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HomeMy WebLinkAboutMinutes - 02/01/2016 - City CouncilREGULAR MEETING February 1, 2016 Mayor LOW called the regularly scheduled February 1, 2016 meeting of the McHenry City Council to order at 7:00 p.m. In attendance were the following Aldermen: Santi, Glab, Schaefer, Curry, Wimmer, Peterson and Condon. Absent: None. Also in attendance: City Administrator Morefield, Deputy City Administrator Hobson, Director of Finance Lynch, Director of Public Works Schmitt, Director of Community Development Polerecky, Chief of Police Jones, City Engineer Pieper and City Clerk Jones. Absent: Director of Economic Development Martin and City Attorney McArdle. PLEDGE OF ALLEGIANCE LEAD BY MCHENRY BOY SCOUT TROOP 459 The members of Boy Scout Troop 459 lead the Council in the Pledge of Allegiance. CITY OF MCHENRY MISSION STATEMENT Mayor Low read aloud the Mission Statement of the City of McHenry. Mayor Low introduced the City of McHenry's new Director of Community Development, Mr. Ross Polerecky. PUBLIC INPUT SESSION Ms. Diane Donnelly of 1536 Marguerite Court, Crystal Lake, Illinois addressed Council. Ms. Donnelly inquired whether the Council would be interested in an event entitled Sarasota Chalk Festival. The festival is an American cultural event of public art celebrating a performing art form of pavement art. During the Festival artists use chalk, and occasionally special paint, to paint the road surface to create large works of art while the viewer can watch the creative process. Mayor Low expressed an interest in the Sarasota Chalk Festival and requested that He Donnelly provide information to Deputy City Administrator Hobson. CONSENT AGENDA A. Award of bid for McHenry Recreation Center janitorial Services to Alpha Building Maintenance for the contract term of 14-months, with an option to renew for 12-months for $29,120, and Porter Service for $23,296, for a total contract amount of $52,416; B. Approval of McHenry Area Chamber of Commerce request for a temporary use permit and 10 temporary advertising signs for the annual Business Expo at McHenry West Campus High School on Saturday, February 27, 2016, from 10:00 am to 4:00 pm; C. Authorization to seek Requests for Qualifications and use of Petersen Park for the annual McHenry Jaycees Days Fireworks and Celebration on July 21 2016 (with July 3, 2016, as a rain date); D. Authorization to seek Requests for Proposals to tenant farm the Petersen Ball Field Annex property; E. Renewal of tenant farm lease agreements with: a. James Finch for approximately 24.5 acres, located off Curran Road (PIN 09-33-100-003) for an annual amount of $2,989; b. Charles Schaefer for approximately 12 acres on Riverside Hollow Outlot A (PIN 09-24-351-004) for an annual amount of $1,620; and c. Kevin and Georgia Bauer for an approximately 64-acre section of the Petersen Farm property for an annual amount of $11,136. F. McHenry Rotary Sunrise Club request to host the St. Patrick's Day Community Service Group Awareness Parade on Sunday, March 13, 2016, temporary closure of Waukegan Road, Green Street, Pearl Street and Park Street, between Regular Meeting Page 2 February 1, 2016 1:00 pm and 1:30 pm; special use for associated activities in Veterans Memorial Park until 4:00 pm; and, waiver of all associated fees; G. McHenry Rotary Club (a) use of Petersen Park to set up, host and cleanup the Blues, Brews & BBQ Festival, from August 5 through August 7, 2016; (b) Special Event Liquor License for the sale of beer, wine and malt liquor with sales to cease 20 minutes prior to park closure; and (c) permission to post temporary advertising signs in the municipal right-of-way, as presented; H. Temporary Use Permit for use of Petersen ark on October 15, 21, 22, 18 and 19, 2016, for the Wonder Lake Ski Team Haunted Hayride; I. December 21, 2015 City Council meeting minutes; and J. List of Bills, in the amount of $352,434.56. Responding to Alderman Curry's inquiry about the disparity in the amounts regarding the different farm leases, Deputy City Administrator Hobson informed Council that the leases are long term leases and that some of the farmland is better than others. He noted that the leasees are good tenants of the property and the City has made an effort to be cognizant of the economy. Last year the City raised the payment on the leases by 10% and this year the payment has been raised by 5%. Responding to Alderman Curry's inquiry regarding whether the price is based upon tillable acreage, Deputy City Administrator Hobson responded affirmatively. Alderman Curry inquired about Item G on the Consent Agenda regarding the cessation of the sale of alcohol 15 minutes prior the park closure. Deputy City Administrator Hobson informed Council that it was a scrivener error and the correct time for the cessation of the sale for tickets for alcohol and sale of alcohol is always 30 minutes prior to park closure (i.e., the event ends at 11:00 pm, ticket sales and service will cease at 10:30 pm). Alderman Glab expressed concern regarding noise from the bands playing at Petersen Park later in the evening. Motion by Curry, second by Condon, approving the Consent Agenda, as presented. Voting Aye: Santi, Glab, Curry, Schaefer, Wimmer, Peterson, Condon. Voting Nay: None. Absent: None. Motion carried. MOTION TO ADOPT THE CITY OF MCHENRY FUND BALANCE AND RESERVE POLICY City Administrator Morefield presented Council with an expanded Fund Balance and Reserve Policy for consideration and adoption. He stated that the document was recommended for consideration at the Finance and Personnel Committee by a vote of 2 to 1 at the January 11, 2016 Finance and Personnel Committee meeting. The Government Accounting Standards Board (GASB) is responsible for setting generally accepted accounting principles (GAAP) that prescribe how governments should report their financial information within their Comprehensive Annual Financial Reports (annual audited financial statements). The City's financial statements must be prepared in accordance with and in conformance to these standards in order to receive an opinion from the City's auditors. In Regular Meeting Page 3 February 1, 2016 2009, the GASB issued Statement 54, Fund Balance Reporting and Government Fund Type Definitions, which is intended to enhance the usefulness of fund balance information by clarifying and improving the consistency of fund balance classifications and providing additional guidance for governmental fund type definitions. The new classifications are to develop a clear hierarchy of fund balance information that illustrates the level of constraints imposed upon the use of resources reported within the governmental funds. City Administrator Morefield informed Council that the fund balance measures the net financial resources available to finance expenditures of future periods. It is the amount of assets, less liabilities in a fund at a specific point in time, usually the end of the fiscal year, which for the City of McHenry is April 30. While the City of McHenry's audits have been conducted based on the GASB Statement 54 Guidelines, the City Administration is recommending the City's existing fund reserve policy be expanded to include the addition of specific language for establishing and maintaining fund balance reserves. This proposed Fund Balance and Reserve Policy defines fund balance amounts as defined by the GASB Statement 54 classifications. To classify fund balance in categories other than "unassigned," GASB Statement 54 requires formal approval of a Fund Balance and Reserve Policy by the City Council. The Fund Balance and Reserve Policy provides specific information concerning the designations and categorization of fund balance for the City's governmental funds and achieves the criteria as identified in GASB Statement 54. Motion by Wimmer, second by Schaefer, to adopt the City of McHenry Fund Balance and Reserve Policy, as presented. Responding to an inquiry from Alderman Santi regarding whether there is an exact amount required for the General Fund fund balance, City Administrator Morefield stated the amount required is approximately $6.2 million, which is the amount required for 4-months (120 days) of operating expenses. Responding to Alderman Schaefer's inquiry regarding the current amount in the fund, Director of Finance Lynch informed Council that the amount currently in the fund is just over $10 million. Alderman Curry opined he is pleased to see the City is moving in the right direction by establishing the Fund Balance and Reserve Policy. Alderman Curry inquired whether a plan is in place should the fund fall below the amount required for 4-months of operating expenses. He stated that if not, there should be. Alderman Curry suggested rather than establish a number value (i.e., 120-days of operating expenses) for the fund a range would be better. Alderman Curry suggested a plan be implemented should the Fund fall below an amount required to fund operating expenses for three months. Regular Meeting Page 4 February 1, 2016 Alderman Curry stated that the revenue stream continues to fluctuate annually, but appears to not have a significant effect on the municipality. He opined that he thinks it unnecessary to hold on to the amount of money that is currently being held. Alderman Curry stated that he would like to see a fund balance 90 to 120 days is adequate. Alderman Glab concurred with Alderman Curry. He opined that the reserves are currently excessive. Alderman Peterson opined that he is skeptical about Illinois government, but would support Alderman Curry's suggestion regarding a fund balance of 90 to 120 days. Alderman Condon stated that she appreciates Alderman Curry's opinion; however with a range the issue becomes what is an adequate range, which is a matter of opinion depending on the individual. Alderman Condon stated she supports the simplicity of a flat number amount in the Fund. City Administrator Morefield stated that Staff is cognizant of needs regarding the Capital Improvement Program. He noted not that long ago there was a deficit and measures have been implemented to bring the General Fund Reserves back up. Responding to a request from Alderman Santi, Director of Finance Lynch stated that if Council would like to see figures on a quarterly basis the figures could be added to Quarterly Financial Statements. Alderman Santi stated that he appreciates Staffs efforts in establishing the Fund Balance and Reserve Policy. Mayor Low acknowledged that all the Aldermen's points are well taken. However, Mayor Low stated that we have a qualified City Administrator and a qualified Finance Director to advise Council. While all the opinions presented are valid, Mayor Low opined, it is important to recognize the effort and expertise that Staff has put in to establishment of the Fund Balance and Reserve Policy. City Administrator Morefield stated that, if acceptable to Council, the language in the Fund Balance and Reserve Policy could be amended to state if the unreserved fund balance falls below 120 days, a plan will be developed to return to the target balance. If the unreserved fund balance reaches a low of 90 days, the plan will be implemented to return the fund balance to the target within a reasonable amount of time. Mayor Low inquired whether Alderman Wimmer and Alderman Schaefer are willing to amend their motion. Both Alderman Wimmer and Alderman Schaefer responded affirmatively. Alderman Condon stated she is unable to support the modification to the Fund Balance and Reserve Policy because she feels that Staff has put a significant amount of thought into Oat is required and no one is able to determine, or account for, all issues or emergencies. Regular Meeting Page 5 February 1, 2016 Alderman Condon opined she would rather have a larger safety net/cushion as presented originally by Staff. Motion by Wimmer, second by Schaefer, to adopt the City of McHenry Fund Balance and Reserve Policy, with the following revision: "General Fund —The unrestricted fund balance target should be set at 120 days (4 months) of estimated operating expenditures including those expenditures report in other Governmental Funds that receive annual operating transfers, with the exception of transfers intended to fund capital projects. If the unreserved fund balance falls below 120 days, a plan will be developed to return to the target balance. If the unreserved fund balance reaches a low of 90-days (3 months), the plan will be implemented to return the fund balance to the target within a reasonable amount of time. One time revenues shall not be used to fund current operations." Voting Aye: Santi, Glab, Curry, Schaefer, Wimmer, Peterson. Voting Nay: Condon. Absent: None. Motion carried. TRANSMITTAL AND DISCUSSION OF THE DRAFT FISCAL YEAR 2016/2017 THROUGH 2O20/2021 CAPITAL IMPROVEMENTS PLAN City Administrator Morefield provided Council with a draft of the Fiscal Year 2016/2017 through 2020/2021 Capital Improvement Program (CIP). He stated that any changes recommended by Council would be incorporated in the final draft, which would be presented to Council at the February 15, 2016 Council meeting. City Administrator Morefield briefly summarized how the City of McHenry uses capital improvement planning for the multi -year preparation, scheduling and updating of a list of projects and related equipment to be acquired, built or improved by the City within a fixed period. He stated that as a short and long range plan for physical development, the CIP links the City's Comprehensive Plan and other planning documents with the Annual Budget, providing a mechanism for: • Estimating capital requirements; • Proposing revenue sources for existing and future projects; • Planning, scheduling, and most importantly, implementing projects; • Budgeting high priority projects; • Coordinating the activities of various departments' project schedules; and 0 Monitoring and evaluating the program of capital projects. Regular Meeting Page 6 February 1, 2016 City Administrator Morefield informed Council that the total recommended FY16/17 General Fund CIP includes 22 projects, totaling an estimated $4,854,574. City Administrator Morefield outlined the recommended projects. He noted that approximately $1,825 million (37.6%) is coming from non -General Fund sources (i.e., Information Technology Fund, Developer Donation Fund, Park Development Fund, Surface Transportation Fund, Highway Safety Improvement Program), with the remaining $3,029,274 (62.4%) proposed for funding through the annual budget (revenues over expenditures) and the General Fund fund balance. Alderman Curry complimented Staff on the nice job done on the 5-Year CIP. He opined that he would like to see an increase in the amount ($50,000) going to the Pavement Maintenance/Cracksealing. He encouraged Council to increase the amount. Responding to Alderman Glab's inquiry regarding the amount the TIF owes the General Fund, Deputy City Administrator Hobson stated the TIF owes the General Fund $750,000. Alderman Glab asked if the TIF could be extended? A brief discussion ensued regarding the TIF District. Responding to an inquiry for Alderman Curry regarding property values in the area, Deputy City Administrator Hobson indicated that property values dipped last year below the EAV. Alderman Curry suggested that the seawall that requires repair should be a General Fund expenditure. MAYOR'S STATEMENT AND REPORT Mayor Low requested Council consider a Committee of the Whole on Monday, February 29, 2016 at 7:00 pm at the Municipal Center, to discuss the delivery of engineering services to the City of McHenry. Mayor Low asked that Council please notify City Administrator Morefield as soon as practicable in order to provide sufficient time for the meeting to be posted. Mayor Low informed Council that the Ribbon Cutting Ceremony for the new CVS Pharmacy is scheduled to take place on Saturday, February 6, 2016, at 9:00 am. COMMITTEE REPORTS Chairman Alderman Condon of the Community Development Committee, announced that on Monday, February 8, 2016 at 7:00 pm a meeting of the Community Development Committee would be held at the Municipal Center. Chairman Alderman Condon stated that she looks forward to the participation of Director of Community Development Polerecky. Chairman Alderman Schaefer of the Public Works Committee informed Council that the Chairman's Report for the meeting of the Public Works Committee held on December 7, 2015, was approved at the meeting held tonight prior to the Council meeting. Regular Meeting Page 7 February 1, 2016 STAFF REPORTS City Administrator Morefield requested that Council re -review the City of McHenry Comprehensive Strategic Plan from August 2014, in anticipation of the Committee of the Whole scheduled on Monday, February 22, 2016. The Committee of the Whole will focus on the review and update of the City's Comprehensive Strategic Plan. Deputy City Administrator Hobson informed Council that the McHenry Area Chamber of Commerce Annual Business Expo would be held at McHenry West Campus High School on Saturday, February 27, 2016, from 10:00 am to 4:00 pm. FUTURE AGENDA ITEMS There were no Future Agenda Items. ADJOURNMENT Motion by Santi, seconded by Curry, to adjourn the meeting at 8:32 pm. Voting Aye: Santi, Glab, Schaefer, Curry, Wimmer, Peterson, Condon. Voting Nay: None. Absent: None. Motion carried. The meeting was adjourned at 8:32 pm. FiR:7�