Loading...
HomeMy WebLinkAboutPacket - 04/27/2015 - City Councili Ml/lRT Or TIIC fox RIV CR III 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. J a.KC, an %M = 42A FU hM" I 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. 127 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. 128 Sumlemental Information 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 129 SuDDlemental Information 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. 130 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. 131 SuDDlemental Information 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. 132 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. 133 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. 134 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. 135 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. 136 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. 137 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 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. 127 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. 128 Sumlemental Information 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 129 SuDDlemental Information 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. 130 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. 131 SuDDlemental Information 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. 132 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. 133 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. 134 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. 135 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. 136 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. 137 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 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 04/30/16 04/30/17 04/30/18 04/30/17