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AGENDA
ANNUAL CITY COUNCIL MEETING
Monday, April 27, 2015, 7:00 PM
1. Call to Order
2. Roll Call
3. Pledge of Allegiance
4. City of McHenry Mission Statement
5. Public Comment: Any person wishing to address the City Council will be required to step
forward to the podium and identify themselves for the record and will be asked but are not
required to provide their address. Public comment may be restricted to three -minutes for each
individual speaker. Order and decorum shall be maintained at public meetings.
6. Consent Agenda:
A. Approval of a Special Event Liquor License for outdoor alcohol service for Nicolino's Trackside
Kentucky Derby event, Saturday, May 2na;
B. Approval of April 6, 2015 City Council meeting minutes;
C. Approval of List of Bills.
7. Approval of Resolution R-15-005 in recognition of Ward 4 Alderman Geoffrey T. Blake
8. Approval of Finance and Personnel Committee recommendation to adopt the proposed Fiscal
Year 2015/2016 Annual Budget
9. Mayor's Statement, Reports and Annual Appointments
10. Committee Reports
11. Staff Reports
12. Future Agenda Items
13. Adjournment
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.
Office of the City Administrator
Derik Morefield
McHenry Municipal Center
333 Green Street
McHenry, Illinois 60050
Phone: (815) 363-2100
Fax: (815) 363-2119
www.ci.mchenry.il.us
CONSENT AGENDA
DATE: Apri127, 2015
TO: Mayor and City Council
FROM: Derik Morefield, City Administrator
RE Special Event Liquor License
ATT: Application and Site Plan
Nicolino's Trackside located at 621 Ridgeview Drive is hosting a Kentucky Derby party on Saturday,
May 2nd from 9:00 AM to 12:00 AM and is requesting a special event liquor license to allow outdoor
service and consumption of alcohol in the parking lot of his establishment. As in previous years,
Nicolino's have also requested a temporary use permit to setup a tent for the event in the parking lot of
the site. The temporary use request includes the ability to have a 40'x 40' tent to protect patrons from
inclement weather, and portable toilets will be provided. A copy of the site plan has been attached for
Council's information. This request has been approved administratively with the following conditions,
which are the same as in previous years:
1. No signs, with the exception of "No Parking" signs required as a condition of this temporary use
permit, are to be placed in the city right -of --way at any time;
2. All temporary signs/banners used for this event are authorized in accordance with the regular
temporary sign permit process;
3. "No Parking" signs shall be posted on both sides of Ridgeview Drive from Bull Valley Road
south to the landscape median and extending 204eet south of the entrance to the subject property
on the eastern and western sides of Ridgeview Drive; and
4. No parking shall be permitted on other private property without written authorization from the
property owner.
The event is scheduled to be held on Saturday, May 2nd, with set-up occurring on Friday, May lsc
Teardown will be completed no later than Monday, May 4'h
If Council concurs and conditioned upon approval of the temporary use permit for a tent,
availability of portable toilets, and payment of the $251icense fee, it is recommended to approve the
request for a special event liquor license as presented.
The City of McHenry is dedicated to providing its citizens, businesses, and visitors with the highest quality of programs and
services in acustomer-oriented, efficient, and fiscally responsible manner.
04/13/2015 11:15 8153632119 CITY OF MCHENRY PAGE 02/02
SPECIAL EVENT LIQUOR LICENSE APPLICATION
CITY OF IIIICHENRY 9�
(A special .event liquor license may also be required by the State Liquor Control Commission) �
www.state.il. us/Icc
FEE $�5.00
APPLICATION BATE
COMPANY OR ORGANIZATION: 41V G ) .�
ADDRESS; 0 CAI f
CITY;
PHONE NUMBER' n��� d —
TYPE OF BUSINESS OR ORGANIZATION: / ` �J % -`�y g^' -
2. LICENSE APPLICANT:
ADDRESS:
CITY;
DATE OF BIRTH:
DAYTIME TELEPHONE NO.: , ,,, __EVENING TELEPHONE NO
3. LOCATION WHERE SPECIAL EVENT H1=LD: -oC ��'�' i ��/ � `'� `��
(nonwre ' entlal premises only)
4, OWNER OF LOCATION WHERE SPECIAL EVENT HELD:
OWNER'S ADDRESS: l € i/i 4 �� 4,1 CITY; G �� 2
TELEPHONE NUMBER:
S. DATE(S) OF EVENT: / J .� �/ ti HOURS: C fi -J2
(ri6t more than 3 days)
6. TYPE OF ALCOHOL TO BE SERVED: BEER WINE LIQUOR
7, NO UNDER -AGED OR INTOXICATED PERSON(S) SHALL BE SERVED ANY ALCOHOLIC BEVERAGES,
8. DRAM SHOP INSURANCE TO THE MAXIMUM LIMIT MUST BE OBTAINED AND A CERTIFICATE OF INSURANCE NAMING THE
CITY OF MCHENRY AS ADDITIONALLY INSURED SHALL BE ATTACHED TO THIS APPLICATION,
AFFIDAVIT
hereby states that the City of McHenry shall not be held liable farany
occur ce
ry, to , damage, or injury as a result of this event. Person or person$ to whom this license has been issued shall hold the City of
McHe harmless in connection with any and all claims arising as a result of the consumption of alcoholic liquor or as a result of the issuance
of this license.
The undersigned certifies that theywill not violate any of the laws of the City of McHenry, of the State of Illinois, or of the United States
of America, in the conduct of this Special Event Liquor License and that the statements contained In this application are true and correctto the
best of his/her knowledge and belief, The undersigned is aware that state liquor licensing approval is required,.for this license.
�Signature of Applicank
SUBSCRIBED and SWORN to before me this � OFFICIAL SEAL
�-h day of Anri s LOIS E GIESE
NOTARY PUBLIC, STATE OF ILLINOIS
My Commission Expires August 21, 2018
v� Notary Public
DATE 19SUE0
FFFI=CTIVE DATES}
2D92
LICENSE NO.
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REGULAR MEETING
April 6, 2015
Mayor Low called the regularly scheduled April 6, 2015 meeting of the McHenry City Council to
order at 7:00 p.m. In attendance were the following Aldermen: Santi, Glab, Schaefer, Blake,
Wimmer, Peterson and Condon. Absent: None. Also in attendance were City Administrator
Morefield, Director of Economic Development Martin, Director of Finance Lynch, Director of
Public Works Schmitt, Chief of Police Jones, City Attorney McArdle, City Engineer Pieper and
City Clerk Jones. Absent: None.
CITY OF MCHENRY MISSION STATEMENT
Mayor Low read aloud the Mission Statement of the City of McHenry.
PRESENTATION BY MCHENRY AREA CHAMBER OF COMMERCE
Mayor Low introduced members of the McHenry Area Chamber of Commerce.
Mr. Denny Norton provided the Council with a brief summary of Fiesta Days 2015 line-
up of entertainment and events. He thanked the City for their continuing participation.
Ms. Linda Schoens informed the Council that the next McHenry Area Chamber of
Commerce networking event is the Networking Scramble, which will take place on April 24,
M15. She explained that networking takes many forms and that the McHenry Area Chamber of
Commerce is proud to have tutored three surrounding Chambers in networking technique.
Ms. Stacey Kubis announced a scavenger hunt on April 28, 2015 to celebrate the
Chamber's anniversary and informed the Council that the McHenry Area Chamber of
Commerce Annual Golf Outing, scheduled on May 20, 2015, is nearly sold out.
PUBLIC INPUT SESSION
No one spoke at Public Input.
CONSENT AGENDA
A. Approval of IDOT Resolution for Improvement by Municipality Under the Illinois Highway Code for McCullom Lake
Road Improvements from West Lakeshore Drive to Illinois Route 31;
B. Approval of a temporary use permit to allow the McHenry Garden Club to host their annual Container Gala at West
Campus High School, 4724 Crystal Lake Road, Tuesday, April 28, 2015, from 7:00 pm to 9:00 pm; permission to post
12 temporary advertising signs in municipal right-of-ways; and waiver of all associated fees;
C. Approval of an Ordinance updating language in Municipal Code Chapter 16, Parks and Recreation, Sec. 16-48(D) to
reference name of the City swimming pool as the Peter J. Merkel Aquatic Center;
D. Parks and Recreation Committee recommendation to approve an Ordinance amending Municipal Code Chapter 116,
Sec. 16-48(D), increasing the fee for rental of Peter J. Merkel Aquatic Center from $170 to $175;
E. Approval of Parks Special Use/Picnic Permits
F. Approval of March 16, 2015 City Council meeting minutes; and
G. Approval of List of Bills.
Regular Meeting
Page 2
April 6, 2015
Motion by Wimmer, seconded by Condon, to approve the Consent Agenda, as
presented.
Voting Aye: $antl, Glab, Schaefer, Blake, Wimmer, Peterson, Condon.
Voting Nay: None.
Absent: None.
Motion carried.
APPROVAL OF A FENCE VARIANCE FOR THE PROPERTY LOCATED AT 2218 HAZELWOOD DRIVE
TO ALLOW INSTALLATION OF A FENCE FIVE FEET FROM THE CORNER SIDE LOT LINE
City Administrator Morefield informed Council that an application was submitted to
erect a fence five feet from the property line in the corner side yard at 2218 Hazelwood Drive in
the Oaks Subdivision. A fence variance is required to allow installation of the fence.
Ms. Sheila Thomas, the applicant, is proposing to erect a 54"chain link fence on portions
of the south, east and north sides of her residence. The portion of the fence adjacent to
Almond Lane is proposed to be five feet from the property line. The McHenry Municipal Code
states that fences at the corner side yard may be located no closer than fifteen feet from the
corner side lot line. City Administrator Morefield noted that the proposed fence is of similar
construction to the residence directly to the south (2216 Hazelwood Drive) and will tie in to the
fence along the south side property line of 2218 Hazelwood Drive.
The applicant has submitted signatures from abutting property owners notifying them
of the date of the Council meeting. To date, no comments, feedback or concerns have been
received regarding the fence variance requested.
Staff does not believe the proposed fence will create any line -of -sight problems,
believes it is aesthetically pleasing, practical and appropriate to the surrounding neighborhood.
Motion by Schaefer, seconded by Santi, approving the request for a fence variance for
the property located at 2218 Hazelwood Drive to allow a fence to be constructed five (5) feet
from the corner side lot line, instead of the required fifteen (15) feet, in accordance with the
attached Plat of Survey included as part of the fence permit application.
Voting Aye: Santi, Glab, Schaefer, Blake, Wimmer, Peterson, Condon.
Voting Nay: None.
Absent: None.
Motion carried.
APPROVAL OF AN ORDINANCE GRANTING A USE VARIANCE TO ALLOW A STORAGE
GARAGE/BUILDING AS A PRINCIPAL USE IN A RESIDENTIAL ZONING DISTRICT AND A 4-FT.
FRONT YARD BUILDING SETBACK FOR THE PROPERTY LOCATED AT THE NORTHWEST CORNER
OF PRAIRIE STREET AND BALLY ROAD
Regular Meeting
Page 3
April 6, 2015
City Administrator Morefield informed the Council that the subject property is located
south of Charles J. Miller Road, north of Prairie Street and Old Bull Valley Road, west of Bally
Road and east of McHenry Avenue. The owner of the subject property is the applicant, who
resides on Bally Road immediately to the east of the site.
The site consists of a large area of floodplain and wet soils and is surrounded by roads
on all sides. A garage, consisting of 1,248 square feet was constructed several years ago. It is
approximately 26 feet from the property line along Bally Road and 18 feet from the property
line along Prairie Street. The applicant does not have a garage on his lot with his residence and
utilizes the garage on the subject property to store various items. Recently, the applicant
sought to expand the garage to approximately 2,184 square feet. He did not realize he was not
permitted to do so without obtaining the appropriate zoning relief.
A use variance is required because the existing 1,248 square foot garage is non-
conforming. The property is zoned RS-3 and garages are not permitted as principal uses in
residential zoning districts. Additionally, the zoning ordinance requires off-street parking for
single-family detached and attached dwellings to be provided on the same lot as the use
served. The zoning ordinance does not permit an addition, enlargement, or structural alteration
to be made to a structure on a property having a nonconforming use.
The applicant is seeking to expand the structure. If a use variance is granted, the
applicant could legally expand the principal structure without a front yard building setback
variance because the expansion will not make the existing structure any more nonconforming,
as the addition will be at least 26 feet from the front property line. Staff believes a front yard
setback variance should be obtained to eliminate the standard nonconformity associated with
the structure.
The applicant also maintains two other smaller buildings on the subject property, which
Staff has determined to be accessory uses structures due to the fact they are subordinate and
incidental to the principal structure. The applicant will remove the accessory building to the
north of the principal structure, approximately 256 square feet, but maintain the accessory
structure to the west of the principal structure, which is approximately 320 square feet in size.
Additionally, the applicant would like to construct another 378 square foot accessory building.
This is a unique property; practical difficulty exists in that the applicant does not have
sufficient land area to construct a garage on the lot where his principal residence is located. The
subject property contains a very large area of regulatory floodplain and is directly across the
street from the applicant's residence. Staff is recommending the removal of the accessory
structure immediately to the north of the principal structure. The proposed use (garage) will
not alter the character of the area. Staff is recommending the new structure proposed (21'x
18') be in substantial conformance with the appearance of the principal structure. Staff is also
recommending a paved driveway be installed to the third structure concurrently with
construction of the structure. Also, Staff is recommending all outside material and storage
Regular -Meeting
Page 4
April 6, 2015
items be removed, cleaned -up, stored inside and the addition to the principal building be
completed prior to construction of the third building depicted on the site plan.
The Planning and Zoning Commission expressed some concerns regarding traffic,
recreational vehicles, which traverse the subject property, existing rubbish, proposed location
of the access driveway from the additional structure and maintaining a buffer to Charles Miller
Road. The Planning and Zoning Commission unanimously recommended approval, by a vote of
4-0 of a use variance to allow a storage garage/building as a principal use in a residential zoning
district and a four -foot front yard building setback variance for the principal building on the
property, located at the northwest corner of Bally Road and Prairie Street subject to the
following:
1. Approximately 100 square feet existing accessory structure immediately adjacent to
principal building to the north must be removed, addition to the principal structure
must be completed and all exterior items/materials located on the entire 4 acre subject
property must be removed prior to commencement of the construction of the third
building (21' x 18'), as depicted on the site plan;
2. There shall be no business conducted on the subject property and the buildings on the
subject property cannot be utilized for anything other than storage of items owned by
the applicant;
3. Site plan shall be amended to include locations and dimension of accessory building
immediately to the north of principal building/expansion and reflecting its required
removal as stipulated above, as well as the existing accessory building to the west of
principal building;
4. Following amendment to the site plan as outlined above, a new site plan depicting
existing principal building and expansion (42' x 52'); existing accessory buildings to the
north and west of principal building and proposed third accessory building (21' x 18')
including approximate locations shall be incorporated into the Ordinance to be
considered by the City Council;
5. Proposed third structure (21' x 18') must be located a minimum of 10 feet from principal
structure (42' x 52') as well as existing accessory structure to the west of principal
structure;
6. Proposed third structure must be located outside of the required front and corner side
yards and in conformance with all other City Ordinances, rules and regulations;
7. Third structure must be in substantial conformance with the appearance of principal
structure including; siding color, roof line/pitch, height and mass; and
8. A paved driveway must be installed to third structure concurrently with construction of
third structure.
Motion by Santi, seconded by Wimmer, approving the Ordinance granting a use
variance to allow a storage garage/building as a principal use in a residential zoning district and
a four foot front yard building setback variance for the aforementioned principal building on
the property located at the northwest corner of Bally Road be approved subject to the
following eight conditions:
Regular Meeting
Page 5
April 6, 2015
1. Approximately 100 square feet existing accessory structure immediately adjacent to
principal building to the north must be removed, addition to the principal structure
must be completed and all exterior items/materials located on the entire 4 acre
subject property must be removed prior to commencement of the construction of
the third building (21' x 18'), as depicted on the site plan;
2. There shall be no business conducted on the subject property and the buildings on
the subject property cannot be utilized for anything other than storage of items
owned by the applicants
3. Site plan shall be amended to include locations and dimension of accessory building
immediately to the north of principal building/expansion and reflecting its required
removal as stipulated above, as well as the existing accessory building to the west of
principal building;
4. Following amendment to the site plan as outlined above, a new site plan depicting
existing principal building and expansion (42' x 52'); existing accessory buildings to
the north and west of principal building and proposed third accessory building (21' x
18') including approximate locations shall be incorporated into the Ordinance to be
considered by the City Council;
5. Proposed third structure (21' x 18') must be located a minimum of 10 feet from
principal structure (42' x 52') as well as existing accessory structure to the west of
principal structure;
6. Proposed third structure must be located outside of the required front and corner
side yards and in conformance with all other City Ordinances, rules and regulations;
7. Third structure must be in substantial conformance with the appearance of principal
structure including; siding color, roof line/pitch, height and mass; and
8. A paved driveway must be installed to third structure concurrently with construction
of third structure.
Voting Aye: Santi, Glab, Schaefer, Blake, Wimmer, Peterson, Condon.
Voting Nay: None.
Absent: None.
Motion carried.
APPROVAL OF AN ORDINANCE GRANTING A CONDITIONAL USE PERMIT TO ALLOW ONSITE
PROCESSING, FOOD PREPARATION, LIVE ENTERTAINMENT, OUTDOOR SEATING, SERVICE OF
FOOD AND ALCOHOL FOR THE PROPERTY LOCATED AT 3425 W. PEARL STREET D/B/A CHAIN
O'LAKES BREWING COMPANY
City Administrator Morefield reiterated that two years ago the applicant was granted a
conditional use permit to allow a tavern with on -site processing conditioned on the following:
• There shall be no on -site food preparation unless the conditional use permit is amended
by the City Council; and
• There shall be no general public access to the second floor of the building.
Regular Meeting
Page 6
April 6, 2015
The applicant established a microbrewery on the subject property. There is no interior
on -site food preparation; however, patrons can order food from area restaurants for
consumption on the subject property. On May 5, 2014, a temporary use permit was granted to
allow the applicant to sell food, via the use of food trucks, by outside vendors and to permit the
sale of alcohol outside, as well as setup of an outdoor seating and entertainment area (beer
garden) through October 31, 2014. On October 20, 2014, this temporary use permit was
extended through November 29, 2014.
The applicant is currently requesting a conditional use permit to allow a tavern with on -
site processing, food preparation, live entertainment, outdoor seating and service of food and
alcohol and any other variances required to affect the aforementioned request. This would
allow the applicant to do what was approved originally (tavern with on -site processing) but also
what he has done through the temporary use permits, on a permanent basis.
Staff believes the proposed project would not produce any additional adverse impacts
to traffic, the environment, the neighborhood, public service and facilities or public safety and
health, than would any other permitted use in the C4 zoning district. The applicant has done
everything requested by the City to manage the outdoor activities and Staff has no concerns
with the request.
The Planning and Zoning Commission recommended approval, by a vote of 4-0, of a
conditional use permit to allow a tavern with on -site processing, food preparation, live
entertainment (indoor and outdoor), outdoor seating and outdoor service of food and alcohol
be approved with the following conditions:
1. There shall be no interior food preparation permitted unless the applicant
obtains a building permit from the City and approval from the McHenry County
Health Department;
2. There shall be no general public access to the second floor of the building; and
3. The Site Plan shall be incorporated into a conditional use permit ordinance,
which will be presented to and considered by the City Council.
Alderman Glab suggested that the conditional use should have time restrictions
attached. Alderman Santi opined that the City has a Noise Ordinance, which sufficiently
addresses the time element.
Motion by Schaefer, seconded by Blake, approving the Ordinance granting a conditional
use permit to allow a tavern with on -site processing, food preparation, live entertainment
(indoor and outdoor), outdoor seating and outdoor service of food and alcohol be approved
with the following conditions:
1. There shall be no interior food preparation permitted unless the applicant
obtains a building permit from the City and approval from the McHenry County
Health Department;
2. There shall be no general public access to the second floor of the building; and
Regular Meeting
Page 7
April 6, 2015
3. The Site Plan shall be incorporated into a conditional use permit ordinance,
which will be presented to and considered by the City Council.
Voting Aye: Sant!, Schaefer, Blake, Wimmer, Peterson, Condon.
Voting Nay: Glab.
Absent: None.
Motion carried.
APPROVAL OF A REQUEST FOR A CLASS F3 LIQUOR LICENSE TO SELL PACKAGE LIQUORS FROM
V4 GASOLINE, INC. D/B/A MARATHON, LOCATED AT 4713 W. ELM STREET AND AN
ORDINANCE INCREASING THE NUMBER OF CLASS F3 LICENSES FROM FOUR TO FIVE,
EFFECTIVE MAY 1, 2015
City Administrator Morefield informed the Council that an application for a Class F3
liquor license was submitted by V4 Gasoline, Inc. d/b/a Marathon, located at 4713 West Elm
Street. A Class F3 license permits the retail sale of liquor in packages only for consumption off
premises, where more than 50% of the public sales are devoted to goods and commodities
other than alcohol in a convenience store associated with a gas station. Included in the sale of
gasoline, the business will operate a convenience store that sells food, snacks, lottery tickets,
tobacco products and miscellaneous auto care products.
Mayor Low stated that she has met with Mr. Vallagh Patel, an officer of the corporation,
who will also manage the business. All the employees have been BASSET trained. Mr. Patel has
been fingerprinted by McHenry Police Department personnel, and all fees and paperwork have
been submitted. Mayor Low stated that she has no reservations approving the requested
license.
Motion by Condon, seconded by Wimmer,
1. Granting a Class F3 Ilquor license to V4 Gasoline, Inc. d/b/a Marathon, located at
4713 West Elm Street, as presented, with the condition that all owners and
employees involved in the sale of package liquors obtain Beverage Alcohol Sellers
and Servers Education and Training Certification (BASSET); and
2. Approving the Ordinance increasing the number of Class F3 liquor licenses from four
to five, effective May 1, 2015.
Voting Aye: Santi, Glab, Schaefer, Blake, Wimmer, Peterson, Condon.
Voting Nay: None.
Absent: None.
Motion carried.
APPROVAL OF AN ORDINANCE GRANTING A CONDITIONAL USE PERMIT TO ALLOW ASSEMBLY
USE FOR AN EDUCATIONAL INSTITUTION AND PROPOSED 5,860 SQUARE FEET ADDITION ON
THE PROPERTY LOCATED AT 3711 KANE AVENUE, KNOWN AS CHAUNCEY H. DUKER MIDDLE
SCHOOL
Regular Meeting
Page 8
April 6, 2015
City Administrator Morefield reiterated that on June 26, 1996 the Council approved two
ordinances for the properties located at 3711 and 3801 Kane Avenue. The first granted a
variance to allow four principal buildings on one zoning lot and the second permitting a
conditional use permit to allow the operation of an educational facility.
McHenry Elementary School District 15 is currently in the process of a long-range plan to
remove mobile classrooms at all of its schools by adding building additions. The first two
additional are being proposed at Chauncey H. Duker Middle School (Duker) and the second at
Hilltop Elementary School.
The City's Zoning Ordinance classified schools as assembly uses. Assembly uses are
conditional uses in all residential zoning districts. While a conditional use permit was obtained
in 1996, the Zoning Ordinance requires any addition, expansion or structural alteration to
property with an existing conditional use permit to obtain an additional conditional use permit.
The proposed addition at Duker will be approximately 5,860 feet and constructed onto
the southwest corner of the school. The proposed addition will replace three mobile
classrooms. There will be no additional parking required and the occupant load of the facility
will not change because of the addition. Staff believes this will not adversely impact
neighboring properties or the public safety and health. City Administrator Morefield noted that
the actual building plans will be reviewed by the Regional Superintendent of Education's Office,
however, the City will be required to issue a Stormwater Permit pending the Council's approval
of the request.
The Planning and Zoning Commission recommended approval, by a vote of 4-0, of a
conditional use permit to allow an assembly use (educational institution) and proposed addition
of approximately 5,860 square feet for the property located at 3711 Kane Avenue.
Mayor Low noted that Dr. Hoffman and his team are in attendance at this evening's
Council meeting. She stated that the cooperation between the City and District 15 is greatly
appreciated.
Motion by Santi, seconded by Wimmer, approving the Ordinance granting a conditional
use permit to allow a conditional use permit to allow an assembly use (educational institution)
and proposed addition of approximately 5,860 square feet for the property located at 3711
Kane Avenue, as presented.
Voting Ave: Santi, Glab, Schaefer, Blake, Wimmer, Peterson, Condon.
Voting Nay: None.
Absent: None.
Motion carried.
Regular Meeting
Page 9
April 6, 2015
APPROVAL OF AN ORDINANCE GRANTING A CONDITIONAL USE PERMIT TO ALLOW AN
ASSEMBLY USE FOR AN EDUCATIONAL INSTITUTION AND PROPOSED 6,800 SQUARE FEET
ADDITION ON THE PROPERTY LOCATED AT 2615 W. LINCOLN ROAD, KNOWN AS HILLTOP
crwnni
City Administrator Morefield reiterated to Council that on May 31, 2000, Council
approved an Ordinance annexing the property located at 2615 W. Lincoln Road, however, a
conditional use permit to allow an educational facility was never obtained.
McHenry Elementary School District 15 is currently in the process of a long-range plan to
remove mobile classrooms at all of its schools by adding building additions. The first two
additional are being proposed at Chauncey H. Duker Middle School (Duker) and the second at
Hilltop Elementary School.
Two additions are being proposed at Hilltop Elementary School, which will total
approximately 6,800 square feet. One addition will be constructed onto the northeast corner of
the school and the other at the southern end of the building. The additions will replace an
existing mobile classroom immediately north of the 4,200 square foot addition at the northeast
corner of the school.
There will be no additional parking required and the occupant load of the facility will not
change as a result of the addition. Staff believes this will not adversely impact neighboring
properties or the public safety and health. City Administrator Morefield noted that the actual
building plans will be reviewed by the Regional Superintendent of Education's Office, however,
the City will be required to issue a Stormwater Permit pending the Council's approval of the
request.
The Planning and Zoning Commission recommended approval, by a vote of 4-0, of a
conditional use permit to allow an assembly use (educational institution) and proposed addition
of approximately 6,800 square feet for the property located at 2615 W. Lincoln Road,
conditioned upon the site being developed in substantial conformance with the Site Plan
prepared by Arcon, dated March 17, 2015.
Motion by Wimmer, seconded by Santi, approving the Ordinance granting a conditional
use permit to allow a conditional use permit to allow an assembly use (educational institution)
and proposed addition of approximately 6,800 square feet for the property located at 2615 W.
Lincoln Road, conditioned upon the site being developed in substantial conformance with the
Site Plan prepared by Arcon, dated March 17, 2015.
Voting Ave: Santi, Glab, Schaefer, Blake, Wimmer, Peterson, Condon.
Voting Nay: None.
Absent: None.
Motion carried.
Regular Meeting
Page 10
April 6, 2015
APPROVAL OF A PROFESSIONAL SERVICES AGREEMENT WITH FGM ARCHITECTS, IN THE
AMOUNT OF $16,0002 FOR DESIGN AND CONSTRUCTION ADMINISTRATION OF PHASE ONE OF
MUNICIPAL CENTER IMPROVEMENTS; AND APPROVAL OF AN ADDITIONAL AMOUNT, NOT TO
EXCEED $5,000, FOR PROCUREMENT OF FURNITURE, AS IT RELATES TO SAID IMPROVEMENTS
City Administrator Morefield informed Council that in anticipation of relocating Parks
and Recreation Staff to a new Recreation Center, expanding the Police Department
Administration to the existing Parks and Recreation space, enhancing point of contact customer
service, and, creating a more efficient overall use of existing space, last year the City of
McHenry hired FGM Architects to perform a space/needs analysis of the entire Municipal
Center. The study provided an overall direction with many recommendations for the physical
reconfiguration of departments. Some of the recommendations involve major overhaul, while
others do not see significant change.
Phase one of the plan involves the relocation of the front counter from an isolated
position in the back of the building to the current location of the Alderman's Conference Room,
adjacent to the main entry doors. The proposed improvement creates space to have four
positions to address the front counter. This allows the initial customer stop to be fairly
encompassing of all City services, the exception being more in depth questions, which may
require the ability beyond frontline Staff. The Alderman's Conference Room would be relocated
to an interior location within the Administration/Finance section.
The analysis has been a beneficial tool for planning and budgeting purposes, however,
the actual design and bidding for the phases as identified was not included in the initial
proposal. The attached proposal provides the all -encompassing services for development of the
first phase including design, construction, bidding and negotiations, including construction
administration.
The total cost for design services is a lump sum fee of $16,000. In addition to the base
fee, should the City require FGM's assistance in the selection and procurement of furniture for
the space a not to exceed amount of $5,000 has been included. Staff anticipates utilizing these
services particularly for the selection of furniture in order to ensure a consistent and smooth
flow of the entire workspace. Once selected, Staff can identify contractors for the procurement
of the equipment. The $5,000 will be accounted for through standard hourly rates of FGM
personnel.
The total estimated cost for Phase One improvements, including furniture, is estimated
between $117,692 and $141,970. Deputy City Administrator Hobson noted the City's existing
relationship with FGM.
Responding to an inquiry from Alderman Wimmer regarding a timeframe, Deputy City
Administrator stated approximately mid -summer.
Regular Meeting
Page 11
April 6, 2015
Responding to an inquiry from Alderman Peterson regarding the definition of
"Construction Administration," Deputy City Administrator Hobson explained it is another
explanation for Quality Control.
Responding to Cl" inquiry from Alderman Condon regarding representation %J the
Community Development Department in the new configuration of the front counter for
customer service, Deputy City Administrator Hobson stated that the Community Development
Department would be part of the four -position configuration.
Alderman Santi requested that should the $5,000 figure kick in, he would request that
Staff provide Council with the date the $5,000 figure kicks in and the amount of furniture and
what furniture is being purchased. Deputy City Administrator Hobson assured Council this
would take place.
Motion by Wimmer, seconded by Condon, approving the Professional Services
Agreement with FGM Architects, in the amount of $16,000, for the design and construction of
Phase One of the Municipal Center improvements and to approve an additional amount, not to
exceed $5,000, for the selection and procurement of furniture as it relates to said
improvements.
Voting Aye: Santi, Glab, Blake, Wimmer, Peterson, Condon.
Voting Nay: Schaefer.
Absent: None.
Motion carried.
MAYOR STATEMENT AND REPORT
Mayor Low announced that the City of McHenry has been a Tree City USA for 21
consecutive years. Mayor Low read aloud the Proclamation for Arbor Day, which falls on April
24, 2015.
COMMITTEE REPORTS
There were no Committee Reports.
STAFF REPORTS
City Administrator Morefield announced that the City of McHenry Police Department
has again achieved CALEA Certification.
Chief of Police Jones stated that the City of McHenry was the first city in McHenry
County to achieve certification, which is an arduous process, occurring every three years.
Mayor Low stated that the City of McHenry is very proud of the City of McHenry Police
Department and the men and women affiliated with the Department.
Regular Meeting
Page 12
April 6, 2015
FUTURE AGENDA ITEMS
There were no future agenda items.
ADJOURNMENT
Motion by Wimmer, seconded by Peterson, to adjourn the meeting at 7:43 pm.
Voting Aye: Santi, Glab, Schaefer, Blake, WimmerI Peterson, Condon.
Voting Nay: None.
Absent: None.
Motion carried.
The meeting was adjourned at 7:43 pm.
Mayor City Clerk
Vendor Name
McHenry, IL APPKTUUUJU
Account Number
Vendor: A -ABLE ALARM SERVICE INC
4-ABLE ALARM SERVICE INC 100-01-5110
✓endor:
ADAMS ENTERPRISES
INC, R A
ADAMS
ENTERPRISES
INC, RA
10045-6270
%DAMS
ENTERPRISES
INC, R
A
100-33-5370
%DAMS
ENTERPRISES
INC, R
A
100-33-5370
%DAMS
ENTERPRISES
INC, R
A
100-33-5370
%DAMS
ENTERPRISES
INC, R
A
100-33-5370
!endor: ADAMS, SAMANTHA
%DAMS, SAMANTHA 100-47-5110
/endor: AQUA PURE ENTERPRISES INC
%QUA PURE ENTERPRISES INC 100-42-5110
\QUA PURE ENTERPRISES INC 100-42-5110
!endor: ASSOCIATED ELECTRICAL CONTRACTORS
\SSOCIATED ELECTRICAL 100-45-5110
/endor: AT&T LONG DISTANCE
�T&T
LONG
DISTANCE
100-01-5320
1T&T
LONG
DISTANCE
100-02-5320
kT&T
LONG
DISTANCE
100-22-5320
fT&T
LONG
DISTANCE
100-33-5320
�T&T
LONG
DISTANCE
100-41-5320
%T&T
LONG
DISTANCE
100-45-5320
kT&T
LONG
DISTANCE
510-32-5320
'endor: AT&T
T&T 100-43-5320
'endor: BERI<HEiMER CO INC, G W
ERI<HEIMERCO INC, G W 510-31-6110
ERKHEIMERCO INC, G W 510-31-6110
'endor: BIRK, ADRIANA
IRI<, ADRIANA 100-22-5420
'endor: BUSS FORD SALES
USS FORD SALES 100-22-5370
e
ndor: CASEY EQUIPMENT COMPANY
ASEY EQUIPMENT COMPANY 100-33-5370
endor: CASTLEMAN, AMBER
ASTLEMAN, AMBER 100-47-5110
endor: COW GOVERNMENT INC
DWGOVERNMENTINC 620-00-6270
Description (Item)
LOCKSMITH SERVICEES
TRAILER
SUPPLIES
SUPPLIES
SUPPLIES
SUPPLIES
Expense Approval Register
LIST OF BILLS COUNCIL MEETING 4/27/15
Payable Number Post Date Amount
60471
545389
755844
755889
756162
756116
PARKS PROGRAM INSTRUCTOR 3/25-4/8/15
04/27/2015
VendorA-ABLE ALARM SERVICE INC Total:
04/27/2015
04/27/2015
04/27/2015
04/27/201S
04/27/2015
Vendor ADAMS ENTERPRISES INC, R A Total:
04/27/2015
Vendor ADAMS, SAMANTHA Total:
LABOR PUMP INSTALLATION 95945 04/27/2015
CHLORINEUNIT &ACID PUMP 96059 04/27/2015
Vendor AQUA PURE ENTERPRISES INC Total:
CONTRACTUALSERVICES 3498934 04/27/2015
Vendor ASSOCIATED ELECTRICAL CONTRACTORS Total:
188.99
188.99
3,150.00
270.30
170.56
6.96
3,66
3,601,48
73.75
73.75
422.51
2,908.01
3,330,52
5,025.00
5,025.00
LONG
DISTANCE
INV0000141
04/27/2015
189.48
LONG
DISTANCE
INV0000141
04/27/2015
2.42
LONG
DISTANCE
INV0000141
04/27/2015
0.97
LONG
DISTANCE
INV0000141
04/27/2015
0,49
LONG
DISTANCE
INV0000141
04/27/2015
1,25
LONG
DISTANCE
INV0000141
04/27/2015
0,46
LONG
DISTANCE
INV0000142
04/27/2015
2,55
Vendor AT&T LONG DISTANCE Total:
197,62
ALARM CIRCUITS 4/13-5/12
04/27/2015
155.15
Vendor AT&T Total:
155.15
SUPPLIES 498401 04/27/2015 595.72
SUPPLIES 498402 04/27/2015 54.24
Vendor BERKHEIMER CO INC, G W Total: 649.96
REIMBTRAINING EXPENSES INV0000138 04/27/2015 30400
Vendor BIRK, ADRIANA Total: 30.00
SUPPLIES 50164561 04/27/2015 13.48
Vendor BUSS FORD SALES Total: 13.48
VEHICLE REPAIR SUPPLIES C04552 04/27/2015 120.21
Vendor CASEY EQUIPMENT COMPANY Total: 120.21
PARKS PROGRAM INSTRUCTOR 3/2-4/6/15
CREDIT MEMO
SR36105
04/27/2015
Vendor CASTLEMAN, AMBER Total:
04/27/2015
105.00
105.00
-395.00
'Z2/2015 2:15:54 PM
Page i
:xpense Approval Register
/endor Name
Account Number
Description (Item)
Payable Number
Post Date
Amount
.DW GOVERNMENT INC
620-00-6270
SMALL EQUIPMENT
SX89581
04/27/2015
475.00
Vendor CDW GOVERNMENT INC
Total:
80.00
/endor: CENTEGRA OCCUPATIONAL HEALTH
:ENTEGRA OCCUPATIONAL
100-01-5110
MEDICALSERVICES
150162
04/27/201S
45.00
:ENTEGRA000UPATIONAL
10001-5110
MEDICALSERVICES
150238
04/27/2015
87.00
Vendor CENTEGRA OCCUPATIONAL HEALTH
Total:
132.00
/endor: CHICAGO METROPOLITAN
AGENCY FOR PLANNING
:HICAGO METROPOLITAN
100-01-5410
DUES
67983
04/27/2015
258.39
Vendor CHICAGO METROPOLITAN AGENCY FOR PLANNING
Total:
258.39
/endor: COMCAST CABLE
:OMCASTCABLE
620-00-5110
CABLE TV
4/11-5/10/15
04/27/2015
127.81
:OMCASTCABLE
620-00-5110
CABLE TV
4/12-5/11/15
04/27/2015
110.93
Vendor COMCAST CABLE
Total:.
238.74
/endor: COMED
:OMED
100-33-5520
STREET LIGHTING
3/12/15-3/30/15
04/27/2015
117.17
Vendor COMED
Total:
117.17
/endor: COMPASS MINERALS AMERICA
:OMPASS MINERALS AMERICA
270-00-6110
SALT SUPPLIES
71328765
04/27/2015
14,572956
:OMPASS MINERALS AMERICA
270-00-6110
SALTSUPPLIES
71329266
04/27/2015
8,714.87
Vendor COMPASS MINERALS AMERICA
Total:
23,287.43
/endor: CONSERV FS
:ONSERV FS
100-45-6110
SUPPLIES
2043374dN
04/27/2015
8,367.00
Vendor CONSERV FS
Total:
8,367.00
/endor: CONSTELLATION NEWENERGY INC
:ONSTELLATION NEWENERGY
510-31-5510
PUMPING FEES
3/2-3/30/15
04/27/2015
3,690.16
;ONSTELLATION NEWENERGY
510-32-5510
PUMPING FEES
3/2-3/30/15
04/27/2015
22,513.50
Vendor CONSTELLATION NEWENERGY INC
Total:
26,203.66
/endor: COST ROOFING
;OSTROOFING
100-45-5110
CONTRACTUAL SERVICES
13-4005
04/27/2015
5,386.00
Vendor COST ROOFING
Total:
5,386.00
/endor: DOCUMENT IMAGING
DIMENSIONS INC
)OCUMENT IMAGING
620-00-6210
SUPPLIES
262659
04/27/2015
159.00
)OCUMENT IMAGING
620-00-6210
SUPPLIES
262661
04/27/2015
128.00
Vendor
DOCUMENT IMAGING DIMENSIONS INCTotal:
287.00
/endor: DODGE, SARAH
)ODGE, SARAH
100-46-5110
PARKS PROGRAM INSTRUCTOR 4/18/15
04/27/2015
47.25
Vendor DODGE, SARAH
Total:
47.25
/endor: DREISILKER ELECTRIC MOTORS INC
)REIS]LKER ELECTRIC MOTORS
510-32-6110
SUPPLIES
1960248
04/27/2015
495.54
Vendor
DREISILKER ELECTRIC MOTORS INC
Total:
495.54
/endor: DUCAK, KELLY
)UCAK, KELLY
100-22-5420
REIMB TRAINING EXPENSES
INV0000188
04/27/2015
WAS
Vendor DUCAK, KELLY
Total:
57.48
/endor: DURA BILT FENCE II INC
)URA BILT FENCE II INC
100-45-5110
CONTRACTUAL SERVICES
9362
04/27/2015
640.00
)URA BILT FENCE II INC
100-45-5110
CONTRACTUAL SERVICES
9417
04/27/2015
71875,00
Vendor DURA BILT FENCE 11 INCTotal:
8,515.00
/endor: DURA WAX COMPANY
INC, THE
)URA WAX COMPANY INC, THE
100-01-6110
SUPPLIES
377027
04/27/2015
42.80
Vendor DURA WAX COMPANY INC, THE
Total:
42.80
/endor: EAGLE BIOMASS INC
:AGUE BIOMASS INC
100-45-5110
DEMOLITION SERVICES
10095
04/27/2015
21000,00
Vendor EAGLE BIOMASS INCTotal:
2,000.00
E/2Z/2015 2:15;54 PM Page 2
Expense Approval Register
/endor Name Account Number
en or: ED'S
RENTAL
& SALES
INC
:D'S RENTAL
& SALES
INC
100-45-5370
/endor; EJ EQUIPMENT
:J EQUIPMENT 100-33-5370
lendor: ENVIRONMENTAL AQUATIC MGMT LLC
:NVIRONMENTALAQUATIC 100-45-6110
lendor: FOX VALLEY FIRE &SAFETY
:OX VALLEY FIRE & SAFETY 225-00-5110
lendor: FOXCROFT MEADOWS INC
:OXCROFT MEADOWS INC 100-33-6110
/endor: FRY, ROBERi-J
:RY, ROBERTJ 100-41-5110
/endor: GESKE AND SONS INC
3ESKE AND SONS INC 100-33-6110
/endor: HALOGEN SUPPLY COMPANY
iALOGENSUPPLYCOMPANY 100-42-6110
/endor: HEARTLAND SERVICES INC
iEARTLAND SERVICES INC 100-22-5370
lendor: HILLER, CHRISTINE E
TILLER, CHRISTINE E 100-47-5110
/endor: HRGREEN
iRGREEN
740-00-5220
iRGREEN
100-33-5110
iRGREEN
100-03-5330
iRGREEN
740-00-5220
iRGREEN
740-00-5220
iRGREEN
440-00-8600
iRGREEN
510-32-5110
lendor: ILLINOIS DEPT OF AGRICULTURE
LLINOISDEPTOF 100-45-5430
/endor: IMPRESSIVE IMAGES
MPRESSIVE IMAGES 100-33-4510
lendor: INTERSTATE BILLING SERVICE INC
NTERSTATE BILLING SERVICE 510-31-5370
NTERSTATE BILLING SERVICE 100-33-6110
NTERSTATE BILLING SERVICE 100-33-5370
(
endor:l G UNIFORMS INC
G UNIFORMS INC 100-22-6270
Description (Item)
RIDE ON ROLLER
SUPPLIES
SUPPLIES
MONTHLY MAIN FEE RADIOS
SUPPLIES
SUPPLIES
SUPPLIES
SUPPLIES
LAPTOP REPAIRS
Payable Number Post Date Amount
128035-2 04/27/2015 90.00
Vendor ED'S RENTAL & SALES INC Total: 90.00
0067748 04/27/2015 88.96
Vendor E1 EQUIPMENT Total: 88.96
8576 04/27/2015 977,46
Vendor ENVIRONMENTAL AQUATIC MGMT LLC Total: 977.46
902844 04/27/2015 1,059.50
Vendor FOX VALLEY FIRE & SAFETY Total: 1,059.50
41938 04/27/2015 647.50
Vendor FOXCROFT MEADOWS INC Total: 647.50
2015124 04/27/2015 160.00
Vendor FRY, ROBERTJ Total: 160.00
31065 04/27/2015 1,088.95
Vendor GESKE AND SONS INCTotal: 1,088.95
00465223
INV118475
PARKS PROGRAM INSTRUCTOR 2/14-3/21/15
PATRIOT ESTATES 2014 97665
2015 BRIDGE INSPECTION 97666
2015 GENERAL CONSULTATION 97667
CVS PLAN REVIEW 97669
VA CLINIC 97672
I<NOX DRIVE EXTENSION 97674
2015GENERAL CONSULTATION 97667A
2015 PEST CONTROL LICENSE INV0000143
EMBROIDERED SHIRTS INV0000139
04/27/2015
Vendor HALOGEN SUPPLY COMPANY Total:
04/27/2015
Vendor HEARTLAND SERVICES INC Total:
04/27/2015
Vendor HILLER, CHRISTINE E Total:
04/27/2015
04/27/2015
04/27/2015
04/27/2015
04/27/2015
04/27/201S
04/27/2015
Vendor HRGREEN Total:
04/2717.015
Vendor ILLINOIS DEPT OF AGRICULTURE Totai:
04/27/2015
Vendor IMPRESSIVE IMAGES Total:
SUPPLIES 510315370 04/27/2015
SUPPLIES 97307613 04/27/2015
REPAIR SUPPLIES 97482024 04/27/2015
Vendor INTERSTATE BILLING SERVICE INCTotal:
SUPPLIES
36605
04/27/2015
Vendor) G UNIFORMS INCTotal
1,420.80
1,420.80
495.00
495.00
105.00
105.00
2,638.07
1,soo.00
462.00
3,836.00
402.50
103.14
250.00
9,191.71
50,00
50.00
42,50
42.50
115.09
387.94
115.09
618.12
3,315,00
3,315.00
/22/2015 2:15:54 PM Page 3
Expense Approval Register
/endor Name Account Number
Jendor: JRM CHEMICALS INC
RM CHEMICALS INC 100-45-6110
Jendor: KIMBALL MIDWEST
<IMBALLMIDWEST 100-33-5370
Jendor: I<IRCHNER FIRE
(IRCHNERFIRE 100-01-5110
/endor: LANDMARI<SERVICES COOPERATIVE CLINTON
.ANDMARKSERVICES 100-33-6110
Jendor: LEIBACH, JUSTIN
_EIBACH,JUSTIN 100-22-6210
!endor: LUCAS, DIANA
.UCAS, DIANA 100-41-3637
/endor: MARTfN IMPLEMENTSALES INC
MARTIN IMPLEMENTSALES 100-33-5370
AARTIN IMPLEMENTSALES 100-33-5370
MARTIN IMPLEMENTSALES 100-33-5370
/endor: MCANDREWS PC, THE LAW OFFICE OF PATRICI<
71CANDREWS PC, THE LAW 100-01-5230
/endor: MCCANN INDUSTRIES INC
71CCANN INDUSTRIES INC 510-31-5370
JICCANN INDUSTRIES INC 510-31-5370
/endor: MCCORMfCI<,1ENISE M
VICCORMICI<, JENISE M 100-47-5110
JICCORMICK, JENISE M 100-47-5110
!endor: MCHENRY ANALYTICAL
WATER LABORATORY INC
JICHENRYANALYTICALWATER
510-31-5110
VICHENRY
ANALYTICAL
WATER
510-32-6110
JICHENRY
ANALYTICAL
WATER
510-32-6110
JICHENRY
ANALYTICAL
WATER
510-32-6110
JICHENRY
ANALYTICAL
WATER
510-32-6110
JICHENRY
ANALYTICAL
WATER
510-32-6110
/endor: MCHENRY TOWNSHIP FIRE PROTECTION D1ST
JICHENRYTOWNSHIP FIRE 100-22-5110
/endor: McNAMARA, TRACY
J1cNAMARA, TRACY 100-22-4510
/endor: MEADE INC
MEADEINC 100-33-6110
/endor: MEYER MATERIAL COMPANY
✓IEYERMATERIALCOMPANY 510-31-6110
JIEYERMATERIALCOMPANY 100-45-6110
Description (Item) Payable Number Post Date
SUPPLIES 56512 04/27/2015
Vendor JRM CHEMICALS INC Total:
SUPPLIES 4156640 04/27/2015
Vendor KIMBALL MIDWEST Total:
CONTRACTUALSERVICES 38313 04/27/2015
Vendor KIRCHNER FIRE Total:
SUPPLIES IVC265113 04/27/2015
Vendor LANDMARK SERVICES COOPERATIVE CLINTON Total:
REIMBSUPPLIES INV0000140 04/27/2015
Vendor LEIBACH, JUSTIN Total:
1 123857 04/27/2015
Vendor LUCAS, DIANA Total:
VEHICLE REPAIRS U04627 04/27/2015
VEHICLE REPAIRS U04682 04/27/2015
VEHICLE REPAIRS U04693 04/27/2015
Vendor MARTIN IMPLEMENT SALES INCTotal:
LEGALSERVICES-TRAFFIC & 4/1-4/30/15 04/27/2015
Vendor MCANDREWS PC, THE LAW OFFICE OF PATRICK Total:
SUPPLIES 11037211 04/27/2015
SUPPLIES 11037222 04/27/2015
Vendor MCCANN INDUSTRIES INCTotal:
PARKS
PROGRAM
INSTRUCTOR
3/26-4/9/15
PARKS
PROGRAM
INSTRUCTOR
4/12-4/19/15
04/27/2015
04/27/2015
Vendor MCCORMICK, JENISE M Total:
Amount
60.14
119.52
144.25
144.25
31184
313.84
2.34
2.34
240.00
z4o.0o
131.19
2,031.50
245.30
2,407.99
5,175.00
5,175.00
145.81
93.25
239.06
146.25
89.38
235.63
MONTHLY
DRINKING WATER
14246
04/27/2015
390.00
SUPPLIES
317218
04/27/2015
125.00
SUPPLIES
317219
04/27/2015
60.00
NITROGEN
SAMPLES
317294
04/27/2015
120.00
NITROGEN
SAMPLES
317296
04/27/2015
60.00
NITROGEN
SAMPLES
317297
04/27/2015
60.00
Vendor MCHENRY ANALYTICAL
WATER LABORATORY INCTotal:
81S.00
DISPATCH RELAY SERVICE 0000000009 04/27/2015 180.00
Vendor MCHENRYTOWNSHIP FIRE PROTECTION DISTTotal: 180.00
REIMBUNIFORM ALLOWANCE INV0000144 04/27/2015 54.16
Vendor McNAMARA, TRACY Total: 54.16
SUPPLIES 668901 04/27/2015 210.09
Vendor MEADE INCTotal: 210.09
SUPPLIES 705489258 04/27/2015 384.06
SUPPLIES 705503913 04/27/2015 83.50
Vendor MEYER MATERIAL COMPANY Total: 467.56
I/Z2/2015 2:15:54 PM
Page 4
:xpense Approval Register
/endor Name Account Number
!endor: MID AMERICAN WATER OF WAUCONDA INC
OID AMERICAN WATER OF 510-31-6110
/endor: MOTOROLA SOLUTIONS - STARCOM21 NETWORK
AOTOROLASOLUTIONS- 100-22-5320
/endor: MULCH CENTER, THE
OULCH CENTER, THE 100-45-6110
/endor: MUNICIPAL FLEET MAINTENANCE ASSOC
OUNICIPAL FLEET 100-33-5430
/endor: NICOR GAS
JICOR
GAS
OCOR
GAS
4ICOR
GAS
41COR
GAS
41COR
GAS
41COR
GAS
41COR
GAS
510-31-5510
510-32-5510
510-31-5510
510-32-5510
100-42-5510
100-45-5510
100-46-5510
!endor: NORTHWEST ELECTRICAL SUPPLY CO INC
4ORTHWEST ELECTRICAL 100-33-6110
!endor: NOWICKI, ROBERT & CONNIE
40WICI% ROBERT & CONNIE 100-33-6110
/endor: PEPSI BEVERAGE COMPANY
'EPSI BEVERAGE COMPANY 100-44-6110
/endor: PETERSON, DWAYNE
'ETERSON, DWAYNE 100-47-5110
/endor: PETROLIANCE LLC
'ETROLIANCE
LLC
'ETROLIANCE
LLC
'ETROLIANCE
LLC
'ETROLIANCE
LLC
'ETROLIANCE
LLC
'ETROLIANCE
LLC
'ETROLIANCE
LLC
'ETROLIANCE
LLC
'ETROLIANCE
LLC
Description (Item)
SUPPLIES
STARCOM 21
SUPPLIES
2015 ANNUAL DUES
UTILITIES
UTILITIES
UTILITIES
UTILITIES
UTILITIES
UTILITIES
UTILITIES
SUPPLIES
MAILBOX REPLACEMENT
CONCESSION SUPPLIES
VOLLEYBALL REFEREE
Payable Number
Post Date
162103W 04/27/2015
Vendor MID AMERICAN WATER OF WAUCONDA INC Total:
175162272015 04/27/2015
Vendor MOTOROLA SOLUTIONS -STARCOM21 NETWORKTotal:
656 04/27/2015
Vendor MULCH CENTER, THE Total:
INV0000145 04/27/2015
Vendor MUNICIPAL FLEET MAINTENANCE ASSOC Total:
3/16-4/15/15
3/16-4/15/15
3/16/15-4/15/15
3/16/15-4/15/15
3/16-4/15/15A
3/16-4/15/15A
3/16-4/15/15A
04/27/2015
04/27/2015
04/27/2015
04/27/2015
04/27/2015
04/27/2015
04/27/2015
Vendor NICOR GAS Total:
17211322 04/27/2015
Vendor NORTHWEST ELECTRICAL SUPPLY CO INC Total:
INV0000146
92845354
INV0000147
510-32-6250
VEHICLE
FUEL
9610094
510-31-6250
VEHICLE
FUEL
9610095
510-32-6250
VEHICLE
FUEL
9613373
100-33-6250
VEHICLE
FUEL
9617900
510-31-6250
VEHICLE
FUEL
9613374
100-33-6250
VEHICLE
FUEL
9613376
100-03-6250
VEHICLE
FUEL
9616114
10045-6250
VEHICLE
FUEL
9616117
100-22-6250
VEHICLE
FUEL
9616119
/endor: PETTIBONE & CO, P F
'ETTIBONE & CO, P F 100-22-4510
/endor: PIERCE, IAMIE
'IERCE, IAMIE 100-46-6110
/endor: PITEL SEPTIC INC
'ITELSEPTIC INC 100-45-5110
/endor: PORTER, DAVID
'ORTER, DAVID 100-22-4510
EMPLOYEEE UNIFORM
REIMB COSTUMES
PORTABLE TOILET RENTAL
33003
INV0000148
11456
UNIFORM ALLOWANCE REIMB INV0000149
04/27/2015
Vendor NOWICKI, ROBERT & CONNIE Total
04/27/2015
Vendor PEPSI BEVERAGE COMPANYTotal:
04/27/2015
Vendor PETERSON, DWAYNE Total:
04/27/2015
04/27/2015
04/27/2015
04/27/2015
04/27/2015
04/27/2015
04/27/2015
04/27/2015
04/27/2015
Vendor PETROLIANCE LLC Total:
04/27/2015
Vendor PETTIBONE & CO, P F Total:
04/27/2015
Vendor PIERCE, JAMIE Total:
04/26/2015
Vendor PITEL SEPTIC INC Total:
04/27/2015
Vendor PORTER, DAVID Total:
Amount
105.00
105400
2,146.00
2,146.00
1,400.00
1,400.00
30,00
30.00
238.70
106923
134A3
898.60
674.98
44.02
44.03
21140*69
121.31
121.31
45,15
45.15
251400
251400
60.00
60.00
529,73
214.65
376.98
-60.00
193.32
615.86
79A8
367.93
1,890.52
41208*17
37,95
37.95
36,55
36955
750.00
750400
299.98
299.98
-/22/2015 2:15:54 PM Page 5
Expense Approval Register
Vendor Name
Vendor: PSP-BROOKFIELD
'SP-BROOKFIELD
ASP-BROOKFIELD
ASP-BROOKFIELD
'SP-BROOKFIELD
ASP-BROOKFIELD
ASP-BROOKFIELD
ASP-BROOKFIELD
Account Number
100-22-5370
1DO-22-5370
100-22-5370
100-22-5370
100-22-5370
100-22-5370
100-33-5370
Jendor: REICHE'S PLUMBING SEWER RODDING CORP
REICHE'S PLUMBING SEWER 510-31-5110
Jendor: REX AUTO BODY
REX AUTO BODY 610-00-5980
Jendor: RIDGEVIEW ELECTRIC INC
RIDGEVIEW ELECTRIC INC 100-47-6110
Jendor: RUZICKA, RUSSELL
RUZICKA, RUSSELL 510-32-5430
Jendor: RYBA, RON
RYBA, RON 100-47-5430
✓endor:RYDIN DECAL
RYDIN DECAL 100-04-5330
Jendor: SEXTON, ERIC M
;EXTON, ERIC M 100-22-4510
Jendor: SHERMAN MECHANICAL INC
;HERMAN MECHANICAL INC 100-01-5110
;HERMAN MECHANICAL INC 100-01-6110
Jendor: SHERWIN INDUSTRIES INC
;HERWIN INDUSTRIES INC 100-33-6110
Jendor: SMITH, WILLIAM
;MITH, WILLIAM 100-47-5110
Jendor: STEINER ELECTRIC COMPANY
>TEINER ELECTRIC COMPANY 510-31-6110
Jendor: SUNNYSIDE COMPANY
>UNNYSIDE COMPANY 510-32-5370
/endor: SYNEK, JENNIFER
>YNEK, JENNIFER 100-22-5420
/endor: TASER INTERNATIONAL
FASER INTERNATIONAL 100-22-6210
/endor: TOBIN, TRACY
OBIN, TRACY 100-46-5110
Description (Item)
CREDITSUPPLIES
SUPPLIES
SUPPLIES
SUPPLIES
SUPPLIES
SUPPLIES
SUPPLIES
CONTRACTUAL SERVICES
VEHICLE REPAIRS
SUPPLIES
Payable Number Post Date Amount
30CN001152
04/27/2015
-467.68
301V020994
04/27/2015
22.20
301VO37365
04/27/201S
8162
301VO42708
04/27/2015
297,24
311VO10162
04/27/2015
83,91
311VO10552
04/27/2015
108499
311VO13051
04/27/2015
72.84
Vendor PSP-BROOKFIELD Total:
201.12
INV0000150 04/27/201S
Vendor REICHE'S PLUMBING SEWER RODDING CORP Total:
10667
34759
REIMB TRAINING EXPENSES INV0000152
ARCHERY CERTIFICATION
VEHICLE STICKERS
INV0000151
304681
REIMB CLOTHING ALLOWANCE INV0000154
CONTRACTUAL SERVICES
SUPPLIES
SUPPLIES
SWIM MEET OFFICIAL
SUPPLIES
VEHICLE REPAIR PARTS
04/27/2015
Vendor REX AUTO BODY Total:
04/27/2015
Vendor RIDGEVIEW ELECTRIC INC Total:
04/27/2015
Vendor RUZICKA, RUSSELL Total:
04/27/2015
Vendor RYBA, RON Total:
04/27/2015
Vendor RYDIN DECAL Total:
04/27/201S
Vendor SEXTON, ERIC M Total:
S70023 04/27/2015
W10006 04/27/2015
Vendor SHERMAN MECHANICAL INCTotal:
SS059119 04/27/2015
Vendor SHERWIN INDUSTRIES INC Total:
10/18-1/17/15 04/27/2015
Vendor SMITH, WILLIAM Total:
X005009016.001 04/27/2015
Vendor STEINER ELECTRIC COMPANY Total:
175175
REIMB TRAINING EXPENSES INV0000153
SUPPLIES
S11395395
PARKS PROGRAM INSTRUCTOR 4/18/15
04/27/2015
Vendor SUNNYSIDE COMPANYTotal:
04/27/2015
Vendor SYNEK, JENNIFER Total:
04/27/2015
Vendor TASER INTERNATIONAL Total:
04/27/2015
Vendor TOBIN, TRACY Total:
150900
150000
1,749.45
1,749.45
125.00
125400
336,18
336918
100000
100600
4,022.72
41022*72
230.51
230.51
1,039.58
565.00
11604,58
21732*50
21732*50
150.00
150.00
509,05
509505
12.53
1153
8.00
8400
11125,54
1/125954
47,25
47.25
I/22/2015 2:15:54 PM Page 6
:xpenseApproval Register
Jendor Name Account Number
en or; TOPS IN DOG TRAINING CORP
"OPS IN DOG TRAINING CORP 100-22-6310
"OPS IN DOG TRAINING CORP 100-22-6310
/endor: TRAFFIC CONTROL & PRUTECTION INC
"RAFFIC
CONTROL
&
100-33-6110
"RAFFIC
CONTROL
&
100-33-6110
"RAFFIC
CONTROL
&
100-33-6110
"RAFFIC
CONTROL
&
100-33-6110
"RAFFICCONTROL&
100-33-6110
"RAFFIC
CONTROL
&
100-33-6110
Description (Item)
K9TRAINING EXPENSES
K9 TRAINING & BOARDING
SUPPLIES
SUPPLIES
SUPPLIES
SUPPLIES
SUPPLIES
SUPPLIES
/endor: TRII(FIA, SHEEL I<
-RIKHA, SHEEL K 100-46-5110 PARKS PROGRAM - LEGOS
/endor: TYLEft TECHNOLOGIES
YLER TECHNOLOGIES 450-00-8300 FINANCE SOFTWARE
YLER TECHNOLOGIES 450-00-8360 FINANCE SOFTWARE
/endor: USA BLUEBOOK
JSA BLUEBOOK 510-32-6110 SUPPLIES
JSA BLUEBOOK 510-32-6110 SUPPLIES
/endor: WASTE MANAGEMENT OF WI PHEASANT RUN RDF
NASTE MANAGEMENTOF WI 510-32-5580
/endor: XYLEM WATER SOLUTIONS USA INC
(YLEM WATER SOLUTIONS USA 510-32-5380
Jendor: Z.UKOWSKI
ROGERS
FLOOD
& MCARDLE
'UI<OWSI<I R06ERS
FLOOD &
740-00-5230
SLUDGE REMOVAL
PUMP PARTS
SCHOOL DISTRICT 15
Payable Number
Post Date
16417 04/27/2015
17037 04/27/2015
Vendor TOPS IN DOG TRAINING CORP Total:
82368
04/27/2015
52756
04/27/2015
82780
04/27/2015
82829
04/27/2015
83195
04/27/2015
83362
04/27/2015
Vendor TRAFFIC CONTROL & PROTECTION INC Total:
WINTER 2015
04/27/2015
Vendor TRIKHA, SHEEL I(Total:
Amount
100.00
506.98
606.98
365.00
341.00
57.70
191.55
3,360.00
343.00
4,655.25
941.00
941.00
025-122540 04/27/2015 3,270.00
025-122541 04/27/2015 61015,15
Vendor TYLER TECHNOLOGIES Total: 9,285.15
587078 04/27/2015 312.68
589345 04/27/2015 50.65
Vendor USA BLUEBOOK Total: 363.33
0028799-2742-0 04/27/2015 12,844.50
Vendor WASTE MANAGEMENT OF WI PHEASANT RUN RDF Total: 12,844.50
3556835596 04/27/2015 2,331.93
Vendor XYLEM WATER SOLUTIONS USA INC Total: 2,331.93
113416 04/27/2015 297.50
Vendor ZUIfOWSI<I ROGERS FLOOD & MCARDLE Totai: 297.50
Grand Totai: 175,086.57
I/22/2015 2:15:54 PM Page 7
:xpenseApproval Register
Fund Summary
Fund
100-GENERAL FUND
225-ALARM BOARD FUND
270 - MOTOR FUELTAX FUND
440-CAPITAL IMPROVEMENTS FUND
450-CAPITAL EQUIPMENT FUND
510- WATER/SEWER FUND
610 - RISK MANAGEMENT FUND
620- INFORMATION TECHNOLOGY FUND
740-RETAINED PERSONNEL ESCROW
Grand Total:
Expense Amount
83,322.31
1,059.50
23,287,43
103.14
9,285.15
48,499.78
1,749.45
605.74
7,174.07
175,086.57
Report Summary
Office of the Mayor
Susan Low, Mayor
McHenry Municipal Center
333 Green Street
McHenry, Illinois 60050
Phone: (815) 363-2100
Fax: (815) 363-2119
www.ci.mchenry.il.us
AGENDA SUPPLEMENT
DATE: Apri127, 2015
TO: McHenry City Council
FROM: Susan E. Low, Mayor
RE Resolution 15-005
A Resolution recognizing Geoffrey T. Blake's many contributions as City of McHenry Ward 4
Alderman is presented to the Council for approval.
If Council concurs, then it is recommended a motion is considered to approve the attached
Resolution as presented.
RENOL UTIOIV R-15-005
WHEREAS, on November 2, 2009, Geoffrey T. Blake was appointed to the McHenry
City Council to serve the residents of Ward 4; was elected in 2011; and served honorably until
April 30, 2015; and
WHEREAS, Geoff served the City of McHenry, its residents and business commmunity in
his capacity as Alderman and on several standing -committees including the Finance and
Personnel Committee, Parks and Recreation Committee and Public Works Committee; and has
acted in all matters with the welfare of the City uppermost in his mind; and
WHEREAS, during his years of service Geoff witnessed and assisted in:
• Inter -agency Mutual Aid Agreements;
• Modernization of Information Technology and Police Communication Systems;
• Establishment of Home Rule Authority;
• Design and Construction of the McHenry Riverwalk Phase 2;
• Purchase, design, and construction of Miller Point and Public Piers;
• Expanded PACE Dial -a -Ride Services;
• Municipal Center Needs Assessment and Enhanced Security Protocols;
• Development of McBark Dog Park;
• Expansion of the City of McHenry Forestry Division;
• Five years of balanced city budgets; and
• Planning, design for construction of the McHenry Recreation Center,
WHEREAS, Geoff can look back with pride on his numerous contributions and
accomplishments while serving our community.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of McHenry
go on record as recognizing the many contributions and accomplishments of Geoffrey T. Blake
and expresses our appreciation and gratitude to him on behalf of the citizens of Ward 4 and the
entire McHenry community.
BE IT FURTHER RESOLVED that this Resolution be incorporated into the minutes of
this meeting and that a copy be presented to Geoffrey T. Blake.
Passed and approved this 271h day of Apri12015.
ATTEST:
Mayor
City Clerk
Derik Morefield, City Administrator
McHenry Municipal Center
333 Green Street
McHenry, Illinois 60050
Phone: (815) 363-2100
Fax: (815) 363-2119
dmorefield@ci.mchenry.il.us
DATE: April 27, 2015
TO: Mayor and City Council
CC: Department Directors
FROM: Derik Morefield, City Administrator
Carolyn Lynch, Finance Director
RE: Adoption of the Proposed FY2015/2016 Budget
This transmittal letter summarizes the proposed annual budget for the various funds of the City
of McHenry for the fiscal year that begins May 1, 2015 and ends April 30, 2016 (FY15/16) in a
form that can be easily understood. More detailed information regarding each fund, including
narrative descriptions of each fund, can be found in the budget document.
The 15t draft of the FY15/16 Proposed Budget was reviewed at the Finance and Personnel
Committee meeting held on Monday, March 5, 2015. The 2nd draft of the budget document was
reviewed on Monday, April 6, 2015 and the document has been updated as a result of the
topics discussed at this meeting. Minutes of these meetings have been attached to this
transmittal letter for your reference.
EXECUTIVE SUMMARY
As in previous years, the City Administration has taken a conservative approach in developing
the FY15/16 Budget. Revenue projections continue to be based, cautiously, on historical trends
and economic forecasts while taking into account the current state of the economy and
financial instability of the State of Illinois. Budget development guidelines provided to
Department Directors continue to stress the need to keep proposed operating expenditures
level where possible and to continue to identify opportunities to reduce expenditures and/or
increase revenues and the efficiency of providing services.
In considering the proposed FY15/16 Budget the City must be mindful of the recent
announcement by Governor Rauner regarding the potential for reductions to the Local
Government Distributive Fund (LGDF) as part of the FY15/16 State of Illinois Budget (July 1,
2015 — June 30, 2016). While the LGDF reduction to the FY14/15 State of Illinois Budget was
recently withdrawn, the potential still exists for a reduction to the LGDF in the FY15/16 Budget.
As proposed, an LGDF reduction of 50% would result in an estimated $1.3 million in reduced
revenues for the City's General Fund. This represents 6.7% of the estimated FY15/16 General
Fund Revenues. Reductions of this magnitude would, no doubt, require the City to rely solely
on the General Fund Fund Balance for the implementation of capital improvement and capital
equipment projects, in addition to impacting annual operating costs. The City has been
successful in rebuilding the General Fund Fund Balance not only to a level that meets the City's
minimum General Fund Fund Balance Policy (20% of operating expenses), but also to ensure
that funding is available for the implementation of significant capital improvement projects.
Unfortunately, this would be quickly depleted should it become the sole source of funding for
capital improvement and capital equipment projects as a result of reductions to the LGDF.
While it is understood that Governor Rauner's proposal is preliminary and subject to extensive
modification, the City of McHenry must be mindful of the impact that any reductions could
have.
The FY15/16 Budget, as proposed, is operationally BALANCED. The proposed spending plan
totals $44,638,069 for All Funds and $19,979,924 for the General Fund. The following is a
summary of revenue and expenditure activities for the various funds that comprise the
municipal budget.
GENERAL FUND
The General Fund represents the core revenue and expense fund for municipal functions. All
operating expenses, except for water and sewer operations, are allocated from the General
Fund.
Revenues. Budgeted revenues within the General Fund are $19,382,360, an increase of
$504,008 (2.7%) from FY14/15. Approximately $16,042,627, or 82.8%, of estimated FY15/16
General Fund Revenues is comprised of Sales Tax receipts, Income Tax receipts, and Property
Tax receipts.
While the City has seen growth in State and Local Sales Tax receipts in recent fiscal years due to
factors related to economic recovery, this trend is beginning to level and, as such, staff will
continue to budget revenues from this source conservatively. State Sales Tax receipts, which
make up 33.9% of fund revenues, are budgeted at $6,565,739, reflecting an increase of
$122,960 (1.9%) from FY14/15. Local Sales Tax receipts, comprising 9.6% of fund revenues, are
budgeted at $1,891,680, reflecting an increase of $27,956 (1.5%) from the current fiscal year.
Income Tax receipts, comprising approximately 12.6% of General Fund Revenues, are budgeted
at $2,450,000, an increase of $241,000, or 10.9% from the FY14/15 Budget. Again, as identified
in the Executive Summary, this revenue source is volatile given the recent proposal by Governor
Rauner for a 50% reduction to the LGDF.
Property Tax receipts, which make up approximately 26.5% of fund revenues, are budgeted at
$5,135,208, which is a decrease of $14,975 from the amount budgeted in FY14/15, $5,150,183.
This is the result of the City Council's decision to maintain a "flat" property tax levy for the 5tn
consecutive year.
The remaining approximately 17.2% of General Fund Revenues are comprised primarily of other
Intergovernmental revenues, Franchise Fees, Fines and Forfeitures, Charges for Services,
Interest Income, Donations, Reimbursements and other Miscellaneous revenues.
Expenditures. Total General Fund Expenditures (without capital expenses) are budgeted at
$18,669,959, an increase of $676,265 (3.75%) from FY14/15. The primary reasons for this
increase include a $91,797 increase to the Police Pension Fund contribution and costs related to
the payment of salary, wages, insurance and benefits for existing employees. These include a
2% COLA and step increase for bargaining unit employees and a .8% Consumer Price Index (CPI)
and merit adjustments for eligible non -represented employees. Of note, the budget, as
proposed, includes the addition of 1.3 Full Time Equivalent (FTE) positions — a Recreation
Center Manager to participate in the development and construction of the new Recreation
Center; and in anticipation of the hiring of an additional Police Patrol Officer resulting from the
the creation of a second School Resource Officer position, subject by approval by McHenry
School District 156. As with the existing SRO position, this second SRO position would also be
70% funded (salary + benefits) by McHenry School District 156, thus the .3 FTE.
With the inclusion of capital expenses (Capital Improvement and Capital Equipment Projects),
General Fund Expenses increase by $1,305,725 to $19,979,924, an increase of $1,121,930
(5.9%) from the FY14/15 Budget.
SPECIAL REVENUE FUNDS
Special Revenue Funds include the Tourism Fund, Pageant Fund, Band Fund, Civil Defense Fund,
Alarm Board Revenue Fund, Audit Fund, Annexation Fund, Motor Fuel Tax Fund, Developer
Donation Fund, and the Tax Increment Finance Fund.
Overall, Special Revenue Funds revenues are budgeted at $1,515,081 in FY15/16. This reflects a
decrease of $238,774 or 13.6% from FY14/15. Highlighted here is that revenues within the Tax
Increment Finance Fund continue to decline due to reduced property taxes.
Expenditures are budgeted at $2,487,877, a decrease of $85,733 or 3.3% from FY14/15. While
most of the Special Revenue Funds remain steady, the primary reason for this decrease in
revenues is found in the Motor Fuel Tax Fund, where total revenues are estimated to decrease
by $173,996. Also, within the Developer Donation Fund the following capital expenses are
being rebudgeted from FY14/15 - $72,000 for the completion of the Ft. McHenry renovations,
$50,000 for the development of the Miller Park Boat Ramp, and $20,000 for ADA Park
Improvements.
CAPITAL PROJECT FUNDS
Capital Project Funds include the Recreation Center Construction Fund, Special Service Area #4
(Lakewood Road Subdivision sewer project), Capital Improvements Fund, Local Streets
Improvement Fund (identifies transfer to MFT), and the Capital Equipment Fund.
Revenues in Capital Project Funds are derived mainly from interfund transfers. Capital Project
Fund revenues are budgeted at $1,523,272, an increase of $404,000 from the FY14/15 amount
of $1,119,272. Budgeted expenses of $6,028,822 are $4,252,050 higher than the $1,776,772
budgeted in FY14/15. The primary reason for the overall increase in proposed expenditures
includes the development of the Recreation Facility and increased Capital Improvement and
Capital Equipment expenditures.
As identified above, and at the recommendation of the Finance and Personnel Committee, the
FY15/16 Proposed Budget includes $1,062,500 in Capital Improvement projects and $243,225 in
Capital Equipment projects. These projects, selected based on priority ranking as part of the
FY15/16 - FY19/20 Capital Improvement Plan (CIP) are identified below:
Capital Improvements Fund ($1,062,500)
• Local Street Program -
$450,000
• Dartmoor/Crystal Lake Road Signal -
$400,000
• Municipal Center HVAC -
$ 80,000
• Park Improvements -
$ 85,000
• Downtown Parking Lots -
$ 40,000
• Downtown Sidewalks -
$ 7,500
Capital Equipment Fund ($243,225)
• Streets —Vehicle Replacement (2 trucks) -
$ 80,000
• Police Vehicles and Equipment (2 vehicles) -
$ 80,500
• Police Mobile Computers and Hardware -
$ 23,250
• Building Permitting Software (continuation) -
$ 19,475
• Parks Division Vehicle Replacement (new) -
$ 40,000
Project descriptions for these projects can be found in the FY15/16 — FY19/20 CIP Document.
In addition to these new projects, two (2) Capital Improvement projects — Municipal Building
Improvements ($85,000) and Knox Drive Extension ($305,000) — and one (1) Capital Equipment
project — Finance/Utility Software ($20,000) — are being rebudgeted from FY14/15 for
implementation in FY15/16.
Finally, it should be noted that the total Capital Improvement and Capital Equipment
proposed expenditures of $1,305,725 includes the use of $596,600 from the General Fund
Fund Balance.
DEBT SERVICE FUND
The purpose of the Debt Service Fund is to account for bonded indebtedness incurred by the
City's General Fund, including all bond and interest payments. The Debt Service Fund is a non -
operating budgetary unit, meaning that it does not provide direct service to the public and is
utilized for internal purposes only. Debt service payments are made from this fund and, in turn,
transfers from various other funds are made to the Debt Service Fund for debt service
payments. In FY15/16 revenues, or transfers, into the Debt Service Fund total $1,556,705 and
principal and interest payments are budgeted at $1,556,555.
PROPRIETARY FUNDS
Proprietary funds include the Water/Sewer Fund, which includes all operating costs related to
the conveyance and maintenance of the City's water and sewer systems, Capital Development
Fund, Utility Improvements Fund, and the Marina Operations Fund. As identified in the Water
and Sewer Rate Study, completed by HR Green and presented to the City Council in 2014, water
and sewer revenues are not maintaining pace with the fund expenditures. As such, a new
water and sewer rate structure will need to be considered by Council in FY15/16. Additionally,
with more than $15,000,000 in water and sewer maintenance projects included in the FY15/16
— FY19/20 Capital Improvement Program, Council will be asked to consider the implementation
of a Capital Rate charge for both water and sewer that can be used to implement these
projects.
Total Proprietary Funds revenues, derived primarily through the water and sewer sales within
the Water/Sewer Fund, are budgeted at $6,724,665. This is an increase of $1,095,985 from
FY14/15.
Not reflected as part of the Proprietary Funds Budget are revenues and expenditures for the
Central Wastewater Treatment Plant (CWWTP) Decommissioning Project. This estimated $29
million project would be financed through a State of Illinois State Revolving Fund (SRF) for a
period of twenty (20) years with payments being derived from users of the system. Financing
for the project will be discussed in May 2015 and the budget will be amended to reflect the
receipt of the SRF Loan and financing once a decision is made to move forward with the project.
In addition, included in the Proprietary Funds is the creation of a new "Utility Division" within
the Department of Public Works. In FY14/15 an informal Utility Division was created on a trial
basis by assigning Maintenance Workers from both the Water and Sewer Divisions under
Assistant Water Superintendent Steve Wirch for the sole purpose of undertaking water and
sewer maintenance projects. This is a change from the existing structure in which both the
Water and Sewer Divisions must schedule and coordinate maintenance projects with existing
divisional employees. The Utility Division has worked well during the trial period and is
recommended for formal establishment in the FY15/16 Budget. The only financial impact is the
result of a promotion of the existing Assistant Water Superintendent to Superintendent of the
Utility Division.
Capital items funded through the Water/Sewer Fund are budgeted through depreciation
expenses which allocates the expenditure over the life of the asset. There are five (5)
important Water/Sewer capital projects identified for implementation in FY15/16. These
include:
Water Improvements ($935,000)
• Route 31/Miller Road/Bull Valley Road Watermain Relocation - $585,000
• Water Meter Replacement - $ 50,000
• Water Tower Maintenance and Repair - $300,000
Wastewater Improvements ($690,000)
• AquaTech Replacement - $360,000
• Fieldstone Lift Station - $330,000
Project descriptions can be found in the FY15/16 — FY19/20 CIP Document
INTERNAL SERVICE FUNDS
As the name suggests, Internal Service Funds represent employee contribution and/or
interfund transfers related to Health Insurance, Risk Management and Information Technology.
In FY15/16, Internal Service Fund revenues are budgeted to increase by $330,204 and expenses
are budgeted to increase by $344,464. Both of these increases are almost entirely due to
increases in health insurance costs and related City and employee contributions.
FIDUCIARY FUNDS
Fiduciary Funds include the Employee Flexible Spending Fund, Development Escrow Fund,
Retained Personnel Fund, Revolving Loan Fund, and the Police Pension Fund. Specific to the
Police Pension Fund, municipal contributions are budgeted to increase by $121,297, with
expenditures decreasing by $25,351.
The attached FY15/16 Budget document is organized and presented as follows:
Budget Summary of Revenues and Expenditures
General Fund Operating Budgets
Special Revenue Fund Budgets
Capital Projects
Debt Service Funds
Proprietary Funds
Internal Service Funds
Fiduciary Funds
The City Administration hopes that this summary overview, along with the detailed information
provided in the attached budget document provides the City Council and general public with a
clearer understanding of the City of McHenry's budget structure and the confidence in knowing
that the City Administration continues to serve as responsible stewards of the public's funds.
As previously identified, the Finance and Personnel Committee have reviewed the proposed
FY15/16 Budget on two occasions — March 5th and April 6th. In concluding the April 6, 2015 the
Finance and Personnel Committee unanimously approved forwarding the FY15/16 Budget, as
proposed, to the City Council for adoption.
Therefore, if Council concurs, a motion recommending approval of the proposed FY15/16
Budget, as presented, is appropriate.
FINANCE AND PERSONNEL COMMITTEE
March 5, 2015
Aldermen's Conference Room
Chairman Alderman Wimmer called the meeting of the Finance and Personnel Committee to order at 5:00
PM with the following committee members present: Alderman Geri Condon, Alderman Jeffrey Schaefer.
Also in attendance: City Administrator Derik Morefield, Deputy City Administrator Bill Hobson,
Finance Director Carolyn Lynch, and Executive Assistant Marci Geraghty
1. Public Input
None,
2. Review and Discussion — Draft Fiscal Year 15/16 Budget
City Administrator Morefield declared the budget as proposed is operationally balanced. The
proposed spending plan totals $43,461,556 for all funds and $19,396,913 for the General Fund.
In considering the proposed budget, staff was mindful of the recent announcement by Governor
Rauner regarding proposed reductions to the Local Government Distributive Fund (LGDF).
Due to the impact of the proposed 50% reduction in LGDF, which makes up approximately
12.6% of total General Fund Revenues, options to fund Capital Improvements and purchase of
Capital Equipment were presented for the committee's consideration and direction.
Balance of General Fund Revenues after Expenses is estimated to be $707,422 however the
proposed reduction in the LGDF would result in a deficit in Revenues over Expenditures of
$(517,578) with no General Fund Revenues for Capital Projects and the need to reduce General
Fund operating budgets by $517,578.
Options:
• CIP and Capital Equipment projects limited to the amount of General Fund Revenues
over Expenses.
• Select CIP and Capital Equipment projects to complete using fund balance in the General
Fund.
A two tiered approach relating to capital expenditures was proposed to the Committee for
consideration and recommendation:
Proposed Capital Improvements Projects:
• Tier 1: $662,500 - Local Street Program, Municipal Center HVAC; Park Improvements;
Downtown Parking Lot maintenance; and Downtown Sidewalks.
• Tier 2: $400,000 - Dartmoor/Crystal Lake Road Signalization
Total Tier I & Tier 2: $1,062,500
Finance and Personnel Committee
March 5, 2015
Page Two
Proposed Capital Equipment Projects:
• Tier 1: $59,475 - Continuation of Building Permitting Software; Parks Vehicle
Replacement
• Tier 2: $183,750 - Police Mobile Computers and Hardware; Streets Vehicle Replacement
(2 trucks); Police Vehicles and Equipment (1 squad, 1 specialty)
Total Tier 1 & Tier 2: $243,225
The Committee agreed expenditures in each tier are necessary. They recommended approval of Tier 1
options and completion of seasonal projects and delay funding of Tier 2 projects and equipment purchase
until more is known on the status of the LGDF.
3. Other Business
Mr. Morefield summarized the establishment of a merit -based compensation system for non -
bargaining unit employees that will begin on May 1, 2015. The new system will replace the
existing step -based and longevity pay system. A combination of the CPI-U and merit based
percentage will be used, The amount of merit -pay scale will be determined upon approval of the
annual budget.
4. Adjournment
Alderman Schaefer made a motion, seconded by Alderman Condon to adjourn the meeting.
Aye:
Schafer, Condon, Wimmer
Nay:
None
Abstaining:
None
Not Voting:
None
Absent:
None
Motion carried
The meeting was adjourned at 6:00 PM.
The next meeting of the Finance and Personnel Committee is April6a' at 6:00 PM.
Respectfully submitted,
Alderman Richard V. er
FINANCE AND PERSONNEL COMMITTEE MEETING
Monday, April 6, 2015
Alderman Conference Room, 6:00 p.m.
In Attendance: Committee Members: Chairman Alderman Wimmer, Alderman
Condon and Alderman Schaefer. Absent: None.
Also in Attendance: Mayor Low, City Administrator Morefield, Deputy City Administrator
Hobson and Director of Finance Lynch.
Chairman Alderman Wimmer called the meeting to order at 6:03 p.m.
Public in Attendance: Mr. Scott Curry
Mr. Greg Van Nostrand
Chairman Alderman Wimmer called the meeting to order at 6:03 p.m.
Mayor Low arrived at 6:06 pm
Alderman Santi arrived at 6:20 p.m.
Public Input
Mr. Scott Curry, 5802 Amherst, McHenry, addressed the Committee regarding the proposed
Fiscal Year 2015/2016 Budget. Mr. Curry stated that he has reviewed the entire budget and
expressed concerns regarding portions of the budget.
Discussion Regarding the City of McHenry
Fiscal Year 2015/2016 Budget Final Draft and Motion to
Present the Budget Document to the Full Council for Consideration
Chairman Alderman Wimmer recognized City Administrator Morefield.
City Administrator Morefield reiterated to the Committee that the first draft of the FY15/16
Proposed Budget was reviewed at the Finance and Personnel Committee meeting held on
March 5, 2015. This second draft of the budget document has been modified as a result of the
topics discussed by the Committee at the meeting on March 5, 2015. Specifically, the tiered
implementation of Capital Improvement and Capital Equipment projects and the
implementation of a merit -based compensation system for non -bargaining unit employees.
As in previous years, the City Administration has taken a conservative approach in
developing the proposed budget. Revenue projects continue to be based on historical trends
and economic forecasts, while taking into account the current state of the economy and
financial instability of the State of Illinois.
Budget development guidelines provided to Department Directors continue to stress the need
to keep proposed operating expenditures level where possible and to continue to identify
opportunities to reduce expenditures and/or increase revenues and the efficiency of providing
services.
Finance and Personnel Committee Meeting
April 6, 2015
Page 2
In considering the proposed FY15/16 Budget, the City must be mindful of the recent
announcement by Governor Rauner regarding the potential for reductions to the Local
Government Distributive Fund (LGDF). While the LGDF reduction to the FY14/15 State of
Illinois Budget was recently withdrawn, the potential exists for a reduction to the LGDF in
the FY15/16 Budget. City Administrator Morefield noted that as proposed, an LGDF
reduction of 50% would result in an estimated $1.3 million in reduced revenues for the City's
General Fund.
City Administrator Morefield stated that the City has been successful in rebuilding the
General Fund Balance not only to a level that meets the City's minimum General Fund Fund
Balance Policy (20% of operating expenses), but also to ensure that funding is available for
the implementation of significant capital improvement projects. Unfortunately, funds would
quickly be depleted should it become the sole source of funding for capital improvement and
capital equipment projects, because of reductions to the LGDF.
City Administrator Morefield noted that while it is understood that Governor Rauner's
proposal is preliminary, and subject to extensive modification, the City of McHenry remains
mindful of the impact that any reductions could have.
City Administrator Morefield stated that the FY15/16 Budget, as proposed is operationally
balanced. The proposed spending plan totals $44,627,355 for All Funds and $19,978,962 for
the General Fund.
City Administrator Morefield provided a brief summary of the General Fund, revenue and
expenditures to the Committee. Additionally, he provided brief summaries of the following
Funds:
• Special Revenue Fund;
• Capital Project Funds;
• Debt Service Fund;
• Proprietary Funds;
• Internal Service Funds; and
• Fiduciary Funds.
Responding to an inquiry from the Committee, City Administrator Morefield stated that the
Water Improvements and the Wastewater Improvements are paid for through the Water
Sewer Fund.
Responding to an inquiry from the Committee, Director of Finance Lynch noted that the
Bond Payment and Salt would eat up the Motor Fuel Tax (MFT) Fund allotment for
2015/2016.
Finance and Personnel Committee Meeting
April 6, 2015
Page 3
Alderman Schaefer suggested that, at some point, the Finance and Personnel Committee
should address future commitments to the General Fund balance.
Alderman Condon stated that she noticed an increase in the Alderman salary in the Budget.
Director Lynch stated that it was an oversight and would be addressed prior to the final
Budget.
Alderman Schaefer inquired about whether outsourcing the Human Resources position,
rather than filling the position following Director Zannini's departure had been explored.
City Administrator Morefield stated that outsourcing the position had been researched by
Director Zannini. There is no cost savings. Staff opined that outsourcing the position of
Director of Human Resources for that reason and with a contractual employee because there
is no day-to-day employee contact outsourcing is not a viable option.
Responding to an inquiry from Alderman Schaefer regarding contractual accounts, City
Administrator Morefield noted that legal costs were reduced this year, and the only other
contractual employees are in the Parks and Recreation Department.
City Administrator Morefield informed the Committee that the FYI 5/16 Budget document is
organized as follows:
• Budget Summary of Revenues and Expenditures;
• General Fund Operating Budgets;
• Special Revenue Fund Budgets
• Capital Projects;
• Debt Service Funds;
• Proprietary Funds;
• Internal Service Funds; and
• Fiduciary Funds
Motion by Condon, seconded by Schaefer, directing Staff to present the draft Fiscal Year
2015/2016 Budget document to full Council.
Aye: Condon, Schaefer, Wimmer
Nay: None.
Absent: None.
Motion carried.
New Business
No new business was discussed.
Finance and Personnel Committee Meeting
April 6, 2015
Page 4
Adjournment
Motion by Condon, seconded by Schaefer, to adjourn the meeting at 6:25 p.m.
Aye: Condon, Schaefer, Wimmer.
Nay: None.
Absent: None.
Motion carried.
Respectfully submitted,
Richard W. Wimmer, Chairman
CITY OF MCHENRY, ILLINOIS
FISCAL YEAR 2015/2016
BUDGET
6n
w Ar T T
April 2015
CITY OF MCHENRY
FY2015/2016
ANNUAL BUDGET
Susan E. Low, Mayor
Geoffrey T. Blake, Alderman Geri A. Condon, Alderman
Andrew Glab, Alderman Robert Peterson, Alderman
Victor A. Santi, Alderman Jeffrey A. Schaefer, Alderman
Richard Wimmer, Alderman
Janice C. Dalton, City Clerk
Prepared By:
Derik Morefield, City Administrator
Carolyn Lynch, Finance Director
Bill Hobson, Deputy City Administrator
John Jones, Chief of Police
Doug Martin, Director of Economic Development
Jon Schmitt, Public Works Director
Vickie Zinanni, Human Resources Manager
Marci Geraghty, Executive Assistant
City of McHenry, Illinois
FY2O15/2O16 Annual Budget
Table of Contents
Letterof Transmittal..................................................................................................... 1
OrganizationalCharts............................................................................................................. 8
BudgetDocument Guide........................................................................................................ 22
Fund Structure Overview....................................................................................................... 23
Basis of Accounting and Budgeting...................................................................................... 26
Budget Summary of Revenues and Expenditures..............................................................
27
Summary Chart of Revenues & Other Financing Sources —All Funds ...............
28
Revenue Budget —All Funds.....................................................................................
29
Summary Chart of Revenues & Other Financing Sources — General Fund.......
31
Revenues by Source — General Fund......................................................................
32
General Fund — Historical Trend Major Revenue Sources ..................................
33
Summary Chart of Expenditures by Function — All Funds ...................................
35
Summary Chart of Expenditures by Budget Unit — General Fund .....................
36
Summary Chart of Expenditures by Category — General Fund .........................
37
Expense Budget —All Funds...................................................................................
38
Authorized Personnel..............................................................................................
40
Personnel Expenses.................................................................................................
41
Schedule of Anticipated Fund Balance.................................................................
42
General Fund Operating Budgets......................................................................................
43
Administration.........................................................................................................
44
ElectedOfficials......................................................................................................
47
Community & Economic Development...............................................................
49
Finance.....................................................................................................................
53
PoliceCommission.................................................................................................
56
Police.......................................................................................................................
57
Public Works Administration................................................................................
61
Public Works — Street Division.............................................................................
62
Parks& Recreation................................................................................................
67
Special Revenue Fund Budgets.......................................................................................... 72
Tourism.................................................................................................................... 73
Pageant.................................................................................................................... 74
Band......................................................................................................................... 75
CivilDefense...........................................................................................................
76
AlarmBoard...........................................................................................................
77
Audit.........................................................................................................................
78
Annexation..............................................................................................................
79
MotorFuel Tax.......................................................................................................
80
Developer Donation..............................................................................................
82
Tax Increment Finance.........................................................................................
84
Capital Projects & Debt Service Funds............................................................................ 85
Recreation Center Construction Fund................................................................ 86
Special Service Area#4........................................................................................ 88
Capital Improvements Fund................................................................................. 89
Capital Equipment Fund....................................................................................... 90
DebtService Fund................................................................................................. 92
EnterpriseFunds.................................................................................................................
94
PublicWorks — Water..........................................................................................
95
Public Works — Wastewater................................................................................
98
Public Works — Utility...........................................................................................
101
CapitalDevelopment...........................................................................................
103
UtilityImprovements...........................................................................................
104
MarinaOperations..............................................................................................
106
Internal Service Funds....................................................................................................... 107
Employee Insurance............................................................................................. 108
RiskManagement................................................................................................ 109
Information Technology...................................................................................... 111
FiduciaryFunds..................................................................................................................
114
Employee Flexible Spending...............................................................................
115
Development Escrow...........................................................................................
116
RetainedPersonnel..............................................................................................
117
RevolvingLoan.....................................................................................................
118
PolicePension.......................................................................................................
119
Supplemental Information...............................................................................................
121
FinancialPolicies..................................................................................................
122
Capital Improvement Program Financial Policies ...........................................
124
InvestmentPolicy.................................................................................................
125
CommunityProfile...............................................................................................
132
Glossary.................................................................................................................
134
CHe r
DATE: April 27, 2015
TO: Mayor and City Council
CC: Department Directors
FROM: Derik Morefield, City Administrator
Carolyn Lynch, Finance Director
RE: Transmittal of the Proposed FY2015/2016 Budget
This transmittal letter summarizes the proposed annual budget for the various funds of the City
of McHenry for the fiscal year that begins May 1, 2015 and ends April 30, 2016 (FY15/16) in a
form that can be easily understood. More detailed information regarding each fund, including
narrative descriptions of each fund, can be found in the budget document.
EXECUTIVE SUMMARY
As in previous years, the City Administration has taken a conservative approach in developing
the FY15/16 Budget. Revenue projections continue to be based, cautiously, on historical trends
and economic forecasts while taking into account the current state of the economy and
financial instability of the State of Illinois. Budget development guidelines provided to
Department Directors continue to stress the need to keep proposed operating expenditures
level where possible and to continue to identify opportunities to reduce expenditures and/or
increase revenues and the efficiency of providing services.
In considering the proposed FY15/16 Budget the City must be mindful of the recent
announcement by Governor Rauner regarding the potential for reductions to the Local
Government Distributive Fund (LGDF) as part of the FY15/16 State of Illinois Budget (July 1,
2015 — June 30, 2016). While the LGDF reduction to the FY14/15 State of Illinois Budget was
recently withdrawn, the potential still exists for a reduction to the LGDF in the FY15/16 Budget.
As proposed, an LGDF reduction of 50% would result in an estimated $1.3 million in reduced
revenues for the City's General Fund. This represents 6.7% of the estimated FY15/16 General
Fund Revenues. Reductions of this magnitude would, no doubt, require the City to rely solely
on the General Fund Fund Balance for the implementation of capital improvement and capital
equipment projects, in addition to impacting annual operating costs. The City has been
successful in rebuilding the General Fund Fund Balance not only to a level that meets the City's
minimum General Fund Fund Balance Policy (20% of operating expenses), but also to ensure
that funding is available for the implementation of significant capital improvement projects.
Unfortunately, this would be quickly depleted should it become the sole source of funding for
capital improvement and capital equipment projects as a result of reductions to the LGDF.
While it is understood that Governor Rauner's proposal is preliminary and subject to extensive
modification, the City of McHenry must be mindful of the impact that any reductions could
have.
The FY15/16 Budget, as proposed, is operationally BALANCED. The proposed spending plan
totals $44,638,069 for All Funds and $19,979,924 for the General Fund. The following is a
summary of revenue and expenditure activities for the various funds that comprise the
municipal budget.
GENERAL FUND
The General Fund represents the core revenue and expense fund for municipal functions. All
operating expenses, except for water and sewer operations, are allocated from the General
Fund.
Revenues. Budgeted revenues within the General Fund are $19,382,360, an increase of
$504,008 (2.7%) from FY14/15. Approximately $16,042,627, or 82.8%, of estimated FY15/16
General Fund Revenues is comprised of Sales Tax receipts, Income Tax receipts, and Property
Tax receipts.
While the City has seen growth in State and Local Sales Tax receipts in recent fiscal years due to
factors related to economic recovery, this trend is beginning to level and, as such, staff will
continue to budget revenues from this source conservatively. State Sales Tax receipts, which
make up 33.9% of fund revenues, are budgeted at $6,565,739, reflecting an increase of
$122,960 (1.9%) from FY14/15. Local Sales Tax receipts, comprising 9.6% of fund revenues, are
budgeted at $1,891,680, reflecting an increase of $27,956 (1.5%) from the current fiscal year.
Income Tax receipts, comprising approximately 12.6% of General Fund Revenues, are budgeted
at $2,450,000, an increase of $241,000, or 10.9% from the FY14/15 Budget. Again, as identified
in the Executive Summary, this revenue source is volatile given the recent proposal by Governor
Rauner for a 50% reduction to the LGDF.
Property Tax receipts, which make up approximately 26.5% of fund revenues, are budgeted at
$5,135,208, which is a decrease of $14,975 from the amount budgeted in FY14/15, $5,150,183.
This is the result of the City Council's decision to maintain a "flat" property tax levy for the 5tn
consecutive year.
K
The remaining approximately 17.2% of General Fund Revenues are comprised primarily of other
Intergovernmental revenues, Franchise Fees, Fines and Forfeitures, Charges for Services,
Interest Income, Donations, Reimbursements and other Miscellaneous revenues.
Expenditures. Total General Fund Expenditures (without capital expenses) are budgeted at
$18,669,959, an increase of $676,265 (3.75%) from FY14/15. The primary reasons for this
increase include a $91,797 increase to the Police Pension Fund contribution and costs related to
the payment of salary, wages, insurance and benefits for existing employees. These include a
2% COLA and step increase for bargaining unit employees and a .8% Consumer Price Index (CPI)
and merit adjustments for eligible non -represented employees. Of note, the budget, as
proposed, includes the addition of 1.3 Full Time Equivalent (FTE) positions — a Recreation
Center Manager to participate in the development and construction of the new Recreation
Center; and in anticipation of the hiring of an additional Police Patrol Officer resulting from the
the creation of a second School Resource Officer position, subject by approval by McHenry
School District 156. As with the existing SRO position, this second SRO position would also be
70% funded (salary + benefits) by McHenry School District 156, thus the .3 FTE.
With the inclusion of capital expenses (Capital Improvement and Capital Equipment Projects),
General Fund Expenses increase by $1,305,725 to $19,979,924, an increase of $1,121,930
(5.9%) from the FY14/15 Budget.
SPECIAL REVENUE FUNDS
Special Revenue Funds include the Tourism Fund, Pageant Fund, Band Fund, Civil Defense Fund,
Alarm Board Revenue Fund, Audit Fund, Annexation Fund, Motor Fuel Tax Fund, Developer
Donation Fund, and the Tax Increment Finance Fund.
Overall, Special Revenue Funds revenues are budgeted at $1,515,081 in FY15/16. This reflects a
decrease of $238,774 or 13.6% from FY14/15. Highlighted here is that revenues within the Tax
Increment Finance Fund continue to decline due to reduced property taxes.
Expenditures are budgeted at $2,487,877, a decrease of $85,733 or 3.3% from FY14/15. While
most of the Special Revenue Funds remain steady, the primary reason for this decrease in
revenues is found in the Motor Fuel Tax Fund, where total revenues are estimated to decrease
by $173,996. Also, within the Developer Donation Fund the following capital expenses are
being rebudgeted from FY14/15 - $72,000 for the completion of the Ft. McHenry renovations,
$50,000 for the development of the Miller Park Boat Ramp, and $20,000 for ADA Park
Improvements.
9
CAPITAL PROJECT FUNDS
Capital Project Funds include the Recreation Center Construction Fund, Special Service Area #4
(Lakewood Road Subdivision sewer project), Capital Improvements Fund, Local Streets
Improvement Fund (identifies transfer to MFT), and the Capital Equipment Fund.
Revenues in Capital Project Funds are derived mainly from interfund transfers. Capital Project
Fund revenues are budgeted at $1,523,272, an increase of $404,000 from the FY14/15 amount
of $1,119,272. Budgeted expenses of $6,028,822 are $4,252,050 higher than the $1,776,772
budgeted in FY14/15. The primary reason for the overall increase in proposed expenditures
includes the development of the Recreation Facility and increased Capital Improvement and
Capital Equipment expenditures. Of note, the $4,800,000 identified for the Recreation Center
project assumes that the bonding will be approved for $2,000,000 of the project in FY14/15.
As identified above, and at the recommendation of the Finance and Personnel Committee, the
FY15/16 Proposed Budget includes $1,062,500 in Capital Improvement projects and $243,225 in
Capital Equipment projects. These projects, selected based on priority ranking as part of the
FY15/16 - FY19/20 Capital Improvement Plan (CIP) are identified below:
Capital Improvements Fund ($1,062,500)
• Local Street Program -
$450,000
• Dartmoor/Crystal Lake Road Signal -
$400,000
• Municipal Center HVAC -
$ 80,000
• Park Improvements -
$ 85,000
• Downtown Parking Lots -
$ 40,000
• Downtown Sidewalks -
$ 7,500
Capital Equipment Fund ($243,225)
• Streets — Vehicle Replacement (2 trucks) - $ 80,000
• Police Vehicles and Equipment (2 vehicles) - $ 80,500
• Police Mobile Computers and Hardware - $ 23,250
• Building Permitting Software (continuation) - $ 19,475
• Parks Division Vehicle Replacement (new) - $ 40,000
Project descriptions for these projects can be found in the FY15/16 — FY19/20 CIP Document.
In addition to these new projects, two (2) Capital Improvement projects — Municipal Building
Improvements ($85,000) and Knox Drive Extension ($305,000) — and one (1) Capital Equipment
project — Finance/Utility Software ($20,000) — are being rebudgeted from FY14/15 for
implementation in FY15/16.
4
Finally, it should be noted that the total Capital Improvement and Capital Equipment
proposed expenditures of $1,305,725 include the use of $596,600 from the General Fund
Fund Balance.
DEBT SERVICE FUND
The purpose of the Debt Service Fund is to account for bonded indebtedness incurred by the
City's General Fund, including all bond and interest payments. The Debt Service Fund is a non -
operating budgetary unit, meaning that it does not provide direct service to the public and is
utilized for internal purposes only. Debt service payments are made from this fund and, in turn,
transfers from various other funds are made to the Debt Service Fund for debt service
payments. In FY15/16 revenues, or transfers, into the Debt Service Fund total $1,556,705 and
principal and interest payments are budgeted at $1,556,555.
PROPRIETARY FUNDS
Proprietary funds include the Water/Sewer Fund, which includes all operating costs related to
the conveyance and maintenance of the City's water and sewer systems, Capital Development
Fund, Utility Improvements Fund, and the Marina Operations Fund. As identified in the Water
and Sewer Rate Study, completed by HR Green and presented to the City Council in 2014, water
and sewer revenues are not maintaining pace with the fund expenditures. As such, a new
water and sewer rate structure will need to be considered by Council in FY15/16. Additionally,
with more than $15,000,000 in water and sewer maintenance projects included in the FY15/16
— FY19/20 Capital Improvement Program, Council will be asked to consider the implementation
of a Capital Rate charge for both water and sewer that can be used to implement these
projects.
Total Proprietary Funds revenues, derived primarily through the water and sewer sales within
the Water/Sewer Fund, are budgeted at $6,724,665. This is an increase of $1,095,985 from
FY14/15.
Not reflected as part of the Proprietary Funds Budget are revenues and expenditures for the
Central Wastewater Treatment Plant (CWWTP) Decommissioning Project. This estimated $29
million project would be financed through a State of Illinois State Revolving Fund (SRF) for a
period of twenty (20) years with payments being derived from users of the system. Financing
for the project will be discussed in May 2015 and the budget will be amended to reflect the
receipt of the SRF Loan and financing once a decision is made to move forward with the project.
In addition, included in the Proprietary Funds is the creation of a new "Utility Division" within
the Department of Public Works. In FY14/15 an informal Utility Division was created on a trial
basis by assigning Maintenance Workers from both the Water and Sewer Divisions under
Assistant Water Superintendent Steve Wirch for the sole purpose of undertaking water and
sewer maintenance projects. This is a change from the existing structure in which both the
Water and Sewer Divisions must schedule and coordinate maintenance projects with existing
divisional employees. The Utility Division has worked well during the trial period and is
recommended for formal establishment in the FY15/16 Budget. The only financial impact is the
result of a promotion of the existing Assistant Water Superintendent to Superintendent of the
Utility Division.
Capital items funded through the Water/Sewer Fund are budgeted
expenses which allocates the expenditure over the life of the asset
important Water/Sewer capital projects identified for implementation
include:
Water Improvements ($935,000)
• Route 31/Miller Road/Bull Valley Road Watermain Relocation -
• Water Meter Replacement -
• Water Tower Maintenance and Repair -
Wastewater Improvements ($690,000)
• AquaTech Replacement -
• Fieldstone Lift Station -
through depreciation
There are five (5)
in FY15/16. These
$585,000
$ 50,000
$300,000
$360,000
$330,000
Project descriptions can be found in the FY15/16 — FY19/20 CIP Document
INTERNAL SERVICE FUNDS
As the name suggests, Internal Service Funds represent employee contribution and/or
interfund transfers related to Health Insurance, Risk Management and Information Technology.
In FY15/16, Internal Service Fund revenues are budgeted to increase by $330,204 and expenses
are budgeted to increase by $344,464. Both of these increases are almost entirely due to
increases in health insurance costs and related City and employee contributions.
FIDUCIARY FUNDS
Fiduciary Funds include the Employee Flexible Spending Fund, Development Escrow Fund,
Retained Personnel Fund, Revolving Loan Fund, and the Police Pension Fund. Specific to the
Police Pension Fund, municipal contributions are budgeted to increase by $121,297, with
expenditures decreasing by $25,351.
The attached FY15/16 Annual Budget document is organized and presented as follows:
Budget Summary of Revenues and Expenditures
General Fund Operating Budgets
6
Special Revenue Fund Budgets
Capital Projects
Debt Service Funds
Proprietary Funds
Internal Service Funds
Fiduciary Funds
The City Administration hopes that this summary overview, along with the detailed information
provided in the attached budget document provides the City Council and general public with a
clearer understanding of the City of McHenry's budget structure and the confidence in knowing
that the City Administration continues to serve as responsible stewards of the public's funds.
Respectfully Submitted,
Derik Morefield Carolyn Lynch
City Administrator Director of Finance & Accounting
CITY OF MCHENRY
Susan E. Low
Mayor
}
Janice C. Dalton
City Clerk
Victor A. Santi
Alderman Ward 1
Andrew Glab
Alderman Ward 2
Jeffrey a. Schaefer
Alderman Ward 3
Geoffrey T. Blake
Alderman Ward 4
Richard Wimmer
Alderman Ward 5
Robert Peterson
Alderman Ward 6
Geri A. Condon
Alderman Ward 7
David W. McArdle
Corporate Attorney
Jon Schmitt
irector of Public
Works
r- mayor
City Counci
P Derik Morefield 4
City Administrator
Bill Hobson
Deputy City Administrator
Parks, Recreation and
Administrative Services
Doug Martin
Director of Economic
Development
John Jones
Police Chief
Carolyn Lynch
Director of Finance
and Accounting
Jon SchmifP
Director of Publ
Works
Derik Morefield
City Administrator
Bill Hobson
Deputy City Administrator
Parks, Recreation and
Administrative Services
Doug Martin
Director of Economic
Development
John Jones
Police Chief
Carolyn Lynch
Director of Finance
and Accounting
Russell Ruzicka
Superintendent of
Waste Water
Kevin Beggs
Asst. Superintendent
of Waste Water
Jon Schmitt
Director of Public
Works
Rich Stull
Superintendent of
Streets
Dale Moll
Crew Leader
Andy Lechner
Crew Leader
Mike Palmer
Superintendent of
Water
Steve W i rch
Asst. Superintendent
of Water
CPUBLIC WORKS -WATER
Doug Mace
Water Operator I I
Steve Ramirez
Water Operator I
Chris Beranek
Maintenance Worker
Todd Sasak
Maintenance Worker
Bryan Scheel
Water Operator I I
Sean Johnson
Water Operator I
Chris Sandoz
Maintenance Worker
12
PUBLIC WORKS -WASTE WATER
Russell Ruzicka
Superintendent of
Waste Water
Jeff Lisafeld r Daniel Duffy
Mechanic Wastewater Operator II
John Kuhl Russell Adams
Wastewater Operator 11 Wastewater Operator II
Bryan Thome David Fees
Wastewater Operator I I Maintenance Worker
Michael Lange Gregory Oliver
Maintenance Worker Maintenance Worker
13
Dave Christopher
Maintenance Worker
Matt Freund
Maintenance Worker
Pedro Padro
Maintenance Worker
PUBLIC WORKS - STREETS
Rich Stull
Streets Superintendent
Clint Greve
Maintenance Worker
Gary Mertz
Maintenance Worker
Bob Zimmerman
Maintenance Worker
J
Ron Barta
Maintenance Worker
Paul Clements
Maintenance Worker
Jason McMahon
Maintenance Worker
Mike Owsley Matt Rogers
Mechanic 14 Mechanic
F— Sam Burrafato
Maintenance Worker
Rick Leisten
l Maintenance Worker
Jacob Reiley
Maintenance Worker
C
FINANCE AND ACCOUNTING
15
RECREATION
Tracy Crowder
Maintenance Worker
Chris Etten
Maintenance Worker
Mike Harper
Maintenance Worker
PARKS, RECREATION and
ADMINISTRATIVE SERVICES
rBilRobson
DeputyAdministrator
AD
1
John Dillon
Maintenance Worker
Tyler Lamz
Maintenance Worker
16
Kathy Quick
Administrative
Assistant
Lynn Martensen
PT Office Assist.
Tina Conaway
�PT Office Assist.
Dorann
Maldonado
Custodian
Thomas Walsh
Commander
Operations Division
Kevin Cox
Sergeant — Day Shift
Paul Funk
Sergeant — PM Shift
Michael Cruz
Sergeant — Midnight
Shift
Ryan Sciame
Sergeant —
Investigations
John Jones
Chief of Police
John Birk
Deputy Chief Police
Dan Kreassig
Sergeant — Day Shift
Brian McKeen
Sergeant — PM Shift
Bob Lumber
Sergeant — Midnight
Shift
Laura King
Commander
Support Services Division
Records Clerks
Information Technology
Dispatchers
Community Service
Officers
CPOLICE -PATROL DIVISION
Paul Funk
Sergeant — PM Shift
Jason Ducak Marc Fisher Brian Aalto Joshua John Adams Robert
Officer Officer Officer Conway Officer Beaudoin
Officer Officer
Jill Foley Jim Harris Ryan Gregorio Rob Klasek Robert Keene Zachary
Officer Officer Officer Officer Officer Piekarski
Officer
Sean Klechak Ryan Pardue Joseph Lazicki Tny Morn ante Patrick Polidori Jaimie Prather
Officer Officer Officer Officer Officer Officer
Paul Prather Larry Popp Tina Torkelson Tonya Stone Matt Schmitt Eric Sexton
Officer Officer &g Duke Officer Officer Officer Officer
Samuel Shafer Michael Spohn Matt Voelker Jack Zumwalt
Officer Officer Officer Officer
POLICE -SUPPORT SERVICES DIVISION 1
DAY SHIFT NIGHT
SHIFT
J \I-
Laura Cox
Holly Neville
DispatcherJ
Dispatcher
L
Jenny Synek
Kathy Kulik
Dispatcher
Dispatcher
Tracy
McNamara
Kelly Schmitt
Dispatcher
Dispatcher
Shelly Hopp
Justin Leibach
Dispatcher
Dispatcher
Division
POWER Debbie Shuett Marybeth Varvil
SHIFT J Records Clerk + Records Clerk
Christine Stephanie Erb Dave Porter
Dawson Community Community
Dispatcher Service Officer Service Officer
Jeffery
Forester
IT Specialist
19
POLICE -INVESTIGATIONS DIVISION
Adrianna E
Detective
Bob Rosh
Detective
Richard Rein
School Resc
Officer
ck Clesen
)etective
My Ducak
)etective
20
CODE COMPLIANCE
Jean Headley
Code Compliance
Inspector
Derik Morefield -
Deputy Administrator
Ryan Schwalenberg
Supt. of Commercial
Inspections
PLAN REVIEW &
BUILDING INSPECTION
Bill Regner
Supt. of Residential
Inspections
Ross Polerecky
Building Inspector
Guy Smale
Plumbing Inspector
Budget Document Guide
This budget document was 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. The second is to develop an annual fiscal plan that will assist City leaders
in making better decisions and enhance financial accountability.
The City of McHenry is moving toward compliance with many of the Government Finance
Officers Association's (GFOA) guidelines for budget presentation and continues its efforts to
improve communication and presentations to its citizenry. The guidelines set forth by GFOA
will ultimately allow the City to meet both of the objectives previously mentioned.
Given the constraints of a small community, this budget document is continually being changed
and is coming closer to meeting the requirements as a:
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 General Fund revenues for the
2010/11 through 2013/14 fiscal years as well as budget amounts for the current and upcoming
years. 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, that present the
budget in a manner that is simple and understandable. The FY15/16 Annual Budget, once
adopted, 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.ci.mchenry.il.us.
22
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 — 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 and Economic Development, Finance, Police,
Public Works Administration, Streets, and Parks and Recreation.
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 Tourism Fund, Pageant Fund, Band Fund, Civil
Defense Fund, Alarm Board Fund, Audit Fund, Annexation Fund, Motor Fuel Tax Fund,
Developer Donation Fund, and Tax Increment Fund.
Debt Service Fund — This fund accounts for the accumulation of revenues for and payment of
principal and interest on general obligation long term debt.
Capital Projects Fund — 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.
The City's business -type funds include the following:
Enterprise Funds — 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 — 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.
The City's other funds include the following:
Fiduciary Funds — 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,
23
Fund Structure Overview
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 appropriation process are also
presented according to classifications required by the State of Illinois. Revenues are credited to
individual fund types while expenditures/expenses are recorded according to functional areas
within specific funds for budgetary control purposes. The following functional areas are
included in the budget:
General Government — This function provides for the operation of the government and assures
the general administration of the municipality. Activities included in this function also include
human resources.
Community and Economic Development — This functions overall mission 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 and economic activities are also
included within this function.
Finance — This function applies modern financial management practices to ensure that the City
is able to deliver services effectively and efficiently on a sustained basis. Activities included in
this function are reporting financial transactions, billing and collecting money, accounts payable,
managing cash and investments, preparing the annual financial report, and developing the budget
and financial forecasts.
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.
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.
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.
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.
24
Fund Structure Overview
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.
25
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
except that the City also recognizes encumbrances for budgetary purposes. Encumbrances
include supplies ordered but not received, and services contracted but not yet expended by the
City. Encumbrances are charged against a budget or appropriation for account purposes.
Accordingly, expenditures/expenses in this document include encumbered
expenditures/expenses. Encumbrances do not lapse at year-end and provide authorization for
expenditures/expenses for the following year.
The City appropriates funds for capital projects on a fiscal year basis. The Capital Projects
section of this document includes descriptive information on each project with estimated costs
and financing sources.
26
SA N w
ItEAR'r OF VNE FOX RIVER
IP_,
BUDGET SUMMARY OF REVENUES AND
EXPENDITURES
Summary Chart of Revenues & Other Financing Sources - All Funds
Revenue Budget - All Funds
Summary Chart of Revenues & Other Financing Sources - General Fund
General Fund Historical Trends of Major Revenue Sources
Summary Chart of Expenditures By Function - All Funds
Summary Chart of Expenditures By Budget Unit - General Fund
Summary Chart of Expenditures By Category - General Fund
Expense Budget - All Funds
Authorized Personnel - All Funds
Personnel Expenses -All Funds
Schedule of Anticipated Fund Balance - All Funds
27
Summary of Revenue & Other Financing Sources All Funds
2014/15
2015/16
Dollar Change
% Change
Property Taxes
5,593,456
5,503,481
(89,975)
-1.61 %
Sales Taxes
8,306,503
8,457,419
150,916
1.82%
Intergovernmental Revenue
3,336,796
3,382,199
45,403
1.36%
Licenses & Fines
895,511
948,822
53,311
5.95%
Services Charges
6,859,648
6,947,510
87,862
1.28%
Interest Income
496,850
496,350
(500)
-0.10%
Bond Proceeds
-
-
-
0.00%
Transfers
7,700,175
9,644,205
1,944,030
25.25%
Other Financing Sources
1,732,671
1,794,836
62,165
3.59%
Total
34,921,610
37,174,822
2,253,212
6.45%
2015/16 Budget Revenues by Source
Other Financing
Sources
5%
Transfers
26%
Bond Proceeds,w
Services
Interest Income Charges
1% 19 /o o
Property Taxes
15%
ft
Licenses & Fines
2%
Sales Taxes
23%
Intergovernmental
Revenue
9%
28
Budget Summary
Revenue Budget 2015116 All Funds
Total Net
Revenue Transfers Revenue
General Fund $19,382,360 $629,510 $18,752,850
Special Revenue Funds
Band Fund
15,000
15,000
0
Civil Defense Fund
5,000
5,000
0
Alarm Board Fund
153,000
0
153,000
Audit Fund
37,981
11,554
26,427
Annexation Fund
58,200
0
58,200
Motor Fuel Tax Fund
642,610
0
642,610
Developer Donations
42,540
0
42,540
Developer Donations (Parks)
91,150
0
91,150
TIF Fund
326,000
0
326,000
Pageant Fund
3,550
0
3,550
Tourism Fund
140,050
0
140,050
Total Special Revenue Funds
1,515,081
31,554
1,483,527
Capital Project Funds
Recreation Center Construction Fund
2,000
0
2,000
Special Service Area #1A
0
0
0
Special Service Area #4
16,847
0
16,847
Capital Improvements Fund
1,261,200
1,062,500
198,700
Local Streets Improvements
0
0
0
Capital Equipment Fund
243,225
243,225
0
Total Capital Project Funds
1,523,272
1,305,725
217,547
Debt Service Funds
Debt Service Fund
1,556,705
1,521,166
35,539
Total Debt Service Funds
1,556,705
1,521,166
35,539
Proprietary Funds
Public Works - Water
2,295,485
0
2,295,485
Public Works - Wastewater
3,142,848
0
3,142,848
Public Works - Utility
1,045,985
1,045,985
0
Capital Development Fund
172,000
0
172,000
Marina Operations Fund
51,500
0
51,500
Utility Improvements Fund
16,847
16,847
0
Total Proprietary Funds
6,724,665
1,062,832
5,661,833
Internal Service Funds
Risk Management Fund
778,000
747,800
30,200
Information Technology Fund
461,101
461,101
0
Health Insurance Fund
2,854,215
2,497,143
357,072
Total Internal Service Funds
4,093,316
3,706,044
387,272
Fiduciary Funds
Medical Flexible Spending Fund
80,000
0
80,000
Revolving Loan Fund
1,550
0
1,550
Police Pension Fund
2,257,374
1,387,374
870,000
Development Escrow Fund
500
0
500
McHenry Economic Development Fund
0
0
0
Retained Personnel Fund
40,000
0
40,000
Total Fiduciary Funds
2,379,424
1,387,374
992,050
Total All Funds
$37,174,823
$9,644,205
$27,530,618
29
Revenue Budget All Funds
Pecent
2014/15
2015/16
Difference
Change
General Fund
$18,878,352
$19,382,360
$504,008
2.7%
Special Revenue Funds
Band Fund
15,000
15,000
0
0.0%
Civil Defense Fund
5,000
5,000
0
0.0%
Alarm Board Fund
153,000
153,000
0
0.0%
Audit Fund
37,759
37,981
222
0.6%
Annexation Fund
58,200
58,200
0
0.0%
Motor Fuel Tax Fund
816,606
642,610
(173,996)
-21.3%
Developer Donations
42,540
42,540
0
0.0%
Developer Donations (Parks)
91,150
91,150
0
0.0%
TIF Fund
401,000
326,000
(75,000)
-18.7%
Pageant Fund
3,550
3,550
0
0.0%
Tourism Fund
130,050
140,050
10,000
7.7%
Total Special Revenue Funds
1,753,855
1,515,081
(238,774)
-13.6%
Capital Project Funds
Recreation Center Construction Fund
2,000
2,000
0
0.0%
Special Service Area #1A
0
0
0
0.0%
Special Service Area #4
16,847
16,847
0
0.0%
Capital Improvements Fund
822,600
1,261,200
438,600
53.3%
Local Streets Improvements
0
0
0
0.0%
Capital Equipment Fund
277,825
243,225
(34,600)
-12.5%
Total Capital Project Funds
1,119,272
1,523,272
404,000
36.1%
Debt Service Funds
Debt Service Fund
1,520,212
1,556,705
36,493
2.4%
Total Debt Service Funds
1,520,212
1,556,705
36,493
2.4%
Proprietary Funds
Public Works - Water
2,295,485
2,295,485
0
0.0%
Public Works - Wastewater
3,142,848
3,142,848
0
0.0%
Public Works - Uility
0
1,045,985
1,045,985
0.0%
Capital Development Fund
122,000
172,000
50,000
41.0%
Marina Operations Fund
51,500
51,500
0
0.0%
Utility Improvements Fund
16,847
16,847
0
0.0%
Total Proprietary Funds
5,628,680
6,724,665
1,095,985
19.5%
Internal Service Funds
Risk Management Fund
778,000
778,000
0
0.0%
Information Technology Fund
427,597
461,101
33,504
7.8%
Health Insurance Fund
2,557,515
2,854,215
296,700
0.0%
Total Internal Service Funds
3,763,112
4,093,316
330,204
8.8%
Fiduciary Funds
Employee Flexible Spending Fund
80,000
80,000
0
0.0%
Revolving Loan Fund
2,050
1,550
(500)
-24.4%
Police Pension Fund
2,135,577
2,257,374
121,797
5.7%
Development Escrow Fund
500
500
0
0.0%
Retained Personnel Fund
40,000
40,000
0
0.0%
Total Fiduciary Funds
2,258,127
2,379,424
121,297
5.4%
Total All Funds
$34,921,610
$37,174,823
$2,253,213
6.5%
30
Summary of Revenues & Other Financing Sources General Fund
Actual Actual Budget Budget Dollar Percent
2012/13 2013/14 2014/15 2015/16 Change Change
Revenues
Property Taxes
5,131,967
5,124,611
5,150,183
5,135,208
(14,975)
-0.29%
Intergovernmental
11,087,621
11,678,714
10,827,903
11,161,819
333,916
3.08%
Other Local Sources
2,264,606
2,308,843
2,249,783
2,382,685
132,902
5.91%
Miscellaneous
575,257
664,987
650,483
702,648
52,165
8.02%
Total Revenues
19,059,451
19,777,155
18,878,352
19,382,360
504,008
2.67%
2015/16 Budget
Miscellaneous General Fund
4% Revenues by Source
Other Local
Sources
12%
Intergovernmental
57%
Property Taxes
1k 26%
31
Revenue by Source
General Fund
15/16-14/15
2010/11
2011/12
2012/13
2013/14
2014/15
2015/16
Budget
Actual
Actual
Actual
Actual
Budget
Budget
Change
Total Property Taxes
5,017,805
5,154,234
5,131,967
5,124,611
5,150,183
5,135,208
(14,975)
Intergovernmental
Sales Tax
6,369,715
6,498,608
6,276,057
6,684,864
6,442,779
6,565,739
122,960
Local Sales Tax
524,080
1,945,024
1,889,994
1,984,108
1,863,724
1,891,680
27,956
State Income Tax
2,130,030
2,286,926
2,553,914
2,577,574
2,209,000
2,450,000
241,000
State Replacement Tax
38,999
65,089
63,090
74,513
60,000
65,000
5,000
State Pull Tabs
1,821
1,724
1,313
1,729
2,400
2,400
-
Inter Track Wagering
88,251
90,434
82,759
65,150
75,000
62,000
(13,000)
State Telecommunications
177,134
195,439
172,143
163,424
175,000
125,000
(50,000)
State Grants
52,442
90,972
48,351
127,352
Total
9,382,472
11,174,216
11,087,621
11,678,714
10,827,903
11,161,819
333,916
Other Local Sources
Franchise Fees
167,121
219,719
297,253
295,166
298,000
298,000
-
Licenses and Permits
299,043
331,235
344,664
439,510
408,511
472,822
64,311
Fines and Forfeitures
638,045
463,916
407,230
405,023
379,000
368,000
(11,000)
Charges and Services
1,109,722
1,244,251
1,207,260
1,166,945
1,162,272
1,241,863
79,591
Interest Income
7,118
3,493
8,199
2,199
2,000
2,000
-
Total
2,221,049
2,262,614
2,264,606
2,308,843
2,249,783
2,382,685
132,902
Miscellaneous
Donations
17,950
19,555
14,823
17,772
14,853
14,853
-
Reimbursements
315,188
569,760
429,995
532,910
562,630
614,795
52,165
Other Miscellaneous
309,918
168,153
130,439
114,305
73,000
73,000
-
Total
643,056
757,468
575,257
664,987
650,483
702,648
52,165
Total General Fund Revenues
17,264,382
19,348,532
19,059,451
19,777,155
18,878,352
19,382,360
504,008
32
Historical Trend Maior Revenue Sources
General Fund
Property Tax Revenue
5,160,000
5,155,000
5,150,000
5,145,000
5,140,000
5,135,000
m
6
G
5,130,000
5,125,000
_
5,120,000
5,115,000
5,110,000
5,105,000
2011/12 Actual
2012/13 Actual
2013/14 Actual
2014/15 Actual
2015/16 Budget
7.Seriesl
1 5,154,234
5,131,967
5,124,611
5,134,224
5,135,208
State Sales Tax Revenue
$7,000,000
$6,800,000
$6,600,000
$6,400,000
c $6,200,000
I�I�t
$6,000,000
$5,800,000
-
$5,600,000
$5,400,000
2009/10 Actual
2010/11 Actual
2 111/12 Actual
2012/13 Actual
2013/14 Actual
2014/15 Budget
2015/16 Budget
■Sene:s
5,962,527
6,369,715
1 6,473,004
1 6,276,057
6,684,864
6,652,738
6,565,739
33
Historical Trend Major Revenue Sources
General Fund
Income Tax Revenue
3,000,000
2,500,000
2,000,000
c 1,500,000
c
1,000,000
I
i
500,000
0 2009/10 Actual 2010/11 Actual 2011/12 Actual 2012/13 Actual 2013/14 Actual 2014/15 Estimate 2015/16 Budget
Seriesl 2,088,956 2,130,030 1 2,286,926 1 2,553,914 2,577,574 2,387,758 2,45Q000
34
Expense Budget 2015116 All Funds
Dollar
Percent
2013/14
2014/15
2015/16
Change
Change
General Government
2,773,865
2,613,758
2,671,601
57,843
2.21%
Public Safety
9,923,127
10,394,100
10,878,779
484,679
4.66%
Public Works
9,440,595
10,125,009
10,524,971
399,962
3.95%
Culture and Recreation
2,005,412
2,341,139
2,390,632
49,493
2.11%
Capital Projects
2,991,521
3,313,883
6,515,725
3,201,842
96.62%
Comm. & Econ. Dev.
711,826
733,772
741,793
8,021
1.09%
Debt Service
1,585,979
1,558,350
1,556,555
(1,795)
-0.12%
Other
3,124,328
3,287,847
3,598,808
310,961
9.46%
Total
32,556,653
34,367,858
38,878,864
4,511,006
13.13%
Other 2015/16 Budget General
9% Expenditures by Function* Government
7%
Debt Service
Comm. & Econ. 4—%
Dev.
2% Public Safety
28%
Capital Projects
17%
Culture and
Recreation
6% Public Wor
27%
*Note: Total does not include interfund transfers
35
Expenditures by Budget Unit General Fund
Actual
Actual
Budget
Budget
Dollar
Percent
2012/13
2013/14
2014/15
2015/16
Change
Change
Administration
1,981,790
1,591,027
1,409,154
1,408,587
(567)
-0.04%
Elected Officials
148,786
142,658
163,821
171,868
8,047
4.91%
Comm & Econ Dev.
576,176
582,468
611,644
631,102
19,458
3.18%
Finance
2,195,474
2,100,660
2,308,470
2,849,272
540,802
23.43%
Police
8,375,471
8,773,762
9,024,529
9,457,631
433,102
4.80%
Police Commission
3,940
7,333
6,453
6,453
-
0.00%
Public Works - Admin
243,638
253,169
261,205
271,713
10,508
4.02%
Public Works - Streets
2,707,143
2,962,286
2,912,148
2,862,655
(49,493)
-1.70%
Parks & Recreation
1,936,736
1,771,480
2,160,570
2,320,643
160,073
7.41%
18,169,154 18,184,843 18,857,994 19,979,924 1,121,930 5.95%
2015/16 Budget
General Fund
Expenditures by Budget Unit
Parks & Recreation
Public Works - 12%
Streets
14%
Public Works -
Admin
2%
Police Commission
0%
Administration
Elected Officials
1%
7%
_Comm & Econ Dev.
3%
cs
Finance
14%
Police
I F 47%
36
Expenditures by Category General Fund
Actual
Actual
Budget
Budget
Dollar
Percent
2012/13
2013/14
2014/15
2015/16
Change
Change
Personnel
12,359,946
12,826,464
13,323,487
13,891,360
567,873
4.26%
Contractual
1,542,668
1,657,086
1,821,341
1,814,800
(6,541)
-0.36%
Supplies
817,561
821,011
813,360
815,745
2,385
0.29%
Other
2,761,305
1,983,368
2,169,405
2,723,819
554,414
25.56%
Debt Service
684,531
719,451
692,826
729,960
37,134
5.36%
Capital
3,415
177,462
37,575
4,240
(33,335)-88.72%
Total
18,169,426
18,184,842
18,857,994
19,979,924
1,121,930
5.95%
2015/16 Budget
General Fund
Debt Service Expenditures by Category
4%
Capital
Other 0%
14%
Supplies ._
4% %-
Contractual
9%
Personnel
69%
37
Expense Budget 2015/16 All Funds
Total
Net
Budget
Transfers
Budget
General Fund
Administration
$1,408,587
$101,474
$1,307,113
Elected Offices
171,868
16,412
155,456
Community & Economic Development
631,102
63,849
567,253
Finance Department
2,849,272
2,129,375
719,897
Police Commission
6,453
0
6,453
Police Department
9,457,631
496,579
8,961,052
Public Works -Administration
271,713
23,098
248,615
Public Works - Streets
2,862,655
112,586
2,750,069
Parks and Recreation
2,320,643
124,761
2,195,882
Total General Fund
19,979,924
3,068,134
16,911,790
Special Revenue Funds
Band Fund
15,000
0
15,000
Civil Defense Fund
3,200
0
3,200
Alarm Board Fund
60,000
0
60,000
Audit Fund
36,380
0
36,380
Annexation Fund
45,000
35,000
10,000
Motor Fuel Tax Fund
1,706,912
400,262
1,306,650
Developer Donations
42,540
0
42,540
Developer Donations (Parks)
156,200
0
156,200
TIF Fund
324,095
242,095
82,000
Pageant Fund
3,550
0
3,550
Tourism Fund
95,000
75,000
20,000
Total Special Revenue Funds
2,487,877
752,357
1,735,520
Capital Project Funds
Recreation Center Construction Fund
4,880,000
80,000
4,800,000
Special Service Area #1A
0
0
0
Special Service Area #4
16,847
16,847
0
Capital Improvements Fund
1,452,500
0
1,452,500
Local Streets Improvements
0
0
0
Capital Equipment
263,225
0
263,225
Total Capital Project Funds
6,612,572
96,847
6,515,725
Debt Service Funds
Debt Service Fund
1,556,555
0
1,556,555
Total Debt Service Funds
1,556,555
0
1,556,555
Proprietary Funds
Public Works - Water
2,691,104
1,078,768
1,612,336
Public Works - Wastewater
4,246,485
731,169
3,515,316
Public Works - Utility
1,045,985
0
1,045,985
Capital Development Fund
0
0
0
Marina Operations Fund
46,000
0
46,000
Utility Improvements Fund
0
0
0
Total Proprietary Funds
8,029,574
1,809,937
6,219,637
Internal Service Funds
Risk Management Fund
689,206
20,085
669,121
Information Technology Fund
461,100
8,345
452,755
Health Insurance Fund
2,849,687
0
2,849,687
Total Internal Service Funds
3,999,993
8,345
3,971,563
Fiduciary Funds
Employee Flexible Spending Fund
80,000
0
80,000
Revolving Loan Fund
0
0
0
Police Pension Fund
1,851,574
3,500
1,848,074
Development Escrow Fund
0
0
0
Retained Personnel Fund
40,000
0
40,000
Fiduciary Funds
1,971,574
3,500
1,968,074
Total All Funds
$44,638,069
$5,739,120
$38,878,864
38
Expense Budget 2015/16 All Funds
Total
Total
Expenditures
Expenditures
Percentage
2014/15
2015/16
Difference
Change
General Fund
Administration
$1,409,154
$1,408,587
($567)
-0.04%
Elected Offices
163,821
171,868
8,047
4.91%
Community & Economic Development
611,644
631,102
19,458
3.18%
Finance Department
2,308,470
2,849,272
540,802
23.43%
Police Commission
6,453
6,453
0
0.00%
Police Department
9,024,529
9,457,631
433,102
4.80%
PublicWorks- Administration
261,205
271,713
10,508
4.02%
Public Works - Streets
2,912,148
2,862,655
(49,493)
-1.70%
Parks and Recreation
2,160,570
2,320,643
160,073
7.41%
Total General Fund
18,857,994
19,979,924
1,121,930
5.95%
Special Revenue Funds
Band Fund
15,000
15,000
0
0.00%
Civil Defense Fund
3,200
3,200
0
0.00%
Alarm Board Fund
45,000
60,000
15,000
33.33%
Audit Fund
35,710
36,380
670
1.88%
Annexation Fund
45,000
45,000
0
0.00%
Motor Fuel Tax Fund
1,688,960
1,706,912
17,952
1.06%
Developer Donations
42,540
42,540
0
0.00%
Developer Donations (Parks)
264,200
156,200
(108,000)
-40.88%
TIF Fund
335,450
324,095
(11,355)
-3.39%
Pageant Fund
3,550
3,550
0
0.00%
Tourism Fund
95,000
95,000
0
0.00%
Total Special Revenue Funds
2,573,610
2,487,877
(85,733)
-3.33%
Capital Project Funds
Recreation Center Construction Fund
550,000
4,880,000
4,330,000
0.00%
Special Service Area #1A
0
0
0
0.00%
Special Service Area #4A
16,847
16,847
0
0.00%
Capital Improvements Fund
891,600
1,452,500
560,900
0.00%
Local Street Improvements Fund
40,500
0
(40,500)
Capital Equipment Fund
277,825
263,225
(14,600)
0.00%
Total Capital Project Funds
1,776,772
6,612,572
4,835,800
272.17%
Debt Service Funds
Debt Service Fund
1,558,350
1,556,555
(1,795)
-0.12%
Total Debt Service Funds
1,558,350
1,556,555
(1,795)
-0.12%
Proprietary Funds
Public Works - Water
2,648,570
2,691,104
42,534
1.61 %
Public Works - Wastewater
3,856,534
4,246,485
389,951
10.11 %
Public Works - Utility
0
1,045,985
Capital Development Fund
0
0
0
0.00%
Marina Operations Fund
46,000
46,000
0
0.00%
Utility Improvements Fund
1,594,458
0
(1,594 458)
0.00%
Total Proprietary Funds
8,145,562
8,029,574
(1,161,973)
-14.27%
Internal Service Funds
Risk Management Fund
677,335
689,206
11,871
1.75%
Information Technology Fund
427,597
461,100
33,503
7.84%
Health Insurance Fund
2,550,597
2,849,687
299,090
11.73%
Total Internal Service Funds
3,655,529
3,999,993
344,464
9.42%
Fiduciary Funds
Employee Medical Flexible Spending Fund
80,000
80,000
0
0.00%
Revolving Loan Fund
0
0
0
0.00%
Police Pension Fund
1,800,925
1,851,574
50,649
2.81%
Development Escrow Fund
76,000
0
(76,000)
0.00%
Retained Personnel Fund
40,000
40,000
0
0.00%
Fiduciary Funds
1,996,925
1,971,574
(25,351)
-1.27%
Total All Funds
$38.564.742
44.638.069
$5.027. 442
13.04%
39
Authorized Personnel
General Fund
Administration
Elected Offices
Community Development
Finance Department
Police Department
Public Works - Administration
Public Works - Streets
Parks and Recreation
Total General Fund
Info Technology Fund
Water/Sewer Fund
Water Division
Wastewater Division
Utility Division
Total Water/Sewer Fund
Total City of McHenry
Population
Employees per 1,000 Population
All Funds
2015/16
Change from
Budget
Prior Year
2014/15
2013/14
2012/13
2011/12
2010/11
2009/10
2008/09
2007/08
6.00
0.00
6.00
8.00
8.00
8.00
8.00
8.00
9.00
13.00
1.00
0.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
5.50
0.00
5.50
5.50
6.50
6.50
6.50
6.50
8.50
7.50
4.60
0.00
4.60
4.60
4.60
4.35
5.85
6.45
6.95
6.95
61.88
1.00
60.88
60.88
60.88
60.60
60.00
63.00
66.00
68.00
2.00
0.00
2.00
2.00
2.00
2.00
2.00
1.00
3.00
2.00
18.00
(1.00)
19.00
18.00
18.00
18.00
18.00
19.00
19.00
21.00
13.00
1.00
12.00
10.00
11.00
11.00
11.00
12.60
13.10
13.10
111.98
1.00
110.98
109.98
111.98
111.45
112.35
117.55
126.55
132.55
2.00
0.00
2.00
2.00
2.00
2.00
2.00
2.00
2.00
1.00
4.50
(5.00)
9.50
9.50
9.50
10.50
10.50
10.50
10.50
10.50
7.00
(3.00)
10.00
9.00
10.00
10.00
10.00
10.00
10.00
10.00
8.00
8.00
19.50
0.00
19.50
18.50
19.50
20.50
20.50
20.50
20.50
20.50
133.48
1.00
132.48
130.48
133.48
133.95
134.85
140.05
149.05
154.05
26,992 26,992 26,992 26,992 26,992 27,525 25,491 25,491 25,236
4.95 4.91 4.83 4.95 4.96 4.90 5.49 5.85 6.10
40
Personnel Expenses All Funds
Budget
Budget
Percent
2014/15
2015/16
Change
Change
General Fund
Administration
$756,789
$761,213
$4,424
0.6%
Elected Officials
110,416
116,881
6,465
5.9%
Comm. & Econ Dev.
502,075
526,096
24,021
4.8%
Finance
363,836
386,417
22,581
6.2%
Police Commission
1,453
1,453
0
0.0%
Police Department
8,066,591
8,472,387
405,796
5.0%
Public Works - Administration
224,776
234,735
9,959
4.4%
Public Works - Street
1,977,995
1,928,129
(49,866)
-2.5%
Parks & Recreation
1,319,556
1,464,049
144,493
11.0%
Total General Fund
13,323,487
13,891,360
567,873
4.3%
Water/Sewer Fund
Water
1,032,839
534,258
(498,581)
-48.3%
Wastewater
1,023,550
799,981
(223,569)
-21.8%
utility
0
839,935
839,935
0.0%
Total Water/Sewer Fund
2,056,389
2,174,174
117,785
5.7%
IT Fund
205,678
212,549
6,871
3.3%
Total Personnel Expenses
$15,585,554 $16,278,083 $692,529
4.4%
Ell
Schedule of Anticipated Fund Balance All Funds
Ending
Beginning Excess Balance
Fund Balance 5/1/15 Revenues Appropriations (Deficit) 4/30116
General Fund 8,672,916 19,382,360 19,979,924 (597,564) 8,075,352
Special Revenue Funds
Band Fund
11,757
15,000
15,000
-
11,757
Civil Defense Fund
(8,636)
5,000
3,200
1,800
(6,836)
Alarm Board Fund
161,953
153,000
60,000
93,000
254,953
Audit Fund
16,708
37,981
36,380
1,601
18,309
Annexation Fund
233,135
58,200
45,000
13,200
246,335
Motor Fuel Tax Fund
1,116,254
642,610
1,706,912
(1,064,302)
51,952
Developer Donations
723,841
133,690
198,740
(65,050)
658,791
TIF Fund
(492,196)
326,000
324,095
1,905
(490,291)
Pageant Fund
(4,636)
3,550
3,550
-
(4,636)
Tourism Fund
246,707
140,050
95,000
45,050
291,757
Capital Project Funds
Recreation Center Construction Fund
5,483,092
2,000
4,880,000
(4,878,000)
605,092
Special Service Area #1A
-
-
-
-
-
Special Service Area #4
23
16,847
16,847
-
23
Special Service Area #6
(179,115)
-
-
-
(179,115)
Capital Improvements Fund
723,515
1,261,200
1,452,500
(191,300)
532,215
Local Street Improvements Fund
-
-
-
-
-
Capital Equipment Fund
501,157
243,225
263,225
(20,000)
481,157
Debt Service Funds
Debt Service Fund
393,928
1,556,705
1,556,555
150
394,078
Proprietary Funds
Public Works - Water/Wastewater/Utility
33,975,273
6,484,318
7,983,574
(1,499,256)
32,476,017
Capital Development Fund
1,125,069
172,000
-
172,000
1,297,069
Marina Operations Fund
403,766
51,500
46,000
5,500
409,266
Utility Improvements Fund
11,184,201
16,847
-
16,847
11,201,048
Internal Service Funds
Risk Management Fund
573,450
778,000
689,206
88,794
662,244
Information Technology Fund
187,570
461,101
461,100
1
187,571
Employee Insurance Fund
23,056
2,854,215
2,849,687
4,528
27,584
Fiduciary Funds
Employee Medical Flexible Spending Fund
-
80,000
80,000
-
-
Revolving Loan Fund
113,588
1,550
-
1,550
115,138
Police Pension Fund
20,479,175
2,257,374
1,851,574
405,800
20,884,975
Development Escrow Fund
-
500
-
500
500
Retained Personnel Fund
-
40,000
40,000
-
-
Eliminations & Adjustments
-
-
-
-
-
85,665,551
37,174,823
44,638,069
(7,463,246)
78,202,305
42
MA rd a
HEART OF THE FOX MR1111
GENERAL FUND OPERATING BUDGETS
Administration
Elected Officials
Community & Economic Development
Finance
Police Commission
Police
Public Works Administration
Public Works - Streets Division
Parks & Recreation
43
Administration Office
Mission Statement
It is the mission of the Administration Office to provide general administrative services for the City and
coordinate, supervise, and direct the affairs of all departments. In addition, the Administrative Office
serves as the primary point of communication with the City Council, established Council committees, and
the general public.
Primary Functions -4 There are three primary operating functions within the Administration Office.
■ City Administrator's Office: Has primary responsibility for the day to day operation of the City
and all departments. The Administrator's Office prepares all agendas and provides information to
the City Council and various committees for review prior to decision making. The
Administrator's Office is also directly responsible for the City's human resources function, which
includes risk management.
■ Facilities and Business District Maintenance: Responsible for the information technology and
maintenance of City buildings, the downtown business districts, and the Riverwalk.
■ Development Services: Oversight of Public Works and Community Development departments
in reviewing and managing development and redevelopment projects.
2014/15 Accomplishments
■ Directed a focus on economic development activities with the creation of Director of Economic
Development staff position and the development and implementation of specific economic
development strategies.
■ Developed and submitted a balanced operating budget for FY15/16. This included a
recommendation to amend expiring bargaining unit contracts with FOP/Unit 1 (Patrol) and Local
150 (Public Works/Parks) in an effort to evaluate the impact of potential State budget reductions.
■ Assumed direct day-to-day oversight responsibility for the Department of Community and
Economic Development.
■ In coordination with Human Resources Manager, developed and implemented merit -based
performance evaluation system for non -bargaining unit employees.
■ Directed the development of a Popular Annual Financial Report (PAFR) to be mailed with the
summer edition of the City newsletter.
■ Provided oversight and direction on a number of important municipal and/or related projects.
These included: movement through the design to construction phase for the McHenry Recreation
Center; additional design for the consolidation of the Central Wastewater Treatment Plant and
South Wastewater Treatment Plant; and, transition of the McHenry Shores Water Company to a
private firm — Aqua Illinois — and switching of sanitary sewer charges for residents from a "flat"
monthly fee to one that is based on usage.
■ Management of "Facebook" and "Twitter" pages for the timely transmittal of information to the
public.
■ Directed the recruitment process for the hiring of a replacement Human Resource Manager.
44
Administration Office
• Expanded 5-year Capital Improvement Program (CIP) by integrating strategic objectives
identified through the strategic planning process.
2015/16 Goals and Objectives
■ Coordinate with Department Directors to identify areas of cost savings in preparation for any
funding reductions imposed by the State of Illinois.
■ Coordinate with the Finance Director to achieve an annual budget document worthy of the
GFOA "Distinguished Budget Award".
■ Coordinate with staff and contracted firms to construct recreation facility and cause for the
consolidation of the Central and South Wastewater Treatment Plants.
■ Recommend water and sewer rates that insure appropriate operation and maintenance costs for
the water and sewer systems and provides a source of funding for long-term system
improvements.
■ Coordinate business inspection services with the McHenry Township Fire Protection District to
increase efficiency and lessen the number of times a business has to accommodate inspection
visits.
■ Work with the Police Department to evaluate the potential for expanded dispatch services.
ADMINISTRATION OFFICE
BUDGET SUMMARY
8 MONTH
2013/14 2014/15 2014/15 2015/16 INCREASE
ACTUAL BUDGET ACTUAL BUDGET (DECREASE
EXPENDITURES
PERSONNEL
$941,433
$756,789
$466,771
$761,213
$4,424
CONTRACTUAL
422,501
510,400
249,832
463,400
(47,000
SUPPLIES
82,855
27,700
40,762
67,700
40,000
OTHER
144,767
114,265
70,318
116,274
2,009
CAPITAL EXPENDITURES
0
0
0
0
0
TOTAL
$1,591,556
$1,409,154
$827,683
$1,408,587
($567
PERSONNEL AUTHORIZATION
TOTAL
FUNDING SOURCE
GENERAL REVENUES
TRANSFER FROM OTHER FUNDS
TOTAL
INCREASE
2012/13 2013/14 2014/15 2015/16 (DECRE)
8.00 8.00 6.00 6.00 0.00
2014/15 2014/15 2015/16 2015/16
AMOUNT PERCENTAGE AMOUNT PERCENTAGE
$1,406,654 99.8
2,500 0.2
$1,409,154 100.0
$1,406,087 99.8
2,500 0.2
$1,408,587 100.0
45
Administration Office
Budget Highlights
■ Personnel costs increase due to providing non -bargaining unit employees merit -based increases as
well as increases to retirement and insurance costs.
■ Contractual services decrease $50,000 due to a decrease in legal fees.
■ Supplies expenses increase $40,000 due to moving expenses from the Finance Department.
■ Transfer for Information Technology increases $2,000 to cover additional IT expenses including
personnel costs and software maintenance.
Personnel Review
City Administrator
Deputy City Administrator
Deputy City Administrator
Superintendent of Parks & Downtown Facilities
Human Resources Manager
Executive Assistant
Street Maintenance Worker
Bldq & Gmds Custodian
Sickpay Buyback/Health Insurance Incentive
Administrator Car Allowance
Salary Adjustment
Severance
Longevity Bonus
Board & Commission
IMRF Retirement
FICA/Medicare
Life Insurance
Uniform Allowance
Subtotal
Administration Office
Personnel Schedule
2014/15 Budget
Dollars
Number of
Grade
Budgeted
Employees
E-29
$151,439
1.00
E-25
97,382
1.00
E-25
85,139
1.00
E-19
0
0.00
E-19
85,123
1.00
N-9
59,946
1.00
I-C
0
0.00
I -A
44,771
1.00
500
0
3,023
4,200
905
0
1,220
536,888 6.00
72,042
41,072
96,566
3,857
414
450
214,401
$751, 289
Note: E = Exempt; N = Non -Contract, Non -Exempt
2015/16 Budget
Dollars Number of
Budgeted Employees
$151,439
1.00
97,382
1.00
85,139
1.00
0
0.00
85,123
1.00
59,946
1.00
0
0.00
45,667
1.00
500
0
5,527
4,200
12,825
0
0
3,240
550,988
6.00
73,946
42,151
83,561
4,203
414
450
204,725
$755,713
Change
Dollars Number
udgeted EmpIOVE
0
0
0
0
0
0
896
0
0
2,504
0
11,920
0
(1,220)
0
14,100
1,904
1,079
(13,005)
346
0
0
(9,676)
$4,424
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00 I
ED,
Elected Officials
Mission Statement
It is the mission of the Mayor, City Council, and City Clerk to serve the citizens of the City of McHenry.
Primary Functions --+ The following are the primary functions for each of the elected offices.
Mayor's Office: The primary function of the Mayor is to provide leadership, initiative, and
direction necessary to provide quality services to the citizens of McHenry. Recommend
appointment of members to the various Boards and Commissions within the City.
City Council: The City Council is the legislative body for the City of McHenry. Adoption of
laws, ordinances and resolutions, as deemed proper to promote and protect the high level of
service quality and financial stability in the City.
■ City Clerk: The City Clerk has responsibility for taking minutes for all regular City Council
meetings, standing council committee meetings, and planning and zoning board meetings. The
City Clerk is also responsible for records management.
2015/16 Goals and Objectives
■ Continue to support the implementation of economic development initiatives for the
redevelopment of vacant and/or underutilized properties throughout the community.
■ Promote, encourage, initiate, and realize redevelopment in the downtown areas in the City of
McHenry.
■ Make customer service a priority in all interactions between organization and residents of the City
of McHenry and between employees within the organization.
■ Plan for and provide public facilities and infrastructure to meet the needs of the community and
organization.
■ Maintain the community as a safe place to live, work, and play.
47
Elected Officials
Budget Summary
ELECTED OFFICALS
BUDGET SUMMARY
8 month
2013/14
2014/15
2014/15
2015/16
INCREASE
ACTUAL
BUDGET
ACTUAL
BUDGET
(DECREASE)
EXPENDITURES
PERSONNEL
$95,506
$110,416
$58,347
$116,881
$6,465
CONTRACTUAL
15,161
18,275
8,076
18,275
0
SUPPLIES
174
1,000
57
1,000
0
OTHER
31,817
34,130
12,213
35,712
1,582
CAPITAL EXPENDITURES
0
0
0
0
0
TOTAL
$142,658
$163,821
$78,693
$171,868
$8,047
INCREASE
PERSONNEL AUTHORIZATION
2012/13 2013/14
2014/15
2015/16
(DECREASE)
TOTAL
1.00 1.00
1.00
1.00
0.00
2014/15
2014/15
2015/16
2015/16
AMOUNT
PERCENTAGE
AMOUNT
PERCENTAGE
FUNDING SOURCE
GENERAL REVENUES
$163,821
100.0
$171,868
100.0
TOTAL
$163,821
100.0
$171,868
100,0
Budget Highlights
Personnel expenses increase $6,465 due to merit -based increases for non -bargaining unit
employees, increases to retirement and insurance costs, as well as increases to Aldermen's pay.
■ Purchase of services, information technology costs increase by $1,582 to cover actual expenses
within that fund including increases in personnel costs as well as software maintenance costs.
48
Elected Officials
Personnel Review
Mayor
City Clerk
Office Assistant
Overtime
Sickday Buyback Incentive
Longevity Bonus
Salary Adjustment
Total
Benefits
IMRF Retirement
Insurance
xm Allowance
Elected Officials
Personnel Schedule
2014/15 Budget
Dollars Number of
Grade
Budgeted Employees
Elected
$17,300
Elected
25,200
Elected
9,750
N-2
36,943 1.00
500
0
0
0
89,693 1.00
5,055
6,862
8,332
405
69
0
20,723
$110,416
2015/16 Budget
Dollars Number of
Budgeted Employees
$17,300
29,400
9,750
36,943 1.0C
500
0
0
924
94,817 1.00
5,180
7,254
9,144
417
69
0
22,064
$116,881
Change
Dollars Number of
Budgeted Employees
$0 0.00
4,200 0.00
0 0.00
0 0.00
0
0
0
924
5,124 0.00
125
392
812
12
0
0
1.341
$6,465
49
Community & Economic Development
Mission Statement
The Community and Economic Development Department's mission is to foster orderly growth and
development of the City, provide quality customer service and timely responses to inquiries and requests
for service. The department is also responsible for improving the quality of life for the residents of the
community and assist in attracting, retaining and serving businesses, as well as protecting the health,
safety and welfare of the community through proper administration and enforcement of City ordinances,
property maintenance codes, zoning regulations and building codes.
Primary Functions —> The following are the department's primary areas of responsibility:
■ Planning and Economic Development: The Community and Economic Development
Department is the first point of contact with potential businesses, developers, citizens and elected
officials regarding service inquiries, development projects and potential new business
opportunities. The department is responsible for effectuating orderly physical and economic
growth of the City, attracting, retaining and serving businesses and residents in the community.
■ Neighborhood Services: The department is responsible for the enforcement of the International
Property Maintenance Code and other City ordinances, responding in a timely manner to citizen
inquires and requests for service in order to maintain the high quality of life citizens enjoy on a
daily basis.
■ Construction Services: The department reviews all minor, temporary use, residential and
commercial permits and provides building, mechanical, electrical inspections for existing and
new construction.
2014/15 Accomplishments
■ Continued multi -faceted effort to retain existing businesses and attract new businesses to the
City.
■ Continued to improve customer service by establishing performance goals for processing
permits.
■ Implemented BS&A building permit software/code enforcement system to improve
department permit processing efficiency and institute more proactive code enforcement
approach throughout City.
■ Implemented building inspection and code enforcement services program for the Village of
Prairie Grove.
■ Reviewed municipal code to identify and address inconsistencies, ways to be more business -
friendly and proposed updated regulations to reflect current trends including amendments to
the fence and sign ordinances.
■ Reviewed zoning ordinance specifically regarding screening of mechanical equipment and
temporary uses.
■ Revisited flea market ordinance to address some gray areas encountered by staff in its
practical application and enforcement.
■ Reviewed potential regulations and policy implications with regards to locating medical
marijuana dispensaries and production/manufacturing facilities in the City.
■ Worked with McHenry County Highway Division and the cities of Woodstock and Crystal
Lake on promoting Pace Paratransit Program. Entered in to multi jurisdictional agreement
regarding the same.
50
Community & Economic Development
■ Considered and analyzed the potential of licensing contractors.
■ Began the development of an Intergovernmental Agreement and procedures to work more
closely with McHenry Township Fire Protection District (MTFPD) for the conducting of
annual business inspections.
■ Coordinated efforts with the McHenry Police Department and MTFPD on addressing
abandoned, distressed and vacant properties.
■ Provided additional assistance to downtown/small businesses and compile list of resources
for the same. Worked cooperatively with key property owners and McHenry Area Chamber
of Commerce, downtown business owners and other relevant organizations and parties in
seeking additional ways to revitalize downtown, working more closely with businesses with
the goal being to attract additional investment in the downtown area, retain existing
businesses, promote investment in older properties and assist smaller businesses struggling to
keep doors open.
■ Analyzed report completed by Chicago Metropolitan Agency for Planning in 2013 and
recommend amendments to the comprehensive plan, zoning ordinance, municipal code and
subdivision control and development ordinance to address and improve upon groundwater
protection, decreasing stormwater runoff and increasing more on -site stormwater infiltration.
• Continued to work with taxing bodies in formulating boiler plate agreement and policy to
establish and implement incentive review procedures in an effort to encourage expedited
occupancy of large vacant buildings and underutilized properties.
■ Provided building inspections for the City of Washington,ll,.
2015/16 Goals and Objectives
■ Continue to provide highest quality of building inspection and code enforcement
services to the residents of McHenry through a proactive, educational, and
compliance based approach.
■ Continue implementation of BS&A building permit/code enforcement software,
including development of customized reports, to enhance permitting/inspection
services.
■ Development and implement an intergovernmental agreement with the McHenry
Township Fire Protection District to coordinate business inspections and assist in
achieving building life/safety compliance.
■ Continue aggressive implementation of economic development efforts through
support of Director of Economic Development.
■ Coordinate economic development strategic planning session with the McHenry Area
Chamber of Commerce.
■ Recommend stakeholders for the establishment of an ad -hoc Economic Development
Advisory Committee.
51
Community & Economic Development
Budget Summary
CONSTRUCTION & NEIGHBORHOOD SERVICES
BUDGET SUMMARY
8 MONTH
2013/14
2014/15
2014115
2015/16
INCREASE
ACTUAL
BUDGET
ACTUAL
BUDGET
(DECREASE)
EXPENDITURES
PERSONNEL
$480,278
$502,075
$315,780
$526,096
$24,021
CONTRACTUAL
31,487
32,212
35,955
32,212
0
SUPPLIES
7,041
13,000
10,743
7,000
(6,000)
OTHER
63,664
64,357
41,608
65,794
1,437
CAPITAL EXPENDITURES
0
0
0
0
0
TOTAL
$582,470
$611,644
$404,086
$631,102
$19,458
INCREASE
PERSONNEL AUTHORIZATION
2011/12
2013/14
2014115
2015/16
(DECREASE)
TOTAL
6.50
6.00
5.50
5.50
0.00
2014/15
2014/15
2015/16
2015/16
AMOUNT
'ERCENTAGE
AMOUNT
PERCENTAGE
FUNDING SOURCE
BUILDING PERMIT FEES
82,688
13.5
82,688
13.1
PLUMBING INSPECTION
5,513
0.9
5,513
0.9
ZONING/PLAT FEES
6,000
1.0
6,000
1.0
PROPERTY FINES
4,700
0.8
4,700
0.7
GENERAL REVENUES
512,743
83.8
532,201
84.3
TOTAL
$611,644
100.0
$631,102
100.0
Budget Highlights
• Personnel expenses increase $24,021 due to merit -based increases for non -bargaining unit
employees as well as increases to retirement and insurance costs.
• Supplies costs are decreased due to onetime costs for mobile computers and printers in FYI 4-15.
■ Purchase of services, information technology costs increase by $1,437 to cover actual expenses
within that fund including increases in personnel costs as well as software maintenance costs.
52
Community & Economic Development
Personnel Review
Construction & Neighborhood Services
Personnel
Schedule
2014/15
Budget
2015116
Budget
Change
Dollars
Number of
Dollars
Number of
Dollars
Number of
Salaries
Grade
Budgeted
Employees
Budgeted
Employees
Budgeted
Employees
Supt. Commercial Inspections
E-21
$83,243
1.00
$83,243
1.00
$0
0.00
Supt. Residential Inspections
E-16
78,258
1.00
78,258
1.00
0
0.00
Plumbing Inspector
N-12
33,448
0.50
33,448
0.50
0
0.00
Inspector II
N-11
0
0.00
0
0.00
0
0.00
Plans Examiner
N-9
50,844
1.00
50,844
1.00
0
0.00
Planner I
E-6
0
0.00
0
0.00
0
0.00
Code Compliance Inspector
N-8
46,746
1.00
46,746
1.00
0
0.00
Admin Assistant
N-4
44,195
1.00
44,195
1.00
0
0.00
Overtime
1,500
1,500
0
Longevity Bonus
1,375
0
(1,375)
Sickday Payback Incentive
211
211
0
Salary Adjustment
0
8,461
8,461
Subtotal
339,820
5.50
346,906
5.50
7,086
0.00
Benefits
IMRF Retirement
45,876
46,832
956
FICA/Medicare
25,996
26,538
542
HealthNision
86,289
101,104
14,815
Dental
3,714
4,336
622
Life Insurance
380
380
0
Uniform Allowance
0
0
0
Subtotal
162,255
179,190
16,935
Total
$502, 075
$526, 096
$24, 021
Note: N = Non -Exempt; E = Exempt
53
Finance Department
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.
Primary Functions --> There are three primary operating functions within the Finance Department.
■ 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.
2014/15 Accomplishments
■ Worked with Tyler Technologies to convert all data to the new software.
■ Worked to refund (refinance a current bond issuance by issuing new bonds) two bonds a 2006
TIF bond and a 2007 GO Bond to realize interest savings. This will coincide with the issuance of
bonds for the Recreation Center Building.
■ Began working with the state to join the Local Debt Recovery Program in order to capitalize on
the states resources to collect bad debt.
■ Continued to clean up vehicle sticker records in the new software.
2015/16 Goals and Objectives
■ Improve management of the City's investment portfolio, including implementing cash flow
modeling and investment strategies.
■ Go live with the new software package which will increase productivity and offer new reporting
methods to residents.
■ Improve communication of information to new residents.
■ Begin using the State of Illinois Local Debt Recovery program in order to be able to take
advantage of garnishing tax return funds for residents that have bad debts.
54
Finance Department
Budget Summary
FINANCE DEPARTMENT
BUDGET SUMMARY
8 months
2013/14
2014/15
2014/15
2015/16
INCREASE
ACTUAL
BUDGET
ACTUAL
BUDGET
(DECREASE)'
EXPENDITURES
PERSONNEL
350,799
$363,836
$238,327
$386,417
$22,581
CONTRACTUAL
52,828
47,680
31,844
49,880
2,200
SUPPLIES
35,707
48,600
5,422
8,600
(40,000)
OTHER
1,661,327
1,848,354
1,172,235
2,404,375
556,021
TOTAL
$2,100,661
$2,308,470
$1,447,828
$2,849,272
$540,802
PERSONNEL AUTHORIZATION
TOTAL
FUNDING SOURCE
PURCHASE OF SERVICE W/S FUND
GENERALREVENUES
TOTAL
INCREASE
2012/13 2013/14 2014115 2015/16
2014/15
2014/15
2015/16
2011/12
BUDGET
PERCENTAGE
BUDGET
PERCENTAGE
$157,337
6.8
$157,337
5.5
2,151,133
93.2
2,691,935
94.5
$2,308,470
100.0
$2,849,272
100.0
Budget Highlights
■ Personnel costs increase due to providing non -bargaining unit employees merit -based increases as
well as increases to retirement and insurance costs.
■ Supplies costs decrease $40,000 due to moving garbage sticker expenses to the administration
department.
■ Other costs increase $556,021. Developer incentives, a sales tax rebate, are expected to be
$275,000 which is $35,000 more than last year. Debt service costs increase $37,134, transfers for
capital items are at $1,305,725, which is an increase of $479,000 over last year, the IT fund
transfer increases $4,887 due to increases in wage and benefits as well as software maintenance.
55
Finance Department
Personnel Review
Finance Department
Personnel Schedule
2014115 Budget
2015/16 Budget
Change
Dollars Number of
Dollars Number of
Dollars
Number of
Salaries
Grade
Budgeted Employees
Budgeted Employees
Budgeted
Employee
Finance Director
E-25
$85,139 1.00
$85,139 1.00
0
0.00
Finance Specialist
N-4
142,993 3.00
135,981 3.00
(7,012)
0.00
Office Assistant
N-1
26,072 0.60
26,072 0.60
0
0.00
Overtime
0
0
0
Sickpay Buyback Incentive
600
3,100
2,500
Salary Adjustment
0
6,257
6,257
Longevity Bonus
1,679
0
(1,679)
Salary Savings
0
0
0
Total
256,483 4.60
256,549 4.60
66
0.00
Benefits
IMRF Retirement
34,625
34,634
9
FICA/Medicare
19,621
19,626
5
HealthNision
50,535
72,516
21,981
Dental
2,255
2,775
520
Life Insurance
317
317
0
Uniform Allowance
0
0
0
Subtotal
107,353
129,868
22,515
Total
$363,836
$386,417
$22,581
Note: E
= Exempt; N = Non -Contract, Non -Exempt
56
Police Commission
Mission Statement
It is the mission of the Police Commission to recruit and promote the best available persons possible for
sworn positions with the McHenry Police Department.
Primary Functions --> The primary function of the Police Commissioners is to select sworn personnel in
accordance with the employment policy of the City of McHenry, as well as to investigate and conduct
hearings regarding complaints alleged against any sworn member of the McHenry Police Department.
Budget Summary
POLICE COMMISSION
BUDGET
SUMMARY
8 month
2013/14
2014/15 2014/15
2015/16
INCREASE
ACTUAL
BUDGET ACTUAL
BUDGET
(DECREASE)
EXPENDITURES
PERSONNEL
$1,453
$1,453 $0
$1,453
$0
CONTRACTUAL
5,880
5,000 5,375
5,000
0
TOTAL
$7,333
$6,453 $5,375
$6,453
$0
2014/15 2014115
2015/16
2011/12
AMOUNT PERCENTAGE
AMOUNT
PERCENTAGE
FUNDING SOURCE
GENERAL REVENUES
$6,453 100.0
$6,453
100.0
TOTAL
$6,453 100.0
$6,453
100.0
Budget Highlights
■ No significant changes.
57
Police Department
Mission Statement
It is the mission of the City of McHenry Police Department to provide quality police services to the
community by promoting a safe environment through police and citizen interaction with emphasis on
integrity, fairness and professionalism.
Primary Functions —)� There are two operating divisions within the Police Department
■ Administration: Administrative Services is responsible for administrative and support services
in divisions that include patrol and support services.
■ Patrol: Personnel assigned to this division are responsible for patrolling the community to deter
and detect criminal activity, respond to calls for service both routine and emergency, and enforce
traffic regulations.
Support Services: The Support Services Division is responsible for tasks that support the efforts
of the Patrol Division. The planning and research section and dispatch section also falls within
this unit.
2014/15 Accomplishments
■ In 2014/15 the McHenry Police Department was proud to hire two new patrol officers and two
new Dispatcher, both dispatchers and one officer were hired to replace vacancies from the
2014/2015 fiscal year, while the second officer was hired through the reactivation of the School
resource Officer Program. We are excited to have Officer Joshua Conway and Samuel Shafer join
our Force. They were sworn in On June 30d' and September 22"d respectively. Kelly Schmitt and
Justine Leibach were hired as a full time Dispatchers in our Communications Center.
■ The McHenry Police Department in an effort to accomplish the agency mission has participated
in the following community based outreach programs during the 2014/2015 year: St. Baldricks
for juvenile cancer, Child Safety Seat inspections, Coffee with the Chief, School Safety, Adopt a
School program (district 15), Dea Drug Take Back Program, and Tobacco Compliance Checks.
■ Reactivation of the School Resource Officer for district 156 with one officer for the two schools.
■ Continued a strong public relations effort through participation in more than seventeen (18)
events geared at volunteerism and community outreach.
■ Remained fiscally responsible and obtained more than $135,000 in grants and partnership funded
law enforcement projects, including $67,996 from School District 156 for the reactivation of the
School Resource Officer position.
■ Received our Forth accreditation award through the Commission on Accreditation for Law
Enforcement (CALEA) helping us to maintain a standard recognized nationally for Law
Enforcement services to the community.
■ Providing dispatching services, for a fee, to neighboring agencies, which has reduced our overall
operational cost of the Center by 25% or approximately $285,353
■ Maintained a high level of patrol/investigation calls for service — nearly 21,000 in 2014.
■ Created multi Jurisdictional Accident investigation team with Johnsburg and Spring Grove Police
Departments
■ Continued participation in over 8,000 hours of internal and external trainings resulting in
improved service to the community.
■ Replaced all outdated Police radios with Starcom2l radios with the majority, of the funding
coming from Grant and Seizure funding.
58
Police Department
2015/16 Goals and Objectives
■ Ensure that the McHenry police Department is active in applying for grants related to equipment
and personnel funding.
■ Determine if more agencies can be added to Multi Jurisdictional accident investigative team,
primarily Woodstock and Lakemoor Police Departments.
■ Place second officer in district 156 school putting a School Resource Officer in each High
School in McHenry.
■ Reduce the number of vehicle accidents involving personal injury or death through increased
seatbelt enforcement, speeding enforcement, DUI enforcement, roadside safety checks, car seat
safety checks, and roadway enhancements.
■ Continue successful operations of the McHenry Police Department Street Crimes Unit.
■ Develop plan to expand the Dispatch center so that we can provide emergency dispatch services
for more communities, therefore reducing our overall costs to the city.
■ Continue to seek out alternate sources of funding to supplement and/or reduce operational costs
or fund continuing successful programs.
■ Maintain the minimum level of training for all line level officers and employees as dictated by
policy and statute.
■ Continue operation of the CA -LEA Accreditation Program.
Budget Summary
POLICE DEPARTMENT
BUDGET SUMMARY
8 Month
2013/14
2014115
2014/15
2015/16
INCREASE
ACTUAL
BUDGET
ACTUAL
BUDGET
(DECREASE)
EXPENDITURES
PERSONNEL
$7,693,997
$8,066,590
$5,593,014
$8,472,386
$405,796
CONTRACTUAL
197,651
233,621
163,884
271,880
38,259
SUPPLIES
187,582
204,160
111,201
212,545
8,385
OTHER
518,283
482,582
321,721
496,579
13,997
CAPITAL EXPENDITURES
176,252
37,575
37,015
4,240
(33,335)
TOTAL
$8,773,765
$9,024,528
$6,226,835
$9,457,630
$433,102
INCREASE
PERSONNEL AUTHORIZATION
2012/13
2013/14
2014/15
2015/16
(DECREASE)
SWORN
46.00
46.00
46.00
47.00
1.00
NON -SWORN
14.60
14.88
14.88
14.88
(0.01)
TOTAL
60.60
60.88
60.88
61.88
0.99
2014115
2014/15
2015/16
2015/16
AMOUNT
PERCENTAGE
AMOUNT
PERCENTAGE
FUNDING SOURCE
PROPERTY TAX LEVIES:
POLICE PROTECTION
$547,959
6.1
$547,959
5.8
POLICE PENSION
1,295,577
14.4
1,387,374
14.7
CHARGES FOR SERVICE
562,630
6.2
562,630
5.9
FINES AND FORFEITURES
375,000
4.2
375,000
4.0
REIMBURSEMENTS
8,700
0.1
8,700
0.0
GENERAL REVENUES
6,234,661
69.1
6,575,967
69.5
TOTAL
$9,024,527
100.1
$9,457,630
100.0
59
Police Department
Budget Highlights
■ Personnel costs increase due to adding a Student Resource Officer position for McHenry School
District 156. This position will be 70% funded by the school district. Costs were also increased
based on the union contracts. The City's contribution for police pension was increased by
$91,797 based on the actuarial required amount.
■ Contractual expenses increase due to increased Northern Illinois Crime Lab expenses as well as
expenses for a school safety seminar.
■ Purchase of services, information technology costs increase by $13,997 to cover actual expenses
within that fund including increases in personnel costs as well as software maintenance costs.
Capital Equipment
Capital equipment is budgeted for a NIPAS ballistic vest, public relations static display, a wireless
headset, and an On-line application software.
60
Police Department
Personnel Review
Police Department
Personnel Schedule
2014115 Budget
2015/16 Budget
Change
Dollars
Number of
Dollars
Number of
Dollars
Number of
Salaries
Grade
Budgeted
Employees
Budgeted
Employees
Budgeted
Employees
Sworn
Police Chief
E-26
$115,217
1.00
$115,217
1.00
$0
0.00
Deputy Chief/Commanders
E-24
301,610
3.00
301,610
3.00
0
0.00
Sergeant
N-12
661,454
7.00
661,454
7.00
(0)
0.00
Patrol Officer
FOP-1
2,782,924
35.00
2,886,265
36.00
103,341
1.00
Non-Swom
Administrative Assistant
N-4
48,881
1.00
48,881
1.00
0
0.00
IT Specialist
E-18
57,241
0.88
56,295
0.88
(946)
0.00
Communications Dispatch
FOP -II
516,074
9.00
531,187
9.00
15,113
0.00
Records Clerk
FOP -II
87,573
2.00
96,075
2.00
8,502
0.00
Community Service Officer
FOP-ll
97,387
2.00
102,823
2.00
5,436
0.00
Civilian Part Time
35,000
35,000
0
Civilian Overtime
45,000
45,000
0
Sworn Overtime
244,500
244,500
0
Holidays
111,800
111,800
0
Sickday Payback Incentive
18,853
19,381
528
Severance (Benefit Time)
0
0
0
Dual Career
0
0
0
On -Call Pay
14,000
14,000
Officer in Charge Special Pay
7,000
7,000
0
Investigator Stipend
3,000
3,000
0
Field Training Officer
2,750
2,750
0
Longevity Bonus
4,079
0
Salary Adjustment
74,569
105,321
30,752
Insurance Opt -Out
0
16,500
16,500
Subtotal
5,228,912
60.88
5,404,059
61.88
179,226
1.00
Benefits
Police Pension
1,295,577
1,387,374
91,797
IMRF Retirement
121,336
125,346
4,010
FICA Medicare
400,012
413,410
13,398
HealthNision
944,128
1,060,282
116,154
Dental
38,025
44,246
6,221
Life Insurance
4,200
4,270
70
Uniform Allowance
34,400
33,400
(1,000)
Subtotal
2,837,678
3,068,327
230,649
Total
$8,066,590
60.88 $8,472,386
61.88 $409,875 1.00
Note: E = Exempt Position; N = Non -Exempt Position; FOP-1 = Unit One Police Union; and FOP -II = Unit Two Police Union
61
Public Works - Administration
Mission Statement
It is the purpose of the Public Works Department's Administration Division to provide direction and
administrative support to the Department of Public Works.
Primary Functions --> There are several primary operating functions within the Public Works
Administration Division.
■ Working with the Mayor, Council and City Administrator to ensure that the City's policies and
programs for the department are carried out in addition to managing the department.
■ Provide engineering services for a number of projects, plan review, and monitoring the work of
the City's contracted engineering.
2014/15 Accomplishments
■ Administration of consolidation engineering design of the Central Wastewater Treatment Plant
(CWWTP) and the South Wastewater Treatment Plant (SWWTP) and the Facility Plan
Amendment (FPA) and National Pollutant Discharge Elimination System (NPDES) Permit.
■ Management of biennial bridge inspections
■ Administration of the Architectural Services/Project Management for the roof replacements/
miscellaneous work at the South Wastewater Treatment Plant and public bid
■ Intergovernmental agreement with McHenry County Division of Transportation for Tree Planting
and Replacement providing $196,500 towards the City's tree planting program
■ Administration of e-waste and Christmas lights recycling programs
■ City Council adoption of a water conservation ordinance
■ Successfully obtained Highway Safety Improvement Program (HSIP) funds for road
improvements on Curran Road
■ Administration of specifications, bids and purchase of Street Division stump grinder.
■ Successfully obtained Surface Transportation Program (STP) funding for road improvements to
Pearl Street/Lincoln Road and Ringwood Road
• Illinois Environmental Protection Agency nomination for "Treatment Plant of The Year" award
for South Wastewater Treatment Plant.
■ Administration of construction and Phase III engineering of the Route 120/Route3 I Intersection
Improvements
■ Capital Improvement Program which included the following projects: road maintenance program-
cracksealing; street resurfacing program; Central Wastewater Treatment Plant (CWWTP) Electric
Service Upgrade; South Wastewater Treatment Plant (SWWTP) Chlorine Contact Gate
Replacement; roof replacements/ miscellaneous work at the South Wastewater Treatment Plant;
GIS Web Based Mapping
2015/16 Goals and 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 and e-waste/ Christmas lights
recycling programs
62
Public Works - Administration
■ Provide responsible financial leadership during challenging economic times while maintaining
existing Public Works services.
■ Implementation of the 2015/16 Capital Improvement Program which includes the following
projects: construction and Phase III engineering of McCullom Lake Road Improvements and
Knox Drive Extension; road resurfacing program; asphalt pavement maintenance (cracksealing);
construction/ engineering of the Crystal Lake Road/Dartmoor Drive traffic signal; Phase II
engineering of the Ringwood Road Improvements, Pearl Street/Lincoln Road Improvements, Bull
Valley Road Improvements, and Curran Road S-curve Improvements; vehicle replacement
program; standby generator at the Public Works Facility; Water meter replacement program;
Route 31/1\4iller Road/Bull Valley Road Watermain relocation; equipment/vehicles replacement;
consolidation of the Central Wastewater Treatment Plant (CWWTP) and the South Wastewater
Treatment Plant (SWWTP)
■ Negotiation of a collective bargaining agreement with Local 150 Operating Engineers
Budget Summary
PUBLIC WORKS DEPARTMENT - ADMINISTRATION DIVISION
BUDGET SUMMARY
8 Month
2013/14
2014/15
2014/15
2015/16
INCREASE
ACTUAL
BUDGET
ACTUAL
BUDGET
(DECREASE)
EXPENDITURES
PERSONNEL
$215,742
$224,776
$139,855
$234,735
$9,959
CONTRACTUAL
13,196
11,280
1,881
11,280
$0
SUPPLIES
1,258
2,600
440
2,600
$0
OTHER
22,973
22,549
15,033
23,098
$549
CAPITAL EXPENDITURES
0
0
0
0
$0
TOTAL
$253,169
$261,205
$157,209
$271,713
$10,508
INCREASE
PERSONNEL AUTHORIZATION
2011/12
2013/14
2014/15
2015116
(DECREASE)
TOTAL
2.00
2.00
2.00
2.00
0.00
2014/15
2014/15
2015/16
2015/16
AMOUNT PERCENTAGE
AMOUNT
PERCENTAGE
FUNDING SOURCE
GENERAL REVENUES
$261,205
100.0
$271,713
100.0
TOTAL
$261,205
100.0
$271,713
100.0'
Budget Highlights
■ Personnel costs increase due to providing non -bargaining unit employees merit -based increases as
well as increases to retirement and insurance costs.
63
Public Works - Administration
Personnel Review
Salaries
Director
Administrative Assistant
Overtime
Sickday Payback Incentive
Salary Adjustment
Severance Pay
Longevity Bonus
Subtotal
Benefits
IMRF Retirement
FICA/Medicare
Health/Vision
Dental
Life Insurance
Uniform Allowance
Subtotal
ublic Works Department - Admini:
Personnel Schedule
Division
2014/15 Budget
2015/16 Budget
Change
Dollars
Number of
Dollars
Number of
Dollars Number of
Grade Budgeted
Employees
Budgeted
Employees
Budgeted Employee
E-25 $104,149
1.00
$104,149
1.00
$0 0.00
N-4 48,881
1.00
48,881
1.00 .
0 0.00
0
0
0
883
883
0
0
3,826
3,826
0
0
0
0
0
0
$153, 913
2.00
$157, 739
2.00
$3, 826 0.00
20,778
21,295
517
11,774
12,067
293
36,626
41,820
5,194
1,547
1,676
129
138
138
0
0
0
0
$70, 863
$76, 996
$6,133
Total $224, 776 $234, 735 $9, 959
Note: N = Non -Exempt Position; E = Exempt Position
64
Public Works — Street Division
Mission Statement
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, cost effective
infrastructure through superb customer service.
Primary Functions -4 The primary function of the Street Maintenance Division includes street cleaning,
street maintenance, and ensuring roadways are cleared of snow and ice conditions, and all administrative
functions.
■ Crews remove snow, control ice and conduct street cleaning in addition to making
miscellaneous repairs.
■ Maintain and repair all City owned vehicles and various equipment through the City garage
with two full-time mechanics.
■ Monitor maintenance of streetlights and signals by a private contractor.
■ Advises the department director on fleet and infrastructure needs and responds to service
requests.
2014/15 Accomplishments
■ Crews resurfaced and repaired sections of streets throughout the City.
■ Trimmed trees and removed 300 ash trees; completed the bi-annual brush program and
responded to storm damage requests from residents.
■ Replaced sidewalks and curbs.
■ Drainage improvements.
■ Implementation of the 2014 Crack Sealing program.
■ Maintained city -owned vehicles and equipment.
■ Right of way maintenance including parkway restoration, mowing, and creek cleaning.
■ Assisted HR Green with overseeing the 2014 Road Program which included 5 streets.
■ Managed snow removal, ice control, and conducted street cleaning in addition to making
miscellaneous repairs.
■ The Street Division crews constructed vehicular access from Venice Avenue to Riverside
Drive
■ Assisted with the preparation for Fiesta Days and 4`h of July activities.
■ Administration of specifications, bids and purchase of Street Division stump grinder
2015/16 Goals and Objectives
■ Address all snow and ice events by clearing roadways to ensure safe travel on City streets.
■ Continue drainage improvement work, particularly in the Lakeland Park and the City's
northwest quadrant.
■ Maintain the City's fleet so that it will operate efficiently and its useful life is extended.
■ Repair and maintain city streets by dedicating crew to road resurfacing and pothole repair.
■ Mowing the City's right of ways and property in a timely fashion.
■ Respond to all resident requests in a timely manner.
■ Maintain the City's storm sewer system.
■ Maintain and repair City sidewalks and curb.
■ Inspect and maintain the City owned street light systems.
65 ■ Assist with the preparation for Fiesta Day`h
s and 4of July activities.
Public Works — Street Division
■ Capital Improvement Projects include the following:
o Road resurfacing program
o Asphalt pavement maintenance (crack sealing)
o Equipment/vehicle replacement
Budget Summary
PUBLIC WORKS DEPARTMENT - STREETS DIVISION
BUDGET SUMMARY
8 Month
2013/14
2014/15
2014/15
2015/16
INCREASE
ACTUAL
BUDGET
ACTUAL
BUDGET
(DECREASE)
EXPENDITURES
PERSONNEL
$1,978,920
$1,977,995
$1,191,724
$1,928,129
($49;866)
CONTRACTUAL
495,852
475,440
356,109
475,440
0
SUPPLIES
368,533
346,500
255,039
346,500
0
OTHER
118,981
112,213
74,809
112,586
373
CAPITAL EXPENDITURES
0
0
0
0
0
TOTAL
$2,962,286
$2,912,148
$1,877,681
$2,862,655
($49,493)
INCREASE
PERSONNEL AUTHORIZATION 2011/12 2013/14 2014/15 2015/16 (DECREASE
TOTAL 18.00 18.00 19.00 18.00 (1.00)
2014/15
2014/15
2015/16
2015/16
AMOUNT
PERCENTAGE
AMOUNT
PERCENTAGE
FUNDING SOURCE
GENERAL REVENUES $2,912,148
100.0 r
$2,862,655
100.0
TOTAL $2,912,148
100.0
$2,862,655
100.0
Budget Highlights
■ Personnel costs decrease due to the elimination of one position while still following union
contracts as well as providing non -bargaining unit employees merit -based increases as well as
increases to retirement and insurance costs.
66
Public Works - Street Division
Personnel Review
Public Works Department - Street DhAsion
Personnel Schedule
2014/15 Budget
2015/16 Budget
Change
Dollars
Number of
Dollars
Number of
Dollars
Number of
Salaries
Grade
Budgeted
Employees
Budgeted
Employees
Budgeted
Employees
Street Superintendent
E-19
$88,031
1.00
$88,032
1.00
$1
0.00
Crew Leader
N-14
156,516
2.00
156,516
2.00
0
0.00
Office Assistant
N-1
0
0.00
0
0.00
0
0.00
Mechanic
1-8
151,832
2.00
154,870
2.00
3,038
0.00
Street Maintenance Worker
1-6
792,161
14.00
745,388
13.00
(46,773)
(1.00)'
Part -Time (Seasonal)
0
0
0
Overtime
99,000
99,000
0
Sickday Payback Incentive
4,800
4,623
(177)
Salary Adjustment
20,860
26,099
5,239
Longevity Bonus
2,747
0
(2,747)
Subtotal
1,315,947
19.00
1,274,528
18.00
(41,419)
(1.00)
Benefits
IMRF Retirement
177,653
172,061
(5,592)
FICA/Medicare
100,670
97,501
(3,169)
Health/Wellness
373,190
373,804
614
Dental
2,224
1,993
(231)
Life Insurance
1,311
1,242
(69)
Uniform Allowance
7,000
7,000
0
Subtotal
662,048
653,601
(8,447)
Total $1, 977, 995 $1, 928,129 ($49, 866)
Note: N = Non -Exempt Position; E = Exempt; I = IUOE Local #150
67
Parks and Recreation Department
Mission Statement
Recognizing leisure activities, facilities, and open spaces are important to individuals, families, and
community life, 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.
Primary Functions -> There are three primary operating divisions within the Parks and Recreation
Department.
Parks Maintenance: Responsible for planning, organization, and supervision of park
maintenance activities for active parks, buildings, pool, beach, and athletic facilities.
■ Forestry Planning: Address all forestry issues and maintenance of passive use park land.
Review new subdivisions as well as landscape plans associated with new developments.
Recreation: Responsible for providing quality recreation programs and events to residents of the
community. Supervise staff and operations of Knox Park pool and concessions, Petersen Park
beach and concessions, Althoff Park concessions, and McHenry Zone Skate & Bike Park.
2014/15 Accomplishments
■ The Recreation Center was a significant focus last year with the project concept being finalized
and then proceeding through design development, drafting construction documents and the
corresponding bidding documents. The project was bid in January and bids were approved in
March. Construction is set to begin in April with an anticipated opening in Spring 2016.
■ While the Miller Riverfront Boat Launch was not installed, headway was made toward the
acquisition of the boat ramps. In addition there were multiple logistic meetings with local
officials and the Army Corp of Engineers toward the completion of the project.
■ The City secured a sponsorship for the McBark Dog Park with Gary Lang Subaru. The three year
sponsorship amounted to $15,000 per year. This also allowed the users fees to be substantially
reduced. There are now over 500 memberships to the park.
■ The renovations of the Fort McHenry playground were completed. New elements were added
and others completely rebuilt with composite decking which will aid in the lifespan of the park.
■ A complete analysis was conducted of the Peter J. Merkel Aquatic Center after many mechanical
upgrades were undertaken. The results indicated a lifespan of 15 — 20 years before requiring
significant upgrades.
■ A new LED electronic monument sign was installed in Whispering Oaks Park replacing an aged
replaceable letter sign.
■ Summer brochures were once again mailed to all residents. This practice resulted in increased
participation numbers.
■ A $358,000 grant was awarded to expand the city's bike path system in conjunction with the
Recreation Center project.
■ A Colby -Petersen Farm Foundation was established as an official not -for -profit organization to
raise funds for the restoration and programming of the Historic Petersen Farm.
■ A new Vietnam Veterans Memorial monument commemorating four McHenry residents that
were killed during the war was erected in Veterans Memorial Park. The monument was designed
and installed as a gift from the McHenry High School Class of 1964.
■ The infield at Petersen Park Field 42 was completely stripped and re -sodded. The high school
paid for the sod and McHenry Baseball Association and McHenry Cobras provided much of the
manpower for the renovations.
68
Parks and Recreation Department
■ Two new River Run courses were certified and utilized this year. The date was also changed to a
Saturday morning run versus the more challenging Tuesday night timeframe.
■ The Petersen Park parking lot off of Oak Drive was repaved
■ The Parks and Recreation Department celebrated its 35th anniversary.
2015/16 Goals and Objectives
■ Complete the construction of the Recreation Center.
■ Hire a Center Manager to oversee and run the new facility.
■ Acquire boat ramps and complete the Miller Riverfront Boat Launch project.
■ Resurface the tennis courts at Knox Park.
■ Construct the bike path additions in conjunction with the Recreation Center project.
■ Install an inflatable water course at the Petersen Park Beach.
■ Work to maintain the quantity and quality of fee supported recreation and athletic programs.
■ Cooperate with other community organizations and provide services for community special
events.
■ Continue maintenance of trees in public parks and continue to monitor threat of Emerald Ash
Borer, gypsy moth and Japanese beetle infestations.
■ Continue to renovate facilities to comply with the recommendations of the ADA Access Audit.
■ Begin repairs and capital improvements to existing park facilities: court sport areas, parking lots
and playgrounds.
Budget Summa
PARKS AND RECREATION DEPARTMENT
BUDGET SUMMARY
8 months
2013/14
2013/14
2014/15
2015/16
INCREASE
ACTUAL
BUDGET
ACTUAL
BUDGET
(DECREASE)
EXPENDITURES
PERSONNEL
$1,068,338
$1,319,556
$895,012
$1,464,049
$144,493
CONTRACTUAL
$422,533
487,433
340,437
487,433
0
SUPPLIES
$114, 223
169,800
102,469
169,800
0
OTHER
$165,175
183,781
126,234
199,361
15,580
CAPITAL EXPENDITURES
$1,210
0
52,777
0
0
TOTAL
$1,771,479
$2,160,570
$1,516,929
$2,320,643
$160,073
INCREASE
PERSONNEL AUTHORIZATION
2012/13
2013114
2014/15
2015/16
(DECREASE)
TOTAL
11.00
10.00
12.00
12.00
0.00
2014/15
2014/15
2015116
2015/16
AMOUNT
PERCENTAGE
AMOUNT
PERCENTAGE
FUNDING SOURCE
PROGRAM FEES
380,000
17.5
340,000
14.6
POOL AND BEACH REVENUES
129,000
5.9
128,160
5.5
CONCESSIONS
44,000
2.0
40,000
1.7
DONATIONS
9,000
0.4
9,000
0.4
GENERAL REVENUES
1,607,570
74.1
1,812,483
77.8
TOTAL
$2,169,570
100.0
$2,329,643
100.0
69
Parks and Recreation Department
Budget Highlights
Personnel expenses increase due to adding a position for Recreation Center Manager as well as
union contract wage increases and providing non -bargaining unit employees merit -based
increases.
Forestry expenses increase $13,000 due to spending a portion of the tree grant received in FY14-
15. Purchase of services, information technology costs increase by $2,580 to cover actual
expenses within that fund including increases in personnel costs as well as software maintenance
costs.
70
Parks and Recreation Department
Personnel Review
Director of Parks
Supt. Of Parks & Downtown Maintenance
Supt. of Forestry/Park Plan.
Rec Prog Superintendent
Recreation Center Manager
Asst. Superintendent of Parks
Athletic Prog Coordinator
Admin. Assistant
Office Assistant
Park Maint Worker
Street Maint Worker
Seasonal/Instructors
Overtime
Sickday Payback Incentive
Salary Adjustment
Lonaevitv Bonus
IMRF Retirement
FICA/Medicare
Health/Vision
Dental
Life Insurance
Uniform Allowance
Subtotal
ITotal
Grade
E-21
E-19
E-16
E-16
E-13
E-6
E-4
E-1
I-6A
I-C
Parks and Recreation Dep<
Personnel Schedule
2014/15 Budget
Dollars
Budgeted
$0
$88,031
78,258
70,756
0
63,974
52,869
48,881
35,533
199,191
63,341
228,000
17,500
1,458
5,251
4,427
957,470
98,478
73,246
182,652
4,632
828
2,250
362,086
$1,319,556
Number of
Employees
0.00
1.00
1.00
1.00
0.00
1.00
1.00
1.00
1.00
4.00
1.00
12.00
2015/16 Budget
Dollars
Number of
Budgeted
Employees
$0
0.00
$88,031
1.00
78,258
1.00
70,756
1.00
50,000
1.00
63,974
1.00
52,869
1.00
48,881
1.00
36,130
1.00
228,438
4.00
64,608
1.00
228,000
17,500
1,665
16,833
0
1,045,943 13.00
110,422
80,015
218,812
5,710
897
2,250
418,106
$1,464,049
Change
Dollars
Number of
Budgeted
Employees
$0
0.00
$0
0.00
0
0.00
0
0.00
50,000
1.00
0
0.00
0
0.00
0
0.00
597
0.00
29,247
0.00
1,267
0.00
0
0
207
11,582
11,944
6,769
36,160
1,078
69
0
44,076
$132,549
71
SA N w
ItEAR'r OF VNE FOX RIVER
IP-,
SPECIAL REVENUE FUND BUDGETS
Tourism Fund
Pageant Fund
Band Fund
Civil Defense Fund
Alarm Board Fund
Audit Fund
Annexation Fund
Motor Fuel Tax Fund
Developer Donation Fund
Tax Increment Finance Fund
72
Tourism Fund
Purpose
The purpose of the Tourism Fund is to finance tourism promotion for the City.
Fund Highlights
The primary function of the Tourism Promotion Fund is to provide funding to the McHenry County
Convention and Visitor's Bureau (MCCVB). The City currently has a 5% tax on motel and hotel room
receipts. This tax, along with similar ones enacted by other municipalities in McHenry County, is used to
fund the McHenry County Convention & Visitors Bureau.
Budget Summary
EXPENDITURES
CONTRACTUAL
OTHER
TOTAL
FUNDING SOURCE
HOTEL/MOTEL TAX
INTEREST INCOME
Budget Highlights
No significant changes.
TOURISM FUND
BUDGET SUMMARY
8 months
2013/14 2014/15
2014/15
2015/16
INCREASE
ACTUAL BUDGET
ACTUAL
BUDGET
(DECREASE)
$0 $20,000
$12,000
$20,000
$0
79,000 75,000
50,000
75,000
0
$79, 000 $95, 000
$62, 000
$95, 000
$0
2014/15
2014/15
2015/16
2015/16
AMOUNT
PERCENTAGE
AMOUNT
PERCENTAGE
$130,000
100.0
$140,000
100.0
50
0.0
50
0.0
$130,050
100.0
$140,050
100.0
73
Paueant Fund
Purpose
The purpose of the Pageant Fund is to account for revenues and expenditures used to conduct the Miss
McHenry Pageant.
Fund Highlight-4
The Miss McHenry Pageant is an annual beauty contest for girls between the ages of 16 and 20. The
pageant is a community tradition that has been held for almost 60 years. The contestants must live in the
McHenry school district and have a McHenry address. A maximum of 15 contestants compete in the
pageant each year and the entry fee for the contestants is $200 per girl.
Budget Summary
PAGEANT FUND
BUDGET SUMMARY
8 months
2013/14
2014/15
2014/15
2015/16
INCREASE
ACTUAL
BUDGET
ACTUAL
BUDGET
(DECREASE)
EXPENDITURES
CONTRACTUAL
$490
$1,000
$0
$1,000
$0
SUPPLIES
0
0
0
0
0
OTHER
2,805
2,550
3,333
2,550
0
(TOTAL
$3,295
$3,550
$3,333
$3,550
$0
2014/15
2014/15
2015/16
2015/16
AMOUNT
PERCENTAGE
AMOUNT
PERCENTAGE
FUNDING SOURCE
DONATIONS
$50
1.6
$500
14.1
MISCELLANEOUS
3,050
98.4
3,050
85.9
TOTAL
$3,100
100.0
$3,550
100.0
Budget Highlights
■ No significant changes.
74
Band Fund
Purpose
The purpose of the Band Fund, a special revenue fund, is to finance and account for expenditures incurred
in the provision of summer concerts to promote culture and recreation to the community.
Fund Highlights -->
The primary function of the municipal band is to provide eight concerts annually at the gazebo in
Veterans Memorial Park.
BAND FUND
BUDGET SUMMARY
8 months
2013/14
2014/15
2014/15
2015/16
INCREASE
ACTUAL
BUDGET
ACTUAL
BUDGET
(DECREASE)
EXPENDITURES
CONTRACTUAL
$13,914
$14,500
$12,958
$14,500
$0
OTHER
178
500
0
500
0
TOTAL
$14,092
$15,000
$12,958
$15,000
$0
2014/15
2014/15
2015/16
2015/16
AMOUNT
PERCENTAGE
AMOUNT
PERCENTAGE
FUNDING SOURCE
INTEREST EARNINGS
$0
0.0
$0
0.0
TRANSFERS
15,000
100.0
15,000
100.0
GRANTS
0
0.0
0
0.0
PROPERTY TAX REVENUES
0
0.0
0
0.0
TOTAL
$15,000
100.0
$15,000
100.0
Budget Highlights
■ No significant changes.
75
Civil Defense Fund
Mission Statement
It is the mission of the Civil Defense Fund to fund and account for expenditures incurred in 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.
Fund Highlights -->
The primary function of the Fund is maintaining the existing early warning siren system and purchasing
additional sirens for newer sections of the community in coming years.
Budget Summary
CIVIL DEFENSE FUND
BUDGET SUMMARY
8 months
2013/14 2014/15
2014115
2015/16
INCREASE
ACTUAL BUDGET
ACTUAL
BUDGET
(DECREASE)
EXPENDITURES
OTHER
$10,315 $3,200
$6,668
$3,200
$0
TOTAL
$10,315 $3,200
$6,668
$3,200
$0
2014/15
2014/15
2015/16
2015/16
AMOUNT
PERCENTAGE
AMOUNT
PERCENTAGE
FUNDING SOURCE
INTEREST EARNINGS
$0
0.0
$0
0.0
OTHER REVENUE
$5,000
100.0
$5,000
100.0
PROPERTY TAX REVENUES
0
0.0
0
0.0
TOTAL
$5,000
100.0
$5,000
100.0
Budget Highlights
■ No significant changes.
Alarm Board Fund
Purpose
The purpose of the Alarm Board Fund is to pay for the maintenance of the radios as well as the annual
maintenance of the head end equipment in the city dispatch center. This equipment comprises the city's
direct connect radio fire alarm monitoring network. City businesses are required by ordinance to have
fire alarm monitoring and this monitoring is to be directly connected to the city dispatch center.
Fund Highlights --> The city currently has 141 radios that are monitored monthly. The radios are billed
quarterly at $90/month.
Budget Summary
ALARM BOARD REVENUE FUND
BUDGET
SUMMARY
8 month
2013/14
2014/15
2014/15
2015/16
INCREASE
ACTUAL
BUDGET
ACTUAL
BUDGET
(DECREASE)
EXPENDITURES
SUPPLIES $45,469
$45,000
$41,620
$60,000
$15,000
CAPITAL 0
0
0
0
0
TOTAL $45,469
$45,000
$41,620
$60,000
$15,000
2014/15
2014/15
2015/16
2015/16
AMOUNT
PERCENTAGE AMOUNT PERCENTAGE
FUNDING SOURCE
INTEREST EARNINGS
$0
0.0
$0
0.0
ALARM BOARD REV
153,000
0.0
153,000
100.0
TOTAL
$153,000
0.0
$153,000
100.0
Budget Highlights
■ Contractual expenses increase $31,950 to cover payment made to the McHenry Township Fire
Protection District for 20% of alarm board revenues received as well as monthly maintenance
fees and connection fees.
77
Audit Fund
Purpose
The purpose of the Audit Fund to account for the expenses incurred to complete the annual audit of the
City's financial statements.
Fund Highlights —>
The State of Illinois requires that the City of McHenry conduct an independent audit on an annual basis.
In turn, the statutes provide authority for an entity to levy a 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 audit is deposited into a separate fund and kept segregated from the general corporate
levy receipts. There is no limit on the property tax rate used to meet the cost of the required audit.
Budget Summary
EXPENDITURES
CONTRACTUAL
TOTAL
AUDIT FUND
BUDGET SUMMARY
8 months
2013/14
2014115
2014/15
2015/16
INCREASE
ACTUAL
BUDGET
ACTUAL
BUDGET
(DECREASE)
$34,985
$35,710
$35,710
$36,380
$670
$34,985
$35,710
$35,710
$36,380
$670
2014/15
2014/15
2015/16
2015/16
AMOUNT
PERCENTAGE
AMOUNT
PERCENTAGE'
FUNDING SOURCE
PROPERTY TAX REVENUES
$26,426
70.0
$26,426
69.6
PURCHASE SERVICE - POLICE PENSION
3,425
9.1
3,500
9.2
PURCHASE SERVICE -WATER/SEWER
7,908
20.9
8,054
21.2
TOTAL
$37,759
100.0
$37,980
100.0
Budget Highlights
■ The audit examination fee for FY 2014/15 (which is paid in FY2015/16) has been approved by
the City Council at $36,380 which is a 2% increase over the FY2013/14 audit fees. The internal
service charges to the Water/Sewer Fund have been adjusted accordingly.
■ The Police Pension Fund audit fee for FY2014/15 has been approved by the City Council at
$3,500, which is fully covered by the Police Pension Fund transfer.
78
Annexation Fund
Purpose
The purpose of the Annexation Fund is to segregate funds received from negotiated annexation
agreements that are intended to be used for improvements to infrastructure or City facilities.
Fund Highlights -4
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. The City
collects about $1,000 per acre for residential property up to five acres in size plus approximately $600 per
unit upon issuance of a building permit. The additional per unit fee is assessed and distributed to the two
area school districts and the fire and library districts. As revenues in this fund do not necessarily
represent recurring income, the City Council annually reviews how the proceeds of this fund are
allocated.
Annexation Fund revenues are determined by a mixture of recurring and one-time, non -recurring sources.
Gravel mining fees, a recurring revenue resulting from an annexation agreement with Meyer Material,
generates approximately $40,000 annually. Annexation income varies depending on the agreement and
comes in the form of a lump sum payment based on a per acre charge and periodic payments as building
permits are issued for each unit. The fund collects an annexation fee specifically to offset the added costs
associated with growth in school districts #15 and #156 and the Library and Fire Protection districts.
These fees, designated as operating fees, are distributed to the other taxing bodies based on the terms of
annexation agreements.
Budget Summary
ANNEXATION FUND
BUDGET SUMMARY
8 months
2013/14
2014/15
2014/15
2015/16
INCREASE
ACTUAL
BUDGET
ACTUAL
BUDGET
(DECREASE)
EXPENDITURES
OTHER
$48,455
$45,000
$32,009
$45,000
$0
TOTAL
$48,455
$45,000
$32,009
$45,000
$0
2014/15
2014115
2015/16
2015116
AMOUNT
PERCENTAGE
AMOUNT
PERCENTAGE
FUNDING SOURCE
INTEREST EARNINGS
$200
0.3
$200
0.3
GRAVEUMINING INCOME
40,000
68.7
40,000
68.7
ANNEXATION FEES
18,000
30.9
18,000
30.9
TOTAL
$58,200
100.0
$58,200
100.0
Budget Highlights
■ No significant changes.
79
Motor Fuel Tax Fund
Purpose
The purpose of the Motor Fuel Tax Fund is to provide dedicated revenues from taxes on gasoline and
diesel sales primarily to road improvements and road maintenance.
Fund Highlights—>
Motor fuel taxes are generated by a flat rate of cents per gallon, 19.0 for gasoline and 21.5 for diesel fuel,
plus a sales tax transfer. With the Illinois First program adopted by the State in 1999 to fund
infrastructure, roads, schools and transit programs, the sales tax transfer was eliminated in April of 2000
and certain vehicle registration fees replaced and supplemented this shared state revenue. On a net basis,
it is expected that the City will receive an additional 18% in revenues after all phases of the program are
implemented.
Based upon the annual requirements, funds are used to finance certain road projects. In addition, the City
purchases road salt for snow and ice control from this fund on an annual basis.
Budget Summary
MOTOR FUEL TAX FUND
BUDGET SUMMARY
8 month
2013/14
2014115
2014/15
2015116
INCREASE
ACTUAL
BUDGET
ACTUAL
BUDGET
(DECREASE)
EXPENDITURES
SUPPLIES
$140,640
$305,000
$97,041
$305,000
$0
OTHER
402,432
403,659
269,106
400,262
(3,397)
CAPITAL
280,753
980,301
64,795
1,001,650
21,349
TOTAL
$823,825
$1,688,960
$430,942
$1,706,912
$17,952
2014115
2014115
2015116
2015/16
AMOUNT
PERCENTAGE
AMOUNT
PERCENTAGE
FUNDING SOURCE
INTEREST EARNINGS
$200
0.0
$200
0.0
OTHER
$40,500
5.0
$0
0.0
MOTOR FUEL TAX (STATE)
775,906
95.0
642,410
100.0
TOTAL
$816,606
100.0
$642,610
100.0
Budget Highlights
■ The budget for supplies has increased due to anticipated larger amounts of salt being purchased.
■ Debt service on the 2010 bond issue to fund the streets improvement program is $400,262 due in
FY 2015/16. This bond is a mixture of Recovery Zone and Build America bonds, which allows
the City to get a partial rebate on the interest paid from the federal government.
■ MFT revenues include $23.80 per capita in regular revenue and the special allotment of $120,000
awarded through the Illinois Jobs Now program ended in FYI 4-15.
■ The budget includes a $1,001,650 in streets projects.
80
Motor Fuel Tax Fund
Capital Projects
Motor Fuel Tax Fund
Recommended Projects
Fiscal Year 2015/16
Pavement Maintenance Program
IL 120 & 31 Intersection Improv. Construction
Crystal Lake Road Improv. (Phase III Engineering & Construction)
McCullom Lake Road (Phase I & II Engineering)
McCullom Lake Road (Phase III Engineering & Construction)
Bull Valley Road Improvements (Phase I Engineering)
Bull Valley Road Improvements (Phase II Engineering)
Ringwood Road (Phase I & II Engineering)
Pearl St./Lincoln Road (Phase I & II Engineering)
Curran Road (Phase I engineering)
Total Recommended Projects
Amount
$30, 000
195,200
269,800
2,550
242,000
28,600
51,000
5,000
175,000
2,500
$1,001,650
81
Developer Donation Fund
Purpose
The purpose of 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 City's
parks system.
Fund Highlights —>
Developer donations are collected to ensure the provision of public facilities to serve new development by
requiring each new development to pay its fair share of the costs of such improvements as a condition of
approval. By City ordinance, anyone applying for a building permit for a residential unit will be required
to pay for school, park, fire protection, and library district purposes a cash contribution per each
residential dwelling unit to be constructed. The amount of the donation per residential unit is as follows:
The park's portion of the Developer Donations is used to collect cash in lieu of land donations. The City
has determined that the land donation requirement shall be 1.5 acres of parkland per 100 projected
population based upon the 1996 Illinois School Consulting Service table of estimated ultimate population
per dwelling unit. As a basis to collect cash in lieu of land donations, the fair market value of an
improved acre of land is $107,586. Proceeds of the donations for parks are intended for the development
of recreational opportunities in connection with the new development.
Developer Donation revenues are budgeted based on historical trends and existing developments that
provide the potential for building activity. However, if revenues fall short of projected levels,
expenditures are adjusted accordingly. Of the amount collected for schools, 65% goes to the primary
school district and the remaining 35% is provided to the secondary school district.
Budget Summary
DEVELOPER DONATIONS
BUDGET SUMMARY
8 month
2013/14 2014/15
2014/15
2015/16
INCREASE
ACTUAL BUDGET
ACTUAL
BUDGET
(DECREASE)
EXPENDITURES
OTHER
$77,116 $42,540
$43,397
$42,540
$0
TOTAL
$77,116 $42,540
$43,397
$42,540
$0
2014/15
2014/15
2015/16
2015/16
AMOUNT
PERCENTAGE
AMOUNT
PERCENTAGE
FUNDING SOURCE
INTEREST EARNINGS
$0
0.0
$0
0.0
DEVELOPER DONATIONS
42,540
100.0
42,540
100.0
TOTAL
$42,540
100.0
$42,540
100.0
82
Developer Donation Fund
(EXPENDITURES
OTHER
CAPITAL
FUNDING SOURCE
INTEREST EARNINGS
PARK DONATIONS
TOTAL
Budget Highlights
DEVELOPER DONATIONS (PARK DONATIONS)
BUDGET SUMMARY
8 month
2013/14
2014/15
2014/15
2015/16
INCREASE
ACTUAL
BUDGET
ACTUAL
BUDGET
(DECREASE)
$10,319
$14,200
$10,797
$14,200
$0
45,780
250,000
175,232
142,000
($108,000)
$56,099
$264,200
$186,029
$156,200
($108,000)
2014/15 2014/15 2015/16
AMOUNT PERCENTAGE AMOUNT
$1,000 1.1 $1,000
90,150 98.9 90,150
$91,150 100.0 $91,150
2015/16
1.1
98.9
100.0
■ Due to the limited growth in the number of building permits, developer donation revenue is
expected remain unchanged from the prior year.
■ Capital expenses were budgeted at $142,000 for FYI 5/16.
Capital Items
Park Improvements
Developer Donations (Parks)
2015116
Description Amount
Fort McHenry Renovations - rebudget $72,000
ADA Park Improvements - rebudget $20,000
Miller Riverfront Boat Ramp - rebudget $50,000
Total $142, 000
83
Tax Increment Finance Fund
Purpose
The purpose of the Tax Increment Finance (TIF) District is revitalizing the City's downtown area through
investment from both the private and public sectors.
Fund Highlights -->
In 2002, the City Council established the City of McHenry TIF. The TIF District encompasses the area
between John Street on the south and the Fox River on the east, Third Street on the west, and Pearl and
Broad Street on the north. The primary intent of creating the district was to revitalize the downtown with
a primary focus of generating funds to construct a Riverwalk.
Revenue for the district is generated by the collection of property taxes each year at an increment based
on the increase in assessed valuation of properties within the area since the district was created. The
excess tax revenue collected can only be used to fund projects located within the district.
2015/16 Goals and Objectives
■ Continue to aggressively work on encouraging additional development and redevelopment
projects in the TIF District.
■ Partner with private commercial real estate broker/agent to market the Miller Point property for
redevelopment.
Budget Summary
TAX INCREMENT FINANCING FUND
BUDGET SUMMARY
8 months
2013/14
2014/15
2014/15
2015/16
INCREASE
ACTUAL
BUDGET
ACTUAL
BUDGET
(DECREASE)
EXPENDITURES
CONTRACTUAL
$13,838
$0
$252,813
$0
$0
OTHER
311,017
315,450
238,390
304,095
(11,355)
CAPITAL
0
20,000
0
20,000
0
TOTAL
$324,855
$335,450
$491,203
$324,095
($11,355)
2014/15
2014/15
2015/16
2015/16
AMOUNT
PERCENTAGE
AMOUNT
PERCENTAGE
FUNDING SOURCE
PROPERTY TAX REVENUES
$400,000
99.8
$325,000
99.7
BOND PROCEEDS
0
0.0
0
0.0
OTHER
1,000
0.2
1,000
0.3
INTEREST EARNINGS
0
0.0
0
0.0
GRANTS
0
0.0
0
0.0
TOTAL
$401,000
100.0
$326,000
100.0
Budget Highlights
■ Property tax revenues generated by the TIF are expected to decrease from the prior year due to
the EAV going down.
84
MA rd a
HEART OF THE FOX MR1111
CAPITAL PROJECTS & DEBT SERVICE FUNDS
Recreation Center Construction Fund
Special Service Area (SSA) #4A
Capital Improvements Fund
Capital Equipment Fund
Debt Service Fund
85
Recreation Center Construction Fund
Purpose
The purpose of the Recreation Center Construction Fund is to account for project revenues and
expenditures in association with the construction of a proposed recreation center.
Fund Highlights -->
The City Council has long discussed the feasibility of constructing and operating a community recreation
center. Growing recreation programs and athletic leagues have outgrown existing facilities that are leased
and borrowed from other public entities and private organizations. Many of the school facilities in which
the City's Parks and Recreation Department provide recreation programs are becoming unavailable to the
City since school programs and enrollments are growing and the facilities are required for school
sponsored programs.
In March of 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
Construction 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. Likewise, the expenditure
of funds for the construction of the facility would be taken from the fund.
Beginning in 2013, the City Council began the process for analyzing the feasibility for the construction of
a combined family -oriented aquatics facility and the first phase of a recreation facility. While a combined
facility was not deemed financially feasible at this time, Council directed staff to undertake a process for
proceeding with the first phase of a recreation facility to focus on the fitness and group fitness space,
multi -use rooms, and Parks and Recreation office space.
In 2014 the City Council approved the retention of FGM Architects and HR Green to undertake
engineering and facility planning and design. In March of 2015, council approved a contract for
construction of the recreation center with Stuckey Construction Co., Inc., which will allow construction to
begin in late spring or early summer.
Budget Summary
RECREATION CONSTRUCTION FUND
BUDGET SUMMARY
2013/14 2014/15
2014/15
2015/16
INCREASE
ACTUAL BUDGET
ACTUAL
BUDGET
(DECREASE)
EXPENDITURES
CAPITAL
$82,619 $550,000
$230,481
$4,800,000
$4,250,000
OTHER
$0 $0
$0
$80,000
$80,000
TOTAL
$82,619 $550,000
$230,481
$4,880,000
$4,330,000
2014115
2014115
2015/16
2015/16
AMOUNT
PERCENTAGE
AMOUNT
PERCENTAGE
FUNDING SOURCE
TRANSFER - PARK DONATIONS
$0
0.0
$0
0.0
INTEREST EARNINGS
2,000
100.0
2,000
100.0
TOTAL
$2, 000
100.0
$2, 000
100.0
86
Recreation Center Construction Fund
Budget Highlights
■ The transfer from developer donations has been eliminated due to declining development of
residential homes.
■ Bond proceeds are not budgeted for $2,000,000 because they are expected to be received in
FY14-15.
■ Capital of $4,800,000 is budgeted to finish design and to construct the recreation facility.
87
Special Service Area #4A
Purpose
The purpose of Special Service Area (SSA) #4A Fund is to account for revenues and expenses associated
with annual debt service for the sewer project in the Lakewood Road Subdivision.
Fund Highlights -->
In July of 2003, the City of McHenry created a special service area to recover 75% of the costs of the
sewer project in the Lakewood Road Subdivision. A low-pressure sewer main was installed in 2004 on
Lakewood Road at the request of the 25 residents in the subdivision. The residents agreed to the
establishment of the SSA as a funding mechanism to pay for the project.
The creation of SSA #4A allows the City to levy a property tax on the property within the defined special
service area. The annual debt requirement is spread equally among the 25 lots rather than by the assessed
value of each property. The SSA was established for a period of 20 years for the purpose of recovering
75% of the costs of the project, in additional to adding the required capital development and sewer
connection fees. The City paid for the remaining 25% of the project.
The total amount to be repaid by the property owners in the SSA is approximately $327,200. This
includes the amounts for the sewer main, capital development and sewer connection fees less the City's
share of $87,800.
Budget Summary
SPECIAL SERVICE AREA #4 (LAKEWOOD SEWERS)
BUDGET SUMMARY
8 months
2013/14 2014/15
2014/15
2015116
INCREASE
ACTUAL BUDGET
ACTUAL
BUDGET
(DECREASE)
EXPENDITURES
OTHER
$11,231 $16,847
$11,231
$16,847
$0
TOTAL
$11,231 $16,847
$11,231
$16,847
$0
2014/15
2014115
2015116
2015116
AMOUNT
PERCENTAGE
AMOUNT
PERCENTAGE
FUNDING SOURCE
PROPERTY TAX
$16,847
100.0
$16,847
100.0
TOTAL
$16,847
100.0
$16,847
100.0
Budget Highlights
■ Annual revenues are budgeted at $16,847 based on an assessment per land parcel that is not to
exceed $723.41.
88
Capital Improvements Fund
Purpose
The purpose of the Capital Improvements Fund is to provide community facilities and services through a
planned program of infrastructure replacements and additions.
Fund Highlights
The Fund serves as the source of annual expenditures related to the City's five-year Capital
Improvements Program. The program is developed by setting priorities for infrastructure repair,
replacement, and expansion of various facilities.
Budget Summary
CAPITAL IMPROVEMENTS FUND
BUDGET SUMMARY
8 months
2013/14 2014115
2014/15
2015/16
INCREASE
BUDGET BUDGET
ACTUAL
BUDGET
(DECREASE)
EXPENDITURES
TOTAL
$1,758,757 $891,600
$898,262
$1,452,500
$554,238
TOTAL
$1,758,757 $891,600
$898,262
$1,452,500
$554,238
2014115
2014115
2015/16
2015/16
AMOUNT
PERCENTAGE
AMOUNT
PERCENTAGE
FUNDING SOURCE
INTEREST EARNINGS
$1,000
0.1
$1,000
0.1
DEVELOPER CONTRIBUTION
272,700
12.0
197,700
15.7
GRANTS
0
0.0
0
0.0
BOND PROCEEDS
0
0.0
0
0.0
PRIVATE DONATIONS
0
0.0
0
0.0
TRANSFER -ANNEXATION FUND
0
0.0
0
0.0
TRANSFER - GENERAL FUND
548,900
24.1
1,062,500
84.2
TRANSFER - MFT
0
0.0
0
0.0
TRANSFER-W/S
0
0.0
0
0.0
TRANSFER OTHER FUNDS
0
0.0
0
0.0
TRANSFER - PARK DONATIONS
0
0.0
0
0.0
TOTAL
$822,600
36.3
$1,261,200
100.0
Budget Highlights
■ The FY 2015/16 budget includes $85,000 for Municipal Building improvements that were first
budgeted and funded in FY 2014/15. $80,000 is also budgeted for the Municipal Center HVAC
replacement.
■ This budget also includes $850,000 for a street program and a signal at Dartmoor/Crystal Lake
Road. There will also be park, downtown lots, and downtown sidewalks improvements made for
a total of $132,500. These projects will be covered by a transfer from the general fund.
■ A Knox Drive Extension project is re -budgeted for $305,000; only a portion was paid during
FY14-15. The original budget of $350,000 was funded through a few sources; $57,300 from the
general fund, $75,000 from a developer escrow account, and $197,700 from private sources.
89
Capital Improvements Fund
Capital Improvements Fund
Recommended Projects
Fiscal Year 2015116
Amount
Municipal Building Improvements - rebudget
85,000
Street Program
450,000
Dartmoor/Crystal Lake Road Signal
400,000
Knox Drive Extension - rebudget
305,000
Municipal Center HVAC
80,000
Park Improvements
85,000
Downtown Lots
40,000
Downtown Sidewalks
7,500
Total Recommended Projects
$1,452,500
.6,
Capital Equipment Fund
Purpose
The purpose of the Capital Equipment Fund is to provide for equipment through a planned program of
infrastructure replacements and additions.
Fund Highlights—>
The Fund serves as the source of annual expenditures related to the City's five-year Capital
Improvements Program. The program is developed by setting priorities for equipment replacement.
Budget Summary
CAPITAL EQUIPMENT FUND
BUDGET SUMMARY
8 month
2013/14 2014/15
2014/15
2015/16
INCREASE
BUDGET BUDGET
ACTUAL
BUDGET
(DECREASE)
EXPENDITURES
CAPITAL
$503,521 $277,825
$243,227
$263,225
($14,600)
TOTAL
$503,521 $277,825
$243,227
$263,225
($14,600)
2014/15
2014/15
2015/16
2015/16
AMOUNT PERCENTAGE
AMOUNT
PERCENTAGE
FUNDING SOURCE
INTEREST EARNINGS
$0
0.0
$0
0.0
TRANSFER - GENERAL FUND
277,825
100.0
243,225
100.0
TRANSFER-W/S
0
0.0
0
0.0
TOTAL
$277,825
100.0
$243,225
100.0
Budget Highlights
Capital Equipment Fund
Recommended Projects
Fiscal Year 2015/16
Department
Amount
Finance/Utility Software - rebudget
Finance
$20,000
Building Permitting Software - 2nd payment
CED
19,475
Police Mobile Computers and hardware
PD
23,250
Streets Vehicle Replacement (2 trucks)
Streets
80,000
Police Vehicles and Equipment (1 squad, 1 specialty)
PD
80,500
Parks Pickup Truck
Parks
40,000
Total Recommended Projects
$263,225
a
Debt Service Fund
Purpose
The purpose of the Debt Service Fund is to account for bonded indebtedness incurred by the City's
General Fund, including all bond and interest payments.
Fund Highlights->
The Debt Service Fund is a non -operating budgetary unit. It does not provide direct service to the public
and is utilized for internal purposes only. Debt service payments (both principal and interest) are paid
from this fund. In turn, the General Fund, Tax Increment Finance Fund, and the Motor Fuel Tax (MFT)
Fund transfer adequate funds to the Debt Service Fund for debt service payments.
At the present time, there are six outstanding bonds for which the Debt Service Fund provides the
principal and interest payments.
In 2010, refunding bonds of $2.03 million were issued to retire the 2002 Alternate GO Bonds that were
used to fund drainage improvements. This saved the City approximately $110,000.
The City also issued $2.995 million in Alternate GO bonds to pay for the construction of Phase I of the
McHenry Riverwalk (Series 2006). The bonds will be repaid by using the property tax increment
generated by the Tax Increment Financing (TIF) District. The bond issue will reach full maturity in 2024.
Principal and interest payments on bonds issued to finance a signalization and traffic control project at the
intersection of Rt. 31 and Shamrock Lane are also paid by the Debt Service Fund. The bonds, amounting
to $455,000 and issued in fiscal year 1999, reach full maturity in 2011/12. Transfers from the Special
Service Area #IA Fund to the Debt Service Fund provide an amount adequate to meet principal and
interest obligations.
In addition, the City issued Series 2000 bonds for NET bonds to finance the remaining four years of the
street improvement program. The total amount of the bond issue was $3.5 million and the bonds were
paid off in FY09/10.
In 2007/08 the City issued $3.2 million in Alternate GO Bonds to fund the purchase of a Public Works
building. The bonds will be paid by transfers from the General and Water/Sewer Funds.
Series 2010B GO Bonds, principal value of $3,510,000, have been issued to cover future road
improvements. MFT funds will be used to cover these expenses.
In FY2012/13 the City issued $3,100,000 in GO Bonds. $850,000 was to cover roof and HVAC repairs
at the Public Works facility, $2,250,000 was to cover rehabilitation at Water Treatment Plant #2.
In 2013, refunding bonds of $1.985 million were issued to retire the 2005 Alternate GO Bonds that were
used to fund drainage and sewer improvements. This saved the City approximately $100,000. In addition
to the refunding, $415,000 in new money was issued to cover additional repairs to the roof and HVAC
system at the Public Works facility.
The City's current bond rating is Aa2 by Moody's Investor Services.
92
Debt Service Fund
Budget Summary
DEBT SERVICE FUND
BUDGET SUMMARY
8 month
2013/14
2014/15
2014/15
2015/16
INCREASE
ACTUAL
BUDGET
ACTUAL
BUDGET
(DECREASE
EXPENDITURES
OTHER $1,518,569
$1,558,350
$1,017,770
$1,556,555
($1,7
TOTAL $1,518,569
$1,558,350
$1,017,770
$1,556,555
($1,7
2014/15
2014/15
2015/16
2015/16
AMOUNT
PERCENTAGE
AMOUNT
PERCENTAGE
FUNDING SOURCE
TRANSFER - GENERAL FUND
$692,826
45.6
$729,959
46.9
TRANSFER - SSA #1A FUND
$0
0.0
$0
0.0
TRANSFER - MFT FUND
$403,659
26.6
$400,746
25.7
TRANSFER - TIF FUND
$240,950
15.8
$239,595
15.4
TRANSFER - WATER/SEWER
$108,137
7.1
$115,866
7.4
TRANSFER - ANNEXATION FUND
$35,000
2.3
$35,000
2.2
BOND INTEREST REBATE
$39,490
2.6
$35,389
2.3
INTEREST EARNINGS
$150
0.0
$150
0.0
TnTAi
$1,520,212
100.0
$1,556,705
100.0
Budget Highlights
■ In FY 11/12 through FYI 5/16, the City transferred $35,000 from the Annexation Fund to cover a
portion of the debt service for the bonds used to purchase the Public Works Facility.
93
RA rd a
HEART OF THE FOX MR1111
ENTERPRISE FUNDS
Public Works - Water
Public Works - Wastewater
Public Works - Utility Division
Capital Development Fund
Utility Improvements Fund
Marina Operations Fund
94
Public Works — Water Division
Mission Statement
The City of McHenry Water Division's first order of responsibility is to provide a safe and reliable supply
of high quality potable water. The water produced must meet or exceed all federal and state health
standards. An unyielding commitment to this mission will continue to provide a high level of customer
service to the consumer and ensures public safety to the community.
Primary Functions ---> The primary functions of the Water Division are the following:
■ Water Production maintains four iron removal plants served by eight active wells and two
temporary chemical feed buildings served by two emergency standby wells.
■ Maintenance of water storage which consists of four elevated water storage tanks with a
combined storage capacity of 2,750,000 gallons.
■ Maintenance of one booster pumping station.
■ Water metering provides meter readings to the Finance Department for utility billing and
maintains an ongoing meter replacement program of approximately 7,500 water meters.
■ Respond to Joint Utility Locate Information for Excavators (J.U.L.I.E.) requests.
2014/15 Accomplishments
■ Met or exceeded all State and Federal Drinking water regulations.
■ Completed IEPA Stage 2 DBP Rule sampling. Resulting in reduced monitoring in 2015.
■ Received 19"' consecutive annual fluoride award for the Illinois Department of Health.
■ Responded to over 3,500 JULIE locate requests for sewer and water.
■ Water Meter Testing Program - Changed 4 large water consumer's meters due to inaccuracies.
■ Implemented Phase 2 of the GIS system to include real time corrections, mobile application
access, and for other departments the ability to include data.
■ Watermain /service abandonment and upgrades as part of the Route 120/Route 31 Intersection
Improvement Project.
2015/2016 Goals and Objectives
■ Continue to meet or exceed all Federal and State drinking water regulations.
■ Maintain the high level of customer service City residents and businesses have come to expect.
■ Work closely with the new Utility Division to help make a successful transition with respect to
each Divisions responsibilities
■ Maintain a common goal with other City staff and organizations outside of the City to serve our
community.
■ Capital improvement program includes the following projects:
• Obtain approval for repainting of Tower #3
• Rt. 31/Miller Rd/Bull Valley Rd, watermain relocation
• Aid the USEPA in completing the Eastside Watermain
"South Leg"
95
Public Works — Water Division
• Continue the water meter/transponder replacement program incorporating new utility billing
software.
• Extend CIP outlook 5-10 years
• Water Treatment Plant 4 exterior siding replacement
• Vehicle replacement/addition
Budget Summary
PUBLIC WORKS DEPARTMENT - WATER DIVISION
BUDGET SUMMARY
8 month
2013/14
2014/15
2014/15
2015/16
INCREASE
ACTUAL
BUDGET
ACTUAL
BUDGET
(DECREASE)
EXPENDITURES
PERSONNEL
$1,006,696
$1,032,839
$640,659
$534,258
($498,581)
CONTRACTUAL
269,772
317,970
144,082
300,970
(17,000)
SUPPLIES
187,309
248,750
181,297
133,900
(114,850)
OTHER
932,265
1,049,011
319,688
1,721,976
672,965
CAPITAL EXPENDITURES
0
0
0
0
0
TOTAL
$2,396,042
$2,648,570
$1,285,726
$2,691,104
$42,534
INCREASE
PERSONNEL AUTHORIZATION
2012/13
2013/14
2014/15
2015/16
(DECREASE)
TOTAL
9.50
9.50
9.50
9.50
0.00
2014/15
2014/15
2015/16
2015/16
BUDGET
PERCENTAGE
BUDGET
PERCENTAGE
FUNDING SOURCE
WATER SALES
$2,167,285
94.4
$2,167,285
94.4
PENALTIES
52,000
2.3
52,000
2.3
METER SALES
8,000
0.3
8,000
0.3
INTEREST INCOME
2,000
0.1
2,000
0.1
MISCELLANEOUS INCOME
60,200
2.6
60,200
2.6
WATER HOOK UP FEES
6,000
0.3
6,000
0.3
TOTAL
$2,295,485
100.0
$2,295,485
100.0
Budget Highlights
■ Personnel expenses decrease overall due to the transfer of expenses to the utility fund. Increases
were still budgeted for the bargaining union contract costs, non -bargaining unit merit- based
increases and retirement and insurance costs.
■ Other expenses increase due to a transfer of revenue to cover the Utility Division expenses.
■ Transfers for Utility Improvement Fund and Capital Equipment Fund have been eliminated for
the fiscal year.
96
Public Works - Water Division
Fixed Assets
Fixed assets in 2014/15 for the Water Division total $28,165.
Water Fund
Recommended Projects
2015/16Fiscal Year
Total
2015/16
Project
Finance/Utility Billing Software - rebudget
$8,000
$8,000
Water Meter Replacements
$50,000
$50,000
Water Tower Maintenance
$300,000
$300,000
Bull Valley Water Project
585,000
585,000
Total
$943,000
$943,000
Personnel Review
Water Superintendent
Plumbing Inspector
Water Operator II
Water Maintenance Worker
Part-time (Seasonal)
Sickday Payback Incenti\e
Longe\Aty Bonus
Salary Adjustment
Subtotal
Benefits
IMRF Retirement
FICA/Medicare
Health
Dental
Life Insurance
Uniform Allowance
Subtotal
ks Department - Water DhAsion
Personnel Schedule
2014/15 Budget
2015/16 Budget
Change
Dollars
Number of
Dollars
Number of
Dollars
Number of
Grade
Budgeted
Employees
Budgeted
Employees
Budgeted
Employees
E-19
$88,031
1.00
$88,031
1.00
$0
0.00
N-12
33,448
0.50
33,448
0.50
0
0.00
U-E
135,879
2.00
138,597
2.00
2,718
0.00
U-C
60,898
1.00
62,116
1.00
1,218
0.00
11,500
11,500
0
14,000
14,000
0
2,223
1,115
(1,108)
1,454
0
(1,454)
3,935
4,014
79
351,368
4.50
352,821
4.50
1,453
0.0c
45,882
26,880
94,452
1,472
39
311
1,550
170,586
$521,954
46,078
26,991
104,933
1,544
30
311
1,550
181,437
$534,258
Note: E = Exempt; N = Non -Exempt; U = IUOE Local #150 Collectke Bargaining Unit Position
196
111
10,481
72
(9)
0
0
10_851
$12,304
97
Public Works Department — Wastewater Division
Mission Statement
It is the mission of the Public Works Department Wastewater Division to protect public health and the
environment by treating sewage to meet stringent environmental standards prior to discharge.
Primary Functions --> The primary functions of the Wastewater Division are the following:
■ Provides for the operation and maintenance of two wastewater treatment plants and the care and
upkeep of 18 lift stations.
■ Maintain records on the amount of wastewater treated and the quality of water discharged to the
Fox River and report this information to the Illinois Environmental Protection Agency in
compliance with NPDES permits.
FY 2014/15 Accomplishments
■ Reroofmg of the office/laboratory, screen building and the maintenance building at the SWWTP.
■ The replacement of the gates on the chlorine contact tank at the SWWTP and the
replacing/upgrading of the generator automatic transfer switch at the CW WTP. Both of these
projects were done using the design/build approach. Both projects came in under budget.
■ The Wastewater and Water Divisions have assisted one another on multiple projects over the
course of the last year, from helping to repair several water main breaks to rebuilding manholes.
In addition, Wastewater Division employees continued to work with Water Division employees
to instruct them on rebuilding pumps and motors.
■ The Wastewater Division treated more than 1.3 billion gallons of wastewater in 2014.
2015/2016 Goals and Objectives
■ Continue to meet or exceed the NPDES permit requirements and regulations as set forth by the
Illinois Environmental Protection Agency.
■ Maximize the performance of both treatment plants in an effort to operate as efficient as possible.
■ Continue to investigate ways to operate the treatment plants in the most cost effective manner.
■ Implementation of the 2015/16 Capital Improvement Program which includes the expansion of
the South Wastewater Treatment Plant (SWWTP) ; a sanitary sewer pumping station at Central
Wastewater Treatment Plant (CWWTP); and the completion of the force main connecting
CWWTP and SWWTP to accommodate the consolidation of the wastewater treatment plants
98
Public Works Department — Wastewater Division
Budget Summary
PUBLIC WORKS DEPARTMENT - WASTEWATER DIVISION
BUDGET SUMMARY
PERSONNEL
CONTRACTUAL
SUPPLIES
OTHER
CAPITAL
(PERSONNEL AUTHORIZATION
TOTAL
FUNDING SOURCE
SEWER SALES
PENALTIES
SEWER CONNECTIONS
INTEREST INCOME
DEBT SERVICE FEE
MISC INCOME
TOTAL
Budget Highlights
2013114
ACTUAL
2014/15
BUDGET
8 months
2014/15
ACTUAL
2015/16
BUDGET
INCREASE
(DECREASE)
$993,941
$1,023,550
$611,882
$799,981
($223,569)
843,757
880,610
595,658
932,910
52,300
281,249
265,500
157,940
235,000
(30,500)
1,620,035
1,686,874
439,446
2,278,594
591,720
4,265
0
242,718
0
0
$3,743,247
$3,856,534
$2,047,644
$4,246,485
$389,951
INCREASE
2010/11 2013/14 2014115 2015/16
10.00 10.00 10.00 10.00
2014/15
2014/15
2015116
2011/12
BUDGET
PERCENTAGE
BUDGET
PERCENTAGE
$2,594,800
85.5
$2,594,800
85.5
56,000
1.8
56,000
1.8
8,000
0.3
8,000
0.3
2,000
0.1
2,000
0.1
401,000
13.2
401,000
13.2
81,048
2.7
81,048
2.7
$3,142, 848
103.6
$3,142, 848
103.6
■ Personnel expenses decrease overall due to the transfer of expenses to the utility fund. Increases
were still budgeted for the bargaining union contract costs, non -bargaining unit merit- based
increases and retirement and insurance costs.
■ Other expenses increase $200,000 due to capital purchases that are budgeted through the
depreciation line item. A transfer to the Utility Division has been budgeted to cover expenses.
Fixed Assets
Fixed assets in 2015/16 for the Sewer Division total $698,000.
..
Public Works Department - Wastewater Division
Sewer Fund
Recommended Projects
2015116 Fiscal Year
Finance/Utility Billing Software - rebudget
Aquatech Sewer Collection System Maintenance Truck
Fieldstone Lift Station
(Total
Personnel Review
Public Works Department - Wastewater
Personnel Schedule
Total
2015/16
Project
$8,000
$8,000
$360,000
$360,000
$330,000
$330,000
$698, 000 $698, 000 1
2014/15 Budget
2015/16 Budget
Change
Dollars
Number of
Dollars
Number of
Dollars
Number of
Salaries
Grade
Budgeted
Employees
Budgeted
Employees
Budgeted
Employees
Sewer Plant Superintendent
E-17
$88,031
1.00
$88,031
1.00
$0
0.00
Asst. Sewer Plant Supt.
E-14
70,756
1.00
69,588
1.00
(1,168)
0.00
Wastewater Treatment Op II
U-E
264,913
4.00
271,800
4.00
6,887
0.00
Wastewater Mechanic
U-E
67,470
1.00
71,578
1.00
4,108
0.00
Wastewater Treatment Op I
U-D
0
0.00
0
0.00
0
0.00
Seasonal Employees
5,000
5,000
0
Overtime
40,000
40,000
0
Sickday Payback Incentive
1,417
1,445
28
Salary Adjustment
10,008
10,808
800
Longevity Bonus
0
0
0
Subtotal
547,595
7.00
558,250
7.00
10,655
0.00
IMRF Retirement
95,935
74,689
(21,246)
FICA/Medicare
54,746
42,706
(12,040)
Health
152,001
120,181
(31, 820)
Dental
810
834
24
Life Insurance
690
483
(207)
Vision
136
138
2
Uniform Allowance
3,600
2,700
(900)
Subtotal
307,918
241,731
(66,187)
Total $855, 513 $799, 981 ($55, 532)
Note: E = Exempt; N = Non -Exempt; U = IUOE Local #150 Collective Bargaining Unit Position
100
Public Works — Utility Division
Mission Statement
The City of McHenry Utility Division's commitment is to provide the highest level of customer service to
its residents and consumers. This includes the maintenance of the water distribution and sanitary sewer
collection systems with a focus of enhancing public safety within the community.
Primary Functions --> The primary functions of the Utility Division are the following:
■ Clean, maintain and repair the sanitary collection system
■ Maintain and repair water distribution system
■ Update GIS mapping
2014/15 Accomplishments
■ Successful two month trial run of newly formed Utility Division
2015/2016 Goals and Objectives
■ Clean and televise the sanitary collection system.
■ Reduce inflow and infiltration in collection system.
■ Continue to keep distribution and collection systems well maintained.
■ Work with Water and Wastewater Division to ensure smooth transition for the Utility Division.
■ Capital improvement program includes the following projects:
O Rt. 31/Miller Rd/Bull Valley Rd, watermain relocation
o Aid the USEPA in completing the Eastside Watermain
"South Leg"
Sum
PUBLIC WORKS DEPARTMENT - WATER DIVISION
BUDGET SUMMARY
8 month
2013/14
2014/15
2014/15
ACTUAL
BUDGET
ACTUAL
EXPENDITURES
PERSONNEL
$0
$0
$0
CONTRACTUAL
0
0
0
SUPPLIES
0
0
0
OTHER
0
0
0
CAPITAL EXPENDITURES
0
0
0
PERSONNEL AUTHORIZATION 2012/13 2013/14 2014/15
TOTAL 0.00 0.00 0.00
2014/15 2014/15
BUDGET PERCENTAGE
FUNDING SOURCE
WATER DEPARTMENT TRANSFER $0
SEWER DEPARTMENT TRANSFER 0
TOTAL $0
2015/16 INCREASE
BUDGET (DECREASE)
$839,935 $835,059
35,700 35,700
170,350 170,350
0 0
0 0
$1,045,985 $1,041,109
INCREASE
2015/16 (DECREASE)
8.00 8.00
2015/16 2015/16
BUDGET PERCENTAGE
$664,822 63.4
381,163 36.6
$1, 045, 985 100.0
101
Public Works - Utility Division
Budget Highlights
■ The Utility Division was created during FY14-15 and all expenses were previously within the
water and sewer divisions.
Personnel Review
Public Works Department - Util
Personnel Schedule
2014/15 Budget
Dollars
Number of
Salaries
Grade
Budgeted
Employees
Asst. Water Superintendent
E-16
78,258
1.00
Water Operator I
U-E
136,002
2.00
Water Maintenance Worker
U-C
63,341
1.00
Water Meter Maintenance Worker
U-C
46,247
1.00
Wastewater Maintenance Worker
U-C
168,037
3.00
Overtime
35,000
Sickday Payback Incentive
0
Longevity Bonus
1,293
Salary Adjustment
8,273
Subtotal
536,451
8.00
Benefits
2015116 Budget
Change
Dollars
Number of
Dollars
Number of
Budgeted
Employees
Budgeted
Employees
82,170
1.00
3,912
0.00
141,448
2.00
5,446
0.00
111,780
2.00
48,439
1.00
0
0.00
(46,247)
(1.00)
175,361
3.00
7,324
0.00
35,000
0
1,768
1,768
0
(1,293)
10,626
2,353
558,153
8.00
21,702
0.00
IMRF Retirement
72,421
75,351
2,930
FICA/Medicare
41,039
42,699
1,660
Health
132,195
158,981
26,786
Dental
981
1,029
48
Vision
26
20
(6)
Life Insurance
552
552
0
Uniform Allowance
3,150
3,150
0
Subtotal
250,363
281,782
31,419
Total
$786, 814
$839, 935
$53,121
Note: E = Exempt; N = Non -Exempt; U = IUOE Local #150 Collective Bargaining Unit Position
102
Capital Development Fund
Purpose
The purpose of the Capital Development Fund is to construct, expand and extend the water and
wastewater systems to accommodate new development and growth in the community through the
imposition of capital development fees on new residential and non-residential development.
Fund Highlights —>
Capital development fees are charged for new residential and non-residential development to ensure that
adequate funds are available to provide a safe and adequate water supply and distribution system and an
adequate wastewater treatment system in the City of McHenry. The impact of new development upon
the City's infrastructure requirements, particularly wastewater treatment plant capacity, water pumping
capacity, and water storage capacity, require the collection and accumulation of funds to provide a means
of financing costly improvements to water and wastewater treatment facilities when existing capacity is
exceeded. On each May 1" of each year, the residential and on -residential capital development fees are
adjusted by the percentage change in the Engineering News Record Construction Cost Index subject to a
review by the City Council.
Budget Summary
CAPITAL DEVELOPMENT FUND
BUDGET SUMMARY
8 month
2013/14 2014/15
2014/15
2015/16
INCREASE
ACTUAL BUDGET
ACTUAL
BUDGET
(DECREASE)
EXPENDITURES
OTHER
$228,000 $0
$0
$0
$0
TOTAL
$228,000 $0
$0
$0
$0
2014/15
2014/15
2015/16
2011/12
AMOUNT
PERCENTAGE
AMOUNT
PERCENTAGE
FUNDING SOURCE
INTEREST EARNINGS
$2,000
1.6
$2,000
1.2
CAPITAL DEVELOPMENT FEES
120,000
98.4
170,000
98.8
TOTAL
$122,000
100.0
$172,000
100.0
Budget Highlights
■ Revenues are increased slightly due to past trends.
■ Funds are not budgeted to be transferred to the Utility Improvement Fund for improvements.
103
Utility Improvements Fund
Purpose
The Utility Improvements Fund is an enterprise fund used to account for capital projects that improve or
expand the capacity of the Water and Wastewater utilities.
Fund Highlights—>
The Utility Improvements Fund was created to provide a single fund to record revenues and expenses for
capital constructions projects for the Water and Wastewater utilities. Transfers from the Water/Sewer and
Capital Development funds are the main sources of revenue for the fund. Expenses are restricted to
design engineering, construction, and construction engineering costs for the approved capital projects.
2014/15 Accomplishments
2015/16 Goals and Objectives
■ Reroofing design and construction on the screen building, the office /lab/locker room building
and the maintenance building at the South Wastewater Treatment Plant.
■ Final design engineering on the South Wastewater Treatment Plant expansion and
decommissioning of the Central Wastewater Treatment Plant.
■ Construction of the electrical upgrades at the Central Wastewater Treatment Plant and the
replacement of the chlorine contact tank gates at the South Wastewater Treatment Plant.
■ Continue the Sanitary Sewer Rehabilitation program to reduce inflow and infiltration.
Budget Summary
UTILITY IMPROVEMENTS FUND
BUDGET SUMMARY
8 month
2013114 2014/15
2014115
2015/16
INCREASE
ACTUAL BUDGET
ACTUAL
BUDGET
(DECREASE)
EXPENDITURES
CAPITAL
$0 $1,594,458
$1,362,192
$0
($1,594,458)
TOTAL
$0 $1,594,458
$1,362,192
$0
($1,594,458)
2014/15
2014/15
2015/16
2015/16
AMOUNT PERCENTAGE
AMOUNT
PERCENTAGE
FUNDING SOURCE
DEVELOPER CONTRIBUTIONS
$0
0.0
$0
0.0
BOND PROCEEDS
0
0.0
0
0.0
INTERGOVERNMENTAL REVENUES
0
0.0
0
0.0
TRANSFER - ANNEXATION FUND
0
0.0
0
0.0
TRANSFER - WATER/SEWER FUND
0
0.0
0
0.0
TRANSFER - SSA #4
16,847
100.0
16,847
100.0
TRANSFER - CAPITAL DEVELOPMENT 0
0.0
0
0.0
TOTAL
$16,847
100.0
$16,847
100.0
104
Utility Improvements Fund
Budget Highlights
■ Actual expenditures in the fund are nominal because accounting standards require all water and
wastewater projects to be recorded as assets that are eventually expensed as depreciation in the
Water/Sewer Fund.
Water and Sewer Improvement Projects
Utility Improvements Fund
Recommended Projects
2015/16 Fiscal Year
Total
2015/16
Project
Consolidation of CWWTP/SWWTP $7,000,000
$8,000,000
Total $7,000,000
$8,000,000
105
Marina Operations Fund
Purpose
The Marina Operations Fund is an enterprise fund that maintains a 60-slip marina on the Fox River.
Fund Highlights->
The City acquired the marina in 2000 because, at the time, the site was needed to expand the Central
Wastewater Treatment Plant. After the property was acquired, it was determined that the wastewater
treatment plan facility could not be expanded in the existing location. The marina site will be developed
when the wastewater treatment plant is relocated.
Budget Summary
EXPENDITURES
CONTRACTUAL
OTHER
FUNDING SOURCE
RENTAL INCOME
INTEREST EARNINGS
TOTAL
Budget Highlights
■ No significant changes.
MARINA OPERATIONS FUND
BUDGET SUMMARY
2013/14 2014/15
ACTUAL BUDGET
$4,850 $20,000
30,576 26,000
8 month
2014/15
2015116 INCREASE
ACTUAL
BUDGET (DECREASE)
$3,094
$20,000 $0
24,982
26,000 0
$28,076
$46,000 $0
2014/15 2014/15 2015/16 2015/16
AMOUNT PERCENTAGE AMOUNT PERCENTAGE
$50,000 97.1 $50,000 97.1
1,500 2.9 1,500 2.9
$51,500 100.0 $51,500 100.0
106
4
I 0A rim
HEART OF THE Fox RIVER
INTERNAL SERVICE FUNDS
Employee Insurance Fund
Risk Management Fund
Information Technology Fund
107
Employee Insurance Fund
Purpose
The City of McHenry recognizes health insurance benefits are an important component of an employee's
total compensation package, therefore, the purpose of the employee insurance fund is to finance and
account for expenditures incurred to provide health insurance benefits to the employees.
Fund Highlights --*
The current health insurance plan provided to employees offers a choice between a PPO (Preferred
Provider Organization) and HMO (Health Maintenance Organization). Providing employees a choice in
plan type allows employees some flexibility based on preference and affordability. In addition,
employees receive dental and vision benefits that provide participants similar coverage to that provided
under the previous self -insured health and dental plans. All Local 150 employees are required to be on
the Union Insurance as per their union contract, which is paid 100% by the city.
Budget Summary
EMPLOYEE INSURANCE FUND
BUDGET SUMMARY
8 month
2013/14
2014/15
2014/15
2015/16
INCREASE
ACTUAL
BUDGET
ACTUAL
BUDGET
(DECREASE)
EXPENDITURES
INSURANCE PREMIUMS
2,246,101
2,433,597
1,666,049
2,732,687
299,090
CLAIMS
108,400
112,000
32,913
112,000
0
MISCELLANEOUS EXPENSE
3,922
5,000
1,320
5,000
-
TOTAL
$2,358,423
$2,550,597
$1,700,282
$2,849,687
$299,090
2014/15
2014/15
2015116
2015/16
AMOUNT
PERCENTAGE
AMOUNT
PERCENTAGE
FUNDING SOURCE
PREMIUMS/CONTRIBUTIONS
$348,801
13.6
357,072
12.5
TRANSFERS - EMPLOYER SHARE
2,208,714
86.4
2,497,143
87.5
TOTAL
$2,557,515
100.0
$2,854,215
100.0
Budget Highlights
■ Health and dental coverage is provided for approximately 87 existing employees and 19
individuals that are retirees or on disability. Approximately 36 employees represented by Local
150 are expected to elect to obtain coverage from their labor union, with the City paying for
100% of the coverage.
■ For the 2015/16 budget year the fully insured premiums have increased on average by 12.3%.
Employee contributions have also been increased to help cover a portion of the large premium
increase.
■ The deficit that was in the Health Insurance Fund was completed eliminated as of the end of
FY12/13.
108
Risk Management Fund
Purpose
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.
Fund Highlights-->
The City of McHenry is exposed to various risks related to torts; theft of, damage to, and the destruction
of assets; errors and omissions; injuries to employees; and natural disasters. The Insurance Fund funds
the risk management program which attempts to limit the exposure to these risks and reduce the
frequency and severity of losses.
The City is a member of the McHenry County Municipal Risk Management Agency (MCMRMA), a
public entity risk pool through which property, general liability, automobile liability, crime, excess
property, excess liability, and boiler and machinery coverage is provided.
The relationship between the City and MCMRMA is defined through a contractual obligation approved
by both the City Council and the MCMRMA executive board. The City is obligated to make all annual
and supplementary contributions for MCMRMA, report claims and losses on a timely basis, cooperate
with MCNIlZMA, claims adjusters and attorneys in claims investigation and settlement, and to follow risk
management procedures as outlined by MCMRMA. MCMRMA is obligated to administer the self-
insurance program as well as the purchased insurance program, provide risk management services
including the defense and settlement of claims, and provide a loss prevention program to identify and
reduce loss exposures.
Revenues for the fund are generated by service charges to the City's general fund and non -general fund
operating units. The service charges to the General Fund are provided for the most part by the liability
insurance portion of the property tax levy. Incidental revenues from interest earnings and reimbursements
from MCMRMA are also occasionally posted to the fund.
109
Risk Management Fund
Budget Summary
RISK MANAGEMENT FUND
BUDGET SUMMARY
8 months
2013/14
2014/15
2014/15
2015/16
ACTUAL
BUDGET
ACTUAL
BUDGET
EXPENDITURES
CONTRACTUAL $651,966
$652,500
$552,195
$664,371
OTHER 21,146
24,835
14,159
24,835
TnTAi $673,112
$677,335
$566,354
$689,206
FUNDING SOURCE
INTEREST EARNINGS
PROPERTY DAMAGE REIMBURSEMENTS
PURCHASE OF SERVICE - GENERAL FUND
PURCHASE OF SERVICE - WATER/SEWER FUND
PURCHASE OF SERVICE - IT FUND
TOTAL
2014/15 2014/15 2015116
AMOUNT PERCENTAGE AMOUNT
$200
0.0
$200
30,000
3.9
30,000
578,305
74.3
578,305
161,150
20.7
161,150
8,345
1.1
8,345
$778,000
100.0
$778,000
INCREASE
$11,871 I
0
2015/16
PERCENTAGE
Budget Highlights
■ The budgeted amount for the insurance premium paid to MCMRMA increases slightly.
0.0
3.9
74.3
20.7
1.1
100.0
Im
Information Technoloi!v Fund
Mission Statement
The mission of the Information Technology Department is to provide the most innovative, highest quality
technology -based services, in a cost-effective manner, and to facilitate the achievement of goals and
objectives of each of the City's departments.
Primary Functions -> The primary functions of the Information Technology staff include the following:
■ Provide effective technology support for computer systems, web -based applications, voice,
video, and integrated data services to all City departments.
■ Promote and facilitate the integration of technology to effectively meet the overall mission of
the City using collaborative efforts through planning, training, and consulting with all
departments and service providers.
■ Develop, enhance, and manage the City's enterprise network to provide high speed,
transparent, and highly functional connectivity to all resources.
■ Develop and maintain highly effective, reliable, secure, and innovative information systems
to support each department's functions.
■ Facilitate the collection, storage, security, and integrity of electronic data while ensuring
appropriate access
■ Promote new uses of technology within the organization.
2014/15 Accomplishments
■ Add Camera Hardware Components of our Video Surveillance System
IT Staff plans to add cameras to our current system. New cameras will be placed in both
stairwells, a new camera system, with on/off controls will be installed in the police interview
room and the camera currently in the interview room will be installed on the second floor in the
area of the elevator. (Funding: 5110)
■ Installation of a Physical Server at Public Works Facility for `Hot' Data Backup
This item will provide the server and storage necessary to create a `live' backup of our systems at
a remote location. IT will be using virtual servers to complete this operation. (Funding: 6110,
6270)
■ Installation of `Building -Wide' Wireless Network at the Municipal Center
This is a project that IT was asked to examine in September of 2013 at which time it was
determined to be too costly. Currently there are three separate wireless networks serving the
Municipal Center. The purpose of this project is to consolidate these systems into one and to
provide better in -building coverage than is currently provided. (Funding: 6270)
2015/16 Goals and Objectives
■ Replace Virtual Machine Host Servers and Attached Cluster Storage
This IT Dept. project will replace aging (5 years old) servers and data storage. These systems are
at the heart of Police, Finance, Community & Economic Development, and Public Works. New
demands on this old equipment has brought it to its maximum capacity. The new equipment will
be installed with sufficient processing and storage capacity to meet the current needs and future
demands. It will have additional growth capacity beyond the initial installed capacity.
111
Information Technology Fund
■ Replacement of workstations (PCs)
Every year it is necessary that we replace a portion of our PCs. We have over 100 PCs that we
maintain. While many organizations replace their PCs every 3 to 4 years, we are able to get from
5 to 6 years by repurposing older PCs and parts to the less demanding areas within our
organization.
■ Installation of infrastructure for Municipal Recreation Center
In 2015, the City will be breaking ground on a new recreation center. This project will involve: 1)
directional boring and installation of Fiber Optic and Phone cabling, 2) Installation of
surveillance cameras and cabling, 3) installation of network data switches to accommodate
approx. 10 PC users, and 4) installation of automatic door locks and monitoring.
■ Install New Video Surveillance Storage Unit
The current storage unit that holds the City Hall security video has reached a critical point and
needs to be replaced. We repurposed the current device to squeeze additional years from the unit.
This past year, we have had 2 hard drives fail on the unit causing loss of stored video. The current
unit is 7 years old. The amount of video stored does not lend itself to backup because the amount
of data could not be backed up in an efficient way or timeframe.
Budget Summary
INFORMATION TECHNOLOGY FUND
BUDGET SUMMARY
8 month
2013/14
2014/15
2014/15
2015/16
INCREASE
ACTUAL
BUDGET
ACTUAL
BUDGET
(DECREASE)
EXPENDITURES
PERSONNEL
$198,441
$205,678
$118,326
$212,549
$6,871
CONTRACTUAL
104,432
111,374
40,466
132,806
21,432
SUPPLIES
37,108
62,200
54,193
62,400
200
CAPITAL EXPENDITURES
0
0
0
0
0
OTHER
48,596
48,345
5,563
53,345
5,000
TOTAL
$388,577
$427,597
$218,548
$461,100
$28,503
INCREASE
PERSONNEL AUTHORIZATION
2012/13
2013/14
2014115
2015/16
(DECREASE)
TOTAL
2.00
2.00
2.00
2.00
0.00
2014/15
2014/15
2015/16
2015116
AMOUNT
PERCENTAGE
AMOUNT
PERCENTAGE
FUNDING SOURCE
PURCHASE SERVICE - GENERAL FUND
$406,730
95.1
$434,144
94.2
PURCHASE SERVICE - WATER/SEWER
20,867
4.9
26,957
5.8
TOTAL
$427,597
100.0
$461,101
100.0
Ism
Information Technology Fund
Budget Highlights
■ Personnel costs increase due to providing non -bargaining unit employees merit -based increases as
well as increases to retirement and insurance costs.
■ Contractual services increase $21,432 due to increased software maintenance costs.
■ Other expenses increase $5,000 due to depreciation expenses which are directly related to the
purchase of capital.
Fixed Assets
A host server and storage replacement units are budgeted in the amount of $51,768 for FY15/16.
Personnel Review
Salaries
IT Specialist
Sickday Buyback Incentive
Salary Adjustment
Longevity Bonus
IMRF Retirement
FICA/Medicare
Health Vision
Life Insurance
Uniform Allowance
Subtotal
ITotal
Information Technology Fund
Personnel Schedule
2014/15 Budget
Dollars Number of
Grade Budgeted Employees
N-14 $142,318 2.00
1,200
0
1,195
144,713 2.00
19,402
10,994
28,734
1,244
138
0
60,512
$205,225
2015116 Budget
Dollars Number of
Budgeted Employees
$142,318 2.00
1,400
3,558
0
147,276 2.00
19,882
11,267
32,692
1,294
138
0
65,273
$212,549
Change
Dollars Number of
Budgeted Employees
$0 0.00
200
3,558
(1,195)
2,563 0.00
480
273
3,958
50
0
0
4,761
$7, 324
113
I 0A rim
HEART OF THE Fox RIVER
FIDUCIARY FUNDS
Employee Flexible Spending Fund
Developmental Escrow Fund
Retained Personnel Fund
Revolving Loan Fund
Police Pension Fund
ME
Employee Flexible Spending Fund
Purpose
It is the mission of the Employee Flexible Spending Fund (Flex Fund) to account for employee pre-tax
medical spending accounts that are offered as a benefit to City employees.
Fund Highlights -->
Under 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, he or she can
get reimbursed from his 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.
Budget Summary
EMPLOYEE FLEXIBLE SPENDING HEALTH FUND
BUDGET SUMMARY
8 months
2013/14 2014/15
2014/15
2015/16
INCREASE
ACTUAL BUDGET
ACTUAL
BUDGET
(DECREASE)
EXPENDITURES
OTHER
$82, 770 $80,000
$26, 839
$80,000
$0
TOTAL
$82, 770 $80,000
$26, 839
$80,000
$0
2014/15
2014/15
2015/16
2015/16
AMOUNT PERCENTAGE
AMOUNT
PERCENTAGE
FUNDING SOURCE
INTEREST EARNINGS
$0
0.0
$0
0.0
PARTICIPANT CONTRIBUTIONS 80,000
100.0
80,000
100.0
TOTAL
$80,000
100.0
$80,000
100.0
Budget Highlights
■ No significant changes.
ism
Developmental Escrow Fund
Purpose
The purpose of the Development Escrow Fund is to segregate developer funds held by the City to ensure
the completion of specific public improvements such as sidewalks and traffic signals.
Fund Highlights->
The Developmental 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, other governments or funds. The
Developmental 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 the results of operations.
Budget Summary
DEVELOPMENTAL ESCROW FUND
BUDGET SUMMARY
8 months
2013/14 2014/15 2014/15
2015/16
INCREASE
ACTUAL BUDGET ACTUAL
BUDGET
(DECREASE)
EXPENDITURES
OTHER
$0 $76,000 $0
$0
($76,000)
CAPITAL
0 0 0
0
0
TOTAL
$0 $0 $0
$0
($76,000)
2014/15 2014/15
2015/16
2015/16
AMOUNT PERCENTAGE
AMOUNT
PERCENTAGE
FUNDING SOURCE
INTEREST EARNINGS
$500 100.0
$500
100.0
DEVELOPER DEPOSITS
0 0.0
0
0.0
TOTAL
$500 100.0
$500
100.0
Budget Highlights
■ A transfer was made to the Capital Improvements Fund from the Oaks at Irish Prairie Escrow in order
to help fund the Knox Drive Extension.
116
Retained Personnel Fund
Purpose
The Retained Personnel Fund is used to account funds collected as reimbursement and expended for
professional and technical services used to assist or advise the City in connection with land development.
Fund Highlights
The City's retained personnel costs include any engineering, attorney, planner, economist, or other
technical profession retained to assist in connection with annexations, planning and zoning, and other
development 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.
Budget Summary
EXPENDITURES
CONTRACTUAL
OTHER
TOTAL
FUNDING SOURCE
INTEREST EARNINGS
FEES
TOTAL
Budget Highlights
■ No significant changes.
RETAINED PERSONNEL FUND
BUDGET SUMMARY
2013/14
2014115
ACTUAL
BUDGET
$32,861
$30,000
8,259
10,000
$41,120 $40,000
8 months
2014/15
2015/16
INCREASE
ACTUAL
BUDGET
(DECREASE)
$55,785
$30,000
$0
4,583
10,000
0
$60,368
$40,000
$0
2014/15 2014115 2015/16 2015/16
AMOUNT PERCENTAGE AMOUNT PERCENTAGE
$0 0.0 $0 0.01
40,000 100.0 40,000 100.0
$40,000 100.0 $40,000 100.0
ism
Revolving Loan Fund
Purpose
The purpose of the Revolving Loan Fund is to account for activity in the Revolving Loan Program, a low
interest loan program for businesses and industry with the goal of job creation.
Fund Highlights
The Revolving Loan Program 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 tax and property tax base.
The program requires loan applicants to complete a formal application, which is reviewed by the
McHenry Revolving Loan Fund Review Committee. The committee, consisting of the Mayor and the
Finance Committee of the McHenry City Council, reviews loan applications, meets with the applicant and
a representative of the participating lending institution, visits the site if necessary, negotiates terms, length
and security of loans, and evaluates requests with regard to compliance with the Revolving Loan Fund
Program goals and objectives.
Budget Summary
REVOLVING LOAN FUND
BUDGET SUMMARY
8 months
2013114 2014115
2014/15
2015/16
INCREASE
ACTUAL BUDGET
ACTUAL
BUDGET
(DECREASE)
EXPENDITURES
OTHER
$0 $0
$0
$0
$0
TOTAL
$0 $0
$0
$0
$0
2014/15
2014115
2015/16
2015/16
AMOUNT
PERCENTAGE AMOUNT PERCENTAGE
FUNDING SOURCE
INTEREST EARNINGS
$50
2.4
$50
3.2
LOAN PAYMENTS
2,000
97.6
1,500
96.8
TOTAL
$2,050
100.0
$1,550
100.0
Budget Highlights
■ No significant changes.
118
Police Pension Fund
Purpose
The purpose of the Police Pension Fund is to provide retirement benefits for retired police officers and
their beneficiaries through employer and employee contributions and investment earnings.
Fund Highlights—>
The primary function of this non -operating budgetary unit is to finance pensions for employees by both
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 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, and to invest funds. Accounting and secretarial services are
provided by the City at no cost to the plan. Financial planning and investment management are provided
by outside vendors.
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. If the pension plan makes unwise investment decisions, the
City is currently obligated to guarantee the pension obligations. However, as of the year 2033, the
pension plan will be self-supporting with no further obligations placed on the City.
The City utilizes an independent actuarial study to annually determine the necessary funding for the
pension program. The City will continue to fund the plans based upon the recommendations of the
actuary. As of May 1, 2014, the date of the last completed Actuarial Valuation Report, the plan had 77
participants. Active police officer participants totaled 46 with an additional 21 retiree participants, 7
disabled participants and 2 surviving spouses and 1 terminated vested participant.
Budget Summary
POLICE PENSION FUND
BUDGET SUMMARY
8 months
2013/14
2014/15
2014115
2015/16
INCREASE
ACTUAL
BUDGET
ACTUAL
BUDGET
(DECREASE)
EXPENDITURES
CONTRACTUAL
$40,097
$47,000
$28,131
47,000
$0
OTHER
1,119,388
1,753,925
1,273,304
1,804,574
50,649
TOTAL
$1,159,485
$1,800,925
$1,301,435
$1,851,574
$50,649
2014/15
2014/15
2015/16
2015/16
AMOUNT
PERCENTAGE
AMOUNT
PERCENTAGE
FUNDING SOURCE
PROPERTY TAX
INVESTMENT EARNINGS
$480,000
22.5
$480,000
21.3
EMPLOYER CONTRIBUTIONS
1,295,577
60.7
1,387,374
61.5
EMPLOYEE CONTRIBUTIONS
360,000
16.9
390,000
17.3
TOTAL
$2,135,577
100.0
$2,257,374
100.0
119
Police Pension Fund
Budget Highlights
■ Many of the pensioners are entitled to a 3% wage increase effective January I" of every year.
■ Employee contributions are directly related to the police department's wages, so the amount of
contributions grows with wage increases.
■ Employer contributions are funded by property taxes and are reflected by the 2014 levy.
■ As of April 30, 2014 the funding percentage for the Police Pension Fund is at 52.5%, which is
0.5% lower than last year.
120
HEART OF THE FOX RIVER
SUPPLEMENTAL INFORMATION
Financial Policies
Capital Improvement Program Financial Policies
Investment Policy
Community Profile
Glossary of Terms
`NI
Subalemental Information
Financial Policies
The following City financial policies, along
with the previously approved Investment
and Capital Improvement Program policies,
establish the framework for McHenry's
overall fiscal planning and management.
Operating Budget and Expense Policies
1. The city shall annually adopt a balanced
budget where operating revenues are
equal to, or exceed, operating
expenditures in each fund.
2. Beginning fund balance should only be
appropriated to the extent it supports
non -recurring expenditures, replaces
temporary declines in revenue, or is
reasonably anticipated to be offset by an
increase in revenue.
3. As part of the annual budget review
process, the City will project General
Fund revenues and expenditures for four
years beyond the budget year and
compare the projected balances to the
fund balance policy. This will allow the
City to identify potential problems early
enough to correct them.
4. The City Council shall be provided
monthly actual revenues and
expenditures for all funds. Any
departments or divisions projected to
exceed their annual spending authority
for the year shall work with the City
Administrator to reduce expenses. This
may include a deferral of hiring and
major expenses for goods and services.
Revenue Policies
1. The City shall maintain a diversified and
stable revenue system to the extent
provided by law to insulate it from short-
term fluctuations in any one revenue
source.
2. The City will not budget one-time
revenue sources to fund annual operating
expenditures. Such revenues will fund
non -recurring activities, such as capital
projects and major capital equipment
purchases.
3. Grant revenues shall be pursued to
provide or enhance City services.
However, recurring activities shall be
initiated with grant funds only if the
activity can be terminated in the event
grant funds are discontinued or the
activity should and can be funded within
recurring City revenues.
4. All non -enterprise user fees and charges
will be examined annually to determine
the direct and indirect cost of service
recovery rate. The acceptable recovery
rate and any associated changes to user
fees and charges will be approved by the
City Council.
5. The City will set fees and user charges
for the Water and Sewer funds at a level
that fully supports the total direct and
indirect costs of the activity. Indirect
costs include the replacement of the
capital assets of the fund.
Fund Reserve Policies
1. The City will maintain an unreserved
fund balance in the General Fund equal
to 20% expenditures budgeted for the
fiscal year. If the fund balance level falls
`M
SuDblemental Information
below 20% due to unforeseen reasons, a
replenishment plan will be developed.
2. The Water and Sewer Fund will
maintain an operating reserve in cash
and short-term receivables equal to 25%
of budgeted expenditures for the fund.
Debt Management Policies
1. The City limits long-term debt to only
those capital improvements that cannot
be financed from current revenues and
have an estimated useful life of at least
ten years.
2. For General Obligation Debt, the City
will maintain a debt to assessed
valuation ratio that is 25% more
stringent than the state debt limit.
123
Sunblemental Information
Capital Improvement Program Financial Policies
The Capital Improvements 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 actually 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.
`PzI
SuDDlemental Information
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.
125
Sunblemental Information
(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 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:
I. 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.
126
Su-mlemental Information
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.
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 150-1
(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.
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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 pubic 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.
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.
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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 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 are 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
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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.
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.
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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 the amendments. Any and all amendments to the investment
policy shall be provided to the individual(s) charged with maintaining internal
controls.
XIX. Investment Policy Adoption
The investment policy shall be adopted by the Mayor and City Council. The policy
shall be reviewed on an annual basis by the Investment Officer and any modifications
made thereto must be presented to the Mayor and City Council for approval.
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Community Profile
The City of McHenry was first settled in 1836, incorporated as a village in 1872 and as a city
in 1923. It is comprised of approximately 40 square miles and is located in eastern McHenry
County along the Fox River. The City is located at the entrance of the Chain O'Lakes water
way along the Fox River and as such has gained popularity as the "Gateway to the Chain
O'Lakes". The Chain O'Lakes region is a series of nine interconnected lakes extending from
Wisconsin south to McHenry and the adjoining state parks and conservation areas. The Chain
O'Lakes is reported to be the second most popular boating and outdoor recreational area in the
United States. Municipal boundaries incorporate water frontage along the Fox River,
McCullom Lake and Boone Lagoon. The City is located approximately 50 miles northwest of
Chicago's Loop, 15 miles south of the Wisconsin State Line and is directly west of Moraine
Hills State Park.
The City's 2008 equalized assessed valuation shows approximately 70% of the assessed
valuation as residential community; 29% as commercial and industrial; and 1 % railroad, farm
and mining. The City's population increased over 32% in the ten-year period from 1990 to
2000, from 16,177 to 21,501 persons. Based on the 2010 Census the City has a population of
26,992.
Government Structure
The City is a home rule community and operates under aMayor/City Council form of
government. The seven members of the City Council are elected from seven wards for
staggered four-year terms. The Mayor and City Clerk are also elected at large and also serve
four-year terms of office. The City Council appoints numerous City officials, including a City
Administrator, a City Attorney, a City Engineer, a Police Chief, and Directors of Finance,
Public Works, Parks and Recreation, and Community and Economic Development. The day-
to-day operations of the City are the responsibility of the City Administrator.
Transportation
The City offers convenient access to two state routes, Illinois State Route 120 is east/west and
Route 31 is north/south. Illinois Route 120 provides five lanes between Illinois State Route 31
and Martin Road. The Northwest Tollway (Interstate 90) is accessible approximately twenty
miles south of the City, and Interstate 94 is accessible approximately twenty miles east of the
City. Chicago's O'Hare Airport is located approximately 40 miles southeast of the City.
METRA's Chicago and Northwestern rail line serves City commuters between Chicago and
Harvard, Illinois, with regular stops at its stations in nearby Cary, Crystal Lake and
Woodstock. METRA also provides stops in its McHenry station. Bus service is available to
City residents through the PACE suburban bus system. Senior transportation services are
available through Pace and through McHenry Township.
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Supplemental Information
Education
Public School District Numbers 15 and 156 serve the majority of City residents. Community
High School District Number 156 has two high school buildings and an enrollment of
approximately 2,200 students. Community Consolidated School District Number 15 has eight
school buildings and an enrollment of approximately 4,600 students.
The City is within the boundaries of McHenry Community College District No. 528, a two-
year college, which offers more than 50 associate degrees and over 15 certificates in liberal
arts and technical programs leading to employment or further study at four-year colleges or
universities. Other higher education opportunities for residents are located at facilities
throughout the greater Chicago metropolitan area.
Community Services
Utility companies serving City residents include NICOR, ComEd, AT&T (telephone) and
Comcast Cable. Residents have access to two medical centers in the City, Centegra Northern
Illinois Medical Center and Northern Illinois Medical Center, and a total of six hospitals
located in surrounding areas.
City residents are served by the McHenry Public Library District and the McHenry Township
Fire Prevention District. The McHenry Public Library has a collection of over 103,000 books
and periodicals, 7,000 videos and DVDs, and 5,700 audio materials. Both the library and the
fire district are separate entities from the City, operate their own programs and facilities and
file separate tax levies.
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Suublemental Information
Glossary
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.
Activi 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.
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Supplemental Information
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.
Capital Outlay: Fixed assets which have a value of $300 or more and have a useful economic
lifetime of more than one year.
Capital Proiects 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 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 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.
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Supplemental Information
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.
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.
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Supplemental Information
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.
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 umnatured 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.
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Supplemental Information
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.
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.
138
MAYOR' S REPORT
To: McHenry City Council
From: Susan E. Low, Mayor
For: April 27, 2015 Annual City Council meeting
Re:
2015/16 Mayoral Appointments
Susan E. Low, Mayor
City of McHenry
333 Green Street
McHenry, Illinois 60050
Phone: (815) 363-2108
Fax: (815) 363-2119
www.ci.mchenry.il.us
At the April 27"' annual City Council meeting I intend to make the following appointments. Please
contact me prior to the meeting if you have any comments or concerns regarding the appointments.
City Administrator/Department Heads
City Administrator
Chief of Police
Director of Public Works
Finance Director
City Treasurer
Municipal Consulting Firms
Corporate Attorney
Labor Attorney
Traffic Court Attorney
City Engineer
Administrative Adjudication Officer
Expiration
Derik Morefield 04/30/15
John M. Jones 04/30/15
Jon M. Schmitt 04/30/15
Carolyn Lynch 04/30/15
Carolyn Lynch 04/30/15
Zukowski, Rogers, Flood
& McArdle 04/30/15
Ottosen Britz Kelly
Cooper &Gilbert, Ltd 04/30/15
Patrick J. McAndrews 04/30/15
HR Green, Inc. 04/30/15
Harry Semrow 04/30/15
Boards/Commissions
Planning/ and Zoning Commission:
(1 year term)
Landmark Commission:
(3 year term)
Emergency Services &
Disaster Agency
(1 year term)
Environmental Advisory Commission:
(2 year term)
Police Commission:
(3 year term)
Police Pension Board:
(2 year term)
Standing Committees of the Council
Susan E. Low, Mayor
City of McHenry
333 Green Street
McHenry, Illinois 60050
Phone: (815) 363-2108
Fax: (815) 363-2119
www.ci.mchenry.il.us
Joseph Doherty
Vacant
Michael Sobotta
Shawn Stiach (Chair)
Roger Thacker (V-Chair)
Joseph C.Vallez
Brian Bromley
MaryA Dixon
James Johnson
Joyce Matuszewich
Gerhard Rosenberg
Patricia Schafer
Patrick Wirtz (Chair)
Nl0holas Bennett (Student Member, 1-yr. term)
Anthony Huemann
Thomas Walsh
Jon Schmitt
Ryan Schwalenberg
Margie McCarthy
Richard Huber (Chair)
Ormel Prust
Community Development: Chair Condon, Santi, Peterson
Finance and Personnel: Chair Wimmer, Condon, Curry
Parks and Recreation: Chair Peterson, Schafer, Santi
Public Works: Chair Schaefer, Glab, Wimmer
04/3 0/ 16
04/30/16
04/30/16
04/30/16
04/30/16
04/30/16
04/30/16
04/3 0/ 18
04/30/18
04/30/18
04/30/18
04/3 0/ 18
04/30/18
04/30/16
04/30/16
04/30/16
04/3 0/ 16
04/3 0/ 16
04/30/17
04/30/18
04/30/17
Derik Morefield, City Administrator
McHenry Municipal Center
333 Green Street
McHenry, Illinois 60050
Phone: (815) 363-2100
Fax: (815) 363-2119
dmorefield@ci.mchenry.il.us
DATE: April 27, 2015
TO: Mayor and City Council
CC: Department Directors
FROM: Derik Morefield, City Administrator
Carolyn Lynch, Finance Director
RE: Adoption of the Proposed FY2015/2016 Budget
This transmittal letter summarizes the proposed annual budget for the various funds of the City
of McHenry for the fiscal year that begins May 1, 2015 and ends April 30, 2016 (FY15/16) in a
form that can be easily understood. More detailed information regarding each fund, including
narrative descriptions of each fund, can be found in the budget document.
The 15t draft of the FY15/16 Proposed Budget was reviewed at the Finance and Personnel
Committee meeting held on Monday, March 5, 2015. The 2nd draft of the budget document was
reviewed on Monday, April 6, 2015 and the document has been updated as a result of the
topics discussed at this meeting. Minutes of these meetings have been attached to this
transmittal letter for your reference.
EXECUTIVE SUMMARY
As in previous years, the City Administration has taken a conservative approach in developing
the FY15/16 Budget. Revenue projections continue to be based, cautiously, on historical trends
and economic forecasts while taking into account the current state of the economy and
financial instability of the State of Illinois. Budget development guidelines provided to
Department Directors continue to stress the need to keep proposed operating expenditures
level where possible and to continue to identify opportunities to reduce expenditures and/or
increase revenues and the efficiency of providing services.
In considering the proposed FY15/16 Budget the City must be mindful of the recent
announcement by Governor Rauner regarding the potential for reductions to the Local
Government Distributive Fund (LGDF) as part of the FY15/16 State of Illinois Budget (July 1,
2015 — June 30, 2016). While the LGDF reduction to the FY14/15 State of Illinois Budget was
recently withdrawn, the potential still exists for a reduction to the LGDF in the FY15/16 Budget.
As proposed, an LGDF reduction of 50% would result in an estimated $1.3 million in reduced
revenues for the City's General Fund. This represents 6.7% of the estimated FY15/16 General
Fund Revenues. Reductions of this magnitude would, no doubt, require the City to rely solely
on the General Fund Fund Balance for the implementation of capital improvement and capital
equipment projects, in addition to impacting annual operating costs. The City has been
successful in rebuilding the General Fund Fund Balance not only to a level that meets the City's
minimum General Fund Fund Balance Policy (20% of operating expenses), but also to ensure
that funding is available for the implementation of significant capital improvement projects.
Unfortunately, this would be quickly depleted should it become the sole source of funding for
capital improvement and capital equipment projects as a result of reductions to the LGDF.
While it is understood that Governor Rauner's proposal is preliminary and subject to extensive
modification, the City of McHenry must be mindful of the impact that any reductions could
have.
The FY15/16 Budget, as proposed, is operationally BALANCED. The proposed spending plan
totals $44,638,069 for All Funds and $19,979,924 for the General Fund. The following is a
summary of revenue and expenditure activities for the various funds that comprise the
municipal budget.
GENERAL FUND
The General Fund represents the core revenue and expense fund for municipal functions. All
operating expenses, except for water and sewer operations, are allocated from the General
Fund.
Revenues. Budgeted revenues within the General Fund are $19,382,360, an increase of
$504,008 (2.7%) from FY14/15. Approximately $16,042,627, or 82.8%, of estimated FY15/16
General Fund Revenues is comprised of Sales Tax receipts, Income Tax receipts, and Property
Tax receipts.
While the City has seen growth in State and Local Sales Tax receipts in recent fiscal years due to
factors related to economic recovery, this trend is beginning to level and, as such, staff will
continue to budget revenues from this source conservatively. State Sales Tax receipts, which
make up 33.9% of fund revenues, are budgeted at $6,565,739, reflecting an increase of
$122,960 (1.9%) from FY14/15. Local Sales Tax receipts, comprising 9.6% of fund revenues, are
budgeted at $1,891,680, reflecting an increase of $27,956 (1.5%) from the current fiscal year.
Income Tax receipts, comprising approximately 12.6% of General Fund Revenues, are budgeted
at $2,450,000, an increase of $241,000, or 10.9% from the FY14/15 Budget. Again, as identified
in the Executive Summary, this revenue source is volatile given the recent proposal by Governor
Rauner for a 50% reduction to the LGDF.
Property Tax receipts, which make up approximately 26.5% of fund revenues, are budgeted at
$5,135,208, which is a decrease of $14,975 from the amount budgeted in FY14/15, $5,150,183.
This is the result of the City Council's decision to maintain a "flat" property tax levy for the 5tn
consecutive year.
The remaining approximately 17.2% of General Fund Revenues are comprised primarily of other
Intergovernmental revenues, Franchise Fees, Fines and Forfeitures, Charges for Services,
Interest Income, Donations, Reimbursements and other Miscellaneous revenues.
Expenditures. Total General Fund Expenditures (without capital expenses) are budgeted at
$18,669,959, an increase of $676,265 (3.75%) from FY14/15. The primary reasons for this
increase include a $91,797 increase to the Police Pension Fund contribution and costs related to
the payment of salary, wages, insurance and benefits for existing employees. These include a
2% COLA and step increase for bargaining unit employees and a .8% Consumer Price Index (CPI)
and merit adjustments for eligible non -represented employees. Of note, the budget, as
proposed, includes the addition of 1.3 Full Time Equivalent (FTE) positions — a Recreation
Center Manager to participate in the development and construction of the new Recreation
Center; and in anticipation of the hiring of an additional Police Patrol Officer resulting from the
the creation of a second School Resource Officer position, subject by approval by McHenry
School District 156. As with the existing SRO position, this second SRO position would also be
70% funded (salary + benefits) by McHenry School District 156, thus the .3 FTE.
With the inclusion of capital expenses (Capital Improvement and Capital Equipment Projects),
General Fund Expenses increase by $1,305,725 to $19,979,924, an increase of $1,121,930
(5.9%) from the FY14/15 Budget.
SPECIAL REVENUE FUNDS
Special Revenue Funds include the Tourism Fund, Pageant Fund, Band Fund, Civil Defense Fund,
Alarm Board Revenue Fund, Audit Fund, Annexation Fund, Motor Fuel Tax Fund, Developer
Donation Fund, and the Tax Increment Finance Fund.
Overall, Special Revenue Funds revenues are budgeted at $1,515,081 in FY15/16. This reflects a
decrease of $238,774 or 13.6% from FY14/15. Highlighted here is that revenues within the Tax
Increment Finance Fund continue to decline due to reduced property taxes.
Expenditures are budgeted at $2,487,877, a decrease of $85,733 or 3.3% from FY14/15. While
most of the Special Revenue Funds remain steady, the primary reason for this decrease in
revenues is found in the Motor Fuel Tax Fund, where total revenues are estimated to decrease
by $173,996. Also, within the Developer Donation Fund the following capital expenses are
being rebudgeted from FY14/15 - $72,000 for the completion of the Ft. McHenry renovations,
$50,000 for the development of the Miller Park Boat Ramp, and $20,000 for ADA Park
Improvements.
CAPITAL PROJECT FUNDS
Capital Project Funds include the Recreation Center Construction Fund, Special Service Area #4
(Lakewood Road Subdivision sewer project), Capital Improvements Fund, Local Streets
Improvement Fund (identifies transfer to MFT), and the Capital Equipment Fund.
Revenues in Capital Project Funds are derived mainly from interfund transfers. Capital Project
Fund revenues are budgeted at $1,523,272, an increase of $404,000 from the FY14/15 amount
of $1,119,272. Budgeted expenses of $6,028,822 are $4,252,050 higher than the $1,776,772
budgeted in FY14/15. The primary reason for the overall increase in proposed expenditures
includes the development of the Recreation Facility and increased Capital Improvement and
Capital Equipment expenditures.
As identified above, and at the recommendation of the Finance and Personnel Committee, the
FY15/16 Proposed Budget includes $1,062,500 in Capital Improvement projects and $243,225 in
Capital Equipment projects. These projects, selected based on priority ranking as part of the
FY15/16 - FY19/20 Capital Improvement Plan (CIP) are identified below:
Capital Improvements Fund ($1,062,500)
• Local Street Program -
$450,000
• Dartmoor/Crystal Lake Road Signal -
$400,000
• Municipal Center HVAC -
$ 80,000
• Park Improvements -
$ 85,000
• Downtown Parking Lots -
$ 40,000
• Downtown Sidewalks -
$ 7,500
Capital Equipment Fund ($243,225)
• Streets —Vehicle Replacement (2 trucks) -
$ 80,000
• Police Vehicles and Equipment (2 vehicles) -
$ 80,500
• Police Mobile Computers and Hardware -
$ 23,250
• Building Permitting Software (continuation) -
$ 19,475
• Parks Division Vehicle Replacement (new) -
$ 40,000
Project descriptions for these projects can be found in the FY15/16 — FY19/20 CIP Document.
In addition to these new projects, two (2) Capital Improvement projects — Municipal Building
Improvements ($85,000) and Knox Drive Extension ($305,000) — and one (1) Capital Equipment
project — Finance/Utility Software ($20,000) — are being rebudgeted from FY14/15 for
implementation in FY15/16.
Finally, it should be noted that the total Capital Improvement and Capital Equipment
proposed expenditures of $1,305,725 includes the use of $596,600 from the General Fund
Fund Balance.
DEBT SERVICE FUND
The purpose of the Debt Service Fund is to account for bonded indebtedness incurred by the
City's General Fund, including all bond and interest payments. The Debt Service Fund is a non -
operating budgetary unit, meaning that it does not provide direct service to the public and is
utilized for internal purposes only. Debt service payments are made from this fund and, in turn,
transfers from various other funds are made to the Debt Service Fund for debt service
payments. In FY15/16 revenues, or transfers, into the Debt Service Fund total $1,556,705 and
principal and interest payments are budgeted at $1,556,555.
PROPRIETARY FUNDS
Proprietary funds include the Water/Sewer Fund, which includes all operating costs related to
the conveyance and maintenance of the City's water and sewer systems, Capital Development
Fund, Utility Improvements Fund, and the Marina Operations Fund. As identified in the Water
and Sewer Rate Study, completed by HR Green and presented to the City Council in 2014, water
and sewer revenues are not maintaining pace with the fund expenditures. As such, a new
water and sewer rate structure will need to be considered by Council in FY15/16. Additionally,
with more than $15,000,000 in water and sewer maintenance projects included in the FY15/16
— FY19/20 Capital Improvement Program, Council will be asked to consider the implementation
of a Capital Rate charge for both water and sewer that can be used to implement these
projects.
Total Proprietary Funds revenues, derived primarily through the water and sewer sales within
the Water/Sewer Fund, are budgeted at $6,724,665. This is an increase of $1,095,985 from
FY14/15.
Not reflected as part of the Proprietary Funds Budget are revenues and expenditures for the
Central Wastewater Treatment Plant (CWWTP) Decommissioning Project. This estimated $29
million project would be financed through a State of Illinois State Revolving Fund (SRF) for a
period of twenty (20) years with payments being derived from users of the system. Financing
for the project will be discussed in May 2015 and the budget will be amended to reflect the
receipt of the SRF Loan and financing once a decision is made to move forward with the project.
In addition, included in the Proprietary Funds is the creation of a new "Utility Division" within
the Department of Public Works. In FY14/15 an informal Utility Division was created on a trial
basis by assigning Maintenance Workers from both the Water and Sewer Divisions under
Assistant Water Superintendent Steve Wirch for the sole purpose of undertaking water and
sewer maintenance projects. This is a change from the existing structure in which both the
Water and Sewer Divisions must schedule and coordinate maintenance projects with existing
divisional employees. The Utility Division has worked well during the trial period and is
recommended for formal establishment in the FY15/16 Budget. The only financial impact is the
result of a promotion of the existing Assistant Water Superintendent to Superintendent of the
Utility Division.
Capital items funded through the Water/Sewer Fund are budgeted through depreciation
expenses which allocates the expenditure over the life of the asset. There are five (5)
important Water/Sewer capital projects identified for implementation in FY15/16. These
include:
Water Improvements ($935,000)
• Route 31/Miller Road/Bull Valley Road Watermain Relocation - $585,000
• Water Meter Replacement - $ 50,000
• Water Tower Maintenance and Repair - $300,000
Wastewater Improvements ($690,000)
• AquaTech Replacement - $360,000
• Fieldstone Lift Station - $330,000
Project descriptions can be found in the FY15/16 — FY19/20 CIP Document
INTERNAL SERVICE FUNDS
As the name suggests, Internal Service Funds represent employee contribution and/or
interfund transfers related to Health Insurance, Risk Management and Information Technology.
In FY15/16, Internal Service Fund revenues are budgeted to increase by $330,204 and expenses
are budgeted to increase by $344,464. Both of these increases are almost entirely due to
increases in health insurance costs and related City and employee contributions.
FIDUCIARY FUNDS
Fiduciary Funds include the Employee Flexible Spending Fund, Development Escrow Fund,
Retained Personnel Fund, Revolving Loan Fund, and the Police Pension Fund. Specific to the
Police Pension Fund, municipal contributions are budgeted to increase by $121,297, with
expenditures decreasing by $25,351.
The attached FY15/16 Budget document is organized and presented as follows:
Budget Summary of Revenues and Expenditures
General Fund Operating Budgets
Special Revenue Fund Budgets
Capital Projects
Debt Service Funds
Proprietary Funds
Internal Service Funds
Fiduciary Funds
The City Administration hopes that this summary overview, along with the detailed information
provided in the attached budget document provides the City Council and general public with a
clearer understanding of the City of McHenry's budget structure and the confidence in knowing
that the City Administration continues to serve as responsible stewards of the public's funds.
As previously identified, the Finance and Personnel Committee have reviewed the proposed
FY15/16 Budget on two occasions — March 5th and April 6th. In concluding the April 6, 2015 the
Finance and Personnel Committee unanimously approved forwarding the FY15/16 Budget, as
proposed, to the City Council for adoption.
Therefore, if Council concurs, a motion recommending approval of the proposed FY15/16
Budget, as presented, is appropriate.
FINANCE AND PERSONNEL COMMITTEE
March 5, 2015
Aldermen's Conference Room
Chairman Alderman Wimmer called the meeting of the Finance and Personnel Committee to order at 5:00
PM with the following committee members present: Alderman Geri Condon, Alderman Jeffrey Schaefer.
Also in attendance: City Administrator Derik Morefield, Deputy City Administrator Bill Hobson,
Finance Director Carolyn Lynch, and Executive Assistant Marci Geraghty
1. Public Input
None,
2. Review and Discussion — Draft Fiscal Year 15/16 Budget
City Administrator Morefield declared the budget as proposed is operationally balanced. The
proposed spending plan totals $43,461,556 for all funds and $19,396,913 for the General Fund.
In considering the proposed budget, staff was mindful of the recent announcement by Governor
Rauner regarding proposed reductions to the Local Government Distributive Fund (LGDF).
Due to the impact of the proposed 50% reduction in LGDF, which makes up approximately
12.6% of total General Fund Revenues, options to fund Capital Improvements and purchase of
Capital Equipment were presented for the committee's consideration and direction.
Balance of General Fund Revenues after Expenses is estimated to be $707,422 however the
proposed reduction in the LGDF would result in a deficit in Revenues over Expenditures of
$(517,578) with no General Fund Revenues for Capital Projects and the need to reduce General
Fund operating budgets by $517,578.
Options:
• CIP and Capital Equipment projects limited to the amount of General Fund Revenues
over Expenses.
• Select CIP and Capital Equipment projects to complete using fund balance in the General
Fund.
A two tiered approach relating to capital expenditures was proposed to the Committee for
consideration and recommendation:
Proposed Capital Improvements Projects:
• Tier 1: $662,500 - Local Street Program, Municipal Center HVAC; Park Improvements;
Downtown Parking Lot maintenance; and Downtown Sidewalks.
• Tier 2: $400,000 - Dartmoor/Crystal Lake Road Signalization
Total Tier I & Tier 2: $1,062,500
Finance and Personnel Committee
March 5, 2015
Page Two
Proposed Capital Equipment Projects:
• Tier 1: $59,475 - Continuation of Building Permitting Software; Parks Vehicle
Replacement
• Tier 2: $183,750 - Police Mobile Computers and Hardware; Streets Vehicle Replacement
(2 trucks); Police Vehicles and Equipment (1 squad, 1 specialty)
Total Tier 1 & Tier 2: $243,225
The Committee agreed expenditures in each tier are necessary. They recommended approval of Tier 1
options and completion of seasonal projects and delay funding of Tier 2 projects and equipment purchase
until more is known on the status of the LGDF.
3. Other Business
Mr. Morefield summarized the establishment of a merit -based compensation system for non -
bargaining unit employees that will begin on May 1, 2015. The new system will replace the
existing step -based and longevity pay system. A combination of the CPI-U and merit based
percentage will be used, The amount of merit -pay scale will be determined upon approval of the
annual budget.
4. Adjournment
Alderman Schaefer made a motion, seconded by Alderman Condon to adjourn the meeting.
Aye:
Schafer, Condon, Wimmer
Nay:
None
Abstaining:
None
Not Voting:
None
Absent:
None
Motion carried
The meeting was adjourned at 6:00 PM.
The next meeting of the Finance and Personnel Committee is April6a' at 6:00 PM.
Respectfully submitted,
Alderman Richard V. er
FINANCE AND PERSONNEL COMMITTEE MEETING
Monday, April 6, 2015
Alderman Conference Room, 6:00 p.m.
In Attendance: Committee Members: Chairman Alderman Wimmer, Alderman
Condon and Alderman Schaefer. Absent: None.
Also in Attendance: Mayor Low, City Administrator Morefield, Deputy City Administrator
Hobson and Director of Finance Lynch.
Chairman Alderman Wimmer called the meeting to order at 6:03 p.m.
Public in Attendance: Mr. Scott Curry
Mr. Greg Van Nostrand
Chairman Alderman Wimmer called the meeting to order at 6:03 p.m.
Mayor Low arrived at 6:06 pm
Alderman Santi arrived at 6:20 p.m.
Public Input
Mr. Scott Curry, 5802 Amherst, McHenry, addressed the Committee regarding the proposed
Fiscal Year 2015/2016 Budget. Mr. Curry stated that he has reviewed the entire budget and
expressed concerns regarding portions of the budget.
Discussion Regarding the City of McHenry
Fiscal Year 2015/2016 Budget Final Draft and Motion to
Present the Budget Document to the Full Council for Consideration
Chairman Alderman Wimmer recognized City Administrator Morefield.
City Administrator Morefield reiterated to the Committee that the first draft of the FY15/16
Proposed Budget was reviewed at the Finance and Personnel Committee meeting held on
March 5, 2015. This second draft of the budget document has been modified as a result of the
topics discussed by the Committee at the meeting on March 5, 2015. Specifically, the tiered
implementation of Capital Improvement and Capital Equipment projects and the
implementation of a merit -based compensation system for non -bargaining unit employees.
As in previous years, the City Administration has taken a conservative approach in
developing the proposed budget. Revenue projects continue to be based on historical trends
and economic forecasts, while taking into account the current state of the economy and
financial instability of the State of Illinois.
Budget development guidelines provided to Department Directors continue to stress the need
to keep proposed operating expenditures level where possible and to continue to identify
opportunities to reduce expenditures and/or increase revenues and the efficiency of providing
services.
Finance and Personnel Committee Meeting
April 6, 2015
Page 2
In considering the proposed FY15/16 Budget, the City must be mindful of the recent
announcement by Governor Rauner regarding the potential for reductions to the Local
Government Distributive Fund (LGDF). While the LGDF reduction to the FY14/15 State of
Illinois Budget was recently withdrawn, the potential exists for a reduction to the LGDF in
the FY15/16 Budget. City Administrator Morefield noted that as proposed, an LGDF
reduction of 50% would result in an estimated $1.3 million in reduced revenues for the City's
General Fund.
City Administrator Morefield stated that the City has been successful in rebuilding the
General Fund Balance not only to a level that meets the City's minimum General Fund Fund
Balance Policy (20% of operating expenses), but also to ensure that funding is available for
the implementation of significant capital improvement projects. Unfortunately, funds would
quickly be depleted should it become the sole source of funding for capital improvement and
capital equipment projects, because of reductions to the LGDF.
City Administrator Morefield noted that while it is understood that Governor Rauner's
proposal is preliminary, and subject to extensive modification, the City of McHenry remains
mindful of the impact that any reductions could have.
City Administrator Morefield stated that the FY15/16 Budget, as proposed is operationally
balanced. The proposed spending plan totals $44,627,355 for All Funds and $19,978,962 for
the General Fund.
City Administrator Morefield provided a brief summary of the General Fund, revenue and
expenditures to the Committee. Additionally, he provided brief summaries of the following
Funds:
• Special Revenue Fund;
• Capital Project Funds;
• Debt Service Fund;
• Proprietary Funds;
• Internal Service Funds; and
• Fiduciary Funds.
Responding to an inquiry from the Committee, City Administrator Morefield stated that the
Water Improvements and the Wastewater Improvements are paid for through the Water
Sewer Fund.
Responding to an inquiry from the Committee, Director of Finance Lynch noted that the
Bond Payment and Salt would eat up the Motor Fuel Tax (MFT) Fund allotment for
2015/2016.
Finance and Personnel Committee Meeting
April 6, 2015
Page 3
Alderman Schaefer suggested that, at some point, the Finance and Personnel Committee
should address future commitments to the General Fund balance.
Alderman Condon stated that she noticed an increase in the Alderman salary in the Budget.
Director Lynch stated that it was an oversight and would be addressed prior to the final
Budget.
Alderman Schaefer inquired about whether outsourcing the Human Resources position,
rather than filling the position following Director Zannini's departure had been explored.
City Administrator Morefield stated that outsourcing the position had been researched by
Director Zannini. There is no cost savings. Staff opined that outsourcing the position of
Director of Human Resources for that reason and with a contractual employee because there
is no day-to-day employee contact outsourcing is not a viable option.
Responding to an inquiry from Alderman Schaefer regarding contractual accounts, City
Administrator Morefield noted that legal costs were reduced this year, and the only other
contractual employees are in the Parks and Recreation Department.
City Administrator Morefield informed the Committee that the FYI 5/16 Budget document is
organized as follows:
• Budget Summary of Revenues and Expenditures;
• General Fund Operating Budgets;
• Special Revenue Fund Budgets
• Capital Projects;
• Debt Service Funds;
• Proprietary Funds;
• Internal Service Funds; and
• Fiduciary Funds
Motion by Condon, seconded by Schaefer, directing Staff to present the draft Fiscal Year
2015/2016 Budget document to full Council.
Aye: Condon, Schaefer, Wimmer
Nay: None.
Absent: None.
Motion carried.
New Business
No new business was discussed.
Finance and Personnel Committee Meeting
April 6, 2015
Page 4
Adjournment
Motion by Condon, seconded by Schaefer, to adjourn the meeting at 6:25 p.m.
Aye: Condon, Schaefer, Wimmer.
Nay: None.
Absent: None.
Motion carried.
Respectfully submitted,
Richard W. Wimmer, Chairman
CITY OF MCHENRY, ILLINOIS
FISCAL YEAR 2015/2016
BUDGET
6n
w Ar T T
April 2015
CITY OF MCHENRY
FY2015/2016
ANNUAL BUDGET
Susan E. Low, Mayor
Geoffrey T. Blake, Alderman Geri A. Condon, Alderman
Andrew Glab, Alderman Robert Peterson, Alderman
Victor A. Santi, Alderman Jeffrey A. Schaefer, Alderman
Richard Wimmer, Alderman
Janice C. Dalton, City Clerk
Prepared By:
Derik Morefield, City Administrator
Carolyn Lynch, Finance Director
Bill Hobson, Deputy City Administrator
John Jones, Chief of Police
Doug Martin, Director of Economic Development
Jon Schmitt, Public Works Director
Vickie Zinanni, Human Resources Manager
Marci Geraghty, Executive Assistant
City of McHenry, Illinois
FY2O15/2O16 Annual Budget
Table of Contents
Letterof Transmittal..................................................................................................... 1
OrganizationalCharts............................................................................................................. 8
BudgetDocument Guide........................................................................................................ 22
Fund Structure Overview....................................................................................................... 23
Basis of Accounting and Budgeting...................................................................................... 26
Budget Summary of Revenues and Expenditures..............................................................
27
Summary Chart of Revenues & Other Financing Sources —All Funds ...............
28
Revenue Budget —All Funds.....................................................................................
29
Summary Chart of Revenues & Other Financing Sources — General Fund.......
31
Revenues by Source — General Fund......................................................................
32
General Fund — Historical Trend Major Revenue Sources ..................................
33
Summary Chart of Expenditures by Function — All Funds ...................................
35
Summary Chart of Expenditures by Budget Unit — General Fund .....................
36
Summary Chart of Expenditures by Category — General Fund .........................
37
Expense Budget —All Funds...................................................................................
38
Authorized Personnel..............................................................................................
40
Personnel Expenses.................................................................................................
41
Schedule of Anticipated Fund Balance.................................................................
42
General Fund Operating Budgets......................................................................................
43
Administration.........................................................................................................
44
ElectedOfficials......................................................................................................
47
Community & Economic Development...............................................................
49
Finance.....................................................................................................................
53
PoliceCommission.................................................................................................
56
Police.......................................................................................................................
57
Public Works Administration................................................................................
61
Public Works — Street Division.............................................................................
62
Parks& Recreation................................................................................................
67
Special Revenue Fund Budgets.......................................................................................... 72
Tourism.................................................................................................................... 73
Pageant.................................................................................................................... 74
Band......................................................................................................................... 75
CivilDefense...........................................................................................................
76
AlarmBoard...........................................................................................................
77
Audit.........................................................................................................................
78
Annexation..............................................................................................................
79
MotorFuel Tax.......................................................................................................
80
Developer Donation..............................................................................................
82
Tax Increment Finance.........................................................................................
84
Capital Projects & Debt Service Funds............................................................................ 85
Recreation Center Construction Fund................................................................ 86
Special Service Area#4........................................................................................ 88
Capital Improvements Fund................................................................................. 89
Capital Equipment Fund....................................................................................... 90
DebtService Fund................................................................................................. 92
EnterpriseFunds.................................................................................................................
94
PublicWorks — Water..........................................................................................
95
Public Works — Wastewater................................................................................
98
Public Works — Utility...........................................................................................
101
CapitalDevelopment...........................................................................................
103
UtilityImprovements...........................................................................................
104
MarinaOperations..............................................................................................
106
Internal Service Funds....................................................................................................... 107
Employee Insurance............................................................................................. 108
RiskManagement................................................................................................ 109
Information Technology...................................................................................... 111
FiduciaryFunds..................................................................................................................
114
Employee Flexible Spending...............................................................................
115
Development Escrow...........................................................................................
116
RetainedPersonnel..............................................................................................
117
RevolvingLoan.....................................................................................................
118
PolicePension.......................................................................................................
119
Supplemental Information...............................................................................................
121
FinancialPolicies..................................................................................................
122
Capital Improvement Program Financial Policies ...........................................
124
InvestmentPolicy.................................................................................................
125
CommunityProfile...............................................................................................
132
Glossary.................................................................................................................
134
CHe r
DATE: April 27, 2015
TO: Mayor and City Council
CC: Department Directors
FROM: Derik Morefield, City Administrator
Carolyn Lynch, Finance Director
RE: Transmittal of the Proposed FY2015/2016 Budget
This transmittal letter summarizes the proposed annual budget for the various funds of the City
of McHenry for the fiscal year that begins May 1, 2015 and ends April 30, 2016 (FY15/16) in a
form that can be easily understood. More detailed information regarding each fund, including
narrative descriptions of each fund, can be found in the budget document.
EXECUTIVE SUMMARY
As in previous years, the City Administration has taken a conservative approach in developing
the FY15/16 Budget. Revenue projections continue to be based, cautiously, on historical trends
and economic forecasts while taking into account the current state of the economy and
financial instability of the State of Illinois. Budget development guidelines provided to
Department Directors continue to stress the need to keep proposed operating expenditures
level where possible and to continue to identify opportunities to reduce expenditures and/or
increase revenues and the efficiency of providing services.
In considering the proposed FY15/16 Budget the City must be mindful of the recent
announcement by Governor Rauner regarding the potential for reductions to the Local
Government Distributive Fund (LGDF) as part of the FY15/16 State of Illinois Budget (July 1,
2015 — June 30, 2016). While the LGDF reduction to the FY14/15 State of Illinois Budget was
recently withdrawn, the potential still exists for a reduction to the LGDF in the FY15/16 Budget.
As proposed, an LGDF reduction of 50% would result in an estimated $1.3 million in reduced
revenues for the City's General Fund. This represents 6.7% of the estimated FY15/16 General
Fund Revenues. Reductions of this magnitude would, no doubt, require the City to rely solely
on the General Fund Fund Balance for the implementation of capital improvement and capital
equipment projects, in addition to impacting annual operating costs. The City has been
successful in rebuilding the General Fund Fund Balance not only to a level that meets the City's
minimum General Fund Fund Balance Policy (20% of operating expenses), but also to ensure
that funding is available for the implementation of significant capital improvement projects.
Unfortunately, this would be quickly depleted should it become the sole source of funding for
capital improvement and capital equipment projects as a result of reductions to the LGDF.
While it is understood that Governor Rauner's proposal is preliminary and subject to extensive
modification, the City of McHenry must be mindful of the impact that any reductions could
have.
The FY15/16 Budget, as proposed, is operationally BALANCED. The proposed spending plan
totals $44,638,069 for All Funds and $19,979,924 for the General Fund. The following is a
summary of revenue and expenditure activities for the various funds that comprise the
municipal budget.
GENERAL FUND
The General Fund represents the core revenue and expense fund for municipal functions. All
operating expenses, except for water and sewer operations, are allocated from the General
Fund.
Revenues. Budgeted revenues within the General Fund are $19,382,360, an increase of
$504,008 (2.7%) from FY14/15. Approximately $16,042,627, or 82.8%, of estimated FY15/16
General Fund Revenues is comprised of Sales Tax receipts, Income Tax receipts, and Property
Tax receipts.
While the City has seen growth in State and Local Sales Tax receipts in recent fiscal years due to
factors related to economic recovery, this trend is beginning to level and, as such, staff will
continue to budget revenues from this source conservatively. State Sales Tax receipts, which
make up 33.9% of fund revenues, are budgeted at $6,565,739, reflecting an increase of
$122,960 (1.9%) from FY14/15. Local Sales Tax receipts, comprising 9.6% of fund revenues, are
budgeted at $1,891,680, reflecting an increase of $27,956 (1.5%) from the current fiscal year.
Income Tax receipts, comprising approximately 12.6% of General Fund Revenues, are budgeted
at $2,450,000, an increase of $241,000, or 10.9% from the FY14/15 Budget. Again, as identified
in the Executive Summary, this revenue source is volatile given the recent proposal by Governor
Rauner for a 50% reduction to the LGDF.
Property Tax receipts, which make up approximately 26.5% of fund revenues, are budgeted at
$5,135,208, which is a decrease of $14,975 from the amount budgeted in FY14/15, $5,150,183.
This is the result of the City Council's decision to maintain a "flat" property tax levy for the 5tn
consecutive year.
K
The remaining approximately 17.2% of General Fund Revenues are comprised primarily of other
Intergovernmental revenues, Franchise Fees, Fines and Forfeitures, Charges for Services,
Interest Income, Donations, Reimbursements and other Miscellaneous revenues.
Expenditures. Total General Fund Expenditures (without capital expenses) are budgeted at
$18,669,959, an increase of $676,265 (3.75%) from FY14/15. The primary reasons for this
increase include a $91,797 increase to the Police Pension Fund contribution and costs related to
the payment of salary, wages, insurance and benefits for existing employees. These include a
2% COLA and step increase for bargaining unit employees and a .8% Consumer Price Index (CPI)
and merit adjustments for eligible non -represented employees. Of note, the budget, as
proposed, includes the addition of 1.3 Full Time Equivalent (FTE) positions — a Recreation
Center Manager to participate in the development and construction of the new Recreation
Center; and in anticipation of the hiring of an additional Police Patrol Officer resulting from the
the creation of a second School Resource Officer position, subject by approval by McHenry
School District 156. As with the existing SRO position, this second SRO position would also be
70% funded (salary + benefits) by McHenry School District 156, thus the .3 FTE.
With the inclusion of capital expenses (Capital Improvement and Capital Equipment Projects),
General Fund Expenses increase by $1,305,725 to $19,979,924, an increase of $1,121,930
(5.9%) from the FY14/15 Budget.
SPECIAL REVENUE FUNDS
Special Revenue Funds include the Tourism Fund, Pageant Fund, Band Fund, Civil Defense Fund,
Alarm Board Revenue Fund, Audit Fund, Annexation Fund, Motor Fuel Tax Fund, Developer
Donation Fund, and the Tax Increment Finance Fund.
Overall, Special Revenue Funds revenues are budgeted at $1,515,081 in FY15/16. This reflects a
decrease of $238,774 or 13.6% from FY14/15. Highlighted here is that revenues within the Tax
Increment Finance Fund continue to decline due to reduced property taxes.
Expenditures are budgeted at $2,487,877, a decrease of $85,733 or 3.3% from FY14/15. While
most of the Special Revenue Funds remain steady, the primary reason for this decrease in
revenues is found in the Motor Fuel Tax Fund, where total revenues are estimated to decrease
by $173,996. Also, within the Developer Donation Fund the following capital expenses are
being rebudgeted from FY14/15 - $72,000 for the completion of the Ft. McHenry renovations,
$50,000 for the development of the Miller Park Boat Ramp, and $20,000 for ADA Park
Improvements.
9
CAPITAL PROJECT FUNDS
Capital Project Funds include the Recreation Center Construction Fund, Special Service Area #4
(Lakewood Road Subdivision sewer project), Capital Improvements Fund, Local Streets
Improvement Fund (identifies transfer to MFT), and the Capital Equipment Fund.
Revenues in Capital Project Funds are derived mainly from interfund transfers. Capital Project
Fund revenues are budgeted at $1,523,272, an increase of $404,000 from the FY14/15 amount
of $1,119,272. Budgeted expenses of $6,028,822 are $4,252,050 higher than the $1,776,772
budgeted in FY14/15. The primary reason for the overall increase in proposed expenditures
includes the development of the Recreation Facility and increased Capital Improvement and
Capital Equipment expenditures. Of note, the $4,800,000 identified for the Recreation Center
project assumes that the bonding will be approved for $2,000,000 of the project in FY14/15.
As identified above, and at the recommendation of the Finance and Personnel Committee, the
FY15/16 Proposed Budget includes $1,062,500 in Capital Improvement projects and $243,225 in
Capital Equipment projects. These projects, selected based on priority ranking as part of the
FY15/16 - FY19/20 Capital Improvement Plan (CIP) are identified below:
Capital Improvements Fund ($1,062,500)
• Local Street Program -
$450,000
• Dartmoor/Crystal Lake Road Signal -
$400,000
• Municipal Center HVAC -
$ 80,000
• Park Improvements -
$ 85,000
• Downtown Parking Lots -
$ 40,000
• Downtown Sidewalks -
$ 7,500
Capital Equipment Fund ($243,225)
• Streets — Vehicle Replacement (2 trucks) - $ 80,000
• Police Vehicles and Equipment (2 vehicles) - $ 80,500
• Police Mobile Computers and Hardware - $ 23,250
• Building Permitting Software (continuation) - $ 19,475
• Parks Division Vehicle Replacement (new) - $ 40,000
Project descriptions for these projects can be found in the FY15/16 — FY19/20 CIP Document.
In addition to these new projects, two (2) Capital Improvement projects — Municipal Building
Improvements ($85,000) and Knox Drive Extension ($305,000) — and one (1) Capital Equipment
project — Finance/Utility Software ($20,000) — are being rebudgeted from FY14/15 for
implementation in FY15/16.
4
Finally, it should be noted that the total Capital Improvement and Capital Equipment
proposed expenditures of $1,305,725 include the use of $596,600 from the General Fund
Fund Balance.
DEBT SERVICE FUND
The purpose of the Debt Service Fund is to account for bonded indebtedness incurred by the
City's General Fund, including all bond and interest payments. The Debt Service Fund is a non -
operating budgetary unit, meaning that it does not provide direct service to the public and is
utilized for internal purposes only. Debt service payments are made from this fund and, in turn,
transfers from various other funds are made to the Debt Service Fund for debt service
payments. In FY15/16 revenues, or transfers, into the Debt Service Fund total $1,556,705 and
principal and interest payments are budgeted at $1,556,555.
PROPRIETARY FUNDS
Proprietary funds include the Water/Sewer Fund, which includes all operating costs related to
the conveyance and maintenance of the City's water and sewer systems, Capital Development
Fund, Utility Improvements Fund, and the Marina Operations Fund. As identified in the Water
and Sewer Rate Study, completed by HR Green and presented to the City Council in 2014, water
and sewer revenues are not maintaining pace with the fund expenditures. As such, a new
water and sewer rate structure will need to be considered by Council in FY15/16. Additionally,
with more than $15,000,000 in water and sewer maintenance projects included in the FY15/16
— FY19/20 Capital Improvement Program, Council will be asked to consider the implementation
of a Capital Rate charge for both water and sewer that can be used to implement these
projects.
Total Proprietary Funds revenues, derived primarily through the water and sewer sales within
the Water/Sewer Fund, are budgeted at $6,724,665. This is an increase of $1,095,985 from
FY14/15.
Not reflected as part of the Proprietary Funds Budget are revenues and expenditures for the
Central Wastewater Treatment Plant (CWWTP) Decommissioning Project. This estimated $29
million project would be financed through a State of Illinois State Revolving Fund (SRF) for a
period of twenty (20) years with payments being derived from users of the system. Financing
for the project will be discussed in May 2015 and the budget will be amended to reflect the
receipt of the SRF Loan and financing once a decision is made to move forward with the project.
In addition, included in the Proprietary Funds is the creation of a new "Utility Division" within
the Department of Public Works. In FY14/15 an informal Utility Division was created on a trial
basis by assigning Maintenance Workers from both the Water and Sewer Divisions under
Assistant Water Superintendent Steve Wirch for the sole purpose of undertaking water and
sewer maintenance projects. This is a change from the existing structure in which both the
Water and Sewer Divisions must schedule and coordinate maintenance projects with existing
divisional employees. The Utility Division has worked well during the trial period and is
recommended for formal establishment in the FY15/16 Budget. The only financial impact is the
result of a promotion of the existing Assistant Water Superintendent to Superintendent of the
Utility Division.
Capital items funded through the Water/Sewer Fund are budgeted
expenses which allocates the expenditure over the life of the asset
important Water/Sewer capital projects identified for implementation
include:
Water Improvements ($935,000)
• Route 31/Miller Road/Bull Valley Road Watermain Relocation -
• Water Meter Replacement -
• Water Tower Maintenance and Repair -
Wastewater Improvements ($690,000)
• AquaTech Replacement -
• Fieldstone Lift Station -
through depreciation
There are five (5)
in FY15/16. These
$585,000
$ 50,000
$300,000
$360,000
$330,000
Project descriptions can be found in the FY15/16 — FY19/20 CIP Document
INTERNAL SERVICE FUNDS
As the name suggests, Internal Service Funds represent employee contribution and/or
interfund transfers related to Health Insurance, Risk Management and Information Technology.
In FY15/16, Internal Service Fund revenues are budgeted to increase by $330,204 and expenses
are budgeted to increase by $344,464. Both of these increases are almost entirely due to
increases in health insurance costs and related City and employee contributions.
FIDUCIARY FUNDS
Fiduciary Funds include the Employee Flexible Spending Fund, Development Escrow Fund,
Retained Personnel Fund, Revolving Loan Fund, and the Police Pension Fund. Specific to the
Police Pension Fund, municipal contributions are budgeted to increase by $121,297, with
expenditures decreasing by $25,351.
The attached FY15/16 Annual Budget document is organized and presented as follows:
Budget Summary of Revenues and Expenditures
General Fund Operating Budgets
6
Special Revenue Fund Budgets
Capital Projects
Debt Service Funds
Proprietary Funds
Internal Service Funds
Fiduciary Funds
The City Administration hopes that this summary overview, along with the detailed information
provided in the attached budget document provides the City Council and general public with a
clearer understanding of the City of McHenry's budget structure and the confidence in knowing
that the City Administration continues to serve as responsible stewards of the public's funds.
Respectfully Submitted,
Derik Morefield Carolyn Lynch
City Administrator Director of Finance & Accounting
CITY OF MCHENRY
Susan E. Low
Mayor
}
Janice C. Dalton
City Clerk
Victor A. Santi
Alderman Ward 1
Andrew Glab
Alderman Ward 2
Jeffrey a. Schaefer
Alderman Ward 3
Geoffrey T. Blake
Alderman Ward 4
Richard Wimmer
Alderman Ward 5
Robert Peterson
Alderman Ward 6
Geri A. Condon
Alderman Ward 7
David W. McArdle
Corporate Attorney
Jon Schmitt
irector of Public
Works
r- mayor
City Counci
P Derik Morefield 4
City Administrator
Bill Hobson
Deputy City Administrator
Parks, Recreation and
Administrative Services
Doug Martin
Director of Economic
Development
John Jones
Police Chief
Carolyn Lynch
Director of Finance
and Accounting
Jon SchmifP
Director of Publ
Works
Derik Morefield
City Administrator
Bill Hobson
Deputy City Administrator
Parks, Recreation and
Administrative Services
Doug Martin
Director of Economic
Development
John Jones
Police Chief
Carolyn Lynch
Director of Finance
and Accounting
Russell Ruzicka
Superintendent of
Waste Water
Kevin Beggs
Asst. Superintendent
of Waste Water
Jon Schmitt
Director of Public
Works
Rich Stull
Superintendent of
Streets
Dale Moll
Crew Leader
Andy Lechner
Crew Leader
Mike Palmer
Superintendent of
Water
Steve W i rch
Asst. Superintendent
of Water
CPUBLIC WORKS -WATER
Doug Mace
Water Operator I I
Steve Ramirez
Water Operator I
Chris Beranek
Maintenance Worker
Todd Sasak
Maintenance Worker
Bryan Scheel
Water Operator I I
Sean Johnson
Water Operator I
Chris Sandoz
Maintenance Worker
12
PUBLIC WORKS -WASTE WATER
Russell Ruzicka
Superintendent of
Waste Water
Jeff Lisafeld r Daniel Duffy
Mechanic Wastewater Operator II
John Kuhl Russell Adams
Wastewater Operator 11 Wastewater Operator II
Bryan Thome David Fees
Wastewater Operator I I Maintenance Worker
Michael Lange Gregory Oliver
Maintenance Worker Maintenance Worker
13
Dave Christopher
Maintenance Worker
Matt Freund
Maintenance Worker
Pedro Padro
Maintenance Worker
PUBLIC WORKS - STREETS
Rich Stull
Streets Superintendent
Clint Greve
Maintenance Worker
Gary Mertz
Maintenance Worker
Bob Zimmerman
Maintenance Worker
J
Ron Barta
Maintenance Worker
Paul Clements
Maintenance Worker
Jason McMahon
Maintenance Worker
Mike Owsley Matt Rogers
Mechanic 14 Mechanic
F— Sam Burrafato
Maintenance Worker
Rick Leisten
l Maintenance Worker
Jacob Reiley
Maintenance Worker
C
FINANCE AND ACCOUNTING
15
RECREATION
Tracy Crowder
Maintenance Worker
Chris Etten
Maintenance Worker
Mike Harper
Maintenance Worker
PARKS, RECREATION and
ADMINISTRATIVE SERVICES
rBilRobson
DeputyAdministrator
AD
1
John Dillon
Maintenance Worker
Tyler Lamz
Maintenance Worker
16
Kathy Quick
Administrative
Assistant
Lynn Martensen
PT Office Assist.
Tina Conaway
�PT Office Assist.
Dorann
Maldonado
Custodian
Thomas Walsh
Commander
Operations Division
Kevin Cox
Sergeant — Day Shift
Paul Funk
Sergeant — PM Shift
Michael Cruz
Sergeant — Midnight
Shift
Ryan Sciame
Sergeant —
Investigations
John Jones
Chief of Police
John Birk
Deputy Chief Police
Dan Kreassig
Sergeant — Day Shift
Brian McKeen
Sergeant — PM Shift
Bob Lumber
Sergeant — Midnight
Shift
Laura King
Commander
Support Services Division
Records Clerks
Information Technology
Dispatchers
Community Service
Officers
CPOLICE -PATROL DIVISION
Paul Funk
Sergeant — PM Shift
Jason Ducak Marc Fisher Brian Aalto Joshua John Adams Robert
Officer Officer Officer Conway Officer Beaudoin
Officer Officer
Jill Foley Jim Harris Ryan Gregorio Rob Klasek Robert Keene Zachary
Officer Officer Officer Officer Officer Piekarski
Officer
Sean Klechak Ryan Pardue Joseph Lazicki Tny Morn ante Patrick Polidori Jaimie Prather
Officer Officer Officer Officer Officer Officer
Paul Prather Larry Popp Tina Torkelson Tonya Stone Matt Schmitt Eric Sexton
Officer Officer &g Duke Officer Officer Officer Officer
Samuel Shafer Michael Spohn Matt Voelker Jack Zumwalt
Officer Officer Officer Officer
POLICE -SUPPORT SERVICES DIVISION 1
DAY SHIFT NIGHT
SHIFT
J \I-
Laura Cox
Holly Neville
DispatcherJ
Dispatcher
L
Jenny Synek
Kathy Kulik
Dispatcher
Dispatcher
Tracy
McNamara
Kelly Schmitt
Dispatcher
Dispatcher
Shelly Hopp
Justin Leibach
Dispatcher
Dispatcher
Division
POWER Debbie Shuett Marybeth Varvil
SHIFT J Records Clerk + Records Clerk
Christine Stephanie Erb Dave Porter
Dawson Community Community
Dispatcher Service Officer Service Officer
Jeffery
Forester
IT Specialist
19
POLICE -INVESTIGATIONS DIVISION
Adrianna E
Detective
Bob Rosh
Detective
Richard Rein
School Resc
Officer
ck Clesen
)etective
My Ducak
)etective
20
CODE COMPLIANCE
Jean Headley
Code Compliance
Inspector
Derik Morefield -
Deputy Administrator
Ryan Schwalenberg
Supt. of Commercial
Inspections
PLAN REVIEW &
BUILDING INSPECTION
Bill Regner
Supt. of Residential
Inspections
Ross Polerecky
Building Inspector
Guy Smale
Plumbing Inspector
Budget Document Guide
This budget document was 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. The second is to develop an annual fiscal plan that will assist City leaders
in making better decisions and enhance financial accountability.
The City of McHenry is moving toward compliance with many of the Government Finance
Officers Association's (GFOA) guidelines for budget presentation and continues its efforts to
improve communication and presentations to its citizenry. The guidelines set forth by GFOA
will ultimately allow the City to meet both of the objectives previously mentioned.
Given the constraints of a small community, this budget document is continually being changed
and is coming closer to meeting the requirements as a:
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 General Fund revenues for the
2010/11 through 2013/14 fiscal years as well as budget amounts for the current and upcoming
years. 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, that present the
budget in a manner that is simple and understandable. The FY15/16 Annual Budget, once
adopted, 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.ci.mchenry.il.us.
22
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 — 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 and Economic Development, Finance, Police,
Public Works Administration, Streets, and Parks and Recreation.
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 Tourism Fund, Pageant Fund, Band Fund, Civil
Defense Fund, Alarm Board Fund, Audit Fund, Annexation Fund, Motor Fuel Tax Fund,
Developer Donation Fund, and Tax Increment Fund.
Debt Service Fund — This fund accounts for the accumulation of revenues for and payment of
principal and interest on general obligation long term debt.
Capital Projects Fund — 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.
The City's business -type funds include the following:
Enterprise Funds — 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 — 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.
The City's other funds include the following:
Fiduciary Funds — 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,
23
Fund Structure Overview
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 appropriation process are also
presented according to classifications required by the State of Illinois. Revenues are credited to
individual fund types while expenditures/expenses are recorded according to functional areas
within specific funds for budgetary control purposes. The following functional areas are
included in the budget:
General Government — This function provides for the operation of the government and assures
the general administration of the municipality. Activities included in this function also include
human resources.
Community and Economic Development — This functions overall mission 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 and economic activities are also
included within this function.
Finance — This function applies modern financial management practices to ensure that the City
is able to deliver services effectively and efficiently on a sustained basis. Activities included in
this function are reporting financial transactions, billing and collecting money, accounts payable,
managing cash and investments, preparing the annual financial report, and developing the budget
and financial forecasts.
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.
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.
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.
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.
24
Fund Structure Overview
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.
25
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
except that the City also recognizes encumbrances for budgetary purposes. Encumbrances
include supplies ordered but not received, and services contracted but not yet expended by the
City. Encumbrances are charged against a budget or appropriation for account purposes.
Accordingly, expenditures/expenses in this document include encumbered
expenditures/expenses. Encumbrances do not lapse at year-end and provide authorization for
expenditures/expenses for the following year.
The City appropriates funds for capital projects on a fiscal year basis. The Capital Projects
section of this document includes descriptive information on each project with estimated costs
and financing sources.
26
SA N w
ItEAR'r OF VNE FOX RIVER
IP_,
BUDGET SUMMARY OF REVENUES AND
EXPENDITURES
Summary Chart of Revenues & Other Financing Sources - All Funds
Revenue Budget - All Funds
Summary Chart of Revenues & Other Financing Sources - General Fund
General Fund Historical Trends of Major Revenue Sources
Summary Chart of Expenditures By Function - All Funds
Summary Chart of Expenditures By Budget Unit - General Fund
Summary Chart of Expenditures By Category - General Fund
Expense Budget - All Funds
Authorized Personnel - All Funds
Personnel Expenses -All Funds
Schedule of Anticipated Fund Balance - All Funds
27
Summary of Revenue & Other Financing Sources All Funds
2014/15
2015/16
Dollar Change
% Change
Property Taxes
5,593,456
5,503,481
(89,975)
-1.61 %
Sales Taxes
8,306,503
8,457,419
150,916
1.82%
Intergovernmental Revenue
3,336,796
3,382,199
45,403
1.36%
Licenses & Fines
895,511
948,822
53,311
5.95%
Services Charges
6,859,648
6,947,510
87,862
1.28%
Interest Income
496,850
496,350
(500)
-0.10%
Bond Proceeds
-
-
-
0.00%
Transfers
7,700,175
9,644,205
1,944,030
25.25%
Other Financing Sources
1,732,671
1,794,836
62,165
3.59%
Total
34,921,610
37,174,822
2,253,212
6.45%
2015/16 Budget Revenues by Source
Other Financing
Sources
5%
Transfers
26%
Bond Proceeds,w
Services
Interest Income Charges
1% 19 /o o
Property Taxes
15%
ft
Licenses & Fines
2%
Sales Taxes
23%
Intergovernmental
Revenue
9%
28
Budget Summary
Revenue Budget 2015116 All Funds
Total Net
Revenue Transfers Revenue
General Fund $19,382,360 $629,510 $18,752,850
Special Revenue Funds
Band Fund
15,000
15,000
0
Civil Defense Fund
5,000
5,000
0
Alarm Board Fund
153,000
0
153,000
Audit Fund
37,981
11,554
26,427
Annexation Fund
58,200
0
58,200
Motor Fuel Tax Fund
642,610
0
642,610
Developer Donations
42,540
0
42,540
Developer Donations (Parks)
91,150
0
91,150
TIF Fund
326,000
0
326,000
Pageant Fund
3,550
0
3,550
Tourism Fund
140,050
0
140,050
Total Special Revenue Funds
1,515,081
31,554
1,483,527
Capital Project Funds
Recreation Center Construction Fund
2,000
0
2,000
Special Service Area #1A
0
0
0
Special Service Area #4
16,847
0
16,847
Capital Improvements Fund
1,261,200
1,062,500
198,700
Local Streets Improvements
0
0
0
Capital Equipment Fund
243,225
243,225
0
Total Capital Project Funds
1,523,272
1,305,725
217,547
Debt Service Funds
Debt Service Fund
1,556,705
1,521,166
35,539
Total Debt Service Funds
1,556,705
1,521,166
35,539
Proprietary Funds
Public Works - Water
2,295,485
0
2,295,485
Public Works - Wastewater
3,142,848
0
3,142,848
Public Works - Utility
1,045,985
1,045,985
0
Capital Development Fund
172,000
0
172,000
Marina Operations Fund
51,500
0
51,500
Utility Improvements Fund
16,847
16,847
0
Total Proprietary Funds
6,724,665
1,062,832
5,661,833
Internal Service Funds
Risk Management Fund
778,000
747,800
30,200
Information Technology Fund
461,101
461,101
0
Health Insurance Fund
2,854,215
2,497,143
357,072
Total Internal Service Funds
4,093,316
3,706,044
387,272
Fiduciary Funds
Medical Flexible Spending Fund
80,000
0
80,000
Revolving Loan Fund
1,550
0
1,550
Police Pension Fund
2,257,374
1,387,374
870,000
Development Escrow Fund
500
0
500
McHenry Economic Development Fund
0
0
0
Retained Personnel Fund
40,000
0
40,000
Total Fiduciary Funds
2,379,424
1,387,374
992,050
Total All Funds
$37,174,823
$9,644,205
$27,530,618
29
Revenue Budget All Funds
Pecent
2014/15
2015/16
Difference
Change
General Fund
$18,878,352
$19,382,360
$504,008
2.7%
Special Revenue Funds
Band Fund
15,000
15,000
0
0.0%
Civil Defense Fund
5,000
5,000
0
0.0%
Alarm Board Fund
153,000
153,000
0
0.0%
Audit Fund
37,759
37,981
222
0.6%
Annexation Fund
58,200
58,200
0
0.0%
Motor Fuel Tax Fund
816,606
642,610
(173,996)
-21.3%
Developer Donations
42,540
42,540
0
0.0%
Developer Donations (Parks)
91,150
91,150
0
0.0%
TIF Fund
401,000
326,000
(75,000)
-18.7%
Pageant Fund
3,550
3,550
0
0.0%
Tourism Fund
130,050
140,050
10,000
7.7%
Total Special Revenue Funds
1,753,855
1,515,081
(238,774)
-13.6%
Capital Project Funds
Recreation Center Construction Fund
2,000
2,000
0
0.0%
Special Service Area #1A
0
0
0
0.0%
Special Service Area #4
16,847
16,847
0
0.0%
Capital Improvements Fund
822,600
1,261,200
438,600
53.3%
Local Streets Improvements
0
0
0
0.0%
Capital Equipment Fund
277,825
243,225
(34,600)
-12.5%
Total Capital Project Funds
1,119,272
1,523,272
404,000
36.1%
Debt Service Funds
Debt Service Fund
1,520,212
1,556,705
36,493
2.4%
Total Debt Service Funds
1,520,212
1,556,705
36,493
2.4%
Proprietary Funds
Public Works - Water
2,295,485
2,295,485
0
0.0%
Public Works - Wastewater
3,142,848
3,142,848
0
0.0%
Public Works - Uility
0
1,045,985
1,045,985
0.0%
Capital Development Fund
122,000
172,000
50,000
41.0%
Marina Operations Fund
51,500
51,500
0
0.0%
Utility Improvements Fund
16,847
16,847
0
0.0%
Total Proprietary Funds
5,628,680
6,724,665
1,095,985
19.5%
Internal Service Funds
Risk Management Fund
778,000
778,000
0
0.0%
Information Technology Fund
427,597
461,101
33,504
7.8%
Health Insurance Fund
2,557,515
2,854,215
296,700
0.0%
Total Internal Service Funds
3,763,112
4,093,316
330,204
8.8%
Fiduciary Funds
Employee Flexible Spending Fund
80,000
80,000
0
0.0%
Revolving Loan Fund
2,050
1,550
(500)
-24.4%
Police Pension Fund
2,135,577
2,257,374
121,797
5.7%
Development Escrow Fund
500
500
0
0.0%
Retained Personnel Fund
40,000
40,000
0
0.0%
Total Fiduciary Funds
2,258,127
2,379,424
121,297
5.4%
Total All Funds
$34,921,610
$37,174,823
$2,253,213
6.5%
30
Summary of Revenues & Other Financing Sources General Fund
Actual Actual Budget Budget Dollar Percent
2012/13 2013/14 2014/15 2015/16 Change Change
Revenues
Property Taxes
5,131,967
5,124,611
5,150,183
5,135,208
(14,975)
-0.29%
Intergovernmental
11,087,621
11,678,714
10,827,903
11,161,819
333,916
3.08%
Other Local Sources
2,264,606
2,308,843
2,249,783
2,382,685
132,902
5.91%
Miscellaneous
575,257
664,987
650,483
702,648
52,165
8.02%
Total Revenues
19,059,451
19,777,155
18,878,352
19,382,360
504,008
2.67%
2015/16 Budget
Miscellaneous General Fund
4% Revenues by Source
Other Local
Sources
12%
Intergovernmental
57%
Property Taxes
1k 26%
31
Revenue by Source
General Fund
15/16-14/15
2010/11
2011/12
2012/13
2013/14
2014/15
2015/16
Budget
Actual
Actual
Actual
Actual
Budget
Budget
Change
Total Property Taxes
5,017,805
5,154,234
5,131,967
5,124,611
5,150,183
5,135,208
(14,975)
Intergovernmental
Sales Tax
6,369,715
6,498,608
6,276,057
6,684,864
6,442,779
6,565,739
122,960
Local Sales Tax
524,080
1,945,024
1,889,994
1,984,108
1,863,724
1,891,680
27,956
State Income Tax
2,130,030
2,286,926
2,553,914
2,577,574
2,209,000
2,450,000
241,000
State Replacement Tax
38,999
65,089
63,090
74,513
60,000
65,000
5,000
State Pull Tabs
1,821
1,724
1,313
1,729
2,400
2,400
-
Inter Track Wagering
88,251
90,434
82,759
65,150
75,000
62,000
(13,000)
State Telecommunications
177,134
195,439
172,143
163,424
175,000
125,000
(50,000)
State Grants
52,442
90,972
48,351
127,352
Total
9,382,472
11,174,216
11,087,621
11,678,714
10,827,903
11,161,819
333,916
Other Local Sources
Franchise Fees
167,121
219,719
297,253
295,166
298,000
298,000
-
Licenses and Permits
299,043
331,235
344,664
439,510
408,511
472,822
64,311
Fines and Forfeitures
638,045
463,916
407,230
405,023
379,000
368,000
(11,000)
Charges and Services
1,109,722
1,244,251
1,207,260
1,166,945
1,162,272
1,241,863
79,591
Interest Income
7,118
3,493
8,199
2,199
2,000
2,000
-
Total
2,221,049
2,262,614
2,264,606
2,308,843
2,249,783
2,382,685
132,902
Miscellaneous
Donations
17,950
19,555
14,823
17,772
14,853
14,853
-
Reimbursements
315,188
569,760
429,995
532,910
562,630
614,795
52,165
Other Miscellaneous
309,918
168,153
130,439
114,305
73,000
73,000
-
Total
643,056
757,468
575,257
664,987
650,483
702,648
52,165
Total General Fund Revenues
17,264,382
19,348,532
19,059,451
19,777,155
18,878,352
19,382,360
504,008
32
Historical Trend Maior Revenue Sources
General Fund
Property Tax Revenue
5,160,000
5,155,000
5,150,000
5,145,000
5,140,000
5,135,000
m
6
G
5,130,000
5,125,000
_
5,120,000
5,115,000
5,110,000
5,105,000
2011/12 Actual
2012/13 Actual
2013/14 Actual
2014/15 Actual
2015/16 Budget
7.Seriesl
1 5,154,234
5,131,967
5,124,611
5,134,224
5,135,208
State Sales Tax Revenue
$7,000,000
$6,800,000
$6,600,000
$6,400,000
c $6,200,000
I�I�t
$6,000,000
$5,800,000
-
$5,600,000
$5,400,000
2009/10 Actual
2010/11 Actual
2 111/12 Actual
2012/13 Actual
2013/14 Actual
2014/15 Budget
2015/16 Budget
■Sene:s
5,962,527
6,369,715
1 6,473,004
1 6,276,057
6,684,864
6,652,738
6,565,739
33
Historical Trend Major Revenue Sources
General Fund
Income Tax Revenue
3,000,000
2,500,000
2,000,000
c 1,500,000
c
1,000,000
I
i
500,000
0 2009/10 Actual 2010/11 Actual 2011/12 Actual 2012/13 Actual 2013/14 Actual 2014/15 Estimate 2015/16 Budget
Seriesl 2,088,956 2,130,030 1 2,286,926 1 2,553,914 2,577,574 2,387,758 2,45Q000
34
Expense Budget 2015116 All Funds
Dollar
Percent
2013/14
2014/15
2015/16
Change
Change
General Government
2,773,865
2,613,758
2,671,601
57,843
2.21%
Public Safety
9,923,127
10,394,100
10,878,779
484,679
4.66%
Public Works
9,440,595
10,125,009
10,524,971
399,962
3.95%
Culture and Recreation
2,005,412
2,341,139
2,390,632
49,493
2.11%
Capital Projects
2,991,521
3,313,883
6,515,725
3,201,842
96.62%
Comm. & Econ. Dev.
711,826
733,772
741,793
8,021
1.09%
Debt Service
1,585,979
1,558,350
1,556,555
(1,795)
-0.12%
Other
3,124,328
3,287,847
3,598,808
310,961
9.46%
Total
32,556,653
34,367,858
38,878,864
4,511,006
13.13%
Other 2015/16 Budget General
9% Expenditures by Function* Government
7%
Debt Service
Comm. & Econ. 4—%
Dev.
2% Public Safety
28%
Capital Projects
17%
Culture and
Recreation
6% Public Wor
27%
*Note: Total does not include interfund transfers
35
Expenditures by Budget Unit General Fund
Actual
Actual
Budget
Budget
Dollar
Percent
2012/13
2013/14
2014/15
2015/16
Change
Change
Administration
1,981,790
1,591,027
1,409,154
1,408,587
(567)
-0.04%
Elected Officials
148,786
142,658
163,821
171,868
8,047
4.91%
Comm & Econ Dev.
576,176
582,468
611,644
631,102
19,458
3.18%
Finance
2,195,474
2,100,660
2,308,470
2,849,272
540,802
23.43%
Police
8,375,471
8,773,762
9,024,529
9,457,631
433,102
4.80%
Police Commission
3,940
7,333
6,453
6,453
-
0.00%
Public Works - Admin
243,638
253,169
261,205
271,713
10,508
4.02%
Public Works - Streets
2,707,143
2,962,286
2,912,148
2,862,655
(49,493)
-1.70%
Parks & Recreation
1,936,736
1,771,480
2,160,570
2,320,643
160,073
7.41%
18,169,154 18,184,843 18,857,994 19,979,924 1,121,930 5.95%
2015/16 Budget
General Fund
Expenditures by Budget Unit
Parks & Recreation
Public Works - 12%
Streets
14%
Public Works -
Admin
2%
Police Commission
0%
Administration
Elected Officials
1%
7%
_Comm & Econ Dev.
3%
cs
Finance
14%
Police
I F 47%
36
Expenditures by Category General Fund
Actual
Actual
Budget
Budget
Dollar
Percent
2012/13
2013/14
2014/15
2015/16
Change
Change
Personnel
12,359,946
12,826,464
13,323,487
13,891,360
567,873
4.26%
Contractual
1,542,668
1,657,086
1,821,341
1,814,800
(6,541)
-0.36%
Supplies
817,561
821,011
813,360
815,745
2,385
0.29%
Other
2,761,305
1,983,368
2,169,405
2,723,819
554,414
25.56%
Debt Service
684,531
719,451
692,826
729,960
37,134
5.36%
Capital
3,415
177,462
37,575
4,240
(33,335)-88.72%
Total
18,169,426
18,184,842
18,857,994
19,979,924
1,121,930
5.95%
2015/16 Budget
General Fund
Debt Service Expenditures by Category
4%
Capital
Other 0%
14%
Supplies ._
4% %-
Contractual
9%
Personnel
69%
37
Expense Budget 2015/16 All Funds
Total
Net
Budget
Transfers
Budget
General Fund
Administration
$1,408,587
$101,474
$1,307,113
Elected Offices
171,868
16,412
155,456
Community & Economic Development
631,102
63,849
567,253
Finance Department
2,849,272
2,129,375
719,897
Police Commission
6,453
0
6,453
Police Department
9,457,631
496,579
8,961,052
Public Works -Administration
271,713
23,098
248,615
Public Works - Streets
2,862,655
112,586
2,750,069
Parks and Recreation
2,320,643
124,761
2,195,882
Total General Fund
19,979,924
3,068,134
16,911,790
Special Revenue Funds
Band Fund
15,000
0
15,000
Civil Defense Fund
3,200
0
3,200
Alarm Board Fund
60,000
0
60,000
Audit Fund
36,380
0
36,380
Annexation Fund
45,000
35,000
10,000
Motor Fuel Tax Fund
1,706,912
400,262
1,306,650
Developer Donations
42,540
0
42,540
Developer Donations (Parks)
156,200
0
156,200
TIF Fund
324,095
242,095
82,000
Pageant Fund
3,550
0
3,550
Tourism Fund
95,000
75,000
20,000
Total Special Revenue Funds
2,487,877
752,357
1,735,520
Capital Project Funds
Recreation Center Construction Fund
4,880,000
80,000
4,800,000
Special Service Area #1A
0
0
0
Special Service Area #4
16,847
16,847
0
Capital Improvements Fund
1,452,500
0
1,452,500
Local Streets Improvements
0
0
0
Capital Equipment
263,225
0
263,225
Total Capital Project Funds
6,612,572
96,847
6,515,725
Debt Service Funds
Debt Service Fund
1,556,555
0
1,556,555
Total Debt Service Funds
1,556,555
0
1,556,555
Proprietary Funds
Public Works - Water
2,691,104
1,078,768
1,612,336
Public Works - Wastewater
4,246,485
731,169
3,515,316
Public Works - Utility
1,045,985
0
1,045,985
Capital Development Fund
0
0
0
Marina Operations Fund
46,000
0
46,000
Utility Improvements Fund
0
0
0
Total Proprietary Funds
8,029,574
1,809,937
6,219,637
Internal Service Funds
Risk Management Fund
689,206
20,085
669,121
Information Technology Fund
461,100
8,345
452,755
Health Insurance Fund
2,849,687
0
2,849,687
Total Internal Service Funds
3,999,993
8,345
3,971,563
Fiduciary Funds
Employee Flexible Spending Fund
80,000
0
80,000
Revolving Loan Fund
0
0
0
Police Pension Fund
1,851,574
3,500
1,848,074
Development Escrow Fund
0
0
0
Retained Personnel Fund
40,000
0
40,000
Fiduciary Funds
1,971,574
3,500
1,968,074
Total All Funds
$44,638,069
$5,739,120
$38,878,864
38
Expense Budget 2015/16 All Funds
Total
Total
Expenditures
Expenditures
Percentage
2014/15
2015/16
Difference
Change
General Fund
Administration
$1,409,154
$1,408,587
($567)
-0.04%
Elected Offices
163,821
171,868
8,047
4.91%
Community & Economic Development
611,644
631,102
19,458
3.18%
Finance Department
2,308,470
2,849,272
540,802
23.43%
Police Commission
6,453
6,453
0
0.00%
Police Department
9,024,529
9,457,631
433,102
4.80%
PublicWorks- Administration
261,205
271,713
10,508
4.02%
Public Works - Streets
2,912,148
2,862,655
(49,493)
-1.70%
Parks and Recreation
2,160,570
2,320,643
160,073
7.41%
Total General Fund
18,857,994
19,979,924
1,121,930
5.95%
Special Revenue Funds
Band Fund
15,000
15,000
0
0.00%
Civil Defense Fund
3,200
3,200
0
0.00%
Alarm Board Fund
45,000
60,000
15,000
33.33%
Audit Fund
35,710
36,380
670
1.88%
Annexation Fund
45,000
45,000
0
0.00%
Motor Fuel Tax Fund
1,688,960
1,706,912
17,952
1.06%
Developer Donations
42,540
42,540
0
0.00%
Developer Donations (Parks)
264,200
156,200
(108,000)
-40.88%
TIF Fund
335,450
324,095
(11,355)
-3.39%
Pageant Fund
3,550
3,550
0
0.00%
Tourism Fund
95,000
95,000
0
0.00%
Total Special Revenue Funds
2,573,610
2,487,877
(85,733)
-3.33%
Capital Project Funds
Recreation Center Construction Fund
550,000
4,880,000
4,330,000
0.00%
Special Service Area #1A
0
0
0
0.00%
Special Service Area #4A
16,847
16,847
0
0.00%
Capital Improvements Fund
891,600
1,452,500
560,900
0.00%
Local Street Improvements Fund
40,500
0
(40,500)
Capital Equipment Fund
277,825
263,225
(14,600)
0.00%
Total Capital Project Funds
1,776,772
6,612,572
4,835,800
272.17%
Debt Service Funds
Debt Service Fund
1,558,350
1,556,555
(1,795)
-0.12%
Total Debt Service Funds
1,558,350
1,556,555
(1,795)
-0.12%
Proprietary Funds
Public Works - Water
2,648,570
2,691,104
42,534
1.61 %
Public Works - Wastewater
3,856,534
4,246,485
389,951
10.11 %
Public Works - Utility
0
1,045,985
Capital Development Fund
0
0
0
0.00%
Marina Operations Fund
46,000
46,000
0
0.00%
Utility Improvements Fund
1,594,458
0
(1,594 458)
0.00%
Total Proprietary Funds
8,145,562
8,029,574
(1,161,973)
-14.27%
Internal Service Funds
Risk Management Fund
677,335
689,206
11,871
1.75%
Information Technology Fund
427,597
461,100
33,503
7.84%
Health Insurance Fund
2,550,597
2,849,687
299,090
11.73%
Total Internal Service Funds
3,655,529
3,999,993
344,464
9.42%
Fiduciary Funds
Employee Medical Flexible Spending Fund
80,000
80,000
0
0.00%
Revolving Loan Fund
0
0
0
0.00%
Police Pension Fund
1,800,925
1,851,574
50,649
2.81%
Development Escrow Fund
76,000
0
(76,000)
0.00%
Retained Personnel Fund
40,000
40,000
0
0.00%
Fiduciary Funds
1,996,925
1,971,574
(25,351)
-1.27%
Total All Funds
$38.564.742
44.638.069
$5.027. 442
13.04%
39
Authorized Personnel
General Fund
Administration
Elected Offices
Community Development
Finance Department
Police Department
Public Works - Administration
Public Works - Streets
Parks and Recreation
Total General Fund
Info Technology Fund
Water/Sewer Fund
Water Division
Wastewater Division
Utility Division
Total Water/Sewer Fund
Total City of McHenry
Population
Employees per 1,000 Population
All Funds
2015/16
Change from
Budget
Prior Year
2014/15
2013/14
2012/13
2011/12
2010/11
2009/10
2008/09
2007/08
6.00
0.00
6.00
8.00
8.00
8.00
8.00
8.00
9.00
13.00
1.00
0.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
5.50
0.00
5.50
5.50
6.50
6.50
6.50
6.50
8.50
7.50
4.60
0.00
4.60
4.60
4.60
4.35
5.85
6.45
6.95
6.95
61.88
1.00
60.88
60.88
60.88
60.60
60.00
63.00
66.00
68.00
2.00
0.00
2.00
2.00
2.00
2.00
2.00
1.00
3.00
2.00
18.00
(1.00)
19.00
18.00
18.00
18.00
18.00
19.00
19.00
21.00
13.00
1.00
12.00
10.00
11.00
11.00
11.00
12.60
13.10
13.10
111.98
1.00
110.98
109.98
111.98
111.45
112.35
117.55
126.55
132.55
2.00
0.00
2.00
2.00
2.00
2.00
2.00
2.00
2.00
1.00
4.50
(5.00)
9.50
9.50
9.50
10.50
10.50
10.50
10.50
10.50
7.00
(3.00)
10.00
9.00
10.00
10.00
10.00
10.00
10.00
10.00
8.00
8.00
19.50
0.00
19.50
18.50
19.50
20.50
20.50
20.50
20.50
20.50
133.48
1.00
132.48
130.48
133.48
133.95
134.85
140.05
149.05
154.05
26,992 26,992 26,992 26,992 26,992 27,525 25,491 25,491 25,236
4.95 4.91 4.83 4.95 4.96 4.90 5.49 5.85 6.10
40
Personnel Expenses All Funds
Budget
Budget
Percent
2014/15
2015/16
Change
Change
General Fund
Administration
$756,789
$761,213
$4,424
0.6%
Elected Officials
110,416
116,881
6,465
5.9%
Comm. & Econ Dev.
502,075
526,096
24,021
4.8%
Finance
363,836
386,417
22,581
6.2%
Police Commission
1,453
1,453
0
0.0%
Police Department
8,066,591
8,472,387
405,796
5.0%
Public Works - Administration
224,776
234,735
9,959
4.4%
Public Works - Street
1,977,995
1,928,129
(49,866)
-2.5%
Parks & Recreation
1,319,556
1,464,049
144,493
11.0%
Total General Fund
13,323,487
13,891,360
567,873
4.3%
Water/Sewer Fund
Water
1,032,839
534,258
(498,581)
-48.3%
Wastewater
1,023,550
799,981
(223,569)
-21.8%
utility
0
839,935
839,935
0.0%
Total Water/Sewer Fund
2,056,389
2,174,174
117,785
5.7%
IT Fund
205,678
212,549
6,871
3.3%
Total Personnel Expenses
$15,585,554 $16,278,083 $692,529
4.4%
Ell
Schedule of Anticipated Fund Balance All Funds
Ending
Beginning Excess Balance
Fund Balance 5/1/15 Revenues Appropriations (Deficit) 4/30116
General Fund 8,672,916 19,382,360 19,979,924 (597,564) 8,075,352
Special Revenue Funds
Band Fund
11,757
15,000
15,000
-
11,757
Civil Defense Fund
(8,636)
5,000
3,200
1,800
(6,836)
Alarm Board Fund
161,953
153,000
60,000
93,000
254,953
Audit Fund
16,708
37,981
36,380
1,601
18,309
Annexation Fund
233,135
58,200
45,000
13,200
246,335
Motor Fuel Tax Fund
1,116,254
642,610
1,706,912
(1,064,302)
51,952
Developer Donations
723,841
133,690
198,740
(65,050)
658,791
TIF Fund
(492,196)
326,000
324,095
1,905
(490,291)
Pageant Fund
(4,636)
3,550
3,550
-
(4,636)
Tourism Fund
246,707
140,050
95,000
45,050
291,757
Capital Project Funds
Recreation Center Construction Fund
5,483,092
2,000
4,880,000
(4,878,000)
605,092
Special Service Area #1A
-
-
-
-
-
Special Service Area #4
23
16,847
16,847
-
23
Special Service Area #6
(179,115)
-
-
-
(179,115)
Capital Improvements Fund
723,515
1,261,200
1,452,500
(191,300)
532,215
Local Street Improvements Fund
-
-
-
-
-
Capital Equipment Fund
501,157
243,225
263,225
(20,000)
481,157
Debt Service Funds
Debt Service Fund
393,928
1,556,705
1,556,555
150
394,078
Proprietary Funds
Public Works - Water/Wastewater/Utility
33,975,273
6,484,318
7,983,574
(1,499,256)
32,476,017
Capital Development Fund
1,125,069
172,000
-
172,000
1,297,069
Marina Operations Fund
403,766
51,500
46,000
5,500
409,266
Utility Improvements Fund
11,184,201
16,847
-
16,847
11,201,048
Internal Service Funds
Risk Management Fund
573,450
778,000
689,206
88,794
662,244
Information Technology Fund
187,570
461,101
461,100
1
187,571
Employee Insurance Fund
23,056
2,854,215
2,849,687
4,528
27,584
Fiduciary Funds
Employee Medical Flexible Spending Fund
-
80,000
80,000
-
-
Revolving Loan Fund
113,588
1,550
-
1,550
115,138
Police Pension Fund
20,479,175
2,257,374
1,851,574
405,800
20,884,975
Development Escrow Fund
-
500
-
500
500
Retained Personnel Fund
-
40,000
40,000
-
-
Eliminations & Adjustments
-
-
-
-
-
85,665,551
37,174,823
44,638,069
(7,463,246)
78,202,305
42
MA rd a
HEART OF THE FOX MR1111
GENERAL FUND OPERATING BUDGETS
Administration
Elected Officials
Community & Economic Development
Finance
Police Commission
Police
Public Works Administration
Public Works - Streets Division
Parks & Recreation
43
Administration Office
Mission Statement
It is the mission of the Administration Office to provide general administrative services for the City and
coordinate, supervise, and direct the affairs of all departments. In addition, the Administrative Office
serves as the primary point of communication with the City Council, established Council committees, and
the general public.
Primary Functions -4 There are three primary operating functions within the Administration Office.
■ City Administrator's Office: Has primary responsibility for the day to day operation of the City
and all departments. The Administrator's Office prepares all agendas and provides information to
the City Council and various committees for review prior to decision making. The
Administrator's Office is also directly responsible for the City's human resources function, which
includes risk management.
■ Facilities and Business District Maintenance: Responsible for the information technology and
maintenance of City buildings, the downtown business districts, and the Riverwalk.
■ Development Services: Oversight of Public Works and Community Development departments
in reviewing and managing development and redevelopment projects.
2014/15 Accomplishments
■ Directed a focus on economic development activities with the creation of Director of Economic
Development staff position and the development and implementation of specific economic
development strategies.
■ Developed and submitted a balanced operating budget for FY15/16. This included a
recommendation to amend expiring bargaining unit contracts with FOP/Unit 1 (Patrol) and Local
150 (Public Works/Parks) in an effort to evaluate the impact of potential State budget reductions.
■ Assumed direct day-to-day oversight responsibility for the Department of Community and
Economic Development.
■ In coordination with Human Resources Manager, developed and implemented merit -based
performance evaluation system for non -bargaining unit employees.
■ Directed the development of a Popular Annual Financial Report (PAFR) to be mailed with the
summer edition of the City newsletter.
■ Provided oversight and direction on a number of important municipal and/or related projects.
These included: movement through the design to construction phase for the McHenry Recreation
Center; additional design for the consolidation of the Central Wastewater Treatment Plant and
South Wastewater Treatment Plant; and, transition of the McHenry Shores Water Company to a
private firm — Aqua Illinois — and switching of sanitary sewer charges for residents from a "flat"
monthly fee to one that is based on usage.
■ Management of "Facebook" and "Twitter" pages for the timely transmittal of information to the
public.
■ Directed the recruitment process for the hiring of a replacement Human Resource Manager.
44
Administration Office
• Expanded 5-year Capital Improvement Program (CIP) by integrating strategic objectives
identified through the strategic planning process.
2015/16 Goals and Objectives
■ Coordinate with Department Directors to identify areas of cost savings in preparation for any
funding reductions imposed by the State of Illinois.
■ Coordinate with the Finance Director to achieve an annual budget document worthy of the
GFOA "Distinguished Budget Award".
■ Coordinate with staff and contracted firms to construct recreation facility and cause for the
consolidation of the Central and South Wastewater Treatment Plants.
■ Recommend water and sewer rates that insure appropriate operation and maintenance costs for
the water and sewer systems and provides a source of funding for long-term system
improvements.
■ Coordinate business inspection services with the McHenry Township Fire Protection District to
increase efficiency and lessen the number of times a business has to accommodate inspection
visits.
■ Work with the Police Department to evaluate the potential for expanded dispatch services.
ADMINISTRATION OFFICE
BUDGET SUMMARY
8 MONTH
2013/14 2014/15 2014/15 2015/16 INCREASE
ACTUAL BUDGET ACTUAL BUDGET (DECREASE
EXPENDITURES
PERSONNEL
$941,433
$756,789
$466,771
$761,213
$4,424
CONTRACTUAL
422,501
510,400
249,832
463,400
(47,000
SUPPLIES
82,855
27,700
40,762
67,700
40,000
OTHER
144,767
114,265
70,318
116,274
2,009
CAPITAL EXPENDITURES
0
0
0
0
0
TOTAL
$1,591,556
$1,409,154
$827,683
$1,408,587
($567
PERSONNEL AUTHORIZATION
TOTAL
FUNDING SOURCE
GENERAL REVENUES
TRANSFER FROM OTHER FUNDS
TOTAL
INCREASE
2012/13 2013/14 2014/15 2015/16 (DECRE)
8.00 8.00 6.00 6.00 0.00
2014/15 2014/15 2015/16 2015/16
AMOUNT PERCENTAGE AMOUNT PERCENTAGE
$1,406,654 99.8
2,500 0.2
$1,409,154 100.0
$1,406,087 99.8
2,500 0.2
$1,408,587 100.0
45
Administration Office
Budget Highlights
■ Personnel costs increase due to providing non -bargaining unit employees merit -based increases as
well as increases to retirement and insurance costs.
■ Contractual services decrease $50,000 due to a decrease in legal fees.
■ Supplies expenses increase $40,000 due to moving expenses from the Finance Department.
■ Transfer for Information Technology increases $2,000 to cover additional IT expenses including
personnel costs and software maintenance.
Personnel Review
City Administrator
Deputy City Administrator
Deputy City Administrator
Superintendent of Parks & Downtown Facilities
Human Resources Manager
Executive Assistant
Street Maintenance Worker
Bldq & Gmds Custodian
Sickpay Buyback/Health Insurance Incentive
Administrator Car Allowance
Salary Adjustment
Severance
Longevity Bonus
Board & Commission
IMRF Retirement
FICA/Medicare
Life Insurance
Uniform Allowance
Subtotal
Administration Office
Personnel Schedule
2014/15 Budget
Dollars
Number of
Grade
Budgeted
Employees
E-29
$151,439
1.00
E-25
97,382
1.00
E-25
85,139
1.00
E-19
0
0.00
E-19
85,123
1.00
N-9
59,946
1.00
I-C
0
0.00
I -A
44,771
1.00
500
0
3,023
4,200
905
0
1,220
536,888 6.00
72,042
41,072
96,566
3,857
414
450
214,401
$751, 289
Note: E = Exempt; N = Non -Contract, Non -Exempt
2015/16 Budget
Dollars Number of
Budgeted Employees
$151,439
1.00
97,382
1.00
85,139
1.00
0
0.00
85,123
1.00
59,946
1.00
0
0.00
45,667
1.00
500
0
5,527
4,200
12,825
0
0
3,240
550,988
6.00
73,946
42,151
83,561
4,203
414
450
204,725
$755,713
Change
Dollars Number
udgeted EmpIOVE
0
0
0
0
0
0
896
0
0
2,504
0
11,920
0
(1,220)
0
14,100
1,904
1,079
(13,005)
346
0
0
(9,676)
$4,424
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00 I
ED,
Elected Officials
Mission Statement
It is the mission of the Mayor, City Council, and City Clerk to serve the citizens of the City of McHenry.
Primary Functions --+ The following are the primary functions for each of the elected offices.
Mayor's Office: The primary function of the Mayor is to provide leadership, initiative, and
direction necessary to provide quality services to the citizens of McHenry. Recommend
appointment of members to the various Boards and Commissions within the City.
City Council: The City Council is the legislative body for the City of McHenry. Adoption of
laws, ordinances and resolutions, as deemed proper to promote and protect the high level of
service quality and financial stability in the City.
■ City Clerk: The City Clerk has responsibility for taking minutes for all regular City Council
meetings, standing council committee meetings, and planning and zoning board meetings. The
City Clerk is also responsible for records management.
2015/16 Goals and Objectives
■ Continue to support the implementation of economic development initiatives for the
redevelopment of vacant and/or underutilized properties throughout the community.
■ Promote, encourage, initiate, and realize redevelopment in the downtown areas in the City of
McHenry.
■ Make customer service a priority in all interactions between organization and residents of the City
of McHenry and between employees within the organization.
■ Plan for and provide public facilities and infrastructure to meet the needs of the community and
organization.
■ Maintain the community as a safe place to live, work, and play.
47
Elected Officials
Budget Summary
ELECTED OFFICALS
BUDGET SUMMARY
8 month
2013/14
2014/15
2014/15
2015/16
INCREASE
ACTUAL
BUDGET
ACTUAL
BUDGET
(DECREASE)
EXPENDITURES
PERSONNEL
$95,506
$110,416
$58,347
$116,881
$6,465
CONTRACTUAL
15,161
18,275
8,076
18,275
0
SUPPLIES
174
1,000
57
1,000
0
OTHER
31,817
34,130
12,213
35,712
1,582
CAPITAL EXPENDITURES
0
0
0
0
0
TOTAL
$142,658
$163,821
$78,693
$171,868
$8,047
INCREASE
PERSONNEL AUTHORIZATION
2012/13 2013/14
2014/15
2015/16
(DECREASE)
TOTAL
1.00 1.00
1.00
1.00
0.00
2014/15
2014/15
2015/16
2015/16
AMOUNT
PERCENTAGE
AMOUNT
PERCENTAGE
FUNDING SOURCE
GENERAL REVENUES
$163,821
100.0
$171,868
100.0
TOTAL
$163,821
100.0
$171,868
100,0
Budget Highlights
Personnel expenses increase $6,465 due to merit -based increases for non -bargaining unit
employees, increases to retirement and insurance costs, as well as increases to Aldermen's pay.
■ Purchase of services, information technology costs increase by $1,582 to cover actual expenses
within that fund including increases in personnel costs as well as software maintenance costs.
48
Elected Officials
Personnel Review
Mayor
City Clerk
Office Assistant
Overtime
Sickday Buyback Incentive
Longevity Bonus
Salary Adjustment
Total
Benefits
IMRF Retirement
Insurance
xm Allowance
Elected Officials
Personnel Schedule
2014/15 Budget
Dollars Number of
Grade
Budgeted Employees
Elected
$17,300
Elected
25,200
Elected
9,750
N-2
36,943 1.00
500
0
0
0
89,693 1.00
5,055
6,862
8,332
405
69
0
20,723
$110,416
2015/16 Budget
Dollars Number of
Budgeted Employees
$17,300
29,400
9,750
36,943 1.0C
500
0
0
924
94,817 1.00
5,180
7,254
9,144
417
69
0
22,064
$116,881
Change
Dollars Number of
Budgeted Employees
$0 0.00
4,200 0.00
0 0.00
0 0.00
0
0
0
924
5,124 0.00
125
392
812
12
0
0
1.341
$6,465
49
Community & Economic Development
Mission Statement
The Community and Economic Development Department's mission is to foster orderly growth and
development of the City, provide quality customer service and timely responses to inquiries and requests
for service. The department is also responsible for improving the quality of life for the residents of the
community and assist in attracting, retaining and serving businesses, as well as protecting the health,
safety and welfare of the community through proper administration and enforcement of City ordinances,
property maintenance codes, zoning regulations and building codes.
Primary Functions —> The following are the department's primary areas of responsibility:
■ Planning and Economic Development: The Community and Economic Development
Department is the first point of contact with potential businesses, developers, citizens and elected
officials regarding service inquiries, development projects and potential new business
opportunities. The department is responsible for effectuating orderly physical and economic
growth of the City, attracting, retaining and serving businesses and residents in the community.
■ Neighborhood Services: The department is responsible for the enforcement of the International
Property Maintenance Code and other City ordinances, responding in a timely manner to citizen
inquires and requests for service in order to maintain the high quality of life citizens enjoy on a
daily basis.
■ Construction Services: The department reviews all minor, temporary use, residential and
commercial permits and provides building, mechanical, electrical inspections for existing and
new construction.
2014/15 Accomplishments
■ Continued multi -faceted effort to retain existing businesses and attract new businesses to the
City.
■ Continued to improve customer service by establishing performance goals for processing
permits.
■ Implemented BS&A building permit software/code enforcement system to improve
department permit processing efficiency and institute more proactive code enforcement
approach throughout City.
■ Implemented building inspection and code enforcement services program for the Village of
Prairie Grove.
■ Reviewed municipal code to identify and address inconsistencies, ways to be more business -
friendly and proposed updated regulations to reflect current trends including amendments to
the fence and sign ordinances.
■ Reviewed zoning ordinance specifically regarding screening of mechanical equipment and
temporary uses.
■ Revisited flea market ordinance to address some gray areas encountered by staff in its
practical application and enforcement.
■ Reviewed potential regulations and policy implications with regards to locating medical
marijuana dispensaries and production/manufacturing facilities in the City.
■ Worked with McHenry County Highway Division and the cities of Woodstock and Crystal
Lake on promoting Pace Paratransit Program. Entered in to multi jurisdictional agreement
regarding the same.
50
Community & Economic Development
■ Considered and analyzed the potential of licensing contractors.
■ Began the development of an Intergovernmental Agreement and procedures to work more
closely with McHenry Township Fire Protection District (MTFPD) for the conducting of
annual business inspections.
■ Coordinated efforts with the McHenry Police Department and MTFPD on addressing
abandoned, distressed and vacant properties.
■ Provided additional assistance to downtown/small businesses and compile list of resources
for the same. Worked cooperatively with key property owners and McHenry Area Chamber
of Commerce, downtown business owners and other relevant organizations and parties in
seeking additional ways to revitalize downtown, working more closely with businesses with
the goal being to attract additional investment in the downtown area, retain existing
businesses, promote investment in older properties and assist smaller businesses struggling to
keep doors open.
■ Analyzed report completed by Chicago Metropolitan Agency for Planning in 2013 and
recommend amendments to the comprehensive plan, zoning ordinance, municipal code and
subdivision control and development ordinance to address and improve upon groundwater
protection, decreasing stormwater runoff and increasing more on -site stormwater infiltration.
• Continued to work with taxing bodies in formulating boiler plate agreement and policy to
establish and implement incentive review procedures in an effort to encourage expedited
occupancy of large vacant buildings and underutilized properties.
■ Provided building inspections for the City of Washington,ll,.
2015/16 Goals and Objectives
■ Continue to provide highest quality of building inspection and code enforcement
services to the residents of McHenry through a proactive, educational, and
compliance based approach.
■ Continue implementation of BS&A building permit/code enforcement software,
including development of customized reports, to enhance permitting/inspection
services.
■ Development and implement an intergovernmental agreement with the McHenry
Township Fire Protection District to coordinate business inspections and assist in
achieving building life/safety compliance.
■ Continue aggressive implementation of economic development efforts through
support of Director of Economic Development.
■ Coordinate economic development strategic planning session with the McHenry Area
Chamber of Commerce.
■ Recommend stakeholders for the establishment of an ad -hoc Economic Development
Advisory Committee.
51
Community & Economic Development
Budget Summary
CONSTRUCTION & NEIGHBORHOOD SERVICES
BUDGET SUMMARY
8 MONTH
2013/14
2014/15
2014115
2015/16
INCREASE
ACTUAL
BUDGET
ACTUAL
BUDGET
(DECREASE)
EXPENDITURES
PERSONNEL
$480,278
$502,075
$315,780
$526,096
$24,021
CONTRACTUAL
31,487
32,212
35,955
32,212
0
SUPPLIES
7,041
13,000
10,743
7,000
(6,000)
OTHER
63,664
64,357
41,608
65,794
1,437
CAPITAL EXPENDITURES
0
0
0
0
0
TOTAL
$582,470
$611,644
$404,086
$631,102
$19,458
INCREASE
PERSONNEL AUTHORIZATION
2011/12
2013/14
2014115
2015/16
(DECREASE)
TOTAL
6.50
6.00
5.50
5.50
0.00
2014/15
2014/15
2015/16
2015/16
AMOUNT
'ERCENTAGE
AMOUNT
PERCENTAGE
FUNDING SOURCE
BUILDING PERMIT FEES
82,688
13.5
82,688
13.1
PLUMBING INSPECTION
5,513
0.9
5,513
0.9
ZONING/PLAT FEES
6,000
1.0
6,000
1.0
PROPERTY FINES
4,700
0.8
4,700
0.7
GENERAL REVENUES
512,743
83.8
532,201
84.3
TOTAL
$611,644
100.0
$631,102
100.0
Budget Highlights
• Personnel expenses increase $24,021 due to merit -based increases for non -bargaining unit
employees as well as increases to retirement and insurance costs.
• Supplies costs are decreased due to onetime costs for mobile computers and printers in FYI 4-15.
■ Purchase of services, information technology costs increase by $1,437 to cover actual expenses
within that fund including increases in personnel costs as well as software maintenance costs.
52
Community & Economic Development
Personnel Review
Construction & Neighborhood Services
Personnel
Schedule
2014/15
Budget
2015116
Budget
Change
Dollars
Number of
Dollars
Number of
Dollars
Number of
Salaries
Grade
Budgeted
Employees
Budgeted
Employees
Budgeted
Employees
Supt. Commercial Inspections
E-21
$83,243
1.00
$83,243
1.00
$0
0.00
Supt. Residential Inspections
E-16
78,258
1.00
78,258
1.00
0
0.00
Plumbing Inspector
N-12
33,448
0.50
33,448
0.50
0
0.00
Inspector II
N-11
0
0.00
0
0.00
0
0.00
Plans Examiner
N-9
50,844
1.00
50,844
1.00
0
0.00
Planner I
E-6
0
0.00
0
0.00
0
0.00
Code Compliance Inspector
N-8
46,746
1.00
46,746
1.00
0
0.00
Admin Assistant
N-4
44,195
1.00
44,195
1.00
0
0.00
Overtime
1,500
1,500
0
Longevity Bonus
1,375
0
(1,375)
Sickday Payback Incentive
211
211
0
Salary Adjustment
0
8,461
8,461
Subtotal
339,820
5.50
346,906
5.50
7,086
0.00
Benefits
IMRF Retirement
45,876
46,832
956
FICA/Medicare
25,996
26,538
542
HealthNision
86,289
101,104
14,815
Dental
3,714
4,336
622
Life Insurance
380
380
0
Uniform Allowance
0
0
0
Subtotal
162,255
179,190
16,935
Total
$502, 075
$526, 096
$24, 021
Note: N = Non -Exempt; E = Exempt
53
Finance Department
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.
Primary Functions --> There are three primary operating functions within the Finance Department.
■ 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.
2014/15 Accomplishments
■ Worked with Tyler Technologies to convert all data to the new software.
■ Worked to refund (refinance a current bond issuance by issuing new bonds) two bonds a 2006
TIF bond and a 2007 GO Bond to realize interest savings. This will coincide with the issuance of
bonds for the Recreation Center Building.
■ Began working with the state to join the Local Debt Recovery Program in order to capitalize on
the states resources to collect bad debt.
■ Continued to clean up vehicle sticker records in the new software.
2015/16 Goals and Objectives
■ Improve management of the City's investment portfolio, including implementing cash flow
modeling and investment strategies.
■ Go live with the new software package which will increase productivity and offer new reporting
methods to residents.
■ Improve communication of information to new residents.
■ Begin using the State of Illinois Local Debt Recovery program in order to be able to take
advantage of garnishing tax return funds for residents that have bad debts.
54
Finance Department
Budget Summary
FINANCE DEPARTMENT
BUDGET SUMMARY
8 months
2013/14
2014/15
2014/15
2015/16
INCREASE
ACTUAL
BUDGET
ACTUAL
BUDGET
(DECREASE)'
EXPENDITURES
PERSONNEL
350,799
$363,836
$238,327
$386,417
$22,581
CONTRACTUAL
52,828
47,680
31,844
49,880
2,200
SUPPLIES
35,707
48,600
5,422
8,600
(40,000)
OTHER
1,661,327
1,848,354
1,172,235
2,404,375
556,021
TOTAL
$2,100,661
$2,308,470
$1,447,828
$2,849,272
$540,802
PERSONNEL AUTHORIZATION
TOTAL
FUNDING SOURCE
PURCHASE OF SERVICE W/S FUND
GENERALREVENUES
TOTAL
INCREASE
2012/13 2013/14 2014115 2015/16
2014/15
2014/15
2015/16
2011/12
BUDGET
PERCENTAGE
BUDGET
PERCENTAGE
$157,337
6.8
$157,337
5.5
2,151,133
93.2
2,691,935
94.5
$2,308,470
100.0
$2,849,272
100.0
Budget Highlights
■ Personnel costs increase due to providing non -bargaining unit employees merit -based increases as
well as increases to retirement and insurance costs.
■ Supplies costs decrease $40,000 due to moving garbage sticker expenses to the administration
department.
■ Other costs increase $556,021. Developer incentives, a sales tax rebate, are expected to be
$275,000 which is $35,000 more than last year. Debt service costs increase $37,134, transfers for
capital items are at $1,305,725, which is an increase of $479,000 over last year, the IT fund
transfer increases $4,887 due to increases in wage and benefits as well as software maintenance.
55
Finance Department
Personnel Review
Finance Department
Personnel Schedule
2014115 Budget
2015/16 Budget
Change
Dollars Number of
Dollars Number of
Dollars
Number of
Salaries
Grade
Budgeted Employees
Budgeted Employees
Budgeted
Employee
Finance Director
E-25
$85,139 1.00
$85,139 1.00
0
0.00
Finance Specialist
N-4
142,993 3.00
135,981 3.00
(7,012)
0.00
Office Assistant
N-1
26,072 0.60
26,072 0.60
0
0.00
Overtime
0
0
0
Sickpay Buyback Incentive
600
3,100
2,500
Salary Adjustment
0
6,257
6,257
Longevity Bonus
1,679
0
(1,679)
Salary Savings
0
0
0
Total
256,483 4.60
256,549 4.60
66
0.00
Benefits
IMRF Retirement
34,625
34,634
9
FICA/Medicare
19,621
19,626
5
HealthNision
50,535
72,516
21,981
Dental
2,255
2,775
520
Life Insurance
317
317
0
Uniform Allowance
0
0
0
Subtotal
107,353
129,868
22,515
Total
$363,836
$386,417
$22,581
Note: E
= Exempt; N = Non -Contract, Non -Exempt
56
Police Commission
Mission Statement
It is the mission of the Police Commission to recruit and promote the best available persons possible for
sworn positions with the McHenry Police Department.
Primary Functions --> The primary function of the Police Commissioners is to select sworn personnel in
accordance with the employment policy of the City of McHenry, as well as to investigate and conduct
hearings regarding complaints alleged against any sworn member of the McHenry Police Department.
Budget Summary
POLICE COMMISSION
BUDGET
SUMMARY
8 month
2013/14
2014/15 2014/15
2015/16
INCREASE
ACTUAL
BUDGET ACTUAL
BUDGET
(DECREASE)
EXPENDITURES
PERSONNEL
$1,453
$1,453 $0
$1,453
$0
CONTRACTUAL
5,880
5,000 5,375
5,000
0
TOTAL
$7,333
$6,453 $5,375
$6,453
$0
2014/15 2014115
2015/16
2011/12
AMOUNT PERCENTAGE
AMOUNT
PERCENTAGE
FUNDING SOURCE
GENERAL REVENUES
$6,453 100.0
$6,453
100.0
TOTAL
$6,453 100.0
$6,453
100.0
Budget Highlights
■ No significant changes.
57
Police Department
Mission Statement
It is the mission of the City of McHenry Police Department to provide quality police services to the
community by promoting a safe environment through police and citizen interaction with emphasis on
integrity, fairness and professionalism.
Primary Functions —)� There are two operating divisions within the Police Department
■ Administration: Administrative Services is responsible for administrative and support services
in divisions that include patrol and support services.
■ Patrol: Personnel assigned to this division are responsible for patrolling the community to deter
and detect criminal activity, respond to calls for service both routine and emergency, and enforce
traffic regulations.
Support Services: The Support Services Division is responsible for tasks that support the efforts
of the Patrol Division. The planning and research section and dispatch section also falls within
this unit.
2014/15 Accomplishments
■ In 2014/15 the McHenry Police Department was proud to hire two new patrol officers and two
new Dispatcher, both dispatchers and one officer were hired to replace vacancies from the
2014/2015 fiscal year, while the second officer was hired through the reactivation of the School
resource Officer Program. We are excited to have Officer Joshua Conway and Samuel Shafer join
our Force. They were sworn in On June 30d' and September 22"d respectively. Kelly Schmitt and
Justine Leibach were hired as a full time Dispatchers in our Communications Center.
■ The McHenry Police Department in an effort to accomplish the agency mission has participated
in the following community based outreach programs during the 2014/2015 year: St. Baldricks
for juvenile cancer, Child Safety Seat inspections, Coffee with the Chief, School Safety, Adopt a
School program (district 15), Dea Drug Take Back Program, and Tobacco Compliance Checks.
■ Reactivation of the School Resource Officer for district 156 with one officer for the two schools.
■ Continued a strong public relations effort through participation in more than seventeen (18)
events geared at volunteerism and community outreach.
■ Remained fiscally responsible and obtained more than $135,000 in grants and partnership funded
law enforcement projects, including $67,996 from School District 156 for the reactivation of the
School Resource Officer position.
■ Received our Forth accreditation award through the Commission on Accreditation for Law
Enforcement (CALEA) helping us to maintain a standard recognized nationally for Law
Enforcement services to the community.
■ Providing dispatching services, for a fee, to neighboring agencies, which has reduced our overall
operational cost of the Center by 25% or approximately $285,353
■ Maintained a high level of patrol/investigation calls for service — nearly 21,000 in 2014.
■ Created multi Jurisdictional Accident investigation team with Johnsburg and Spring Grove Police
Departments
■ Continued participation in over 8,000 hours of internal and external trainings resulting in
improved service to the community.
■ Replaced all outdated Police radios with Starcom2l radios with the majority, of the funding
coming from Grant and Seizure funding.
58
Police Department
2015/16 Goals and Objectives
■ Ensure that the McHenry police Department is active in applying for grants related to equipment
and personnel funding.
■ Determine if more agencies can be added to Multi Jurisdictional accident investigative team,
primarily Woodstock and Lakemoor Police Departments.
■ Place second officer in district 156 school putting a School Resource Officer in each High
School in McHenry.
■ Reduce the number of vehicle accidents involving personal injury or death through increased
seatbelt enforcement, speeding enforcement, DUI enforcement, roadside safety checks, car seat
safety checks, and roadway enhancements.
■ Continue successful operations of the McHenry Police Department Street Crimes Unit.
■ Develop plan to expand the Dispatch center so that we can provide emergency dispatch services
for more communities, therefore reducing our overall costs to the city.
■ Continue to seek out alternate sources of funding to supplement and/or reduce operational costs
or fund continuing successful programs.
■ Maintain the minimum level of training for all line level officers and employees as dictated by
policy and statute.
■ Continue operation of the CA -LEA Accreditation Program.
Budget Summary
POLICE DEPARTMENT
BUDGET SUMMARY
8 Month
2013/14
2014115
2014/15
2015/16
INCREASE
ACTUAL
BUDGET
ACTUAL
BUDGET
(DECREASE)
EXPENDITURES
PERSONNEL
$7,693,997
$8,066,590
$5,593,014
$8,472,386
$405,796
CONTRACTUAL
197,651
233,621
163,884
271,880
38,259
SUPPLIES
187,582
204,160
111,201
212,545
8,385
OTHER
518,283
482,582
321,721
496,579
13,997
CAPITAL EXPENDITURES
176,252
37,575
37,015
4,240
(33,335)
TOTAL
$8,773,765
$9,024,528
$6,226,835
$9,457,630
$433,102
INCREASE
PERSONNEL AUTHORIZATION
2012/13
2013/14
2014/15
2015/16
(DECREASE)
SWORN
46.00
46.00
46.00
47.00
1.00
NON -SWORN
14.60
14.88
14.88
14.88
(0.01)
TOTAL
60.60
60.88
60.88
61.88
0.99
2014115
2014/15
2015/16
2015/16
AMOUNT
PERCENTAGE
AMOUNT
PERCENTAGE
FUNDING SOURCE
PROPERTY TAX LEVIES:
POLICE PROTECTION
$547,959
6.1
$547,959
5.8
POLICE PENSION
1,295,577
14.4
1,387,374
14.7
CHARGES FOR SERVICE
562,630
6.2
562,630
5.9
FINES AND FORFEITURES
375,000
4.2
375,000
4.0
REIMBURSEMENTS
8,700
0.1
8,700
0.0
GENERAL REVENUES
6,234,661
69.1
6,575,967
69.5
TOTAL
$9,024,527
100.1
$9,457,630
100.0
59
Police Department
Budget Highlights
■ Personnel costs increase due to adding a Student Resource Officer position for McHenry School
District 156. This position will be 70% funded by the school district. Costs were also increased
based on the union contracts. The City's contribution for police pension was increased by
$91,797 based on the actuarial required amount.
■ Contractual expenses increase due to increased Northern Illinois Crime Lab expenses as well as
expenses for a school safety seminar.
■ Purchase of services, information technology costs increase by $13,997 to cover actual expenses
within that fund including increases in personnel costs as well as software maintenance costs.
Capital Equipment
Capital equipment is budgeted for a NIPAS ballistic vest, public relations static display, a wireless
headset, and an On-line application software.
60
Police Department
Personnel Review
Police Department
Personnel Schedule
2014115 Budget
2015/16 Budget
Change
Dollars
Number of
Dollars
Number of
Dollars
Number of
Salaries
Grade
Budgeted
Employees
Budgeted
Employees
Budgeted
Employees
Sworn
Police Chief
E-26
$115,217
1.00
$115,217
1.00
$0
0.00
Deputy Chief/Commanders
E-24
301,610
3.00
301,610
3.00
0
0.00
Sergeant
N-12
661,454
7.00
661,454
7.00
(0)
0.00
Patrol Officer
FOP-1
2,782,924
35.00
2,886,265
36.00
103,341
1.00
Non-Swom
Administrative Assistant
N-4
48,881
1.00
48,881
1.00
0
0.00
IT Specialist
E-18
57,241
0.88
56,295
0.88
(946)
0.00
Communications Dispatch
FOP -II
516,074
9.00
531,187
9.00
15,113
0.00
Records Clerk
FOP -II
87,573
2.00
96,075
2.00
8,502
0.00
Community Service Officer
FOP-ll
97,387
2.00
102,823
2.00
5,436
0.00
Civilian Part Time
35,000
35,000
0
Civilian Overtime
45,000
45,000
0
Sworn Overtime
244,500
244,500
0
Holidays
111,800
111,800
0
Sickday Payback Incentive
18,853
19,381
528
Severance (Benefit Time)
0
0
0
Dual Career
0
0
0
On -Call Pay
14,000
14,000
Officer in Charge Special Pay
7,000
7,000
0
Investigator Stipend
3,000
3,000
0
Field Training Officer
2,750
2,750
0
Longevity Bonus
4,079
0
Salary Adjustment
74,569
105,321
30,752
Insurance Opt -Out
0
16,500
16,500
Subtotal
5,228,912
60.88
5,404,059
61.88
179,226
1.00
Benefits
Police Pension
1,295,577
1,387,374
91,797
IMRF Retirement
121,336
125,346
4,010
FICA Medicare
400,012
413,410
13,398
HealthNision
944,128
1,060,282
116,154
Dental
38,025
44,246
6,221
Life Insurance
4,200
4,270
70
Uniform Allowance
34,400
33,400
(1,000)
Subtotal
2,837,678
3,068,327
230,649
Total
$8,066,590
60.88 $8,472,386
61.88 $409,875 1.00
Note: E = Exempt Position; N = Non -Exempt Position; FOP-1 = Unit One Police Union; and FOP -II = Unit Two Police Union
61
Public Works - Administration
Mission Statement
It is the purpose of the Public Works Department's Administration Division to provide direction and
administrative support to the Department of Public Works.
Primary Functions --> There are several primary operating functions within the Public Works
Administration Division.
■ Working with the Mayor, Council and City Administrator to ensure that the City's policies and
programs for the department are carried out in addition to managing the department.
■ Provide engineering services for a number of projects, plan review, and monitoring the work of
the City's contracted engineering.
2014/15 Accomplishments
■ Administration of consolidation engineering design of the Central Wastewater Treatment Plant
(CWWTP) and the South Wastewater Treatment Plant (SWWTP) and the Facility Plan
Amendment (FPA) and National Pollutant Discharge Elimination System (NPDES) Permit.
■ Management of biennial bridge inspections
■ Administration of the Architectural Services/Project Management for the roof replacements/
miscellaneous work at the South Wastewater Treatment Plant and public bid
■ Intergovernmental agreement with McHenry County Division of Transportation for Tree Planting
and Replacement providing $196,500 towards the City's tree planting program
■ Administration of e-waste and Christmas lights recycling programs
■ City Council adoption of a water conservation ordinance
■ Successfully obtained Highway Safety Improvement Program (HSIP) funds for road
improvements on Curran Road
■ Administration of specifications, bids and purchase of Street Division stump grinder.
■ Successfully obtained Surface Transportation Program (STP) funding for road improvements to
Pearl Street/Lincoln Road and Ringwood Road
• Illinois Environmental Protection Agency nomination for "Treatment Plant of The Year" award
for South Wastewater Treatment Plant.
■ Administration of construction and Phase III engineering of the Route 120/Route3 I Intersection
Improvements
■ Capital Improvement Program which included the following projects: road maintenance program-
cracksealing; street resurfacing program; Central Wastewater Treatment Plant (CWWTP) Electric
Service Upgrade; South Wastewater Treatment Plant (SWWTP) Chlorine Contact Gate
Replacement; roof replacements/ miscellaneous work at the South Wastewater Treatment Plant;
GIS Web Based Mapping
2015/16 Goals and 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 and e-waste/ Christmas lights
recycling programs
62
Public Works - Administration
■ Provide responsible financial leadership during challenging economic times while maintaining
existing Public Works services.
■ Implementation of the 2015/16 Capital Improvement Program which includes the following
projects: construction and Phase III engineering of McCullom Lake Road Improvements and
Knox Drive Extension; road resurfacing program; asphalt pavement maintenance (cracksealing);
construction/ engineering of the Crystal Lake Road/Dartmoor Drive traffic signal; Phase II
engineering of the Ringwood Road Improvements, Pearl Street/Lincoln Road Improvements, Bull
Valley Road Improvements, and Curran Road S-curve Improvements; vehicle replacement
program; standby generator at the Public Works Facility; Water meter replacement program;
Route 31/1\4iller Road/Bull Valley Road Watermain relocation; equipment/vehicles replacement;
consolidation of the Central Wastewater Treatment Plant (CWWTP) and the South Wastewater
Treatment Plant (SWWTP)
■ Negotiation of a collective bargaining agreement with Local 150 Operating Engineers
Budget Summary
PUBLIC WORKS DEPARTMENT - ADMINISTRATION DIVISION
BUDGET SUMMARY
8 Month
2013/14
2014/15
2014/15
2015/16
INCREASE
ACTUAL
BUDGET
ACTUAL
BUDGET
(DECREASE)
EXPENDITURES
PERSONNEL
$215,742
$224,776
$139,855
$234,735
$9,959
CONTRACTUAL
13,196
11,280
1,881
11,280
$0
SUPPLIES
1,258
2,600
440
2,600
$0
OTHER
22,973
22,549
15,033
23,098
$549
CAPITAL EXPENDITURES
0
0
0
0
$0
TOTAL
$253,169
$261,205
$157,209
$271,713
$10,508
INCREASE
PERSONNEL AUTHORIZATION
2011/12
2013/14
2014/15
2015116
(DECREASE)
TOTAL
2.00
2.00
2.00
2.00
0.00
2014/15
2014/15
2015/16
2015/16
AMOUNT PERCENTAGE
AMOUNT
PERCENTAGE
FUNDING SOURCE
GENERAL REVENUES
$261,205
100.0
$271,713
100.0
TOTAL
$261,205
100.0
$271,713
100.0'
Budget Highlights
■ Personnel costs increase due to providing non -bargaining unit employees merit -based increases as
well as increases to retirement and insurance costs.
63
Public Works - Administration
Personnel Review
Salaries
Director
Administrative Assistant
Overtime
Sickday Payback Incentive
Salary Adjustment
Severance Pay
Longevity Bonus
Subtotal
Benefits
IMRF Retirement
FICA/Medicare
Health/Vision
Dental
Life Insurance
Uniform Allowance
Subtotal
ublic Works Department - Admini:
Personnel Schedule
Division
2014/15 Budget
2015/16 Budget
Change
Dollars
Number of
Dollars
Number of
Dollars Number of
Grade Budgeted
Employees
Budgeted
Employees
Budgeted Employee
E-25 $104,149
1.00
$104,149
1.00
$0 0.00
N-4 48,881
1.00
48,881
1.00 .
0 0.00
0
0
0
883
883
0
0
3,826
3,826
0
0
0
0
0
0
$153, 913
2.00
$157, 739
2.00
$3, 826 0.00
20,778
21,295
517
11,774
12,067
293
36,626
41,820
5,194
1,547
1,676
129
138
138
0
0
0
0
$70, 863
$76, 996
$6,133
Total $224, 776 $234, 735 $9, 959
Note: N = Non -Exempt Position; E = Exempt Position
64
Public Works — Street Division
Mission Statement
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, cost effective
infrastructure through superb customer service.
Primary Functions -4 The primary function of the Street Maintenance Division includes street cleaning,
street maintenance, and ensuring roadways are cleared of snow and ice conditions, and all administrative
functions.
■ Crews remove snow, control ice and conduct street cleaning in addition to making
miscellaneous repairs.
■ Maintain and repair all City owned vehicles and various equipment through the City garage
with two full-time mechanics.
■ Monitor maintenance of streetlights and signals by a private contractor.
■ Advises the department director on fleet and infrastructure needs and responds to service
requests.
2014/15 Accomplishments
■ Crews resurfaced and repaired sections of streets throughout the City.
■ Trimmed trees and removed 300 ash trees; completed the bi-annual brush program and
responded to storm damage requests from residents.
■ Replaced sidewalks and curbs.
■ Drainage improvements.
■ Implementation of the 2014 Crack Sealing program.
■ Maintained city -owned vehicles and equipment.
■ Right of way maintenance including parkway restoration, mowing, and creek cleaning.
■ Assisted HR Green with overseeing the 2014 Road Program which included 5 streets.
■ Managed snow removal, ice control, and conducted street cleaning in addition to making
miscellaneous repairs.
■ The Street Division crews constructed vehicular access from Venice Avenue to Riverside
Drive
■ Assisted with the preparation for Fiesta Days and 4`h of July activities.
■ Administration of specifications, bids and purchase of Street Division stump grinder
2015/16 Goals and Objectives
■ Address all snow and ice events by clearing roadways to ensure safe travel on City streets.
■ Continue drainage improvement work, particularly in the Lakeland Park and the City's
northwest quadrant.
■ Maintain the City's fleet so that it will operate efficiently and its useful life is extended.
■ Repair and maintain city streets by dedicating crew to road resurfacing and pothole repair.
■ Mowing the City's right of ways and property in a timely fashion.
■ Respond to all resident requests in a timely manner.
■ Maintain the City's storm sewer system.
■ Maintain and repair City sidewalks and curb.
■ Inspect and maintain the City owned street light systems.
65 ■ Assist with the preparation for Fiesta Day`h
s and 4of July activities.
Public Works — Street Division
■ Capital Improvement Projects include the following:
o Road resurfacing program
o Asphalt pavement maintenance (crack sealing)
o Equipment/vehicle replacement
Budget Summary
PUBLIC WORKS DEPARTMENT - STREETS DIVISION
BUDGET SUMMARY
8 Month
2013/14
2014/15
2014/15
2015/16
INCREASE
ACTUAL
BUDGET
ACTUAL
BUDGET
(DECREASE)
EXPENDITURES
PERSONNEL
$1,978,920
$1,977,995
$1,191,724
$1,928,129
($49;866)
CONTRACTUAL
495,852
475,440
356,109
475,440
0
SUPPLIES
368,533
346,500
255,039
346,500
0
OTHER
118,981
112,213
74,809
112,586
373
CAPITAL EXPENDITURES
0
0
0
0
0
TOTAL
$2,962,286
$2,912,148
$1,877,681
$2,862,655
($49,493)
INCREASE
PERSONNEL AUTHORIZATION 2011/12 2013/14 2014/15 2015/16 (DECREASE
TOTAL 18.00 18.00 19.00 18.00 (1.00)
2014/15
2014/15
2015/16
2015/16
AMOUNT
PERCENTAGE
AMOUNT
PERCENTAGE
FUNDING SOURCE
GENERAL REVENUES $2,912,148
100.0 r
$2,862,655
100.0
TOTAL $2,912,148
100.0
$2,862,655
100.0
Budget Highlights
■ Personnel costs decrease due to the elimination of one position while still following union
contracts as well as providing non -bargaining unit employees merit -based increases as well as
increases to retirement and insurance costs.
66
Public Works - Street Division
Personnel Review
Public Works Department - Street DhAsion
Personnel Schedule
2014/15 Budget
2015/16 Budget
Change
Dollars
Number of
Dollars
Number of
Dollars
Number of
Salaries
Grade
Budgeted
Employees
Budgeted
Employees
Budgeted
Employees
Street Superintendent
E-19
$88,031
1.00
$88,032
1.00
$1
0.00
Crew Leader
N-14
156,516
2.00
156,516
2.00
0
0.00
Office Assistant
N-1
0
0.00
0
0.00
0
0.00
Mechanic
1-8
151,832
2.00
154,870
2.00
3,038
0.00
Street Maintenance Worker
1-6
792,161
14.00
745,388
13.00
(46,773)
(1.00)'
Part -Time (Seasonal)
0
0
0
Overtime
99,000
99,000
0
Sickday Payback Incentive
4,800
4,623
(177)
Salary Adjustment
20,860
26,099
5,239
Longevity Bonus
2,747
0
(2,747)
Subtotal
1,315,947
19.00
1,274,528
18.00
(41,419)
(1.00)
Benefits
IMRF Retirement
177,653
172,061
(5,592)
FICA/Medicare
100,670
97,501
(3,169)
Health/Wellness
373,190
373,804
614
Dental
2,224
1,993
(231)
Life Insurance
1,311
1,242
(69)
Uniform Allowance
7,000
7,000
0
Subtotal
662,048
653,601
(8,447)
Total $1, 977, 995 $1, 928,129 ($49, 866)
Note: N = Non -Exempt Position; E = Exempt; I = IUOE Local #150
67
Parks and Recreation Department
Mission Statement
Recognizing leisure activities, facilities, and open spaces are important to individuals, families, and
community life, 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.
Primary Functions -> There are three primary operating divisions within the Parks and Recreation
Department.
Parks Maintenance: Responsible for planning, organization, and supervision of park
maintenance activities for active parks, buildings, pool, beach, and athletic facilities.
■ Forestry Planning: Address all forestry issues and maintenance of passive use park land.
Review new subdivisions as well as landscape plans associated with new developments.
Recreation: Responsible for providing quality recreation programs and events to residents of the
community. Supervise staff and operations of Knox Park pool and concessions, Petersen Park
beach and concessions, Althoff Park concessions, and McHenry Zone Skate & Bike Park.
2014/15 Accomplishments
■ The Recreation Center was a significant focus last year with the project concept being finalized
and then proceeding through design development, drafting construction documents and the
corresponding bidding documents. The project was bid in January and bids were approved in
March. Construction is set to begin in April with an anticipated opening in Spring 2016.
■ While the Miller Riverfront Boat Launch was not installed, headway was made toward the
acquisition of the boat ramps. In addition there were multiple logistic meetings with local
officials and the Army Corp of Engineers toward the completion of the project.
■ The City secured a sponsorship for the McBark Dog Park with Gary Lang Subaru. The three year
sponsorship amounted to $15,000 per year. This also allowed the users fees to be substantially
reduced. There are now over 500 memberships to the park.
■ The renovations of the Fort McHenry playground were completed. New elements were added
and others completely rebuilt with composite decking which will aid in the lifespan of the park.
■ A complete analysis was conducted of the Peter J. Merkel Aquatic Center after many mechanical
upgrades were undertaken. The results indicated a lifespan of 15 — 20 years before requiring
significant upgrades.
■ A new LED electronic monument sign was installed in Whispering Oaks Park replacing an aged
replaceable letter sign.
■ Summer brochures were once again mailed to all residents. This practice resulted in increased
participation numbers.
■ A $358,000 grant was awarded to expand the city's bike path system in conjunction with the
Recreation Center project.
■ A Colby -Petersen Farm Foundation was established as an official not -for -profit organization to
raise funds for the restoration and programming of the Historic Petersen Farm.
■ A new Vietnam Veterans Memorial monument commemorating four McHenry residents that
were killed during the war was erected in Veterans Memorial Park. The monument was designed
and installed as a gift from the McHenry High School Class of 1964.
■ The infield at Petersen Park Field 42 was completely stripped and re -sodded. The high school
paid for the sod and McHenry Baseball Association and McHenry Cobras provided much of the
manpower for the renovations.
68
Parks and Recreation Department
■ Two new River Run courses were certified and utilized this year. The date was also changed to a
Saturday morning run versus the more challenging Tuesday night timeframe.
■ The Petersen Park parking lot off of Oak Drive was repaved
■ The Parks and Recreation Department celebrated its 35th anniversary.
2015/16 Goals and Objectives
■ Complete the construction of the Recreation Center.
■ Hire a Center Manager to oversee and run the new facility.
■ Acquire boat ramps and complete the Miller Riverfront Boat Launch project.
■ Resurface the tennis courts at Knox Park.
■ Construct the bike path additions in conjunction with the Recreation Center project.
■ Install an inflatable water course at the Petersen Park Beach.
■ Work to maintain the quantity and quality of fee supported recreation and athletic programs.
■ Cooperate with other community organizations and provide services for community special
events.
■ Continue maintenance of trees in public parks and continue to monitor threat of Emerald Ash
Borer, gypsy moth and Japanese beetle infestations.
■ Continue to renovate facilities to comply with the recommendations of the ADA Access Audit.
■ Begin repairs and capital improvements to existing park facilities: court sport areas, parking lots
and playgrounds.
Budget Summa
PARKS AND RECREATION DEPARTMENT
BUDGET SUMMARY
8 months
2013/14
2013/14
2014/15
2015/16
INCREASE
ACTUAL
BUDGET
ACTUAL
BUDGET
(DECREASE)
EXPENDITURES
PERSONNEL
$1,068,338
$1,319,556
$895,012
$1,464,049
$144,493
CONTRACTUAL
$422,533
487,433
340,437
487,433
0
SUPPLIES
$114, 223
169,800
102,469
169,800
0
OTHER
$165,175
183,781
126,234
199,361
15,580
CAPITAL EXPENDITURES
$1,210
0
52,777
0
0
TOTAL
$1,771,479
$2,160,570
$1,516,929
$2,320,643
$160,073
INCREASE
PERSONNEL AUTHORIZATION
2012/13
2013114
2014/15
2015/16
(DECREASE)
TOTAL
11.00
10.00
12.00
12.00
0.00
2014/15
2014/15
2015116
2015/16
AMOUNT
PERCENTAGE
AMOUNT
PERCENTAGE
FUNDING SOURCE
PROGRAM FEES
380,000
17.5
340,000
14.6
POOL AND BEACH REVENUES
129,000
5.9
128,160
5.5
CONCESSIONS
44,000
2.0
40,000
1.7
DONATIONS
9,000
0.4
9,000
0.4
GENERAL REVENUES
1,607,570
74.1
1,812,483
77.8
TOTAL
$2,169,570
100.0
$2,329,643
100.0
69
Parks and Recreation Department
Budget Highlights
Personnel expenses increase due to adding a position for Recreation Center Manager as well as
union contract wage increases and providing non -bargaining unit employees merit -based
increases.
Forestry expenses increase $13,000 due to spending a portion of the tree grant received in FY14-
15. Purchase of services, information technology costs increase by $2,580 to cover actual
expenses within that fund including increases in personnel costs as well as software maintenance
costs.
70
Parks and Recreation Department
Personnel Review
Director of Parks
Supt. Of Parks & Downtown Maintenance
Supt. of Forestry/Park Plan.
Rec Prog Superintendent
Recreation Center Manager
Asst. Superintendent of Parks
Athletic Prog Coordinator
Admin. Assistant
Office Assistant
Park Maint Worker
Street Maint Worker
Seasonal/Instructors
Overtime
Sickday Payback Incentive
Salary Adjustment
Lonaevitv Bonus
IMRF Retirement
FICA/Medicare
Health/Vision
Dental
Life Insurance
Uniform Allowance
Subtotal
ITotal
Grade
E-21
E-19
E-16
E-16
E-13
E-6
E-4
E-1
I-6A
I-C
Parks and Recreation Dep<
Personnel Schedule
2014/15 Budget
Dollars
Budgeted
$0
$88,031
78,258
70,756
0
63,974
52,869
48,881
35,533
199,191
63,341
228,000
17,500
1,458
5,251
4,427
957,470
98,478
73,246
182,652
4,632
828
2,250
362,086
$1,319,556
Number of
Employees
0.00
1.00
1.00
1.00
0.00
1.00
1.00
1.00
1.00
4.00
1.00
12.00
2015/16 Budget
Dollars
Number of
Budgeted
Employees
$0
0.00
$88,031
1.00
78,258
1.00
70,756
1.00
50,000
1.00
63,974
1.00
52,869
1.00
48,881
1.00
36,130
1.00
228,438
4.00
64,608
1.00
228,000
17,500
1,665
16,833
0
1,045,943 13.00
110,422
80,015
218,812
5,710
897
2,250
418,106
$1,464,049
Change
Dollars
Number of
Budgeted
Employees
$0
0.00
$0
0.00
0
0.00
0
0.00
50,000
1.00
0
0.00
0
0.00
0
0.00
597
0.00
29,247
0.00
1,267
0.00
0
0
207
11,582
11,944
6,769
36,160
1,078
69
0
44,076
$132,549
71
SA N w
ItEAR'r OF VNE FOX RIVER
IP-,
SPECIAL REVENUE FUND BUDGETS
Tourism Fund
Pageant Fund
Band Fund
Civil Defense Fund
Alarm Board Fund
Audit Fund
Annexation Fund
Motor Fuel Tax Fund
Developer Donation Fund
Tax Increment Finance Fund
72
Tourism Fund
Purpose
The purpose of the Tourism Fund is to finance tourism promotion for the City.
Fund Highlights
The primary function of the Tourism Promotion Fund is to provide funding to the McHenry County
Convention and Visitor's Bureau (MCCVB). The City currently has a 5% tax on motel and hotel room
receipts. This tax, along with similar ones enacted by other municipalities in McHenry County, is used to
fund the McHenry County Convention & Visitors Bureau.
Budget Summary
EXPENDITURES
CONTRACTUAL
OTHER
TOTAL
FUNDING SOURCE
HOTEL/MOTEL TAX
INTEREST INCOME
Budget Highlights
No significant changes.
TOURISM FUND
BUDGET SUMMARY
8 months
2013/14 2014/15
2014/15
2015/16
INCREASE
ACTUAL BUDGET
ACTUAL
BUDGET
(DECREASE)
$0 $20,000
$12,000
$20,000
$0
79,000 75,000
50,000
75,000
0
$79, 000 $95, 000
$62, 000
$95, 000
$0
2014/15
2014/15
2015/16
2015/16
AMOUNT
PERCENTAGE
AMOUNT
PERCENTAGE
$130,000
100.0
$140,000
100.0
50
0.0
50
0.0
$130,050
100.0
$140,050
100.0
73
Paueant Fund
Purpose
The purpose of the Pageant Fund is to account for revenues and expenditures used to conduct the Miss
McHenry Pageant.
Fund Highlight-4
The Miss McHenry Pageant is an annual beauty contest for girls between the ages of 16 and 20. The
pageant is a community tradition that has been held for almost 60 years. The contestants must live in the
McHenry school district and have a McHenry address. A maximum of 15 contestants compete in the
pageant each year and the entry fee for the contestants is $200 per girl.
Budget Summary
PAGEANT FUND
BUDGET SUMMARY
8 months
2013/14
2014/15
2014/15
2015/16
INCREASE
ACTUAL
BUDGET
ACTUAL
BUDGET
(DECREASE)
EXPENDITURES
CONTRACTUAL
$490
$1,000
$0
$1,000
$0
SUPPLIES
0
0
0
0
0
OTHER
2,805
2,550
3,333
2,550
0
(TOTAL
$3,295
$3,550
$3,333
$3,550
$0
2014/15
2014/15
2015/16
2015/16
AMOUNT
PERCENTAGE
AMOUNT
PERCENTAGE
FUNDING SOURCE
DONATIONS
$50
1.6
$500
14.1
MISCELLANEOUS
3,050
98.4
3,050
85.9
TOTAL
$3,100
100.0
$3,550
100.0
Budget Highlights
■ No significant changes.
74
Band Fund
Purpose
The purpose of the Band Fund, a special revenue fund, is to finance and account for expenditures incurred
in the provision of summer concerts to promote culture and recreation to the community.
Fund Highlights -->
The primary function of the municipal band is to provide eight concerts annually at the gazebo in
Veterans Memorial Park.
BAND FUND
BUDGET SUMMARY
8 months
2013/14
2014/15
2014/15
2015/16
INCREASE
ACTUAL
BUDGET
ACTUAL
BUDGET
(DECREASE)
EXPENDITURES
CONTRACTUAL
$13,914
$14,500
$12,958
$14,500
$0
OTHER
178
500
0
500
0
TOTAL
$14,092
$15,000
$12,958
$15,000
$0
2014/15
2014/15
2015/16
2015/16
AMOUNT
PERCENTAGE
AMOUNT
PERCENTAGE
FUNDING SOURCE
INTEREST EARNINGS
$0
0.0
$0
0.0
TRANSFERS
15,000
100.0
15,000
100.0
GRANTS
0
0.0
0
0.0
PROPERTY TAX REVENUES
0
0.0
0
0.0
TOTAL
$15,000
100.0
$15,000
100.0
Budget Highlights
■ No significant changes.
75
Civil Defense Fund
Mission Statement
It is the mission of the Civil Defense Fund to fund and account for expenditures incurred in 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.
Fund Highlights -->
The primary function of the Fund is maintaining the existing early warning siren system and purchasing
additional sirens for newer sections of the community in coming years.
Budget Summary
CIVIL DEFENSE FUND
BUDGET SUMMARY
8 months
2013/14 2014/15
2014115
2015/16
INCREASE
ACTUAL BUDGET
ACTUAL
BUDGET
(DECREASE)
EXPENDITURES
OTHER
$10,315 $3,200
$6,668
$3,200
$0
TOTAL
$10,315 $3,200
$6,668
$3,200
$0
2014/15
2014/15
2015/16
2015/16
AMOUNT
PERCENTAGE
AMOUNT
PERCENTAGE
FUNDING SOURCE
INTEREST EARNINGS
$0
0.0
$0
0.0
OTHER REVENUE
$5,000
100.0
$5,000
100.0
PROPERTY TAX REVENUES
0
0.0
0
0.0
TOTAL
$5,000
100.0
$5,000
100.0
Budget Highlights
■ No significant changes.
Alarm Board Fund
Purpose
The purpose of the Alarm Board Fund is to pay for the maintenance of the radios as well as the annual
maintenance of the head end equipment in the city dispatch center. This equipment comprises the city's
direct connect radio fire alarm monitoring network. City businesses are required by ordinance to have
fire alarm monitoring and this monitoring is to be directly connected to the city dispatch center.
Fund Highlights --> The city currently has 141 radios that are monitored monthly. The radios are billed
quarterly at $90/month.
Budget Summary
ALARM BOARD REVENUE FUND
BUDGET
SUMMARY
8 month
2013/14
2014/15
2014/15
2015/16
INCREASE
ACTUAL
BUDGET
ACTUAL
BUDGET
(DECREASE)
EXPENDITURES
SUPPLIES $45,469
$45,000
$41,620
$60,000
$15,000
CAPITAL 0
0
0
0
0
TOTAL $45,469
$45,000
$41,620
$60,000
$15,000
2014/15
2014/15
2015/16
2015/16
AMOUNT
PERCENTAGE AMOUNT PERCENTAGE
FUNDING SOURCE
INTEREST EARNINGS
$0
0.0
$0
0.0
ALARM BOARD REV
153,000
0.0
153,000
100.0
TOTAL
$153,000
0.0
$153,000
100.0
Budget Highlights
■ Contractual expenses increase $31,950 to cover payment made to the McHenry Township Fire
Protection District for 20% of alarm board revenues received as well as monthly maintenance
fees and connection fees.
77
Audit Fund
Purpose
The purpose of the Audit Fund to account for the expenses incurred to complete the annual audit of the
City's financial statements.
Fund Highlights —>
The State of Illinois requires that the City of McHenry conduct an independent audit on an annual basis.
In turn, the statutes provide authority for an entity to levy a 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 audit is deposited into a separate fund and kept segregated from the general corporate
levy receipts. There is no limit on the property tax rate used to meet the cost of the required audit.
Budget Summary
EXPENDITURES
CONTRACTUAL
TOTAL
AUDIT FUND
BUDGET SUMMARY
8 months
2013/14
2014115
2014/15
2015/16
INCREASE
ACTUAL
BUDGET
ACTUAL
BUDGET
(DECREASE)
$34,985
$35,710
$35,710
$36,380
$670
$34,985
$35,710
$35,710
$36,380
$670
2014/15
2014/15
2015/16
2015/16
AMOUNT
PERCENTAGE
AMOUNT
PERCENTAGE'
FUNDING SOURCE
PROPERTY TAX REVENUES
$26,426
70.0
$26,426
69.6
PURCHASE SERVICE - POLICE PENSION
3,425
9.1
3,500
9.2
PURCHASE SERVICE -WATER/SEWER
7,908
20.9
8,054
21.2
TOTAL
$37,759
100.0
$37,980
100.0
Budget Highlights
■ The audit examination fee for FY 2014/15 (which is paid in FY2015/16) has been approved by
the City Council at $36,380 which is a 2% increase over the FY2013/14 audit fees. The internal
service charges to the Water/Sewer Fund have been adjusted accordingly.
■ The Police Pension Fund audit fee for FY2014/15 has been approved by the City Council at
$3,500, which is fully covered by the Police Pension Fund transfer.
78
Annexation Fund
Purpose
The purpose of the Annexation Fund is to segregate funds received from negotiated annexation
agreements that are intended to be used for improvements to infrastructure or City facilities.
Fund Highlights -4
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. The City
collects about $1,000 per acre for residential property up to five acres in size plus approximately $600 per
unit upon issuance of a building permit. The additional per unit fee is assessed and distributed to the two
area school districts and the fire and library districts. As revenues in this fund do not necessarily
represent recurring income, the City Council annually reviews how the proceeds of this fund are
allocated.
Annexation Fund revenues are determined by a mixture of recurring and one-time, non -recurring sources.
Gravel mining fees, a recurring revenue resulting from an annexation agreement with Meyer Material,
generates approximately $40,000 annually. Annexation income varies depending on the agreement and
comes in the form of a lump sum payment based on a per acre charge and periodic payments as building
permits are issued for each unit. The fund collects an annexation fee specifically to offset the added costs
associated with growth in school districts #15 and #156 and the Library and Fire Protection districts.
These fees, designated as operating fees, are distributed to the other taxing bodies based on the terms of
annexation agreements.
Budget Summary
ANNEXATION FUND
BUDGET SUMMARY
8 months
2013/14
2014/15
2014/15
2015/16
INCREASE
ACTUAL
BUDGET
ACTUAL
BUDGET
(DECREASE)
EXPENDITURES
OTHER
$48,455
$45,000
$32,009
$45,000
$0
TOTAL
$48,455
$45,000
$32,009
$45,000
$0
2014/15
2014115
2015/16
2015116
AMOUNT
PERCENTAGE
AMOUNT
PERCENTAGE
FUNDING SOURCE
INTEREST EARNINGS
$200
0.3
$200
0.3
GRAVEUMINING INCOME
40,000
68.7
40,000
68.7
ANNEXATION FEES
18,000
30.9
18,000
30.9
TOTAL
$58,200
100.0
$58,200
100.0
Budget Highlights
■ No significant changes.
79
Motor Fuel Tax Fund
Purpose
The purpose of the Motor Fuel Tax Fund is to provide dedicated revenues from taxes on gasoline and
diesel sales primarily to road improvements and road maintenance.
Fund Highlights—>
Motor fuel taxes are generated by a flat rate of cents per gallon, 19.0 for gasoline and 21.5 for diesel fuel,
plus a sales tax transfer. With the Illinois First program adopted by the State in 1999 to fund
infrastructure, roads, schools and transit programs, the sales tax transfer was eliminated in April of 2000
and certain vehicle registration fees replaced and supplemented this shared state revenue. On a net basis,
it is expected that the City will receive an additional 18% in revenues after all phases of the program are
implemented.
Based upon the annual requirements, funds are used to finance certain road projects. In addition, the City
purchases road salt for snow and ice control from this fund on an annual basis.
Budget Summary
MOTOR FUEL TAX FUND
BUDGET SUMMARY
8 month
2013/14
2014115
2014/15
2015116
INCREASE
ACTUAL
BUDGET
ACTUAL
BUDGET
(DECREASE)
EXPENDITURES
SUPPLIES
$140,640
$305,000
$97,041
$305,000
$0
OTHER
402,432
403,659
269,106
400,262
(3,397)
CAPITAL
280,753
980,301
64,795
1,001,650
21,349
TOTAL
$823,825
$1,688,960
$430,942
$1,706,912
$17,952
2014115
2014115
2015116
2015/16
AMOUNT
PERCENTAGE
AMOUNT
PERCENTAGE
FUNDING SOURCE
INTEREST EARNINGS
$200
0.0
$200
0.0
OTHER
$40,500
5.0
$0
0.0
MOTOR FUEL TAX (STATE)
775,906
95.0
642,410
100.0
TOTAL
$816,606
100.0
$642,610
100.0
Budget Highlights
■ The budget for supplies has increased due to anticipated larger amounts of salt being purchased.
■ Debt service on the 2010 bond issue to fund the streets improvement program is $400,262 due in
FY 2015/16. This bond is a mixture of Recovery Zone and Build America bonds, which allows
the City to get a partial rebate on the interest paid from the federal government.
■ MFT revenues include $23.80 per capita in regular revenue and the special allotment of $120,000
awarded through the Illinois Jobs Now program ended in FYI 4-15.
■ The budget includes a $1,001,650 in streets projects.
80
Motor Fuel Tax Fund
Capital Projects
Motor Fuel Tax Fund
Recommended Projects
Fiscal Year 2015/16
Pavement Maintenance Program
IL 120 & 31 Intersection Improv. Construction
Crystal Lake Road Improv. (Phase III Engineering & Construction)
McCullom Lake Road (Phase I & II Engineering)
McCullom Lake Road (Phase III Engineering & Construction)
Bull Valley Road Improvements (Phase I Engineering)
Bull Valley Road Improvements (Phase II Engineering)
Ringwood Road (Phase I & II Engineering)
Pearl St./Lincoln Road (Phase I & II Engineering)
Curran Road (Phase I engineering)
Total Recommended Projects
Amount
$30, 000
195,200
269,800
2,550
242,000
28,600
51,000
5,000
175,000
2,500
$1,001,650
81
Developer Donation Fund
Purpose
The purpose of 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 City's
parks system.
Fund Highlights —>
Developer donations are collected to ensure the provision of public facilities to serve new development by
requiring each new development to pay its fair share of the costs of such improvements as a condition of
approval. By City ordinance, anyone applying for a building permit for a residential unit will be required
to pay for school, park, fire protection, and library district purposes a cash contribution per each
residential dwelling unit to be constructed. The amount of the donation per residential unit is as follows:
The park's portion of the Developer Donations is used to collect cash in lieu of land donations. The City
has determined that the land donation requirement shall be 1.5 acres of parkland per 100 projected
population based upon the 1996 Illinois School Consulting Service table of estimated ultimate population
per dwelling unit. As a basis to collect cash in lieu of land donations, the fair market value of an
improved acre of land is $107,586. Proceeds of the donations for parks are intended for the development
of recreational opportunities in connection with the new development.
Developer Donation revenues are budgeted based on historical trends and existing developments that
provide the potential for building activity. However, if revenues fall short of projected levels,
expenditures are adjusted accordingly. Of the amount collected for schools, 65% goes to the primary
school district and the remaining 35% is provided to the secondary school district.
Budget Summary
DEVELOPER DONATIONS
BUDGET SUMMARY
8 month
2013/14 2014/15
2014/15
2015/16
INCREASE
ACTUAL BUDGET
ACTUAL
BUDGET
(DECREASE)
EXPENDITURES
OTHER
$77,116 $42,540
$43,397
$42,540
$0
TOTAL
$77,116 $42,540
$43,397
$42,540
$0
2014/15
2014/15
2015/16
2015/16
AMOUNT
PERCENTAGE
AMOUNT
PERCENTAGE
FUNDING SOURCE
INTEREST EARNINGS
$0
0.0
$0
0.0
DEVELOPER DONATIONS
42,540
100.0
42,540
100.0
TOTAL
$42,540
100.0
$42,540
100.0
82
Developer Donation Fund
(EXPENDITURES
OTHER
CAPITAL
FUNDING SOURCE
INTEREST EARNINGS
PARK DONATIONS
TOTAL
Budget Highlights
DEVELOPER DONATIONS (PARK DONATIONS)
BUDGET SUMMARY
8 month
2013/14
2014/15
2014/15
2015/16
INCREASE
ACTUAL
BUDGET
ACTUAL
BUDGET
(DECREASE)
$10,319
$14,200
$10,797
$14,200
$0
45,780
250,000
175,232
142,000
($108,000)
$56,099
$264,200
$186,029
$156,200
($108,000)
2014/15 2014/15 2015/16
AMOUNT PERCENTAGE AMOUNT
$1,000 1.1 $1,000
90,150 98.9 90,150
$91,150 100.0 $91,150
2015/16
1.1
98.9
100.0
■ Due to the limited growth in the number of building permits, developer donation revenue is
expected remain unchanged from the prior year.
■ Capital expenses were budgeted at $142,000 for FYI 5/16.
Capital Items
Park Improvements
Developer Donations (Parks)
2015116
Description Amount
Fort McHenry Renovations - rebudget $72,000
ADA Park Improvements - rebudget $20,000
Miller Riverfront Boat Ramp - rebudget $50,000
Total $142, 000
83
Tax Increment Finance Fund
Purpose
The purpose of the Tax Increment Finance (TIF) District is revitalizing the City's downtown area through
investment from both the private and public sectors.
Fund Highlights -->
In 2002, the City Council established the City of McHenry TIF. The TIF District encompasses the area
between John Street on the south and the Fox River on the east, Third Street on the west, and Pearl and
Broad Street on the north. The primary intent of creating the district was to revitalize the downtown with
a primary focus of generating funds to construct a Riverwalk.
Revenue for the district is generated by the collection of property taxes each year at an increment based
on the increase in assessed valuation of properties within the area since the district was created. The
excess tax revenue collected can only be used to fund projects located within the district.
2015/16 Goals and Objectives
■ Continue to aggressively work on encouraging additional development and redevelopment
projects in the TIF District.
■ Partner with private commercial real estate broker/agent to market the Miller Point property for
redevelopment.
Budget Summary
TAX INCREMENT FINANCING FUND
BUDGET SUMMARY
8 months
2013/14
2014/15
2014/15
2015/16
INCREASE
ACTUAL
BUDGET
ACTUAL
BUDGET
(DECREASE)
EXPENDITURES
CONTRACTUAL
$13,838
$0
$252,813
$0
$0
OTHER
311,017
315,450
238,390
304,095
(11,355)
CAPITAL
0
20,000
0
20,000
0
TOTAL
$324,855
$335,450
$491,203
$324,095
($11,355)
2014/15
2014/15
2015/16
2015/16
AMOUNT
PERCENTAGE
AMOUNT
PERCENTAGE
FUNDING SOURCE
PROPERTY TAX REVENUES
$400,000
99.8
$325,000
99.7
BOND PROCEEDS
0
0.0
0
0.0
OTHER
1,000
0.2
1,000
0.3
INTEREST EARNINGS
0
0.0
0
0.0
GRANTS
0
0.0
0
0.0
TOTAL
$401,000
100.0
$326,000
100.0
Budget Highlights
■ Property tax revenues generated by the TIF are expected to decrease from the prior year due to
the EAV going down.
84
MA rd a
HEART OF THE FOX MR1111
CAPITAL PROJECTS & DEBT SERVICE FUNDS
Recreation Center Construction Fund
Special Service Area (SSA) #4A
Capital Improvements Fund
Capital Equipment Fund
Debt Service Fund
85
Recreation Center Construction Fund
Purpose
The purpose of the Recreation Center Construction Fund is to account for project revenues and
expenditures in association with the construction of a proposed recreation center.
Fund Highlights -->
The City Council has long discussed the feasibility of constructing and operating a community recreation
center. Growing recreation programs and athletic leagues have outgrown existing facilities that are leased
and borrowed from other public entities and private organizations. Many of the school facilities in which
the City's Parks and Recreation Department provide recreation programs are becoming unavailable to the
City since school programs and enrollments are growing and the facilities are required for school
sponsored programs.
In March of 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
Construction 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. Likewise, the expenditure
of funds for the construction of the facility would be taken from the fund.
Beginning in 2013, the City Council began the process for analyzing the feasibility for the construction of
a combined family -oriented aquatics facility and the first phase of a recreation facility. While a combined
facility was not deemed financially feasible at this time, Council directed staff to undertake a process for
proceeding with the first phase of a recreation facility to focus on the fitness and group fitness space,
multi -use rooms, and Parks and Recreation office space.
In 2014 the City Council approved the retention of FGM Architects and HR Green to undertake
engineering and facility planning and design. In March of 2015, council approved a contract for
construction of the recreation center with Stuckey Construction Co., Inc., which will allow construction to
begin in late spring or early summer.
Budget Summary
RECREATION CONSTRUCTION FUND
BUDGET SUMMARY
2013/14 2014/15
2014/15
2015/16
INCREASE
ACTUAL BUDGET
ACTUAL
BUDGET
(DECREASE)
EXPENDITURES
CAPITAL
$82,619 $550,000
$230,481
$4,800,000
$4,250,000
OTHER
$0 $0
$0
$80,000
$80,000
TOTAL
$82,619 $550,000
$230,481
$4,880,000
$4,330,000
2014115
2014115
2015/16
2015/16
AMOUNT
PERCENTAGE
AMOUNT
PERCENTAGE
FUNDING SOURCE
TRANSFER - PARK DONATIONS
$0
0.0
$0
0.0
INTEREST EARNINGS
2,000
100.0
2,000
100.0
TOTAL
$2, 000
100.0
$2, 000
100.0
86
Recreation Center Construction Fund
Budget Highlights
■ The transfer from developer donations has been eliminated due to declining development of
residential homes.
■ Bond proceeds are not budgeted for $2,000,000 because they are expected to be received in
FY14-15.
■ Capital of $4,800,000 is budgeted to finish design and to construct the recreation facility.
87
Special Service Area #4A
Purpose
The purpose of Special Service Area (SSA) #4A Fund is to account for revenues and expenses associated
with annual debt service for the sewer project in the Lakewood Road Subdivision.
Fund Highlights -->
In July of 2003, the City of McHenry created a special service area to recover 75% of the costs of the
sewer project in the Lakewood Road Subdivision. A low-pressure sewer main was installed in 2004 on
Lakewood Road at the request of the 25 residents in the subdivision. The residents agreed to the
establishment of the SSA as a funding mechanism to pay for the project.
The creation of SSA #4A allows the City to levy a property tax on the property within the defined special
service area. The annual debt requirement is spread equally among the 25 lots rather than by the assessed
value of each property. The SSA was established for a period of 20 years for the purpose of recovering
75% of the costs of the project, in additional to adding the required capital development and sewer
connection fees. The City paid for the remaining 25% of the project.
The total amount to be repaid by the property owners in the SSA is approximately $327,200. This
includes the amounts for the sewer main, capital development and sewer connection fees less the City's
share of $87,800.
Budget Summary
SPECIAL SERVICE AREA #4 (LAKEWOOD SEWERS)
BUDGET SUMMARY
8 months
2013/14 2014/15
2014/15
2015116
INCREASE
ACTUAL BUDGET
ACTUAL
BUDGET
(DECREASE)
EXPENDITURES
OTHER
$11,231 $16,847
$11,231
$16,847
$0
TOTAL
$11,231 $16,847
$11,231
$16,847
$0
2014/15
2014115
2015116
2015116
AMOUNT
PERCENTAGE
AMOUNT
PERCENTAGE
FUNDING SOURCE
PROPERTY TAX
$16,847
100.0
$16,847
100.0
TOTAL
$16,847
100.0
$16,847
100.0
Budget Highlights
■ Annual revenues are budgeted at $16,847 based on an assessment per land parcel that is not to
exceed $723.41.
88
Capital Improvements Fund
Purpose
The purpose of the Capital Improvements Fund is to provide community facilities and services through a
planned program of infrastructure replacements and additions.
Fund Highlights
The Fund serves as the source of annual expenditures related to the City's five-year Capital
Improvements Program. The program is developed by setting priorities for infrastructure repair,
replacement, and expansion of various facilities.
Budget Summary
CAPITAL IMPROVEMENTS FUND
BUDGET SUMMARY
8 months
2013/14 2014115
2014/15
2015/16
INCREASE
BUDGET BUDGET
ACTUAL
BUDGET
(DECREASE)
EXPENDITURES
TOTAL
$1,758,757 $891,600
$898,262
$1,452,500
$554,238
TOTAL
$1,758,757 $891,600
$898,262
$1,452,500
$554,238
2014115
2014115
2015/16
2015/16
AMOUNT
PERCENTAGE
AMOUNT
PERCENTAGE
FUNDING SOURCE
INTEREST EARNINGS
$1,000
0.1
$1,000
0.1
DEVELOPER CONTRIBUTION
272,700
12.0
197,700
15.7
GRANTS
0
0.0
0
0.0
BOND PROCEEDS
0
0.0
0
0.0
PRIVATE DONATIONS
0
0.0
0
0.0
TRANSFER -ANNEXATION FUND
0
0.0
0
0.0
TRANSFER - GENERAL FUND
548,900
24.1
1,062,500
84.2
TRANSFER - MFT
0
0.0
0
0.0
TRANSFER-W/S
0
0.0
0
0.0
TRANSFER OTHER FUNDS
0
0.0
0
0.0
TRANSFER - PARK DONATIONS
0
0.0
0
0.0
TOTAL
$822,600
36.3
$1,261,200
100.0
Budget Highlights
■ The FY 2015/16 budget includes $85,000 for Municipal Building improvements that were first
budgeted and funded in FY 2014/15. $80,000 is also budgeted for the Municipal Center HVAC
replacement.
■ This budget also includes $850,000 for a street program and a signal at Dartmoor/Crystal Lake
Road. There will also be park, downtown lots, and downtown sidewalks improvements made for
a total of $132,500. These projects will be covered by a transfer from the general fund.
■ A Knox Drive Extension project is re -budgeted for $305,000; only a portion was paid during
FY14-15. The original budget of $350,000 was funded through a few sources; $57,300 from the
general fund, $75,000 from a developer escrow account, and $197,700 from private sources.
89
Capital Improvements Fund
Capital Improvements Fund
Recommended Projects
Fiscal Year 2015116
Amount
Municipal Building Improvements - rebudget
85,000
Street Program
450,000
Dartmoor/Crystal Lake Road Signal
400,000
Knox Drive Extension - rebudget
305,000
Municipal Center HVAC
80,000
Park Improvements
85,000
Downtown Lots
40,000
Downtown Sidewalks
7,500
Total Recommended Projects
$1,452,500
.6,
Capital Equipment Fund
Purpose
The purpose of the Capital Equipment Fund is to provide for equipment through a planned program of
infrastructure replacements and additions.
Fund Highlights—>
The Fund serves as the source of annual expenditures related to the City's five-year Capital
Improvements Program. The program is developed by setting priorities for equipment replacement.
Budget Summary
CAPITAL EQUIPMENT FUND
BUDGET SUMMARY
8 month
2013/14 2014/15
2014/15
2015/16
INCREASE
BUDGET BUDGET
ACTUAL
BUDGET
(DECREASE)
EXPENDITURES
CAPITAL
$503,521 $277,825
$243,227
$263,225
($14,600)
TOTAL
$503,521 $277,825
$243,227
$263,225
($14,600)
2014/15
2014/15
2015/16
2015/16
AMOUNT PERCENTAGE
AMOUNT
PERCENTAGE
FUNDING SOURCE
INTEREST EARNINGS
$0
0.0
$0
0.0
TRANSFER - GENERAL FUND
277,825
100.0
243,225
100.0
TRANSFER-W/S
0
0.0
0
0.0
TOTAL
$277,825
100.0
$243,225
100.0
Budget Highlights
Capital Equipment Fund
Recommended Projects
Fiscal Year 2015/16
Department
Amount
Finance/Utility Software - rebudget
Finance
$20,000
Building Permitting Software - 2nd payment
CED
19,475
Police Mobile Computers and hardware
PD
23,250
Streets Vehicle Replacement (2 trucks)
Streets
80,000
Police Vehicles and Equipment (1 squad, 1 specialty)
PD
80,500
Parks Pickup Truck
Parks
40,000
Total Recommended Projects
$263,225
a
Debt Service Fund
Purpose
The purpose of the Debt Service Fund is to account for bonded indebtedness incurred by the City's
General Fund, including all bond and interest payments.
Fund Highlights->
The Debt Service Fund is a non -operating budgetary unit. It does not provide direct service to the public
and is utilized for internal purposes only. Debt service payments (both principal and interest) are paid
from this fund. In turn, the General Fund, Tax Increment Finance Fund, and the Motor Fuel Tax (MFT)
Fund transfer adequate funds to the Debt Service Fund for debt service payments.
At the present time, there are six outstanding bonds for which the Debt Service Fund provides the
principal and interest payments.
In 2010, refunding bonds of $2.03 million were issued to retire the 2002 Alternate GO Bonds that were
used to fund drainage improvements. This saved the City approximately $110,000.
The City also issued $2.995 million in Alternate GO bonds to pay for the construction of Phase I of the
McHenry Riverwalk (Series 2006). The bonds will be repaid by using the property tax increment
generated by the Tax Increment Financing (TIF) District. The bond issue will reach full maturity in 2024.
Principal and interest payments on bonds issued to finance a signalization and traffic control project at the
intersection of Rt. 31 and Shamrock Lane are also paid by the Debt Service Fund. The bonds, amounting
to $455,000 and issued in fiscal year 1999, reach full maturity in 2011/12. Transfers from the Special
Service Area #IA Fund to the Debt Service Fund provide an amount adequate to meet principal and
interest obligations.
In addition, the City issued Series 2000 bonds for NET bonds to finance the remaining four years of the
street improvement program. The total amount of the bond issue was $3.5 million and the bonds were
paid off in FY09/10.
In 2007/08 the City issued $3.2 million in Alternate GO Bonds to fund the purchase of a Public Works
building. The bonds will be paid by transfers from the General and Water/Sewer Funds.
Series 2010B GO Bonds, principal value of $3,510,000, have been issued to cover future road
improvements. MFT funds will be used to cover these expenses.
In FY2012/13 the City issued $3,100,000 in GO Bonds. $850,000 was to cover roof and HVAC repairs
at the Public Works facility, $2,250,000 was to cover rehabilitation at Water Treatment Plant #2.
In 2013, refunding bonds of $1.985 million were issued to retire the 2005 Alternate GO Bonds that were
used to fund drainage and sewer improvements. This saved the City approximately $100,000. In addition
to the refunding, $415,000 in new money was issued to cover additional repairs to the roof and HVAC
system at the Public Works facility.
The City's current bond rating is Aa2 by Moody's Investor Services.
92
Debt Service Fund
Budget Summary
DEBT SERVICE FUND
BUDGET SUMMARY
8 month
2013/14
2014/15
2014/15
2015/16
INCREASE
ACTUAL
BUDGET
ACTUAL
BUDGET
(DECREASE
EXPENDITURES
OTHER $1,518,569
$1,558,350
$1,017,770
$1,556,555
($1,7
TOTAL $1,518,569
$1,558,350
$1,017,770
$1,556,555
($1,7
2014/15
2014/15
2015/16
2015/16
AMOUNT
PERCENTAGE
AMOUNT
PERCENTAGE
FUNDING SOURCE
TRANSFER - GENERAL FUND
$692,826
45.6
$729,959
46.9
TRANSFER - SSA #1A FUND
$0
0.0
$0
0.0
TRANSFER - MFT FUND
$403,659
26.6
$400,746
25.7
TRANSFER - TIF FUND
$240,950
15.8
$239,595
15.4
TRANSFER - WATER/SEWER
$108,137
7.1
$115,866
7.4
TRANSFER - ANNEXATION FUND
$35,000
2.3
$35,000
2.2
BOND INTEREST REBATE
$39,490
2.6
$35,389
2.3
INTEREST EARNINGS
$150
0.0
$150
0.0
TnTAi
$1,520,212
100.0
$1,556,705
100.0
Budget Highlights
■ In FY 11/12 through FYI 5/16, the City transferred $35,000 from the Annexation Fund to cover a
portion of the debt service for the bonds used to purchase the Public Works Facility.
93
RA rd a
HEART OF THE FOX MR1111
ENTERPRISE FUNDS
Public Works - Water
Public Works - Wastewater
Public Works - Utility Division
Capital Development Fund
Utility Improvements Fund
Marina Operations Fund
94
Public Works — Water Division
Mission Statement
The City of McHenry Water Division's first order of responsibility is to provide a safe and reliable supply
of high quality potable water. The water produced must meet or exceed all federal and state health
standards. An unyielding commitment to this mission will continue to provide a high level of customer
service to the consumer and ensures public safety to the community.
Primary Functions ---> The primary functions of the Water Division are the following:
■ Water Production maintains four iron removal plants served by eight active wells and two
temporary chemical feed buildings served by two emergency standby wells.
■ Maintenance of water storage which consists of four elevated water storage tanks with a
combined storage capacity of 2,750,000 gallons.
■ Maintenance of one booster pumping station.
■ Water metering provides meter readings to the Finance Department for utility billing and
maintains an ongoing meter replacement program of approximately 7,500 water meters.
■ Respond to Joint Utility Locate Information for Excavators (J.U.L.I.E.) requests.
2014/15 Accomplishments
■ Met or exceeded all State and Federal Drinking water regulations.
■ Completed IEPA Stage 2 DBP Rule sampling. Resulting in reduced monitoring in 2015.
■ Received 19"' consecutive annual fluoride award for the Illinois Department of Health.
■ Responded to over 3,500 JULIE locate requests for sewer and water.
■ Water Meter Testing Program - Changed 4 large water consumer's meters due to inaccuracies.
■ Implemented Phase 2 of the GIS system to include real time corrections, mobile application
access, and for other departments the ability to include data.
■ Watermain /service abandonment and upgrades as part of the Route 120/Route 31 Intersection
Improvement Project.
2015/2016 Goals and Objectives
■ Continue to meet or exceed all Federal and State drinking water regulations.
■ Maintain the high level of customer service City residents and businesses have come to expect.
■ Work closely with the new Utility Division to help make a successful transition with respect to
each Divisions responsibilities
■ Maintain a common goal with other City staff and organizations outside of the City to serve our
community.
■ Capital improvement program includes the following projects:
• Obtain approval for repainting of Tower #3
• Rt. 31/Miller Rd/Bull Valley Rd, watermain relocation
• Aid the USEPA in completing the Eastside Watermain
"South Leg"
95
Public Works — Water Division
• Continue the water meter/transponder replacement program incorporating new utility billing
software.
• Extend CIP outlook 5-10 years
• Water Treatment Plant 4 exterior siding replacement
• Vehicle replacement/addition
Budget Summary
PUBLIC WORKS DEPARTMENT - WATER DIVISION
BUDGET SUMMARY
8 month
2013/14
2014/15
2014/15
2015/16
INCREASE
ACTUAL
BUDGET
ACTUAL
BUDGET
(DECREASE)
EXPENDITURES
PERSONNEL
$1,006,696
$1,032,839
$640,659
$534,258
($498,581)
CONTRACTUAL
269,772
317,970
144,082
300,970
(17,000)
SUPPLIES
187,309
248,750
181,297
133,900
(114,850)
OTHER
932,265
1,049,011
319,688
1,721,976
672,965
CAPITAL EXPENDITURES
0
0
0
0
0
TOTAL
$2,396,042
$2,648,570
$1,285,726
$2,691,104
$42,534
INCREASE
PERSONNEL AUTHORIZATION
2012/13
2013/14
2014/15
2015/16
(DECREASE)
TOTAL
9.50
9.50
9.50
9.50
0.00
2014/15
2014/15
2015/16
2015/16
BUDGET
PERCENTAGE
BUDGET
PERCENTAGE
FUNDING SOURCE
WATER SALES
$2,167,285
94.4
$2,167,285
94.4
PENALTIES
52,000
2.3
52,000
2.3
METER SALES
8,000
0.3
8,000
0.3
INTEREST INCOME
2,000
0.1
2,000
0.1
MISCELLANEOUS INCOME
60,200
2.6
60,200
2.6
WATER HOOK UP FEES
6,000
0.3
6,000
0.3
TOTAL
$2,295,485
100.0
$2,295,485
100.0
Budget Highlights
■ Personnel expenses decrease overall due to the transfer of expenses to the utility fund. Increases
were still budgeted for the bargaining union contract costs, non -bargaining unit merit- based
increases and retirement and insurance costs.
■ Other expenses increase due to a transfer of revenue to cover the Utility Division expenses.
■ Transfers for Utility Improvement Fund and Capital Equipment Fund have been eliminated for
the fiscal year.
96
Public Works - Water Division
Fixed Assets
Fixed assets in 2014/15 for the Water Division total $28,165.
Water Fund
Recommended Projects
2015/16Fiscal Year
Total
2015/16
Project
Finance/Utility Billing Software - rebudget
$8,000
$8,000
Water Meter Replacements
$50,000
$50,000
Water Tower Maintenance
$300,000
$300,000
Bull Valley Water Project
585,000
585,000
Total
$943,000
$943,000
Personnel Review
Water Superintendent
Plumbing Inspector
Water Operator II
Water Maintenance Worker
Part-time (Seasonal)
Sickday Payback Incenti\e
Longe\Aty Bonus
Salary Adjustment
Subtotal
Benefits
IMRF Retirement
FICA/Medicare
Health
Dental
Life Insurance
Uniform Allowance
Subtotal
ks Department - Water DhAsion
Personnel Schedule
2014/15 Budget
2015/16 Budget
Change
Dollars
Number of
Dollars
Number of
Dollars
Number of
Grade
Budgeted
Employees
Budgeted
Employees
Budgeted
Employees
E-19
$88,031
1.00
$88,031
1.00
$0
0.00
N-12
33,448
0.50
33,448
0.50
0
0.00
U-E
135,879
2.00
138,597
2.00
2,718
0.00
U-C
60,898
1.00
62,116
1.00
1,218
0.00
11,500
11,500
0
14,000
14,000
0
2,223
1,115
(1,108)
1,454
0
(1,454)
3,935
4,014
79
351,368
4.50
352,821
4.50
1,453
0.0c
45,882
26,880
94,452
1,472
39
311
1,550
170,586
$521,954
46,078
26,991
104,933
1,544
30
311
1,550
181,437
$534,258
Note: E = Exempt; N = Non -Exempt; U = IUOE Local #150 Collectke Bargaining Unit Position
196
111
10,481
72
(9)
0
0
10_851
$12,304
97
Public Works Department — Wastewater Division
Mission Statement
It is the mission of the Public Works Department Wastewater Division to protect public health and the
environment by treating sewage to meet stringent environmental standards prior to discharge.
Primary Functions --> The primary functions of the Wastewater Division are the following:
■ Provides for the operation and maintenance of two wastewater treatment plants and the care and
upkeep of 18 lift stations.
■ Maintain records on the amount of wastewater treated and the quality of water discharged to the
Fox River and report this information to the Illinois Environmental Protection Agency in
compliance with NPDES permits.
FY 2014/15 Accomplishments
■ Reroofmg of the office/laboratory, screen building and the maintenance building at the SWWTP.
■ The replacement of the gates on the chlorine contact tank at the SWWTP and the
replacing/upgrading of the generator automatic transfer switch at the CW WTP. Both of these
projects were done using the design/build approach. Both projects came in under budget.
■ The Wastewater and Water Divisions have assisted one another on multiple projects over the
course of the last year, from helping to repair several water main breaks to rebuilding manholes.
In addition, Wastewater Division employees continued to work with Water Division employees
to instruct them on rebuilding pumps and motors.
■ The Wastewater Division treated more than 1.3 billion gallons of wastewater in 2014.
2015/2016 Goals and Objectives
■ Continue to meet or exceed the NPDES permit requirements and regulations as set forth by the
Illinois Environmental Protection Agency.
■ Maximize the performance of both treatment plants in an effort to operate as efficient as possible.
■ Continue to investigate ways to operate the treatment plants in the most cost effective manner.
■ Implementation of the 2015/16 Capital Improvement Program which includes the expansion of
the South Wastewater Treatment Plant (SWWTP) ; a sanitary sewer pumping station at Central
Wastewater Treatment Plant (CWWTP); and the completion of the force main connecting
CWWTP and SWWTP to accommodate the consolidation of the wastewater treatment plants
98
Public Works Department — Wastewater Division
Budget Summary
PUBLIC WORKS DEPARTMENT - WASTEWATER DIVISION
BUDGET SUMMARY
PERSONNEL
CONTRACTUAL
SUPPLIES
OTHER
CAPITAL
(PERSONNEL AUTHORIZATION
TOTAL
FUNDING SOURCE
SEWER SALES
PENALTIES
SEWER CONNECTIONS
INTEREST INCOME
DEBT SERVICE FEE
MISC INCOME
TOTAL
Budget Highlights
2013114
ACTUAL
2014/15
BUDGET
8 months
2014/15
ACTUAL
2015/16
BUDGET
INCREASE
(DECREASE)
$993,941
$1,023,550
$611,882
$799,981
($223,569)
843,757
880,610
595,658
932,910
52,300
281,249
265,500
157,940
235,000
(30,500)
1,620,035
1,686,874
439,446
2,278,594
591,720
4,265
0
242,718
0
0
$3,743,247
$3,856,534
$2,047,644
$4,246,485
$389,951
INCREASE
2010/11 2013/14 2014115 2015/16
10.00 10.00 10.00 10.00
2014/15
2014/15
2015116
2011/12
BUDGET
PERCENTAGE
BUDGET
PERCENTAGE
$2,594,800
85.5
$2,594,800
85.5
56,000
1.8
56,000
1.8
8,000
0.3
8,000
0.3
2,000
0.1
2,000
0.1
401,000
13.2
401,000
13.2
81,048
2.7
81,048
2.7
$3,142, 848
103.6
$3,142, 848
103.6
■ Personnel expenses decrease overall due to the transfer of expenses to the utility fund. Increases
were still budgeted for the bargaining union contract costs, non -bargaining unit merit- based
increases and retirement and insurance costs.
■ Other expenses increase $200,000 due to capital purchases that are budgeted through the
depreciation line item. A transfer to the Utility Division has been budgeted to cover expenses.
Fixed Assets
Fixed assets in 2015/16 for the Sewer Division total $698,000.
..
Public Works Department - Wastewater Division
Sewer Fund
Recommended Projects
2015116 Fiscal Year
Finance/Utility Billing Software - rebudget
Aquatech Sewer Collection System Maintenance Truck
Fieldstone Lift Station
(Total
Personnel Review
Public Works Department - Wastewater
Personnel Schedule
Total
2015/16
Project
$8,000
$8,000
$360,000
$360,000
$330,000
$330,000
$698, 000 $698, 000 1
2014/15 Budget
2015/16 Budget
Change
Dollars
Number of
Dollars
Number of
Dollars
Number of
Salaries
Grade
Budgeted
Employees
Budgeted
Employees
Budgeted
Employees
Sewer Plant Superintendent
E-17
$88,031
1.00
$88,031
1.00
$0
0.00
Asst. Sewer Plant Supt.
E-14
70,756
1.00
69,588
1.00
(1,168)
0.00
Wastewater Treatment Op II
U-E
264,913
4.00
271,800
4.00
6,887
0.00
Wastewater Mechanic
U-E
67,470
1.00
71,578
1.00
4,108
0.00
Wastewater Treatment Op I
U-D
0
0.00
0
0.00
0
0.00
Seasonal Employees
5,000
5,000
0
Overtime
40,000
40,000
0
Sickday Payback Incentive
1,417
1,445
28
Salary Adjustment
10,008
10,808
800
Longevity Bonus
0
0
0
Subtotal
547,595
7.00
558,250
7.00
10,655
0.00
IMRF Retirement
95,935
74,689
(21,246)
FICA/Medicare
54,746
42,706
(12,040)
Health
152,001
120,181
(31, 820)
Dental
810
834
24
Life Insurance
690
483
(207)
Vision
136
138
2
Uniform Allowance
3,600
2,700
(900)
Subtotal
307,918
241,731
(66,187)
Total $855, 513 $799, 981 ($55, 532)
Note: E = Exempt; N = Non -Exempt; U = IUOE Local #150 Collective Bargaining Unit Position
100
Public Works — Utility Division
Mission Statement
The City of McHenry Utility Division's commitment is to provide the highest level of customer service to
its residents and consumers. This includes the maintenance of the water distribution and sanitary sewer
collection systems with a focus of enhancing public safety within the community.
Primary Functions --> The primary functions of the Utility Division are the following:
■ Clean, maintain and repair the sanitary collection system
■ Maintain and repair water distribution system
■ Update GIS mapping
2014/15 Accomplishments
■ Successful two month trial run of newly formed Utility Division
2015/2016 Goals and Objectives
■ Clean and televise the sanitary collection system.
■ Reduce inflow and infiltration in collection system.
■ Continue to keep distribution and collection systems well maintained.
■ Work with Water and Wastewater Division to ensure smooth transition for the Utility Division.
■ Capital improvement program includes the following projects:
O Rt. 31/Miller Rd/Bull Valley Rd, watermain relocation
o Aid the USEPA in completing the Eastside Watermain
"South Leg"
Sum
PUBLIC WORKS DEPARTMENT - WATER DIVISION
BUDGET SUMMARY
8 month
2013/14
2014/15
2014/15
ACTUAL
BUDGET
ACTUAL
EXPENDITURES
PERSONNEL
$0
$0
$0
CONTRACTUAL
0
0
0
SUPPLIES
0
0
0
OTHER
0
0
0
CAPITAL EXPENDITURES
0
0
0
PERSONNEL AUTHORIZATION 2012/13 2013/14 2014/15
TOTAL 0.00 0.00 0.00
2014/15 2014/15
BUDGET PERCENTAGE
FUNDING SOURCE
WATER DEPARTMENT TRANSFER $0
SEWER DEPARTMENT TRANSFER 0
TOTAL $0
2015/16 INCREASE
BUDGET (DECREASE)
$839,935 $835,059
35,700 35,700
170,350 170,350
0 0
0 0
$1,045,985 $1,041,109
INCREASE
2015/16 (DECREASE)
8.00 8.00
2015/16 2015/16
BUDGET PERCENTAGE
$664,822 63.4
381,163 36.6
$1, 045, 985 100.0
101
Public Works - Utility Division
Budget Highlights
■ The Utility Division was created during FY14-15 and all expenses were previously within the
water and sewer divisions.
Personnel Review
Public Works Department - Util
Personnel Schedule
2014/15 Budget
Dollars
Number of
Salaries
Grade
Budgeted
Employees
Asst. Water Superintendent
E-16
78,258
1.00
Water Operator I
U-E
136,002
2.00
Water Maintenance Worker
U-C
63,341
1.00
Water Meter Maintenance Worker
U-C
46,247
1.00
Wastewater Maintenance Worker
U-C
168,037
3.00
Overtime
35,000
Sickday Payback Incentive
0
Longevity Bonus
1,293
Salary Adjustment
8,273
Subtotal
536,451
8.00
Benefits
2015116 Budget
Change
Dollars
Number of
Dollars
Number of
Budgeted
Employees
Budgeted
Employees
82,170
1.00
3,912
0.00
141,448
2.00
5,446
0.00
111,780
2.00
48,439
1.00
0
0.00
(46,247)
(1.00)
175,361
3.00
7,324
0.00
35,000
0
1,768
1,768
0
(1,293)
10,626
2,353
558,153
8.00
21,702
0.00
IMRF Retirement
72,421
75,351
2,930
FICA/Medicare
41,039
42,699
1,660
Health
132,195
158,981
26,786
Dental
981
1,029
48
Vision
26
20
(6)
Life Insurance
552
552
0
Uniform Allowance
3,150
3,150
0
Subtotal
250,363
281,782
31,419
Total
$786, 814
$839, 935
$53,121
Note: E = Exempt; N = Non -Exempt; U = IUOE Local #150 Collective Bargaining Unit Position
102
Capital Development Fund
Purpose
The purpose of the Capital Development Fund is to construct, expand and extend the water and
wastewater systems to accommodate new development and growth in the community through the
imposition of capital development fees on new residential and non-residential development.
Fund Highlights —>
Capital development fees are charged for new residential and non-residential development to ensure that
adequate funds are available to provide a safe and adequate water supply and distribution system and an
adequate wastewater treatment system in the City of McHenry. The impact of new development upon
the City's infrastructure requirements, particularly wastewater treatment plant capacity, water pumping
capacity, and water storage capacity, require the collection and accumulation of funds to provide a means
of financing costly improvements to water and wastewater treatment facilities when existing capacity is
exceeded. On each May 1" of each year, the residential and on -residential capital development fees are
adjusted by the percentage change in the Engineering News Record Construction Cost Index subject to a
review by the City Council.
Budget Summary
CAPITAL DEVELOPMENT FUND
BUDGET SUMMARY
8 month
2013/14 2014/15
2014/15
2015/16
INCREASE
ACTUAL BUDGET
ACTUAL
BUDGET
(DECREASE)
EXPENDITURES
OTHER
$228,000 $0
$0
$0
$0
TOTAL
$228,000 $0
$0
$0
$0
2014/15
2014/15
2015/16
2011/12
AMOUNT
PERCENTAGE
AMOUNT
PERCENTAGE
FUNDING SOURCE
INTEREST EARNINGS
$2,000
1.6
$2,000
1.2
CAPITAL DEVELOPMENT FEES
120,000
98.4
170,000
98.8
TOTAL
$122,000
100.0
$172,000
100.0
Budget Highlights
■ Revenues are increased slightly due to past trends.
■ Funds are not budgeted to be transferred to the Utility Improvement Fund for improvements.
103
Utility Improvements Fund
Purpose
The Utility Improvements Fund is an enterprise fund used to account for capital projects that improve or
expand the capacity of the Water and Wastewater utilities.
Fund Highlights—>
The Utility Improvements Fund was created to provide a single fund to record revenues and expenses for
capital constructions projects for the Water and Wastewater utilities. Transfers from the Water/Sewer and
Capital Development funds are the main sources of revenue for the fund. Expenses are restricted to
design engineering, construction, and construction engineering costs for the approved capital projects.
2014/15 Accomplishments
2015/16 Goals and Objectives
■ Reroofing design and construction on the screen building, the office /lab/locker room building
and the maintenance building at the South Wastewater Treatment Plant.
■ Final design engineering on the South Wastewater Treatment Plant expansion and
decommissioning of the Central Wastewater Treatment Plant.
■ Construction of the electrical upgrades at the Central Wastewater Treatment Plant and the
replacement of the chlorine contact tank gates at the South Wastewater Treatment Plant.
■ Continue the Sanitary Sewer Rehabilitation program to reduce inflow and infiltration.
Budget Summary
UTILITY IMPROVEMENTS FUND
BUDGET SUMMARY
8 month
2013114 2014/15
2014115
2015/16
INCREASE
ACTUAL BUDGET
ACTUAL
BUDGET
(DECREASE)
EXPENDITURES
CAPITAL
$0 $1,594,458
$1,362,192
$0
($1,594,458)
TOTAL
$0 $1,594,458
$1,362,192
$0
($1,594,458)
2014/15
2014/15
2015/16
2015/16
AMOUNT PERCENTAGE
AMOUNT
PERCENTAGE
FUNDING SOURCE
DEVELOPER CONTRIBUTIONS
$0
0.0
$0
0.0
BOND PROCEEDS
0
0.0
0
0.0
INTERGOVERNMENTAL REVENUES
0
0.0
0
0.0
TRANSFER - ANNEXATION FUND
0
0.0
0
0.0
TRANSFER - WATER/SEWER FUND
0
0.0
0
0.0
TRANSFER - SSA #4
16,847
100.0
16,847
100.0
TRANSFER - CAPITAL DEVELOPMENT 0
0.0
0
0.0
TOTAL
$16,847
100.0
$16,847
100.0
104
Utility Improvements Fund
Budget Highlights
■ Actual expenditures in the fund are nominal because accounting standards require all water and
wastewater projects to be recorded as assets that are eventually expensed as depreciation in the
Water/Sewer Fund.
Water and Sewer Improvement Projects
Utility Improvements Fund
Recommended Projects
2015/16 Fiscal Year
Total
2015/16
Project
Consolidation of CWWTP/SWWTP $7,000,000
$8,000,000
Total $7,000,000
$8,000,000
105
Marina Operations Fund
Purpose
The Marina Operations Fund is an enterprise fund that maintains a 60-slip marina on the Fox River.
Fund Highlights->
The City acquired the marina in 2000 because, at the time, the site was needed to expand the Central
Wastewater Treatment Plant. After the property was acquired, it was determined that the wastewater
treatment plan facility could not be expanded in the existing location. The marina site will be developed
when the wastewater treatment plant is relocated.
Budget Summary
EXPENDITURES
CONTRACTUAL
OTHER
FUNDING SOURCE
RENTAL INCOME
INTEREST EARNINGS
TOTAL
Budget Highlights
■ No significant changes.
MARINA OPERATIONS FUND
BUDGET SUMMARY
2013/14 2014/15
ACTUAL BUDGET
$4,850 $20,000
30,576 26,000
8 month
2014/15
2015116 INCREASE
ACTUAL
BUDGET (DECREASE)
$3,094
$20,000 $0
24,982
26,000 0
$28,076
$46,000 $0
2014/15 2014/15 2015/16 2015/16
AMOUNT PERCENTAGE AMOUNT PERCENTAGE
$50,000 97.1 $50,000 97.1
1,500 2.9 1,500 2.9
$51,500 100.0 $51,500 100.0
106
4
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HEART OF THE Fox RIVER
INTERNAL SERVICE FUNDS
Employee Insurance Fund
Risk Management Fund
Information Technology Fund
107
Employee Insurance Fund
Purpose
The City of McHenry recognizes health insurance benefits are an important component of an employee's
total compensation package, therefore, the purpose of the employee insurance fund is to finance and
account for expenditures incurred to provide health insurance benefits to the employees.
Fund Highlights --*
The current health insurance plan provided to employees offers a choice between a PPO (Preferred
Provider Organization) and HMO (Health Maintenance Organization). Providing employees a choice in
plan type allows employees some flexibility based on preference and affordability. In addition,
employees receive dental and vision benefits that provide participants similar coverage to that provided
under the previous self -insured health and dental plans. All Local 150 employees are required to be on
the Union Insurance as per their union contract, which is paid 100% by the city.
Budget Summary
EMPLOYEE INSURANCE FUND
BUDGET SUMMARY
8 month
2013/14
2014/15
2014/15
2015/16
INCREASE
ACTUAL
BUDGET
ACTUAL
BUDGET
(DECREASE)
EXPENDITURES
INSURANCE PREMIUMS
2,246,101
2,433,597
1,666,049
2,732,687
299,090
CLAIMS
108,400
112,000
32,913
112,000
0
MISCELLANEOUS EXPENSE
3,922
5,000
1,320
5,000
-
TOTAL
$2,358,423
$2,550,597
$1,700,282
$2,849,687
$299,090
2014/15
2014/15
2015116
2015/16
AMOUNT
PERCENTAGE
AMOUNT
PERCENTAGE
FUNDING SOURCE
PREMIUMS/CONTRIBUTIONS
$348,801
13.6
357,072
12.5
TRANSFERS - EMPLOYER SHARE
2,208,714
86.4
2,497,143
87.5
TOTAL
$2,557,515
100.0
$2,854,215
100.0
Budget Highlights
■ Health and dental coverage is provided for approximately 87 existing employees and 19
individuals that are retirees or on disability. Approximately 36 employees represented by Local
150 are expected to elect to obtain coverage from their labor union, with the City paying for
100% of the coverage.
■ For the 2015/16 budget year the fully insured premiums have increased on average by 12.3%.
Employee contributions have also been increased to help cover a portion of the large premium
increase.
■ The deficit that was in the Health Insurance Fund was completed eliminated as of the end of
FY12/13.
108
Risk Management Fund
Purpose
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.
Fund Highlights-->
The City of McHenry is exposed to various risks related to torts; theft of, damage to, and the destruction
of assets; errors and omissions; injuries to employees; and natural disasters. The Insurance Fund funds
the risk management program which attempts to limit the exposure to these risks and reduce the
frequency and severity of losses.
The City is a member of the McHenry County Municipal Risk Management Agency (MCMRMA), a
public entity risk pool through which property, general liability, automobile liability, crime, excess
property, excess liability, and boiler and machinery coverage is provided.
The relationship between the City and MCMRMA is defined through a contractual obligation approved
by both the City Council and the MCMRMA executive board. The City is obligated to make all annual
and supplementary contributions for MCMRMA, report claims and losses on a timely basis, cooperate
with MCNIlZMA, claims adjusters and attorneys in claims investigation and settlement, and to follow risk
management procedures as outlined by MCMRMA. MCMRMA is obligated to administer the self-
insurance program as well as the purchased insurance program, provide risk management services
including the defense and settlement of claims, and provide a loss prevention program to identify and
reduce loss exposures.
Revenues for the fund are generated by service charges to the City's general fund and non -general fund
operating units. The service charges to the General Fund are provided for the most part by the liability
insurance portion of the property tax levy. Incidental revenues from interest earnings and reimbursements
from MCMRMA are also occasionally posted to the fund.
109
Risk Management Fund
Budget Summary
RISK MANAGEMENT FUND
BUDGET SUMMARY
8 months
2013/14
2014/15
2014/15
2015/16
ACTUAL
BUDGET
ACTUAL
BUDGET
EXPENDITURES
CONTRACTUAL $651,966
$652,500
$552,195
$664,371
OTHER 21,146
24,835
14,159
24,835
TnTAi $673,112
$677,335
$566,354
$689,206
FUNDING SOURCE
INTEREST EARNINGS
PROPERTY DAMAGE REIMBURSEMENTS
PURCHASE OF SERVICE - GENERAL FUND
PURCHASE OF SERVICE - WATER/SEWER FUND
PURCHASE OF SERVICE - IT FUND
TOTAL
2014/15 2014/15 2015116
AMOUNT PERCENTAGE AMOUNT
$200
0.0
$200
30,000
3.9
30,000
578,305
74.3
578,305
161,150
20.7
161,150
8,345
1.1
8,345
$778,000
100.0
$778,000
INCREASE
$11,871 I
0
2015/16
PERCENTAGE
Budget Highlights
■ The budgeted amount for the insurance premium paid to MCMRMA increases slightly.
0.0
3.9
74.3
20.7
1.1
100.0
Im
Information Technoloi!v Fund
Mission Statement
The mission of the Information Technology Department is to provide the most innovative, highest quality
technology -based services, in a cost-effective manner, and to facilitate the achievement of goals and
objectives of each of the City's departments.
Primary Functions -> The primary functions of the Information Technology staff include the following:
■ Provide effective technology support for computer systems, web -based applications, voice,
video, and integrated data services to all City departments.
■ Promote and facilitate the integration of technology to effectively meet the overall mission of
the City using collaborative efforts through planning, training, and consulting with all
departments and service providers.
■ Develop, enhance, and manage the City's enterprise network to provide high speed,
transparent, and highly functional connectivity to all resources.
■ Develop and maintain highly effective, reliable, secure, and innovative information systems
to support each department's functions.
■ Facilitate the collection, storage, security, and integrity of electronic data while ensuring
appropriate access
■ Promote new uses of technology within the organization.
2014/15 Accomplishments
■ Add Camera Hardware Components of our Video Surveillance System
IT Staff plans to add cameras to our current system. New cameras will be placed in both
stairwells, a new camera system, with on/off controls will be installed in the police interview
room and the camera currently in the interview room will be installed on the second floor in the
area of the elevator. (Funding: 5110)
■ Installation of a Physical Server at Public Works Facility for `Hot' Data Backup
This item will provide the server and storage necessary to create a `live' backup of our systems at
a remote location. IT will be using virtual servers to complete this operation. (Funding: 6110,
6270)
■ Installation of `Building -Wide' Wireless Network at the Municipal Center
This is a project that IT was asked to examine in September of 2013 at which time it was
determined to be too costly. Currently there are three separate wireless networks serving the
Municipal Center. The purpose of this project is to consolidate these systems into one and to
provide better in -building coverage than is currently provided. (Funding: 6270)
2015/16 Goals and Objectives
■ Replace Virtual Machine Host Servers and Attached Cluster Storage
This IT Dept. project will replace aging (5 years old) servers and data storage. These systems are
at the heart of Police, Finance, Community & Economic Development, and Public Works. New
demands on this old equipment has brought it to its maximum capacity. The new equipment will
be installed with sufficient processing and storage capacity to meet the current needs and future
demands. It will have additional growth capacity beyond the initial installed capacity.
111
Information Technology Fund
■ Replacement of workstations (PCs)
Every year it is necessary that we replace a portion of our PCs. We have over 100 PCs that we
maintain. While many organizations replace their PCs every 3 to 4 years, we are able to get from
5 to 6 years by repurposing older PCs and parts to the less demanding areas within our
organization.
■ Installation of infrastructure for Municipal Recreation Center
In 2015, the City will be breaking ground on a new recreation center. This project will involve: 1)
directional boring and installation of Fiber Optic and Phone cabling, 2) Installation of
surveillance cameras and cabling, 3) installation of network data switches to accommodate
approx. 10 PC users, and 4) installation of automatic door locks and monitoring.
■ Install New Video Surveillance Storage Unit
The current storage unit that holds the City Hall security video has reached a critical point and
needs to be replaced. We repurposed the current device to squeeze additional years from the unit.
This past year, we have had 2 hard drives fail on the unit causing loss of stored video. The current
unit is 7 years old. The amount of video stored does not lend itself to backup because the amount
of data could not be backed up in an efficient way or timeframe.
Budget Summary
INFORMATION TECHNOLOGY FUND
BUDGET SUMMARY
8 month
2013/14
2014/15
2014/15
2015/16
INCREASE
ACTUAL
BUDGET
ACTUAL
BUDGET
(DECREASE)
EXPENDITURES
PERSONNEL
$198,441
$205,678
$118,326
$212,549
$6,871
CONTRACTUAL
104,432
111,374
40,466
132,806
21,432
SUPPLIES
37,108
62,200
54,193
62,400
200
CAPITAL EXPENDITURES
0
0
0
0
0
OTHER
48,596
48,345
5,563
53,345
5,000
TOTAL
$388,577
$427,597
$218,548
$461,100
$28,503
INCREASE
PERSONNEL AUTHORIZATION
2012/13
2013/14
2014115
2015/16
(DECREASE)
TOTAL
2.00
2.00
2.00
2.00
0.00
2014/15
2014/15
2015/16
2015116
AMOUNT
PERCENTAGE
AMOUNT
PERCENTAGE
FUNDING SOURCE
PURCHASE SERVICE - GENERAL FUND
$406,730
95.1
$434,144
94.2
PURCHASE SERVICE - WATER/SEWER
20,867
4.9
26,957
5.8
TOTAL
$427,597
100.0
$461,101
100.0
Ism
Information Technology Fund
Budget Highlights
■ Personnel costs increase due to providing non -bargaining unit employees merit -based increases as
well as increases to retirement and insurance costs.
■ Contractual services increase $21,432 due to increased software maintenance costs.
■ Other expenses increase $5,000 due to depreciation expenses which are directly related to the
purchase of capital.
Fixed Assets
A host server and storage replacement units are budgeted in the amount of $51,768 for FY15/16.
Personnel Review
Salaries
IT Specialist
Sickday Buyback Incentive
Salary Adjustment
Longevity Bonus
IMRF Retirement
FICA/Medicare
Health Vision
Life Insurance
Uniform Allowance
Subtotal
ITotal
Information Technology Fund
Personnel Schedule
2014/15 Budget
Dollars Number of
Grade Budgeted Employees
N-14 $142,318 2.00
1,200
0
1,195
144,713 2.00
19,402
10,994
28,734
1,244
138
0
60,512
$205,225
2015116 Budget
Dollars Number of
Budgeted Employees
$142,318 2.00
1,400
3,558
0
147,276 2.00
19,882
11,267
32,692
1,294
138
0
65,273
$212,549
Change
Dollars Number of
Budgeted Employees
$0 0.00
200
3,558
(1,195)
2,563 0.00
480
273
3,958
50
0
0
4,761
$7, 324
113
I 0A rim
HEART OF THE Fox RIVER
FIDUCIARY FUNDS
Employee Flexible Spending Fund
Developmental Escrow Fund
Retained Personnel Fund
Revolving Loan Fund
Police Pension Fund
ME
Employee Flexible Spending Fund
Purpose
It is the mission of the Employee Flexible Spending Fund (Flex Fund) to account for employee pre-tax
medical spending accounts that are offered as a benefit to City employees.
Fund Highlights -->
Under 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, he or she can
get reimbursed from his 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.
Budget Summary
EMPLOYEE FLEXIBLE SPENDING HEALTH FUND
BUDGET SUMMARY
8 months
2013/14 2014/15
2014/15
2015/16
INCREASE
ACTUAL BUDGET
ACTUAL
BUDGET
(DECREASE)
EXPENDITURES
OTHER
$82, 770 $80,000
$26, 839
$80,000
$0
TOTAL
$82, 770 $80,000
$26, 839
$80,000
$0
2014/15
2014/15
2015/16
2015/16
AMOUNT PERCENTAGE
AMOUNT
PERCENTAGE
FUNDING SOURCE
INTEREST EARNINGS
$0
0.0
$0
0.0
PARTICIPANT CONTRIBUTIONS 80,000
100.0
80,000
100.0
TOTAL
$80,000
100.0
$80,000
100.0
Budget Highlights
■ No significant changes.
ism
Developmental Escrow Fund
Purpose
The purpose of the Development Escrow Fund is to segregate developer funds held by the City to ensure
the completion of specific public improvements such as sidewalks and traffic signals.
Fund Highlights->
The Developmental 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, other governments or funds. The
Developmental 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 the results of operations.
Budget Summary
DEVELOPMENTAL ESCROW FUND
BUDGET SUMMARY
8 months
2013/14 2014/15 2014/15
2015/16
INCREASE
ACTUAL BUDGET ACTUAL
BUDGET
(DECREASE)
EXPENDITURES
OTHER
$0 $76,000 $0
$0
($76,000)
CAPITAL
0 0 0
0
0
TOTAL
$0 $0 $0
$0
($76,000)
2014/15 2014/15
2015/16
2015/16
AMOUNT PERCENTAGE
AMOUNT
PERCENTAGE
FUNDING SOURCE
INTEREST EARNINGS
$500 100.0
$500
100.0
DEVELOPER DEPOSITS
0 0.0
0
0.0
TOTAL
$500 100.0
$500
100.0
Budget Highlights
■ A transfer was made to the Capital Improvements Fund from the Oaks at Irish Prairie Escrow in order
to help fund the Knox Drive Extension.
116
Retained Personnel Fund
Purpose
The Retained Personnel Fund is used to account funds collected as reimbursement and expended for
professional and technical services used to assist or advise the City in connection with land development.
Fund Highlights
The City's retained personnel costs include any engineering, attorney, planner, economist, or other
technical profession retained to assist in connection with annexations, planning and zoning, and other
development 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.
Budget Summary
EXPENDITURES
CONTRACTUAL
OTHER
TOTAL
FUNDING SOURCE
INTEREST EARNINGS
FEES
TOTAL
Budget Highlights
■ No significant changes.
RETAINED PERSONNEL FUND
BUDGET SUMMARY
2013/14
2014115
ACTUAL
BUDGET
$32,861
$30,000
8,259
10,000
$41,120 $40,000
8 months
2014/15
2015/16
INCREASE
ACTUAL
BUDGET
(DECREASE)
$55,785
$30,000
$0
4,583
10,000
0
$60,368
$40,000
$0
2014/15 2014115 2015/16 2015/16
AMOUNT PERCENTAGE AMOUNT PERCENTAGE
$0 0.0 $0 0.01
40,000 100.0 40,000 100.0
$40,000 100.0 $40,000 100.0
ism
Revolving Loan Fund
Purpose
The purpose of the Revolving Loan Fund is to account for activity in the Revolving Loan Program, a low
interest loan program for businesses and industry with the goal of job creation.
Fund Highlights
The Revolving Loan Program 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 tax and property tax base.
The program requires loan applicants to complete a formal application, which is reviewed by the
McHenry Revolving Loan Fund Review Committee. The committee, consisting of the Mayor and the
Finance Committee of the McHenry City Council, reviews loan applications, meets with the applicant and
a representative of the participating lending institution, visits the site if necessary, negotiates terms, length
and security of loans, and evaluates requests with regard to compliance with the Revolving Loan Fund
Program goals and objectives.
Budget Summary
REVOLVING LOAN FUND
BUDGET SUMMARY
8 months
2013114 2014115
2014/15
2015/16
INCREASE
ACTUAL BUDGET
ACTUAL
BUDGET
(DECREASE)
EXPENDITURES
OTHER
$0 $0
$0
$0
$0
TOTAL
$0 $0
$0
$0
$0
2014/15
2014115
2015/16
2015/16
AMOUNT
PERCENTAGE AMOUNT PERCENTAGE
FUNDING SOURCE
INTEREST EARNINGS
$50
2.4
$50
3.2
LOAN PAYMENTS
2,000
97.6
1,500
96.8
TOTAL
$2,050
100.0
$1,550
100.0
Budget Highlights
■ No significant changes.
118
Police Pension Fund
Purpose
The purpose of the Police Pension Fund is to provide retirement benefits for retired police officers and
their beneficiaries through employer and employee contributions and investment earnings.
Fund Highlights—>
The primary function of this non -operating budgetary unit is to finance pensions for employees by both
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 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, and to invest funds. Accounting and secretarial services are
provided by the City at no cost to the plan. Financial planning and investment management are provided
by outside vendors.
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. If the pension plan makes unwise investment decisions, the
City is currently obligated to guarantee the pension obligations. However, as of the year 2033, the
pension plan will be self-supporting with no further obligations placed on the City.
The City utilizes an independent actuarial study to annually determine the necessary funding for the
pension program. The City will continue to fund the plans based upon the recommendations of the
actuary. As of May 1, 2014, the date of the last completed Actuarial Valuation Report, the plan had 77
participants. Active police officer participants totaled 46 with an additional 21 retiree participants, 7
disabled participants and 2 surviving spouses and 1 terminated vested participant.
Budget Summary
POLICE PENSION FUND
BUDGET SUMMARY
8 months
2013/14
2014/15
2014115
2015/16
INCREASE
ACTUAL
BUDGET
ACTUAL
BUDGET
(DECREASE)
EXPENDITURES
CONTRACTUAL
$40,097
$47,000
$28,131
47,000
$0
OTHER
1,119,388
1,753,925
1,273,304
1,804,574
50,649
TOTAL
$1,159,485
$1,800,925
$1,301,435
$1,851,574
$50,649
2014/15
2014/15
2015/16
2015/16
AMOUNT
PERCENTAGE
AMOUNT
PERCENTAGE
FUNDING SOURCE
PROPERTY TAX
INVESTMENT EARNINGS
$480,000
22.5
$480,000
21.3
EMPLOYER CONTRIBUTIONS
1,295,577
60.7
1,387,374
61.5
EMPLOYEE CONTRIBUTIONS
360,000
16.9
390,000
17.3
TOTAL
$2,135,577
100.0
$2,257,374
100.0
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Police Pension Fund
Budget Highlights
■ Many of the pensioners are entitled to a 3% wage increase effective January I" of every year.
■ Employee contributions are directly related to the police department's wages, so the amount of
contributions grows with wage increases.
■ Employer contributions are funded by property taxes and are reflected by the 2014 levy.
■ As of April 30, 2014 the funding percentage for the Police Pension Fund is at 52.5%, which is
0.5% lower than last year.
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HEART OF THE FOX RIVER
SUPPLEMENTAL INFORMATION
Financial Policies
Capital Improvement Program Financial Policies
Investment Policy
Community Profile
Glossary of Terms
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Subalemental Information
Financial Policies
The following City financial policies, along
with the previously approved Investment
and Capital Improvement Program policies,
establish the framework for McHenry's
overall fiscal planning and management.
Operating Budget and Expense Policies
1. The city shall annually adopt a balanced
budget where operating revenues are
equal to, or exceed, operating
expenditures in each fund.
2. Beginning fund balance should only be
appropriated to the extent it supports
non -recurring expenditures, replaces
temporary declines in revenue, or is
reasonably anticipated to be offset by an
increase in revenue.
3. As part of the annual budget review
process, the City will project General
Fund revenues and expenditures for four
years beyond the budget year and
compare the projected balances to the
fund balance policy. This will allow the
City to identify potential problems early
enough to correct them.
4. The City Council shall be provided
monthly actual revenues and
expenditures for all funds. Any
departments or divisions projected to
exceed their annual spending authority
for the year shall work with the City
Administrator to reduce expenses. This
may include a deferral of hiring and
major expenses for goods and services.
Revenue Policies
1. The City shall maintain a diversified and
stable revenue system to the extent
provided by law to insulate it from short-
term fluctuations in any one revenue
source.
2. The City will not budget one-time
revenue sources to fund annual operating
expenditures. Such revenues will fund
non -recurring activities, such as capital
projects and major capital equipment
purchases.
3. Grant revenues shall be pursued to
provide or enhance City services.
However, recurring activities shall be
initiated with grant funds only if the
activity can be terminated in the event
grant funds are discontinued or the
activity should and can be funded within
recurring City revenues.
4. All non -enterprise user fees and charges
will be examined annually to determine
the direct and indirect cost of service
recovery rate. The acceptable recovery
rate and any associated changes to user
fees and charges will be approved by the
City Council.
5. The City will set fees and user charges
for the Water and Sewer funds at a level
that fully supports the total direct and
indirect costs of the activity. Indirect
costs include the replacement of the
capital assets of the fund.
Fund Reserve Policies
1. The City will maintain an unreserved
fund balance in the General Fund equal
to 20% expenditures budgeted for the
fiscal year. If the fund balance level falls
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SuDblemental Information
below 20% due to unforeseen reasons, a
replenishment plan will be developed.
2. The Water and Sewer Fund will
maintain an operating reserve in cash
and short-term receivables equal to 25%
of budgeted expenditures for the fund.
Debt Management Policies
1. The City limits long-term debt to only
those capital improvements that cannot
be financed from current revenues and
have an estimated useful life of at least
ten years.
2. For General Obligation Debt, the City
will maintain a debt to assessed
valuation ratio that is 25% more
stringent than the state debt limit.
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Sunblemental Information
Capital Improvement Program Financial Policies
The Capital Improvements 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 actually benefiting from the project will share in
the cost. In no instance shall the maturity exceed the useful life of the project.
5. The City will not use long-term debt for current operations.
6. Where feasible, the City shall investigate the use of all sources of revenue available
before using local property tax funds for capital projects.
7. Where feasible, the City will pursue project financing mechanisms - such as special
service areas, special assessments or other mechanisms - that target citizens receiving
a disproportionate share of the project benefit.
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SuDDlemental Information
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.
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(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 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:
I. 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.
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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.
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 150-1
(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.
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Supplemental Information
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 pubic 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.
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.
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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 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 are 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
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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.
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.
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Supplemental Information
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 the amendments. Any and all amendments to the investment
policy shall be provided to the individual(s) charged with maintaining internal
controls.
XIX. Investment Policy Adoption
The investment policy shall be adopted by the Mayor and City Council. The policy
shall be reviewed on an annual basis by the Investment Officer and any modifications
made thereto must be presented to the Mayor and City Council for approval.
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Community Profile
The City of McHenry was first settled in 1836, incorporated as a village in 1872 and as a city
in 1923. It is comprised of approximately 40 square miles and is located in eastern McHenry
County along the Fox River. The City is located at the entrance of the Chain O'Lakes water
way along the Fox River and as such has gained popularity as the "Gateway to the Chain
O'Lakes". The Chain O'Lakes region is a series of nine interconnected lakes extending from
Wisconsin south to McHenry and the adjoining state parks and conservation areas. The Chain
O'Lakes is reported to be the second most popular boating and outdoor recreational area in the
United States. Municipal boundaries incorporate water frontage along the Fox River,
McCullom Lake and Boone Lagoon. The City is located approximately 50 miles northwest of
Chicago's Loop, 15 miles south of the Wisconsin State Line and is directly west of Moraine
Hills State Park.
The City's 2008 equalized assessed valuation shows approximately 70% of the assessed
valuation as residential community; 29% as commercial and industrial; and 1 % railroad, farm
and mining. The City's population increased over 32% in the ten-year period from 1990 to
2000, from 16,177 to 21,501 persons. Based on the 2010 Census the City has a population of
26,992.
Government Structure
The City is a home rule community and operates under aMayor/City Council form of
government. The seven members of the City Council are elected from seven wards for
staggered four-year terms. The Mayor and City Clerk are also elected at large and also serve
four-year terms of office. The City Council appoints numerous City officials, including a City
Administrator, a City Attorney, a City Engineer, a Police Chief, and Directors of Finance,
Public Works, Parks and Recreation, and Community and Economic Development. The day-
to-day operations of the City are the responsibility of the City Administrator.
Transportation
The City offers convenient access to two state routes, Illinois State Route 120 is east/west and
Route 31 is north/south. Illinois Route 120 provides five lanes between Illinois State Route 31
and Martin Road. The Northwest Tollway (Interstate 90) is accessible approximately twenty
miles south of the City, and Interstate 94 is accessible approximately twenty miles east of the
City. Chicago's O'Hare Airport is located approximately 40 miles southeast of the City.
METRA's Chicago and Northwestern rail line serves City commuters between Chicago and
Harvard, Illinois, with regular stops at its stations in nearby Cary, Crystal Lake and
Woodstock. METRA also provides stops in its McHenry station. Bus service is available to
City residents through the PACE suburban bus system. Senior transportation services are
available through Pace and through McHenry Township.
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Education
Public School District Numbers 15 and 156 serve the majority of City residents. Community
High School District Number 156 has two high school buildings and an enrollment of
approximately 2,200 students. Community Consolidated School District Number 15 has eight
school buildings and an enrollment of approximately 4,600 students.
The City is within the boundaries of McHenry Community College District No. 528, a two-
year college, which offers more than 50 associate degrees and over 15 certificates in liberal
arts and technical programs leading to employment or further study at four-year colleges or
universities. Other higher education opportunities for residents are located at facilities
throughout the greater Chicago metropolitan area.
Community Services
Utility companies serving City residents include NICOR, ComEd, AT&T (telephone) and
Comcast Cable. Residents have access to two medical centers in the City, Centegra Northern
Illinois Medical Center and Northern Illinois Medical Center, and a total of six hospitals
located in surrounding areas.
City residents are served by the McHenry Public Library District and the McHenry Township
Fire Prevention District. The McHenry Public Library has a collection of over 103,000 books
and periodicals, 7,000 videos and DVDs, and 5,700 audio materials. Both the library and the
fire district are separate entities from the City, operate their own programs and facilities and
file separate tax levies.
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Suublemental Information
Glossary
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.
Activi 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.
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Supplemental Information
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.
Capital Outlay: Fixed assets which have a value of $300 or more and have a useful economic
lifetime of more than one year.
Capital Proiects 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 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 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.
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Supplemental Information
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.
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.
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Supplemental Information
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.
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 umnatured 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.
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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.
Taxable Valuations: Valuations set upon real estate or other property by a government as the
basis for levying taxes.
Taxes: Compulsory charges levied by government for the purpose of financing services
performed for the common benefit. This does not include specific charges made against
particular persons or property for current or permanent benefits such as special assessments.
Trust and Agency Funds: Funds used to account for assets held by a government in a trustee or
agent capacity for individuals, private organizations, other governments, and/or other finds.
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Susan E. Low, Mayor
City of McHenry
333 Green Street
McHenry, Illinois 60050
Phone: (815) 363-2108
Fax: (815) 363-2119
www.ci.mchenry.il.us
MAYOR'S REPORT
To: McHenry City Council
From: Susan E. Low, Mayor
For: April 27, 2015 Annual City Council meeting
Re: 2015/16 Mayoral Appointments
At the April 27t` annual City Council meeting I intend to make the following appointments. Please
contact me prior to the meeting if you have
any comments or concerns regarding the appointments.
City Administrator/Department Heads
Expiration
City Administrator
Derik Morefield
04/30/15
Chief of Police
John M. Jones
04/30/15
Director of Public Works
Jon M. Schmitt
04/30/15
Finance Director
Carolyn Lynch
04/30/15
City Treasurer
Carolyn Lynch
04/30/15
Municipal Consulting Firms
Corporate Attorney Zukowski, Rogers, Flood
& McArdle 04/30/15
Labor Attorney Ottosen Britz Kelly
Cooper & Gilbert, Ltd 04/30/15
Traffic Court Attorney Patrick J. McAndrews 04/30/15
City Engineer HR Green, Inc. 04/30/15
Administrative Adjudication Officer Harry Semrow 04/30/15
Boards/Commissions
Planning/ and Zoning Commission:
(1 year term)
Landmark Commission:
(3 year term)
Emergency Services &
Disaster Agency
(1 year term)
Environmental Advisory Commission:
(2 year term)
Police Commission:
(3 year term)
Police Pension Board:
(2 year term)
Standing Committees of the Council
Susan E. Low, Mayor
City of McHenry
333 Green Street
McHenry, Illinois 60050
Phone: (815) 363-2108
Fax: (815) 363-2119
www.ci.mchenry.il.us
Joseph Doherty
Vacant
Michael Sobotta
Shawn Strach (Chair)
Roger Thacker (V-Chair)
Joseph C.Vallez
Brian Bromley
MaryA Dixon
James Johnson
Joyce Matuszewich
Gerhard Rosenberg
Patricia Schafer
Patrick Wirtz (Chair)
Nicholas Bennett (Student Member, 1-yr. term)
Anthony Huemann
Thomas Walsh
Jon Schmitt
Ryan Schwalenberg
Margie McCarthy
Richard Huber (Chair)
Ormel Prust
Community Development: Chair Condon, Santi, Peterson
Finance and Personnel: Chair Wimmer, Condon, Curry
Parks and Recreation: Chair Peterson, Schafer, Santi
Public Works: Chair Schaefer, Glab, Wimmer
04/30/16
04/30/16
04/30/16
04/30/16
04/30/16
04/30/16
04/30/16
04/30/18
04/30/18
04/30/18
04/30/18
04/30/18
04/30/18
04/30/16
04/30/16
04/30/16
04/30/16
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04/30/17
04/30/18
04/30/17