HomeMy WebLinkAboutMinutes - 12/05/2016 - City CouncilREGULAR MEETING
December 5, 2016
Mayor Low called the regularly scheduled December 5, 2016 meeting of the McHenry City
Council to order at 7:00 p.m. In attendance were the following Aldermen: Santi, Glab, Curry,
Peterson and Condon. Absent: Alderman Schaefer and Alderman Wimmer. Also in attendance:
City Administrator Morefield, Deputy City Administrator Hobson, Director of Economic
Development Martin, Director of Finance Lynch, Director of Community Development
Polerecky, Director of Public Works Schmitt, Chief of Police Jones, City Attorney McArdle,
Manager of Human Resources Campanella and City Clerk Jones. Absent: City Engineer Pieper.
CITY OF MCHENRY MISSION STATEMENT
Mayor Low read aloud the Mission Statement of the City of McHenry.
PUBLIC HEARING FOR CONSIDERATION OF THE CITY OF MCHENRY 2016 TAX LEVY
ORDINANCE, IN THE AMOUNT OF $4,761,635, REPRESENTING NO INCREASE ABOVE THE 2015
TAX LEVY EXTENSION
A Public Hearing for consideration of the City of McHenry 2016 Tax Levy Ordinance, in
the amount of $4,761, 635, representing no increase above the 2015 Tax Levy Extension was
called to order at 7:03 pm.
City Administrator IVlorefield stated that at the November 7, 20161 City Council meeting,
a Resolution was adopted determining the amount of funds to be levied for the 2016 Tax Year
through real estate taxes and to set the date for the Public Hearing and consideration of an
Ordinance establishing such a levy. While not required to do so, the City of McHenry believes it
is important to provide residents with an opportunity to provide public comment on the
proposed property tax levy. Upon closure of the Public Hearing, Council can then consider the
adoption of the 2016 Tax Levy Ordinance. An approved Tax Levy Ordinance must be filed by
the last Tuesday of December (December 27, 2016).
City Administrator Morefield provided a detailed summary of the proposed 2016 Tax
Levy Ordinance. He noted that the City of McHenry is a Home Rule community, and no longer
subject to the Property Tax Extension Limitation Law ("PTELL"), which limits increases to
residents' property taxes by preventing local government property tax levy from growing at a
faster pace than the rate of inflation, or 5%, whichever is less. However, the City of McHenry
continues to follow PTELL for establishing the Property Tax Levy. Over the past five years, the
City of McHenry has chosen to maintain a flat property tax levy request at the amount
requested in 2010.
City Administrator Morefield informed Council that Administration has already
identified more than $350,000 in expenditure increases to continue to meet contribution
commitments the Police Pension Fund and an additional $400,000 in wage and benefit
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December 5, 2016
increases for both bargaining and non -bargaining employees. These amounts are anticipated
over costs for FY2016/2017.
City Administrator Morefield reminded Council that levy increases by other taxing
districts resulted in an overall increased tax rate and tax amount from 2014 to 2015, nullifying
any benefits provided by the City reduction. For 2016, by maintaining the Property Tax Levy as
proposed, it is estimated that the City's portion of the property tax bill will increase from 6.66%
to 6.10%, or approximately $53.06 on a $200,000 home.
Mayor Low inquired if there were comments from the City Council.
Alderman Curry proposed a reduction in the Property Tax Levy of 3%. Alderman Curry
opined that the City of McHenry has a sufficient overage of funds.
Alderman Condon stated that she continues to be pleased that a flat rate can be
maintained. Alderman Condon opined that were it not for the State of Illinois' financial crisis
she would be in agreement with Alderman Curry.
Alderman Glab concurred with Alderman Curry, stating that he would like to see a 3%
reduction in the Property Tax Levy. Alderman Glab stated that while minimal, it would exhibit
consideration and fiscal responsibility.
Alderman Condon opined that the City of McHenry's tax portion is a minimal amount.
Alderman Condon stated that she could support a 1% reduction if the City is attempting to
make a statement to the residents, but indicated that she does not know if she feels
comfortable with a higher amount.
Alderman Santi opined that he concurs with Alderman Curry and Alderman Glab. The
Property Tax Levy should be reduced and a 3% reduction is acceptable.
City Administrator Morefield noted:
• The number of Capital Improvement Projects;
• Operating Revenues are conservative, as are Expenditures, and operating costs do not
decrease, but increase from year to year;
• Over $4,000,000 was spent on Capital Improvements in 2016; and
i There is approximately $1.2 million remaining in the Reserve Fund.
Alderman Condon stated that the City is fortunate to have reserves, but does not a
surplus. The City still needs to maintain and continue to provide a certain level of services.
Alderman Curry said he recognizes that the City of McHenry does not have a large
portion; but the taxes still have an impact on the homeowner paying the taxes. The taxpayer
only looks at the line item.
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December 5, 2016
Mayor Low requested comments from the audience in attendance.
Mr. Craig Wilcox addressed Council and stated that he was aware the City of McHenry
has unbudgeted revenues. Mr. Wilcox stated that he does not believe the taxpayer should be
burdened further and commends Council's consideration of a reduction. Mr. Wilcox informed
Council that the McHenry County Board Chairperson intends to push for a 10% reduction in
property taxes.
Mayor Low requested a Motion to close the Public Hearing.
Motion by Glab, second by Curry, to close the Public Hearing.
Voting Aye:
Voting Nay:
Absent:
Motion carried.
Santi, Glab, Curry, Peterson, Condon.
None.
Schaefer, Wimmer.
The Public Hearing for consideration of the City of McHenry 2016 Tax Levy Ordinance
was closed at 7:26 pm.
MOTION TO PASS AN ORDINANCE FOR THE LEVY OF TAXES FOR THE YEAR 2016 THROUGH
REAL ESTATE TAXES, IN THE AMOUNT OF $4,761,635
Motion by Peterson to pass the Ordinance for the Levy of Taxes for the Year 2016, in an
amount not to exceed $4,761,635.
Motion died for lack of a second.
Motion by Curry, second by Glab, to pass the Ordinance for the Levy of Taxes for the
Year 2016, in an amount not to exceed $4,618,786, representing a 3% reduction.
Voting Aye:
Voting Nay:
Absent:
Motion carried.
Santi, Glab, Curry, Condon.
Peterson.
Schaefer, Wimmer.
PUBLIC INPUT SESSION
No one spoke at Public Input Session.
CONSENT AGENDA
A. Ordinance updating and amending Municipal Code Chapter 14, Article IV, Drug Paraphernalia; Possession of Cannabis,
Sec. 14-75, pursuant to the recent amendment of Illinois Public Act 99 00697;
Be Ordinance amending Municipal Code Chapter 14, Offenses -Miscellaneous, Article V, Minors, relating to the
implementation of a Truancy Ordinance;
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December 5, 2016
Amendment to the Fiscal Year 2016/2017 Budget Capital Improvements Fund, in the amount of $16,473.47, from the
General Fund Balance and Change Order increasing the contract amount for Dispatch Center/Police Administration
Renovation Project, in the amount of $16,473,47, payable to Stuckey Construction for addition of carpeting and paint
work;
D. Parks and Recreation Committee recommendation to publically advertise for Requests for Proposals for the
development of a Parks and Recreation Community Needs Assessment;
E. Pay Application No. 9 to Williams Brothers Construction, in the amount of $995,228,00, for Wastewater Treatment
Plant Improvements;
F. October 3, 2016 City Council meeting minutes; and
G. Approval of Payment of Bills, in the amount of $933,901.38.
Motion by Condon, second by Glab, approving the Consent Agenda, as presented:
Voting Aye: Santi, Glab, Curry, Peterson, Condon.
Voting Nay: None.
Absent: Schaefer, Wimmer.
Motion carried.
Motion by Curry, second by Glab, amending the previous Motion removing Item A,
Ordinance updating and amending Municipal Code Chapter 14, Article IV, Drug Paraphernalia;
Possession of Cannabis, Sec. 14-75, pursuant to the recent amendment of Illinois Public Act 99-
00697 from the Consent Agenda and voting on Item A as a separate item.
Voting Aye:
Voting Nay:
Absent:
Motion carried.
Santi, Glab, Curry, Peterson, Condon.
None.
Schaefer, Wimmer.
Responding to an inquiry by Alderman Santi, Chief of Police Jones explained that
recently the State of Illinois changed its treatment of cannabis and its possession under 10
grams. The amendment has lead to the decriminalization of the possession of 10 grams or less
A cannabis, making it a civil offense allowing for the issuance of a civil citation and no arrest of
the subject in possession of such an amount of the drug. This has also had an effect on the
handling of the possession of drug paraphernalia in such an instance. The City wants to make
certain that its Ordinance is consistent with the amendment of the Illinois Public Act 99-0697.
Therefore, the City has determined the separation of the cannabis drug paraphernalia
Ordinance from paraphernalia relating to other illegal substances is necessary.
Motion by Santi, second by Condon, approving the Ordinance updating and amending
Municipal Code Chapter 14, Article IV, Drug Paraphernalia; Possession of Cannabis, Sec. 14-75,
pursuant to the recent amendment of Illinois Public Act 99-00697
Voting Ave: Santi, Glab, Curry, Peterson, Condon.
Voting Nay: None.
Absent: Schaefer, Wimmer.
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Motion carried.
MOTION TO APPROVE ORDINANCES FOR THE ABATEMENT OF REAL ESTATE TAXES FOR THE
FOLLOWING BOND ISSUES.
• GENERAL OBLIGATION BONDS (RECOVERY ZONE & BUILD AMERICA), SERIES 2010B,
$427,157.00;
• GENERAL OBLIGATION BONDS (ALTERNATE), SERIES 2010C, $444,187.50;
• GENERAL OBLIGATION BONDS (ALTERNATE), SERIES 2012, $208,432.50,
• GENERAL OBLIGATION BONDS (REFUNDING), SERIES 2013, $584,560.001 AND
• GENERAL OBLIGATION BONDS (REFUNDING), SERIES 2015, $5801978.76.
Director Lynch informed Council that over the years the City of McHenry has issued a
variety of bonds that pledge various funding sources for repayment backed by the full faith and
credit of the municipality. In pledging the faith and credit of the municipality, the bond
ordinances require the County Clerk to levy property taxes for the debt service required on the
bonds, unless an abatement of the property tax by the local municipality is approved and filed
with the County Clerk.
Director Lynch stated that in structuring the bonds in this manner, it is the intent of the
City to annually abate the taxes provided the primary source of repayment is sufficient to cover
the debt service requirement. Historically, the primary source of repayment has been sufficient
to cover the debt service and the property tax has been abated. Projections show that revenue
sources in the coming year will continue to provide adequate coverage for debt service
requirements allowing the abatement of the property tax.
Staff is requesting Council's consideration of Ordinances to abatement the property
taxes levied for various bonds to be filed with the office of the McHenry County Clerk.
Motion by Glab, second by Curry, approving the Ordinances for the abatement of real
estate taxes for bonds issues, as follows:
• General ion Bonds (Recovery Zone & Build Ameri
Obligatca),
$4271157.00;
• General Obligation Bonds (Alternate), Series 2010C, $444,187.501
• General Obligation Bonds (Alternate), Series 2012, $208,432.50;
• General Obligation Bonds (Refunding), Series 2013, $584,560.00; And
• General Obligation Bonds (Refunding), Series 2015, $5801978.76.
Voting Aye: Santi, Glab, Curry, Peterson, Condon.
Voting Nay: None.
Absent: Schaefer, Wimmer.
Motion carried.
Series 2010B,
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December 5, 2016
MOTION TO APPROVE THE ANNUAL FINANCIAL REPORT FOR THE CITY OF MCHENRY POLICE
PENSION FUND FOR FISCAL YEAR ENDING APRIL 30, 2016, IN ACCORDANCE WITH THE
REQUIREMENTS SET FORTH IN 40 ILCS 5/3443
Director of Finance Lynch informed Council the Illinois Department of Insurance requires
that the City Council approve an annual report for the Police Pension Fund. The report lists
important information that can also be found in the actuarial report. Director Lynch noted that
the levy requirement for Fiscal Year 2017/2018 is listed on the report as $1,874,219. She stated
it is important that the City of McHenry continue to fund at the required level as funding has
fallen behind in the past, which has left the percent funding low at 48.7%.
Motion by Curry, second by Santi, approving the Police Pension Fund Annual Report for
Fiscal Year 2015/1016, as presented.
Voting Aye:
Voting Nay:
Absent:
Motion carried.
Santi, Glab, Curry, Peterson, Condon.
None.
Schaefer, Wimmer.
MAYOR'S STATEMENT AND REPORT
Mayor Low had no Statement or Report.
COMMITTEE REPORTS
There were no Committee Reports.
STAFF REPORTS
City Administrator Morefield announced a McHenry Area Chamber of Commerce
Holiday Mixer will take place at 31 North Banquet & Conference Center, 217 N. Route 31, on
Tuesday, December 6, 2016, from 5:00 pm to 7:00 pm,.
FUTURE AGENDA ITEMS
There were no future Agenda Items.
EXECUTIVE SESSION
Motion by Santi, second by Condon, to adjourn to Executive Session, for the review of
Executive Session Minutes, pursuant to 5 ILCS 120/2(c)(21) at 7:52 pm.
Voting Aye: Santi, Glab, Curry, Peterson, Condon.
Voting Nay: None.
Absent: Schaefer, Wimmer.
Motion carried.
Motion by Curry, second by Peterson, to return to Open Session at 8:00 pm.
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December 5, 2016
Voting Aye:
Voting Nay:
Absent:
Motion carried.
Santi, Gab, Curry, Peterson, Condon.
None.
Schaefer, Wimmer.
Council returned to Open Session at 8:00 pm.
Motion by Santi, second by Condon, approving the Release of Executive Session meeting
minutes, as presented, based on the advice of legal counsel; and destruction of any Executive
Session meeting recordings that exist more than 1&months prior to the date of this closed
session.
Voting Aye: Santi, Glab, Curry, Peterson, Condon.
Voting Nay: None.
Absent: Schaefer, Wimmer.
Motion carried.
ADJOURNMENT
Motion by Condon, second by Peterson, to adjourn the meeting at 8:01 pm.
Voting Aye:
Voting Nay:
Absent:
Motion carried.
Mayo
Santi, Glab, Curry, Peterson, Condon.
None.
Schaefer, Wimmer.
The meeting was adjourned at 8:01pm.
City Clerk