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HomeMy WebLinkAboutPacket - 4/21/2025 - City Council 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 REGULAR CITY COUNCIL MEETING Monday, April 21, 2025, 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. Presentation of Plaques in Appreciation of Alderman Santi & Alderman McClatchey 5. Public Hearing: Call to order a Public Hearing for the proposed Fiscal Year 2025/2026 Budget 6. Motion to adopt the Fiscal Year 2025/2026 Budget 7. Public Comment 8. Consent Agenda. Motion to Approve the following Consent Agenda Items as presented: A. National Therapy Animal Day Proclamation (Deputy Clerk Johnson) B. Execution of an Employment Agreement for the position of City Administrator (Mayor Jett) C. Authorization to order/purchase four 2025 Dodge Durango police pursuit vehicles through McHenry County BID 25-7580, with payment and delivery in FY 25/26, for an amount not to exceed $165,988 (Chief Birk) D. Annual Appointments to Boards, Commissions, and Other Offices (Deputy Clerk Johnson) E. Approval of FY25/26 Liquor License Renewals (May 1, 2025 through April 30, 2026) as presented, conditioned upon receipt of required paperwork and payment of fees; and to pass an Ordinance Amending Section 4-2-6, Relating to Class A and Class B Liquor Licenses, of the McHenry City Code (Deputy Clerk Johnson) F. Approval of FY25/26 Video Gaming License Renewals (May 1, 2025 through April 30, 2026) as presented, conditioned upon receipt of required paperwork and payment of fees; and to pass an Ordinance Amending Section 4-6-8, Subsection A – Pertaining to the Number of Video Gaming Licenses of the McHenry City Code (Deputy Clerk Johnson) 1 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. G. Parks & Recreation Facilities & Special Use Permit Requests H. April 7, 2025 City Council Meeting Minutes I. Issuance of Checks in the amount of $376,622.67 J. As Needed Checks in the amount of $343,911.10 9. Individual Action Item Agenda A. Riverwalk Shoppes Dinner Under the Stars A motion to approve: 1) Parks Special use permit to allow the Special Use Permit Application submitted by the McHenry Area Chamber of Commerce for the McHenry Riverwalk Shoppes Area of Miller Point Park on Thursday 6/18/25 and 10/8/2025 from 9am to 11pm and 2) a special event liquor license to the McHenry Area Chamber of Commerce in conjunction with their Special Use Request for the Park and 3) to allow alcohol in the park aside from the normally designated areas (Director Hobson) B. Water Well Solutions A motion to accept the two (2) proposals from Water Well Solutions for the Well #6 Pump Replacement and Aquifer Rehabilitation and Well #2 Inspection and Aquifer Rehabilitation for an amount not to exceed $87,985.50 plus an additional 10% contingency of $8,798.55 to address any issues that may be identified through the inspection of Well Pump #2 (Acting Director Adams) C. Main Street Lights A motion to waive the formal bidding process and approve the quote provided by Carey Electrical Contracting of McHenry, IL, in the amount of $36,903 for the replacement of the street lights on Main Street (Director Hobson) 10. Discussion Item Agenda 11. Staff Reports Provided the 1st meeting of each month. 12. Mayor’s Report 13. City Council Comments 14. Executive Session if needed 15. 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. 2 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. 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/84498929649 3 Fiscal Year 2025/2026 Annual BudgetApril 2025 4 City of McHenry, Illinois FY2025/2026 Annual Budget Table of Contents Letter of Budget Transmittal……….…………………………………………………………………………. 4 Introduction…………………………….…………………………………………………………………………. 26 Elected Officials, Department Directors and Primary Administrators…………. 27 History and Demographic Snapshot of McHenry………………………………………. 28 Budget Document Guide…………………………………………………………………………. 30 Basis of Accounting and Budgeting…………………………………………………………… 30 Budget Process Summary………………………………………………………………………… 31 Budget Process Timeline…………………………………………………………………………. 33 City of McHenry Organizational Chart………………………………………………………. 34 Personnel Summary………………………………………………………………………………... 35 Fund Structure Overview………………………………………………………………………… 36 Chart of Accounts Overview…………………………………………………………………….. 39 Summary of Revenues & Expenditures – All Funds…………………………….………………… 53 Summary of Proposed Revenues – All Funds……………………………………………. 54 Comparison of Budget vs. Proposed Revenues – All Funds………………………… 55 Summary of Revenues and Other Financing Sources – All Funds……………….. 56 Summary of Proposed Expenditures – All Funds………………………………………. 57 Comparison of Budget vs. Proposed Expenditures – All Funds…………………... 58 Expenditures by Function – All Funds……………………………………………………… 59 General Fund Revenues, Expenditures & Fund Balance Summary…………………………. 60 General Fund Overview…………………………………………………………………………... 61 General Fund Revenues, Expenditures and Fund Balance Summary…………… 61 General Fund Revenues – Budgeted, Estimated, Proposed…………………………. 63 General Fund Expenditures – Budgeted, Estimated, Proposed……………………. 68 General Fund - Fund Balance……………………………………………………………………. 71 General Fund Operating Budgets………………………………………………………………………….. 74 General Fund Operating Budgets Overview………………………………………………. 75 General Administration……………………………………………………………………………. 79 Elected Officials………………………………………………………………………………………. 86Community Development…………………………………………………………………………. 89 Finance……………………………………………………………………………………………………. 96 Human Resources……………………………………………………………………………………. 104 Economic Development……………………………………………………………………………. 111 Police Commission…………………………………………………………………………………… 120 Police/Dispatch..………………………………………………………………………………………. 123 Public Works – Administration…………………………………………………………………. 147 Public Works – Streets……………………………………………………………………………… 154 Parks and Recreation………………………………………………………………………………... 162 Special Revenue Funds………….………………………………………………………………………………. 175 Tourism……………………………………………………………………………………………………. 176 Pageant………………………..……………………………………………………………………………. 179 Band…………………………………………………………………………………………………………. 182 Civil Defense……………………………………………………………………………………………... 185 Alarm Board…………………………………………………………………………………………….... 188 Audit………………………………………………………………………………………………………… 191 Annexation………………………………………………………………………………………………... 194 5 Motor Fuel Tax………………………………………………………………………………………….. 197 Local Motor Fuel Tax………………………………………………………………………………….. 200 Developer Donation…………………………………………………………………………………… 203 Tax Increment Finance………………………………………………………………………………. 206 Capital Projects & Debt Service Funds……………………………………………………………………. 209 Debt Service Fund……………………………………………………………………………………… 210 Recreation Center Fund……………………..………………………………………………………. 213 Special Service Area #4……………………………………………………………………………… 221Capital Improvements Fund……………………………………………………………………….. 224 Capital Equipment Fund…………………………………………………………………………….. 227 Capital Asset Maintenance & Replacement Fund ………………………………………… 230 Capital Asset New Projects Fund (New FY23/24)………………………………………... 233 Enterprise Funds………………………………………………………………………………………………….. 236 Water & Sewer Fund…………………………………………………………………………………. 237 Public Works – Water……………………………………………………………………………….. 239 Public Works – Wastewater……………………………………………………………………….. 244 Public Works – Utility……………………………………………………………………………….. 249 Capital Development…………………………………………………………………………………. 261 Utility Improvements………………………………………………………………………………... 264 Marina Operations…………………………………………………………………………………….. 267 Internal Service Funds…………………………………………………………………………………………. 270 Employee Insurance…………………………………………………………………………………. 271 Risk Management…………………………………………………………………………………….. 274 Information Technology...………………………………………………………………………….. 277 Fiduciary Funds……………………………………………………………………………………………………. 282 Employee Flexible Spending………………………………………………………………………. 283 Development Escrow…………………………………………………………………………………. 286 Retained Personnel……………………………………………………………………………………. 289 Revolving Loan…………………………………………………………………………………………. 292 Police Pension…………………………………………………………………………………………… 295 Supplemental Information…………………………………………………………………………………….. 298 Financial Policies Overview……………………………………………………………………….. 299 Fund Balance and Reserve Policy……………………………………………………………….. 301 Community Investment Program Financial Policies……………………………………. 310 Investment Policy……………………………………………………………………………………… 311Purchasing Policy and Procedures………………………………………………………………. 318Glossary of Terms……………………………………………………………………………………… 320 6 Suzanne Ostrovsky, City Administrator Carolyn Lynch, Finance Director McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2100 Fax: (815) 363-2119 sostrovsky@cityofmchenry.org clynch@cityofmchenry.org LETTER OF BUDGET TRANSMITTAL April 21, 2025 Honorable Mayor and City Council and Residents of McHenry: On behalf of the Department Directors and all employees of the City of McHenry, we are pleased to submit for your consideration the Fiscal Year 2025/2026 Budget. The purpose of this letter of budget transmittal is to provide a broad overview of the budget information contained in the detailed budget document that follows. As always, it is the goal of City Administration to provide the City Council and general public with a budget document that is transparent and provides an accounting for all of the funds that the City receives and expends. BACKGROUND: The City’s annual fiscal year budget covers the period beginning May 1st and ending April 30th. The budget document itself, upon completion, contains information relative to estimated revenues and planned operational and capital expenditures for the various funds of the municipality for the identified fiscal year. Although the budget is not formally adopted by the City Council until April of each year, the budget development process officially begins each October with the preparation of the annual tax levy, which is used to fund many of the current programs and services, along with the development/update of the Community Investment Plan. The budget preparation process provides the various divisions and departments of the City with the opportunity to review accomplishments, set goals and objectives, and identify the means for accomplishing these goals and objectives. Every employee of the municipality plays a role in the budgeting process – be it formulation, preparation, implementation, administration, or evaluation. Ultimately, Department Directors, through the Finance Director and City Administrator, are accountable to the City Council and to the residents of McHenry for the performance of departments in meeting the goals and objectives of a full-service municipality, and for the diligent fiscal management of funds, as set forth in the budget document. Department Directors, with input from their respective managers, superintendents and departmental staff, analyze historical data, review existing operational needs, and project 47 anticipated operational needs in order develop line-item budget requests that allow them to maintain or enhance the level of programs and services within their departments. These detailed requests are submitted to the City Administrator and Finance Director, and meetings are held with Department Directors to review and adjust requests based on identified needs and anticipated revenues, keeping in mind the overall services that the municipality must provide to residents. As always, it is the goal of City Administration to present City Council with a balanced operating budget. This goal is achieved in the attached budget information. The discussion that follows includes analyses and recommendations based on the best available information that staff has at the time of budget development and reflects a commitment to meeting or exceeding budgetary guidelines as established by the National Advisory Council on State and Local Budgeting and the Government Finance Officers Association best practices on budgeting. ANALYSIS – GENERAL FUND: The General Fund represents the core revenue and expense fund for municipal functions. General Fund Revenues are comprised of Intergovernmental sources such as Property Tax, State Sales Tax, Local Sales Tax, State Income Tax, State Replacement Tax, State Pull Tabs, Intertrack Wagering, State Communications Tax, and State Grants; Local Sources such as Franchise Fees, Licenses and Permits, Fines and Forfeitures, Charges for Services, and Interest Income; and Miscellaneous sources such as Donations and Reimbursements for Services. General Fund Expenses include personnel, contractual, supplies and other operating expenses related to the following operating budgets - Administration (100.01), Elected Officials (100.02), Community Development (100.03), Finance (100.04), Human Resources (100.05), Economic Development (100.06), Police Commission (100.21), Police (100.22), Police Dispatch (100.23), Public Works-Administration (100.30), Public Works-Streets (100.33), Parks and Recreation (100.41), and Parks Maintenance (100.45). Please reference the attached spreadsheet titled “General Fund – Revenues, Expenditures and Fund Balance Summary” for the following discussion. General Fund Revenue, Expenditure and Fund Balance Summary In summary, FY25/26 proposed General Fund Revenues and Expenditures reflect total revenues of $31,960,421 (an increase of $785,892 or 2.5% from the FY24/25 Budget amount –Row 28, Column K), and total operating expenditures of $31,265,592 (an increase of$934,280 or 3.1%, less capital, from the FY24/25 Budget amount – Row 39, Column K). This reflects a net difference (revenues over expenditures) of $694,829. Importantly, this means that the proposed General Fund Operating Budget, as presented, is BALANCED.While COVID-19 has made revenues volatile over the last few years, the City has been fortunate to see recovery in many revenue sources. While specifics will be detailed in the discussion that follows, the primary reasons for increases in revenues relate to projections 58 for State Sales Taxes (an increase of $249,865 or 2.67% - Row 10, Column K), Local Sales Taxes (an increase of $139,069 or 3.59% - Row 11, Column K), State Income Taxes (an increase of $197,271 or 4.25% - Row 12, Column K), the addition of Municipal Cannabis Tax at $225,000(Row 15, Column K), Self Storage Taxes (an increase of $44,000 or 35.2% - Row 16, Column K), Video Gaming Revenue (an increase of $75,000 or 8.11% - Row 19, Column K), Licenses and Permit Revenue (an increase of $24,000 or 8.30% - Row 21, Column K), and Charges for Services (an increase of $55,000 or 3.97% - Row 23, Column K). These increases are partially offset by decreases to Property Taxes (a decrease of $17,262 or 0.35% - Row 9, Column K), State Replacement Taxes (a decrease of $35,000 or 26.92% - Row 13, Column K), State Telecommunications Taxes (a decrease of $10,000 or 5.26% - Row 14, Column K), Intertrack Wagering Revenue (a decrease of $4,000 or 10.53%- Row 18, Column K), Franchise Fees (a decrease of $65,000 or 19.12% - Row 20, Column K), Fines and Forfeitures Revenue (a decrease of $50,000 or 13.23% - Row 22, Column K), Reimbursement Revenue (a decrease of $39,051 or 1.05% - Row 24, Column K, and Miscellaneous Revenue (a decrease of $3,000 or 1.55% - Row 27, Column K). Regarding General Fund Expenditures, Personnel costs are proposed to increase by $947,308, or 4.94% (Row 31, Column K) due to Union Contract increases, CPI-U increases for non-bargaining unit employees, and higher insurance costs. It should be noted that a portion of the Police Dispatch Center costs and the School Resource Officers that are in the middle and high schools are offset by General Fund Revenue in the form of reimbursements (reflected in Row 24, Column J) from dispatch partner agencies, customers, and the school districts. Most notably, FY25/26 General Fund Expenditures, as proposed, reflect increased Contractual costs of $146,431 or 3.45% (Row 32, Column K), Supply costs reflect an increase of $43,550 or 3.73% (Row 33, Column K), and Transfers reflect an increase of $57,059 or 1.30% (Row 36, Column K) (after removing the $3,451,290 excess fund balance transfer discussed below). Reasons for these increases are discussed in detail beginning on page 11 of this memorandum. Finally, the FY25/26 General Fund Expenditures, as identified in this attachment, includes a transfer to the Capital Asset Maintenance & Replacement Fund in the amount of $3,451,290 which is the amount identified as Assigned for Capital through the FY23/24 Audit, as defined in the Fund Balance and Reserve Policy. As discussed in detail on pages 12 and 13 of this memo, the Fund Balance and Reserve Policy defines the process for transferring excess funds for capital needs. In FY22/23, FY23/24, and FY24/25, capital projects were budgeted in the General Fund using Fund balance, which canceled the Fund Balance transfer that would have occurred during the audit process. There are a few carryover projects from FY24/25 that are budgeted to be completed in FY25/26, but excess Fund Balance remains, which is budgeted to be transferred to be used for future capital needs. City staff has identified $1,544,000 in General Fund capital projects in the Capital Maintenance & Replacement Fund; however, only $1,000,000 in dedicated utility tax funds is available for these projects. With the transfer of the excess fund balance from the General Fund, the additional $544,000 in projects can be completed. This leaves $2,997,290 available; the City Council has directed that this balance be assigned for the unfunded portion of the upcoming Route 31 project. 69 Carrying the General Fund Revenue and Expenditure estimates through the end of the fiscal year (April 30, 2025), it is projected that the total General Fund Balance will be $21,156,788 at the end of FY24/25 (Column I, Row 45). As defined in the Fund Balance and Reserve Policy, the estimated required 120-day General Fund Balance Reserve would be $10,403,007, so this balance is projected to be approximately $10,753,781 higher than the requirement. However, a significant amount of this fund balance is reserved for specific projects. American Rescue Plan Act (ARPA) COVID funds ($3,682,586) are reserved for the Route 31 widening capital project projected to commence in FY26/27; Public Safety Answering Point (PSAP, or 911) Grant funds ($1,531,202) are reserved specifically for dispatch expenses and are approved for spending by the NERCOM board; and Police Seizure Funds ($150,802) can only be allotted to specific Police eligible expenses. The remaining FY24/25 General Fund Balance that could be utilized for capital projects is $5,389,191 (Column I, Row 50); as stated above, $3,451,290 identified through the audit is budgeted to be transferred to the capital fund in FY25/26. Once the audit is completed for FY24/25, the amount that can be assigned for capital will also be identified and transferred in FY26/27. REVENUES: General Fund Revenues – FY24/25 Budgeted, FY24/25 Estimated, FY25/26 Proposed General Fund Revenues are derived from a number of sources – taxes, video gaming, licenses and permits, fines and forfeitures, franchise fees, charges for services, reimbursement for services, donations, interest income, and other miscellaneous sources. Some revenues can be clearly identified and estimated based on historical performance or other factors. For example, Property Tax revenue is based on the adoption of the annual property tax levy. However, the economic recession of 2007/2008 and the pandemic have served to remind local governments that economic-based revenues, such as Sales Taxes and State Income Taxes, are not guaranteed and are closely tied to the economy and disposable income. In estimating General Fund Revenues for the purpose of budget development, City Administration takes a conservative approach in order to: 1) ensure that General Fund Revenue projections are not overstated to avoid deficit spending and the need to utilize the General Fund Balance (e.g., 120 day unassigned fund balance) for operational expenses; 2) limit excessive increases in operating expenditures; and 3) maintain a financial “buffer,” in the form of the General Fund Balance, to protect the City from future unforeseen economic threats. Utilizing this philosophy, City Administration then considers past revenue performance, current economic trends, local economic conditions, and economic forecast models developed by the Illinois Municipal League (IML) for use by local governments in developing revenue projections for the purpose of budget development. FY24/25 Budgeted Revenues (Column H) In FY24/25, total budgeted General Fund Revenues were $31,174,529 (Column H, Row 28). Of this, $4,987,562 (16.0%) was from Property Taxes, $9,356,404 (30.0%) was from the City’s 1% share of the State Sales Tax, $3,874,618 (12.4%) was from the .75% Local Sales Tax, and $4,640,085 (14.9%) came from the City’s share of the State Income Tax. Revenues derived from these four (4) sources were budgeted at $22,858,669 or 73.3% of total General 710 Fund Revenues. Of the remaining $8,315,860 (26.7%) in budgeted General Fund Revenues, $1,384,289 (4.5%) were from Charges for Services, $3,722,615 (12.0%) from Reimbursement for Services, $378,000 (1.2%) from Fines and Forfeitures, $289,000 (0.9%) from Licenses and Permits, $340,000 (1.1%) from Franchise Fees, $925,000 (3.0%) from Video Gaming, $190,000 from Telecommunications Tax (0.6%), $600,000 (1.9%) from Interest Income, and the remaining $486,956 (1.5%) came from all other sources combined. FY24/25 Estimated Revenues (Column I) The following estimated revenues are based on 10 months of actual revenues and projected through the remainder of the fiscal year (April 30, 2025). Unfortunately, in some cases this estimation is more difficult than simply annualizing by dividing the 10-month actual by 10 and multiplying by 12, due to the timing of when specific revenues are received. Further, FY24/25 Actual revenues will not be known and confirmed until approximately 2-3 months (June-July) after the close of the fiscal year due to the timing involved with the receipt of state-shared revenues and, ultimately, the completion of the annual audit in September/October 2025, 4-5 months into the new budget year. At this time, estimated General Fund Revenues are projected to be $32,195,170 (Column I, Row 28) or $1,020,641 (3.3%) higher than FY24/25 Budgeted revenues of $31,174,529. This reflects an estimated increase of $436,840, or 1.4%, from FY23/24 Actual revenues of $31,758,330. Notably, FY24/25 Estimated Revenues, when compared to FY23/24 Actual revenues and FY24/25 Budgeted revenues, highlight the following: • (Row 10) State Sales Tax revenue is projected to be $353,837 (3.8%) higher than budgeted and $270,480 (2.9%) higher than the FY23/24 Actual amount. • (Row 11) Local Sales Tax revenue is projected to be $163,879 (4.2%) higher than budgeted and $122,879 (3.1%) higher than received in FY24/25. • (Row 10 + Row 11) Combined, total Sales Tax revenue is estimated to be $517,716 (3.9%) higher than budgeted and $393,359 (2.9%) higher than the FY23/24 Actual. State Sales Tax revenues have shown significant signs of an economic recovery since the beginning of COVID-19, but they are now showing signs of leveling off. Estimates and proposed amounts for FY25/26 are extremely conservative, as City Administration watches the actual receipts closely. As a reminder, Local Sales Tax revenues do not include the sale of licensed or titled items such as cars, boats or motorcycles. • (Row 12) State Income Tax receipts are estimated to be $20,614 (0.4%) lower than budgeted and $177,077 (4.0%) higher than FY23/24. • (Row 13) State Replacement Tax receipts are estimated to be $34,381 (26.4%) lower than budgeted and $78,052 (44.9%) lower than FY23/24. This significant decrease 811 is due to the state claw back of overallocations of replacement taxes in state fiscal years 2022 and 2023. Replacement taxes have also been increasingly difficult to predict, so as shown below, City staff has lowered budgeted amounts to ensure estimates are met. • (Row 15) Municipal Cannabis Tax receipts are estimated to be $222,287 higher than budgeted, as these taxes were not budgeted in FY24/25, and $148,946 (203.1%) higher than FY23/24. These taxes began being collected when the first Dispensary opened in December 2024. • (Row 16) Self Storage Tax receipts are estimated to be $43,590 (34.9%) higher than budgeted and $18,358 (12.2%) higher than FY23/24. • (Row 19) Video Gaming revenues are estimated to be $1,023,307, which is $98,307 (10.6%) higher than budgeted and $103,788 (11.3%) higher than FY23/24. • (Row 20) Franchise Fees revenues are estimated to be $49,523 (14.6%) lower than budgeted and $51,260 (15.0%) lower than FY23/24. This decrease relates to residents moving away from cable television to streaming services that do not have franchise fees. • (Row 21) Licenses and Permits revenues are estimated to be $46,987 (16.3%) higher than budgeted and $7,442 (2.2%) lower than FY23/24. • (Row 22) Fines and Forfeitures revenues are estimated to be $45,298 (12.0%) lower than budgeted and $270,965 (44.9%) lower than FY23/24. Traffic fines are the largest portion of fines and forfeitures, and the fines received from the McHenry County Circuit Clerk are lower than they have been in past years. • (Row 23) Charges for Services revenues are estimated to be $112,797 (8.2%) higher than budgeted and $39,705 (2.7%) higher than FY23/24. • (Row 24) Reimbursements for services revenues are estimated to be $121,737 (3.3%) lower than budgeted and $18,727 (0.5%) higher than FY23/24. The decrease in Estimated versus the FY24/25 Budget is due to Street grant program revenues that are slow to be reimbursed to the City. • (Row 25) Interest Income revenues are estimated to be $347,812 (58.0%) higher than budgeted and $20,686 (2.1%) lower than FY23/24 due to increased interest rates, as well as fund reserves held for Rt. 31 construction and other purposes. • (Row 27) Miscellaneous Income revenues are estimated at $68,487 (35.4%) lower than budgeted and $24,110 (23.9%) higher than FY23/24. 912 In summary, FY24/25 Estimated Revenues are projected at $1,020,641 (3.3%) higher than budgeted primarily due to State and Local Sales Taxes, Municipal Cannabis Tax, Self Storage Tax, Video Gaming receipts, Licenses and Permits, Charges for Services, and Interest Income. When compared to FY23/24 Actual Revenues, total General Fund Revenues increased $436,840 (1.4%). This is primarily due increases to State and Local Tax receipts, State Income Tax, Municipal Cannabis Tax, and Video Gaming Receipts, offset by decreases to State Replacement Tax, as well as Fines and Forfeitures. FY25/26 Proposed Revenues (Column J) FY25/26 Proposed General Fund Revenues represent a net increase of $785,892 (2.5%) from FY24/25 Budgeted revenues and an increase of $202,091 (0.6%) from FY23/24 Actual revenues. Highlights of changes to General Fund Revenues proposed for FY25/26 include: • (Row 9) At the direction of City Council, the City’s 2024 property tax levy was increased by the New Construction percentage of 1.2% or $38,022. This, combined with declining Road and Bridge Taxes and property tax collection rates around 99%, resulted in an estimated Property Tax revenue decrease of $17,262 (0.4%) versus the FY24/25 Budget. As requested by Council, a discussion will be added to assign this $38,022 to a specific expense; however, it is important to reiterate that overall Property Tax revenue has actually decreased year-over-year. • (Row 10) State Sales Tax revenues are proposed at $9,606,269, which is $249,865 (2.7%) higher than FY24/25 Budget. The City has seen moderate increases to Sales Taxes during FY24/25, so FY25/26 revenue was conservatively increased. o The Governor has permanently eliminated the state-wide 1% Grocery Tax beginning in January 2026, and these losses are not supplemented from other sources for local governments. It is estimated that staff will bring forward the municipal 1% Grocery Tax ordinance in August 2025 for City Council consideration, to be implemented when the state-wide tax is removed in January 2026. Without this 1% Grocery Tax, the City’s Sales Tax revenue would decrease by over $1,000,000. This would be a significant reduction to the City’s overall budget and would require significant expense reductions. • (Row 11) Local Sales Tax revenues are proposed at $4,013,687, an increase of $139,069 (3.6%) from the amount budgeted in FY24/25. • (Row 10 + Row 11) Combined State and Local Sales Tax revenues are proposed at $13,619,956, an increase of $388,934 (2.9%) from the FY24/25 Budget amount. • (Row 12) State Income Tax revenues are proposed at $4,837,356, an increase of $197,271 (4.3%) from FY24/25. Regarding State Income Tax revenues, please note the following: 1013 o There are multiple agencies working to restore the Local Government Distributive Fund (LGDF), which includes Income Tax distribution, to its full 10 percent (which was cut to 6% in 2011, changed a few times since then and currently sits at just over 6%). Over the years, the Governor has proposed cutting an additional 10% from the LGDF. Restoring or cutting these funds could represent a large increase or decrease in revenues. Staff will continue to watch these developments closely in case expense adjustments need to be made to offset any decrease in revenue. • (Row 13) State Replacement Tax revenues are proposed at $95,000, which is $35,000 (26.9%) less than the amount budgeted in FY24/25, for the reasons noted above. • (Row 14) State Telecommunication Tax revenues are proposed at $180,000, which is $10,000 (5.3%) less than the amount budgeted in FY24/25, as revenues have continued to decline over the last few years. • (Row 15) Municipal Cannabis Tax revenues are proposed at $225,000; this is the first year these taxes have been budgeted, since the first dispensary opened in December 2024. • (Row 16) Self Storage Tax receipts are expected to be $169,000 in FY25/26, an increase of $44,000 (35.2%) from the amount budgeted in FY24/25. • (Row 19) Video Gaming revenues are proposed at $1,000,000, a $75,000 (8.1%) increase from the FY24/25 Budget amount. • (Row 20) Franchise Fees revenues are proposed to decrease by $65,000, or 19.1% from the amount budgeted in FY24/25, for the reasons noted above. • (Row 21) Licenses and Permits revenues are proposed to increase by $24,000, or 8.3% from the amount budgeted in FY24/25. • (Row 22) Fines and Forfeitures revenues are proposed to decrease by $50,000, or 13.2% from the amount budgeted in FY24/25, for the reasons noted above. • (Row 23) Charges for Services revenues are proposed to increase by $55,000, or 4.0% from the amount budgeted in FY24/25. • (Row 24) Reimbursements are proposed to decrease $39,051 or 1.1%. This category includes the Police Dispatch Center revenues derived from partner and customer agencies served through this facility, police school resource officer reimbursements, police impound fees, and other miscellaneous reimbursements. 1114 • (Row 27) Miscellaneous Income is proposed to decrease $3,000 or 1.6%, from the amount budgeted in FY24/25. In summary, FY25/26 Proposed Revenues are $785,892 (2.5%) higher than budgeted in FY24/25 and $234,749 (0.7%) lower than FY24/25 Estimated revenues. The primary reasons for the proposed increase include an increase in State Sales Tax ($249,865), an increase in Local Sales Tax ($139,069), an increase to the Income Tax ($197,271), an increase in Municipal Cannabis Tax ($225,000), an increase to the Self Storage Tax ($44,000), an increase in Video Gaming revenues ($75,000), an increase in Licenses and Permits revenues ($24,000), and an increase to Charges for Services revenues ($55,000). These increases are partially offset by decreases to Property Tax revenue ($17,262), State Replacement Tax revenue ($35,000), State Telecommunication Tax revenue ($10,000), Intertrack Wagering Revenue ($4,000), Franchise Fees revenues ($65,000), Fines and Forfeitures revenues ($50,000), Reimbursements revenues ($39,051) and Miscellaneous revenues ($3,000). EXPENDITURES: General Fund Expenditures – FY24/25 Budgeted, FY24/25 Estimated, FY25/26 Proposed General Fund Expenditures include personnel, contractual, supplies and other operating expenses related to the following operating budgets - Administration (100.01), Elected Officials (100.02), Community Development (100.03), Finance (100.04), Human Resources (100.05), Economic Development (100.06), Police Commission (100.21), Police (100.22), Police Dispatch (100.23), Public Works-Administration (100.30), Public Works-Streets (100.33), Parks and Recreation (100.41), and Parks Maintenance (100.45). In addition, the General Fund also serves as a funding source for revenue transfers to other municipal accounts found within Special Revenue Funds, Debt Service Funds, Internal Service Funds, and Fiduciary Funds. FY24/25 Budgeted Expenditures (Column H) In FY24/25, total budgeted expenditures (capital and operating) were $31,223,382. Budgeted capital expenditures were $892,070, and budgeted operating expenditures were $30,331,312. While this amount reflected an increase of $2,532,036 (9.1%) from the FY23/24 Actual expenditures (Column G, Row 39), this difference was primarily due to contractual and personnel expenses. Personnel Costs increased $1.1 million due to the addition of a FOIA Officer position, contract step and cost of living adjustments for bargaining unit employees, a 3.5% increase to non-bargaining unit employees and insurance increases. Contractual expenses increased just over $875,000 due to the purchase of body worn and in-squad cameras for the police department, contractual street resurfacing expenses, increased NISRA Dues and parks trip expenses, and increases to prices due to inflation. FY24/25 Estimated Expenditures (Column I) In general, City Administration – including department directors, superintendents, and supervisors – closely monitors expenditures throughout the year to ensure that operating 1215 budgets stay within the approved amounts. The fiscal diligence of all of these individuals most often results in expenditures being less than the amount budgeted. Even with surging prices due to recent inflationary pressures, expenditures have been well managed and continue to fall within the budget. For FY24/25, operating expenditures are estimated at $29,413,208, or $918,104 (3.0%) less than the budgeted amount of $30,331,312. Highlights of changes to FY24/25 Estimated Expenditures include: • (Row 31) Reduced Personnel costs of $578,221 (3.0%) resulting from budgeted positions unfilled during the year and lower benefit costs. • (Row 32) Contractual costs are estimated at $315,159 (7.4%) lower than the original budget, due to lower legal fees and projects that were budgeted (including the Unified Development Ordinance) but not yet completed, and therefore will need to be carried over to FY25/26. • (Row 33) Supply costs are estimated at $100,101 (8.6%) less than budget. • (Row 34) Other estimated expenditures are estimated at $75,377 (5.7%) more than the original budget due to higher than expected sales tax incentive payments. • (Row 35) Capital Outlay expenditures are $572,398 (64.2%) less than the original budget; however, funds have been carried over to complete a number of these projects in FY25/26. Note: City Administration anticipates changes to FY24/25 Estimated expenditures due to increases or decreases in revenues and expenses through the end of the fiscal year. FY25/26 Proposed Expenditures (Column J) FY25/26 proposed operating expenditures represent an increase of $934,280 (3.1%) from the FY24/25 Operating Budget amount of $30,331,312. Highlights of changes to General Fund Expenditures proposed for FY25/26 include: • (Row 31) Personnel costs are proposed to increase $947,308 (4.9%) over the amount budgeted in FY24/25. Personnel costs include salaries, overtime, health/dental/life/vision insurance, FICA, Police Pension and IMRF retirement, and uniforms. Significant year-over-year changes include: 1. Personnel costs related to salaries account for a $606,275 increase from FY24/25 to FY25/26 due to contract steps and cost of living adjustments, as well as increases to wages for part-time parks employees due to increased programming and the required adjustment to the minimum wage. Employees covered by collective bargaining units IUOE Local 150 (Public Works, Parks Maintenance employees), FOP Unit 1 (Police Patrol), and FOP Unit 2 1316 (Dispatch) receive contract steps and cost of living adjustments (IUOE Local 150 – estimated at 3.5%, FOP Unit 1 – 3.5% and FOP Unit 2 – 4.0% with an additional 2.5% salary adjustment). Wage increases are included for Police Sergeants and other non-bargaining employees based on the previous year’s Consumer Price Index for All Urban Areas (CPI-U), which was 3.9% as of December 2024. City Administration has used the CPI-U as the marker for non-bargaining unit employee increases since FY15/16. For FY25/26, the increases were set at 4.0%, just above the CPI-U. There is no additional merit component proposed for FY25/26. 2. Personnel costs related to the Police Department were increased $54,560 due to the FOIA Officer moving from part time to full time status; this change was necessary due to the increased workload associated with body worn cameras. 3. Police Pension costs are proposed at $2,355,922 (of which $1,664,558 is a transfer to the Debt Service Fund to cover the Pension Obligation Bond). This equates to a decrease of $18,033 (0.8%). Police Pension costs are determined by an actuary retained by the Police Pension Board and are based on several factors, including wages, investment rate, and age of the workforce. The City issued the Pension Obligation Bond in 2020 to set the City up to be 100% funded by the required deadline of 2040. 4. NERCOM has voted to again use PSAP funds to supplement the budget. In FY22/23, $300,000 in PSAP funds was used to cover expenses; this was increased to $500,000 in FY23/24; and increased again to $700,000 in FY24/25. For FY25/26, $700,000 in PSAP revenues are again budgeted to offset dispatch center expenses. 5. Total Benefit costs are proposed to increase $310,714 (6.7%) due to increases to insurance elections, FICA, and IMRF costs. • (Row 32) Contractual costs are anticipated to increase by $146,431 (3.5%) from the amount budgeted in FY24/25 due to the following: 1. Streets Department expenses were increased by $93,230 (5.2%) to cover Oakwood Drive Engineering and Construction on top of the annual street resurfacing budget. 2. Parks Department expenses were increased by $32,638 (8.8%) due to increased special recreation association (NISRA) dues, fees, and additional parks trip expenses. 3. Parks Maintenance Department expenses were increased by $45,000 (19.8%) due to mowing contracts, sport court maintenance, and utility costs. 4. Additional funds were added to most training budgets. 1417 • (Row 33) Supplies expenditures are proposed to be increased by 3.7% ($43,550) due to increases in prices for all supplies. • (Row 34) Other expenditures are anticipated to decrease by $260,068 (19.5%) due to a vehicle loan payoff in FY24/25. • (Row 36) Transfers are anticipated to increase by $3,508,349 (79.7%). Included in this transfer is $3,451,290 which is the excess General Fund Balance addressed earlier in this memo. The remaining increase of $57,059 is due to increased expenses in the Information Technology Fund. GENERAL FUND BALANCE: On February 1, 2016, City Council adopted a new Fund Balance and Reserve Policy that, in summary, establishes minimum levels for designated funds to ensure stability and meet future needs. This policy meets the reporting requirements of Government Accounting Standards Board (GASB) Statement 54, which requires the formal adoption of a policy for the classification of fund balances to categories other than “unassigned.” The policy was established to provide financial stability in the various municipal funds, ensure adequate cash flow for operations, and provide some assurance that the City will be able to respond to emergencies with fiscal strength. In regard to the General Fund Balance, specifically, the Fund Balance and Reserve Policy states: “General Fund – The unrestricted fund balance target should be set at 120 days (4 months) of estimated operating expenditures including those expenditures reported in other Governmental Funds that receive annual operating transfers, with the exception of transfers intended to fund capital projects. If the unreserved fund balance falls below 120 days, a plan will be developed to return to the target balance. If the unreserved fund balance reaches a low of 90 days (3 months), the plan will be implemented to return the fund balance to the target within a reasonable amount of time. One-time revenues shall not be used to fund current operations.” This level of fund balance shall provide the capacity to: • Offset unexpected downturns in elastic revenues due to fluctuations in the local, state and national economies or the loss of major sales tax contributor(s); • Offset negative fiscal changes brought about by action or legislation of another unit of government or agency; 1518 • Ensure the continued, timely repayment of debt obligations that the City may have in the event of a financial downturn; • Provide a sufficient cash flow for daily financial needs at all times; and, • Provide a funding source for unanticipated expenditures or emergencies that may occur. As identified, the parameters in this policy help to guide City Administration in the development of the annual budget by ensuring that the General Fund Budget is presented as balanced, revenues over expenditures, while maintaining this reserve. Further, the establishment of the target minimum of 120 days provides clarity in identifying the level of funding that is available – once revenues, expenditures and fund balance are identified – to address the City’s capital needs. In other words, any funds remaining after meeting the operational and reserve needs of the municipality are “Assigned for Capital.” The FY23/24 Budget included a beginning General Fund balance of $16,857,121 (Column G, Row 6), based on FY22/23 audited financial information. Based on FY23/24 actual revenues, operating expenditures, and capital expenditures (which were funded with fund balance), the ending FY23/24 audited fund balance is $18,694,498 (Column G, Row 45), with an estimated ending unassigned 120-day fund balance of $10,096,337 (Column G, Row 46). With a total of $5,146,871 reserved for the Rt. 31 widening and other uses discussed on page 4 above, the balance to be transferred to the Capital Improvement Fund is $3,451,290 (Column G, Row 50). This amount is included in Transfers in the FY25/26 Budget. The City recently implemented two Utility Taxes to address General Fund Capital needs. The ComEd Utility Tax was implemented for existing capital asset maintenance and replacement, and the Nicor Utility Tax was implemented for new capital assets. The City’s existing Capital Improvement and Capital Equipment Funds will be phased out once projects are completed within those funds; they will be replaced with the Capital Asset Maintenance and Replacement Fund (to be funded by the ComEd Utility Tax) and the Capital Asset New Project Fund (to be funded by the Nicor Utility Tax). As referenced above, the ComEd Electricity Utility taxes are not sufficient to fund all of the capital projects for FY25/26. With this shortfall, General Fund surplus will be used to fund a portion of the capital items included in the Capital Asset Maintenance and Replacement Fund. The remaining funds will be available for future projects. Detail on capital spending is provided below. ANALYSIS – GENERAL FUND OPERATING DEPARTMENTS: Please reference the attached operating department spreadsheets for the following discussion. General Fund Operating Departments include personnel, contractual, supplies and other operating expenses for the following departments - Administration (100.01), Elected Officials (100.02), Community Development (100.03), Finance (100.04), Human Resources (100.05), Economic Development (100.06), Police Commission (100.21), Police (100.22), Police Dispatch (100.23), Public Works-Administration (100.30), Public Works-Streets 1619 (100.33), Parks and Recreation (100.41), and Parks Maintenance (100.45). These expenditures have already been summarized, in total, as part of the previous discussion of General Fund Revenues and Expenditures. The following narrative will focus on identifying the major points for each operating department. Note, the Budget Variance $ (Column I) and Budget Variance % (Column J) are based on a budget-to-budget comparison from the FY25/26 Budgeted amount to the FY24/25 Budgeted amount. General Administration (100.01) Overall, the Administration operating budget is proposed to decrease by $152,579 or 11.4% in FY25/26 (Column H, Row 54). Salary/Benefit costs are identified to decrease by a net of $143,058 or 19.2%, primarily due to the transfer of the salaries and benefits for building employees to the Community Development Department. Contractual expenditures, which includes property tax expenses, insurance administrative expenses, shredding, and other miscellaneous administrative costs, are expected to remain the same in FY25/26. Corporate Legal Fees include the City Attorney, Traffic Attorney and Collective Bargaining representation and are identified to decrease $20,000 in FY25/26. Travel and Training Expenses include training and travel expenses for administrative employees as well as elected officials and are identified to increase $3,500 in FY25/26. Materials and Supplies include garbage sticker purchases which are for sale to residents and are identified to increase $5,000 in FY25/26. Other expenditures – which includes Administrative Expenses and internal transfers for Risk Management and Information Technology – is proposed to increase by $1,979. Elected Officials (100.02) The Elected Officials budget is proposed for a $260 increase, or 0.4%, due to an increase to internal transfers for Information Technology. (Column H, Row 31). Community Development (100.03) The Community Development budget is proposed increase $160,054, or 9.8% (Column H, Row 42). Salary/Benefit costs are budgeted to increase by $245,777 (23.7%). This includes $174,990 in non-union and union salary increases (which incorporates absorbing the transfer of existing Facility Manager and Building Custodian positions from Administration) and $70,787 in benefit cost increases. Contractual Services are identified to decrease by $112,250 (26.9%) due to the completion of the Comprehensive Plan. Supplies will increase $23,900 (51.4%), and the internal transfer for Information Technology will increase by $2,627 (3.0%). Finance (100.04) Salary/Benefit costs are anticipated to increase by $18,657 (3.7%). Contractual Expenses are expected to increase $24,000 (31.6%) due to higher credit card fees, utility bill printing and postage increases. Development Expenses are expected to increase by $10,000 (1.0%). One of the loans issued for vehicle purchases in 2020 has been paid in full, decreasing loan expenses by $244,568 (87.0%). Transfers for Debt Service, Civil Defense Fund, Information Technology, and Audit Funds are budgeted to increase by $13,431 (3.7%). 1720 Human Resources (100.05) Salaries/Benefit costs are budgeted to increase by $17,424 (5.8%), which is primarily due to salary and insurance increases. Contractual Services are budgeted to increase by $12,455 (27.2%) due to increases to the wellness program and training and travel expenses, and Other Expenses increase by $793 (3.0%) due to an increased Information Technology Fund transfer. Economic Development (100.06) Salary/Benefit costs are budgeted to increase by $11,272 (3.7%) due to salary and insurance increases. Contractual Services increase $19,950 (9.7%) due to increased Travel and Marketing expenses. Purchase of Services – Information Technology expenses increase by $383 (3.1%). Police (100.22) The Police budget is proposed at an overall increase of $532,965, or 4.1% from FY24/25. Salary costs (Column H, Rows 7 through 11) are identified to increase by $305,493 due to sworn salary increases, non-sworn salary increases, moving the FOIA Officer from part time to full time status, and an adjustment to overtime. Benefit costs (Column H, Rows 13-20) are identified to increase $119,732 due to higher insurance costs and insurance election changes. As discussed earlier, Police Pension costs are determined by an actuary retained by the Police Pension Board and are based on a number of factors, including wages, investment rate, and age of the workforce. Contractual Services are budgeted to increase by $36,908 (5.6%) due to increased telephone costs and training/travel. Supplies increase by $150 (0.1%) and the transfer to Information Technology increases by $21,213 (2.8%) due to higher expenses within the Information Technology Fund. Capital Expenses within the Police Department Budget include a speed sign, firearms simulator, furniture, drying chamber build-out, drone and miscellaneous police equipment. The FY25/26 capital budget also includes a project to complete a renovation to the Police Department men’s locker room; seizure funds will be used to pay for this $100,000 expense. Dispatch Center (100.23) FY25/26 represents the ninth full year of operation for the consolidated dispatch center, NERCOM, which serves 16 area agencies. The proposed FY25/26 budget has been presented and approved by the partners of the dispatch center. The total amount proposed for the dispatch center in FY25/26 is $3,293,324. Salaries/Benefit Costs show a net increase of $112,383 (3.8%) due to increased salaries and benefit costs. As referenced above, PSAP Grant Funds have been used for the past few years to offset NERCOM’s costs. For FY22/23, the partners voted to use $300,000 in PSAP Grant funds; for FY23/24, this was increased to $500,000 and in FY24/25 increased again to $700,000 in PSAP Grant funds (which are currently reflected in the General Fund Balance due to timing). The partners voted to use $700,000 in PSAP grant funds for the second year to support the dispatch center for FY25/26. This grant funding has helped to lower the overall cost to the City and the other 1821 partners of the dispatch center, and the remaining funds can be used when updates are needed to the Center. As a reminder, the total dispatch center budget is also offset by more than $1.8 million in reimbursements as a result of the partnerships with the City of Woodstock, City of Harvard and McHenry Township Fire Protection District, and through charges for dispatch services paid by customers of the dispatch center. These are reflected as General Fund Revenues and included in Row 24 of the General Fund – Revenues, Expenditures and Fund Balance Summary sheet. Public Works Administration (100.30) The overall Public Works Administration budget is proposed to increase by $40,332 (7.8%) due to increases to salaries and insurance costs, training expenses, and transfers for Information Technology. Public Works Streets (100.33) The FY25/26 Public Works Streets budget is proposed to increase by a total of $105,378 (2.5%) from FY24/25. Salaries/Benefits are proposed to increase by $49,227 (2.8%) due to salary and insurance increases. Additionally, Contractual Street Resurfacing (Row 22) costs have been increased by $115,230 (16.5%) due to Oakwood Drive engineering and construction costs. Materials and Supplies costs have been reduced by $38,000 (7.1%) due to decreased salt purchases. Transfers for Information Technology increase $921 (3.0%). Parks and Recreation (100.41) As of FY23/24, the Parks Maintenance division was separated from the Parks and Recreation budget, but all programming expenses related to the Recreation Division not associated with the McHenry Recreation Center are still included. Revenues from recreation programming, which are reflected in General Fund Revenues, offset many of these costs. The overall FY25/26 Parks and Recreation budget is proposed to increase by a total of $139,989 (7.6%). Salary/Benefit costs are identified to increase by a total of $129,234 (17.1%), primarily due to increases to Seasonal Salaries for increased programming; Contractual Services are budgeted to increase by $32,638 (8.8%) due to increased NISRA dues, increased fees, and trip fees; Supplies to increase by $24,500 (18.6%); and Other costs to decrease by $21,383 (3.9%) due to transferring Special Events expenses to the Tourism Fund, offset by increases to the Information Technology Transfers. A capital expense of $15,000 was added to cover a new Wibit (floating water attraction) for Petersen Park Beach. Parks Maintenance (100.45) The Parks Maintenance budget is proposed to increase by $120,185, or 7.6% from FY24/25. Salary/Benefit costs are identified to increase $46,185 (3.9%) due to contract and benefit increases. Contractual expenses will increase by $45,000 (19.8%) due to increased mowing and utility expenses. By adding to the mowing services contract, staff will have more time to focus on other repairs and maintenance at all City and neighborhood parks. Supplies expenses will increase by $29,000 (16.1%) due to increased fuel costs, as well as an additional $10,000 budgeted for increased playground equipment repairs. 1922 ANALYSIS – MCHENRY RECREATION CENTER: Please reference the attached spreadsheet titled “Recreation Center – Fund Summary” for the following discussion. The McHenry Recreation Center officially opened on February 29, 2016. With more than 800 memberships sold prior to the opening date, the McHenry Recreation Center exceeded all expectations through its third full year of operation. Unfortunately, the COVID-19 pandemic changed the outlook of the Recreation Center Fund, and revenues remain unable to meet the demands of increasing expenses. Staff is working diligently to produce a plan to make sure operating costs are covered with operating revenues; as noted below, funds to complete a Recreation Center study are included in the budget for FY25/26. At the close of FY20/21 and FY21/22, the McHenry Recreation Center was required to use $183,183 and $137,793 of the Recreation Center Fund Balance, respectively, to balance the operating expenses. This left an ending fund balance of $99,076 at the end of FY21/22. This Fund Balance was intended to be used to pay for future capital needs of the facility and/or any recreation center expansion efforts, but was instead used to cover operating needs. During FY22/23, a $100,000 General Fund transfer was made to the Recreation Center to help cover operating expenses and debt service as the Center continued to recover from COVID-19 closures and reduced memberships. A similar General Fund transfer was made in FY23/24 for $130,000 and FY24/25 for $120,000. Recreation Center revenues are directly tied to memberships, which decreased dramatically in FY20/21, stabilized in FY21/22 and have been slowly increasing. Therefore, estimated actual revenues for FY24/25 are above budgeted amounts by $35,884 (Columns F and G, Row 26). FY24/25 expenditures directly related to the operation of the facility (Salaries/Benefits, Contractual Services and Supplies) are estimated at $11,752 lower than the budgeted amounts. In developing the FY25/26 proposed revenue and expenditures budget, staff continues to estimate revenues conservatively to account for the slow increases in membership. Once again, a $120,000 Transfer from the General Fund has been included in the budget to cover the Recreation Center Debt Service payment and ensure that the fund is not running in a deficit. Included in contractual expenses for FY25/26 is $30,000 for a complete Recreation Center study to assist with membership and pricing strategies, program offerings, resource allocation, and marketing. Additionally, monthly membership fees have recently been increased to help alleviate some of the increasing operating expenses (i.e., minimum wage increases and material and supplies increases due to inflation). Revenues are proposed at $891,100, which is $36,600 (4.3%) higher than the budgeted amount in FY24/25. Total Expenditures for FY25/26 are budgeted to be $910,922, or $61,096 (7.2%) higher than FY24/25. As a reminder, this amount includes $131,469 in annual debt service for FY25/26 for bonds issued in 2015 for Recreation Center construction; debt service on this bond will be paid annually through 2035. 2023 ANALYSIS – WATER AND SEWER FUND: The Water and Sewer Fund is an enterprise fund – that is, a business-type fund utilized to account for operations and activities that are financed and operated in a manner similar to a private business enterprise. The cost of providing goods and services to the public on a continuing basis is expected to be recovered primarily through user charges, including operating costs and capital improvement costs related to the maintenance of the water and sewer utility systems. These charges fund the operations of the Water, Wastewater and Utility Divisions in the Department of Public Works. The operating functions of these three divisions are to provide a safe and reliable supply of high-quality potable water and to protect public health and the environment by treating sewage to meet stringent environmental standards prior to discharge. Expenses for the Utility Division are split between the Water and Wastewater Divisions, with approximately 63.7% of operating expenses paid from the Water Division and the remaining 36.3% paid from the Wastewater Division. Water and sewer revenues are derived directly from water and sewer sales, base charges, connection fees, and service penalties. These revenues should be sufficient to fund the operating and capital costs for the Water, Wastewater and Utility Divisions. Importantly, water and sewer revenues are driven by consumption and, as such, with a growing awareness of water conservancy (which the City supports) and wetter than average summer months, consumption has been relatively flat over the last ten years. The City commissioned a water and sewer rate study that was completed in FY13/14. The results of this analysis identified the need to adjust water and sewer rates at that time, to annually review and adjust water and sewer rates based on operational costs, and to implement water and sewer base fees to fund utility system capital improvements. As a reminder, Base Fee rate adjustments were completed during FY21/22 to directly address capital needs within the Water and Sewer Funds. As a result, water and sewer sales and service penalties will be designated for operating costs and will be analyzed with the budget process each year to ensure they meet all operating needs only. The narrative that follows provides a snapshot of the status of the Water and Sewer Fund and identifies operational and capital expenses. Please reference the attached worksheets titled “Water and Sewer Fund Summary (Fund 510, Department 31 Water, Water and Sewer Fund Summary (Fund 510, Department 32 Sewer, and Water and Sewer Fund Summary (Fund 510, Department 35 Utility)” for the following discussion. 2124 Water and Sewer Fund Revenues, Expenditures and Capital FY25/26 Water Division FY25/26 Water Division operating expenditures are proposed at $2,707,059, an increase of $163,268 (5.1%) from FY24/25. This increase is due primarily to increasing personnel costs and benefit increases, as well as increases to Contractual Services, Materials and Supplies and Transfers to Information Technology. A 3% water rate increase is recommended for FY25/26 and will be brought before the City Council for consideration in mid-2025. Water Capital Asset Maintenance and Replacement Projects It is estimated that the capital base charge of $8 will generate $555,000 in FY25/26 for capital projects. In FY25/26, this amount, along with reserves in the Water/Sewer Fund, will be used to fund a $1,380,000 watermain replacement at Richmond Rd, Mill St, and Broad St. FY25/26 Wastewater Division FY25/26 Wastewater Division operating expenditures are projected at $3,700,292, an increase of $38,336 (1.1%) from FY24/25. This increase is due to increasing salary and benefit costs, as well as repair and maintenance and material and supplies costs. A sewer rate increase is not recommended for FY25/26. Sewer Capital Asset Maintenance and Replacement Projects It is estimated that the existing $7 capital base charge will generate $522,000 in FY25/26 for capital projects. This amount, along with existing Water and Sewer Fund Balance, can be used to complete capital projects. In FY25/26, there are no capital projects identified to be completed. FY25/26 Utility Division FY25/26 Utility Division operating expenditures are projected at $902,658, a decrease of $126,430 (12.3%) from FY24/25. Personnel Costs have decreased by $133,330 due to changes in personnel and reduced benefit costs due to different insurance elections, and Contractual and Supplies expenses were increased and decreased, respectively, to better match actuals. As discussed above, the Utility Division is funded through transfers from the Water and Wastewater Division revenues. If transfers from the Water and Wastewater Divisions exceed expenses within the Utility Division, adjustments will be made in the following fiscal years, which may result in lower operating budgets for the Water and Wastewater Divisions. 2225 ANALYSIS – CAPITAL IMPROVEMENT/CAPITAL EQUIPMENT PROJECTS: As stated earlier, the Capital Improvement and Capital Equipment Funds will be phased out as projects that were budgeted in those two funds are completed. These will be replaced by the newly created Capital Asset Maintenance and Replacement Fund (funded by ComEd Utility Taxes) and the Capital Asset New Project Fund (funded by Nicor Utility Taxes). Any remaining fund balance will be transferred to the Capital Asset Maintenance and Replacement Fund to address maintenance of existing infrastructure and equipment. The following capital projects have been identified for implementation and funding through the FY25/26 budget. These include a combination of new projects as well as projects identified for “carryover” or “rebudgeting” from FY24/25 due to timing of the fiscal year end. As a reminder, as of FY21/22, the Local Street Program is funded primarily through Motor Fuel Tax revenues (as distinct from General Fund revenues). General Fund Projects using Fund Balance (in Administration Department Budget) Those projects with asterisks * are funded in whole or in part from non-municipal sources. Streets/Sidewalks/Signals Riverside Streetscape Engineering - $108,200 (Rebudget from FY24/25) Bull Valley Rd LBFP Phase I Engineering - $150,000* (Partial Rebudget from FY24/25) Public Facilities City Gateway Entrance Signs - $240,000 (Rebudget from FY24/25) General Fund Projects (in Police Department and Parks Department Budgets) Buildings Men’s Locker Room Renovation (seizure funds) - $100,000 Equipment Drying Chamber Build-out $2,500 Miscellaneous Police Equipment - $5,000 Office Furniture - $1,500 Milo Firearms Simulator - $10,000 Radar Speed Sign - $3,600 Drone - $8,000 Parks and Recreation Wibits (Petersen Park Beach Equipment) - $15,000 Capital Improvements/Equipment Fund Projects Streets/Sidewalks/Signals Venice Avenue Design - $30,000 (Rebudget from FY24/25) 2326 Capital Asset Maintenance and Replacement Fund Projects Buildings City Hall Front Entrance Improvements - $140,000 City Hall Elevator Repairs - $100,000 Parks Garage Windows - $30,000 Petersen Farmhouse Restoration - $125,000 Equipment Ballfield Rake - $25,000 Police Department Rifles - $68,000 Police Department Ballistic Shields - $20,000 Parks and Recreation Veterans Memorial Park Lighting - $125,000 Miller Riverfront Gazebo Roof - $5,000 McBark Park Fencing - $75,000 Althoff Park Playground Equipment - $75,000 Althoff Park Gazebo Roof - $10,000 West Beach Parking Lot $75,000 Motor Pool Patrol SUV Replacements – $236,000 Public Works Vehicle Replacement - $45,000 Streets/Sidewalks/Signals Annual Crack Seal Program - $100,000 Street Lights – Main Street - $240,000 Large Culvert – Boone Creek Spur @ Waters Edge - $50,000 Motor Fuel Tax/Local Motor Fuel Tax Projects Streets/Sidewalks/Signals Local Street Program - $2,200,000 (MFT) Bull Valley Rd.* - $47,000 (Partial MFT) Green St. STP* - $86,000 (Partial MFT) Venice Avenue Construction - $540,000 (Streets Expense Line Item) Oakwood Dr. Bridge Rehab Engineering* - $20,000 (Streets Expense Line Item) Oakwood Dr. Bridge Rehab Phase 3 Engineering* – $100,000 (Streets Expense Line Item) Oakwood Dr. Bridge Rehab Construction - $125,000 (Streets Expense Line Item) Venice Ave. Phase 3 Engineering - $100,000 (Streets Expense Line Item) Venice Ave. Construction - $200,000 (Streets Expense Line Item) Barreville Rd. Engineering - $50,000 (Local MFT) Total General Fund = $1,512,800 2427 Total Capital Improvements/Equipment Fund = $30,000 Total Capital Maintenance & Replacement Fund = $1,544,000 Total Motor Fuel Tax Fund = $2,226,600 Total Local Motor Fuel Tax Fund = $50,000 Total Non-Municipal Funding Sources = $322,400 Total Amount Funded = $5,685,800 Note that this includes General Fund capital projects only. Additional capital projects are included in the Information Technology Fund, Developer Donations Fund, and TIF Fund budgets. Water and Sewer Fund capital improvement and capital equipment projects were included as part of the review of this fund above. 2528 Fiscal Year 2025/2026 Annual Budget Introduction 262629 Elected Officials Wayne S. Jett, Mayor Ward 1 Victor A. Santi, Alderman Ward 2 Andy Glab, Alderman Ward 3 Frank McClatchey, Alderman Ward 4 Chris Bassi, Alderwoman Ward 5 Andy Davis, Alderman Ward 6 Michael Koch, Alderman Ward 7 Sue Miller, Alderwoman City Clerk Trisha Ramel Department Directors and Primary Administrators Suzanne Ostrovsky City Administrator John Birk, Chief of Police Ann Campanella, Director of Human Resources Bill Hobson, Director of Parks and Recreation Carolyn Lynch, Director of Finance Doug Martin, Director of Economic Development Ross Polerecky, Director of Community Development Russ Adams, Acting Director of Public Works Monte Johnson, Assistant to the City Administrator/Deputy City Clerk 272730 History and Demographic Snapshot of McHenry McHenry is located in east-central McHenry County, 55 miles northwest of the Chicago Loop and 35 miles from O’Hare International Airport. The City is centered on two major State highways – Illinois Route 31, which runs north/south from Wisconsin to South Elgin; and Illinois Route 120, which runs east/west from Woodstock to Park City. The City consists of approximately 13 square miles in land area. In 1832, Major William McHenry led an expeditionary force through northern Illinois during the Black Hawk War. Settlement of the Fox River Valley began over the next few years, and on the river's west bank, at the site of an old Indian ford, the hamlet of McHenry established in 1836. The McLean, Wheeler, McCullom, and Boone families were influential in the community's early years. A sawmill, hotel, and ferryboat were in operation by 1837, and legislation creating McHenry County was passed that year. The village served as county seat until 1844. Gristmills started along newly dammed Boone Creek, and a wagon road entered town from the south in 1851. In 1864, the famed Riverside Hotel was built and still stands today. George Gage, who served as the region's first state senator (1854–1858), owned the lands west of the millpond, and was able to secure the route of the Fox Valley Railroad (afterward a branch of the Chicago & North Western) from Chicago in 1854. Consequently, Gagetown (later West McHenry) began to eclipse the older east side of town containing the Riverside section and Green Street area, once known as Centerville. This can still be detected in the distinct commercial pattern that characterizes McHenry’s “downtown.” The village incorporated in 1872. Though there were fewer than 800 inhabitants, commerce flourished. By 1876, there were seven churches and over 80 enterprises, including flour mills, harnessmakers, a pickle factory, a brewery, seven saloons, and a newspaper. The newspaper, the McHenry Plaindealer, was in publication from 1875 to 1985. Over the next 50 years, McHenry grew slowly. During the 1920s, the town became known as a resort destination because of the Fox River, surrounding lakes, and easy accessibility from Chicago. Bands played at local pavilions, trainloads of visitors arrived to tour the famous lotus beds, and summer cottages proliferated along the Fox River. A boat-building industry flourished; marine recreation still remains important. For decades, McHenry took very seriously its title as the "Gateway to the Chain-of-Lakes,” and this is still evidenced today in the city’s motto, “Heart of the Fox River.” With the advent of the automobile, State Route 120 crossed the Fox River on a new two-lane bridge. The old wagon trail, now Highway 31, doglegged along the same route for a critical half mile before turning north toward Wisconsin. These configurations effectively relocated the city's commercial center to Route 120, and also had the unintended side effect of isolating the original business districts (West Main, Riverside Drive, and Green Street). In addition to its beauty and strong attraction to tourists, McHenry owed its growth to the stability provided by the many farmers who worked the fertile land, as well as the establishment of industry with new factories such as Admiral, Borden and The Hunter Boat Company. The Fox River helped facilitate the import and export of lumber, cigars, clay, food products and brewing, which all helped 282831 draw new residents to the area. The drainage of a large 60-acre pond that previously divided the community in half contributed to increased development and improved roadways, while the railroad allowed commuters to find this area the perfect place to settle with their families. A new wave of industry, including automotive components, electronics, and metalworking, swept into town after World War II. The Northern Illinois Medical Center, begun in 1956 as a 23-bed community hospital, evolved into a regional trauma center serving two states. Beginning in the late 1940s, subdivisions were annexed on all sides of the city. By this time, many residents were commuting to work in other localities, including Chicago. McHenry's population tripled from 2,080 in 1950 to 6,772 in 1970, and tripled again to 21,501 in 2000. The City of McHenry’s population is approximately 28,117, including 11,228 total households, an average household size of 2.4, and a median household income of $83,651. The median age is 43.1, 26.9% of which have bachelor’s degrees or higher (of those 25 years or older). The City’s three largest employment industry sectors are Healthcare (19.9%), Manufacturing (11.8%) and Retail Trade (11.6%). The median home sales price is $292,680, up 10.4% in the last 12 months. The average sale time this year is 31 days as compared to 17 days a year ago, but it is still a sellers’ market. Total residential sales in the 60050 area code in 2024 was 536. The City’s 2024 EAV was $1,035,912,332. Green Street looking south from State Route 120 (circa 1920s) 292932 Budget Document Guide This budget document is prepared with two major objectives in mind. First, to provide citizens and others interested in the City’s finances with complete and understandable information regarding the budget. Second, to develop an annual fiscal plan that will assist City leaders in making better decisions and enhance financial accountability. This document shall serve as: Policy Document As a policy document, the City Council has established specific strategies to achieve its goals through policy decisions as noted in the City Administrator’s letter of transmittal. These sections include: • A budget message, included in the transmittal letter, that articulates priorities and budget issues, particularly major issues affecting budget decisions; • Short-term initiatives that guide development of the budget in the upcoming year; and • General information describing each budget unit’s prior year accomplishments and budget year goals and objectives. Operations Guide As an operations guide, the budget document describes activities, services, and functions carried out by the organizational units. In addition, it provides an organizational chart and summary of authorized personnel for the prior year and the budget year. Financial Plan As a financial plan, the budget document describes all funds subject to appropriation in the fund structure overview section. In addition, all summaries of all major revenues and expenditures are provided in summary tables. The final budget also includes actual General Fund revenues for the FY18/19 through FY23/24 and estimated actuals for FY24/25 as well as budget amounts for FY24/25 and FY25/26. Finally, the summary section includes information as the projected changes in fund balances for all appropriated funds. Communication Device The Budget Document contains narratives, supplemented with tables and charts, which present the budget in a manner that is simple and understandable. The Proposed FY25/26 Budget is available for public review at the McHenry Municipal Center, 333 S. Green Street, McHenry, as well as on the City’s website at www.cityofmchenry.org, both before and after adoption by the City Council. Basis of Accounting and Budgeting The City of McHenry uses the modified accrual basis of accounting to budget and account for transactions of the governmental funds. Under this basis of accounting, revenues are recognized when susceptible to accrual (when they are measurable and available), and expenditures are recognized when the fund liability is incurred. For the City’s proprietary funds, the City uses the accrual basis of accounting. Under this basis, revenues are recorded when earned and expenses are recorded when the liability is incurred. The City prepares the budgets for proprietary funds consistent with this basis except that capital outlay items are included in the budget. The City prepares its budget on a basis consistent with generally accepted accounting principles. The City appropriates funds for capital projects on a fiscal year basis. 303033 Budget Process Summary Budget Process Overview The City’s annual fiscal year budget covers the period beginning May 1st and ending April 30th and contains information relative to estimated revenues and planned operational and capital expenditures for the various funds of the municipality for the identified fiscal year. Although the budget is not formally adopted by the City Council until April of each year, the budget development process officially begins each October with the preparation of the annual tax levy, which is used to fund many of the current programs and services. The budget preparation process provides the various divisions and departments of the City with the opportunity to review accomplishments, set goals and objectives, and identify the means for accomplishing these goals and objectives. Capital Improvement Plan/Community Investment Plan Previous to FY21/22, the City of McHenry utilized a five-year Capital Improvement Program as a planning tool for the identification of capital improvement and capital equipment projects. In an effort to develop a more useful short and long-term planning and budgeting tool for capital improvement and capital equipment items, the City developed a new Community Investment Plan document to replace the Capital Improvement Plan beginning in FY22/23. This Plan provides more accurate financials for capital acquisition and replacement over a 20-year period. The Plan is also reviewed and updated on an annual basis. Community Investment Plan items budgeted for FY25/26 are discussed in the department narratives below. Budget Roles and Responsibilities Every employee of the municipality plays a role in the budgeting process – be it formulation, preparation, implementation, administration, or evaluation. Ultimately, Department Directors, through the City Administrator, are accountable to the City Council and to the residents of McHenry for the performance of departments in meeting goals and objectives as they are laid out in the budget document. Department Directors, with input from their respective managers, superintendents and departmental staff, analyze historical data, review existing operational needs, and project anticipated operational needs in order develop detailed line-item budget requests that allow them to maintain or enhance the level of programs and services within their departments. These detailed requests are then submitted to the City Administrator and Finance Director. Meetings are held with Department Directors to adjust requests based on anticipated revenues, keeping in mind the overall needs of the municipality, and the fund line item requests found in the attached budget document are identified. Budget Officer Finance System In FY19/20, the City adopted the Budget Officer Finance System after using the appropriation method previously. The annual budget serves in lieu of the appropriation ordinance and must be adopted prior to the beginning of the fiscal year. The Illinois Optional Municipal Budget Act, passed by the Illinois General Assembly in 1967, allows municipalities to use the budget as the legal document to spend public monies. Prior to the budget being passed, the document must be made available for public inspection at least ten days prior to its passage. A notice must be published not less than one week after the budget is made available for the public inspection and at least one week prior to the public hearing. Budget Amendment Process 313134 During the fiscal year it may be necessary, from time to time, to amend the approved budget for spending that was not planned for during the budget process. Budget amendments are brought before Council, per the Purchasing Policy and Procedures approved in 2016 and updated in 2020. Budgetary Controls Without proper internal financial controls, the budget document will not serve its role as a guidance tool for City programs and projects. To this end, the Finance Department prepares monthly reports which are reviewed by the Finance Director, respective Department Directors, and the City Administrator. These monthly reviews provide, at a minimum, an opportunity to make operational adjustments throughout the year as necessary. Any deviations from the fund budgetary amounts are discussed in this document and, when necessary, solutions are presented. Quarterly financial reports are also transmitted to the City Council via a City Council Meeting Consent Agenda to ensure that the elected body is consistently apprised of the status of municipal revenues and expenditures. 323235 Budget Process Timeline Thursday, January 2, 2025 City Administrator, Finance Director distribute instructions for budget preparation to Department Directors Friday, January 17, 2025 Department Directors submit budget requests to City Administrator and Finance Director – revenues and expenditures only (no narratives) January 20-January 31, 2025 City Administrator and Finance Director review budget requests with respective Department Directors Friday, January 31, 2025 Department Directors submit completed budget narratives to City Administrator February 3 - February 28, 2025 Preparation of the Draft FY25/26 Budget Monday, March 10, 2025 Transmit Draft FY25/26 Budget to City Council (operating funds) Monday, March 17, 2025 City Council Regular Meeting - Discussion of Draft FY25/26 Budget (operating funds) Monday, April 7, 2025 City Council Regular Meeting – Discussion of Draft FY25/26 Budget (all funds) Wednesday, April 16, 2025 Final FY25/26 Budget (including narratives) transmitted to City Council Monday, April 21, 2025 Annual Meeting - FY25/26 Budget adopted by City Council 333336 City of McHenry Organizational Chart Mayor and City Council Office of the City Administrator Parks & Recreation Parks Maintenance Recreation Center Aquatic Center Recreation Programs Community Development Planning & Zoning Commercial Inspections Residential Inspections Code Enforcement Municipal CenterMaintenance Economic Development Finance Accounts Payable Accounts Receivable Utility Billing Administrative Adjudication Public Works Treatment Operations Water Division Sewer Division Field Operations Streets Division Utility Division Human Resources Police Operations Division Support Services Division NERCOM Dispatch Information Technology City Attorney City Clerk Assistant to City Administrator/Deputy City Clerk 343437 Personnel Summary The following table provides a summary overview of the staffing level of the municipality for the previous five (5) fiscal years and identifies the proposed staffing level for FY25/26. Staffing identified in the Recreation Center and Water and Sewer Funds is financed by revenues generated by these funds. Authorized Personnel Change from Prior FY FY25/26 Proposed FY 24/25 FY 23/24 FY 22/23 FY 21/22 FY 20/21 FY 19/20 FY 18/19 General Fund Administration (2.00)* 3.00 5.00 5.00 4.00 4.00 3.00 3.00 3.00 Community Development 2.00* 11.00 9.00 8.00 8.00 7.00 7.50 7.50 6.50 Finance Department 0.00 4.00 4.00 5.00 5.00 5.00 5.00 5.00 6.00 Human Resource Department 0.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 1.00 Economic Development Department 0.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 3.00 Police Department 1.00 58.00 57.00 57.00 54.00 53.75 54.75 54.75 52.75 NERCOM (Dispatch) 0.00 25.00 25.00 25.00 23.00 23.25 23.25 23.25 22.25 Public Works Administration 0.00 3.00 3.00 3.00 3.00 3.00 3.00 3.50 3.50 Public Works Streets 0.00 13.00 13.00 13.00 14.00 14.00 17.00 19.00 19.00 Parks and Recreation 0.00 3.50 3.50 3.50 11.30 10.75 10.75 10.50 9.25 Parks Maintenance 0.00 8.00 8.00 8.00 0.00 0.00 0.00 0.00 0.00 Total General Fund 0.00 132.50 131.50 131.50 126.30 124.75 128.25 130.50 126.25 Recreation Center Fund 0.10 1.40 1.30 1.30 1.50 2.05 2.05 2.00 2.25 Information Technology Fund 0.00 3.00 3.00 3.00 3.00 2.00 2.00 2.00 2.00 Water and Sewer Fund Water Division 0.00 5.00 4.50 4.50 4.50 5.00 5.50 5.50 5.50 Wastewater Division 0.00 8.00 8.50 8.50 8.50 9.00 8.00 8.00 8.00 Utility Division 0.00 7.00 7.00 7.00 8.00 7.00 8.00 8.00 8.00 Total Water and Sewer Fund 0.00 20.00 20.00 20.00 21.00 21.00 21.50 21.50 21.50 Total City of McHenry 1.10 156.90 155.80 155.80 151.80 149.80 153.80 156.00 152.00 Population 27,135 27,135 27,135 27,135 26,992 26,992 26,992 26,992 Employees per 1,000 Population 5.78 5.74 5.74 5.59 5.55 5.70 5.78 5.67 *Two employees shifted from Administration to Community Development 353538 Fund Structure Overview The accounting system and the budget appropriation process are structured according to the basic guidelines established by the Government Finance Officers Association (GFOA) of the United States and Canada. The format includes the basic funds and fund types which follow. The City’s governmental funds are as follows: General Fund (100s) This fund accounts for all transactions of the city that pertain to the general administration of the city and the services traditionally provided to its citizens. This includes Administration, Elected Officials, Community Development, Finance, Human Resources, Economic Development, Police, Dispatch, Public Works Administration, Streets, and Parks and Recreation. Special Revenue Funds (200s) These funds are utilized to account for revenues derived from specific sources which are usually required by law or regulation to be accounted for as separate funds. For the City of McHenry these funds include the Tourism Fund, Pageant Fund, Band Fund, Civil Defense Fund, Alarm Board Fund, Audit Fund, Annexation Fund, Motor Fuel Tax Fund, Local Motor Fuel Tax Fund, Developer Donation Fund, and Tax Increment Fund. Debt Service Fund (300) This fund accounts for the accumulation of revenues for and payment of principal and interest on general obligation long term debt. Capital Funds (400s) These funds are utilized to account for financial resources to be used for the acquisition or construction of capital facilities or other major fixed assets. For the City of McHenry these funds include the Recreation Center Fund, Capital Improvement Fund, Capital Asset Maintenance & Replacement Fund, Capital Equipment Fund, Capital Asset New Project Fund. The City’s business-type funds include the following: Enterprise Funds (500s) These funds are utilized to account for operations and activities that are financed and operated in a manner similar to a private business enterprise, and where the cost of providing goods and services to the general public on a continuing basis is expected to be recovered primarily through user charges. The City has also established Enterprise Funds when it was advantageous to segregate revenues earned and expenses incurred for an operation for purposes of capital maintenance, public policy, management control or accountability. Enterprise Funds for the City include the Water and Sewer Fund, Capital Development Fund, Utility Improvements Fund, and Marina Operations Fund. Internal Service Funds (600s) These funds are established to finance and account for services and/or commodities furnished by one department or agency to other departments or agencies of the city. The Internal Service Funds of the City are the Employee Insurance Fund, Risk Management Fund, and Information Technology Fund. 363639 The City’s other funds include the following: Fiduciary Funds (700s) These funds are used to account for resources held for the benefit of parties outside the city. The fiduciary funds of the city are the Employee Flexible Spending Fund, Developmental Escrow Fund, Retained Personnel Fund, Revolving Loan Fund, and the Police Pension Trust Fund. Accounting for the financial activities of the City and the budget process are also presented according to classifications required by the State of Illinois. Revenues are credited to individual fund types while expenditures/expenses are recorded according to functional areas within specific funds for budgetary control purposes. The following functional areas are included in the budget: General Government This function provides for the operation of the government and assures the general administration of the municipality. Community Development The overall mission of this function is to protect and promote the health, welfare, safety and quality of life of McHenry Citizens, property owners, visitors and commercial interests through the development and implementation of the City’s adopted ordinances and policies. Planning and development activities are also included within this function. Activities included in this function also include Municipal Center Building and Grounds Maintenance. Finance This function applies modern financial management practices to ensure that the City is able to deliver services effectively and efficiently on a sustained basis. Activities included in this function are reporting financial transactions, billing and collecting money, accounts payable, managing cash and investments, preparing the annual financial report, and developing the budget and financial forecasts. Human Resources The Department of Human Resources and Director of Human Resources coordinate the employee and risk related functions of the City. This includes compensation, benefits, wellness, staffing, recruitment & selection, internal policies, workers compensation and safety, performance management, labor relations, and employee relations, training, and process improvement. Economic Development The Economic Development Department is the first point of contact with potential businesses, citizens, and elected officials regarding business inquiries and potential new business opportunities. The department is responsible for effectuating orderly economic growth of the City, attracting, retaining, and serving businesses and residents in the community. Public Safety This function provides for services to reduce the amount and effects of external harm to individuals and damage to property, and in general to promote an atmosphere of personal security from external events. 373740 Public Works This function provides for safe and well-maintained infrastructure for the City. Activities included in this function are public works administration, roadway maintenance, snow and ice control, street cleaning, traffic control and engineering. Parks and Recreation This function promotes the general well-being of the City and encourages the fullest development of cultural and educational potentials of the citizens in the community. This function includes the activities of general parks, parks and maintenance, downtown maintenance and programs. Debt Service This function provides for the accumulation of resources for and the payment of principal and interest on long-term debt of the City. Capital Projects This function provides for the acquisition or construction of major capital facilities or equipment for the City. Business-Type Activities This function includes activities of the City that are financed in whole, or in part, by fees charged to external parties for goods and services. These activities are accounted for as enterprise funds and include the Water and Sewer and Marina Operations Funds. 383841 Chart of Accounts Overview Funds are comprised of various line item accounts. These are separated as “Revenues” and/or “Expenses” as appropriate and are assigned based on the following specific line item designations: Revenues 3010 Property Tax Collection – Amount collected in taxes assessed on real estate. 3015 Property Tax Collection – 2020B Pension OB Bond – Amount collected in taxes assessed on real estate for pension obligation bond payments. 3020 Property Tax Collection – Road & Bridge – Amount collected in taxes assessed on real estate by the McHenry and Nunda Township Road Districts and disbursed to the City for roads and bridges within the City. 3030 Property Tax Collection – Police Protection – Amount collected in taxes assessed on real estate that funds a portion of police protection expenses. 3040 Property Tax Collection – Retirement – Amount collected in taxes assessed on real estate that funds a portion of retirement expenses. 3050 Property Tax Collection – Liability Insurance – Amount collected in taxes assessed on real estate that funds a portion of liability insurance expenses. 3051 Property Tax Collection – Police Pension – Amount collected in taxes assessed on real estate that funds the actuarial required contribution to the police pension fund. 3110 Personal Property Replacement Taxes – Revenues collected by the State of Illinois and disbursed to the City to replace money that was lost by local governments when their powers to impose personal property taxes on corporations, partnerships, and other business entities was taken away in 1979. These funds are limited to use for retirement funding. 3120 State Sales Taxes – The state collects a 1% tax on a seller’s receipts from sales of tangible personal property for use or consumption that is distributed based on sales in the City. 3121 Home Rule Sales Taxes – The state collects a 0.5% tax on a seller’s receipts from sales of tangible personal property for use or consumption that is distributed based on sales in the City. This home rule sales tax is not charged on sales of vehicles. 3122 Cannabis Use Taxes – The state collects state revenues from the Cannabis Regulation and Tax Act and 8% of deposits go to local governments, through Local Government Distributive Fund, which are to be used to fund crime prevention programs, training and interdiction efforts. 3123 Municipal Cannabis Tax – The state collects a 3% tax that is imposed on the gross receipts from sales of adult use cannabis (medical cannabis is excluded) that is distributed based on sales in the City. 393942 3125 Telecommunications Taxes – The state collects an 8% tax that is imposed on intrastate and interstate messages and 1% is distributed to the City. 3130 State Income Taxes – Amount collected in taxes imposed on financial income generated by all entities within the State. The State distributes 6.47% of the net collections of all income tax received from individuals, trusts, and estates and 6.85% of the net collections of all income tax received from corporations to local governments based on the population in proportion to the total state population. 3140 Pull Tabs – Amount collected by the State and disbursed to the City for operator licenses and taxes on gross proceeds of pull tabs and jar games. 3141 Inter-Track Wagering – Amount collected for a 1% tax collected on the handle at Trackside McHenry Off Track Betting establishments within the City. 3142 Hotel/Motel Taxes – Amount collected for a 5% tax assessed on the rental or leasing charges for hotel or motel rooms. 3145 Electric Use Tax – Amount collected for a utility tax on the electric consumption per kilowatt-hours used. 3146 Gas Use Tax – Amount collected for a $0.03 utility tax assessed on the per therm natural gas usage. 3150 Motor Fuel Tax Allotment – Taxes collected on gasoline and diesel fuel collected by the State and disbursed to the City based on the population. 3160 Municipal Retail MFT Allotment – Amount collected for a $0.03 per gallon tax assessed on gasoline and diesel fuel. 3165 Storage Tax - Amount collected on the rental or leasing of any Self-Storage Facility accommodations in the City of McHenry at the rate of 5% of the gross rental or leasing charge. 3180 Grants – Amount collected from an external entity, such as a governmental agency, corporation or private foundation under a grant agreement. 3210 Interest Income – Interest earned on cash temporarily held in checking accounts, certificates of deposits, or other investments. 3310 Liquor Licenses – Amount paid by establishments within the City that hold valid liquor licenses. 3320 City Licenses – Amount collected from businesses within the City for licenses for massage establishments, tobacco sales, ice cream trucks, raffles and solicitation. 3350 Video Gambling Licenses – Amount paid annually by each private business and terminal operator for a video gambling license. Also includes the amount disbursed by the State of Illinois for the City’s portion of the video gaming tax. 404043 3410 Permits – Amount collected to issue a building permit for miscellaneous improvements such as roof repairs, siding repairs, fences, etc. 3420 Plumbing Inspections – Amount collected for the inspection of the connection to a water main through a permit fee. 3430 Zoning & Plat Fees – Amount collected for residents or business owners to have a hearing before the planning & zoning commission for items like conditional use permits, variances, etc. 3505 Traffic Fines – Amount collected by the McHenry County Circuit Clerk’s office and forwarded to the City for traffic fines that occurred within the City. 3510 Parking Fines – Amount collected in fines for parking violations. 3515 Police – Accident Reports – Amount collected for administrative fees to furnish accident reports. 3520 Police – Field Reports – Amount collected for administrative fees to furnish field reports. 3525 Drug Asset Forfeitures – Amount collected through the sale of assets that were forfeited. 3530 DUI Fines – Amount collected by the McHenry County Circuit Clerk’s office and forwarded to the City for DUI charges. 3532 Overweight Truck Permits – Amount collected for the issuance of overweight truck permits. 3537 Police Impound Fees – Amount collected as an administrative penalty for a motor vehicle that is used in connection with the following driving violations such as driving under the influence, driving while license is suspended or revoked, no valid driver’s license, etc. 3538 Warrant Execution – Amount received from other governmental agencies for the execution of a warrant by the City’s police department. 3539 Electronic Citation – Amount collected by the McHenry County Circuit Clerk and forwarded to the City for electronic citation. 3540 Vehicle License Fines – Amount collected for fines for vehicle stickers that are purchased after the due date of June 30th. 3545 Vehicle Fund Fines – Amount collected by the McHenry County Circuit Clerk and forwarded to the City for vehicle court supervision fines. 3610 Sales – Water/Sewer – Amount collected for water and sewer usage based on meter readings charged at a per 1,000 gallon rate. 3615 Base Charge – Capital – Amount collected through the utility bill for water and sewer base fees that will be retained and used for development and repairs to the utility capital system. 3620 Penalties – Amount collected for utility bills that are paid after the due date. 414144 3630 Hookup/Connection Fees – Amount collected for permit fees that are charged for the connection to the water and sewer system. 3631 Parks & Recreation Programs – Amount collected for programs offered through the parks and recreation department. 3632 Concessions – Amount collected at concession stands at City parks as well as at the Recreation Center. 3633 Beach Programs – Amount collected for daily admission at the McCullom Lake Beach. 3634 Swimming Pool – Amount collected for admission to the Merkel Aquatic Center. 3635 Park – Amount collected for programs offered through the parks and recreation department. 3636 General Program – Amount collected for programs offered through the parks and recreation department. 3637 Athletic Program – Amount collected for athletic programs offered through the parks and recreation department. 3640 Water Meter Sales – Amount collected for the initial or replacement water meter. 3641 Babysitting – Amount collected for childcare services offered at the Recreation Center. 3642 Room Rentals – Amount collected at the Recreation Center for community room rentals. 3643 Birthday Parties – Amount collected for birthday parties that are held and run by personnel at the Recreation Center. 3644 Sponsorship/Advertisement – Amount collected for sponsors or advertisements at the Recreation Center. 3645 Annual Membership – Amount collected for membership fees for the Recreation Center. 3646 Short-Term Membership – Amount collected for temporary membership fees for the Recreation Center. 3647 Daily Admissions – Amount collected for daily admissions fees for the Recreation Center. 3648 Punch Passes – Amount collected for 10 and 20 punch passes that act as daily admissions fees to the Recreation Center as well as attendance at specialty fitness classes held at the center. 3649 Miscellaneous Fees – Amount collected at the Recreation Center for miscellaneous fees such as workout logging devices and other items sold at the center. 3650 Fitness Classes – Session Based – Amount collected for fitness classes held at the Recreation Center. 424245 3651 Small Group Personal Training – Amount collected for Recreation Center members that sign up for a small group personal training session. 3652 Personal Training – Amount collected for Recreation Center members that sign up for personal training services. 3653 Elective Participant Premium – Amount collected for City provided health insurance for retired employees or former employees on COBRA. 3660 Debt Service Fees – Amount collected from sewer users to retire debt issued by the City. 3665 Debt Service Fees – IEPA Loan – Amount collected from sewer users to retire an Illinois Environmental Protection Agency loan used to consolidate the Central and South Wastewater Treatment Plants. 3682 Mowing/Weeds – Amount collected for the cutting or removal of weeds and plant growth in excess of 8 inches which is paid for by the owner of the property. 3683 Alarm Board – Fines collected on false alarms following six false alarms at no cost. 3684 Boat Launch – Fees collected for the use of the boat launch at Miller Riverfront Park. 3711 Meeting Fees – Planning & Zoning - Reimbursements by developers and zoning petitioners for the Planning & Zoning Commission hearing attendance collected in the Retained Personnel Fund. 3715 Annexation Income – Amount collected as determined by the annexation agreement. 3720 Operating Fees – Amount collected through permit fees on behalf of the school districts, fire district and library district from the developer to pay its fair share of public improvements that may be required because of the new development. These fees are paid out to the districts monthly. 3730 Engineering Fees – Reimbursements by developers for expenses paid for contracted engineering advice and service in the Retained Personnel Fund. 3735 Legal Fees – Reimbursements by developers for expenses paid for legal fees in the Retained Personnel Fund. 3740 Fees – Developers – Miscellaneous – Reimbursements by developers for miscellaneous expenses such as recording fees in the Retained Personnel Fund. 3745 Gravel Mining/Annexation Agreement – Amount received per the annexation agreement for the gravel pit within the City. 3750 Refunds – Developers – Amount paid by developers for a retained personnel deposit that is over and above the expenses and will be refunded to the developer. 3760 Received from Developers – Amount collected from developers as contributions to public improvements such as signs, traffic signals, intersection improvements, etc. 434346 3775 Developer Donations – Schools – Amount collected through permit fees on behalf of the school districts from the developer to pay its fair share of public improvements that may be required because of the new development. These fees are paid out to the school districts annually. 3780 Developer Donations – Parks – Amount collected through permit fees for parks from the developer to pay its fair share of public improvements that may be required because of the new development. 3785 Developer Donations – Library – Amount collected through permit fees on behalf of the library district from the developer to pay its fair share of public improvements that may be required because of the new development. These fees are paid out to the library district annually. 3790 Developer Donations – Fire – Amount collected through permit fees on behalf of the fire district from the developer to pay its fair share of public improvements that may be required because of the new development. These fees are paid out to the fire district annually. 3815 Donations – Amount donated to the City for various reasons. 3821 Donated Public Improvements - Public capital improvements that are donated to the City as presented in the terms of a development agreement. 3830 Employer Contributions – Actuarially determined amount that the City contributes to the Police Pension Fund. 3831 Employee Contributions – Amount collected from employees for benefits provided by the City. 3832 Cable Franchise Fees – Amount charged to a cable television company for the use of public rights-of-way. 3835 Garbage Bags – Amount collected for the sale of garbage stickers to residents. 3836 Gain/Loss on Sale – Amount received on the sale of an asset; if greater than the asset’s book value a gain is recorded, if less than the asset’s book value a loss is recorded. 3836 Unrealized Gain/Loss – Unrealized gain is a “paper” gain that results from holding an asset that has increased in price but has not been realized since it is still held. Unrealized loss is a “paper” loss that results from holding an asset that has decreased in price but has not been realized since it is still held. 3845 Rental Income – Rent charged for the use of municipal properties including Main Street Station, Hickory Creek Farm, farmlands, water towers, the marina, etc. 3881 Reimbursement – Communication Desk – Amount charged to agencies that the City provides dispatching services for. 3882 Reimbursement – Miscellaneous – Reimbursement for expenses for City services provided such as school resource officers, traffic control, snowplowing, etc. 444447 3885 Reimbursements – Property Insurance – Insurance payments for property damage within the City. 3886 Reimbursement – State – Reimbursement for expenses from the state through agreements for various projects. 3890 Miscellaneous Income – Revenue that does not fit into other categories such as handicap placards, lien fees, collection fees, adjudication court fees, etc. 3895 Alarm Board – Revenue for fire alarm monitoring for businesses via direct connection to NERCOM dispatch center. 3910 Bond Proceeds – Proceeds received for a bond issuance. 3920 Sale of Fixed Assets – Proceeds from the sale of municipal owned fixed assets. 3969 Transfer – TIF – Internal Fund Transfer from the TIF Fund to cover debt service fees. 3970 Charges for Services – Internal Fund Transfer from the Water/Sewer Fund to cover administrative costs for the issuance of utility bills. 3971 Transfers – Annexation Fund – Internal Fund Transfer from the Annexation Fund to cover debt service fees. 3972 Transfers – Recreation Center Fund – Internal Fund Transfer from the Recreation Center Fund to cover debt service fees. 3975 Transfers – General Fund – Internal Fund Transfer from the General Fund to cover debt service fees, capital expenses, insurance expenses, and information technology expenses. 3978 Transfers – Water/Sewer Fund – Internal Fund Transfer from the Water/Sewer Fund to cover debt service fees, utility division expenses, insurance expenses, and information technology expenses. 3986 Transfers – Motor Fuel Tax Fund – Internal Fund Transfer from the Motor Fuel Tax Fund to cover debt service fees. 3994 Transfers – SSA #4 – Internal Fund Transfer from the SSA #4 Fund to cover expenses for the Lakewood Road Utility. 3999 Transfers – Other Funds – Internal Fund Transfer from miscellaneous special revenue funds and internal service funds to cover items such as fireworks, risk management, etc. Expenses 4010 Salaries – Regular – Salary expense for employees who work 40 hours or full time. 4020 Salaries – Sworn – Salary expense for sworn police department employees who work 40 hours or full time. 454548 4030 Salaries – Regular Part-time – Salary expense for employees who work less than 40 hours, but are employed throughout the calendar year. 4050 Salaries – Regular Overtime – Salary expense paid to non-exempt non-sworn employees at one and one-half times or two times the employee’s regular hourly rate for all hours worked in excess of forty hours per week. 4055 Salaries – Regular Sworn Overtime - Salary expense paid to non-exempt sworn employees at one and one-half times the employee’s regular hourly rate for all hours worked in excess of forty hours per week. 4060 Salaries - Snow Removal Overtime - Salary expense paid to non-exempt non-sworn employees at one and one-half times or two times the employee’s regular hourly rate for all hours worked in excess of forty hours per week for snowplowing. 4080 Salaries – Career Ladder – Salary expense paid to sworn police department employees for on-call and investigator stipend pay. 4100 Salaries – Seasonal/Part-time – Salary expense for employees who work less than 40 hours per week and can be seasonal help. 4220 Salaries – Boards & Commissions – Salary expense for the Mayor, Council members, the City Clerk and the Planning and Zoning Commissioners. 4310 Health Insurance – Expenses for employee group medical insurance premiums. 4320 Dental Insurance – Expenses for employee group dental insurance premiums. 4330 Life Insurance – Expenses for employee group life insurance premiums for City-provided coverage. 4340 Vision Insurance – Expenses for employee group vision insurance premiums. 4410 Contribution - FICA – The employer contribution of Social Security and Medicare, which is currently at 7.65% of eligible wages. 4420 Contribution IMRF – The employer contribution of IMRF for all employees covered under the IMRF program. 4430 Contribution Police Pension – The amount provided through property tax collection for the Police Pension Fund. This amount is determined by an actuarial study conducted on an annual basis. 4510 Uniform Allowance – Expenses for uniforms and personal protective equipment provided for those public service employees required to wear uniforms while performing their jobs. 4910 Retirement Benefits – Retirement benefits paid to police pension beneficiaries who apply for a regular pension. 4920 Disability Benefits – Retirement benefits paid to police pension beneficiaries who have been found to have a duty disability. This type of pension must be approved by the Police Pension Board. 464649 4930 Survivor Benefits – Retirement benefits paid to the surviving spouse of a police pension beneficiary. 4940 Non-Duty Disability Benefits - Retirement benefits paid to police pension beneficiaries who have been found to have a non-duty disability. This type of pension must be approved by the Police Pension Board. 4990 Contribution Refund – Refund of police pension contributions made by a sworn employee that is no longer employed with the City. The employee must request a refund from the pension fund. 5110 Contractual Services – Expenses that are based on a contract or are paid on a monthly basis such as mowing, PACE fees, copier lease payments, bank service charges, miscellaneous building charges, etc. 5120 Building Maintenance - Expenses that are based on a contract or are paid on a monthly basis for the maintenance of the City Hall building. 5200 Contract Custodial – Expenses for monthly janitorial serves at the Recreation Center. 5215 Retention/Promotion – Expenses for promotional materials for the Recreation Center. 5220 Engineering Fees – Expenses paid for contracted engineering advice and service in the Retained Personnel Fund, which are reimbursed by the developers. 5230 Legal Services – Expenses for contracted legal advice and services. 5245 Health HSA Reimbursement – Employee health insurance reimbursement expenses paid by the city that covers a portion of the insurance carrier’s deductible. 5310 Postage & Meter – Expenses for postal related services such as stamps, bulk mailings, overnight deliveries, UPS, etc. 5320 Telephone – Expenses for telephone lines, alarm circuits, and cellular phone services. 5321 Cable/TV – Expenses for monthly cable television service at the Recreation Center. 5330 Printing & Publishing – Expenses for advertisements such as employee recruitment ads, bid notices, legal notices, and other required notices. Expenses also for the city newsletter and printing of utility bills. 5370 Repair & Maintenance – Expenses for routine maintenance on municipal vehicles. 5375 Repair & Maintenance – Equipment – Expenses for routine maintenance on municipal equipment. 5380 Repair & Maintenance – Utility System – Expenses for routine maintenance on municipal utility systems. 5410 Dues – Expenses for membership dues for various professional organizations. 474750 5420 Travel Expenses – Expenses paid for travel related costs such as mileage, tolls, per diem, lodging for conferences and training for employees on municipal business. 5430 Training – Expenses including registration fees, tuition, etc. for attendance at professional conferences and meetings for professional development. 5440 Tuition Reimbursement – Expenses for tuition for employees enrolled in the City’s program that covers successful completion of approved course work with proof of a passing grade or certification. 5450 Publications – Expenses for books, magazines, periodicals, pamphlets, maps, subscriptions, training materials, etc. used for professional development. 5510 Utilities – Monthly expenses for utilities used by municipal buildings including electric and natural gas. 5520 Street Lighting – Monthly expenses for electric usage for streetlights throughout the city. 5580 Disposal – Expenses for sludge removal at the wastewater plant. 5600 Credit Card/Bank Fees – Expenses for monthly credit card and banking fees charged to the Recreation Center. 5950 MCMRMA Fees – Expenses for McHenry County Municipal Risk Management Agency (MCMRMA) annual fees for insurance that covers unemployment, workers compensation, car insurance, liability, fire, theft, property damage, etc. 5980 Property Damage – Expenses to repair municipal property damage that will be covered with insurance. 6110 Materials & Supplies – Expenses for operating materials & supplies such as custodial cleaning supplies, garbage stickers, miscellaneous building supplies, police training supplies, ammunition, badges, etc. 6111 Supplies – Custodial – Expenses for contracted custodial services at the Recreation Center. 6120 Supplies – Childcare – Expenses for small toys, books, and art supplies for the childcare room at the Recreation Center. 6125 Social Services – Expenses to support the social services program through the Police Department. 6130 Supplies – Safety – Expenses for first aid and other miscellaneous safety items for the Recreation Center. 6141 Office Furniture/Equipment – Expenses for desks, chairs, and other small equipment at the Recreation Center. 484851 6142 Fitness Equipment – Expenses for fitness balls, bands, mats, cardio equipment, etc. at the Recreation Center. 6210 Bulk Office Supplies – Expenses for pens, pencils, paper, staples, binders, folders, calendars, ink, etc. 6250 Gasoline & Oil – Expenses for gasoline and oil used for municipal vehicles. 6270 Small Equipment & Tools – Expenses for equipment and tools used to maintain municipal equipment and personnel such as body armor, evidence equipment, weed trimmers, shop tools, etc. 6290 Safety & Personal Protection Equipment – Expenses for personal protective equipment provided to employees such as goggles, boots, chest waders, etc. 6310 Police – Canine Unit – Expenses for training, food, veterinarian bills, etc. for the sworn canine officer and the therapy canine. 6340 Police – Forfeiture Expenses – Expenses that are paid for using police forfeiture funds that must be tracked separately. 6920 Special Events – Expenses for community festivals and events such as the fireworks, community pool party, daddy/daughter date night, etc. 6940 Administrative Expenses – Expenses for notary fees, secretary of state fees for vehicles, county recording fees, holiday lighting, real estate taxes, etc. 6945 Development Expense – Sales tax incentive payments based on the terms of a development agreement. 6950 Forestry – Expenses for the tree program including trees, watering, chainsaws for trimming, tree removal, etc. 6960 Miscellaneous Expenses – Expenses for miscellaneous items not previously covered such as insurance processing fees. 6961 Miscellaneous Refunds – Expenses for refunds of retained personnel deposits that are not used for development expenses. 6965 Reimbursements – Flexible Spending – Expenses paid to employees from their flexible spending accounts for qualified medical expenses. 6970 Distributions – Schools – Permit fees that are collected on behalf of the school districts from the developer to pay its fair share of public improvements that may be required because of the new development. These fees are paid out to the school districts annually. 6980 Distributions – Library - Permit fees that are collected on behalf of the library district from the developer to pay its fair share of public improvements that may be required because of the new development. These fees are paid out to the library district annually. 494952 6990 Distributions – Fire - Permit fees that are collected on behalf of the fire district from the developer to pay its fair share of public improvements that may be required because of the new development. These fees are paid out to the fire district annually. 7091 Debt Service – Accrued Interest – Amount of interest owed on a loan/bond that has accumulated but not yet paid. 7100 Bond Principal – Amount paid for principal payment on bonds. 7110 Capital Lease Principal Payments – Amount paid for principal payments on capital leases. Capital leases are used when the item is going to be purchased when the term of the lease is over. 7200 Bond Interest – Amount paid for interest payments on bonds, which are charges paid on the principal based on an agreed upon rate. 7300 Fees – Paying Agent – Amount paid to an escrow agent for various filings for the issued bonds. 7400 Bond Issuance Costs – Amount paid to issue a bond. 7450 Bond Discount – Amount by which the market price of a bond is lower than its principal amount due at maturity. 7600 Loan Interest – Amount paid for interest payment on loans. 7610 Loan Principal – Amount paid for principal payment on loans. 8100 Land Acquisition – Amount used for the purchase of land. 8200 Buildings – Amounts paid for the acquisition and improvements to municipal buildings. 8300 Equipment – Amount paid for the acquisition of equipment costing $5,000 or more such as machines, shop equipment, playground equipment, mowers, etc. 8400 Vehicles – Amount paid for the acquisition of vehicles and the necessary equipment to use the vehicle. 8500 Utility System – Amount paid for the acquisition and improvements to the water and sewer utility systems. 8600 Streets – Amount paid for improvements to municipal streets. 8800 Park Improvements – Amount paid for improvements to municipal parks. 8900 Public Improvements – Amount paid for the acquisition and improvements to other miscellaneous municipal capital items. 9100 Amortization – Bond Discount – Annual amount to gradually reduce the discount on bonds payable over the life of the bonds until the bonds’ carrying value equals the face value at maturity. 9510 Depreciation – Amount charged as an expense for an expired portion of a fixed asset. 505053 9605 OPEB – Actuarial determined amount for Other Post-Employment Benefits, adjusted annually. 9605 OPEB Contributions – Actuarial determined amount for Other Post-Employment Benefits, adjusted annually. 9901 Transfer – General Fund – Internal Fund Transfers from the Tourism Fund to cover miscellaneous special events with hotel/motel taxes. 9902 Transfer – Recreation Center Fund – Internal Fund Transfer to cover expenses within the Recreation Center Fund. 9904 Transfer – Debt Service Fund – Internal Fund Transfers from various City funds to cover annual bond interest and principal costs for City projects. 9920 Purchase Service – Risk Management – Internal Fund Transfers from General Fund Departments as well as Water/Sewer Fund Departments and Information Technology Fund to cover the insurance premiums for McHenry County Municipal Risk Management Agency. These premiums cover unemployment, workers compensation, car insurance, liability, fire, theft, property damage, etc. 9921 Purchase Service – Billing General Fund – Internal Fund Transfers to the General Fund for the water and sewer portion of costs that are paid for by the finance department for billing administrative duties and water/sewer bill mailings. 9922 Purchase Service – Information Technology – Internal Fund Transfer to cover information technology expenses for all departments within the city. These expenses include salaries and benefits for Information Technology employees as well as computers, supplies, and software used in all City departments. 9923 Purchase Service – Audit Fund – Internal Fund Transfer to cover the external auditing annual fees for all funds within the City. 9930 Transfer – Water/Sewer Fund – Internal Fund Transfer to the Water and Sewer Divisions to cover Utility Division expenses. 9936 Transfer – Utility Improvement Fund – Internal Fund Transfer from the Water and Sewer Divisions to cover Capital expenses for the Utility System. 9942 Transfer – Capital Improvements Fund – Internal Fund Transfer from the General Fund Departments to cover capital charges for items that are over $10,000 and have a useful life of over 5 years. 9944 Transfer – Band Fund – Internal Fund Transfer from the General Fund to cover the music in the park weekly event. This covers the expenses for the municipal band as well as community bands that perform. 9945 Transfer – Civil Defense Fund – Internal Fund Transfer from the General Fund for expenses to train personnel and maintain the early warning system equipment to protect and defend the City 515154 from natural disasters or man-made environmental disasters through early warning and public notification systems. 9946 Transfer – Capital Equipment Fund - Internal Fund Transfer from the General Fund Departments to cover capital vehicle and equipment charges for items that are over $10,000 and have a useful life of over 5 years. 525255 Fiscal Year 2025/2026 Annual Budget Summary of Revenues & Expenditures – All Funds 535356 Summary of Proposed Revenues - All Funds 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 A B C D E F Revenue Budget 2025/26 All Funds Total Net Revenue Transfers Revenue General Fund $31,960,421 $631,289 $31,329,132 Special Revenue Funds Band Fund 12,000 12,000 0 Civil Defense Fund 23,000 23,000 0 Alarm Board Fund 242,500 0 242,500 Audit Fund 56,966 30,540 26,426 Annexation Fund 78,000 0 78,000 Motor Fuel Tax Fund 1,301,020 0 1,301,020 Local Motor Fuel Tax Fund 370,000 0 370,000 Developer Donations 180,000 0 180,000 Developer Donations (Parks)300,000 0 300,000 TIF Fund 980,631 0 980,631 Pageant Fund 5,000 0 5,000 Tourism Fund 288,000 0 288,000 Total Special Revenue Funds 3,837,117 65,540 3,771,577 Capital Project Funds Recreation Center Construction Fund 891,100 270,000 621,100 Special Service Area #1A 0 0 0 Special Service Area #4 15,580 0 15,580 Capital Improvements Fund 25,000 0 25,000 Capital Maintenance & Replacement Fund 4,541,290 3,451,290 1,090,000 Capital Equipment Fund 400 0 400 Capital Asset New Projects Fund 355,750 0 355,750 Total Capital Project Funds 5,829,120 3,721,290 2,107,830 Debt Service Funds Debt Service Fund 2,134,616 2,134,616 0 Total Debt Service Funds 2,134,616 2,134,616 0 Proprietary Funds Public Works - Water 3,295,000 0 3,295,000 Public Works - Wastewater 6,186,000 0 6,186,000 Public Works - Utility 902,658 902,658 0 Capital Development Fund 450,000 0 450,000 Marina Operations Fund 31,500 0 31,500 Utility Improvements Fund 340,580 265,580 75,000 Total Proprietary Funds 11,205,738 1,168,238 10,037,500 Internal Service Funds Risk Management Fund 1,154,320 1,129,320 25,000 Information Technology Fund 1,585,327 1,575,327 10,000 Health Insurance Fund 4,271,787 3,723,255 548,532 Total Internal Service Funds 7,011,434 6,427,902 583,532 Fiduciary Funds Medical Flexible Spending Fund 45,000 0 45,000 Revolving Loan Fund 5,400 0 5,400 Police Pension Fund 1,513,907 687,907 826,000 Development Escrow Fund 0 0 0 Retained Personnel Fund 75,000 0 75,000 Total Fiduciary Funds 1,639,307 687,907 951,400 Total All Funds $63,617,753 $14,836,782 $48,780,971 545457 Comparison of Budget vs. Proposed Revenues - All Funds 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 A B C D E Revenue Budget All Funds Pecent 2024/25 2025/26 Difference Change General Fund $31,174,529 $31,960,421 $785,892 2.5% Special Revenue Funds Band Fund 12,000 12,000 0 0.0% Civil Defense Fund 6,000 23,000 17,000 283.3% Alarm Board Fund 231,000 242,500 11,500 5.0% Audit Fund 53,876 56,966 3,090 5.7% Annexation Fund 128,000 78,000 (50,000)-39.1% Motor Fuel Tax Fund 1,300,686 1,301,020 334 0.0% Local Motor Fuel Tax Fund 370,000 370,000 0 0.0% Developer Donations 180,000 180,000 0 0.0% Developer Donations (Parks)859,517 300,000 (559,517)-65.1% TIF Fund 898,000 980,631 82,631 9.2% Pageant Fund 4,000 5,000 1,000 25.0% Tourism Fund 275,000 288,000 13,000 4.7% Total Special Revenue Funds 4,318,079 3,837,117 (480,962)-11.1% Capital Project Funds Recreation Center Construction Fund 854,500 891,100 36,600 4.3% Special Service Area #1A 0 0 0 0.0% Special Service Area #4 15,580 15,580 0 0.0% Capital Improvements Fund 27,000 25,000 (2,000)-7.4% Capital Maintenance & Replacement Fund 1,091,000 4,541,290 3,450,290 316.3% Capital Equipment Fund 5,400 400 (5,000)-92.6% Capital Asset New Projects Fund 285,200 355,750 70,550 0.0% Total Capital Project Funds 2,278,680 5,829,120 3,550,440 155.8% Debt Service Funds Debt Service Fund 2,356,047 2,134,616 (221,431)-9.4% Total Debt Service Funds 2,356,047 2,134,616 (221,431)-9.4% Proprietary Funds Public Works - Water 3,217,597 3,295,000 77,403 2.4% Public Works - Wastewater 6,146,320 6,186,000 39,680 0.6% Public Works - Uility 1,029,088 902,658 (126,430)-12.3% Capital Development Fund 345,000 450,000 105,000 30.4% Marina Operations Fund 41,000 31,500 (9,500)-23.2% Utility Improvements Fund 20,000 340,580 320,580 1602.9% Total Proprietary Funds 10,799,005 11,205,738 406,733 3.8% Internal Service Funds Risk Management Fund 1,154,320 1,154,320 0 0.0% Information Technology Fund 1,531,728 1,585,327 53,599 3.5% Health Insurance Fund 4,098,809 4,271,787 172,978 4.2% Total Internal Service Funds 6,784,857 7,011,434 226,577 3.3% Fiduciary Funds Employee Flexible Spending Fund 45,000 45,000 0 0.0% Revolving Loan Fund 1,000 5,400 4,400 440.0% Police Pension Fund 1,628,262 1,513,907 (114,355)-7.0% Development Escrow Fund 0 0 0 0.0% Retained Personnel Fund 75,000 75,000 0 0.0% Total Fiduciary Funds 1,749,262 1,639,307 (109,955)-6.3% Total All Funds $59,460,459 $63,617,753 $4,157,294 7.0% 555558 Summary of Revenues and Other Financing Sources - All Funds Source 2024/25 2025/26 Dollar Change % Change Property Taxes 5,869,568 5,989,937 120,369 2.05% Sales Taxes 13,231,022 13,619,956 388,934 2.94% Intergovernmental Revenue 7,614,271 8,082,876 468,605 6.15% Licenses & Fines 2,152,000 2,161,000 9,000 0.42% Services Charges 12,498,575 12,760,132 261,557 2.09% Interest Income 1,265,600 1,398,050 132,450 10.47% Bond Proceeds - - - 0.00% Transfers 11,291,835 14,836,782 3,544,947 31.39% Other Financing Sources 5,537,588 4,769,020 (768,568) -13.88% Total 59,460,459 63,617,753 4,157,294 6.99% Property Taxes 10%Sales Taxes 21% Intergovernmental Revenue 13%Licenses & Fines 3% Services Charges 20% Interest Income 2% Bond Proceeds 0% Transfers 23% Other Financing Sources 8% 2025/26 Budget Revenues by Source 565659 Summary of Proposed Expenditures - All Funds 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 A B C D E F G Expense Budget 2025/26 All Funds Total Net Budget Transfers Budget General Fund Administration $1,678,967 $150,698 $1,528,269 Elected Offices 66,171 8,794 57,377 Community Development 1,788,096 127,483 1,660,613 Finance Department 5,537,171 3,869,509 1,667,662 Human Resources 406,129 26,845 379,284 Economic Development 551,239 12,960 538,279 Police Commission 8,328 0 8,328 Police Department 13,403,201 2,812,762 10,590,439 Dispatch Department 3,293,324 150,338 3,142,986 Public Works - Administration 559,106 67,084 492,022 Public Works - Streets 4,370,320 169,529 4,200,791 Parks and Recreation 1,992,719 515,121 1,477,598 Parks Maintenance 1,705,911 0 1,705,911 Total General Fund 35,360,682 7,911,123 27,449,559 Special Revenue Funds Band Fund 15,000 0 15,000 Civil Defense Fund 23,000 0 23,000 Alarm Board Fund 142,000 17,000 125,000 Audit Fund 53,985 0 53,985 Annexation Fund 35,000 35,000 0 Motor Fuel Tax Fund 2,333,500 0 2,333,500 Local Motor Fuel Tax Fund 130,000 0 130,000 Developer Donations 180,000 0 180,000 Developer Donations (Parks)146,000 0 146,000 TIF Fund 1,305,145 2,500 1,302,645 Pageant Fund 5,000 0 5,000 Tourism Fund 237,000 100,000 137,000 Total Special Revenue Funds 4,605,630 154,500 4,451,130 Capital Project Funds Recreation Center Construction Fund 910,922 220,586 690,336 Special Service Area #1A 0 0 0 Special Service Area #4 15,580 15,580 0 Capital Improvements Fund 30,000 0 30,000 Capital Maintenance & Replacement 1,544,000 0 1,544,000 Capital Equipment 0 0 0 Capital Asset New Projects Fund 0 0 0 Total Capital Project Funds 2,500,502 236,166 2,264,336 Debt Service Funds Debt Service Fund 2,133,616 0 2,133,616 Total Debt Service Funds 2,133,616 0 2,133,616 Proprietary Funds Public Works - Water 3,387,059 1,130,374 2,256,685 Public Works - Wastewater 8,001,633 711,021 7,290,612 Public Works - Utility 902,658 0 902,658 Capital Development Fund 250,000 250,000 0 Marina Operations Fund 35,000 0 35,000 Utility Improvements Fund 250,000 0 250,000 Total Proprietary Funds 12,826,350 2,091,395 10,734,955 Internal Service Funds Risk Management Fund 1,149,503 22,503 1,127,000 Information Technology Fund 1,935,327 10,683 1,924,644 Health Insurance Fund 4,268,036 0 4,268,036 Total Internal Service Funds 7,352,866 33,186 7,319,680 Fiduciary Funds Employee Flexible Spending Fund 45,000 0 45,000 Revolving Loan Fund 0 0 0 Police Pension Fund 2,865,799 4,725 2,861,074 Development Escrow Fund 0 0 0 Retained Personnel Fund 75,000 0 75,000 Fiduciary Funds 2,985,799 4,725 2,981,074 Total All Funds $67,765,445 $10,431,095 $57,334,350 575760 Comparison of Budget vs. Proposed Expenditures - All Funds 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 A B C D E F G H I Expense Budget 2025/26 Total Total Budgeted Budgeted Expenditures Expenditures Percentage 2024/25 2025/26 Difference Change General Fund Administration $2,103,316 $1,678,967 ($424,349)-20.18% Elected Offices 65,911 66,171 260 0.39% Community Development 1,628,042 1,788,096 160,054 9.83% Finance Department 2,265,361 5,537,171 3,271,810 144.43% Human Resources Department 375,307 406,129 30,822 0.00% Economic Development Department 519,784 551,239 31,455 0.00% Police Commission 8,328 8,328 0 0.00% Police Department 12,870,236 13,403,201 532,965 4.14% Dispatch Department 3,164,925 3,293,324 128,399 4.06% Public Works - Administration 518,774 559,106 40,332 7.77% Public Works - Streets 4,264,942 4,370,320 105,378 2.47% Parks and Recreation 1,852,730 1,992,719 139,989 7.56% Parks Maintenance 1,585,726 1,705,911 120,185 7.58% Total General Fund 31,223,382 35,360,682 4,137,300 13.25% Special Revenue Funds Band Fund 15,000 15,000 0 0.00% Civil Defense Fund 6,000 23,000 17,000 283.33% Alarm Board Fund 125,000 142,000 17,000 13.60% Audit Fund 53,500 53,985 485 0.91% Annexation Fund 35,000 35,000 0 0.00% Motor Fuel Tax Fund 1,788,500 2,333,500 545,000 30.47% Local Motor Fuel Tax Fund 380,000 130,000 (250,000)-65.79% Developer Donations 180,000 180,000 0 0.00% Developer Donations (Parks)963,017 146,000 (817,017)-84.84% TIF Fund 1,792,816 1,305,145 (487,671)-27.20% Pageant Fund 4,000 5,000 1,000 25.00% Tourism Fund 211,500 237,000 25,500 12.06% Total Special Revenue Funds 5,554,333 4,605,630 (948,703)-17.08% Capital Project Funds Recreation Center Construction Fund 849,826 910,922 61,096 7.19% Special Service Area #1A 0 0 0 0.00% Special Service Area #4A 15,580 15,580 0 0.00% Capital Improvements Fund 53,000 30,000 (23,000)-43.40% Capital Maintenance & Replacement Fund 1,507,915 1,544,000 36,085 2.39% Capital Equipment Fund 35,000 0 (35,000)0.00% Total Capital Project Funds 2,461,321 2,500,502 39,181 1.59% Debt Service Funds Debt Service Fund 2,356,049 2,133,616 (222,433)-9.44% Total Debt Service Funds 2,356,049 2,133,616 (222,433)-9.44% Proprietary Funds Public Works - Water 3,223,791 3,387,059 163,268 5.06% Public Works - Wastewater 7,913,297 8,001,633 88,336 1.12% Public Works - Utility 1,029,088 902,658 (126,430)-12.29% Capital Development Fund 0 250,000 250,000 0.00% Marina Operations Fund 44,000 35,000 (9,000)-20.45% Utility Improvements Fund 0 250,000 250,000 0.00% Total Proprietary Funds 12,210,176 12,826,350 616,174 5.05% Internal Service Funds Risk Management Fund 1,149,503 1,149,503 0 0.00% Information Technology Fund 1,584,729 1,935,327 350,598 22.12% Health Insurance Fund 4,087,010 4,268,036 181,026 4.43% Total Internal Service Funds 6,821,242 7,352,866 531,624 7.79% Fiduciary Funds Employee Medical Flexible Spending Fund 45,000 45,000 0 0.00% Revolving Loan Fund 0 0 0 0.00% Police Pension Fund 2,603,039 2,865,799 262,760 10.09% Development Escrow Fund 0 0 0 0.00% Retained Personnel Fund 75,000 75,000 0 0.00% Total Fiduciary Funds 2,723,039 2,985,799 262,760 9.65% Total All Funds $63,349,542 $67,765,445 $4,415,903 6.97% All Funds 585861 Expenditures by Function - All Funds Function 2023/24 2024/25 2025/26 Dollar Change Percent Change General Government 4,770,833 4,818,278 4,673,021 (145,257) -3.01% Public Safety 15,166,473 15,759,076 16,620,227 861,151 5.46% Public Works 14,405,749 14,790,540 15,178,268 387,728 2.62% Culture and Recreation 3,388,614 3,645,315 4,030,845 385,530 10.58% Capital Projects 10,253,565 7,408,188 6,764,445 (643,743) -8.69% Comm. & Econ. Dev.2,140,613 2,285,393 2,493,892 208,499 9.12% Debt Service 2,349,942 2,356,049 2,133,616 (222,433) -9.44% Other 5,262,594 5,259,010 5,440,036 181,026 3.44% Total 57,738,383 56,321,849 57,334,350 1,012,501 1.80% General Government 8% Public Safety 29% Public Works 26% Culture and Recreation 7% Capital Projects 12% Comm. & Econ. Dev. 4% Debt Service 4% Other 10%2025/26 Budget Expenditures by Function* 59 *Note: Total does not include interfund transfers 5962 Fiscal Year 2025/2026 Annual Budget General Fund Revenues, Expenditures & Fund Balance Summary 606063 General Fund Revenues, Expenditures & Fund Balance Summary General Fund Overview The General Fund represents the core revenue and expense fund for municipal functions. General Fund Revenues are comprised of Intergovernmental sources such as Property Tax, State Sales Tax, Local Sales Tax, State Income Tax, State Replacement Tax, State Pull Tabs, Intertrack Wagering, State Communications Tax, and State Grants; Local Sources such as Franchise Fees, Licenses and Permits, Fines and Forfeitures, Charges for Services, and Interest Income; and Miscellaneous sources such as Donations and Reimbursements for Services. General Fund Expenses include personnel, contractual, supplies and other operating expenses related to the following operating budgets - Administration (100.01), Elected Officials (100.02), Community Development (100.03), Finance (100.04), Human Resources (100.05), Economic Development (100.06), Police Commission (100.21), Police (100.22), Police Dispatch (100.23), Public Works-Administration (100.30), Public Works-Streets (100.33), Parks and Recreation (100.41), and Parks Maintenance (100.45). Please reference the attached spreadsheet titled “General Fund – Revenues, Expenditures and Fund Balance Summary” for the following discussion. General Fund Revenue, Expenditure and Fund Balance Summary In summary, FY25/26 proposed General Fund Revenues and Expenditures reflect total revenues of $31,960,421 (an increase of $785,892 or 2.5% from the FY24/25 Budget amount – Row 28, Column K), and total operating expenditures of $31,265,592 (an increase of $934,280 or 3.1%, less capital, from the FY24/25 Budget amount – Row 39, Column K). This reflects a net difference (revenues over expenditures) of $694,829. Importantly, this means that the proposed General Fund Operating Budget, as presented, is BALANCED. While COVID-19 has made revenues volatile over the last few years, the City has been fortunate to see recovery in many revenue sources. While specifics will be detailed in the discussion that follows, the primary reasons for increases in revenues relate to projections for State Sales Taxes (an increase of $249,865 or 2.67% - Row 10, Column K), Local Sales Taxes (an increase of $139,069 or 3.59% - Row 11, Column K), State Income Taxes (an increase of $197,271 or 4.25% - Row 12, Column K), the addition of Municipal Cannabis Tax at $225,000(Row 15, Column K), Self Storage Taxes (an increase of $44,000 or 35.2% - Row 16, Column K), Video Gaming Revenue (an increase of $75,000 or 8.11% - Row 19, Column K), Licenses and Permit Revenue (an increase of $24,000 or 8.30% - Row 21, Column K), and Charges for Services (an increase of $55,000 or 3.97% - Row 23, Column K). These increases are partially offset by decreases to Property Taxes (a decrease of $17,262 or 0.35% - Row 9, Column K), State Replacement Taxes (a decrease of $35,000 or 26.92% - Row 13, Column K), State Telecommunications Taxes (a decrease of $10,000 or 5.26% - Row 14, Column K), Intertrack Wagering Revenue (a decrease of $4,000 or 10.53%- Row 18, Column K), Franchise Fees (a decrease of $65,000 or 19.12% - Row 20, Column K), Fines and Forfeitures Revenue (a decrease of $50,000 or 13.23% - Row 22, Column K), Reimbursement Revenue 616164 (a decrease of $39,051 or 1.05% - Row 24, Column K, and Miscellaneous Revenue (a decrease of $3,000 or 1.55% - Row 27, Column K). Regarding General Fund Expenditures, Personnel costs are proposed to increase by $947,308, or 4.94% (Row 31, Column K) due to Union Contract increases, CPI-U increases for non-bargaining unit employees, and higher insurance costs. It should be noted that a portion of the Police Dispatch Center costs and the School Resource Officers that are in the middle and high schools are offset by General Fund Revenue in the form of reimbursements (reflected in Row 24, Column J) from dispatch partner agencies, customers, and the school districts. Most notably, FY25/26 General Fund Expenditures, as proposed, reflect increased Contractual costs of $146,431 or 3.45% (Row 32, Column K), Supply costs reflect an increase of $43,550 or 3.73% (Row 33, Column K), and Transfers reflect an increase of $57,059 or 1.30% (Row 36, Column K) (after removing the $3,451,290 excess fund balance transfer discussed below). Reasons for these increases are discussed in detail beginning on page 11 of this memorandum. Finally, the FY25/26 General Fund Expenditures, as identified in this attachment, includes a transfer to the Capital Asset Maintenance & Replacement Fund in the amount of $3,451,290 which is the amount identified as Assigned for Capital through the FY23/24 Audit, as defined in the Fund Balance and Reserve Policy. As discussed in detail on pages 12 and 13 of this memo, the Fund Balance and Reserve Policy defines the process for transferring excess funds for capital needs. In FY22/23, FY23/24, and FY24/25, capital projects were budgeted in the General Fund using Fund balance, which canceled the Fund Balance transfer that would have occurred during the audit process. There are a few carryover projects from FY24/25 that are budgeted to be completed in FY25/26, but excess Fund Balance remains, which is budgeted to be transferred to be used for future capital needs. City staff has identified $1,544,000 in General Fund capital projects in the Capital Maintenance & Replacement Fund; however, only $1,000,000 in dedicated utility tax funds is available for these projects. With the transfer of the excess fund balance from the General Fund, the additional $544,000 in projects can be completed. This leaves $2,997,290 available; the City Council has directed that this balance be assigned for the unfunded portion of the upcoming Route 31 project. Carrying the General Fund Revenue and Expenditure estimates through the end of the fiscal year (April 30, 2025), it is projected that the total General Fund Balance will be $21,156,788 at the end of FY24/25 (Column I, Row 45). As defined in the Fund Balance and Reserve Policy, the estimated required 120-day General Fund Balance Reserve would be $10,403,007, so this balance is projected to be approximately $10,753,781 higher than the requirement. However, a significant amount of this fund balance is reserved for specific projects. American Rescue Plan Act (ARPA) COVID funds ($3,682,586) are reserved for the Route 31 widening capital project projected to commence in FY26/27; Public Safety Answering Point (PSAP, or 911) Grant funds ($1,531,202) are reserved specifically for dispatch expenses and are approved for spending by the NERCOM board; and Police Seizure Funds ($150,802) can only be allotted to specific Police eligible expenses. The remaining FY24/25 General Fund Balance that could be utilized for capital projects is $5,389,191 (Column I, Row 50); as stated above, $3,451,290 identified through the audit is budgeted to be transferred to the capital 626265 fund in FY25/26. Once the audit is completed for FY24/25, the amount that can be assigned for capital will also be identified and transferred in FY26/27. REVENUES: General Fund Revenues – FY24/25 Budgeted, FY24/25 Estimated, FY25/26 Proposed General Fund Revenues are derived from a number of sources – taxes, video gaming, licenses and permits, fines and forfeitures, franchise fees, charges for services, reimbursement for services, donations, interest income, and other miscellaneous sources. Some revenues can be clearly identified and estimated based on historical performance or other factors. For example, Property Tax revenue is based on the adoption of the annual property tax levy. However, the economic recession of 2007/2008 and the pandemic have served to remind local governments that economic-based revenues, such as Sales Taxes and State Income Taxes, are not guaranteed and are closely tied to the economy and disposable income. In estimating General Fund Revenues for the purpose of budget development, City Administration takes a conservative approach in order to: 1) ensure that General Fund Revenue projections are not overstated to avoid deficit spending and the need to utilize the General Fund Balance (e.g., 120 day unassigned fund balance) for operational expenses; 2) limit excessive increases in operating expenditures; and 3) maintain a financial “buffer,” in the form of the General Fund Balance, to protect the City from future unforeseen economic threats. Utilizing this philosophy, City Administration then considers past revenue performance, current economic trends, local economic conditions, and economic forecast models developed by the Illinois Municipal League (IML) for use by local governments in developing revenue projections for the purpose of budget development. FY24/25 Budgeted Revenues (Column H) In FY24/25, total budgeted General Fund Revenues were $31,174,529 (Column H, Row 28). Of this, $4,987,562 (16.0%) was from Property Taxes, $9,356,404 (30.0%) was from the City’s 1% share of the State Sales Tax, $3,874,618 (12.4%) was from the .75% Local Sales Tax, and $4,640,085 (14.9%) came from the City’s share of the State Income Tax. Revenues derived from these four (4) sources were budgeted at $22,858,669 or 73.3% of total General Fund Revenues. Of the remaining $8,315,860 (26.7%) in budgeted General Fund Revenues, $1,384,289 (4.5%) were from Charges for Services, $3,722,615 (12.0%) from Reimbursement for Services, $378,000 (1.2%) from Fines and Forfeitures, $289,000 (0.9%) from Licenses and Permits, $340,000 (1.1%) from Franchise Fees, $925,000 (3.0%) from Video Gaming, $190,000 from Telecommunications Tax (0.6%), $600,000 (1.9%) from Interest Income, and the remaining $486,956 (1.5%) came from all other sources combined. FY24/25 Estimated Revenues (Column I) The following estimated revenues are based on 10 months of actual revenues and projected through the remainder of the fiscal year (April 30, 2025). Unfortunately, in some cases this estimation is more difficult than simply annualizing by dividing the 10-month actual by 10 and multiplying by 12, due to the timing of when specific revenues are received. Further, FY24/25 Actual revenues will not be known and confirmed until approximately 2-3 months 636366 (June-July) after the close of the fiscal year due to the timing involved with the receipt of state-shared revenues and, ultimately, the completion of the annual audit in September/October 2025, 4-5 months into the new budget year. At this time, estimated General Fund Revenues are projected to be $32,195,170 (Column I, Row 28) or $1,020,641 (3.3%) higher than FY24/25 Budgeted revenues of $31,174,529. This reflects an estimated increase of $436,840, or 1.4%, from FY23/24 Actual revenues of $31,758,330. Notably, FY24/25 Estimated Revenues, when compared to FY23/24 Actual revenues and FY24/25 Budgeted revenues, highlight the following: • (Row 10) State Sales Tax revenue is projected to be $353,837 (3.8%) higher than budgeted and $270,480 (2.9%) higher than the FY23/24 Actual amount. • (Row 11) Local Sales Tax revenue is projected to be $163,879 (4.2%) higher than budgeted and $122,879 (3.1%) higher than received in FY24/25. • (Row 10 + Row 11) Combined, total Sales Tax revenue is estimated to be $517,716 (3.9%) higher than budgeted and $393,359 (2.9%) higher than the FY23/24 Actual. State Sales Tax revenues have shown significant signs of an economic recovery since the beginning of COVID-19, but they are now showing signs of leveling off. Estimates and proposed amounts for FY25/26 are extremely conservative, as City Administration watches the actual receipts closely. As a reminder, Local Sales Tax revenues do not include the sale of licensed or titled items such as cars, boats or motorcycles. • (Row 12) State Income Tax receipts are estimated to be $20,614 (0.4%) lower than budgeted and $177,077 (4.0%) higher than FY23/24. • (Row 13) State Replacement Tax receipts are estimated to be $34,381 (26.4%) lower than budgeted and $78,052 (44.9%) lower than FY23/24. This significant decrease is due to the state claw back of overallocations of replacement taxes in state fiscal years 2022 and 2023. Replacement taxes have also been increasingly difficult to predict, so as shown below, City staff has lowered budgeted amounts to ensure estimates are met. • (Row 15) Municipal Cannabis Tax receipts are estimated to be $222,287 higher than budgeted, as these taxes were not budgeted in FY24/25, and $148,946 (203.1%) higher than FY23/24. These taxes began being collected when the first Dispensary opened in December 2024. • (Row 16) Self Storage Tax receipts are estimated to be $43,590 (34.9%) higher than budgeted and $18,358 (12.2%) higher than FY23/24. 646467 • (Row 19) Video Gaming revenues are estimated to be $1,023,307, which is $98,307 (10.6%) higher than budgeted and $103,788 (11.3%) higher than FY23/24. • (Row 20) Franchise Fees revenues are estimated to be $49,523 (14.6%) lower than budgeted and $51,260 (15.0%) lower than FY23/24. This decrease relates to residents moving away from cable television to streaming services that do not have franchise fees. • (Row 21) Licenses and Permits revenues are estimated to be $46,987 (16.3%) higher than budgeted and $7,442 (2.2%) lower than FY23/24. • (Row 22) Fines and Forfeitures revenues are estimated to be $45,298 (12.0%) lower than budgeted and $270,965 (44.9%) lower than FY23/24. Traffic fines are the largest portion of fines and forfeitures, and the fines received from the McHenry County Circuit Clerk are lower than they have been in past years. • (Row 23) Charges for Services revenues are estimated to be $112,797 (8.2%) higher than budgeted and $39,705 (2.7%) higher than FY23/24. • (Row 24) Reimbursements for services revenues are estimated to be $121,737 (3.3%) lower than budgeted and $18,727 (0.5%) higher than FY23/24. The decrease in Estimated versus the FY24/25 Budget is due to Street grant program revenues that are slow to be reimbursed to the City. • (Row 25) Interest Income revenues are estimated to be $347,812 (58.0%) higher than budgeted and $20,686 (2.1%) lower than FY23/24 due to increased interest rates, as well as fund reserves held for Rt. 31 construction and other purposes. • (Row 27) Miscellaneous Income revenues are estimated at $68,487 (35.4%) lower than budgeted and $24,110 (23.9%) higher than FY23/24. In summary, FY24/25 Estimated Revenues are projected at $1,020,641 (3.3%) higher than budgeted primarily due to State and Local Sales Taxes, Municipal Cannabis Tax, Self Storage Tax, Video Gaming receipts, Licenses and Permits, Charges for Services, and Interest Income. When compared to FY23/24 Actual Revenues, total General Fund Revenues increased $436,840 (1.4%). This is primarily due increases to State and Local Tax receipts, State Income Tax, Municipal Cannabis Tax, and Video Gaming Receipts, offset by decreases to State Replacement Tax, as well as Fines and Forfeitures. FY25/26 Proposed Revenues (Column J) FY25/26 Proposed General Fund Revenues represent a net increase of $785,892 (2.5%) from FY24/25 Budgeted revenues and an increase of $202,091 (0.6%) from FY23/24 Actual revenues. Highlights of changes to General Fund Revenues proposed for FY25/26 include: 656568 • (Row 9) At the direction of City Council, the City’s 2024 property tax levy was increased by the New Construction percentage of 1.2% or $38,022. This, combined with declining Road and Bridge Taxes and property tax collection rates around 99%, resulted in an estimated Property Tax revenue decrease of $17,262 (0.4%) versus the FY24/25 Budget. As requested by Council, a discussion will be added to assign this $38,022 to a specific expense; however, it is important to reiterate that overall Property Tax revenue has actually decreased year-over-year. • (Row 10) State Sales Tax revenues are proposed at $9,606,269, which is $249,865 (2.7%) higher than FY24/25 Budget. The City has seen moderate increases to Sales Taxes during FY24/25, so FY25/26 revenue was conservatively increased. o The Governor has permanently eliminated the state-wide 1% Grocery Tax beginning in January 2026, and these losses are not supplemented from other sources for local governments. It is estimated that staff will bring forward the municipal 1% Grocery Tax ordinance in August 2025 for City Council consideration, to be implemented when the state-wide tax is removed in January 2026. Without this 1% Grocery Tax, the City’s Sales Tax revenue would decrease by over $1,000,000. This would be a significant reduction to the City’s overall budget and would require significant expense reductions. • (Row 11) Local Sales Tax revenues are proposed at $4,013,687, an increase of $139,069 (3.6%) from the amount budgeted in FY24/25. • (Row 10 + Row 11) Combined State and Local Sales Tax revenues are proposed at $13,619,956, an increase of $388,934 (2.9%) from the FY24/25 Budget amount. • (Row 12) State Income Tax revenues are proposed at $4,837,356, an increase of $197,271 (4.3%) from FY24/25. Regarding State Income Tax revenues, please note the following: o There are multiple agencies working to restore the Local Government Distributive Fund (LGDF), which includes Income Tax distribution, to its full 10 percent (which was cut to 6% in 2011, changed a few times since then and currently sits at just over 6%). Over the years, the Governor has proposed cutting an additional 10% from the LGDF. Restoring or cutting these funds could represent a large increase or decrease in revenues. Staff will continue to watch these developments closely in case expense adjustments need to be made to offset any decrease in revenue. • (Row 13) State Replacement Tax revenues are proposed at $95,000, which is $35,000 (26.9%) less than the amount budgeted in FY24/25, for the reasons noted above. 666669 • (Row 14) State Telecommunication Tax revenues are proposed at $180,000, which is $10,000 (5.3%) less than the amount budgeted in FY24/25, as revenues have continued to decline over the last few years. • (Row 15) Municipal Cannabis Tax revenues are proposed at $225,000; this is the first year these taxes have been budgeted, since the first dispensary opened in December 2024. • (Row 16) Self Storage Tax receipts are expected to be $169,000 in FY25/26, an increase of $44,000 (35.2%) from the amount budgeted in FY24/25. • (Row 19) Video Gaming revenues are proposed at $1,000,000, a $75,000 (8.1%) increase from the FY24/25 Budget amount. • (Row 20) Franchise Fees revenues are proposed to decrease by $65,000, or 19.1% from the amount budgeted in FY24/25, for the reasons noted above. • (Row 21) Licenses and Permits revenues are proposed to increase by $24,000, or 8.3% from the amount budgeted in FY24/25. • (Row 22) Fines and Forfeitures revenues are proposed to decrease by $50,000, or 13.2% from the amount budgeted in FY24/25, for the reasons noted above. • (Row 23) Charges for Services revenues are proposed to increase by $55,000, or 4.0% from the amount budgeted in FY24/25. • (Row 24) Reimbursements are proposed to decrease $39,051 or 1.1%. This category includes the Police Dispatch Center revenues derived from partner and customer agencies served through this facility, police school resource officer reimbursements, police impound fees, and other miscellaneous reimbursements. • (Row 27) Miscellaneous Income is proposed to decrease $3,000 or 1.6%, from the amount budgeted in FY24/25. In summary, FY25/26 Proposed Revenues are $785,892 (2.5%) higher than budgeted in FY24/25 and $234,749 (0.7%) lower than FY24/25 Estimated revenues. The primary reasons for the proposed increase include an increase in State Sales Tax ($249,865), an increase in Local Sales Tax ($139,069), an increase to the Income Tax ($197,271), an increase in Municipal Cannabis Tax ($225,000), an increase to the Self Storage Tax ($44,000), an increase in Video Gaming revenues ($75,000), an increase in Licenses and Permits revenues ($24,000), and an increase to Charges for Services revenues ($55,000). These increases are partially offset by decreases to Property Tax revenue ($17,262), State Replacement Tax revenue ($35,000), State Telecommunication Tax revenue ($10,000), Intertrack Wagering Revenue ($4,000), 676770 Franchise Fees revenues ($65,000), Fines and Forfeitures revenues ($50,000), Reimbursements revenues ($39,051) and Miscellaneous revenues ($3,000). EXPENDITURES: General Fund Expenditures – FY24/25 Budgeted, FY24/25 Estimated, FY25/26 Proposed General Fund Expenditures include personnel, contractual, supplies and other operating expenses related to the following operating budgets - Administration (100.01), Elected Officials (100.02), Community Development (100.03), Finance (100.04), Human Resources (100.05), Economic Development (100.06), Police Commission (100.21), Police (100.22), Police Dispatch (100.23), Public Works-Administration (100.30), Public Works-Streets (100.33), Parks and Recreation (100.41), and Parks Maintenance (100.45). In addition, the General Fund also serves as a funding source for revenue transfers to other municipal accounts found within Special Revenue Funds, Debt Service Funds, Internal Service Funds, and Fiduciary Funds. FY24/25 Budgeted Expenditures (Column H) In FY24/25, total budgeted expenditures (capital and operating) were $31,223,382. Budgeted capital expenditures were $892,070, and budgeted operating expenditures were $30,331,312. While this amount reflected an increase of $2,532,036 (9.1%) from the FY23/24 Actual expenditures (Column G, Row 39), this difference was primarily due to contractual and personnel expenses. Personnel Costs increased $1.1 million due to the addition of a FOIA Officer position, contract step and cost of living adjustments for bargaining unit employees, a 3.5% increase to non-bargaining unit employees and insurance increases. Contractual expenses increased just over $875,000 due to the purchase of body worn and in-squad cameras for the police department, contractual street resurfacing expenses, increased NISRA Dues and parks trip expenses, and increases to prices due to inflation. FY24/25 Estimated Expenditures (Column I) In general, City Administration – including department directors, superintendents, and supervisors – closely monitors expenditures throughout the year to ensure that operating budgets stay within the approved amounts. The fiscal diligence of all of these individuals most often results in expenditures being less than the amount budgeted. Even with surging prices due to recent inflationary pressures, expenditures have been well managed and continue to fall within the budget. For FY24/25, operating expenditures are estimated at $29,413,208, or $918,104 (3.0%) less than the budgeted amount of $30,331,312. Highlights of changes to FY24/25 Estimated Expenditures include: • (Row 31) Reduced Personnel costs of $578,221 (3.0%) resulting from budgeted positions unfilled during the year and lower benefit costs. 686871 • (Row 32) Contractual costs are estimated at $315,159 (7.4%) lower than the original budget, due to lower legal fees and projects that were budgeted (including the Unified Development Ordinance) but not yet completed, and therefore will need to be carried over to FY25/26. • (Row 33) Supply costs are estimated at $100,101 (8.6%) less than budget. • (Row 34) Other estimated expenditures are estimated at $75,377 (5.7%) more than the original budget due to higher than expected sales tax incentive payments. • (Row 35) Capital Outlay expenditures are $572,398 (64.2%) less than the original budget; however, funds have been carried over to complete a number of these projects in FY25/26. Note: City Administration anticipates changes to FY24/25 Estimated expenditures due to increases or decreases in revenues and expenses through the end of the fiscal year. FY25/26 Proposed Expenditures (Column J) FY25/26 proposed operating expenditures represent an increase of $934,280 (3.1%) from the FY24/25 Operating Budget amount of $30,331,312. Highlights of changes to General Fund Expenditures proposed for FY25/26 include: • (Row 31) Personnel costs are proposed to increase $947,308 (4.9%) over the amount budgeted in FY24/25. Personnel costs include salaries, overtime, health/dental/life/vision insurance, FICA, Police Pension and IMRF retirement, and uniforms. Significant year-over-year changes include: 1. Personnel costs related to salaries account for a $606,275 increase from FY24/25 to FY25/26 due to contract steps and cost of living adjustments, as well as increases to wages for part-time parks employees due to increased programming and the required adjustment to the minimum wage. Employees covered by collective bargaining units IUOE Local 150 (Public Works, Parks Maintenance employees), FOP Unit 1 (Police Patrol), and FOP Unit 2 (Dispatch) receive contract steps and cost of living adjustments (IUOE Local 150 – estimated at 3.5%, FOP Unit 1 – 3.5% and FOP Unit 2 – 4.0% with an additional 2.5% salary adjustment). Wage increases are included for Police Sergeants and other non-bargaining employees based on the previous year’s Consumer Price Index for All Urban Areas (CPI-U), which was 3.9% as of December 2024. City Administration has used the CPI-U as the marker for non-bargaining unit employee increases since FY15/16. For FY25/26, the increases were set at 4.0%, just above the CPI-U. There is no additional merit component proposed for FY25/26. 2. Personnel costs related to the Police Department were increased $54,560 due to the FOIA Officer moving from part time to full time status; this change was necessary due to the increased workload associated with body worn cameras. 696972 3. Police Pension costs are proposed at $2,355,922 (of which $1,664,558 is a transfer to the Debt Service Fund to cover the Pension Obligation Bond). This equates to a decrease of $18,033 (0.8%). Police Pension costs are determined by an actuary retained by the Police Pension Board and are based on several factors, including wages, investment rate, and age of the workforce. The City issued the Pension Obligation Bond in 2020 to set the City up to be 100% funded by the required deadline of 2040. 4. NERCOM has voted to again use PSAP funds to supplement the budget. In FY22/23, $300,000 in PSAP funds was used to cover expenses; this was increased to $500,000 in FY23/24; and increased again to $700,000 in FY24/25. For FY25/26, $700,000 in PSAP revenues are again budgeted to offset dispatch center expenses. 5. Total Benefit costs are proposed to increase $310,714 (6.7%) due to increases to insurance elections, FICA, and IMRF costs. • (Row 32) Contractual costs are anticipated to increase by $146,431 (3.5%) from the amount budgeted in FY24/25 due to the following: 1. Streets Department expenses were increased by $93,230 (5.2%) to cover Oakwood Drive Engineering and Construction on top of the annual street resurfacing budget. 2. Parks Department expenses were increased by $32,638 (8.8%) due to increased special recreation association (NISRA) dues, fees, and additional parks trip expenses. 3. Parks Maintenance Department expenses were increased by $45,000 (19.8%) due to mowing contracts, sport court maintenance, and utility costs. 4. Additional funds were added to most training budgets. • (Row 33) Supplies expenditures are proposed to be increased by 3.7% ($43,550) due to increases in prices for all supplies. • (Row 34) Other expenditures are anticipated to decrease by $260,068 (19.5%) due to a vehicle loan payoff in FY24/25. • (Row 36) Transfers are anticipated to increase by $3,508,349 (79.7%). Included in this transfer is $3,451,290 which is the excess General Fund Balance addressed earlier in this memo. The remaining increase of $57,059 is due to increased expenses in the Information Technology Fund. 707073 GENERAL FUND BALANCE: On February 1, 2016, City Council adopted a new Fund Balance and Reserve Policy that, in summary, establishes minimum levels for designated funds to ensure stability and meet future needs. This policy meets the reporting requirements of Government Accounting Standards Board (GASB) Statement 54, which requires the formal adoption of a policy for the classification of fund balances to categories other than “unassigned.” The policy was established to provide financial stability in the various municipal funds, ensure adequate cash flow for operations, and provide some assurance that the City will be able to respond to emergencies with fiscal strength. In regard to the General Fund Balance, specifically, the Fund Balance and Reserve Policy states: “General Fund – The unrestricted fund balance target should be set at 120 days (4 months) of estimated operating expenditures including those expenditures reported in other Governmental Funds that receive annual operating transfers, with the exception of transfers intended to fund capital projects. If the unreserved fund balance falls below 120 days, a plan will be developed to return to the target balance. If the unreserved fund balance reaches a low of 90 days (3 months), the plan will be implemented to return the fund balance to the target within a reasonable amount of time. One-time revenues shall not be used to fund current operations.” This level of fund balance shall provide the capacity to: • Offset unexpected downturns in elastic revenues due to fluctuations in the local, state and national economies or the loss of major sales tax contributor(s); • Offset negative fiscal changes brought about by action or legislation of another unit of government or agency; • Ensure the continued, timely repayment of debt obligations that the City may have in the event of a financial downturn; • Provide a sufficient cash flow for daily financial needs at all times; and, • Provide a funding source for unanticipated expenditures or emergencies that may occur. As identified, the parameters in this policy help to guide City Administration in the development of the annual budget by ensuring that the General Fund Budget is presented as balanced, revenues over expenditures, while maintaining this reserve. Further, the establishment of the target minimum of 120 days provides clarity in identifying the level of funding that is available – once revenues, expenditures and fund balance are identified – to address the City’s capital needs. In other words, any funds remaining after meeting the operational and reserve needs of the municipality are “Assigned for Capital.” 717174 The FY23/24 Budget included a beginning General Fund balance of $16,857,121 (Column G, Row 6), based on FY22/23 audited financial information. Based on FY23/24 actual revenues, operating expenditures, and capital expenditures (which were funded with fund balance), the ending FY23/24 audited fund balance is $18,694,498 (Column G, Row 45), with an estimated ending unassigned 120-day fund balance of $10,096,337 (Column G, Row 46). With a total of $5,146,871 reserved for the Rt. 31 widening and other uses discussed on page 4 above, the balance to be transferred to the Capital Improvement Fund is $3,451,290 (Column G, Row 50). This amount is included in Transfers in the FY25/26 Budget. The City recently implemented two Utility Taxes to address General Fund Capital needs. The ComEd Utility Tax was implemented for existing capital asset maintenance and replacement, and the Nicor Utility Tax was implemented for new capital assets. The City’s existing Capital Improvement and Capital Equipment Funds will be phased out once projects are completed within those funds; they will be replaced with the Capital Asset Maintenance and Replacement Fund (to be funded by the ComEd Utility Tax) and the Capital Asset New Project Fund (to be funded by the Nicor Utility Tax). As referenced above, the ComEd Electricity Utility taxes are not sufficient to fund all of the capital projects for FY25/26. With this shortfall, General Fund surplus will be used to fund a portion of the capital items included in the Capital Asset Maintenance and Replacement Fund. The remaining funds will be available for future projects. Detail on capital spending is provided below. 727275 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 4647484950 A B C D E F G H I J K L FY18/19 FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 FY24/25 FY24/25 FY25/26 Budget Budget Actual Actual Actual Actual Actual Actual Budget Estimated Proposed Variance $Variance % FUND BALANCE BEGINNING 7,266,959 7,263,311 7,033,893 9,983,278 13,841,628 16,857,121 18,694,498 18,694,498 21,156,788 2,462,290 13.17% REVENUES Property Taxes 4,945,232 4,950,914 4,940,219 4,844,022 4,975,754 5,000,455 4,987,562 4,966,739 4,970,300 (17,262) -0.35% State Sales Tax 7,765,544 7,810,823 8,730,755 9,227,405 9,523,709 9,439,761 9,356,404 9,710,241 9,606,269 249,865 2.67% Local Sales Tax 2,003,318 2,642,858 2,997,213 3,580,074 3,822,745 3,915,618 3,874,618 4,038,497 4,013,687 139,069 3.59% State Income Tax 2,792,465 2,655,608 3,276,353 3,439,927 4,384,429 4,442,394 4,640,085 4,619,471 4,837,356 197,271 4.25% State Replacement Tax 65,260 83,626 78,561 184,105 246,433 173,671 130,000 95,619 95,000 (35,000) -26.92% State Telecommunications Tax 123,903 260,750 244,938 209,789 198,361 190,779 190,000 183,446 180,000 (10,000) -5.26% Municipal Cannabis Tax - - - - - 73,341 - 222,287 225,000 225,000 #DIV/0! Self Storage Tax - - - - 44,057 150,232 125,000 168,590 169,000 44,000 35.20% Pull Tabs 883 930 893 674 1,312 327 500 2,240 500 - 0.00% Intertrack Wagering 46,192 40,725 16,080 31,550 39,296 33,711 38,000 34,322 34,000 (4,000) -10.53% Video Gaming 609,064 533,347 629,107 906,233 942,409 919,519 925,000 1,023,307 1,000,000 75,000 8.11% Franchise Fees 345,056 352,679 360,325 386,552 379,078 341,737 340,000 290,477 275,000 (65,000) -19.12% Licenses and Permits 440,575 274,640 346,134 397,499 313,857 343,429 289,000 335,987 313,000 24,000 8.30% Fines and Forfeitures 349,262 349,075 309,027 420,532 343,690 603,667 378,000 332,702 328,000 (50,000) -13.23% Charges for Services 1,182,875 1,191,117 927,154 1,271,413 1,387,108 1,457,381 1,384,289 1,497,086 1,439,289 55,000 3.97% Reimbursements 2,338,070 2,072,393 3,504,190 2,732,948 2,653,413 3,582,151 3,722,615 3,600,878 3,683,564 (39,051) -1.05% Interest Income 165,029 152,344 15,771 12,157 439,622 968,498 600,000 947,812 600,000 - 0.00% Donations 4,450 640 750 13,064 13,348 20,800 - 500 - - #DIV/0! Miscellaneous 313,172 325,294 25,720,555 2,158,123 2,124,980 100,859 193,456 124,969 190,456 (3,000) -1.55% TOTAL REVENUE 23,490,350 23,697,763 52,098,025 29,816,067 31,833,601 31,758,330 31,174,529 32,195,170 31,960,421 785,892 2.52% EXPENDITURES Personnel 16,671,961 17,064,138 41,566,435 16,285,444 17,037,545 18,078,640 19,184,188 18,605,967 20,131,496 947,308 4.94% Contractual 2,166,593 2,249,033 2,007,064 1,967,719 3,251,340 3,367,548 4,245,170 3,930,011 4,391,601 146,431 3.45% Supplies 863,022 914,316 645,947 977,964 1,091,952 1,085,939 1,167,170 1,067,069 1,210,720 43,550 3.73% Other 795,806 864,056 1,580,459 1,092,852 1,289,053 1,112,587 1,332,010 1,407,387 1,071,942 (260,068) -19.52% Capital Outlay 1,050,698 1,060,049 1,744,150 1,727,328 2,383,586 2,121,677 892,070 319,672 643,800 (248,270) -27.83% Transfers 1,954,260 1,775,589 1,604,585 3,906,410 3,764,632 4,154,562 4,402,774 4,402,774 7,911,123 3,508,349 79.68% TOTAL EXPENDITURES 23,502,340 23,927,181 49,148,640 25,957,717 28,818,108 29,920,953 31,223,382 29,732,880 35,360,682 4,137,300 13.25% TOTAL OPERATING EXPENDITURES 22,451,642 22,867,132 47,404,490 24,230,389 26,434,522 27,799,276 30,331,312 29,413,208 31,265,592 934,280 3.08% EXCESS/(DEFICIENCY) REVENUES OVER EXPENDITURES (11,990) (229,418) 2,949,385 3,858,350 3,015,493 1,837,377 (48,853) 2,462,290 (3,400,261) NET CHANGE IN FUND BALANCE (11,990) (229,418) 2,949,385 3,858,350 3,015,493 1,837,377 (48,853) 2,462,290 (3,400,261) FUND BALANCE ENDING 7,254,969 7,033,893 9,983,278 13,841,628 16,857,121 18,694,498 18,645,645 21,156,788 17,756,527 Less Unassigned - 120 days 7,640,353 8,045,963 7,946,826 8,788,191 8,787,381 10,096,337 10,096,337 10,403,007 10,403,007 Less Assigned for Rt 31 Widening 3,682,586 3,682,586 3,682,586 3,682,586 3,682,586 Less PSAP Grant Funds 769,696 1,240,442 1,540,442 1,531,202 1,531,202 Less Seizure Funds 223,843 171,256 150,802 50,802 Assigned for Capital (385,384) (1,012,070) 2,036,452 5,053,437 3,617,458 3,451,290 3,155,024 5,389,191 2,088,930 General Fund - Revenues, Expenditures and Fund Balance Summary 737376 Fiscal Year 2025/2026 Annual Budget General Fund Operating Budgets 747477 General Fund Operating Budgets - Overview General Fund Operating Departments include personnel, contractual, supplies and other operating expenses for the following departments - Administration (100.01), Elected Officials (100.02), Community Development (100.03), Finance (100.04), Human Resources (100.05), Economic Development (100.06), Police Commission (100.21), Police (100.22), Police Dispatch (100.23), Public Works-Administration (100.30), Public Works-Streets (100.33), Parks and Recreation (100.41), and Parks Maintenance (100.45). These expenditures have already been summarized, in total, as part of the previous discussion of General Fund Revenues and Expenditures. The following narrative will focus on identifying the major points for each operating department. Note, the Budget Variance $ (Column I) and Budget Variance % (Column J) are based on a budget-to-budget comparison from the FY25/26 Budgeted amount to the FY24/25 Budgeted amount. General Administration (100.01) Overall, the Administration operating budget is proposed to decrease by $152,579 or 11.4% in FY25/26 (Column H, Row 54). Salary/Benefit costs are identified to decrease by a net of $143,058 or 19.2%, primarily due to the transfer of the salaries and benefits for building employees to the Community Development Department. Contractual expenditures, which includes property tax expenses, insurance administrative expenses, shredding, and other miscellaneous administrative costs, are expected to remain the same in FY25/26. Corporate Legal Fees include the City Attorney, Traffic Attorney and Collective Bargaining representation and are identified to decrease $20,000 in FY25/26. Travel and Training Expenses include training and travel expenses for administrative employees as well as elected officials and are identified to increase $3,500 in FY25/26. Materials and Supplies include garbage sticker purchases which are for sale to residents and are identified to increase $5,000 in FY25/26. Other expenditures – which includes Administrative Expenses and internal transfers for Risk Management and Information Technology – is proposed to increase by $1,979. Elected Officials (100.02) The Elected Officials budget is proposed for a $260 increase, or 0.4%, due to an increase to internal transfers for Information Technology. (Column H, Row 31). Community Development (100.03) The Community Development budget is proposed increase $160,054, or 9.8% (Column H, Row 42). Salary/Benefit costs are budgeted to increase by $245,777 (23.7%). This includes $174,990 in non-union and union salary increases (which incorporates absorbing the transfer of existing Facility Manager and Building Custodian positions from Administration) and $70,787 in benefit cost increases. Contractual Services are identified to decrease by $112,250 (26.9%) due to the completion of the Comprehensive Plan. Supplies will increase $23,900 (51.4%), and the internal transfer for Information Technology will increase by $2,627 (3.0%). 757578 Finance (100.04) Salary/Benefit costs are anticipated to increase by $18,657 (3.7%). Contractual Expenses are expected to increase $24,000 (31.6%) due to higher credit card fees, utility bill printing and postage increases. Development Expenses are expected to increase by $10,000 (1.0%). One of the loans issued for vehicle purchases in 2020 has been paid in full, decreasing loan expenses by $244,568 (87.0%). Transfers for Debt Service, Civil Defense Fund, Information Technology, and Audit Funds are budgeted to increase by $13,431 (3.7%). Human Resources (100.05) Salaries/Benefit costs are budgeted to increase by $17,424 (5.8%), which is primarily due to salary and insurance increases. Contractual Services are budgeted to increase by $12,455 (27.2%) due to increases to the wellness program and training and travel expenses, and Other Expenses increase by $793 (3.0%) due to an increased Information Technology Fund transfer. Economic Development (100.06) Salary/Benefit costs are budgeted to increase by $11,272 (3.7%) due to salary and insurance increases. Contractual Services increase $19,950 (9.7%) due to increased Travel and Marketing expenses. Purchase of Services – Information Technology expenses increase by $383 (3.1%). Police (100.22) The Police budget is proposed at an overall increase of $532,965, or 4.1% from FY24/25. Salary costs (Column H, Rows 7 through 11) are identified to increase by $305,493 due to sworn salary increases, non-sworn salary increases, moving the FOIA Officer from part time to full time status, and an adjustment to overtime. Benefit costs (Column H, Rows 13-20) are identified to increase $119,732 due to higher insurance costs and insurance election changes. As discussed earlier, Police Pension costs are determined by an actuary retained by the Police Pension Board and are based on a number of factors, including wages, investment rate, and age of the workforce. Contractual Services are budgeted to increase by $36,908 (5.6%) due to increased telephone costs and training/travel. Supplies increase by $150 (0.1%) and the transfer to Information Technology increases by $21,213 (2.8%) due to higher expenses within the Information Technology Fund. Capital Expenses within the Police Department Budget include a speed sign, firearms simulator, furniture, drying chamber build-out, drone and miscellaneous police equipment. The FY25/26 capital budget also includes a project to complete a renovation to the Police Department men’s locker room; seizure funds will be used to pay for this $100,000 expense. Dispatch Center (100.23) FY25/26 represents the ninth full year of operation for the consolidated dispatch center, NERCOM, which serves 16 area agencies. The proposed FY25/26 budget has been presented and approved by the partners of the dispatch center. The total amount proposed for the dispatch center in FY25/26 is $3,293,324. Salaries/Benefit Costs show a net increase of $112,383 (3.8%) due to increased salaries and benefit costs. As referenced above, PSAP 767679 Grant Funds have been used for the past few years to offset NERCOM’s costs. For FY22/23, the partners voted to use $300,000 in PSAP Grant funds; for FY23/24, this was increased to $500,000 and in FY24/25 increased again to $700,000 in PSAP Grant funds (which are currently reflected in the General Fund Balance due to timing). The partners voted to use $700,000 in PSAP grant funds for the second year to support the dispatch center for FY25/26. This grant funding has helped to lower the overall cost to the City and the other partners of the dispatch center, and the remaining funds can be used when updates are needed to the Center. As a reminder, the total dispatch center budget is also offset by more than $1.8 million in reimbursements as a result of the partnerships with the City of Woodstock, City of Harvard and McHenry Township Fire Protection District, and through charges for dispatch services paid by customers of the dispatch center. These are reflected as General Fund Revenues and included in Row 24 of the General Fund – Revenues, Expenditures and Fund Balance Summary sheet. Public Works Administration (100.30) The overall Public Works Administration budget is proposed to increase by $40,332 (7.8%) due to increases to salaries and insurance costs, training expenses, and transfers for Information Technology. Public Works Streets (100.33) The FY25/26 Public Works Streets budget is proposed to increase by a total of $105,378 (2.5%) from FY24/25. Salaries/Benefits are proposed to increase by $49,227 (2.8%) due to salary and insurance increases. Additionally, Contractual Street Resurfacing (Row 22) costs have been increased by $115,230 (16.5%) due to Oakwood Drive engineering and construction costs. Materials and Supplies costs have been reduced by $38,000 (7.1%) due to decreased salt purchases. Transfers for Information Technology increase $921 (3.0%). Parks and Recreation (100.41) As of FY23/24, the Parks Maintenance division was separated from the Parks and Recreation budget, but all programming expenses related to the Recreation Division not associated with the McHenry Recreation Center are still included. Revenues from recreation programming, which are reflected in General Fund Revenues, offset many of these costs. The overall FY25/26 Parks and Recreation budget is proposed to increase by a total of $139,989 (7.6%). Salary/Benefit costs are identified to increase by a total of $129,234 (17.1%), primarily due to increases to Seasonal Salaries for increased programming; Contractual Services are budgeted to increase by $32,638 (8.8%) due to increased NISRA dues, increased fees, and trip fees; Supplies to increase by $24,500 (18.6%); and Other costs to decrease by $21,383 (3.9%) due to transferring Special Events expenses to the Tourism Fund, offset by increases to the Information Technology Transfers. A capital expense of $15,000 was added to cover a new Wibit (floating water attraction) for Petersen Park Beach. Parks Maintenance (100.45) The Parks Maintenance budget is proposed to increase by $120,185, or 7.6% from FY24/25. Salary/Benefit costs are identified to increase $46,185 (3.9%) due to contract and benefit increases. Contractual expenses will increase by $45,000 (19.8%) due to increased mowing 777780 and utility expenses. By adding to the mowing services contract, staff will have more time to focus on other repairs and maintenance at all City and neighborhood parks. Supplies expenses will increase by $29,000 (16.1%) due to increased fuel costs, as well as an additional $10,000 budgeted for increased playground equipment repairs. 787881 Fiscal Year 2025/2026 Annual Budget General Administration 797982 General Administration – Overview The General Administration Budget contains personnel and operational functions related to the provision of general administrative services, along with capital projects expenditures from the General Fund Balance. Beginning in FY18/19, due to operational/department restructuring, economic development and human resources functions were formed under separate departmental budgets (Economic Development and Human Resources) and, as such, all related expenditures are now found within these budgets. Next, municipal center building and grounds maintenance activities are now included under the Department of Community Development and, starting in FY19/20, all Contractual and Repair and Maintenance costs related to these activities were also transferred to the Community Development Budget. As of FY25/26, building maintenance personnel costs have also been shifted to the Community Development budget, resulting in a reduction to General Administration salaries/benefits. The Office of the City Administrator, which includes the positions of City Administrator and Assistant to the City Administrator/Deputy City Clerk, is responsible for providing management services, budgeting, legislative support, and communications to elected officials, staff, and the public in carrying out the policy and direction as set by the City Council. 808083 General Administration – Organizational Chart City Administrator Suzanne Ostrovsky Assistant to the City Administrator/ Deputy City Clerk Monte Johnson 818184 General Administration – FY24/25 Accomplishments • Delivered positive financial results for FY24/25; the fiscal year is projected to end with 3.3% higher overall revenues and 3.0% lower overall expenses than budgeted. • Developed and presented a balanced operating budget to City Council for FY25/26, including a $3.7 million local street program. • Coordinated all City liquor and gaming license application procedures. • Laserfiche, the City’s digital document program, continues to grow. Approximately 1.2 million documents have now been scanned or uploaded to the system. This makes locating historical documents very efficient and reduces the need to file Freedom of Information Act (FOIA) requests for documents. The City also continues to digitize forms whenever possible to increase efficiency and enhance customer service. • The City’s Geographic Information System (GIS) continues to grow and become a vital part of daily work activity. Infrastructure assets are housed in GIS, and public facing GIS applications allow the City to promote transparency and give the public an easy way to use City data in a geographical manner. 828285 General Administration – FY25/26 Goals & Objectives • Assist department staff as needed to support reinvestment and development in the City. Maximize investment within the City’s Downtown Tax Increment Financing (TIF) district, including funding and completion of streetscape projects. Pursue TIF districts in other areas of the City that could benefit from development assistance. • Assist Economic Development staff in the creation and implementation of a business assistance program for Main Street and Front Street businesses impacted by the upcoming construction of Route 31. • Continue to evaluate and identify alternative revenue sources, especially as the State of Illinois continues to threaten local government pass-through revenues. Examples may include implementing a replacement grocery tax and investigating use-based food & beverage or entertainment taxes. • Formulate a cohesive and collaborative path forward through a formal strategic planning effort with City Council. • Collaborate with Department Directors and Human Resources to develop departmental succession plans. • Recruit and onboard a communications professional to expand and refine the City’s public communication function. • Transition Laserfiche to a cloud environment to improve the user experience and enhance transparency and disaster recovery capabilities. • Continue to provide leadership and oversight to all departments to provide the highest quality of services in the most cost and time efficient manner. 838386 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 AB CDEFGHIJ Account Account FY21/22 FY22/23 FY23/24 FY24/25 FY24/25 FY25/26 Number Description Actual Actual Actual Budget Estimated Proposed Salaries/Benefits 4010 Salaries 318,799 350,538 467,326 527,891 435,097 443,995 (83,896) -15.89% 4050 Overtime - - 355 1,000 260 - (1,000) -100.00% 4110 Salaries - Seasonal - - - - - - - #DIV/0! 4220 Board and Commission Expense 2,644 6,313 6,584 6,500 6,218 6,500 - 0.00% 4310 Health Insurance 68,609 65,290 72,855 114,250 89,991 71,110 (43,140) -37.76% 4320 Dental Insurance 2,497 3,037 3,100 4,337 3,382 3,059 (1,278) -29.47% 4330 Life Insurance 257 266 199 288 235 186 (102) -35.42% 4340 Vision Insurance 297 338 331 448 328 330 (118) -26.34% 4410 FICA Medicare 21,810 23,891 32,811 37,742 33,820 31,733 (6,009) -15.92% 4420 IMRF Retirement 37,316 36,104 43,742 50,721 35,796 43,156 (7,565) -14.91% 4510 Uniform Allowance 413 83 600 950 786 1,000 50 5.26% TOTAL SALARIES/BENEFITS 452,642 485,860 627,903 744,127 605,913 601,069 (143,058) -19.22% Contractual Services 5110 Contractual 95,321 56,358 67,706 100,000 80,669 100,000 - 0.00% 5230 Corporate Legal Fees (All Departments) 240,682 319,123 246,206 270,000 231,597 250,000 (20,000) -7.41% 5310 Postage and Meter 862 918 1,067 1,000 474 1,000 - 0.00% 5330 Printing and Publishing 4,136 330 3,081 2,500 1,508 2,500 - 0.00% 5410 Dues 14,923 17,322 16,502 19,000 15,581 19,000 - 0.00% 5420 Travel Expense 383 6,050 4,145 5,000 6,126 6,000 1,000 20.00% 5430 Training 1,155 2,916 706 2,500 3,438 5,000 2,500 100.00% 5510 Utilities - 17 - 500 82 500 - 0.00% TOTAL CONTRACTUAL SERVICES 357,462 403,034 339,413 400,500 339,475 384,000 (16,500) -4.12% Supplies 6110 Materials and Supplies 27,599 55,824 28,258 30,000 34,092 35,000 5,000 16.67% 6210 Office Supplies 1,256 333 1,680 1,500 974 1,500 - 0.00% 6250 Gasoline and Oil 828 - - - - - - #DIV/0! TOTAL SUPPLIES 29,683 56,157 29,938 31,500 35,066 36,500 5,000 15.87% Variance ($) Variance (%) General Administration ‐ Fund Summary (Fund 100, Department 01) 848487 1 2 3 4 AB CDEFGHIJ Account Account FY21/22 FY22/23 FY23/24 FY24/25 FY24/25 FY25/26 Number Description Actual Actual Actual Budget Estimated Proposed Variance ($) Variance (%) General Administration ‐ Fund Summary (Fund 100, Department 01) 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 #REF! #REF! Other 6940 Administrative Expense 11,106 7,479 6,837 8,500 4,799 8,500 - 0.00% 9920 Purchase of Services - Risk Management 51,418 65,949 80,739 80,739 80,739 80,739 - 0.00% 9922 Purchase of Services - Information Tech 43,415 48,172 57,618 67,980 67,980 69,959 1,979 2.91% TOTAL OTHER 105,939 121,600 145,194 157,219 153,518 159,198 1,979 1.26% Capital Outlay 8100 Land 533,969 809,618 45,052 - - - - #DIV/0! 8200 Buildings 99,266 303,590 4,519 - - - - #DIV/0! 8300 Equipment 68,878 172,024 7,064 - - - - #DIV/0! 8400 Vehicle 226,925 271,684 - 100,000 78,198 - (100,000) -100.00% 8600 Streets 7,008 - - 209,970 46,419 150,000 (59,970) -28.56% 8900 Public Improvements 269,748 549,359 2,012,283 460,000 73,348 348,200 (111,800) -24.30% TOTAL CAPITAL OUTLAY 1,205,794 2,106,275 2,068,918 769,970 197,965 498,200 (271,770) -35.30% TOTAL GENERAL ADMINISTRATION 2,151,520 3,172,926 3,211,366 2,103,316 1,331,937 1,678,967 (424,349) -20.18% TOTAL GENERAL OPERATING EXPENDITURES 945,726 1,066,651 1,142,448 1,333,346 1,133,972 1,180,767 (152,579) -11.44% 858588 Fiscal Year 2025/2026 Annual Budget Elected Officials 868689 Elected Officials - Overview The Elected Officials Budget contains personnel and operational functions related to the elected positions of the municipality. These include the Office of the Mayor, the seven (7) Aldermen, and the City Clerk. The primary functions of these elected positions are described below. The Office of the Mayor provides leadership, initiative, and direction necessary to provide quality services to the citizens of McHenry. The Mayor interacts continuously with the appointed City Administrator in ensuring that the established policies and ordinances of the municipality, as set by the City Council, are carried out by the various departments, divisions and employees of the city. The City Council, comprised of seven (7) Aldermen representing geographically defined wards and elected to staggered four (4) year terms, is the legislative body for the City of McHenry. The authority of the City Council is expressed during regularly scheduled City Council Meetings (1st and 3rd Mondays of each month) through the adoption of policies, resolutions, ordinances and other related actions as deemed appropriate to promote and protect the high level of service quality and financial stability of the City. The City Clerk, elected every four (4) years, has the responsibility for taking minutes for all regular City Council meetings, and Committee of the Whole meetings. The City Clerk is also responsible for records management of the municipality. The City Clerk is assisted in these efforts by an appointed Deputy City Clerk who is a full-time employee of the City. Wayne S. JettMayor Victor A SantiAldermanWard 1 Andrew GlabAldermanWard 2 Frank McClatcheyAldermanWard 3 Chris BassiAlderwomanWard 4 Andy DavisAldermanWard 5 Michael KochAldermanWard 6 Sue MillerAlderwomanWard 7 Trisha RamelCity Clerk Monte JohnsonDeputy City Clerk 878790 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 AB CDEFGHIJ Account Account FY21/22 FY22/23 FY23/24 FY24/25 FY24/25 FY25/26 Number Description Actual Actual Actual Budget Estimated Proposed Salaries/Benefits 4010 Salaries - - - - - - #DIV/0! 4210 Salaries - Elected Officials 52,675 53,700 52,275 53,300 52,500 53,300 - 0.00% 4410 FICA Medicare 4,030 4,109 4,000 4,077 4,162 4,077 - 0.00% 4420 IMRF Retirement - - - - - - - #DIV/0! TOTAL SALARIES/BENEFITS 56,705 57,809 56,275 57,377 56,662 57,377 - 0.00% Contractual Services 5310 Postage and Meter - 5 9 - - - - #DIV/0! 5330 Printing and Publishing - - - - - - - #DIV/0! 5410 Dues - - - - - - - #DIV/0! 5420 Travel Expense - - - - - - - #DIV/0! 5430 Training - - - - - - - #DIV/0! 5450 Publications - - - - - - - #DIV/0! TOTAL CONTRACTUAL SERVICES - 5 9 - - - - #DIV/0! Supplies 6210 Office Supplies - - - - - - - #DIV/0! TOTAL SUPPLIES - - - - - - - #DIV/0! Other 6940 Administrative Expense - - - - - - - #DIV/0! 9922 Purchase of Services - Information Tech 8,606 5,933 7,173 8,534 8,534 8,794 260 3.05% TOTAL OTHER 8,606 5,933 7,173 8,534 8,534 8,794 260 3.05% TOTAL ELECTED OFFICIALS 65,311 63,747 63,457 65,911 65,196 66,171 260 0.39% Variance ($) Variance (%) Elected Officials ‐ Fund Summary (Fund 100, Department 02) 888891 Fiscal Year 2025/2026 Annual Budget Community Development 898992 Community Development - Overview The Department of Community Development is responsible for promoting the health, welfare, safety, and quality of life to McHenry citizens, property owners, visitors, and commercial interests. These services are provided by an experienced and professional staff that consists of the department Director, City Planner, Building Inspector, Plans Examiner, Plumbing Inspector/ Code Enforcement Officer, and a full time Code Enforcement Officer. The administrative staff within the department includes one Permit & Customer Service Representative and one Customer Service Specialist. The Community Development administrative staff is tasked with handling day-to-day operations at the City’s main customer service counter. This incudes processing payment of water bills, adjudication fines and permitting fees, issuance of building, special event, food truck, parking and garage sale permits, and answering phones for all City Departments, along with a range of additional operational/administrative tasks. Building grounds and maintenance for the Municipal Center also falls under Community Development; this division consists of one full time Facilities Manager and one full time custodial position. Community Development relies on partnerships with local and regional government, public agencies, community-based organizations, and the business community. The department strives to achieve the highest level of customer service and professionalism while helping the community thrive. Community Development coordinates closely with the Director of Economic Development to ensure that business expansion, relocation, and development projects remain top priorities. Staff ensures that processes are streamlined to maintain efficiency, while maintaining the appropriate attention to detail. 909093 Community Development – Organizational Chart Community Development Director Ross Polerecky Planning & Zoning City Planner Cody Sherrif Building Inspection Building Inspector Dave Watkins Plans Examiner Dan Tonyan Plumbing Inspector /Code Enforcment Officer Norman Swanson Code Enforcement Code Enforcement Officer Jake Marino Building & Grounds Maintenance Facilities Manager John Cummings Custodian Jeff Oland Permit and Cusomer Service Representative Susan Youngblood Customer ServiceSpecialist Haley Stevens 919194 Community Development – FY24/25 Accomplishments • Continued to provide exceptional service to the community • Worked with consultant HDR to finalize the City’s new and updated Comprehensive Plan and Downtown Plan; this process took nearly two years and involved significant public outreach • Issuance of over 46 permits for new single-family homes • Issuance of 390 certificates of occupancy for new multi-family units • Issued a total of 3,983 permits department wide • Consolidation of the City’s GIS maps into one functional package that can be used by all individuals in the City, but maintaining restrictions for editing and viewing of certain sensitive layers (i.e., water and sewer infrastructure) • Continued efforts to digitize historical building documents using Laserfiche • Continue with construction on 540 market rate apartments in the Fox Meadows subdivision; construction is 60% complete as of April 2025 • Updates to the Municipal Code and Zoning Ordinance • Updated permit guide handouts for residents to streamline permit process • Created new building permit page on the City’s website to make information easily accessible to residents and streamline permit process • Annexation of the southeast corner of Chapel Hill Road and Route 120 • Updated downtown parking permit ordinances and regulations 929295 Community Development – FY25/26 Goals & Objectives • Continue to support the City Council’s efforts to redevelop the Green Street corridor and the Central Wastewater Treatment Plant site • Focus on redevelopment of additional vacant lots within the downtown districts and east and west 120 • Update building permit fees • Update building codes • Continue to update antiquated ordinances • Work with selected consultant on developing the City’s Unified Development Ordinance • Continue to provide a high level of customer service to residents and businesses • Focus on continuing education of employees within the department to ensure that we provide the highest level of service possible • Work closely with Economic Development to continue efforts to draw development to the City of McHenry • Implementation of the downtown streetscape plan for the Riverside Drive Corridor • Continue code enforcement efforts • Continue to focus on residential growth, particularly single family homesites • Implement new BS&A cloud software to improve efficiency, disaster recovery and customer service 939396 Community Development – FY25/26 Performance Measures Item Goal Description FY24/25 Proposed Outcome(s) Redevelopment of vacant downtown parcels Focus efforts to redevelop downtown vacant parcels Recruit qualified developers Masterplan the downtown districts Create a unified development ordinance Research other municipalities and their UDO to educate ourselves on the processes of implementing a UDO A UDO is a document in which traditional zoning regulations are combined with other desired city regulations, such as design guidelines and water management, into a single document To be ready to start implementation of a UDO in the 25/26 fiscal year Code Enforcement efforts To use education and face to face contact with residents to increase code compliance Are code compliance violations being mitigated and closed in an efficient manner Continue a high level of compliance in the code enforcement department Digitize historical building documents To continue to digitize building documents thus eliminating paper and creating an easier more efficient way to review these documents Digitize, label and file documents to create a more efficient method of searching reviewing old documents 95% of historic documents transferred to Laserfishe Downtown Streetscape Masterplan Continue to explore options for funding of the Green Street and Main Street streetscape; Riverside Drive is moving forward with grant assistance Explore grant opportunities to help fund construction of phase II and III of the downtown streetscape plan Complete engineering for phase I of the streetscape, bid the project and prepare for construction start in late 2026 BSA software update Implement new BSA software Implementation and training for the latest version of the Community Development software To become more efficient and allow a platform for residents and contractors to interact with Community Development 949497 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 38 39 40 41 42 AB CDEFGHIJ Account Account FY21/22 FY22/23 FY23/24 FY24/25 FY24/25 FY25/26 Number Description Actual Actual Actual Budget Estimated Proposed Salaries/Benefits 4010 Salaries 524,676 609,003 661,887 706,016 662,956 881,006 174,990 24.79% 4310 Health Insurance 131,874 149,860 183,763 200,972 175,452 236,809 35,837 17.83% 4320 Dental Insurance 5,211 6,220 7,209 7,775 6,778 8,482 707 9.09% 4330 Life Insurance 411 568 437 459 429 561 102 22.22% 4340 Vision Insurance 699 797 911 871 865 1,024 153 17.57% 4410 FICA Medicare 37,997 44,279 47,676 53,245 47,711 67,397 14,152 26.58% 4420 IMRF Retirement 61,366 62,735 61,998 66,748 62,035 85,634 18,886 28.29% 4510 Uniform Allowance 1,052 1,566 1,317 2,500 1,293 3,450 950 38.00% TOTAL SALARIES/BENEFITS 763,286 875,028 965,198 1,038,586 957,519 1,284,363 245,777 23.66% Contractual Services 5110 Contractual 21,035 205,355 219,307 325,000 115,809 219,000 (106,000) -32.62% 5120 Building Maintenance 27,875 39,336 77,923 72,000 50,385 65,500 (6,500) -9.03% 5310 Postage and Meter 357 724 1,658 2,000 1,382 2,000 - 0.00% 5330 Printing and Publishing 1,019 1,916 1,103 1,500 861 1,700 200 13.33% 5370 Repair and Maintenance 646 3,713 3,463 5,000 3,339 5,000 - 0.00% 5410 Dues 664 967 192 1,600 699 3,650 2,050 128.13% 5420 Travel Expense - - - - - - - #DIV/0! 5430 Training 1,399 1,919 2,560 6,000 2,501 8,000 2,000 33.33% 5450 Publications 46 174 245 5,000 3,778 1,000 (4,000) -80.00% TOTAL CONTRACTUAL SERVICES 53,041 254,104 306,451 418,100 178,754 305,850 (112,250) -26.85% Supplies 6110 Materials and Supplies 15,479 27,079 22,791 30,000 22,007 51,400 21,400 71.33% 6210 Office Supplies 953 1,614 1,697 2,500 1,037 3,000 500 20.00% 6250 Gasoline and Oil 8,492 12,842 6,970 12,000 10,404 12,000 - 0.00% 6270 Small Equipment 537 156 30 2,000 508 4,000 2,000 100.00% TOTAL SUPPLIES 25,461 41,691 31,488 46,500 33,956 70,400 23,900 51.40% Other 9920 Purchase of Services - Risk Management 23,540 30,127 36,884 36,884 36,884 36,884 - 0.00% 9922 Purchase of Services - Information Tech 54,128 61,684 74,221 87,972 87,972 90,599 2,627 2.99% TOTAL OTHER 77,668 91,811 111,105 124,856 124,856 127,483 2,627 2.10% TOTAL COMMUNITY DEVELOPMENT 919,456 1,262,634 1,414,242 1,628,042 1,295,085 1,788,096 160,054 9.83% Community Development ‐ Fund Summary (Fund 100, Department 03) Budget Variance ($) Budget Variance 959598 Fiscal Year 2025/2026 Annual Budget Finance 969699 Finance - Overview Mission Statement It is the mission of the Finance Department to account for all municipal resources and to apply such resources in a manner that is most beneficial to the citizens of McHenry. The primary operating functions of the Finance Department are as follows: • Administration: Responsible for management of financial affairs of the city, including budgeting and financial planning, and supervision of operations within the department. • Accounting: Provides the City’s financial reporting, payroll processing, accounts payable and receivable, purchasing, fixed asset reporting, special tax collections, billing, and auditing functions. • Revenue: Collects various revenues, manages the Police Pension fund, ensures payments to retirees are processed, and invests idle City funds. 9797100 Finance – Organizational Chart Finance DirectorCarolyn Lynch Finance SpecialistAccounts PayableBonnie Rostron Finance SpecialistPayrollAccounts ReceivableAmy Nuss Finance SpecialistUtility BillingJulia Heil 9898101 Finance – FY24/25 Accomplishments • Assisted with Community Investment Plan. • Completed analysis on water/sewer rates to ensure operating expenses are covered. • Received an unqualified opinion on the audit. 9999102 Finance – FY25/26 Goals & Objectives • Improve management of the City’s investment portfolio, including implementing cash flow modeling and investment strategies. • Create a procedure manual for all duties within the finance department including screenshots of the Tyler software to help with cross training. • Update the City’s Purchasing Policy. • Begin cross training within the finance department to ensure vacancies can be covered. • Improve communication of information to residents. • Implement Cloud based Tyler Incode Software. 100100103 Finance – FY25/26 Performance Measures Performance Item Performance Goal Performance Measure FY24/25 Proposed Outcome(s) Quarterly Reports Develop and update quarterly reports and transmit to the appropriate board. Was the quarterly report updated and transmitted to the board quarterly? September 2025, December 2025, March 2026, and June 2026 Annual Budget Develop and present a balanced operating budget for City Council consideration. Was a balanced operating budget presented for City Council’s consideration? April 2026 Annual Audit Continually have an unqualified audit opinion Whether or not an unqualified opinion has been issued An unqualified opinion issued on the 25/26 audit presented to council in September or October of 2026 Customer and Vendor Concerns/Complaints Return all calls within one business day % of Time that Finance Department Responds to Calls within one business day 100% of the time respond to calls within one business day. 101101104 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 AB CDEFGHIJ Account Account FY21/22 FY22/23 FY23/24 FY24/25 FY24/25 FY25/26 Number Description Actual Actual Actual Budget Estimated Proposed Salaries/Benefits 4010 Salaries 364,298 390,182 372,442 361,648 362,950 376,035 14,387 3.98% 4310 Health Insurance 60,331 68,412 70,087 72,055 71,457 73,308 1,253 1.74% 4320 Dental Insurance 2,737 2,801 2,491 2,478 2,343 2,418 (60) -2.42% 4330 Life Insurance 286 363 218 204 202 204 - 0.00% 4340 Vision Insurance 493 498 395 305 297 412 107 35.08% 4410 FICA Medicare 26,530 28,515 27,034 27,666 25,592 28,767 1,101 3.98% 4420 IMRF Retirement 42,673 40,201 34,899 34,682 33,199 36,551 1,869 5.39% TOTAL SALARIES/BENEFITS 497,348 530,972 507,566 499,038 496,040 517,695 18,657 3.74% Contractual Services 5110 Contractual 31,137 36,607 28,050 27,000 45,527 45,000 18,000 66.67% 5310 Postage and Meter 28,326 31,793 38,372 35,000 38,430 39,000 4,000 11.43% 5330 Printing and Publishing 11,629 11,578 13,466 13,000 14,579 15,000 2,000 15.38% 5410 Dues 525 525 625 525 525 525 - 0.00% 5420 Travel Expense - - - - - - - #DIV/0! 5430 Training - - - 500 100 500 - 0.00% TOTAL CONTRACTUAL SERVICES 71,617 80,503 80,513 76,025 99,161 100,025 24,000 31.57% Supplies 6110 Materials and Supplies 440 410 244 500 213 500 - 0.00% 6210 Office Supplies 4,528 4,304 1,155 4,000 1,043 3,000 (1,000) -25.00% TOTAL SUPPLIES 4,968 4,714 1,399 4,500 1,256 3,500 (1,000) -22.22% Variance ($) Variance (%) Finance ‐ Fund Summary (Fund 100, Department 04) 102102105 1 2 3 4 AB CDEFGHIJ Account Account FY21/22 FY22/23 FY23/24 FY24/25 FY24/25 FY25/26 Number Description Actual Actual Actual Budget Estimated Proposed Variance ($) Variance (%) Finance ‐ Fund Summary (Fund 100, Department 04) 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 Other 6945 Development Expense 763,220 982,788 780,171 1,000,000 1,079,075 1,010,000 10,000 1.00% 7600 Loan Interest 29,053 25,794 17,798 9,550 9,550 1,044 (8,506) -89.07% 7610 Loan Payment 251,957 233,555 263,213 271,460 271,460 35,398 (236,062) -86.96% 9904 Transfer to Debt Service 182,975 185,938 188,769 187,934 187,934 191,169 3,235 1.72% 9940 Transfer to Capital Asset Maint & Repl Fund - - - - - 3,451,290 3,451,290 #DIV/0! 9942 Transfer to Capital Improvement Fund 696,503 - - - - - - #DIV/0! 9944 Transfer to Band Fund - 12,000 12,000 12,000 12,000 12,000 - 0.00% 9945 Transfer to Civil Defense Fund 6,000 4,000 4,000 6,000 6,000 6,000 - 0.00% 9947 Transfer Other Funds (84,555) - - - - - - #DIV/0! 9920 Purchase of Service - Risk Management 16,226 20,758 25,414 25,414 25,414 25,414 - 0.00% 9922 Purchase of Service - IT 96,269 116,664 138,494 162,440 162,440 169,636 7,196 4.43% 9923 Purchase of Service - Audit 2,000 14,000 7,000 11,000 11,000 14,000 3,000 27.27% TOTAL OTHER 1,959,648 1,595,497 1,436,859 1,685,798 1,764,873 4,915,951 3,230,153 191.61% TOTAL FINANCE 2,533,581 2,211,686 2,026,337 2,265,361 2,361,330 5,537,171 3,271,810 144.43% 103103106 Fiscal Year 2025/2026 Annual Budget Human Resources 104104107 Human Resources – Overview The Department of Human Resources coordinates the employee and risk related functions of the City. This includes compensation, benefits, wellness, staffing, recruitment & selection, internal policies, worker’s compensation and safety, performance management, labor relations with the City’s three unions, employee relations, training, and process improvement. The department consists of the Director of Human Resources and the Human Resources Coordinator. The City of McHenry has an average of 275 full and permanent part time employees, including the NERCOM Dispatch Center and Recreation Center. During the summer season, this increases to around 330 employees with seasonal park, pool and public works staff. During the 25/26 budget year we, along with our consultants, continue to watch insurance costs including health, workers compensation, and liability. The insurance industry continues to be volatile with weather-based claims throughout the country, the rising cost of pharmaceuticals, and the emotional health of our employees and their families. We continue to be as proactive as possible to mitigate claims, train to increase safety, and control increasing insurance rates. 105105108 Human Resources – Organizational Chart Director of Human Resources Ann Campanella Human Resources Coordinator Nicole Meyer 106106109 Human Resources – FY24/25 Accomplishments • Wellness. We met the goal to revise the wellness program to increase employee accountability for their health year round. Continued success with our wellness program including biometric screenings earning the City nearly $20,000 in rebate money from IPBC. • We continue to utilize and enhance our electronic benefit system, Plan Source, through the IPBC. We were still on the forefront of finding errors and working with the implementation team to find solutions in integration with our vendors, including our retirees, and inputting current insurance rates into the system. • NeoGov Perform Software Customization. Transitioning from implementation to working on departmental customization for this new online performance evaluation program. • NeoGov Learn. Employees are using this system to complete mandatory training. 25/26 will focus on expanding the offerings in this system. • Harassment Prevention Training. Training is required yearly for all employees and is now completed through our NeoGov Learn online system. • Employee Handbook. Yearly updates of new laws. • Family & Medical Leave. Coordinator Meyer has kept the City compliant managing 31 FMLA full time and intermittent cases in 2024. • Paid Time Off for All Workers act. This new Illinois mandate took effect 1/1/24, Seasonal and part time employees now keep their time in InTime to help coordinate the appropriate legally required time off. • Employee Appreciation Planned a successful employee appreciation picnic at Miller Point, which included a cook out, music, bags and camaraderie. Added an employee recognition for Public Service Recognition Week in May, and continued to host a successful annual holiday luncheon for employees at the Recreation Center. 107107110 Human Resources – FY25/26 Goals & Objectives • Implement NeoGov Onboard. Human Resources is implementing an electronic onboarding system which includes a secure site for documents, forms, and policies. This allows prospective employees to complete pre-hire paperwork online and creates efficiencies for staff. This is especially beneficial for seasonal parks staff, who can now complete the paperwork at home where help is available to complete tax withholding information, direct deposit, and other required paperwork. • Processes & Procedures. Continue to document all HR & Risk processes and procedures. • Wellness. Roll out updated wellness program and increase participation. • Risk Management. Work with our insurer, Safety National and MCMRMA to create more safety training options. • Compliance. Each year employers are required to provide numerous compliance notices to all employees, especially regarding health care. This year we will create a system to track and disseminate these notices. 108108111 Human Resources – FY25/26 Performance Measures Item Goal Description FY25/26 Proposed Outcome(s) Software Implementation Implement Onboard prior to seasonal hiring Implement program and train staff on use Fully functional system to create efficiency and integration with NeoGov Insight Training & Development Add customization to Learn program Customize training and create more courses Provide more training & development opportunities Process & Procedures Continue documentation of procedures & processes Analyze & document procedures & processes Process & Procedure manual for HR/Risk Performance Customize rating forms for departments that need customization Enhance some forms with customization More meaningful evaluations forms. Compliance paperwork for various healthcare laws Become compliant with all associated paperwork. Over 20 healthcare compliance notices that must be given to new and current employees Ensure all paperwork is available electronically or manually for all employees 109109112 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 AB CDEFGHIJ Account Account FY21/22 FY22/23 FY23/24 FY24/25 FY24/25 FY25/26 Number Description Actual Actual Actual Budget Estimated Proposed Salaries/Benefits 4010 Salaries 171,924 196,355 221,141 229,385 228,914 243,370 13,985 6.10% 4310 Health Insurance 19,117 20,392 25,882 32,758 32,662 33,499 741 2.26% 4320 Dental Insurance 887 895 1,003 1,209 1,148 1,182 (27) -2.23% 4330 Life Insurance 114 145 101 102 101 102 - 0.00% 4340 Vision Insurance 169 168 178 195 192 192 (3) -1.54% 4410 FICA Medicare 12,580 14,441 16,294 17,548 16,886 18,618 1,070 6.10% 4420 IMRF Retirement 20,098 20,235 20,716 21,998 21,621 23,656 1,658 7.54% TOTAL SALARIES/BENEFITS 224,889 252,631 285,315 303,195 301,524 320,619 17,424 5.75% Contractual Services 5110 Contractual 35,624 22,013 47,262 35,000 23,517 39,000 4,000 11.43% 5410 Dues 449 1,017 884 1,310 884 1,765 455 34.73% 5420 Travel Expense 297 - - 2,500 - 5,000 2,500 100.00% 5430 Training 995 229 383 7,000 596 12,500 5,500 78.57% TOTAL CONTRACTUAL SERVICES 37,365 23,259 48,529 45,810 24,997 58,265 12,455 27.19% Supplies 6210 Office Supplies 695 343 213 250 218 400 150 60.00% TOTAL SUPPLIES 695 343 213 250 218 400 150 60.00% Other #REF! #REF! 9922 Purchase of Services - Information Tech 10,884 18,111 21,898 26,052 26,052 26,845 793 3.04% TOTAL OTHER 10,884 18,111 21,898 26,052 26,052 26,845 793 3.04% TOTAL HUMAN RESOURCES 273,833 294,344 355,955 375,307 352,791 406,129 30,822 8.21% Human Resources ‐ Fund Summary (Fund 100, Department 05) Variance ($) Variance (%) 110110113 Fiscal Year 2025/2026 Annual Budget Economic Development 111111114 Economic Development – Overview The Department of Economic Development Budget contains personnel and operational functions related to the provision of economic development services in the City. Before FY18/19, costs related to economic development activities and personnel were accounted for in the General Administration and Community Development Budgets. With a growing emphasis on economic development activities, a separate budget fund was established to account for expenditures. The Economic Development Department is the first point of contact with potential businesses, citizens, and elected officials regarding business inquiries and potential new business opportunities. The department is responsible for effectuating orderly economic growth of the City, attracting, retaining, and serving businesses and residents in the community. PRIMARY GOALS AND OBJECTIVES: • Cultivate and develop continual relationships with real estate brokers, current and prospective businesses, retailers, manufacturers, developers, attorneys, architects, engineers, etc.; • Maintain contact with retailers, developers, manufacturers, and prospective business owners regularly to assist in workforce and space needs and location preferences; • Promote City successes through social media, marketing and promotion: businesses expanding; new business, events, etc. to keep residents and business owners informed; • Maintain a list of available properties, including downtown and Richmond Road, along with demographics, socioeconomic and related data and in a format that provides quick access to all inquiries on the City and Think McHenry and Shop & Dine websites; • Maintain contact with Nicor and Com Ed staff as it relates to development and business assistance; • Work with the Community Development Department (zoning, subdivision, and coordination of development) to facilitate business retention, attraction and expansion; • Facilitate Business Retention Visits with McHenry County Economic Development Corporation (MCEDC), State Department of Commerce and Economic Opportunity (DCEO), McHenry County Workforce Network, and the Small Business Development Center (SBDC) to provide assistance with issues facing companies in today’s business climate and to prevent companies from closing or relocating to a new community; • Maintain a list of City manufacturers which includes contacts, business type, space, employee count, and other demographics for ease of reporting and coordination with partner agencies in the county and state; • Maintain a comprehensive list of all businesses in the City to ensure prompt and accurate information sharing; • Work with the Department of Commerce and Economic Opportunity (DCEO); McHenry County Economic Development Corporation (MCEDC); Intersect Illinois; McHenry Area Chamber of Commerce; Small Business Development Center (SBDC) and other economic partners to provide business assistance, site selection, expansion, and retention; • Continue multi-faceted efforts to retain existing businesses and attract new businesses to the City. 112112115 Economic Development – Organizational Chart Economic Development Director Doug Martin Economic Development Coordinator Dorothy Wolf 113113116 Economic Development – FY24/25 Accomplishments • Worked cooperatively with key property owners and the McHenry Area Chamber of Commerce, downtown business owners, and other relevant organizations and parties in seeking additional ways to revitalize downtown, working more closely with businesses with the goal being to attract additional investment in the downtown area, retain existing businesses, promote investment in older properties and assist smaller businesses struggling to keep doors open; • Promoted business growth in all geographic areas of the City, on the City’s major retail corridors, downtown, Illinois Route 120, Illinois Route 31, and in the City’s business parks; • Continued to coordinate and promote the Commercial Tenant Incentive Improvement Program; • Became more fluent in the use of Bludot CRM and Business Directory; • Worked with Chick-Fil-A to keep their project moving forward since its inception; • Implemented “Shop McHenry” program using Bludot program; • Continued to assist and be a resource to businesses as needed; • Worked with Little Bow Peep Shops and Bumble Bread on Revolving Loans; • Updated City’s trade show exhibit by acquiring two banner stands to increase visibility; • Administered and implemented the City’s Façade Grant Program; • Assisted in preparation of 2025 State of the City Address; • Continued to regularly attend Coffee with the Chief at the McHenry Library and participated as needed; • Represented the City in attending McHenry Area Chamber Mixers, Multi-Chamber Mixers; Ribbon Cuttings and Grand Openings for New Businesses to attract new business; • Continued to serve as a member of the McHenry County Public Transit Access Committee; • Served as a board member of the McHenry Area Chamber of Commerce and on committees affecting events that promote boosting the City’s economic outlook, especially in the downtown area; • Attended McHenry County Workforce Network Meetings (served as a board member and POPS Committee member) continuing to work together to meet the needs of all the City’s employers promoting and supporting workforce development in McHenry County; • Coordinated business site visits, continued to touch businesses on a regular basis, to calculate business retention and expansion needs; • Coordinated events across all organizations and joint marketing efforts to promote the City of McHenry to gain new residents and businesses; • Were more active and present on all social media and advertising platforms: sharing business recognition milestone anniversaries, promoting businesses and events in McHenry with pictures and videos to have a competitive advantage over neighboring municipalities; • Worked assertively with developers to fill vacant storefronts in all areas of the City; • Streamlined and promoted economic development website content over a wider demographic area for ease and attraction of new business development; • Introduced economic development staff to prospective businesses by attending all new business walk-through inspections as they are scheduled; • Attended ICSC events in Chicago and Las Vegas promoting the economic advantages of the City of McHenry; • Continued to work on developing the northwest corner of Bull Valley Road and Illinois Route 31; • Increased efforts in the development of R.J. Roberts property; • Encouraged and promoted the development of a hotel; 114114117 • Worked cooperatively with the McHenry Riverwalk Shoppes owners to locate brick-and-mortar locations for the new successful businesses to remain in McHenry after their second year, increasing our tax base and drawing more consumers to our downtown; • Worked with local businesses, McHenry Brewery and Jessup Manufacturing, and school district to promote the creation of additional murals in the City and on the Riverwalk; • Became more active in the Manufacturing Pathways Consortium in supporting and promoting workforce development in McHenry County. 115115118 Economic Development – FY25/26 Goals & Objectives • Have significant involvement in the exploration and possible implementation of TIFs on Richmond Road, West Route 120, South Front Street and Main Street; • Get the Room Place Property Redeveloped; • Work with Redwood on finding a second site in the City; • Work with Extended Stay America in finding a site in the City; • Work with Intersect Illinois on the Vetted Sites Program; • Get out and sell the community more, attend Bisnow events and other outside marketing opportunities; • Work cooperatively with key property owners and McHenry Area Chamber of Commerce, downtown business owners, and other relevant organizations and parties in seeking additional ways to revitalize downtown, working more closely with businesses with the goal being to attract additional investment in the downtown area, retain existing businesses, promote investment in older properties and assist smaller businesses struggling to keep doors open; • Promote business growth in all geographic areas of the City, on the City’s major retail corridors, downtown, Illinois Route 120, Illinois Route 31, and in the City’s business parks; • Work with McHenry County College/Small Business Development Center (SBDC) on business attraction and retention, employment needs, and collaboration for business development of the McHenry Riverwalk Shoppes; • Work with Assistant to the City Administrator/Deputy City Clerk to find a suitable program for demographic, socioeconomic and other GIS-based economic development information: • Work with consultant hired to do downtown parking study in obtaining necessary information as needed; • Continue to serve on the Manufacturing Pathways Consortium and make valuable business connections at the County and MCC Manufacturing events; • Represent the City by attending McHenry Area Chamber Business Mixers, Multi-Chamber Mixers; Ribbon Cuttings and Grand Openings for new and expanding businesses; • Continue to serve as a member of the McHenry County Public Transit Access Committee; • Serve as a board member and serve on committees of the McHenry Area Chamber of Commerce; • Attend Bisnow events and strategically sponsor when appropriate; • Join NICAR and attend meetings regularly; • Serve on the Kiwanis Club of McHenry; • Continue to work with Paul Pacini on the development of his properties at Bull Valley Road/Illinois Route 31 and the Ebel Farm on south Route 31; • Serve on the Board of the Pioneer Center; • Serve on the Business Incubator subcommittee of the EDGE Group; • Attend McHenry County Workforce Network Meetings, serving as a board member for the City, and collaborating with other municipalities in the County in a concerted effort to assist and meet the needs of our primary employers; • Work cooperatively with Naturally McHenry County in promotional marketing and social media for the City for tourism-related events and activities, oftentimes using social media influencers to obtain a further geographical reach; • Work cooperatively with the Parks and Recreation Department, Naturally McHenry County, and the McHenry Area Chamber of Commerce on a combined Events Planning Committee for 2025; • Collaborate with the Parks and Recreation Department and Chamber of Commerce in creating updated downtown wayfinding maps; 116116119 • Serve alongside other municipalities and Organizations on the MCEDC Economic Development Growth Experts (EDGE) group, working collaboratively toward growth in McHenry County; • Coordinate business retail and industrial site visits; • Cooperatively work with downtown businesses and community organizations, school districts, and service and not-for-profit agencies to promote and meet our collective goals in the City; • Create, promote, and facilitate Business Improvement Program throughout City Of McHenry; • Create and present a revised Economic Development Strategy to City Council; • Increase activity on social media incorporating Linked-In to facilitate sharing business recognition, milestone anniversaries, and industry trends using pictures and videos; • Work assertively with developers and entrepreneurs to fill vacant storefronts in all areas of the City; • Streamline economic development website content for ease and attraction of new business development and added a News and Events page to filter marketing promoted through Naturally McHenry County and other agencies to our Think McHenry website; • Welcome and introduce Economic Development Staff to prospective businesses by attending all new business walk-through inspections as they are scheduled, making valuable connections in drawing new business to the City; • Attend ICSC events in Chicago and Las Vegas to maintain prior contacts and establish new business connections with national restauranteurs and retailers, developing relationships and promoting expansion to the City; • Regularly attend Coffee with the Chief McHenry Library and provided updates on economic development; • Encourage development on the South side of the City, along the Route 31 corridor, most recently working with hotels and retailers and a developer on the Pacini property at Route 31 and Bull Valley Rd. 117117120 Economic Development – Performance Measures FY25/26 Item Goal Description FY 25/26 Proposed Outcome(s) Create and Present a Revised Economic Development Strategy to the City Council Work with City Administrator on presenting a suitable Economic Development Strategy to the City Council Intentions and policies of the City as they relate to incentives Adoption of the revised Economic Development Strategy Create a Business Improvement Program Work with City Administrator on presenting a solid program to the City Council Grants for interior and exterior improvements to businesses on a graduated scale Adoption of the Business Improvement Program by the City Council Establishment of TIF District(s) Work with City Council and Finance Director to establish TIF District(s) on Richmond Road, Main Street, South Front Street and/or West Illinois Route 120 Work closely with taxing bodies to establish one or more TIF Districts throughout City Establishment of one or more TIF Districts on Richmond Road, Main Street, South Front Street, West Route 120 Installation of mural at McHenry Brewery Work with owners of McHenry Brewery to have a mural installed The mural depicts history of McHenry and the brewing process to the present day Completed mural on south and west walls of the building 118118121 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 AB CDEFGHIJ Account Account FY21/22 FY22/23 FY23/24 FY24/25 FY24/25 FY25/26 Number Description Actual Actual Actual Budget Estimated Proposed Salaries/Benefits 4010 Salaries 184,779 201,788 213,494 219,317 220,101 228,091 8,774 4.00% 4310 Health Insurance 37,776 40,528 41,593 42,693 42,304 43,428 735 1.72% 4320 Dental Insurance 1,541 1,580 1,611 1,664 1,574 1,624 (40) -2.40% 4330 Life Insurance 114 145 101 102 101 102 - 0.00% 4340 Vision Insurance 193 191 193 195 190 190 (5) -2.56% 4410 FICA Medicare 13,079 14,473 15,533 16,778 16,015 17,449 671 4.00% 4420 IMRF Retirement 21,619 20,800 20,000 21,033 20,741 22,170 1,137 5.41% TOTAL SALARIES/BENEFITS 259,101 279,505 292,525 301,782 301,026 313,054 11,272 3.74% Contractual Services 5110 Contractual 46,143 74,689 149,221 195,000 121,512 211,500 16,500 8.46% 5310 Postage & Meter - - - 25 - 25 - 0.00% 5330 Printing and Publishing 150 160 122 500 61 150 (350) -70.00% 5410 Dues 2,509 2,617 2,942 2,700 2,574 2,500 (200) -7.41% 5420 Travel Expense 1,101 1,409 1,988 3,800 1,477 7,800 4,000 105.26% 5430 Training 1,132 2,882 1,580 3,000 1,317 3,000 - 0.00% TOTAL CONTRACTUAL SERVICES 51,035 81,757 155,853 205,025 126,941 224,975 19,950 9.73% Supplies 6110 Materials and Supplies 74 146 - 100 - 100 - 0.00% 6210 Office Supplies 174 46 84 300 83 150 (150) -50.00% TOTAL SUPPLIES 248 192 84 400 83 250 (150) -37.50% Other 9922 Purchase of Services - Information Tech 18,478 8,743 9,690 12,577 12,577 12,960 383 3.05% TOTAL OTHER 18,478 8,743 9,690 12,577 12,577 12,960 383 3.05% TOTAL ECONOMIC DEVELOPMENT 328,862 370,197 458,152 519,784 440,627 551,239 31,455 6.05% Economic Development ‐ Fund Summary (Fund 100, Department 06) Budget Variance ($) Budget Variance 119119122 Fiscal Year 2025/2026 Annual Budget Police Commission 120120123 Police Commission – Overview The purpose of the Police Commission is to select sworn personnel in accordance with the employment policies of the City of McHenry, as well as investigate conduct hearings regarding any sworn member of the McHenry Police Department. 121121124 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 AB CDEFGHIJ Account Account FY21/22 FY22/23 FY23/24 FY24/25 FY24/25 FY25/26 Number Description Actual Actual Actual Budget Estimated Proposed Salaries/Benefits 4220 Salaries 1,350 1,350 - 1,350 2,700 1,350 - 0.00% 4410 Social Security - Medicare 103 103 - 103 206 103 - 0.00% TOTAL SALARIES/BENEFITS 1,453 1,453 - 1,453 2,906 1,453 - 0.00% Contractual Services 5110 Contractual 5,335 3,111 7,143 6,000 6,509 6,000 - 0.00% 5330 Printing and Publishing - - - - - - - #DIV/0! 5410 Dues - - - 375 - 375 - 0.00% 5430 Training - - - 500 - 500 - 0.00% 5450 Publications - - - - - - - #DIV/0! TOTAL CONTRACTUAL SERVICES 5,335 3,111 7,143 6,875 6,509 6,875 - 0.00% Supplies 6110 Materials and Supplies - 20 - - - - #DIV/0! TOTAL SUPPLIES - 20 - - - - - #DIV/0! TOTAL POLICE COMMISSION 6,788 4,584 7,143 8,328 9,415 8,328 Variance ($) Variance (%) Police Commission ‐ Fund Summary (Fund 100, Department 21) 122122125 Fiscal Year 2025/2026 Annual Budget Police 123123126 Police - Overview Vision Statement The McHenry Police Department will maintain the highest standards of criminal justice excellence in all aspects of policing. Through these standards the McHenry Police Department will define itself as a leader in the industry by those we serve and protect. Mission Statement The Mission of the McHenry Police Department is to work in a true partnership with the citizens we serve, enhance the quality of life and provide excellence in public safety. Agency Values The McHenry Police Department is charged with the responsibility to serve and protect the citizens of McHenry. Our agency values provide the foundation for our mission and guide us in our effort to meet the vision of the agency. The McHenry Police Department operates off the core values of Integrity, Courage, Service, Honor and Duty. Agency Structure The McHenry Police Department is the third largest law enforcement agency in McHenry County. Organized into four main divisions of Administration, Support Services, Field Operations and Information Technology (I.T.), the McHenry Police Department serves and protects the citizens of McHenry and all those who visit. Within each division, specialty units are established to meet specific needs of the agency that support our vision and goals. The McHenry Police Department is a community-oriented organization that operates off a problem-solving philosophy. The Administration Division is comprised of the Chief of Police, Deputy Chief of Police and an administrative assistant. The Support Services Division and Field Operations Division are each headed by Division Commanders, and the I.T. Division is headed by a manager. These supervisors report to the Deputy Chief of Police. The Deputy Chief of Police reports to the Chief of Police. All sections and units of the organization are structured under one of the following divisions. Field Operations Division The Patrol Section is the largest component of the Field Operations Division and is responsible for responding to both emergency and non-emergency calls for services from the public. The Patrol Section is divided into three shifts to provide 24-hour police services. Each shift is supervised by two Sergeants. Uniformed Patrol Officers and one Community Service Officer (CSO) are responsible for partnering with the community to protect life and property and to maintain peace, order and safety. In addition, this Division handles special assignments, self-initiated activities and addresses community concerns. Additional Units within Field Operations include the Field Training Unit, Canine Unit, Truck Enforcement Unit, Bicycle Patrol Unit, Major Crash Assistance Team, Mobile Field Force Officers and Tactical Response Officers. Support Services Division The Support Services Division is comprised of the Investigation Section, Accreditation Unit, Training Unit, Public Relations Unit, Social Services Unit, Communications Center and Planning/Research/Technical. 124124127 • Detectives work in plainclothes and provide expertise and resources to investigate crimes that happen in McHenry. Detectives investigate crimes that are often complex and may extend over a significant period of time and geographical area. The cases are investigated until an arrest is made or there are no longer leads to pursue. Many of the investigators have received specialized training in the investigation of homicides, child abuse, sexual assaults, juvenile delinquency, crime scene processing, felony property crimes, robberies, felony crimes against persons and cybercrime. • The Accreditation Unit is utilized to revise and draft department policy and ensure that the agency is performing its duties in a manner that is consistent with the Law Enforcement Commission on Accreditation for Law Enforcement standards. • The Training Unit is responsible for the management of all ongoing training for police personnel. Training includes annual in-house training such as Defense Tactics and Firearms along with all external training. Each officer and civilian employee is required to receive mandated training in accordance with our departmental policy, CALEA accreditation standards and Illinois statutes. This Unit is responsible for the coordination and implementation of thousands of hours of training each year. • The Public Relations Unit is charged with the responsibility to foster the community orientated philosophy and problem-solving practices of the McHenry Police Department. This is done through multiple educational and community events provided to our citizens by the police. • Social Services Unit is tasked with overseeing all social service-related efforts of the police department. This includes but is not limited to referrals of community members to social service resources, providing on-scene and on-call crisis intervention serves, overseeing the department’s peer support program, providing professional and clinical consultation to department staff members and handing the department’s comfort canine. • The Dispatch Center, named Northeast Regional Communications (NERCOM), is the final and largest component of the Support Services Division. This unit is a consolidated dispatch center that provides emergency dispatch services for sixteen (16) police, fire and EMS agencies. Although the center is owned and operated by the McHenry Police Department, a partnership through an intergovernmental agreement between the McHenry Township Fire Protection District, Harvard Police Department and Woodstock Police Department allows for joint decision making on policy development and shared financial responsibility. The center operates off a separate budget which is managed by the Chief of Police and Deputy Chief of Police. In an overview of the day-to-day operations of the center, at its optimal staffing level NERCOM is manned twenty-four hours a day, seven days a week, 365 days a year by a minimum of four telecommunicators at all times. Each telecommunicator is crossed-trained to be proficient in both police and fire/rescue disciplines of dispatching. In addition, the center provides Emergency Medical Dispatch services to all of our customers. Roles defined within the dispatch center include 911 call takers, police dispatch and fire/EMS dispatch. These defined roles allow for the center to provide services in the most efficient and effective way, exceeding industry standards. 125125128 • The Planning/Research/Technical sections coordinate the specific planning and research activities of the department, complete short- and long-term special projects, attend to critical risk management issues and research & write grant proposals. Information Technology (I.T.) Division The I.T. Division provides all City staff with services regarding purchases, operations, maintenance, repair and replacement of all information technology related programs, systems, software and hardware. The mission of the Information Technology Division is to provide the most innovative, highest quality, technology-based services in a cost-effective manner and to facilitate the achievement of the goals and objectives of each of the City’s operating departments. Information Technology Fund revenues are derived from transfers from the City’s operating departments and expenses are related to the direct provision of technology services by the Division’s three staff members and for the replacement of equipment and software throughout the municipality. 126126129 Police - Organizational Charts Police Overall Chief of Police Deputy Chief of Police Commander Field Operations PatrolDay ShiftPatrolMidnight Shift Patrol Afternoon Shift I.T. Manager I.T. Specialists Commander Support Services Investigations UnitTelecommunications Center Records UnitAccrediatation and Training Public AffairsFOIA Social Services Coordinator Executive Assistant 127127130 Police Administration Chief of PoliceJohn Birk Deputy Chief of PoliceThomas Walsh Field Operations Commander Paul Funk Support Services Commander Nicholas Clesen Information Technologies ManagerAaron Greve Social Services CoordinatorJason Sterwerf Executive AssistantKelly Schmitt 128128131 Police - Patrol Section Commander of Field OperationsPaul Funk Afternoon ShiftSergeants Brian Aalto and Roger Hendrickson OfficerKatelyn LorenzOfficerJoshua Conway & K9 Eli OfficerHenri KruegerOfficerDiana Hernandez OfficerGrahm McClureOfficerMatthew Szoke OfficerTrevor PedersonOfficerWilliam Campos OfficerThomas JagerOfficerMatthew Meyers Day ShiftSergeants Brian McKeen and Kelly Ducak OfficerMarc FisherOfficerJill Foley OfficerRyan PardueOfficerJason Ducak OfficerRobert KlasekOfficerPaul Prather OfficerStevan BarjaktarevicOfficerChristina Noyes OfficerTBDOfficerJake Busse Community Service OfficerDavid Porter Midnight ShiftSergeants Patrick Polidori and Brett Kinney OfficerMatthew SchmittOfficerMichael Spohn OfficerKatherine ZajacOfficerRobert Beaudoin OfficerChristopher CummingsOfficerAlex Lopez OfficerJeremy HollanderOfficerMichael Rodriguez OfficerTBDOfficerJuan Rocha 129129132 Police – Investigations Section Commander of Support ServicesNicholas Clesen Investigations SergeantJaimie Prather InvestigatorMatthew Voelker School Resource OfficerRichard Rewiako InvestigatorSamuel Shafer School Resource OfficerJames Harris Investigator Ryan Ehardt School Resource OfficerMegan Carey InvestigatorSusan Ellis School Resource OfficerAlberto Martinez InvestigatorZachary Diebold 130130133 Police – Support Services Division Telecommunications, Records, Public Affairs, FOIA Commander ofSupport ServicesNicholas Clesen TelecommunicationsCenter Dispatch Center Supervisor Jennifer Synek Lead TelecommunicatorsKathryn Wilbur and TBD TelecommunicatorTracy McNamara TelecommunicatorHolly Neville TelecommunicatorGrant Havens TelecommunicatorKatherine Fitzgerald TelecommunicatorGwendolyn Allen TelecommunicatorKaitlin Durband TelecommunicatorBridgette Veronese TelecommunicatorEileen Beidelman TelecommunicatorAshley Witt TelecommunicatorTBD Lead TelecommunicatorsTBD and TBD TelecommunicatorRebecca Morrison TelecommunicatorMichelle Zujewski TelecommunicatorPenelope Wegner TelecommunicatorTamara Soto TelecommunicatorFarrah Cvitkovic TelecommunicatorJonathan Lechner TelecommunicatorDrew Lussow TelecommunicatorLillian Duarte TelecommunicatorJillayne Butler TelecommunicatorAndrew Crowley Records, Public Affairs, FOIA Records ClerkMarybeth Varvil Records ClerkDebora Shuett Accreditation Manager and Training CoordinatorAdriana Birk Public Affairs Officer Ashley O'Herron FOIA OfficerRobert Roske FOIA OfficerRoger Pechous 131131134 Police – Information Technology Division Information Technology ManagerAaron Greve Information Technology (I.T.) SpecialistMichael Hodge Information Technology (I.T.) SpecialistMichael Wood 132132135 Police – FY2024/25 Accomplishments Personnel Retirements • Stephanie Erb retired from the police department on July 23rd, 2024. She started with the police department in February 2011 as a Telecommunicator. In June 2014, Stephanie took the position of Assistant Accreditation Manager / Assistant Training Coordinator, which, in August 2023, transitioned into the Accreditation Manager / Training Coordination position. • On October 1st, 2024, Records Clerk Debra Shoemaker retired from the department. She began her career with the City in July 2014 and joined the police department in March of 2017. • Adriana Birk retired as a police officer on September 8th, 2024, and assumed the civilian position of Accreditation Manager / Training Coordinator. Adriana started as a police officer with the department on August 16th, 2004. During her time as a police officer, she was assigned to the Investigations Unit as a Detective for approximately ten years. • On October 6th, 2024, Robert Roske retired as a police officer and assumed the civilian position of FOIA Officer/Digital Records Custodian. He started as an officer on October 1st, 1999, and during his career held many specialty positions, including Detective. New Hires • On April 8th, 2024, Michael Rodriguez and Jake Busse joined the department as new police officers. They attended the basic police academy at the Southwest Illinois Police Academy in Belleville, Illinois, graduated on August 9th, 2024, and then successfully completed the department’s Field Training Program. • Thomas Jager and Justin McCauley were sworn in as new police officers on August 5th, 2024. They attended the basic police academy at the Southwest Illinois Police Academy in Belleville, Illinois, graduating on December 6th, 2024. • On August 14th, 2024, Lillian Duarte began her career with the police department as a Telecommunicator. Lillian was a Morton West High School graduate and had attended Aurora University. • Jillayne Butler joined the department as a Telecommunicator on August 28th, 2024. She was a Streamwood High School graduate and has a degree from Northwestern University. • On January 2nd, 2025, Juan Rocha was sworn in as a new police officer. Juan started the basic police academy at the Southwest Illinois Police Academy in Belleville, Illinois. • Andrew Crowley joined the department as a Telecommunicator on December 4th, 2024. Andrew transferred to us as a Telecommunicator for the Elgin Police Department. • On January 6th, 2025, Ashley Witt began her career with the department as a Telecommunicator. Ashley was an Antioch High School graduate and most recently had worked with Thelen Material. 133133136 Training The McHenry Police Department recognizes the need to make sure all our sworn and civilian employees receive the highest level of training available. During the 2024 calendar year, sworn officers and civilian staff members of the McHenry Police Department participated in approximately 4,700 hours of training, both internally and externally. Training directly affects the success of service provided to the community and liability placed on the City. Some highlights were: • Chief Birk, Deputy Chief Walsh and I.T. Manager Greve attended the International Association of Chiefs of Police Conference in Boston, Massachusetts, and received world-renown training in topics that addressed contemporary or emerging issues confronting the law enforcement profession and the leaders of law enforcement agencies worldwide. In addition, I.T. Manager Greve attended trainings and met with vendors specific to cyber security and new software platforms. Annual, Bi-Annual and Tri-Annual Training for the department includes: • Arrest Search and Seizure law under the Fourth Amendment, Bias Based Policing (CALEA), Bloodborne Pathogens (OSHA), Civil Rights, Constitutional and Proper Use of Law Enforcement Authority, CPR/AED, Crisis Intervention Training, Critical Incident Response (CALEA), Crowd Control Response Training (CALEA), Cultural Competency, Defensive Tactics (CALEA), Emergency Medical Response, Ethics (CALEA), Firearms Qualifications, HAZMAT first responder awareness level, High Risk Traffic Stops, Human Rights, Implicit Bias, Investigations of Sexual Assault and Sexual Abuse, Law Legal Updates, Mental Health Awareness*(CALEA), Narcan, Officer Safety Techniques, Officer Wellness and Mental Health, Portable Fire Extinguisher Training, Procedural Justice, Psychology of Domestic Violence, Racial and Ethnic Sensitivity, Reporting Child Abuse and Neglect, Sexual Harassment, Standardized Field Sobriety Testing, Taser, Temporary Detention (CALEA), Trauma Informed Responses to Sexual Assault and Sexual Abuse, Use of Force. Sworn Officer training was conducted in: • Law Enforcement Administration • Canine Unit Operations • Narcotics Investigations • Weekly Case Law Updates • Crime Scene Investigations • Homicide Investigations • Interview & Interrogations • Special Response Teams Training • Rapid Deployment Training • Firearms Training • Critical Accident Investigations • Patrol Operations • Arson Investigations • State Mandated Annual Training Segments 134134137 Civilian training was conducted in: • Dispatch Leadership Symposium • Integrated Emergency Management Course • Dispatch Rapid SOS Admin Training • CIT for 911 Dispatchers • Dispatch - IPSTA Conference • Dispatch - Mental Health First Aid for Public Safety • Dispatch – Text To 911 • Dispatch - LEADS 3.0 Update • Weekly Dispatch In-House Training 1-2 hours weekly • Dispatch CPR Training • Dispatch Annual ICS Training • Dispatch Annual LEADS Certification • Dispatch – Monthly Police/Fire/EMS Scenario Based Training Modules Calls for Service Police Calls for Service In the 2024 calendar year, the McHenry Police Department handled 25,463 calls for service through dispatch and police services. The following list highlights the types and volume of specific areas of investigation by the department. These investigations resulted in over 240 felony and misdemeanor charges being filed. Homicide 1 Sex Offenses 29 Robbery 0 Burglary 11 Theft 188 Motor Vehicle Theft 9 Weapons Offenses 7 Domestic Disturbances 455 Drug Investigations 32 Fire Investigations 20 Death Investigations 47 Burglary to Vehicle 13 Juvenile Incidents 403 Dispatch Center Calls for Service During the 2024 calendar year, NERCOM answered approximately 41,776 Emergency 911 calls, approximately 139 text-to-9-1-1 calls for service, and approximately 75,616 non-emergency administrative calls. An additional 27,260 outgoing calls were made on the behalf of our customers for additional tasks. The dispatch center handled the following calls for service during the 2024 calendar year: Department Calls for Service McHenry Police 25,463 Johnsburg Police 3,576 Marengo Police 4,733 135135138 Union Police 210 Woodstock Police 35,469 Harvard Police 10,034 Fox River Grove Police 4,685 McHenry Fire 7,771 Marengo Fire & Rescue 1,936 Union Fire 135 Woodstock Fire 5,680 Harvard Fire 1,338 Cary Fire 2,659 Nunda Fire 540 Fox River Grove Fire 659 Mutual Aid During calendar year 2024, the McHenry Police Department participated in multiple mutual aid requests. Sergeant Ducak, Detective Voelker and Officer Carey participated in three (3) taskforce callouts through the McHenry County Major Investigation Assistance Team (MIAT), one male being charged with Aggravated Battery/Use of a Deadly Weapon x2, Agg Batt/Great Bodily Harm, and Agg Batt/Great Bodily Harm (60+). McHenry Police Department Offers Foley, Rewiako and Harris participated in eleven (11) callouts through the McHenry County Major Accident Assistance Team. These officers investigated vehicle crashes that resulted in six (6) deaths and five (5) serious bodily injuries. Sergeant Hendrickson was assigned to the Northern Illinois Police Alarm System (NIPAS) Emergency Service Team. Mid-year, he was replaced on the team by Detective Ehart. In total those officers participated in six (6) callouts for incidents such as high-risk felony arrest warrants and armed/barricaded subjects. The McHenry Police Department has one officer assigned to the ILEAS Mobile Field Force. In 2024, Officer Schmitt was deployed to both the Republican National Convention and the Democratic National Convention as part of a mutual aid request. Projects Body-worn Cameras Due to an Illinois state mandate, the Police Department implemented a new body-worn camera program in 2024. The State of Illinois now requires all police officers to wear BWCs while conducting law enforcement activities. This project also included the replacement of the patrol fleet’s in-car 136136139 cameras to correlate to the BWCs worn by the officers. Most of the in-car cameras were over seven years old. The department applied for grant funding to help cover some of the cost of the program. Fueling Station The Police Department and Public Works partnered to build a new City owned fueling station located at the Public Works facility. The cost of the fueling station was paid for primarily through police asset forfeiture funds. The fueling station was opened in June of 2024 and it is anticipated that the City will save between $40,000 - $50,000 annually in fuel costs by having its own station. MCSO Marine Unit Building A multi-year project to build a new McHenry County Sheriff’s Office Marine Unit building at the Miller Park Boat Launch site was completed in the fall of 2024. The facility was paid for by the County and is leased back to the Sheriff’s Office on a long-term lease. By partnering with the County, the City was able to get a new public restroom constructed at no additional cost. City Campus Security Enhancement Project As part of a multi-year City campus security enhancement project, the department’s I.T. Division installed security cameras at the Public Works main facility and its Wastewater Treatment facility. These cameras live-stream through the City’s existing system and can be monitored by the Police Department’s dispatch center. In the rare case of a crime at one these locations (ex. Vandalism), footage can be used to identify the offender(s) and hold them responsible for their actions. Accreditation CALEA: The Commission on Accreditation for Law Enforcement (CALEA) has been an ongoing partnership for the police department since 2002. The purpose of CALEA is to improve the delivery of public safety services, primarily by: maintaining a body of standards, developed by public safety practitioners, covering a wide range of up-to-date public safety initiatives; establishing and administering an accreditation process; and recognizing professional excellence. • The continuous re-accreditation of the McHenry Police Department has proven that the agency has set and followed the following goals set by CALEA. • Strengthen crime prevention and control capabilities. • Formalize essential management procedures. • Establish fair and nondiscriminatory personnel practices. • Improve service delivery. • Solidify interagency cooperation and coordination, and • Increase community and staff confidence in the agency. • Developed a comprehensive, well thought out, uniform set of written directives. • Established a preparedness program that is ready to address natural or man-made critical incidents. • Strengthened the agency's accountability, both within the agency and the community. • Limited the agency's liability and risk. 137137140 In FY 24/25, the McHenry Police Department successful completed another annual assessment by CALEA, maintaining our accreditation. We anticipate a full re-accreditation in FY 25/26. Dispatch ACE Accreditation: In FY 24/25, the dispatch center successful maintained accreditation through the International Academies of Emergency Dispatch (IAED) as an Accredited Center of Excellence (ACE) for emergency dispatching. McHenry Police Department/NERCOM is the 307th Medical ACE in the world and only the 7th center in Illinois to reach this status. Centers who earn ACE status are the embodiment of dispatch done right, and have demonstrated strong local oversight, rigorous quality processes, and a commitment to data-driven continuous improvement. Social Services Program In 2024, the Police Department Social Services Program provided services for 171 different cases, which was a 20% increase in case referral from 2023. The social service program has been widely utilized and accepted by the McHenry Police officers as an additional tool to use in providing resources for the community. This program services people in need regarding; domestic violence, mental health, substance abuse, youth services, child protective services, family services, elderly services, veteran services, homelessness, and hoarding. Counseling services for department staff is also offered through this program. The Social Service Coordinator is also the primary handler for the department’s therapy canine, Oakley. Oakley continues his work and was deployed over 124 times in 2024. These deployments include every school in the city of McHenry, community events, partner law enforcement agency projects, hospital visits, and several nursing home outings. Oakley continued his official training in 2024 and completed his required visits to achieve AKC Therapy Dog (THD) and will complete the next level of AKC Therapy Dog Advance (THDA) which requires at least 100 deployments. In December 2024, Oakley was recertified by the Masonic Association of Service and Therapy Dogs for the 2025 year. Community Outreach The McHenry Police Department, to accomplish the agency’s mission, participates in many community outreach events each year. Below highlights some of the more notable events that occurred in FY24/25. National Night Out On August 6th, 2024, the Police Department hosted National Night Out at Peterson Park. We were joined by the McHenry County Sheriff’s Office, Johnsburg Police Department, McHenry County Conservation District Police, and the McHenry Township Fire Protection District. National Night Out is a campaign that enhances the relationship between neighbors and law enforcement while bringing 138138141 back a true sense of community. Furthermore, it provides a great opportunity to bring police and neighbors together under positive circumstances. Child Safety Seat Installations The McHenry Police Department has a team of certified car seat technicians dedicated to providing education to parents and caretakers of young children. Members of the car seat team stay certified by acquiring continued education credits and demonstrating their use of proper skills and education techniques. Technician duties include offering free inspections of child’s safety seats at both our police department and scheduled events. In 2024, the McHenry Police Department installed over 100 child seats and showed current parents and parents to be how to keep their families safe. Adopt-A-School Program In FY 2024/25, the McHenry Police Department continued the agency’s “Adopt-A-School” program. This program pairs individual officers with specific grade schools with the community to increase awareness and safety within those schools. The program entails individual Day Shift patrol officers being assigned their own specific grade school. The objective is for the officers to get to know the faculty and students at their respective school so that the police department can provide a better service. This program involves activities such as foot patrols, classroom instruction blocks, training exercises, and a community approach to solving problems within our schools. The plan is designed to further the McHenry Police Department’s mission of increasing school safety in our local schools. Social Media Messaging During FY2024/25, the McHenry Police Department continues its efforts to reach community members through social media. These platforms disseminate critical information and help us show the lighter side of the department’s daily operations. Recognizing that many in and around our community utilize social media as an information source, the Police Department improved its efforts on Facebook and Twitter, increasing our followers from the previous year and having a reach of over 18,000 people on Facebook. Since 2009, the McHenry Police Department has been using Nixle to communicate emergency messages in real-time. The Police Department currently has over 21,000 subscribers to this service, which is free to our residents. Special Olympics Illinois Special Olympics is a global organization that unleashes the human spirit through the transformative power and joy of sport, every day around the world. Through programming in sports, health, education and community building, Special Olympics is changing the lives of people with intellectual disabilities solving the global injustice, isolation, intolerance, and inactivity they face. Special Olympics Illinois provides opportunities for more than 22,000 traditional athletes, more than 20,000 Young Athletes (ages 2-7), approximately 40,000 coaches and volunteers and thousands more people statewide through 19 area programs in all 102 counties of the state. 139139142 The Law Enforcement Torch Run is the single largest year-round fundraising vehicle benefiting Special Olympics Illinois. The annual intrastate relay and its various fundraising projects have two goals: to raise money and to gain awareness for the athletes who participate in Special Olympics Illinois. The Law Enforcement Torch Run has raised over $1 billion over the last 44 years while increasing awareness of Special Olympics athletes and their accomplishments. In 2024, our efforts helped raise over $15,000 for the athletes of Special Olympics - Illinois. Senior Citizen Dispatch Call-In Program NERCOM participates in a Senior-Citizen call-in program designed by Woodstock PD to keep daily track of those who live alone within the Woodstock community. As a result of these daily phone calls with the telecommunicators, they have established friendships with the senior citizens and again this year, volunteered during their off time to bake Christmas cookies for them and to celebrate their birthdays. Coffee with the Chief Since 2012, the Police Department has held an active “Coffee with the Chief” Program. Currently this program is a partnership with the McHenry Public Library. This public meeting is offered to residents of McHenry as part of the McHenry Police Department’s continued commitment in keeping our citizens and community informed about their police department. These events are opportunities for the Chief and members of the McHenry Police Department to obtain face to face feedback from our citizens. Police Department Tours During FY2024/25, the Police Department was visited by several community and youth groups who wanted to learn more about the functions and staff of the department. Officers gave tours and discussed/demonstrated forensic techniques. One of the highlights was the annual visit from the students of Riverwood School. Mayor Jett discussed the role of the City Council, Deputy Clerk Johnson gave a tour of the Municipal Center and Chief Birk showed the students the department and one of our squad cars. Rotary Secret Santa Program This is the McHenry Police Department’s sixth year assisting the McHenry Rotary Club with their Secret Santa Program. This program collects, wraps and distributes over 7,600 gifts for almost 2,000 children in need throughout McHenry County and then hand delivers them all. Both sworn and civilian employees of the department (and their family members) volunteered their time to sort, wrap and participate in a coordinated delivery event of these gifts. Shop With A Cop In addition to a Trivia Night fundraiser held on October 13th, 2024, at The Vixen, the Police Department was assisted by local businesses with this meaningful program through the sale of raffle tickets for baskets full of goodies. Over $9,400 was donated to McHenry County Police Charities for the Shop With A Cop program. On December 8th, 2024, department staff shopped with sixteen 140140143 children at Meijer and enjoyed a nice breakfast provided by Brunch Café at the McHenry Recreation Center. Police – FY2025/26 Goals & Objectives Below are the highlighted Goals and Objectives that the McHenry Police Department will focus on during the 2025/26 fiscal year. • Continue to provide the highest level of police services to the citizens of McHenry. • Further advancement of resources for the department’s Social Services Program. • Continue with the department’s renovation / expansion phases to meet the department’s performance and usage needs. • Seek and secure the highest-level training opportunities for all agency members. • Continue and expand the department’s public relations/community involvement programs. • Continued support for overall community school safety through the School Resource Officers (SRO) and the Adopt-A-School program. • In partnership with District 15, launch a new drug prevention program in the junior high schools called “Too Good for Drugs”. • Continue the department’s Traffic Safety Plan to keep our roadways safe. • Maintain fiscal responsibility and reduce any financial burden on the City through grant funding. • Continue to maintain professional standards by being assessed through the Commission on Accreditation for Law Enforcement Agencies (CALEA). • Maintain Emergency Medical Dispatch (EMD) ACE Accreditation through Priority Dispatch. • Continue to actively partner with other organizations such as MCAT, MIAT, NIPAS and ILEAS to share police resources and reduce operational costs. • Replace four police vehicles, all with appropriate emergency equipment. • Replace two in-squad computers. • Improve the quality of services provided to other outside police agencies. • Strengthen our customer base through professional relationships. 141141144 • Annual review, revision and development of department policies and operational procedures. • Implement a public facing GIS Mapping system that tracks area Crime and Registered Offenders, with 24/7 public access to residents. Police – FY2025/26 Performance Measures Item Goal Description FY25/26 Proposed Outcome(s) Crime Rate Actively suppress property crime and crimes against persons in order to ensure the safety of the McHenry Community and its citizens. Did UCR reportable property crimes and crimes against person totals stay the same or see a reduction? February 15, 2026 Annual Police Budget Manage police department resources in an efficient and effective manner ensuring that community needs are met. To complete FY 25/26 by keeping expenditure at or under approved police budget. April 30, 2026 Traffic Crash / Roadway Safety Create a safe roadway system within the City by enforcing traffic laws in order to create safe driving behavior. To complete the 2025 calendar year with an overall reduction in traffic accidents. A reduction is traffic crashes investigated in 2025 as compared to 2024. Accreditation To improve the delivery of public safety services, primarily by: maintaining a body of standards, developed by public safety practitioners, covering a wide range of up-to-date public safety initiatives; establishing and administering an accreditation process; and recognizing professional excellence. To successfully review and revise policies in accordance with new laws or practices; Complete CALEA proofs and reports as required. Attain full four-year re-accreditation. 1. Review and revise as needed all agency policies by January 2026. 2. Complete all required CALEA standard proofs and reports for the 2025 calendar year by February 2026. 3. Successfully complete on-site assessment in December of 2025. 4. Successfully attend and testify at CALEA Hearings in March of 2026 with full four-year -re-accreditation awarded. Community Relations Maintain a strong working relationship with the McHenry Community and its Citizens in order to maintain trust and support in our mission to serve and protect. 1. Improvements to community events such as; Child Safety Seat Installations, Coffee with the Chief, School Safety, Adopt-A-School Program, Garden Quarter Community Days, Special Olympics Illinois, safety Expos and MCPOA Events 2. Continued improvement to Public Relations and Social Media Interaction. An increase in attendance to all community events, positive community feedback and the launch of new initiatives by April 2026. 142142145 Training Provide the highest level of professional police services with the lowest liability or risk to the City and the Citizens who we serve. 2025/26 McHenry Police Department Training Plan. Illinois Police Training Act 50/ILCS 705/7 Meet or exceed all training requirements in FY 25/26, established by departmental policy and Illinois State Statute. Narcotics Enforcement Reduce the amount of opioid usage and overdoses. Arrest / Investigation enforcement action of the illegal sale and use of opioids. Narcan deployment. Participation in the “A Way Out” Program. Obtain a reduction in the amount of opioid (specifically heroin) overdoses and deaths in McHenry for the 2024 calendar year. Grants See alternative ways to fund police related projects that support the mission of the organization. Annual review of all grant submission applied for and all grant submission awarded. Awarded grant funding for traffic enforcement, Body-cameras, Starcom 21, PSAP and ballistic vest purchases with a minimum of one additional grant to be applied for. Maintain state certification for Emergency Medical Dispatching Meet the standard goal of priority dispatch for certification All telecommunicators shall hold a current EMD certification from IDPH at all times. Measure will be evaluated continually throughout the year and produced in annual report . Emergency Call Processing Initially process 95% of emergency calls within 60 seconds of them being answered. Telecommunicator shall, within 60 seconds of answering an emergency call, acquire location of incident, phone number of caller, complaint type, and create a CAD event OR complete a PSAP to PSAP transfer at least 95% of the time. Measure will be substantiated through the use of quarterly reporting, which will culminate into an annual report. Emergency Call Dispatching Dispatch 95% of emergency calls within 90 seconds of them being answered. Telecommunicator group shall dispatch at least 95 % of all emergency calls within 90 seconds of them being answered. Measure will be substantiated through the use of quarterly reporting, which will culminate into an annual report. LEADS Hot File Entry All Criminal Hot Files will be entered without delay. Telecommunicator shall, within 60 minutes of receiving all necessary information, complete each Criminal Hot File entry into the LEADS/NCIC database. Measure will be based on regular auditing of the LEADS CHF records contained within the 911 center. Non-Emergency Call processing. Initially process 95% of all non-emergency calls within 120 seconds of them being answered. Telecommunicator shall, within 120 seconds of answering a non-emergency call, acquire location of incident, phone number of caller, complaint type, and create a CAD event OR complete a PSAP to PSAP transfer at least 95% of the time. Measure will be substantiated through the use of quarterly reporting, which will culminate into an annual report. Non-Emergency Call Dispatching Dispatch 95% of non- emergency calls within 150 seconds of them being answered. Telecommunicator group shall dispatch at least 95 % of all non-emergency calls within 150 seconds of them being answered. Measure will be substantiated through the use of quarterly reporting, which will culminate into an annual report. 143143146 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 AB CDEFGHIJ Account Account FY21/22 FY22/23 FY23/24 FY24/25 FY24/25 FY25/26 Number Description Actual Actual Actual Budget Estimated Proposed Salaries/Benefits 4010 Salaries 394,570 451,844 452,616 443,198 504,444 557,514 114,316 25.79% 4020 Sworn Salaries 5,002,324 5,261,441 5,685,659 5,816,698 5,764,871 5,965,715 149,017 2.56% 4030 Salaries - Part Time 16,681 15,935 5,587 47,840 - 40,000 (7,840) -16.39% 4050 Overtime 203 - - 5,000 - 5,000 - 0.00% 4055 Sworn Overtime 289,240 239,816 261,135 250,000 291,536 300,000 50,000 20.00% 4080 Career Ladder 23,098 21,043 20,944 24,000 21,203 24,000 - 0.00% 4310 Health Insurance 996,674 1,063,642 1,081,984 1,149,413 1,149,630 1,267,059 117,646 10.24% 4320 Dental Insurance 39,730 40,270 41,091 48,378 42,893 46,006 (2,372) -4.90% 4330 Life Insurance 3,004 3,905 2,843 2,907 2,814 2,907 - 0.00% 4340 Vision Insurance 4,793 4,860 5,149 5,053 5,326 5,470 417 8.25% 4410 FICA Medicare 410,608 430,791 467,964 503,885 482,544 527,256 23,371 4.64% 4420 IMRF Retirement 44,240 44,997 40,657 43,570 45,584 49,242 5,672 13.02% 4430 Contribution - Police Pension 655,318 621,970 669,181 710,366 708,195 691,364 (19,002) -2.67% 4510 Uniform Allowance 34,808 38,665 50,400 54,600 48,721 48,600 (6,000) -10.99% TOTAL SALARIES/BENEFITS 7,915,291 8,239,179 8,785,210 9,104,908 9,067,761 9,530,133 425,225 4.67% Contractual Services 5110 Contractual 135,330 218,628 292,774 405,768 621,462 414,806 9,038 2.23% 5310 Postage and Meter 2,595 1,391 4,372 2,000 1,836 2,000 - 0.00% 5320 Telephone 12,171 12,459 35,492 40,500 44,838 46,000 5,500 13.58% 5370 Repair and Maintenance 40,998 57,987 60,233 61,500 39,345 61,500 - 0.00% 5410 Dues 1,509 3,071 2,100 2,500 2,500 3,000 500 20.00% 5420 Travel Expense 9,622 11,296 13,258 31,200 24,003 32,300 1,100 3.53% 5430 Training 42,629 44,736 84,929 105,080 88,105 125,850 20,770 19.77% 5440 Tuition Reimbursements 13,090 18,791 7,470 15,000 13,330 15,000 - 0.00% 5450 Publications - 166 166 200 166 200 - 0.00% TOTAL CONTRACTUAL SERVICES 257,944 368,525 500,794 663,748 835,585 700,656 36,908 5.56% Variance ($) Variance (%) Police Department ‐ Fund Summary (Fund 100, Department 22) 144144147 1 2 3 4 AB CDEFGHIJ Account Account FY21/22 FY22/23 FY23/24 FY24/25 FY24/25 FY25/26 Number Description Actual Actual Actual Budget Estimated Proposed Variance ($) Variance (%) Police Department ‐ Fund Summary (Fund 100, Department 22) 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 Supplies 6110 Materials and Supplies 21,641 19,318 22,313 26,000 15,650 28,150 2,150 8.27% 6125 Social Services Expenses - - 690 - 1,300 6,000 6,000 #DIV/0! 6210 Office Supplies 17,102 20,537 21,109 20,000 14,852 23,700 3,700 18.50% 6250 Gasoline and Oil 116,652 150,765 112,907 150,000 145,923 135,000 (15,000) -10.00% 6270 Small Equipment 12,947 23,185 15,365 21,750 17,479 25,050 3,300 15.17% 6310 K-9 Unit 4,527 14,164 11,429 11,150 6,438 11,150 - 0.00% 6340 Forfeiture Expenses - - - - - - - #DIV/0! TOTAL SUPPLIES 172,869 227,969 183,813 228,900 201,642 229,050 150 0.07% Other 7400 Bond Issuance Costs - - - - - - - #DIV/0! 9904 Transfer - Debt Service 1,667,297 1,664,827 1,665,073 1,663,589 1,663,589 1,664,558 969 0.06% 9920 Purchase of Services - Risk Management 229,083 303,597 378,487 378,487 378,487 378,487 - 0.00% 9922 Purchase of Services - Information Tech 382,585 506,380 621,976 748,504 748,504 769,717 21,213 2.83% TOTAL OTHER 2,278,965 2,474,804 2,665,536 2,790,580 2,790,580 2,812,762 22,182 0.79% Capital Outlay 8300 Capital - Equipment 39,330 243,617 28,545 82,100 121,707 130,600 48,500 59.07% 8400 Capital - Vehicles - - - - - - - #DIV/0! TOTAL CAPITAL OUTLAY 39,330 243,617 28,545 82,100 121,707 130,600 48,500 59.07% TOTAL POLICE DEPARTMENT 10,664,399 11,554,094 12,163,898 12,870,236 13,017,275 13,403,201 532,965 4.14% 145145148 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 AB CDEFGHIJ Account Account FY21/22 FY22/23 FY23/24 FY24/25 FY24/25 FY25/26 Number Description Actual Actual Actual Budget Estimated Proposed Salaries/Benefits 4010 Salaries 1,580,982 1,498,966 1,711,604 1,950,559 1,719,407 2,024,472 73,913 3.79% 4030 Salaries - Part Time 10,520 7,750 - 30,000 - 15,000 (15,000) -50.00% 4050 Overtime 153,627 222,346 135,356 125,000 153,755 125,000 - 0.00% 4310 Health Insurance 364,402 395,932 398,486 472,727 384,274 512,055 39,328 8.32% 4320 Dental Insurance 13,746 14,836 15,083 19,233 15,948 18,905 (328) -1.71% 4330 Life Insurance 1,255 1,484 1,058 1,275 1,066 1,275 - 0.00% 4340 Vision Insurance 1,795 1,814 1,833 2,278 1,973 2,358 80 3.51% 4410 FICA Medicare 125,841 124,722 132,075 161,075 135,363 165,582 4,507 2.80% 4420 IMRF Retirement 203,409 177,747 172,029 199,046 175,538 208,929 9,883 4.97% 4510 Uniform Allowance 6,274 8,056 10,833 10,000 9,899 10,000 - 0.00% TOTAL SALARIES/BENEFITS 2,461,851 2,453,653 2,578,357 2,971,193 2,597,223 3,083,576 112,383 3.78% Contractual Services 5110 Contractual 11,146 23,007 18,865 14,900 15,476 16,900 2,000 13.42% 5310 Postage and Meter 52 - 33 50 - 50 - 0.00% 5420 Travel Expense 1,451 4,306 4,303 6,850 6,430 8,850 2,000 29.20% 5430 Training 8,249 7,333 8,924 17,990 12,381 20,990 3,000 16.68% 5440 Tuition Reimbursements 1,750 - - 2,500 - 2,500 - 0.00% 5510 Utilities - - - 500 - 500 - 0.00% TOTAL CONTRACTUAL SERVICES 22,648 34,646 32,125 42,790 34,287 49,790 7,000 16.36% Supplies 6110 Materials and Supplies 5,340 3,082 5,290 7,120 4,840 7,120 - 0.00% 6210 Office Supplies 707 802 509 2,500 875 2,500 - 0.00% TOTAL SUPPLIES 6,047 3,884 5,799 9,620 5,715 9,620 - 0.00% Other 9920 Purchase of Service - Risk Management 51,132 54,711 60,182 64,997 64,997 70,197 5,200 8.00% 9922 Purchase of Service - IT 38,399 67,935 72,690 76,325 76,325 80,141 3,816 5.00% TOTAL OTHER 89,531 122,646 132,872 141,322 141,322 150,338 9,016 6.38% TOTAL DISPATCH CENTER 2,580,077 2,614,829 2,749,153 3,164,925 2,778,547 3,293,324 128,399 4.06% Variance ($) Variance (%) Dispatch Center ‐ Fund Summary (Fund 100, Department 23) 146146149 Fiscal Year 2025/2026 Annual Budget Public Works Administration 147147150 Public Works Administration - Overview Public Works Departmental Mission The mission of the Public Works Department is to respond to the community needs consistent with the policies determined by City Council, to maintain a working environment built upon trust, respect and citizen involvement, and to achieve the City's goal of being responsive to resident needs and focusing on customer service. The Department consists of four operating sections that provide services to the citizens of our community. These sections include Administration, Street & Utility Division, Water Division, and Wastewater Division. Public Works Administration Mission It is the purpose of the Administration Division to provide direction and administrative support to the Department of Public Works. Public Works Administration is also responsible for completing City projects for the public welfare, to the highest quality, in accordance with legal and contractual standards, and in accordance with City statutes. The Public Works Department is responsible for the management of all City Engineering and Construction Projects, Request for Proposal solicitation for Engineering and Construction projects, contract enforcement, and general technical assistance for the department. There are several primary operating functions within the Public Works Administration Division: • To coordinate with the Mayor, City Council and City Administrator to ensure proper execution of the City’s policies and departmental programs. • To provide “in-house” engineering services for a number of City projects, to perform plan review for development and utility projects, and to perform project management services for the City’s contracted engineering services and publicly bid capital construction projects. • To provide administration, personnel management, asset management, departmental strategic planning, financial management, and capital improvement program planning/implementation for a Public Works Department responsible for all municipally owned and operated public infrastructure within the corporate limits of the City of McHenry. The Public Works Administration Division includes the Acting Director Russ Adams, Staff Engineer Greg Gruen, and Administrative Analyst Elizabeth Roth. 148148151 Public Works Administration – Organizational Chart Acting Director Russ Adams Water Superintendent Russell Ruzicka Wastewater Superintendent Russ Adams Wastewater Supervisor Tim Hendrickson Street & Utility Superintendent Doug Mace Crew Leader Pat Maher Crew Leader & Arborist Mike Harper Staff Engineer Greg Gruen Administrative Analyst Elizabeth Roth 149149152 Public Works Administration – FY24/25 Accomplishments • Administration and oversight of Refuse Collection Contract. • Awarded “Tree City USA” for the 29th consecutive year. • Successful completion of FY24/25 Road Resurfacing Program which included over 8 miles of resurfacing for a cost of $2,000,000. • Year 3 implementation of the 20-year Community Investment Plan which was funded with base fees implemented in January of 2022. • Consultant selection, project startup, project management and coordination with all City Departments for the design of Riverside Drive Streetscape Improvements. • Project management for the completion of the South Main Street Parking Lot Reconstruction. • Grant administration, in-house engineering, plan and contract document preparation, public bidding, and project management for the Miller Riverfront Park Public Boat Launch Project. • Completed a successful grant application for the Oak, Industrial, Orleans resurfacing project. The City was awarded $1,200,000 in funding for the project to be constructed in 2029. • Ongoing project management and coordination of design services for utility relocation associated with the future reconstruction of Illinois Route 31. • Completed the Bull Valley Road Surface Transportation Program (STP) project. • Ongoing project management for the Barreville Road STP project selected in the Spring of 2022 Council of Mayors call for projects. • Successful award of Illinois Transportation Enhancement Program grant funding for Illinois Route 31 sidewalks and street lighting. • Ongoing project management for the Oakwood Drive bridge rehabilitation including completing the Qualifications Based Selection (QBS) selection process. • Successful completion and/or award of grants totaling $7,756,000 over the last 5 years for the following projects: Green Street-STP (2023) $919,000; Bull Valley Road-STP (2024) $262,000; Barreville Road (2027) $709,000; IDNR Boat Launch Paving (2024) $150,000; Oakwood Drive Bridge (2026) $631,000; Bull Valley Road Bridge (2028) $1,368,000; Route 31 Sidewalk & Lighting ITEP (2028) $2,517,000, Oak/Industrial/Orleans Resurfacing-STP (2029) $1,200,000. 150150153 Public Works Administration – FY25/26 Goals & Objectives • Provide effective communication with the City residents about the various Public Works projects, programs, and services. • Ongoing management of the City’s refuse collection contract, leaf pickup, yard waste, and e-waste/Christmas lights recycling programs. • Provide responsible financial management while maintaining existing Public Works services. • Continue electronic archiving efforts to fully digitize existing paper records into a searchable electronic record. • Continued implementation of an annual road resurfacing program of more than $2.0 million including successful management and completion of a $2.0 million program in 2025. • Provide project management and oversight for the Venice Avenue Reconstruction Project. • Year 4 implementation of the 20-year Community Investment Plan adopted by City Council in January of 2022. • Ongoing project management with the Village of Prairie Grove for the Barreville Road STP Project. • Completion of and project management for the Oakwood Drive Bridge Project. • Project management, coordination with City Departments, and final plan delivery for the Riverside Drive Streetscape Improvements Project. • Ongoing project management and securing of easements for the design and construction of the Mill Street, Broad Street, and Richmond Road Water Main Replacement projects (FY22/23 Water Main Replacement Program). • Continued project management of design services for utility relocation associated with the future reconstruction of Illinois Route 31. • Select a consultant and commence with the design of the Water Treatment Plant #5 located on the east side of the Fox River. • Continued implementation and maintenance of OHSA Safety Programs & Policies for all Local 150 and Public Works staff. 151151154 Public Works Administration – FY25/26 Performance Measures Performance Item Performance Goal Performance Measure FY25/26 Proposed Outcome(s) Capital Improvement Program (CIP) Develop an updated CIP and transmit to Finance and Administration Department Was the CIP updated and transmitted to the Finance and Administration Department by the due date? All deadlines are met Annual Budget Develop and present an operating budget to the Finance and Administration Department Was the operating budget transmitted to the Finance and Administration Department by the due date? All deadlines are met Resident Complaints/Inquires Respond to a resident complaint or inquiry within one working day from receipt % of time that Public Works Department staff responds within one day Respond to resident complaints/inquiries within one working day 100% of the time throughout the year Request for Proposals (RFP) Development Develop all RFP’s for Engineering Services and for Construction projects for which the City performs “in house” engineering services Status of RFP’s for budgeted projects All RFP’s completed, issued, and contracts awarded for projects in current budget year Project Management Manage City Engineering and Construction Projects and assure projects are completed on time and on budget Schedule and Budget status of City Engineering and Construction Projects All Engineering and Construction Projects completed on time and on budget Contract Enforcement Assure that City Engineering and Construction Projects are completed in accordance with contract documents and scope of services Quality Assurance of City Engineering and Construction Projects All contract work and scope items are completed in accordance with contract provisions Permit Reviews Review and issue utility permit applications and assure that City infrastructure is undamaged or is fully restored upon completion of permit work Status of issued permit All issued permits are completed and closed per the terms of the original permit application. No/minimal outstanding permits. Technical Support for Maintenance Staff Provide all requested technical support for Maintenance Superintendents, and Supervisors Completion status of requests for technical assistance All requests for technical assistance are completed on an “as needed” basis Financial Management Efficient management of all operating fund accounts Final Operating Expenditures relative to budgeted operating expenditures All operating funds are at or below the approved operating budget and/or overages are documented and justified 152152155 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 AB CDEFGHIJ Account Account FY21/22 FY22/23 FY23/24 FY24/25 FY24/25 FY25/26 Number Description Actual Actual Actual Budget Estimated Proposed Salaries/Benefits 4010 Salaries 295,606 340,257 331,610 343,439 350,012 370,901 27,462 8.00% 4050 Overtime - - - - - - - #DIV/0! 4110 Salaries - PT Seasonal 5,704 13,173 - 10,000 - 10,000 - 0.00% 4310 Health Insurance 22,943 21,655 25,044 31,983 27,498 34,353 2,370 7.41% 4320 Dental Insurance 1,097 1,417 2,116 2,396 2,240 2,334 (62) -2.59% 4330 Life Insurance 171 211 126 153 151 153 - 0.00% 4340 Vision Insurance 193 191 175 195 185 190 (5) -2.56% 4410 FICA Medicare 22,862 25,919 24,929 27,038 26,144 29,139 2,101 7.77% 4420 IMRF Retirement 34,605 35,104 31,077 32,936 32,800 36,052 3,116 9.46% 4510 Uniform Allowance - - 107 500 - 500 - 0.00% TOTAL SALARIES/BENEFITS 383,181 437,927 415,184 448,640 439,030 483,622 34,982 7.80% Contractual Services 5110 Contractual 12,170 28 28 - 57 - - #DIV/0! 5310 Postage and Meter 568 66 683 200 535 200 - 0.00% 5410 Dues 866 823 250 500 846 500 - 0.00% 5420 Travel Expense - - - 1,700 594 2,700 1,000 58.82% 5430 Training - 125 2,100 1,500 1,590 4,500 3,000 200.00% 5440 Tuition Reimbursement 1,564 3,000 - - - - - #DIV/0! TOTAL CONTRACTUAL SERVICES 15,168 4,042 3,061 3,900 3,622 7,900 4,000 102.56% Supplies 6210 Office Supplies 750 508 498 500 - 500 - 0.00% 6270 Small Equipment - - - - - - - #DIV/0! 6950 Forestry 8 34 - - - - - #DIV/0! TOTAL SUPPLIES 758 542 498 500 - 500 - 0.00% Other 9920 Purchase of Service - Risk Management 13,384 17,084 20,916 20,916 20,916 20,916 - 0.00% 9922 Purchase of Service - IT 29,271 31,309 37,751 44,818 44,818 46,168 1,350 3.01% TOTAL OTHER 42,655 48,393 58,667 65,734 65,734 67,084 1,350 2.05% TOTAL PUBLIC WORKS - ADMINISTRATION 441,762 490,904 477,410 518,774 508,386 559,106 40,332 7.77% Variance ($) Variance (%) Public Works Administration ‐ Fund Summary (Fund 100, Department 30) 153153156 Fiscal Year 2025/2026 Annual Budget Public Works Street Division 154154157 Public Works Street Division - Overview Public Works Street Division Mission It is the mission of the Street Division to support and enhance a high quality of life for the City’s residents, businesses, and visitors by providing a well-planned, environmentally sensitive, and cost-effective infrastructure through superb customer service. In addition, the division will provide residents with a quality urban forestry program which is cost effective and acts as a responsible steward for the natural resources of the community. The functions of the Street Division include street cleaning, street maintenance, responding to all resident requests, and snow and ice removal. All City-owned vehicles and various pieces of equipment are repaired and maintained at the Public Works Facility with two full-time mechanics. The division also maintains public sidewalks and curbs. The Street Division provides residents with cost effective and quality urban forestry services and delivers responsible stewardship for the natural resources of the community. The arborist’s crews utilize professional management practices in tree planting, maintenance, and removal to improve the quality of the urban tree canopy. In summary, Street Division employees undertake the following tasks: • Remove snow, control ice, conduct street cleaning, and perform other necessary miscellaneous repairs. • Repair and maintenance of all City-owned vehicles and various equipment with two full-time mechanics. • Monitoring and maintenance of City streetlights and signals by a private contractor. • Maintenance of City streets by filling potholes and patching. • Monitor creek levels and maintenance of channels to prevent flooding. • Advise and consult with the Department Director regarding fleet and infrastructure needs and responses to service requests. • Tree planting, maintenance and removal, completion of tree inventories, performance of tree surveys for insect, disease and any hazardous tree problems, administration of the City Arbor Day Program, maintenance of the City’s status in the Tree City USA and Growth Awards Program. Coordinate with other City departments, community groups and volunteers on tree related issues, and oversight of the Tree Preservation Ordinance for compliance. • Oversight of the mowing contract for City properties. 155155158 Public Works Street Division – Organizational Chart In May of 2020, the Public Works Department combined the Street Division and the Utility Division into the Street & Utility Division. Combining the two divisions into one was done to further utilize City personnel for daily operations. Street-related operations are solely funded through the General Fund while Utility-related operations are funded through both the Water/Sewer Fund and the General Fund. The hours worked and expenses for FY25/26 have been properly separated by Fund to account for the amount budgeted annually. Street & Utility Superintendent Doug Mace Crew Leader & Arborist Mike Harper Maintenance Worker IV Tim Lechner Maintenance Worker IV Henry Lobermeier Maintenance Worker II Nate Banwart Maintenance Worker II Sam Burrafato Maintenance Worker II Robert Glascott Maintenance Worker II Nick Goettsche Maintenance Worker II Chris Sandoz Maintenance Worker I Jimmy Santiago Crew Leader Pat Maher Maintenance Worker III Ryan Cheney Maintenance Worker III Paul Clements Maintenance Worker III Todd Sasak Maintenance Worker II Clint Greve Maintenance Worker I Sean Kelly Maintenance Worker I Kegan Marcoux Mechanic II Ron Barta Mechanic II Jason Lamz 156156159 Public Works Street Division - FY24/25 Accomplishments • Maintained level of service while reducing personnel costs through an ongoing staff attrition process. • Replaced 80 signs throughout the City through the Sign Replacement Program. • Completed the bi-annual brush pick-up program. • Completed 88 ADA ramps and concrete curbs in advance of the 2025 Road Resurfacing Program. • Removed brush and cleared the Lakeland Park Drainage Ditch of excess vegetation. • Fleet maintenance staff performed ongoing maintenance of City-owned vehicles and equipment. • Division staff performed ongoing right-of-way maintenance including parkway restoration, mowing, and creek cleaning. • Staff successfully completed snow removal, ice control, and street cleaning in addition to making miscellaneous repairs. • 300 City trees were trimmed by staff and 800 contracted trees were trimmed in various locations throughout City rights-of-way. • 34 trees were removed in 2024 by City personnel and 10 trees were contracted for removal. • 44 trees were planted throughout the city. • Contracted for City-owned-street pavement marking program. Striping took place in various parts of town, striping stop bars, crosswalks, and longitudinal lines. • Completion of the ADA sidewalk survey. 157157160 Public Works Street Division – FY25/26 Goals & Objectives • Continue to provide a quality level of service that meets the needs of the community. • Address all snow and ice events by clearing roadways to ensure safe travel on City streets. • Maintain the City’s fleet to ensure efficient operations and maximize fleet service life. • Repair and maintain City streets by dedicating personnel to patch grind and pothole repair. • Continued successful performance of mowing of the City’s right-of-way and property in a timely fashion. • Successfully respond to all resident requests in a timely manner. • Continue a 5-year striping program interval for all neighborhood crosswalks and stop bars not currently on a schedule. • Continue a 10-year Sign Replacement Program. • Inspect and maintain the City-owned street light systems. • Continued assistance with the preparation for Fiesta Days, 4th of July activities, and other City festivals. • Plant five trees for the City Arbor Day celebration, ten trees within the City Park System, and 50 trees in City parkways. • Successfully assist Developers with tree plantings in new subdivisions on an as-needed basis. • Continue implementation of the 5-year pruning rotation in City parks and City parkways. • Identify hazardous trees for removal and remove other trees as required. • Continue to monitor for Emerald Ash Borer, Gypsy Moth, and Japanese Beetle. • Manage contracted services agreements. • Assist with the administration of Capital Improvement Projects including the 2025 Road Resurfacing Program. • Road program culvert replacements: o White Oak Drive/ White Oak Court o Timber Trail/ Ridge Way • Complete the ADA sidewalk survey for IDOT ADA transition plan. 158158161 Public Works Street Division – FY25/26 Performance Measures Performance Item Performance Goal Performance Measure FY25/26 Proposed Outcome(s) Internal Training Provide all necessary training for all division employees each year Was all training required for the year completed? Staff is fully prepared for work. Work related injuries are minimized. Street Sweeping Sweep 121 center lane miles per year Number of sweeping cycles completed Clean streets & well-functioning closed drainage systems Sidewalk Maintenance Repair all uneven sidewalk panels identified through sidewalk survey Number of locations completed and outstanding locations Safer sidewalks for residents Asphalt Maintenance Pothole and spot patching Were all necessary road repairs made? Safe roads, well maintained roads, and cost-effective roadway maintenance Road Resurfacing Program Support ADA ramp installation All ADA ramps in next year’s Road Program All ADA ramps in next year’s Road Program in advance of the bidding process. Drainage Maintenance Provide all necessary ditching and creek maintenance to prevent flooding Repairs completed and outstanding necessary repairs Well maintained creeks and drainage ways which reduce the City’s risk of flooding ADA Sidewalk Survey Perform ADA sidewalk survey Completion of ADA sidewalk survey for City sidewalks Complete IDOT ADA transition plan Manage Woodland Areas Creek Maintenance/Controlled burns One prescribed burn/all creeks maintained Successful maintenance of the City’s natural areas/preserve creeks 159159162 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 AB CDEFGHIJ Account Account FY21/22 FY22/23 FY23/24 FY24/25 FY24/25 FY25/26 Number Description Actual Actual Actual Budget Estimated Proposed Salaries/Benefits 4010 Salaries 998,542 1,006,215 1,045,118 1,096,833 1,093,844 1,120,431 23,598 2.15% 4050 Overtime 14,825 15,542 16,178 17,500 16,454 17,500 - 0.00% 4060 Overtime - Snow Removal 45,106 54,869 28,283 72,500 39,798 60,000 (12,500) -17.24% 4110 Salaries - PT Seasonal 8,184 13,862 18,533 15,000 11,760 15,000 - 0.00% 4310 Health Insurance 307,395 335,649 349,993 360,825 382,778 395,713 34,888 9.67% 4320 Dental Insurance 1,320 1,409 1,584 1,941 1,947 1,892 (49) -2.52% 4330 Life Insurance 746 919 643 663 651 663 - 0.00% 4340 Vision Insurance 187 216 218 220 209 214 (6) -2.73% 4410 FICA Medicare 78,694 79,683 82,244 91,940 83,557 92,789 849 0.92% 4420 IMRF Retirement 120,770 108,632 100,690 113,817 102,453 116,439 2,622 2.30% 4510 Uniform Allowance 9,323 10,707 11,511 8,125 8,125 7,950 (175) -2.15% TOTAL SALARIES/BENEFITS 1,585,092 1,627,703 1,654,995 1,779,364 1,741,576 1,828,591 49,227 2.77% Contractual Services 5110 Contractual 173,671 156,332 238,010 319,200 313,089 307,200 (12,000) -3.76% 5300 Contractual Street Resurfacing - 543,322 348,902 699,770 688,813 815,000 115,230 16.47% 5301 Contractual Street Resuracing Township - 300,000 300,000 300,000 300,000 300,000 - 0.00% 5370 Repair & Maintenance 149,638 152,333 127,405 170,000 102,263 150,000 (20,000) -11.76% 5430 Training Reimbursement 820 968 268 1,500 960 1,500 - 0.00% 5440 Tuition Reimbursement 3,000 3,000 3,000 3,000 - 3,000 - 0.00% 5510 Utilities - - - - - - - #DIV/0! 5520 Street Lighting 264,809 283,633 298,430 290,000 249,246 300,000 10,000 3.45% TOTAL CONTRACTUAL SERVICES 591,938 1,439,588 1,316,015 1,783,470 1,654,371 1,876,700 93,230 5.23% Variance ($) Variance (%) Public Works Streets ‐ Fund Summary (Fund 100, Department 33) 160160163 1 2 3 4 AB CDEFGHIJ Account Account FY21/22 FY22/23 FY23/24 FY24/25 FY24/25 FY25/26 Number Description Actual Actual Actual Budget Estimated Proposed Variance ($) Variance (%) Public Works Streets ‐ Fund Summary (Fund 100, Department 33) 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 Supplies 6110 Materials & Supplies 273,606 282,201 317,938 305,000 265,467 264,000 (41,000) -13.44% 6210 Office Supplies 495 853 500 500 249 500 - 0.00% 6250 Gasoline & Oil 74,562 66,923 65,534 70,000 52,799 65,000 (5,000) -7.14% 6270 Small Equipment 1,270 2,352 2,022 2,000 1,490 6,000 4,000 200.00% 6290 Safety Equipment 51 1,811 332 1,000 1,360 5,000 4,000 400.00% 6950 Forestry 146,750 143,483 155,334 155,000 142,155 155,000 - 0.00% TOTAL SUPPLIES 496,734 497,623 541,660 533,500 463,520 495,500 (38,000) -7.12% Other 9920 Purchase of Service - Risk Management 88,088 112,608 137,864 137,864 137,864 137,864 - 0.00% 9922 Purchase of Service - IT 21,340 21,525 25,921 30,744 30,744 31,665 921 3.00% TOTAL OTHER 109,428 134,133 163,785 168,608 168,608 169,529 921 0.55% Capital Outlay - #DIV/0! 8300 Capital - Equipment - - 9,880 - - - - #DIV/0! 8400 Capital - Vehicle - - - - - - - #DIV/0! 8600 Capital - Streets 476,687 12,876 - - - - - #DIV/0! TOTAL CAPITAL OUTLAY 476,687 12,876 9,880 - - - - #DIV/0! TOTAL PUBLIC WORKS - STREETS 3,259,879 3,711,923 3,686,335 4,264,942 4,028,075 4,370,320 105,378 2.47% 161161164 Fiscal Year 2025/2026 Annual Budget Parks and Recreation 162162165 Parks and Recreation - Overview Mission It is the mission of the Parks and Recreation Department to provide planned recreation programs and maintain facilities and parks to meet the recreational and park facility needs of the public, recognizing that leisure activities, facilities, and open spaces are important to individuals, families, and community life. The Recreation Division of the Parks and Recreation Department consists of five full-time personnel. Director of Parks and Recreation Bill Hobson works alongside Athletics and Aquatics Supervisor Nicole Thompson, Recreation Supervisor Cindy Witt, Fitness Coordinator Becky Moore and Recreation Program Specialist Mannon Amelio to coordinate the various programs, events and services provided by the Department. Additionally, staff oversees the management of the McHenry Recreation Center, Petersen Beach and Merkel Aquatics Center facilities for the Department. The Parks Division, consisting of Superintendent of Parks and Downtown Maintenance Jeff Friedle, a Crew Leader and six (6) full-time Parks Maintenance Workers, maintain the City’s more than 650 acres of park space, contained in thirty-eight (38) municipally owned park sites. In addition, the Parks Division is responsible for maintaining the amenities of the City’s three downtown business districts – Riverside Drive, Green Street, and Main Street. 163163166 Parks and Recreation – Organizational Chart 164164167 Parks and Recreation – FY24/25 Accomplishments Recreation Center • Recreation Center memberships continued to rebound in 2024 from the significant Covid-related losses in 2020 and 2021. Membership totals have grown to nearly 1,300. These “active members” are paying members who are in an annual contract, in good standing, and do not include employees, punch pass holders or other short-term memberships. • There were over 86,000 check-ins in 2024, averaging over 7,200 check-ins per month. In 2024, the peak day was January 8, the first day of the new winter group fitness schedule. • The community rooms at the McHenry Recreation Center remained a popular choice for family and business events, being rented 72 times (up 24% from previous FY) for occasions such as birthdays, showers, seminars, meetings, and luncheons. Special Events • The Lakefront 5K and Fun Run grew in 2024 to nearly 250 participants. The Kids Fun Run caters to children aged 5-10. The event was relocated to Petersen Park. • The Big Wheels Race is gradually making a comeback, with around 40 children taking part. To boost participation, the event moved to the first Sunday of Fiesta Days and was well received. • Due to interest, the Gettin' Jiggy Puzzle Competition was held in the fall and spring and both were well received. Prizes for the event were sponsored by Twisted Limits Escape Rooms. • The Dad & Daughter Dance in February attracted a record turnout of over 600 attendees. As the most popular event of the year, the event was moved to a Saturday and split into two dances, one for younger children and one for older children. • Other holiday events throughout the seasons included the Halloween Monster Party, Santa’s Candy Cane Hunt, Letters from Santa, and Breakfast with the Bunny. Programs • Fifteen sessions of the Explorers Camp (ages 4-6) and sixteen sessions of the Snapology Classes (ages 4-6) took place at Veteran’s Memorial Park over the summer. Daily activities, arts & crafts, and games were organized around different themes. • The Summer Day Camp (ages 6-15) was highly successful at Knox Park, running for ten weeks with a full capacity of 150 campers each week. • The fall/spring dance program saw 125 students participating, with a dance recital scheduled for May 4 at McHenry High School West Campus. • Collaborative Programs with Local Businesses: o Rock ‘n’ Kids – Children’s music programs o Snapology of McHenry – Children’s programs, camps, & birthday parties 165165168 o Young Rembrandts – Children’s art & cartooning programs o Minds in Motion – Children's STEM programs & camps o Martin Lopez Academy – Violin lessons for ages 3-18 o Do Art Productions – Children’s drawing & cartooning programs o Chess Wizards – Children’s chess lessons & tournaments o Alicia Londos Painting Class – Adult & children guided painting workshops with different themes each session Field Trips • 35 Adult Field Trips were organized in partnership with Crystal Lake, Cary, and Barrington Park Districts, along with Lake in the Hills Parks and Recreation Department. These trips cater to adults and seniors, with at least two to three trips offered per month. Excursions include visits to theaters, musical productions, casinos, museums, historical tours, food tours, educational trips, and lunch outings. Athletics • We served 1,310 local youth through our sports programs during the last year. We continue to offer between 180-200 program session of athletics per year. • We continue to try offering new programs/leagues to the community with increased marketing efforts to try getting new programs off the ground. New offerings the last year included adult co-rec volleyball league, teen volleyball league, adult pickleball league, youth pickleball league, fall McHenry Instructional Basketball league, year-round horseback riding lessons, teen speed and agility training, fall men’s basketball league, women’s basketball leagues. • Our McHenry Instructional Basketball league went into its 7th year of operations. We had 230 children enrolled in the league from grades 1st through 8th. This year, we saw a 50-child increase in enrollment from the previous year. We tried adding a kindergarten league this year as well. • We ran a Fall McHenry Instructional Basketball league with 45 children this fall, and we look to grow the program next year as well. • We continue to have outside organizations reach out to utilize our athletic fields and explore expanded field rental opportunities. We saw increased usage of Knox Park ball fields by CTW and GRB Rays, including tournament usage at Shamrock, Knox, and Petersen. Our Sunday soccer league rental returned this summer after an absence. Field 2 at Petersen Park saw increased usage by NIMBL for their adult men’s baseball teams. Aquatics • The pool had a total of 9,616 visitors. This was an increase of 161 more visitors than the 2023 pool season. This is the highest attendance has been since we started tracking in 2017 which came in with 9,340 visitors. The beach had a total of 2,516 166166169 visits during the 2024 operating season. This was an increase of 163 more visitors than the 2023 beach season. The 2024 season was a 48% increase in attendance since we started tracking in 2017 which came in with 1,226 visitors. • This year, we moved all aquatic programs to the aquatic GL’s. This transition will help us in better tracking our cost correlating to programs operating in and around the pools. The biggest move was the transition of fall/winter swim team from athletics to aquatics. • We saw increases in revenue across the board in aquatics this year. We made minor increases in our program fees, daily visits, pool passes, and rentals to correlate with the continued increase of minimum wage. • We created new revenue streams through increased utilization of the high school pool. We offered year-round swim lessons which helps offer continuation to our summer swim lesson students. With this new offering, we were able to service 217 kids during the year and bring in $15,428 in revenue. The level 1 and level 2 lessons continue to max out every session. • Our swim team has seen an increase in numbers over the summer and fall/winter seasons. We had over 10 new swimmers this fall/winter that joined us from our summer swim lesson program. By offering swim lessons year-round, we continue to bring awareness to our swim team programs. The swim team athletes helped raise $7,000 in funds for the MMAC parent board non-profit which will be used to help offset season awards along with purchasing a new record board for the high school and possibly outdoor pool. • We serviced 477 children in our group swim lesson program, and 98 swimmers took advantage of our private lessons. Group lessons were down 92 enrollments from 2023. This could be a result of weather or vacations in early July. We did see an increase of 23 more students in private lessons than the previous summer. We saw an increase of $2,778 in total swim lesson revenue from the previous season. We continue to get positive feedback from surveys about the quality of instructors for our program. • We continue to navigate repairs and maintenance plans for our facilities as they continue to age and become outdated. Every year we focus on replacing a little bit at a time as we know that repairs will continue to come up. We didn’t incur any major repairs the last year, but we did complete some concrete work, floor restoration, minor chlorinator repairs, purchase of new ADA stairs, and main pump restoration. For the 2025 season, we are exploring the replacement of our chlorinator due to leaking from the current unit. Parks Improvements • The City partnered with the McHenry County Sherriff to construct a building to house the County Marine unit at Miller Riverfront Park. The intergovernmental cooperative 167167170 provides a home for the Marine unit with administrative building and boat slips. The agreement also provides a permanent public restroom on site. • Also at Miller Riverfront Park, the City of McHenry was awarded a $150,000 grant to pave the parking lot and gravel drive in. This improvement was the single most requested item at this park since the launch was opened. As a part of the paving project, parking lot lights were relocated as was a gazebo on the property. The gazebo is now immediately adjacent to the launch itself. Security cameras were also added to the park. • The City replaced basketball courts in parks at McHenry Shores Beach and the Kiwanis Tot Lot. Court sizes were increased and concrete was utilized for a longer lasting better surface. • The IDNR approached the City about a restoration project at the Wheeler Fen. The goal is to remove invasive species of vegetation and trees and replant native species. The Parks Department has been doing tree removals throughout the year. The IDNR has sprayed a large part of the property for Teasel and dedicated approximately $10,000 in contracted tree removal. A prescribed burn is planned for Spring 2025. • The City began the expansion of the concrete area adjacent to the skate park to accommodate the addition of 6 more pickleball courts. The courts are anticipated to be completed by May of 2025. • A contractor went through the entire skatepark and repaired the concrete then resealed the project. • Repairs and re-roofing occurred at shelters at Overton Park, Creekside and Jaycee Park. • A park space lease at Neumann Park allowed an abutting business to install decking and a brick patio. The patio connects to the Green Street sidewalk and is for public use as well. • Donor recognition signs were installed at Miller Point Park along with an electronic advertising and downtown wayfinding kiosk purchased by the Chamber of Commerce. • New decorative lighting was installed around the gazebo at Veteran’s Memorial Park. Brickwork was also installed around the base of the gazebo. • (8) decorative raised planting bed were installed at the Petersen Farm. The beds were rented as community gardens and sold out in their first year. The detached garage at the farm was re-roofed and resided this past year. • Significant maintenance occurred at Petersen Park in the last year: o Basketball backboards were replaced. o Benches along the lakes were repaired and reset. o Sand volleyball courts were renovated. 168168171 o A large amount of split rail fencing was repaired. o The lakefront area was cleared and cleaned. • New swings and play elements were installed at East Beach Park. The lakefront was also cleared and cleaned. • New docks were installed at the Lakeland Boat Launch and at West Beach Park. • City staff worked with a consultant to review the ponds at Whispering Oaks Park and develop a management plan for the future. • Cold Springs Park has begun a natural restoration through a volunteer effort led by The Land Conservancy. A small amount of progress has been made in the area surrounding the parking lot off of DePaul Court. Seven small Oak tree whips have been planted in the newly cleared area. • New split rail fencing was added to Fox Ridge Park West to increase the safety for children along the entry drive. • 550 Yards of Playground Mulch was spread throughout system playgrounds. • Two new Fire globes have been installed on the McHenry Riverwalk. 169169172 Parks and Recreation – FY25/26 Goals & Objectives • Complete and begin the implementation of the Parks and Recreation Department Master Plan. • Continue to improve the tool that was created and implemented in 2024 to track ongoing maintenance of the City’s parks and park amenities. • Evaluate and continue to improve key City events, including ShamRocks the Fox, Light the Night and the Summer Concert Series; collaborate closely with local user groups, service groups and businesses to increase engagement with McHenry’s fantastic public events. • Continue to offer and improve quality recreation programming for City residents. • Continue to develop relationships with school districts, chamber, and various social clubs in community. • Partner with McHenry area organizations to make active adults/seniors aware of inexpensive or subsidized programs. This will include Senior Service Associates, Inc. in Johnsburg and McHenry Public Library District. 170170173 Parks and Recreation – FY25/26 Performance Measures Item Goal Description FY25/26 Proposed Outcome(s) Marketing Measure the Department’s marketing success and effectiveness. Are the Department’s marketing efforts reaching the intended audience and which methods are most effective? February 2026 Technology Explore opportunities to improve customer service and department operations through the introduction of technological advancements. What technology are we utilizing and is it the most effective tool for the specific task? December 2025 Staff Development/Retention Invest in training, retention methods, staff recognition and cross training in order to develop staff workforce and reduce turnover/loss. How do we improve the performance of department staff? February 2026 Membership Rebuilding at Recreation Center Run professional Marketing campaigns with a wider reach to gain memberships. Continue to reach out to potential corporate partners. What is the value of a membership? Are we continuing to offer the most current group exercise classes? Are we maintaining a clean facility? January 2026 Partnerships Connect with partners and identify cross promotional opportunities to ensure that community residents are aware of existing offerings and enhance our reach. Who is offering what in our community? Is there an area that we are lacking? What materials are others putting out that we can have a presence in? September 2025 171171174 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 AB CDEFGHIJ Account Account FY21/22 FY22/23 FY23/24 FY24/25 FY24/25 FY25/26 Number Description Actual Actual Actual Budget Estimated Proposed Salaries/Benefits 4010 Salaries 348,005 397,350 297,009 299,575 298,936 314,743 15,168 5.06% 4030 Salaries - Part Time - - - 4,080 - 4,080 - 0.00% 4050 Overtime - - - - - - - #DIV/0! 4110 Salaries - Seasonal 269,981 288,241 336,257 338,000 395,144 430,532 92,532 27.38% 4150 Overtime - Seasonal 77 - 19 - - - - #DIV/0! 4310 Health Insurance 57,471 63,687 35,256 32,907 39,239 43,581 10,674 32.44% 4320 Dental Insurance 2,226 2,545 1,502 1,489 1,568 1,726 237 15.92% 4330 Life Insurance 721 922 189 179 176 179 - 0.00% 4340 Vision Insurance 310 362 257 253 263 273 20 7.91% 4410 FICA Medicare 45,992 51,199 47,821 49,087 50,904 57,326 8,239 16.78% 4420 IMRF Retirement 40,708 40,930 27,822 28,729 28,243 30,593 1,864 6.49% 4510 Uniforms 1,586 2,511 152 2,000 2,651 2,500 500 25.00% TOTAL SALARIES/BENEFITS 767,077 847,747 746,284 756,299 817,124 885,533 129,234 17.09% Contractual Services 5110 Contractual 128,083 157,417 166,750 151,400 187,205 173,615 22,215 14.67% 5310 Postage and Meter 6,634 4,960 6,068 6,500 7,602 6,500 - 0.00% 5330 Printing and Publishing 14,121 22,254 10,281 23,025 15,244 18,985 (4,040) -17.55% 5370 Repair and Maintenance - - - - - - - #DIV/0! 5410 Dues 136,853 134,028 139,274 164,682 153,472 177,495 12,813 7.78% 5420 Travel Expense 482 623 867 1,600 2,114 1,600 - 0.00% 5430 Training 4,069 6,625 7,501 7,220 6,370 8,570 1,350 18.70% 5440 Tuition Reimbursements - - - - - - - #DIV/0! 5450 Publications 386 437 464 - - 300 300 #DIV/0! 5510 Utilities 11,924 14,189 16,492 17,000 16,882 17,000 - 0.00% TOTAL CONTRACTUAL SERVICES 302,552 340,533 347,697 371,427 388,889 404,065 32,638 8.79% Variance ($) Variance (%) Parks and Recreation ‐ Fund Summary (Fund 100, Department 41‐44,46,47) 172172175 1 2 3 4 AB CDEFGHIJ Account Account FY21/22 FY22/23 FY23/24 FY24/25 FY24/25 FY25/26 Number Description Actual Actual Actual Budget Estimated Proposed Variance ($) Variance (%) Parks and Recreation ‐ Fund Summary (Fund 100, Department 41‐44,46,47) 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 Supplies 6110 Materials and Supplies 110,045 109,573 142,685 127,500 140,768 152,500 25,000 19.61% 6210 Office Supplies 1,633 1,732 965 2,000 862 1,500 (500) -25.00% 6250 Gasoline and Oil - - 170 - - - - #DIV/0! 6270 Small Equipment - 1,755 1,389 2,000 1,511 2,000 - 0.00% TOTAL SUPPLIES 111,678 113,060 145,209 131,500 143,141 156,000 24,500 18.63% Other 6920 Special Events 37,516 39,437 44,568 42,500 42,503 17,000 (25,500) -60.00% 9902 Transfer - Recreation Center 111,985 211,985 250,356 270,000 270,000 270,000 - 0.00% 9920 Purchase of Services - Risk Management 66,973 85,604 104,804 104,804 104,804 104,804 - 0.00% 9922 Purchase of Services - Information Tech 80,986 94,988 114,642 136,200 136,200 140,317 4,117 3.02% TOTAL OTHER 297,460 432,014 514,370 553,504 553,507 532,121 (21,383) -3.86% Capital Outlay 8300 Capital Expense - Equipment 5,517 20,818 11,534 - - 15,000 15,000 #DIV/0! 8400 Capital Expense - Vehicles - - - - - - - #DIV/0! 8700 Capital Expense - Park Improvements - - - - - - - #DIV/0! 8800 Public Improvements - - 2,800 40,000 - - (40,000) -100.00% TOTAL CAPITAL OUTLAY 5,517 20,818 14,334 40,000 - 15,000 (25,000) -62.50% TOTAL PARKS & RECREATION 1,484,284 1,754,172 1,767,894 1,852,730 1,902,661 1,992,719 139,989 7.56% 173173176 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 AB CDEFGHIJ Account Account FY21/22 FY22/23 FY23/24 FY24/25 FY24/25 FY25/26 Number Description Actual Actual Actual Budget Estimated Proposed Salaries/Benefits 4010 Salaries 544,611 569,728 710,613 728,706 747,480 738,435 9,729 1.34% 4050 Overtime 38,159 38,087 39,699 30,000 46,820 40,000 10,000 33.33% 4110 Salaries - Seasonal 37,665 37,000 42,928 43,800 47,793 45,000 1,200 2.74% 4150 Overtime - Seasonal 1,536 1,588 3,288 4,000 3,398 5,000 1,000 25.00% 4310 Health Insurance 173,978 183,340 229,422 230,348 236,845 250,447 20,099 8.73% 4320 Dental Insurance 1,101 1,134 2,258 2,396 2,075 1,892 (504) -21.04% 4330 Life Insurance - - 403 408 405 408 - 0.00% 4340 Vision Insurance 109 107 209 110 188 190 80 72.73% 4410 FICA Medicare 47,808 49,682 60,075 61,698 60,338 63,375 1,677 2.72% 4420 IMRF Retirement 69,569 63,764 70,990 72,760 72,357 75,664 2,904 3.99% 4510 Uniforms 2,992 3,648 3,943 4,000 3,964 4,000 - 0.00% TOTAL SALARIES/BENEFITS 917,528 948,078 1,163,828 1,178,226 1,221,663 1,224,411 46,185 3.92% Contractual Services 5110 Contractual 158,224 190,894 200,974 202,500 201,496 244,500 42,000 20.74% 5310 Postage and Meter - 15 - - 84 - - #DIV/0! 5370 Repair and Maintenance 29,807 15,078 13,949 13,000 20,474 13,000 - 0.00% 5430 Training 1,610 - 668 - 701 - - #DIV/0! 5510 Utilities 11,973 12,246 14,354 12,000 14,665 15,000 3,000 25.00% TOTAL CONTRACTUAL SERVICES 201,614 218,233 229,945 227,500 237,420 272,500 45,000 19.78% Supplies 6110 Materials and Supplies 98,646 116,491 109,833 143,000 142,825 167,000 24,000 16.78% 6210 Office Supplies 59 10 207 - - - - #DIV/0! 6250 Gasoline and Oil 18,043 28,830 23,103 25,000 32,001 30,000 5,000 20.00% 6270 Small Equipment 12,075 426 12,695 12,000 7,646 12,000 - 0.00% TOTAL SUPPLIES 128,823 145,757 145,838 180,000 182,472 209,000 29,000 16.11% TOTAL PARKS MAINTENANCE 1,247,965 1,312,068 1,539,611 1,585,726 1,641,555 1,705,911 120,185 7.58% Parks Maintenance ‐ Fund Summary (Fund 100, Department 45) Variance ($) Variance (%) 174174177 Fiscal Year 2025/2026 Annual Budget Special Revenue Funds 175175178 Fiscal Year 2025/2026 Annual Budget Tourism Fund 176176179 Tourism Fund – Overview The purpose of the Tourism Fund is to finance tourism-related promotions of the City of McHenry. Revenues of the Tourism Fund are derived from a 5% tax on hotel and motel room receipts. Expenditures currently include annual contributions to the Naturally McHenry County organization (formerly McHenry County Convention and Visitors Bureau), as well as funds for events like ShamRocks the Fox, Light the Night, the annual Fiesta Days fireworks, and Miller Point Concerts. There is also a transfer to the General Fund to assist with staffing, etc. for events funded out of the General Fund, such as Fiesta Days. During FY23/24, the Tourism Fund paid off the loan on the acquisition of the Green Street Parking Lot. 177177180 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 AB CDEFGHIJ Account Account FY21/22 FY22/23 FY23/24 FY24/25 FY24/25 FY25/26 Number Description Actual Actual Actual Budget Estimated Proposed 129,878 140,945 161,549 242,710 242,710 302,405 3142 Taxes - Hotel/Motel 185,360 199,517 218,972 210,000 205,584 210,000 - 0.00% 3210 Interest 3 141 752 5,000 571 3,000 (2,000) -40.00% 3220 CD Interest 30 280 1,115 - 454 - - #DIV/0! 3240 IL Funds Interest 81 2,984 5,247 - 5,334 - - #DIV/0! 3890 Miscellaneous Income 71,216 73,502 113,100 60,000 32,000 75,000 15,000 25.00% 3911 Loan Proceeds - - - - - - - #DIV/0! TOTAL REVENUES 256,690 276,424 339,186 275,000 243,943 288,000 13,000 4.73% Contractual Services 5110 Contractual 79,403 89,600 92,075 100,000 72,748 137,000 37,000 37.00% TOTAL CONTRACTUAL SERVICES 79,403 89,600 92,075 100,000 72,748 137,000 37,000 37.00% Other 7600 Loan Interest 6,453 4,006 1,473 - - - - #DIV/0! 7610 Loan Principal Payment 60,767 63,214 65,477 - - - - #DIV/0! 8100 Land Aqusition - - - - - - - #DIV/0! 9901 Transfer to General Fund 99,000 99,000 99,000 111,500 111,500 100,000 (11,500) -10.31% TOTAL OTHER 166,220 166,220 165,950 111,500 111,500 100,000 (11,500) -10.31% TOTAL EXPENDITURES 245,623 255,820 258,025 211,500 184,248 237,000 NET INCREASE/(DECREASE)11,067 20,604 81,161 63,500 59,695 51,000 140,945 161,549 242,710 306,210 302,405 353,405 Ending Fund Balance Variance ($) Variance (%) Tourism ‐ Fund Summary (Fund 200, Department 00) REVENUES EXPENDITURES Beginning Fund Balance 178178181 Fiscal Year 2025/2026 Annual Budget Pageant Fund 179179182 Pageant Fund – Overview The purpose of the Pageant Fund is to account for revenues and expenditures used to conduct the annual Miss McHenry Pageant. The pageant, a community tradition for 60 years, is conducted annually. Female contestants between the ages of 16 and 20, living within the boundaries of the McHenry District 156 school district and having a McHenry address, are eligible to participate. Revenues are derived from sponsors and other donations. Expenditures are directly related to holding the pageant. 180180183 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 AB CDEFGHIJ Pageant ‐ Fund Summary (Fund 205, Department 00) Account Account FY21/22 FY22/23 FY23/24 FY24/25 FY24/25 FY25/26 Number Description Actual Actual Actual Budget Estimated Proposed 1,953 1,946 1,953 1,953 1,953 5,490 3210 Interest Income - 7 9 - 11 - - #DIV/0! 3890 Miscellaneous Income - - - 4,000 5,579 5,000 1,000 25.00% TOTAL REVENUES - 7 9 4,000 5,590 5,000 1,000 25.00% Contractual Services 5110 Contractual - - 9 1,500 - 2,000 500 33.33% 5310 Postage & Meter 7 - - - 20 - - #DIV/0! TOTAL CONTRACTUAL SERVICES 7 - 9 1,500 20 2,000 500 33.33% Other 6940 Administrative Expenses - - - 2,500 2,033 3,000 500 20.00% TOTAL OTHER - - - 2,500 2,033 3,000 500 20.00% TOTAL EXPENDITURES 7 - 9 4,000 2,053 5,000 NET INCREASE/(DECREASE)(7) 7 - - 3,537 - 1,946 1,953 1,953 1,953 5,490 5,490 Ending Fund Balance Variance ($) Variance (%) Beginning Fund Balance REVENUES EXPENDITURES 181181184 Fiscal Year 2025/2026 Annual Budget Band Fund 182182185 Band Fund – Overview The purpose of the Band Fund is to finance and account for expenditures incurred for the provision of summer concerts by the municipal band and local contracted bands to promote culture and recreation in McHenry. Revenues are derived through a transfer from the General Fund, and expenditures are related to stipends paid to the members of the band as well as payments to contracted bands. 183183186 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 AB CDEFGHIJ Account Account FY21/22 FY22/23 FY23/24 FY24/25 FY24/25 FY25/26 Number Description Actual Actual Actual Budget Estimated Proposed 24,646 13,294 11,040 11,040 10,233 11,710 3210 Interest Income 2 27 30 - 39 - - #DIV/0! 3220 CD Interest 3 27 107 - 15 - - #DIV/0! 3975 Transfer From General Fund - 12,000 12,000 12,000 12,000 12,000 - 0.00% TOTAL REVENUES 5 12,054 12,137 12,000 12,054 12,000 - 0.00% Contractual Services 5110 Contractual 11,357 14,308 12,944 15,000 10,577 15,000 - 0.00% TOTAL CONTRACTUAL SERVICES 11,357 14,308 12,944 15,000 10,577 15,000 - 0.00% Other 6110 Materials & Supplies - - - - - - - #DIV/0! 6940 Administrative Expenses - - - - - - - #DIV/0! TOTAL OTHER - - - - - #DIV/0! TOTAL EXPENDITURES 11,357 14,308 12,944 15,000 10,577 15,000 NET INCREASE/(DECREASE)(11,352) (2,254) (807) (3,000) 1,477 (3,000) 13,294 11,040 10,233 8,040 11,710 8,710 Ending Fund Balance EXPENDITURES Variance ($) Variance (%) Band ‐ Fund Summary (Fund 210, Department 00) Beginning Fund Balance REVENUES 184184187 Fiscal Year 2025/2026 Annual Budget Civil Defense Fund 185185188 Civil Defense Fund – Overview The Civil Defense Fund accounts for the training of personnel and the purchase and maintenance of equipment needed to protect and defend the City from natural disasters or man-made environmental disasters through early warning and public notification systems. Revenues are derived from a General Fund transfer, and expenditures are as needed. 186186189 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 AB CDEFGHIJ Account Account FY21/22 FY22/23 FY23/24 FY24/25 FY24/25 FY25/26 Number Description Actual Actual Actual Budget Estimated Proposed 8,640 10,091 8,148 6,209 6,209 5,580 3210 Interest Income 1 42 44 - 34 - - #DIV/0! 3975 Transfer From General Fund 6,000 4,000 4,000 6,000 6,000 6,000 - 0.00% 3999 Transfer from Other Funds - - - - - 17,000 17,000 #DIV/0! TOTAL REVENUES 6,001 4,042 4,044 6,000 6,034 23,000 17,000 283.33% 5375 Repair & Maintenance 4,550 5,985 5,983 6,000 6,663 6,000 - 0.00% 8300 Capital - Equipment - - - - - 17,000 17,000 #DIV/0! TOTAL EXPENDITURES 4,550 5,985 5,983 6,000 6,663 23,000 17,000 283.33% NET INCREASE/(DECREASE)1,451 (1,943) (1,939) - (629) - 10,091 8,148 6,209 6,209 5,580 5,580 Ending Fund Balance Civil Defense ‐ Fund Summary (Fund 220, Department 00) Variance ($) Variance (%) REVENUES EXPENDITURES Beginning Fund Balance 187187190 Fiscal Year 2025/2026 Annual Budget Alarm Board Fund 188188191 Alarm Board Fund – Overview The Alarm Board Fund is to pay for the maintenance of radios and “head-end” equipment in the municipal 911 dispatch center (NERCOM). This equipment comprises the City’s direct connect radio fire alarm monitoring network. City businesses which are required, by building code, to have a fire alarm monitoring system are required to be monitored via direct connection to NERCOM. This direct connection helps to ensure a more efficient emergency response. 189189192 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 AB CDEFGHIJ Account Account FY21/22 FY22/23 FY23/24 FY24/25 FY24/25 FY25/26 Number Description Actual Actual Actual Budget Estimated Proposed 870,026 985,779 1,106,887 1,231,245 1,231,245 1,374,158 3210 Interest Income 104 3,147 4,472 6,000 3,437 7,500 1,500 25.00% 3240 IL Fund Interest 82 3,183 6,914 - 6,782 - - #DIV/0! 3895 Alarm Board Revenue 221,866 229,742 234,039 225,000 243,081 235,000 10,000 4.44% TOTAL REVENUES 222,052 236,072 245,425 231,000 253,300 242,500 11,500 4.98% 5110 Contractual 106,299 114,964 121,067 125,000 110,387 125,000 - 0.00% 8300 Capital Expense - Equipment - - - - - - - #DIV/0! 9947 Transfer to Other Fund 0 - - - - 17,000 17,000 #DIV/0! TOTAL EXPENDITURES 106,299 114,964 121,067 125,000 110,387 142,000 17,000 13.60% NET INCREASE/(DECREASE)115,753 121,108 124,358 106,000 142,913 100,500 985,779 1,106,887 1,231,245 1,337,245 1,374,158 1,474,658 EXPENDITURES Ending Fund Balance Variance ($) Variance (%) Alarm Board ‐ Fund Summary (Fund 225, Department 00) Beginning Fund Balance REVENUES 190190193 Fiscal Year 2025/2026 Annual Budget Audit Fund 191191194 Audit Fund – Overview The purpose of the Audit Fund is to account for expenses incurred to complete the annual audit of the City’s financial statements. The State of Illinois requires that the City of McHenry conduct an independent audit on an annual basis. Statutes provide authority for an entity to levy a portion of the property tax to pay for the audit. Since the authority to levy a property tax for the audit is separate from the authority to levy the corporate rate, the levy amount for the annual audit is deposited into a separate fund and kept segregated from the General Fund receipts. 192192195 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 AB CDEFGHIJ Account Account FY21/22 FY22/23 FY23/24 FY24/25 FY24/25 FY25/26 Number Description Actual Actual Actual Budget Estimated Proposed 4,618 (4,198) (26) (2,876) (2,876) (1,771) 3010 Property Tax Collections 26,313 26,275 26,339 26,426 26,347 26,426 - 0.00% 3210 Interest Income - 13 3 - 3 - - #DIV/0! 3220 CD Interest 1 9 34 - 5 - - #DIV/0! 3970 Charges for Services 16,145 29,700 22,124 27,450 27,450 30,540 3,090 11.26% TOTAL REVENUES 42,459 55,997 48,500 53,876 53,805 56,966 3,090 5.74% 5110 Contractual 51,275 51,825 51,350 53,500 52,700 53,985 485 0.91% TOTAL EXPENDITURES 51,275 51,825 51,350 53,500 52,700 53,985 485 0.91% NET INCREASE/(DECREASE)(8,816) 4,172 (2,850) 376 1,105 2,981 (4,198) (26) (2,876) (2,500) (1,771) 1,210 EXPENDITURES Ending Fund Balance Variance ($) Variance (%) Audit ‐ Fund Summary (Fund 230, Department 00) Beginning Fund Balance REVENUES 193193196 Fiscal Year 2025/2026 Annual Budget Annexation Fund 194194197 Annexation Fund – Overview The Annexation Fund is a non-operating fund that is used to account for receipts from generally non-recurring revenue sources resulting from negotiated annexation agreements. Revenues include a fee assessed on gravel mining on a per ton basis; revenues from property being annexed into the City on an acreage and lot basis; and an additional per unit fee that is distributed to other taxing bodies. Expenses in the fund are related to improvements to infrastructure or municipal facilities. 195195198 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 AB CDEFGHIJ Account Account FY21/22 FY22/23 FY23/24 FY24/25 FY24/25 FY25/26 Number Description Actual Actual Actual Budget Estimated Proposed 823,041 963,178 1,106,727 1,252,772 1,252,772 1,340,435 3210 Interest Income 101 3,206 4,681 3,000 3,883 3,000 - 0.00% 3220 CD Interest 36 343 1,364 - 230 - - #DIV/0! 3715 Annexation Income - - - - (6,450) - - #DIV/0! 3720 Operating Fees - Annexation - - - - - - - #DIV/0! 3721 Operating Fees - District #15 - - - - - - - #DIV/0! 3722 Operating Fees - District #156 - - - - - - - #DIV/0! 3723 Operating Fees - Library - - - - - - - #DIV/0! 3724 Operating Fees - Fire - - - - - - - #DIV/0! 3745 Gravel Mining/Annexation Agreement 175,000 175,000 175,000 125,000 125,000 75,000 (50,000) -40.00% TOTAL REVENUES 175,137 178,549 181,045 128,000 122,663 78,000 (50,000) -39.06% 6970 Distributions - Schools - - - - - - - #DIV/0! 6980 Distributions - Library - - - - - - - #DIV/0! 6990 Distributions - Fire - - - - - - - #DIV/0! 9901 Transfer General Fund - - - - - - - #DIV/0! 9904 Transfer to Debt Service 35,000 35,000 35,000 35,000 35,000 35,000 - 0.00% 9942 Transfer Capital Improvement Fund - - - - - - - #DIV/0! TOTAL EXPENDITURES 35,000 35,000 35,000 35,000 35,000 35,000 - 0.00% NET INCREASE/(DECREASE)140,137 143,549 146,045 93,000 87,663 43,000 963,178 1,106,727 1,252,772 1,345,772 1,340,435 1,383,435 EXPENDITURES Ending Fund Balance Variance ($) Variance (%) Annexation ‐ Fund Summary (Fund 260, Department 00) Beginning Fund Balance REVENUES 196196199 Fiscal Year 2025/2026 Annual Budget Motor Fuel Tax Fund 197197200 Motor Fuel Tax Fund – Overview The purpose of the Motor Fuel Tax (MFT) Fund is to provide dedicated revenues from taxes on gasoline and diesel sales primarily to fund road improvements and maintenance. Motor Fuel Taxes are generated by a flat rate of cents per gallon. In 2021, the State of Illinois increased the monthly Municipal Motor Fuel Tax allotment by approximately 40%, bringing the City’s annual revenue to over $1.1 million. Beginning in FY22/23, the entirety of the Motor Fuel Tax revenue was dedicated to the Local Streets Resurfacing Program. These revenues, combined with the implementation of a Municipal Motor Fuel Sales Tax, dedication of all Township Road and Bridge Fund distributions, and the dedication of Street Division operating capital funds, have created a consistent annual program budget for the Local Streets Resurfacing Program. The Motor Fuel Tax Fund alone is budgeted for about $2.3 million for road improvements in FY25/26. Projects budgeted in FY25/26: Green St. STP Engineering (80% Reimbursed) $40,000 Green St. STP Construction $46,000 Bull Valley Rd. Engineering (80% Reimbursed) $25,000 Bull Valley Rd. Construction $22,000 Road Program $2,200,000 Total $2,333,000 198198201 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 AB CDEFGHIJ Account Account FY21/22 FY22/23 FY23/24 FY24/25 FY24/25 FY25/26 Number Description Actual Actual Actual Proposed Estimated Proposed 2,426,895 3,080,153 2,418,598 1,551,198 1,551,198 1,563,048 3150 MFT Allotments from State 1,128,538 1,139,143 1,196,826 1,183,086 1,224,331 1,214,020 30,934 2.61% 3155 Rebuild IL Grant 444,720 296,480 - - - - - #DIV/0! 3180 Grants - - - - - - - #DIV/0! 3210 Interest Income - - - - - - - #DIV/0! 3240 IL Fund Interest 2,025 55,730 71,965 60,000 45,650 35,000 (25,000) -41.67% 3882 Reimbursements - Misc - - - - - - - #DIV/0! 3886 Reimbursements - State 31,211 - 67,939 57,600 18,355 52,000 (5,600) -9.72% 3975 Transfer from General Fund - - - - - - #DIV/0! 3999 Transfer from Other Funds - - - - - - #DIV/0! TOTAL REVENUES 1,606,494 1,491,353 1,336,730 1,300,686 1,288,336 1,301,020 334 0.03% 6110 Materials & Supplies - 182 26 500 197 500 - 0.00% 8600 Streets 340,313 932,215 2,204,104 1,788,000 1,276,289 2,333,000 545,000 30.48% 8605 Streets - Rebuild IL Grant 528,368 1,220,511 - - - - - #DIV/0! 9901 Transfer to General Fund 84,555 - - - - - - #DIV/0! TOTAL EXPENDITURES 953,236 2,152,908 2,204,130 1,788,500 1,276,486 2,333,500 545,000 30.47% NET INCREASE/(DECREASE)653,258 (661,555) (867,400) (487,814) 11,850 (1,032,480) 3,080,153 2,418,598 1,551,198 1,063,384 1,563,048 530,568 EXPENDITURES Ending Fund Balance Variance ($) Variance (%) Motor Fuel Tax ‐ Fund Summary (Fund 270, Department 00) Beginning Fund Balance REVENUES 199199202 Fiscal Year 2025/2026 Annual Budget Local Motor Fuel Tax Fund 200200203 Local Motor Fuel Tax Fund – Overview The purpose of the Local Motor Fuel Tax (MFT) Fund is to provide dedicated revenues from taxes on gasoline and diesel sales primarily to fund contracted resurfacing projects. A Municipal Retail Motor Fuel Tax in the amount of $0.03 per gallon was approved in FY 20/21 and implemented in September 2020. These revenues, combined with the state Motor Fuel Tax, dedication of all Township Road and Bridge Fund distributions, and the dedication of Street Division operating capital funds, have created a consistent annual program budget for the Local Streets Resurfacing Program. The FY25/26 Local Motor Fuel Tax Fund budget includes $130,000 in street projects. Projects budgeted in FY25/26: Oakwood Dr. Bridge Construction $80,000 Barreville Rd. Engineering $50,000 Total $130,000 201201204 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 AB CDEFGHIJ Account Account FY21/22 FY22/23 FY23/24 FY24/25 FY24/25 FY25/26 Number Description Actual Actual Actual Budget Estimated Proposed 203,595 52,592 117,247 211,056 211,056 587,050 3160 Municipal Retail MFT Allotment 348,997 364,598 368,488 370,000 375,144 370,000 - 0.00% 3210 Interest Income - 57 321 - 850 - - #DIV/0! TOTAL REVENUES 348,997 364,655 368,809 370,000 375,994 370,000 - 0.00% 6110 Materials & Supplies - - #DIV/0! 8600 Streets 500,000 300,000 275,000 380,000 - 130,000 (250,000) -65.79% TOTAL EXPENDITURES 500,000 300,000 275,000 380,000 - 130,000 (250,000) -65.79% NET INCREASE/(DECREASE)(151,003) 64,655 93,809 (10,000) 375,994 240,000 52,592 117,247 211,056 201,056 587,050 827,050 Ending Fund Balance Local Motor Fuel Tax ‐ Fund Summary (Fund 275, Department 00) Variance ($) Variance (%) Beginning Fund Balance REVENUES EXPENDITURES 202202205 Fiscal Year 2025/2026 Annual Budget Developer Donation Fund 203203206 Developer Donation Fund – Overview The Developer Donation Fund is to account for donations collected from developers on behalf of the primary and secondary school districts, fire protection district, library district and the municipal park system. Developer Donations are collected to ensure the provision of public facilities to serve new development by requiring each new developer to pay a calculated share of the costs of such improvements as a condition of approval. By municipal ordinance, anyone applying for a building permit for a residential unit is required to pay fees for each unit constructed. Capital projects budgeted in FY25/26: Hickory Creek Farm Improvements $25,000 East Beach Picnic Pavilion $70,000 Cold Springs Park Planning & Design $36,000 Total $131,000 204204207 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 AB CDEFGHIJ Account Account FY21/22 FY22/23 FY23/24 FY24/25 FY24/25 FY25/26 Number Description Actual Actual Actual Budget Estimated Proposed 1,239,634 1,501,288 921,605 1,066,154 1,066,154 1,531,760 3775 Developer Donations - Schools 289,500 67,994 111,517 80,000 68,061 80,000 - 0.00% 3780 Devleoper Donations - Parks 764,352 139,283 460,720 200,000 356,285 200,000 - 0.00% 3785 Developer Donations - Library 129,584 19,224 92,204 50,000 55,180 50,000 - 0.00% 3790 Developer Donations - Fire District 129,584 19,224 92,204 50,000 55,180 50,000 - 0.00% 3180 Grants - - - 150,000 150,000 - (150,000) -100.00% 3210 Interest Income 141 2,900 3,827 8,000 2,249 10,000 2,000 25.00% 3220 CD Interest 115 1,086 4,316 - 1,598 - - #DIV/0! 3240 IL Fund Interest 291 9,381 17,283 - 17,266 - - #DIV/0! 3684 Boat Launch Revenues 43,558 44,995 53,092 50,000 50,325 50,000 - 0.00% 3815 Donations 197,700 - 75,000 - 305,001 - - #DIV/0! 3845 Rental Income 19,649 36,438 40,866 40,000 37,718 40,000 - 0.00% 3882 Reimbursements - Miscellaneous - - 155,581 411,517 266,014 - (411,517) -100.00% 3886 Reimbursements - State - - - - - - - #DIV/0! 3890 Miscellaneous Income 2,885 - - - - - - #DIV/0! TOTAL REVENUES 1,577,359 340,525 1,106,610 1,039,517 1,364,877 480,000 (559,517) -53.82% 6940 Administrative Expenses 11,325 17,064 7,709 12,500 14,194 15,000 2,500 20.00% 6970 Distributions - Schools 289,500 67,994 111,517 80,000 68,061 80,000 - 0.00% 6980 Distributions - Library 129,584 19,224 92,204 50,000 55,180 50,000 - 0.00% 6990 Distributions - Fire 129,584 19,224 92,204 50,000 55,180 50,000 - 0.00% 8100 Land Acquisition - - - - - - - #DIV/0! 8800 Park Playground Improvements 755,712 796,702 658,427 950,517 706,656 131,000 (819,517) -86.22% TOTAL EXPENDITURES 1,315,705 920,208 962,061 1,143,017 899,271 326,000 (817,017) -71.48% NET INCREASE/(DECREASE)261,654 (579,683) 144,549 (103,500) 465,606 154,000 1,501,288 921,605 1,066,154 962,654 1,531,760 1,685,760 EXPENDITURES Ending Fund Balance Variance ($) Variance (%) Developer Donation ‐ Fund Summary (Fund 280, Departments 00, 41) Beginning Fund Balance REVENUES 205205208 Fiscal Year 2025/2026 Annual Budget Tax Increment Finance Fund 206206209 Tax Increment Finance Fund – Overview The Tax Increment Finance (TIF) Fund accounts for revenues and expenditures related to the city’s Downtown Tax Increment Finance District, established in 2002. The TIF District was recently extended for an additional 12 years and is now scheduled to sunset in 2037. TIF revenues are derived from the collection of property taxes each year at an increment based on the increase in the assessed valuation of properties within the area since creation of the district. Expenditures are related to the repayment of private development “extraordinary costs” per approved development agreements and for public improvements within the district that increase the value of all properties within the area. The TIF Fund is a valuable tool to continue to attract development of key sites that were identified in the initial planning stages of the TIF District, including the Central Wastewater Treatment Plant site and the Central Green Street area. The TIF Fund is also targeted to accomplish the completion of the Riverwalk and the implementation of a streetscape program. Public Improvements budgeted in FY25/26: CWWTP Site Remediation Program $220,000 Downtown Parking Study $58,500 Venice Ave. Sewer Replacement $600,000 Riverwalk Re-Decking $130,000 Pedestrian Bridge Repair $30,000 Riverwalk Power Pole Burial (rebudget)* $42,718 Riverwalk Phase 4 (rebudget)* $181,427 Total $1,262,645 *Projects started in FY24-25 to be finalized in FY25-26 207207210 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 AB CDEFGHIJ Account Account FY21/22 FY22/23 FY23/24 FY24/25 FY24/25 FY25/26 Number Description Actual Actual Actual Budget Estimated Proposed 719,415 993,626 232,000 87,349 87,349 (211,596) 3010 Property Tax Collections 678,920 694,137 848,809 840,000 902,999 977,631 137,631 16.38% 3180 Grants - 178,164 8,947 - - - - #DIV/0! 3210 Interest Income 121 2,621 3,435 3,000 375 3,000 - 0.00% 3815 Donations - 20,000 450,000 - - - - #DIV/0! 3890 Miscellaneous Income 55,000 65,388 55,000 55,000 55,000 - (55,000) -100.00% TOTAL REVENUES 734,041 960,310 1,366,191 898,000 958,374 980,631 82,631 9.20% 5110 Contractual Services 9,525 108,966 63,740 10,000 25,352 30,000 20,000 200.00% 6940 Administrative Expenses 1,300 2,396 4,278 10,000 354 10,000 - 0.00% 8900 Public Improvements 224,170 1,384,839 1,221,289 1,545,586 1,004,383 1,262,645 (282,941) -18.31% 9901 Transfer to General Fund 2,500 2,500 2,500 2,500 2,500 2,500 - 0.00% 9904 Transfer to Debt Service 222,335 223,235 219,035 224,730 224,730 - (224,730) -100.00% TOTAL EXPENDITURES 459,830 1,721,936 1,510,842 1,792,816 1,257,319 1,305,145 (487,671) -27.20% NET INCREASE/(DECREASE)274,211 (761,626) (144,651) (894,816) (298,945) (324,514) 993,626 232,000 87,349 (807,467) (211,596) (536,110) EXPENDITURES Ending Fund Balance Variance ($) Variance (%) Tax Increment Finance ‐ Fund Summary (Fund 290, Department 00) Beginning Fund Balance REVENUES 208208211 Fiscal Year 2025/2026 Annual Budget Capital Projects & Debt Service Funds 209209212 Fiscal Year 2025/2026 Annual Budget Debt Service Fund 210210213 Debt Service Fund – Overview The Debt Service Fund accounts for the bonded indebtedness incurred by the City’s General Fund, including bond and interest payments. The City has the following outstanding bonds: Name Fund Description Payoff Date FY25/26 Amount Due 2015 GO Refunding Bonds (2007) GF Purchase of Public Works Garage 12/15/2027 $226,378 2012 GO Bonds GF Roof/HVAC Improvements at Public Works Garage 12/15/2027 $69,805 2013 GO Refunding Bonds GF Additional Funds for Roof/HVAC at Public Works Garage 5/1/2027 $37,406 2015 GO Refunding Bonds Rec Center Recreation Center Construction 12/15/2035 $131,469 2020B Taxable GO Bond Police Pension Police Pension Funding 12/30/2039 $1,664,558 211211214 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 AB CDEFGHIJ Account Account FY21/22 FY22/23 FY23/24 FY24/25 FY24/25 FY25/26 Number Description Actual Actual Actual Budget Estimated Proposed (226) 5,568 7,607 10,800 10,800 12,872 3210 Interest Income 4 1,106 990 - 941 - - #DIV/0! 3220 CD Interest 29 277 1,103 - 253 - - #DIV/0! 3910 Bond Proceeds - - - - - - - #DIV/0! 3915 Bond Interest Rebate 3,692 - - - - - - #DIV/0! 3966 Premium on Refunding - - - - - - - #DIV/0! 3969 TIF Fund Transfer 222,335 223,235 219,035 224,730 224,730 - (224,730) -100.00% 3971 Transfer from Annexation Fund 35,000 35,000 35,000 35,000 35,000 35,000 - 0.00% 3972 Transfer from Recreation Center Fund 133,956 132,156 130,356 133,511 133,511 131,469 (2,042) -1.53% 3975 Transfer from General Fund 1,850,272 1,850,765 1,853,842 1,851,523 1,851,523 1,855,727 4,204 0.23% 3978 Transfer from Water/Sewer Fund 108,763 110,269 111,707 111,283 111,283 112,420 1,137 1.02% 3986 Transfer from MFT Fund - - - - - - - #DIV/0! TOTAL REVENUES 2,354,051 2,352,808 2,352,033 2,356,047 2,357,241 2,134,616 (221,431) -9.40% 7100 Bond Principal 1,605,000 1,675,000 1,695,000 1,725,000 1,725,000 1,530,000 (195,000) -11.30% 7200 Bond Interest 741,326 672,471 650,942 627,049 627,049 599,616 (27,433) -4.37% 7300 Fees - Paying Agent 1,931 3,298 2,898 4,000 3,120 4,000 - 0.00% 7500 Bond Refunding - - - - - - - #DIV/0! TOTAL EXPENDITURES 2,348,257 2,350,769 2,348,840 2,356,049 2,355,169 2,133,616 (222,433) -9.44% NET INCREASE/(DECREASE)5,794 2,039 3,193 (2) 2,072 1,000 5,568 7,607 10,800 10,798 12,872 13,872 EXPENDITURES Ending Fund Balance Variance ($) Variance (%) Debt Service ‐ Fund Summary (Fund 300, Department 00) Beginning Fund Balance REVENUES 212212215 Fiscal Year 2025/2026 Annual Budget Recreation Center Fund 213213216 Recreation Center Fund – Overview In March 1999, the City Council passed a resolution stating that 50% of developer donation fees for parks were to be set aside for the construction of a recreation center. Consequently, the Recreation Center Fund was created to account for these donations. In addition, any future funding sources identified for the construction of the facility would be deposited in this fund and, further, the expenditure of funds for the construction of a recreation facility would be taken from this fund. In 2013 and 2014, City Council undertook a process to evaluate the feasibility of various options for recreation facilities, including the development of a family aquatics facility and/or a recreation center. Ultimately, it was determined that a recreation center should be the primary focus. Construction began in 2015, and the McHenry Recreation Center opened in February 2016. Construction was financed through a combination of cash payments from the Recreation Center Fund and the issuance of debt. This was done to ensure that funding remained in the Recreation Center Fund to cover any operating shortfalls, to serve as capital improvement funding for facility needs, or as seed money for future expansions of recreation facilities. The McHenry Recreation Center was negatively impacted by the COVID-19 pandemic; closures and restrictions led to a significant reduction in membership. Reserve funds were depleted as a result of reduced revenues. Staff has been engaged in a sustained effort to attract new members, and Recreation Center membership continues to increase. However, the recovery continues, since revenues are still not sufficient to fund day-to-day operations. 214214217 Recreation Center Fund – FY24/25 Accomplishments • Recreation Center memberships continued to rebound in 2024 from the significant Covid-related losses in 2020 and 2021. Membership totals have grown to nearly 1,300. These “active members” are paying members who are in an annual contract, in good standing, and do not include employees, punch pass holders or other short-term memberships. • There were over 86,000 check-ins in 2024, averaging over 7,200 check-ins per month. In 2024, the peak day was January 8, the first day of the new winter group fitness schedule. • The community rooms at the McHenry Recreation Center remained a popular choice for family and business events, being rented 72 times (up 24% from previous FY) for occasions such as birthdays, showers, seminars, meetings, and luncheons. • Group fitness class attendance has maintained consistent week over week. Average class numbers per week from May 2023 – April 2024 was around 720 participants. Since May 2024 – January 2025 numbers have remained close to the same with around 710 participants per week. • Group Fitness attendance from May 2024 – January 2025 – 24,879 visits (trending to be around 33,172 by May 2025) - Up 1,050 from last year. • The Recreation Center offers 56 group fitness classes per week ranging from strength, cardio, mind/body, barre, dance, kickboxing, HIIT, TRX, cycle and senior formats. The senior class formats have doubled from 4 to 8 in the last year. In addition to strength training and cardio drumming classes, new classes include TRX for active adults, chair yoga, active adult flexibility and the latest addition, S.E.A.T. The senior class population makes up 50% of all Recreation Center class attendance. • The group fitness staff heads up 4 holiday bootcamps per year for Rec Center members. The 1.5-hour bootcamps are well attended by members and non-members with around 50 people. Cardio Boxing is a specialized program that will start up in April of 2025. The program will run for 8 weeks and is a separate paid program to the group fitness schedule. • The Recreation Center’s 3 staffed personal trainers are currently seeing around 30 clients per week and maintaining new member equipment orientations and personal training consultations. • The first Friday of every month, the Rec Center hosts a potluck for senior “group x” members, which provides an opportunity to have lunch with their friends and provides a fun social atmosphere after their workout. • The Recreation Center serves as a hub for much more than simply a fitness center. The facility houses many classes and workshops. It also is a location that is rented out for any number of occasions to serve the McHenry community. 215215218 Recreation Center Fund – FY25/26 Goals & Objectives • Select consultant to complete an analysis of Recreation Center operations, marketing and programs. • Create a collaborative marketing plan for programs, events and facilities to increase community reach, efficiency, and return on investment. • Increase visitation at the Recreation Center, thereby increasing revenue. Hold quarterly free community fitness days to bring residents in and expose them to all the Rec Center has to offer. • Research trends, explore community partnerships and evaluate existing programs in an effort to consistently develop new programs and special events. • Enhance the Parks Department’s sponsorship program and apply it where applicable at the Recreation Center. 216216219 Recreation Center Fund – FY25/26 Performance Measures Item Goal Description FY 25/26 Proposed Outcome(s) Membership Retention To maintain a 60% fitness membership retention rate for the facility. Through outreach to members and continual update of offerings, the goal is to keep members engaged and interested. Membership loss is minimized and client base remains fairly constant. Sponsorship Further develop and apply a sponsorship program to the Recreation Center. In identifying a comprehensive sponsorship program, additional community connections will be created as well introducing additional revenue Fostering community partnerships and adding a revenue stream to the facility Membership Rebuilding Utilization of active marketing campaigns at key times of the year as well as free fitness days to increase the facility’s community exposure. What is the value of a membership? Are we continuing to offer the most current group exercise classes? Are we maintaining a clean facility? Continued rebuilding of membership base dramatically impacted by Covid-19 217217220 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 AB CDEFGHIJ Account Account FY21/22 FY22/23 FY23/24 FY24/25 FY24/25 FY25/26 Number Description Actual Actual Actual Budget Estimated Proposed 236,869 99,076 112,125 117,454 117,454 169,764 3210 Interest Income - - - - - - #DIV/0! 3220 CD Interest 678 6,411 25,482 3,000 19,025 15,000 12,000 400.00% 3240 IL Fund Interest 80 2,910 5,411 3,000 5,171 4,500 1,500 50.00% 3632 Concessions 568 2,996 3,504 3,500 3,366 3,200 (300) -8.57% 3641 Babysitting 12,748 10,505 12,555 13,000 11,673 11,000 (2,000) -15.38% 3642 Recreation Center Room Rentals 13,413 22,800 15,750 12,000 20,829 20,000 8,000 66.67% 3644 Sponsorship/Advertisement 100 - - - - - - #DIV/0! 3645 Annual Memberships 352,774 412,859 452,228 460,000 465,346 474,000 14,000 3.04% 3646 Short-Term Memberships 8,469 8,646 13,077 11,000 15,310 15,000 4,000 36.36% 3647 Daily Admissions 1,842 4,318 2,472 3,000 2,992 3,000 - 0.00% 3648 Punch Passes 10,626 11,166 13,322 12,000 14,268 14,000 2,000 16.67% 3649 Recreation Center Misc. Fees 1,959 1,459 1,590 2,000 1,433 1,400 (600) -30.00% 3650 Fitness Classes 1,581 565 5,975 7,000 456 - (7,000) -100.00% 3652 Personal Training 34,240 55,497 54,778 55,000 60,329 60,000 5,000 9.09% 3815 Donations - - - - 186 - - #DIV/0! 3882 Miscellaneous Reimbursement - - - - - - - #DIV/0! 3975 Transfer - General Fund 111,985 211,985 250,356 270,000 270,000 270,000 - 0.00% TOTAL REVENUES 551,063 752,117 856,500 854,500 890,384 891,100 36,600 4.28% Variance ($) Variance (%) Recreation Center ‐ Fund Summary (Fund 400, Departments 00 & 40 Combined) Beginning Fund Balance REVENUES 218218221 1 2 3 4 AB CDEFGHIJ Account Account FY21/22 FY22/23 FY23/24 FY24/25 FY24/25 FY25/26 Number Description Actual Actual Actual Budget Estimated Proposed Variance ($) Variance (%) Recreation Center ‐ Fund Summary (Fund 400, Departments 00 & 40 Combined) 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 Salaries/Benefits 4010 Salaries 30,276 52,353 58,507 59,882 59,192 62,014 2,132 3.56% 4050 Overtime - - - - - - - #DIV/0! 4110 Salaries - Part- Time - - - - - - - #DIV/0! 4130 Salaries - Front Desk Attendants 110,092 122,222 128,178 148,640 136,389 150,000 1,360 0.91% 4135 Salaries - Fitness Coordinator 63,154 46,459 49,441 52,345 53,274 55,038 2,693 5.14% 4140 Salaries - Childcare Attendants 19,917 24,711 29,668 30,000 27,988 18,000 (12,000) -40.00% 4145 Salaries - Rental Attendants 45 368 60 - 131 255 255 #DIV/0! 4160 Salaries - Personal Trainers 23,555 37,587 39,021 30,000 44,183 45,000 15,000 50.00% 4165 Salaries - Orientation/Consultants 660 876 713 800 737 800 - 0.00% 4170 Salaries - Group Exercise Instructors 58,294 58,606 61,999 61,000 59,752 62,000 1,000 1.64% 4175 Salaries - Fitness Program Instructors 601 263 1,123 500 651 650 150 30.00% 4180 Salaries - Facility Attendants 38,546 39,920 43,806 49,500 33,660 54,000 4,500 9.09% 4310 Health/Vision 23,515 12,753 38,729 39,879 37,310 39,989 110 0.28% 4320 Dental Insurance 867 435 1,332 1,384 1,251 1,348 (36) -2.60% 4330 Life Insurance - - 63 77 76 77 - 0.00% 4340 Insurance Premiums Vision 86 49 135 138 128 133 (5) -3.62% 4410 FICA Medicare 26,079 29,123 30,983 33,099 31,821 34,253 1,154 3.49% 4420 IMRF Retirement 11,518 10,654 11,871 14,119 14,295 14,779 660 4.67% 4510 Uniform Allowance - 1,578 1,502 1,000 1,007 1,500 500 50.00% TOTAL SALARIES/BENEFITS 407,205 437,957 497,131 522,363 501,845 539,836 17,473 3.34% Contractual Services 5110 Contractual 11,180 16,854 19,406 17,000 24,652 52,000 35,000 205.88% 5210 Marketing & Advertising 411 3,111 908 4,500 129 4,500 - 0.00% 5215 Retention/Promotion - 741 - 1,000 - 1,000 - 0.00% 5225 Room Contractor 960 1,455 1,050 - - - - #DIV/0! 5321 Cable/TV 4,102 3,958 3,569 4,200 3,480 4,200 - 0.00% 5375 Repair & Maintenance - Equipment 12,109 16,291 10,692 9,000 5,196 11,000 2,000 22.22% 5430 Training 757 704 795 500 1,140 1,000 500 100.00% 5510 Utilities 31,735 19,348 32,570 32,000 37,839 38,000 6,000 18.75% 5600 Credit Card/Bank Fees 9,947 16,256 13,498 11,000 16,942 17,000 6,000 54.55% TOTAL CONTRACTUAL SERVICES 71,201 78,718 82,488 79,200 89,378 128,700 49,500 62.50% EXPENDITURES 219219222 1 2 3 4 AB CDEFGHIJ Account Account FY21/22 FY22/23 FY23/24 FY24/25 FY24/25 FY25/26 Number Description Actual Actual Actual Budget Estimated Proposed Variance ($) Variance (%) Recreation Center ‐ Fund Summary (Fund 400, Departments 00 & 40 Combined) 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 Supplies 6110 Materials and Supplies 3,021 14,527 15,404 15,000 7,885 7,000 (8,000) -53.33% 6111 Custodial Supplies 11,958 7,345 9,744 8,000 14,275 10,000 2,000 25.00% 6120 Supplies - Childcare 23 - 48 300 9 300 - 0.00% 6130 Supplies - Safety 1,370 1,339 1,464 1,000 1,219 - (1,000) -100.00% 6141 Office Furniture/Equipment 132 - - - - 1,000 1,000 #DIV/0! 6142 Fitness Equipment 3,097 147 1,459 - - 3,000 3,000 #DIV/0! 6210 Office & Technology Supplies 22 544 870 500 - 500 - 0.00% TOTAL SUPPLIES 19,623 23,902 28,989 24,800 23,388 21,800 (3,000) -12.10% Other 7400 Bond Issuance Costs - - - - - - - #DIV/0! 8200 Buildings - - 21,740 - - - - #DIV/0! 8300 Equipment - - 9,873 - - - - #DIV/0! 9901 General Fund Transfer - - - - - - - #DIV/0! 9904 Transfer to Debt Service Fund 133,956 132,156 130,356 133,511 133,511 131,469 (2,042) -1.53% 9920 Purchase of Services - Risk Management 20,000 25,534 31,261 31,261 31,261 31,261 - 0.00% 9922 Purchase of Service - IT 36,871 40,801 49,333 58,691 58,691 57,856 (835) -1.42% TOTAL OTHER 190,827 198,491 242,563 223,463 223,463 220,586 (2,877) -1.29% TOTAL EXPENDITURES 688,856 739,068 851,171 849,826 838,074 910,922 61,096 7.19% NET INCREASE/(DECREASE)(137,793) 13,049 5,329 4,674 52,310 (19,822) 99,076 112,125 117,454 122,128 169,764 149,942 Ending Fund Balance 220220223 Fiscal Year 2025/2026 Annual Budget Special Service Area #4 Fund 221221224 Special Service Area #4 Fund – Overview The Special Service Area (SSA) #4 Fund is to account for revenues and expenses associated with annual debt service for a sewer project that was completed in 2004 in the Lakewood Road Subdivision. SSAs allow a municipality to levy a property tax on property within a defined area to fund specific improvements. Through an SSA, payments are spread equally over the identified number of taxable lots rather than through assessment (Special Assessment). The SSA is to expire in tax year 2024. 222222225 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 AB CDEFGHIJ Account Account FY21/22 FY22/23 FY23/24 FY24/25 FY24/25 FY25/26 Number Description Actual Actual Actual Budget Estimated Proposed (641) (232) 27 75 75 110 3010 Property Tax Collections 16,123 15,581 15,584 15,580 15,584 15,580 - 0.00% 3210 Interest Income - 18 17 - 16 - - #DIV/0! 3220 CD Interest 1 7 27 - 15 - - #DIV/0! TOTAL REVENUES 16,124 15,606 15,628 15,580 15,615 15,580 - 0.00% 9936 Transfer to Utility Improvement Fund 15,715 15,347 15,580 15,580 15,580 15,580 - 0.00% TOTAL EXPENDITURES 15,715 15,347 15,580 15,580 15,580 15,580 - 0.00% NET INCREASE/(DECREASE)409 259 48 - 35 - (232) 27 75 75 110 110 EXPENDITURES Ending Fund Balance Variance ($) Variance (%) Lakewood SSA#4 ‐ Fund Summary (Fund 424, Department 00) Beginning Fund Balance REVENUES 223223226 Fiscal Year 2025/2026 Annual Budget Capital Improvements Fund 224224227 Capital Improvements Fund – Overview Historically, the purpose of the Capital Improvements Fund has been to account for funds identified for the maintenance and construction of public infrastructure projects other than water and sewer utilities. This includes roads and public facility maintenance, improvements and/or construction. Through FY21/22, Capital Improvements Fund Revenues were derived from transfers from other funds - primarily the previous fiscal year-end surplus (revenues/expenditures) of the General Fund which, by policy, is then assigned for future capital asset maintenance and replacement projects. During FY21/22, the City Council adopted a tax on electric (started in June 2022) and natural gas (started in June 2023) utilities. Per City Ordinance adopted by Council, those revenues derived from the electric usage portion of these taxes are to be used to fund the City’s General Fund capital asset and maintenance replacement program for projects identified as part of the Community Investment Plan. In FY25/26, the Capital Improvements Fund will be used to account for any carryover funding from FY24/25 capital asset maintenance and replacement projects. At the end of FY25/26, any remaining funds will be transferred to the Capital Asset Maintenance & Replacement Fund, and the Capital Improvements Fund will be phased out. Public Improvements budgeted in FY25/26: Venice Ave. Design (rebudget)* $30,000 Total $30,000 *Projects started in FY24-25 to be finalized inv FY25-26 225225228 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 AB CDEFGHIJ Account Account FY21/22 FY22/23 FY23/24 FY24/25 FY24/25 FY25/26 Number Description Actual Actual Actual Budget Estimated Proposed 321,452 1,017,597 255,307 308,188 308,188 334,106 3210 Interest Income 382 663 30,741 25,000 510 25,000 - 0.00% 3220 CD Interest 179 1,696 25,153 2,000 42,408 - (2,000) -100.00% 3760 Received from Developers - - - - - - - #DIV/0! 3837 Unrealized Gain/Loss 2,134 14,071 - - - - - #DIV/0! 3882 Reimbursements - Miscellaneous 34,870 39,037 - - - - - #DIV/0! 3886 Reimbursements - State - - - - - - - #DIV/0! 3971 Transfer from Annexation Fund - - - - - - - #DIV/0! 3975 Transfer from General Fund 696,503 - - - - - - #DIV/0! TOTAL REVENUES 734,068 55,467 55,894 27,000 42,918 25,000 (2,000) -7.41% 5110 Contractual Services - - - - - - - #DIV/0! 8100 Land Acquisitions - - - - - - - #DIV/0! 8200 Buildings - 100,000 - - - - - #DIV/0! 8600 Streets - 175,295 1,209 48,000 - - (48,000) -100.00% 8800 Park Playground Improvements - 189 - - - - - #DIV/0! 8900 Capital - Other Improvements 37,923 390,373 1,804 - 12,000 30,000 30,000 #DIV/0! 9901 Transfer - Capital Equipment Fund - 151,900 - 5,000 5,000 - (5,000) -100.00% TOTAL EXPENDITURES 37,923 817,757 3,013 53,000 17,000 30,000 (23,000) -43.40% NET INCREASE/(DECREASE)696,145 (762,290) 52,881 (26,000) 25,918 (5,000) 1,017,597 255,307 308,188 282,188 334,106 329,106 EXPENDITURES Ending Fund Balance Variance ($) Variance (%) Capital Improvements ‐ Fund Summary (Fund 440, Department 00) Beginning Fund Balance REVENUES 226226229 Fiscal Year 2025/2026 Annual Budget Capital Equipment Fund 227227230 Capital Equipment Fund – Overview Historically, the Capital Equipment Fund has been utilitzed to track annual expenditures of equipment replacement (e.g., vehicles, computer equipment, etc.) as identified in the Capital Improvement Plan. Through FY21/22, Capital Equipment Fund Revenues were derived from transfers from other funds – primarily the previous fiscal year-end surplus (revenues/expenditures) of the General Fund which, by policy, is then assigned for future capital projects. During FY21/22, the City Council adopted a tax on electric (started in June 2022) and natural gas (started in June 2023) utilities. Per City Ordinance adopted by Council, those revenues derived from the natural gas usage portion of these taxes are to be used to fund any new (as distinct from maintenance and replacement) projects as identified as part of the Community Investment Plan. In FY25/26, the Capital Equipment Fund does not have any projects budgeted. The Capital Equipment Fund will be phased out at the end of the FY25/26 Fiscal Year, and all funds will be transferred to the Capital Asset Replacement & Maintenance Fund. 228228231 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 AB CDEFGHIJ Account Account FY21/22 FY22/23 FY23/24 FY24/25 FY24/25 FY25/26 Number Description Actual Actual Actual Budget Estimated Proposed 322 365 31,425 33,056 33,056 38,523 3210 Interest Income - 104 32 400 46 400 - 0.00% 3220 CD Interest 43 402 1,599 - 421 - - #DIV/0! 3975 Transfer from General Fund - 151,900 - 5,000 5,000 - (5,000) -100.00% TOTAL REVENUES 43 152,406 1,631 5,400 5,467 400 (5,000) -92.59% 8300 Capital - Equipment - 71,346 - 35,000 - - (35,000) -100.00% 8400 Capital - Vehicles - 50,000 - - - - - #DIV/0! TOTAL EXPENDITURES - 121,346 - 35,000 - - (35,000) -100.00% NET INCREASE/(DECREASE)43 31,060 1,631 (29,600) 5,467 400 365 31,425 33,056 3,456 38,523 38,923 EXPENDITURES Ending Fund Balance Variance ($) Variance (%) Capital Equipment ‐ Fund Summary (Fund 450, Department 00) Beginning Fund Balance REVENUES 229229232 Fiscal Year 2025/2026 Annual Budget Capital Asset Maintenance & Replacement Fund 230230233 Capital Asset Maintenance & Replacement Fund – Overview The Capital Asset Maintenance & Replacement Fund is established to identify the funding for the maintenance and replacement of existing capital assets with a cost of more than $10,000. During FY21/22 the City Council adopted a tax on electric utilities and, per City Ordinance, revenues derived from this tax are to be used for the sole purpose of funding the Capital Asset Maintenance & Replacement Program as identified in the Community Investment Plan (CIP). The CIP is updated by Staff and projects are reviewed and approved by the City Council on an annual basis as part of the budget development process. Capital Asset Maintenance & Replacement Projects identified for funding in FY25/26 include: City Hall Front Entrance Improvements $140,000 City Hall Elevator Repairs $100,000 Parks Garage Windows $30,000 Petersen Farmhouse Restoration $125,000 Ballfield Rake $25,000 PD Rifles $68,000 PD Ballistic Shields (25) $20,000 Vehicle Unmarked – PD Admin $118,000 Vehicle Marked – PD $118,000 Vehicle – ½ Ton Pickup – PW $45,000 Streets – Annual Crack Seal Program $100,000 Veterans Memorial Park Lighting $125,000 Miller Riverfront Gazebo Roof $5,000 McBark Park Fencing $75,000 Althoff Park Playground Equipment $75,000 Althoff Park Gazebo Roof $10,000 West Beach Park Parking Lot $75,000 Large Culvert – Boone Creek Spur @ Waters Edge $50,000 Street Lights – Main Street (24 each) $240,000 Total $1,544,000 231231234 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 AB CDEFGHIJ Account Account FY21/22 FY22/23 FY23/24 FY24/25 FY24/25 FY25/26 Number Description Actual Actual Actual Budget Estimated Proposed - - 865,821 190,821 190,821 (26,970) 3210 Interest Income - 1,610 1,611 1,000 284 - (1,000) -100.00% 3145 Electric Use Tax - 1,043,524 1,105,129 1,090,000 1,095,484 1,090,000 - 0.00% 3975 Transfer - General Fund - - - - - 3,451,290 TOTAL REVENUES - 1,045,134 1,106,740 1,091,000 1,095,768 4,541,290 3,450,290 316.25% - #DIV/0! 8200 Capital - Buildings - - 380,246 - - 395,000 395,000 #DIV/0! 8300 Capital - Equipment - - 29,184 - - 113,000 113,000 #DIV/0! 8400 Capital - Vehicles - 179,313 841,209 1,102,915 1,028,857 281,000 (821,915) -74.52% 8600 Capital - Streets - - 24,905 - - 100,000 100,000 #DIV/0! 8800 Capital - Park Improvements - - 63,321 25,000 25,000 290,000 265,000 1060.00% 8900 Capital - Public Improvements - - 442,875 380,000 259,702 365,000 (15,000) -3.95% TOTAL EXPENDITURES - 179,313 1,781,740 1,507,915 1,313,559 1,544,000 36,085 2.39% NET INCREASE/(DECREASE)- 865,821 (675,000) (416,915) (217,791) 2,997,290 - 865,821 190,821 (226,094) (26,970) 2,970,320 Ending Fund Balance Capital Asset Maintenance & Replacement ‐ Fund Summary (Fund 445, Department 00) Variance ($) Variance (%) Beginning Fund Balance REVENUES EXPENDITURES 232232235 Fiscal Year 2025/2026 Annual Budget Capital Asset New Projects Fund 233233236 Capital Asset New Projects Fund – Overview The Capital Asset New Projects Fund was established to identify funding for the development of new capital assets (as distinct from maintenance and replacement of existing capital assets) with a cost of more than $10,000. During FY21/22 the City Council adopted a tax on natural gas utilities and, per City Ordinance, those revenues derived from this tax are to be used for the sole purpose of funding the Capital Asset New Projects Fund. FY24/25 was the first full fiscal year of revenue receipts, since the implementation of the natural gas tax was deferred until June 2023. No new projects have been identified for funding as part of the Community Investment Plan for FY25/26. 234234237 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 AB CDEFGHIJ Account Account FY21/22 FY22/23 FY23/24 FY24/25 FY24/25 FY25/26 Number Description Actual Actual Actual Budget Estimated Proposed - - - 377,742 377,742 743,490 3210 Interest Income - - 561 200 1,262 750 550 275.00% 3146 Gas Use Tax - - 377,181 285,000 364,486 355,000 70,000 24.56% TOTAL REVENUES - - 377,742 285,200 365,748 355,750 70,550 24.74% 8200 Capital - Buildings - - - - - - - #DIV/0! 8900 Capital - Public Improvements - - - - - - - #DIV/0! TOTAL EXPENDITURES - - - - - - - #DIV/0! NET INCREASE/(DECREASE)- - 377,742 285,200 365,748 355,750 - - 377,742 662,942 743,490 1,099,240 Ending Fund Balance Capital Asset New Projects ‐ Fund Summary (Fund 455, Department 00) Variance ($) Variance (%) Beginning Fund Balance REVENUES EXPENDITURES 235235238 Fiscal Year 2025/2026 Annual Budget Enterprise Funds 236236239 Fiscal Year 2025/2026 Annual Budget Water & Sewer Fund Water/Sewer Revenues and Public Works Water, Wastewater, Utility 237237240 Water & Sewer Fund - Overview The Water and Sewer Fund is an enterprise fund – that is, a business-type fund utilized to account for operations and activities that are financed and operated in a manner similar to a private business enterprise, and where the cost of providing goods and services to the general public on a continuing basis is expected to be recovered primarily through user charges, including operating costs and capital improvement costs related to the maintenance of the water and sewer utility systems. These fund the operations of the Water, Wastewater and Utility Divisions in the Department of Public Works. The operating functions of these three divisions are to provide a safe and reliable supply of high-quality potable water and to protect public health and the environment by treating sewage to meet stringent environmental standards prior to discharge. Of note, the Utility Division was established in FY15/16, combining existing Water and Wastewater Division Maintenance Workers to specifically address utility system maintenance needs more routinely. Prior to this, utility maintenance projects were addressed by either the Water Division or Wastewater Division and often required coordination with the other division to ensure adequate manpower. The creation of the Utility Division established more effective means to deliver utility maintenance projects. The Utility Division has now been combined with the Street Division into the Street & Utility Division. The operating expenses for all Utilities maintenance are still accounted for separately and are reflected in the Utility Division section of the Enterprise Fund Budget. The expenses for the Utility Division are split between the Water and Wastewater Divisions as follows - approximately 63.7% of operating expenses are paid from the Water Division and the remaining 36.3% are paid from the Wastewater Division. Capital expenses are charged to the division that benefits from the maintenance project. In general, water and sewer revenues are derived directly from water and sewer sales, base charges, connection fees, and service penalties and should be sufficient to fund the operating and capital costs for the Water, Wastewater and Utility Divisions. Importantly, water and sewer revenues are driven by consumption and, as such, with a growing awareness of water conservancy (which the City supports) and wetter than average summer months, consumption has been relatively flat over the last few years. The City reviews and adjusts water and sewer rates annually based on operational costs and implements water and sewer base fees to fund utility system capital improvements. The narrative that follows provides a snapshot of the status of the Water and Sewer Fund and identifies operational and capital expenses. This is followed by more detailed summaries of the Water, Wastewater and Utility Divisions of the Department of Public Works. 238238241 Public Works Water Division - Overview Public Works Water Division Mission The primary focus and overlying responsibility of the Water Division is to provide a safe and reliable supply of potable water. This is accomplished by producing water from a system of wells, treating water, and conducting over 500 required water samples, thereby meeting or exceeding all federal and state health standards. Of major importance to the Water Division employees is providing the consumer with the highest level of customer service possible. We believe this inspires public trust within the community. In summary, Water Division employees undertake the following tasks: • Production of safe potable water that meets or exceeds State and Federal Drinking Water Regulations. • Water Production – The Division maintains four iron removal filtration treatment plants served by eight active wells. The City has two emergency or backup wells that have no iron removal filtration but do have temporary chemical feed buildings. • Water Storage consists of four elevated water storage tanks with a combined storage capacity of 2,750,000 gallons. • Operation and maintenance of one booster pumping station. • Provide meter readings to the Finance Department for utility billing for City water and sewer services. The Division manages meter accuracy and replacements as needed of approximately 8,568 water meters. • Respond to consumer inquiries within 24 hours regarding water quality or high consumption questions or general concerns. 239239242 Public Works Water Division – Organizational Chart Water Superintendent Russell Ruzicka Water Operator II Jason McMahon Water Operator II Ben Lesperance Maintenance Worker IV Esteban Ramirez Maintenance Worker III Sean Johnson 240240243 Public Works Water Division – FY24/25 Accomplishments • Met or exceeded State and Federal Drinking water regulations. • The Water Division employees provided a high level of customer service by responding to customer requests within 24 hours and making available information consumers need to be informed about their drinking water source and water treatment technologies. • In 2024, the Water Division produced over 793 million gallons of potable water and provided meter readings for over 8,568 water and sewer accounts for billing purposes. • Completed Water Tower #4 repainting project. • Upgraded the Motor Control Center at Water Treatment Plant #2. • Received 28th consecutive annual fluoride award from the Illinois Department of Public Health. • Installed 30 water meters for new construction. • Completed the required lead and copper sampling of the City of McHenry’s community water system. • The Water Division had no reported personnel injuries or accidents in the past year. 241241244 Public Works Water Division – FY25/26 Goals & Objectives • Continue to meet or exceed all Federal and State drinking water regulations. • Continue to provide the highest level of customer service possible by responding to customer requests within 24 hours and making information available for consumers to be informed about their drinking water source and water treatment technologies. • Coordinate Water capital projects, including the Water Main Replacement Project on Richmond/Mill/Broad Streets, the replacement of the Kane Avenue water main under the Union Pacific tracks, and design of Water Plant #5 on the east side of the Fox River. • Look for new opportunities to improve customer service to the consumer. • Continue to maintain and improve water treatment facilities while remaining in budget. • Continue to be injury and accident free. • Continue to develop and train existing licensed operators. 242242245 Public Works Water Division – FY25/26 Performance Measures Performance Item Performance Goal Performance Measure FY25/26 Proposed Outcome(s) IEPA Compliance Achieve 100% compliance in all categories 100% compliance with no violations 100% compliance is expected with no violations Respond to Customer Inquiries and Complaints Respond to all inquiries within 24 hours of receiving Percentage responded to within 24 hours Response to all customer inquiries and complaints Capital Projects Complete all Capital Projects on time and within budget Were projects completed on time and within budget All capital projects completed in a timely manner and under budget Training/Licensing Keep operators current with trainings. Achieve highest possible license. Trainings completed/Tests passed Operators keep license current. New licensed operators Safety –Personal Injury/Vehicle Accidents Zero Injuries/ Accidents How many reported injuries/accidents No loss of workdays and remain on/under budget 243243246 Public Works Wastewater Division – Overview Public Works Wastewater Division Mission It is the mission of the Public Works Department’s Wastewater Division to protect public health and the environment by treating sewage to meet stringent environmental standards prior to discharge. The function of the Wastewater Division is to operate and maintain the Wastewater Treatment Plant and twenty lift stations. The goal of the Wastewater Division is to efficiently maintain these facilities and to produce treated effluent which either meets or exceeds State and Federal standards. The division is also responsible for the removal and disposal of all by-products generated by the treatment process. This is accomplished through daily testing and monitoring of the treatment process and by operating sludge de-watering equipment to produce a high-quality biosolids product. In summary, Wastewater Division employees undertake the following tasks: • Provide for the operation and maintenance of the City’s Wastewater Treatment Plant as well as the care and upkeep of twenty lift stations. • Conduct daily testing and monitoring to ensure the treatment processes are working properly and efficiently and make any necessary changes to operations. • Dispose of all treatment process by-products in a safe and cost-effective manner. • Maintain records on the amount of wastewater treated and the quality of water discharged into the Fox River and report this information to the Illinois Environmental Protection Agency in compliance with NPDES permits. Wastewater Treatment Plant Lab New Mixed Liquor Gate Actuators 244244247 Public Works Wastewater Division – Organizational Chart Wastewater Superintendent Russ Adams Wastewater Supervisor Tim Hendrickson Wastewater Operator II Adam Cashmore Wastewater Operator II Bryan Thome Wastewater Operator I Greg Oliver Maintenance Worker II David Fees Maintenance Worker I Zachary Varvil Mechanic Kevin Beggs 245245248 Public Works Wastewater Division – FY24/25 Accomplishments • In FY24/25, the Wastewater Division continued to maintain compliance with the City’s NPDES permits. • In 2024, the Wastewater Division treated over 1.181 BILLION gallons of wastewater. • In 2024, Wastewater Division personnel responded to 89 emergency callouts, a drop of nearly 40% from the previous year. Quickly responding to and resolving these events prevents adverse incidents such as overflows, backups, or bypasses from occurring. • The City of McHenry’s current NPDES discharge permit went into effect on July 1st, 2021. Included in this permit was a future discharge limit of 0.50 mg/L for Total Phosphorous. The new limit takes effect in 2030. Wastewater Division personnel began implementing process changes in 2023 to further reduce Phosphorous concentrations in treated effluent. In 2024, the average Total Phosphorous in the treated effluent was 0.36 mg/L. • Adam Cashmore passed his IEPA Class 1 Operator’s license exam, adding to the overall competency and credentialing of the department. • In 2024, the Wastewater Division continued its partnership with Dahm Enterprises, Inc. to land-apply the Class A, Exceptional Quality (EQ) biosolids produced at the facility. This has allowed the Division to put its dried biosolids to beneficial use while simultaneously reducing disposal costs. • Mechanical upgrades were completed at the Freund Avenue lift station, including 2 new Flygt pumps, new discharge piping, new check valves, and a new hatch with safety grating. • 2 failed A/C units were replaced, both responsible for keeping critical controls equipment from overheating; one in the microscreen control room, and the other in the U/V building control room. • 2 of the 4 Secondary Clarifier drives at the South plant have been rebuilt to date, with the remaining two scheduled to be completed prior to the end of fiscal year 24/25. Clarifier #1 Drive 246246249 Public Works Wastewater Division – FY25/26 Goals & Objectives • Continue to meet or exceed the NPDES permit requirements and regulations as set forth by the Illinois Environmental Protection Agency. • Operate treatment plants and lift stations in a manner which minimizes the potential for a sanitary sewer overflow. • Continue to analyze ways to maintain a high level of service and performance while minimizing operating costs. • Optimize the Phosphorous removal process to achieve a twelve-month average discharge concentration below 0.40 mg/L. Building on the progress that has already been made, staff will continue to monitor the treatment process and identify ways to further optimize the treatment process to meet this goal. • Promote individual advancement and certification through training opportunities for operations and maintenance personnel in the Wastewater Division. Freund Avenue Lift Station 247247250 Public Works Wastewater Div. – FY25/26 Performance Measures Performance Item Performance Goal Performance Measure FY25/26 Proposed Outcome(s) Compliance with all NPDES Permits issued by the IEPA 100% Compliance with all permits at all times Annual inspection/evaluation and monthly reports Satisfactory annual inspection/report and no violations on monthly reports Phosphorous Optimization Reduce effluent Phosphorous concentrations to a level compliant with future limits. Achieve a twelve-month average effluent concentration of 0.40 mg/L or lower Maintain effluent phosphorous levels below 0.40 mg/L. The current twelve-month average is 0.36 mg/L Lift Stations Reduction in number of off hours call-outs Track number of callouts to each lift station Reduce overtime costs Safety Reduce lost time hours due to work related injuries Continued safety training 0 lost time days due to work related injuries Sanitary Sewer Overflows (SSO’s) Prevent sanitary sewer overflows Operate treatment facilities and maintain critical infrastructure to prevent SSO’s No sanitary sewer overflows Certification Grow the knowledge of the operations team through certification. Increase the number of licensed plant staff Select one employee to send to training; pass IEPA wastewater license exam 248248251 Public Works Utility Division – Overview Public Works Utility Division Mission It is the mission of the Utility Division to provide the highest level of customer service to its residents and consumers. Maintaining the water distribution, sanitary sewer collection systems and storm sewer system to peak performance will continue to ensure reliable services to City of McHenry’s residents and businesses. This will enhance public safety within the community. The Utility Division maintains and repairs all water mains, valves, fire hydrants, and "buffalo" boxes which are all part of the water distribution system. Another one of its duties is to maintain, clean, and televise the sanitary sewer collection system. The Division also maintains and repairs the storm sewer system. The Utility Division also serves an emergency response role for winter snow plowing operations, after-hours water main breaks, and after-hours sanitary sewer backups. In summary, employees undertake the following tasks: • Maintenance of the City sanitary sewer collection system. • Maintenance of the City water distribution system. • Maintenance of the City owned storm water infrastructure. • Support of winter operations. • Emergency response for after-hours utility emergencies. 249249252 Public Works Utility Division – Organizational Chart In May of 2020, the Public Works Department combined the Street Division and the Utility Division into the Street & Utility Division. Combining the two divisions into one was done to further utilize city personnel for daily operations. Street-related operations are solely funded through the General Fund while Utility-related operations are funded through both the Water/Sewer Fund and General Fund. The hours worked and expenses for FY25/26 have been properly separated by Fund to account for the amount budgeted annually. For the personnel organizational chart, the equivalent of 6 FTE’s from the Utility Division are funded out of the Water/Sewer Fund. Street & Utility Superintendent Doug Mace Crew Leader & Arborist Mike Harper Maintenance Worker IV Tim Lechner Maintenance Worker IV Henry Lobermeier Maintenance Worker II Nate Banwart Maintenance Worker II Sam Burrafato Maintenance Worker II Robert Glascott Maintenance Worker II Nick Goettsche Maintenance Worker II Chris Sandoz Maintenance Worker I Jimmy Santiago Crew Leader Pat Maher Maintenance Worker III Ryan Cheney Maintenance Worker III Paul Clements Maintenance Worker III Todd Sasak Maintenance Worker II Clint Greve Maintenance Worker I Sean Kelly Maintenance Worker I Kegan Marcoux Mechanic II Ron Barta Mechanic II Jason Lamz 250250253 Public Works Utility Division - FY24/25 Accomplishments • Flushed all the City’s fire hydrants for spring and fall hydrant flushing programs. • Cleaned and televised over 80,000 feet of sanitary main. • Repaired 11 water main breaks. • Repaired 9 water services. • Repaired/replaced 9 watermain line valves. • Repaired/replaced 21 fire hydrants. • Responded to multiple possible sanitary sewer backups. • Cleaned and televised the storm sewer system in advance of the 2025 Road Resurfacing Program. • Repaired and rehabilitated storm sewer structures in advance of the 2025 Road Resurfacing Program. • Assisted with the replacement of ADA ramps for 2025 Road Resurfacing Program. • Completed 100% of water service material survey for IEPA lead service inventory. • Continued the annual Sewer Lining Program. • Cleaned 25% of all City storm sewer catch basins. • Completed Year 3 of the 3-year contracted hydrant painting program. • Submitted final lead water-service inventory to the Illinois Environmental Protection Agency. 251251254 Public Works Utility Division – FY25/26 Goals & Objectives • Continue to keep the sanitary collection system well maintained, which includes cleaning and televising the entire collection system on regularly scheduled intervals. • Reduce inflow and infiltration in the collection system through the Capital Improvement Program which includes the sanitary sewer main and sewer manhole rehabilitation programs. Replace old style manhole covers with “new” sealed covers. • Perform annual routine maintenance of the water distribution system through the annual water valve maintenance program, annual hydrant painting program, spring and fall hydrant flushing programs and the water main replacement program through the Community Investment Plan. • Continue ongoing mapping of the storm sewer system in the City GIS database. • Management of Sewer Lining Program. 252252255 Public Works Utility Division – FY25/26 Performance Measures Performance Item Performance Goal Performance Measure FY25/26 Proposed Outcome(s) Clean & televise sanitary sewer collection system 100,000 lineal ft/year Lineal ft/year Clean & televise 100,000 lineal ft/year Hydrant Flushing Complete spring and fall hydrant flushing programs Flush all hydrants spring and fall Completion of spring and fall flushing programs Water Distribution System Maintenance Hydrant painting & valve exercising Number of hydrants painted; number of valves exercised 20% of hydrants painted & 20% of valves exercised annually Storm sewer mapping Locate and shoot structures Amount of storm sewer structures shot on GIS Complete mapping of the storm sewer system 253253256 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 AB CDEFGHIJ Account Account FY21/22 FY22/23 FY23/24 FY24/25 FY24/25 FY25/26 Number Description Actual Actual Actual Budget Estimated Proposed 3180 Grants - - - - - - - #DIV/0! 3200 Interest Income - - - 50,000 - 85,000 35,000 70.00% 3220 CD Interest 496 1,440 9,810 - 24,646 - - #DIV/0! 3240 IL Fund Interest 1,524 50,706 75,519 - 85,576 - - #DIV/0! 3610 Sales 2,481,440 2,442,323 2,405,620 2,477,597 2,469,081 2,540,000 62,403 2.52% 3615 Base Charge - Capital 330,058 544,754 557,511 550,000 558,000 555,000 5,000 0.91% 3620 Penalties 100,772 75,360 41,237 85,000 56,125 60,000 (25,000) -29.41% 3630 Hookup/Connection Fees 23,250 8,250 8,000 10,000 6,250 10,000 - 0.00% 3640 Water Meter Sales 52,107 20,650 27,670 10,000 16,375 10,000 - 0.00% 3821 Donated Public Improvements 1,096,340 - 315,780 - - - - #DIV/0! 3836 Gain/Loss on Sale - 6,000 - - 4,475 - - #DIV/0! 3845 Rental Income 30,000 25,697 25,707 30,000 24,239 30,000 - 0.00% 3882 Miscellaneous Reimbursement - 632 8,572 - - - - #DIV/0! 3890 Miscellaneous Income 4,504 27,694 7,659 5,000 3,514 5,000 - 0.00% 3920 Proceeds from Fixed Asset Sale - - - - - - - #DIV/0! 3991 Transfer from Marina Fund - - - - - - - #DIV/0! TOTAL REVENUES 4,120,491 3,203,506 3,483,085 3,217,597 3,248,281 3,295,000 77,403 2.41% TOTAL OPERATING REVENUES 2,618,736 2,623,220 2,565,552 2,647,597 2,663,181 2,720,000 REVENUES Variance ($) Variance (%) Water and Sewer Fund Summary (Fund 510, Department 31 Water) 254254257 1 2 3 4 AB CDEFGHIJ Account Account FY21/22 FY22/23 FY23/24 FY24/25 FY24/25 FY25/26 Number Description Actual Actual Actual Budget Estimated Proposed Variance ($) Variance (%) Water and Sewer Fund Summary (Fund 510, Department 31 Water) 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 Salaries/Benefits 4010 Salaries - Regular 406,260 404,638 447,415 445,796 443,788 503,174 57,378 12.87% 4050 Overtime - Regular 24,486 26,736 29,642 34,000 42,336 38,000 4,000 11.76% 4110 Salaries - Seasonal 4,422 1,160 1,260 7,500 5,584 7,500 - 0.00% 4310 Health Insurance 104,856 87,526 92,894 52,695 112,489 127,956 75,261 142.82% 4320 Dental Insurance - 224 229 233 369 457 224 96.14% 4330 Life Insurance 286 363 227 230 202 255 25 10.87% 4340 Vision Insurance - 42 43 43 69 84 41 95.35% 4410 FICA 33,124 32,868 36,043 37,278 40,385 41,974 4,696 12.60% 4420 IMRF - 110,539 (12,101) 46,012 50,006 52,602 6,590 14.32% 4510 Uniforms 1,733 1,938 2,609 2,250 1,850 2,500 250 11.11% TOTAL SALARIES/BENEFITS 575,167 666,034 598,261 626,037 697,078 774,502 148,465 23.72% Contractual Services 5110 Contractual 110,114 100,696 82,386 154,500 168,932 184,500 30,000 19.42% 5310 Postage & Meter 2,612 141 252 1,000 5,303 5,000 4,000 400.00% 5370 Repair & Maintenance 1,979 1,097 4,376 4,000 3,789 4,000 - 0.00% 5410 Dues 694 821 1,538 2,000 772 2,000 - 0.00% 5430 Training 2,356 579 468 1,500 1,320 2,000 500 33.33% 5510 Utilities 147,741 123,122 169,877 135,000 173,825 180,000 45,000 33.33% TOTAL CONTRACTUAL SERVICES 265,496 226,456 258,897 298,000 353,941 377,500 79,500 26.68% Supplies 6110 Materials and Supplies 235,298 242,473 342,241 270,000 205,394 270,000 - 0.00% 6210 Office Supplies 500 564 437 500 492 500 - 0.00% 6250 Gasoline & Oil 5,584 6,332 5,077 7,000 11,486 10,000 3,000 42.86% 6270 Small Equipment & Tools 995 292 2,468 1,000 (58) 1,000 - 0.00% 6940 Administrative Expenses 731 925 222 - 124 - - #DIV/0! TOTAL SUPPLIES 243,108 250,586 350,445 278,500 217,438 281,500 3,000 1.08% EXPENDITURES 255255258 1 2 3 4 AB CDEFGHIJ Account Account FY21/22 FY22/23 FY23/24 FY24/25 FY24/25 FY25/26 Number Description Actual Actual Actual Budget Estimated Proposed Variance ($) Variance (%) Water and Sewer Fund Summary (Fund 510, Department 31 Water) 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 Other 7091 Debt Service - Accrued Interest (788) (788) (866) - - - - #DIV/0! 7100 Principal Payment - - - 115,000 - 115,000 - 0.00% 7200 Bond Interest 36,508 34,408 32,308 29,998 29,998 27,583 (2,415) -8.05% 7300 Fees - Paying Agent 311 311 311 350 582 600 250 71.43% 8300 Capital - Equipment - - - - - - - #DIV/0! 8500 Capital - Utility System 66,942 - 19,175 - - - - #DIV/0! 9000 Amortization - Bond Issue Costs - - - - - - - #DIV/0! 9100 Amortization - Bond Discount (512) (512) (512) - - - - #DIV/0! 9510 Depreciation Expense 631,243 647,212 660,033 650,000 671,138 680,000 30,000 4.62% 9605 OPEB Expense (16,959) 62,431 (3,712) - - - - #DIV/0! 9606 OPEB Contributions (8,492) (9,774) (8,839) - - - - #DIV/0! 9904 Transfer to Debt Service 96,499 97,835 99,112 98,735 98,735 99,743 1,008 1.02% 9920 Purchase of Service - MCMRMA 64,895 82,941 101,543 101,543 101,543 101,543 - 0.00% 9921 Purchase of Service - Billing 245,048 245,048 245,048 245,048 245,048 245,048 - 0.00% 9922 Purchase of Service - IT 27,778 28,357 33,188 38,488 38,488 39,501 1,013 2.63% 9923 Purchase of Service - Audit 5,035 5,750 5,399 6,000 6,000 6,045 45 0.75% 9930 Water/Sewer Transfer 720,385 731,578 750,041 736,092 736,092 638,494 (97,598) -13.26% 9930 Water/Sewer Transfer - Utility Capital - - - - - - - #DIV/0! TOTAL OTHER 1,867,893 1,924,797 1,932,229 2,021,254 1,927,624 1,953,557 (67,697) -3.35% TOTAL OPERATING EXPENDITURES 2,320,421 2,420,661 2,479,799 2,573,791 2,524,943 2,707,059 133,268 5.18% TOTAL EXPENDITURES 2,951,664 3,067,873 3,139,832 3,223,791 3,196,081 3,387,059 163,268 5.06% 256256259 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 AB CDEFGHIJ Account Account FY21/22 FY22/23 FY23/24 FY24/25 FY24/25 FY25/26 Number Description Actual Actual Actual Budget Estimated Proposed 3180 Grants - - - - - - - #DIV/0! 3200 Interest Income - - - 50,000 - 85,000 35,000 70.00% 3220 CD Interest 496 1,440 9,810 - 24,646 - - #DIV/0! 3240 IL Fund Interest 1,524 50,706 89,758 - 85,576 - - #DIV/0! 3610 Sales 2,901,088 2,872,692 3,018,982 3,120,320 3,122,986 3,123,000 2,680 0.09% 3615 Base Charge - Capital 388,515 510,811 521,899 520,000 522,000 522,000 2,000 0.38% 3620 Penalties 72,724 58,783 37,394 65,000 49,188 50,000 (15,000) -23.08% 3630 Hookup/Connection Fees 23,750 7,500 7,750 10,000 6,500 10,000 - 0.00% 3660 Debt Service Fee 424,643 432,360 441,897 430,000 446,285 445,000 15,000 3.49% 3665 Debt Service - IEPA Loan 2,081,334 1,913,864 1,961,866 1,950,000 1,868,172 1,950,000 - 0.00% 3821 Donated Public Improvements 1,357,882 - 302,030 - - - - #DIV/0! 3836 Gain/Loss on Sale 32,760 - - - 2,570 - - #DIV/0! 3890 Miscellaneous Income 12,289 755 944 1,000 144 1,000 - 0.00% 3915 Bond Interest Rebate 25,082 - - - - - - #DIV/0! 3981 Transfer - Capital Development - - - - - - - #DIV/0! TOTAL REVENUES 7,322,087 5,848,911 6,392,330 6,146,320 6,128,067 6,186,000 39,680 0.65% TOTAL OPERATING REVENUES 3,470,606 3,416,736 3,598,785 3,666,320 3,731,395 3,704,000 37,680 1.03% REVENUES Variance ($) Variance (%) Water and Sewer Fund Summary (Fund 510, Department 32 Sewer) 257257260 1 2 3 4 AB CDEFGHIJ Account Account FY21/22 FY22/23 FY23/24 FY24/25 FY24/25 FY25/26 Number Description Actual Actual Actual Budget Estimated Proposed Variance ($) Variance (%) Water and Sewer Fund Summary (Fund 510, Department 32 Sewer) 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 Salaries/Benefits 4010 Salaries - Regular 695,642 746,111 800,016 804,194 654,135 750,016 (54,178) -6.74% 4050 Overtime - Regular 33,190 39,642 32,053 40,000 32,200 40,000 - 0.00% 4110 Salaries - Seasonal 4,507 5,184 5,889 7,500 4,965 7,500 - 0.00% 4310 Health Insurance 203,427 238,654 268,571 286,902 255,744 273,876 (13,026) -4.54% 4320 Dental Insurance 1,109 1,357 1,382 1,431 1,511 2,334 903 63.10% 4330 Life Insurance 428 546 428 434 361 408 (26) -5.99% 4340 Vision Insurance 177 149 150 153 149 212 59 38.56% 4410 FICA 55,959 60,386 62,587 65,155 56,292 61,010 (4,145) -6.36% 4420 IMRF - 203,295 (21,103) 80,958 69,654 76,790 (4,168) -5.15% 4510 Uniforms 9,481 10,699 12,416 13,025 6,433 13,025 - 0.00% TOTAL SALARIES/BENEFITS 1,003,920 1,306,023 1,162,389 1,299,752 1,081,444 1,225,171 (74,581) -5.74% Contractual Services 5110 Contractual 156,784 168,756 145,437 180,000 166,825 191,500 11,500 6.39% 5310 Postage & Meter 23 31 181 200 104 200 - 0.00% 5370 Repair & Maintenance 6,654 31,610 15,455 18,000 31,508 23,000 5,000 27.78% 5375 Repair & Maintenance - Equipment 66,423 132,686 156,246 175,000 188,186 212,500 37,500 21.43% 5380 Repair & Maintenance - Utility System 42,027 73,475 61,291 75,000 60,427 100,000 25,000 33.33% 5410 Dues 335 580 335 600 518 1,200 600 100.00% 5430 Training 1,295 631 546 1,000 905 2,350 1,350 135.00% 5440 Tuition Reimbursement 514 575 - 600 600 - (600) -100.00% 5510 Utilities 313,241 293,882 412,006 325,000 339,202 360,000 35,000 10.77% 5580 Sludge Disposal 87,415 27,118 38,893 80,000 58,855 80,000 - 0.00% TOTAL CONTRACTUAL SERVICES 674,711 729,344 830,390 855,400 847,130 970,750 115,350 13.48% EXPENDITURES 258258261 1 2 3 4 AB CDEFGHIJ Account Account FY21/22 FY22/23 FY23/24 FY24/25 FY24/25 FY25/26 Number Description Actual Actual Actual Budget Estimated Proposed Variance ($) Variance (%) Water and Sewer Fund Summary (Fund 510, Department 32 Sewer) 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 Supplies 6110 Materials and Supplies 198,177 240,235 337,888 348,500 316,971 370,000 21,500 6.17% 6210 Office Supplies 750 968 750 750 262 750 - 0.00% 6250 Gasoline & Oil 28,823 31,431 32,252 30,000 46,194 35,500 5,500 18.33% 6270 Small Equipment & Tools - 1,031 1,058 1,000 926 1,000 - 0.00% TOTAL SUPPLIES 227,750 273,665 371,948 380,250 364,353 407,250 27,000 7.10% Other 6940 Administrative Expenses 1,585 2,086 604 - - - - #DIV/0! 7091 Debt Service - Accrued Interest (12,254) (15,173) (15,683) - - - - #DIV/0! 7100 Principal Payment - - - 300,000 - 315,000 15,000 5.00% 7200 Bond Interest 118,958 104,200 93,600 82,200 82,200 70,200 (12,000) -14.60% 7300 Fees - Paying Agent 750 750 825 750 825 900 150 20.00% 7400 Bond Issuance Costs - - - - - - - #DIV/0! 7450 Bond Discount Expense - - - - - - - #DIV/0! 7605 IEPA Loan Principal - - - 1,590,322 - 1,620,039 29,717 1.87% 7600 IEPA Loan Interest 534,492 518,829 490,192 461,019 461,019 431,302 (29,717) -6.45% 8300 Capital - Equipment - - - - - - - #DIV/0! 8500 Capital - Utility System 293,685 26,504 354 - - - - #DIV/0! 9000 Amortization - Bond Issue Costs - - - - - - - #DIV/0! 9100 Amortization - Bond Discount (46,005) (46,005) (46,005) - - - - #DIV/0! 9510 Depreciation Expense 2,133,432 2,157,391 2,174,417 2,200,000 2,200,000 2,250,000 50,000 2.27% 9605 OPEB Expense (16,959) 62,431 (3,712) - - - - #DIV/0! 9606 OPEB Contributions (8,492) (9,774) (8,839) - - - - #DIV/0! 9904 Transfer to Debt Service 12,264 12,434 12,596 12,548 12,548 12,677 129 1.03% 9920 Purchase of Service - MCMRMA 86,695 110,863 135,728 135,728 135,728 135,728 - 0.00% 9921 Purchase of Service - Billing 261,238 261,238 261,238 261,238 261,238 261,238 - 0.00% 9922 Purchase of Service - IT 23,221 22,736 26,393 30,403 30,403 31,169 766 2.52% 9923 Purchase of Service - Audit 5,035 5,750 5,399 6,000 6,000 6,045 45 0.75% 9930 Water/Sewer Transfer 296,916 301,622 307,829 297,687 297,687 264,164 (33,523) -11.26% 9930 Water/Sewer Transfer - Utility Capital - - - - - - - #DIV/0! 9936 Transfer to Utility Improvement Fund 6,250 - - - - - - #DIV/0! TOTAL OTHER 3,690,811 3,515,882 3,434,936 5,377,895 3,487,648 5,398,462 20,567 0.38% TOTAL OPERATING EXPENDITURES 2,923,018 3,148,694 3,135,054 3,661,956 3,119,556 3,700,292 38,336 1.05% TOTAL EXPENDITURES 5,597,192 5,824,914 5,799,663 7,913,297 5,780,575 8,001,633 88,336 1.12% 259259262 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 AB CDEFGHIJ Account Account FY21/22 FY22/23 FY23/24 FY24/25 FY24/25 FY25/26 Number Description Actual Actual Actual Budget Estimated Proposed 3890 Miscellaneous Income - 838 - - - - #DIV/0! 3978 Transfer from Water/Sewer Fund 1,017,301 1,033,200 1,057,870 1,029,088 1,033,779 902,658 (126,430) -12.29% TOTAL REVENUES 1,017,301 1,034,038 1,057,870 1,029,088 1,033,779 902,658 (126,430) -12.29% Salaries/Benefits 4010 Salaries - Regular 592,670 616,004 529,194 621,360 473,035 543,945 (77,415) -12.46% 4050 Overtime - Regular 30,648 18,724 7,738 15,000 8,804 15,000 - 0.00% 4110 Salaries - Seasonal 4,928 5,351 1,560 7,500 8,708 7,500 - 0.00% 4310 Health Insurance 203,668 207,787 193,109 221,931 157,928 179,034 (42,897) -19.33% 4320 Dental Insurance 1,097 1,134 534 1,198 770 794 (404) -33.72% 4330 Life Insurance 457 568 344 357 277 357 - 0.00% 4340 Vision Insurance 108 107 53 110 116 116 6 5.45% 4410 FICA 48,337 49,333 42,580 49,255 39,444 43,333 (5,922) -12.02% 4420 IMRF (21,127) 165,466 (14,273) 61,027 48,730 54,329 (6,698) -10.98% 4510 Uniforms 3,473 3,229 4,589 3,000 2,270 3,000 - 0.00% TOTAL SALARIES/BENEFITS 864,259 1,067,703 765,428 980,738 740,082 847,408 (133,330) -13.59% Contractual Services 5110 Contractual 3,773 - - - - - - #DIV/0! 5310 Postage & Meter - - - 100 - - (100) -100.00% 5370 Repair & Maintenance 34,557 19,721 26,674 20,000 35,264 30,000 10,000 50.00% 5410 Dues 323 327 335 500 335 500 - 0.00% 5430 Training 1,554 61 126 1,500 901 1,500 - 0.00% TOTAL CONTRACTUAL SERVICES 40,207 20,109 27,135 22,100 36,500 32,000 9,900 44.80% Supplies 6110 Materials and Supplies 338 3,592 115 - 35 - - #DIV/0! 6210 Office Supplies 257 248 177 250 129 250 - 0.00% 6250 Gasoline & Oil 21,865 29,902 22,165 25,000 20,000 22,000 (3,000) -12.00% 6270 Small Equipment & Tools 567 566 908 1,000 - 1,000 - 0.00% TOTAL SUPPLIES 23,027 34,308 23,365 26,250 20,164 23,250 (3,000) -11.43% TOTAL EXPENDITURES 927,493 1,122,120 815,928 1,029,088 796,746 902,658 (126,430) -12.29% REVENUES EXPENDITURES Variance ($) Variance (%) Water and Sewer Fund Summary (Fund 510, Department 35 Utility) 260260263 Fiscal Year 2025/2026 Annual Budget Capital Development Fund 261261264 Capital Development Fund – Overview This fund accounts for the construction, expansion and/or extension of water and wastewater systems to accommodate new development and growth in the community. Revenues are generated through capital development fees on new residential and non-residential development. 262262265 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 AB CDEFGHIJ Account Account FY21/22 FY22/23 FY23/24 FY24/25 FY24/25 FY25/26 Number Description Actual Actual Actual Budget Estimated Proposed 3,271,079 4,366,875 4,649,925 5,328,296 5,328,296 5,930,809 3200 Interest 534 21,578 126,853 20,000 170,390 125,000 105,000 525.00% 3630 Hookup/Connection Fees (31 - Water)573,689 202,585 329,009 150,000 194,378 150,000 - 0.00% 3630 Hookup/Connection Fees (32 - Sewer)665,323 178,700 377,817 175,000 237,745 175,000 - 0.00% 3837 Unrealized Gain/Loss - 25,187 94,692 - - - - #DIV/0! TOTAL REVENUES 1,239,546 428,050 928,371 345,000 602,513 450,000 105,000 30.43% 9936 Transfer to Utility Improvement Fund 143,750 145,000 250,000 - - 250,000 250,000 #DIV/0! TOTAL EXPENDITURES 143,750 145,000 250,000 - - 250,000 250,000 #DIV/0! NET INCREASE/(DECREASE)1,095,796 283,050 678,371 345,000 602,513 200,000 4,366,875 4,649,925 5,328,296 5,673,296 5,930,809 6,130,809 Capital Development ‐ Fund Summary (Fund 550) Beginning Fund Balance Ending Fund Balance REVENUES EXPENDITURES Variance ($) Variance (%) 263263266 Fiscal Year 2025/2026 Annual Budget Utility Improvements Fund 264264267 Utility Improvements Fund – Overview The Utility Improvements Fund was created to provide a single fund to record revenues and expenses for capital asset maintenance and replacement projects for the water and wastewater utilities as well as the expansion and/or extension of water and wastewater systems. Funding for these projects is derived primarily from transfer from the water and sewer and capital development funds. A transfer from the Capital Development Fund is budgeted for FY25/26 to cover the Water Plant #5 Design capital expense that is budgeted in the Utility Improvements Fund in the amount of $250,000. 265265268 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 AB CDEFGHIJ Account Account FY21/22 FY22/23 FY23/24 FY24/25 FY24/25 FY25/26 Number Description Actual Actual Actual Budget Estimated Proposed 4 3180 Grants - - - - - - #DIV/0! 3200 Interest 1,019 9,747 103,093 20,000 89,597 75,000 55,000 275.00% 3837 Unrealized Gain/Loss (3,118) 27,252 - - - - #DIV/0! 3978 Transfer from Water/Sewer Fund 6,250 - - - - - - #DIV/0! 3981 Transfer from Capital Development Fund 143,750 145,000 250,000 - - 250,000 250,000 #DIV/0! 3994 Transfer from SSA #4 15,715 15,347 15,580 - 15,580 15,580 15,580 #DIV/0! TOTAL REVENUES 163,616 197,346 368,673 20,000 105,177 340,580 320,580 1602.90% 8500 Capital - Utility Improvement Projects - 10,118 75,362 - - 250,000 250,000 #DIV/0! TOTAL EXPENDITURES - 10,118 75,362 - - 250,000 250,000 #DIV/0! NET INCREASE/(DECREASE)163,616 187,228 293,311 20,000 105,177 90,580 REVENUES EXPENDITURES Variance ($) Variance (%) Utility Improvements ‐ Fund Summary (Fund 580) 266266269 Fiscal Year 2025/2026 Annual Budget Marina Operations Fund 267267270 Marina Operations Fund – Overview The City of McHenry acquired the marina in 2000 to be able to expand the Central Wastewater Treatment Plant. After the marina was acquired, it was determined that the wastewater facility could not be expanded at the existing site. The City moved all wastewater operations to the South Wastewater Treatment Plant and decommissioned the Central Plant. At this time, the Marina Operations Fund is an enterprise fund that provides for the maintenance of a 60-slip marina on the Fox River that is being operated with the assistance of a subcontractor. 268268271 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 AB CDEFGHIJ Account Account FY21/22 FY22/23 FY23/24 FY24/25 FY24/25 FY25/26 Number Description Actual Actual Actual Budget Estimated Proposed 451,310 461,281 477,322 481,705 481,705 511,677 3200 Interest 197 1,049 5,188 1,000 4,913 2,500 1,500 150.00% 3845 Rental Income 35,460 57,113 13,000 40,000 54,000 29,000 (11,000) -27.50% TOTAL REVENUES 35,657 58,162 18,188 41,000 58,913 31,500 (9,500) -23.17% 5110 Contractual Services - - - 15,000 - - (15,000) -100.00% 6940 Administrative Expenses 25,686 42,121 13,805 29,000 28,941 35,000 6,000 20.69% 9930 Transfer to Water/Sewer Fund - - - - - - - #DIV/0! TOTAL EXPENDITURES 25,686 42,121 13,805 44,000 28,941 35,000 (9,000) -20.45% NET INCREASE/(DECREASE)9,971 16,041 4,383 (3,000) 29,972 (3,500) 461,281 477,322 481,705 478,705 511,677 508,177 Marina Operations ‐ Fund Summary (Fund 590) Beginning Fund Balance Ending Fund Balance REVENUES EXPENDITURES Variance ($) Variance (%) 269269272 Fiscal Year 2025/2026 Annual Budget Internal Service Funds 270270273 Fiscal Year 2025/2026 Annual Budget Employee Insurance Fund 271271274 Employee Insurance Fund – Overview The City of McHenry recognizes that health insurance benefits are an important component of an employee’s total compensation package. The purpose of the Employee Insurance Fund is to finance and account for expenditures incurred to provide health insurance benefits to employees. The current health insurance plan provided to employees offers a choice between a PPO (Preferred Provider Organization), an HMO (Health Maintenance Organization), and an HSA (Health Savings Account). Providing employees with a choice of plans allows for flexibility based on preference and affordability. In addition, employees receive dental and vision benefits. All IUOE 150 employees (Public Works and Parks Maintenance staff) are required to be on the IUOE 150 insurance plan as per their collective bargaining agreement. 272272275 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 AB CDEFGHIJ Account Account FY21/22 FY22/23 FY23/24 FY24/25 FY24/25 FY25/26 Number Description Actual Actual Actual Budget Estimated Proposed (90,560) (93,742) (91,283) (63,866) (63,866) (142,990) 3240 IL Funds Interest 61 2,359 4,814 2,000 4,904 3,000 1,000 50.00% 3653 Elective Participant Premium 217,268 168,185 137,058 144,599 139,511 166,787 22,188 15.34% 3831 Employee Contributions 290,172 303,192 327,408 358,559 369,810 378,745 20,186 5.63% 3882 Reimbursement - Miscellaneous - - 593 - 200 - - #DIV/0! 3975 Transfer from General Fund 2,341,073 2,513,838 2,658,005 2,883,583 2,699,962 3,032,698 149,115 5.17% 3978 Transfer from Water/Sewer Fund 514,515 532,998 565,380 610,773 574,354 613,013 2,240 0.37% 3999 Tranfer from Other Funds 53,511 43,503 51,150 99,295 75,405 77,544 (21,751) -21.91% TOTAL REVENUES 3,416,600 3,564,075 3,744,408 4,098,809 3,864,146 4,271,787 172,978 4.22% 4310 Insurance Premiums - Health 3,095,181 3,228,276 3,385,196 3,744,581 3,571,278 3,900,446 155,865 4.16% 4320 Insurance Premiums - Dental 128,899 133,724 135,324 152,244 143,501 149,732 (2,512) -1.65% 4340 Insurance Premiums - Vision 23,440 23,509 23,801 25,185 25,649 27,358 2,173 8.63% 5245 Health HRA Reimbursement 171,175 175,263 169,500 164,000 201,500 190,500 26,500 16.16% 6960 Miscellaneous Expenses 1,087 844 3,170 1,000 1,342 - (1,000) -100.00% TOTAL EXPENDITURES 3,419,782 3,561,616 3,716,991 4,087,010 3,943,270 4,268,036 181,026 4.43% NET INCREASE/(DECREASE)(3,182) 2,459 27,417 11,799 (79,124) 3,751 (93,742) (91,283) (63,866) (52,067) (142,990) (139,239) Employee Insurance ‐ Fund Summary (Fund 600) Beginning Fund Balance Ending Fund Balance REVENUES EXPENDITURES Variance ($) Variance (%) 273273276 Fiscal Year 2025/2026 Annual Budget Risk Management Fund 274274277 Risk Management Fund – Overview The purpose of the Risk Management Fund is to account for all activity related to risk management and insurance costs (other than employee health insurance) including loss control, loss prevention, risk transfer, and risk assessment. The City of McHenry is a member of the McHenry County Risk Management Agency (MCMRMA), a public entity risk pool through which property, general liability, automobile liability, crime, cyber, excess property, excess liability, and boiler and machinery coverage is provided. The relationship between the City and MCMRMA is defined through a contractual obligation approved by both the City Council and MCMRMA Executive Board. Revenues for the fund are generated by service charges to the City’s General Fund and non-General Fund operating units. The service charges to the General Fund are provided for partially by the liability insurance portion of the property tax levy. Incidental revenues from interest earnings and reimbursements from MCMRMA are also posted to the fund. 275275278 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 AB CDEFGHIJ Account Account FY21/22 FY22/23 FY23/24 FY24/25 FY24/25 FY25/26 Number Description Actual Actual Actual Budget Estimated Proposed 349,540 88,217 (26,189) 58,430 58,430 162,830 3200 Interest Earnings 11 34 400 - 510 - - #DIV/0! 3847 MCMRMA Refund - - - - - - - #DIV/0! 3884 Reimb-Property Damage 195 35,565 96,289 25,000 9,159 25,000 - 0.00% 3885 Property Damage Reimbursements 332,874 - - - - - - #DIV/0! 3970 Charges for Services 718,291 918,502 1,124,505 1,129,320 1,129,320 1,129,320 - 0.00% 3890 Misc. Income - - - - - - #DIV/0! TOTAL REVENUES 1,051,371 954,101 1,221,194 1,154,320 1,138,989 1,154,320 - 0.00% 5950 Insurance Premium - MCMRMA 855,514 932,886 1,005,849 1,100,000 1,002,488 1,100,000 - 0.00% 5960 Insurance Premium - Other - 3,381 23,473 5,000 - 5,000 - 0.00% 5980 Property Damage 432,004 30,416 81,175 20,000 7,719 20,000 - 0.00% 6940 Administrative Expense 2,673 2,365 3,575 2,000 1,879 2,000 - 0.00% 9901 Transfer General Fund - 76,956 - - - - - #DIV/0! 9921 Purchase of Service - GF 22,503 22,503 22,503 22,503 22,503 22,503 - 0.00% TOTAL EXPENDITURES 1,312,694 1,068,507 1,136,575 1,149,503 1,034,589 1,149,503 - 0.00% NET INCREASE/(DECREASE)(261,323) (114,406) 84,619 4,817 104,400 4,817 88,217 (26,189) 58,430 63,247 162,830 167,647 Risk Management ‐ Fund Summary (Fund 610) Beginning Fund Balance Ending Fund Balance REVENUES EXPENDITURES Variance ($) Variance (%) 276276279 Fiscal Year 2025/2026 Annual Budget Information Technology Fund 277277280 Information Technology Fund – Overview The Information Technology Division (located within the Police Department) purchases, operates, maintains, repairs and replaces all information technology-related programs, systems, software and hardware across the City organization. The mission of the Information Technology Division is to provide the most innovative, highest quality, technology-based services in a cost-effective manner and to facilitate the achievement of the goals and objectives of each of the City’s operating departments. Information Technology Fund revenues are derived from transfers from the City’s operating departments, and expenses are related to the direct provision of technology services by the Division’s three staff members and for the replacement of equipment and software throughout the municipality. Capital projects budgeted in FY25/26: Computer Workstation Replacements $26,000 Squad Car Laptop Replacements $10,500 PW Server Room UPS $3,500 Virtual Host Server and Storage $175,000 Security Cameras $30,000 Disaster Recovery Project $70,000 Door Access Controllers $15,000 Core & Edge Switches $20,000 Wi-Fi Access Point Replacement $40,000 Community Digital Sign (Oak/Elm) $50,000 Total $440,000 278278281 Information Technology - Organizational Chart Information Technology ManagerAaron Greve Information Technology SpecialistMichael Hodge Information Technology SpecialistMichael Wood 279279282 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 AB CDEFGHIJ Account Account FY21/22 FY22/23 FY23/24 FY24/25 FY24/25 FY25/26 Number Description Actual Actual Actual Budget Estimated Proposed 390,786 433,004 466,953 601,420 601,420 810,227 3200 Interest Earnings 64 1,295 2,621 2,000 13,273 10,000 8,000 400.00% 3882 Miscellaneous Reimbursement - 2,250 2,864 - 1,820 - - #DIV/0! 3970 Charges for Services 872,231 1,073,338 1,290,988 1,529,728 1,529,728 1,575,327 45,599 2.98% 3975 Transfer from General Fund - - - - - - #DIV/0! 3978 Transfer from Water/Sewer Fund - - - - - - #DIV/0! TOTAL REVENUES 872,295 1,076,883 1,296,473 1,531,728 1,544,821 1,585,327 53,599 3.50% Salaries/Benefits 4010 Salaries 160,214 221,138 276,876 279,738 278,687 290,925 11,187 4.00% 4050 Overtime - Regular - - - - - - - #DIV/0! 4310 Health Insurance 51,159 48,594 71,890 74,062 72,512 74,563 501 0.68% 4320 Dental Insurance 2,194 2,112 2,764 2,862 2,701 2,791 (71) -2.48% 4330 Life Insurance 114 152 151 153 151 153 - 0.00% 4340 Vision Insurance 217 221 300 305 297 296 (9) -2.95% 4410 FICA Medicare 11,398 15,648 19,447 21,400 20,078 22,256 856 4.00% 4420 IMRF Retirement (21,664) 57,014 (8,801) 26,827 26,226 28,278 1,451 5.41% 4510 Uniform Allowance 815 787 1,010 1,500 1,137 1,500 - 0.00% TOTAL SALARIES/BENEFITS 204,447 345,666 363,637 406,847 401,789 420,762 13,915 3.42% Contractual Services 5110 Contractual 286,953 431,061 486,690 727,724 724,000 872,382 144,658 19.88% 5320 Telephone 44,580 46,717 34,612 58,500 48,812 68,500 10,000 17.09% 5410 Dues 300 300 300 600 350 600 - 0.00% 5420 Travel Expense 226 385 - 4,500 1,636 4,500 - 0.00% 5430 Training 7,395 125 - 8,000 1,723 8,000 - 0.00% 5440 Tuition Reimbursement - - - 3,000 - - (3,000) -100.00% TOTAL CONTRACTUAL SERVICES 339,454 478,588 521,602 802,324 776,521 953,982 151,658 18.90% Information Technology ‐ Fund Summary (Fund 620) Beginning Fund Balance (Cash & Cash Equivalents) REVENUES EXPENDITURES Variance ($) Variance (%) 280280283 1 2 3 4 AB CDEFGHIJ Account Account FY21/22 FY22/23 FY23/24 FY24/25 FY24/25 FY25/26 Number Description Actual Actual Actual Budget Estimated Proposed Information Technology ‐ Fund Summary (Fund 620) Variance ($) Variance (%) 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 Supplies 6110 Materials and Supplies 5,643 4,906 14,176 22,125 12,515 24,700 2,575 11.64% 6210 Office Supplies 1,996 2,113 528 3,200 1,479 3,500 300 9.38% 6270 Small Equipment 13,770 5,724 18,195 23,450 13,718 21,700 (1,750) -7.46% TOTAL SUPPLIES 21,409 12,743 32,899 48,775 27,712 49,900 1,125 2.31% Other 9510 Depreciation 48,637 52,939 57,780 55,000 59,000 60,000 5,000 9.09% 9605 OPEB Expense 11,462 3,820 (1,089) - - - - #DIV/0! 9606 OPEB Contributions (2,425) (2,275) (2,591) - - - - #DIV/0! 9920 Purchase of Services - Risk Management 6,857 8,726 10,683 10,683 10,683 10,683 - 0.00% TOTAL OTHER 64,531 63,210 64,783 65,683 69,683 70,683 5,000 7.61% Capital Outlay 8300 Capital - Equipment 225,350 106,965 96,006 261,100 119,309 440,000 178,900 68.52% TOTAL CAPITAL OUTLAY 225,350 106,965 96,006 261,100 119,309 440,000 178,900 68.52% TOTAL EXPENDITURES 855,191 1,007,172 1,078,927 1,584,729 1,395,014 1,935,327 350,598 22.12% NET INCREASE/(DECREASE)17,104 69,711 217,546 (53,001) 149,807 (350,000) 433,004 466,953 601,420 603,419 810,227 520,227 Ending Fund Balance (Cash & Cash Equivalents) 281281284 Fiscal Year 2025/2026 Annual Budget Fiduciary Funds 282282285 Fiscal Year 2025/2026 Annual Budget Employee Flexible Spending Fund 283283286 Employee Flexible Spending Fund – Overview The Employee Flexible spending account is used to account for employee pre-tax medical spending accounts that are offered as a benefit to City employees. Under the Internal Revenue Service (IRS) rules and regulations, employees can set aside money for certain medical benefits on a pre-tax basis. These benefits include medical expenses not covered under the employee’s health insurance plan. When allowable medical costs are paid by the employee, the employee can be reimbursed from their flexible spending account. Depending on the tax bracket of the employee and the extent of utilization, an employee could potentially save several hundred dollars through medical and dependent care flexible spending deductions. 284284287 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 AB CDEFGHIJ Account Account FY21/22 FY22/23 FY23/24 FY24/25 FY24/25 FY25/26 Number Description Actual Actual Actual Budget Estimated Proposed 9,363 13,332 16,062 14,819 14,819 17,979 3831 Employee Contributions 41,234 45,524 48,087 45,000 42,594 45,000 - 0.00% 3882 Reimbursement - Miscellaneous 147 731 163 - 390 - - #DIV/0! TOTAL REVENUES 41,381 46,255 48,250 45,000 42,984 45,000 - 0.00% 6940 Administrative Expenses 1,816 1,405 205 2,000 279 1,000 (1,000) -50.00% 6965 Medical Reimbursements 35,596 42,121 49,289 43,000 39,545 44,000 1,000 2.33% 9999 Revenue/Expense Closing 3,969 2,730 (1,243) - 3,160 - - #DIV/0! TOTAL EXPENDITURES 41,381 46,256 48,251 45,000 42,984 45,000 - 0.00% 13,332 16,062 14,819 14,819 17,979 17,979 Employee Flex ‐ Fund Summary (Fund 700) Beginning Fund Balance Ending Fund Balance REVENUES EXPENDITURES Variance ($) Variance (%) 285285288 Fiscal Year 2025/2026 Annual Budget Development Escrow Fund 286286289 Development Escrow Fund – Overview The Development Escrow Fund is a fiduciary fund used to account for assets held by the City in a trustee capacity or as an agent for individuals, private organizations, and other governments or funds. The Development Escrow Fund holds funds deposited by developers until such time as certain improvements are completed or in lieu of developer provided improvements. These funds are custodial in nature and do not involve measurement of results of operations. 287287290 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 AB CDEFGHIJ Account Account FY21/22 FY22/23 FY23/24 FY24/25 FY24/25 FY25/26 Number Description Actual Actual Actual Budget Estimated Proposed 6,830 6,830 6,854 6,884 6,884 6,906 3210 Interest Earnings 1 24 30 - 22 - - #DIV/0! 3760 Received from Developers - - - - - - - #DIV/0! TOTAL REVENUES 1 24 30 - 22 - - #DIV/0! 6961 Miscellaneous Refunds - - - - - - - #DIV/0! 9942 Transfer to Capital Improvements Fund - - - - - - - #DIV/0! 9999 Revenue/Expense Closing 1 - - - - - - #DIV/0! TOTAL EXPENDITURES 1 - - - - - - #DIV/0! NET INCREASE/(DECREASE)- 24 30 - 22 - 6,830 6,854 6,884 6,884 6,906 6,906 Developmental Escrow ‐ Fund Summary (Fund 720) Beginning Fund Balance Ending Fund Balance REVENUES EXPENDITURES Variance ($) Variance (%) 288288291 Fiscal Year 2025/2026 Annual Budget Retained Personnel Fund 289289292 Retained Personnel Fund – Overview The Retained Personnel Fund is used to account for funds collected as reimbursement and expended for professional and technical services used to assist or advise the City in connection with land development. The City’s retained personnel costs include engineering, legal, planning, and other technical professional matters. The City typically collects a deposit from property owners at the initiation of annexation, zoning, or other development proceedings that approximate the total retained personnel costs expected to be incurred. 290290293 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 AB CDEFGHIJ Account Account FY21/22 FY22/23 FY23/24 FY24/25 FY24/25 FY25/26 Number Description Actual Actual Actual Budget Estimated Proposed 49,204 49,204 49,204 48,754 48,754 48,754 3730 Engineering Fees 54,862 11,949 43,320 50,000 32,850 50,000 - 0.00% 3735 Legal Fees 21,097 17,242 8,728 15,000 2,600 15,000 - 0.00% 3740 Developer Miscellaneous Fees 4,725 - - 8,000 - 8,000 - 0.00% 3750 Developer Refunds - 5,382 - 2,000 3,863 2,000 - 0.00% TOTAL REVENUES 80,684 34,573 52,048 75,000 39,313 75,000 - 0.00% 5220 Engineering Fees 61,828 11,949 43,320 50,000 35,450 50,000 - 0.00% 5230 Legal Fees 18,342 17,242 8,728 15,000 - 15,000 - 0.00% 6960 Miscellaneous Fees 514 - 450 8,000 - 8,000 - 0.00% 6961 Miscellaneous Refunds - 5,382 - 2,000 3,863 2,000 - 0.00% TOTAL EXPENDITURES 80,684 34,573 52,498 75,000 39,313 75,000 - 0.00% NET INCREASE/(DECREASE)- - (450) - - - 49,204 49,204 48,754 48,754 48,754 48,754 Retained Personnel ‐ Fund Summary (Fund 740) Beginning Fund Balance Ending Fund Balance REVENUES EXPENDITURES Variance ($) Variance (%) 291291294 Fiscal Year 2025/2026 Annual Budget Revolving Loan Fund 292292295 Revolving Loan Fund – Overview The Revolving Loan Fund provides low interest loans to qualified existing and prospective businesses within the City of McHenry. The loan proceeds can be used to assist in the startup of a new business, expand an existing business, update existing facilities to make the business more competitive, or provide an incentive for established businesses to relocate to the City. The primary goal of the program is job creation and expansion of the sales and property tax bases. The program requires loan applicants to complete a formal application that is then reviewed by City staff and the City Council. Terms are identified/negotiated, and a recommendation is provided to the full City Council for consideration. Of note, the Revolving Loan Fund itself does not have expenditures, as the loans are processed by the City itself. Revenues are comprised of interest on the loans and interest income on available cash. 293293296 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 AB CDEFGHIJ Account Account FY21/22 FY22/23 FY23/24 FY24/25 FY24/25 FY25/26 Number Description Actual Actual Actual Budget Estimated Proposed 301,017 301,385 302,408 303,938 303,938 306,535 3210 Interest Earnings 32 961 1,530 1,000 2,397 5,400 4,400 440.00% 3210 Loan Interest 336 62 - - - - - #DIV/0! 3890 Miscellaneous Income - - 10 - 200 - - #DIV/0! 3975 Transfer General Fund - - - - - - - #DIV/0! TOTAL REVENUES 368 1,023 1,540 1,000 2,597 5,400 4,400 440.00% 5110 Contractual Services - - 10 - - - - #DIV/0! TOTAL EXPENDITURES - - 10 - - - - #DIV/0! NET INCREASE/(DECREASE)368 1,023 1,530 1,000 2,597 5,400 301,385 302,408 303,938 304,938 306,535 311,935 Revolving Loan ‐ Fund Summary (Fund 750) Beginning Fund Balance Ending Fund Balance REVENUES EXPENDITURES Variance ($) Variance (%) 294294297 Fiscal Year 2025/2026 Annual Budget Police Pension Fund 295295298 Police Pension Fund – Overview The Police Pension Fund accounts for retirement benefits for retired police officers and their beneficiaries through employer and employee contributions and investment earnings. The primary purpose of this non-operating budgetary unit is to finance pensions for employees thorough employer and employee contributions combined with interest earnings on those contributions. These three revenue streams, if based on sound actuarial assumptions, should generate sufficient funds for employee retirement without placing undue burden on the employer or a risk to the pension due the employee. The City’s pension plan is a defined benefit plan, meaning that regardless of investment performance, the plan is obligated to pay the defined benefit. The Police Pension plan is administered by a board of trustees. The duties of the board are to control and manage the pension fund, to enforce the collection of contributions, to hear and determine applications for pensions, to authorize payment of pensions. Financial planning and investment management are now provided by the Illinois Police Officers’ Pension Investment Fund (IPOPIF) staff and vendors. All investable assets of the Police Pension fund were transferred to IPOPIF, per the Illinois Pension Consolidation Act of 2019, in September of 2022. This act was created to allow for the pooling of assets into one larger investment fund to reduce costs through better negotiating power, access to investments that were closed to smaller local funds, and access to best-in-class investment managers at competitive pricing. 296296299 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 AB CDEFGHIJ Account Account FY21/22 FY22/23 FY23/24 FY24/25 FY24/25 FY25/26 Number Description Actual Actual Actual Budget Estimated Proposed 61,710,978 56,638,040 55,718,518 59,660,420 59,660,420 62,911,690 3210 Interest Earnings 3,503,502 1,326,285 392,334 400,000 358,141 300,000 (100,000) -25.00% 3830 Employer Contributions 655,318 621,970 669,181 703,262 708,195 687,907 (15,355) -2.18% 3831 Employee Contributions 494,892 491,717 522,287 525,000 525,165 526,000 1,000 0.19% 3836 Gain/Loss on Sale (824,298) (5,542,682) 818,745 - 1,177,343 - - #DIV/0! 3837 Unrealized Gain/Loss (6,303,419) 4,572,665 3,992,704 - 3,365,707 - - #DIV/0! 3839 Budget Stabilization Revenue - - - - - - - #DIV/0! 3882 Miscellaneous Reimbursement 493 16,531 - - 100 - - #DIV/0! TOTAL REVENUES (2,473,512) 1,486,486 6,395,251 1,628,262 6,134,651 1,513,907 (114,355) -7.02% 4910 Pension Payments 1,768,422 1,807,854 1,885,732 2,056,026 2,146,413 2,203,041 147,015 7.15% 4920 Duty Disability Payments 291,764 343,378 347,499 351,622 461,593 426,156 74,534 21.20% 4930 Survivor Benefit Payments 210,606 70,933 108,176 108,177 108,176 108,177 - 0.00% 4940 Non-Duty Disability Payments 57,763 57,764 57,763 57,764 63,017 73,700 15,936 27.59% 4990 Contribution Refunds 100,133 - - - 53,276 - - #DIV/0! 5110 Contractual Services 164,888 121,879 49,854 25,000 46,456 50,000 25,000 100.00% 5410 Dues 1,325 - - - - - - #DIV/0! 6940 Administrative Expenses 450 - - - - - - #DIV/0! 9923 Purchase of Service - Audit 4,075 4,200 4,325 4,450 4,450 4,725 275 6.18% TOTAL EXPENDITURES 2,599,426 2,406,008 2,453,349 2,603,039 2,883,381 2,865,799 262,760 10.09% NET INCREASE/(DECREASE)(5,072,938) (919,522) 3,941,902 (974,777) 3,251,270 (1,351,892) 56,638,040 55,718,518 59,660,420 58,685,643 62,911,690 61,559,798 Police Pension ‐ Fund Summary (Fund 760) Beginning Fund Balance Ending Fund Balance REVENUES EXPENDITURES Variance ($) Variance (%) 297297300 Fiscal Year 2025/2026 Annual Budget Supplemental Information 298298301 Financial Policies Overview The following City financial policies, along with the approved Fund Balance and Reserve, Investment and Capital Improvement Program policies, establish the framework for McHenry’s overall fiscal planning and management. Operating Budget and Expense Policies 1. The City shall annually adopt a balanced budget where operating revenues are equal to, or exceed, operating expenditures in each fund. 2. Beginning fund balance should only be appropriated to the extent it supports non-recurring expenditures, replaces temporary declines in revenue, or is reasonably anticipated to be offset by an increase in revenue. 3. As part of the annual budget review process, the City will project General Fund revenues and expenditures for the budget year and ensure that a balanced operating budget is met. If a balanced operating budget is not met, expenses are reduced. 4. The City Council shall be provided quarterly actual revenues and expenditures for all funds. Any departments or divisions projected to exceed their annual spending authority for the year shall work with the City Administrator to reduce expenses. This may include a deferral of hiring and major expenses for goods and services. Revenue Policies 1. The City shall maintain a diversified and stable revenue system to the extent provided by law to insulate it from short-term fluctuations in any one revenue source. 2. The City will not budget one-time revenue sources to fund annual operating expenditures. Such revenues will fund non-recurring activities, such as capital projects and major capital equipment purchases. 3. Grant revenues shall be pursued to provide or enhance City services. However, recurring activities shall be initiated with grant funds only if the activity can be terminated in the event grant funds are discontinued or the activity should and can be funded within recurring City revenues. 4. All non-enterprise user fees and charges will be examined annually to determine the direct and indirect cost of service recovery rate. The acceptable recovery rate and any associated changes to user fees and charges will be approved by the City Council. 5. The City will set fees and user charges for the Water and Sewer funds at a level that fully supports the total direct and indirect costs of the activity. Indirect costs include the replacement of the capital assets of the fund. Debt Management Policies 1. The City limits long-term debt to only those capital improvements that cannot be financed from 299299302 current revenues and have an estimated useful life of at least ten years. 2. For General Obligation Debt, the City will maintain a debt to assessed valuation ratio that is 25% more stringent than the state debt limit. 300300303 Fund Balance and Reserve Policy Overview • The purpose of this policy is to establish the principles and parameters to which a Fund Balance target will be defined at the beginning of each budget period. This policy is established to provide financial stability, cash flow for operations, and the assurance that the City will be able to respond to emergencies with fiscal strength. • In the event that unexpected situations may cause the City to fall below the minimum fund balance level, certain steps will be followed to correct the deficiency, as outlined in the section below titled “Fund Balance Parameters.” Definitions • Fund Balance – The difference between assets and liabilities in a Governmental Fund. • Net Position – The amount remaining after subtracting total liabilities from total assets for Proprietary Funds. • Operating Expenditures – Total expenditures minus capital and debt service. • Governmental Funds – Are used to account for all or most of the City’s general activities, including the collection and disbursement of restricted or committed monies (special revenue funds), the funds restricted, committed or assigned for the acquisition or construction of major capital assets (capital projects fund), and the funds restricted, committed or assigned for the servicing of general long-term debt (debt service funds). The General Fund is used to account for all activities of the general government not accounted for in some other fund. o General Fund – Accounts for all activities of the City not accounted for in another fund. The General Corporate Fund is used to account for most of the day-to-day operations of the City, which are financed from tax revenues and other general revenues. Nine (9) separate activities are accounted for within the General Fund including: Administration, Elected Officials, Community & Economic Development, Finance Department, Police Commission, Police Department, Public Works-Administration, Public Works-Streets, and Parks and Recreation. o Special Revenue Funds – These funds are utilized to account for revenues derived from specific sources which are usually required by law or regulation to be accounted for as separate funds. For the City of McHenry these funds include the following funds, with definitions provided:  Tourism Fund – The Tourism Fund is used for the purpose of financing tourism through promotion of the City. It is derived from a 5% occupancy tax on motel and hotel receipts. 301301304  Pageant Fund – The purpose of the Pageant Fund is to account for revenues and expenditures used to conduct the annual Miss McHenry Pageant.  Band Fund – The purpose of the Band Fund is to finance and account for expenditures incurred in the provision of summer concerts to promote culture and recreation to the community.  Civil Defense Fund – The City Defense Fund is used to fund and account for activities related to the training of personnel and the purchase and maintenance of equipment to protect and defend the City from natural disasters or man-made environmental disasters through early warning and public notification systems.  Alarm Board Fund – The purpose of this fund is to pay for the maintenance of radios, as well as the annual maintenance of the head-end equipment, in the City’s dispatch center. Revenues are derived from the monitoring of business fire alarms, which are directly connected to the dispatch center.  Audit Fund – The Audit Fund accounts for expenses incurred to complete the annual financial audit of the City.  Annexation Fund – This fund tracks funds received from negotiated annexation agreements that are intended to be used for improvements to infrastructure or City facilities.  Motor Fuel Tax Fund – The Motor Fuel Tax (MFT) Fund is to provide dedicated revenues from taxes on gasoline and diesel sales primarily to road maintenance and improvements.  Local Motor Fuel Tax Fund – The purpose of this fund is to provide dedicated revenues from $0.03 per gallon local tax on gasoline and diesel sales to fund contracted road resurfacing projects.  Developer Donation Fund – The purpose of this fund is to account for donations collected from developers on behalf of the primary and secondary school districts, fire protection district, and the City’s park system.  Tax Increment Finance Fund – The Tax Increment Finance (TIF) Fund is utilized to capture the tax increment on property taxes generated through private investment within the downtown TIF District. These funds are then reinvested into this area to undertake public improvements and/or as incentivization to spur additional private investment. o Capital Projects Fund – Capital Projects Fund is utilized to account for financial resources to be used for the acquisition or construction of capital facilities or other major fixed assets. The following funds are identified within the Capital Projects Fund:  Recreation Center Construction Fund – The purpose of this fund is to, first, account for revenues and expenditures related to the construction of the 302302305 recreation center facility; and, second, to account for capital expenditures specific to the completed recreation center facility.  Special Service Area #4A – The SSA#4 Fund is utilized to account for revenues and expenses associated with annual debt service for the sewer project located in the Lakewood Road Subdivision.  Capital Maintenance & Replacement Fund – The purpose of this fund is to provide dedicated revenues from electricity tax for the sole purpose of funding the maintenance and replacement of existing assets.  Capital Asset New Projects Fund – The purpose of this fund is to provide dedicated revenues from gas tax for the sole purpose of funding new capital projects.  Capital Improvements Fund – The purpose of the Capital Improvements Fund is to account for funds identified for the maintenance and construction of public infrastructure projects other than water and sewer utilities. This includes roads and public facility maintenance, improvements and/or construction.  Capital Equipment Fund – The Capital Equipment Fund is utilized to track annual expenditures of equipment replacement (e.g., vehicles, computer equipment) as identified in the 5-Year Capital Improvement Program. o Debt Service Fund – The Debt Service Fund accounts for bonded indebtedness incurred by the City’s General Fund, including bond and interest payments. • Enterprise Funds – Enterprise Funds are business-type funds utilized to account for operations and activities that are financed and operated in a manner similar to a private business enterprise, and where the cost of providing goods and services to the general public on a continuing basis is expected to be recovered primarily through user charges. The City has also established Enterprise Funds when it was advantageous to segregate revenues earned and expenses incurred for an operation for purposes of capital maintenance, public policy, management control, or accountability. The following funds comprise the City’s Enterprise Funds: o Water and Sewer Fund – The Water and Sewer Fund funds the operations of the Water, Wastewater and Utility Division of the Department of Public Works whose functions are to provide a safe and reliable supply of high-quality potable water and to protect public health and the environment by treating sewage to meet stringent environmental standards prior to discharge. o Capital Development Fund – This fund accounts for the construction, expansion and/or extension of water and wastewater systems to accommodate new development and growth in the community. Revenues are generated through capital development fees on new residential and non-residential development. 303303306 o Utility Improvements Fund – The Utility Improvements Fund is utilized for capital projects that improve or expand the capacity of the Water and Wastewater utilities. o Marina Operations Fund – This Enterprise Fund is used to maintain a city-owned 60-slip marina on the Fox River. • Internal Service Funds – Internal Service Funds are established to finance and account for services and/or commodities furnished by one department or agency to other departments or agencies of the city. The Internal Service Funds of the City are as follows: o Employee Insurance Fund – The purpose of this fund is to finance and account for expenditures incurred to provide health insurance benefits to employees. o Risk Management Fund – The Risk Management Fund accounts for all activity related to risk management and insurance costs (other than employee health insurance) including loss control, loss prevention, risk transfer, and risk assessment. o Information Technology Fund – The IT Fund facilitates the implementation of innovative, high-quality technology-based services to each of the City’s departments. • Fiduciary Funds – These funds are used to account for resources held for the benefit of parties outside of the city. The Fiduciary Funds of the city include the following funds: o Employee Flexible Spending Fund – Accounts for employees’ pre-tax medical spending accounts that are offered as a benefit to City employees. o Development Escrow Fund – This fund is used to segregate developer funds held by the City to ensure the completion of specific public improvements such as sidewalks and traffic signals. o Retained Personnel Fund – The Retained Personnel Fund accounts for funds collected as reimbursement and expended for professional and technical services used to assist or advise the City in connection with land development. o Revolving Loan Fund – This fund accounts for activity in the Revolving Loan Program, a low-interest program for businesses and industry with the goal of job creation. o Police Pension Fund – Accounts for retirement benefits for retired police officers and their beneficiaries through employer and employee contributions and investment earnings. Governmental Fund Equity • With the implementation of GASB 54, the fund balance structure for governmental funds changed as of the fiscal year ended April 30, 2012. Multiple fund balance classifications include: Non-Spendable, Restricted, and Unrestricted, with unrestricted being further broken down into: Committed, Assigned, and Unassigned. 304304307 • Expenses that can be attained from multiple fund classifications shall be used from the most to least restrictive fund. With the discretion of the Finance Director, and with the advice and consent of the Finance and Personnel Committee, a deviation can be made from this policy if it is in the best interest of the City of McHenry. • Fund classifications are described by the following: o Non-Spendable Fund Balance – (1 of 2 conditions)  Amounts that are not in spendable form  Can never be spent (i.e., Inventory, Prepaid Rent)  Cannot currently be spent because of cash flow timing (i.e., Long-Term Receivables)  Amounts that are required to be maintained intact (i.e., principal of an endowment) o Restricted  Externally enforceable legal restrictions (i.e., grants, debt proceeds, tax levies) o Unrestricted (3 designations)  Committed – Amounts constrained for a specific purpose by a government using its highest level of decision-making authority  Must be committed prior to fiscal year-end, however, dollar amount can be decided at a later time.  Revenues reported within any given special revenue fund are considered “Committed” by the City Council in accordance with GASB Statement 54 and are intended to be used for the related purpose.  Assigned – Amounts constrained, for the intent to be used for a specific purpose by the City Administrator and Finance Director  Includes any remaining positive balances in governmental funds (other than the General Fund) that is not classified in any other fund balance category  A drawdown of the fund balance would be classified within this category  Unassigned – Remainder of the General Fund’s fund balance that is not classified in a previous category and amounts have not been expended in excess of resources available in other governmental funds Proprietary (Enterprise/Internal Service) Fund Equity • Proprietary funds include Enterprise and Internal Service Funds. • Expenses that can be attained from multiple fund classifications shall be used from the most to least restrictive fund. With the discretion of the Finance Director, and with the advice and consent of the Finance and Personnel Committee, a lesser restrictive net asset classification can be used if they determine that it is in the best interest of the City. • The net assets will be composed of three primary categories: o Net Investment in Capital Assets – That portion of a proprietary fund’s net assets that reflects the fund’s net investment in capital assets less any amount of outstanding debt related to the purchase/acquisition of said capital assets. 305305308  Related debt, for this purpose, includes the outstanding balances of any bonds, mortgages, notes, or other borrowings that are attributable to the acquisition, construction, or improvement of capital assets of the Government. o Restricted Net Assets – That portion of a proprietary fund’s net assets that are subject to external enforceable legal restrictions (e.g., grantor, contributor and bond covenants). o Unrestricted Net Assets – That portion of a proprietary fund’s net assets that is neither restricted nor invested in capital assets (net of related debt). Fund Balance Parameters (By Fund) • It is the City’s philosophy to support long-term financial strategies, where fiscal sustainability is its first priority, while also building funds for future growth. It is essential to maintain adequate levels of fund balance to mitigate current and future risks and to ensure stable tax levies. Credit rating agencies carefully monitor levels of fund balance to evaluate a city’s creditworthiness. • Revenues received within a given fund are specifically committed for its related purpose. Revenues reported within any fund may be modified from time to time through the annual budget process. • The following parameters will be used as part of the budget process to establish targets for the following funds: o General Fund – The unrestricted fund balance target should be set at 120 days (4 months) of estimated operating expenditures including those expenditures reported in other Governmental Funds that receive annual operating transfers, with the exception of transfers intended to fund capital projects. If the unreserved fund balance falls below 120 days, a plan will be developed to return to the target balance. If the unreserved fund balance reaches a low of 90 days (3 months), the plan will be implemented to return the fund balance to the target within a reasonable amount of time. One-time revenues shall not be used to fund current operations. This level of fund balance shall provide the capacity to:  Offset unexpected downturns in elastic revenues due to fluctuations in the local, state and national economies or the loss of a major sales tax contributor(s);  Offset negative fiscal changes brought about by action or legislation of another unit of government or agency;  Ensure the continued, timely repayment of debt obligations that the City may have in the event of a financial downturn;  Provide a sufficient cash flow for daily financial needs at all times; and,  Provide a funding source for unanticipated expenditures or emergencies that may occur. 306306309 Funds in excess of the minimum may be considered for the funding of one-time, nonrecurring expenditures, assigned for future capital activities or used for the funding of other long-term obligations. o Tourism Fund – No target is established for this fund. The expenditures in this fund are to be used for financing tourism through promotion of the City. o Pageant Fund – No target is established for this fund. o Band Fund – No target is established for this fund. There is an estimated yearly operating transfer provided by the General Fund to cover expenses. o Civil Defense Fund – The unrestricted fund balance should be maintained at 120 days (4 months) of estimated operating expenditures. Additional fund balance needs to be retained to address long-term equipment replacement and or repair. o Alarm Board Fund – The unrestricted fund balance should be maintained at 120 days (4 months) of estimated operating expenditures. Additional fund balance needs to be retained to address long-term equipment replacement. o Audit Fund – No target is established for this fund. Any fund balance accumulated within this fund will be utilized to lower operating transfers from other funds or the property tax levy. o Annexation Fund – The unrestricted fund balance should be maintained at sufficient levels to address the related annual debt service payments pledged by this fund and additional funding for capital projects. o Motor Fuel Tax Fund – No target is established for this fund. The expenditures intended for the Motor Fuel Tax revenues must not exceed the amount of funds available from the State of Illinois Motor Fuel Tax Fund. These revenues should only be used for street improvements and repair, as allowed by the State of Illinois Law. o Developer Donation Fund – The unrestricted fund balance should be maintained at sufficient levels to fund park related capital projects. o Tax Increment Finance Fund – No target is established for this fund. All fund balance within this fund will go to pay for improvements completed within the TIF district. o Recreation Center Construction Fund – The unrestricted fund balance should be maintained at 120 days (4 months) of estimated operating expenditures. Additional fund balance needs to be retained to address long-term equipment/furniture replacement or other unforeseen capital needs. o Special Service Area #4 (SSA#4) – No fund balance is maintained in this fund, all revenues are transferred to the Utility Improvements Fund to cover project costs. o Capital Improvements Fund – No target is established for this fund. The expenditures in this fund are to be used for retiring debt service and for capital 307307310 infrastructure expenditures. One-time revenues should be placed in this fund. However, the City will plan appropriately and maintain a sufficient reserve in order to meet the long-term capital planning, projected cash flow requirements, and infrastructure needs of the community. o Capital Maintenance & Replacement Fund – No target is established for this fund. The expenditures in this fund are to be used for capital infrastructure expenditures. However, the City will plan appropriately and maintain a sufficient reserve in order to meet the long-term capital planning, projected cash flow requirements, and infrastructure needs of the community. o Capital Asset New Projects Fund –– No target is established for this fund. The expenditures in this fund are to be used for capital infrastructure expenditures. However, the City will plan appropriately and maintain a sufficient reserve in order to meet the long-term capital planning, projected cash flow requirements, and infrastructure needs of the community. o Capital Equipment Fund – No target is established for this fund. The expenditures in this fund are to be used for capital equipment expenditures. o Debt Service Fund – No target is established for this fund. This fund is used only as a debt service fund. o Water and Sewer Fund – The Water and Sewer Fund cash and investment balance should be maintained at a minimum level of 25%-35% of the previous year’s operating expenses taking into account typical levels of expenditures required for capital outlays. Rates should be maintained at sufficient levels to meet the costs of water and sewer programs, fund depreciation, and build reserves for future capital needs. Water rates for consumers will be reviewed on an annual basis based on operating and capital needs. If the balances fall below the minimum, rates will be adjusted so as to gradually return to the minimum within a reasonable period of time. If balances exceed the minimum, the overage will be used to keep future rate increases lower or fund capital projects for the water/sewer systems. o Capital Development Fund – No target is established for this fund. The expenditures in this fund are to be used for retiring debt service and for capital expenditures. o Utility Improvements Fund – No target is established for this fund. The expenditures in this fund are to be used for capital infrastructure expenditures. One-time revenues should be placed in this fund. However, the City will plan appropriately and maintain a sufficient reserve in order to meet the long-term capital planning, projected cash flow requirements, and infrastructure needs of the community. o Marina Operations Fund – No target is established for this fund. All fund balance within this fund will go to maintain the City owned marina. 308308311 o Employee Insurance Fund – No target is established for this fund. Any fund balance accumulated within this fund will be utilized to provide stability for the City’s health insurance costs. o Risk Management Fund – No target is established for this fund. Any fund balance accumulated within this fund will be utilized to provide stability for the City’s risk management costs. o Information Technology Fund – The unrestricted fund balance should be maintained at 120 days (4 months) of estimated operating expenditures. Additional fund balance needs to be retained to address capital expenditures. o Employee Flexible Spending Fund – No fund balance is maintained within this fund. This fund is used only as an agency fund. o Development Escrow Fund – No fund balance is maintained within this fund. This fund is used only as an agency fund. o Retained Personnel Fund – No fund balance is maintained within this fund. This fund is used only as an agency fund. o Revolving Loan Fund – No target is established for this fund. Any fund balance accumulated within this fund will be utilized to offer low interest loans to local businesses. o Police Pension Fund – Fund balance targets will be determined through the Police Pension Board and the annual actuarial analysis. 309309312 Community Investment Program Financial Policy 1. The Community Investment Program (CIP) plan shall identify projects, their costs and the revenue sources and amounts needed to finance them. 2. The first year of the CIP program effectively becomes the capital projects budget within the operating budget for the year subject to the availability of adequate funds in the operating budget. Approval of the CIP does not guarantee that funds will be appropriated for the projects included in the first year of the CIP. 3. For General Obligation Debt, the City will maintain a debt to assessed value ratio that is 25% more stringent than the state debt limit (State limit is 8.625% of EAV; proposed limit would reduce to this ceiling to approximately 6.5% of EAV or $25.5 million outstanding). 4. Bonds issued to finance capital projects shall be structured to coincide as closely as feasibly possible to the useful life of the project. By equitably distributing the costs of the project over time, those citizens benefiting from the project will share in the cost. In no instance shall the maturity exceed the useful life of the project. 5. The City will not use long-term debt for current operations. 6. Where feasible, the City shall investigate the use of all sources of revenue available before using local property tax funds for capital projects. 7. Where feasible, the City will pursue project financing mechanisms - such as special service areas, special assessments or other mechanisms - that target citizens receiving a disproportionate share of the project benefit. 310310313 Investment Policy I. Policy It is the policy of the City of McHenry to invest public funds in a manner which will provide the highest investment return with the maximum security while meeting the daily cash flow demands of the City and conforming to all state and local statutes governing the investment of public funds. II. Scope This policy includes all funds governed by the Mayor and Council (“City Council”). III. General Objectives The primary objectives, in priority order, of investment activities shall be safety, liquidity, and yield: A. Safety. Safety of principal is the foremost objective of the investment program. Investments shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. The objective will be to mitigate credit risk and interest rate risk. 1. Credit Risk. The City will minimize credit risk, the risk of loss due to the failure of the security issuer or backer, by: (a) Limiting investments to the safest types of securities. (b) Pre-qualifying the financial institutions, brokers/dealers, intermediaries, and advisers with which the City will do business. (c) Diversifying the investment portfolio so that potential losses on individual securities will be minimized. 2. Interest Rate Risk. The City will minimize the risk that the market value of securities in the portfolio will fall due to changes in general interest rates, by: (a) Structuring the investment portfolio so that securities mature to meet cash requirements for ongoing operations, thereby avoiding the need to sell securities on the open market prior to maturity. (b) Investing operating funds primarily in shorter-term securities, money market mutual funds, or similar investment pools. B. Liquidity. The investment portfolio shall remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated. This is accomplished by structuring the portfolio so that securities mature concurrent with cash needs to meet 311311314 anticipated demands (static liquidity). Furthermore, since all possible cash demands cannot be anticipated, the portfolio should consist largely of securities with active secondary or resale markets (dynamic liquidity). A portion of the portfolio also may be placed in money market mutual funds or local government investment pools which offer same-day liquidity for short-term funds. C. Yield. The investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment constraints and liquidity needs. Return on investment is of secondary importance compared to the safety and liquidity objectives described above. The core of investments are limited to relatively low risk securities as identified in this policy in anticipation of earning a fair return relative to the risk being assumed. Securities shall not be sold prior to maturity with the following exceptions: 1. A security with declining credit may be sold early to minimize loss of principal. 2. A security swap would improve the quality, yield, or target duration in the portfolio. 3. Liquidity needs of the portfolio require that the security be sold. IV. Prudence The standard of prudence to be used by investment officials shall be the “prudent person” standard and shall be applied in the context of managing an overall portfolio. Investment officers acting in accordance with written procedures and this investment policy and exercising due diligence shall be relieved of personal responsibility for an individual security’s credit risk or market price changes, provided deviations from expectations are reported in a timely fashion and the liquidity and the sale of the securities are carried out in accordance with the terms of this policy. Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived. V. Ethics and Conflicts of Interest Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with the proper execution and management of the investment program, or that could impair their ability to make impartial decisions. Employees and investment officials shall disclose any material interests in financial institutions with which they conduct business. They shall further disclose any personal financial/investment positions that could be related to the performance of the investment portfolio. Employees and officers shall refrain from undertaking personal investment transactions with the same individual with whom business is conducted on behalf of the City. 312312315 VI. Delegation of Authority Authority to manage the investment program is granted to the City Treasurer or his designee, hereinafter referred to as Investment Officer. Responsibility for the operation of the investment program is hereby delegated to the Investment Officer, who shall act in accordance with established procedures and internal controls for the operation of the investment program consistent with this investment policy. Procedures should include references to: safekeeping, delivery vs. payment, investment accounting, repurchase agreements, wire transfer agreements, and collateral/depository agreements. No person may engage in an investment transaction except as provided under the terms of this policy and the procedures established by the Investment Officer. The Investment Officer shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials. VII. Authorized Financial Dealers and Institutions A list will be maintained of financial institutions authorized to provide investment services. In addition, a list also will be maintained of approved security broker/dealers selected by creditworthiness (e.g., a minimum capital requirement of $10,000,000 and at least five years of operation). These may include “primary” dealers or regional dealers that qualify under Securities and Exchange Commission (SEC) Rule 15C3-1 (uniform net capital rule). All financial institutions and broker/dealers who desire to become qualified for investment transactions must supply the following as appropriate: A. Audited financial statements. B. Proof of National Association of Securities Dealers (NASD) certification. C. Proof of state registration. D. Completed broker/dealer questionnaire. E. Certification of having read and understood and agreeing to comply with the City’s investment policy. An annual review of the financial condition and registration of qualified financial institutions and broker/dealers will be conducted by the Investment Officer. VIII. Suitable and Authorized Investments The City may invest in any investment allowed for in the Illinois statutes regarding investment of public funds including but not limited to the following: A. U.S. government obligations, U.S. government agency obligations, and U.S. government instrumentality obligations, which have a liquid market with a readily determinable market value. 313313316 B. Canadian government obligations (payable in local currency). C. Certificates of deposit and other evidences of deposit at financial institutions, bankers’ acceptances, and commercial paper, rated in the highest tier (e.g., A-1, P-1, F-1, or D-1 or higher) by a nationally recognized rating agency. D. Investment-grade obligations of state, provincial and local governments and public authorities. E. Repurchase agreements only if the underlying purchased securities consist of government securities which are subject to the Government Securities Act of 1986 or as authorized in 30 ILCS 235/2(h)(1)-(11). F. Money market mutual funds regulated by the Securities and Exchange Commission and whose portfolios consist only of dollar-denominated securities. G. Local government investment pools, either state-administered or through joint powers statutes and other intergovernmental agreement legislation. IX. Collateralization Funds on deposit (checking accounts, certificates of deposit, etc.) in excess of FDIC limits must be secured by some form of collateral, witnessed by a written agreement and held at an independent – third party institution in the name of the City. X. Safekeeping and Custody All security transactions, including collateral for repurchase agreements, entered into by the City, shall be conducted on a delivery-versus-payment (DVP) basis. Securities will be held by an independent third-party custodian designated by the Investment Officer and evidenced by safekeeping receipts and a written custodial agreement. XI. Diversification The investments shall be diversified by: A. Limiting investments to avoid over concentration in securities from a specific issuer or business sector (excluding U.S. Treasury securities). B. Limiting investment in securities that have higher credit risks. C. Investing in securities with varying maturities. D. Continuously investing a portion of the portfolio in readily available funds such as local government investment pools (LGIPs), money market funds or overnight 314314317 repurchase agreements to ensure that appropriate liquidity is maintained in order to meet ongoing obligations. XII. Maximum Maturities To the extent possible, the City shall attempt to match its investments with anticipated cash flow requirements. Unless matched to a specific cash flow, the City will not directly invest in securities maturing more than two years from the date of purchase or in accordance with state and local statutes and ordinances. Reserve funds may be invested in securities exceeding two years if maturity of such investments is made to coincide as nearly as practicable with the expected use of the funds. The intent to invest in securities with longer maturities shall be disclosed to the corporate authorities. XIII. Internal Controls The Investment Officer is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the City are protected from loss, theft or misuse. The internal control structure shall be designed to provide reasonable assurance that these objectives are met. The concept of reasonable assurance recognizes that (1) the cost of a control should not exceed the benefits likely to be derived and (2) the valuation of costs and benefits requires estimates and judgments by management. Accordingly, the Investment Officer shall establish a process for an annual independent review by an external auditor to assure compliance with policies and procedures. The internal controls shall address the following points: A. Control of collusion. B. Separation of transaction authority from accounting and recordkeeping. C. Custodial safekeeping. D. Avoidance of physical delivery securities. E. Clear delegation of authority to subordinate staff members. F. Written confirmation of transactions for investments and wire transfers. G. Development of a wire transfer agreement with the lead bank and third-party custodian. 315315318 XIV. Performance Standards The investment portfolio will be managed in accordance with the parameters specified within this policy. The portfolio should obtain a market average rate of return during a market/economic environment of stable interest rates. A series of appropriate benchmarks shall be established against which portfolio performance shall be compared on a regular basis. XV. Reporting The Investment Officer, or his designee, shall prepare an investment report at least quarterly, including a management summary that provides an analysis of the status of the current investment portfolio and transactions made over the last quarter. This management summary will be prepared in a manner which will allow the City to ascertain whether investment activities during the reporting period have conformed to the investment policy. The report should be provided to the Investment Officer, the legislative body, and any pool participants. The report will include the following: A. Listing of individual securities held at the end of the reporting period. B. Realized and unrealized gains or losses resulting from appreciation or depreciation by listing the cost and market value of securities over one-year duration that are not intended to be held until maturity. C. Average weighted yield to maturity of portfolio on investments as compared to applicable benchmarks. D. Listing of investment by maturity date. E. Percentage of the total portfolio which each type of investment represents. XVI. Marking to Market A statement of the market value of the portfolio shall be issued to the Mayor and City Council quarterly. XVII. Exemption Any investment currently held that does not meet the guidelines of this policy shall be exempted from the requirement of this policy. At maturity or liquidation, such monies shall be reinvested only as provided by this policy. XVIII. Amendments This policy shall be reviewed on an annual basis. The Investment Officer may implement changes in the investment policy after gaining approval from the Mayor and City Council for 316316319 the amendments. Any and all amendments to the investment policy shall be provided to the individual(s) charged with maintaining internal controls. XIX. Investment Policy Adoption The investment policy shall be adopted by the Mayor and City Council. The policy shall be reviewed on an annual basis by the Investment Officer and any modifications made thereto must be presented to the Mayor and City Council for approval. 317317320 Purchasing Policy and Procedures A. General Rules, Regulations and Ethics Purchasing of goods and services for the City of McHenry shall be in accordance with this Purchasing Policy, City Ordinances and applicable statutes of the State of Illinois. Items procured must represent the maximum economic benefit for each dollar spent. Purchases shall be of high quality and continued availability. Purchases shall be based on obtaining cost comparisons, quotations, or competitive bids. Purchases shall be based on obtaining better knowledge of methods and of commodities required to operate cost effectively. Local participation will be encouraged in the purchasing process. Consideration should be given to participate in cooperative purchasing efforts with other local government entities and in the State of Illinois Joint Purchasing Program whenever possible. All personnel involved in the purchasing process shall conduct themselves with fairness and impartiality and demand the same of all vendors. Negotiations and discussions involving purchases shall be conducted in compliance with the Code of Ethics and Rules of Conduct in the City’s Personnel Handbook. The purchasing process shall promote professionalism and be committed to the efficiencies of centralized purchasing. B. Expenditure Approval Authority The following table includes the personnel authorized to make purchases and the amount each are authorized to spend on items included in the annual fiscal year budget, as approved by the City Council: Budgeted Amounts Designated Employees* Supervisors/Managers Department Directors Mayor, City Administrator or Finance Director Less than $750 X X X X Less than $2,500 X X X Less than $10,000 X X Less than $20,000 X * Designated Employees: • Assistant to the City Administrator/Deputy City Clerk • Coordinators and Analysts • Administrative Assistants (all departments) • Public Works Maintenance Worker • Public Works Operator • Public Works Mechanic • Parks & Recreation Maintenance Worker • Public Works Project Engineer • Community Development Plumbing Inspector • Community Development Code Enforcement Officer • Community Development Permit Technician 318318321 C. Purchasing Procedure for Budgeted Items The following purchasing procedures apply to budgeted amounts, excluding architectural, surveying or engineering, legal, auditing, information technology or other professional services. o For budgeted items from $2,500.00 to $9,999.99, three (3) cost comparisons shall be obtained prior to all purchases. o For budgeted items from $10,000.00 to $19,999.99, three (3) written quotations shall be obtained prior to all purchases. o For budgeted items $20,000.00 and over, all purchases shall follow a competitive bidding process whereby bid specifications are developed, bids solicited, bids are received and evaluated by staff, and a recommendation is forwarded to the City Council for award/approval. The City Council reserves the right to waive the competitive bidding process upon the vote of 2/3 of the City Council members then holding office. D. Purchasing Procedure for Non-budgeted Amounts For all purchases that are not included in the annual fiscal year budget, a budget amendment request must be approved by the City Council prior to purchase, unless the actions are considered emergency in nature. Once approved, purchases may be made in accordance with the Expenditure Approval Authority set forth above. E. Purchasing Procedure – Emergencies For all purchases considered emergency in nature by the City Administrator or Mayor, such as threats to public health or safety, where immediate repairs to City property are required to protect or prevent against further loss or damage, or where immediate action is needed to prevent or minimize serious disruption to City services, competitive purchasing procedures, as directed by the Mayor or City Administrator under the circumstances, shall be used. The City Council shall be notified of the emergency circumstances and the expenditure amount, and the item will be presented for formal approval or ratification at the next regular meeting of the City Council. F. Change Orders Change orders $20,000.00 and over shall be brought before the City Council unless specifically authorized in the bid selection process. However, if a change order for any public works contract authorizes or necessitates any increase in the contract price that is fifty percent (50%) or more of the original contract price or that authorizes or necessitates any increase in the price of a subcontract under the contract that is fifty percent (50%) or more of the original subcontract price, then the portion of the contract that is covered by the change order must be resubmitted for bidding in the same manner for which the original contract was bid pursuant to the Public Works Contract Change Order Act, 50 ILCS 525. 319319322 Glossary of Terms Accrual Basis of Accounting: A method of accounting that recognizes the financial effect of transactions, events, and interfund activities when they occur, regardless of the timing of related cash flows. Activity: Specific or distinguishable type of work performed by a component of government for the purpose of accomplishing a function for which the government is responsible. Appropriation: Legal authorization by the City Council to make expenditures and to incur obligations for specific purposes. Assessed Valuation: A valuation set upon real estate or other property by a government as a basis for levying taxes. Availability Criterion: Principle of the modified accrual basis of accounting according to which revenues may only be recognized when they are collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Basis of Accounting: The timing of recognition, that is, when the effects of transactions or events should be recognized for financial reporting purposes. For example, the effects of transactions or events can be recognized on an accrual basis (that is, when the transactions or events take place), or on a cash basis (that is, when cash is received or paid). Bond: A written promise to pay a specific sum of money, called the face value or principal amount, at a specified date or dates in the future, called the maturity dates, together with periodic interest at a specified rate. Budget: The financial plan for the operation of a program or organization, which includes an estimate of proposed expenditures for a given period, and the proposed means of financing those expenditures. Budget Message: A general outline of the budget, which includes comments regarding the government’s experience during the past period, its financial status at the time of the message, and recommendations regarding the financial policy for the coming period. Budgetary Basis of Accounting: The method used to determine when revenues and expenditures are recognized for budgetary purposes. Business-Type Activities: Activities of the City that are financed in whole, or in part, by fees charged to external parties for goods or services. These activities are accounted for as enterprise funds and include the Airport, Transit, Parking, Golf Course, Boat Harbor, Marina, Ambulance, Refuse Collection, Landfill, Transfer Station, Water Pollution Control, and Collection and Drainage Funds. Capital Improvements Program: An annually updated plan or schedule of projected expenditures for public facilities and improvements which includes estimated project costs, sources of funding, and timing of work over a five-year period. For financial planning and general management, the program is presented as a plan of work and proposed expenditures and is the basis for appropriation requests and bond issues. 320320323 Capital Outlay: Fixed assets which have a value of $300 or more and have a useful economic lifetime of more than one year. Capital Projects Fund: Fund used to account for financial resources to be used for the acquisition or construction of major capital facilities. Commodities: Supplies required by the municipality in order to perform the services to its citizens. Community and Economic Development Function: Government function that provides for planning and development of the City including the social, physical and economic needs of the City. Activities included in this function are Planning, Zoning and Building Safety, Economic Development and the Municipal Housing Programs. Contractual Services: Services other than employee services such as contractual arrangements and consultant services, which may be required by the municipality. Culture and Recreation Function: This function promotes the general wellbeing of the City and encourages the fullest development of cultural and educational potentials of the citizens in the community. This function includes the activities of library, art center, parks and recreation, and cemetery. Debt Service Fund: A fund established to account for the accumulation of resources for and the payment of general long-term debt, principal, and interest. Depreciation: An appropriation is expended when a capital asset is acquired or constructed. By definition, a capital asset has a service life expected to extend over more than one fiscal period. The process of allocating the cost of a capital asset to the periods during which the asset is used is called depreciation. Encumbrances: Obligations in the form of purchase orders, and/or contracts, which are chargeable to an appropriation and for which a part of the appropriation is reserved. Enterprise Fund: A fund established to account for operations that are financed and operated in a manner similar to private business enterprises. The intent of a governing body is that the cost of providing goods and services to the general public on a continuing basis be financed or recovered primarily through user charges or where the governing body has decided that periodic determination of revenues earned, expenses incurred and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes. Expenditures: The cost of goods received or services rendered for the government unit. For the City of McHenry, expenditures are charged against an appropriation when incurred, not when paid. Fiscal Policy: The City of McHenry’s policy with respect to taxes, spending and debt management as they relate to government services, programs, and capital investments. Fiscal Year: A twelve-month period to which an annual operating budget applies. 321321324 Fringe Benefits: Benefits paid by the City of McHenry for social security, retirement, group health, life, dental and long-term disability insurance. It also includes costs for worker’s compensation and unemployment. Function: A group of related activities aimed at providing a major service or regulatory program for which a government is responsible. Fund: The fiscal and accounting entity with a self-balancing set of accounts recording cash and other financial resources together with all related liabilities and residual equity or balances and changes therein which are segregated for the purpose of carrying out specific activities or obtaining certain objectives in accordance with special regulations, restrictions or limitations. Fund Balance: Funds remaining after the application of available revenues and resources to support expenditures for the fund. General Fund: A fund used to account for all financial resources except those required to be accounted for in another fund. General Government Function: Function that provides for the operation of the government and assures the general administration of the municipality. Activities included in this function are mayor and council, legal services, city administrator, human resources, wellness program, finance, computer operations, risk management, and buildings and grounds. General Obligation Bonds: Bonds for the payment of which the full faith and credit of the issuing government are pledged. Goal: Broad statement of desired results for the city, department, and/or activity relating to the quality of services to be provided to the citizens of McHenry. Governmental Funds: Funds generally used to account for tax-supported activities. There are five different types of governmental funds: the general fund, special revenue funds, debt service funds, capital projects funds, and permanent hinds. Health and Social Services Function: Government function which provides for assistance to service agencies involved in providing health and social services in the community. For the City, this function includes the Economic Well-Being activity. Intergovernmental Revenues: Revenue from other governments, primarily in the form of Federal and State grants, but may also be payments from other local governments. Internal Service Fund: A fund used to account for the financing of goods and services provided by one department or agency to other departments or agencies of a government on a cost-reimbursement basis. Legal Debt Martin: The excess of the amount of debt legally authorized over the amount of debt outstanding. Level of Service: Generally used to define the existing or current services, programs and facilities provided by the government for its citizens. Level of service of any given activity may be increased, decreased, or remain the same depending upon the needs, alternatives, and available resources. 322322325 Levy: The total amount of taxes, special assessments, or service charges imposed by a government to support governmental activities. Modified Accrual Basis of Accounting: Basis of accounting according to which (a) revenues are recognized in the accounting period in which they become available and measurable and (b) expenditures are recognized in the accounting period in which the fund liability is incurred, if measurable, except for unmatured interest on general long-term debt and certain similar accrued obligations, which should be recognized when due. Objectives: Specific measurable achievements that an activity seeks to accomplish within a given time frame, which are directed to a particular goal. An objective should be stated in terms of results, not processes or activities. For the City of McHenry, departmental objectives are included in the department’s budget request. Ordinance: A formal legislative enactment by the governing body of a municipality. Performance Measurement: Commonly used term for service efforts and accomplishments reporting. Permanent Funds: A fiduciary fund type used to report resources that are legally restricted to the extent that only earnings, and not principal, may be used for purposes that support the reporting government’s programs. Personal Services: Expenditures for salaries, wages, and related employee benefits for persons employed by the municipality. Proprietary Funds: Funds that focus on the determination of operating income, changes in net assets (or cost recovery), financial position, and cash flows. There are two different types of proprietary funds: enterprise funds and internal service funds. Public Safety Function: Government function that provides for services to reduce the amount and effects of external harm to individuals and damage to property, and in general to promote an atmosphere of personal security from external events. Police, animal control, communications, fire, and civil defense activities are included in this function. Public Works Function: Government function that provides for safe and well-maintained infrastructure for the City. Activities included in this function are public works administration, roadway maintenance, snow and ice control, street cleaning, traffic control and engineering. Resolution: An order of a legislative body requiring less legal formality than an ordinance; additionally, it has less legal status. Revenue: Income received by the City of McHenry to support the government’s program of services to the citizens. Income includes such items as property tax, fees, user charges, grants and fines. Special Assessment: A compulsory levy made against certain properties to defray part or all of the cost of a specific improvement or service deemed to primarily benefit those properties. Special Revenue Funds: Funds used to account for proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes. 323323326 Taxable Valuations: Valuations set upon real estate or other property by a government as the basis for levying taxes. Taxes: Compulsory charges levied by government for the purpose of financing services performed for the common benefit. This does not include specific charges made against particular persons or property for current or permanent benefits such as special assessments. Trust and Agency Funds: Funds used to account for assets held by a government in a trustee or agent capacity for individuals, private organizations, other governments, and/or other finds. 324324327 PROCLAMATION National Therapy Animal Day There are thousands of Pet Partners therapy animal teams serving in communities across the United States; and WHEREAS, Pet Partners has designated April 30 as National Therapy Animal Day; and WHEREAS, scientific research shows that interacting with therapy animals can reduce stress, relieve depression, slow heart rate, lower blood pressure and strengthen the immune system; and WHEREAS, therapy animal teams in the Town of McHenry play an essential role in improving human health and well-being through the human-animal bond; and WHEREAS, therapy animal teams interact with a variety of people in our community including veterans, seniors, patients, students, and those approaching end of life; and WHEREAS, these exceptional therapy animals who partner with their human companions bring comfort and healing to those in need; and WHEREAS, we encourage more pet owners to consider becoming Pet Partners volunteers to help our community by creating greater access to meaningful therapy animal visits. NOW, THEREFORE, I, Wayne Jett, Mayor of the City of McHenry, do hereby proclaim April 30, 2025, as: “National Therapy Animal Day” in the City of McHenry, and encourage our citizens to celebrate our therapy animals and their human handlers. Further, I publicly salute the service of therapy animal teams in our community and in communities across the nation. PROCLAIMED this 21st day of April, 2025. _______________________________ Mayor Jett 328 1 City of McHenry—City Administrator Fully Amended and Restated Employment Agreement--2025 In consideration of the mutual covenants herein contained, the parties agree that this fully amended and restated employment Agreement (“2025 Agreement”) is made and entered into this _____ day of April, 2025 (“Effective Date”) by and between the City of McHenry (“City”) and Suzanne Ostrovsky (“Employee”). 1. Current Employment. The City currently employs Employee under the terms of an existing Employment Agreement dated November 22, 2023 (“Original Agreement”). It is the intent of the Parties hereto that this 2025 Agreement fully amend and restate the Original Agreement. 2. Duties. The Employee shall perform functions and duties specified in the McHenry City Code, as amended from time to time, report directly to the Mayor on a day-to-day basis and be accountable to the Mayor and City Council with regard to job performance. 3. Term. The term of this 2025 Agreement shall begin on the Effective Date and expire on April 30, 2029, unless sooner terminated as provided for herein. 4. Termination and Severance Pay. a. Either party hereto may terminate this 2025 Agreement prior to April 30, 2029, for any reason or no reason at all, upon written notice to the non-terminating party, it being acknowledged that Employee is an at-will employee of the City. b. Employee shall be deemed to have been terminated, and Severance Pay, hereinafter defined, shall be granted, upon the occurrence of any of the following: i) City reduces the salary or other financial benefits of Employee in a greater percentage than the average reduction applicable generally to City department heads; ii) City refuses, following written notice, to comply with any provision of this Agreement; iii) Employee resigns following a suggestion or directive to do so, whether formal or informal, and made concurrently by a majority of the Mayor and the City Council, or; iv) The Mayor and the City Council discharges Employee for any reason other than for Cause, as defined in Section 3(c) of this 2025 Agreement. “Severance Pay” shall be: i) an amount equal to twenty (20) weeks of Employee’s annual base salary at the time of such termination, less employment taxes withheld; and ii) during the twenty (20) week period following such termination, Employee and Employee’s dependents shall remain in the group health and life plans (medical, dental, vision and life insurance) and the City shall cover the cost of the employee’s monthly premiums and that of her dependents for the duration of the 20-week period. Severance Pay shall commence as of 329 2 the day following the date of employment termination and shall be paid in the form of salary continuation, in accordance with the regular payroll practices of the City. Employee’s rights under COBRA shall commence twenty (20) weeks after the date of employment termination. Employee shall also be entitled to compensation for all accrued benefits to date, calculated based on Employee’s annual base salary at the time of termination. Employment benefits no longer accrue after the date of employment termination. c. In the event the City terminates the employment of Employee and this 2025 Agreement for Cause, hereinafter defined, no Severance Pay or other non-accrued benefits will be paid or provided to the Employee. For purposes of this provision, Cause is hereby defined to include, but not limited to the following: (i) Employee committing an act of insubordination including refusal to take legal, valid action that is clearly within the scope of Employee’s employment when specifically directed to do so by a majority of the City Council, including the Mayor, at a duly noticed public meeting; or (ii) Employee has been charged with, and found guilty of, a felony as defined under the Illinois Compiled Statutes; or (iii) Employee has materially failed to perform Employee’s duties as determined in the discretion of the Mayor and the City Council, despite prior written warning and the provision of a thirty (30) day opportunity to cure; or (iv) Employee has willfully and deliberately caused or allowed any practice, activity, decision, or organizational circumstance which is either illegal or in violation of the City Ethics Ordinance or the ICMA Code of Ethics; or (v) any act or omission defined as “misconduct” pursuant to 5 ILCS 415/5. d. Employee may terminate this Agreement (including resignation) upon thirty (30) days’ written notice to the City unless the parties agree otherwise. In the event Employee terminates or resigns from her employment with the City, Employee shall not be entitled to Severance Pay. e. In the event Employee obtains employment by another employer while receiving any Severance Pay hereunder, all Severance Pay shall immediately terminate upon commencement of reemployment of Employee, and it shall be the duty of the Employee to notify the City immediately of the commencement of employment of Employee following separation from the City. 5. Salary. a. Beginning on the Commencement Date of this 2025 Agreement, through April 30, 2026, the City shall pay Employee for Employee’s services rendered pursuant hereto an annual salary of $209,895.00, payable in installments at the same time as the other employees of the City are paid. b. Through the expiration date of this Agreement and Employee’s employment, this Agreement shall be deemed to be automatically amended to reflect any future salary and/or benefit adjustments that are provided through any percentage, including performance/merit increase, that are approved for the general workforce in the City’s Personnel Policies and Procedures Manual. Employee’s salary and/or benefits may be further 330 3 adjusted as deemed appropriate by the Mayor and the City Council based on the Employee’s annual performance evaluation. 6. Vacation. The Employee shall accrue vacation time annually equivalent to the maximum accrual available to other employees, as provided for in the City’s Personnel Policies and Procedures Manual. 7. Sick Time and Other Benefits. The Employee shall receive sick leave and other benefits as annually provided by in the City’s Personnel Policies and Procedures Manual at the same level as other employees of the City. 8. Performance Evaluation. The Mayor and the City Council shall use its best effort to review and evaluate the performance of the Employee by January 31 of each year, or by a date mutually agreed annually by the City and Employee. 9. Residency Requirements. Employee shall live within a reasonable distance of the corporate boundaries to be mutually agreed upon by the Mayor and City Council and Employee. 10. Automobile. Employee is responsible to maintain, repair and insure a vehicle owned by Employee for Employee’s use while performing City business, at Employee’s own expense, for which Employee shall receive a monthly car allowance of $600, payable with the first paycheck of each month. 11. Technology. The City shall provide Employee with a laptop computer as well as a smart phone to be used primarily for business purposes. 12. Health and Life Insurance. a. The City shall pay for health, dental, and vision insurance for the Employee and Employee’s dependents in the same manner generally provided to other employees. b. The City shall purchase and pay the required premiums on a $100,000 term life insurance policy with the beneficiary named by the Employee to receive the benefits paid. This policy shall be in effect for the duration of time the Employee is employed by the City. 13. Dues, Subscriptions and Professional Development. The City shall budget for and pay for: a. Professional dues, subscriptions and professional development costs for Employee’s membership in the International City/Council Management Association (ICMA), the Illinois City/County Management Association (ILCMA), National League of Cities (NLC), the Metropolitan Managers Association, the Legacy Project, and participation in the ICMA credentialed manager program, as well as such other national, regional, state and local government groups and committees, subject to funds budgeted and available and deemed appropriate by mutual agreement; 331 4 b. Travel and subsistence expenses of Employee for professional official travel, meetings and occasions adequate to continue the professional development of the Employee and to adequately pursue necessary official functions for the City, including but not limited to the ICMA Annual Conference, ILCMA conferences and such other national, regional, state and local governmental groups and committees thereof which the Employee serves as a member, subject to funds budgeted and available and deemed appropriate by mutual agreement; c. Travel and subsistence expenses of Employee for short courses, institutes and seminars that are necessary for Employee’s professional development and for the good of the City, subject to funds budgeted and available and deemed appropriate by mutual agreement; and d. No more than two memberships plus expenses incurred by Employee of such local civic clubs or organizations chosen by Employee, subject to funds budgeted and available and deemed appropriate by mutual agreement. 14. Personnel Rules. Unless otherwise provided herein, the personnel rules of the City, as in effect from time to time, shall apply to the employment of Employee. 15. Indemnification. The City shall defend, save harmless, and indemnify Employee as provided by any City ordinance or relevant Illinois law and against any lawsuit, claim, demand or other legal action arising out of an alleged lawful act or omission in the performance of and within the scope of Employee’s duties as City Administrator. Employer: Employee: By By Wayne S. Jett, Mayor Suzanne E. Ostrovsky 332 Chief of Police John R. Birk McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2200 Fax: (815) 363-2149 www.ci.mchenry.il.us CONSENT AGENDA SUPPLEMENT TO: Mayor and City Council FROM: John R. Birk, Chief of Police FOR: April 21, 2025 RE: Authorization to Purchase 4 City Vehicles for FY 25/26 Attachments: Sunnyside Company Invoice/Order Forms and Bid 25-7580 Award Sheet Agenda Item Summary: Staff is seeking Council’s authorization the purchase five City fleet vehicles for the Police Department. Staff is present to answer any questions Council may have. Background: With the supply, demand and delivery issues surrounding vehicle purchasing and extremely high inflation costs, Staff has looked for alternative methods to acquire new vehicles. Ordering patrol police vehicles in a timely manner has been difficult for the past few years. In FY 23/24 and FY 24/25, Council approved the purchase of Dodge Durango PPVs (police pursuit vehicles), as these vehicles cost less than the Ford comparable PPV and maintenance records for the Durango show a reduced cost for vehicle repair and maintenance. The FY 25/26 Capital Investment Plan lists four new police vehicles for replacements. Analysis: As done in the previous fiscal year, staff has begun the process of purchasing four police Dodge Durango PPV SUVs to replace existing police vehicles at the end of useful life. The Durango continues to have a good service record over the last three years as we have seen a reduction in repair and maintenance costs associated with the Durango as compared to other make/model vehicles in the fleet. Overall vehicle pricing for the Durango remains lower than other police PPV rated vehicles. Staff met with Sunnyside Dodge Company in McHenry. Sunnyside is the current bid winner (BID 25-7580) for 2025 Dodge Durango for McHenry County. Because of this competitive Bid Award, Sunnyside is able to offer us the identical competitive pricing for the purchase of the 2025 Dodge Durango. The current pricing on all Dodge police vehicles is only valid until May 1, 2025, at which time the contract expires, and pricing will go up. Furthermore, Sunnyside is able to place orders for these four vehicles prior to the May 1st, 2025 deadline, which would allow staff to take delivery of the vehicles between July and September of 2025. Ordering now will allow us to take delivery of the vehicles and get them upfitted prior to the end of FY 25/26. Competitive Pricing from Sunnyside Dodge (Contract #25-7580) for these four vehicles is as follows:  Vehicles #1 and #2 (1 blue & 1 Grey) $41,360 per unit (MSRP $47,345) 333  Vehicles #3 and #4 (black) $41,634 per unit (MSRP $47,255). See attached invoices/order forms for full details. Total savings between Competitive Bid 25-7580 and MSRP is $23,212. Recommendation: Staff requests City Council authorization to order/purchase four 2025 Dodge Durango police pursuit vehicles through McHenry County BID 25-7580, with payment and delivery in FY 25/26, for an amount not to exceed $165,988. 334 335 336 337 BOARDS, COMMISSIONS, APPOINTMENTS Administration Name Expiration Acting Public Works Director Russ Adams 04/30/26 City Administrator Suzanne Ostrovsky 04/30/26 Deputy City Clerk Monte Johnson 04/30/26 Finance Director/City Treasurer Carolyn Lynch 04/30/26 Municipal Consulting Firms Administrative Adjudication Officer Mollie Dahlin 08/31/26 Corporate Attorney Zukowski, Rogers, Flood & McArdle 04/30/26 Labor Attorney Clark Baird Smith LLP 04/30/26 Labor Attorney Ottosen, Britz, Kelly, Cooper & Gilbert, Ltd 04/30/26 Traffic Court Attorney Zukowski, Rogers, Flood & McArdle 04/30/26 Boards and Commissions Board of Police Commissioners John Jones 04/30/28 (3-year term) Susan Meyer 04/30/28 John Smith 04/30/26 Emergency Services & Disaster Commercial Building Inspector 04/30/26 (1-year term) MTFPD Chief 04/30/26 Police Commander 04/30/26 Public Works Director 04/30/26 Ethics Commission John Jones 04/30/27 (2-year term) Susan Meyer 04/30/26 John Smith 04/30/27 Landmark Commission Kirk Donald 04/30/26 9 members, (1-year term) Kathryn Frey 04/30/26 Mark Healy 04/30/26 Celeste Heidemann 04/30/26 Thomas Hillier (Chair) 04/30/26 Zelinda Paluch 04/30/26 Beth Staley 04/30/26 Donna Storm 04/30/26 Laura Welter 04/30/26 338 Planning and Zoning Commission Michael Beattie 04/30/26 7 members, (1-year term) Dawn Bremer 04/30/26 Dan Gleason 04/30/26 Mike Lehman 04/30/26 Terence Locke 04/30/26 Bryan Riley 04/30/26 Stacy Rockweiler (Chair) 04/30/26 Police Pension Board of Trustees Nicholas Clesen (active) - Elected 04/30/27 (2-year term, Jeff Foerster (retired) - Elected 04/30/27 3 elected, 2 appointed) Roger Hendrickson (active) - Elected 04/30/26 Monte Johnson - Appointed 04/30/27 James A Schmidt - Appointed 04/30/26 339 Wayne Jett Jr, Mayor City of McHenry 333 S Green St McHenry, Illinois 60050 Phone: (815) 363-2108 www.cityofmchenry.org The City of McHenry is dedicated to providing the citizens, businesses and visitors of McHenry with the highest quality of programs and services in a customer-oriented, efficient and fiscally responsible manner. AGENDA SUPPLEMENT DATE: April 21, 2025 TO: McHenry City Council FROM: Monte Johnson, Deputy City Clerk RE: Liquor License Annual Renewal Agenda Item Summary: Annual Renewal of City of McHenry Liquor Licenses effective May 1, 2025, through April 30, 2026. Background: Pursuant to Title 4, Chapter 2, of the McHenry City Code, owners of establishments serving and/or selling alcoholic beverages located in the City limits shall annually renew their liquor licenses prior to the end of the current fiscal year on April 30, 2025. Analysis: Attached is a list of all liquor licenses issued by the City that are presented for renewal. Don’s Subs is closing at the end of April and will not be renewing their Class B liquor license. If they open at a new location, they will be required to re-apply for a new liquor license. Marulli Event Co (Smith’s Central Garage), located at 3315 Pearl Street, is not renewing their Class A liquor license. The changes in licensing for Don’s Subs and Marulli Event Co require a new ordinance to be passed to establish new limits. Use this link to see a map view of all liquor and video gaming establishments: https://mchenry.maps.arcgis.com/apps/webappviewer/index.html?id=bb7325e838c84d0fa18c abc928f55b16 Recommendation: A motion is recommended to approve FY 2025/26 liquor license renewals effective May 1, 2025, through April 30, 2026, as presented conditioned upon receipt of paperwork and payment of fees; and to pass an Ordinance Amending Section 4-2-6, Relating to Class A and Class B Liquor Licenses, of the McHenry City Code. 340 FY 25-26 Liquor Licenses Class A – Full Bar Business Address 3 Queens 810 N Front St 31 North 217 N Front St Addison’s Steakhouse 335 Front St After The Fox 1406 N Riverside Dr Applebee’s Neighborhood Bar & Grill 1700 N. Richmond Rd. Big Fran's Boardwalk Gaming 3401 W. Elm Street Bimbo's Restaurant 1318 N. Riverside Drive Buddyz Pizza 1138 N. Green Street Buffalo Wild Wings 3343 Shoppers Drive Candy's Cocktails & Canapes 4005 W Kane Unit L Annie's 4117 W. Shamrock Lane Chili’s Grill & Bar 2409 N. Richmond Road El Vado 929 N Front St DC Cobbs 1204 N. Green Street Toast and Roast 1250 N Green St Green Peapod Restaurant 1225 N. Green Street Hub Market 1210 N. Green Street Jexal’s Wing-Zeria 1260 N. Green Street Liberty Club - PLAV 1304 Park Street Lucky Poker 700 N Front Street Main Street Station 4005 W. Main Street McHenry American Legion Post #491 1331 N. Riverside Drive McHenry Brewing Co. 3425 Pearl Street Courthouse 1401 N Riverside Dr 341 Moe's On Main 3914 W. Main Street My Place Bar & Grill 4621 W. Elm Street Plum Garden Restaurant 3917 Main Street Salerno's Pizzeria & R Bar 621 Ridgeview Drive Tacos El Norte 4318 W. Elm Street Ye Olde Corner Tap 3901 Main St Gamblur 1232 North Green Street Old Bridge Tavern 1334 N. Riverside Drive Olive Garden Restaurant 3451 Shopper Drive Addison's Steakhouse (Country Club) 820 N John St Uprooted 2816 W. Route 120 VFW Veterans Club 3002 W. Route 120 Vickie’s Place 1211 N. River Road Village Squire 4512 West Elm Street Vixen 1208 N Green Whiskey Diablo 1325 Riverside Bolgers 1259 N Green St Shelly's 4300 W Elm St Epic Deli 2616 Schaid Ct Cantaritto's Bar & Grill 1228 N Green McHenry Steki 3918 Main St Leona's Pizzeria 3102 W IL Route 120 Lighthouse Wines 1402 Riverside Dr, Unit B Foxhole Pizza and Pub 3308 W Elm St That Bar on 31 404 S. Rt 31 342 Class A-1 – Limited Full Bar Treehouse Play Café 2328 N Richmond Class B – Table Service Betty's Bistro 1771 North Richmond Road Brunch Café 414 S. Route 31 Restaurante Hondureno Bustillo Matute LLC 4113 W Shamrock Ln Green Street Café 1219 N. Green Street Kim & Patty’s Café 731 Ridgeview Drive Laceys' Place 3515 Diamond Drive Elsa's 341 Front Street Meat & Potato Eatery 400 S. Rt. 31 Sakura 2302 N. Richmond Road Stella's Place 1720 N. Richmond Road Sushi King 2078 Richmond Road The Patroons Mexican Restaurant 4005 Kane St., Suite G Windhill Pancake Parlor 3307 W Elm St La Trinidad Restaurant 4401 Elm St Class C – Packaged 3110 Food Mart 3110 W Rt 120 Aldi 2226 N Richmond Road Angelo's Fresh Market 4400 West Elm Street Binny's Beverage Depot 4610 W Elm Casey's 1901 N. Richmond Road Bull Valley BP 5301 Bull Valley Road CVS Pharmacy #10470 3900 West Elm Street Family Food Mart 810 North Front Street TRIO 5520 W Elm St Marathon Crystal Lake 4608 W. Crystal Lake Road Jewel Food Store 4222 W Elm St 343 La Huerta Carniceria 4605 West Elm Street Heavenly Liquor and Tobacco 3012 W IL Route 120 Units A & B Marathon Elm St 4713 W Elm St McHenry BP 508 S Rt 31 McHenry Liquors, Inc. 1782 Richmond Road Meijer Store #218 2253 Richmond Road Navya Food & Liquor 3808 West Elm Street Osco Drug Store 4222 West Elm Street Munson Ski & Marine 3112 W Lincoln Road Sam's Liquors & Wine 520 South Route 31 Shamrock Convenient Food & Liquor Store 4105 Shamrock Lane Walgreens 3925 West Elm Street Thorntons 2108 W. Illinois Roue 120 Hampton Inn 1555 S IL Route 31 Patina McHenry LLC 1202 Riverside Drive Unit 10 Class E – BYOA Pink Nails 1226 N Green St Lumber and Twine 3430 W Elm St Studio Art School 3316 Pearl Street Class G – Limited Service and Package All Marine Retro Rentals 1202 N Riverside Dr Unit 11 Class H – Limited Service Twisted Limits Axe Throwing Lounge 1722 N Richmond  Highlighted businesses have been approved for liquor but are not yet operating. 344 ORDINANCE NO. 25- An Ordinance Amending Section 4-2-6, Relating to Class A and Class B Liquor Licenses, 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-1, of the Municipal Code relating to liquor license classifications, shall be amended as follows: D.1. Class A (Full Bar) License: Issuance of a Class A license shall authorize the sale of alcoholic liquor for consumption on the premises, and the retail sale of packaged liquor. The annual fee for such licenses shall be one thousand five hundred dollars ($1,500.00). A Class A licensee shall be eligible to apply for a catering endorsement for an additional fee of three hundred dollars ($300.00), which shall permit the servicing of alcoholic liquor for off-site consumption as an incidental part of food service, sold at a package price, as agreed upon under contract. Nonprofit organizations with a Class A license shall be eligible to pay a reduced fee of five hundred dollars ($500.00) per year to receive and maintain a Class A license. No more than forty-nine (49) Class A licenses shall be in force in the City at any time. SECTION 2: Section 4-2-6, subsection D-3, of the Municipal Code relating to liquor license classifications, shall be amended as follows: D.3. Class B (Service) License: Issuance of a Class B license shall authorize the sale of alcoholic liquor, for consumption on the premises only when served as follows. No full bar is permitted. a. Restaurant Table Service: All sales, service, and consumption conducted at tables; and b. Theatre And Entertainment Service: All sales and service conducted over a concession counter with consumption in theater and entertainment center seats; and c. Mixed Use Service: All sales and service conducted at tables or over a temporary counter and consumption within the defined area of the mixed use special event facility. The annual fee for a Class B license shall be eight hundred dollars ($800.00). No more than fourteen (14) Class B licenses shall be in force in the City at any time. SECTION 3: If any section, paragraph, subdivision, clause, sentence or provision of this Ordinance shall be adjudged by any Court of competent jurisdiction to be invalid, such judgment shall not effect, impair, invalidate or nullify the remainder thereof, which remainder 345 shall remain and continue in full force and effect. SECTION 4: All ordinances, or parts thereof, in conflict herewith are hereby repealed to the extent of such conflict. SECTION 5: This ordinance shall be published in pamphlet form by and under the authority of the corporate authorities of the City of McHenry, Illinois. SECTION 6: This ordinance shall be in full force and effect from and after its passage, approval and publication, as provided by law. Passed this 21st day of April, 2025. 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 346 Wayne Jett Jr, Mayor City of McHenry 333 S Green St McHenry, Illinois 60050 Phone: (815) 363-2108 www.cityofmchenry.org The City of McHenry is dedicated to providing the citizens, businesses and visitors of McHenry with the highest quality of programs and services in a customer-oriented, efficient and fiscally responsible manner. AGENDA SUPPLEMENT DATE: April 21, 2025 TO: McHenry City Council FROM: Monte Johnson, Deputy Clerk RE: Video Gaming License Annual Renewal Agenda Item Summary: Annual Renewal of City of McHenry Video Gaming Licenses effective May 1, 2025, through April 30, 2026. Background: Pursuant to Title 4, Chapter 6, of the McHenry City Code, owners of video gaming establishments located in the City limits shall annually renew their licenses prior to the end of the current fiscal year on April 30, 2025. Analysis: Attached is a list of video gaming licenses issued by the City that are presented for renewal. Don’s Subs is closing at the end of April and will not be renewing their video gaming license. If they open at a new location, they will be required to re-apply for a new video gaming license. Main Street Station is also not renewing their video gaming license. An ordinance must be passed to lower the number of video gaming establishment licenses due to these reductions. Use this link to see a map view of all liquor and video gaming establishments: https://mchenry.maps.arcgis.com/apps/webappviewer/index.html?id=bb7325e838c84d0fa18c abc928f55b16 Recommendation: Motion to approve the FY 2025/26 video gaming license renewals effective May 1, 2025, through April 30, 2026, as presented conditioned upon receipt of paperwork and payment of fees; and to pass an Ordinance Amending Section 4-6-8, Subsection A – Pertaining to the Number of Video Gaming Licenses of the McHenry City Code. 347 FY 25-26 Video Gaming Licenses Business Address # Terminals Gamblur 1232 Green Street 6 Vickie's Place 1211 N. River Road 4 McHenry Steki 3918 Main St 5 After the Fox 1406 N Riverside Dr 6 Candy's Cocktails & Canapes 4005 Kane Ave, Unit L 6 VFW 3002 W. Route 120 6 Old Bridge Tavern 1334 N. Riverside Drive 6 My Place Bar & Grill 4621 W. Elm Street 6 Annie's 4117 W. Shamrock Lane 6 Salerno's 621 Ridgeview Drive 6 Village Squire 4512 West Elm Street 6 Foxhole Puzza and Pub 3308 W Elm Street 5 Plum Garden 3917 Main Street 6 Stella's 1720 N. Richmond Road 6 Green Street Café 1219 N. Green Street 4 TRIO 5520 W Elm St 6 Big Fran's 3401 W. Elm Street 6 348 DC Cobbs 1204 N. Green Street 5 Betty's Bistro 1771 North Richmond 6 Lucky Poker 700 N Front Street 6 Liberty Club - PLAV 1304 Park Street 6 Shelly's 4300 W Elm 6 Patroons 4005 Kane St., Suite G 6 Meat & Potato Eatery 400 S. Rt. 31 6 El Vado 929 N. Front Street 6 Ye Olde Corner Tap 3901 Main St 3 Moe's on Main 3914 W. Main Street 6 Uprooted 2816 W. Route 120 6 Elsa's 341 Front Street 6 3 Queens 810 N Front St 6 Lacey's Place 3515 Diamond Drive 6 Addison's Steakhouse (Country Club) 335 Front St 3 Epic Deli 2616 Schaid Ct 6 Hub Market 1210 N Green 4 Buddyz 1138 N. Green Street 6 Jexal's 1260 N. Green Street 6 349 American Legion 1331 N Riverside Dr 6 Addison's Steakhouse 820 N John St 5 Courthouse 1401 N Riverside Dr 6 Vixen 1208 N Green St 6 Whiskey Diablo 1325 Riverside 6 Bolgers 1259 N Green St 5 Leona's Pizzeria 3102 W IL Route 120 6 Toast and Roast 1250 N Green St 6 Thorntons Store 344 2108 W Route 120 6 That Bar on 31 404 Route 31 6  Highlighted businesses have been approved for video gaming but are not yet operating. They are still waiting on approval from the State or have not yet opened. 350 ORDINANCE NO. 25- Amending Section 4-6-8, Subsection A – Number of Licenses, 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: Title 4, Chapter 6, Video Gaming Terminals, Section 4-6-8, Subsection A - Number of Licenses, of the Municipal Code shall be amended as follows: 4-6-8: Number of Licenses A. The total number of location licenses for video gaming terminals issued under this chapter shall not exceed 46. 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 21st day of April, 2025. 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 351 352 353 354 355 356 357 358 . City of McHenry Council Meeting Minutes 4.7.25 MINUTES REGULAR CITY COUNCIL MEETING Monday, April 7, 2025, 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, 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, Acting Director of Public Works Adams, Deputy Clerk Johnson, and City Clerk Ramel. Pledge of Allegiance: Mayor Jett led the Pledge of Allegiance. Public Comment: None Promotion Ceremony: Chief Birk led the promotion of the following individuals, including a pin added to their uniforms by a family member; after the promotion, there was a cake ceremony.  Tracy McNamara-Lead 911 Telecommunicator  Farrah Cvitkovic-Lead 911 Telecommunicator  Eileen Beidelman- Lead 911 Telecommunicator  Consent Agenda. Motion to Approve the following Consent Agenda Items as presented: A. Resolution Designating May 4 through May 10, 2025, as National Small Business Week in the City of McHenry, McHenry County, Illinois (Director Martin) C. Authorize the Mayor to bind the City of McHenry for contractual obligations with the State of Illinois for the CMS CY2025-CY2026 Rock Salt Joint Participation Agreement (Deputy Clerk Johnson) D . Authorize the City Administrator to sign Heartland Quote #37057 and the City to make a one-time annual payment in May of 2025, to Heartland Business Systems for Microsoft Licensing, in an amount not to exceed $54,969.12 (Chief Birk) E. Parks & Recreation Facilities & Special Use Permit Requests 359 City of McHenry Council Meeting Minutes 4.7.25 2 F. March 17, 2025 City Council Meeting Minutes G. Issuance of Checks for $328,204.86 A motion was made by Alderwoman Miller and seconded by Alderman McClatchey 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. *Clerk's Note Alderwoman Bassi pulled this Consent Agenda Item. B. Video gaming license to Graham Enterprise, Inc., dba Trio – 138 at 5520 W Elm Street, and if approved, a motion to pass an Ordinance Amending Section 4-6-8, Subsection A – Pertaining to the Number of Video Gaming Licenses, of the McHenry City Code (Deputy Clerk Johnson) A motion was made by Alderwoman Miller and seconded by Alderman Santi to approve the Consent Agenda Item as presented: Roll Call: Vote: 6 ayes: Alderman Santi, Alderman Glab, Alderman McClatchey, Alderman Davis, Alderman Koch, Alderwoman Miller. 1-nays- Alderwoman Bassi, 0-abstained. Motion carried. Alderwoman Bassi would like a separate vote on this, stating that it should not be located by the junior high has already voted no on this during earlier in an earlier meeting in March, regarding this. Alderman Santi asked about state approval vs. city approval, and it was clarified by staff. Individual Action Item Agenda A. Mural Installation A motion to pass an Ordinance Authorizing the Mayor’s Execution of an Agreement for a Mural Installation at 3425 Pearl Street (Director Martin) Director Martin explained that the City will be contributing $ 9,500 to this project; the property owner will take care of the prep work, power washing, and application. The muralist and the property owner take over the rest of it, including the maintenance of the mural, as presented by Director Martin. Alderman Koch wanted clarification on where the money is coming from, budgeted from the Tourist Fund. 360 City of McHenry Council Meeting Minutes 4.7.25 3 Alderman Glab wanted to know if the mural will be around the lighting or how it will be installed. it was confirmed by Director Martin that the lighting needs to be removed, and much of it incorporates the windows of the building. Stated that it is promoting a couple of beers on the Riverwalk, not sure that he wanted this mural to promote this. Alderman Santi stated that there are a lot of aspects incorporated into the mural here besides the beer, but he likes the overall presentation. A motion was made by Alderman McClatchey and seconded by Alderman Davis to approve Individual Agenda Items as presented: Roll Call: Vote: 6-ayes: Alderman Santi, Alderman Davis, Alderwoman Bassi, Alderman Koch, Alderwoman Miller. 1-nays-Alderman Glab. 0-abstained. Motion approved. B. 2025 Road Program A motion to award the 2025 Road Program to Curran Contracting Company of Crystal Lake, Illinois, in the amount of $1,847,900.46, and approve a construction contingency in the amount of ten percent (10%) of the awarded contract price ($184,790.05); and to pass a Resolution for Maintenance authorizing the use of $2,032,691 of State Motor Fuel Tax Funds for the project (Acting Director Adams) According to Acting Director Adams, 6.1 miles of road resurfacing is looking to be achieved with these funds. Alderman Glab stated that this is the last year for the 5 years of the rating program for the roads; it was confirmed by staff. He is hoping that the use of the roads will be looked at, as emphasized by him several times before. Alderwoman Miller asked Director Adams what the minus signs mean on the map that was provided to the Council in the packet visual. It was confirmed that the level of paving being done on that road. Alderman Davis asked about the estimated time, and it was confirmed by Acting Director Adams that he will be meeting with them and should have more information after that. Alderman Koch asked if Director Adams sends bids to all asphalt companies, and it was confirmed that they do advertise it to allow companies to bid. A motion was made by Alderman Santi and seconded by Alderman Koch to approve Individual Agenda Items as presented: Roll Call: Vote: 7-ayes: Alderman Santi, Alderman Glab, Alderman Davis, Alderwoman Bassi, Alderman Koch, Alderwoman Miller. 0-nays 0- abstained. Motion approved. 361 City of McHenry Council Meeting Minutes 4.7.25 4 C. Zoning Text Amendments Motion to pass an Ordinance Granting Various Zoning Text Amendments to the City of McHenry Zoning Ordinance (Director Polerecky) Alderman Glab stated that over the years, fewer and fewer things keep coming back to The Council, to make it easier for the developers, but we are here to make it better for the residents. Cannot see voting for this and is against it. Alderman Santi stated that the overall picture is an efficiency level that could benefit the City and the staff who work here. It presents to the developers what is allowed and what is not allowed. Alderwoman Miller stated that having the Text Amendments gives it more of a launching pad. Alderman Davis was looking for clarification, as Director Polerecky explained things further regarding drive-throughs. The only one that was denied was next to residential, which encourages it to go through the process. This conversation went on for some time. A motion was made by Alderman Santi and seconded by Alderwoman Miller to approve Individual Agenda Items as presented: Roll Call: Vote: 6-ayes: Alderman Santi, Alderman Glab, Alderman Davis, Alderman Koch, Alderwoman Miller. 1-nays-Alderwoman Bassi 0- abstained. Motion approved. Discussion Item Agenda A. Budget Presentation (City Administrator Ostrovsky) Second Budget Presentation Outlined below: Agenda: Revisions – additional funds- consensus for budget to pass at next meeting. General Fund Changes:  Community Development decrease  Police Department salaries FOIA Officer from part-time to full-time Special Revenue Funds:  Tourism Fund  Pageant Fund  Band Fund  Civil Defense Fund  Alarm Board Fund 362 City of McHenry Council Meeting Minutes 4.7.25 5  Audit Fund  Annexation Fund  Motor Fuel Tax Fund  Local Motor Fuel Tax  Developer Donation Fund  Tax Increment Financing Fund  Debt Service Funds  Capital Project Funds  Proprietary Funds/Internal Service Funds  Enterprise Funds  Fiduciary Funds Staff Reports Provided the 1st meeting of each month. Acting Director Adams stated that out of 100, Maple Street was ranked 35 for Maple Street for the PCI study, answering Alderman Glab from earlier in the evening. Mayor’s Report: None City Council Comments: None Executive Session to discuss the appointment, employment, compensation, discipline, performance, or dismissal of specific employees (5 ILCS 120/2(c)(1)) A motion was made by Alderman Santi, seconded by Alderman McClatchey, to adjourn to Executive Session at 9:30 pm to discuss the appointment, employment, compensation, discipline, performance, or dismissal of specific employees (5 ILCS 120/2(c)(1)) Mayor Jett reconvened the meeting from the Executive Session at 11:10 p.m. A motion was made by Alderman Santi and seconded by Alderwoman Bassi to return to an open session. 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. 363 City of McHenry Council Meeting Minutes 4.7.25 6 Adjourn: A motion was made by Alderman Santi and seconded by Alderman McClatchey to adjourn the meeting at 11:15. 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 364 Expense Approval Register McHenry, IL List of Bills Council Meeting - 4-21-25 Vendor Name Payable Number Post Date Description (Item) Account Number Amount Vendor: CHRISTOPHER B BURKE ENGINEERING, LTD CHRISTOPHER B BURKE ENGINEERING, LTD 199575 04/21/2025 RIVERSIDE DR STREETSC 1/26- 2/22/25 100-01-8900 210.00 CHRISTOPHER B BURKE ENGINEERING, LTD 200240 04/21/2025 RIVERSIDE DR STREETSC 2/23- 3/29/25 100-01-8900 4,596.38 Vendor CHRISTOPHER B BURKE ENGINEERING, LTD Total: 4,806.38 Vendor: COMED COMED INV0017295 04/21/2025 UTILITIES 100-33-5520 29,715.38 COMED INV0017295 04/21/2025 UTILITIES 100-42-5510 405.91 COMED INV0017295 04/21/2025 UTILITIES 100-45-5510 836.27 COMED INV0017295 04/21/2025 UTILITIES 400-00-5510 2,633.13 COMED INV0017296 04/21/2025 UTIL 510-31-5510 21,805.86 COMED INV0017296 04/21/2025 UTIL 510-32-5510 22,244.92 Vendor COMED Total: 77,641.47 Vendor: FREUND, TIFFANY FREUND, TIFFANY 54448 04/21/2025 HOUSEHOLD CREDIT REFUND 100-41-3636 1,590.00 Vendor FREUND, TIFFANY Total: 1,590.00 Vendor: LEXISNEXIS LEXISNEXIS 1100121248 04/21/2025 APRIL SEARCHES 620-00-5110 222.00 Vendor LEXISNEXIS Total: 222.00 Vendor: MCHENRY COUNTY RECORDER OF DEEDS MCHENRY COUNTY RECORDER OF DEEDS INV0017297 04/21/2025 MTHLY REC FEE MARCH 2025 100-01-6940 466.00 MCHENRY COUNTY RECORDER OF DEEDS INV0017298 04/21/2025 MTHLY REC 510-31-6940 31.00 MCHENRY COUNTY RECORDER OF DEEDS INV0017298 04/21/2025 MTHLY REC 510-32-6940 31.00 Vendor MCHENRY COUNTY RECORDER OF DEEDS Total: 528.00 Vendor: PARKS, WHITNEY PARKS, WHITNEY 54773 04/21/2025 CXL PGM - REFUND 100-41-3637 85.00 Vendor PARKS, WHITNEY Total: 85.00 Vendor: SHAW MEDIA SHAW MEDIA 10474 3-31-25 04/21/2025 MTHLY ADV 100-03-5330 154.28 Vendor SHAW MEDIA Total: 154.28 Vendor: STAGGS, SUSAN STAGGS, SUSAN 56409 04/21/2025 CAMP REFUND 100-41-3636 1,908.00 Vendor STAGGS, SUSAN Total: 1,908.00 Vendor: WINNEBAGO LANDFILL CO WINNEBAGO LANDFILL CO 15247C089 04/21/2025 SLUDGE 510-32-5580 526.00 Vendor WINNEBAGO LANDFILL CO Total: 526.00 Grand Total: 87,461.13 4/16/2025 10:50:12 AM 365 Expense Approval Register Packet: APPKT03369 - 4-21-25 AP CKS Fund Summary Fund Expense Amount 100 - GENERAL FUND 39,967.22 400 - RECREATION CENTER FUND 2,633.13 510 - WATER/SEWER FUND 44,638.78 620 - INFORMATION TECHNOLOGY FUND 222.00 Grand Total: 87,461.13 366 Expense Approval Register McHenry, IL #2 List of Bills Council Meeting - 4-21-25 Vendor Name Payable Number Post Date Description (Item) Account Number Amount Vendor: 1ST AYD CORPORATION 1ST AYD CORPORATION PSI1773200 04/21/2025 Shop Supplies INV# PSI773200 510-32-6110 502.20 Vendor 1ST AYD CORPORATION Total: 502.20 Vendor: ADAMS STEEL SERVICE & SUPPLY, INC ADAMS STEEL SERVICE & SUPPLY, INC 394512 04/21/2025 Oxygen Reg./Welding Wire INV# 394512 510-32-6110 119.67 ADAMS STEEL SERVICE & SUPPLY, INC APRIL2025-4 04/21/2025 3 Bottle Rentals - STS - April2025-4 100-33-6110 150.00 Vendor ADAMS STEEL SERVICE & SUPPLY, INC Total: 269.67 Vendor: AHW, LLC AHW, LLC 12090272 04/21/2025 SWWTP Gator Service Kit INV# 12090272 510-32-5370 53.42 Vendor AHW, LLC Total: 53.42 Vendor: AMERICAN SOLUTIONS FOR BUSINESS AMERICAN SOLUTIONS FOR BUSINESS INV08064202 04/21/2025 ICSC Promo Tool Pens 100-06-5110 244.90 Vendor AMERICAN SOLUTIONS FOR BUSINESS Total: 244.90 Vendor: AQUALAB WATER TREATMENT, INC AQUALAB WATER TREATMENT, INC 15664 04/21/2025 15664 100-03-5120 100.00 Vendor AQUALAB WATER TREATMENT, INC Total: 100.00 Vendor: ARAMARK REFRESHMENT SERVICES LLC ARAMARK REFRESHMENT SERVICES LLC 0696975402 04/21/2025 Coffee #0696975402 100-01-6110 303.72 ARAMARK REFRESHMENT SERVICES LLC 45281 04/21/2025 Coffee Water Filter #002403217 100-01-6110 87.29 Vendor ARAMARK REFRESHMENT SERVICES LLC Total: 391.01 Vendor: AT&T LONG DISTANCE AT&T LONG DISTANCE 862102942 4-10 04/21/2025 AT&T Long Distance 620-00-5320 9.47 Vendor AT&T LONG DISTANCE Total: 9.47 Vendor: AT&T AT&T 5164650014 04/21/2025 AT&T Monthly Phone Invoice 620-00-5320 20.49 Vendor AT&T Total: 20.49 Vendor: AXON ENTERPRISE INC AXON ENTERPRISE INC INUS337125 04/21/2025 Invoice#INUS337125 - Belt Clip 100-22-4510 34.00 AXON ENTERPRISE INC INUS337994 04/21/2025 Invoice#INUS337994 - Body Mount 100-22-4510 31.30 Vendor AXON ENTERPRISE INC Total: 65.30 Vendor: BADGER METER INC BADGER METER INC 80191239 04/21/2025 Meters 510-31-5110 1,118.65 Vendor BADGER METER INC Total: 1,118.65 Vendor: BARRINGTON PARK DISTRICT BARRINGTON PARK DISTRICT 112626 04/21/2025 Trip - Stronghold Castle 100-46-5110 378.00 Vendor BARRINGTON PARK DISTRICT Total: 378.00 Vendor: BONNELL INDUSTRIES INC BONNELL INDUSTRIES INC 0220999-IN 04/21/2025 plow parts (0220999) 100-33-5370 8,482.64 Vendor BONNELL INDUSTRIES INC Total: 8,482.64 Vendor: CABAY & COMPANY INC CABAY & COMPANY INC 70867 04/21/2025 Shop supplies 100-01-6110 2,206.96 CABAY & COMPANY INC 70974 04/21/2025 custodial supplies 400-00-6111 536.42 Vendor CABAY & COMPANY INC Total: 2,743.38 Vendor: CARY PARK DISTRICT CARY PARK DISTRICT 2313 04/21/2025 Trip - Shedd Aquarium 100-46-5110 112.50 Vendor CARY PARK DISTRICT Total: 112.50 Vendor: CASTLE AUTOMOTIVE GROUP CASTLE AUTOMOTIVE GROUP 5121095 04/21/2025 311 (5121095) 100-22-5370 1,484.83 Vendor CASTLE AUTOMOTIVE GROUP Total: 1,484.83 4/16/2025 11:15:12 AM 367 Expense Approval Register Packet: APPKT03370 - 4-21-25 AP CKS Vendor Name Payable Number Post Date Description (Item) Account Number Amount Vendor: CDW GOVERNMENT INC CDW GOVERNMENT INC AD2676D 04/21/2025 Zebra USB Cable - Squad Printer 620-00-6110 69.60 Vendor CDW GOVERNMENT INC Total: 69.60 Vendor: CITY ELECTRIC SUPPLY CITY ELECTRIC SUPPLY MCH/033084 04/21/2025 Street Light Bulbs #MCH/033084 100-33-6110 149.75 CITY ELECTRIC SUPPLY MCH/033161 04/21/2025 Polaris Connectors INV# MCH/033161 510-32-5380 370.96 Vendor CITY ELECTRIC SUPPLY Total: 520.71 Vendor: CONSERV FS CONSERV FS 65190498 04/21/2025 Field Prep 100-45-6110 99.90 Vendor CONSERV FS Total: 99.90 Vendor: DAHLIN, M, PC DAHLIN, M, PC 4-3-25 04/21/2025 MARCH ADJUDCIATION SERVICES 100-03-5110 48.00 DAHLIN, M, PC 4-3-25 04/21/2025 MARCH ADJUDCIATION SERVICES 100-22-5110 432.00 Vendor DAHLIN, M, PC Total: 480.00 Vendor: DAHM ENTERPRISES, INC DAHM ENTERPRISES, INC 2213 04/21/2025 March 25 Land Application INV#2213 510-32-5580 707.94 Vendor DAHM ENTERPRISES, INC Total: 707.94 Vendor: DIRECT FITNESS SOLUTIONS DIRECT FITNESS SOLUTIONS 0597726-IN 04/21/2025 spin bikes battery covers 400-40-6110 112.54 Vendor DIRECT FITNESS SOLUTIONS Total: 112.54 Vendor: DYN MCHENRY COMMONS LLC DYN MCHENRY COMMONS LLC 2024HL 04/21/2025 2024 SALES TAX INCENTIVE 100-04-6945 38,138.89 Vendor DYN MCHENRY COMMONS LLC Total: 38,138.89 Vendor: ED'S RENTAL & SALES INC ED'S RENTAL & SALES INC 442115-1 04/21/2025 Shamrocks Ticket Tent 200-00-5110 340.00 Vendor ED'S RENTAL & SALES INC Total: 340.00 Vendor: ED'S TESTING STATION AND AUTOMOTIVE ED'S TESTING STATION AND AUTOMOTIVE 3937 04/21/2025 Veh. Safety Insp. STS 408, 406, 404, 476 #3937 100-33-5370 160.00 Vendor ED'S TESTING STATION AND AUTOMOTIVE Total: 160.00 Vendor: EJ EQUIPMENT EJ EQUIPMENT P50848 04/21/2025 441 (P50848) 100-33-5370 128.47 Vendor EJ EQUIPMENT Total: 128.47 Vendor: ENVIRONMENTAL AQUATIC MGMT LLC ENVIRONMENTAL AQUATIC MGMT LLC 19260 04/21/2025 Shop supplies 100-45-6110 545.00 Vendor ENVIRONMENTAL AQUATIC MGMT LLC Total: 545.00 Vendor: FIRE HOUSE GYM FIRE HOUSE GYM 2/17-3/22-25 04/21/2025 Feb-March Class Invoice 100-47-5110 1,953.50 Vendor FIRE HOUSE GYM Total: 1,953.50 Vendor: FOXCROFT MEADOWS INC FOXCROFT MEADOWS INC 2959 04/21/2025 Grass Seed inv# 179708 100-33-6110 385.50 Vendor FOXCROFT MEADOWS INC Total: 385.50 Vendor: GALLS LLC GALLS LLC 030891134 04/21/2025 Invoice#030891134 - Uniform Order 100-22-4510 182.98 GALLS LLC 030892322 04/21/2025 Invoice#030892322 - Uniform Order - Lechner 100-23-4510 175.94 GALLS LLC 030892327 04/21/2025 Invoice#030892327 - Uniform Order - Morrison 100-23-4510 152.94 GALLS LLC 030893791 04/21/2025 Invoice#030893791 - Uniform Order - J Prather 100-22-4510 90.99 GALLS LLC 030898723 04/21/2025 Invoice#030898723 - Uniform Order - Conway 100-22-4510 129.55 GALLS LLC 030901859 04/21/2025 Invoice#030901859 - Uniform Order - Beaudoin 100-22-4510 76.30 GALLS LLC 030902971 04/21/2025 Invoice#030902971 - Uniform Order - Funk 100-22-4510 167.94 GALLS LLC 030914399 04/21/2025 Invoice#030914399 - Uniform Order - MOrrison 100-23-4510 55.67 GALLS LLC 030914950 04/21/2025 Invoice#030914950 - Uniform Order - Funk 100-22-4510 173.86 GALLS LLC 030933280 04/21/2025 Invoice#030933280 - Uniform Order - O'Herron 100-22-4510 20.26 GALLS LLC 030937036 04/21/2025 Invoice#030937036 - Uniform Order - Aalto 100-22-4510 82.80 GALLS LLC 030948826 04/21/2025 Invoice#030948826 - Uniform Order - Pardue 100-22-4510 188.51 GALLS LLC 030949495 04/21/2025 Invoice#030949495 - Uniform Order - Neville 100-23-4510 76.99 GALLS LLC 030949559 04/21/2025 Invoice#030949559 - Uniform Order - Clesen 100-22-4510 84.46 4/16/2025 11:15:12 AM 368 Expense Approval Register Packet: APPKT03370 - 4-21-25 AP CKS Vendor Name Payable Number Post Date Description (Item) Account Number Amount GALLS LLC 030957438 04/21/2025 Invoice#030957438 - Uniform Order - K Ducak 100-22-4510 155.15 GALLS LLC 030979484 04/21/2025 Invoice#030979484 - Uniform Order - J Ducak 100-22-4510 605.40 GALLS LLC 030980074 04/21/2025 Invoice#030980074 - Uniform Order - Durband 100-23-4510 78.70 GALLS LLC 031016827 04/21/2025 Invoice#031016827 - Uniform Order - Clesen 100-22-4510 58.49 Vendor GALLS LLC Total: 2,556.93 Vendor: GORDON FLESCH COMPANY INC, GORDON FLESCH COMPANY INC, in15104754 04/21/2025 MFP DaaS / Monthly Page Count (Brother - 702370) 620-00-5110 393.73 GORDON FLESCH COMPANY INC, in15106382 04/21/2025 MFP Monthly Page Count Ricoh - Agreement 702354 620-00-5110 710.95 Vendor GORDON FLESCH COMPANY INC, Total: 1,104.68 Vendor: GRAHAM ENTERPRISE INC GRAHAM ENTERPRISE INC 9-2024-12-2024 04/21/2025 9-2024_12-2024 GRAHAM INCENTIVE AGREEMENT 100-04-6945 33,294.68 Vendor GRAHAM ENTERPRISE INC Total: 33,294.68 Vendor: GREEN DOOR PROMOTIONS LLC GREEN DOOR PROMOTIONS LLC 25-2461 04/21/2025 Champ Shirts 100-42-6110 210.90 GREEN DOOR PROMOTIONS LLC 25-2462 04/21/2025 Moolah for Marlins Prizes 100-42-6110 525.70 Vendor GREEN DOOR PROMOTIONS LLC Total: 736.60 Vendor: GUARDIAN ALLIANCE TECHNOLOGIES GUARDIAN ALLIANCE TECHNOLOGIES 28025 04/21/2025 Invoice#28025 - Applicant Screening 100-23-5110 204.00 Vendor GUARDIAN ALLIANCE TECHNOLOGIES Total: 204.00 Vendor: HARM'S FARM HARM'S FARM 42323 04/21/2025 Downtown flowers 100-45-5110 6,798.00 Vendor HARM'S FARM Total: 6,798.00 Vendor: HAWKINS INC HAWKINS INC 7025197 04/21/2025 Chemical Del #7025197 510-31-6110 7,362.94 HAWKINS INC 7028483 04/21/2025 Chemical Delivery #7028483 510-32-6110 14,138.70 Vendor HAWKINS INC Total: 21,501.64 Vendor: HD SUPPLY HD SUPPLY 856828983 04/21/2025 cleaning supplies 100-03-6110 188.19 Vendor HD SUPPLY Total: 188.19 Vendor: HEARTLAND BUSINESS SYSTEMS, LLC HEARTLAND BUSINESS SYSTEMS, LLC 77894-h 04/21/2025 Microsoft Monthly M365 Licensing 620-00-5110 4,580.93 Vendor HEARTLAND BUSINESS SYSTEMS, LLC Total: 4,580.93 Vendor: HIGHSTAR TRAFFIC HIGHSTAR TRAFFIC 11971 04/21/2025 Street Signs inv# 11971 100-33-6110 501.20 Vendor HIGHSTAR TRAFFIC Total: 501.20 Vendor: HINCKLEY SPRINGS HINCKLEY SPRINGS 23840828 041225 04/21/2025 Lab Water INV#23840828 041225 510-32-6110 81.93 Vendor HINCKLEY SPRINGS Total: 81.93 Vendor: ILLINOIS EPA ILLINOIS EPA 283214 04/21/2025 Central WWTP NFR Letter #283214 290-00-5110 59.60 Vendor ILLINOIS EPA Total: 59.60 Vendor: IMAGETEC LP IMAGETEC LP 762930 04/21/2025 Imagetec Monthly Lease 620-00-5110 78.76 Vendor IMAGETEC LP Total: 78.76 Vendor: INDUSTRIAL ENGINE COMPANY INDUSTRIAL ENGINE COMPANY 1761 04/21/2025 East Dartmoor Lift Gen. Repairs INV# 1761 510-32-5380 881.13 Vendor INDUSTRIAL ENGINE COMPANY Total: 881.13 Vendor: INFOSEND, INC INFOSEND, INC 284038 04/21/2025 MARCH W-S BILLS PRINTING & POSTAGE 100-04-5310 1,959.33 INFOSEND, INC 284038 04/21/2025 MARCH W-S BILLS PRINTING & POSTAGE 100-04-5330 1,337.30 Vendor INFOSEND, INC Total: 3,296.63 Vendor: JENSEN, TED JENSEN, TED 03984 04/21/2025 20 Yard Dumpster Repair INV# 03984 510-32-5370 40.00 Vendor JENSEN, TED Total: 40.00 4/16/2025 11:15:12 AM 369 Expense Approval Register Packet: APPKT03370 - 4-21-25 AP CKS Vendor Name Payable Number Post Date Description (Item) Account Number Amount Vendor: JG UNIFORMS INC JG UNIFORMS INC 144674 04/21/2025 Invoice#144674 - Uniform Order - Lorenz 100-22-4510 338.95 Vendor JG UNIFORMS INC Total: 338.95 Vendor: JONES TRAVEL & TOUR JONES TRAVEL & TOUR 117980 04/21/2025 Trolley for Shamrocks 200-00-5110 725.00 Vendor JONES TRAVEL & TOUR Total: 725.00 Vendor: KIMBALL MIDWEST KIMBALL MIDWEST 103225400 04/21/2025 kimball stock (103225400) 100-33-5370 218.60 KIMBALL MIDWEST 103245932 04/21/2025 kimball stock (103245932) 510-32-5370 140.18 KIMBALL MIDWEST 103245989 04/21/2025 kimball stock (103245989) 100-33-5370 277.78 Vendor KIMBALL MIDWEST Total: 636.56 Vendor: KIRCHNER, INC KIRCHNER, INC 65163 04/21/2025 Invoice#65163 - Fire Extinguisher Inspections 100-22-5110 1,068.75 KIRCHNER, INC 65164 04/21/2025 Building maintenace 100-45-5110 211.50 KIRCHNER, INC 65165 04/21/2025 65165 100-03-5120 540.50 KIRCHNER, INC 65167 04/21/2025 Fire Extinguisher Inspection - WTR - 65167 510-31-5110 527.75 KIRCHNER, INC 65168 04/21/2025 Fire Extinguisher Insp - WW - 65168 510-32-5110 422.75 KIRCHNER, INC 65169 04/21/2025 Building maintenace 100-45-5110 238.25 Vendor KIRCHNER, INC Total: 3,009.50 Vendor: MANSFIELD OIL COMPANY OF GAINESVILLE, INC MANSFIELD OIL COMPANY OF GAINESVILLE, INC 26293408 04/21/2025 Fuel - WW, UTY, WTR - 26293408 510-31-6250 114.65 MANSFIELD OIL COMPANY OF GAINESVILLE, INC 26293408 04/21/2025 Fuel - WW, UTY, WTR - 26293408 510-32-6250 74.47 MANSFIELD OIL COMPANY OF GAINESVILLE, INC 26293408 04/21/2025 Fuel - WW, UTY, WTR - 26293408 510-35-6250 102.46 MANSFIELD OIL COMPANY OF GAINESVILLE, INC 26293408P 04/21/2025 Fuel - Parks - 26293408 100-45-6250 278.84 MANSFIELD OIL COMPANY OF GAINESVILLE, INC 26293408STS 04/21/2025 Fuel - CED, STS, Police - 26293408 100-03-6250 108.20 MANSFIELD OIL COMPANY OF GAINESVILLE, INC 26293408STS 04/21/2025 Fuel - CED, STS, Police - 26293408 100-22-6250 1,905.19 MANSFIELD OIL COMPANY OF GAINESVILLE, INC 26293408STS 04/21/2025 Fuel - CED, STS, Police - 26293408 100-33-6250 89.27 MANSFIELD OIL COMPANY OF GAINESVILLE, INC 26319966 04/21/2025 Fuel - WW, UTY, WTR - 26319966 510-31-6250 138.52 MANSFIELD OIL COMPANY OF GAINESVILLE, INC 26319966 04/21/2025 Fuel - WW, UTY, WTR - 26319966 510-32-6250 89.97 MANSFIELD OIL COMPANY OF GAINESVILLE, INC 26319966 04/21/2025 Fuel - WW, UTY, WTR - 26319966 510-35-6250 123.80 MANSFIELD OIL COMPANY OF GAINESVILLE, INC 26319966P 04/21/2025 Fuel - Parks - 26319966 100-45-6250 336.90 MANSFIELD OIL COMPANY OF GAINESVILLE, INC 26319966STS 04/21/2025 Fuel - CED, STS, Police - 26319966 100-03-6250 130.73 MANSFIELD OIL COMPANY OF GAINESVILLE, INC 26319966STS 04/21/2025 Fuel - CED, STS, Police - 26319966 100-22-6250 2,301.92 MANSFIELD OIL COMPANY OF GAINESVILLE, INC 26319966STS 04/21/2025 Fuel - CED, STS, Police - 26319966 100-33-6250 107.86 MANSFIELD OIL COMPANY OF GAINESVILLE, INC 26319967 UTY 04/21/2025 Fuel Diesel - WW, UTY - 26319967 510-32-6250 228.42 MANSFIELD OIL COMPANY OF GAINESVILLE, INC 26319967 UTY 04/21/2025 Fuel Diesel - WW, UTY - 26319967 510-35-6250 324.70 MANSFIELD OIL COMPANY OF GAINESVILLE, INC 26319967 04/21/2025 Fuel Diesel - Parks - 26319967 100-45-6250 32.09 MANSFIELD OIL COMPANY OF GAINESVILLE, INC 26319967STS 04/21/2025 Fuel Diesel - Fleet, STS - 26319967 100-33-6250 1,146.25 MANSFIELD OIL COMPANY OF GAINESVILLE, INC 26332226 04/21/2025 Fuel - WW, UTY, WTR - 26332226 510-31-6250 71.16 MANSFIELD OIL COMPANY OF GAINESVILLE, INC 26332226 04/21/2025 Fuel - WW, UTY, WTR - 26332226 510-32-6250 46.23 MANSFIELD OIL COMPANY OF GAINESVILLE, INC 26332226 04/21/2025 Fuel - WW, UTY, WTR - 26332226 510-35-6250 63.61 MANSFIELD OIL COMPANY OF GAINESVILLE, INC 26332226P 04/21/2025 Fuel - Parks - 26332226 100-45-6250 173.09 MANSFIELD OIL COMPANY OF GAINESVILLE, INC 26332226STS 04/21/2025 Fuel - CED, STS, Police - 26332226 100-03-6250 67.17 MANSFIELD OIL COMPANY OF GAINESVILLE, INC 26332226STS 04/21/2025 Fuel - CED, STS, Police - 26332226 100-22-6250 1,182.68 MANSFIELD OIL COMPANY OF GAINESVILLE, INC 26332226STS 04/21/2025 Fuel - CED, STS, Police - 26332226 100-33-6250 55.42 MANSFIELD OIL COMPANY OF GAINESVILLE, INC 26349566 04/21/2025 Fuel Diesel - Parks - 26349566 100-45-6250 36.85 MANSFIELD OIL COMPANY OF GAINESVILLE, INC 26349566STS 04/21/2025 Fuel Diesel - Fleet, STS - 26349566 100-33-6250 1,316.20 MANSFIELD OIL COMPANY OF GAINESVILLE, INC 26349566WW 04/21/2025 Fuel Diesel - WW, UTY - 26349566 510-32-6250 262.29 MANSFIELD OIL COMPANY OF GAINESVILLE, INC 26349566WW 04/21/2025 Fuel Diesel - WW, UTY - 26349566 510-35-6250 372.84 MANSFIELD OIL COMPANY OF GAINESVILLE, INC 26354623 04/21/2025 Fuel - WW, UTY, WTR - 26354623 510-31-6250 158.14 MANSFIELD OIL COMPANY OF GAINESVILLE, INC 26354623 04/21/2025 Fuel - WW, UTY, WTR - 26354623 510-32-6250 102.71 MANSFIELD OIL COMPANY OF GAINESVILLE, INC 26354623 04/21/2025 Fuel - WW, UTY, WTR - 26354623 510-35-6250 141.32 MANSFIELD OIL COMPANY OF GAINESVILLE, INC 26354623P 04/21/2025 Fuel - Parks - 26354623 100-45-6250 384.60 MANSFIELD OIL COMPANY OF GAINESVILLE, INC 26354623STS 04/21/2025 Fuel - CED, STS, Police - 26354623 100-03-6250 149.24 MANSFIELD OIL COMPANY OF GAINESVILLE, INC 26354623STS 04/21/2025 Fuel - CED, STS, Police - 26354623 100-22-6250 2,627.81 MANSFIELD OIL COMPANY OF GAINESVILLE, INC 26354623STS 04/21/2025 Fuel - CED, STS, Police - 26354623 100-33-6250 123.13 MANSFIELD OIL COMPANY OF GAINESVILLE, INC 26394489 04/21/2025 Fuel Diesel - Parks - 26394489 100-45-6250 32.50 MANSFIELD OIL COMPANY OF GAINESVILLE, INC 26394489STS 04/21/2025 Fuel Diesel - Fleet, STS - 26394489 100-33-6250 1,161.06 MANSFIELD OIL COMPANY OF GAINESVILLE, INC 26394489UTY 04/21/2025 Fuel Diesel - WW, UTY - 26394489 510-32-6250 231.37 4/16/2025 11:15:12 AM 370 Expense Approval Register Packet: APPKT03370 - 4-21-25 AP CKS Vendor Name Payable Number Post Date Description (Item) Account Number Amount MANSFIELD OIL COMPANY OF GAINESVILLE, INC 26394489UTY 04/21/2025 Fuel Diesel - WW, UTY - 26394489 510-35-6250 328.90 MANSFIELD OIL COMPANY OF GAINESVILLE, INC 26394490 04/21/2025 Fuel - WW, UTY, WTR - 26394490 510-31-6250 160.26 MANSFIELD OIL COMPANY OF GAINESVILLE, INC 26394490 04/21/2025 Fuel - WW, UTY, WTR - 26394490 510-32-6250 104.10 MANSFIELD OIL COMPANY OF GAINESVILLE, INC 26394490 04/21/2025 Fuel - WW, UTY, WTR - 26394490 510-35-6250 143.23 MANSFIELD OIL COMPANY OF GAINESVILLE, INC 26394490P 04/21/2025 Fuel - Parks - 26394490 100-45-6250 389.78 MANSFIELD OIL COMPANY OF GAINESVILLE, INC 26394490STS 04/21/2025 Fuel - CED, STS, Police - 26394490 100-03-6250 151.25 MANSFIELD OIL COMPANY OF GAINESVILLE, INC 26394490STS 04/21/2025 Fuel - CED, STS, Police - 26394490 100-22-6250 2,663.23 MANSFIELD OIL COMPANY OF GAINESVILLE, INC 26394490STS 04/21/2025 Fuel - CED, STS, Police - 26394490 100-33-6250 124.79 Vendor MANSFIELD OIL COMPANY OF GAINESVILLE, INC Total: 20,459.20 Vendor: MARK'S PLUMBING PARTS MARK'S PLUMBING PARTS IN002211863 04/21/2025 Plumbing supplies 100-45-6110 104.57 Vendor MARK'S PLUMBING PARTS Total: 104.57 Vendor: MARKS TREE SERVICE & SNOW PLOWING CORP MARKS TREE SERVICE & SNOW PLOWING CORP 3-25-25 RT31 04/21/2025 Tree Removal Broad x 31 100-33-6950 1,500.00 MARKS TREE SERVICE & SNOW PLOWING CORP 3-25-25ORCHARDB 04/21/2025 Tree Removals Orchard Beach 100-33-6950 10,000.00 MARKS TREE SERVICE & SNOW PLOWING CORP 3-25-25RIVERSIDE 04/21/2025 Tree Removal Riverside 100-33-6950 4,500.00 Vendor MARKS TREE SERVICE & SNOW PLOWING CORP Total: 16,000.00 Vendor: MCHENRY AREA CHAMBER OF COMMERCE MCHENRY AREA CHAMBER OF COMMERCE 79056 04/21/2025 Night Under the Stars 2025 - Garden Party Sponsor 100-01-5110 500.00 Vendor MCHENRY AREA CHAMBER OF COMMERCE Total: 500.00 Vendor: MCHENRY COMMUNITY HIGH SCHOOL DIST 156 MCHENRY COMMUNITY HIGH SCHOOL DIST 156 1225-210 04/21/2025 Dance - Recital Rental 100-46-5110 817.00 Vendor MCHENRY COMMUNITY HIGH SCHOOL DIST 156 Total: 817.00 Vendor: MCHENRY COMMUNITY SCHOOL DIST #15 MCHENRY COMMUNITY SCHOOL DIST #15 211 04/21/2025 INvoice 211 100-47-5110 3,215.00 Vendor MCHENRY COMMUNITY SCHOOL DIST #15 Total: 3,215.00 Vendor: MCHENRY COUNTY SHERIFF'S OFICE MCHENRY COUNTY SHERIFF'S OFICE CI00091671 04/21/2025 Invoice#CI00091671 - MILO Simulator 100-22-8300 10,000.00 Vendor MCHENRY COUNTY SHERIFF'S OFICE Total: 10,000.00 Vendor: MCHENRY HEATING & AIR INC MCHENRY HEATING & AIR INC 102977 04/21/2025 102977 100-03-5120 150.00 Vendor MCHENRY HEATING & AIR INC Total: 150.00 Vendor: MCHENRY SPECIALTIES MCHENRY SPECIALTIES 2025-277 04/21/2025 MMAC Plaques 100-42-6110 57.00 Vendor MCHENRY SPECIALTIES Total: 57.00 Vendor: MENDEZ LANDSCAPING & BRICK PAVERS INC MENDEZ LANDSCAPING & BRICK PAVERS INC 18100 04/21/2025 18100 100-03-5120 2,510.00 MENDEZ LANDSCAPING & BRICK PAVERS INC 18121 04/21/2025 Contractual landscaping 100-45-5110 1,500.00 MENDEZ LANDSCAPING & BRICK PAVERS INC 18122 04/21/2025 Contractual landscaping 400-00-5110 1,300.00 Vendor MENDEZ LANDSCAPING & BRICK PAVERS INC Total: 5,310.00 Vendor: MID AMERICAN WATER OF WAUCONDA INC MID AMERICAN WATER OF WAUCONDA INC 279740W 04/21/2025 replacement parts for chick fil A sewer tap. 510-31-6110 1,315.70 Vendor MID AMERICAN WATER OF WAUCONDA INC Total: 1,315.70 Vendor: MIDWEST HOSE AND FITTINGS INC MIDWEST HOSE AND FITTINGS INC 241809 04/21/2025 Polymer Feed Fittings INV# 2418090 510-32-6110 29.56 MIDWEST HOSE AND FITTINGS INC 242078 04/21/2025 Shop supplies 100-45-6110 4.98 Vendor MIDWEST HOSE AND FITTINGS INC Total: 34.54 Vendor: MINUTEMAN PRESS OF MCH MINUTEMAN PRESS OF MCH 100852 04/21/2025 shop supplies 100-45-6110 32.43 Vendor MINUTEMAN PRESS OF MCH Total: 32.43 Vendor: MOTOROLA SOLUTIONS - STARCOM21 NETWORK MOTOROLA SOLUTIONS - STARCOM21 NETWORK 9236720250303 04/21/2025 Invoice#9236720250303 100-22-5320 3,772.00 Vendor MOTOROLA SOLUTIONS - STARCOM21 NETWORK Total: 3,772.00 4/16/2025 11:15:12 AM 371 Expense Approval Register Packet: APPKT03370 - 4-21-25 AP CKS Vendor Name Payable Number Post Date Description (Item) Account Number Amount Vendor: NIVOLA SYSTEMS LLC NIVOLA SYSTEMS LLC 1171 04/21/2025 Firewall Support & Configuration 620-00-5110 300.00 Vendor NIVOLA SYSTEMS LLC Total: 300.00 Vendor: NORTHWEST ELECTRICAL SUPPLY CO INC NORTHWEST ELECTRICAL SUPPLY CO INC 17637440 04/21/2025 Street Light switch 100-33-6110 46.43 Vendor NORTHWEST ELECTRICAL SUPPLY CO INC Total: 46.43 Vendor: OLSEN SAFETY EQUIPMENT CORP OLSEN SAFETY EQUIPMENT CORP 0423955-IN 04/21/2025 Safety supplies INV# 0423955- IN 510-32-6110 139.85 Vendor OLSEN SAFETY EQUIPMENT CORP Total: 139.85 Vendor: PACE ANALYTICAL SERVICES, LLC PACE ANALYTICAL SERVICES, LLC 257208444 04/21/2025 Lab pond sample INV# 257208444 510-32-6110 831.30 PACE ANALYTICAL SERVICES, LLC 257208445 04/21/2025 Lab #257208445 510-31-5110 642.00 Vendor PACE ANALYTICAL SERVICES, LLC Total: 1,473.30 Vendor: PETTIBONE & CO, P F PETTIBONE & CO, P F 187433 04/21/2025 Invoice#187433 - Lead TC Badges 100-23-6110 466.50 Vendor PETTIBONE & CO, P F Total: 466.50 Vendor: PIECZYNSKI, LINDA S PIECZYNSKI, LINDA S 300 04/21/2025 Invoice#300 - Roll Call News 100-22-5450 166.00 Vendor PIECZYNSKI, LINDA S Total: 166.00 Vendor: PITEL SEPTIC INC PITEL SEPTIC INC 27793 04/21/2025 Toilet rental 100-45-5110 480.00 Vendor PITEL SEPTIC INC Total: 480.00 Vendor: PRECISION POWDER COATING INC PRECISION POWDER COATING INC 16498 04/21/2025 Shop supplies 100-45-6110 100.00 Vendor PRECISION POWDER COATING INC Total: 100.00 Vendor: RADAR MAN INC RADAR MAN INC 6527 04/21/2025 Invoice#6527 - Radar Certifications 100-22-5110 880.00 Vendor RADAR MAN INC Total: 880.00 Vendor: RED WING BUSINESS ADVANTAGE RED WING BUSINESS ADVANTAGE 740-1-100462 04/21/2025 Nate Banwart Boots (Uniform Allowance) 100-33-4510 246.39 RED WING BUSINESS ADVANTAGE 740-1-100752 04/21/2025 Crowder Clothing Allowance 100-45-4510 171.59 Vendor RED WING BUSINESS ADVANTAGE Total: 417.98 Vendor: RED WING SHOES RED WING SHOES 740-1-100917 04/21/2025 Boots Paul Clements 510-35-4510 255.19 Vendor RED WING SHOES Total: 255.19 Vendor: SECTION 8 SUPPLY, INC SECTION 8 SUPPLY, INC 10783 04/21/2025 Rec Center Door Closer 100-41-6110 650.00 Vendor SECTION 8 SUPPLY, INC Total: 650.00 Vendor: SERVICEMASTER BY THACKER SERVICEMASTER BY THACKER 25986 04/21/2025 1415 Industrial Cleaning (April 2025) #25986 100-33-5115 500.00 Vendor SERVICEMASTER BY THACKER Total: 500.00 Vendor: SIRCHIE FINGER PRINT LABORATORIES SIRCHIE FINGER PRINT LABORATORIES 0688268-IN 04/21/2025 Invoice#0688268-IN - Evidence Supplies 100-22-6210 39.82 Vendor SIRCHIE FINGER PRINT LABORATORIES Total: 39.82 Vendor: STAPLES BUSINESS ADVANTAGE STAPLES BUSINESS ADVANTAGE 7004621533 04/21/2025 Whiteboard wipes 100-01-6210 6.97 STAPLES BUSINESS ADVANTAGE 7004621533 04/21/2025 Blue Ink refill 100-03-6110 4.69 STAPLES BUSINESS ADVANTAGE 7004621533 04/21/2025 Pamphlet holder (signle) 100-03-6110 44.90 STAPLES BUSINESS ADVANTAGE 7004621533 04/21/2025 Received stamp 100-03-6210 164.97 STAPLES BUSINESS ADVANTAGE 7004621533 04/21/2025 3M Document Stand 100-04-6110 19.30 Vendor STAPLES BUSINESS ADVANTAGE Total: 240.83 Vendor: STREAMING IT PRODUCTIONS STREAMING IT PRODUCTIONS 5-3-25 04/21/2025 Dance - Video Final Payment 100-46-6110 1,470.00 Vendor STREAMING IT PRODUCTIONS Total: 1,470.00 4/16/2025 11:15:12 AM 372 Expense Approval Register Packet: APPKT03370 - 4-21-25 AP CKS Vendor Name Payable Number Post Date Description (Item) Account Number Amount Vendor: TEST GAUGE INC TEST GAUGE INC INV1-145209 04/21/2025 RPZ rebuild kit INV# INV1- 145209 510-32-5375 612.40 Vendor TEST GAUGE INC Total: 612.40 Vendor: THORNTONS, LLC THORNTONS, LLC 2024 04/21/2025 2024 SALES TAX INCENTIVE 100-04-6945 74,728.54 Vendor THORNTONS, LLC Total: 74,728.54 Vendor: TOTAL PARKING SOLUTIONS, INC TOTAL PARKING SOLUTIONS, INC 107280 04/21/2025 Boat Ramp Software and Service 280-41-8800 960.00 TOTAL PARKING SOLUTIONS, INC 107281 04/21/2025 Boat Ramp Software and Service 280-41-8800 1,587.00 Vendor TOTAL PARKING SOLUTIONS, INC Total: 2,547.00 Vendor: ULINE ULINE 191369196 04/21/2025 Maint. Supplies #191369196 510-32-6110 271.88 Vendor ULINE Total: 271.88 Vendor: ULTRA STROBE COMMUNICATIONS INC ULTRA STROBE COMMUNICATIONS INC 086358 04/21/2025 Invoice#086358 - Squad 326 100-22-5370 179.28 ULTRA STROBE COMMUNICATIONS INC 086370 04/21/2025 Invoice#086370 - Squad 322 100-22-5370 105.00 Vendor ULTRA STROBE COMMUNICATIONS INC Total: 284.28 Vendor: VERIZON CONNECT FLEET USA LLC VERIZON CONNECT FLEET USA LLC 6260000066307 04/21/2025 GPS For PW Vehicle Fleet 620-00-5110 895.45 Vendor VERIZON CONNECT FLEET USA LLC Total: 895.45 Vendor: VESTIS GROUP, INC VESTIS GROUP, INC 4-21-25 04/21/2025 Clothing allowance 100-45-4510 195.23 Vendor VESTIS GROUP, INC Total: 195.23 Grand Total: 289,161.54 4/16/2025 11:15:12 AM 373 Expense Approval Register Packet: APPKT03370 - 4-21-25 AP CKS Fund Summary Fund Expense Amount 100 - GENERAL FUND 242,532.35 200 - TOURISM FUND 1,065.00 280 - DEVELOPER DONATION FUND 2,547.00 290 - TIF FUND 59.60 400 - RECREATION CENTER FUND 1,948.96 510 - WATER/SEWER FUND 33,949.25 620 - INFORMATION TECHNOLOGY FUND 7,059.38 Grand Total: 289,161.54 374 AS NEEDED CHECKS CITY COUNCIL MEETING 4-21-25 200-00-5110 ADVANTAGE AVL 03/07/2025 5200 400-00-6111 CABAY & COMPANY INC 03/07/2025 652.98 400-00-6130 CINTAS 03/07/2025 116.52 100-03-6110 HOME DEPOT CREDIT SERVICES 03/07/2025 727.25 100-22-8300 HOME DEPOT CREDIT SERVICES 03/07/2025 394.56 100-33-6110 HOME DEPOT CREDIT SERVICES 03/07/2025 296.02 100-45-6110 HOME DEPOT CREDIT SERVICES 03/07/2025 1051.95 280-41-8800 HOME DEPOT CREDIT SERVICES 03/07/2025 762.44 510-32-6110 HOME DEPOT CREDIT SERVICES 03/07/2025 185.46 200-00-5110 INDESTRUCTO RENTAL COMPANY 03/07/2025 6614 200-00-5110 LYNCH, CAROLYN 03/07/2025 1300 100-06-5110 MCHENRY AREA CHAMBER OF COMMERCE 03/07/2025 300 100-44-5110 MCHENRY COUNTY DEPT OF HEALTH 03/07/2025 345 620-00-5110 NIVOLA SYSTEMS LLC 03/07/2025 1050 100-46-5310 UPS 03/07/2025 17.59 100-01-6940 FIRST BANKCARD 03/14/2025 39 100-03-5370 FIRST BANKCARD 03/14/2025 114.75 100-22-5370 FIRST BANKCARD 03/14/2025 404.95 100-41-5330 FIRST BANKCARD 03/14/2025 92 100-41-5410 FIRST BANKCARD 03/14/2025 175 100-41-5430 FIRST BANKCARD 03/14/2025 70 100-41-6110 FIRST BANKCARD 03/14/2025 20.95 100-41-6110 FIRST BANKCARD 03/14/2025 184.38 100-41-6210 FIRST BANKCARD 03/14/2025 50.32 100-42-5110 FIRST BANKCARD 03/14/2025 206 100-42-6110 FIRST BANKCARD 03/14/2025 1009.49 100-45-6110 FIRST BANKCARD 03/14/2025 15488.95 100-46-5110 FIRST BANKCARD 03/14/2025 126.64 100-46-6110 FIRST BANKCARD 03/14/2025 302.64 100-46-6110 FIRST BANKCARD 03/14/2025 55.16 100-46-6112 FIRST BANKCARD 03/14/2025 290 100-46-6920 FIRST BANKCARD 03/14/2025 130.17 100-47-5430 FIRST BANKCARD 03/14/2025 440 100-47-6110 FIRST BANKCARD 03/14/2025 788.18 400-00-5321 FIRST BANKCARD 03/14/2025 294.98 400-00-5430 FIRST BANKCARD 03/14/2025 80 400-00-6110 FIRST BANKCARD 03/14/2025 45.66 400-00-6110 FIRST BANKCARD 03/14/2025 70.38 400-00-6111 FIRST BANKCARD 03/14/2025 71.32 400-40-5110 FIRST BANKCARD 03/14/2025 624 400-40-6110 FIRST BANKCARD 03/14/2025 148.19 400-40-6142 FIRST BANKCARD 03/14/2025 971.99 510-31-5410 FIRST BANKCARD 03/14/2025 189 510-32-5430 FIRST BANKCARD 03/14/2025 40 ACE HARDWARE03/14/2025 100-03-6110 13.47 ACE HARDWARE03/14/2025 100-33-6110 328.98 ACE HARDWARE03/14/2025 100-45-6110 470.01 ACE HARDWARE03/14/2025 100-45-6270 179.1 ACE HARDWARE03/14/2025 100-47-6110 50.77 ACE HARDWARE03/14/2025 280-41-8800 17.98 ACE HARDWARE03/14/2025 510-31-6110 512.46 ACE HARDWARE03/14/2025 510-32-5375 69.77 ACE HARDWARE03/14/2025 510-32-5380 14.92 ACE HARDWARE03/14/2025 510-32-6110 284.16 BANKCARD PROCESSING CENTER03/14/2025 100-01-5110 21 BANKCARD PROCESSING CENTER03/14/2025 100-01-6940 24.27 375 BANKCARD PROCESSING CENTER03/14/2025 100-03-5410 186 BANKCARD PROCESSING CENTER03/14/2025 100-03-6110 -5.53 BANKCARD PROCESSING CENTER03/14/2025 100-05-5410 264 BANKCARD PROCESSING CENTER03/14/2025 100-06-5110 552.66 BANKCARD PROCESSING CENTER03/14/2025 100-06-5410 100 BANKCARD PROCESSING CENTER03/14/2025 100-06-5420 23.18 BANKCARD PROCESSING CENTER03/14/2025 100-22-5420 123.2 BANKCARD PROCESSING CENTER03/14/2025 100-22-6210 359.85 BANKCARD PROCESSING CENTER03/14/2025 100-22-6310 65.23 BANKCARD PROCESSING CENTER03/14/2025 100-23-5430 745 BANKCARD PROCESSING CENTER03/14/2025 100-23-6210 172.4 CHAS HERDRICH & SONS, INC03/14/2025 200-00-5110 14356.1 CLASSICA EXHIBITS03/14/2025 100-06-5110 1334 DUNDEE SCOTTISH PIPE BAND03/14/2025 200-00-5110 1000 ILLINOIS DEPT OF NATURAL RESOURCES03/14/2025 510-32-5110 1350 KRAUSE, MOLLY03/14/2025 200-00-5110 3150 LUISA'S PIZZA03/14/2025 100-46-5110 1434 NAPA AUTO PARTS MPEC03/14/2025 100-22-5370 81.75 NAPA AUTO PARTS MPEC03/14/2025 100-33-5370 1377.25 NAPA AUTO PARTS MPEC03/14/2025 100-33-6250 358.07 NAPA AUTO PARTS MPEC03/14/2025 100-45-5370 44.23 NAPA AUTO PARTS MPEC03/14/2025 620-00-5110 1406.13 NAPA AUTO PARTS MPEC03/14/2025 510-32-5370 347.46 NAPA AUTO PARTS MPEC03/14/2025 510-32-6250 188.53 SAM'S CLUB 03/14/2025 100-41-6110 169.96 STAPLES 03/14/2025 100-22-6210 227.45 STAPLES 03/14/2025 100-30-6210 329.01 STAPLES 03/14/2025 510-32-6210 250.18 STAPLES 03/14/2025 510-35-6210 57.37 100-22-4510 AMAZON CAPITAL SERVICES 03/21/2025 66.62 100-22-6210 AMAZON CAPITAL SERVICES 03/21/2025 23.75 100-22-6270 AMAZON CAPITAL SERVICES 03/21/2025 188.94 100-23-4510 AMAZON CAPITAL SERVICES 03/21/2025 59.99 100-23-6210 AMAZON CAPITAL SERVICES 03/21/2025 51.08 100-01-6110 AMAZON CAPITAL SERVICES 03/21/2025 16.96 100-01-6210 AMAZON CAPITAL SERVICES 03/21/2025 11.59 100-03-6110 AMAZON CAPITAL SERVICES 03/21/2025 253.78 100-22-4510 AMAZON CAPITAL SERVICES 03/21/2025 -64.99 100-41-6210 AMAZON CAPITAL SERVICES 03/21/2025 -19.51 100-42-6110 AMAZON CAPITAL SERVICES 03/21/2025 -10.39 100-45-6110 AMAZON CAPITAL SERVICES 03/21/2025 301.05 100-42-6110 AMAZON CAPITAL SERVICES 03/21/2025 309.21 100-45-5370 AMAZON CAPITAL SERVICES 03/21/2025 665.76 100-46-6920 AMAZON CAPITAL SERVICES 03/21/2025 67.91 100-47-6110 AMAZON CAPITAL SERVICES 03/21/2025 32.94 400-00-6111 AMAZON CAPITAL SERVICES 03/21/2025 215.93 400-40-6110 AMAZON CAPITAL SERVICES 03/21/2025 142.45 205-00-6940 BADGLEY, DANIELLE 03/21/2025 254.96 200-00-5110 CHAS HERDRICH & SONS, INC 03/21/2025 5936.31 100-03-5120 CINTAS CORPORATION LOC 355 03/21/2025 100.87 100-33-4510 CINTAS CORPORATION LOC 355 03/21/2025 97.25 100-33-5115 CINTAS CORPORATION LOC 355 03/21/2025 69.82 510-32-4510 CINTAS CORPORATION LOC 355 03/21/2025 308 225-00-5110 FOX VALLEY FIRE & SAFETY 03/21/2025 3327 100-03-6110 HD SUPPLY 03/21/2025 224.92 510-32-5110 HERITAGE-CRYSTAL CLEAN LLC 03/21/2025 291.29 100-03-5120 OPC PEST SERVICES 03/21/2025 178 100-03-5120 OPC PEST SERVICES 03/21/2025 178 376 200-00-5110 UNITED TALENT COORDINATORS 03/21/2025 3291.75 100-46-5310 UPS 03/21/2025 39.64 510-32-5580 WINNEBAGO LANDFILL CO 03/21/2025 164.8 100-03-5120 HD SUPPLY 03/28/2025 146.25 100-33-5110 HERITAGE-CRYSTAL CLEAN LLC 03/28/2025 291.29 440-00-8900 HRGREEN 03/28/2025 532.5 100-01-5110 ILLINOIS STATE POLICE 03/28/2025 22 100-47-5110 ILLINOIS STATE POLICE 03/28/2025 54 400-40-5110 ILLINOIS STATE POLICE 03/28/2025 54 510-32-5110 ILLINOIS STATE POLICE 03/28/2025 27 100-41-5110 MERCHANT BANKCD 03/03/2025 1776.21 100-01-4330 INTERGOVERNMENTAL PERSONNEL BENEFIT COOPERATIVE03/03/2025 19.6 100-01-5110 INTERGOVERNMENTAL PERSONNEL BENEFIT COOPERATIVE03/03/2025 112.83 100-03-4330 INTERGOVERNMENTAL PERSONNEL BENEFIT COOPERATIVE03/03/2025 33.6 100-04-4330 INTERGOVERNMENTAL PERSONNEL BENEFIT COOPERATIVE03/03/2025 15.69 100-05-4330 INTERGOVERNMENTAL PERSONNEL BENEFIT COOPERATIVE03/03/2025 8.4 100-06-4330 INTERGOVERNMENTAL PERSONNEL BENEFIT COOPERATIVE03/03/2025 8.4 100-2241 INTERGOVERNMENTAL PERSONNEL BENEFIT COOPERATIVE03/03/2025 3353.99 100-22-4330 INTERGOVERNMENTAL PERSONNEL BENEFIT COOPERATIVE03/03/2025 239.4 100-23-4330 INTERGOVERNMENTAL PERSONNEL BENEFIT COOPERATIVE03/03/2025 84 100-30-4330 INTERGOVERNMENTAL PERSONNEL BENEFIT COOPERATIVE03/03/2025 8.4 100-33-4330 INTERGOVERNMENTAL PERSONNEL BENEFIT COOPERATIVE03/03/2025 54.6 100-41-4330 INTERGOVERNMENTAL PERSONNEL BENEFIT COOPERATIVE03/03/2025 14.7 100-45-4330 INTERGOVERNMENTAL PERSONNEL BENEFIT COOPERATIVE03/03/2025 33.6 280-41-6940 MERCHANT SERVICES 03/03/2025 84.13 400-00-5600 MERCHANT BANKCD 03/03/2025 464.65 400-00-4330 INTERGOVERNMENTAL PERSONNEL BENEFIT COOPERATIVE03/03/2025 6.3 510-31-4330 INTERGOVERNMENTAL PERSONNEL BENEFIT COOPERATIVE03/03/2025 21 510-32-4330 INTERGOVERNMENTAL PERSONNEL BENEFIT COOPERATIVE03/03/2025 25.2 510-35-4330 INTERGOVERNMENTAL PERSONNEL BENEFIT COOPERATIVE03/03/2025 25.2 600-00-4310 INTERGOVERNMENTAL PERSONNEL BENEFIT COOPERATIVE03/03/2025 210987.4 600-00-4320 INTERGOVERNMENTAL PERSONNEL BENEFIT COOPERATIVE03/03/2025 11835.26 600-00-4340 INTERGOVERNMENTAL PERSONNEL BENEFIT COOPERATIVE03/03/2025 2105.22 620-00-4330 INTERGOVERNMENTAL PERSONNEL BENEFIT COOPERATIVE03/03/2025 12.6 100-04-5110 MERCHANT BANKCD 03/04/2025 1152.51 100-04-5110 PAYMENTECH 03/04/2025 158.85 100-04-5110 PAYMENTECH 03/04/2025 197.03 620-00-5110 COMCAST CABLE 03/04/2025 219.4 620-00-5110 COMCAST CABLE 03/04/2025 171.9 100-04-5110 AMERICAN EXPRESS 03/05/2025 4.52 510-31-5110 AMERICAN EXPRESS 03/05/2025 21.5 510-32-5110 AMERICAN EXPRESS 03/05/2025 21.5 510-31-5110 INVOICE CLOUD, IN 03/11/2025 4194.71 510-32-5110 INVOICE CLOUD, IN 03/11/2025 4194.72 100-04-5110 CRYSTAL LAKE BANK & TRUST COMPANY, N.A.03/18/2025 573.66 510-31-5110 CRYSTAL LAKE BANK & TRUST COMPANY, N.A.03/18/2025 88.48 510-32-5110 CRYSTAL LAKE BANK & TRUST COMPANY, N.A.03/18/2025 88.48 620-00-5110 COMCAST CABLE 03/25/2025 177.9 620-00-5110 COMCAST ENS 03/27/2025 4168.36 100-2190 AFLAC 03/31/2025 5446.8 100-03-5110 MERCHANT SERVICES 03/31/2025 181.87 620-00-5110 COMCAST CABLE 03/31/2025 43.61 TOTAL: 343911.1 377 Bill Hobson, Director of Parks and Recreation McHenry Recreation Center 3636 Municipal Drive McHenry, Illinois 60050 Phone: (815) 363-2160 Fax: (815) 363-3119 www.cityofmchenry.org/park_recreation AGENDA SUPPLEMENT DATE: April 21, 2025 TO: Mayor and City Council FROM: Bill Hobson, Director of Parks and Recreation RE: McHenry Riverwalk Shoppes Dinner Under the Stars ATT: McHenry Chamber Special Event Request and Request Letter AGENDA ITEM SUMMARY: The McHenry Area Chamber of Commerce is requesting the use of the Riverwalk Shoppes Area and a special event liquor license to host two private ticketed events, on June 18th and on October 8 from 9am to 11pm. The event itself will occur from 6pm – 9pm. The additional time is to enable set up and breakdown of the event. BACKGROUND: The McHenry Area Chamber of Commerce, as the parent organization to the McHenry Riverwalk Shoppes, is requesting use of the McHenry Riverwalk Shoppes area of Miller Point Park, as well as a portion of the park immediately east of the Shoppes area, on June 18th and on October 8th to once again host a dinner event coordinated by the McHenry Riverwalk Shoppe owners. Both “Dinner under the Stars” events are identical in nature to the inaugural event, held successfully in October 2024. “Dinner Under the Stars” is a private ticketed event that begins with a cocktail hour from 6-7pm. During that time, each Shoppe will have a different offering of 1-2oz pours of themed alcoholic or non-alcoholic drinks available on their porches. The alcoholic beverages will be provided by the Patina Wine Shoppe, who holds a catering license that allows them to serve alcohol. Tables and chairs will be set up down the middle of the Shoppe area in preparation for the main portion of the evening, a 4-course meal with wine pairings for each course from 7-8:30pm. The event could host a maximum of 120 people with ticket costs at $125 per plate. Last year’s event sold out in a very short period of time. Each Shoppe owner will be contributing something to the event, be it food, drink, entertainment or decorations. Other local businesses such as Rita’s will also participate in the event. The event is intended to draw an audience for the Shoppes as well as be a fundraiser for the Shoppes program through the McHenry Area Chamber of Commerce Foundation. ANALYSIS: This is the second year for the event for the Riverwalk Shoppes area. The character of the area and the Shoppes themselves with the bistro lighting overhead provides a perfect setting for the 378 white linen tablecloth dinner. The event is sponsored by the McHenry Area Chamber of Commerce. They are requesting the event permission and the special event liquor license for the event. They will also be providing the event insurance. The event will be hosted on a day and time when the Shoppes are not typically open. The Shoppes area will be closed to the general public, and any alcohol associated with the event would remain in the Shoppes area. Overall, this is a fresh idea proposed to draw a different type of event to the Shoppes area, Miller Point Park and Downtown McHenry. The Chamber is a trusted partner who has a history of well- run events. The event does not include loud music, and it is confined to a specific area. Staff recommends approval of both event occurrences. RECOMMENDATION: Therefore, if Council concurs, it is recommended that a motion be considered to approve: 1) Parks Special use permit to allow the Special Use Permit Application submitted by the McHenry Area Chamber of Commerce for the McHenry Riverwalk Shoppes Area of Miller Point Park on Thursday 6/18/25 and 10/8/2025 from 9am to 11pm and 2) a special event liquor license to the McHenry Area Chamber of Commerce in conjunction with their Special Use Request for the Park and 3) to allow alcohol in the park aside from the normally designated areas. 379 380 381 Department of Public Works Russ Adams, Acting Director of Public Works 1415 Industrial Drive McHenry, Illinois 60050 Phone: (815) 363-2186 Fax: (815) 363-2214 www.cityofmchenry.org The City of McHenry is dedicated to providing the citizens, businesses and visitors of McHenry with the highest quality of programs and services in a customer-oriented, efficient and fiscally responsible manner. REGULAR AGENDA SUPPLEMENT DATE: April 21, 2025 TO: Mayor and City Council FROM: Russ Adams, Acting Director of Public Works RE: Well #6 Pump Replacement and Aquifer Rehabilitation and Well #2 Inspection and Aquifer Rehabilitation ATT: Proposal from Water Well Solutions for Well #6 Proposal From Water Well Solutions for Well #2 AGENDA ITEM SUMMARY: Staff requests that City Council consider accepting two proposals from Water Well Solutions for Well #6 Pump Replacement and Aquifer Rehabilitation and Well #2 Inspection and Aquifer Rehabilitation in an amount not to exceed $96,784.05. BACKGROUND: Well #6 is located at Water Plant #2 on Beach Road. The pump replacement and aquifer rehabilitation at Well #6 is a budgeted capital maintenance project in FY24/25. This is a regular maintenance item to maintain water quality and ensure reliable operation of the well. Well #2 is the primary well for Water Treatment Plant #1 located on Green Street. Over the past several weeks, there has been a significant decrease in output from the well. Staff’s primary concern at this time is that the screen at the bottom of the well is becoming blocked by iron deposits, which are restricting the flow of water from the surrounding aquifer into the well casing. Insufficient water flow into the well casing can cause the well pump to draw in air, causing cavitation in the well pump, which can lead to increased wear and possibly premature failure of the pump. Staff has taken steps to restrict the output from Well #2 in an effort to prevent any damage, but this is a temporary fix, not a permanent solution, and does not resolve the issue of diminishing capacity. 382 ANALYSIS: Water Well Solutions is the only contractor in the area capable of providing the services necessary for this scope of work. While there are other contractors regionally, their mobilization costs are significantly higher due to the distance they must travel, making them less competitive. Water Well Solutions has been the primary contractor for maintenance services on the City’s potable water wells for the past several years. Due to the recent operational issues with Well #2, staff requested two proposals from Water Well Solutions, one for the Well #6 maintenance, and a supplemental proposal to include Well #2 in their scope of work. A summary of the proposals is as follows:  $50,993.00 – Well #6 pump replacement and aquifer rehabilitation.  $36,992.50 – Well #2 inspection and aquifer rehabilitation, to be billed on a time and materials basis not to exceed the proposal amount. Water Well Solutions indicated that they can mobilize to Well #2 while they are onsite to perform maintenance at Well #6. The sooner this issue is addressed, the lower the likelihood of damaging the well pump. As part of the attached proposal, Water Well Solutions will inspect the well pump for damage or other defects. If any pump repairs are necessary, those would be at an additional cost to the City based on the findings of the inspection. The FY24/25 budgeted amount for the Well #6 maintenance project is $85,000. The total combined cost of both proposals is $87,985.50, approximately $3,000 over the budget amount for the Well #6 maintenance. Staff is also recommending approval of a 10% contingency to cover any overage related to the additional scope of work for Well #2, for a total of not to exceed cost of $96,784.05 for the combined project. Water/Sewer Capital Maintenance funds are available to cover the balance of the work. It is Staff’s goal to get the issue with well #2 resolved and have both wells back in service before the summer months when water demand typically increases. RECOMMENDATION: Therefore, if Council concurs, it is recommended to accept the two (2) proposals from Water Well Solutions for the Well #6 Pump Replacement and Aquifer Rehabilitation and Well #2 Inspection and Aquifer Rehabilitation for an amount not to exceed $96,784.05, representing project costs of $87,985.50 plus an additional 10% contingency of $8,798.55. 383 384 Water Well Solutions Illinois, LLC 825 E North Street Date:4/10/2025 Company:Job Name: Address: City: Attention:Phone:(815) 363-2198 Email:Fax: Qty Unit Price TOTAL 1 $6,780.00 $6,780.00 1 $8,500.00 $8,500.00 1 $4,250.00 $4,250.00 100 $14.75 $1,475.00 1 $1,800.00 $1,800.00 42 $64.00 $2,688.00 1 $13,500.00 $13,500.00 8 $480.00 $3,840.00 16 $440.00 $7,040.00 1 $0.00 $0.00 4 $280.00 $1,120.00 $50,993.00 DATE:________________BY:______________________DATE:________________ Elburn, IL 60119 www.wwssg.com Hitachi 15HP 460vac 6" Submersible Motor Well 6 Pull, Inspect, TV, Rehabilitation and Equipment Repair City of McHenry 333 S. Green St McHenry Il. 60050 Russel Ruzicka rruzicka@cityofmchenry.org Description P&I with Downhole Survey "From 2024 Approval" PGI R7HC Stainless Steel 6" Pump End. Design 500@88ft. PROPOSAL TO: Well 6 Rehab and Repair Proposal Post Rehabilitation Downhole Survey "No Charge" 6" pipe ends cut and rethread with new Epoxy coated API line couplings 6" Positive Poppet Style Check Valve Ft. 4/3 600 vac submersible Pump Cable. "Oversized due to run to plant" Dual Disc Surge Blocking 110 Gallons PM77 W/ HyRip and Purge Pump Mechanical brushing and sandpumping, "Debris Removal" Crew labor to Superchlorinate, Set new equipment and performance test Ft. 6" T&C Column Pipe "12 mil Tnemec N141 Epoxy Coated" Solutions is authorized to do the work as specified. Payment will be made within ten (10) days of invoice date. BY: _______________ NOTE ON MATERIAL PRICES: The material prices noted above are based on current market prices. The price and other materials are volatile. Therefore, we must reserve the right to adjust the above material prices based on market pricing the date your order is signed and returned to us. In order to hold the current pricing, it will be necessary to immediately order the materials. Further, Water Well Solutions will bill for the materials so ordered at the same time, signature below constitutes agreement to be billed for those materials ordered and is your further agreement to pay, within 10 days of invoice date, for those materials ordered. Total Amount Proposed CLIENT WATER WELL SOLUTIONS ILLINOIS, LLC P: 630-365-9099 All material is guaranteed to be specified. All work to be completed in a workmanlike manner according to standard practices. Any alteration or deviation from above specifications involving extra costs, will be executed only upon written orders and will become an extra charge over and above this proposal. All agreements are contingent upon strikes, accidents or delays beyond our control. Owner to carry fire, tornado, and other insurance. The above prices, specifications and conditions are satisfactory and are hereby accepted. Water Well 385 INTERPRETATION. This Work Agreement shall be governed and construed in accordance with the laws of the state of the job site location. If any term, provision or condition contained herein shall, to any extent, be invalid or unenforceable, pursuant to state law or otherwise, the remainder of the terms, provisions and conditions stated in the Work Agreement (or the application of such term, provision or condition to person or circumstances other than those in respect of which it is invalid or unenforceable) shall not be affected, and each term, provision and condition of this Work Agreement shall be valid and enforceable to the fullest extent permitted by law. DELAYS. Water Well Solutions shall have no liability to Purchaser, or its clients, contractors or consultants for delays attributable to acts of God, acts of third parties, weather which is not reasonably anticipatable, intervention or public authorities, inability to obtain permits necessary to perform the work, work stoppages, changes in applicable laws or regulations after the date of commencement of performance hereunder and any other conditions or events which are beyond the reasonable control of Water Well Solutions shall be entitled to additional time to perform this Work Agreement equal to the time of any such delay. MISCELLANEOUS. The terms and conditions set forth in the Work Agreement constitute the entire understanding of the parties relating to the work. All previous proposals, offers, and other communications relative to the work, oral or written, are hereby superseded. Any additional or conflicting provision(s) contained in any purchase order, acknowledgement, or other form of the Purchaser is hereby expressly objected to by Water Well Solutions and shall not modify this Work Agreement. LIABILTY. Neither party shall be liable to the other party for any special, indirect, incidental or consequential damages, whether based on contract, tort (including negligence), strict liability or otherwise. Further, Purchaser agrees to indemnify and hold Water Well Solutions harmless from and against any and all claims, demands, causes of action (including third party claims for contribution or indemnification), liability and costs (including attorneys’ fees and other costs of defense) which result from (I) any release or threatened release of any substance (whether hazardous of not); (ii) any claim that Water Well Solutions or any of its subcontractors was a “generator” or “transporter” of hazardous waste or an “operator” of the job site (as such terms are used or defined under local, state or federal laws or regulations); or (iii) any negligent or wrongful act or omission of Purchaser or others under Purchaser’s control, except that this indemnification shall not apply to the extent any demand of cause of action results from Water Well Solutions negligence or intentional misconduct. PERFORMANCE. Water Well Solutions will exercise reasonable skill and judgment in performing the work, EXCEPT AS EXPRESSLY PROVIDED HEREIN, NO OTHER WARRANTIES (EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE) ARE GIVEN HEREUNDER. Water Well Solutions does not warrant specific results of any kind or provide any guarantee of water quality or quantity. CHANGED CONDITIONS. The discovery of any hazardous waste, substance, pollutant, contaminant, underground obstruction, condition or utilities on or under the job site which were not brought to the attention of Water Well Solutions prior to the date of this Work Agreement will constitute a materially different site condition entitling Water Well Solutions, at its option, to terminate this Work Agreement (and to receive payment for all work performed up to and including the date of such termination) or to receive an equitable adjustment in the contract price and time for performance. Water Well Solutions, however, shall only have the right to terminate if such different site condition(s) creates additional health and safety risks or requires Water Well Solutions to perform work outside the original scope or beyond its capabilities. In any event, Water Well Solutions may terminate operations on a site which it believes presents an unreasonable health or safety risk. INVOICES. Invoices will be submitted once a month with payment due within 10 days of the invoice date. A late charge at the rate of 1-1/2 % per month, or the highest rate allowed by applicable law, whichever is lowest, will be added to all amounts outstanding after 30 days. Purchaser agrees to pay any and all attorneys’ fees and court costs should attorneys be utilized or court proceedings initiated to collect any past due amounts. INFORMATION. It is recognized that Purchaser has superior knowledge of the job site, site history, access routes to the job site, known or suspected contaminants, surface and subsurface conditions, etc., and Purchaser is obligated to advise Water Well Solutions of all or any conditions that may affect Water Well Solutions performance hereunder. Purchaser agrees to provide Water Well Solutions with such specifications, plans, site history information, reports, studies or other information on surface and subsurface conditions as will be reasonably required by Water Well Solutions for safe, proper and timely performance of the work. Purchaser shall obtain all necessary permits and rights- of-way and indemnify and hold Water Well Solutions harmless for its failure to do so and for claims of trespass or damage to property, including underground utilities or structures; provided such claims of trespass or damage to property did not arise due to Water Well Solutions' negligence or intentional act which arise out of the work. 386 Bill Hobson, Director of Parks and Recreation McHenry Recreation Center 3636 Municipal Drive McHenry, Illinois 60050 Phone: (815) 363-2160 Fax: (815) 363-3119 www.cityofmchenry.org/park_recreation AGENDA SUPPLEMENT DATE: April 21, 2025 TO: Mayor and City Council FROM: Bill Hobson, Director of Parks and Recreation RE: Selection of the Electrician for the Install of Main Street Lights Attachment: Carey Electric Contracting Quote – 2/25/2025 Associated Electrical Contractors Quote – 3/7/2025 Ridgeview Electric Inc Quote – 3/26/2025 AGENDA ITEM SUMMARY: The replacement of all the decorative light poles on Main Street has been included in the FY25- 26 Capital Maintenance and Replacement program. City Council approved the purchase of the lights at the March 3, 2025, City Council meeting. Staff has solicited three quotes for the install of the lights when they arrive. Carey Electrical Contracting of McHenry provided the low quote of $36,903. Staff is requesting the waiver of the formal bid process and the acceptance of the low quote from Carey Electrical Contracting. BACKGROUND: Recently, staff has had to invest a great deal of time and effort into maintaining the lights and the lighting system on Main Street between Route 31 and Crystal Lake Road. The poles have progressed in deterioration to the point where replacement should be prioritized. In addition to the replacement of the poles, conduit needs to be inspected, and new wires must be run to the poles. New wiring is an important part of the project; the current wiring periodically causes the street to go dark until the main breaker is reset. For all these reasons, this project was included on the Community Investment Plan as a part of the Capital Needs and Replacement Fund for an overall cost of $240,000. The light poles were approved by City Council to be purchased on March 3, 2025. In order to be ready for this project to be installed as soon as the poles arrive, staff collected quotes from three electrical contractors to perform the required work. ANALYSIS: The light poles on Main Street continue to deteriorate. Additionally, the light heads do not have the latest diode-based LED light system. New brighter lights and the investment into the infrastructure will contribute immensely to the improved character of Main Street. The new 387 lights could be reused when a streetscape project on Main Street is ready to proceed. The tertiary effect of the light pole replacement is also an opportunity to replace some portions of the sidewalk as new light pole bases are installed. The selected electrical contractor will complete the installation of the lights, any new conduit required and pulling of the new wiring. Staff reached out to three local trusted contractors to secure quotes for the work. Those quotes are all provided for review. They were all very close, with the low quote provided by Carey Electrical Contracting of McHenry at $36,903. In order to accept this quote, Council must waive the formal bidding process, as the amount exceeds the $20,000 threshold that requires the bid process unless otherwise approved by City Council. The proposed $36,903 project, in combination with the previously approved purchase of the light poles, will keep the project under the $240,000 included in the FY25-26 budget. There will be no money spent on the installation portion of this project by the contractor until after May 1, 2025, when the new budget year begins; therefore, no budget amendment is required for the installation costs. Selection of the contractor now will provide the greatest expediency for the installation of the new lights. If approved, the contractor will be able to begin their preplanning for the project and order any additional materials that will be necessary for the install that may also have some longer lead times to acquire. If City Council concurs, then a motion should be considered to 1) waive the formal bidding process; and 2) approve the quote provided by Carey Electrical Contracting of McHenry, IL in the amount of $36,903 for the replacement of the street lights on Main Street. 388 389 390 391 392