, labor, educational institutions, and other critical partners to demonstrate their
support for apprenticeships. Attached is a resolution designating November 17-23, 2024 National
Apprenticeship Week in the City of McHenry.
If the City Council concurs, it is recommended that the attached resolution designating
November 17-23, 2024 National Apprenticeship Week in the City of McHenry be approved.
105
Resolution 24-
A RESOLUTION DESIGNATING NOVEMBER 17-23, 2024
NATIONAL APPRENTICESHIP WEEK IN THE CITY OF MCHENRY
WHEREAS, National Apprenticeship Week is an annual National Celebration that offers leaders in business,
labor, education, and other critical partners a chance to express their support for apprenticeships and gives
apprenticeship sponsors the opportunity to showcase their programs, facilities and apprentices in their community;
and
WHEREAS, National Apprenticeship Week is an opportunity to recognize the positive impact
apprenticeships have on youth, adults, businesses, and the economy as a whole; and
WHEREAS, This year’s theme is “10 Years of Engagement, Expansion, and Innovation”; and
WHEREAS, Weekly events highlight the benefits of apprenticeships in preparing a highly skilled workforce
to meet the talent needs of employers across diverse industries; and
WHEREAS, Apprenticeships are a strong career pathway that provide employees the opportunity to earn a
salary while learning the skills necessary to succeed in high-demand careers; and
WHEREAS, Apprenticeships result in the obtainment of an industry-recognized credential and embody the
highest competency standards, instructional rigor, and quality training of all career-based programs of study; and
WHEREAS, The City of McHenry is committed to supporting employers in developing apprenticeships to
cultivate a highly skilled workforce that supports our state and local economy and helps businesses thrive through
numerous plans to enable companies to expand or relocate to the City of McHenry but also to remain within the City
of McHenry; and
WHEREAS, the purpose of National Apprenticeship Week is to feature numerous opportunities City of
McHenry and other McHenry County companies offer and to inform employers, parents and students about the
pathways that could benefit them as they decide on future careers and to find and sustain enough skilled people to fill
positions throughout the City of McHenry and McHenry County; and
NOW, THEREFORE, BE IT RESOLVED THAT NOVEMBER 17-23, 2024 SHALL BE DESIGNATED
NATIONAL APPRENTICESHIP WEEK IN THE CITY OF MCHENRY, ILLINOIS.
ADOPTED this the 4h day of November 2024.
Wayne S. Jett, Mayor
Trisha Ramel, City Clerk
106
City of McHenry
Council Meeting Minutes
10.21.24
MINUTES
REGULAR CITY COUNCIL MEETING
Monday, October 21, 2024, 7:00 p.m.
City Council Chambers, 333 S Green St, McHenry, IL 60050
Roll Call: Mayor Jett opened with the roll call.
Members present Alderman Santi, Alderman Glab, Alderman McClatchey, Alderwoman
Bassi, Alderman Davis, Alderman Koch, Alderwoman Miller, and Mayor Jett. Others present
Attorney McArdle- absent, Brandy Quance, Administrator Ostrovsky, Director of Community
Development Polerecky, Finance Director Lynch, Director of Parks and Recreation Hobson,
Director of Economic Development Martin, Chief of Police Birk, City Planner Sheriff -absent,
Director of Public Works Wirch, Deputy Clerk Johnson, and City Clerk Ramel.
Pledge of Allegiance: Mayor Jett led the pledge.
Public Comment: Chris Moore, a resident, who lives off of Veterans Parkway, talked about
the apartments and the path that has been continued it is the same level as the road, what is
dividing it are the reflective markers and there is nothing to stop it if there is a car that goes off
that. He thinks there could be more patrol going that way because of the speed and is also
concerned about the break-ins. Talked about the rest of the city and how it could be built up.
Consent Agenda. Motion to Approve the following Consent Agenda Items as presented:
A. Authorize the Mayor to sign the Fourth Addendum to Tolling Agreement with the other
designated parties to toll the video gaming Push Tax through October 31, 2025
B. October 7, 2024, City Council Meeting Minutes
C. Issuance of $278,475.68 Checks
D. As Needed $568,853.94 Checks
*Clerks note: there was a change in the minutes from the last meeting and those were updated
per Alderwoman Miller’s request.
A motion was made by Alderwoman Miller and seconded by Alderman Koch to approve
the Consent Agenda Item as presented: Roll Call: Vote:7-ayes: Alderman Santi, Alderman
Glab, Alderman McClatchey, Alderwoman Bassi, Alderman Davis, Alderman Koch,
Alderwoman Miller. 0-nays, 0-abstained. Motion carried.
Individual Action Item Agenda
107
City of McHenry
Council Meeting Minutes
10.21.24
2
A. ShamRocks the Fox
A motion to approve the ShamRocks the Fox St. Patrick’s Day Festival:
1) an event tent at 1202 Riverside Drive (Miller Point Park) with live music on Friday
3/14/25 from 5pm to 11pm, Saturday 3/15/25 from 10am to 11pm and Sunday
3/16/25 from 12pm to 7pm; 2) a special event liquor license to permit the sale of
mixed alcoholic drinks, beer, wine and malt beverages at Miller Point Park on Friday
3/14 from 5pm to 10:45pm, Saturday 3/15 from 11am – 10:45pm and Sunday 3/16
from 12pm to 6:45pm; 3) open container carry of alcoholic beverages in plastic cups
throughout Green Street and Riverside Drive Areas on 3/15 from 11pm – 6pm and
on 3/16 from 12pm – 6pm; 4) street closures of Kane Avenue from Center to Green,
Green Street from Kane Avenue to Pearl Street, Pearl Street from Green Street to
Riverside Drive, and Riverside Drive from Pea rl Street to Broad Street and Broad
Street to Court Street in conjunction with the St. Patrick’s Day Parade from 11:45 am
to approximately 1pm; 5) closure of Pearl Street from Riverside Drive to River Road
from 9:30am to 1:30pm to allow pedestrians to view the river dyeing; and 6)
permission for a fireworks display at the conclusion of the event at 7pm Sunday
3/16/25. (Director Hobson)
Alderman Glab stated that this is not as family-oriented but would support it in this case.
Alderman McClatchey had an issue with the trollies but received a good explanation from the
administrator.
Director Hobson explained more about the trolly and the paths.
Alderman Davis asked more about parking, but per Director Hobson, there have not been any
complaints about parking. The plan is to utilize the trolly to the best location.
Alderwoman Miller would like to see a fleet of golf cards that would help those who park too far
away and would like to see opportunities to help those back and forth to their cars. Director
Hobson stated that he did get a suggestion for this.
A motion was made by Alderman McClatchey and seconded by Alderman Santi t o
approve Individual Agenda with the option to add an addendum : Roll Call: Vote: 7-ayes:
Alderman Santi, Alderman Glab, Alderman McClatchey, Alderwoman Bassi, Alderman Davis,
Alderman Koch. 0-nays. 0-abstained. Motion approved.
Discussion Item Agenda: None
Staff Reports
Provided the 1st meeting of each month.
Mayor’s Report: None
City Council Comments: Alderman McClatchey wanted to bring up the Evergreen Park
Homeowners Association, stating that Director Polerecky helped with their questions.
108
City of McHenry
Council Meeting Minutes
10.21.24
3
Alderman Glab received an email and commented that many others may have too, about the
food truck out on 120, instead of waiting a year can we review it sooner because it could be
affecting nearby businesses? Would like to bring it back for discussion sooner.
Alderman Davis wanted to know if they are in compliance, yes, confirmed by Director
Polerecky.
Alderwoman Miller wanted to comment on the Chamber event Dinner Under the Stars, it was
a huge success and amazing, thank you for supporting it, well attended.
Executive Session if needed: None
Adjourn: A motion was made by Alderman Santi and seconded by Alderwoman Miller to
adjourn the meeting at 7:11 Roll Call: Vote: 7 -ayes: Alderman Santi, Alderman Glab,
Alderman McClatchey, Alderwoman Bassi, Alderman Davis, Alderman Koch, Alderwoman
Miller. 0-nay-, 0-abstained. Motion carried.
X
Mayor Wayne Jett
X
City Clerk Trisha Ramel
Adjourn 7:10
Alderman Santi__2_, Alderman Glab___, AldermanMcClatchey____,Alderwoman
Bassi___,
Alderman Davis___, Alderman Koch____, Alderwoman Miller__1__
109
Expense Approval Register
McHenry, IL List of Bills City Council Meeting - 11-4-24
Vendor Name Payable Number Post Date Description (Item) Account Number Amount
Vendor: BAKER & SON CO, PETER
BAKER & SON CO, PETER 48915 11/04/2024 N50 SFC 100-33-6110 251.90
Vendor BAKER & SON CO, PETER Total: 251.90
Vendor: BAXTER & WOODMAN
BAXTER & WOODMAN 0264823 11/04/2024 RT 120 LIGHTING 445-00-8900 3,280.00
Vendor BAXTER & WOODMAN Total: 3,280.00
Vendor: COMED
COMED INV0016642 11/04/2024 UTIL 100-33-5520 3,899.70
COMED INV0016642 11/04/2024 UTIL 100-42-5510 1,429.83
COMED INV0016642 11/04/2024 UTIL 100-45-5510 71.57
COMED INV0016642 11/04/2024 UTIL 400-00-5510 1,816.86
COMED INV0016643 11/04/2024 UTIL 510-31-5510 5,271.25
COMED INV0016643 11/04/2024 UTIL 510-32-5510 4,483.47
Vendor COMED Total: 16,972.68
Vendor: ERA VALDIVA CONTRACTORS, INC
ERA VALDIVA CONTRACTORS,
24125001 11/04/2024 MGL TANK 510-31-8500 292,500.00
Vendor ERA VALDIVA CONTRACTORS, INC Total: 292,500.00
Vendor: FIRST RESPONDERS WELLNESS CENTER
FIRST RESPONDERS WELLNESS
22983 11/04/2024 PRE-EMPLOYMENT EXAM 100-21-5110 610.00
Vendor FIRST RESPONDERS WELLNESS CENTER Total: 610.00
Vendor: FOX VALLEY FIRE & SAFETY
FOX VALLEY FIRE & SAFETY IN00719795 11/04/2024 MTHLY MAINT 225-00-5110 3,275.00
Vendor FOX VALLEY FIRE & SAFETY Total: 3,275.00
Vendor: JH EVENTS AND FLOWERS, INC
JH EVENTS AND FLOWERS, INC 6667 11/04/2024 MEYER FUNERAL 100-01-6940 85.50
Vendor JH EVENTS AND FLOWERS, INC Total: 85.50
Vendor: MCHENRY COUNTY COUNCIL OF GOVERNMENTS
MCHENRY COUNTY COUNCIL
3146 11/04/2024 JETT - OCTOBER MTG 100-01-5410 50.00
Vendor MCHENRY COUNTY COUNCIL OF GOVERNMENTS Total: 50.00
Vendor: NICOR GAS
NICOR GAS INV0016644 11/04/2024 UTIL 100-42-5510 529.39
NICOR GAS INV0016644 11/04/2024 UTIL 100-43-5510 48.51
NICOR GAS INV0016644 11/04/2024 UTIL 100-45-5510 176.70
NICOR GAS INV0016644 11/04/2024 UTIL 100-46-5510 23.47
NICOR GAS INV0016644 11/04/2024 UTIL 400-00-5510 442.82
NICOR GAS INV0016645 11/04/2024 UTIL 510-31-5510 217.07
NICOR GAS INV0016645 11/04/2024 UTIL 510-32-5510 6,372.86
Vendor NICOR GAS Total: 7,810.82
Vendor: ROBINSON ENGINEERING LTD
ROBINSON ENGINEERING LTD 24100092 11/04/2024 MCH WATER TOWER 4 PH I,II &
510-31-8500 4,488.75
Vendor ROBINSON ENGINEERING LTD Total: 4,488.75
Vendor: US BANK EQUIPMENT FINANCE
US BANK EQUIPMENT FINANCE 540609351 11/04/2024 PW COPIER 620-00-5110 336.21
Vendor US BANK EQUIPMENT FINANCE Total: 336.21
Grand Total: 329,660.86
10/30/2024 12:13:09 PM
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Expense Approval Register Packet: APPKT03186 - 11-4-24 AP CKS
Fund Summary
Fund Expense Amount
100 - GENERAL FUND 7,176.57
225 - ALARM BOARD FUND 3,275.00
400 - RECREATION CENTER FUND 2,259.68
445 - CAPITAL ASSET MAINTENANCE & REPLACEMENT
3,280.00
510 - WATER/SEWER FUND 313,333.40
620 - INFORMATION TECHNOLOGY FUND 336.21
Grand Total: 329,660.86
111
Expense Approval Register
McHenry, IL #2 List of Bills City Council Meeting - 11-4-24
Vendor Name Payable Number Post Date Description (Item) Account Number Amount
Vendor: ADAMS STEEL SERVICE & SUPPLY, INC
ADAMS STEEL SERVICE &
391654 11/04/2024 12"x1/2 Plate INV# 510-32-5375 106.00
Vendor ADAMS STEEL SERVICE & SUPPLY, INC Total: 106.00
Vendor: ADVANCED AUTOMATION AND CONTROLS INC
ADVANCED AUTOMATION AND
24-4735 11/04/2024 Belt Press Troubleshooting #
510-32-5110 240.00
ADVANCED AUTOMATION AND
24-4736 11/04/2024 Inv# 24-4736 510-31-5110 240.00
Vendor ADVANCED AUTOMATION AND CONTROLS INC Total: 480.00
Vendor: ALLIANCE CONTRACTORS INC
ALLIANCE CONTRACTORS INC 24009-6 11/04/2024 Riverwalk Phase 4 - Pay #6 290-00-8900 59,669.26
Vendor ALLIANCE CONTRACTORS INC Total: 59,669.26
Vendor: ALTORFER INDUSTRIES, INC
ALTORFER INDUSTRIES, INC PM6A0030486 11/04/2024 Invoice#PM6A0030486 -
100-23-5110 2,198.00
Vendor ALTORFER INDUSTRIES, INC Total: 2,198.00
Vendor: APCO INTERNATIONAL INC
APCO INTERNATIONAL INC 1130888 11/04/2024 Invoice#1130888 - Membership
100-23-5430 1,012.00
Vendor APCO INTERNATIONAL INC Total: 1,012.00
Vendor: ARAMARK REFRESHMENT SERVICES LLC
ARAMARK REFRESHMENT
06961897 11/04/2024 Coffee #06961897 100-01-6110 324.73
Vendor ARAMARK REFRESHMENT SERVICES LLC Total: 324.73
Vendor: AT&T
AT&T 3796405906 11/04/2024 Voice Over IP - IP-Flex 620-00-5320 474.42
AT&T 5647145904 11/04/2024 AT&T Monthly Phone Invoice 620-00-5320 699.60
AT&T 5677215909 11/04/2024 AT&T Fiber Internet 250M 620-00-5110 1,247.50
Vendor AT&T Total: 2,421.52
Vendor: AUTO TECH CENTERS INC
AUTO TECH CENTERS INC INV089938 11/04/2024 313/343 (89938) 100-22-5370 1,198.96
Vendor AUTO TECH CENTERS INC Total: 1,198.96
Vendor: BARRINGTON PARK DISTRICT
BARRINGTON PARK DISTRICT 112621 11/04/2024 Trip - Chicago Botanic Garden 100-46-5110 342.00
Vendor BARRINGTON PARK DISTRICT Total: 342.00
Vendor: BLUE LINE, THE
BLUE LINE, THE 47020 11/04/2024 Employment listing 100-22-5110 348.00
Vendor BLUE LINE, THE Total: 348.00
Vendor: BUSS FORD SALES
BUSS FORD SALES 5052359 11/04/2024 331 (5052359) 100-22-5370 149.10
BUSS FORD SALES 5052360 11/04/2024 321 (5052360) 100-22-5370 75.92
BUSS FORD SALES 5052444 11/04/2024 323 (5052444) 100-22-5370 708.46
Vendor BUSS FORD SALES Total: 933.48
Vendor: C & R'S DELIGHTS, LLC
C & R'S DELIGHTS, LLC FG 1 11/04/2024 Facade Grant Award for Rita's
100-06-5110 15,000.00
Vendor C & R'S DELIGHTS, LLC Total: 15,000.00
Vendor: CABAY & COMPANY INC
CABAY & COMPANY INC 70192 11/04/2024 70192 100-03-6110 479.63
CABAY & COMPANY INC 70230 11/04/2024 custodial supplies 400-00-6111 457.50
Vendor CABAY & COMPANY INC Total: 937.13
Vendor: CASTLE AUTOMOTIVE GROUP
CASTLE AUTOMOTIVE GROUP 5116966 11/04/2024 310 (5116966) 100-22-5370 344.90
Vendor CASTLE AUTOMOTIVE GROUP Total: 344.90
10/30/2024 12:33:20 PM
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Expense Approval Register Packet: APPKT03188 - 11-4-24 AP CKS
Vendor Name Payable Number Post Date Description (Item) Account Number Amount
Vendor: CINTAS
CINTAS 5236838709 11/04/2024 invoice 5236838709 400-00-6130 222.21
Vendor CINTAS Total: 222.21
Vendor: CITY ELECTRIC SUPPLY
CITY ELECTRIC SUPPLY INV#MCH/030660 11/04/2024 MS#2 Wash Water Pump
510-32-5375 48.83
Vendor CITY ELECTRIC SUPPLY Total: 48.83
Vendor: CRITICAL TECHNOLOGY SOLUTIONS
CRITICAL TECHNOLOGY
3225547 11/04/2024 Milestone Support 620-00-5110 371.25
Vendor CRITICAL TECHNOLOGY SOLUTIONS Total: 371.25
Vendor: DREISILKER ELECTRIC MOTORS INC
DREISILKER ELECTRIC MOTORS
INV#I22690 11/04/2024 2M Belt Press INV#I22690 510-32-5375 44.72
DREISILKER ELECTRIC MOTORS
INV#I23188 11/04/2024 Dryer GearBox coupling
510-32-5375 468.56
Vendor DREISILKER ELECTRIC MOTORS INC Total: 513.28
Vendor: DURA WAX COMPANY INC, THE
DURA WAX COMPANY INC, THE 429660 11/04/2024 City use gargage bags 100-01-6110 3,650.00
Vendor DURA WAX COMPANY INC, THE Total: 3,650.00
Vendor: E. ARIEL ROOFING SOLUTIONS, LLC
E. ARIEL ROOFING SOLUTIONS,
4626 11/04/2024 4626 100-03-5120 360.00
Vendor E. ARIEL ROOFING SOLUTIONS, LLC Total: 360.00
Vendor: ED'S RENTAL & SALES INC
ED'S RENTAL & SALES INC 436544-1 11/04/2024 Tool Rental 100-45-6110 80.00
Vendor ED'S RENTAL & SALES INC Total: 80.00
Vendor: FIRST RESPONDERS WELLNESS CENTER
FIRST RESPONDERS WELLNESS
22969 11/04/2024 Invoice#22969 -
100-23-5110 610.00
Vendor FIRST RESPONDERS WELLNESS CENTER Total: 610.00
Vendor: FISCHER BROS FRESH
FISCHER BROS FRESH 23288 11/04/2024 Concrete for 2025 Road
100-33-6110 1,323.00
FISCHER BROS FRESH 23306 11/04/2024 Concrete for Home Depot
510-31-6110 496.88
FISCHER BROS FRESH 23314 11/04/2024 Concrete for 2025 Road
100-33-6110 1,189.13
FISCHER BROS FRESH 23340 11/04/2024 Concrete for 2025 Road
100-33-6110 1,005.00
FISCHER BROS FRESH 23364 11/04/2024 Concrete 2025 ADA Road
100-33-6110 923.00
FISCHER BROS FRESH 23397 11/04/2024 Concrete - 2025 Road Program
100-33-6110 969.00
FISCHER BROS FRESH 23409 11/04/2024 Concrete - 2025 Road Program
100-33-6110 858.88
Vendor FISCHER BROS FRESH Total: 6,764.89
Vendor: FLOCK GROUP INC
FLOCK GROUP INC INV-46386 11/04/2024 Flock Falcon ALPR - Elm St. &
620-00-5110 8,750.00
Vendor FLOCK GROUP INC Total: 8,750.00
Vendor: FOLDING PARTITION SERVCES, INC
FOLDING PARTITION SERVCES,
13312 11/04/2024 Folding Wall Maintenance 400-00-5375 746.00
Vendor FOLDING PARTITION SERVCES, INC Total: 746.00
Vendor: FOXCROFT MEADOWS INC
FOXCROFT MEADOWS INC 2600 11/04/2024 Landscape Supplies 100-45-6110 271.00
FOXCROFT MEADOWS INC 2603 11/04/2024 Landscape Supplies 100-45-6110 81.00
Vendor FOXCROFT MEADOWS INC Total: 352.00
Vendor: GALLS LLC
GALLS LLC 029301881 11/04/2024 Invoice #029301881 100-23-4510 53.47
GALLS LLC 029320366 11/04/2024 Invoice #029320366 100-22-4510 88.88
GALLS LLC 029364504 11/04/2024 Uniform - Michael Hodge 620-00-4510 222.26
GALLS LLC 029414342 11/04/2024 Invoice#029414342 - Uniform
100-22-4510 182.99
GALLS LLC 029421439 11/04/2024 Invoice#029421439-Uniform
100-22-4510 75.58
GALLS LLC 029427156 11/04/2024 Invoice#029427156--Christina
100-22-4510 156.11
Vendor GALLS LLC Total: 779.29
Vendor: GARDNER DENVER NASH LLC
GARDNER DENVER NASH LLC 902718077 11/04/2024 Sludge Building blower Repairs
510-32-5375 2,097.33
Vendor GARDNER DENVER NASH LLC Total: 2,097.33
10/30/2024 12:33:20 PM
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Vendor Name Payable Number Post Date Description (Item) Account Number Amount
Vendor: GASVODA & ASSOCIATES INC
GASVODA & ASSOCIATES INC 24MRA0074CHF 11/04/2024 Inv# 24MRA0074CHF 510-31-6110 580.00
GASVODA & ASSOCIATES INC 24MRA0086CHF 11/04/2024 Inv# 24MRA0086CHF 510-31-6110 684.40
Vendor GASVODA & ASSOCIATES INC Total: 1,264.40
Vendor: HACH COMPANY
HACH COMPANY 14175358 11/04/2024 Inv# ??? 510-31-6110 840.65
HACH COMPANY 14223964 11/04/2024 Inv# 14223964 510-31-6110 199.23
HACH COMPANY 14228906 11/04/2024 Inv# 14228906 510-31-6110 108.68
Vendor HACH COMPANY Total: 1,148.56
Vendor: HANSEN'S ALIGNMENT, DON
HANSEN'S ALIGNMENT, DON 6753 11/04/2024 331 (6753) 100-22-5370 120.00
Vendor HANSEN'S ALIGNMENT, DON Total: 120.00
Vendor: HAWKINS INC
HAWKINS INC 6885725 11/04/2024 Chemical delivery #6885725 510-32-6110 8,025.40
HAWKINS INC 6885989 11/04/2024 Inv# 6885989 510-31-6110 7,051.57
HAWKINS INC 6887567/CR6888004 11/04/2024 chemical delivery CREDIT
510-32-6110 -30.00
HAWKINS INC 6887567/CR6888004 11/04/2024 chemical delivery #6887567 510-32-6110 9,315.90
Vendor HAWKINS INC Total: 24,362.87
Vendor: HD SUPPLY
HD SUPPLY 828076729 11/04/2024 828076729 100-03-6110 128.78
Vendor HD SUPPLY Total: 128.78
Vendor: HEARTLAND BUSINESS SYSTEMS, LLC
HEARTLAND BUSINESS
737548-H 11/04/2024 Axis D1110 Video Decoder 620-00-8300 512.36
Vendor HEARTLAND BUSINESS SYSTEMS, LLC Total: 512.36
Vendor: HIGHSTAR TRAFFIC
HIGHSTAR TRAFFIC 8842 11/04/2024 Signs for Sign Program #8842 100-33-6110 2,986.70
HIGHSTAR TRAFFIC 8843 11/04/2024 Street Sign post & anchor
100-33-6110 283.55
HIGHSTAR TRAFFIC 8844 11/04/2024 Hardware for Sign Program
100-33-6110 7,105.10
HIGHSTAR TRAFFIC 8923 11/04/2024 2 Pedestrian Crossing Blinker
100-33-6110 3,526.00
Vendor HIGHSTAR TRAFFIC Total: 13,901.35
Vendor: IMPRESSIVE IMAGES
IMPRESSIVE IMAGES 7183 11/04/2024 Sean Johnson Uniforms #7183 510-31-4510 60.00
Vendor IMPRESSIVE IMAGES Total: 60.00
Vendor: IN-PIPE TECHNOLOGY COMPANY INC
IN-PIPE TECHNOLOGY
2705 11/04/2024 Monthly Invoice # 2705 510-32-5110 8,525.00
Vendor IN-PIPE TECHNOLOGY COMPANY INC Total: 8,525.00
Vendor: INTERSTATE BILLING SERVICE INC
INTERSTATE BILLING SERVICE
3039081258 11/04/2024 411 (3039081258) 100-33-5370 292.57
INTERSTATE BILLING SERVICE
3039145870 11/04/2024 817 (3039145870) 510-35-5370 161.26
INTERSTATE BILLING SERVICE
3039213968 11/04/2024 411 (3039213968) 100-33-5370 186.90
Vendor INTERSTATE BILLING SERVICE INC Total: 640.73
Vendor: JENSEN SALES CO INC, LEE
JENSEN SALES CO INC, LEE INV#0030034-00 11/04/2024 Lifting Straps INV# 0030034-00 510-32-6110 41.00
JENSEN SALES CO INC, LEE INV#0030035-00 11/04/2024 I-Beam Clamp INV#0030035-00 510-32-6110 360.00
Vendor JENSEN SALES CO INC, LEE Total: 401.00
Vendor: JG UNIFORMS INC
JG UNIFORMS INC 137095 11/04/2024 Invoice#137095 - Uniform
100-22-4510 178.00
Vendor JG UNIFORMS INC Total: 178.00
Vendor: KIMBALL MIDWEST
KIMBALL MIDWEST 102703619 11/04/2024 kimball stock (102703619) 100-33-5370 378.81
KIMBALL MIDWEST 102726786 11/04/2024 kimball stock (102726786) 100-33-5370 313.53
Vendor KIMBALL MIDWEST Total: 692.34
Vendor: KOMLINE-SANDERSON
KOMLINE-SANDERSON INV#42061288 11/04/2024 2 Meter BFP Drum Bearings
510-32-5375 2,187.32
Vendor KOMLINE-SANDERSON Total: 2,187.32
10/30/2024 12:33:20 PM
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Vendor Name Payable Number Post Date Description (Item) Account Number Amount
Vendor: L&S ELECTRIC INC
L&S ELECTRIC INC INV#0002712 11/04/2024 Boone Lagoon Lift Station INV#
510-32-5380 6,089.00
Vendor L&S ELECTRIC INC Total: 6,089.00
Vendor: MAGNET FORENSICS LLC
MAGNET FORENSICS LLC SIN073721 11/04/2024 Invoice#SIN073721- Tech Lab 100-22-5110 33,105.00
MAGNET FORENSICS LLC SIN07396 11/04/2024 Invoice#SIN073596 - TechLab 100-22-5110 6,425.00
Vendor MAGNET FORENSICS LLC Total: 39,530.00
Vendor: MARK 1 LANDSCAPE, INC
MARK 1 LANDSCAPE, INC 34580 11/04/2024 34580 100-03-5110 180.00
Vendor MARK 1 LANDSCAPE, INC Total: 180.00
Vendor: MCCANN INDUSTRIES INC
MCCANN INDUSTRIES INC P59487 11/04/2024 Stakes Road Program ADAs
100-33-6110 811.75
MCCANN INDUSTRIES INC P60210 11/04/2024 Sport Court construction 100-45-6110 110.50
Vendor MCCANN INDUSTRIES INC Total: 922.25
Vendor: MCEDC
MCEDC 231184 11/04/2024 MCEDC Annual Dinner 100-01-5110 625.00
Vendor MCEDC Total: 625.00
Vendor: MCHENRY AREA CHAMBER OF COMMERCE
MCHENRY AREA CHAMBER OF
77518 11/04/2024 Night Under the Stars 2024 -
100-01-5110 500.00
Vendor MCHENRY AREA CHAMBER OF COMMERCE Total: 500.00
Vendor: MCMASTER-CARR SUPPLY CO
MCMASTER-CARR SUPPLY CO 35009111 11/04/2024 Grating Clips # 35009111 510-32-6110 40.31
MCMASTER-CARR SUPPLY CO INV#35133615 11/04/2024 Thearded Rod and Nut
510-32-5375 92.41
Vendor MCMASTER-CARR SUPPLY CO Total: 132.72
Vendor: MEADE INC
MEADE INC 710431 11/04/2024 Traffic Signal Red Light Out/
100-33-5110 261.59
Vendor MEADE INC Total: 261.59
Vendor: MENDEZ LANDSCAPING & BRICK PAVERS INC
MENDEZ LANDSCAPING &
17566 11/04/2024 Recreation Center Landscaping 400-00-5110 500.00
Vendor MENDEZ LANDSCAPING & BRICK PAVERS INC Total: 500.00
Vendor: MID AMERICAN WATER OF WAUCONDA INC
MID AMERICAN WATER OF
275948W 11/04/2024 Flange 90, MJ Adapter, Gaskets
510-31-6110 614.44
Vendor MID AMERICAN WATER OF WAUCONDA INC Total: 614.44
Vendor: MIDWEST HOSE AND FITTINGS INC
MIDWEST HOSE AND FITTINGS
238445 11/04/2024 Hydraulic Lines 2meter GBT
510-32-5375 180.92
MIDWEST HOSE AND FITTINGS
238478 11/04/2024 Equipment Repairs 100-45-5370 82.70
Vendor MIDWEST HOSE AND FITTINGS INC Total: 263.62
Vendor: MINUTEMAN PRESS OF MCH
MINUTEMAN PRESS OF MCH Q1224-624 11/04/2024 MIB Flyers for Schools 100-47-6110 361.98
Vendor MINUTEMAN PRESS OF MCH Total: 361.98
Vendor: MOTOROLA SOLUTIONS - STARCOM21 NETWORK
MOTOROLA SOLUTIONS -
8779120240903-OCT 11/04/2024 8779120240903 - Motorola
100-22-5320 4,172.00
Vendor MOTOROLA SOLUTIONS - STARCOM21 NETWORK Total: 4,172.00
Vendor: NATURESCAPE DESIGN INC
NATURESCAPE DESIGN INC 94319 11/04/2024 Riverwalk irrigation 100-45-5110 380.00
Vendor NATURESCAPE DESIGN INC Total: 380.00
Vendor: NELBUD SERVICES LLC
NELBUD SERVICES LLC 35479444 11/04/2024 1415 Ind. Annual Sprinkler
100-33-5115 370.00
Vendor NELBUD SERVICES LLC Total: 370.00
Vendor: NISRA
NISRA 3017 2024 11/04/2024 24-25 NISRA DUES 100-41-5410 150,707.00
Vendor NISRA Total: 150,707.00
Vendor: NORTHWEST ELECTRICAL SUPPLY CO INC
NORTHWEST ELECTRICAL
17621114 11/04/2024 Riverwalk Repairs 100-45-6110 500.00
Vendor NORTHWEST ELECTRICAL SUPPLY CO INC Total: 500.00
10/30/2024 12:33:20 PM
115
Expense Approval Register Packet: APPKT03188 - 11-4-24 AP CKS
Vendor Name Payable Number Post Date Description (Item) Account Number Amount
Vendor: NORTHWESTERN MEDICINE OCC HEALTH
NORTHWESTERN MEDICINE
555626 11/04/2024 New Hires #555626 100-05-5110 126.00
NORTHWESTERN MEDICINE
555928 11/04/2024 New Hires, Randoms #555928 100-05-5110 427.00
NORTHWESTERN MEDICINE
555928 11/04/2024 Post Acc #555928 610-00-6940 42.00
Vendor NORTHWESTERN MEDICINE OCC HEALTH Total: 595.00
Vendor: OFFICIAL FINDERS LLC
OFFICIAL FINDERS LLC 31065 11/04/2024 Invoice 31065 100-47-5110 100.00
Vendor OFFICIAL FINDERS LLC Total: 100.00
Vendor: PETTIBONE & CO, P F
PETTIBONE & CO, P F 186591 11/04/2024 Invoice#186591 - Badges/Hat
100-22-6110 1,076.80
Vendor PETTIBONE & CO, P F Total: 1,076.80
Vendor: PLATINUM HEATING & COOLING INC
PLATINUM HEATING &
13156 11/04/2024 1415 Industrial - Furnace
100-33-5115 875.00
Vendor PLATINUM HEATING & COOLING INC Total: 875.00
Vendor: PRECISION PAVEMENT MARKINGS, INC
PRECISION PAVEMENT
4911 11/04/2024 2024 Paint Pavement Striping
100-33-5110 6,370.42
Vendor PRECISION PAVEMENT MARKINGS, INC Total: 6,370.42
Vendor: PROSHRED SECURITY
PROSHRED SECURITY 1563168 11/04/2024 Invoice #1563168 100-22-5110 86.55
Vendor PROSHRED SECURITY Total: 86.55
Vendor: PUCHALSKI GOODLOE LLP
PUCHALSKI GOODLOE LLP INV0000917 11/04/2024 MADER LEGAL SERVICES -
760-00-5110 5,808.19
Vendor PUCHALSKI GOODLOE LLP Total: 5,808.19
Vendor: QUBIT NETWORKS
QUBIT NETWORKS 13989 11/04/2024 Extreme Networks Support
620-00-5110 6,555.11
Vendor QUBIT NETWORKS Total: 6,555.11
Vendor: RABINE DOORS & DOCKS
RABINE DOORS & DOCKS 4743 11/04/2024 Maint. Building Garage Door
510-32-5375 498.00
Vendor RABINE DOORS & DOCKS Total: 498.00
Vendor: RIVERSIDE BAKE SHOP
RIVERSIDE BAKE SHOP 266742 11/04/2024 Snowplow Meeting Supplies
100-33-6110 65.52
Vendor RIVERSIDE BAKE SHOP Total: 65.52
Vendor: ROTARY CLUB OF MCHENRY
ROTARY CLUB OF MCHENRY 3786 11/04/2024 Quarterly Dues 100-22-5410 110.00
Vendor ROTARY CLUB OF MCHENRY Total: 110.00
Vendor: SIRCHIE FINGER PRINT LABORATORIES
SIRCHIE FINGER PRINT
0656993-IN 11/04/2024 Invoice #0656993-IN 100-22-6210 310.53
SIRCHIE FINGER PRINT
0668500-IN 11/04/2024 Invoice#0668500-IN - Evidence
100-22-6210 246.13
Vendor SIRCHIE FINGER PRINT LABORATORIES Total: 556.66
Vendor: SMITH, DEBBIE
SMITH, DEBBIE 101 11/04/2024 Pink Out Shirt & Cap Orders
100-42-5110 1,885.00
Vendor SMITH, DEBBIE Total: 1,885.00
Vendor: SNAPOLOGY OF MCHENRY
SNAPOLOGY OF MCHENRY 1303 11/04/2024 Cont - Snapology Inv. 1303 100-46-5110 154.00
Vendor SNAPOLOGY OF MCHENRY Total: 154.00
Vendor: TODAY'S UNIFORMS
TODAY'S UNIFORMS 265451 11/04/2024 Invoice #265451 100-23-4510 55.95
TODAY'S UNIFORMS 266190 11/04/2024 Invoice #266190 100-23-4510 69.95
TODAY'S UNIFORMS 266485 11/04/2024 Invoice# - Uniform Order -
100-22-4510 151.90
TODAY'S UNIFORMS 267136 11/04/2024 Invoice#267136 100-22-4510 20.90
TODAY'S UNIFORMS 267137 11/04/2024 22 100-22-4510 59.95
TODAY'S UNIFORMS 267339 11/04/2024 Invoice#267339 - Uniform
100-22-4510 293.80
TODAY'S UNIFORMS 267561 11/04/2024 Invoice#267561 100-22-4510 59.95
TODAY'S UNIFORMS 267733 11/04/2024 Invoice#267733 - Uniform
100-23-4510 59.95
Vendor TODAY'S UNIFORMS Total: 772.35
10/30/2024 12:33:20 PM
116
Expense Approval Register Packet: APPKT03188 - 11-4-24 AP CKS
Vendor Name Payable Number Post Date Description (Item) Account Number Amount
Vendor: TOWN PLANNER
TOWN PLANNER 2025 11/04/2024 2025 Town Planner City Ads 100-01-5110 600.00
Vendor TOWN PLANNER Total: 600.00
Vendor: VANDERSTAPPEN SURVEYING & ENGINEERING
VANDERSTAPPEN SURVEYING &
59258 11/04/2024 59258 100-03-5110 2,400.00
Vendor VANDERSTAPPEN SURVEYING & ENGINEERING Total: 2,400.00
Vendor: VEOLIA WATER TECHNOLOGIES, INC
VEOLIA WATER TECHNOLOGIES,
43298 11/04/2024 Disc Filter Backwash Pump
510-32-5375 9,475.39
Vendor VEOLIA WATER TECHNOLOGIES, INC Total: 9,475.39
Vendor: WOODMASTER FENCE
WOODMASTER FENCE 10087.1 11/04/2024 Risk Management: Petersen
610-00-5960 1,512.00
Vendor WOODMASTER FENCE Total: 1,512.00
Vendor: ZOHO CORPORATION
ZOHO CORPORATION 2417539 11/04/2024 Manage Engine Licenses 620-00-5110 140.00
Vendor ZOHO CORPORATION Total: 140.00
Grand Total: 410,529.36
10/30/2024 12:33:20 PM
117
Expense Approval Register Packet: APPKT03188 - 11-4-24 AP CKS
Fund Summary
Fund Expense Amount
100 - GENERAL FUND 263,756.50
290 - TIF FUND 59,669.26
400 - RECREATION CENTER FUND 1,925.71
510 - WATER/SEWER FUND 58,843.20
610 - RISK MANAGEMENT FUND 1,554.00
620 - INFORMATION TECHNOLOGY FUND 18,972.50
760 - POLICE PENSION FUND 5,808.19
Grand Total: 410,529.36
118
City of McHenry
333 S Green Street
McHenry, Illinois 60050
Phone: (815) 363-2100
Fax: (815) 363-2119
cityofmchenry.org
The City of McHenry is dedicated to providing its citizens, businesses, and visitors with the highest quality of programs and
services in a customer-oriented, efficient, and fiscally responsible manner.
AGENDA ITEM
DATE: November 4, 2024
TO: City Council
FROM: Deputy City Clerk Monte Johnson
RE: TRIO liquor license
AGENDA ITEM SUMMARY:
Graham Enterprise, Inc has submitted their liquor license application for the new TRIO gas
station at 520 W Elm Street. The background check is underway, and Staff does not anticipate
any problems with the background check. Part of the Economic Incentive Agreement that was
passed by City Council on August 21, 2023, read, “The City will support the efforts to gain a
liquor license at the Ringwood Road Site….”
An ordinance must be passed to increase the number of available Class C liquor licenses.
RECOMMENDATION:
A motion to pass an ordinance Amending Section 4-2-6, Subsection D.3. Class C License, of the
McHenry City Code; and approve a Class C Liquor License to Graham Enterprise, Inc. dba Trio -
138, at 5520 W Elm Street, McHenry, pending the successful completion of a background
check.
119
1VIcHenr
License Classification
Application Date*
10/18/2024
License Type*
A Class"D"(Special EvenP'license has a separate application
A B C
E F G
H
Liccnsc Classifications-Link to classifications list in the City Code
New/Transfer*
New Business Transfer of License
Applicant Business
Name of Business*
Graham Enterprise, Inc.dba TRIO- 138
Name on License
Name to appear on liquor license(if different than above).
Address*
5520 W. Elm Street, McHenry, IL 60050
Phone*
to come(not set up yet)
Email*
licenses@grahamei.com
Type of Business*
Sole Proprietor Partnership LLC or Corporation
Principal Business Type*
Bar Restaurant
Retail Store Hotel
Gas Station Gaming Parlor
Other
A separate application will need to be filled out for video gaming. The issuance of a qualified liquor license in the City of
McHenry does not guarantee that a video gaming license will be issued.
State of Filing
List state of filing for LLC,Corporation,Partnership and Sole Proprietor
Illinois
120
Alcohol Sale Length
How long has the business been in the business of selling alcohol7 List date.
new site(Graham Enterprise, Inc. in business since 1990)
Zoning
What Zoning Classification is the business property?
Commercial
Business Location History
Date
Date on which the business opened or will open at the above Business Location
11/18/2024
Property Ownership
Is the property at which the applicant business is located owned or lesed by the applicant7
Owned Leased
Location Qualifications*
Is the location of the applican'ts business for which the license is sought within one hundred feet of any church,schook,hospital,funeral home, home for
aged or indigent persons or for veterands and their families or any military or naval station?
No Yes
Parking
How many private property parking spaces are associated with the business location?
48
Business Agent
An agent is the authorized representative of the Licensee who has supervisory authority over all employees of the license
premises.An agent may be an owner, partner, member,or designated manager.
Full Name*
Brian Wente
Date of Birth*
Home Address*
Street Address,City,Zip
Phone*
Email*
Business History
History*
Have the applicant(s)(including all 5%or higher owners),corporation,LLC,or partnership ever engaged in the business or sale of alcoholic liquor at any
other location?
No
Yes
121
Business History Information
For a large history,documents can be uploaded in lieu of filling out the fields
Name of Person or Business
please see attached
D/B/A Name
Address
Property or Businessses in McHenry
Do you own any other business or property in the City of McHenry
No
Yes
Business or Property Info
Please explain what business or property you own in McHenry.
McHenry Quick Shop(GEI-104)
Bull Valley BP(GEI-137)
McHenry BP(GEI-154)
Business Licensing and Filing Identification
ROT#
ApplicanYs Retailer's Occupation tax(ROT)Registration Number
2236-1634
Delinquency*
Has applicant been delinquent in the payment of the Retailer's Occupational Tax(Sales Tax)?
No Yes
Background Questionnaire
The following questions are in relation to the McHenry City Liquor Ordinance and Illinois law as it pertains to
liquor licensing.All questions must be answered honestly. Failure to do so may disqualify you from the
application process.
Are you familiar with all the laws of the United States, State of Illinois and ordinances of the City of McHenry pertaining to
the sale of alcoholic liquor;and will you abide by them?
Yes No
Will you maintain the entire premises in a safe,clean and sanitary manner free from conditions,which might cause
accidents?
Yes No
Will you attempt to prevent rowdiness,fights and disorderly conduct of any kind and immediately notify the McHenry
Police Department is any such events take place?122
Yes No
Has any manufacturer, importing distributor or distributor of alcoholic liquors directly or indirectly paid or agreed to pay for
this license,advanced money or anything else of value or any credit(other than merchandising credit in the ordinary
course of business for a period not in excess of 90 days),or is such a person directly or indirectly interested in the
ownership, conduct or operation of the place of business?
Yes No
Have any of the applicants, including all listed agents and partners who have a minimum of a 5%ownership in the
business been convicted of any violation of any law pertaining to alcoholic liquors?
Liquor Violations?
Yes No
Felony/Misdemeanor?*
Have any of the applicants,including all listed agents and partners who have a minimum of a 5%ownership in the business been convicted of a felony or
misdemeanor?
Yes No
Will you and all your employees refuse to serve or sell alcoholic liquor to an intoxicated person or to a minor?
Yes No
Has any owner(s)or member(s)of a Partnership been issued a federal gaming devise stamp or a federal wagering stamp
by the federal government for the current tax period? If a Corporation, has any officer, manager,or director thereof;or,
any stockholder owning in the aggregate more than twenty(20)percent of the stock, been issued a federal wagering
devise stamp or a federal wagering stamp by the federal government for the current tax period?
Federal Gaming/Wagering Stamp*
Yes No
Have you,or any partner,or owner of 5%or more shares of the business or Agent, ever had a liquor license revoked or
suspended?
Suspension*
Yes No
Liqour Suspension Information
For a large number of suspensions,a separate document may be submitted in lieu of filling out the boxes below.
Name
Downers Grove BP(GEI-163)
Date and Location of Offense
Downers Grove suspension starting 4/15/24
Is any individual who is directly or indirectly interested in applicanYs place of business, a law-enforcing official or elected
public official (mayor,alderman, and member of any City commission,committee or board)?
Official or Officer*
Yes No 123
Public Official or Officer Information
Name
Address
Phone
Have you ever been convicted of a gambling offense(if a partnership or corporation, include all partners, owners of 5%or
more shares of the corporation and the local manager)?
Gambling Offense
Yes No
Ownership Records
A List of all owners, partners,stock holders and members must be listed below. In lieu of filling out multiple boxes,
additional supporting paperwork may be submitted.
Owner Information
Name
please see attached
Date of Birth
Address
Street Address,City,Zip
Phone
Email
Percentage of Ownership
File Upload
Upload supporting documents,certificate of insurance,etc
Current Liquor License list.pdf 38.23KB
GEI officer- 138 McHenry.pdf 12.85KB
I,the undersigned, being first duly sworn,deposes and says that I(we),have read the above and foregoing
Application,caused the answers to be provided thereto and all of the information given on said Application to be
true and correct,and consent to investigation and background check by the Local Liquor Control Commissioner
or his designee and agree to comply with all City Ordinances and the rules stated on this application.
124
Signature of Authorized Agent of Corporation
i( t/niii
Acknowledgement*
I understand that checking this box constitutes a legal signature and confirms that I have filled out this form to the
best of my ability.
Date*
10/16/2024
125
ORDINANCE NO. 24-
Amending Title 4-2-6, Subsection D-3. Class C License, of the McHenry City Code
WHEREAS, the City of McHenry, McHenry County, Illinois, is a home rule municipality as
contemplated under Article VII, Section 6, of the Constitution of the State of Illinois, and the passage
of this Ordinance constitutes an exercise of the City's home rule powers and functions as granted in the
Constitution of the State of Illinois.
NOW, THEREFORE BE IT ORDAINED by the City Council of the City of McHenry,
McHenry County, Illinois, as follows:
SECTION 1: Section 4-2-6, subsection D-3, of the Municipal Code relating to liquor
license classifications, shall be amended as follows:
D.3. Class C (Packaged Retail) License: Issuance of a Class C license shall authorize the retail sale
of packaged alcoholic liquor only. No consumption of alcoholic liquor shall be permitted on the
premises. The annual fee for a Class C license shall be one thousand one hundred dollars
($1,100.00). No more than twenty-six (26) Class C licenses shall be in force in the City at any
time.
SECTION 2: If any section, paragraph, subdivision, clause, sentence or provision of this
Ordinance shall be adjudged by any Court of competent jurisdiction to be invalid, such judgment shall
not effect, impair, invalidate or nullify the remainder thereof, which remainder shall remain and continue
in full force and effect.
SECTION 3: All ordinances, or parts thereof, in conflict herewith are hereby repealed to the
extent of such conflict.
SECTION 4: This ordinance shall be published in pamphlet form by and under the
authority of the corporate authorities of the City of McHenry, Illinois.
SECTION 5: This ordinance shall be in full force and effect from and after its passage,
approval and publication, as provided by law.
Passed this 4th day of November, 2024.
Ayes Nays Absent Abstain
Alderwoman Bassi ____ _____ _____ _____
Alderman Davis ____ _____ _____ _____
Alderman Glab ____ _____ _____ _____
Alderman Koch ____ _____ _____ _____
Alderman McClatchey ____ _____ _____ _____
Alderwoman Miller ____ _____ _____ _____
Alderman Santi ____ _____ _____ _____
______________________ ________________________
Wayne Jett, Mayor Monte Johnson, Deputy City Clerk
126
Community Development
McHenry Municipal Center
333 Green Street
McHenry, Illinois 60050
Phone: (815) 363-2170
www.cityofmchenry.org
Conceptual Development Presentation
TO: Mayor and City Council
FROM: Ross Polerecky, Community Development Director
FOR: November 4, 2024 Regular City Council Meeting
RE: Lennar Conceptual Presentation for a ~584 unit single family home subdivision
located on the east and west sides of Bull Valley and Curran Road.
ATT: Conceptual Site Plan, Description of Development, Lennar Presentation.
Agenda Item Summary: Homebuilder Lennar is proposing to develop 304 acres of land on the
east and west side of Curran Road at Bull Valley Road. This area of land was annexed into the
City of McHenry in 2005 as The Preserves of Boone Creek Unit 7, but the land was never platted
or developed. The zoning of the property includes a mixture of commercial, multifamily, and
single family. If the project moves forward, Lennar intends to ask for a change in zoning to allow
all single family through the approval of a new Planned Unit Development (PUD). Below is a
letter from Lennar outlining their request and a brief description of their plans. Lennar’s
presentation also includes some elevations and floor plans of their product.
There is currently an active annexation agreement that expires in April of 2025 for the Preserves
of Boone Creek Unit 7. If the City Council believes this conceptual plan is something they would
like to see move forward, staff will work with Lennar and the City’s legal council to draft a
development agreement to be presented for Council consideration at a future meeting.
127
NE
W
P
O
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T
TR
A
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BULL VALLEY ROAD
CU
R
R
A
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R
O
A
D
BO
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N
E
C
R
E
E
K
LANDMARK
(70' X 127')
LANDMARK
(70' X 127')
ANDARE
(63' X 127')
CORE PRODUCT
(50' X 120')
CORE PRODUCT
(50' X 120')
50' LANDSCAPE
BUFFER
50' LANDSCAPEBUFFER
LANDMARK
(70' X 127')
PATH
PATH
PATH
PATH
PATH
1
1
1
1
60' ROW
60' ROW
60
'
R
O
W
60
'
R
O
W
60
'
R
O
W
60
'
R
O
W
6
5
101520
25
28 29 30 35 40 41
42455054
55 65 67
6870
71
75
76
80
80
82
85
90
94
95
100
105
110
113
115 116
117120
125
130
135
138
5
10
15
20
25
29
30
35
40
45
46
50
55
60
61
62
6566
67 70
75
80
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95
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115
120 122 123
125
128
129130
135
145 150
155 157
158160165166
167 170 175176
177
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185190
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198200
205
5
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110115120
125 130
131135140
145
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164
5
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30 31
32
35
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44
50
56
5760
65
70
75
77
DETENTION
±7.5 AC.
DETENTION
±4.4 AC.
DETENTION
±4.0 AC.
DETENTION
±2.3 AC.
DET.
±3.1 AC.
DET.
±2.9 AC.
DET.
±3.4 AC.
DET.
±6.6 AC.
DET.
±2.4 AC.
DET.
±1.4 AC.
DET.
±1.2 AC.
DET.
±1.7 AC.
DET.
±1.3 AC.
PARK
±1.4 AC.CLUBHOUSE/PARK
±4.1 AC.
PARK
±2.0 AC.
PARK
±2.0 AC.
PARK
±1.2 AC.
PARK
±2.8 AC.
L:\Projects\LN24208\Acad\LN24208_A06_01CP.dwg
GARY R. WEBER
ASSOCIATES, INC.
LAND PLANNING
ECOLOGICAL CONSULTING
LANDSCAPE ARCHITECTURE
WWW.GRWAINC.COM
SITE DATA
McHENRY, ILLINOIS
CONCEPT PLAN
10/25/2024
SCALE: 1"=400'
800'400'200'0
NORTH
128
Lennar Homes - Preserves at Boone Creek – Concept Plan - October 28, 2024
Lennar Homes is the contract purchaser of the 304-acre property located to the east and west of
Curran Rd and on the north side of Bull Valley Rd.
The property lies within village boundaries and Lennar will build a shade under 600 homes in a
manner consistent with existing zoning and the municipality’s comprehensive plan. Lennar will
build a mix of age-targeted single-family detached homes and a variety of 30’ and 40’ single
family detached homes. Surrounding land uses are residential (Legend Lakes/Boone Creek
subdivision)/open space to the north, residential to the east (Winding Creek subdivision),
agricultural to the south, and residential (Legend Lakes subdivision)/open space to the west.
Concept Plan
As part of this planned community, we are proposing four (4) home lineups to appeal to a broad
range of homebuyers. These offerings include: 1) Landmark homes, which we have built
previously in Legend Lakes, 2) an Andaré section with age-targeted ranch homes including
exterior lawn and snow maintenance and 3) the introduction of our CORE homes. These CORE
homes use building efficiencies and sizes that allow for more attainable homeownership to
compete with the growing rental market and assist homebuyers beat the home affordability
problem.
Of the 300+ acres, up to 132 acres will be detention/open space. There are six parks planned
accounting for ±13.5 acres. Bike paths and walking trails connect all sections of the community
to the featured amenities which include a clubhouse centrally located in the western section. The
parks will feature tot lots, playgrounds etc. whereas the amenities in the Andaré section will be
more suited to that market segment and may include pickleball courts, putting greens etc. The
community will feature generous landscaped buffers along Bull Valley Road and Curran Road.
Homes
All homes will feature the Designer spec level as the base featuring vinyl plank flooring, quartz
countertops, oak rails, forty-two-inch-tall base cabinets etc. All Owner’s Suite bathrooms have a
double bowl vanity and deluxe tile shower as a standard offering. All homes will include a
homesite/foundation planting landscape package. Residents can generally choose between A, B,
or C elevations that offer differing architectural elements.
• Landmark Homes: Lennar’s Landmark series ranges from the 1,866 square feet Siena
ranch plan to the 3,146 square feet two-story Westbury. The Landmark series includes
plans that have either a two-car or three-car garage as the standard offering. The 2,171
square feet Ridgefield is the Landmark’s unique ranch offering that features a standard
three-car garage.
• CORE HOMES: Lennar’s CORE offerings are designed to maximize living space and
feature efficient floorplans value engineered to fit more in less. They feature the Designer
specification level as standard.
129
o 40’ CORE: Lennar’s 40’ CORE homes range from the 1,453 square feet Dover
ranch to the 2,461 square feet two-story Providence. All offerings in this series
feature a great room on the first floor and all two-story offerings have a second-
story loft.
o 30’ CORE: Lennar’s 30’ CORE homes range from the 1,037 square feet Baxter
ranch to the 2,178 square feet two-story Davidson. Except for the 1,829 square
feet Aspen, all homes feature a second story loft.
• Andaré Homes: Lennar’s age-targeted Andaré series ranges from the 1,428 square feet
Napa to the 1,880 square feet Sonoma plan. The homes within this series come with
spacious open floor plans with single-story living. Moreover, the age-targeted community
will have maintenance-free living with lawn care and snow removal performed by the
HOA.
130
PRESERVES OF BOONE CREEK
Prepared for the Village of McHenryCity of McHenry
131
132
12
133
Siena
1,866 Sq. Ft.
3 Beds/ 2 Baths/ 2-Car Garage
Elevation C
Elevation A Elevation B
Ontario
2,016 Sq. Ft.
3 Beds/ 2.5 Baths/ 2-Car Garage
Elevation C
Elevation A Elevation B 134
Ridgefield
2,171 Sq. Ft.
3 Beds/ 2 Baths/ 2-Car Garage
Elevation C
Elevation A Elevation B
Brooklyn
2,448 Sq. Ft.
4 Beds/ 2.5 Baths/ 2-Car Garage
Elevation C
Elevation A Elevation B
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Galveston
2,612 Sq. Ft.
4 Beds/ 2.5 Baths/ 3-Car Garage
Elevation C
Elevation A Elevation B
Raleigh
2,907 Sq. Ft.
4 Beds/ 2.5 Baths/ 3-Car Garage
Elevation C
Elevation A Elevation B
136
Westbury
3,146 Sq. Ft.
4 Beds/ 2.5 Baths/ 3-Car Garage
Elevation C
Elevation A Elevation B
137
40
138
41
139
50
140
30' CORE SAMPLE ELEVATIONS
The Whitman
1,625 Sq. Ft.
3 Beds/ 2.5 Baths/ 2-Car Garage
The Baxter
1,037 Sq. Ft.
2 Beds/ 2 Baths/ 1-Car Garage
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The 1508
1,508 Sq. Ft.
3 Beds/ 2 Baths/ 2-Car Garage
The Whitman
1,625 Sq. Ft.
3 Beds/ 2.5 Baths/ 2-Car Garage
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The Aspen
1,829 Sq. Ft.
4 Beds/ 2.5 Baths/ 2-Car Garage
The Broadmoor
1,995 Sq. Ft.
4 Beds/ 2.5 Baths/ 2-Car Garage
143
The Davidson
2,178 Sq. Ft.
4 Beds/ 2.5 Baths/ 2-Car Garage
144
63
145
The Dover
1,453 Sq. Ft.
3 Beds/ 2 Baths/ 2-Car Garage
The Alan
1,675 Sq. Ft.
3 Beds/ 2 Baths/ 2-Car GarageThe Dover
1,453 Sq. Ft.
3 Beds/ 2 Baths/ 2-Car Garage
The Alan
1,675 Sq. Ft.
3 Beds/ 2 Baths/ 2-Car Garage
40' CORE SAMPLE ELEVATIONS
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The Hansom
1,890 Sq. Ft.
4 Beds/ 2.5 Baths/ 2-Car Garage
The Charleston
1,992 Sq. Ft.
4 Beds/ 2.5 Baths/ 2-Car Garage
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The Richmond
2,236 Sq. Ft.
4 Beds/ 2.5 Baths/ 2-Car Garage
The Providence
2,461 Sq. Ft.
4 Beds/ 2.5 Baths/ 2-Car Garage
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Department of
Economic Development
McHenry Municipal Center
333 Green Street
McHenry, Illinois 60050
Phone: (815) 363-2110
Fax: (815) 363-2128
www.cityofmchenry.org
DISCUSSION ITEM
TO: Mayor and City Council
FOR: November 4, 2024 City Council Meeting
FROM: Douglas Martin, Director of Economic Development
RE: Conceptual Review of the Redevelopment of 3510 W Elm Street, located at the
northwest corner of Green Street and Elm Street
Staff was approached by Victor Kniazevych, who owns Professional Remodeling Services - Upgrade Your
Home Today! VIK Remodeling Chicago. Victor has expressed an interest in redeveloping the vacant former
First Midwest Bank Building at the northwest corner of Green and Elm Street into a mixed-use residential
and commercial building. His company works on remodeling projects, from residential to commercial, and
has done jobs all over the Chicagoland area in numerous capacities.
While his company has never done a project of this scale, they have remodeled many homes, completed
countless building additions, second-floor constructions and basement refurbishments. They’ve also
bought and sold approximately 65 houses and recently finished 900 residential units for rent with Tricap
Residential Group. Additionally, they have partnered with Brait Capital on commercial, industrial, and retail
developments as well as worked on commercial projects in Winnetka including a therapy center, a fitness
center, and a spa.
After a walk-through of the site and completing a financial analysis, Mr. Kniazevych is desirous of rehabbing
the former bank building and constructing a maximum of 28 residential rental units, and 12,000 square
feet of commercial space on the first floor of the building. The 28 residential rental units would primarily
be two-bedroom units with a handful of three-bedroom units. The unit sizes would be 1,200 to 1,500
square feet. While he is proposing residential rental units, Victor is not opposed to doing a plat of
condominium at some point in the future if the market demands this product.
The subject property is located within the City’s tax increment financing district and is eligible for TIF
incentives. Victor is seeking $2.5 million in TIF financing to complete the project. While the applicant has
submitted financial information, a detailed financial analysis has yet to be completed.
Staff is seeking City Council feedback on the proposed mixed-use of the building as residential rental units
and commercial land use, as well as input on the requested TIF incentive and the general use of TIF financial
incentives for a redevelopment project such as the one proposed. If the Council is generally supportive of
the mixed-use concept, staff will engage a TIF consultant to assist in reviewing the construction budget and
financial information to ascertain if the project makes sense from a TIF financing/eligibility standpoint.
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Office of Finance & Accounting
Carolyn Lynch, Director
McHenry Municipal Center
333 Green Street
McHenry, Illinois 60050
Phone: (815) 363-2100
Fax: (815) 363-2119
www.cityofmchenry.org
DISCUSSION AGENDA SUPPLEMENT
DATE: November 4, 2024
TO: Mayor and City Council
FROM: Carolyn Lynch, Finance Director
RE: 2024 Tax Levy Discussion
ATT: 1.PTELL Analysis 2011-2024
2.Current Tax Bill Breakdown for $200,000 Home in McHenry
3.Police Pension Letter for 2024/25 Funding
______________________________________________________________________________
AGENDA ITEM SUMMARY:
The purpose of this agenda item is to discuss the 2024 Property Tax Levy and to provide City Staff
guidance on the levy amount to be requested.
Annually, prior to the end of the calendar year, the City must provide the amounts required for
the property tax levy so that the funds generated through this revenue mechanism will become
available during the 2025/2026 fiscal year. The levy request must be approved by the City Council
and submitted to the McHenry County Clerk by the last Tuesday in December (the 31st in 2024).
There are public notification timeframes also associated with this process. With this date as a
target, the 2024 Property Tax Resolution indicating the levy amount and Public Hearing will be
presented at the November 18, 2024, Council meeting and, upon adoption of the resolution, the
Property Tax Levy Public Hearing and consideration/adoption of the levy amount is scheduled for
the December 16, 2024, City Council meeting.
BACKGROUND/ANALYSIS:
Property taxes are a key revenue source for the City’s General Fund. The General Fund covers
the operating costs for all municipal departments except for the Water and Sewer Divisions of
Public Works (water and sewer receipts and base fees) and the Recreation Center (member fees).
As a “Home Rule” community, the City of McHenry is not subject to the Property Tax Extension
Limitation Law, or PTELL, which limits increases for non-Home Rule communities’ property tax
levy to the rate of inflation, or 5%, whichever is less. However, the City has remained extremely
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conservative when establishing its property tax levy. Since 2010, the property tax levy has only
been adjusted two times: a 3% decrease in 2016, and a 2.6% increase in 2021. It has remained
flat in every other year. In real dollars, this means that the City has continued to operate with
reduced revenue, while the costs of staffing and commodities have continued to increase. As
shown in the attached analysis, the amount of property tax dollars the City received in 2023
($4,737,941) is actually less than in 2010 ($4,761,610). According to this same analysis, if the
City’s levy had increased by PTELL each year since 2011, staff estimates that the property tax
total of $4,978,562 shown below would currently be $7,211,418 due to compounding – a loss of
approximately $2.5 million in 2024 alone.
All General Fund revenues are accounted for in one of the line items below. As Council can see,
$22,858,669 (73.3%) of General Fund Revenues are comprised of four primary sources – Property
Tax, State Sales Tax, Local Sales Tax, and State Income Tax (shaded rows). Of these four primary
sources of funding, the municipality only has the ability and authority to adjust two – Property
Tax and Local Sales Tax. These two sources represent just 28.4% of General Fund Revenues.
General Fund Revenues
FY2024/25
Property Taxes 4,987,562 16.00%
State Sales Tax 9,356,404 30.01%
Local Sales Tax 3,874,618 12.43%
State Income Tax 4,640,085 14.88%
State Replacement Tax 130,000 0.42%
State Telecommunications Tax 190,000 0.61%
Self Storage Tax 125,000 0.40%
Intertrack Wagering 38,000 0.12%
Video Gaming 925,000 2.97%
Franchise Fees 340,000 1.09%
Licenses and Permits 289,000 0.93%
Fines and Forfeitures 378,000 1.21%
Charges for Services 1,384,289 4.44%
Reimbursement 3,722,615 11.94%
Interest Income 600,000 1.92%
Miscellaneous 193,956 0.63%
Total General Fund Revenue 31,174,529 100.00%
The City Council recently created use taxes for Electric (ComEd) and Gas (Nicor) to assist with
shortfalls in funding the City’s capital needs, which are detailed in the City’s annual Community
Investment Plan. Capital costs include large projects, such as infrastructure, facility maintenance,
and vehicle and equipment replacements. The Community Investment Plan includes a long list
of projects, many of which are high priority. However, the Electric and Gas Use Tax Revenue are
not sufficient to fund all the capital projects. While the timing of some capital projects can be
adjusted to later fiscal years based on the revenue available, others must be funded (such as the
Route 31 widening currently estimated at $2.4 million) or are high on the priority list (such as the
downtown Streetscape program estimated at $15 million). City staff is currently updating the
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Community Investment Plan for FY25/26. However, as identified in the FY24/25 Community
Investment Plan presented at the 11/6/2023 City Council meeting, there is a shortfall in revenue
for projects identified for FY25/26 in the amount of $620,000. These additional costs generally
must be paid using General Fund dollars.
The City’s Fund Balance and Reserve Policy requires the City to maintain a 120-day reserve
balance (which in 24/25 is $10,096,337) in the General Fund for emergency purposes. When the
General Fund balance exceeds this amount, the Policy states that any additional funds will be
assigned for capital. The FY23/24 audit has now been completed, and the additional reserve
available for capital is $2,295,891 (after $892,070 of FY23/24 General Fund budgeted capital
expenses are deducted for projects not yet completed). The FY25/26 budget process has not
begun yet; however, increases to operational expenses are expected (due specifically to union
contracts and inflation), and revenues have begun to level off, so it will be increasingly difficult
to produce a balanced operating budget without adjusting the property tax levy. It is important
to note that if the tax levy were to increase, any funds not used for operational expenses would
be used for unfunded capital projects, as stated in the Policy.
Unfortunately, while the City has frozen its levy in an attempt to help reduce or limit increases to
property taxes, a reduction to the City’s portion of the property tax levy has not resulted in
reductions to residents’ overall property tax bills. As shown in the attached exhibit, the portion
of a resident’s tax bill directed to the City of McHenry was only 5.58% of the total amount in
2023. Therefore, the other taxing jurisdictions have a much greater effect on the overall amount
of property taxes that residents ultimately pay.
Changes to the City’s overall Equalized Assessed Value (EAV) also drive change in the property
tax bill. When the EAV declines, the tax rates must go up in order to fully fund the property tax
levy across all taxing districts, because the same amount of money needs to be collected across
the new lower values. However, for 2023, the EAV increased for the ninth consecutive year.
Therefore, the tax rates for the City went down slightly, lowering the City’s portion of the tax bill.
In 2024, it is estimated that the EAV will increase about 8.4%, which could result in a further
decrease in the amount residents pay to the City on their property tax bills. Of course, this will
be determined by each individual parcel’s EAV; some will increase, while others decrease.
RECOMMENDATION:
As a Home Rule community, McHenry’s City Council has a number of options for setting the City’s
property tax levy for 2024. Each option is discussed in detail below. It is worth noting that in all
scenarios, if an individual homeowner’s EAV were to remain static (set at $200,000 in the
examples below), the City’s portion of the Property Tax Bill would be projected to decrease due
to the increase in the City’s overall EAV. Options for the City Council to consider include any
combination of the following:
• Increase by PTELL (for 2024, the CPI-U is at 3.4%). The City is not limited to PTELL and can
in fact set its levy at any level due to Home Rule; however, it has been the City’s policy in
the past to not exceed PTELL.
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• Increase by new growth; this is the minimum that staff would recommend, since it enables
the City to capture the incremental revenue produced by new development. New
development and annexation come with costs in terms of road maintenance,
infrastructure maintenance, etc. If the levy is not increased by new growth, the City will
have no way to pay these long-term costs.
• Create a new levy to pay the annual dues for the Northern Illinois Special Recreation
Association (NISRA), which are currently funded by the General Fund. The City of McHenry
is one of only two communities in McHenry County that do not separately levy for these
dues. The City of McHenry dues are $150,707 for FY24/25 and are expected to increase to
$162,707 for FY25/26. A separate levy would free up these funds to be available for
General Fund expenses.
*Note: EAV for example home not adjusted 2023 vs. 2024. Tax levy amount for each individual
property will vary based on McHenry County EAV calculation for that specific property.
PTELL Increase: For the 2024 tax year, the inflationary rate is 3.4% for calculating PTELL. The
Estimated Rate Setting EAV supplied by McHenry County is estimated at $1,007,012,546 (an
increase of 8.4% over 2023), and new construction is estimated at $12,314,914. PTELL calculated
with the inflationary rate and the estimated EAV equates to an Estimated Limited Extension of
$3,218,211, or a $143,859 increase over last year. This increase would result in a decrease in
the City’s portion of the Property Tax Bill by a total of $20.46 for a home valued at $200,000,
and $25.59 for a home valued at $250,000. Again, total increases or decreases to the amount
of property taxes are dependent on the actions of all taxing bodies, as well as changes to EAV.
New Growth Increase: New growth figures into the PTELL calculation by allowing communities
subject to PTELL to increase the levy by more than just the CPI-U or 5% by allowing additional
increases for new construction and annexations into the district. For the City of McHenry, this
new growth is 1.2%. The Estimated Limited Extension with just new growth is $3,112,374, or a
$38,022 increase over last year. This increase would result in a decrease in the City’s portion of
the Property Tax Bill by a total of $27.46 for a home valued at $200,000, and $34.34 for a home
valued at $250,000.
NISRA Levy: NISRA dues expenses are estimated to be $162,707 for tax year 2024. With this
increase and the estimated EAV the Estimated Limited Extension would be $3,236,090. This
2023
No 2024 Levy
Increase
2024 PTELL Levy
Increase
2024 New
Growth Levy
Increase
2024 NISRA Levy
Introduced
City of McHenry $343.73 $313.67 $323.27 $316.27 $313.67
NISRA N/A
(General Fund)
N/A
(General Fund)
N/A
(General Fund)
N/A
(General Fund)$10.80
Total $343.73 $313.67 $323.27 $324.47
2024 Property Tax Levy Scenarios
$316.27
$200,000 Home in McHenry
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increase would result in a decrease in the City’s portion of the Property Tax Bill by a total of
$19.26 for a home valued at $200,000, and $24.09 for a home valued at $250,000.
As a reminder, the City will also have a separate levy for the annual Pension Obligation Bond,
which will be included in the Total Levy ($1,664,558 for 2024).
As stated above, the City Council is required to set the dollar amount for the 2024 Tax Levy during
the meeting of November 2, 2024, which will be brought to the November 18, 2024, Council
Meeting for official approval and included in the 2024 Property Tax Levy Ordinance.
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Tax Year Actual Levy*Possible PTELL Levy Revenue Differential Council Action
2010 4,761,610$ 4,761,610$ Levy increased by PTELL
2011 4,761,638$ 4,844,869$ 83,231$ Levy held flat
2012 4,761,635$ 5,002,831$ 241,196$ Levy held flat
2013 4,761,635$ 5,095,419$ 333,784$ Levy held flat
2014 4,761,635$ 5,190,250$ 428,615$ Levy held flat
2015 4,761,635$ 5,250,850$ 489,215$ Levy held flat
2016 4,618,786$ 5,314,043$ 695,257$ Levy decreased by 3%
2017 4,618,786$ 5,443,999$ 825,213$ Levy held flat
2018 4,618,813$ 5,585,454$ 966,641$ Levy held flat
2019 4,618,786$ 5,720,292$ 1,101,506$ Levy held flat
2020 4,618,786$ 5,910,831$ 1,292,045$ Levy held flat
2021 4,737,941$ 6,066,875$ 1,328,934$ Levy increased by 2.6%
2022 4,737,941$ 6,443,820$ 1,705,879$ Levy held flat
2023 4,737,941$ 6,873,629$ 2,135,688$ Levy held flat
2024 4,737,941$ 7,211,418$ 2,473,477$ *Actual 2024 levy TBD
Estimated Revenue Not Captured (2011-2024)14,100,681$
City of McHenry PTELL Analysis 2011-2024
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Current Tax Bill for a $200,000
Home in McHenry
(2023)
City of McHenry
6%McHenry Township
Road & Bridge
2%
McHenry Township
1%
McHenry Library
3%
McHenry Fire District
6%
School District 156
23%School District 15
47%
McHenry County College
3%
McHenry County
Conservation District
2%
McHenry County
7%
Entity Amount of Taxes
Percentage of the
Total Tax Bill
City of McHenry $343.73 5.6%
McHenry Township Road &
Bridge $143.83 2.3%
McHenry Township $68.07 1.1%
McHenry Library $179.18 2.9%
McHenry Fire District $329.84 5.4%
School District 156 $1,436.29 23.3%
School District 15 $2,890.75 47.0%
McHenry County College $188.04 3.0%
McHenry County Conservation
District $135.35 2.2%
McHenry County $443.29 7.2%
100.0%
(all % rounded to
nearest 1/10)
Total $6,158.37
156
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STAFF REPORT
FOR NOVEMBER 2024
The purpose of this report is to provide the City Council and public with the most up-to-date
information regarding the latest projects and happenings within the municipal government of
the City of McHenry. This report is organized by operating department and will be updated and
transmitted as part of each City Council Agenda Packet. Council is welcome to contact any
Department Director for more information on any item included in this report, as well as topics
from previous reports or items not included in the report. This report does not include projects
or other information that is considered confidential in nature.
ECONOMIC DEVELOPMENT
Contact: Doug Martin, Director of Economic Development – 815/363-2110
Edge Incubator Committee Meeting
Director Martin and Coordinator Wolf attended the McHenry County Economic Development
Corporation EDGE Incubator Committee Meeting. The Committee was formed to discuss ways
to promote and enhance business incubators and keep the businesses operating once they
leave the actual business incubator and assist in moving them into brick-and-mortar stores.
Presentation to the Riverwalk Shoppes Cohort Meeting
Director Martin and Coordinator of Economic Development Wolf will be attending the wrap-up
meeting of the McHenry Riverwalk Shoppes in November and talking about next steps and
ways we can assist businesses moving forward.
Riverwalk Shoppes Third Season Application Review Process
Director Martin is participating in the annual review of Riverwalk Shoppe applications. Next
year will be the third season of the McHenry Riverwalk Shoppes and applications are reviewed
at this time of year to determine which businesses will participate in the incubator experience
the following year.
The City of McHenry Shop and Dine Rewards Program 11/16-12/31
The Shop and Dine McHenry Rewards Program will once again be active between November
16th and December 31st but limited solely to the three downtown areas, including the TIF
District boundary area, and Front Street south to the Fountain Shoppes and offer a 5% reward
to people for shopping locally in any of these selected businesses. Between 200-300 businesses
will be included in the program during this period. Additionally, the Shop and Dine McHenry
Rewards will be partnering with the McHenry Area Chamber of Commerce sponsoring the
Downtown Holiday Walk, Downtown Holiday Walk - McHenry Area Chamber of Commerce.
During the Downtown Holiday Walk there will be a bingo game, and the bingo card will have 25
squares that encourage people to shop and explore McHenry. As part of the game, people will
patronize downtown McHenry businesses. All participants must register with the Shop and
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Dine McHenry Rewards program and utilize the Open Rewards App and then complete the
Bingo Card, returning it to the Santa Mailbox on Green Street, and will be eligible to win a Visa
Gift Card.
McHenry Area Chamber of Commerce Events
Ribbon cutting/Open House: newly renovated memory care at The Courtyard at McHenry 3350
Charles J. Miller Rd, Thursday, Nov 7th from 4:00 PM - 5:00 PM Ribbon Cutting at 4:15 PM
Holiday Market at McHenry Riverwalk Shoppes: Saturdays from 11-5 PM Every Saturday
between 11/16 & 12/7 at
Living Windows & Cocoa Crawl: November 22nd from 4:30-7:30 PM
Festival of Trees at McHenry Recreation Center and McHenry Municipal Center: November
22nd – December 29th
Polar Express Pub Crawl: November 23rd from 6:00-10:30 PM
Scavenger Hunt and Letters to Santa: November 22nd-December 13th
Free Sleigh Rides: November 23rd From 12-4 PM, Rides around Veterans Park in a horse-drawn
sleigh!
Toys for Tots Parade
November 24th-1:00 PM start. Parade: Lineup on Kane, Route: North on Green Street, East on
Pearl Street, North on Riverside Drive, West on Broad Street ending at Veteran’s Memorial Park
November 30, 2024 is Small Business Saturday
November 30, 2024 is Small Business Saturday. Staff will bring forward a resolution to the
November 18th City Council meeting recognizing this date in the City of McHenry.
COMMUNITY DEVELOPMENT
Contact: Ross Polerecky, Community Development Director – 815/363-2182
Planning and Zoning:
A planning and zoning meeting was held October 23rd with two items on the agenda, an
expansion of the conditional use for Extra Space storage and the review and recommendation
of the comprehensive plan. Both of these items received a unanimous positive
recommendation and will come before the City Council November 18th.
Landmark Commission
159
A Landmark Commission meeting will be held November 6th at 7pm in the City Council
Chambers, the agenda will include the review of a report on the Landmark School as the
Commission works towards landmarking the school.
Trio Fueling Station 5520 Elm
The Trio fueling station is hoping to open their doors by the end of November, the car wash will
be opening at a later date.
Bear Development
Bear Development is moving forward with a 55 and older apartment complex at the southeast
corner of Municipal and Knox Drive. This development was approved by City Council in April of
2022, a development agreement will be presented to council in the near future.
Redwood, southeast corner of Chapel Hill and Route 120
Staff is working with Redwood on their development agreement, this agreement and development
will be coming before council soon.
PARKS & RECREATION
Contact: Bill Hobson, Director of Parks & Recreation – 815/363-2159
Riverwalk Phase 4
The last piece of phase 4 of the Riverwalk began this past week with the installation of the
decorative railing. There unfortunately was a long fabrication time for railings that have put the
final completion of the project a month behind the anticipated date.
Pickleball Court Expansion
The Parks Maintenance Division with assistance from the Public Works department has poured
the concrete for the expansion of the pickleball courts at Knox Park adjacent to the skate
park. The concrete will have to cure for a minimum of three weeks before the courts can be
repainted. We are hoping for favorable weather as look to complete the project. In a worst-
case scenario, the courts will have to be painted in the spring of 2025.
Vandalism and Graffiti
This past week the rubber covering of some of the decking at Jaycee Park was set on fire by two
youths. The Fire Department called to put out the fire. Replacement parts are on
order. Additionally, a large or graffiti was painted along the Riverwalk under the Route 120
bridge. Maintenance documented the tagging, notified police, and repainted the entire
abutment under the bridge.
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Soap Box Derby
Staff from the Parks and Recreation, Public Works and Police Department will be meeting with
the past organizers of the Soap Box Derby in a possibility of a return of the event to our
community.
Kids Fishing Derby
Mayor and the Parks and Recreation Director met with Kelsey Adams, the new organizer of the
kids fishing derby, for a wrap-up of this year’s event and a pre-planning meeting for the 2025
event. The event was extremely well received with over 200 kids registered to participate in
the event. The organizer presented the city with a $1,000 check of proceeds from the
event. She did ask that we utilize the funds to provide additional measures to make the event
more enjoyable for the coming years.
Christmas Lights
Parks Maintenance Division began the task or installing all the lights in the trees at Veteran’s
Park and in our downtown districts this past week. All of this work is performed in house.
Upcoming Events
• Saturdays 11/16 – 12/7 - 11am -5pm – McHenry Riverwalk Shoppe Holiday Markets –
Ten Riverwalk Shoppes along with additional vendors and food trucks.
• Friday 11/22 Downtown Holiday Walk begins with Living Windows and a family friendly
Hot Cocoa Crawl
• Friday November 22 – December 29 – the Festival of Trees will be hosted in the halls of
the McHenry Recreation Center and at the Municipal Center
• Saturday November 23rd
o 12pm – 4pm Horse drawn sleigh rides around Veteran’s Park
o 12pm – 4pm Santa will be in the gazebo and crafts in the pavilion
o 4:30pm - The McHenry High School Vocal Warriors will perform carols
o 5pm – Mayor with the help of the community will throw the switch to light the
park.
• Sunday November 24th – 1pm – Toys for Tots parade
PUBLIC WORKS
Contact: Steve Wirch, Director of Public Works – 815/363-2205
• The City’s brush pick-up program started on October 7th and was successfully completed
on October 17th.
• On October 2nd, the catch basin/structure was replaced at 3808 Millstream Drive.
• The Street & Utility Division completed the following fire hydrant repairs/replacements:
o 5323 Cottonwood Drive – hydrant repaired.
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o Corner of Chesterfield Drive & Ashley Drive – hydrant replaced on October 7th.
o 4610 Sussex Drive – hydrant replaced on October 21st.
• Due to the watermain break which occurred after-hours between September 19th and
20th at 3711 Kane Avenue, the Street & Utility Division completed the necessary concrete
and asphalt restoration work on October 18th at the site.
• The sandblasting and painting rehabilitation of Water Tower #4 located at Crystal Lake
Road and Bull Valley Road is nearing completion. Water Tower #4 has been completely
sandblasted, and the interior of the tower has been painted. The exterior of the tower
has been primed and the final coat of paint and logos are being applied. The final step will
be to disinfect the water tower, fill it, sample it, and put it back in service.
• Wastewater operator Adam Cashmore has passed the IEPA Class 1 Wastewater Exam.
Having knowledgeable, certified operators on staff is a critical component of reliable
treatment plant operations. Adam has submitted his application for licensure and,
pending review, will be issued a Class 1 certificate within the next 90 days. The Class 1
Wastewater License is the highest level of certification offered by the IEPA.
Wastewater personnel removed two gearboxes that were beginning to fail from the 2-meter belt
filter press which feeds the sludge dryer. The gearboxes have been sent out to be rebuilt. All
biosolids will be dewatered using the back-up 1.5-meter belt filter press and hauled to landfill by
plant personnel until repairs are completed and the sludge dryer is returned to service.
POLICE
Contact: John Birk, Chief of Police – 815/363-2200
Personnel Update
The following personnel have recently completed the respective years of service with the
McHenry Police Department:
• Chief Birk – 25 Years of Service
• FOIA Officer Roske – 25 Years of Service
• Officer Foley – 25 Years of Service
• Telecommunicator McNamara – 20 Years of Service
• Officer Beaudoin – 15 Years of Service
• Lead Telecommunicator Miller – 9 Years of Service
• Telecommunicator Zujewski – 4 Years of Service
• Telecommunicator Soto – 2 Years of Service
Training
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• Sgt. Aalto attended Understanding the Role of a Supervisor Through Strong Leadership
at Glendale Heights Police Department
• Officer Szoke attended Ground Fighting Control Tactics: The Side Control Position at
Streamwood Police Department
• Sgt. Kinney and Sgt. Hendrickson attended PBL Model of Field Training for Newly
Promoted Supervisors at McHenry Police Department
• Officer McClure attended Ground Fighting Control Tactics: Escaping Neck Restraints at
Gurnee Police Department
• Officer Zajac attended Beneath the Body Armor: Strengthening Identity and Wellness at
Elgin Police Department
• Communications Supervisor Synek and Telecommunicator Wilbur attended the IPSTA
Conference in Springfield, Illinois
• Officer Klasek attended Enhanced Crime Scene Photography Techniques for Law
Enforcement Officers at Woodstock Police Department
• Detective Ehardt attended Bloodstain Evidence Workshop at Cary Police Department
Public Relations
• Officer O’Herron attended the McHenry Home Depot Kids Safety Workshop with
McHenry Township Fire Protection District
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• Communications Supervisor Synek and Telecommunicator Fitzgerald attended the
McHenry Township Fire Protection District Open House
• Numerous officers and City of McHenry employees attended the Charity Trivia Night for
Shop with a Cop, raising approximately $6,700 for the McHenry County Police Charities
program.
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• Officer O’Herron attended Trunk or Treat events at Riverwood School and Montini
• Officer Pardue participated in the National Drug Take Back Event in partnership with
Northwestern McHenry
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• Officer O’Herron and Social Services Coordinator Jason Sterwerf attended the 100 Club’s
Trunk or Treat and bonfire.
• Officer O’Herron and Social Services Coordinator Jason Sterwerf participated in the
Trunk or Treat event at the McHenry Outdoor Movie Theater
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• Therapy K9 Oakley and Social Services Coordinator Jason Sterwerf continue to be active
within the schools and Therapy K9 Oakley was read to by various students as part of a
rewards program at Valley View.
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