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HomeMy WebLinkAboutPacket - 04/30/2018 - City CouncilAGENDA ANNUAL MEETING OF THE CITY COUNCIL City Council Chambers, 333 S Green Street Monday, April 30, 2018, 7:00 PM 1. Call to Order. 2. Roll Call. 3. Pledge of Allegiance. 4. Consent Agenda: Motion to Approve the Following Consent Agenda Items: A. Renew Sublease Agreement between City of McHenry and Trey & Tom Corp. d/b/a Main Street Station for the property located at 4005 W. Main Street for the term ending October 31, 2020 for $1,044 per month; B. Ordinance authorizing the Mayor's execution of a Real Estate Sales Agreement for the purchase of Home Avenue properties commonly known as 4505 and 4509 Home Avenue identified as permanent index numbers 09-27-404-005 and 09-27-404-006 for a total purchase price of $35,200.00. C. Resolution authorizing the Mayor's execution of an Intergovernmental Agreement between the City of McHenry and Illinois Office of the Comptroller to allow access to the Comptroller's Local Debt Recovery Program; D. McHenry High School Request for Traffic Control to accommodate the 2018 High School Graduation Ceremony on May 22"d from 5:00 p.m. to approximately 8:30 p.m. E. Appointment of Nicholas Bennett to the Landmark Commission to fill the vacant term expiring April 30, 2020. F. April 11, 2018 Committee of the Whole meeting minutes. G. Issuance of Checks in the amount of $1,130,897.96 and H. Payment of Bills in the amount of $156,703,14. 5. Individual Action Item Agenda: A. Motion to approve the closure of Green Street and Open Carry of Alcohol for Modern Day Romeos Fan Fest special event sponsored by DC Cobbs, on Saturday, June 2, 2018. B. Motion to approve the temporary closure of Green Street during Green Street Cruise Night events on June IIth, July 9th, August 13th, September loth, and October 15th from 5:00 P.M. to 8:00 P.M. C. Motion to adopt the Fiscal Year 2018/2019 Operating Budget. D. Motion to approve the FY 2018/19 Annual Appointments of Municipal Officers, Board and Commission Members, and Standing Committees of the Council. The City of McHenry is dedicated to providing its citizens, businesses, and visitors with the highest quality of programs and services in a customer -oriented, efficient, and fiscally responsible manner. McHenry City Council Regular Meeting April 30, 2018 Page Two E. A Motion to adopt an Ordinance authorizing the Mayor's Execution of the City Administrator's employment agreement for a three year term to expire on April 30, 2021 6. Staff Reports. 7. Mayor and City Council Comments. 8. Executive Session. A. Motion to enter into Executive Session to discuss probable litigation, 5 ILCS 120/2 ( c ) (11) 9. Individual Action Item Agenda Continued A. Motion to approve an Ordinance authorizing the Mayor to Execute a Standstill aka Tolling Agreement between Meyer Material Company and the City of McHenry to extend operations at the site until August 6, 2018. 10. Adjourn. The complete City Council packet is available for review online via the City website at www.ci.mchenry.il.us. For further information, please contact the Office of the City Administrator at 815-363-2108. The proceedings of the City Council meeting are being video and audio -recorded and every attempt is made to ensure that they are posted on the City of McHenry, IL "YouTube" channel within twenty-four (24) hours of the meeting adjournment. NOTICE: In compliance with the Americans With Disabilities Act (ADA), this and all other City Council meetings are located in facilities that are physically accessible to those who have disabilities. If additional accommodations are needed, please call the Office of the City Administrator at 815-363-2108 at least 72 hours prior to any meeting so that accommodations can be made. 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. Derik Morefield, City Administrator McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2100 Fax: (815) 363-2119 www.ci.mchenry.il.us CONSENT AGENDA TO: Mayor and City Council FROM: Derik Morefield, City Administrator FOR: April 30, 2018 Regular City Council Meeting RE: Lease Agreement between the City of McHenry and Trey & Tom Corp d/b/a Main Street Station for the property located at 4005 W. Main Street. ATT: Proposed Lease Union Pacific Lease AGENDA ITEM SUMMARY: Renewal of lease agreement with Trey & Tom Corporation d/b/a Main Street Station, 4005 W. Main Street, BACKGROUND. Pursuant to direction received by the City Council at the April 16, 2018 meeting, the attached lease agreement with Trey & Tom Corp was amended to reflect the monthly lease payment of $1,044, or $6 per square foot. The City of McHenry has leased the Main Street Metra Station located at 4005 West Main Street from Union Pacific Railroad for $1 per year since 1986. In return, the city is responsible for maintaining the existing architectural appearance of the station, controlling and maintaining access to the station, and developing commercial endeavors in the station that serve Union Pacific commuters. Any rentals or revenues generated by the city's sublet agreements belong solely to the city. The current lease with Union Pacific expires on October 31, 2020. Since 1987, the city has sublet a portion of the building to Trey Covalt, President of Trey &Tom Corporation and proprietor of the Main Street Station Restaurant. The leased space is approximately 2,000 square feet. Mr. Covalt is responsible for all expenses relating to maintenance and repairs to the building up to $2,500; the first $500 for sewer and water service line repairs; and purchase of replacement cost insurance. To date, the average lease rate for McHenry's downtown area is estimated to be $6 to $8 per square foot. For the term of the current lease, the monthly rent for this site is $950. The City of McHenry is dedicated to providing its citizens, businesses, and visitors with the highest quality of programs and services in a ccrstomer-oriented, efficient, and frscally responsible manner. ANALYSIS: As the city cannot guarantee that in 2020 Union Pacific will desire to negotiate a new lease with the city, staff would prefer the building remain occupied with a viable business. The business hosts various special events throughout the year that attracts people to the west side of town. Staff recommends renewing the lease with Trey &Tom Corporation for a term expiring on October 21, 2020 to correspond with the city's Union Pacific lease. Mr. Covalt is a dependable tenant, maintains the property well, and operates a popular restaurant in the Main Street downtown district. Recommendation: If Council concurs, then it is recommended that a motion be made to approve the attached sublet agreement with Trey and Tom Corp. for the term beginning May 1, 2018 and expiring October 21, 2020 with the monthly lease payment of $1,044 per month. BEGINNING I TERM OF LEASE The term of the lease shall be dictated by the lease agreement between Union Pacific Railroad May 1, 2018 Company and the City of McHenry dated November 1, 2000 MONTHLY RENT SEE ATTACHED EXHIBITS A and B LOCATION OF PREMISES 4005 WEST MAIN STREET MCHENRY, ILLINOIS 60050 To conduct a restaurant and dram shop operation thereon. LESSEE Trey &Tom Corp. 4005 W. Main Street McHenry, Illinois 60050 LESSOR City of McHenry 333 S. Green Street McHenry, Illinois 60050 In consideration of the mutual covenants and agreements herein stated, Lessor hereby leases to Lessee and Lessee hereby leases from Lessor solely for the above purpose the premises designated above (the "Premises"), together with the appurtenances thereto, for the above Term. LEASE COVENANTS AND AGREEMENTS 1. RENT. Lessee shall pay Lessor or Lessor's agent as rent for the Premises the sum stated above, monthly in advance, until termination of this lease, at Lessor's address stated above or such other address as Lessor may designate in writing. 2. WATER, GAS AND ELECTRIC CHARGES. Lessee will pay, in addition to the rent above specified, all water rents, gas and electric light and power bills taxed, levied or charged on the Premises, for and during the time for which this lease is granted and in case said water rents and bills for 5as, electric light and power shall not be paid when due, Lessor shall have the right to pay the same, which amounts so paid, together with any sums paid by Lessor to keep the Premises in a clean and healthy condition, as Herein specified, are declared to be so much additional rent and payable with the installment of rent next due thereafter. 3. SUBLETTING; ASSIGNMENT. The Premises shall not be sublet in whole or in part to any person other than Lessee, and Lessee shall not assign this lease without, in each case, the consent in writing of Lessor first had and obtained; nor permit to take place by any act or default of himself or any person within his control any transfer by operation of law of Lessee's interest created hereby; nor offer for lease or sublease the Premises, nor any portion thereof, by placing notices or signs of "To Let," or any other similar sign or notice in any place, nor by advertising the same in any newspaper or place or manner whatsoever without, in each case, the consent in writing of Lessor first had and obtained. If Lessee, or any one or more of the Lessees, if there be more than one, shall make an assignment for the benefit of the creditors, or shall be adjudged a bankrupt, Lessor may terminate this lease, and in such event Lessee shall at once pay Lessor a sum of money equal to the entire amount of rent reserved by this lease for the then unexpired portion of the term hereby created, as liquidated damages. 4. LESSEE NOT TO MISUSE. Lessee will not permit any unlawful or immoral practice, with or without his knowledge or consent, to be committed or carried on in the Premises by himself or by any other person. Lessee will not allow the Premises to be used for any purpose that will increase the rate of insurance thereon, nor for any purpose other than that hereinbefore specified. Lessee will not keep or use or permit to be kept or used in or on the Premises or any place contiguous thereto any flammable fluids or explosives, without the written permission of Lessor first had and obtained. Lessee will not load floors beyond the floor load rating prescribed by applicable municipal ordinances. Lessee will not use or allow the use of the Premises for any purpose whatsoever that will injure the reputation of the premises or of the building of which they are a part. 5. CONDITION ON POSSESSION. Lessee has examined and knows the condition of the Premises and has received the same in good order and repair, and acknowledges that no representations as to the condition and repair thereof, and no agreements or promises to decorate, alter, repair or improve the Premises, have been made by Lessor or his agent prior to or at the execution of this lease that are not herein expressed. 6. REPAIRS AND MAINTENANCE. Lessee shall keep the Premises and appurtenances thereto in a clean, sightly and healthy condition, and in good repair, all according to the statues and ordinances in such cases made and provided, and the directions of public officers thereunto duly authorized, all at his own expense, and shall yield the same back to Lessor upon the termination of this lease, whether such termination shall occur by expiration of the term, or in any other manner whatsoever, in the same condition of cleanliness, repair and sightliness as at the date of the execution thereof, loss by fire and reasonable wear and tear expected. Lessee shall make all necessary repairs and renewals upon Premises and replace broken globes, glass and fixtures with material of the same size and quality as that broken and shall insure all glass in windows and doors of the Premises at his own expense. If, however, the Premises shall not thus be kept in good repair and in a clean, sightly and healthy condition by Lessee, as aforesaid, Lessor may enter the same himself or by his agents, servants, or employees, without such entering causing or constituting a termination of this lease or an interference with the possession of the Premises by Lessee, and Lessor may replace the same in the same condition of repair, sightliness, healthiness, and cleanliness as existed at the date of execution hereof, and Lessee agrees to pay Lessor, in addition to the rent hereby reserved, the expenses of Lessor in thus replacing the premises in that condition. Lessee shall not cause or permit any waste, misuse or neglect of the water, or of the water, gas or electric fixtures. See attached Exhibit B providing specific obligations. 7. ACCESS TO PREMISES. Lessee shall allow Lessor or any person authorized by Lessor free access to the Premises for the purpose of examining or exhibiting the same, or to make any repairs or alterations thereof which Lessor may see fit to make, and Lessee will allow Lessor to have placed upon the Premises at all times notices of "For Sale" and For Rent," and Lessee will not interfere with the same. 8. NON -LIABILITY OF LESSOR. Except as provided by Illinois statute, Lessor shall not be liable to Lessee for any damage or injury to him or his property occasioned by the failure of Lessor to keep the Premises in repair, and shall not be liable for any injury done or occasioned by wind or by or from any defect of plumbing, electric wiring or of insulation thereof, gas pipes, water pipes or steam pipes, or from broken stairs, porches, railings, or walks, or from the backing up of any sewer pipe or down -spout, or from the bursting, leaking or running of any tank, tub, washstand, water closet or waste pipe, drain, or any other pipe or tank in upon or about the Premises or the building of which they are a part nor form the escape of steam or hot water from any radiator, it being agreed that said radiators are under the control of Lessee nor from any such damage or injury occasioned by water, snow or ice being upon or coming through the roof, skylight, trap-door, stairs, walls or any other place upon or near the Premises, or otherwise, nor for any such damage or injury done or occasioned by the falling of any fixture, plaster or stucco, nor for any damage or injury arising from any act, occasion or negligence of cotenants or of other persons occupants of the same building or of adjoining or contiguous buildings or of owners of adjacent or contiguous property, or of Lessor's agents or Lessor himself, all claims for any such damage or injury being hereby expressly waived by Lessee. Page 2 9. RESTRICTIONS (SIGNS, ALTERATIONS, FIXTURES). Lessee shall not attach, affix or exhibit or permit to be attached, affixed or exhibited, except by Lessor or his agent, any articles of permanent character or any sign, attached or detached, with any writing or printing thereon, to any window, floor, ceiling, door or wall in any place in or about the Premises, or upon any of the appurtenances thereto, without in each case the written consent of Lessor first had and obtained; and shall not commit or suffer any waste in or about said premises; and shall make no changes or alterations in the Premises by the erection of partitions or the papering of walls or otherwise, without the consent in writing of Lessor; and in case Lessee shall affix additional locks or bolts on doors or windows, or shall place in the Premises lighting fixtures or any fixtures of any kids, without the consent of Lessor first had and obtained, such locks, bolts and fixture shall remain for the benefit of Lessor, and without expense of removal or maintenance to Lessor. Lessor shall have the privilege of retaining the same if he desires. If he does not desire to retain the same, he may remove and store the same, and Lessee agrees to pay the expense of removal and storage thereof. The provisions of this paragraph shall not however apply to Lessee's trade fixtures, equipment and movable furniture. 10. HEAT. Where building is equipped for the purpose, Lessor shall furnish to lessee a reasonable amount of heat, from October 1st to May Ist whenever in Lessor's judgment necessary for comfortable use of the Premises, during customary business hours (excluding Sundays and holidays but no earlier than 8:00 AM nor later than 6:00 PM unless specifically stated herein. Lessor does not warrant that heating service will be free from interruptions caused by strike, accident or other cause beyond the reasonable control of Lessor, or by renewal or repair of the heating apparatus in the building. Any such interruption shall not be deemed an eviction or disturbance of Lessee's use and possession of Premises, nor render Lessor liable to Lessee in damages. All claims against Lessor for injury or damage arising from failure to furnish heat are hereby expressly waived by Lessee. 11. FIRE AND CASUALTY. In case the Premises shall be rendered untenantable by fire, explosion or other casualty, Lessor may at his option, terminate this lease or repair the Premises within sixty (60) days. If Lessor does not repair the Premises within said time, or the building containing the Premises shall have been wholly destroyed, the term hereby created shall ceases and terminate. 12. TERMINATION; HOLDING OVER. At the termination of the term of this lease, by lapse of time or otherwise, Lessee will yield up immediate possession of the Premises to Lessor, in good condition and repair, loss by fire and ordinary wear expected, and will return the keys therefore to Lessor at the place of payment of rent. If Lessee retains possession of the Premises or any part thereof after the termination of the term by lapse of time or otherwise, then Lessor may at its option within thirty (30) days after termination of the term serve written notice upon Lessee that such holding over constitutes either (a) renewal of this lease for one year and from year to year thereafter, at double the rental (computed on an annual basis) specified in Section 1, or (b) creation of a month to month tenancy, upon the terms of this lease except at double the monthly rental specified in Section 1, or (c) creation of a tenancy at sufferance, at a rental of $950.00 per month for the time Lessee remains in possession. If no such written notice is served then a tenancy at sufferance with rental as stated at (c) shall have been created. Lessee shall also pay to Lessor all damages sustained by Lessor resulting from retention of possession by Lessee. The provisions of this paragraph shall not constitute a waiver by Lessor of any right of re-entry as hereinafter set forth; nor shall receipt of any rent or any other act in apparent affirmance of tenancy operate as a waiver of the right to terminate this lease for a breach of any of the covenants herein. 13. LESSOR'S REMEDIES. If Lessee shall vacate or abandon the Premises or permit the same to remain vacant or unoccupied for a period of ten (10) days, or in case of the non-payment of the rent reserved hereby, or any part thereof, or of the breach of any covenant in this lease contained, Lessee's right to the possession of the Premises thereupon shall terminate with or (to the extent permitted by law) without any notice or demand whatsoever, and the mere retention of possession thereafter by lessee shall constitute a forcible detainer of the Premises; and if the Lessor so elects, but not otherwise, and with or without notice of such election nor any notice or demand whatsoever, this lease shall thereupon terminate and upon the termination or Lessee's right of possession, as aforesaid, whether this lease be terminated or not, Lessee agrees to surrender possession of the Premises immediately without the receipt of any demand for rent, notice to quit or demand for possession of the premises whatsoever, and hereby grants to Lessor full and free license to enter into and upon the Premises or any part thereof, to take possession thereof with or (to the extent permitted by law) without process of law, and to expel and to remove lessee or any other person who may be occupying the Premises or any part thereof, and Lessor may use such force in and about expelling and removing Lessee and other person as may reasonably be necessary and Lessor may repossess himself of the Premises as of his former estate, but such entry of the Premises shall not constitute a trespass or forcible entry or detainer, nor shall it cause a forfeiture of rents due by virtue thereof, nor a waiver of any covenant, agreement or promise in this lease contained, to be performed by Lessee. Lessee hereby waives all notice of any election made by Lessor hereunder, demand for rent, notice to quit, demand for possession, and any and all notices and demand whatsoever, of any and every nature, which may or shall be required by any statue of this state relating to forcible entry and detainer, or to landlord and tenant, or any other statute, or by the common law, during the term of this lease or any extension thereof. The acceptance of rent, whether in a single instance or repeatedly, after it falls due, or after knowledge of any breach hereof by Lessee, or the giving or making of any notice or demand, whether according to any statutory provision or not, or any act or series of acts except an express written waiver, shall not be construed as a waiver of Lessor's rights to act without notice or demand or of any other right hereby given Lessor, or as an election not to proceed under the provisions of this lease. Page 3 14. RIGHT TO RELET. If Lessee's right to the possession of the Premises shall be terminated in any way, the Premises, or any part thereof may, but need not (except as provided by Illinois statute) be relet by Lessor, for the account and benefit of Lessee, for such rent and upon such terms and to such person or person and for such period or periods as may seem fit to the Lessor, but Lessor shall not be required to accept or receive any tenant offered by Lessee, nor to do any act whatsoever or exercise any diligence whatsoever in or about the procuring of any care or diligence by Lessor in the reletting thereof, and if a sufficient sum shall not be received from such reletting to satisfy the rent hereby reserved, after paying the expenses of reletting and collection, including commissions to agents, and including also expense of redecorating, Lessee agrees to pay and satisfy all deficiency; but the acceptance of a tenant by Lessor, in place of Lessee, shall not operate as a cancellation hereof, nor to release Lessee from the performance of any covenant, promise or agreement herein contained, and performance by any substituted tenant by the payment of rent, or otherwise, shall constitute only satisfaction pro tanto of the obligations of Lessee arising hereunder. 15. COST5 AND FEES. Lessee shall pay upon demand all Lessor's costs, charges and expenses, including fees of attorneys, agents and others retained by Lessor, incurred in enforcing any of the obligations of Lessee under this lease or in any litigation, negotiation or transaction in which Lessor shall, without Lessor's fault, become involved through or on account of this lease. 16. CONFESSION OF JUDGMENT. Lessee hereby irrevocably constitutes and appoints any attorney of any court of record in this State, to be his true and lawful attorney for him and in his name and stead, to enter his appearance in any suit or suits that may be brought in any court in this State at any time when any money is due hereunder for rent or otherwise, to waive the issuing of process and service thereof and trial by jury or otherwise, and to confess a judgment or judgments for such money so due and or costs of suit and of reasonable attorney's fees in favor of Lessor, and to release all errors that may occur or intervene in such proceedings, including the issuance of execution upon any such judgment, and to stipulate that no write of error or appeal shall be prosecuted from such judgment or judgments, nor any bill in equity filed, nor any proceedings of any kind taken in law or equity to interfere in any way with the operation of such judgment or judgments or of execution issued thereon and to consent that execution may immediately issue thereon. 17. LESSOR'S LIEN. Lessor shall have a first lien upon the interest of Lessee under this lease, to secure the payment of all moneys dues under this lease, which lien may be foreclosed in equity at any time when money is overdue under this lease; and the Lessor shall be entitled to name a receiver of said leasehold interest, to be appointed in any such foreclosure proceeding, who shall take possession of said premises and who may relet the same under the orders of the court appointing him. 18. REMOVAL OF OTHER LIENS. In event any lien upon Lessor's title results from any act or neglect of Lessee, and Lessee fails to remove said lien within ten (10) days after Lessor's notice to do so, Lessor may remove the lien by paying the full amount thereof or otherwise and without any investigation or contest of the validity thereof, and Lessee shall pay Lessor upon request the amount paid out by Lessor in such behalf, including Lessor's costs, expenses and counsel fees. 19. REMEDIES NOT EXCLUSIVE. The obligation of Lessee to pay the rent reserved hereby during the balance of the term hereof, or during any extension hereof, shall not be deemed to be waived, released ore terminated, nor shall the right and power to confess judgment given in paragraph 16 hereof be deemed to be waived or terminated by the service of any five-day notice, other notice to collect, demand for possession, or notice that the tenancy hereby created will be terminated on the date therein named, the institution of any action of forcible detainer or ejectment or any judgment for possession that may be rendered in such action, or any other act or acts resulting in the termination of Lessee's right to possession of the Premises. The Lessor may collect and receive any rent due from Lessee, and payment or receipt thereof shall not waive or affect any such notice, demand, suit or judgment, or in any manner whatsoever waive, affect, change, modify or alter any rights or remedies which Lessor may have by virtue hereof. 20. NOTICES. Notices may be served on either party, at the respective addresses given at the beginning of this lease, either (a) by delivering or causing to be delivered a written copy thereof, or (b) be sending a written copy thereof by United States certified or registered mail, postage prepaid, addressed to Lessor or Lessee at said respective addresses in which event the notice shall be deemed to have been served at the time the copy is mailed. 21. MISCELLANEOUS. (a) Provisions typed on this lease and all riders attached to this lease and signed by Lessor and Lessee are hereby made a part of this lease. (b) Lessee shall keep and observe such reasonable rules and regulations now or hereafter required by Lessor, which maybe necessary for the proper and orderly care of the building of which the Premises are a part. (c) All covenants, promises, representations and agreements herein contained shall be binding upon, apply and inure to the benefit of Lessor and Lessee and their respective heirs, legal representatives, successors and assigns. (d) The rights and remedies hereby created are cumulative and the use of one remedy shall not be taken to exclude or waive the right to the use of another. (e) The words "Lessor" and "Lessee" wherever used in this lease shall be construed to mean Lessors or Lessees in all cases where there is more than one Lessor or Lessee and to apply to individuals, male or female, or to firms or corporations, as the same may be described as Lessor or Lessee herein, and the necessary, grammatical changes shall be assumed in each case as though fully expressed. If there is more than one Lessee the warrant of attorney in paragraph 16 is given jointly and severally and shall authorize the entry of appearance of, and waiver of issuance of process and trial by jury by, and confession of judgment against any one or more of such Lessees, and shall authorize the performance of every act in the name of and on behalf of any one or more of such Lessees. 22. SEVERABILITY. If any clause, phrase, provision or portion of this lease or the application thereof to any person or circumstance shall be invalid, or unenforceable under applicable law, such event shall not affect, impair or render invalid or unenforceable the remainder of this lease nor any other clause, phrase, provision or portion hereof, nor shall it affect the application of any clause, phrase, provision or portion hereof to other persons or circumstances. 22-30 SEE ATTACHED EXHIBIT A. IN WITNESS WHEREOF, the parties hereto have executed this instrument as the Date of Lease started above. LESSEE: Trey Covalt, President Trey & Tom Corp. Date: Date: I�J�.XY�a �.��y �� ivicnenry EXHIBIT A RIDER TO LEASE AGREEMENT May 1, 2018 SUBJECT TO 23. This lease shall be subject to the terms and conditions of the Lease Agreement LESSOR'S LEASE between Union Pacific Railroad Company ("Union Pacific"), as Lessor, and WITH UNION City of McHenry, as Lessee, dated November 1, 2000, a copy of which is PACIFIC RAILROAD, attached hereto, incorporated herein by reference and made a part hereof as COMPANY though set forth herein in full ("Underlying Lease"). Lessee shall comply with each of the covenants to which the City of McHenry is bound by the Underlying Lease. DRAM SHOP 24. Subject to Lessee's compliance with the laws of the State of Illinois and the Ordinances of the City of McHenry pertaining to dram shops, and the terms of this Lease, alcoholic beverages may be sold at retail in the Premises. INSURANCE 25. Liability Insurance. A. Lessee shall obtain and maintain with carriers acceptable to the Lessor, not less than the insurance coverages set forth below, which coverages shall be primary as to any other valid and collectible insurance or self insurance which may be available to the Lessor: 1. workers compensation and employers liability coverage in accordance with statutory requirements of the state having jurisdiction over the employee, and having an employers liability limit of no less than one million dollars ($1,000,000) for each occurrence; and 2. commercial general liability coverage with at least limits of one million dollars ($1,000,000) per each occurrence, and two million dollars ($2,000,000) in the aggregate, which includes coverage for liability arising out of operations performed by or on the Premises, specifically including coverage for premises liability, broad form contractual liabilities, insuring any and all contemplated operations and for any related exposure at the Premises. 3. business automobile liability coverage, including all motor vehicles, including equipment used in connection with operation or maintenance of any business or enterprise at the Premises, and 4. liquor liability coverage, including liability under Section 6-21 of Act 5 of Chapter 735 of the Illinois Compiled Statues, commonly known Exhibit A, Page 1 as the "Dram Shop Act," and all laws amendatory thereof, having a liability limit of one million dollars ($1,000,000) per occurrence and in the aggregate. B. Lessee's insurers shall agree to waive all rights of subrogation against the Lessor for losses arising from the Lessee's operations. C. Lessee shall furnish the Lessor with certificates of insurance naming the Lessor and Union Pacific as additional insured, and with original endorsements affecting coverage required by this clause. The certificates and endorsements for each insurance policy are to be signed by a person authorized by that insurer to bind coverage on its behalf. D. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be suspended, voided, canceled, reduced in coverage or in limits except after thirty (30) days prior written notice by certified mail return receipt requested, has been given to the Lessor and Union Pacific. 26. Property Damage to the Premises. Lessor shall at Lessee's sole expense and at all times during the term hereof, maintain fire, wind, storm and extended coverage, vandalism, malicious mischief — broad form, in not less than the replacement value of the building, as specified by Union Pacific from time to time as required in the Underlying Lease. Upon execution of this Lease Agreement, and thereafter upon request, Lessee shall furnish Lessor with copies of each of said policies. ASSUMPTION 27. The Lessee assumes liability for all injury to or death of any person or OF LIABILITY person including employees of the Lessee, any sub -Lessee, any supplier or any other person and assumes liability for all damage to property sustained by any person. INDEMNIFICATION 28. To the fullest extent permitted by law, the Lessee hereby agrees to defend, indemnify and hold harmless the Lessor and Union Pacific against all injuries, deaths, loss, damages, claims, suits, liabilities, judgments, costs and expense, which may in any way accrue against the Lessor and Union Pacific, and the Lessee shall, at its own expense, appear, defend and pay all charges and attorneys and all costs and other expenses arising therefore or incurred in connection with this license, and, if any judgment shall be rendered against the Lessor and/or Union Pacific, the Lessee shall, at its own expense satisfy and discharge the same. NOTICE AND 29. All notices herein required shall be in writing and shall be served on the RENT parties at their following addresses, or at such other addresses as they may PAYMENTS hereafter from time to time in writing to the other party designate: Exhibit A, Page 2 City of McHenry Administrator 333 S. Green Street McHenry, Illinois 60050 Trey &Tom Corp. d/b/a/ Main Street Station 4005 W. Main Street McHenry, Illinois 60050 The mailing of a notice by certified mail, return receipt requested, to the aforesaid addresses, or the actual delivery of notices thereto in any other manner, shall be sufficient service for purposes of this Lease. Lessee shall mail rent to Lessor at Lessor's aforesaid address, or at such other address as Lessor may from time to time designate. TERM AND RENT 30. Lessee shall pay Lessor or Lessor's agent the sum of $1,044 per month for a term commencing on May 1, 2018, and terminating October 31, 2020, or sooner as provided herein, subject to the terms and conditions of the Lease Agreement between Union Pacific as Lessor, and City of McHenry, as Lessee, dated November 1, 20000 Exhibit A, Page 3 EXHIBIT ` D Lessee shall be responsible for the following maintenance obligations: 1. All expenses relating to maintenance and repairs to the building on the Premises relating to ordinary wear and tear items such as keeping the building in good condition and the HVAC system in good operating condition. 2. Except for sewer and water service line repair expense, with respect to any repair expenses relating to the building on the Premises, in excess of $2,500, the Lessee shall pay up to $2,500 for each occurrence and the Lessor shall pay all repair expenses in excess thereof. With regard to repair expenses and damages relating to sewer and water service line expenses, including damage from backups, the Lessee shall pay up to $500 for each occurrence and the Lessor shall pay all repair expenses in excess thereof. 1` S��v on -1- Z8U � ����?lY+�'�e`- 3 3 � �' �Al-� �o � I LEASE NO. a 31 3 FILE NO. 1930-44 LEASE AGREEMENT LESSOR: Union Pacc Railroad Company 1800 Farnam Omaha, NE 68102 LESSEE: John Lobaito City of McHenry 333 South Green Street McHenry, Illinois 60050 On this isT day of NOVEMBER, z000 ,x1�� ,THE CITY OF MCHENRY, ILLINOIS, (hereinafter called "Lessee") hereby offers and agrees to lease from the UNION PACIFIC RAILROAD COMPANY (hereinafter called "Lessor") the passenger station (hereinafter called "Premises") of Lessor, situated in the City of McHenry, State of Illinois shown in heavy dark outline on "Exhibit A", including the entire basement, attached hereto and made a part hereof. The term of this Lease Agreement shall be fiwenty (20) years, unless sooner terminated as provided herein. The Lease is to commence on the day and year first above written. This Lease is made upon the following express covenants and agreements, each oI which is made an express condition hereof: COVENANT 1. Lessee covenants and agrees to pay Lessor as rent for the premises the sum of One Dollar and No/100 ($1.00) per year and other valuable considerations. PURPOSE OF LEASE 2. The Lessee desires (a) to -maintain the existing architectural appearance of the passenger station on the said premises, (b) to control and maintain access to the said station, and c) to develop commercial endeavors in the station which will serve the Lessor's commuters. Accordingly, the Lessor has granted the Lessee this lease. However, the said Premises will continue to be used and occupied primarily as a railroad commuter station facility. The Lessor reserves unto itself, its successors and assigns, and licensees the right to use said Premises in the general conduct of its railroad business including endeavors to convenience its commuters and the public. ,� '�, -� � . EXCLUS/VE USE BY LESSOR 3. Lessor reserves for its exclusive use and occupancy that portion of the passenger station shaded in yellow on the attached "Exhibit A". Lessor will be responsible for the interior walls of the portion that it reserves for its exclusive use. USE BY LESSOR AND PURL/C 4. Lessor reserves for lawful use by Lessor and the public, including but not limited to Lessor's customers, the said Premises (except such part of said premises as are with Lessor's consent hereafter sublet by Lessee}. Lessee shall not interfere with or infringe upon Lessor's or the public's lawful use of the said Premises so reserved. Lessor and Lessee each reserve the right to regulate and control the people who enter said Premises, and their conduct, and reserves the right to enter upon said premises at any time, and to eject therefrom any disorderly person or persons. ROADWAYS AccEss 5. Lessee accepts the Premises subject to rights of roadways, easements, permits, or licenses. Lessee agrees to provide to Lessor, and the public, access over and through Premises on these existing roadways and easements should such access be deemed necessary by Lessor. Lessee further agrees that Lessor shall not be responsible for the care or maintenance (including snow removal) of said roadways. RELOCAT/ON 6. Lessor reserves the right to maintain or relocate its existing facilities, or to construct and thereafter maintain new facilities, in the vicinity of the Premises with no liability for damages to Lessee`s interests or property resulting from such activities. Lessor agrees, however, that no changes shall be made without prior consultation with Lessee. S/GNS 7. Lessor reserves the right to post, paint, or place, or to have posted, painted or placed on the Premises, informational signs relative to the operations of the Lessor on the Premises, including, but not limited to, those designed to enhance the accessibility of said facilities and services to the elderly and persons with disabilities.. Lessor agrees, however, that no such signs shall be posted, painted, or placed without Lessee's prior consent, Advertising signs will not be posted in the Premises. 2 COMPLIANCE (LEGAL AND /NSURANCE) 8. Lessee shall not use or permit upon the Premises anything that will invalidate any policies of insurance now or hereafter carried on the Premises or any building or structure thereon. Lessee shall maintain and use the Premises and buildings and structures thereon in accordance with the requirements of all local ordinances, state and federal laws in effect during the term of this lease. POLLUT/ON 9. Lessee further agrees to comply with all ordinances, laws, rules, and regulations enacted by any governmental body or agency relating to the control, abatement or emission of air and water contaminants and/or disposal of refuse, solid wastes or liquid wastes. Lessee shall bear all cost and expense arising from compliance with said ordinances, laws, rules, or regulations and shall indemnify and save harmless Lessor from all liability, including without limitation, fines, forfeitures, and penalties arising in connection with the failure by Lessee to comply with such ordinances, laws, rules or regulations. ENVIRONMENTAL CONTAMINATION 10. Lessee recognizes and assumes responsibility for environmental liability or responsibility imposed under applicable environmental laws, regulations or any other similar requirements relating to any contamination of the Premises or groundwater thereunder or discharge or release to adjacent property arising from or in any respect aggravated or altered by any operations or activities by, or any equipment or facilities used by or permitted on the Premises by Lessee (the foregoing hereinafter referred to as "Lessee operations"). Lessee, therefore, agrees to indemnify and hold harmless Lessor, its officers, agents and employees from any and all liability, fines, penalties, claims, demands, loss or lawsuits brought by any third party or governmental agency under any theory of law against Lessor seeking to hold Lessor liable for any investigation, response or cleanup costs, penalties or damages, whether personal, property or environmental, for any contamination of any property of groundwater thereunder or discharge or release to adjacent property arising out of or in any respect aggravated or altered by Lessee operations. Lessee agrees that the above indemnity extends to any liability resulting from or arising out of Lessee's implementation of any investigation, response or cleanup plan approved by the Unified States Environmental Protection Agency or companion state agency. Lessee further agrees to undertake, at its own expense, any [t3 ' �l ., investigation, response or cleanup of any contamination of the premises and groundwater thereunder arising from or in any respect aggravated or altered by any Lessee operations and to promptly notify Lessor of any event, notice, claim, demand or litigation which involves or alleges contamination of the premises, the groundwater thereunder or a discharge or release therefrom to adjacent property. RELOCATIONS OF WIRES 1 1. Lessee accepts the Premises subject to rights of any party, including Lessor, in and to any existing telephone, telegraph or other wires, and poles and facilities of any kind whatsoever, " � whether or not of record. Should the Lessee at any time require the relocation of any of same, Lessee shall bear and pay the cost of so doing. QU/ET ENJOYMENT AND LESSOR'S TITLE 12. Lessor makes no covenant for quiet enjoyment of the premises. Lessee assumes any damages Lessee may sustain as a result of, or in connection with, any want or failure at any time of Lessor's title to the Premises. NO SUBROGATION 13. Lessee agrees all insurance policies, if any, issued to it, or for or upon Lessee's account, covering any injuries to persons or any loss or damage to property so written that the insurer shall have no claim or recourse of any kind whatsoever against Lessor, Metra, or the Premises unless said injuries, loss or damage are the result of the sole negligence by the Lessor, Metra or Lessor's representatives. L/ABILITY 14. As a material consideration for entering into this Lease and without which the Lessor would not enter into same, the Lessee covenants and agrees to indemnify, save harmless and protect the Lessor and the Coriimuter Rail Division of the Regional Railway Authority ("METRA") from and against any and all loss, damage, claim, demand, fine, lawsuit and/or liability, and any and all costs, expenses and legal fees in connection therewith by reason of injuries to or death of persons and/or loss of or damage. to property and/or violation of any law, ordinance or regulation arising or growing. out of or connected with this Lease, the Premises, and/or any act or omission of (I) the Lessee, its employees or agents, and/or (ii) any other person performing any work or service for or on behalf of the Lessee on or about said Premises or arising out of their presence on said Premises. 0 L/ENS 15. Lessee agrees not to suffer or permit any lien of mechanics or material men to be placed against the Premises or any part thereof and, in case of any such lien attaching, immediately to pay off and remove same. � It is further agreed by the parties hereto that Lessee has no authority or power to cause or permit any lien or encumbrance of any kind whatsoever, whether created by act of Lessee, operation of law or otherwise, to attach to or to be . placed upon Lessor's title or interest in the Premises, and any and all liens and encumbrances created or suffered by Lessee or its tenants shall attach to Lessee's interest only. EM/NENT DOMA/N 16. If the whole or any part of the Premises shall be taken or condemned by any competent authority for any public use or purpose, this lease shall, as to the part so taken, terminate as of the date when taken or required for such use or purpose. The entire amount of damages or compensation payable or paid for the part taken and then for remainder, if any, shall be paid to and retained by Lessor as its own property without apportionment. Lessee hereby assigns to Lessor any claim which Lessee would have to such damages. Lessee shall look to said authority solely for any compensation or damages on account of Lessee's cost and expense of removing Lessee's personal property from the Premises and for the cast and expense of moving any building or other structure placed upon the Premises by Lessee and which Lessee would have the right to remove as a Lessee of the Premises. CAUSE FOR BREACH 17. If Lessee defaults in any of Lessee's undertakings or obligations in this lease, then such event or�action shall be deemed to constitute a breach of this lease and if such default remains uncured for thirty (30) days after notice in writing, this lease shall cease and terminate, at Lessor's option. TERMINAT/ON 18. Either party may at any fiime terminate this lease by giving ninety (90) days' written notice of its intention to do so. SURRENDER OF PREM/SES 19. Upon the termination of this lease by any manner, means, or contingency whatsoever, Lessee shall, without further notice or demand, deliver possession of the Premises to Lessor in as good condition as when entered upon, ordinary wear and tear accepted. 5 REENTRY 20. If Lessee shall breach or default in any of the terms of this lease and if such breach or default is not cured or if this lease shall expire or terminate in any manner, it shall be lawful for Lessor, then or at any time thereafter, to reenter the Premises and take possession thereof, with or without process of the law, and to use any reasonable or necessary force for regaining possession; provided however, the Lessee shall have the right to remove certain of Lessee's properties as hereinabove provided. WAIVER OF REMEDIES 21. (a) No waiver of any default of Lessee shall be implied from omission by Lessor to take any action on account of such default. No express waiver shall affect any default other than the default specified in the express waiver and that only for the time and to the extent therein stated. No receipt of money by Lessor from Lessee (1) after any default by Lessee, (ii) after the termination of this lease, (iii) after the service of any notice or demand or after the commencement of any suit, or (iv) after final judgement for possession of the Premises, shall waive such default or reinstate, continue or extend the term of this lease or affect in any way any such notice or suit, as the case may be. (b) The erection of buildings or improvements on the Premises shall not constitute a waiver or affect in any way the right of either party to terminate this lease. SUBLETTING 22. Any rentals or other revenues gerierated by the subletting by Lessee of any portion of the Premises shall belong solely to the Lessee. IMPROVEMENTS 23. Prior to any improvements being made to the premises, Lessee shall submit to Lessor's Director -Real Estate of plans and specifications for improvements on any portion of the Premises. ("Improvements" shall include, but not necessarily be limited to, replacement or repair of roof, floors, heating plant, plumbing, or walls; but shall not include such items of maintenance as window washing, cleaning, sweeping, or normal services ordinarily provided by a janitor.) 0 � . r w CUMULAT/VE R/GHTS 24. All rights and remedies of Lessor shall be cumulative, and none shall exclude any other rights and remedies allowed by law. NOT/CES 25. All notices, demands, elections, and other instruments required or permitted to be given or made by either party upon the other by the terms of this lease or any statute, shall be in writing. They shall be deemed to have been sufficiently served, if sent by certified or registered mail, with proper postage prepaid to Lessor or Lessee at the respective address first above shown. Such notices, demands, elections and other instruments shall be considered as delivered to recipient on the second business day after deposit in the U.S. Mail, or when actually received, whichever is earlier. ENT/RE AGREEMENT 26. All of the representations and obligations of Lessor are contained herein. No modifications, waivers or amendments of this lease, or any of its terms, shall be binding upon Lessor unless it is in writing and signed by a duly authorized Officer of the Lessor. RA/L SERVICE 27. Lessor makes no warranties or representations, expressed or impled as to continued rail service to the Premises. HOURS OPEN TO PUBL/C 28. Lessee shall control the hours during which the Premises shall be open to the public. ACCEPTANCE 29. Lessee has examined and knows the condition of the Premises and shall enter upon and take the same in their condition at the commencement of the term of this lease. MA/NTENANCE 30. Lessee agrees to provide all cleaning and janitorial service and supplies, including toilet paper and hand soap, to keep Premises in a clean and neat condition satisfactory to the Lessor's Director- . Real Estate. Only those areas as defined as the "Premises" will be governed by this section. During the term of this Agreement, Lessee shall maintain and repair said passenger station and all fixtures and appurtenances 7 thereof, and shall keep all of the same, and any area used in the future for commercial development, in a good state of repair, appearance and order (including, but not limited to, regular cleaning of floors, windows, painting, plumbing fixtures and the providing of scavenger service), corresponding to standards that apply to public buildings and facilities, Lessee shall be responsible for repairing or replacing any structural parts of the depot building resulting from ordinary wear and tear (such as support walls, structural members, columns, floors, roof, heating plant and foundation). Lessee shall be responsible for notifying the Lessor, in writing, of the need for improvements or repairs which are to be the responsibility of the Lessee. Lessee will also be responsible for outside maintenance of the building R/GHT TO /NSPECT 31. Lessor, its agents, employees and authorized contractors shall have the right to enter the Premises or any part thereof, at all reasonable hours, for the purpose of inspecting the Premises to determine if Lessee is complying with all terms and conditions of this lease and/or to determine through inspection and/or testing if any hazardous condition, pollution or contamination is present or threatened. Lessee agrees to cooperate with Lessor in any such inspection and to provide at Lessor's request any and all permits, reports, journals, bills, shipping papers or records of any kind, paper or electronic, relating to any materials used, stored, heated, disposed of or sold on or transported from the Premises. BU/LD/NG /NSURANCE 32. Lessee further agrees to obtain, at Lessee's own cost and expense, fire, wind storm and extended coverage insurance in the amount of full insurable value of the passenger station to be determined from insurance agent/appraiser and approved by Lessor. Said insurance shall run in favor of Lessee and shall be endorsed to assume the contractual obligations of Lessee as set forth in this subject lease. A duplicate copy of such insurance policy or a certificate of insurance and signed copy of report showing established insurable value, shall be furnished to the Lessor and must show on the insurance policy or the certificate of insurance that the Lessor will be properly notified within a thirty (30) day written notice of any modification or cancellation of such policy. Lessee may self -insure against the risks referred to above. UT/L/T/ES 33. Lessee will pay all the utility costs incurred by the operation of the Premises. SALE OR �..''� �� ASS/GNMENT 34. Any sale, assignment, transfer, or underletting of this lease by Lessee without the previous written consent of Lessor shall be void. Such written consent shall not be unreasonably withheld and it is the intent of the parties hereto that portions of the Premises will be sublet for commuter convenience service. No act of Lessor, including acceptance of money by Lessor from any other party, shall constitute a waiver of this provision. REHAB/L/TATION . 35. In the event funds become available from either a public agency or other sources for the rehabilitation of railway stations, the Lessor agrees that it will cooperate with Lessee or other parties in the applications for such funds, provided there is no cost or expense to Lessor of any kind in the acquisition of these funds ' and pravided such rehabilitation in no way adversely affects Lessor's interests in the Passenger Station or adversely affects its commuter railway operation. IN WITNESS WHEREOF, the parties hereto have executed these presents the day and year first above written. WITNESS: UNION PAC�C,I�A;,I�ROAD COMPANY (For Lessor) WITNESS: FORMS\0015 �C� By: CITY OF MCHENRY, ILLINOIS G� STEVEN J. CUDA, MAYOR J [ w000 :)e bt4 AREA LEASED TO THE CITY OF MCHENRY SHOWN .. AREA RETAINED BY I E3HOWN...................... 0 Sao oRf' not Is It oll'o noo, Its not 0 an is* a.= EXHIBIT A Jlomssnnntn�if -monsoon, monat aseention -_i i it ft-sm. else sments its *insaft most. _ - }i r �' ;:�$r "or " �1(I. '.;^ - - o I — ` mac- - ��4'.``" r.. a IS : f_ i — � o r ,..��Go A '�� E5T16uLE r'so Vow so in In I It a It am tons two am on 10 ot m ? _A. 'C•- i ,}, :^4 •- : j �;. i.. _ =-- - '.Z - .'. xr. sil .co.�>ir.�- : I G . - -� I r'.).• - :i�'=23 i y: 6i: ? I^5 .3G 9qt 7[iS:oce:3d: ECG ' t - 3 'S•3L-�?, - : ' _ a t :-�f, I * M - fit:: :, : _ - �Y , I it now It Ile .4 .j�-. .g - r }.'- .. 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Is aIt �;t. r�.._ °n z�rceoE�s w,n.: _ Cpti[R[Te sTt�s Itz _ F a-- aitm :�•° '7T V'. #'r' fa..j: , - - A' sowl - .i1_A?o}(:7A�,3 :,•:,:' ` so { CtHCT�IT[I�TIPS,YiISY` m�e so +;7ai:. �'' , i 1_• = a g, MAsoK' ar::'?' =r.: men *1 at a Sol IF so, 1li'ams: y -ji Is Its+_:h;1.'sti 1 to —oil 4 -VI �i„ }, - we me, of Am a allI less ,:.. �Into- I_a sonIzoire So I no pGt Or �UTt1wortj6Rn60 lost so 'ti,•. 1 :1 %'•a — Ctn'11ke or Txecsc7 as IN a.f Derik Morefield, City Administrator 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: April 30, 2018 TO: City Council FROM: David McArdle, City Attorney Derik Morefield, City Administrator RE: Ordinance Authorizing the Mayor to execute the attached Real Estate Sale Agreement and all other necessary closing documents relating to the City's purchase of two (2) vacant parcels at 4505 and 4509 Home Avenue in the city of McHenry. AGENDA ITEM SUMMARY: The purpose of this agenda item is for Council to authorize the Mayor to execute the attached Real Estate Sale Agreement and all other necessary closing documents relating to the City's purchase of two (2) vacant parcels at 4505 and 4509 Home Avenue in the city of McHenry. BACKGROUND/ANALYSIS: As you may recall, on December 18, 2017 Council discussed the purchase of the identified parcels in closed session (these minutes have since been approved for release). These parcels have been identified as desirable in addressing drainage concerns as part of the Lakeland Park Drainage project. Like the Curran Road/Route 120 parcels, staff has been able to negotiate a purchase of price of 80% of the appraised value of $44,000 (both parcels combined). This amount is $35,200. RECOMMENDATION: Therefore, if Council concurs, it is recommended that a motion be made to adopt an Ordinance authorizing the Mayor's execution of the attached Real Estate Sale Agreement and all other necessary closing documents relating to the City's purchase of two (2) vacant parcels at 4505 (PIN 09-27-404-005) and 4509 (PIN 09-27-404-006) Home Avenue in the city of McHenry for an amount not to exceed $35,200. 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. ORDINANCE INV. ORD-15- AN ORDINANCE AUTHORIZING THE MAYOR'S EXECUTION OF A REAL ESTATE SALES AGREEMENT BETWEEN CASEY J. JOHNSON AND THE CITY OF MCHENRY, MCHENRY COUNTY, ILLINOIS WHEREAS, the City of McHenry, McHenry County, Illinois, is a home rule municipality as contemplated under Article VII, Section 6, of the Constitution of the State of Illinois, and the passage of this Ordinance constitutes an exercise of the City's home rule powers and functions as granted in the Constitution of the State of Illinois. WHEREAS, it has been determined that the purchase of two (2) adjacent vacant lots commonly known as 4505 and 4509 Home Avenue, McHenry, McHenry County, Illinois identified as permanent index numbers 09-27404-005 and 09-27404-006 will serve the public interest and facilitate improvements to the Lakeland Park Drainage project; NOW, THEREFORE, BE IT ORDAINED by the CITY COUNCIL of the CITY OF MCHENRY, McHenry County, Illinois, as follows: SECTION 1: The Real Estate Sales Agreement dated April 30, 2018 between the City of McHenry and Casey J. Johnson, PO Box 11, Colstrip, MT 59323 is attached to this Ordinance and incorporated herein by reference as Exhibit A. SECTION 2: The Mayor is hereby authorized to affix his signature as Mayor to Exhibit A for the uses and purposes therein set forth. SECTION 3: All Ordinance or parts thereof in conflict with the terms and provisions hereof are hereby repealed to the extent of such conflict. SECTION 4: This Ordinance shall be published in pamphlet form by and under the authWILY of the corporate authorities of the City of McHenry, McHenry County, Illinois and shall be recorded with the McHenry County Recorder's Office. SECTION 5: This Ordinance shall be in full force and effect from and after its passage, approval, and publication in pamphlet form as provided bylaw. APPROVED AND ADOPTED THIS 30TH DAY OF APRIL 2018. Voting Aye: Voting Nay: Absent: ATTEST: Deputy Clerk Mayor EXHIBIT A REAL ESTATE SALES AGREEMENT This Sale Agreement ("Agreement") is made as of the _ day of April, 2018 between Casey J. Johnson, P.O. Box 1 I, Colstrip, MT 59323 ("Seller") and the City of McHenry, an Illinois municipal corporation ("Buyer' Whereas, Buyer desires to purchase and Seller desires to sell certain real property consisting of approximately 2 adjacent vacant lots commonly known as 4505 and 4509 Home Avenue, McHenry, McHenry County, Illinois, identified as permanent index numbers 09-27404- )05 and 09-27-404-006, all legally described on the attached Exhibit A (collectively, "Subject Property"). Now, therefore, in consideration of this covenants and agreements made herein, the adequacy and sufficiency of which the parties agree they have received, Seller and Buyer agree as follows: 1. Sale of Property: Seller agrees to sell to Buyer, and Buyer agrees to buy from Seller, the Subject Property for a total purchase price of thirty five thousand two hundred dollars $35,200.00 on the Closing Date. This purchase price shall be paid at the Closing. 2. Conditions to Closinu: The obligations of Buyer ("Buyer's Conditions") to close under this Agreement are contingent upon each of the following. 2.1 Representations and Warranties: The representations and warranties of Seller contained in this Agreement must be true now and on the Closing Date as if made on the Closing Date. 2.2 Title and Survey: Title and survey shall have been found acceptable, or been made acceptable, in accordance with the requirements and terms herein. 2.3 Buyer's Termination: At any time during the Due Diligence Period defused in Section 7.1, the Buyer has the unilateral right to terminate the Agreement, at no cost. 3. Closin : Subject to compliance by the parties hereto with their respective obligations to be performed at or prior to the Closing and satisfaction of the respective conditions precedent to the obligations of Buyer and Seller to consummate the transaction contemplated hereby, consummation of the sale of the Property by Seller to Buyer under this Agreement ("Closing") shall occur on or after May 7, 2018, but not later than June 15, 2018, as agreed between the parties ("Closing Date" or "Date of Closing"). The Closing shall take place at a location designated by Buyer. Seller agrees to deliver possession of the Property to Buyer on the Closing Date. 3.1 Seller's Closing Documents: On the Closing Date, Seller shall execute and deliver to Buyer the following (collectively, "Seller's Closing Dacuments"), all in form and content reasonably satisfactory to Buyer: 3.1.1 Deed: Warranty Deed from Seller conveying the Subject Property to Buyer, or Buyer's nominee, free and clear of all encumbrances, except the Permitted Encumbrances hereafter defined. 3.I.2 PIRPTA Affidavit: A non -foreign affidavit, properly executed, containing such information as is required by internal Revenue Code Section 1445(b)(2) and its regulations. 3.1.3 Affidavit of Title: A Seller's Affidavit of Title in customary form. 3.1.4 Transfer Tax: Completed declarations or statements, executed by or o12 behalf of Seller, in the form prescribed by governmental authorities to be filed in connection with the transfer tax imposed by governmental authority on transfer of title. 3.1.5 Other Documents: All other documents contemplated by this Agreement or reasonably determined by Buyer to be necessary to transfer the Property to Buyer free and clear of all encumbrances. 3.2 Buyer's Closing Documents: On the Closing Date, Buyer will pay to Seller the funds representing the Purchase Price due and payable on Closing. 4. Prorations: Seller and Buyer agree that the Purchase Price reflects any prorations and other allocations of costs regarding this Agreement and that no other credits by Seller will be given, provided that each of the parties will pay its own attorneys' fees. 5. Tide Examination: Title Examination will be conducted as follows: 5.1 Seller's Title Evidence: Buyer may, at its cost, obtain title evidence and/or a commitment for title insurance issued by a title company of its choosing (the "Title Evidence"). 5.2 Buyer's Objections: Buyer may make written objections ("Objections") to the form and/or contents of the Title Evidence. Any matter shown on such Title Evidence and not objected to by Buyer shall be a "Permitted Encumbrance" hereunder. Seller will have seven (7) days after receipt of the Objections to cure the Objections, during which period the Closing will be postponed, if necessary. Seller shall use his best efforts to correct any Objections. To the extent an Objection can be satisfied by the payment of money, Buyer shall have the right to apply a portion of the cash payable to Seller at the Closing to the satisfaction of such Objection, and the amount so applied shall reduce the amount of the Purchase Price payable to Seller at the Closing. If the Objections are not cured within such 7-day period, Buyer will have the option to do any of the following: 5.2.1 Terminate this Agreement. 5.2.2 Withhold from the Purchase Price an amount which, in the reasonable judgment of Buyer, is sufficient to assure cure of the Objections, including interest and penalties. Any amount so withheld will be placed in escrow with Buyer's attorney, pending such cure. If Seller does not cure such Objections within seven (7) days after such escrow is established, Buyer may then cure such Objections and charge the costs against the escrowed amount. 5.2.3 Waive the objections and proceed to close. 6. Due Diligence and Approval Period: The inspection of the Real Property will be conducted as follows% 6.1 Due gence and Approval Period: Buyer's obligations under this Agreement are subject to Buyer's review and approval of the Property, its suitability for Buyer's intended use and the conditions of Closing detailed in Section 3, above. Accordingly, Buyer shall have through the Date of Closing ("Due Diligence Period") within which to determine the feasibility of the Property for Buyer's intended use. During the Due Diligence Period, Buyer may at any time, in its sole and absolute discretion, determine that the Property is not feasible for Buyer's intended use. In such event, Buyer may notify Seller in writing that it does not intend to proceed with this Agreement by simply stating in writing that it is terminating and voiding the Agreement ("Notice to Terminate"). Upon giving Notice to Terminate as a result of the Property not being deemed feasible by Buyer for its intended use on or before the end of the Due Diligence Period, this Agreement will terminate and become null and void and be of no further force and effect, with no costs being assessed against Buyer. 6.2 Records: Seller shall provide to Buyer and Buyer's agents within five (5) days of#er the Effective Date of this Agreement without charge, originals or true copies of the following, if in Seller's possession: title policies, real estate taxes, assessments, environmental reports, and all existing surveys in Seller's possession affecting the Property. 6.3 Survey: Buyer may obtain a survey of the Property at its own costs and Seller shall pernvt Buyer's agents to enter the Subject Property to accomplish the same. 6.4 Costs: Except as otherwise provided herein, Buyer shall pay all costs and expenses of Buyer's investigation and testing of the Properly, shall restore the Property to its condition prior to Buyer's investigation of the Property, and shall hold Seller and the Property harmless from all costs and liabilities to the proportional extent resulting from Buyer's activities. Notwithstanding anything to the contrary in this Agreement, Seller's representations under the following section 6.5 will survive Closing or termination of this Agreement. 6.5 Representations by Seller: Seller hereby represents and warrants to Buyer, individually, as follows: 6.5.1 Seller is the legal title owner of the Property. 6.5.2 Seller has the authority and the legal right to make, deliver and perform this Agreement, and has taken all necessary actions and obtained all required consents and approvals to authorize the execution, delivery and performance of this Agreement. 3 6.5.3 The execution, delivery and performance of this Agreement is not prohibited by any requirement of law or under any contractual obligation of Seller, will not result in a breach or default under any agreement to which Seller is a party or is bound, and will not violate any restriction, court order or agreement to which Seiler is subject. Seller has granted no leases, licenses or other rights to use and occupy the Property, and Seller has no actual knowledge of any persons (other than Seller) in possession or occupancy of the Property. 6.5.5 Seller has received no written notice of any pending or threatened Litigation or proceedings (including eminent domain or similar proceedings), with respect to the use, condition, or operation of the Property. b.5.6 Seller has no lu�owledge of and has received no notice of any material violations of laws, ordinances, regulations or claims with respect to any environmental, building, fire, health, safety or other condition of the Property which have not been heretofore fully disclosed. Seller makes no such representation or warranties regarding Buyer's intended use of the Property. 6.5.7 Seller has na knowledge of the past or present presence in, on or under the Property of any material or substance defined as a "hazardous waste" under RCRA, as a "hazardous substance" under CERCLA, petroleum or asbestos. 6.5.8 During the period from the Execution Date to and including the Closing Date, Seller shall not, without the prior consent of Buyer in each instance, enter into any lease, concession agreement, encumbrance, license agreement or other agreement relating to the Property which will survive Closing. 6.5.9 Prior to Closing, Seller will use reasonable efforts to manage the Property in accordance with Seller's customary practices, except with respect to actions otherwise contemplated by this Agreement. Seller will keep the Property free and clear of all liens, claims and demands, including mechanic's liens, in connection with work performed on the Property or any part thereof and materials provided in connection with such work, where such work was performed or contracted for or such materials were provided or contracted for on or before the Closing Date. 6.5.10 The Subject Property consists of approximately 2 adjacent lots of land and directly abuts one or more public ways or streets. 5.5.11 To Seller's knowledge, the information included in all documents to be delivered to Buyer shall be true, correct and complete in all material respects, and the same shall not omit any material information required to make the submission thereof fair and complete. 6.5.12 To Seller's knowledge there are no claims, causes of action or other litigation or proceedings pending or threatened in respect to the ownership, operation or environmental condition of the Property or any part thereof. 6.5.13 To the best of Seller's knowledge, there is no pending, contemplated., threatened or anticipated (1) condemnation of any part of the Property, (ii) widening, change of grade or limitation on use of streets, roads or highways abutting the Property, (iii) special tax or assessment or other property charge levied or to be levied against the Property, (iv) change in the zoning classification of the Property, or (v) change in the tax assessment of the Property. 6.5.14 To Seller's knowledge, Seller has not violated, with respect to or upon the Property, any applicable environmental law, regulation, ordinance or order of any government entity, including, without limitation, the comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended, the Resource Conservation and Recovery Act of 1976, as amended, the Federal Clean Water Act, as amended, the Federal Clean Air Act, as amended, and any Federal toxic Substances Control Act, as amended, and any regulations promulgated thereunder, or any other federal, state or local laws relating to contamination of or adverse effects on the environment, and, to the best of Seller's knowledge, neither the Property nor any underlying groundwater contains any concentrations of regulated substances hazardous substances, petroleum, hazardous materials, toxic substances, or similar substances, residues, and wastes, including, without limitation, any asbestos (collectively "Hazardous Materials"). Seller has not disposed of, released or spilled Hazardous Materials upon the real estate, caused or suffered any Hazardous Materials to be deposited upon or to migrate onto the Property. To the best of Seller's knowledge Seller represents and warrants to Buyer that no underground storage tanks are currently, located on or underlying the Property. 6.5.1 S To the best of Seller's knowledge, all gas, electricity and telephone/cable utilities adequate for the Seller's use of the Property are supplied directly to the Property by facilities of the public or governmental utilities. Seller makes no representation with respect to the zoning of the Property or the legality of Buyer to use the Property for its intended use. To the extent that Buyer has discovered anything or should have discovered anything during its due diligence for the inspection period, Seller shall not be responsible for such matters and Buyer's only remedy shall be to cancel the Agreement. 6.5.16 Seller has not received any notice from any insurance company, inspector or rating bureau making requirements as a condition to the continuation of insurance on or with respect to the Property. 7. Broker's Commission: Buyer and Seller each represent and warrant that no broker is or was involved in this transaction. Seller and Buyer agree to indemnify and hold each other harmless from all claims, damages, costs or expenses of or for any other such fees or commissions resulting from their actions or agreements regarding the execution or performance of this Agreement, and will pay all costs of defending any action or lawsuit brought to recover any such fees or commissions incurred by the other party, including reasonable attorneys' fees. 8. Survival: All of the terms of this Agreement and warranties and representations herein contained 5 shall survive and be enforceable for a period of one year after the Closing. 9. Notices: Any notice required or permitted hereunder shall be in writing and shall be deemed properly served: (i) on the date delivered if delivered by personal delivery upon an authorized representative of a party hereto; or (ii) upon receipt or rejection by the addressee if mailed by United States registered or certified mail, return receipt requested, postage prepaid; or (iii) on the date sent if transmitted by facsimile with copy followed by mailed notice; or (iv) on the date delivered if deposited cost paid with a nationally recognized, reputable overnight courier, properly addressed as follows, If to Buyer: City of McHenry Attention: City Administrator 3 3 3 S. Green Street McHenry, IL 60050 If to Seller: Casey J. Johnson P.O. Box 11 Colstrip, MT 59323 Any party may change its address for the service of notice by giving notice of such change five (5) days prior to the effective date of such change. Notice to the party's attorney in accordance with this Section 9 shall be deemed adequate notice to the party. 10. Miscellaneous: The paragraph headings or captions appearing in this Agreement are far convenience only, are not a part of this Agreement, and are not to be considered in interpreting this Agreement. This written Agreement constitutes the complete agreement between the parties and supersedes any prior oral or written agreements between the parties regarding the Subject Property. This Agreement can only be modified by a writing signed by all parties. This Agreement binds and benefits the parties and their successors and assigns. This Agreement has been made under the laws of the State of Illinois, and such laws will control its interpretation. 11. Remedies: If there is a material default by the Buyer under the Agreement, and such default continues for more than five (5) business days after Seller provides Buyer with written notice of default, Seller may terminate this Agreement by giving written notice of termination to the Buyer. If there is a material default by the Seller under the Agreement, and such default continues for more than five (5) business days after Buyer provides Seller written notice of default, Buyer may terminate this Agreement by giving written notice of termination to the Seller. Buyer shall also have the option to enforce specific performance and obtain injunctive relief against the Seller to enforce the terms of the Agreement. Seller and Buyer hereby submit to the jurisdiction of McHenry County, Illinois and the Federal Circuit Courts of the Northern District of Illinois, as applicable. 12. No Partnership, Third Person: It is not intended by this Agreement to, and nothing contained in this Agreement shall, create any partnership, joint venture or other business arrangement between Seller and Buyer. No term or provision of this Agreement is intended to benefit any person or entity not a party hereto (including, without limitation, any broker), and no such other person or entity shall have any right or cause of action hereunder. 13. l�ro Waiver: No failure by Seller or Buyer to insist upon the strict performance of any covenant, duty, agreement or condition of this Agreement, or to exercise any right or remedy upon a breach thereof, will constitute a waiver thereof. Any party hereto, by notice to the other party, may, but will be under no obligation to, waive any of its rights or any conditions to its obligations hereunder, or any duty, obligation or covenant of the other party hereto. No waiver will affect or alter any other covenant, agreement, term or condition of this Agreement, all of which shall continue iij full force and effect. 14. Time of Pei Formanee: 'Time is of the essence of this Agreement. If the date for performance of any obligation hereunder or the last day of any time period provided for herein shall fall on a Saturday, Sunday or legal holiday, then said date for performance or. time period shall expire on the next business day which is not a Saturday, Sunday or legal holiday. Except as may otherwise be set forth herein, any performance provided for herein shall be timely made and completed if made and completed no later than 5:00 P.M. (Central Standard T Ime) on the day for performance. 1 �. Counter -Part Si Matures: This Agreement may be executed in any number ofcouttter-parts, each of which counter -parts, when executed and delivered, shall be deemed to be an original and all of which counter -parts, taken together, shall constitute one in the same instrument. Seller and Buyer have executed this Agreement effective as afthe date first written above. i3TTV7701;i: City oi'McFlenry Wayne Jett, tVlayor SEI,I,EII?: Z;1lvf�t c FlenryCiiyoiU ohnsonCaseylPurchaseAgreernent.Caseytohnson.docx 7 LEGAL DESCRIPTION ^� Office of Finance & Accounting _ ;AVft Carolyn Lynch, Director McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2100 McHenr Fax: (815) 363-2119 www.ci.mchenry.il.us CONSENT AGENDA SUPPLEMENT DATE: April 30, 2018 TO: Mayor and City Council FROM: Carolyn Lynch, Finance Director RE: Local Debt Recovery Program (LDRP) ATTACHMENTS: Proposed Resolution and Intergovernmental Agreement SUMMARY: The purpose of this agenda item is for Council to approve the Intergovernmental Agreement with the Illinois Office of the Comptroller in order to gain access to the Comptroller's Local Debt Recovery Program. BACKGROUND: The Local Debt Recovery Program was signed into law in December of 2011 and allows the Illinois Office of the Comptroller to enter into Intergovernmental Agreements (IGA) with municipalities as well as other governmental agencies to collect unpaid debt. The way the program works is once the IGA is signed, unpaid debt records are sent to the Comptroller's Ace where they are matched with data in the Comptroller's system. This data is checked before the Comptroller issues a state check for tax refunds, lottery payouts, commercial payments, or payroll checks. If there is an amount due to a governmental agency that amount is deducted from the debtor's check and set aside in a separate bank account for sixty days. The debtor has sixty days to protest this offset. If there are no protests or the protest is denied, the money is directly deposited into the local agencies bank account after the sixty days has passed. ANALYSIS: The City currently works with a collections agency to collect unpaid debt and that will remain unchanged. Entering into the LDRP will give the City another avenue to collect monies in hopes to clear up the increasing list of uncollectible debts. There is no charge to participate in the Local Debt Recovery Program; the state charges their fee directly to the debtor. RECOMMENDATION: If Council concurs, then it is recommended a motion be made to adopt the attached Ordinance authorizing the Mayor's execution of the an Intergovernmental Agreement with the Illinois Office of the Comptroller regarding access to the Comptroller's Local Debt Recovery Program. RESOLUTION NO. R-18-010 A RESOLUTION AUTHORIZING THE MAYOR'S EXECUTION OF AN INTERGOVERNMENTAL AGREEMENT BY AND BETWEEN THE ILLINOIS OFFICE OF THE COMPTROLLER AND THE CITY OF MCHENRY REGARDING ACCESS TO THE COMPTROLLER'S LOCAL DEBT RECOVERY PROGRAM. WHEREAS, the City of McHenry, McHenry County, Illinois, is a home rule municipality as contemplated under Article VII, Section 6, of the Constitution of the State of Illinois, and the passage of this Resolution constitutes an exercise of the City's home rule powers and functions as granted in the Constitution of the State of Illinois; and WHEREAS, the City of McHenry, in conjunction with the Office of the Comptroller for the State of Illinois, has entered into an agreement regarding access to the Comptroller's Local Debt Recovery Program; and WHEREAS, both the State of Illinois and the City of McHenry have a responsibility to collect debts owed to its respective public bodies; and WHEREAS, the Mayor is hereby authorized to affix his signature to said agreement for the uses and purposes set forth. THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF MCHENRY, MCHENRY COUNTY, ILLINOIS that the Mayor is hereby authorized to sign the said agreement on behalf of the City of McHenry. APPROVED and ADOPTED this 30th day of April 2018. Voting Aye: Voting Nay: Absent: Mayor ATTEST: Deputy City Clerk INTERGOVERNMENTAL AGREEMENT BY AND BETWEEN THE ILLINOIS OFFICE OF THE COMPTROLLER AND THE CITY OF MCHENRY REGARDING ACCESS TO THE COMPTROLLER'S LOCAL DEBT RECOVERY PROGRAM This Intergovernmental Agreement ("the Agreement") is hereby made and entered into as of the date of execution by and between the Illinois Office of the Comptroller (hereinafter "IOC") and the City of Mchenry (hereinafter "the local unit"), in order to provide the named local unit access to the Local Debt Recovery Program for purposes of collecting both tax and nontax debts owed to the named local unit. Each of the parties hereto is a "public agency" as defined in Section 2 of the Intergovernmental Cooperation Act [5 ILCS 220/2]. WHEREAS, both the State of Illinois and the local unit have a responsibility to collect debts owed to its respective public bodies; WHEREAS, IOC operates a system, known as the Comptroller's Offset System (hereinafter, "the System"), for collection of debt owed the State by persons receiving payments from the State; WHEREAS, the Illinois General Assembly specifically provided for the ability of the local unit to utilize the System when it amended Section 10.05 and added Section 10.05d to the State Comptroller Act [P.A. 97-632; 15 ILCS 405/10.05 and 10.05d]; WHEREAS, IOC and the local unit are empowered under the Illinois Constitution [Ill. Const., Art. VII, Sec. 10], Section 3 of the Intergovernmental Cooperation Act [5 ILCS 220/3], and Section 10.05d of the State Comptroller Act (hereinafter, "the Act") [15 ILCS 405/10.05d] to contract with each other in any manner not prohibited by law; NOW THEREFORE, in consideration of the foregoing recitals and the mutual covenantSal-1 promises contained herein, the sufficiency of which is hereby acknowledged, the parties do hereby agree as follows. Article I —Purpose The purpose of the Agreement between the IOC and the local unit is to establish the terms and conditions for the offset of the State's tax and nontax payments in order to collect tax and nontax debts owed to the local unit. Article II —Authority The authority for State payment offset is granted under Section 10.05 of the Act [15 ILCS 405/10.05] and the authority for entering into this Agreement is granted under Section 10.05d of the Act [15 ILCS 405/10.05d], Section 3 of the Intergovernmental Cooperation Act [5 ILCS 220/3], and Article VII of the Illinois Constitution [Ill. Const., Art. VII, Sec. 10] . 1 Article III — State Payment Offset Requirements and Operations A. Legal Requirements. The offset of State payments shall be conducted pursuant to the authority granted in Section 10.05 and 10.05d of the Act [15 ILCS 405/10005 and 10.05d] and the requirements set forth in this Agreement. 1. Definition of "Debt" (a) For purposes of this Agreement, debt shall mean any monies owed to the local unit which is less than 7 years past the date of final determination, as confirmed by the local unit in Article III(A)(2)(a)(viii) of this Agreement. (b) No debt which is more than 7 years past the date of final determination may be placed or may remain on the System. (c) No debt which has resulted in the issuance of a warrant for the arrest of the debtor may be placed or remain on the System so long as that warrant for arrest is active. (d) No debt which has resulted in the attachment of a lien on any personal property or other personal interest of the debtor shall be placed or remain on the System so long as that lien is attached to that property or interest. 2. Due Process &Notification (a) Before submitting a debt to IOC for State payment offset, the local unit must comply with all of the notification requirements of this Agreement. For purposes of this Agreement, notification of an account or claim eligible to be offset shall occur when the local unit submits to IOC the following information: (i) the name and address Al another unique identifier of the person against whom the claim exists; the amount of the claim then due and payable to the local unit; i) the reason why there is an amount due to the local unit (i.e., tax liability, overpayment, etc.); (iv) the time period to which the claim is attributable; (v) the local entity to which the debt is owed; (vi) a description of the type of notification has been given to the person against whom the claim exists and the type of opportunity to be heard afforded to such a person; 2 (vit) a statement as to the outcome of any hearings or other proceedings held to establish the debt, or a statement that no hearing was requested; and, (vit ) the date of final determination of the debt. (b) IOC will not process a claim under the Agreement until notification has been received from the local unit that the debt has been established through notice and opportunity to be heard. (c) The local unit is required to provide the debtor with information about a procedure to challenge the existence, amount, and current collectability of the debt prior to the submission of a claim to IOC for entry into the System. The decision resulting from the utilization of this procedure must be reviewable. 3. Certification (a) The chief officer of the local unit shall, at the time the debt is referred, certify that the debt is past due and legally enforceable in the amount stated, and that there is no legal bar to collection by State payment offset. (b) Only debts finally determined as currently due and payable to the local unit may be certified to IOC as a claim for offset. (c) The chief officer of the local unit may delegate to a responsible person or persons the authority to execute the statement of the claim required by the Agreement. (d) This delegation of authority shall be made on either electronic or paper based forms provided by the Comptroller. (e) For purposes of this Agreement, "chief officer of the local unit" means the Finance Director. (f) The chief officer hereby acknowledges and agrees that he/she will ensure that the login information into any electronic system provided by the Office of the Comptroller will remain confidential, that only active employees of the local unit may be granted the delegation of authority provided for in Part (c) of this Subsection, and that under no circumstances is a vendor, agent, consultant, collector or any other third -party representative of the local unit authorized to submit or certify debt to IOC on behalf of the local unit. 4. Notification of Change in Status 3 (a) The chief officer must notify IOC as soon as possible, but in no case later than 30 days, after receiving notice of a change in the status of an offset claim. (b) A change in status may include, but is not limited to, payments received other than through a successful offset, the filing of a bankruptcy petition, the death of the debtor, or the expiration of the ability for the debt to remain on the System, as provided for in Article III(A)(1)(b) of this Agreement. 5. Notification of Change in the Chief Officer (a) The local unit shall be responsible for notifying IOC as soon as is practicable in the event the chief officer named in the Agreement is no longer an officer or employee of the local unit or is otherwise unable to perform the certification process provided for in Subsection 3 of this Section. (b) Upon obtaining knowledge that the chief officer is no longer an officer or employee of the local unit or is otherwise unable to perform the certification process provided for in Subsection 3 of this Section, whether through notification by the local unit or by any other means, IOC shall suspend the authority for the chief officer and any of his or her designees to certify debt to IOC. (c) The local unit shall be responsible for updating records with IOC in the event of a change in the chief officer in order to reestablish certification authority and resume collection by State payment offset. B. Operational Requirements 1. Technical Requirements. IOC agrees to work with the local unit to facilitate information and data procedures as provided for in this Agreement. The local unit agrees to adhere to the standards and practices of IOC when transmitting and receiving data. The chief officer shall assume the responsibility of providing updates to the debtor records on file with IOC in order to ensure an equitable resolution of the debts owed to the local unit. 2. Fee. A fee may be charged to the debtor and shall be no more than $20 per payment transaction. The fee will be deducted from the payment to be offset prior to issuance to the local unit. 3. Offset Notices. IOC will send offset notices to the debtor upon processing a claim under the Act and this Agreement. The notice will state that a request has been made to make an offset against a payment due to the debtor, identify the local unit as the entity submitting the request, provide the debtor with a phone number made available pursuant to Article III 4 (B)(6) of this Agreement, and inform the debtor that they may formally protest the offset within sixty (60) days of the written notice. 4. IOC Protest Process. If a protest is received, IOC will determine the amount due and payable to the local unit. This determination will be made by a Hearing Officer and will be made in light of all information relating to the transaction in the possession of IOC and any other information IOC may request and obtain from the local unit and the debtor subject to the offset. If IOC requests information from the local unit relating to the offset, the local unit will respond within sixty (60) days of IOC's request. IOC may grant the local unit an additional sixty (60) day extension for time to respond. The local unit shall complete an adjudication review with IOC in order to evaluate the local unit and the protest process prior to the offset of any State payments. 5. IOC Hearing Officer. The local unit hereby agrees to provide the Hearing Officer with any information requested in an efficient and timely manner in order to facilitate the prompt resolution to protests filed as a result of this Agreement. For purposes of this Agreement, any decision rendered by the Hearing Officer shall be binding on the local unit and shall be the final determination on the matter. The Hearing Officer may continue the review of a protest at his/her discretion in order to assure an equitable resolution. 6. Local Unit Call Center. The local unit hereby agrees to provide a working phone number which IOC will furnish to persons offset under this Agreement. The local unit shall ensure that the phone number is properly staffed in order to provide information about the debt the local unit is offsetting under this Agreement. The phone number for purposes of this Section and the Agreement is: 815/363-2100. 7. Debt Priorities. If a debtor has more than one local unit debt, the debt with the oldest date ofentry on the System shall be offset first. 8. Transfer of Pam Transfer of payment by IOC to the local unit shall be made in the form of electronic funds transfer (EFT). Nothing in this section or this Agreement shall limit the ability of either party to modify this Agreement at a later date in order to provide for an alternative method(s) of payment transfer. 9. IOC Refunds. If IOC determines that a payment is erroneous or otherwise not due to the local unit, IOC will process a refund of the offset, and refund the amount offset to the debtor. In the event the refund results in only a partial refund to the debtor, IOC will retain the fee referenced in Article III, Paragraph B, Section 2 above. The fee will only be refunded to the debtor in the event of a full refund of the offset amount. 10. Local Unit Refunds. The local unit is responsible for refunding monies to the debtor, including any and all administrative fees collected by IOC, if 5 an offset occurred due to inaccurate debt information or over collection, and the local unit has already received payment from IOC. IOC will only refund monies in the event that a payment has not yet been made to the local unit. 11. Third -Party Matching Services. IOC may utilize the services of a third - party vendor to assist in the identification of individual debtors. The local unit shall review and add any valid matches which result from the assistance of the third -party vendor within 30 days of receipt of the updated records. If the local unit is unable to add the valid matches within 30 days of receipt of the updated records, the chief officer must notify IOC as to the reason the local unit is not able to add the records in addition to a time frame for adding the records in the future. Article IV —Permissible Use of Information IOC acknowledges that the local unit is providing sensitive information about local debts for the purpose of conducting offsets under the Agreement. As such, IOC will use the information solely in connection with the Local Debt Recovery Program. IOC shall safeguard the local information in the same manner as it protects State debt information. The local unit acknowledges that IOC is providing sensitive information about State payments for the purpose of conducting offsets under the Agreement. As such, the local unit will use the information solely in connection with the Local Debt Recovery Program. The local unit shall safeguard State information in the same manner as it protects local debt information. The parties may use information in any litigation involving the parties, when such information is relevant to the litigation. Article V —Term of the Agreement and Modifications The Agreement becomes effective as of the Effective Date and shall remain in effect until it is terminated by one of the parties. Either party may terminate this Agreement by giving the other party written notice at least thirty (30) days prior to the effective date of the termination. Any modifications to the Agreement shall be in writing and signed by both parties. Article VI — No Liability to Other Parties Except for the fees described in Article III, paragraph B, Section 2 above, each party shall be responsible for its own costs incurred in connection with the Agreement. Each party shall be responsible for resolving and reconciling its own errors, but shall not be liable to any other parties for damages of any kind as a result of errors. Each party shall be liable for the acts and omissions of its own employees and agents. The Agreement does not confer any rights or benefits on any third party. Article VII —Issue Resolution The parties acknowledge that IOC is ultimately responsible for the development, design and operation of the System. Subject to that understanding, the parties agree to work cooperatively to resolve any matters that arise during the development, design and implementation of the program. If an issue cannot be resolved informally by mutual agreement of staff personnel, then the parties agree to elevate the issue to a senior level manager for resolution of the issue. For purposes of the Agreement, the "senior level managers" are: 1. IOC: Cesar Orozco, Director —Department of Government and Community Affairs 2. Local Unit: Carolyn Lynch, Finance Director -City of Mchenry Article VIII —Contacts The points of contacts for this Agreement are: IOC: John Gay, General Counsel Illinois Office of the Comptroller 100 W. Randolph St, Suite 15-500 Chicago, Illinois 60601 Phone: 312/814-5783 Fax: 312/814-0957 E-mail: John.Gay@iIlinoiscomptroller.gov Local Unit: David McArdle, Attorney ZukoWskl, Rogers, Flood & McArdle 50 Virginia St Crystal Lake, Il 60014 Phone: 815/459-2050 Email: dmcardle@zrfmlaw.com Article IX —Acceptance of Terms and Commitment The signing of this document by authorized officials forms a binding commitment between IOC and the City of Mchenry. The parties are obligated to perform in accordance with the terms and conditions of this document, any properly executed modification, addition, or amendment thereto, any attachment, appendix, addendum, or supplemental thereto, and any documents and requirements incorporated by reference. By their signing, the signatories represent and certify that they possess the authority to bind their respective organizations to the terms of this document, and hereby do so. [Signature Page Follows] 7 IN WITNESS WHEREOF, the Illinois Office of the Comptroller and the City of Mchenry by the following officials sign their names to enter into this agreement. ILLINOIS OFFICE OF THE COMPTROLLER By: Name: Susana A. Mendoza Title: Comptroller CITY OF MCHENRY By: Name: Wayne Jett Title: Mayor Date: Date: MCHenryX� Bill Hobson, Director of Parks and Recreation McHenry Recreation Center 3636 Municipal Drive McHenry, Illinois 60050 Phone: (815) 363-2160 Fax: (815) 363-3119 www.ci.mchenry.il.us/park recreation CONSENT AGENDA SUPPLEMENT DATE: April 30, 2018 T0: Mayor and City Council FROM: Bill Hobson, Director of Parks and Recreation RE: McHenry High School Graduation Ceremony ATT: Requested via Email Agenda Item Summarye Request for Traffic Control. Background: East Campus High School Associate Principal Kyle Hobson has requested the Council's approval to post two Police Officers on Kane Avenue between Green Street and Center Street for traffic control to accommodate the 2018 High School Graduation Ceremony. The event will take place outdoors in McCracken Field from 5:00 PM to approximately 8:30 PM on Tuesday, May 22nd. Analysis: The Police Department has been advised of the request and has no concerns about providing traffic control for this event. In the past, the Council has approved similar requests for this event. Recommendation: If Council concurs then it is recommended a motion is considered to approve the request as presented. The City of McHenry is dedicated to providing its citizens, busiiresses, and visitors with the highest quality of programs and services in acustomer-oriented, efficient, and fiscally responsible manner. Debra Meadows From: Marci Geraghty Sent: Tuesday, April 24, 2018 10:45 AM To: Debra Meadows Subject: FW: Graduation - East Campus 5/22 Attachments: MCH HS GRADUATION.doc Marci Geraghty, Executive Assistant/ Deputy Clerk City of McHenry 333 S Green Street McHenry, IL 60050 815-363-2108 From: Bill Hobson Sent: Monday, April 23, 2018 2:50 PM To: Marci Geraghty <mgeraghty@ci.mchenry.il.us> Subject: FW: Graduation - East Campus 5/22 Can you put this consent item together forme please? We have done this the last couple of years. Thank you! O From: Hobson, Kyle <hobsonkyle@dist156.or�> Sent: Monday, April 23, 2018 10:21 AM To: Nicholas R. Clesen <nclesen@ci.mchenry.il.us>; Bill Hobson <bhobson@ci.mchenry.il.us> Cc: Jason Ducak <ducakiason@dist156.org> Subject: Graduation - East Campus 5/22 On May 22, we will be holding outdoor graduation at McCracken Field. Due to this event, we are requesting that SRO Ducak and another officer be present from approximately 5pm - 8:30pm. We would also like to request that Kane St. be closed from Green to Center from 5pm - 8pm. In addition, can No Parking signs be put up along Kane as this is our primary parking for handicap. We have also planned that SRO Ducak and the additional officer will be stationed at Green and John after the ceremony in order to control traffic while pedestrians are returning to the school. Thank you for your help with this matter. Please let me know if you have any questions. Sincerely, Mrs. Kyle Hobson Associate Principal McHenry East High School (815)385-1145 1 'A Wayne Jett Jr., Mayor r+ v McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2108 Fax: (815) 363-2119 V1c Hc,nry www.ci.mchenry.il.us CONSENT AGENDA To: McHenry City Council From: Wayne Jett, Jr., Mayor For: April 30, 2018 Re: Appointment to Landmark Commission ATT: Application As part of the April 30, 2018 Consent Agenda, I will be asking for a motion to approve the appointment of Nicholas Bennett to the Landmark Commission. Based on the recommendation from Landmark Commission Chairman Patrick Wirtz, Mr. Bennett will be filling a term vacated by the resignation of Donald Schmidt that expires on April 30, 2020. Please do not hesitate to contact me prior to the meeting if you have any comments or concerns regarding this appointment. If Council concurs, then it is recommendation a motion be made to appoint Nicholas Bennett to the McHenry Landmark Commission to the term expiring April 309 20180 The Ciq� of McHenry is dedicated to providing its citizens, businesses, and visitors with the /tighest quality of programs and services in acustomer-oriented, efficient, and fiscally responsible manner. City of McHenry Application for Committee, Commission or Board Mail or Deliver to: Office of the Mayor, City of McHenry, 333 South Green St, McHenry IL 60050 Application for Appointment to C c� rVI 1. Name: IV JC kd's d5 i_ G%eli�v Address: �% Phone: Home_ & Work Email: V/ t'c'lv). Vu`yvuG Iq"ZV'V15 L�Smc � City Resident Since: h ; ��'�' �► 2. In this Section please use P for Presently; F for Formerly: Elected or Appointed Positions Held: roll (list offices held): Formal Education: Spouse: _Committee/ ommissio oard. 1A 3. Do you or any of your close family or business connections own, hold stock in, serve as director of or work for any business which provides products or services to: City of McHenry ?V 0 Other Government Entity (V g? If yes, please identify and explain: 4. Do you or any of your close family or business connections serve on any Committee, Commission, Board or otherwise with an organization or agency which has, or may ave, any business or personal transactions with the Committee, which you are making application? If yes, please identify and explain: Commission or Board to 5. Are you generally familiar with the functions and workings of the Committee/CommissionBoard to which you are making Have you attended meetings of this body? y(f What promted you to apply for consideration of appointment to this position?� What studies, responsibilities, accomplishments, publications or communi projects have you participated in or initiated which you feel may qualify you for this position? ee ( �-i'►/W_ ` %)1/t' " Other co nts: Other information you would like to include may be attached to this application.: Signed: 1 "� °`V �� " 1� Date: Date Received: t ��Z Date Considered: Revised: 1/06/2015 Action: COMMITTEE OF THE WHOLE April 112018 Mayor Wayne Jett called the April 11, 2018 meeting of the Committee of the Whole to order at 6:30 pm in the Municipal Center Classroom, 333 S. Green Street, McHenry, IL. In attendance were the following Councilmembers: Mihevc, Glab, Schaefer, Condon, Devine, Curry, and Santi. Also in attendance: Director of Parks and Recreation Hobson, Director of Economic Development Martin, Deputy Chief of Walsh, Director of Public Works Schmitt, Director of Community Development Polerecky, Director of Finance Lynch, IT Manager Larson, HR Manager Campanella, City Attorney McArdle, and Deputy Clerk Geraghty. PUBLIC COMMENT None. EXECUTIVE SESSION Motion by Alderwoman Condon, second by Alderman Santi to enter into Executive Session for the purchase or lease of real property for the use of the public body, 5 ILCS 120/2(c)(5) and Probable Litigation (5 ILCS 120/2(c)(11). Voting Aye: Condon, Santi, Glab, Schaefer, Devine, Curry, Mihevc Voting Nay: None. Absent: None. Motion Carried, The Council entered Executive Session at 6:35 PM and reconvened Open Session at 7:20 PM. DISCUSSION ONLY ITEMS A. Review of Proposed Fiscal Year 2018/19 Annual Operating Budget. Mayor Jett asked City Administrator Morefield to present this item to the Council. City Administrator Morefield presented information pertaining to the FY 2018/19 Annual Operating Budget. Total Revenues Proposed was $22,309,740 less total proposed expenditures($21,724,519), left a balance of $39,065. Alderman Glab inquired about the video gaming revenue received in 2017. Director Lynch reported $375,000 was budget and today, $429,570 is anticipated. For FY 18/19, staff estimated $430,000 in revenue from gaming. Committee of the Whole Meeting Page 2 April 11, 2018 Personnel Expenditures for FY 18/19 were reviewed. City Administrator Morefield noted personnel costs are 78% of expenditures, proposed at $16,890,965 in FY 18/19 and will increase from last year by 4307,428 or 1.85%. Since the March 26 Finance and Personnel Meeting, additional personnel savings due to retirements and job consolidations is approximately $128,000 The Council was advised that the Code Enforcement position will be assumed by the Plans Examiner for a savings of $128,000. During peak month, Plans Examiner duties will be shared with other department personnel. Alderman Mihevc asked why the Contractual account decreased and City Administrator Morefield stated this was due to reduced legal expenses for traffic. Overview of General Fund Operating Budgets Special Revenue Funds Since the March 26, 2018 Finance and Personnel Committee meeting, additional Personnel Savings due to retirements and job consolidations totals $267,065, less Local 150 Insurance Adjustment: ($19,000) equals $248,065 in Revenues/Expenditures. Alderwoman Condon suggested the addition of part-time communication specialists to manage social media, city website, economic development matters, and all public relations communications for the city outside the Police Department. This position was proposed as a contractual commitment paid fully or partially through the Tourism Fund. Approximately $175,000 per year is generated in the Tourism Fund. This position was identified as part of the staffing needs analysis conducted last year. Alderman Curry asked about the noted transfer to the General Fund from the Tourism Fund. Director Lynch said the transfers pay for special events. Alderman Glab suggested the proposed position be added to a future agenda as a discussion item. Capital Projects &Debt Service Fund Budgets Responding to a question from Alderman Curry, City Administrator stated Special Service Area #4 expires in 2024. Enterprise Funds City Administrator Morefield informed the Council that preliminarily, staff does not anticipate recommending a change to the water/sewer rate in FY 18/19. Internal Service Funds Committee of the Whole Meeting Page 3 April 11, 2018 No questions or comments were made regarding the presentation of these funds. Fiduciary Funds No questions or comments were made regarding the presentation of these funds. Outstandine Items of Bud�etary Impact Compensation Study 1. Implementation of revised wage ranges based on study results. 2. Adjustment of wages for positions that fall below revised new ranges. City Administrator Morefield stated to date, what has been discussed is bringing salaries up to the minimum range. There are currently 13 positions that would be affected by the proposed salary ranges. The overall financial impact to do this is estimated at $91,000 - $75,000 from General Fund - $15,629 from Recreation Center Fund, which includes IMRF and FICA. Alderman Curry noted the amounts were different then what was previously presented to the Finance and Personnel Committee and, he asked if that was due to the inclusion of IMRF and FICA. City Administrator answered yes this was added at Director Lynch's suggestion. Alderwoman Condon asked if these positions were included in the proposed budget and City Administrator Morefield answered no. Alderman Curry stated his support for the new salary ranges. Alderman Santi asked that the changes in the 13 positions be brought before the full Council. He also asked if the increases for the 13 positions were included in the proposed budget and City Administrator Morefield answered no. Alderman Curry stated a budget amendment would be required if the Council chooses to approve the new salary ranges. Regarding the Finance Committee's position on the compensation study, Alderman Curry informed the Council that the Finance and Personnel Committee agreed that the salary ranges should be adjusted however there were some questions on the details of the study. Alderman Curry suggested another meeting of the committee might need to be scheduled to review the study. Committee of the Whole Meeting Page 4 April 11, 2018 Alderman Santi noted as previously stated, a budget amendment could be authorized should the Council accept the plan. City Administrator Morefield stated as part of last year's staffing needs analysis positions were identified as needed. New Position Requests 1. City Planner - $100,166 2. Parks Maintenance Worker - $78,623 3. Human Resources Assistant - $74,694 The City Planner was a full time position at one time that was eliminated when development slowed due to economic challenges. This position would report to Director Polerecky, Director Hobson was asked to explain the request for an additional Park Maintenance Worker. The department is down two fulltime positions. In 2005, there were eight employees, six maintenance workers and two supervisors; currently there are six employees, two supervisors, and four maintenance workers with the added responsibility of downtown and Riverwalk maintenance. City Administrator Morefield reported that with the addition of Recreation Center part time staff, nearly 300 employees require human resources services with the exception of payroll, which is handled in the Finance Department. Mayor Jett announced that he and staff are always cognizant of saving money and he would not be in favor of adding positions that were not needed. Operations are being streamlined as in Community Development and moving locations to streamline operations in the city. The City Planner position is needed. The Economic Development Director needs to focus on new business and development. A discussion ensued on the adoption of an ordinance that would regulate vacant buildings. Alderman Glab asked what percent of the city budget was for salaries and benefits and City Administrator Morefield answered 78%. Alderman Glab suggested the city bring in more revenue before adding additional employees. Alderman Condon noted that the addition of a City Planner in combination with the Economic Development Director would bring in more revenue. Alderman Santi asked how the Mayor's workload would be affected by the addition of the city planner and Mayor Jett answered it would most likely not change. Committee of the Whole Meeting Page 5 April 11, 2018 Alderman Schaefer asked if the city planner would handle all Planning and Zoning matters and City Administrator Martin answered yes. Alderman Schaefer asked if currently Director Martin handles planning and zoning matters alone and City Administrator Morefield answered with assistance from Economic Development Coordinator Wolf and Economic Development Administrative Assistant Conaway. Alderman Curry asked whom would this positon report to and City Administrator answered Director Polerecky. Alderman Curry noted the budget was revised by approximately $128,000, so if we added the city planner we would be back to where the budget was originally proposed. City Administrator announced the budget would be readjusted based on the information provided at the meeting and presented to the Council for adoption at the April 30th annual meeting. Mayor Jett thanked staff for their work in preparing the budget. STAFF REPORTS None. MAYOR AND CITY COUNCIL COMMENTS Mayor Jett announced an Honorary Street Ceremony was held earlier today dedicating the corner of Park and Pearl as Honorary Susan E. Low Way. Mayor Jett asked the Council to send him an email on their thoughts and/or concerns about the addition of the three proposed position discussed this evening. ADJOURNMENT Motion by Alderman Schaefer, second by Alderman Santi to adjourn the meeting. Voting Aye: Schaefer, Santi, Mihevc, Glab, Devine, Curry, Condon Voting Nay: None Absent: None. Motion Carried. The meeting adjourned at 7:20 PM. Mayor Deputy City Clerk AS NEEDED CHECKS COUNCIL MEETING 4/30/18 100 100-43-5320 A7&T 414.84 03/02/2018 100 10045-5320 AT&T 355.13 03/02/2018 100 100-01-5430 BANKCARD PROCESSING CENTER 430.00 03/02/2018 100 10046-6110 BANKCARD PROCESSING CENTER 16.09 03/02/2018 100 10046-6920 BANKCARD PROCESSING CENTER 19.75 03/02/2018 100 100-22-5430 CENTEGRA MCHENRY EMS 17.00 03/02/2018 100 100-23-5430 CENTEGRA MCHENRY EMS 34.00 03/02/2018 100 100-01-5510 COMED 125A9 03/02/2018 100 100-33-5520 COMED 33.53 03/02/2018 100 100-33-5520 COMED 541.31 03/02/2018 100 10045-5510 COMED 50.61 03/02/2018 100 10047-5110 FAIRBAIRN, LARRY 100.00 03/02/2018 100 10047-5110 HOT SHOTS SPORTS 294.00 03/02/2018 100 10047-5110 HOT SHOTS SPORTS 294.00 03/02/2018 100 10045-5110 METRO DOOR AND DOCK INC 735.45 03/02/2018 100 100-02-5410 MUNICIPAL CLERKS OF LAKE COUNTY 11.00 03/02/2018 100 100-01-5310 PURCHASE POWER 117.36 03/02/2018 100 100-02-5310 PURCHASE POWER 17.22 03/02/2018 100 100-04-5310 PURCHASE POWER 25.32 03/02/2018 100 100-22-5310 PURCHASE POWER 117.47 03/02/2018 100 100-30-5310 PURCHASE POWER 69.63 03/02/2018 100 10041-5310 PURCHASE POWER 180.20 03/02/2018 100 100-41-5310 PURCHASE'POWER 162.60 03/02/2018 100 100-01-5330 SHAW MEDIA 112.50 03/02/2018 100 100-22-5420 HILTON GARDEN INN SPRINGFIELD 158.20 03/02/2018 100 100-01-8100 HERITAGE TITLE COMPANY 2563.00 03/07/2018 100 100-01-6940 MCHENRY COUNTY RECORDER OF DEEDS 50.00 03/07/2018 100 100-01-8100 TANNEBAUM, RICHARD 168100,00 03/07/2018 100 1 00-01 -51 10 VANDERSTAPPEN SURVEYING & ENGINEERING 2600.00 03/07/2018 100 100-01-5450 BANKCARD PROCESSING CENTER 45.00 03/12/2018 100 100-01-6940 BANKCARD PROCESSING CENTER 65.71 03/12/2018 100 100-22-5420 BANKCARD PROCESSING CENTER 156.30 03/12/2018 100 100-22-6210 BANKCARD PROCESSING CENTER 328.30 03/12/2018 100 100-23-6110 BANKCARD PROCESSING CENTER 1069.20 03/12/2018 100 100-33-6115 BANKCARD PROCESSING CENTER 360.92 03/12/2018 100 10041-6270 BANKCARD PROCESSING CENTER 695.00 03/12/2018 100 10046-6110 BANKCARD PROCESSING CENTER 9.54 03/12/2018 100 100-01-6110 HOME DEPOT CREDIT SERVICES 219.68 03/12/2018 100 1 00-33-61 10 HOME DEPOT CREDIT SERVICES 332.91 03/12/2018 100 100-33-6115 HOME DEPOT CREDIT SERVICES 2791.34 03/12/2018 100 10041-6110 HOME DEPOT CREDIT SERVICES 189.51 03/12/2018 100 10045-6110 HOME DEPOT CREDIT SERVICES 1578.20 03/12/2018 100 100-22-5410 MCHENRY COUNTY JUVENILE OFFICERS ASSOC 20.00 03/12/2018 100 100-03-5430 NWBOCA 30.00 03/12/2018 100 10041-6110 ARTISTIC EMBROIDERY CREATIONS 505.00 03/15/2018 100 100-33-5520 CONSTELLATION NEWENERGY INC 186.98 03/15/2018 100 10044-5510 CONSTELLATION NEWENERGY INC 32,96 03/15/2018 100 100-33-5430 ILLINOIS DEPT OF AGRICULTURE 195.00 03/15/2018 100 1 00-33-61 10 SHAW MEDIA 215.92 03/15/2018 100 100-47-5330 SHAW MEDIA 596.00 03/15/2018 100 10045-6110 STO-COTE PRODUCTS INC/NICERINK 3209.00 03/15/2018 100 100-334510 CINTAS CORPORATION LOC 355 55170 03/16/2018 100 1 00-33-61 10 CINTAS CORPORATION LOC 355 324.96 03/16/2018 100 100-22-5370 CPS 388.51 03/16/2018 100 100-33-5370 ED'S AUTOMOTIVE/JIM'S MUFFLER SHOP 101.00 03/16/2018 100 100-33-5370 MCCANN INDUSTRIES INC 49.40 03/16/2018 AS NEEDED CHECKS COUNCIL MEETING 4/30/18 100 100-33-5370 MCCANN INDUSTRIES INC 1415.00 03/16/2018 100 100-33-5370 MCCANN INDUSTRIES INC 9.15 03/16/2018 100 100-33-5370 MCCANN INDUSTRIES INC 10.80 03/16/2018 100 100-33-5370 MCCANN INDUSTRIES INC 225000 03/16/2018 100 1 00-30-51 10 SMS 2171.00 03/16/2018 100 100-22-6210 SYNCB/AMAZON 470422 03/16/2018 100 100-23-6110 SYNCB/AMAZON 375.06 03/16/2018 100 100-23-6270 SYNCB/AMAZON 336.48 03/16/2018 100 100-33-6110 TRAFFIC CONTROL & PROTECTION INC 47.65 03/16/2018 100 100-45-6110 TRAFFIC CONTROL & PROTECTION INC 843,00 03/16/2018 100 100-22-5430 LEWIS UNIVERSITY 150.00 03/28/2018 100 10045-6110 MENARDS - CRYSTAL LAKE 80.10 03/28/2018 100 10045-6110 MENARDS - CRYSTAL LAKE 166.90 03/28/2018 100 1 00-01 -51 10 SERVICEMASTER BY DIDIER 342900 03/28/2018 100 100-33-6210 STANS LIPS MIDWEST 119.00 03/28/2018 100 100-33-6210 STANS LIDS MIDWEST 296,00 03/28/2018 100 100-01-5320 VERIZON WIRELESS 54.98 03/28/2018 100 100-03-5320 VERIZON WIRELESS 104.55 03/28/2018 100 100-22-5320 VERIZON WIRELESS 1424*71 03/28/2018 100 100-30-5320 VERIZON WIRELESS 56.44 03/28/2018 100 100-33-5320 VERIZON WIRELESS 145.97 03/28/2018 100 10041-5320 VERIZON WIRELESS 4.70 03/28/2018 100 10045-5320 VERIZON WIRELESS 36.21 03/28/2018 100 10046-5320 VERIZON WIRELESS 2,24 03/28/2018 100 10046-5320 AT&T 59669 03/30/2018 100 100-01-5320 AT&T 304.48 03/30/2018 100 100-22-5320 AT&T 375,80 03/30/2018 100 100-33-5320 AT&T 86.99 03/30/2018 100 100-41-5320 AT&T 320,62 03/30/2018 100 10044-5320 AT&T 37.92 03/30/2018 100 10045-5320 AT&T 70m95 03/30/2018 100 100-33-5520 COMED 437.82 03/30/2018 100 10045-5510 COMED 233.01 03/30/2018 100 1 00-45-61 10 FASTENAL 5A 5 03/30/2018 100 100-33-5370 FASTENAL 20.21 03/30/2018 100 10045-6110 FOX WATERWAY AGENCY 330.00 03/30/2018 100 100-334510 RED WING BUSINESS ADVANTAGE 180639 03/30/2018 100 100-33-5110 US BANK EQUIPMENT FINANCE 84,06 03/30/2018 100 10045-5320 AT&T 355613 03/30/2018 100 100-01-5320 AT&T 322.40 03/30/2018 100 100-03-5320 AT&T 107.46 03/30/2018 100 100-22-5320 AT&T 429.84 03/30/2018 100 100-22-5320 AT&T 303e34 03/30/2018 100 100-23-5320 AT&T 107.46 03/30/2018 100 100-33-5515 AT&T 121.48 03/30/2018 100 10045-5320 AT&T 945.62 03/30/2018 100 100-45-5320 AT&T 526.23 03/30/2018 100 10046-5320 AT&T 59.69 03/30/2018 100 100-01-5320 AT&T 304,48 03/30/2018 100 100-22-5320 AT&T 375.80 03/30/2018 100 100-33-5320 AT&T 86.99 03/30/2018 100 10041-5320 AT&T 320462 03/30/2018 100 100-44-5320 AT&T 37.92 03/30/2018 100 10045-5320 AT&T 70,95 03/30/2018 100 100-33-5520 COMED 437.82 03/30/2018 100 10045-5510 COMED 23101 03/30/2018 AS NEEDED CHECKS COUNCIL MEETING 4/30/18 100 100-45-6110 FASTENAL 5.15 03/30/2018 100 100-33-5370 FASTENAL 20021 03/30/2018 100 10045-6110 FOX WATERWAY AGENCY 330900 03/30/2018 100 100-334510 RED WING BUSINESS ADVANTAGE 180039 03/30/2018 100 1 00-33-51 10 US BANK EQUIPMENT FINANCE 84.06 03/30/2018 200 200-00-5l 10 HOME DEPOT CREDIT SERVICES 337.39 03/12/2018 200 200-00-5110 INDESTRUCTO RENTAL COMPANY 8821 *00 03/15/2018 200 200-00-5110 CHAS HERDRICH & SONS, INC 6196.27 03/16/2018 200 200-00-5110 AND BEYOND LLC 1200000 03/16/2018 200 200-00-5110 DUNDEE SCOTTISH PIPE BAND 1000.00 03/16/2018 200 200-00-5110 FUCHS, MARK 1500000 03/16/2018 200 200-00-5110 GONZALEZ, GINA 600600 03/16/2018 200 200-00-5110 HOBSON, BILL 4000*00 03/16/2018 200 200-00-5110 PIRATE RADIO LLC 600.00 03/16/2018 200 200-00-5110 TM PRODUCTION SERVICES 1000.00 03/16/2018 200 200-00-5110 GC INC 500,00 03/28/2018 200 200-00-5110 HARDMAN, ROB 2271,75 03/28/2018 215 215-00-6110 THINK INK INC 2665.00 03/12/2018 215 215-00-6110 JIMANOS PIZZERIA 250,00 03/28/2018 215 215-00-6110 THINK INK INC 251.50 03/28/2018 400 400-00-6120 BANKCARD PROCESSING CENTER 87.45 03/02/2018 400 400-00-5510 COMED 2875.95 03/02/2018 400 400-00-8300 DIRECT FITNESS SOLUTIONS 17545.00 03/02/2018 MO 40040-6142 DIRECT FITNESS SOLUTIONS 5000100 03/02/2018 400 400-00-5210 SHAW MEDIA 596.00 03/02/2018 400 400-00-6110 HOME DEPOT CREDIT SERVICES 80.70 03/12/2018 400 400-00-5210 SHAW MEDIA 596.00 03/15/2018 400 400-00-5321 DIRECTV 551.94 03/28/2018 400 400-00-5510 COMED 1406.57 03/30/2018 400 400-00-5510 COMED 1406.57 03/30/2018 510 510-31-5510 COMED 2308*55 03/02/2018 510 510-32-5510 COMED 171,58 03/02/2018 510 510-32-5510 COMED 1909.21 03/02/2018 510 510-32-5380 LIONHEART 621.69 03/02/2018 510 510-31-5310 PURCHASE POWER 27.76 03/02/2018 510 510-32-5310 PURCHASE POWER 12A4 03/02/2018 510 510-31-5430 BANKCARD PROCESSING CENTER 431.66 03/12/2018 510 510-31-6110 BANKCARD PROCESSING CENTER 96.64 03/12/2018 510 510-31-6110 HOME DEPOT CREDIT SERVICES 673.97 03/12/2018 510 510-35-6110 HOME DEPOT CREDIT SERVICES 271.99 03/12/2018 510 510-32-5380 REVERE ELECTRIC 78.08 03/12/2018 510 510-32-8500 WILLIAMS BROTHERS CONSTRUCTION INC 811982*27 03/12/2018 510 510-35-6110 MID AMERICAN WATER OF WAUCONDA INC 353.96 03/15/2018 510 510-324510 CINTAS CORPORATION LOC 355 781.76 03/16/2018 510 510-35-5370 ED'S AUTOMOTIVE/JIM'S MUFFLER SHOP 29.00 03/16/2018 510 510-32-5380 REVERE ELECTRIC 75.17 03/16/2018 510 510-32-5380 REVERE ELECTRIC 78.08 03/16/2018 510 510-32-5380 REVERE ELECTRIC 952.65 03/16/2018 510 510-32-5380 REVERE ELECTRIC 952.65 03/16/2018 510 510-32-5510 COMED 875461 03/28/2018 510 510-31-5320 VERIZON WIRELESS 204.07 03/28/2018 510 510-32-5320 VERIZON WIRELESS 53,37 03/28/2018 510 510-35-5320 VERIZON WIRELESS 76.02 03/28/2018 510 510-31-5510 COMED 2389950 03/30/2018 510 510-32-5510 COMED 6610.02 03/30/2018 510 510-35-6110 FASTENAL 54.24 03/30/2018 AS NEEDED CHECKS COUNCIL MEETING 4/30/18 510 510-32-6110 KIRBY CABLE SERVICES INC 3687.50 03/30/2018 510 510-35-6110 LAFARGE NORTH AMERICA 689.89 03/30/2018 510 510-35-6110 RED WING BUSINESS ADVANTAGE 179.99 03/30/2018 510 510-354510 RED WING BUSINESS ADVANTAGE 179.99 03/30/2018 510 510-354510 RED WING BUSINESS ADVANTAGE 202.39 03/30/2018 510 510-354510 RED WING BUSINESS ADVANTAGE 189.19 03/30/2018 510 510-31-5510 US BANK EQUIPMENT FINANCE 84.05 03/30/2018 510 510-32-5510 US BANK EQUIPMENT FINANCE 84.05 03/30/2018 510 510-35-5110 US BANK EQUIPMENT FINANCE 84.05 03/30/2018 510 510-31-6110 USA BLUEBOOK 60.53 03/30/2018 510 510-35-6110 USA BLUEBOOK 313.93 03/30/2018 510 510-31-5510 COMED 2389.50 03/30/2018 510 510-32-5510 COMED 6610.02 03/30/2018 510 510-35-6110 FASTENAL 54.24 03/30/2018 510 510-32-6110 KIRBY CABLE SERVICES INC 3687.50 03/30/2018 510 510-35-6110 LAFARGE NORTH AMERICA 689.89 03/30/2018 510 510-35-6110 RED WING BUSINESS ADVANTAGE 179.99 03/30/2018 510 510-354510 RED WING BUSINESS ADVANTAGE 179.99 03/30/2018 510 510-354510 RED WING BUSINESS ADVANTAGE 202.39 03/30/2018 510 510-354510 RED WING BUSINESS ADVANTAGE 189.19 03/30/2018 510 510-31-5510 US BANK EQUIPMENT FINANCE 84.05 03/30/2018 510 510-32-5510 US BANK EQUIPMENT FINANCE 84.05 03/30/2018 510 510-35-5110 US BANK EQUIPMENT FINANCE 84.05 03/30/2018 510 510-31-6110 USA BLUEBOOK 60.53 03/30/2018 510 510-35-6110 USA BLUEBOOK 313.93 03/30/2018 610 610-00-5960 BANKCARD PROCESSING CENTER 32.17 03/12/2018 620 620-00-6210 DOCUMENT IMAGING DIMENSIONS INC 199.00 03/12/2018 620 620-00-6210 DOCUMENT IMAGING DIMENSIONS INC 79.00 03/12/2018 620 620-00-5110 AT&T 1149.00 03/15/2018 620 620-00-5110 AT&T 4044.46 03/15/2018 620 620-00-6210 DOCUMENT IMAGING DIMENSIONS INC 109.00 03/15/2018 620 620-00-6210 DOCUMENT IMAGING DIMENSIONS INC 158.00 03/15/2018 620 620-00-5110 STANS LPS MIDWEST 1672.00 03/16/2018 620 620-00-5320 VERIZON WIRELESS 79.56 03/28/2018 620 620-00-5320 AT&T 107.46 03/30/2018 620 620-00-5320 AT&T 107.46 03/30/2018 TOTAL 1130897,96 100 -GENERAL FUND 200 -TOURISM FUND 215 - MCHENRY AREA CHARACTER COUNTS 4 )0 - RECREATION CENTER FUND 510 - WATER/SEWER FUND 610 - RISK MANAGEMENT FUND 620 - INFORMATION TECHNOLOGY TOTAL 209185.04 28026.41 3166.50 30146,18 852636272 32.17 7704.94 1130897.96 McHenry, IL Expense Approval Register List of Bills Council Meeting 4-3048 Vendor Name Payable Number Post Date Description (Item) Account Number Amount Vendor: ALPHA BUILDING MAINTENANCE SERVICE INC ALPHA BUILDING 18592CM 04/30/2018 JANIT/APRIL 400-00-5200 2,080.00 Vendor ALPHA BUILDING MAINTENANCE SERVICE INCTotal: 2,080.00 Vendor: ANCHOR BUILDING SOLUTIONS INC ANCHOR BUILDING SOLUTIONS P104848 04/30/2018 TI<TOVERPY-MCNISH 100-2200 25,00 Vendor ANCHOR BUILDING SOLUTIONS INCTotal: 25.00 Vendor: ASSOCIATED ELECTRICAL CONTRACTORS ASSOCIATED ELECTRICAL 35004781 04/30/2018 NEMA CAB 200-00-5110 3,050,00 Vendor ASSOCIATED ELECTRICAL CONTRACTORS Total: 3,050.00 Vendor: AT&T AT&T I NV000S742 04/30/2018 UTI L 100-43-5320 74.54 Vendor AT&T Total: 74.54 Vendor: BELLAS BOUNCIES BELLAS BOUNCIES 1218-179 04/30/2018 DAY OF PLAY/RIVER RUN 100-41-6920 2,553.00 Vendor BELLAS BOUNCIES Total: 2,553.00 Vendor: BEYER, JENNIFER BEYER, JENNIFER 18-13-040 04/30/2018 TMPSGN REF 100-00-3410 30,00 Vendor BEYER, JENNIFER Total: 30,00 Vendor: BRAUN, MELISSA BRAUN, MELISSA 195231 04/30/2018 PGM REF 100-41-3637 15.00 Vendor BRAUN, MELISSA Total: 15.00 Vendor: BUSS FORD SALES BUSS FORD SALES 39867 04/30/2018 FUSION 100-22-8400 13,500.00 Vendor BUSS FORD SALES Total: 13,500,00 Vendor: CABAY & COMPANY INC CABAY & COMPANY INC 58999 04/30/2018 SUPP 400-00-6111 1,087.92 Vendor CABAY & COMPANY INC Total: 10087.92 Vendor: CENTEGRA OCCUPATIONAL HEALTH CENTEGRA OCCUPATIONAL 207869 04/30/2018 W FRAZIER 100-01-5110 140.00 CENTEGRA OCCUPATIONAL 208081 04/30/2018 J MCMAHON 610-00-6940 65,00 CENTEGRA OCCUPATIONAL 208176 04/30/2018 A FREUND 100-01-5110 35,00 CENTEGRA OCCUPATIONAL 208244 04/30/2018 M FREUND/D MEADOWS 100-01-5110 120.00 CENTEGRA OCCUPATIONAL 208371 04/30/2018 D DUFFY/J KUHL/M LANGE 100-01-5110 180,00 Vendor CENTEGRA OCCUPATIONAL HEALTH Total: 540.00 Vendor: CLEMENTS, PAUL CLEMENTS, PAUL INV0005743 04/30/2018 UNIFORM REIMB 100-33-4510 89,19 Vendor CLEMENTS, PAUL Total: 89,19 Vendor: COMPASS MINERALS AMERICA COMPASS MINERALS AMERICA 249773 04/30/2018 MAT 270-00-6110 5,527.74 Vendor COMPASS MINERALS AMERICA Total: 5,527.74 Vendor: DIRECT FITNESS SOLUTIONS DIRECT FITNESS SOLUTIONS 0531742-IN 04/30/2018 PREV MAINT 400-00-5110 11810,00 Vendor DIRECT FITNESS SOLUTIONS Total: 1/810400 Vendor: EDDY, RAY EDDY, RAY 195437 04/30/2018 LEAGUE CHG-REF 100-41-3637 40,00 Vendor EDDY, RAY Total: 40.00 Vendor: FUN EXPRESS LLC FUN EXPRESS LLC 689373177-01 04/30/2018 MARLINS BANQSUPP 100-47-6110 149,40 Vendor FUN EXPRESS LLC Total: 149,40 <4/ZS/201G 10:36:38 AP' Expense Approval Register Packet: APPKT01139 - 4/30/18 AP CKS Vendor Name Payable Number Post Date Description (Item) Account Number Amount Vendor: GENDE, ROBERT GENDE, ROBERT INV000S744 04/30/2018 4/8-4/22 UMP 10047-5110 250.00 Vendor GENDE, ROBERT Total: 250.00 Vendor: GESSERT, SCOTT GESSERT, SCOTT INV0005745 04/30/2018 4/8-4/22 UMP 100-47-5110 250.00 Vendor G ESSERT, SCOTT Total: 250.00 Vendor: ILLINOIS AUDIO PRODUCTIONS ILLINOIS AUDIO PRODUCTIONS 108900 04/30/2018 QTRLY SVS 620-00-5110 135.00 Vendor ILLINOIS AUDIO PRODUCTIONS Total: 135600 Vendor: KARPINSKI, ERIC KARPINSKI, ERIC P105246 04/30/2018 TKTOVERPY 100-2200 25.00 Vendor KARPINSKI, ERIC Total: 25.00 Vendor: IUAER, JASON IUAER, JASON 195217 04/30/2018 PGM REF 100-41-3637 25.00 Vendor KJAER, JASON Total: 25.00 Vendor: LEISTEN, RICK LEISTEN, RICK INV000S746 04/30/2018 UNIFORM REIMB 100-33-4510 214.99 Vendor LEISTEN, RICK Total: 214.99 Vendor: LIFEGUARD STORE INC, THE LIFEGUARD STORE INC, THE INV665690 04/30/2018 SWIM CAPS 100-47-6110 647.75 Vendor LIFEGUARD STORE INC, THE Total: 647.75 Vendor: MACE, DOUG MACE, DOUG INV0005747 04/30/2018 UNIFORM REIMB 510-31-4510 64.50 MACE, DOUG INVOODS747 04/30/2018 UNIFORM REIMB 510-31-4510 44.02 Vendor MACE, DOUG Total: 108.52 Vendor: MARULLI, VICTORIA MARULLI, VICTORIA INV0005748 04/30/2018 COSTUME REIMB 100-46-6110 41.21 Vendor MARULLI, VICTORIA Total: 4111. Vendor: MCHENRY AREA CHAMBER OF COMMERCE MCHENRY AREA CHAMBER OF 4/17/18 ST 04/30/2018 STMT 100-02-5330 28.00 MCHENRY AREA CHAMBER OF 4/17/18ST 04/30/2018 STMT 100-02-5330 125.00 Vendor MCHENRY AREA CHAMBER OF COMMERCE Total: 153.00 Vendor: MCHENRY COUNTY CHIEFS OF POLICE MCHENRY COUNTY CHIEFS OF INV0005749 04/30/2018 MTHLY 100-22-5430 60.00 Vendor MCHENRY COUNTY CHIEFS OF POLICE Total: 60.00 Vendor: MCHENRY COUNTY DEPT OF HEALTH MCHENRY COUNTY DEPT OF INV0005750 04/30/2018 BEACH SAMPL 100-43-6110 1,300.00 Vendor MCHENRY COUNTY DEPT OF HEALTH Total: 11300,00 Vendor: MCHENRY SPECIALTIES MCHENRY SPECIALTIES 2018-269 04/30/2018 MARLINS AWARDS 100-47-6110 1,019.90 Vendor MCHENRY SPECIALTIES Total: 1,019.90 Vendor: MERTZ, GARY MERTZ, GARY INV0005751 04/30/2018 UNIFORM REIMB 100-33-4510 283.09 Vendor MERTZ, GARY Total: 283.09 Vendor: MOREAU, JOANNE MOREAU, JOANNE 195232 04/30/2018 PGM REF 100-41-3637 10.00 Vendor MOREAU, JOANNE Total: 10.00 Vendor: PENZE, JACQUELINE S PENZE, JACQUELINE S INV0005752 04/30/2018 3/5-4/9 PGM INST 100-46-5110 375,00 Vendor PENZE, JACQUELINE S Total: 375.00 Vendor: PETTIBONE & CO, P F PETTIBONE & CO, P F 173936 04/30/2018 LIQ LIC 100-01-6110 465.00 Vendor PETTIBONE & CO, P F Total: 465.00 4/25/2018 10:36:38 AM Expense Approval Register Packet: APPKTO1139 - 4/30/18 AP CKS Vendor Name Payable Number Post Date Description (Item) Account Number Amount Vendor: PORTER, DAVID PORTER, DAVID INV0005753 04/30/2018 SUPP REIMB 100-22-6210 25.98 Vendor PORTER, DAVID Total: 25.98 Vendor: RATLIFF, ERIC RATLIFF, ERIC 195436 04/30/2018 LG REF 100-41-3637 80.00 Vendor RATLIFF, ERIC Total: 80.00 Vendor: RED WING SHOES RED WING SHOES 18-02-044 04/30/2018 TMP SGN REF 100-00-3410 30,00 Vendor RED WING SHOES Total: 30.00 Vendor: SCHEEL, BRYAN SCHEEL, BRYAN INV0005754 04/30/2018 UNIFORM REIMB 510-31-4510 159,05 Vendor SCHEEL, BRYAN Total: 159.OS Vendor: SCHMITT, JON SCHMITT, JON INV0005755 04/30/2018 CDL 100-33-5430 60,00 Vendor SCHMITT, JON Total: 60.00 Vendor: SCHMITT, MATTHEW SCHMITT, MATTHEW INV0005756 04/30/2018 MEAL REIMB 100-22-5420 8,00 Vendor SCHMITT, MATTHEW Total: 8.00 Vendor: SCHOPEN PEST SOLUTIONS INC SCHOPEN PEST SOLUTIONS INC 83396 04/30/2018 QTRLY 400-00-SllO 75,00 Vendor SCHOPEN PEST SOLUTIONS INC Total: 7SM0 Vendor: SHAFER. SAMUEL SHAFER, SAMUEL CK 7730 RE 04/30/2018 RE ISSUE CK 7730 760-00-3831 5,60 Vendor SHAFER. SAMUEL Total: 5.60 Vendor: SYNEK, JENNIFER SYNEK, JENNIFER INV0005757 04/30/2018 NENAMSHIP 100-23-5420 137,00 Vendor SYNEK, JENNIFER Total: 137.00 Vendor: TECHNOLOGY MANAGEMENT REV FUND TECHNOLOGY MANAGEMENT T1829237 04/30/2018 MTHLY 620-00-5110 10100 Vendor TECHNOLOGY MANAGEMENT REV FUND Total: 10.00 Vendor: TONYAN, LUCY TONYAN, LUCY INV0OD5758 04/30/2018 W/SP PGMS 100-46-5110 1,008.00 Vendor TONYAN, LUCY Total: 1,008.00 Vendor: UPS UPS 60X485148 04/23/2018 SHP 100-41-5310 4.18 Vendor UPS Total: 4.18 Vendor: VERMONT SYSTEMS INC VERMONT SYSTEMS INC 58441 04/30/2018 KEY FOBS -POOL PASSES 10042-6110 456,00 Vendor VERMONT SYSTEMS INC Total: 456.00 Vendor: WOODWARD PRINTING SERVICES WOODWARD PRINTING 47526 04/30/2018 SM BRO 100-41-5310 274.16 WOODWARD PRINTING 47526 04/30/2018 SM BRO 100-41-5330 6,503.00 Vendor WOODWARD PRINTING SERVICES Total: 6,777.16 Vendor: ZUKOWSKI ROGERS FLOOD & MCARDLE ZUKOWSKI ROGERS FLOOD & 130897 04/30/2018 LGL 100-01-5230 10,281.25 ZUKOWSKI ROGERS FLOOD & 130898 04/30/2018 RET PERS 740-00-5230 8,482.50 ZUKOWSKI ROGERS FLOOD & 130899 04/30/2018 LGL 100-01-5230 8,589,82 ZUKOWSKI ROGERS FLOOD & 130901 04/30/2018 RET PIERS - UTOPIAN 740-00-5230 290,00 ZUKOWSKI ROGERS FLOOD & 130904 04/30/2018 RET PERS-VIKING 740-00-5230 362.50 ZUKOWSKI ROGERS FLOOD & 130905 04/30/2018 LGL 740-00-5230 362.50 Vendor ZUKOWSKI ROGERS FLOOD & MCARDLE Total: 280368.57 Grand Total: 73,139.79 4/25/2018 10:36:38 AM Expense Approval Register Fund Summary Fund 100- GENERAL FUND 200-TOURISM FUND 270- MOTOR FUEL TAX FUND 400-RECREATION CENTER FUND 510- WATER/SEWER FUND 610- RISK MANAGEMENT FUND 620- INFORMATION TECHNOLOGY FUND 740- RETAINED PERSONNEL ESCROW 760-POLICE PENSION FUND 4/25/2018 10:36:38 AM Grand Total: Expense Amount 49,528,46 3,050.00 5/527674 51052,92 267.57 65.00 145.00 9,497.50 5.60 73,139.79 Packet: APPKT01139 - 4/30/18 AP CKS Expense Approval Register McHenry, IL #2 List of Bills Council Meeting 4-30-18 MCI- en Vendor Name Payable Number Post Date Description (Item) Account Number Amount Vendor: ACKER, RONALD ACKER, RONALD 1 04/30/2018 Dog Park Services 100-45-5110 100,00 Vendor ACKER, RONALD Total: 100.00 Vendor: ADAMS ENTERPRISES INC, R A ADAMS ENTERPRISES INC, RA 820755 04/30/2018 132 100-45-5370 242452 Vendor ADAMS ENTERPRISES INC, R A Total: 24152 Vendor: ADAMS STEEL SERVICE INC ADAMS STEEL SERVICE INC 348163 04/30/2018 streets 100-33-5370 92.75 ADAMS STEEL SERVICE INC 348172 04/30/2018 132 100-45-5370 7293 ADAMS STEEL SERVICE INC 348393 04/30/2018 argon gas welder 100-33-5370 107,88 Vendor ADAMS STEEL SERVICE INC Total: 27356 Vendor: ADVANCED TURF SOLUTIONS ADVANCED TURF SOLUTIONS S0665705 04/30/2018 Spring Fertilzer 100-45-6110 11213,60 Vendor ADVANCED TURF SOLUTIONS Total: 1,21160 Vendor: AMERICAN SOLUTIONS FOR BUSINESS AMERICAN SOLUTIONS FOR INVO3508567 04/30/2018 Promo Items for ICSC 100-01-5110 229,32 Vendor AMERICAN SOLUTIONS FOR BUSINESS Total: 229,32 Vendor: ARAMARK ARAMARK 20779706 04/30/2018 Clothing:Dillon 100-45-4510 45.93 ARAMARK 20783255 04/30/2018 Clothing -Crowder 100-45-4510 202,77 ARAMARK 20793243 04/30/2018 Clothing-VanLundyt 100-45-4510 4193 ARAMARK 20794980 04/30/2018 Clothing -Crowder 100-45-4510 18499 ARAMARK 20812063 04/30/2018 uniforms for lake Reilly 100-33-4510 386,86 Vendor ARAMARI(Total: 862.48 Vendor: AT&T AT&T 8572 828 4/11 ST 04/30/2018 Network on Demand 620-00-5110 2,31213 Vendor AT&T Total: 2131213 Vendor: AUTO TECH CENTERS INC AUTO TECH CENTERS INC 286081 04/30/2018 tires 329 100-22-5370 511.92 AUTO TECH CENTERS INC 286150 04/30/2018 scrasp fee 316 100-22-5370 5.50 AUTO TECH CENTERS INC 286151 04/30/2018 tires 316 100-22-5370 281,48 Vendor AUTO TECH CENTERS INC Total: 798.90 Vendor: BERKHEIMER CO INC, G W BERKHEIMER CO INC, G W 190262 04/30/2018 Heater 510-35-6110 565.00 Vendor BERKHEIMER CO INC, G W Total: 565.00 Vendor: CABAY & COMPANY INC CABAY & COMPANY INC 59029 04/30/2018 PAPER PRODUCTS 100-01-6110 6535 CABAY & COMPANY INC 59093 04/30/2018 PAPER PRODUCTS 100-01-6110 197,92 Vendor CABAY & COMPANY INC Total: 263.27 Vendor: CDW GOVERNMENT INC CDW GOVERNMENT INC MGV8128 04/30/2018 QuoteJRU133 HP Switch for 620-00-6270 205,85 CDW GOVERNMENT INC MGX1429 04/30/2018 Quote JRNQ860 Pinnalce 620-00-6270 114,83 Vendor CDW GOVERNMENT INC Total: 320o68 Vendor: CONNOR CO CONNORCO S8007448.001 04/30/2018 Vacuum Breaker 510-35-6110 20.74 Vendor CONNOR CO Total: 2034 Vendor: CONSERV FS CONSERV FS 65051226 04/30/2018 Spring Fertilizer 100-45-6110 1,806.25 Vendor CONSERV FS Total: 1,806.25 4/25/2018 10:46:03 AM Expense Approval Register Packet: APPKT01141- 4-3048 RECT INVOICE Vendor Name Payable Number Post Date Description (Item) Account Number Amount Vendor: CRESCENT ELECTRIC SUPPLY CO CRESCENT ELECTRIC SUPPLY CO S504844786,006 04/30/2018 street lights-Centegra 100-33-6110 51049,65 CRESCENT ELECTRIC SUPPLY CO S504896015,001 04/30/2018 bussmann fuseholder. vendor 100-33-6110 815.58 CRESCENT ELECTRIC SUPPLY CO S504906358.001 04/30/2018 Emergency Lighting Units - 510-31-6110 26.25 CRESCENT ELECTRIC SUPPLY CO 5504907145.001 04/30/2018 Breaker 510-35-6110 19.99 CRESCENT ELECTRIC SUPPLY CO S504910026,001 04/30/2018 pivotal knee 100-33-6110 23.37 CRESCENT ELECTRIC SUPPLY CO S504940590,001 04/30/2018 Pipe clamps 510-32-5380 23.63 Vendor CRESCENT ELECTRIC SUPPLY CO Total: S,958.47 Vendor: CURRAN CONTRACTING COMPANY CURRAN CONTRACTING 13960 04/30/2018 UPM (cold patch). vendor 100-33-6110 986.80 Vendor CURRAN CONTRACTING COMPANY Total: 886.80 Vendor: DOCUMENT IMAGING DIMENSIONS INC DOCUMENT IMAGING 330771 04/30/2018 Order330771 620-00-6210 59,00 DOCUMENT IMAGING 330772 04/30/2018 Order 330772 PD Investigations 620-00-6210 597.00 DOCUMENT IMAGING 330778 04/30/2018 Order 330778 PD Admin Copy 620-00-6210 109.00 Vendor DOCUMENT IMAGING DIMENSIONS INC Total: 765.00 Vendor: ED'S RENTAL & SALES INC ED'S RENTAL & SALES INC 2259774 04/30/2018 propane forklift 100-33-5370 27.91 Vendor ED'S RENTAL & SALES INC Total: 27.91 Vendor: El EQUIPMENT FJ EQUIPMENT P10729 04/30/2018 parts 441 100-33-5370 31619.39 Vendor E1 EQUIPMENT Total: %619.39 Vendor: FASTENAL FASTENAL ILMCH25967 04/30/2018 Misc Hardware 510-32-5380 49.96 FASTENAL ILMCH25998 04/30/2018 Misc Hardware 510-32-5380 13.08 FASTENAL ILMCH26028 04/30/2018 Wdg Expn Anchr. vendor 100-33-6110 150.59 FASTENAL ILMCH26145 04/30/2018 Drop in concrete anchors 510-32-5380 39.50 FASTENAL ILMCH26190 04/30/2018 Concrete Anchors 510-32-5380 61.84 Vendor FASTENALTotal: 314.97 Vendor: FOXCROFT MEADOWS INC FOXCROFT MEADOWS INC 5327S 04/24/2018 Dirt 100-33-6110 300400 FOXCROFT MEADOWS INC 53234 04/30/2018 topsoil. vendorticket# 100-33-6110 350.00 FOXCROFT MEADOWS INC 53274 04/30/2018 ROW supplies 100-33-6110 799.50 Vendor FOXCROFT MEADOWS INCTotal: 11449.50 Vendor: GALLS LLC GALLS LLC 9442043 04/30/2018 UNIFORM ORDER- DOTY 100-23-4510 42.42 GALLS LLC 9458859 04/30/2018 UNIFORM ORDER-K.SCHMITT 100-23-4510 135.82 GALLS LLC 9458952 04/30/2018 UNIFORM ORDER -1.LEIBACH 100-23-4510 3815 GALLS LLC 9458958 04/30/2018 UNIFORM ORDER -GARRETT 100-23-4510 76.57 GALLS LLC 9513617 04/30/2018 UNIFORM ORDER-GARRETT 100-23-4510 211.94 GALLS LLC 9522480 04/30/2018 UNIFORM ORDER -C.DAWSON 100-23-4510 122,49 GALLS LLC 9522536 04/30/2018 UNIFORM ORDER-DURBAND 100-23-4510 211.94 GALLS LLC 9522539 04/30/2018 UNIFORM ORDER -HAVENS 100-23-4510 211.94 GALLS LLC 9S53336 04/30/2018 UNIFORM ORDER-FITZGERALD 100-234510 96.98 GALLS LLC 9553894 04/30/2018 UNIFORM ORDER K.SCHMITT 100-23-4510 22.97 GALLS LLC 9622864 04/30/2018 DISPATCHER BADGES 100-22-6110 1,449.00 GALLS LLC 9625750 04/30/2018 UNIFORM ORDER- BARNETT 100-23-6110 256.73 GALLS LLC 9628916 04/30/2018 UNIFORM ORDER -ZUMWALT 100-22-4510 122.98 GALLS LLC 9628956 04/30/2018 UNIFORM ORDER- P.PRATHER 100-22-4510 27.06 GALLS LLC 9634819 04/30/2018 DISPATCH SUPERVISOR BADGE 100-22-6110 122.60 GALLS LLC 9649230 04/30/2018 UNIFORM ORDER- MALIK 100-22-4510 373.93 GALLS LLC 9655247 04/30/2018 UNIFORM ORDER-1,DUCAK 100-224510 197.50 GALLS LLC 9659592 04/30/2018 UNIFORM ORDER- P. PRATHER 100-22-4510 145.96 GALLS LLC 9662402 04/30/2018 UNIFORM ORDER-K.SCHMITT 100-23-4510 211.94 GALLS LLC 9662403 04/30/2018 UNIFORM ORDER-NEVILLE 100-234510 100.97 GALLS LLC 9662405 04/30/2018 UNIFORM ORDER-BARNETT 100-23-4S10 211,94 GALLS LLC 9662406 04/30/2018 UNIFORM ORDER-GALLAGHER 100-234510 6&98 GALLS LLC 9665722 04/30/2018 UNIFORM ORDER- CLESEN 100-224510 43.40 4/25/2018 10:46;03 AM Expense Approval Register Packet: APPKT01141- 4-30-18 RE CT INVOICE Vendor Name Payable Number Post Date Description (item) Account Number Amount GALLS LLC 9671491 04/30/2018 UNIFORM ORDER- ROSKE 100-22-4510 122.98 GALLS LLC 9673878 04/30/2018 UNIFORM ORDER-GALLAGHER 100-23-4510 232.60 GALLS LLC 9683645 04/30/2018 UNIFORM ORDER- CLESEN 100-22-4510 63.99 GALLS LLC 9689645 04/30/2018 UNIFORM ORDER- 100-234510 94.93 GALLS LLC 9690363 04/30/2018 UNIFORM ORDER -ADAMS 100-224510 507.65 Vendor GALLS LLC Total: 5,526.96 Vendors GRAINGER GRAINGER 9748729630 04/30/2018 Hose Nozzles 510-32-6110 110.56 Vendor GRAINGER Total: 130.56 Vendor: HANSEN'S ALIGNMENT, DON HANSEN'S ALIGNMENT, DON FMMO1352 04/30/2018 align 316 100-22-5370 80.00 Vendor HANSEN'S ALIGNMENT, DON Total: 80.00 Vendor: HAWKINS INC HAWKINS INC 4257540 04/30/2018 Chemical Delivery 510-32-6110 7,424,00 HAWKINS INC 4264391 04/30/2018 Chemical Delivery-04/16/18 510-31-5110 51442,52 Vendor HAWKINS INC Total: 12,866.52 Vendor: IWPIPE TECHNOLOGY COMPANY INC IWPIPE TECHNOLOGY 1252 04/30/2018 Monthly service fee 510-32-5110 7,750.00 Vendor IN -PIPE TECHNOLOGY COMPANY INCTotal: 71750.00 Vendor: INTERSTATE BILLING SERVICE INC INTERSTATE BILLING SERVICE 3010168276 04/30/2018 817 510-35-5370 87.80 INTERSTATE BILLING SERVICE 3010185525 04/30/2018 filter440 100-33-5370 183.80 INTERSTATE BILLING SERVICE 3010201867 04/30/2018 filter440 100-33-5370 59,82 INTERSTATE BILLING SERVICE 3010219401/3008330903 04/30/2018 404 100-33-5370 7,04 Vendor INTERSTATE BILLING SERVICE INCTotal: 338.46 Vendor: JENSEN, TED JENSEN, TED 3301 04/30/2018 Aerator#3 Bearing Inserts 510-32-5380 989.78 Vendor JENSEN, TED Total: 989.78 Vendor: JG UNIFORMS INC JG UNIFORMS INC 34371 04/30/2018 UNIFORM ORDER- MORALES 100-224510 166.06 1G UNIFORMS INC 34428 04/30/2018 UNIFORM ORDERS 100-22-4510 717.04 JG UNIFORMS INC 34805 04/30/2018 UNIFORM ORDER- 100-22-6110 156.94 JG UNIFORMS INC 34805A 04/30/2018 UNIFORM ORDER 100-22-4510 11258.62 JG UNIFORMS INC 34902 04/30/2018 UNIFORM ORDER- CLESEN 100-224510 18.50 VendorJG UNIFORMS INCTotal: 2,317A6 Vendor: KIMBALL MIDWEST KIMBALLMIDWEST 6271918 04/30/2018 stock 100-33-5370 352.22 KIMBALLMIDWEST 6288615 04/30/2018 stock 100-33-5370 143.40 KIMBALLMIDWEST 6289881 04/30/2018 stock 100-22-5370 479.26 Vendor KIMBALL MIDWEST Total: 974.88 Vendor: KOMLINE-SANDERSON KOMLINE-SANDERSON 42038803 04/30/2018 Belt steering sensor-BFP & 510-32-5380 362.38 KOMLINE-SANDERSON 42038884 04/30/2018 Belt steering sensor-BFP& 510-32-5380 1,019.57 Vendor KOMLINE-SANDERSON Total: 11381.95 Vendor: MCHENRY POWER EQUIPMENT INC MCHENRY POWER EQUIPMENT 256565 04/30/2018 tube cart 100-33-5370 8.06 Vendor MCHENRY POWER EQUIPMENT INC Total: 8.06 Vendor: MIDWEST HOSE AND FITTINGS INC MIDWEST HOSE AND FITTINGS M22404 04/30/2018 412 10D-33-5370 94A3 Vendor MIDWEST HOSE AND FITTINGS INC Total: 94.13 Vendor: MIDWEST METER INC MIDWEST METER INC 89830 04/30/2018 (66) M25 Bases - Inv#89830 510-31-5110 31474.00 Vendor MIDWEST METER INCTotal: 3,474.00 Vendor: MNJ TECHNOLOGIES DIRECT INC MN1 TECHNOLOGIES DIRECT 3595996 04/30/2018 Quote 1090873 CED Plotter Ink 620-00-6210 125.68 Vendor MNJ TECHNOLOGIES DIRECT INCTotal: 125.68 4/25/2018 10;46:03 AM Expense Approval Register Packet: APPKTO1141- 4-30-18 RECT INVOICE Vendor Name Payable Number Post Date Description (Item) Account Number Amount Vendor: MOTOROLA SOLUTIONS - STARCOM21 NETWORK MOTOROLA SOLUTIONS - 349862282018 04/30/2018 STARCOM21 100-22-5320 21476.00 Vendor MOTOROLA SOLUTIONS - STARCOM21 NETWORK Total: 2,476.00 Vendor: NORTH EAST MULTI -REGIONAL TRAINING INC NORTH EAST MULTI -REGIONAL 234282 04/30/2018 TRAINING SEXTON 100-22-5430 35.00 Vendor NORTH EAST MULTI -REGIONAL TRAINING INC Total: 35.00 Vendor: PETROCHOICE LLC PETROCHOICE LLC 10508680 04/25/2018 SQUAD CAR FUEL 100-22-6250 21461,83 PETROCHOICE LLC 10503571 04/30/2018 oil 100-22-5370 11663.28 PETROCHOICE LLC 10508654 04/30/2018 fuel10508654 510-35-6250 486.22 PETROCHOICE LLC 10508676 04/30/2018 fuel10508676 510-32-6250 523.23 PETROCHOICE LLC 10508677 04/30/2018 fuel10508677 510-31-6250 113.65 PETROCHOICE LLC 10SO8679 04/30/2018 fuel 10508679 100-33-6250 1,21S.62 PETROCHOICE LLC 10508693 04/30/2018 SQUAD CAR FUEL 100-22-6250 10.88 PETROCHOICE LLC 10515534 04/30/2018 Fuel 10515534 510-35-6250 417.00 PETROCHOICE LLC 10515555 04/30/2018 FUELBILL 100-03-6250 81.07 PETROCHOICE LLC 10515556 04/30/2018 Fuel 10515556 510-32-6250 812.16 PETROCHOICE LLC 10515557 04/30/2018 Fuel 10515557 510-31-6250 158.29 PETROCHOICE LLC 10515559 04/30/2018 FueI10515559 100-33-6250 1,522.16 PETROCHOICE LLC 10515560 04/30/2018 SQUAD CAR FUEL 100-22-6250 11614.96 Vendor PETROCHOICE LLC Total: 11,080.35 Vendor: PETTIBONE & CO, P F PETTIBONE & CO, P F 17402/171938CR 04/30/2018 POLICE BADGES 100-22-6110 431.00 PETTIBONE & CO, P F 174201 04/30/2018 UNIFORM ORDER-TORKELSON 100-22-4510 9.00 Vendor PETTIBONE & CO, P F Total: 440.00 Vendor: PH&S PRODUCTS PH&5 PRODUCTS 11154 04/30/2018 EVIDENCE COLLECTION 100-22-6210 83.00 Vendor PH&S PRODUCTS Total: 83.00 Vendor: PITEL SEPTIC INC PITEL SEPTIC INC 15235 04/30/2018 Portabletoilets:parks 100-45-5110 375.00 Vendor PITEL SEPTIC INC Total: 375.00 Vendor: PROSHRED SECURITY PROSHRED SECURITY 990029028 04/30/2018 MONTHLY SHREDDING 100-22-5110 53.00 PROSH RED SECURITY 990029761 04/30/2018 MONTHLYSHRED 100-22-5110 53.00 Vendor PROSHRED SECURITY Total: 106.00 Vendor: QUALITY TIRE SERVICE QUALITY TIRE SERVICE 47340 04/30/2018 flat repair 811 510-35-5370 128.84 QUALITY TIRE SERVICE 47412 04/30/2018 tire repair 510-32-5370 40.00 QUALITY TIRE SERVICE 47479 04/30/2018 fire mount and scrap 636 510-32-5370 50,00 Vendor QUALITY TIRE SERVICE Total: 218.84 Vendor: RADICOM INC RADICOM INC 103919 04/30/2018 Sweep Antenna Tower#4- 510-31-5110 97.50 Vendor RADICOM INC Total: 97.50 Vendor: RED WING BUSINESS ADVANTAGE RED WING BUSINESS 20180410018401 04/30/2018 Boots Steve Wirch 510-35-4510 134.99 RED WING BUSINESS 20180410018401A 04/30/2018 uniform allowance 100-33-4510 189.19 RED WING BUSINESS 20180410018401C 04/30/2018 Boot allowance/Gorniak 100-45-4510 131.99 RED WING BUSINESS 20180410018401D 04/30/2018 Boots 100-33-4510 140.79 RED WING BUSINESS 20180410018401E 04/30/2018 boots 100-33-4510 193.59 Vendor RED WING BUSINESS ADVANTAGETotai: 790.55 Vendor: SHERWIN INDUSTRIES INC SHERWIN INDUSTRIES INC SS074271 04/30/2018 469 100-33-5370 1,526.36 Vendor SHERWIN INDUSTRIES INC Total: 11526.36 Vendor: SICALCO LTD SICALCO LTD 67614 04/30/2018 Calcium chloride 67614 270-00-6110 21694.16 Vendor SICALCO LTD Total: 21694A6 4/ZS/2018 10:46:03 AM Expense Approval Register Packet: APPKTO1141- 4-3048 RECT INVOICE Vendor Name Payable Number Post Date Description (Item) Account Number Amount Vendor: SIRCHIE FINGER PRINT LABORATORIES SIRCHIE FINGER PRINT 344540-IN 04/30/2018 EVIDENCE COLLECTION 100-22-6210 236.79 Vendor SIRCHIE FINGER PRINT LABORATORIES Total: 236.79 Vendor: STEINER ELECTRIC COMPANY STEINER ELECTRIC COMPANY S006005310.001 04/30/2018 24V Power Supply -Tower 3 510-31-6110 266.60 Vendor STEINER ELECTRIC COMPANYTotal: 266.60 Vendor: SULLIVANS SULLIVANS 6681 04/30/2018 WINDOW TINT DISPATCH 100-23-6210 200.00 Vendor SULLIVANS Total: 200.00 Vendor: SUNNYSIDE COMPANY SUNNYSIDE COMPANY 186428 04/30/2018 tire valve 501 510-31-5370 26.59 Vendor SUNNYSIDE COMPANY Total: 26.59 Vendor: TOPS IN DOG TRAINING CORP TOPS IN DOG TRAINING CORP 19804 04/30/2018 CANINE TRAINING 100-22-6310 615.97 VendorTOPS IN DOG TRAINING CORP Total: 615.97 Vendor: TRAFFIC CONTROL & PROTECTION INC TRAFFIC CONTROL & 92114 04/30/2018 street signs 100-33-6110 878.00 TRAFFIC CONTROL & 92220 04/30/2018 24 year signs 100-33-6950 33.50 TRAFFICCONTROL& 92261 04/30/2018 handicap stencil 100-33-6110 85.00 TRAFFIC CONTROL & 92304 04/30/2018 street signs 100-33-6110 265.25 Vendor TRAFFIC CONTROL &PROTECTION INC Total: 1,261.75 Vendor: ULTRA STROBE COMMUNICATIONS INC ULTRASTROBE 073894 04/30/2018 switch312 100-22-5370 33.90 Vendor ULTRA STROBE COMMUNICATIONS INC Total: 33.90 Vendor: UNITED LABORATORIES UNITED LABORATORIES INV219943 04/30/2018 stock 100-33-5370 243.17 Vendor UNITED LABORATORIES Total. 243.17 Vendor: WATER PRODUCTS -AURORA WATER PRODUCTS -AURORA 279737 04/30/2018 Brass 510-35-6110 2,578.83 Vendor WATER PRODUCTS - AURORA Total: 2,578.83 Vendor: WILKENS-ANDERSON CO WILKENS-ANDERSONCO S1171877.001 04/30/2018 Work Gloves 510-32-6110 108.26 Vendor WILKENS-ANDERSON CO Total: 108.26 Grand Total: 83,563.35 4/25/2018 10:46:03 AM ExpenseApproval Register Fund Summary Fund Expense Amount 100 - GENERAL FUND 43,922,84 270- MOTOR FUELTAX FUND 21694*16 510 - WATER/SEWER FUND 33,42236 620- INFORMATION TECHNOLOGY FUND 3,523.59 Grand Total: 83,563935 4/25/2018 10:46:03 AM Packet: APPKT01141- 4-3048 RECT INVOICE MICHrl q...a r.....�.. r ....,� zy Bill Hobson, Director of Parks and Recreation McHenry Recreation Center 3636 Municipal Drive McHenry, Illinois 60050 Phone: (815) 363-2160 Fax: (815) 363-3119 www.ci.mchenry.il.us/park recreation AGENDA SUPPLEMENT DATE: April 30, 2018 TO: Mayor and City Council FROM: Wayne Jett, Mayor Bill Hobson, Director of Parks and Recreation John Birk, Chief of Police RE: Green Street Summer Kick Off/Modern Day Romeos Anniversary Fan Fest ATTACHMENTS: Event Proposal Site Layout AGENDA SUMMARY: The City of McHenry has been approached regarding a potential one -day street festival event. D.0 Cobbs owner Dan Hart and well-known local band Modern Day Romeos are proposing to host their 8th annual Anniversary Fan Fest on Green Street on June 2nd, from 12pm to 11pm, with closure of Green Street extending until 12am June 3rd to allow for street clean up. The fest is proposing outdoor alcohol sales from 2pm —11pm and live music during that same time frame. BACKGROUND: As stated above, this would be the 8tn annual Modern Day Romeos Anniversary Fan Fest. In previous years the event has been hosted on Williams Street in downtown Crystal Lake. The previous festivals have all been structured in an extremely similar fashion to what is being proposed here in McHenry. The attached event request and proposed event layout identify the closure of Green Street from Waukegan Road north to approximately the location of The Gambler. A stage would be erected on Green Street adjacent to Buddyz, just south of the Green Street Bridge. A food court with food trucks and local food vendors would be established in the parking lot in front of the former McHenry Savings Bank. This would also be the location for the Police Department Command tent. This area would be cordoned off with steel special event barricades. The event area would extend north to the location of The Gambler where the road would be closed off directing vehicles into the central municipal parking lot. The event is presented by D.C. Cobbs and a beer trailer is proposed to be set up on the street adjacent to the restaurant. On -street alcohol service and open carry in the event area is included in the request, from 2:00pm — 11:00pm, and this permission would be extended to other businesses on Green Street with the caveat that their sales be inside of their businesses and under the same wristbanding and open carry guidelines being approved for the event. This timeframe also mirrors the live music schedule that is a part of the event proposal. ANALYSIS: The event is being proposed in the City of McHenry for two reasons. First, there was a conflict with the Crystal Lake location that would not allow for the requested date and; second, as a result of the success of McHenry ShamRocks the Fox St. Patrick's Day event, in which the band participated. This event hopes to capture some of that same energy and success that was attained in our town last month. The Mayor has personally reached out directly to businesses on Green Street and, particularly the ones that serve alcohol, have expressed their support. Each business will be responsible for their own wristbanding, which allows patrons to bring alcohol onto the street. Only beer, wine and malt beverages will be allowed outside and no glass bottles or containers will be allowed on the street. Staff has met with the event organizers and with the Police Department as well to clearly spell out expectations and responsibilities of each entity. While identified crowd size is between 1,500 and 2,000, for planning purposes the city has estimated crowd size between 2,500 and 3,500. The City of McHenry will take on street closures and event barricading as well as maintaining a police presence at the event. Barricading will include security fencing on the bridge and along the water. Any costs incurred by the City of McHenry will be billed to the event organizers. As an initial estimate, non -Police City services are calculated at $500 and Police services at $4,000. DC Cobbs will be required to obtain a Special Event Retailers Liquor License from the State of Illinois and the City of McHenry. RECOMMENDATION: Therefore, if Council concurs, it is recommended that a motion be considered to approve: 1) the closure of Green Street from Waukegan Road to The Gambler from 12:OOpm, Saturday, June 2"d until 12s00am, Sunday, June Ve 2) DC Cobbs obtaining a Special Event Liquor License from both the State of Illinois and the City of McHenry for the event; and, 3) permitting the open carry of alcoholic beverages in plastic cups on Green Street in the event area, as depicted on the attached map, on June 2nd from 2*00pm—11:00pm. PROPOSAL FOR D.C. COBBS PRESENTS.. MODERN DAY ROMEOS ANNIVERSARY FAN FEST For the past seven years, Modern Day Romeos has held a free fan appreciation music festival to celebrate their anniversary. The first year was wildly successful, and every year since we have averaged 1,500 to 2,000 people. For the past two years we have partnered with the Raue Center in downtown Crystal Lake. We overcame the challenge of shutting down the entire street in front of the theatre, convincing surrounding local businesses to participate. We had 1,700 people, sold out of beer, and most importantly, complied with all of the rules and regulations of the city. In the 7 successful years of putting on this festival, we have not had one incident. However, the is a first time for everything, so every year we proactively hire several police offers to be onsite and at entrances. Behind our stage, we leave enough room for emergency vehicle accessibility in case of an emergency. The Raue Center in Crystal Lake is going through multiple management changes and is in the process of tough negotiations with the City of Crystal Lake for debt retirement and ownership A the building. Because of this they cannot handle our festival this year, but already want to book it for 2019. I have been friends with Dan Hart of D.C. Cobbs for many years. We have played his street festival in front of his Woodstock location multiple times with great success, so I knew if we were going to do this street fest somewhere else, I could trust his experience and advice. He said that Woodstock would be fun, but brought up trying to do it in front of his McHenry location. Modern Day Romeos has played Fiesta Days many times, and just played the first annual St. Pattys Day parade. We have even played The Gambler with our acoustic duo for over a decade. McHenry is one of our homes and love the direction the town is going in trandformation, improvement. There is a buzz about McHenry and we would not only like to be a part of it, but to enhance it. Dan Hart is on the cutting edge of marketing and promotions and knows how to put together fantastic events. I firmly believe if we pair the past seven years of our fests' successes with Dan Hart's vision we can really bring, not only the McHenry community together for something memorable, but bring a lot of new faces (and pocketbooks) to the downtown area as well. • D • , • The event will be held on Saturday June 2nu • We would like to close down a portion of Green St. from Buddyz Pizza to The Gambler from 12pm to 12am. • We will have snow fencing/city blockades to enclose the area and only allow alcohol within that premise. • There will be portable bathrooms to accommodate the crowd • We are sponsored by Chas Herdrich and Miller/Coors so we will have their support. • Liquor License will be used through D.C. Cobbs McHenry • We will have a 21+wristband/stamp station to get tickets for alcohol sales • We will have continuous live music switching from the rooftop of D.C. Cobbs McHenry to the main stage, if front of Buddyz Pizza. The live music will start at 2:30pm and will end at 11pm to comply with the noise ordinances I have experienced with McHenry Fiesta Days. • Here is the live music schedule to this date 2 ;3-13 - Live boo€iota rnusic provided b,f I itA 3:304:30 - TBA -:30-5prn — Chan eove€; --- Live Rooftop music. provided by'I BA 5-6pm — Gregory Robert �-6.30 � Changeover --- Live Rooftop music provided bv _ios € Pal -ter so€� 6:30-8pm Gina Gonzalez and the Wingmen <;-9prn Changove€. — Live Rod` Wp music provided by Marc ,asses Danny Vin%age 941pm Modern Day Romeos • Local food vendors will be invited to set up in the parking lot of the bank across the street from D.C. Cobbs. • We will also enocurgae, free of charge, local business to setup booths todisplay/sell their dry goods and services. • D.C. Cobbs and Modern Day Romeos will be responsible for street cleanup. • During the day we would like to have face painters and other small activities for families. - . -1.„_t - AIL MW 4 1 ,� F Road Closure �+ Beer Sales '► 4 �`, �• c � Steel Barricades �• ', l � t�. w 'ti► 4 �, Stage • • ' Food Vendors Val Toilets 1 4 Command Post ! Ilk! A • Steel Barricades 4 Ok�. i MCH Bill Hobson, Director of Parks and Recreation McHenry Recreation Center 3636 Municipal Drive McHenry, Illinois 60050 Phone: (815) 363-2160 Fax: (815) 363-3119 www.ci.mchenry.il.us/park recreation AGENDA SUPPLEMENT DATE: April 30, 2018 TO: Mayor and City Council FROM: Bill Hobson, Director of Parks and Recreation RE: Expansion of Green Street Cruise Nights —Request for Closure of Green Street ATT: March 5, 2018 Green Street Cruise Nights Agenda Supplement AGENDA ITEM SUMMARY: On March 5, 2018 Council approved a number of items for the continuance of Green Street Cruise Nights. A copy of the agenda supplement is attached. The purpose of this agenda item is to consider a request from the hosts of Green Street Cruise Nights, Financial Dynamics, to expand a select number of cruise nights on to Green Street. To accomplish this, the City Council would need to approve the closure of Green Street from Illinois Route 120 to Waukegan Road. BACKGROUND/ANALYSIS: For the past several years, Paul Letizia of Financial Dynamics, Inc. and a group of volunteers have successfully hosted Green Street Cruise Night, on Monday evenings in the municipal parking lot located behind the Green Street Cafe and the McHenry Savings Bank lot. Activities involved with the event include a deejay for announcements and music, a select area for vendor tents, and live music. As in past years, the McHenry Kiwanis Club, Kiwanis Key Club, Northern Illinois Streeters Car Club will assist with the event. In an effort to expand the success of this event, and to provide more exposure to the businesses along Green Street, the event organizer has requested that Green Street be closed and used for the event on the following dates — June 11th, July 9th, August 13th, September 10th and October 15th. As requested, the street closure will begin at 5:00pm and end at 8:00pm and will include both sides of Green Street from Illinois Route 120 to just south of the Green Street bridge. Appropriate signage will be put in place notifying drivers of the closure on each of the dates and any costs for services will be paid by the event organizers. Finally, Mayor Jett has spoken with the businesses on Green Street to gauge their concerns about this closure and there has not been a single negative comment to date. 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 frscally responsible mamrer. RECOMMENDATION: Therefore, if Council concurs with this request, it is recommended a motion be made to approve the closure of Green Street from Illinois Route 120 to point south of the Green Street bridge from 5:OOpm until 8:OOpm on the following dates - June llth, July 9th, August 13th� September loth and October 15th nacHenryj;� Bill Hobson, Director of Parks and Recreation McHenry Recreation Center 3636 Municipal Drive McHenry, Illinois 60050 Phone: (815) 363-2160 Fax: (815) 363-3119 www.ci.mchenry.il.us/park recreation CONSENT AGENDA SUPPLEMENT DATE: March 5, 2018 TO: Mayor and City Council FROM: Bill Hobson, Director of Parks and Recreation RE: Green Street Cruise Nights ATT: Area Parking Map List of Theme Nights AGENDA ITEM SUMMARY: Request to hold 2018 Green Street Cruise Nights on Monday evenings from 6:00 PM to 8:30 PM, from June 4 through October 15, in the Green Street Municipal Parking lot. BACKGROUND: For the past several years, Paul Letizia of Financial Dynamics, Inc. and a group of volunteers have successfully hosted Green Street Cruise Night, on Monday evenings in the municipal parking lot located behind the Green Street Cafe and the McHenry Savings Bank lot. Activities involved with the event include a deejay for announcements and music, a select area for vendor tents, and live music. As in past years, the McHenry Kiwanis Club, Kiwanis Key Club, Northern Illinois Streeters Car Club will assist with the event. Mr. Letizia is also requesting permission for the following: 1. Election style 18" x 24" advertising signs in four locations the day of the event at Green Street &Waukegan Road, Green Street &Elm Street, Elm Street &Richmond Road, and Pearl Street & Richmond Road and at authorized locations two weeks prior to the event. 2. A small inflatable sign posted at the entrance to the Municipal Lot off Route 120 posted and removed the night of the event. 3. Waiver of $175 temporary sign variance fee. Proceeds from the event help to support the McHenry Kiwanis Club and annual Back to Family Outdoor Movie Night events. ANALYSIS: This event is popular and has become an annual tradition in the community. Staff has received no reports of incidents from past events. Minimal city support is required for the event, which includes barricades, additional trashcans, and picnic tables. Some Police support may also be necessary. RECOMMENDATION: Therefore, if Council concurs with this request, it is recommended a motion be considered to approve the annual Green Street Cruise Night event 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 nran►►er. 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 AGENDA SUPPLEMENT DATE: April 30, 2018 TO: City Council FROM: Derik Morefield, City Administrator Carolyn Lynch, Finance Director RE: Adoption of the FY18/19 Annual Budget AGENDA ITEM SUMMARY: The purpose of this agenda item is to request the formal adoption of the FY18/19 Annual Budget for the City of McHenry. BACKGROUND/SUMMARY: The City's annual fiscal year budget covers the period beginning May 1st and ending April 30th and contains information relative to estimated revenues and planned operational and capital expenditures for the various funds of the municipality for the identified fiscal year. Although the budget is not formally adopted by the City Council until April of each year, the budget development process officially begins each October with the preparation of the annual tax levy, which is used to fund many of the current programs and services, along with the development/update of the five-year Capital Improvement Program (CIP). The budget preparation process provides the various divisions and departments of the City with the opportunity to review accomplishments, set goals and objectives, and identify the means for accomplishing these goals and objectives. Once developed, the draft budget is transmitted for review by the City Council in early March, and a number of opportunities are provided for Council to review and comment on budget requests. These included two Finance and Personnel Committee Meetings as well as a Committee of the Whole Meeting dedicated to a review of the entire final draft of the budget document. That culmination of this extensive review is the development of the attached final FY18/19 Annual Budget document which is presented in a format that is easily navigated by the reader. Each fund is clearly identified, summarized, and presents a multiple year history of actual The City of McHenry is dedicated to providing the citizens, businesses and visitors of McHenry with the highest quality of programs and services in acustomer-oriented, efficient and fiscally responsible manner. expenditures, along with proposed expenditures for FY18/19. Most importantly, the budget as presented is financially conservative and operationally balanced. RECOMMENATION: Therefore, should Council concur, it is recommended that a motion be made to adopt the FY18/19 Annual Budget as presented. �Via ..T.r 1+�4r,.� E I� WELCOMES YOU! n0If ;'I'I LWA i %, - � 1y i ,IRS T r:� I - 7 if i..' if�•�r �� ti1 , A, nd �a. or Tf� far City of McHenry, Illinois FY2018/2019 Annual Budget Table of Contents Letter of Transmittal Introduction..............................................................:........................................................ 1 Elected Officials, Department Directors and Primary Administrators. . E 0 a 0 2 2 a 0 0 A 0 2 History and Demographic Snapshot of McHenry............ ... MEN sommomwommom mom EKEEME KmmWffKE 3 City of McHenry Strategic Plan Summary. . a 0 a a 0 9 a a 0 a A 0 a 0 K 0 a a 2 a 0 a 0 a W a a K a a 2 a 0 1 0 a a 0 0 a a 0 0 9 0 a K ff a a 0 a a 0 a a 5 GFOA Award for Distinguished Budget Presentation FY17/18........................ 10 Budget Document Guide...... KROMEREEM moo MEN MENNEN MEN KEE KEE accommamomwo MEN NEER 11 Basis of Accounting and Budgeting..................................................................... 12 Budget Process Summary............ alaffiNg 11woommommon nommommak KEE own WEENMNSIG 13 Budget Process Timeliness. low sumiselom too MOKKNE mommosomm KNRARKuEZmffKmVV OEM mum SERIES son SERIES Mae& 15 City of McHenry Organizational Chart...... KmmwffRplmmm4 NOR oil ZEN KINEEN MISNOMERS SERIES NONE 17 PersonnelSummary...... offineselaffoll munduaffiffiff MEN EKE MENNEN MENNEN MKRMMMommlKgmmff MEN EMKOMMENE son raw MEN MEN REIMBURSE 18 Staffing Needs Summary............ Mae moommsomb SERIES EBB ONE SEE RIVERS SERIES Mon Rom mom mom KEE EKWOKMNEERIM mom SENSE 19 Fund Structure Overview............ EMEREEZENERMENE KNO map mum NEEMENEOV powmARARR OWN ago KKR ENO mommommon BEFORE mom 22 Chart of Accounts Overview......... RXERON monglo ROM PAWNOR moo ROMERO woompoIX4 KRONOR MENKE 25 Summary of Revenues &Expenditures —All Funds ....................................................... 37 Summary of Proposed Revenues — All Funds...... 051 weagovogn RONNIE own moo Mae Nggmxgoppggm won spol 38 Comparison of Budget vs. Proposed Revenues — All Funds... ... Reagan waffounswo wasoNo Mae 39 Summary of Revenues and Other Financing Sources — All Funds... ....ff. mom SZKORKEN 40 Summary of Proposed Expenditures — All Funds...commit ..................... mom ......SIEMENS 41 Comparison of Budget vs. Proposed Expenditures — All Funds ........................ 42 Expenditures by Function — All Funds. . R 0 a 0 a I I a a I a a a 0 0 a a 5 0 R a R a 1 0 a a 0 2 1 1 a I R a 8 a a R a 6 6 a a a I a 6 1 1 6 a a a a a I a I a a 43 General Fund Revenues, Expenditures &Fund Balance Summary ............................... 44 General Fund Overview....................................................................................... 45 General Fund Revenues, Expenditures and Fund Balance Summary............... 45 General Fund Revenues — Budgeted, Estimated, Proposed ............................... 46 General Fund Expenditures — Budgeted, Estimated, Proposed ......................... 49 General Fund WE, Fund Balance............................................................................... 51 General Fund Operating Budgets...................................................................................... 54 General Fund Operating Budgets Overview....................................................... 55 Personnel Summary of Wages — All Funds......................................................... 58 General Administration. . 0 0 a ff a I a 0 0 1 ff I ff a a a 0 0 1 a K I a a 1 0 9 a a a a K 0 A a a 9 0 0 0 d 0 0 0 a a I a 0 a a a V 0 0 a B a V I I a a a B 1 9 0 0 a I a a a 0 2 0 0 0 a a V a a a 1 62 ElectedOfficials......... mum ffiffinsis SERVER led OKKEAN mum SOMBRE arm MEMNON who teammates mom mom OEM ROMERO &tests EffaamKoas &SERIES 69 Community Development...... KREARM MENNEN Kom Ban ORKEEN EMBEEN KEE KENNON mom mummosmazzoommm mom EKE OREBRO KRKEEE ENNA 72 Finance... ... nowmmawmmmffmmmz NOREEN NESEEKERROME MENNEN INSINCERE MEMBER SERIES mossommom OREBRO MEN KEE KEE KKR Koff BERIBERI a 0 0 0 0 0 R 2 a a 0 79 Human Resources...... EKKEEMENIstu Now ORKEEN ESk0EKKffRmRmmmm KEE mum commommon nommummon KENSMI man MAE mommoommo sommin MORK 86 Economic Development...... .....ff MEN MOKEEMANNEEZENE KIM EKE ffowmEmiloaffwKffm KEN mom mom mom mom SERIES OWN EKE mom ffKmwffffm 93 PoliceCommission......... SERIES Now Rom I 1 0 9 0 a a 0 0 a I a 9 1 a a 8 0 a E I a I a a 0 1 R a a R a a 5 a 0 1 0 A a a 8 0 2 1 A no a 0 0 0 V A 0 0 1 a a 0 0 9 R 1 0 1 %no a 1 0 a I a 100 Police............... ORO SERIES MENINEARE MEN KEE ONE 0 0 0 K E 0 a a 0 0 a 0 a 0 0 A 0 A K 0 0 a 0 E K a K a a A ff 0 K K a 0 0 K a 0 0 0 0 0 0 A 0 A 0 0 0 0 0 0 0 0 0 K K A ff a 0 0 K 0 0 a A 0 0 0 K 0 so 103 NERCOM (Dispatch)...... BROKEN Mon EKE ORKEEN KEE KEE EBB EKEEME KENNON KEENER Emma 120 Public Works — Administration. . a a a a 5 0 0 6 a ff 0 a I a 0 0 1 a 1 5 ff 1 5 0 0 ff I I a a a a 5 5 a 5 1 1 a a 5 1 a a I a a a 6 0 a a 6 1 1 a ff a 0 9 a a 0 0 5 anowesson 129 Public Works — Streets.......................................................................................... 137 Parks and Recreational. MENEEMIKKEENEMENIM ENEREENERSEE KKKEEKOWNEEN KEENER MEN EKE KENNON NEENEERKERES KKR EKKENE RECESSION 145 SpecialRevenue Funds................ MEMNON RZKOKE mom KEE NEREKKEEN ENEREENEREEN EKKEEN arm MEN onoNKREERmffKmmxmmmlzmmffff Ann REMAINDERS 159 Tourism................................................................................................................... 160 Pageant..................................................................................................................... 103 and... ... mum Kom ass museum Xxxxxammu KKORAN Oda mammas ass DNA KMK mmasam REM MEN Monson MORMON HBO wan Sam NOR MEN MEN sommom man MEN OWN Mammas NEWE 166 CivilDefense......... Pat Saloum MEN OEM MEN MEN angles man mum Koo mammas was unwasm won mammas Kwwmowxxw mom mom MKMWmWKKW WVKAZI RON Enemas 169 AlarmBoard... ads RERMMMEME Ran mammas mom Hanson ago mom man Nam man affmasuffiew ox" was Ron Kom ARE Sam Was was ENV KEN MaKaffemassoms 172 Audit........................................................................................................................ 17 5 Annexation............................................................................................................... 178 MotorFuel Tax...... Rpm MEN Sam am& do mesa Sam ass gas mom Mae law low 0 0 0 0 0 Oman Won Ran ff ff Oman sea age man now No ff gas ff we Sam WEI 0 2 on an a a Oak 181 Developer Donation. . a a 0 1 9 & K a X A k a W 0 a a a K K a 0 a R 0 a 2 a a a 2 6 2 1 a 0 0 a a 0 0 a a a mom mammas waRoma NAMARA mom son KEN mammas us% mom ERE Eon mom 184 Tax Increment Finance... Mae NSA Monson wommas MAN ARM was KKOMME mom awn owmamakmo Kom OaKNAKsud Ann momikaRK&MAM sea mum mom NINE 187 Capital Projects &Debt Service Funds............................................................................... 190 Debt Service Fund... EKKAME tax mom Ono Manama mom samommams Ems Monson mom Mon ass mom man Eno mammumpmummmems 191 Recreation Center Fund...... Monson mom mom MEN mmawm awn We XNAKNAWWWWWWR wmwmpm Him Was KEWMAM REM mom mom Oman 194 SpecialService Area#4.......................................................................................... 201 Capital Improvements Fund... Oak MIKAMS mum RAN mom 422 mom assess KOM ommommannamagam Eno mamuggsaw lonomm momwaaammma 204 Capital Equipment Fund......... NOR mammas emu owl mom Sea man mass Emu Rpm ORB Ito ORR Rpm son ffEKEEMENEEN 207 EnterpriseFunds................................................................................................................. 210 Water & Sewer Fund...... musame nowwwo Rpm Ban ERE Sam mammas Ems Koo Nam ass man ERE non mommal mom man MEM MEM NONE 211 Public Works - Water... mom Bataan mom mom son Sao affmamm mom mum Enwamff ORKERE mom mom ENRON 214 Public Works - Wastewater......... mom awn ERE Ems ERE mum sommom Nam mammon mammal OWN ENO Eon KEN mum NOREEN mom moo mom Monte 221 Public Works - Utility............................................................................................ 228 CapitalDevelopment...... son mom woo was newwwwxxz Emu Kom mammas ME V K K N a I a a 9 a 0 1 0 N a V a 0 a a a K a a A 6 a a 0 a 1 6 a I a 0 0 a 9 B 0 a a 0 0 0 0 0 0 a x a a 234 UtilityImprovements......... sea wasaffin all out now man man ago mom NOREEN MENNEN mosses ass mom MEN MEN awn Ram EKE Eon MEN Non Emonsm 237 Marina Operations... ... Ann mmRZKffmmm KRA smazzaaam Dan mom mom sea mom ERE RED MEN a assoppoopwo mom Now Emmonamomms 240 InternalService Funds....................................................................................................... 243 Employee Insurance......... ONE mom Mao man Mae man sea man Ram mom mom ass mom Hanson mom muffmas Monson ffffv sawsammom ME* txKkwgmKsm 244 RiskManagement... ... KNOWKWammand ankNERMOM emu ass affma2mmum mom @no mom man mosessammass man man Ram two summon mumammanKENKAR 247 InformationTechnology....................................................................................... 250 FiduciaryFunds................................................................................................................... 254 Employee Flexible Spending.................................................................................. 255 DevelopmentEscrow............ ... Ron age Ems mom son non WEE man SERIES Non mop WHO amp won mmummmamm ORKAWAkkKANNERN Ram man none 258 RetainedPersonnel...... MENNEN son was Exualm Now won moo PREPRO Raw EKE Nam ZEK&EK mammas sea PER was mammas Sam mom mum Koff axammuNKEN 261 RevolvingLoan......... nowass mom Ram MONSON mammas man mammas NKKXWB Ram MEN woo KSKKON mammas mammas San mom son man ago man MEN can ason 264 PolicePension... ... man Nam AKE mmamazmmm mammas mom Ram ass Random ass man man mom BORNEO wan son now Eon MORENO MENNEN 267 Supplemental Information.................................................................................................. 2 70 Financial Policies Overview................................................................................... 290 Fund Balance and Reserve Policy...... EKE OEM KEN MARINE OWN mum musaffis elm mum woo Mon mom Eon Nam Nam mum Enwasawwommomm 292 Capital Improvement Program Financial Policies...... mom but mom Sam mum not mom manage OEM Mom awn PEEWEE 301 InvestmentPolicy......... EKKEKKakwmam mum Hanson sufflum mom HBO 231 mum ass mammum MEMNON MENNEN ff ED KKK mom WEE mom ff Koff 0 MEND MOEN ON 302 Purchasing Policy and Procedures... SKSMOR on* mom ass man was mummmmems ORROOKMEN RKERARKEN KNOMEN Eno mom EKE OKKAMEN 309 Glossaryof Terms................................................................................................... 313 CITY QP _/cHe H E A R T O F T H E F 0 X DATE: Apri130, 2018 T0: Honorable Mayor and City Council Citizens and Businesses of McHenry FROM: Derik Morefield, City Administrator Carolyn Lynch, Finance Director RE: FY18/19 Annual Budget Mayor, City Council, Citizens, and Businesses of McHenry: It is our pleasure to present for your review the Fiscal Year 2018/2019 Annual Budget. On the following pages you will not only be able to identify the municipal organizational structure and how municipal revenues are derived and expenditures disbursed, but also learn more about the financial policies that drive municipal budget decision -making. On a more detailed level, the reader can also identify the FY17/18 Accomplishments and FY18/19 Goals and Objectives for each operating fund and the continued inclusion of Performance Measures in an attempt to gauge the success of specific programs or operations within the municipality. The City's annual fiscal year budget covers the period beginning May 15t and ending April 30th. The budget document itself, upon completion, contains information relative to estimated revenues and planned operational and capital expenditures for the various funds of the municipality for the identified fiscal year. Although the budget is not formally adopted by the City Council until April of each year, the budget development process officially begins each October with the preparation of the annual tax levy, which is used to fund many of the current programs and services, along with the development/update of the five-year Capital Improvement Program (CIP). The budget preparation process provides the various divisions and departments of the City with the opportunity to review accomplishments, set goals and objectives, and identify the means for accomplishing these goals and objectives. Every employee of the municipality plays a role in the budgeting process - be it formulation, preparation, implementation, administration, or evaluation. Ultimately, Department Directors, through the City Administrator, are accountable to the City Council and to the residents of McHenry for the performance of departments in meeting goals and objectives, and for the diligent fiscal management of funds, as set forth in the budget document. Department Directors, with input from their respective managers, superintendents and departmental staff, analyze historical data, review existing operational needs, and project anticipated operational needs in order develop line -item budget requests that allow them to maintain or enhance the level of programs and services within their departments. These detailed requests are then submitted to the City Administrator and Finance Director and meetings are held with Department Directors to review and adjust requests based on identified need and anticipated revenues, keeping in mind the overall services that the municipality must provide to residents. As always, it is the goal of the City Administration to present Council with a balanced operating budget which is achieved in the attached information. While it is not possible to identify every success achieved during FY17/18, the following are highlights of accomplishments: • Introduction of Nixle community alert system citywide to provide residents with timely notifications regarding a variety of activities. • Engaged Sterling Codifiers to undertake the "codification" of the McHenry Municipal Code. • Implemented "Transparency" page on the municipal website. • Completed review and implementation of new "teardown" ordinance. • Implemented coordinated Community Development and Economic Development site visits in an effort to further business retention and expansion. • Introducted new time and attendance software to reduce use of paper time sheets and increase efficiency. • Continued to work to find alternative methods for residents to pay bills electronically as well as have the ability to view outstanding charges online. • Recognized for the 3rd consecutive year by the Government Finance Officers Association (GFOA) with the Distinguished Budget Award. • Entered into partnership with the Illinois Public Benefit Cooperative (IPBC) to be able to achieve more competitive healthcare costs for employees and the City. • Implemented BenefitSolver open enrollment system, increasing efficiency of open enrollment of benefits for employees. • Managed completion of a Classification and Compensation Study by GovHR for non - bargaining unit employees. • Continued to promote important economic development -related activities through the McHenry Market Pulse. • Participated as a host of the 2nd annual Manufacturing, Trades and Industry Expo. • Created a New Business Packet and Business Recognition Program. • Established a new Economic Development Commission. • Coordinated with local businesses to develop and implement the Safety Town project. • Supported the local of several new businesses to the community - including the reopening of the McHenry Downtown Indoor Theater and DC Cobbs - and worked to retain and expand existing businesses. • Transitioned new Police Department leadership team. • Developed and implemented a multi -tiered plan to address the opioid and heroin crisis in the community. Made twenty-eight "saves" utilizing Narcan during 2017. • Achieved accreditation for the Sth consecutive time through the Commission on Accreditation for Law Enforcement (CALEA). • Established a full-time Public Relations Officer in the Police Department for the development and implementation of an aggressive community outreach program. • Continued focus on School Safety program development in cooperation with District 15, District 156 and the McHenry Township Fire Protection District. • Awarded $1,162,799 in reimbursements from the State of Illinois for the Dispatch Center construction costs. This represented 85% of construction costs of the center. • Answered 35,696 Emergency 911 calls and 96,028 non -emergency administrative calls through NERCOM. • Completed construction and implementation of the South Wastewater Treatment Plant (SWWTP) consolidation project. • Awarded "Tree City USA" for the 23rd consecutive year. • Completed a $1.1 million 2017 Road Program and performed all engineering services in- house with assistance from Public Works Superintendents and Project Engineer. • Management of consultant contracts for the Curran S-Curve and Pearl Street/Lincoln Road roadway projects. • Planted 302 trees in parkways and removed 127 trees infected with the Emerald Ash Borer. • Produced 783 million gallons of potable water, changed out 800 water meters, responded to over 5,000 JULIE locate requests. • Achieved 21st consecutive annual Fluoride Award from the Illinois Department of Public Health. • Achieve 100%compliance with the NPDES permits. • Cleaned and televised over 209,000 feet (39 miles) of sanitary sewer main. • Repaired 9 water main breaks, repaired 15 water services, replaced 15 lead services, responded to 17 possible sewer backups, replaced 25 open hole sanitary frames and covers. • Participated in a joint -bid with the Village of Huntley and Village of Cary for sanitary sewer main lining and sanitary manhole lining work. • Expanded recreation programming totaling 400 sessions of general recreation programs, trips an events with more than 3000 registrations. • Introduced a number of new recreation events. • Expanded youth athletics programming with over 290 program sessions and 1,025 youth participants. • Increased annual pool pass sales to Merkel Aquatic Center by 396, from 408 to 804 with a total of 9,340 visitors to the facility. • Completed numerous maintenance improvements to the city's expansive parks system with limited staff and resources. • Increased Recreation Center memberships to 2,500 with total visits of 73,716. • Successfully planned for the expansion of the Recreation Center parking lot. The following is a snapshot of the FY18/19 goals and objectives have been identified: • Complete "codification" of the McHenry Municipal Code. • Undertake and complete physical restructuring of departments - relocation of Community Development to 1st floor and Mayor, Administration and Human Resources to 2nd floor. • Engage taxing jurisdictions to consider extension of the Downtown Tax Increment Finance District expiration time. • Completed development and implement community -wide code enforcement strategy. • Implement aggressive social media campaign to inform residents regarding various property management requirements. • Creation of a procedures manual for all duties within the Finance Department and undertake cross -training within the department. • Implement a new electronic payment method for all bills to increase efficiency. • Complete implementation of new time and attendance software and integrate this with Tyler Financial Software. • Implement Family Medical Leave Act (FMLA) software. • Implement PowerDMS software for document management. • Develop and implement a new performance management system that reduces subjectivity and provides opportunities for director recommended merit increases for non -bargaining unit employees. • Continue development of succession plans for various departments. • Maintain focus on addressing opioid issues in the community. • Coordinate large scale emergency event with school districts, McHenry Township Fire Protection District and various other municipal entities. • Continue to expand Police Department public relations program. • Install Next Generation 911 phone system in NERCM. • Establish and implement an actionable timeframe for CALEA Accreditation of the dispatch center. • Obtain Emergency Medical Dispatch (EMD) ACE Accreditation through Priority Dispatch. • Begin data collection for Storm Sewer GIS Database. • Manage variety of public infrastructure projects occurring in FY18/19. • Continue maintenance of city rights -of --way including drainage improvements, sidewalks and curbing. • Plant 80 trees in City parkways. • Replace 1,000 water meters. • Continue proactive maintenance of the city's water and sewer conveyance systems. • Reduce inflow and infiltration to the city's storm sewer system. • Successfully open the Miller Riverfront Park Boat Launch. • Develop factual information for distribution to residents in considering a Recreation Center facility expansion referendum. In closing, the City of McHenry has many great things happening with the potential for so much more. Our outstanding parks system provides residents and visitors with a variety of passive and active recreational and cultural opportunities throughout the year. Our stable manufacturing and retail base creates skilled, high paying jobs and provides goods and services here, in McHenry, instead of having to drive elsewhere for them. Our downtowns, like all downtowns, continue to present challenges as they continue their evolutions but we will continue to strive to work with property owners to match right entrepreneur with spaces that are available. The Fox River remains a source of unlimited opportunities for creating economic growth recreational opportunities. While the City continues to find itself in a strong financial position we must continue to monitor economic threats - such as the State Budget crisis and economy overall - to ensure that we are not caught off guard in the future. Continuing the practice of prudence when it comes to estimating revenues, limiting expenditures as possible, and evaluating and implementing efficiency in operations are all important to maintaining a sound financial plan. In addition, with the newly implemented Fund Balance and Reserve Policy there is clear definition in identifying funding required as an "operational reserve", available in response to financial threats, and funding that is "assigned for capital", to be used to implement the tens of millions of dollars in capital project needs of the community. The City of McHenry, led by its elected officials, continue to be excellent stewards of public funds and the FY18/19 Budget, operationally balanced as presented, is a reflection of this commitment. Sincerely, Derik Morefield, MPA Carolyn Lynch City Administrator Director of Finance rr- Elected Officials Wayne S. Jett, Mayor Ward 1 Victor A. Santi, Alderman Ward 2 Andrew Glab, Alderman Ward 3 Jeffrey A. Schaefer, Alderman Ward 4 Scott Curry, Alderman Ward 5 Chad Mihevc, Alderman Ward 6 Patrick Devine, Alderman Ward 7 Geri A. Condon, Alderwoman Department Directors and Primary Administrators Derik Morefield City Administrator John Birk, Chief of Police Ann Campanella, Director of Human Resources Bill Hobson, Director of Parks and Recreation Carolyn Lynch, Director of Finance Doug Martin, Director of Economic Development Ross Polerecky, Director of Community Development Jon Schmitt, Director of Public Works E History and Demographic Snapshot of McHenry McHenry is located in east -central McHenry County, 55 miles northwest of the Chicago Loop and 35 miles from O'Hare International Airport. The City is centered on two major State highways - Illinois Route 31, which runs north/south from Wisconsin to South Elgin; and, Illinois Route 120, which runs east/west from Woodstock to Park City. The City consists of approximately 13 square miles in land area. In 1832 Major William McHenry led an expeditionary force through northern Illinois during the Black Hawk War. Settlement of the Fox River Valley began over the next few years, and on the river's west bank, at the site of an old Indian ford, the hamlet of McHenry established in 1836. The McLean, Wheeler, McCullom, and Boone families were influential in the community's early years. A sawmill, hotel, and ferryboat were in operation by 1837 and legislation creating McHenry County was passed that year, and the village served as county seat until 1844. Gristmills started along newly dammed Boone Creek, and a wagon road entered town from the south in 1851. In 1864, the famed Riverside Hotel was built and still stands today. George Gage, who served as the region's first state senator (1854-1858), owned the lands west of the millpond, and was able to secure the route of the Fox Valley Railroad (afterward a branch of the Chicago & North Western) from Chicago in 1854. Consequently, Gagetown (later West McHenry) began to eclipse the older east side of town containing the Riverside section and Green Street area, once known as Centerville. This can still be detected in the distinct commercial pattern that characterizes McHenry's "downtown." The village incorporated in 1872. Though there were fewer than 800 inhabitants, commerce flourished. By 1876 there were seven churches and over 80 enterprises, including flour mills, harnessmakers, a pickle factory, a brewery, seven saloons, and a newspaper. The newspaper, the McHenry Plaindealer, was in publication from 1875 to 1985. Over the next 50 years McHenry grew slowly. During the 1920's the town became known as a resort destination because of the Fox River, surrounding lakes, and easy accessibility from Chicago. Bands played at local pavilions, trainloads of visitors arrived to tour the famous lotus beds, and summer cottages proliferated along the Fox River. A boat -building industry flourished; marine recreation still remains important. For decades, McHenry took very seriously its title as the "Gateway to the Chain - of -Lakes" and this is still evidenced today in the city's motto "Heart of the Fox River." With the advent of the automobile, State Route 120 crossed the Fox River on a new two-lane bridge. The old wagon trail, now Highway 31, doglegged along the same route for a critical half mile before turning north toward Wisconsin. These configurations effectively relocated the city's commercial center to Route 120, and had the unintended side effect of isolating the original business districts (West Main, Riverside Drive, and Green Street). In spite of its beauty and strong attraction to tourists, McHenry owed her growth to the stability provided by the many farmers who worked the fertile land as well as the establishment of industry with new factories such as Admiral, Borden and The Hunter Boat Company. The Fox River helped facilitate the import and export of lumber, cigars, clay, food products and brewing which all helped draw new residents to the area. The drainage of a large 60 acre pond that previously divided the community in half, contributed to increased development and improved roadways, while the railroad aRowed commuters to find this area the perfect place to settle with their families. A new wave of industry, including automotive components, electronics, and metalworking, swept into town after World War II. The Northern Illinois Medical Center, begun in 1956 as a 23-bed community hospital, evolved into a regional trauma center serving two states. Beginning in the late 1940s, subdivisions were annexed on all sides of the city. By this time, many residents were commuting to work in other localities, including Chicago. McHenry's population tripled from 2,080 in 1950 to 6,772 in 1970, and tripled again to 21,501 in 2000. McHenry's current population is approximately 27,000, including 10,075 households, an average household size of 2.66, and median household income of $68,024. Of the 10,075 households, approximately 7,719 are owner -occupied and 2,356 are renter occupied. The median resident age is 37.1. The City's 2017 EAV was $638,080,968. The City currently has more than 2,000 approved unplatted lots and platted vacant lots. Active subdivisions in the City include: Abbey Ridge, Boone Creek, Burning Tree, Chesapeake Hills, Deerwood Estates, Evergreen Parks, Foxcroft Ridge, Glacier Ridge, Knox Farm, Legend Lakes, Liberty Trails, Lincoln Hills, Martin Woods, Morgan Hill, Oaks at Irish Prairie, Patriot Estates, Prairie Lakes and Preserves at Boone Creek. Total number of businesses in the City is 1,473 and total employment is approximately 19,661, with an employee/residential population ratio of 73:1. The City's three largest employment sectors, by number of employees, are: Healthcare and Social Assistance: 5,136 employees/26%; Retail Trade: 3,139 employees/16% and Manufacturing: 2,418 employees/12.3%. Green Street looking south from State Route 120 (circa 1920's) City of McHenry Strategic Plan Summary Background In the fall of 2013 the City Council and Department Directors participated in a facilitated strategic planning session and the results of this exercise were compiled and presented to Council in the form of the City of McHenry Comprehensive Strategic Plan document that was adopted by Council in August of 2014. In addition to establishing updated Mission and Vision statements, Governing Principles and a Code of Ethics, the plan identified fifty-nine (59) Strategic Goals as guiding principles for decision -making. In the spring of 2016 Staff and Council undertook a review of the plan document with a focus towards ensuring that the strategic plan remain relevant to the activities/actions being undertaken by staff and elected officials, to revisit opportunities, and to identify/introduce any new strengths, weaknesses, opportunities, and threats that may need to be incorporated in to the plan. While regular annual or biannual review of the plan is essential to provide for a structured mechanism of update, the plan itself is a "living breathing" document that consistently shifts as internal and external factors change. As a result of the initia12014 Strategic Planning Session and the 2016 follow-up review session, the following now serves as McHenry's Strategic Plan. The attributes and identifiable goals that it conveys have been identified as essential for the municipality and, as possible, are incorporated into the annual Capital Improvement Program (CIP) and Annual Budget. Attributes are listed in order of importance based on participant feedback. Mission Statement The City of McHenry is dedicated to providing the citizens, businesses and visitors of McHenry with the highest quality of programs and services in a customer -oriented, efficient and fiscally responsible manner. Mission Accountability As a continuous reminder of the mission, a commitment is made to undertake the following actions: • The mission will be read at the beginning of each meeting of the City Council. (City Council) • The mission will be placed prominently in each addition of the City Newsletter. (Office of the City Administrator) • The mission will be framed and posted at major portals within all municipal buildings. (Office of the City Administrator, Department Directors) • The mission will be incorporated in to daily decision -making and included in future municipal planning documents. Examples include the annually updated 5-Year Capital Improvement Program and the annual operating Budget. (Office of the City Administrator, All) • The mission will be added to letterhead, memos, etc. (Office of the City Administrator, All) • The mission will be added to website and other social media. (Office of the City A dministra tor) 5 Vision To make McHenry a community of choice for living, working and recreating for all, with unique natural resources, abundant cultural opportunities, outstanding neighborhoods, and a vibrant and diverse economy. Governing Principles The values and beliefs guiding the actions of the elected and appointed officials of the City of McHenry shall include the following: • Provide an open and honest government. • Establish an environment that fosters open communication, dialogue, and active listening with both internal and external stakeholders and customers. • Ensure quality, responsive customer service. • Enhance the community's quality of life. • Embrace the diversity of a multi -cultural and multi -generational working environment. • Be fair and objective in making community decisions. • Remember that municipal employees, through their individual and collective abilities to provide quality services and programs to the residents, businesses and visitors of the community, are our most valued asset. Code of Ethics In addition to the guidance of ethical behavior for elected and appointed officials provided in the McHenry City Code (Sec. 2-55 Code of Ethics), the following Code of Ethics shall apply: • Avoid illegalities, improprieties and any perception thereof. • Avoid accusations or perceptions of wrongdoing. • Do what makes the most sense. • Do what is right, not what is easiest. • Be fiscally responsible and manage budgets effectively. • Be proactive, look for ways to anticipate and deal with issues. • Seek innovative ways to improve public services and increase efficiency. • Keep the public informed and provide opportunities for public engagement. 0 Strengths.9 Physical assets, supplies, talents, etc. that can assist in accomplishing our vision. Attribute Goal To maintain a balanced budget while protecting our healthy reserves, continuing to evaluate our 1. Stable Financial Position annual levy with the potential keeping it flat as long as our reserves are healthy, per our Fund Balance and Reserve Policy. To develop and continue marketing strategy for the Riverwalk and Fox Reiver by expanding and 2. Fox River developing riverfront recreational areas and business opportunities. Retain and support the position of Economic Development Director to actively pursue economic development opportunities and be 3. Economic Development receptive to zoning changes to allow businesses to grow. Diversity of business types identified as important. To maintain and utilize our 600+ acres of park 4. Parks System/Open Space and open space to provide recreational opportunities for residents and visitors. To cooperate with local and area groups, residents, businesses to have events/recreational opportunities. Develop a S. Public Event Coordination plan that allows feedback from the community and use data to develop future events. Increase marketing of municipal and municipally - supported events. To continue to support staff development and 6. Staff Development provide staff with the tools necessary to be successful in a positive work environment - respecting their knowledge and expertise. To continue to foster a climate of collaboration 7. Inter Departmental Teamwork among departments and within divisions. Weaknesses: Physical assets, supplies, talents, etc. that are deficient and impede the ability to achieve our vision, Attribute Goal To continue to evaluate and prioritize infrastructure needs, continuously work to 1. Aging Infrastructure leverage non -municipal funding, and attempt to identify consistent funding sources. To continue to promote respect and teamwork, 2. Internal Communication find ways to increase meaningful communication and agree to disagree and move on. 7 To define and prioritize technology needs of the 3. Aging Technology municipality and develop and implement technology plan(s). To continuously implement methods for providing enhanced customer service, 4. Public Perception of Government increased information and to make City processes, procedures, intentions, actions as transparent as possible. To develop a methodology for prioritizing code S. Code Enforcement enforcement activities based on Council direction and develop a Code Enforcement Strategy. 6. Public Transportation To continue to coordinate with McHenry County and surrounding communities Onnortunities: Situations that can have a positive effect on the organization if considered or acted upon. Attribute Goal 1. Riverwalk Expansion To review and utilize Riverwalk and Downtown Plans which are already in place and undertake 2. Redevelopment of Central Wastewater additional studies as needed, to ensure Treatment Plant site prioritization and coordination of projects 14 (left). Much of this depends on timing, cost, 3. Miller Point Redevelopment redevelopment opportunities but the City and partners should be prepared to act as 4. Downtown Theater Redevelopment opportunities arise. To evaluate long term feasibility for expansion of the recreation center through assessing S. Recreation Center Expansion community desires and needs with an understanding that future phases are driven by the passage of referenda. To establish the consolidated dispatch facility 6. Dispatch Facility Expansion and continue to promote and attract new customers to the facility. To continue efforts to obtain construction 7. Fox River Access/Boat Ramp permit from the USACE and fund and build the facility. To evaluate and redevelopment the City's 8. Reconstructed City Website and City Council internet website to make it more transparent A/V and user friendly and to take the steps required to be able to either live stream or record stream City Council Meetings. Threats: Opposite of opportunities. Factors that can have a negative impact on local government. Attribute Goal To continue efforts to establish an atmosphere 1. Council -Council, Council -Staff Trust, Respect of respect and trust through open communication and cooperation. All on the same team. To maintain the City's financial stability while establishing a financial threshold at a 2. State Budget Crisis "survivable" level to maintain City services while continuing to monitor State's financial crisis. To explore opportunities for extending the current TIF; coordinate with other taxing 3. Extend the TIF jurisdictions; educate public on benefits of TIF and extension. To develop a comprehensive assessment of all 4. Aging Infrastructure Costs infrastructure and implement a prioritization for replacement - Capital Improvement Plan. To maintain pace of payment on Police Pension and to ensure that we are competitive for S. Pension, Benefit, Insurance Costs insurance and benefits - adjusting employee contributions as necessary. To explore, implement unique opportunities for business incentives for location and expansion 6. Business Incentives that sets McHenry apart as a business -friendly community regardless of the State's issues. L•� GFOA Award for Distinguished Budget Presentation The Government Finance Officers Association of the United States and Canada (GFOA) presented a Distinguished Budget Award to the City of McHenry for its annual budget for the fiscal year beginning May 1, 2017. In order to receive this distinction a governmental unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan, and as a communications device. This is the third consecutive year that McHenry has received the award. GOVERNMENT FINANCE OFFICERS ASSOCIATION Distinguished B u dget Presentation Award PRESENTED 1'O City of McHenry Illinois For the Fiscal Year Beginning April 1, 2017 .. P- ;Ofel Executive Director 10 Budget Document Guide This budget document is prepared with two major objectives in mind. First, to provide citizens and others interested in the City's finances with complete and understandable information regarding the budget. The second is to develop an annual fiscal plan that will assist City leaders in making better decisions and enhance financial accountability. 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 2014/15 through 2016/17 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, which present the buAget in a manner that is simple and understandable. The Proposed FY18/19 Budget is available for public review at the McHenry Municipal Center, 333 S. Green Street, McHenry, as well as on the City's website at www.ci.mchenr, .iy l.us prior to adoption by the City Council. Once adopted, the budget is available for public review at the McHenry Municipal Center, 333 S. Green Street, McHenry, as well as on the City's website at www.ci.mchenry.il.us. 11 Basis of Accounting and Budgetin 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. 12 Budget Process Summa Budget Process Overview The City's annual fiscal year budget covers the period beginning May 1st and ending April 30th and contains information relative to estimated revenues and planned operational and capital expenditures for the various funds of the municipality for the identified fiscal year. Although the budget is not formally adopted by the City Council until April of each year, the budget development process officially begins each October with the preparation of the annual tax levy, which is used to fund many of the current programs and services, along with the development/update of the five-year Capital Improvement Program (CIP). The budget preparation process provides the various divisions and departments of the City with the opportunity to review accomplishments, set goals and objectives, and identify the means for accomplishing these goals and objectives. Capital Improvement Plan The five-year Capital Improvement Program (CIP), reviewed and updated annually, is an integral part of the budget process and is designed to achieve two fundamental objectives: first, to identify the major capital needs of the City over a specific planning period; and, second, to prioritize and begin planning, both financially and logistically, for the implementation of these capital improvements. Capital expenditures are defined as any project that will have a useful life of longer than one year and a value greater than $10,000. The CIP prioritizes each project using a unified and objective system that identifies the most important capital project needs. The final budget document includes capital expenditures as defined and prioritized during the CIP development process - based on the availability of sufficient funds. Importantly, the CIP document serves as a planning document for the identification of capital improvement and capital equipment needs and not a budget document. In other words, simply because a project is identified in the CIP does not guarantee that it will ever be implemented. Implementation is based on annual review and availability of funding in the budget document. Budget Roles and Responsibilities Every employee of the municipality plays a role in the budgeting processformulation, preparation, implementation, administration, or evaluation. Ultimately, Department Directors, through the City Administrator, are accountable to the City Council and to the residents of McHenry for the performance of departments in meeting goals and objectives as they are laid out in the budget document. Department Directors, with input from their respective managers, superintendents and departmental staff analyze historical data, review existing operational needs, and project anticipated operational needs in order develop detailed line -item budget requests that allow them to maintain or enhance the level of programs and services within their departments. These detailed requests are then submitted to the City Administrator and Finance Director, meetings are held with Department Directors to adjust requests based on anticipated revenues keeping in mind the overall needs of the municipality, and the fund line item requests found in the attached budget document are identified. Budget Appropriation and Supplemental Appropriation While the approved budget document establishes the estimates for revenues and guidelines for expenditures of the municipality, the City is required to conduct a public hearing and adopt an annual appropriation ordinance each July. The appropriation ordinance provides the legal authority to 13 allocate funds to specific spending activities and establishes the City's legal spending limit for the fiscal year. During the fiscal year it may be necessary, from time to time, to amend the approved budget (see Budget Amendment Process below). As a result, in October following the close of the fiscal year period (April 301h) the City is required to pass a supplemental appropriation ordinance to amend the original appropriation ordinance to account for these budget amendments. Budget Amendment Process While budgets are prepared at the operational line item level, and approved by Council at the fund line item level, budget amendments are brought before Council, per the Purchasing Policy and Procedures approved in 2016, for unbudgeted items over $6,500. Budgetary Controls Without proper internal financial controls the budget document will not serve its role as a guidance tool for City programs and projects. To this end, the Finance Department prepares monthly reports which are reviewed by the Finance Director, respective Department Directors, and the City Administrator. These monthly reviews provide, at a minimum, an opportunity to make operational adjustments throughout the year as necessary. Any deviations from the fund budgetary amounts are discussed in this document and, when necessary, solutions are presented. Quarterly financial reports are also transmitted to the City Council via a City Council Meeting Consent Agenda to ensure that the elected body is consistently apprised of the status of municipal revenues and expenditures. Preparation to Achieve the Government Finance Officers Association (GFOA) Budget Award Beginning with the FY15/16 Budget, the City Administration committed to undertaking continuous improvements to the annual budget document that achieves the highest quality and reflects both the guidelines established by the National Advisory Council on State and Local Budgeting and the GFOA best practices on budgeting. While some of these improvements are subtle, or related to unseen operational modifications, others are more visible - such as the redevelopment of the budget to its current form aimed at providing the reader with a more understandable and transparent document. l� Budget Process Timeline Tuesday, January 2, 2018 City Administrator, Finance Director distributes worksheet and instructions for budget preparation to Department Directors Monday, January 15, 2018 Proposed FY18/19 - FY22/23 CIP transmitted to City Council Monday, January 29, 2018 Committee of the Whole Meeting/CIP Workshop to Discuss Proposed FY18/19 - FY22/23 CIP Friday, February 9, 2018 Department Directors submit budget requests to City Administrator and Finance Director February 12-February 16, 2018 City Administrator and Finance Director review budget requests with respective Department Directors Monday, February 19, 2018 Revised FY18/19 - FY22/23 CIP adopted by City Council February 19-March 2, 2018 Preparation of the Proposed FY18/19 Budget Monday, March 5, 2018 Transmit Proposed FY18/19 Budget to Finance and Personnel Committee and City Council (operating funds) Monday, March 12, 2018 Finance and Personnel Committee Meeting to discuss Proposed FY18/19 Budget Document (operating funds) Monday, March 19, 2018 Transmit Proposed FY18/19 Budget to Finance and Personnel Committee and City Council (all funds) Monday, March 26, 2018 Finance and Personnel Committee Meeting to discuss Proposed FY18/19 Budget (all funds) Monday, April 2, 2018 Final Proposed FY18/19 Budget -including all narratives, charts, supplemental information -transmitted to City Council for review and posted on City's Website (www.ci.mchenry.il.us) Wednesday, April 11, 2018 Committee of the Whole Meeting/Budget Workshop to review Final Proposed FY18/19 Budget Monday, April 23, 2018 (if needed) Committee of the Whole Meeting/Budget Workshop to review Final Proposed FY18/19 Budget Apri130, 2018 Final Revised FY18/19 Budget adopted by City Council 15 Budget Process Timeline CIP Creation CIP Review & Finalization Property Tax Levy Budget Creation Budget Review, Finalization, and Adoption Aug-17 Sept -17 Oct -17 Nov -17 Dec -17 Jan-18 Feb-18 Mar-17 Apr -18 May -18 16 City of McHenry Organizational Chart 17 Personnel Summary The following table provides a summary overview of the staffing level of the municipality for the previous five (5) fiscal years and identifies the proposed staffing level for FY18/19. The increase in staffing levels in the General Fund from FY15/16 to FY17/18 of 15.42 employees was primarily due to the development of the consolidated 911 dispatch center (NERCOM). During this time period, ten (10) new dispatchers and one (1) civilian supervisor have been hired to fully staff this facility. Importantly, the City of McHenry is responsible for only 46.8% of NERCOM personnel costs due to partnerships with the City of Woodstock, City of Harvard and the McHenry Township Fire Protection District which, through center revenues, pay the remainder of the costs. Prior to this consolidation, the General Fund totaled 111.98 employees - 20.57 employees LESS than FY07/08 when measures were taken to reduce staffing due to the recession. Staffing identified in the Recreation Center and Water and Sewer Funds is financed by revenues generated by these funds. Authorized Personnel Budget Prior FY 1 109; General Fund Administration 3.00 3.00 6.00 6.00 6.00 6.00 8.00 8.00 Elected Officials 0.00 0.00 0.00 0.00 1.00 1.00 1.00 1.00 Community Development 6.50 0.40 7.90 7.90 S.50 5.50 5.50 6.50 Finance Department S.00 1.00 5.00 5.00 4.60 4.60 4.60 4.60 Human Resource Department 1.00 1.00 0.00 0.00 0.00 0.00 0.00 0.00 Economic Development Department 3.00 3.00 0.00 0.00 0.00 0.00 0.00 0.00 Police Department 52.75 0.00 52.75 51.75 61.88 60.88 60.88 60.88 NERCOM (Dispatch) 22.25 0.00 22.25 12.25 0,00 0.00 0.00 0.00 Public Works Administration 3.50 0.00 3.50 4.50 2.00 2.00 IN 2.00 Public Works Streets 19.00 0.00 19.00 18.00 18.00 19.00 18.00 18.00 Parks and Recreation 9.25 1.75 11.00 11.00 13.00 12.00 10.00 11.00 Total General Fund 125.25 2.15 127.40 116.40 111.98 110.98 109.98 111.98 Recreation Center Fund 2.25 1.25 1.00 1.00 0.00 0.00 0.00 0.00 Information TechnologyFund IN 0.00 IN IN 2000 2.00 2.00 2.00 Water and Sewer Fund Water Division 5.50 0.00 5.50 5.50 4.50 9.50 9.50 9.50 Wastewater Division &00 1.00 9.00 7.00 7.00 10.00 9.00 10.00 Utility Division 8.00 0.00 8.00 9.00 9.00 0.00 0.00 0.00 Total Water and Sewer Fund 21.50 1.00 22.50 21.50 19.50 19.50 18.50 19.50 Total City of McHenry 153.00 0.10 152.90 140.90 133.48 132.48 130.48 133.48 Population 26,992 26,992 26,992 26,992 26,992 26,992 26,992 Employees per 1,000 Population 5.67 5.66 5.22 4.95 4.91 4.83 4.95 Staffing Needs Summary - Overview In FY16/17 the administrative leadership team (ie., City Administrator, Human Resources Manager, Department Directors, Superintendents, Managers) began the development of a Staffing Needs Analysis. The primary purpose of this exercise was/is to develop a five-year Comprehensive Workforce Plan that includes recommendations to changes in the organizational structure of the municipality; recommendations for organizational training and employee development; the implementation of career and leadership development programs; the implementation of employee retention programs; and, the establishment of departmental succession plans. Ultimately, a staffing plan allows Human Resources to update job descriptions, research appropriate wage and compensation levels, network with other municipalities regarding their workforce needs and, in general, be prepared for change within the organization. Several factors triggered the need to determine staffing changes and future positions -the opening A the McHenry Recreation Center, changes in how we provide services to residents and other customers, and the identification of a significant number of employees reaching retirement age. All A these factors led to the need to conduct an internal staffing analysis to prepare for the future. In summary, the needs analysis addresses the staffing levels as well as the skills, knowledge, and abilities needed to accomplish process improvements and create greater efficiency in operations. As such, department directors were asked to project five years into the future in attempting to identify department staffing needs, both in terms of personnel and skill, knowledge and abilities. This would be achieved by analyzing the following factors: 1. Core Functions - Identification of the core functions of the municipality by division/department; 2. Environmental Scan -Identification of the internal and external factors that could change the way that core functions of the municipality are delivered; 3. Current Workforce Profile -Assessment of the knowledge, skills and abilities of the existing workforce and to determine how the demographics of the workforce may impact the organization during the period covered by the workforce plan; 4. Future Workforce Profile -Determining the needs of the future workforce based on required knowledge, skills and abilities, use/application of technology, or anticipated increases/decreases in staffing; 5. Gap/Surplus Analysis -Identification of any gaps and/or surpluses in staffing or skills that will be required to efficiently and effectively carry out the core functions of the municipality. Once this first task was complete, directors met with Human Resources Manager Campanella and City Administrator Morefield to present and discuss their staffing needs for the next five years. The discussions generally included: • Changes to a specific position or title when an existing employee departs; • If certain existing or new positions can be job -shared or whether interns or other staffing tools could be used to reduce workforce costs; 19 • Identification of the impact of technology on specific jobs or job functions resulting in changes to the tasks associated with a position or the technical skills required to be successful in that job. Through this process, and subsequent review and update during the FY18/19 Budget process, the following new or revised positions will be required within the next five years to meet the changing services and programs and to ensure that the residents of McHenry continue to receive a high level of customer service. General Administration (includes Human Resources and Finance) • Grant Writer • Public Information/Communication Specialist • Human Resources Assistant (PT) Community Development • Planner • Seasonal Code Compliance Officer (summers) Information Technology • Network Engineer Parks • 3 Parks Maintenance Workers Police • Community Service Officer (PT) • Public Relations Officer - filled with existing employee • FOIA/Evidence Technician (PT) • Parking Enforcement Officer (PT) Public Works • Public Works Engineering Intern (summer) • Assistant Public Works Director • Forestry Maintenance Worker (Streets) • 3 Maintenance Workers • Certified Laboratory Technician (WW) • Wastewater Operator II IEPA Licensed Class I • Utility Crew Leader • Mechanic (PT) Recreation • Recreation Center Supervisor -position filled The new position summary is a working list with the understanding that business and community needs change over time. This list will be reviewed and further refined annually to ensure that positions are updated and reviewed as the workforce changes. It is important to note, as discussed elsewhere in this document, that during the recession many employees absorbed the work of eliminated positions which has led to a comingling of responsibilities which sometimes causes 20 confusion. The goal of this plan would be to untangle these positions, analyze responsibilities and assign duties where appropriate. 21 Fund Structure Overview The accounting system and the budget appropriation process are structured according to the basic guidelines established by the Government Finance Officers Association (GFOA) of the United States and Canada. The format includes the basic funds and fund types which follow. The City's governmental funds are as follows: General Fund (100s) This fund accounts for all transactions of the city that pertain to the general administration of the city and the services traditionally provided to its citizens. This includes Administration, Elected Officials, Community Development, Finance, Police, Public Works Administration, Streets, and Parks and Recreation. Special Revenue Funds (200s) These funds are utilized to account for revenues derived from specific sources which are usually required by law or regulation to be accounted for as separate funds. For the City of McHenry these funds include the Tourism Fund, Pageant Fund, Band Fund, Civil Defense Fund, Alarm Board Fund, Audit Fund, Annexation Fund, Motor Fuel Tax Fund, Developer Donation Fund, and Tax Increment Fund. Debt Service Fund (300) This fund accounts for the accumulation of revenues for and payment of principal and interest on general obligation long term debt. Capital Improvements Fund (440) and Capital Equipment Fund (450) 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 (500s) These funds are utilized to account for operations and activities that are financed and operated in a manner similar to a private business enterprise, and where the cost of providing goods and services to the general public on a continuing basis is expected to be recovered primarily through user charges. The City has also established Enterprise Funds when it was advantageous to segregate revenues earned and expenses incurred for an operation for purposes of capital maintenance, public policy, management control or accountability. Enterprise Funds for the City include the Water and Sewer Fund, Capital Development Fund, Utility Improvements Fund, and Marina Operations Fund. Internal Service Funds (600s) These funds are established to finance and account for services and/or commodities furnished by one department or agency to other departments or agencies of the city. The Internal Service Funds of the City are the Employee Insurance Fund, Risk Management Fund, and Information Technology Fund. �xa The City other funds include the following: Fiduciary FundSit/ a) These funds are used to account for resources held for the benefit of parties outside the city. The fiduciary funds of the city are the Employee Flexible Spending Fund, Developmental Escrow Fund, Retained Personnel Fund, Revolving Loan Fund, and the Police Pension Trust Fund. Accounting for the financial activities of the City and the budget 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 Athe municipality. Activities included in this function also include Economic Development, Human Resources, Information Technology and Municipal Center Building and Grounds Maintenance. Community Development The overall mission of this function is to protect and promote the health, welfare, safety and quality of life of McHenry Citizens, property owners, visitors and commercial interests through the development and implementation of the City's adopted ordinances and policies. Planning and development activities are also included within this function. 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. Public Works This function provides for safe and well -maintained infrastructure for the City. Activities included in this function are public works administration, roadway maintenance, snow and ice control, street cleaning, traffic control and engineering. Parks and Recreation This function promotes the general well-being of the City and encourages the fullest development of cultural and educational potentials of the citizens in the community. This function includes the activities of general parks, parks and maintenance, downtown maintenance and programs. Debt Service This function provides for the accumulation of resources for and the payment of principal and interest on long-term debt of the City. 23 Capital Projects This function provides for the acquisition or construction of major capital facilities or equipment for the City. Business -Type Activities This function includes activities of the City that are financed in whole, or in part, by fees charged to external parties for goods and services. These activities are accounted for as enterprise funds and include the Water and Sewer and Marina Operations Funds. 24 Chart of Accounts Overview Funds are comprised of various line item accounts. These are separated as "Revenues" and/or "Expenses" as appropriate and are assigned based on the following specific line item designations: Revenues 3010 Property Tax Collection -Amount collected in taxes assessed on real estate. 3020 Property Tax Collection -Road &Bridge -Amount collected in taxes assessed on real estate by the McHenry and Nunda Township Road Districts and disbursed to the City for roads and bridges within the City. 3030 Property Tax Collection -Police Protection -Amount collected in taxes assessed on real estate that funds a portion of police protection expenses. 3040 Property Tax Collection -Retirement -Amount collected in taxes assessed on real estate that funds a portion of retirement expenses. 3050 Property Tax Collection -Liability Insurance -Amount collected in taxes assessed on real estate that funds a portion of liability insurance expenses. 3051 Property Tax Collection -Police Pension -Amount collected in taxes assessed on real estate that funds the actuarial required contribution to the police pension fund. 3110 Personal Property Replacement Taxes -Revenues collected by the State of Illinois and disbursed to the City to replace money that was lost by local governments when their powers to impose personal property taxes on corporations, partnerships, and other business entities was taken away in 1979. These funds are limited to use for retirement funding. 3120 State Sales Taxes -The state collects a 1% tax on a seller's receipts from sales of tangible personal property for use or consumption that is distributed based on sales in the City. 3121 Home Rule Sales Taxes -The state collects a 0.5% tax on a seller's receipts from sales of tangible personal property for use or consumption that is distributed based on sales in the City. This home rule sales tax is not charged on sales of vehicles. 3125 Telecommunications Taxes The state collects an 8%tax that is imposed on intrastate and interstate messages and 1% is distributed to the City. 3130 State Income Taxes -Amount collected in taxes imposed on financial income generated by all entities within the State. The State distributes 8% of the net collections of all income tax received from individuals, trusts, and estates and 9.14% of the net collections of all income tax received from corporations to local governments based on the population in proportion to the total state population. 3140 Pull Tabs -Amount collected by the State and disbursed to the City for operator licenses and taxes on gross proceeds of pull tabs and jar games. 25 3141 Inter=Track Wagering - Amount collected for a 19/o tax collected on the handle at Trackside McHenry Off Track Betting establishments within the City. 3142 Hotel/Motel Taxes -Amount collected for a 5%tax assessed on the rental or leasing charges for hotel or motel rooms. 3150 Motor Fuel Tax Allotment -Taxes collected on gasoline and diesel fuel collected by the State and disbursed to the City based on the population. 3210 Interest Income -Interest earned on cash temporarily held in checking accounts, certificates of deposits, or other investments. 3310 Liquor Licenses -Amount paid by establishments within the City that hold valid liquor licenses. 3320 City Licenses -Amount collected from businesses within the City for licenses for massage parlors, athletic exhibitions for profit, billiard and pool halls, carnivals, circuses, exhibitions, motion pictures and theatricals, public dance halls, skating rinks, bowling alleys, and mechanical amusement. 3330 Vehicle Stickers -Amount paid annually by residents for each licensed motor vehicle owned and operated by them. 3350 Video Gambling Licenses -Amount paid annually by each private business and terminal operator for a video gambling license. Also includes the amount disbursed by the State of Illinois for the City's portion of the video gaming tax. 3410 Permits -Amount collected to issue a building permit for miscellaneous improvements such as roof repairs, siding repairs, fences, etc. 3420 Plumbing Inspections -Amount collected for the inspection of the connection to a water main through a permit fee. 3430 Zoning Plat Fees -Amount collected for residents or business owners to have a hearing before the planning &zoning commission for items like conditional use permits, variances, etc. 3505 Traffic Fines -Amount collected by the McHenry County Circuit Clerk's office and forwarded to the City for traffic fines that occurred within the City. 3510 Parking Fines -Amount collected in fines for parking violations. 3515 Police -Accident Reports -Amount collected for administrative fees to furnish accident reports. 3520 Police -Field Reports -Amount collected for administrative fees to furnish field reports. 3525 Drug Asset Forfeitures -Amount collected through the sale of assets that were forfeited. 3530 DUI Fines -Amount collected by the McHenry County Circuit Clerk's office and forwarded to the City for DUI charges. 26 3532 Overweight Truck Permits - Amount collected for the issuance of overweight truck permits. 3536 Police Bail Bond Processing Fees - Amount collected in fees to process bail paperwork. 3537 Police Impound Fees -Amount collected as an administrative penalty for a motor vehicle that is used in connection with the following driving violations such as driving under the influence, driving while license i ws suspended or revoked, no valid driver's license, etc. 3538 Warrant Execution -Amount received from other governmental agencies for the execution of a warrant by the City's police department. 3539 Electronic Citation -Amount collected by the McHenry County Circuit Clerk and forwarded to the City for electronic citation. 3540 Vehicle License Fines -Amount collected for fines for vehicle stickers that are purchased after the due date of June 30th. 3545 Vehicle Fund Fines -Amount collected by the McHenry County Circuit Clerk and forwarded to the City for vehicle court supervision fines. 3610 Sales -Water/Sewer -Amount collected for water and sewer usage based on meter readings charged at a per 1,000 gallon rate. 3615 Base Charge -Capital -Amount collected through the utility bill for water and sewer base fees that will be retained and used for development and repairs to the utility capital system. 3620 Penalties -Amount collected for utility bills that are paid after the due date. 3630 Hookup/Connection Fees -Amount collected for permit fees that are charged for the connection to the water and sewer system. 3631 Parks &Recreation Programs -Amount collected for programs offered through the parks and recreation department. 3632 Concessions -Amount collected at concession stands at City parks as well as at the Recreation Center. 3633 Beach Programs -Amount collected for daily admission at the McCullom Lake Beach. 3634 Swimming Pool -Amount collected for admission to the Merkel Aquatic Center. 3640 Water Meter Sales -Amount collected for the initial or replacement water meter. 3641 Babysitting -Amount collected for childcare services offered at the Recreation Center. 3642 Room Rentals -Amount collected at the Recreation Center for community room rentals. 3643 Birthday Parties -Amount collected for birthday parties that are held and run by personnel at the Recreation Center. 27 3644 Sponsorship/Advertisement - Amount collected for sponsors or advertisements at the Recreation Center. 3645 Annual Membership -Amount collected for membership fees for the Recreation Center. 3646 Short -Term Membership -Amount collected for temporary membership fees for the Recreation Center. 3647 Daily Admissions -Amount collected for daily membership fees for the Recreation Center. 3648 Punch Passes -Amount collected for 10 and 20 punch passes that act as daily membership to the Recreation Center as well as attendance at specialty fitness classes held at the center. 3649 Miscellaneous Fees -Amount collected at the Recreation Center for miscellaneous fees such as workout logging devices, and other items sold at the center. 3650 Fitness Classes -Session Based -Amount collected for fitness classes held at the Recreation Center. 3651 Small Group Personal Training -Amount collected for Recreation Center members that sign up for a small group personal training session. 3652 Personal Training -Amount collected for Recreation Center members that sign up for personal training services. 3653 Elective Participant Premium -Amount collected for City provided health insurance for retired employees or former employees on COBRA. 3660 Debt Service Fees -Amount collected from sewer users to retire debt issued by the City. 3665 Debt Service Fees - IEPA Loan -Amount collected from sewer users to retire an Illinois Environmental Protection Agency loan used to consolidate the Central and South Wastewater Treatment Plants. 3682 Mowing/Weeds -Amount collected for the cutting or removal of weeds and plant growth in excess of 8 inches which is paid for by the owner of the property. 3683 Alarm Board Revenue -Fines collected on false alarms after having six free alarms. 3711 Meeting Fees -Planning &Zoning - Reimbursements by developers and zoning petitioners for the Planning &Zoning Commission hearing attendance collected in the Retained Personnel Fund. 3715 Annexation Income -Amount collected as determined by the annexation agreement. 3720 Operating Fees -Amount collected through permit fees on behalf of the school districts, fire district and library district from the developer to pay its fair share of public improvements that may be required because of the new development. These fees are paid out to the districts monthly. 3730 Engineering Fees -Reimbursements by developers for expenses paid for contracted engineering advice and service in the Retained Personnel Fund. 3735 Legal Fees - Reimbursements by developers for expenses paid for legal fees in the Retained Personnel Fund. 3740 Fees -Developers -Miscellaneous -Reimbursements by developers for miscellaneous expenses such as recording fees in the Retained Personnel Fund. 3745 Gravel Mining/Annexation Agreement -Amount received per the annexation agreement for the gravel pit within the City. 3750 Refunds -Developers -Amount paid by developers for a retained personnel deposit that is over and above the expenses and will be refunded to the developer. 3760 Received from Developers -Amount collected from developers as contributions to public improvements such as signs, traffic signals, intersection improvements, etc. 3775 Developer Donations -Schools -Amount collected through permit fees on behalf of the school districts from the developer to pay its fair share of public improvements that may be required because of the new development. These fees are paid out to the school districts annually. 3780 Developer Donations -Parks -Amount collected through permit fees for parks from the developer to pay its fair share of public improvements that may be required because of the new development. 3785 Developer Donations -Library -Amount collected through permit fees on behalf of the library district from the developer to pay its fair share of public improvements that may be required because of the new development. These fees are paid out to the library district annually. 3790 Developer Donations -Fire -Amount collected through permit fees on behalf of the fire district from Lite developer to pay its fair share of public improvements that maybe required because of the new development. These fees are paid out to the fire district annually. 3815 Donations -Amount donated to the City for various reasons. 3830 Employer Contributions -Actuarial contrived amount that the City contributes to the Police Pension Fund. 3831 Employee Contributions -Amount collected from employees for benefits provided by the City. 3832 Cable Franchise Fees -Amount charged to a cable television company for the use of public right -of --ways. 3835 Garbage Bags -Amount collected for the sale of garbage stickers to residents. 3845 Rental Income -Rent charged for the use of municipal properties including Main Street Station, Hickory Creek Farm, farmlands, water towers, the marina, etc. 3881 Reimbursement -Communication Desk -Amount charged to agencies that the City provides dispatching services for. WE 3882 Reimbursement - Miscellaneous - Reimbursement for expenses for city services provided such as school resource officers, traffic control, snowplowing, etc. 3885 Reimbursementa- 1UPUILY Insurance -Insurance payments for property damage within the City. 3890 Miscellaneous Income -Revenue that does not fit into other categories such as handicap placards, lien fees, collection fees, adjudication court fees, etc. 3915 Bond Interest Rebate -Interest rebate issued to the City from the Department of the Treasury Internal Revenue Service for Recovery Zone Economic Development Bonds and Build America Bonds. 3920 Sale of Fixed Assets -Proceeds from the sale of municipal owned fixed assets. 3969 Transfer -TIF -Internal Fund Transfer from the TIF Fund to cover debt service fees. 3970 Charges for Services -Internal Fund Transfer from the Water/Sewer Fund to cover administrative costs for the issuance of utility bills. 3971 Transfers -Annexation Fund -Internal Fund Transfer from the Annexation Fund to cover debt service fees. 3972 Transfers -Recreation Center Fund -Internal Fund Transfer from the Recreation Center Fund to cover debt service fees. 3975 Transfers -General Fund -Internal Fund Transfer from the General Fund to cover debt service fees, capital expenses, insurance expenses, and information technology expenses. 3978 Transfers -Water/Sewer Fund -Internal Fund Transfer from the Water/Sewer Fund to cover debt service fees, utility division expenses, insurance expenses, and information technology expenses. 3986 Transfers -Motor Fuel Tax Fund -Internal Fund Transfer from the Motor Fuel Tax Fund to cover debt service fees. 3994 Transfers -SSA 4-b4 -Internal Fund Transfer from the SSA 44 Fund to cover expenses for the Lakewood Road Utility. 3999 Transfers -Other Funds -Internal Fund Transfer from miscellaneous special revenue funds and internal service funds to cover items such as fireworks, risk management, etc. 30 Expenses 4010 Salaries - Regular - Salary expense for employees who work 40 hours or full time. 4020 Salaries -Sworn -Salary expense for sworn police department employees who work 40 hours or full time. 4030 Salaries -Regular Part-time -Salary expense for employees who work less than 40 hours, but are employed throughout the calendar year. 4050 Salaries -Regular Overtime -Salary expense paid to non-exempt non -sworn employees at one and one-half times or two times the employee's regular hourly rate for all hours worked in excess of forty hours per week. 4055 Salaries -Regular Sworn Overtime -Salary expense paid to non-exempt sworn employees at one and one-half times the employee's regular hourly rate for all hours worked in excess of forty hours per week. 4060 Salaries -Snow Removal Overtime -Salary expense paid to non-exempt non -sworn employees at one and one-half times or two times the employee's regular hourly rate for all hours worked in excess of forty hours per week for snowplowing. 4080 Salaries -Career Ladder -Salary expense paid to sworn police department employees for on -call and investigator stipend pay. 4100 Salaries -Seasonal/Part-time -Salary expense for employees who work less than 40 hours per week and can be seasonal help. 4220 Salaries -Boards &Commissions -Salary expense for the Mayor, Council members, the City Clerk and the Planning and Zoning Commissioners. 4310 Health Insurance -Expenses for employee group medical insurance premiums. 4320 Dental Insurance -Expenses for employee group dental insurance premiums. 4330 Life Insurance -Expenses for employee group life insurance premiums for city provided coverage at $30,000. 4340 Vision Insurance -Expenses for employee group vision insurance premiums. 4410 Contribution -FICA -The employer contribution of Social Security and Medicare, which is currently at 7.65% of eligible wages. 4420 Contribution IMRF -The employer contribution of IMRF for all employees covered under the IMRF program. 4430 Contribution Police Pension -The amount provided through property tax collection for the Police Pension Fund. This amount is determined by an actuarial study conducted on an annual basis. 31 4510 Uniform Allowance - Expenses for uniforms and personal protective equipment provided for those public service employees required to wear uniforms while performing their jobs. 4910 Retirement Benefits - Retirement benefits paid to police pension beneficiaries who apply for a regular pension. 4920 Disability Benefits -Retirement benefits paid to police pension beneficiaries who have been found to have a duty disability. This type of pensions must be approved by the Police Pension board. 4930 Survivor Benefits -Retirement benefits paid to the surviving spouse of a police pension beneficiary. 4940 Non -Duty Disability Benefits -Retirement benefits paid to police pension beneficiaries who have been found to have a non -duty disability. This type of pensions must be approved by the Police Pension board. 4990 Contribution Refund -Refund of police pension contributions made by a sworn employee that is no longer employed with the City. The employee must request a refund from the pension fund. 5110 Contractual Services -Expenses that are based on a contract or are paid on a monthly basis such as mowing, PACE fees, copier lease payments, bank service charges, miscellaneous building charges, etc. 5200 Contract Custodial -Expenses for monthly janitorial serves at the Recreation Center. 5215 Retention/Promotion -Expenses for promotional materials for the Recreation Center. 5220 Engineering Fees -Expenses paid for contracted engineering advice and service in the Retained Personnel Fund, which are reimbursed by the developers. 5230 Legal Services -Expenses for contracted legal advice and services. 5245 Health HRA Reimbursement -Employee health insurance reimbursement expenses paid by the city that covers expenses above the in-house set deductible up to the insurance carrier's deductible. 5310 Postage &Meter -Expenses for postal related services such as stamps, bulk mailings, overnight deliveries, UPS, etc. 5320 Telephone -Expenses for telephone lines, alarm circuits, and cellular phone services. 5321 Cable/TV -Expenses for monthly cable television service at the Recreation Center. 5330 Printing &Publishing -Expenses for advertisements such as employee recruitment ads, bid notices, legal notices, and other required notices. Expenses also for the city newsletter and printing A vehicle sticker notices and utility bills. 5370 Repair &Maintenance -Expenses for routine maintenance on municipal vehicles. 32 5375 Repair & Maintenance - Equipment - Expenses for routines maintenance on municipal equipment. 5380 Repair &MaiJUL tenance -Utility System -Expenses for routine maintenance on municipal utility systems. 5410 Dues -Expenses for membership dues for various professional organizations. 5420 Travel Expenses -Expenses paid for travel related costs such as mileage, tolls, per diem, lodging for conferences and training for employees on municipal business. 5430 Training -Expenses including registration fees, tuition, etc. for attendance at professional conferences and meetings for professional development. 5440 Tuition Reimbursement -Expenses for tuition that covers successful completion of course work with proof of a passing grade or certification. 5450 Publications -Expenses for books, magazines, periodicals, pamphlets, maps, subscriptions, training materials, etc. used for professional development. 5510 Utilities -Monthly expenses for utilities used by municipal buildings including electric and natural gas. 5520 Street Lighting -Monthly expenses for electric usage for street lights throughout the city. 5580 Disposal -Expenses for sludge removal at the wastewater plant. 5600 Credit Card/Bank Fees -Expenses for monthly credit card and banking fees charged to the Recreation Center. 5950 MCMRMA Fees -Expenses for McHenry County Municipal Risk Management Agency annual fees for insurance that covers unemployment, workers compensation, car insurance, liability, fire, theft, property damage, etc. 5960 Insurance Premiums -Miscellaneous -Expenses for notary bonds and public official bonds. 5980 Property Damage -Expenses to repair municipal property damage that will be covered with insurance. 6110 Materials Supplies -Expenses for operating materials &supplies such as custodial cleaning supplies, garbage stickers, miscellaneous building supplies, police training supplies, ammunition, badges, etc. 6111 Supplies -Custodial -Expenses for contracted custodial services at the Recreation Center. 6120 Supplies -Childcare -Expenses for small toys, books, and art supplies for the childcare room at the Recreation Center. 6130 Supplies -Safety -Expenses for first aid and other miscellaneous safety items for the Recreation Center. 33 6141 Office Furniture/Equipment - Expenses for desks, chairs, and other small equipment at the Recreation Center. 6142 Fitness Equipment -Expenses for fitness balls, bands, mats, cardio equipment, etc. at the Recreation Center. 6210 Bulk Office Supplies -Expenses for pens, pencils, paper, staples, binders, folders, calendars, ink, etc. 6250 Gasoline &Oil -Expenses for gasoline and oil used for municipal vehicles. 6270 Small Equipment &Tools -Expenses for equipment and tools used to maintain municipal equipment and personnel such as body armor, evidence equipment, weed trimmers, shop tools, etc. 6290 Safety &Personal Protection Equipment -Expenses for personal protective equipment provided to employees such as goggles, boots, chest waders, etc. 6310 Police -Canine Unit -Expenses for training, food, veterinarian bills, etc. for the sworn canine officer. 6340 Police -Forfeiture Expenses -Expenses that are paid for using police forfeiture funds that must be tracked separately. 6920 Special Events -Expenses for community festivals and events such as the fireworks, community pool party, daddy/daughter date night, etc. 6940 Administrative Expenses -Expenses for notary fees, secretary of state fees for vehicles, county recording fees, holiday lighting, real estate taxes, etc. 6945 Development Expense -Sales tax incentive payments based on the terms of the development agreement. 6950 Forestry -Expenses for Al tree program including trees, watering, chainsaws for trimming, tree removal, etc. 6960 Miscellaneous Expenses -Expenses for miscellaneous items not previously covered such as insurance processing fees. 6961 Miscellaneous Refunds -Expenses for refunds of retained personnel deposits that are not used for development expenses. 6965 Reimbursements -Flexible Spending -Expenses paid to employees from their flexible spending accounts for qualified medical expenses. 6970 Distributions -Schools -Permit fees that are collected on behalf of the school districts from the developer to pay its fair share of public improvements that maybe required because of the new development. These fees are paid out to the school districts annually. 34 6980 Distributions - Library - Permit fees that are collected on behalf of the library district from the developer to pay its fair share of public improvements that may be required because of the new development. These fees are paid out to the library district annually. 6990 Distributions -Fire -Permit fees that are collected on behalf of the fire district from the developer to pay its fair share of public improvements that may be required because of the new development. These fees are paid out to the fire district annually. 7100 Bond Principal -Amount paid for principal payment on bonds. 7110 Capital Lease Principal Payments -Amount paid for principal payments on capital leases. Capital leases are used when the item is going to be purchased when the term of the lease is over. 7200 Bond Interest -Amount paid for interest payments on bonds, which are charges paid on the principal based on an agreed upon rate. 7300 Fees -Paying Agent -Amount paid to an escrow agent for various filings for the issued bonds. 8100 Land Acquisition -Amount used for the purchase of land. 8200 Buildings -Amounts paid for the acquisition and improvements to municipal buildings. 8300 Equipment -Amount paid for the acquisition of equipment costing $5,000 or more such as machines, shop equipment, playground equipment, mowers, etc. 8400 Vehicles -Amount paid for the acquisition of vehicles and the necessary equipment to use the vehicle. 8500 Utility System -Amount paid for the acquisition and improvements to the water and sewer utty systems. 8600 Streets -Amount paid for improvements to municipal streets. 8800 Park Improvements -Amount paid for improvements to municipal parks. 8900 Public Improvements -Amount paid for the acquisition and improvements to other miscellaneous municipal capital items. 9510 Depreciation -Amount charged as an expense for an expired portion of a fixed asset. 9901 Transfer -General Fund -Internal Fund Transfers from the Tourism Fund to cover miscellaneous special events with hotel/motel taxes. 9904 Transfer -Debt Service Fund -Internal Fund Transfers from various City funds to cover annual bond interest and principal costs for City projects. 9920 Purchase Service -Risk Management -Internal Fund Transfers from General Fund Departments as well as Water/Sewer Fund Departments and Information Technology Fund to cover the insurance premiums for McHenry County Municipal Risk Management Agency. These premiums 35 cover unemployment, workers compensation, car insurance, liability, fire, theft, property damage, ACE 9921 Purchase Service - Billing General Fund -Internal Fund Transfers to the General Fund for the water and sewer portion of costs that are paid for by the finance department for billing administrative duties and water/sewer bill mailings. 9922 Purchase Service -Information Technology -Internal Fund Transfer to cover information technology expenses for all departments within the city. These expenses include salaries and benefits for Information Technology employees as well as computers, supplies, and software used in all City departments. 9923 Purchase Service -Audit Fund -Internal Fund Transfer to cover the external auditing annual fees for all funds within the City. 9930 Transfer -Water/Sewer Fund -Internal Fund Transfer to the Water and Sewer Divisions to cover Utility Division expenses. 9936 Transfer -Utility Improvement Fund -Internal Fund Transfer from the Water and Sewer Divisions to cover Capital expenses for the Utility System. 9942 Transfer -Capital Improvements Fund -Internal Fund Transfer from the General Fund Departments to cover capital charges for items that are over $10,000 and have a useful life of over 5 years. 9944 Transfer -Band Fund -Internal Fund Transfer from the General Fund to cover the music in the park weekly event. This covers the expenses for the municipal band as well as community bands that perform. 9945 Transfer -Civil Defense Fund -Internal Fund Transfer from the General Fund for expenses to train personnel and maintain the early warning system equipment to protect and defend the City from natural disasters or man-made environmental disasters through early warning and public notification systems. 9946 Transfer -Capital Equipment Fund -Internal Fund Transfer from the General Fund Departments to cover capital vehicle and equipment charges for items that are over $10,000 and have a useful life of over 5 years. 36 a _ ' LIn _ 16, 17 eA CM OF Summary of Proposed Revenues - All Funds 1Revenue A B C D E F Budget 2 3 Total Net 4 Revenue Transfers Revenue 5 General Fund $22,309,740 $599,934 $21,709,806 6 7 ISpecial Revenue Funds 8 Band Fund 12,000 12,000 0 9 Civil Defense Fund 81000 81000 0 10 Alarm Board Fund 2001500 0 2003500 11 Audit Fund 38,787 12,361 261426 12 Annexation Fund 85,200 0 85,200 13 Motor Fuel Tax Fund 700,044 0 700,044 14 Developer Donations 130,000 0 130,000 151 Developer Donations (Parks) 270,000 0 270,000 16 TIF Fund 4017000 0 401,000 17 Pageant Fund 11300 0 11300 18 Total ITourism Fund Special Revenue Funds 176,000 21022,831 0 321361 176,000 11990,470 19 20 21 Capital Project Funds 22 Recreation Center Construction Fund 6921500 0 6921500 231 1 Special Service Area #1A 0 0 0 241 1 Special Service Area #4 161847 0 161847 25 Capital Improvements Fund 13000 0 11000 26 Local Streets Improvements 0 0 0 27 Capital Equipment Fund Total Capital Project Funds 0 710,347 0 0 0 710,347 28 29 30 Debt Service Funds 31 Debt Service Fund Total Debt Service Funds 19657,068 11657,068 1,636743 136361743 20,325 201325 32 33 34 Proprietary Funds 35 Public Works -Water 2,340,572 0 21340,572 36 Public Works -Wastewater 71724,718 0 71724,718 371 Public Works - Utility 9801938 980,038 0 38 Capital Development Fund 371,000 0 371,000 39 Marina Operations Fund 40,200 0 40,200 40 Utility Improvements Fund Total Proprietary Funds 26,847 1114842275 16,847 997,785 10,000 10,4863490 41 42 43 Internal Service Funds 44 Risk Management Fund 729,291 6983291 31,000 45 Information Technology Fund 634,255 634,255 0 46 Health Insurance Fund Total Internal Service Funds 31424,222 417877768 21940,798 41273,344 483,424 5147424 47 48 49 Fiduciary Funds 501 Medical Flexible Spending Fund 601000 0 60,000 51 Revolving Loan Fund 11650 0 11650 52 Police Pension Fund 30399,703 21019,703 173801000 53 Development Escrow Fund 251000 0 1 251000 54 Retained Personnel Fund 75,000 0 75,000 'Total Fiduciary Funds 3,561,353 2,019,703 11541,650 55 56 57 Comparison of Budget vs. Proposed Revenues - All Funds 1Revenue 2 A Budget B C D E 3 Pecent 4 2017118 2018119 Difference Change 5 General Fund $21,830,317 $22,309,740 $4791423 2.2% 6 7 Special Revenue Funds 8 Band Fund 12,000 12,000 0 0.0% 9 Civil Defense Fund 81000 81000 0 0.0% 10 Alarm Board Fund 190,250 200,500 10,250 5A% 11 Audit Fund 38,504 38,787 283 0.7% 12 Annexation Fund 155,200 85,200 (70,000) 45.1% 13 Motor Fuel Tax Fund 695,644 700,044 41400 0.6% 14 Developer Donations 105,000 130,000 25,000 23.8% 15 Developer Donations (Parks) 2181000 270,000 527000 23.9% 16 TIF Fund 326,000 401,000 757000 23.0% 17 Pageant Fund 13300 11300 0 0.0% 18 Tourism Fund 155,050 176,000 20,950 13.5% Total Special Revenue Funds 1,904,948 21022,831 1171883 6,2% 19 20 21 Capital Project Funds 22 Recreation Center Construction Fund 601,500 692,500 91,000 15.1% 23 Special Service Area #1A 0 0 0 0.0% 24 Special Service Area #4 16,847 16,847 0 0.0% 25 Capital Improvements Fund 1,192,209 11000 (11191,209) -99.9% 26 Local Streets Improvements 0 0 0 0.0% 27 Capital Equipment Fund 238,370 0 23( 8.370)-100.0% Total Capital Project Funds 2,048,926 710,347 (11338,579) -65.3% 28 29 30 Debt Service Funds 31 Debt Service Fund 11661,872 1 1,657,068 4 804 Total Debt Service Funds 11661,872 11657,068 (41804) -0.3% 32 33 34 Proprietary Funds 35 Public Works - Water 21324,072 21340,572 16,500 0.7% 36 Public Works - Wastewater 51131,140 71724,718 21593,578 50.5% 37 Public Works - Uility 794,332 980,938 186,606 23.5% 38 Capital Development Fund 312,000 371,000 59,000 18.9% 39 Marina Operations Fund 50,200 40,200 (10,000) A9.9% 40 41 Utility Improvements Fund 18,847 26,847 81000 42.4% Total Proprietary Funds 81630,591 11,484,275 21853,684 33.1% 42 43 Internal Service Funds 44 Risk Management Fund 728,491 729,291 800 0.1% 45 Information Technology Fund 536,087 634,255 98,168 18.3% 46 Health Insurance Fund 3,493,712 3,424,222 (69,490) -2.0% Total Internal Service Funds 4,758,290 41787,768 29,478 0.6%° 47 48 49 Fiduciary Funds 50 Employee Flexible Spending Fund 105,000 60,000 (45,000) 42.9% 51 Revolving Loan Fund 21050 11650 (400) -19.5% 52 Police Pension Fund 31234,219 3,3991703 165,484 5.1% 53 Development Escrow Fund 251050 25,000 (50) -0.2% 54 Retained Personnel Fund 75,000 75,000 0 0.0% Total Fiduciary Funds 3,441319 3,561,353 120,034 3.5% 55 56 57 39 Summary of Revenues and Other Financing Sources - All Funds MMMMML� Property Taxes 2017118 2018/19 �51385,632 Do_ Ilar Chan e �� pro __Chan . e 513351632 501000 0,94% Sales Taxes 911241742 91672,507 547,765 6,00% Intergovernmental Revenue 317133305 31559,053 (154)252) 4,15% Licenses & Fines 112481800 11287,300 382500 3,08% Services Charges 91929,793 1216953572 217657779 27,85% Interest Income 988,250 11016,200 271950 2,83% Bond Proceeds - - - 0,00% Transfers 10, 628, 412 91559, 870 (11068, 542) -10, 05% Other Financing Sources 313072329 1 31357,248 49,919 1051% Total 44,276,263 1 463533,382 2725711191 5,10% 2018/19 Budget Revenues by Source Other Financin Sources 7% Bond Proceeds 0% Interest Income 2% _I I Transfers � � Services Charges 27% Property Taxes 12% Licenses &Fines Sales Taxes 21% I ntergovernmenta (Revenue 8% 40 Summary of Proposed Expenditures - All Funds 1Expense 2 A B Budget C D E F G 3 Total Net 4 Budget Transfers Budget 5 General Fund 6 Administration $2,3343602 $78,577 $21256,025 7 Elected Offices 100,179 6,506 931673 8 Community Development 717,913 637859 6542054 9 Finance Department 119959818 843,108 11152,710 10 Human Resources 1631743 81237 1551506 11 Economic Development 330,289 13,482 316,807 12 Police Commission 62953 0 61953 13 Police Department 92582,015 517,190 91064,825 14 Dispatch Department 2/4827908 83,623 21399,285 15 Public Works -Administration 4491515 331683 4151832 16 Public Works - Streets 31051,644 102,445 21949,199 17 Total Parks and Recreation General Fund 2,261,912 23,4771491 121,596 1,872,306 2,140,316 21,605,185 18 19 20 Special Revenue Funds 21 Band Fund 15,000 0 15,000 22 Civil Defense Fund 5,300 0 51300 23 Alarm Board Fund 92,000 0 92,000 24 Audit Fund 42,758 0 42,758 25 Annexation Fund 459000 357000 10,000 26 Motor Fuel Tax Fund 764,930 397,930 367,000 27 Developer Donations 1301000 0 1302000 28 Developer Donations Parks 509,200 0 5097200 29 TIF Fund 3031535 219,035 84,500 30 Pageant Fund 11200 0 11200 31 Total Tourism Fund Special Revenue Funds 114,000 21022,923 99,000 750,965 15,000 11271,958 32 33 34 Capital Project Funds 35 Recreation Center Construction Fund 11134,587 158,792 975,795 36 Special Service Area #1A 0 0 0 37 S ecial Service Area #4 169847 161847 0 38 Capital Improvements Fund 773,000 0 7739000 39 Local Streets Improvements 0 0 0 40 Total Capital Equipment Capital Project Funds 0 11924,434 0 175,639 0 11748,795 41 42 43 Debt Service Funds 44 Total 1 Debt Service Fund Debt Service Funds 1,661,919 12661,919 1 1 0 0 1 1.661.919 1,661,919 45 46 47 Proprietary Funds 48 Public Works - Water 2,778,692 11044,234 19734,458 49 Public Works - Wastewater 41423,101 7183004 31705,097 50 Public Works - Utility 11073,514 0 11073,514 51 Capital Development Fund 0 0 0 52 Marina Operations Fund 431000 0 431000 53 Total Utility Improvements Fund Proprietary Funds 0 81318,307 0 117622238 0 615561069 54 55 56 Internal Service Funds 57 Risk Management Fund 8251351 21,210 804,141 58 Information Technology Fund 634,256 61857 627,399 59 Health Insurance Fund Total Internal Service Funds 31429,222 41888,829 0 283067 31429,222 4,8601762 60 61 62 Fiduciary Funds 63 Employee Flexible Spending Fund 601000 0 60,000 64 Revolving Loan Fund 0 0 0 65 Police Pension Fund 23050,367 31700 21046,667 66 Development Escrow Fund 25,000 251000 0 67 Retained Personnel Fund 751000 0 75,000 Fiduciary Funds 2,2101367 28 700 21181,667 68 69 70 Comparison or Budiet vs. Proposed Expenditures -Ail Funds 1Expense 2 19 A B Budget1 C D E F G H I 3 4 5 Total Total 6 Expenditures Expenditures Percentage 7 2017/18 2018/19 Difference Change 8 JGeneral Fund 9 Administration $1,439,880 $2,334,602 $894,722 62.14% 10 Elected Offices 100,986 100,179 807 -0.80% 11 Community Development 851,538 717,913 133,625 -15.69% 12 Finance Department 31392,587 11995,818 11396,769 -41.17% 13 Human Resources Department 0 163,743 163,743 0.00% 14 Economic Development Department 0 3303289 330,289 0,00% 15 Police Commission 61953 6,953 0 0,00% 161 Police Department 91290,024 9,5823015 291,991 3,14% 17 Dispatch Department 21471,052 21482,908 11,856 0.48% 18 Public Works - Administration 446,466 449,515 31049 0,68% 19 Public Works - Streets 31001,082 33051,644 501562 1,68% 20 Total Parks and Recreation General Fund 2,258.055 23,258,623 2,261*912 23,477,491 3.857 218,868 0,17% 0.94% 21 22 23 Special Revenue Funds 241 Band Fund 15,000 15,000 0 0,00% 25 Civil Defense Fund 51300 5,300 0 0.00% 26 Alarm Board Fund 92,000 92,000 0 0,00% 27 Audit Fund 41,715 42,758 13043 2.50% 28 Annexation Fund 45,000 45,000 0 0,00% 29 Motor Fuel Tax Fund 7863889 764,930 (21,959) -2,79% 30 Developer Donations 1051000 1303000 25,000 23,81% 31 Developer Donations Parks 306,700 509,200 202,500 66.03% 321 TIF Fund 302,235 303,535 11300 0,43% 331 Pageant Fund 11100 1,200 100 9,09% 34 Total Tourism Fund Special Revenue Funds 90.000 11790,939 114,000 21022,923 24,000 231,984 26,67% 12,95% 35 36 37 Capital Project Funds 38 Recreation Center Construction Fund 958,990 11134,587 175,597 18,31 % 39 Special Service Area #1A 0 0 0 0.00% 40 Special Service Area #4A 16,847 16,847 0 0,00% 41 Capital Improvements Fund 11322,209 7731000 549,209 -41,54% 42 Local Street Improvements Fund 0 0 0 0,00% 43 Total Capital Equipment Fund Capital Project Funds 238,370 21536,416 0 1,924,434 (238,370) (611,982) -100.00% -24.13% 44 45 46 Debt Service Funds 47 Total 1 Debt Service Fund Debt Service Funds 1,666,722 19666,722 11661,919 1,661,919 (4,803)1 (41803) -0.29% -0,29% 48 49 50 Proprietary Funds 51 Public Works - Water 21710,089 21778,692 681603 2,53% 52 Public Works - Wastewater 4,7033115 41423,101 280,014 -5.95% 53 Public Works - Utility 1,057,504 11073,514 16,010 1,51% 54 Capital Development Fund 0 0 0 0,00% 55 Marina Operations Fund 46,000 43,000 (3,000) -6,52% 56 Total Utility Improvements Fund Proprietary Funds 0 815163708 0 83318,307 0 (198,401) 0,00% -2,33% 57 58 59 Internal Service Funds 60 Risk Management Fund 727,942 825,351 97,409 13.38% 61 Information TechnologyFund 536,087 634,256 98,169 18.31% 62 Total Health Insurance Fund Internal Service Funds 3.377,801 41641,830 394299222 41888,829 51,421 2461999 1.52% 5,32 % 63 64 65 Fiduciary Funds 66 Employee Medical Flexible Spending Fund 105,000 60,000 453000 -42,86% 67 Revolving Loan Fund 0 0 0 0,00% 68 Police Pension Fund 21011,404 21050,367 38,963 1,94% 69 Development Escrow Fund 25,000 25,000 0 0.00% 70 Retained Personnel Fund 75,000 754000 0 0,00% Total Fiduciary Funds 23216,404 2,2101367 (61037) -0.27% 71 72 73 Expenditures by Function - All Funds Expense Budget 2018/19 All Funds General Government 2,8851346 311491240 219211571 IIWIlar Changlift (227,669) ercwqmq Change -7.23% Public Safety 1117201746 13,3201586 1316151030 2941444 2.21% Public Works 107910,981 10,104,060 1010711100 (32,960) -0.33% Culture and Recreation 21314,459 215883042 216061511 18,469 0.71% Capital Projects 57504,831 21504,879 314461500 941,621 37.59% Comm. & Econ. Dev. 996,900 110511032 112701361 219,329 20.87% Debt Service 1,6537799 116661722 136611919 (41803) -0.29% Other 31859,574 4,190, 051 41293, 363 103,312 2.470/. Total 39, 846, 636 38, 574, 612 39, 886, 355 11311, 743 3.40% Comm other 2018/19 Budget 11% Expenditures by Function* General / Government 7% Debt Services & Econ. 4% Dev. Capital Project! 3% 9% Culture an Recreatior 7% Public Wo 25% *Note: Total does not include interfund transfers Public Safety 34% i y li �mow General Fund Revenues, Expenditures & Fund Balance Summary General Fund Overview The General Fund represents the core revenue and expense fund for municipal functions. General Fund Revenues are comprised of Intergovernmental sources such as Property Tax, State Sales Tax, Local Sales Tax, State Income Tax, State Replacement Tax, State Pull Tabs, Inter Track Wagering, State Communications Tax, and State Grants; Local Sources such as Franchise Fees, Licenses and Permits, Fines and Forfeitures, Charges for Services, and Interest Income; and Miscellaneous sources such as Donations and Reimbursements for Services. General Fund Expenses include personnel, contractual, supplies and other operating expenses related to the following operating budgets - Administration (100.01), Elected Officials (100.02), Community Development (100.03), Finance (100.04), Human Resources (100.05), Economic Development (100.06), Police Commission (100,21), Police (100.22), Police Dispatch (100.23), Public Works -Administration (100.30), Public Works -Streets (100.33), and Parks and Recreation (100.41). Please reference thespreadsheetfound atthe end of thissection titled "General Fund -Revenues, Expenditures and Fund Balance Summary"for the following discussion. General Fund Revenues, Expenditures and Fund Balance Summary In summary, FY18/19 proposed General Fund Revenues and Expenditures reflect total revenues of $22,309,740 (an increase of $479,423 or 2.2%) and total operating expenditures of $22,051,341 (an increase of $236,697 or 1.09%, less capital) - a difference (revenues over expenditures) of $258,399. While specifics will be detailed in the discussion that follows, the primary reasons for increases in revenues relate to projections for State and Local Sales Taxes (an increase of $547,765 combined), the projection for Video Gaming revenues (an increase of $55,000), the projection for Franchise Fees revenues (an increase of $20,000) and Reimbursements related to charges for services from parks programs and internal fund transfers (an increase of $51,292). These are offset by decreases to Property Tax revenues due to the Road & Bridge levy ($25,000), State Income Tax receipts ($140,358), and Fines and Forfeiture revenues ($29,000). In regards to expenditures, Personnel costs are proposed to increase by $188,094 (1.1304) due primarily to the union contracts ($185,427), an estimated 2.75% increase to non -bargaining unit employees ($96,382), and Police Pension costs ($145,484). These increases were offset by the decreased benefit costs due primarily to moving health insurance to the pooled insurance group ($174,742) as well as the elimination of two positions ($128,000). It should be noted that a portion of the Police Dispatch Center costs are offset by General Fund Revenue increases in the form of reimbursements (Row 22) from dispatch partner agencies and customers. Notably, FY18/19 General Fund Expenditure proposed Contractual costs are $32,247 (1.68%) lower than FY17/18 and Supply costs reflect an increase of $14,585 (1.84%). Finally, the FY18/19 General Fund Expenditures includes $1,406,500 in capital expenses that will be funded though the General Fund Balance. All other capital expenses budgeted in FY18/19 are in the Capital Improvement Fund budget and will be funded with the General Fund - Assigned for Capital balance which was transferred with the FY16/17 audit less the amount spent on FY17/18 expenses. 91.7 Further, carrying the General Fund Revenue and Expenditure estimates through the end of the fiscal year (April 30th), it is projected that the total General Fund balance will be $7,549,339. As defined in the Fund Balance and Reserve Policy this would result in a 120 day General Fund Balance Reserve of $7,283,317 and a General Fund Assigned to Capital amount of $266,022. As identified above this fund balance amount will be reduced by $1,406,500 for capital improvement projects (Timothy/Clover Water Main Improvements, Green Street Bridge Rehabilitation, Lakeland Park Drainage Improvements). A note of caution however, the FY17/18 Estimated General Fund Revenues and Expenditures are that, estimates, and economic factors or unforeseen expenses could change these dollar amounts before the end of the year. General Fund Revenues - FY17/18 Budgeted, FY17/18 Estimated, FY18/19 Proposed General Fund Revenues are derived from a number of sources - taxes, video gaming, licenses and permits, fines and forfeitures, franchise fees, charges for services, reimbursement for services, donations, interest income, and other miscellaneous sources. While some revenues, like Property Taxes, can be clearly identified and anticipated based on the adoption of the annual property tax levy, or based on historical performance, other revenues - such as Sales Taxes and State Income Tax - can be volatile based on economic trends. If anything, the economic recession of 2007/2008 sent a message to local governments that economic -based revenues are not guaranteed and can fluctuate based on the economy and disposable income. Actions taken at the local level to plan/adjust from this event resulted in the establishment of a "new norm" for future budget considerations. Further, given the budget crisis of the State of Illinois provides for continuing fiscal uncertainty since decisions at the state level can have an immediate and devastating impact on state -shared revenues. This has been realized through recent actions such as delayed state -shared revenue payments resulting in municipalities having to utilize fund balances or make operational adjustments to decrease expenditures, and in analyzing the State's more recent threat of reducing the Local Government Distributive Fund (LGDF) by 50%. The current legislation reduces the Local Government Distributive Fund (LGDF) distribution by 10% and charges a 2% administrative fee for local sales tax collection. This results in approximately a $178,000 reduction in General Fund revenues. As such, in estimating General Fund Revenues for the purpose of budget development, the City Administration takes a conservative approach in order to: 1) ensure that General Fund Revenue projections are not overstated, to avoid deficit spending and the need to utilize the General Fund reserves (e.g., 120 day unassigned fund balance); 2) limit excessive increases in operating expenditures; and 3) maintain a financial "buffer", in the form of an Unassigned General Fund Reserve, to protect the City from future unforeseen economic threats. Utilizing this philosophy, the City Administration then considers past revenue performance, current economic trends, local economic conditions, and economic forecast models developed by the Illinois Municipal League (IML) for use by local governments in developing revenue projections for the purpose of budget development. 17 Y17/18 Budgeted Revenues In FY17/18 total budgeted General Fund Revenues were $21,830,317. Of this, $4,967,359 (22.8%) was from Property Taxes, $7,176,624 (32.9)% was from the City's 1% share of the State Sales Tax, $1,948,118 (8.9%) was from the .5% Local Sales Tax, and $2,726,192 (12.5%) came from the City's share of the State Income Tax. Revenues derived from these four (4) sources were budgeted at $16,818,293 or 77.1% of total General Fund Revenues. Of the remaining $5,012,024 (22.9%) in budgeted General Fund Revenues, $1,163,842 (5.3%) were from Charges for Services, $2,043,382 (9.4%) from Reimbursement for Services, $393,300 (1.8%) from Fines and Forfeitures, $36 /,50U (1.7%) from Licenses and Permits, $325,000 (1.5%) from Franchise Fees, $375,000 (1.7%) from Video Gaming, and the remaining $344,000 (1.5%) came from all other sources combined. FY17/18 Estimated Revenues The following estimated revenues are based on 10-months of actual revenues and then projected through the remainder of the fiscal year (April 30, 2018). Unfortunately, in some cases this estimation is more difficult than simply dividing 10-month actual by 10 and multiplying by 12 because of when specific revenues are received. Further, FY17/18 Actual revenues will not be known and confirmed until approximately 2-3 months (June -July) after the close of the fiscal year due to the timing involved with the receipt of state -shared revenues and, ultimately, the completion of the annual audit in September/October 2018, 4-5 months in to the new budget year. At this time, estimated General Fund Revenues are projected to be $22,199,678 or $369,361 (1.7%) higher than FY17/18 Budgeted revenues of $21,830,317. This reflects an estimated increase of $280,691, or 1.3%, from FY16/17 Actual revenues of $21,918,987. Notably, FY17/18 Estimated Revenues, when compared to FY16/17 Actual revenues and FY17/18 Budgeted revenues, highlight the following: • State Sales Tax revenue is projected to be $496,009 (6.9%) higher than budgeted and $410,661 (5.7%) higher than the FY16/17 Actual amount. • Local Sales Tax revenue is projected to be $36,751 (1.9%) higher than budgeted and $39,263 (2.0%) higher than received in FY16/17. • Combined, total Sales Tax revenue is estimated to be $532,760 (5.8%) higher than budgeted and $449,924 (4.9%) higher than the FY16/17 Actual. State Sales Tax have shown significant signs of an economic recovery, but are showing signs of "leveling off' in the upcoming years. Also, Local Sales Tax revenues do not include the sale of licensed or titled items - such as cars, boats, motorcycles, etc. As such, while the economic recovery and resulting increase in the sale of licensed vehicles had a positive impact on the City's portion of the State Sales Tax, this aspect has had no impact on Local Sales Tax revenues. • State Income Tax receipts are estimated at $296,912 (10.90/n) lower than budgeted and $115,687 (4.6%) lower than FY16/17. • Video Gaming revenues are estimated to be $429,570, or $54,570 (14.6%) higher than budgeted and $2,410 (0.6%) lower than FY16/17. • Fines and Forfeitures revenues are estimated to be $33,265 (8.5%) lower than budgeted due to lower traffic fine receipts and $244,836 (40.5%) lower than FY16/17 due to one-time seizure funds that were received from the federal government for services provided by the McHenry Police Department. • Reimbursements for services revenues are estimated at $101,332 (5.0%) higher than budgeted and $817,483 (61.6%) higher than FY16/17. This is primarily due to the dispatch consolidation and cost reimbursements by partner and customer agencies for dispatch services. 47 In summary, FY17/18 Estimated Revenues are projected at $369,361 (1.7%) higher than budgeted primarily due to State and Local Sales Tax receipts and Reimbursements directly related to the consolidation of dispatch services. And, when compared to FY16/17 Actual revenues, total General Fund Revenues increased $280,691 (1.3%). FY18/19 Proposed Revenues FY18/19 Proposed General Fund Revenues represent an increase of $479,423 (2.2%) from FY17/18 Budgeted revenues and an increase of $390,753 (1.8%) from FY16/17 Actual revenues. Highlights Achanges to General Fund Revenues proposed for FY18/19 include: • Based on Council action to freeze the property tax levy and the recent actions of Nunda Township Road District, Property Tax revenues are proposed to decrease by $25,00 (0.5%) from the FY17/18 Budgeted amount. • State Sales Tax revenues are proposed at $7,699,625, $523,001 or 7.29% higher than FY17/18 Budget. • Local Sales Tax revenues are proposed at $1,972,882, an increase of $24,764 (1.3%) from FY17/180 • Combined State and Local Sales Tax revenues are proposed at $9,672,507, an increase of $547,765 (6.0%) from the FY17/18 Budget amount. • State Income Tax revenues are proposed at $2,585,834, a decrease of $140,358 (5.15%) from FY17/18. • Video Gaming revenues are proposed at $430,000, a $55,000 (14.7%) increase from FY17/18 Budget amount. • Fines and Forfeitures revenues are proposed to decrease by $29,000, or 7.37% from the amount budgeted in FY17/18a • Charges and Services revenues are proposed to increase by $51,292, or 4.41% from the amount budgeted in FY17/18 due to charges for parks and recreation programs as well as internal fund transfers. • Reimbursements related to the full opening of the Police Dispatch Center on May 1, 2017 and the resulting revenues derived from partner and customer agencies served through this facility are proposed to increase $7,224 or 0.35%. In summary, FY18/19 Proposed Revenues are $479,423 (2.2%) higher than budgeted in FY17/18 and $110,062 (0.5%) higher than FY17/18 Estimated revenues. The primary reasons for the proposed increase an increase in the City's portion of the State Sales Tax ($523,001), a proposed 14.7% increase in Video Gaming revenues ($55,000), and an increase in Charges of Services Revenues (51,292). These increases are offset by reductions to Property Tax revenues of $25,000 (0.50%), State Income Tax receipts of $140,358 (5.15%), and Fine and Forfeitures of $29,000 (7.37%). General Fund Expenditures - FY17/18 Budgeted, FY17/18 Estimated, FY18/19 Proposed General Fund Expenditures include personnel, contractual, supplies and other operating expenses related to the following operating budgets - Administration (100.01), Elected Officials (100.02), Community Development (100.03), Finance (100.04), Human Resources (100.05), Economic Development (100.06), Police Commission (100.21), Police (100.22), Police Dispatch (100.23), Public Works -Administration (100.30), Public Works -Streets (100.33), and Parks and Recreation (100.41). In addition, the General Fund is the funding source for all capital improvement and capital equipment projects that are not related to water and/or sewer improvements or maintenance projects as these are funded through the Water and Sewer Fund and Capital Development Fund. General Fund capital improvement and capital equipment projects include any project over $10,000 related to public facility improvements and maintenance items, police vehicle and equipment acquisition or replacement, non -police vehicle acquisition or replacement, park improvements, and stormwater/drainage improvements. As a frame of reference, the FY18/19-FY21/22 Capital Improvement Program contains more than $55 million in General Fund projects, including more than $44 million in local street improvements. Without a doubt, the needs identified in the Capital Improvement Program far exceed the funding available for them. Finally, the General Fund also serves as a funding source for revenue transfers to other municipal accounts found within Special Revenue Funds, Debt Service Funds, Internal Service Funds, and Fiduciary Funds. FY17/18 Budgeted Expenditures In FY17/18 budgeted expenditures were $23,258,623, budgeted capital expenditures were $1,443,979. Budgeted operating expenditures were $21,814,644 for FY17/18. While this amount reflected a decrease of $1,695,432 (6.8%) from the FY16/17 Actual expenditures (Column H, Row 35), much of this decrease was due decreased Capital Improvement and Capital Equipment expenditures. FY17/18 Estimated Expenditures In general, City Administration -including Department Directors, Superintendents, Managers - closely monitor expenditures throughout the year to ensure that operating budgets stay within the approved amounts. Fiscal diligence on behalf of all of these individuals most often results in expenditures being less than the amount budgeted. This then can be reviewed and adjusted accordingly as part of the succeeding year budget development. For FY17/18, operating expenditures are estimated at $21,833,358, or $18,714 (0.09%) more than the budgeted amount of $21,814,644. A budget amendment was completed in the dispatch budget for $72,292 eliminating the budget overage. Highlights of changes to FY17/18 Estimated Expenditures include: • Reduced Personnel costs of $152,100 (0.9%) resulting from decreased insurance costs from the IUOE 150 union as well as the new insurance consortium. • Contractual costs are estimated at $86,225 (4.5%) more than the original budget. A budget amendment was completed for the dispatch contractual services account for $72,292 making the overage only $13,933 which can be attributed to increased street lighting costs. • Supply costs are estimated at $85,255 (10.70/o) more than budget. This is largely due to purchases of refuse stickers that are recouped through revenues and the tree program that was budgeted in FY16/17, but spent in FY17/18 and a grant was received to cover these expenses. • Other estimated expenditure are estimated at $6661ess than the original budget. • Capital Outlay expenditures are $1061361 more than the original budget, but a budget amendment was completed for $128,684 for roof top units and dispatch equipment. Note: City Administration anticipates changes to FY17/18 Estimated expenditures due to increases or decreases in revenues and expenses through the end of the fiscal year. FY18/19 Proposed Expenditures FY18/19 Proposed operating expenditures represent an increase of $236,697 (1.09%) from the FY17/18 operating Budget amount of $21,814,644. It is important to note that the FY17/18 Budget amount included a transfer of $1,429,579 for Capital Improvement and Capital Equipment funding which was completed with the FY16/17 audit, while the FY18/19 Proposed amount includes $1,406,500 in funding for capital. Highlights of changes to General Fund%Expenditures proposed for FY18/19 include: • Personnel costs are proposed at $188,094, or 1.13% higher in FY18/19 than budgeted in FY17/18. Personnel costs include salaries, overtime, health/dental/life/vision insurance, FICA, IMRF retirement, and uniforms. There are number of reasons for this increase. 1. Personnel costs related to salaries only for employees covered by collective bargaining units - IUOE Local 150 (Public Works, Parks employees), FOP Unit 1 (Police Patrol), and FOP Unit 2 (Dispatch) - account for $185,427 of the identified I ncrease from FY17/18 to FY18/19. 2. Police Pension costs are proposed at $2,019,703, an increase of $145,484. Police Pension costs are determined by an actuary retained by the Police Pension Board and are based on a number of factors, including wages, investment rate, and age of the workforce. The City has committed annually to funding the amount determined by the actuary in order to meet a required deadline for full funding by 2030. 3. Non -bargaining unit employees and Police Sergeants account for a total of $96,382 of the Personnel cost increase. Police Sergeants and other non -bargaining employees receive wage increases based on a combination of the previous year's Consumer Price Index for All Urban Areas (CPI-U), which was 1.7% in 2017, and an opportunity for an additional merit increase based on performance evaluations. The target increase average for FY18/19 for these employees is 2.75%, with some employees receiving less than this amount and some receiving more. This will be addressed later as part of the Personnel Summary - Wages discussion. 4. Health insurance costs are proposed to decrease $174,742 due to IUOE Local 150 insurance tier changes as well as joining Intergovernmental Personnel Benefit Cooperative for all non -bargaining unit employees. 50 • Contractual costs are anticipated to decrease by $32,247 (1.68%) from the amount budgeted in FY17/18. • Supplies expenditures are proposed increase by 1.8470 ($14,585) primarily due to increased forestry costs for trees. • Other expenditures are anticipated to decrease by $1,550 (0.22%). General Fund -Fund Balance On February 1, 2016 City Council adopted a new Fund Balance and Reserve Policy that, in summary, established principles and parameters to which balances for all municipal funds would be defined at the beginning of each budget period. This policy, which also meets the reporting requirements of Government Accounting Standards Board (GASB) Statement 54, which requires the formal adoption of a policy for the classification of fund balances to categories other than "unassigned", was established to provide financial stability in the various municipal funds, ensure adequate cash flow for operations, and provide some assurance that the City will be able to respond to emergencies with fiscal strength. In regards to the General Fund Fund Balance, specifically, the Fund Balance and Reserve Policy states: "General Fund -The unrestricted fund balance target should be set at 120 (4 months) of estimated operating expenditures including those expenditures reported in other Governmental Funds that receive annual operating transfers, with the exception of transfers intended to fund capital projects. If the unreserved fund balance falls below 120, a plan will be developed to return to the target balance. If the unreserved fund balance reaches a low of 90-day (3 months), the plan will be implemented to return to the fund balance to the target within a reasonable amount of time. One time revenues shall not be used to fund current operations." This level of fund balance shall provide the capacity to: • Offset unexpected downturns in elastic revenues due to fluctuations in the local, state and national economies or the loss of major sales tax contributor(s); • Offset negative fiscal changes brought about by action or legislation of another unit ofgovernment or agency; • Ensure the continued, timely repayment of debt obligations that the City may have in the event of a financial downturn; • Provide a sufficient cash flow for daily financial needs at all times; and, • Provide a funding source for unanticipated expenditures or emergencies that may occur. As identified, the parameters in this policy help to guide the City Administration in the development of the annual budget by ensuring that the General Fund Budget is presented as balanced, revenues over expenditures, while maintaining this reserve. Further, the establishment of the target minimum of 120 days provides clarity in identifying the level of funding that is available - once revenues, expenditures and fund balance are identified - to address the City's capital needs. In other words, any funds remaining after meeting the operational and reserve needs of the municipality are "Assigned for Capital." 51 In reviewing the General Fund Fund Balance as part of this discussion, the FY17/18 Budget includes a beginning fund balance of $7,303,780 based on FY16/17 audited financial information. Based on FY17/18 budgeted revenues and operating expenditures, it was anticipated that the ending fund balance would be $7,305,053; the ending unassigned 120 day fund balance at $7,283,317; with $21,736 remaining to be assigned for capital in developing the FY18/19 Budget. The FY18/19 Budget then identifies a beginning fund balance of $7,549,339. As in the discussion above, this amount will most likely change upon completion of the annual audit however this is not done until September/October, 4-S months after the budget is adopted and implemented. The FY18/19 unassigned and assigned for capital amounts are variable depending on the amount identified for capital projects (discussed later in this document). 52 Cry w General Fund - Expendltures and Fund Balance _ 1 - -- 7,062,262_ 81654,575 10,150,308 101338,848 7,303,780 I 7,303,780 7,549,339 245,559 3,36% Property Taxes _ 5,154,234 5,1310-967 5,124,611 5,134,224 5,139,820 S,1030443 _ 4967,359 4,947,812 4,942,359 (25,000) -0.50% State Sales Tax 6,498,608 6,276,057 6o684,864 6;965,782 7,03%037 70261,972 7,176,624 7472,633 1 7,69%625 523,001 7.29% _Local Sales Tax 1945,024 1,889,994 19� 84,108 1�-1�965,987 1,930,507_ _ 1,945,606 194% 18 1,984,869 1 1,972,882 24,764 1,27% State Income Tax 1 2,2861926 2,5531914 , _ 2,577,574 2,719,568 2,760,806 _ 2,544,967 J726,192 2,429 280 2,585,834 (140,358) -5,15% State Replacement Tax 65,089 63,090 74,513 70,909 74L72 77,522 - 650000 1 68,634 70 0`00 5,000 7,69% State Telecommunications Tax _ 195,439 1720143 163,424 133,945 143,736 143,912 140,000_I 136276 135,000 (5,000) 3.57% Pull Tabs _ 1,724 11313 1,729 II_ 995 _- _ 1,852 10000 1,000. - 0,00% lntertrack Wagering _-990,434 _ _82,759 65,150 _ 64,814 I__ 63,467 56,388 60,000 51,750 52,000 (8,000)-13,33% Video Gaming 31,688 122,178 211,327 1 272,108 431,980 375,000 4291S70 430,000 55,000 14,67% - - - Franchise Fees 219,719 1 297,253 295,166 306,122 ! 324,114 351,301 325,000 352,523 I 345,000 20,000 6,15% 312,976 _ 317,332 323,706 427,998 411,097 367,500 343,526 358,000 (9,500) 2.59% Licenses and Permits 331,235 __ _ _ Fines and Forfeitures 467,272 407,230 409,760 383,932 1 406,452 604,871 393,300 360,035 - 364,300 (2%000) -7.37% Charges for Services 1,240,897 11209,955 1,iJ2 208 1 1,177,601 1233,119 1168,023 1,163,642 1,175 374 1,215,134 51,292 4,41% Reimbursement _I 569,760 427,300 532,910 1, 557,855 752,987 11327,231 2,0431382 2,144,714 j1050,606 7,224 0.35% Interest 30493 _ 81199 2,199 1 2,218 13,508 45,543 25,0_00 48,671 35,000 10,000 40,00% Donations come 1%555 _ 14,823 17,772 22,402 13,500 12,550 100000 160100 10,000 0,00% Miscellaneous 2590125 178,790 241,657 265,599 64,212 4301729 43,000 37,911 43,000 - 0,00% TOTAL REVENUE 19,348,534 19,059,451 1%777,155 20,306,986 20,65%643 211918,987 211830,317 22,199,678 22,309,740 479,423 2,20% Personnel 12,318,505 - 12,359,946 --- 12,826,464 ! 13J223,387 13�15645 14,782 035 16,583,537 16,431,437 1 16,771,631 188,094 1,13% Contractual - - 1,641,108 - 1,542,668 - 1,657,086 - 1,696,261 1 1,910,655 1,926,080 1,922,181 - 2,008,406 1,889,934_ (320247) Supplies _ 754,347 841,898 - 812,219 ----- 789,214 1 764,364 861,454 793 585 878,840 1 808o170 14,585 1,84% Other 9,451 275,634 315,431 441011 i 496,69 8 603--299 71-50 7, - (1,550) -0,22% Capital Outlay 44,750 3,415 177,462 126,271 130,946 210,601 14,400 120,761_ 1,426,150 1,411,750 9803,82% Transfers Z 493,402 3,145,863 2,396,180 2,535,109 3,260456 61570,586 3,234,070 1,804,491 11872,306 (1,361,764) -42,11% TOTAL EXPENDITURES 17,311,S63 18,169,424 18,184,842 18,811,253 20,378,664 24,954,055 23,2581623 211954,119 23,477,491 218,868 0.94% TOTAL OPERATING EXPENDITURES 16,516,813 17,416,009 17,500,880 17,547,734 18,749,671 19,947,884 21,814,644 21,833,358 22,051,341 236,697 1.090/ ESS/(DEFICIENCY) REVENUES ENI)ITURES 21036,971 890,027 1 1,592,313 1 1,495,733 1 280,979 (3,035,068) 1,273 245,559 (1,167,7S1) 2,036,971 890 027 1,59� 1495,733 280,979 (3,035 068)' 1,273 245,559 (1,167,751) --- - _ � - I 6,172,235 _ 7,062,262 li 8,654,575 '_ 10 150,308 10,431,287 7,303,780 7,305,053 7,549,339 6,381,588 Less Unassigned - 120 days 5609,580 _5,806 Z07 5,997,898 6,223,320 6,7_75,024 7,3031780 7,283,317 a 7,283,317, 7,450,000 Assigned forCapital562,655_1256055 2,656,677 3,926,988 3,656,263 21,736 266,022 (1,0681412) General Fund Operating Budgets - Overview This section includes the budgets for all operating departments funded through the General Fund. General Fund Operating Departments include - Administration (100.01), Elected Officials (100.02), Community Development (100.03), Finance (100.04), Human Resources (100.05), Economic Development (100.06), Police Commission (100.21), Police (100.22), Police Dispatch (100.23), Public Works -Administration (100.30), Public Works -Streets (100.33), and Parks and Recreation (100.41). While these expenditures have already been summarized, in total, as part of the previous discussion A General Fund Revenues and Expenditures, the information contained in each of the following sections will provide details regarding each operating department. The narrative below is a summary overview of sections that follow. General Administration (100.01) Overall, the Administration operating budget is proposed to decrease by $511,778 or 35.54% in FY18/19 less capital expenses of $1,406,500). As identified earlier, the reason for this significant decrease is the result of the formation of separate budgets for the Human Resources and Economic Development functions and the transfer of all related costs into those budget accounts. Salary/Benefit costs are identified to decrease by a net of $367,369 or 51.6% and Health Insurance expenditures are proposed to decrease by $40,510, or 38.5%. Contractual Services expenditures -which includes the mosquito abatement program, participation in the countywide Dial -A -Ride program, and building maintenance for the municipal center are identified for a net decrease of $107,810 (23.29%) due to a decrease in the amount of funding that the City pays for public transportation services as part of the Dial -A -Ride Program in the Contractual line item, and reclassifying expenses for Telephone Costs to the Information Technology Budget. Corporate Legal Fees include the City Attorney, Traffic Attorney and Collective Bargaining representation and are identified to decrease $25,000 in FY18/19. Supplies expenditures are proposed to increase by (t8,250 due to increased garbage sticker purchases and Other expenditures -which includes Administrative Expenses and internal transfers for Risk Management and Information Technology - is proposed to decrease by $4,339. Elected Officials (100.02) The Elected Officials budget is proposed for an $807 decrease, or 0.8%, based on transferring telephone costs to the Information Technology budget. Community Development (100.03) The Community Development budget is proposed at a decrease of $133,625, or 15.69%. Salary/Benefit costs are budgeted to decrease by $112,878 (15.73%), including decreases in Health, Life and Dental Insurance. Contractual Services are identified to decrease by $10,800 (20.87%). Approximately 75% of property maintenance costs are recovered through liens. Supplies will increase by $250 (3.03%), while the internal transfer for Information Technology will decrease by $8,647. Most of the decreases within this department are shifts of employees and expenses to the Economic Development Department as some costs were shared in previous budgets. 55 Finance (100.04) Salary/Benefit costs are anticipated to increase by $28,352 (6.96%) due to an office employee going to full-time status, Contractual costs decrease by $2,300, and Supplies remain flat. Human Resources (100.05) All Salary/Benefit costs for the Human Resource Director have been reclassified to the Human Resources budget as well as expenses for Wellness, Medical Services, and Training. Economic Development (100.06) Salary/Benefit costs for the Director of Economic Development were reclassified from the General Administration budget, the Economic Development Coordinator was reclassified from Community Development, and the Economic Development Assistant was reclassified from the Parks Department. Expenses were added for Zoning Maps and Comprehensive Plan updates, and training/conferences/seminars and a portion of these expenses were reclassified from the Community Development budget. Police (100.22) The Police budget is proposed at an overall increase of $291,991, or 3.14% from FY17/18. While costs have been reduced in many line items, Salary/Benefit costs are identified to increase by $293,443 due to adjustments to FOP bargaining unit salaries ($147,940), a decrease to health insurance costs ($54,442) and, most significantly, the transfer for Police Pension of $145,484. As discussed earlier Police Pension costs are determined by an actuary retained by the Police Pension Board and are based on a number of factors, including wages, investment rate, and age of the workforce. The City has committed annually to funding the amount determined by the actuarial in order to meet a required deadline for full funding by 2030. Dispatch Center (100.23) FY18/19 represents the second full year of operation for the fully developed, and staffed, dispatch center. The FY17/18 budget established the baseline budget for the dispatch center moving forward. The proposed FY18/19 budget has been presented and approved by the partners of the dispatch center. The total amount proposed for the dispatch center in FY18/19 is $2,482,908. As a reminder, this amount is offset by more than $1.7 million as a result of the partnerships with the City of Woodstock, City of Harvard and McHenry Township Fire Protection District and through charges for dispatch services paid by customers of the dispatch center. These are reflected as General Fund Revenues and included inthe General Fund - Revenues, Expenditures and Fund Balance Summary sheet. Public Works Administration (100.30) The overall Public Works Administration budget is proposed to increase by $3,049 (0.68%) primarily due Salaries/Benefits. Public Works Streets (100.33) The FY18/19 Public Works Streets budget is proposed to increase by a total of $50,562 (1.68%) from FY17/18. Salaries/Benefits are proposed to decrease by 5,037 due to the IUOE Insurance premiums 56 decreasing. Additionally, Contractual costs have been increased to account for contract mowing, Street Lighting Costs have been increased by $35,000 and Materials and Supplies costs are proposed higher due to increasing the forestry budget. Parks and Recreation (100.41) As a reminder, the Parks and Recreation budget encompasses not only personnel and other operational costs of the Parks Maintenance Division, which includes bargaining unit employees, but also all programming expenses related to the Recreation Division not associated with the McHenry Recreation Center. Revenues from recreation programming, reflected in General Fund Revenues, offset many of these costs. As proposed in FY18/19, Salary/Benefit costs are identified to decrease by a total of $13,489 (0.92%); Contractual Services to increase by $5,997 (1.35%); Supplies to increase by $12,300 (6.42%); and, Other costs to decrease by $951. The overall Parks and Recreation budget is proposed at 0.17% lower. 57 Personnel Summary of Wages - All Funds Overview Prior to presenting a summary of General Fund operating departments it is important to define that the '4010 Salaries" budget line items in each operating budget include more than just employee wage costs but also includes annual payouts for sick time per the City's Personnel Manual. In addition, the 4010 line item for all but the Police budget is a combined total of both bargaining and non -bargaining employees within that specific budget. As such, the 4010 line items in each operating budget show different percentage variances. In an effort to provide the reader with a more accurate summary of wages, staff has developed the attached Personnel Summary — Wages Only (All Funds) sheet. This sheet includes a summary of wages only (e.g., no benefits, sick day buyouts, etc.) as an overview of all municipal departments, and identifies the net then by operating budget and/or fund. Each summary presents non -bargaining and bargaining employees separately, and identifies the FY17/18 Budgeted wages, FY17/18 Estimated wages, FY18/19 Proposed wages, the monetary variance from the FY17/18 Estimated wages and the FY18/19 Proposed wages, and the percent variance from the FY17/18 Estimated wages to the FY18/19 Proposed wages. Note that the last two columns is a comparison of estimated to proposed wages as distinct from a budgeted to proposed comparison since the FY18/19 Proposed wages are based on an increase from the FY17/18 Estimated wages. In general, significant increases or decreases in dollar amounts and percentages, as identified, are the result of employee reassignment or reclassification or increases and decreases in the actual number of employees. One example of this is the decrease in General Administration. Based on the creation of separate budget accounts for Human Resources and Economic Development in FY18/19, the salaries for the Human Resources Director and salaries for the Director of Economic Development, Economic Development Coordinator, and an Economic Development Office Assistant (Row 36) were moved into the corresponding budgets. An example of a significant increase is in the Finance Department which is the result of the reclassification of an office employee from the Parks Department. Non -Bargaining Unit Employees FY18/19 is the third year that non -bargaining employee wages are to be determined based on a combination of an identifiable "Cost of Living Adjustment" (COLA) in the form of the previous calendar year's Consumer Price Index for All Urban Areas (CPI-U) and merit. Previously, (and before the 2007/2008 recession), non -bargaining employees received automatic "step" adjustments each year (which were in the range of 3%-4%) and a COLA increase. While annual evaluations were undertaken, the actual amount of wage increase was not merit -based. The Consumer Price Index (CPI) is a measure of the average change in prices over time in a fixed market basket of goods and services. The CPI for All Urban Consumers, or CPI-U, applies to approximately 88% of the nation's population, including McHenry County. CPI-U is an economic indicator and is the most widely used measure to determine inflation and indexation (i.e., adjusting income payments). As a component of McHenry's compensation system for non -bargaining unit employees, the CPI-U ending in December of each year, as determined by the United States Bureau of Labor Statistics, serves as the base salary increase the succeeding municipal fiscal year (May 1st). To be eligible for this base increase an employee must receive an overall average of at least 3.0 out of 5.0 on the Annual Employee Performance Evaluation. Individuals falling below a 3.0 are not eligible for a CPI-U adjustment and are placed on a performance improvement plan. The CPI-U average since 1992 is 2.128% and the CPI-U for the period ending December 2017 is 1.7% (down from 2.1% from the previous December). In addition, as identified above, non -bargaining employees are also eligible for a merit increase based on the results of annual performance evaluations. This is a percentage of salary over and above the CPI-U wage adjustment and the amount of merit available varies based on funding identified in the budget. Because performance evaluations are not completed until after the budget process an overall average for non -bargaining unit employees is used for the purpose of developing the budget. For FY18/19 this amount is identified at 2.75%. This would provide for a 1.7% CPI-U adjustment with an additional average merit increase of 1.05%. Therefore, most non -bargaining unit rows will show "2.75%" as the percent variance from FY17/18 Estimated to FY18/19 Proposed. As described earlier, percentages higher or lower than the 2.75% are the result of specific changes within that department resulting in an increase or decrease to the FY17/18 Estimated amount upon which the FY18/19 Proposed amount is based. The FY18/19 Budget, as proposed, includes a net DECREASE (CPI-U +Merit) for all non -bargaining unit employees, including police Sergeants, of $22,919 (1.19%) from the FY17/18 Estimated amount. This is primarily due to the retirement of two long-time employees and the decision to leave one full-time position in Community Development vacant (Plans Reviewer). Of note, the FY18/19 Proposed amount for non -bargaining employees and police sergeants ($4,253,808) is an increase of only $524 from the FY17/18 Budget amount of $4,253,284. Bargaining Unit Employees Unlike non -bargaining employees, bargaining unit employee wages are not based on merit or the CPI-U. Rather, increases for IUOE 150 (Public Works, Parks), FOP Unit 1 (Patrol) and FOP Unit 2 (Dispatchers, Records Clerks, CSOs) are based on step increases included in their respective collective bargaining unit agreements and negotiated "Cost of Living Adjustments" (COLA). As such, the percentages identified for bargaining unit wages are the result of approved contractual agreements. Significant increases (such as FOP Unit 2) are the result of an increased number of employees or in the transfer of employees from one operating division to another (such as Public Works — Streets and Water, Sewer, Utility). Whether bargaining ornon-bargaining, the dollar amounts shown on this sheet are included in the "4010 Salaries" line items of the operating department budgets as presented below. Personnel -W � Non -Bargaining Police Sergeants Bargaining - IUOE_150 Bargaining - FOP Unit 1 Bargaining - FOP Unit 2 TOTAL OVERALL WAGES (-- - Non -Bargaining Bargaining - IUOE 150 TOTAL GENERAL ADMINISTRATION � 'Non -Bargaining TOTAL COMMUNITY DEVELOPMENT Non -Bargaining TOTAL FINANCE Non -Bargaining TOTAL HUMAN RESOURCES Non -Bargaining TOTAL ECONOMIC DEVELOPMENT Non -Bargaining Sergeants Bargaining - Unit 1 _ Bargaining - Unit 2 (Non -Dispatch) TOTAL POLICE jffpWFpWh (100.23) j Non -Bargaining Bargaining - Unit 2 (Non -Records) TOTAL POLICE DISPATCH (All Funds) 3,542,714 3,566,157 3,523,694 710,570 710,570 730,114 21608,635 3,069,128 11442,620 21530,055 31074,903 1,4561293 2,584,595 3,167,877 1,498,095 111373,667 11,337,978 11,504,375 521,367 519,905 221,606 551064 54,930 46,255 5761431 574,835 267)861 502,291 482,405 419,003 502,291 4821405 419,003 279,211 285,308 298,731 279,211 285,308 298,731 92,549 (42,463) 19,544 54,540 92,974 41,802 166,397 (298,299) (8,675) (306,974) (63,402) (63,402J 13,423 13,423 2.75% 2.16% 3.02% 2.87% 1.47% -57.38% -15.79% -53.40% -13.14% 13.14% 92,549 � #DIV/0! 92,549 #DIV/0! i 197,382 197,382 � #DIV/0! 197,382 197,382 #DIV/01 569,330 569,961 595,977 26,016 4.56% 710,570 710,570 730,114 19,544 2.75% 3,069,128 3,074,903 31167,877 92,974 3.02% 206,316 210,004 220,048 10,044 4.78% 4,5551344 4,5651438 4,7141016 148,578 3.25% 94,469 94,748 97,353 2,605 2.75% 11236,304 11246,289 1,278,047 311758 2.55% 1,330,773 11341,037 11375,400 34,363 2.56% r�� Non -Bargaining TOTAL PUBLIC WORKS - ADMINISTRATION Bargaining - IUOE 150 TOTAL PUBLIC WORKS - STREETS iv on-tsargammg Bargaining-IUOE 150 TOTAL PARKS AND RECREATION Non -Bargaining TOTAL COMMUNITY DEVELOPMENT 270,035 270,336 277,684 71348 270,035 270,336 277,684 71348 3261199 I 3261058 335,026 81968 958,710 95SI232 968,877 13,645 11284,909 11281,290 11303,903 22,613 �� 386,949 333,826 395,548 341,701 349,915 343,670 720,775 I 737,249 693,585 I 70,602 101,785 104,061 70,602 101,785 104,061 i - Non -Bargaining_ _�- - 391,493 388,572 399,259 Bargaining -IUOE 150 11261,035 11178,192 1,225,793 TOTAL WATER, SEWER, UTILITY FUNDS 11652,528 11566,764 1,625,052 nfoA tion' Non -Bargaining 130,768 131,531 135,148 TOTAL INFORMATION TECHNOLOGY 130,768 131,531 135,148 (45,633) 1,969 (43,664) 2,276 2,276 2.72% 2.72% 2.75% 1.43 1.76% -11.54% 0.58% -5.92 2.24% 2.24% 10,687 2.75% 47,601 4.04% 58,288 3.72% 3,617 2.75% 3,617 2.75% Gil Fiscal Year 2 018/2 019 Annual Budget Administration 62 General Administration - Overview The General Administration Budget contains personnel and operational functions related to the provision of general administrative services and, in FY18/19, includes capital projects expenditures from the General Fund Balance as directed by City Council. New in FY18/19, due to operational/department restructuring, economic development and human resources functions have been formed under separate departmental budgets (Economic Development and Human Resources) and, as such, all related expenditures are now found within these. Next, municipal center building and grounds maintenance activities are now included under the Department of Community Development. Finally, capital projects to be funded through the General Fund Balance will be accounted for in this fund for FY18/19. Due to all of these changes, the General Administration budget is substantially increased from previous years. While personnel costs are reduced $409,032 from the transfer of personnel to other departments, "Other" costs related to Public Improvements have increased the budget by $1,406,500. The Office of the City Administrator, which includes the positions of City Administrator and Deputy City Clerk/Executive Assistant, is responsible for providing management services, budgeting, legislative support, and communications to elected officials, staff, and the public in carrying out the policy and direction as set by the City Council. The City Administrator is also responsible for the direction of Information Technology services. General Administration - Organizational Chart General Administration - FY17/18 Accomplishments • Coordinated transition of newly elected Mayor and one Alderman. • Worked with Mayor to develop posting on Facebook weekly municipal eBlasts in order to inform public of important municipal activities. • Introduced Nixle as new communication tool for Administration and Public Works information. The Police Department has used Nixle for some time. • Developed 5-year Capital Improvement Program (CIP). • Presented a balanced FY17/18 Budget for City Council consideration. • Engaged Sterling Codifiers to undertake "codification" of the McHenry Municipal Code. • Continued maintenance of the municipal website through GovOffice to provide information to our residents, invite visitors and businesses to our community, offer transparency in government, and provide increased opportunities for interaction such as bill payment, FOIA submittal, permit application, etc. Specifically, and new "Transparency Portal" was created to make it easier for residents to access important municipal information. • Continued upgrade of City Council audio/visual capabilities of City Council Chambers through the installation of monitors to project Council Agendas and presentations during meetings for the viewing of the public in attendance. • Collated and developed information for three (3) City Newsletters (2 print,l online). 65 General Administration - FY18/19 Goals & Objectives • Support new Executive Assistant/Deputy City Clerk in understanding the various roles and stakeholders of the municipality. • With the Mayor and Director of Community Development, analyze the potential for physical restructuring of departments to move Department of Community Development to first floor of Municipal Center. • Continue and finalize the review, updating and codification of the McHenry Municipal Code. • Enhance use of Nixle for public communication. • Coordinate and develop the FY19/20 - FY23/24 5-Year Capital Improvement Program. • Develop an operationally balanced FY19/20 Budget for consideration by the City Council ensuring that the City maintains, per policy, a 120 day operational reserve and that funding over this amount are assigned and committed to capital improvement and capital equipment projects. Budget should meet or exceed the guidelines established for Distinguished Budget designation by the Government Officers Finance Association. • Continue engagement with the Illinois Municipal League and other stakeholders to monitor legislation at the State level that may impact municipal funding. • Engage in discussions with other McHenry taxing bodies regarding the extension of the Downtown Tax Increment Finance District. With consensus, begin the process for this extension to take place. • Continue to provide leadership and oversight to all departments to provide the highest quality of services in the most cost and time efficient manner to customers. General Administration - FYId/ 19 Performance Measures • Item Goal Description Proposed Outcome(s) Develop an updated CIP Was the CIP updated and Capital Improvement and transmit to City transmitted to the City January 2019 Program (CIP) Council in January and February 2019 Council in January. approved in February? Develop and present a Was a balanced operating Annual Budget balanced operating budget budget presented for City April 2019 for City Council Council's consideration? consideration. GFOA Distinguished Prepare an annual budget Did the City's budget for Budget Award that achieves national the prior year receive the Yes Presentation recognition via the GFOA's GFOA's Distinguished Award Program. Budget Award? Respond to a resident /o o of time that General Resident complaint or inquiry Administration staff o 100/o Complaints/Inquiries within one working day responds within one day. from receipt,ANNEMEYL- City Council committee and regular meeting % of time City Council City Council Committee agenda packets will be Committee and Regular and Regular Meeting distributed no later than Meeting Agenda packets o 100 /o Agenda Packets the end of business completed on time. Wednesday prior to W scheduled meetings. To analyze potential of Move Community To move Department of physically moving Identify if physically and Development to 1st Floor Community Development Department of Community operationally possible and, if of Municipal Center to 15 Floor of Municipal Development to 1st Floor so, to develop plan for move. Center to increase efficiency and customer service. 67 General Administration - Fund Summary [Fund 1 4010 Salaries_ 4050 Overtime 4110 Salaries - Seasonal 4220 Board and Commission Expense 4310 Health Insurance 4320 Dental Insurance j 4330 Life Insurance 4340 Vision Insurance 4410 FICAMedicare 4420 IMRF Retirement 4510 Uniform Allowance TOTAL SALARIES/BENEFITS 5110 Contractual S230 Corporate Legal Fees (All Departments) 5310 Postage and Meter 5320 Telephone 5330 Printing and Publishing 5370 Repair and Maintenance 5410 Dues 5420 Travel Expense S430 Training_ 5450 Publications SS10 Utilities TOTAL CONTRACTUAL SERVICES 6110 � Materials and Supplies 6210 Office Supplies 6250 Gasoline and Oil 6270 Small Equipment TOTAL SUPPLIES I 6940 !Administrative Expense 8200 Buildings 8600 Streets 8900 Public Improvements 9920 Purchase of Services - Risk Management 9922 Purchase of Services - Information Tech TOTALOTHER u _ 555,589 54%B15 1 566,4511 S83,9S6 I 574,835 273,606 (310,350)-S3.15% 1,713 2,390 2,783 1,0001i 1,851 11000 0,00% - - 1,433 #DIV/01 6,010 6,903 7,164 81500 71200 16,000 7,500 88,24% 91,068 92,091 96,560 101,000 82,677 61,009 (39,991)-39.60% 3,887 3,479 3,445- 31631 _ 2,952 3,333 (298) -8,21% 395 396 427 _ 332 423 214 (118)-35,54% 221 254 -227 212 206 109 (103)-48.58% -- -- ---- _ 39,137 38,621 j 39,765 43,266 391895 19,178 (24,088)-55,67% 72,8S4 72,081 11 73,684 74,757 71,723 34,326 (40,431)-54,08% 450 450 0,00% 770,874 766,030 791,939 817,104 781,762 409,225 (4071879)-49.92% 101,695 200,142 12S,068 1S7,210 132,968 98,300 (58,910)-37,47% 242,468 298,466 296,980 250,000 261,948 225,000 (25,000)-10,00% 919 41959 9S2 1,000 815 1,000 0,00% 8,267 9,082 16,709 20,000 13,970 (20,000)-100,00% 2,889 21407 3,275 _._21500 8,979 2,S00 0,00% 51363 165 180 750 750 0,00% 17,280 20,684 18,227 20,000 26,061 20,000 0.00% 31486 51197 41432 1 41000 41496 4,000 0.00% 4,244 3,074 81455 51900 - 731 21000 (3,900)-66,10% 382 207 781 500 485 S00 0.00% 91735 1,269 1,045 11000 614 11000 0,00% 3961728 545,652 4767104 462,860 451,067 355,050 (107,810)-23,29% 27,532 74,S59 SS,531 61,45079,929 69,700 8,250 13.43% (688) 21303 500 �- 1,500 4,512 1,500 0.00% 4S8 , #DIV/01 160 103 250 2S0 0,00% 27,462 76,862 56,134 63,200 84,441 71,450 8,2S0 13,05% } 7,964 2,303 12,153 13,800 j 11,740 13,800 - 0.00°/a 15,986 _ 66,288 #DIV/0! 345,000 345,000 #DIV/0! _ I � - 11061,500 11061,S00 #DIV/0! 711607 12,712 52,732 48,302 48,302 48,302 0,00% 27,858 29,867 33,263 34,614 34,614 30,275 (4)339)-12.S4% 107,429 44,882 114,134 96,716 160,944 1,498,877 11402,161 1449,77% TOTAL GENERAL ADMINISTRATION 1,302,493 1433,426 1,438,311 1,439,880 11478,214 21334,602 894,722 62.14% Fiscal Year 2018/2019 Annual Budget Officials Elected Officials - Overview The Elected Officials Budget contains personnel and operational functions related to the elected positions of the municipality. These include the Office of the Mayor, the seven (7) Aldermen, and the City Clerk. The primary functions of these elected positions are described below. The Office of the Mayor provides leadership, initiative, and direction necessary to provide quality services to the citizens of McHenry. The Mayor interacts continuously with the appointed City Administrator in ensuring that the established policies and ordinances of the municipality, as set by the City Council, are carried out by the various departments, divisions and employees of the city. The City Council, comprised of seven (7) Aldermen representing geographically defined wards and elected to staggered four (4) year terms, is the legislative body for the City of McHenry. The authority of the City Council is expressed during regularly scheduled City Council Meetings (1st and 3rd Mondays A the each month) through the adoption of policies, resolutions, ordinances and other related actions as deemed appropriate to promote and protect the high level of service quality and financial stability of the City. The City Clerk, elected every four (4) years, has the responsibility for taking minutes for all regular City Council meetings, Council Committee meetings, Committee of the Whole meetings, and Planning and Zoning Board meetings. The City Clerk is also responsible for records management of the municipality. The City Clerk is assisted in these efforts by a designated Deputy City Clerk who is also a full-time employee of the city. Elected Officials - Fund 1 4010 Salaries 36,032 41,587 - � - - ; - - #DIV/0! 4210 Salaries - Elected Officials 40615 48,134 53,000 53,900 _ 52,758 j 53,900 0,00% 4310 Health Insurance 8,259 81276 • #DIV 0! 4320 Dental Insurance 396 388 #DIV/O! 4330 Life Insurance 40 40 3 #DIV/01 4340 Vision Insurance 67 64 , #DN/0! _ 4410 FICA Medicare 5,762 6,983 3,804 41123 41050 41123 0,00% 4420 IMRF Retirement 4,767 4,851 - #DIV/O! TOTAL SALARIES/BENEFITS 95,938 11OJ323 56,807 5%023 56,808 58,023 0,00% 5310 Postage and Meter 3,329 71205 2,855 6,300 81605 6,300 0,00% 5320 Telephone 930 928 1,234_ _ 1,000 11576 (1,000)-100,00% 5330 Printing and Publishing 7,628 4,206 -- 10,064 61500 948 61500 0,00% 5410 Dues 21285 1,358 11390 F 17100 660 11100 0,00% 5420 Travel Expense 259 206j 250 250 0.00% 5430 Training 422 24 520 1,500 1,500 0100% 5450 Publications 325 426 500 - S00 0,00% TOTAL CONTRACTUAL SERVICES 14,919 140406 16,269 17,150 11,789 16,150 (11000) -5,83% 6210 Office Supplies 148 407 200 464 200 0,00% 6910 Employee Recognition 30 - , #DIV/01 TOTAL SUPPLIES 178 407 200 464 200 0,00% 6940 Administrative Expense 18,953 19,872 20,461 19,300 19,119 19,300 0,00% 9922 Purchase of Services - Information Tech 141830 16,412 5,843 61313 6,313 61506 193 3.06% TOTAL OTHER 33,783 36,284 26,304 25,613 250432 25,806 193 0,75% TOTAL ELECTED OFFICIALS 14-4818 161m420 1 -0,80% %1 Fiscal Year 2018/2019 Annual Budget Community �z Community Development - Overview The Department %J Community Development is responsible for promoting the health, welfare, safety and quality of life to McHenry citizens, property owners, visitors and commercial interests. These services are provided by an experienced and professional staff that consists of a Plan Reviewer, Commercial Building Superintendent, Residential Building Superintendent, Plumbing Inspector, and a Code Enforcement Officer. The administrative staff within the department includes an Administrative Assistant and Office Assistant. City of McHenry Community and Economic Development The Department relies on a partnership with local and regional government and public agencies, community based organizations and the business community to succeed in its mission. The Department of Community Development strives to achieve the highest level of customer service and professionalism in helping the community thrive. Additionally, the Department of Community Development coordinates closely with the Director of Economic Development to ensure that business expansion, relocation and development projects remain top priorities for review and that processes are streamlined to the extent possible while maintaining the appropriate attention to detail in regards to applicable codes and other guidelines. / J Community Development - Organizational Chart 74 Community Development - FY17/16 Accomplishments • Completed the review and implementation of a new Leardown ordinance. • Reviewed fee structure for all permits. • Continued efforts to digitize historical building documents. • Identified areas within the Municipal Code that are in need of updating. This included garbage receptacle ordinance and burning regulations. • Increased efforts with Economic Development Director to retain and attract new business to McHenry. • Coordinated Business Site Visits, particularly new businesses, and enhance relationships with all businesses. • Continued efforts to maximize the use of the BSA software and explored the cost of the citizen portal that allows citizens and contractors to submit electronically. • Worked with the Illinois Department of Health on establishing guidelines for new water service and fire service installations. • Continued a focus on customer service enhancements. • Continued to coordinate with Administration to cross -train point of service employees with a goal of establishing a seamless, single point of customer contact. • Major building permits finalized included White Oaks Memory Care, Dunkin Donuts, McHenry Downtown Theater and D.C. Cobbs. 75 Community Development - FY18/19 Goals & Objectives • Continue to review and update outdated ordinances. • Concentrate on updating the current website with more customer service -oriented material. • Create and implement a social media program to help get information to the citizens as it relates to Community Development. • Finalize and implement a communitywide Code Enforcement Strategy. • Continue to provide a high level of customer service to residents and businesses. • Continue to supply exemplary building inspection services on all projects including the Ricky Rockets Development and the Pearl Street Commons. • Focus on continuing education of employees within the department to ensure that we provide the highest level of service possible. 76 Community Development - FY18/19 Performance Measures Item Goal Description Proposed Was the program Create a Social Media implemented to include Social Media Program program to allow weekly social media posts Implementation of social information to be relayed relaying Community media program to the public Development Information? To review, update and Was the Community Addition or expansion of Community Development expand Community Development website useful Community Website Development information improved? Development on the website on website To finalize the Code Code Enforcement Enforcement Strategy and Was the strategy Use the strategy to guide code Strategy use it to help stay completed and enforcement procedures consistent with implemented? enforcements Identify, review and Did the review of the ordinances take place and To continually update Update Municipal Code update Municipal Code were they updated were ordinances Ordinances needed? nmunity Development - Fund Summary (Fund 100, Department 03) 4010 Salaries 340,813 357,769 473,614 502,901 SO4o460 422,919 (79,982)-15.90% 4030 Salaries - Part Time 1,099 21688 13,612 15,749 - #DIV/0! 4050 Overtime #DIV/0! 4310 Health Insurance 89,457 96,380 105,650 106,035 96,024 910746 (14,289)-13.48% 4320 Dental Insurance 3,779 41030 41309 4,379P 4,134 30427 (952) 21.74% 4330 Life Insurance 218 218 292 316 276 308 (8) -2,53% 4340 Vision Insurance 112 155 313 358 : 345 236 (122)-34,08% 4410 FICA Medicare 241450 25,840 35,695 38,472 . 39,448 32,353 (60119)-15.91% 4420 IMRF Retirement 45,247 47,257 63,445 64,271 67,010 52,865 (11,406)-17,75% 4510 Uniform Allowance 200 7S0 225 750 0.00% TOTAL SALARIES/BENEFITS 505,175 534,337 697,130 717,482 727,671 604,604 (112,878)-15,73% Contractu 5110 Contractual 31,404 41,549 21,709 400000 21,703 32,700 (7,300)-18,25% 5310 Postage and Meter 1,376 11349 11192 1,000 620 1,000 0,00% 5320 (Telephone - 21400 21261 21985 21500 4,741 (2,500) 100.00% 5330 IPrinting and Publishing _ 672 210 104 S00 105 500 0,00% 5370_]Repair and Maintenance 1,373 1,841 879 2,000 4,835 2,000 0,00% 5410 (Dues 830 604 429 10000 345 1,000 0,00% _5420 _JTravelExpense _ 250 2S0 0,00% 5430 !Training 11098 730 11859 41000 2,528 3,000 (10000)-25.00% 5450 Publications 200 2,243 500 101 500 0,00% TOTAL CONTRACTUAL SERVICES 39,153 480744 31,400 51,750 34,978 40,950 (10,800)-20,87% 1 6110 Materials and Supplies 6,573 65 61262 2,250 11740 2,000 (250)-11,11% L 6210 Office Supplies 21296 11973 2,338 21500 21669 21500 0.00% _ 6250 Gasoline and Oil _ 3,285 31953 21644 3,000 2,636 31000 0,00% 6270_,SmallEquipment 130 101 934 Soo 60 11000 Soo 100,00% TOTAL SUPPLIES 12,284 61092 12,178 81250 71105 81500 2S0 3,03% 7110 Capital Lease Principal Payments 1,474 1,547 667 1,550 1,550-100,00% --- -- ( ) k 9920 Purchase of Services - RisMana Management I_ g 25,295 25,295 25,116 23,540 23,540 23,540 - 0.00% 9922 Purchase of Services - InformationTech 37,117 38,554 45,744 48,966 48,966 40,319 (81647)-17.66% TOTALOTHER 63,886 65,396 71,527 74,056 72,506 63,859 (10,197)-13.77% amill TOTAL COMMUNITY DEVELOPMENT 620,498 654,569 8124235 8510538 8428260 717,913 (133)625] • ;1f ` awwwwo14 IV?.:.. ; 06 • Finance - Overview Mission Statement It is the mission of the Finance Department to account for all municipal resources and to apply such resources in a manner that is most beneficial to the citizens of McHenry. The primary operating functions of the Finance Department are as follows: • Administration: Responsible for management of financial affairs of the city, including budgeting and financial planning, and supervision of operations within the department. • Accounting: Provides the City's financial reporting, payroll processing, accounts payable and receivable, purchasing, fixed asset reporting, special tax collections, billing, and auditing functions. • Revenue: Collects various revenues, manages the Police Pension fund, ensures payments to retirees are processed, and invests idle City funds. Note that the Finance Department expenditures include, under "Other", transfers to other funds. Finance - Organizational Chart Finance - FY17/18 Accomplishments • Worked with the new time entry software to setup all employees to begin to eliminate paper time sheets for all full time employees. Also, began training on how to use the software for scheduling. • Completed analysis on water/sewer usage and capital rates in order to ensure operating and capital expenses are covered. • Updated the IEPA loan debt service fee and analyzed number of users to ensure annual debt service expenses will be covered with the debt service fee revenue. • Continued to work to find alternative methods for residents to pay bills electronically as well as have the ability to look up their bill electronically. • Recognized by the Government Finance Officers Association (GFOA) with the Distinguished Budget Award for the FY17/18 Budget document. This is the third year in a row that the City has received this award. Finance - FY18/19 Goals & Objectives • Improve management of the City's investment portfolio, including implementing cash flow modeling and investment strategies. • Create a procedure manual for all duties within the finance department including screenshots of the Tyler software to help with cross training. • Begin cross training within the finance department to ensure vacancies can be covered. • Improve communication of information to new residents. • Implement a new electronic payment method for all bills, which will create efficiencies because payments will no longer have to be manually posted. • Implement the new time entry software and work to integrate the software with the Tyler Financial Software. • Submit FY18/19 Budget to the GFOA for consideration for the Distinguished Budget Award. Finance - FY18/19 Performance Measures Performance Performance Performance Item Goal Measure Proposed IN Develop an update Was the quarterly report Quarterly Reports quarterly reports and updated and transmitted September 2018, December 2018, transmit to the to the board quarterly? March 2019, and June 2019 appropriate board. Develop and present a Was a balanced operating Annual Budget balanced operating budget budget presented for City April 2019 for City Council Council's consideration? consideration. Continually have an Whether or not an An unqualified opinion issued on the Annual Audit unqualified opinion has 18/19 audit presented to council in unqualified audit opinion been issued September or October of 2019 % of Time that Finance Customer and Vendor Return all calls within one Department Responds to 100% of the time respond to calls Concerns/Complaints business day Calls within one business within one business day. day Annually apply for the Illinois Government Annual application of Apply once budget has been approved Annual Budget Award Finance Officers budget award submitted by the City Council Association (IGFOA) to the IGFOA budget award Finance - Fund Summary (Fund 100, Department 04) 4010 Salaries � 245,489 Z34,712 229,686 241285 237,124 305,231 63,946 26.50% 4030 Salaries - Part Time 24,874 23,358 40,804 41926 38,287 (41,926)-100,00% 4050 Overtime ( #DIV/01 4310 Health Insurance 56,282 69,284 62,779 63,239 58,555 65,820 2,581 4,08% 4320 Dental Insurance 21436 2,859 2,375 2,337 2,229 2,382 45 1,93% 4330 Life Insurance 172 182 184 200 191 246 46 23,00% 4340 Vision Insurance 181 132 157 251 217 267 16 6.37% 4410 FICAMedicare 19,473 18,302 19,315 21,666 19,733 23,350 11684 7.77% 4420 IMRF Retirement 35,410 33,821 35,237 36,194 34,537 38,154 11960 5,42% 4510 Uniform Allowance #DIV/0! TOTAL SALARIES/BENEFITS 384,317 382,650 390,537 407,098 390,873 435,450 28,352 6,96% 5110 Contractual I_ 4,713 -%S44 13,370 91500 13,163 9,500 0,00% 5310 Postage and Meter _ 26,821 32,291 26,787 30,200 _ 28,341 30,200 0,00% 5320 Telephone 545 501 628 _ 600 11837 (600)-100,00% 5330 Printing and Publishing 13,486 15,786 26,939 21,235 13,869 19,535 (1,700) -8,01% 5410 Dues 533 5.25 750 52.5_ 338 525 0,00% 5420 Travel Expense j - -_I , #DIV/0! 5430 Training _ - _ S00 500 0.00% 5450 Publications - - , #DIV/01 TOTAL CONTRACTUAL SERVICES 46,098 58,647 68,474 62,560 57,548 60,260 (2,300) -3,68% - 6110 Materials and Supplies 34,677 82 291 387 - #DIV/01 6210 Office Supplies 7,648 81387 5,765 71000 776 71000 0,00% 6250 Gasoline and Oil - - #DIV/0! 6270 Small Equipment �- 1,665 219 , #DfV/01 TOTAL SUPPLIES 43,990 81688 6,056 7,000 11163 7,000 0,00% 6940 Administrative Expense #DIV/0! 6945 Development Expense �387,105 437,871 546JS24 650,000 650,000 650,000 0,00% 6961 Miscellaneous Expense - - -� - - - - , #DIV/0! 9904 Transfer to Debt Service 692,826 729,960 726,318 7351361 735,361 739,993 41632 0,63% 9907 'Transfer to SSA #DIV/0! 9909 Transfer toMFT - #DIV/01 9942 Transfer to Capital Improvement Fund 559,423 1,254,822 41795,570 1,1910209 (1,191,209)-100,00% 9944 Transfer to Band Fund 15,000 15,000 150000 12,000 12,000 12,000 0,00% 9945 Transfer to Civil Defense Fund 5,000 5100081000 81000 81000 8,000 0,00% 9946 Transfer to Capital Equipment Fund 277JB25 243,225 - 238,370 - (238,370)-100,00% 9920 Purchase of Service - Risk Management 19,730 19,730 17,178 16,226 16,226 16,226 0,00% 9922 Purchase of Service - IT 49,073 53,960 63,655 64,763 64,763 66,889 21126 3.28% TOTAL OTHER 2,005,982 2,759,568 6,172,245 2,915,929 11486,350 10493,108 (1,422,821)-48,79% �lti Off 0 ML I, Human Resources - Overview The Department of Human Resources and Director of Human Resources coordinates the employee and risk related functions of the City. This includes compensation, benefits, wellness, staffing, recruitment & selection, internal policies, workers compensation and safety, performance management, labor relations, and employee relations, training, and process improvement. ReS%2 irrPc Through the establishment of the McHenry Recreation Center, the staffing size of The City has grown to have an average of 275 full and permanent part time employees. During the summer season this increases to around 330 employees. Prior to FY18/19, human resources functions and related expenditures were found within the General Administration Budget. Given the growing specialization of human resources issues, these have now been separated in to this separate budget fund. This is the reason that no individualized budget information is available prior to FY18/19. In addition to human resources functions, the Director of Human Resources is also responsible for the point -of -service administrative personnel that staff the front counter of the Municipal Center. E:3►1 Human Resources - Organizational Chart Human Resources - FY17/16 Accomplishments • In Time: Scheduling &Attendance system. HR &payroll spent much of 2017 integrating the City's attendance, scheduling and payroll systems with In Time. This system will eliminate the paper time sheets that currently take three days and multiple people to verify and process. Roll out is expected I the 1st quarter of 2018. • IPBC Intergovernmental Public Benefit Cooperative. Reduces and balances rising health insurance costs. Implemented IPBC during 3rd and 4th quarters of 2017. • BenefitSolver. This online open enrollment system allowed for a more efficient open enrollment and replaced all paper versions previously used by the City. This is paid through IPBC, so no additional cost to the City. • Classification &Compensation Study - While a consultant was hired to conduct the internal and external surveys, much work on job descriptions and internal equity was and continues to be done by Human Resources. This will ensure our compensation plan is equitable to other similar municipalities and ensure that our positions are classified appropriately under the Fair Labor Standards Act. • Family &Medical Leave -This remains on the list due to the volume of City employees on FMLA during this year. • Five Year Staffing Plan- This project has been started and could be complete by the end of the fiscal year. Analyze the current staffing situation, gain feedback from directors on forecasted staffing needs and create a five year plan. • Employee Relations - A significant amount of time is being spent on employee relations/employee conflict issues and performance related issues. Those that need it are receiving the coaching and guidance needed to resolve and improve issues at the employee level. Some larger issues have been referred to employee assistance program (EAP) for a higher level of intervention. • Recruiting & Onboarding -While this is a core component of human resources, this department has recruited a high number of new employees leading to a significant increase in the time spent on pre -employment and employment activities. Human Resources - FY18/19 Goals & Objectives • Complete implementation of In Time Scheduling & Attendance software • Implement FLMA software to ensure compliance and track FLMA • PowerDMS. This is a holdover from the previous year. This software will manage documents and the distribution of documents such as the employee handbook and policies. • Continue to update Employee Handbook and use PowerDMS for distribution to employees and compliance. • Create Performance Management system including evaluation tool. • Analyze volume of work at front counter and adjust staffing after possible retirement of existing staff. Human Resources - FY18/19 Performance Measures • Goal DescriptionItem Proposed Increase efficiency in Convert the old paper Use the full capabilities of Scheduling & Attendance processing time cards and system into an electronic InTime (once aligned with Implementation system that integrates scheduling employees Tyler) with payroll software More effective tracking andcommunication FMLA Software Compliance with FMLA Track &Maintain FMLA AL of FMLA AL AL IN Software that tracks Use to revise Employee changes, stores and Manage large documents and Power DMS Handbook and distribute distributes utilizing policies. employee signatures for increase communication. compliance Identify additional Upon retirement of Possible reduction of .5 FTE Front Counter Staffing incumbent, reduce staffing efficiencies or increase job duties. or increase job duties. Implement efficient & Revise Performance Mgmt Performance Management Present detailed plan meaningful performance System mgmt.. 91 Human Resources - Fund Sumn 4010 'Salaries 4310 Health Insurance 4320 Dental Insurance 4330 Life Insurance 4340 Vision Insurance 4410 FICA Medicare 4420 IMRF Retirement TOTAL SALARIES/BENEFITS 5110 Contractual 5410 Dues 5420 Travel Expense 5430 Training 5450 Publications TOTAL CONTRACTUAL SERVICES 6110 Materials and Supplies 6210 Office Supplies TOTAL SUPPLIES 6940 Administrative Expense 9922 Purchase of Services- Information Tech TOTALOTHER 05 930083 93,083 #DIV/0! %195 91195 #DIV/0! 417 417 #DIV/0! 41 41 #DIV/0! 70 70 #DIV/0! 7,121 7,121 #DIV/01 , 11,635 11,635 #DIV/0! 121,562 121,562 #DIV/01 29,944 29,944 , #DIV/0! , #DIV/0! #DIV/0! r 4,000 4,000 #DIV/0! , #DIV/0! 33,944 33,944 #DIV/0! #DIV/0! #DIV/0! - #DIV/0! 8,237 8,237 , #DIV/0! r 8,237 8,237 #DIV/01 92 'r v, `AL 4 �rl fir urn Economic Development - Overview The Department of Economic Development Budget contains personnel and operational functions related to the provision of economic development services in the City. Prior to FY18/19, costs related to economic development activities and personnel were accounted for in the General Administration and Community Development Budgets. With a growing emphasis on economic development activities, a separate budget fund has not been established to account for expenditures. The Department of Economic Development includes the positions of Director of Economic Development, Economic Development Coordinator and Assistant of Economic Development. The Department is responsible for providing economic development -related -services, support, and communications to elected officials, staff, and the general public in carrying out the policy and direction as set by the City Council. The Director of Economic Development is responsible for overseeing the day-to-day operations of the Department of Economic Development and plays a key role in carrying out the business retention, expansion and attraction activities of the city. This position also serves as the primary point of contact for all economic development -related business activities of the municipality, is the liaison to the city's Economic Development Commission (formed in 2017), and coordinates closely with the Director of Community Development in assisting with planning and zoning activities. Economic Development - Organizational Chart 9s Economic Development - FY17118 Accomplishments • Maintained active blog, McHenry Market Pulse, to engage community and provide consistent and accurate information as it relates to economic development and confirm/dispel rumors; began Y%ju U Channel and IL us • Attended at the 2017 International Council of Shopping Centers Convention in Las Vegas; • Attended meetings with District 156 on INCubatoredu; • Assisted in holding 2nd annual Manufacturing, Trades, and Industry Expo; • Assisted in establishing Department of Economic Development; • Created a New Business Packet; • Created a Business Recognition Program; • Assisted in creation of new Revolving Loan Fund Program; • Assisted in establishing Economic Development Commission; • Assisted with opening Downtown Indoor Theater; • Assisted with National Apprenticeship Week (banners) and participated on National Apprenticeship week Committee; • Assisted with creating Safety Town and recognizing businesses who participated; • Worked with Public Works Director in obtaining right-of-way from property owner for Lincoln Road Project; • Sent letters to all new businesses thanking them for locating in the City; expanding, etc; • Attended McHenry Area Chamber of Commerce Business Scrambles; • Worked with McHenry County Highway Division and the Cities of Woodstock and Crystal Lake on promoting Pace Paratransit Program and assessing future agreements with regards to the same, ® Nominated manufacturers for McHenry County Economic Development Business Champion Awards (2017- two winners: Miller Formless and Brake Parts); ® Wrote incentive and annexation agreements and ordinances to facilitate and promote business attraction, retention and/or expansion; Worked with McHenry County College/Small Business Development Center (business attraction and retention -MCC Manufacturing Breakfast); Represented City in attending McHenry Area Chamber Mixers, Multi -Chamber Mixers; Ribbon Cuttings and Grand Openings for New Businesses; ® Assisted Community Development, writing amendments to the zoning ordinance, subdivision control and development ordinance and municipal code to assist businesses; ® Continued to serve as member of McHenry County Public Transit Access Committee and McRide Subcommittee; Attended McHenry County Workforce Network Meetings (serve as proxy for City Administrator); ® Coordinated Business Site visits; ® Continued to work with Downtown Businesses and Community Organizations (City, Chamber, Downtown Business Association and Businesses); Coordinate 2017 events across all organizations and joint marketing effort (Downtown Supergroup); ® 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; � Worked on securing agreement with McHenry Township to continue providing free paratransit rides. 97 Economic Development -Performance Measures Litem Goal Description, roposed Outco" Develop and present a Was a realistic and effective realistic and effective Annual Budget economic development economic development April 3, 2018 budget presented for City annual working budget for Council's consideration? City Council consideration. Was the Zagster Bike Zagster Bike Sharing Prepare a Zagster Bike Sharing Program practical yes Program Sharing Program. and successful? Was it funded and implemented? Develop various avenues of marketing the City to What forms of marketing Video and other media and how Marketing of City effectuate business Were utilized? were they measured. attraction, expansion and retention. City Council committee and regular meeting agenda % of time City Council City Council Committee and packets will be thorough Committee and Regular Regular Meeting Agenda and include necessary Meeting Agenda packets 100 % Packets information for City Council were considered thorough to make appropriate and completed. decisions. Continue cross -training Time efficiency can be Administrative Staff to Cross -training of expand the ability to increased through cross - Cross -trained Administrative Administrative Staff provide the most Administrative Staff Staff and work towards a single a and information to a caller or Point of customer contact. resident when they stop by r Work with police and other Provide Power Point, videos People in City and outside of Educate residents about departments to hold off -site and hold talks on various City become more informed and economic development educational sessions at economic development engaged about economic library, etc. on different topics development topics. Attend community events, Attend a minimum of S-7 Attendance at S-7 Promotion of City, City programs to promote City, community events/business events/site visits businesses, City events or business, etc. site visits events within City Economic -Fund 4010 Salaries 4310 Health Insurance 4320 Dental Insurance 4330 Life Insurance 4340 Vision Insurance 4410 FICAMedicare 4420 IMRF Retirement TOTAL SALARIES/BENEFITS Meter 5420 ,Travel Expense 5430 Training 5450 Publications TOTAL CONTRACTUAL SERVICES 06) 198,882 198,882 #DIV/01 47,535 47,535 #DIV/01 _ - • 1,839 11839 #DIV/0! T , 123 123 #DIV/0! , 153 153 #DIV/0! -_—. , 15,215 15,215 #DIV/0! , 24,860 24,860 #DIV/01 - 288,607 288,607 #DIV/01 • 16,000 16,000 #DIV/01 r 700 700 #DIV/01 2,000 2,000 , #DIV/01 • 2,500 21500 #DIV/01 2,500 2,500 , #DIV/0! r 31500 3,500 #DIV/0! #DIV/0! I 27,200 27,200 #DIV/0! r 6110 Materials and Supplies I 300 300 #DIV/0! _ 621D Office Supplies 700 700 #DIV/01 TOTAL SUPPLIES _ _ _ I _ - 10000 1,000 #DIV/0! i i , 9920 Purchase of Services - Risk Management - #DIV/01 9922 Purchase of Services - Information Tech 13,482 131482 #DIV/01 , TOTAL OTHER _ _ _ _ - 13,482 13,482 #DIV/01 TOTAL• • DEVELOPMENT Y� ai lillio feel kell=. 10 ei fee fair HAI lot" OF NL 4 flee feePer fee ell fie I fee F fell elf A filliffe . 4-_= r Police Commission - Overview The purpose of the Police Commission is Lose eCL sworn personnel in accordance with the employment policies of the City of McHenry, as well as investigate conduct hearings regarding any sworn member of the McHenry Police Department. 101 Police Commission - Fund Summary (Fund 100, Department 21) 4220 Salaries 1,350 1,350 11350 11350 1350- 10350 - 0,00% 4410 Social Security -Medicare 103 103 103 103 103 103 - 0,00% TOTAL SALARIES/BENEFITS 1,453 1,453 1,453 11453 10453 11453 - 0,00% 5110 jContractual 51179 4,225 4,959 41625 42625 4,625 0,00% 5330 Printing and Publishing _ - #DIV/01 5410 (Dues _ 375 375. _375_ . 375 _ 375 375 - 0,00% —_ —. _... 0! 5420 Travel Expense #DIV _ - ' - - -_ / 5 g --- -- - - --- - - 500 - 500 - 0,00% 430 Trainin 37 j 5450 (Publications - - - - - - - #DIV/01 TOTAL CONTRACTUAL SERVICES 5,929 41600 5,334 5,500 5,000 5,500 - 0,00% 6110 Materials and Supplies , #DIV/0! TOTAL SUPPLIES - - - - - - - #DIV/01 COMMISSIONTOTAL POLICE 102 - f vr mlets V-� Police - Overview Vision Statement _%� The McHenry Police Department will maintain the highest 0� � standards of criminal justice excellence in all aspects of policing. Through these standards the McHenry Police Department will define itself as a leader in the industry by those we serve and protect. • Mission Statement The Mission of the McHenry Police Department is to work in a true partnership with the citizens we serve, enhance the quality of life and provide excellence in public safety. Agency Values The McHenry Police Department is charged with the responsibility to serve and protect the citizens A McHenry. Our agency values provide the foundation for our mission and guide us in our effort to meet the vision of the agency. The McHenry Police Department operates off the core values of; Integrity, Courage, Service, Honor and Duty. Agency Structure The McHenry Police Department is the third largest law enforcement agency in McHenry County. Organized into three main divisions of Administration, Support Services and Field Operations, the McHenry Police Department serves and protects the citizens of McHenry and all those who visit. Within each division specialty units are established to meet specific needs of the agency that support our vision and goals. The McHenry Police Department is a community oriented organization that operates off of a problem -solving philosophy. The Administration Division is comprised of the Chief of Police, Deputy Chief of Police and an administrative assistant. The Support Services Division and Field Operations Division are each headed by Division Commanders who report to the Deputy Chief of Police. The Deputy Chief of Police reports to the Chief of Police. All sections and units of the organization are structured under one of the following divisi stons. Field Operations Division The Patrol Section is the largest component of the Field Operations Division and is responsible for responding to both emergency and non -emergency calls for services from the public. The Patrol Section is divided into three shifts in order to provide 24-hour police services. Each shift is supervised by two Sergeants. Uniformed Patrol Officers and one Community Service Officer (CSO) are responsible for partnering with the community to protect life and property and to maintain peace, order and safety. In addition, this Division handles special assignments, self -initiated activities and addresses community concerns. Additional Units within Field Operations include; Field Training Unit, Canine Unit, Truck Enforcement Unit, Bicycle Patrol Unit, Street Crimes Unit, Major Crash Assistance Team, Mobile Field Force Officers and Tactical Response Officers. Support Services Division The Support Services Division is comprised of the Investigation Section, Accreditation Unit, Training Unit, Public Relations Unit, Communications Center and Planning/Research/Technical. 104 • Detectives work in plainclothes and provide expertise and resources to investigate crimes that happen in McHenry. Detectives are able to investigate crimes that are often complex and may extend over a significant period of time and geographical area. The cases are investigated until an arrest is made or there are no longer leads to pursue. Many of the investigators have received specialized training in the investigation of: homicides, child abuse, sexual assaults, juvenile delinquency, crime scene processing, felony property crimes, robberies, felony crimes against persons and cybercrime. • The Accreditation Unit is utilized to revise and draft department policy and ensure that the agency is performing its duties in a manner that is consistent with the Law Enforcement Commission on Accreditation for Law Enforcement standards. • The Training Unit is responsible for the management of all ongoing training. for police personnel. Training includes annual in-house training such as Defense Tactics and Firearms along with all external training. Each officer and civilian employee is required to receive mandated training in accordance with our departmental policy, CALEA standards and Illinois statutes. This Unit is responsible for the coordination and implementation of thousands of hours of training each year. • The Public Relations Unit is charged with the responsibility to foster the community orientated philosophy and problem -solving practices of the McHenry Police Department. This is done through multiple educational and community events provided to our citizens by the police. • The Dispatch Center is the final component of the Support Services Division. This unit is a consolidated dispatch center that provides emergency dispatch services for sixteen (16) police, fire and EMS agencies. Although the center is owned and operated by the McHenry Police Department a partnership between McHenry Township Fire, Harvard Police and Woodstock Police allows for joint decision making on policy development and shared financial responsibility. The Dispatch Center operates off of a separate budget which is managed by the Chief of Police and Deputy Chief of Police. • The Planning/Research/Technical sections coordinate the specific planning and research activities of the department, complete short and long term special projects, attend to critical risk management issues and research & write grant proposals. These sections also provide staff services in regards to agency purchases, operations, maintenance, repair and replacement of information technology related programs, systems, software and hardware. Police - Organizational Charts Police Overall 106 Police Administration 107 Commander of Field Operations Paul Funk Sergeant- Day Shift Sergeant- PM Shift Sergeant- Midnight Shift Kevin Cox Nicholas Clesen Robert Lumber Sergeant - Day Shift Sergeant - PM Shift Sergeant -Midnight Shift Michael Cruz Kelly Ducak Eric Sexton Officer Officer Officer Officer & Duke K-9 Officer Officer Anthony Mucciante Jill Foley Brian Aalto Larry Popp John Adams Michael Spohn Officer Offier Officer Officer Officer Officer Marc Fisher Ryan Pardue Omar Morales Sean Klechak Matthew Schmitt Robert Beaudoin Officer Officer Officer Officer Officer Officer James Harris Paul Prather Robert Klasek Matthew Voelker Katelyn Lorenz Joseph Lazicki Officer Officer Officer Officer Officer Officer Eve Kulcsar TBD Christina Torkelson Jack Zumwalt Samuel Shafer Bryan Wegner Offier Officer Officer Officer Officer Officer TBD TBD Josh Conway Roger Hendrickson Katelyn Lorenz TBD Police - Investigations Division 109 Commander of Support Services Ryan Sciame Telecommunications Dispatch Center Supervisor Jennifer Synek / Lead Telecommuicator TBD Day Shift Night Shift "Dispatcher DispatcherpDispatcher Dispatcher Laura Cox Tracy McNamara Kelly Schmitt Dispatcher DispatcherDispatcherChristine Katherine DawsonGwendolyn Allen, Dispatcher Dispatcher Dexter Barrows 10 Patricia Garrett Dispatcher „ Dispatcher Maria Joseph „ Grant Havens Dispatcher „ Dispatcher Kathi Gallagher „ Holly Neville Dispatcher Charvon Walker Dispatcher „ Dispatcher Ryan Miller „Donald Weinreis Dispatcher „ Dispatcher Niki Wilhelm �� Katie Durband Dispatcher „ Dispatcher Laura Barnett � Patricia Garrett Records, Community Service Officers, IT, Public Affairs Records Clerk Records Clerk Marybeth Varvil Debra Shoemaker :ALEA / Training Community Coordinator Service Officer Stephanie Erb Dave Porter IT Specialist Public Affairs Officer Patrick Jeffery Forester Polidori Police - FYI //18 Accomplishments Personnel • On October 20th, 2017 Deputy Chief John Birk was promoted to Chief of Police. Chief Birk is a 19-year veteran of the McHenry Police Department. Chief Birk holds a Graduate Degree in Law Enforcement Administration and is a graduate of both Northwestern University School of Police Staff & Command and the FBI National Academy. • On November 6th, 2017 Commander Thomas Walsh was promoted to Deputy Chief of Police. Deputy Chief Walsh is a 22-year veteran of the McHenry Police Department and is a graduate of Northwestern University School of Police Staff & Command. • On November 20th, Z017 Sergeant Ryan Sciame was promoted to Commander of Support Services. Commander Sciame is a 19-year veteran of the McHenry Police Department and is a graduate of Northwestern University School of Police Staff & Command. • On November 20th, 2017 Detective Kelly Ducak was promoted to Sergeant. Sergeant Ducak is a 12-year veteran of the McHenry Police Department with extensive patrol and investigative experience. • On December 4th, 2017 Roger Hendrickson was sworn in as McHenry's newest police officer. Officer Hendrickson has 7 years of prior law enforcement experience with the Dallas Texas Police Department and the Elk Grove Village Illinois Police Department. He is a graduate of Illinois State University. Training With a continued commitment to training, sworn officers and civilian staff members of the McHenry Police Department participated in over 4,841 hours of training, both internally and externally. Training directly affects the success of service provided to the community and liability placed on the City. Some highlights were: • Chief Birk and Deputy Chief Walsh attended the International Association of Chiefs of Police Conference and received world -renown training in topics that addressed contemporary or emerging issues confronting the law enforcement profession and the leaders of law enforcement agencies worldwide. • Chief Birk attended the annual International FBI Conference. Chief Birk received training in topics related to; improving the administration of justice in police departments, defining new law enforcement standards, building community trust, counterterrorism, and 215t Century Policing. • Commanders Sciame and Funk attended the annual Illinois Law Enforcement Alarm System (ILEAS) Conference. This conference provided both Division Commander with training on topics related to the Incident Command System, law enforcement mutual aid and interoperable communication platforms. • Deputy Chief Walsh and Commander Funk attended a week long class at FEMA's Emergency Management Institute in Emmitsburg, Maryland. This class was attended by nearly 60 111 emergency responders from McHenry County. During the training all McHenry County representatives worked together to conduct drills on the proper handling of All Hazard Incidents in order to ensure interoperability and cooperation in future incidents that may occur in McHenry County. Advanced training was also conducted in: • Law Enforcement Administration • Canine Unit Operations • Narcotics Investigations • Weekly Case Law Updates • Crime Scene Investigations • Homicide Investigations • Interview & Interrogations • Special Response Teams Training • Rapid Deployment Training • Firearms Training • Critical Accident Investigations • Patrol Operations • Arson Investigations • State Mandated Annual Training Segments Calls for Service In the 2011 calendar year the McHenry Police Department handled 27,642 calls for service through dispatch and police services. This is an increase of 2,109 calls from the 2016 year and represents an overall increase of just over 8%. The following list highlights types and volume of specific areas of investigation by the department. These investigations resulted in over 190 felony and misdemeanor arrests during the 2017 year. Homicide 0 Sex Offenses 25 Robbe 3 Burglary 25 Theft 362 Motor Vehicle Theft 8 Weapons Offenses 2 Domestic Disturbances 450 Drug Investigations 71 Fire Investigations 39 Death Investigations 39 Burglary to Vehicle 39 Juvenile Incidents 188 Mutual Aid During FY 2017/18 the McHenry Police Department participated in multiple mutual aid requests. Chief Birk (Team Commander) along with Commander Sciame and Sergeant Ducak participated in 6 taskforce callouts through the McHenry County Major Investigation Assistance Team, which resulted in multiple arrests for 1st Degree Murder, Sergeant Cox (Team Commander) along with multiple officers from the McHenry Police Department participated in six callouts through the McHenry County Major Accident Assistance Team, which resulted in the investigation of five vehicle fatalities. Public Safety Initiative During FY 2017/18 the McHenry Police Department took on the opioid and heroin crisis head on. Through a multi -tiered approach of solving this crisis, the McHenry Police Department has taken action through enforcement efforts (arrests and drug seizures), the use of Narcan and participation in the "A Way Out Program". During the calendar year the McHenry Police saved 28 lives through the use of Narcan and enrolled 33 people into the "A Way Out Program". A total of 112 Accreditation During FY 2017/18 the McHenry Police Department underwent its fifth CALEA reaccreditation assessment resulting in our fifth reaccreditation. The Commission on Accreditation for Law Enforcement (CALEA) has been an ongoing partnership for the police department since 2002. The purpose of CALEA is to improve the delivery of public safety services, primarily by: maintaining a body of standards, developed by public safety practitioners, covering a wide range of up-to-date public safety initiatives; establishing and administering an accreditation process; and recognizing professional excellence. • The successful re -accreditation of the McHenry Police has proven that the McHenry Police Department has set and followed the following goals set by CALEA. • Strengthen crime prevention and control capabilities; • Formalize essential management procedures; • Establish fair and nondiscriminatory personnel practices; • Improve service delivery; • Solidify interagency cooperation and coordination; and • Increase community and staff confidence in the agency. • Developed a comprehensive, well thought out, uniform set of written directives. • Established a preparedness program that is ready to address natural or man-made critical incidents. • Strengthened the agency's accountability, both within the agency and the community. • Limited the agency's liability and risk Community Outreach During FY 2017/18 the McHenry Police Department built upon their existing Public Relations efforts by establishing a full-time Public Affairs Position within the agency. This position is filled by a current police officer who is assigned these new responsibilities. Primary responsibilities of the position include; management of agency social media, public information tasks, community outreach for citizens and businesses regarding training opportunities and the support and participation of local charity events. The McHenry Police Department, in an effort to accomplish the agency's mission, participates in many community out, events each year. Below highlights some of the more notable events from FY 2016/17. Child Safety Seat Installations With support from IDOT Grant Funding and business partners within the community, the McHenry Police Department has seen a growing success with its Car Seat Installation Team. This team offers free installation of child safety seats to members of the community by licensed installation technicians. Currently the police department has 8 certified technicians on our team and together they have held 8 community events and installed over 100 car seats. Coffee with the Chief Since 2012, the police department has held an active "Coffee with the ChieF' Program. Currently this program is a partnership with the McHenry Public Library. This public meeting is offered to residents of McHenry as part of the McHenry Police Department's continued commitment in keeping our citizens and community informed about their police department. These events are opportunities for the Chief to obtain face to face feedback from our citizens. In FY 2017/18, topics presented 113 included Crime Scene Investigations, Crisis Intervention, Police Use of Technology, and the department's Canine Unit. School Safety In FY 2017/18 the McHenry Police Department presented multiple school safety presentations at the grade school level in our continuing effort to provide a safe environment for our children. These presentations included uniformed officers teaching children on topics such as; Stranger Danger, Summer Safety, Walking to School and Pedestrian Safety. These presentations were done cooperatively with our Adopt -A -School program efforts. In addition, the Department partnered with school administrators to conduct lockdown drills at each school. These drills are conducted to help our schools prepare for a critical incident and are required by state law. In FY 2016/17, the department continued to conduct double the required amount of training and lockdown drills that are required by law. These continued efforts will help insure the safety of our children. Adopt -A -School Program In FY 2017/18, the McHenry Police Department continued the agency's "Adopt -A -School" program. This program pairs individual officers with specific grade schools in town to increase awareness and safety within those schools. The program entails individual dayshift patrol officers being assigned there own specific grade school within the community. The objective is for the officers to get to know the faculty and students at their respective school so that the police department can provide a better service. This program involves activities such as foot patrols, classroom instruction blocks, training exercises, and a community approach to solving problems within our schools. The plan is designed to further the McHenry Police Department's mission of increasing school safety in our local schools. Garden Quarter Resource Center The Garden Quarter Resource Center is a non-profit organization that focusses on providing services to McHenry's Hispanic population and Latino community. Since its inception the McHenry Police Department has been a community partner with the Garden Quarter Resource Center. Over the years the City has seen the Resource Center grow tremendously and with the FY 2017/18 over 150 children and 180 adults obtained services. The center is a non-profit organization that focusses on helping at - risk youth, providing academic support, providing positive adult role models, and education adult parents on how to play a positive role in their child's life. The Police Department takes an active role by introducing officers in their educational programs and extra -curricular activities. The impact of this participation has help to build strong relationships with our Latino community. Special Olympics Illinois Special Olympics is a global organization that unleashes the human spirit through the transformative power and joy of sport, every day around the world. Through programming in sports, health, education and community building, Special Olympics is changing the lives of people with intellectual disabilities solving the global injustice, isolation, intolerance and inactivity they face. Special Olympics Illinois provides opportunities for more than 22,500 athletes, more than 20,000 Young Athletes, 45,000 volunteers and thousands more people statewide through 18 area programs in all 102 counties of the state. The Law Enforcement Torch Run is the single largest year-round fundraising vehicle benefiting Special Olympics Illinois. The annual intrastate relay and its various fundraising projects have two goals: to raise money and to gain awareness for the athletes who participate in Special Olympics Illinois. The Law Enforcement Torch Run has raised nearly $43 million over 31 years while increasing awareness of Special Olympics athletes and their accomplishments. 114 In order to raise funds for this worthwhile cause, the McHenry Police Department participated in the Cop on Top event at Dunkin' Donuts, Polar Plunge, Plane Pull and Butter Burger and Badge Event at Culvers. Our combined efforts helped to raise over $15,700.00. In June of 2017 several officers participated in a leg of the Torch Run that ended at our own Knox Park and attended the Illinois Special Olympics Games as coaches. No Shave Fundraiser During the FY 2017/18 Chief Birk instituted a new fundraising campaign to benefit those in need during the winter months. This campaign allowed officers to grow beards by making personal contributions to specific charities. In November officers and employees personally contributed over $1,000 to breast cancer research. In December officers and employees paid over $800 to grow beards all of which was used towards a McHenry Family in need at Christmas. Presents were bought and three children and their aunt were surprised for Christmas Day! In January, February and March officers were able to grow beards if they participated in the annual St. Baldrick's Event. Over a dozen officers and employees joined the police department's St. Baldrick Team raising thousands of dollars and shaved their heads for an amazing cause. 115 Police - FY18/19 Goals & Objectives Below are the highlighted Goals and Objectives that the McHenry Police Department will focus on during the 2018/19 fiscal year. • Continue to provide the highest level of police services to the czens of McHenry. • Complete the process of developing a hiring list of highly qualified lateral transfers. • Continue with the department's renovation /expansion phases in order to meet the department's performance and usage needs. • Seek and secure the highest level training opportunities for all agency members. • Continue and expand the department's public relations/community involvement programs. • Continued support for overall community school safety through the School Resource Officers and the Adopt -A -School program. • Continue the department's Traffic Safety Plan in order to keep our roadways safe. • Maintain fiscal responsibility and reduce any financial burden on the City through grant funding. • Continue to maintain professional standards by being assessed through the Commission on Accreditation for Law Enforcement Agencies (CALEA). • Continue to actively partner with other organization such as MCAT, MIAT, NIPAS and ILEAS in an effort to share police resources and reduce operational costs. • Replace the department's aging firearms (handguns). • Replace four marked police vehicles and emergency equipment. • Replace seven in -squad computers. • Reduce the amount of opioid (heroin) overdoses and deaths for 2018 as compared to 2017. 116 Police - FY16/19 Performance Measures • Item Goal Description Proposed Actively suppress Did UCR reportable property crime and crimes property crimes and Crime Rate against persons in order crimes against person February 15, 2018 to ensure the safety the totals stay the same or see McHenry Community and a reduction? its citizens. Manage police department resources in an efficient To complete the FY 17/18 and effective manner by keeping expenditure at Annual Police Budget ensuring that community or under approved police April 30, 2018 needs are met. budget. Create a safe roadway system within the City by To complete the 2017 enforcing traffic laws in A reduction is traffic crashes Traffic Crash /Roadway order to create safe calendar year with an investigated in 2017 as compared to Safety overall reduction in traffic 2016m driving behavior. accidents. To improve the delivery of public safety services, primarily by: maintaining a body of standards, 1. Review and revise as needed developed by public safety To successfully review and all agency policies by practitioners, covering a revise policies in accordance with new laws January 2019. Accreditation wide range of up-to-date or Complete 2. Complete all required CALEA public safety initiatives; practices; standard proofs and reports establishing and CALEA proofs and reports for the 2018 calendar year administering an as required. Y az'Y 2019. b February accreditation process; and recognizing professional excellence. 1. Improvements to community events such as; Child Safety Seat Installations, Coffee with Maintain a strong working the Chief, School Safety, relationship with the Adopt -A -School Program, An increase in attendance to all McHenry Community and Garden Quarter community events, positive community Community Relations its Citizens in order to Community Days, Special feedback and the launch of new maintain trust and Olympics Illinois, safety initiatives by April, 2019. support in our mission to Expos and MCPOA Events serve and protect. 2. Continued improvement to Public Relations and Social Media Interaction. 117 2018/19 McHenry Police Provide the highest level of professional police Department Training Plan. Meet or exceed all training services with the lowest Illinois Police Training Act requirements in the calendar year Training liability or risk to the City 2018, established by departmental and the Citizens who we 50/ILCS 705/7 policy and Illinois State Statute. serve. Arrest/Investigation enforcement action of the Obtain a reduction in the amount of Reduce the amount of illegal sale and use of opioid (specifically heroin) overdoses Narcotics Enforcement opioid usage and opioids. Narcan and deaths in McHenry for the 2018 overdoses. deployment. Participation calendar year. y in the "A Way Out' Program. See alternative ways to Annual review of all grant Awarded grant funding for traffic fund police related submission applied for enforcement and ballistic vest Grants projects that support the and all grant submission purchases with a minimum of two mission of the awarded. additional grants to be applied for. organization. 118 Police Department - Fund Summary (Fund 100, Department 22) 4010 Salaries (includes 4030 in FY17/18) j 770,359 938,382 356,353 311,948 319,311 327,068 15,120 4.85% 4020 Sworn Salaries_ 4086,773 4,146,478 41318,074 41407,544 4,423,238 4,555,484 147,940 3,36% 4030 Salaries - Part Time _ 101,054 33,886 - - - 19,800 19,800 #DIV/0! 4050 Overtime _ 55,129 47,009 21305 5,000 2,774 5,000 - 0,00% 4055 Sworn Overtime 225,595 234,891 241,823 244,500 245,290 244,500 0,00% 4080 Career Ladder j- 41665 - 15,230 81000 71622 13,000 5,000 62,50% 4310 Health Insurance 1 9S4j062 1,o83,6S9 992,132 1,040,717 920,199 986,275 (54,442) -5,23% 4320 Dental Insurance 38,438 42,838 36,564 38,772 35,928 38,096 (676) -1,74% 4330 Life Insurance 21371 21435 2,089 2,070 2,012 21122 52 2,51% 4340 Vision Insurance _ 2,521 2,308 11920 2,201 21089 11967 (234) -10.63% 4410 FICA Medicare 385,157 393,039 362,641 380,740 370,790 395,111 14,371 3,77% 4420 IMRF Retirement _�118,119 128,547 46,504 41,099 40,353 42,127 11028 2.50% 4430 Contribution -Police Pension 1,295,101 1,386,205 1,521,914 1,874,219 1,868,798 2,01%703 145,484 7,76% 4510 Uniform Allowance 26,077 30,084 25,318 29,800 27,589 29,800 - 0,00% TOTAL SALARIES/BENEFITS Bo065)421 8,469,761 7,922,867 %3861610 8,265,993 8,680,053 293,443 3,50% 5110 Contractual 81,962 91,581 85,676 B71020 96,545 89,160 21140 2,46% 5310 Postage and Meter 3,454 3,585 21817 3,000 2,224 3,000 - 0,00% 5320 Telephone 45,073 501650 550687 49,500 57,055 29,712 (19,788) -39.98% 5370 Repair and Maintenance 51,042 47,987 49,927 52,500 62,795 52,500 - 0,00% 5410 Dues 2,221 11325 2,320 2,500 38 1,800 (700) -28.00% 5420 Travel Expense 70391 11,448 15,277 21,000 8,837 201500 (500) -2.38% 5430 Training 19,913 17,588 34,038 40,855 _ 33,350 2B,225 (12,630) -30.91% 5440 Tuition Reimbursements 71271 71755 11,708 10,000 8,018 %000 (11000) -10.00% 5450 Publications 390 595 256 800 446 800 - 0,00% r 5510 Utilities 11340 - - - - #DIV/0! TOTAL CONTRACTUAL SERVICES 2200057 232,514 257,706 267,175 269,308 234,697 (32,478) -12,16% 6110 Materials and Supplies 14574 16,785 29,648 20,800 19,088 22,900 21100 10,10% 6210 Office Supplies 14,409 16,185 17,541 17,000 11,871 17,200 200 1.18% 6250 Gasoline and Oil L 114,901 92,851 83,946 100,000 78,425 80,000 (200000) -20,00% 6270 Small Equipment 9,719 --- 17,104 14,071 4,840 - 51025 185 3,82% 6310 K-9 Unit 3,998 _ 3,993 4,369 51300 3,722 51300 - 0,00% 6340 Forfeiture Expenses 976 11497 - - - - - #DIV/0! TOTAL SUPPLIES 158,577 148,415 149,577 147,940 113,106 130,425 (17,515) -11,84% 9920 IPurchaseofServices-Risk Management 267,833 267,833 234,349 229,083 229,063 229,083 - 9922 Purchase of Services-InformationTech 214,749 228,746 162,405 244,816 244,816 288,107 43,291 TOTAL OTHER 482,582 496,579 396,754 4737899 473,899 517,190 43,291 8300 Capital -Equipment _ _ - 26,342 119,890 14,400 54,473 19,650 5,250 � 36.46% 8400 Capita] -Vehicles � 87,216 31,310 - - - - #DIV/0! TOTAL CAPITAL OUTLAY - 113,558 151,200 14,400 54,473 19,650 5,250 36,46% 119 4.v 1 'i„�z '_'iid � .-•u , �. '_ .bra OfF mp ' R - H os 1� � NERCOM - Overview Mission Statement The Mission of the McHenry Police Department is to work in a Its true partnership with the citizens we serve, enhance the quality +`f of life and provide excellence in public safety. �+FAV, .......: Primary Functions To provide emergency and non -emergency phone answering and Ke dispatch services to our police and fire customers. The McHenry Dispatch Center (DBA - NERCOM) is a collaborative effort between four public entities. This collaborative effort is a partnership established by the McHenry Police Department with the McHenry Township Fire Protection District, the Woodstock Police Department and the Harvard Police Department. In the spirit of cooperation between communities and taxing bodies, and with a goal of increasing efficiency and effectively using public tax dollars, the four above listed agencies created this partnership. Through an Intergovernmental Agreement (IGA) each agencies shares the responsibility of providing policy and procedural guidance regarding dispatch services. Partnering agencies share fiduciary responsibilities identified through the IGA by a defined percentage of liability. In short, NERCOM expenses are divided based on the calls for service of the various partners, less revenues received from twelve (12) additional customer agencies. In an overview of the day-to-day operations of the center, at its optimal staffing level NERCOM is manned twenty-four hours a day, seven days a week, 365 days a year by a minimum of five dispatchers at all times. Each NERCOM dispatcher is crossed -trained to be proficient in both police and fire/rescue disciplines of dispatching. In addition, NERCOM provides Emergency Medical Dispatch services to all of our customers. Roles defined within the dispatch center include 911 call takers, police dispatch and fire/EMS dispatch. These defined roles allow for the center to provide services in the most efficient and effective way exceeding industry standards. Staffing for NERCOM consists of twenty (20) full-time civilian ;worn) n- sworn) telecommunicators and six (6) part-time telecommunicators working twelve hour rotating shifts. NERCOM is supervised by one (1) full-time lead telecommuncator and one (1) full-time civilian Telecommunications Center Supervisor. All employees of the dispatch center are employed by the McHenry Police Department under the authority of the McHenry Chief of Police. Daily operational oversight of the dispatch center is assigned to the McHenry Police Commander of Support Services. 121 Dispatcher G. Allen Dispatcher D. Barrows Dispatcher L. Cox Dispatcher C. Dawson Dispatcher K. Gallagher NERCOM Board of Directors /Police Chief John Birk c�am— NERCOM Supervisor Jennifer Synek Lead Telecommunicator Day Shift Dispatcher .Havens Dispatcher M.Joseph Dispatcher A. McKendry Dispatcher T. McNamara Dispatcher H. Neville Dispatcher C. Walker Night Shift Dispatcher S. Doty Dispatcher J. Leibach Dispatcher R. Miller Dispatcher N. Wilhelm Dispatcher P. Garrett Dispatcher K. Schmitt Dispatcher K. Fitzgerald Dispatcher D. Weinreis Dispatcher K. Durband Dispatcher L. Barnett NERCOM - FY17/18 Accomplishments Personnel The following individuals were hired during FY 2017/18 bringing our full-time telecommunicator staffing levels to twenty-one (21). • Samantha Doty was hired June 5, 2017 as a full-time dispatcher in our communications center. She was a previous full time dispatcher with the Northern Illinois University Police Dept. for approximately 1 year. • Donald Weinreis was hired July 17, 2017 as a full-time dispatcher in our communications center. He was a previous full time dispatcher with the Zion Police Department and Lake County Sheriffs Office with a combined 19 years of experience. • Kaitlin Durband was hired August 14, 2017 as a full-time dispatcher in our communications center. She was a previous full time dispatcher with the Racine County Sheriffs Office for 6 months. • Laura Barnett was hired August 30, 2017 as a full-time dispatcher in our communications center. She was previously employed by Meijer in their Loss Prevention Department for 14 years. • Ian Abrahamsen was hired September 1, 2017 as apart -time dispatcher in our communications center. He was previously a full-time dispatcher with our department for 2 years and then he became a full-time police officer for Carpentersville Police Department in January of 2015. New Positions: During FY 2017/18 the McHenry Police Department created a second supervisory position within the dispatch center. This position, known as a Lead Telecommunicator, is a working telecommunicator with supervisory responsibilities. The Lead Telecommunicator works under the Dispatch Center Supervisor working evening hours in the center in order to provide supervisory direction during non -business hours. Public Relations: During FY 2017/18 NERCOM introduced a new on-line application called "Frontline". This new app is designed to allow residents of the communities we service to make overnight parking request via the internet or phone app. Additional services are also available at the discretion of the customer agency and include; neighborhood watch requests, bicycle registration and public works notifications. Training The McHenry Police Department recognizes the need to make sure our telecommunicators offer the highest level of service to all we serve. During FY 2017/18 the dispatch center was vigilant in searching out training opportunities for our telecommunicators. In October of 2017 we entered into an agreement with the Police Law Institute to offer monthly trainings to all tele communicators. This is an online training program which offers real life scenario based training for police, fire and EMS services. 123 During FY 2017/18 employees of the dispatch center completed the following tramings: Employee SAMANTHA DOTY Training Description EMERGENCY MEDICAL DISPATCH Dates Attended: 06/05 - 06/07/2017 DONALD WEINREIS EMERGENCY MEDICAL DISPATCH 08/14 - 08/16/2017 KAITLIN DURBAND EMERGENCY MEDICAL DISPATCH 08/14 - 08/16/2017 GWEN ALLEN COMMUNICATIONS TRAINING OFFICER 09/18-09/20/2017 JENNY SYNEK (SUPERVISOR) 9-1-1 QUALITY ASSURANCE 9/18/2017 JUSTIN LEIBACH COMMUNICATIONS TRAINING OFFICER 09/26 - 09/28/2017 KELLY SCHMITT COMMUNICATIONS TRAINING OFFICER 09/26 - 09/28/2017 LAURA BARNETT EMERGENCY MEDICAL DISPATCH 10/02-10/04/2017 JENNY SYNEK (SUPERVISOR) NENA EDUCATION SUMMIT 911 CENTER SUPERVISOR PROGRAM 10/22 TO 10/25/2017 NIKKI WILHELM IPSTA CONFERENCE 11/05 TO 11/11/2017 JENNY SYNEK (SUPERVISOR) IPSTA CONFERENCE 11/05 TO 11/11/2017 ALL EMPLOYEES ANNUAL CPR CERTIFICATION 2017/18 ALL EMPLOYEES ANNUAL ICS TRAINING 2017/18 ALL EMPLOYEES ANNUAL LEAD CERTIFICATION 2017/18 ALL EMPLOYEES MONTHLY POLICE/FIRE/EMS SCENARIO BASED TRAINING 2017/18 Funding Opportunities The overall goal of NERCOM is to offer excellence in emergency dispatch services at a cost that is competitive for all participating governmental agencies. NERCOM is proud to services sixteen (16) total agencies at an operational cost that is significantly lower than all other PSAPs, proving that consolidation can save money without sacrificing service. During the FY 2017/18 the McHenry Police Department applied for and was awarded grant funding by the State of Illinois to help offset the cost of expanded our center into a regional dispatch center. In January of 2018, the McHenry Police Department received $1,162,799.00 in funds that were used to offset over 85% of the cost to renovate and expand the dispatch center. Computer Automated Dispatch (CAD) System During FY 2017/18 NERCOM received a new Computer Automated Dispatch System (CAD) which was purchased by the McHenry County Emergency Telephone Board. CAD is the computer software used in the dispatch center that logs, tracks and dispatches police/fire/EMS to emergency calls for service. This new program will prepare NERCOM to upgrade from Enhanced 911 services to Next Generation 911 Services in FY 2018/19. Calls for Services During the 2017 calendar year NERCOM answered 35,696 Emergency 911 calls and 96,028 non - emergency administrative calls. An additional 53,542 outgoing calls were made on the behalf of our customers for additional tasks. Currently NERCOM handled the following calls for service during the 2017 calendar year: 124 McHenr CitlyPD 27,642 Johnsburg PD 4,323 McHenry Fire 5,651 Marengo Rescue 1,163 Marengo Fire 306 Union Police 109 Union Fire 84 Maren o Police 41855 Harvard Police 6,007 Harvard Fire 1,348 Woodstock Police 13,556 Woodstock Fire 3,194 Fox River Grove Police 41834 Fox River Grove Fire 423 Cary Fire 11344 Nunda Fire 191 125 NERCOM - FY18/19 Goals & Objectives Below are the highlighted Goals and Objectives that the McHenry Police Department Dispatch Center will focus on during the 2018/19 fiscal year budget. • Improve the quality of services provided to public safety agencies. • Strengthen our customer base through strong customer relationships. • Development and revision of dispatch center policies and operational procedures. • Hire additional staff as needed. • Establish and implement an actionable timeline for the CALEA Accreditation of the dispatch center. • Ensure that the McHenry Police Department is active in applying for grants related to equipment and personnel funding for the dispatch center. • 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 dispatchers as dictated by policy and statute. • Install "Next Generation 911 Phone System" for the dispatch center and conduct all related advanced training. • Obtain Emergency Medical Dispatch (EMD) ACE Accreditation through Priority Dispatch. 126 NERCOM - FY16/19 Performance Measures PerformancePerformancePerformance Proposed Item .. l Measure Outcome(s) Measure will be Obtain state certification Meet the standard goal of All telecommunicators shall hold a evaluated continually for Emergency Medical priority dispatch for current EMD certification from IDPH at all throughout the year and Dispatching certification times. produced in annual report. Telecommunicator shall, within 60 Measure will be Initially process 95% of seconds of answering an emergency call, substantiated through emergency calls within 60 acquire location of incident, phone the use of quarterly Emergency Call Processing seconds of them being number of caller, complaint type, and reporting, which will answered. create a CAD event OR complete a PSAP to culminate into an PSAP transfer at least 95% of the time. annual report. Measure will be Dispatch 95% of substantiated through Telecommunicator group shall dispatch at Emergency Call emergency calls within 90 the use of quarterly Dispatching seconds of them being least 95 % of all emergency calls within reporting, which will 90 seconds of them being answered. answered. culminate into an annual report. Telecommunicator shall, within 60 Measure will be based All Criminal Hot Files will minutes of receiving all necessary on regular auditing of LEADS Hot File Entry be entered without information, complete each Criminal Hot the LEADS CHF records delay. File entry into the LEADS/NCIC contained within the database. 911 center. Telecommunicator shall, within 120 Measure will be Initially process 9S% of seconds of answering a non -emergency substantiated through Non -Emergency Call emergency calls within 90 call, acquire location of incident, phone the use of quarterly processing, seconds of them being number of caller, complaint type, and reporting, which will answered. create a CAD event OR complete a PSAP to culminate into an PSAP transfer at least 95% of the time. annual report. Measure will be Dispatch 9S% of non- Telecommunicator group shall dispatch at substantiated through Non -Emergency Call emergency calls within least 95 % of all non -emergency calls the use of quarterly Dispatching 150 seconds of them being within 150 seconds of them being reporting, which will answered. answered. culminate into an annual report. 127 Dispatch Center - Fund Summary (Fund 100, Department 23) 4010 Salaries - - 896,639 787,410 1,387,146 1,3871146 11341,037 1,436,955 49,809 3.59% 4030 Salaries - Part Time - 71,527 20,728 30,000 _ 30,000 34,954 30,000 - 0100% 4050 Overtime - 55,000 43,233 90,000_i _ 901000 154,423 110,000 20,000 22.22% 4310 Health Insurance 292,094 214,437 429,110 429,110 318,564 347,918 (81,192) -18.92% 4320 Dental Insurance - 8,919 7,706 15,476 151476 12,038 13,423 (21053) -13,27% 4330 Life Insurance _ - 983 446 B90 1 890 753 890 - 0.00% 4340 Vision Insurance _ _ _- -� 422 463 _ 846 846 770 852 6 0,71% 4410 FICA Medicare - _ 78,272 61,559 115,297 115,297 112,205 120,637 51340 4.63% 4420 IMRF Retirement - 130,702 108,904 188,779 1880779 187,044 190,275 1,496 0,79% 4510 Uniform Allowance 51500 2,142 8,700 8,700 2300 8,400 (300) -3.45% TOTAL SALARIES/BENEFITS - - 11540,058 1,247,028 21266,244 21266,244 21164,088 2,259,350 (6,894) -0,30% 5110 Contractual - - 22,980 35,481 103,050'. 175,342 170,B66 111,300 8,250 8.01% 5310 Postage and Meter - 250 - 50 50 24 50 - 0.00% 5320 Telephone - 41032 1317 i 4,040 4,040 13,155 - (41040) -100.00% 5420 Travel Expense - 6,050 15 51250_ 5,250 12922 50250 - 0,00% 5430 Training - _� _ 9,400 1,043 - _ _ 91540 7,017 9,540 %540 r #DIV/W 5440 Tuition Reimbursements - 31500 - 3,500 3,5D0 B74 32500 - 0.00% 5510 Utilities - - i 500 - 500 Soo - 500 - 0.00% TOTAL CONTRACTUAL SERVICES - - 46,712 37,B56 116,390 198,222 193,858 130,140 13,750 11.81% I_ 6110 Materials and Supplies - - 10,220 71512 5,595 5,595 11828 50595 - 0.00% 6210 Office Supplies - 11200 11226 2,200 2,200 468 2,200 - 0.00% 6270 Small Equipment - - 4,100 2,974 2,000 2,000 349 2,000 - 0.00% TOTALSUPPLIES - - 15,520 11,712 91795 %795 2,645 91795 - 0.00% 9920 Purchase of Service -Risk Management - 40,532 40,532 51,132 51,132 51,132 51,132 - 0,00% 9922 Purchase of Service - IT - - 94,245 94,245 27,491 27,491 27,491 32,491 51000 18.19% TOTALOTHER - - 134,777 134,777 78,623 78,623 78,623 83,623 51000 6.36% I Fiscal Year 2018/2019 Annual Budget Public Works Administration 129 Public Works Administration - Overview o� ORBS Public Works Departmental Mission The mission of the Public Works Department is to respond to the community needs consistent with the policies determined by the City Council, to maintain a working environment built upon trust, respect and citizen involvement, and to achieve the city's goal of being responsive to resident needs and focusing on customer service. The Public Works Department consists of six operating sections that provide high quality services to the citizens of our community. These sections include: Administration, Fleet Maintenance, Streets Maintenance, Water Division, Wastewater Division and Utility Division. Public Works Administration Mission It is the purpose of the Public Works Department's Administration Division to provide direction and administrative support to the Department of Public Works. To complete Public Works Projects for the public welfare, to the highest quality, in accordance with legal and contractual standards, and in accordance with City Statutes. The Public Works Department is responsible for the management of all City Engineering and Construction Projects, Request for Proposal solicitation for Engineering and Construction projects, contract enforcement, and general technical assistance for the Public Works Department. There are several primary operating functions within the Public Works Administration Division. • To work 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. • To provide engineering services for a number of projects, plan review, and monitoring the work of the City's contracted engineering. • To provide administration, oversight, budgeting and capital improvement program planning/implementation for the Street Division, Water Division, Wastewater Division, Utility Division and Fleet Maintenance Division of the Department of Public Works. The Public Works Administration Division includes the Director of Public Works Jon Schmitt, Project Engineer Troy Strange, Administrative Assistant Nancy Lorch, and Office Assistant Nicole Meyer. 130 Public Works Administration - Organizational Chart 131 Public Works Administration - FY17/16 Accomplishments • Administration of the construction of the consolidation of the Central Wastewater Treatment Plant (CWWTP) and the South Wastewater Treatment Plant (SWWTP) • Management of biennial bridge inspections • Administration of the "in-house" preparation of bid specifications, bidding services and construction observation of the Spring tree planting program • Administration of e-waste and Christmas lights recycling programs • City Council adoption of the updated tree topping ordinance • Administration of Honorary Street Sign Policy • Administration of specifications, bids and purchase of Street Division Pickup Truck and Sewer Division Hook Truck with containers • Administration of "in house" preparation of bid specification, bidding services and contract award of City-wide Mowing Services • Administration and oversight of Refuse Collection Contract • Participated in joint bid for sidewalk cutting of uneven panels with several McHenry County local agencies. Preformed construction observation in house" • Negotiated a collective bargaining agreement with IUOE Loca1150 • Negotiated right-of-way exchange on Lincoln Road to facilitate Lincoln Rd/Pearl St Improvement construction • Awarded "Tree City USA" for the 23rd consecutive year. • Management of consultant contract for completion of Engineering Design Services for Green Street Bridge Rehabilitation project. • Completion of $1.1 million 2017 Road Program and performance of all Engineering Services "in house" with assistance from Public Works Superintendents. • Management of consultant contract for completion of Phase 1 Engineering for Curran Road S-Curves. 132 Management of consultant contract for completion of Phase II Consultant Engineering Services for Pearl Street and Lincoln Road Project. Final plans, specifications, and estimate submitted to IDOT for April 27, 2018 State Letting. ® Complete selection process for Phase III Consultant Engineer for Pearl Street and Lincoln Road Improvements per Federal Quality Based Selection guidelines. ® Management to complete construction observation and contract administration for 2017 Crack Sealing Program. ® Complete selection process for Phase I Engineering Services for Bull Valley Road Multi Use Path project. Act as lead agency and prepare contract documents on joint contract for Reclamite Pavement Rejuvenator with several other local Municipal Agencies. ® Management of consultant contract for completion of Engineering Design Services for Timothy and Clover Water Main Replacement Project. ® Complete construction observation and contract administration for 2017 Sanitary Sewer Lining Program and Sanitary Manhole Lining program. ® Submittal of IEPA Section 319 Grant Application requesting State Funding Participation for Lakeland Park Drainage Ditch upstream detention and sediment control facility. ® Management of consultant contract for completion of Phase 1 Engineering Design Services for Elm Street Lighting Improvements. IEP Grant Submittal November 2017 and Phase 1 Report finalized January 2018. ® Management of consultant contract for completion of Engineering Design Services for Recreation Center Parking Expansion Project. Management of consultant contract for completion of Engineering Design Services for Downtown Parking Expansion and Parking Lighting Improvements. ® Revised projects section of Public Works Website to improve RFP/Bid Section of Public Works Website to provide better contract information for potential bidders and vendors. 133 Public Works Administration - FY18/19 Goals & Objectives • Provide effective communication with the City residents about the various Public Works projects, programs, and services • Ongoing management of the city's refuse collection contract and e-waste/ Christmas lights recycling programs • Provide responsible financial leadership while maintaining existing Public Works services • Begin data collection for Storm Sewer GIS Database • Administer specifications, bids and purchase of Public Works Department's equipment and vehicles • Select firm for engineering services for Central Avenue Storm Drainage Improvements, manage all consultant engineering services, and construct improvements in FY18/19. • Perform all Engineering Services for 2018 Road Program "in house" • Select firm to perform Phase III Construction Engineering Services for Green Street Bridge Rehabilitation and manage project. • Select firm to perform Phase III Construction Engineering Services for Recreation Center Parking Lot Expansion and manage project. • Select firm to perform Phase III Construction Engineering Services for Downtown Parking Lighting Improvements and manage project. • Manage Phase II Design Engineering Services for Curran Road S-Curves and submit final plans, specifications, and estimate for early 2019 State Letting. • Act as lead agency and manage Phase I Engineering Services for Bull Valley Road Multi Use Path project. • Select firm to perform Phase III Construction Engineering Services for Timothy Lane and Clover Avenue Water Main Replacement and manage project. • Manage Phase III Construction Engineering Services for Pearl Street and Lincoln Road Project. 134 Public Works Administration - FY18/19 Performance Measures PerformancePerformancePerformance; Item o. -. Develop an updated CIP and Was the CIP undated and Meeting deadline dates Capital Improvement Program transmit to Finance and transmitted to the Finance and (CIP) Administration Department Administration Department by the due date? Develop and present a Was a operating budget Meeting deadline dates Annual Budget operating budget for to the transmitted to the Finance and Finance and Administration Administration Department by Department the due date? Respond to a resident complaint % of time that Public Works Respond to resident Resident Complaints/Inquires or inquiry within one working Department staff responds complaints/inquiries within one day from receipt within one day working day 100% of the time throughout the year Request for Proposals (RFP) qr Develop all RFP's for IV All RFP's completed, issued, and Development Engineering Services and for Status of RFP's for budgeted contracts awarded for projects Construction projects for which projects in current budget year the City performs "in house" engineering services In 61L Manage City Engineering and Schedule and Budget status of All Engineering and Project Management Construction Projects and City Engineering and Construction Projects assure projects are completed Construction Projects completed on time and on on time and on budget budget Assure that City Engineering All contract work and scope Contract Enforcement and Construction Projects are Quality Assurance of City items are completed in completed in accordance with Engineering and Construction accordance with contract contract documents and scope Projects provisions of services Review and issues utility permit All issued permits are Permit Reviews applications and assure that completed and closed per the City infrastructure is Status of issued permit terms of the original permit undamaged or is fully restored application. No/minimal upon completion of permit outstanding permits. work Technical Support for Provide all requested technical Completion status of requests for All requests for technical Maintenance Staff support for City Maintenance technical assistance assistance are completed on Superintendents and "as needed" basis Crew Leaders 135 Public Works 1 4010 Salaries 154,075 159,263 357,230 271,500 273,904 288,691 17,191 6,33% , 4050 Overtime 73 #DIV/O! 4310 Health Insurance 36,847 41,096 78,795 74,234 62,757 57,680 (16,554) -22.30% 4320 Dental Insurance 11539 11610 21656 21114 11994 21057 (57) -2,70% 4330 Life Insurance 79 79 1S8 140 191 164 24 17,14% 4340 Vision Insurance 81 7S 1S2 139 141 139 0,00% 4410 FICAMedicare 11,318 11,677 26,462 20,770 20,247 22,085 1,315 6,33% 4420 IMRF Retirement 20,479 20,970 46,680 34,698 34,433 351OB6 388 1,12% 4510 Uniform Allowance 150 150 150 0,00% TOTAL SALARIES/BENEFITS 224,418 234,843 512,283 403,745 393,667 406,052 21307 0.57% 5110 Contractual 770 11998 62,854 31500 996 31500 0,00% 5310 Postage and Meter 387 356 485 400 377 400 0.00% 5320 Telephone 1,369 1,378 1,775 11850 21030 (1,850) -100,00% 5410 Dues 229 285 674 380 202 380 0,00% 5420 Travel Expense 32 34 500 500 0,00% 5430 Training 803 138 11509 2,000 267 2,000 0,00% TOTAL CONTRACTUAL SERVICES 31590 40155 67,331 8,630 31872 61780 (1,850) -21,44% 6210 Office Supplies 11075 11255 999 1,000 651 11000 0,00% 6270 Small Equipment 11661 1,327 21000 22000 0.00% , 69SO Forestry (Moved to Streets in FY17/18) 21585 157,576 #DIV/O! 1 TOTAL SUPPLIES 2,736 5,167 158,575 31000 651 3,000 0.00% 9920 i Purchase of Service - Risk Management 9,019 91019 10,081 13,384 13,384 13,384 0,00% 9922 Purchase of Service - IT 13,530 14,079 17,433 17,707 17,707 20,299 2,592 14,64% TOTAL OTHER 22,549 23,098 27,514 31,091 31,091 33,683 21592 8,34% 136 Public Works Street Division - Overview Public Works Street Division Mission It is the mission of the Street Division to support and enhance a high quality of life for the City's residents, businesses and visitors by providing a well -planned, environmentally sensitive, cost effective infrastructure through superb customer service. In addition, it will provide residents with a quality urban forestry program that is cost effective and delivers good stewardship for the natural resources of the community. The functions of the Street Division include street cleaning, street ti$ maintenance, responding to all resident requests, and ensuring-5 roadways are cleared of snow and ice. All city -owned vehicles and various pieces of equipment are repaired and maintained at the Public Works Facility with two full- time mechanics. The division also maintains public sidewalks, curbs, storm sewers and the drainage system. In addition, as of FY17/18, the Street Division also provides residents with a quality urban forestry program that is cost effective and delivers good stewardship for the natural resources of the community. The arborist's crew uses professional management practices in tree planting, maintenance and removal to improve the quality of the urban tree canopy. In summary, Street Division employees undertake the following tasks: • 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 City streetlights and signals by a private contractor. • Maintain and repair the City's drainage system to prevent flooding. • Monitor creek levels and maintain to prevent flooding. • Advises the department director on fleet and infrastructure needs and responds to service requests. • Tree planting; maintenance and removal, conduct tree inventories, survey trees for insect, disease and any hazardous tree problems, administer the Arbor Day Program, maintain the City's status in the Tree City USA and Growth Awards Program. Work with other City departments, community groups and volunteers on tree related issues, and oversee the Tree Preservation Ordinance for compliance. • Oversee the mowing contract for city properties. Crew Leader Andy Lechner Street Division Superintendent Scott Schweda Crew Leader Forestry Crew Fleet Maintenance Leader Dale Moll Division Maintenance " Maintenance Maintenance Worker Worker Worker Dave Christopher Tim Lechner Ron Barta Maintenance Maintenance Maintenance Worker Worker Worker Banwart i Gary Mertz Sam Burrafato Maintenance Maintenance Maintenance Worker Worker Worker Pedro Padro ■ Nick Goettsche Jason McMahon Mike Harper Maintenance Mechanic Worker Paul Clements Mike Owsley Maintenance Worker Rick Leisten Maintenance Worker Jacob Reilly Maintenance Worker Mike Turner CITY OF Mc]-IENRY r Y 1415 Mechanic Jason Lamz Public Works Street Division - FY17/18 Accomplishments • Crews resurfaced and repaired sections of streets throughout the City. • Trimmed trees and removed 100 ash trees; completed the bi-annual brush program and responded to storm damage requests from residents. • Replaced sidewalks and curbs. • Completed numerous drainage improvements. • Implementation of the 2017 Crack Sealing program. • Maintained city -owned vehicles and equipment. • Right of way maintenance including parkway restoration, mowing, and creek cleaning. • Oversaw the 2017 Road Program which included 5 streets. • Managed snow removal, ice control, and conducted street cleaning in addition to making miscellaneous repairs. • Assisted with the preparation for Fiesta Days and 4� of July activities. • Pavement maintenance process reclamite was completed on the roads that were paved in 2016. • The 50/50 residential planting program "Plant Trees McHenry" was funded for the fourth year. This year's program included funding for 25 trees; 4 trees were planted through the lamed =0 • Arbor Day was celebrated on April 28th, 2017. A total of 6 trees were donated by the Gilbertsens, Mrs. Lane, Sandy Zawistowski, Fabrik Molded Plastics, Vicki Winkelman, and the McHenry Garden Club. • The City planted 302 trees in various parkways. • Crew members trimmed 934 city trees in Legend Lakes, Boone Creek, McHenry Shores, Pebble Creek, and the Oaks of Irish Prairie. • 127 trees were removed in 2017 with 78% of these removals due to the Emerald Ash Borer. Public Works Street Division - FY16/19 Goals & 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. • Assist with the preparation for Fiesta Days and 4th of July activities. • Using the 50/50 residential planting program plant 25 trees- if funding is approved. • Plant five trees for our annual Arbor Day celebration. • Plant ten trees in our park system. • Plant 80 trees in the city parkways in Green Valley, Brittany Heights, Country Club Estates, Oaks of McHenry, and Riverside Hollow. • Assist Developers with tree planting in new subdivisions. • Continue work on the seven year pruning rotation in the subdivisions of Glacier Ridge, Wood Creek, Martins Woods, Brittany Park, and Lakeland Park West • Continue the five year pruning cycle for City parks Knox, Miller Riverfront, McHenry Shores, Creekside, Pebble Creek, Boulder Creek, Wheeler Park, Center St., and Overton. • Identify hazardous trees for removal and remove other trees as required. • Remove Emerald Ash Borer infested trees in a timely manner. • Continue to monitor for Emerald Ash Borer, Gypsy Moth, and Japanese Beetle. 141 ® Capital Improvement Projects to administer include the 2018 Road Resurfacing Program, asphalt pavement maintenance (crack sealing and reclamite) equipment/vehicle replacement, and the Sidewalk Replacement Program. 142 Public Works Street Division — 1AY18/19 Performance Measures PerformancePerformanceP- • Itern Goal Measure Proposed Provide all necessary training Was all training Staff fully prepared for work Less Internal Training for all division employees required for the year work related injuries. each year completed? Street Sweeping Sweep 121 center lane miles Center Lane Miles Clean streets a year Sidewalk Replacement Replace 3,000 lineal feet of Lineal feet Safer sidewalks for residents hazardous sidewalk per year Crack seal, patch and apply Were Asphalt Maintenance reclamite to prolong the life all necessary Safer roads. Save money of City roads road repairs made? Provide all necessary Drainage Maintenance ditching, storm sewer repairs Repairs Flood prevention and creek maintenance to prevent flooding Tree Condition Provide a survey Half the City Reduce failure and preserve City Trees Creek One prescribed Maintain our City natural Manage Woodland Areas Maintenance/Controlled burn/all creeks areas/preserve creeks burns maintained 143 4010 Salaries 4050 Overtime 4060 Overtime - Snow Removal 4110 Salaries - PT Seasonal 4310 Health Insurance 4320 Dental Insurance 4330 Life Insurance 4340 Vision Insurance 4410 FICAMedicare 4420 IMRF Retirement 4510 Uniform Allowance TOTAL SALARIES/BENEFITS ', 1,168,698 1,179,270 1,107,777 ', 1,289,777 1,333,743 1,308,833 8,961 6,832 81283 10,000 22,397 10,000 58,293 53,717 61,416 70,000 72,039 70,000 -I_ 230 22,0441 20,000 19,590 20,000 368,923 347,465 337,836 370,061 385,641 346,032 1,92611 2,078 2,231 2,766 2,552 2,692 759 700 693 760 686 779 150 155 103 76 70 63 99,019 93,823 90,340 106,318 105,907 107,776 173,05 2 164,642 169,014 175,058 172,694 173,604 61478 91095 1Q183 8,620 7,401 81620 1,886,259 1,858j007 11809,920 2,053,436 2,122,720 2104%399 (24,029) (74) 19 (13) 1,458 (1,454) (5,037) 1.48% 0.00% O.00o/a 0.00% 2.50% 17.11% 1.37% 0.00% 5110 Contractual 97,335 99,172 92,368 80,000 107,274 93,000 13,000 16.25% 5320 Telephone 3,795 3,795 41634 L 5,900 8,280 (5,900) -100,00% 5370 Repair & Maintenance 152,218 108,202 127,766 125,000 119038S 125,000 0,00% 5430 Training Reimbursement 785 2,886 3,168 4,00011 _ 30195 51000 10000 25,00% 5440 Tuition Reimbursement - - - - - - - , #DIV/01 5510 Utilities 51451 1,167 S75 449 #DIV/01 5520 Street Lighting 277,237 316,745 290g242 270,000 297,300 305,000 35,000 12,96% TOTAL CONTRACTUAL SERVICES 536,821 5310967 518,753 484,900 535,883 528,000 43,100 8.89% 6110 Materials & Supplies 251,679 239,627 224,130 240,000 249,190 240,000 - 0,00% 6210 Office Supplies 11704 11850 8S5 11500 257 11300 (200) -13,33% 6250 Gasoline & Oil 95,439 62,228 52,276 60,000 58,854 60,000 0,00% 6270 Small Equipment 5,341 4,279 553 31500 7,510 41000 500 14,29% 6290 Safety Equipment 11411 945 11500 1,336 1,500 0,00% 6950 Forestry (Moved from Admin in FY17/18 187 56,000 IS60233 660000 10,000 17,86% I- TOTAL SUPPLIES 355,574 307,984 2780946 362,500 473,380 372,800 10,300 2,84% 9920 PurchaseofService-Risk Management � 103,047 103,047 90,904 88,088 88,088 88,088 - 0.00% 9922 Purchase of Service -IT 9,166 9,539 11,811 12,158 12,158 14,357 2,199 18.09% TOTAL OTHER 112,213 112,586 102,715 100,246 100,246 102,445 21199 2,19% 8300 'Capital- Equipment TOTAL CAPITAL OUTLAY TOTAL PUBLIC WORKS -STREETS 2,890,867 2,810,544 2,729,628 3,001,082 3,234229 3,051,644 50,562 1.68% y1! Pill dt IN CITY OF :�Fi �TTi Parks and Recreation - Overview Mc"U'' YK773i Parks & Recreation Department Mission It is the mission of the Parks and Recreation Department to provide planned recreation programs and maintain facilities and parks to meet the recreational and park facility needs of the public, recognizing that leisure activities, facilities, and open spaces are important to individuals, families, and community life. The Parks and Recreation Department continues to expand on the large strides made as a department in 2016/17. The core of this success has been the Recreation Center. The facility has proven to be the heart of all recreation needs for our community and served to be a community hub with over 76,000 visits to the center last year alone. The overwhelming success has necessitated the expansion of the existing parking lot, which will occur in the Spring of 2018. Finally, the facility has also cemented the campus feel of the Municipal Center, Recreation Center and adjoining Knox Park connecting all with a mile long paved bike path that was installed through an Illinois Transportation Enhancement Program Grant. Staff has been successful at meeting the challenge of making the facility financially solvent while also meeting the expanding recreation interests of the residents of McHenry. In 2017/18 the Department completed its first Community Needs Assessment since 2004. The statistically valid survey sent questionnaires to over 4,000 individuals in our community collecting responses that representative of our community demographics. The survey provided invaluable information on existing facilities and programming. More importantly it provided a road map of where our residents would like to see the Department expand and improve. Expansion of the recreation center was at the forefront of most respondents' top priorities, primarily an indoor pool and expanding indoor aquatic offerings. Finally, a significant new community amenity to be constructed in FY17/18 is the Miller Riverfront Park Public Boat Ramp. In partnership with the Village of Johnsburg and Village of Lakemoor, the City was able to acquire boat ramp rights in FY16/17 to be able to complete the construction of a boat ramp that is more than 25 years in the making at Miller Riverfront Park. No doubt that this will provide a unique service to residents of McHenry, Johnsburg and Lakemoor, but also visitors to the community. The Recreation Division of the Parks and Recreation Department consists of four full-time and one part-time employees on the recreation side. Director of Parks and Recreation Bill Hobson works alongside Athletics and Aquatics Supervisor Nicole Thompson, Recreation Supervisor Cindy Witt, Facility Coordinator Christine Borgerding and Fitness Coordinator Nicole Schaller to coordinate the various programs, events and services provided by the Department. Additionally, staff oversees the management of the McHenry Recreation Center, Petersen Beach and Merkel Aquatics Center facilities for the Department. 146 The Parks Division, consisting of Superintendent of Parks and Downtown Maintenance Pat Gormak, Assistant Superintendent Jeff Friedle and five (5) full-time Parks Maintenance Workers continue to tackle the massive task of maintaining the City's more than 650 acres of park space, contained in thirty-eight (38) municipally -owned park sites. In addition, the Parks Division is responsible for maintaining the amenities of the City's three downtown business districts - Riverside Drive, Green Street, and Main Street. 147 Superintendent of Parks Pat Gorniak Assistant Superintendent of Parks Jeff Friedle Maintenance Worker John Dillon Maintenance Worker Chris Etten Maintenance Worker Chris Van Landyt Maintenance Worker Tracy Crowder Maintenance Worker Bob Zimmerman Director of Parks and Recreation Bill Hobson Recreation Athletics &Aquatics Recreation Supervisor Supervisor McHenry Recreation Cindy Witt Center Nicole Thompson Facility Coordinator Christine Borgerding Fitness Lead �� Guest Services � Lead Recreation Program ■ Athletics &Aquatics Staff Program Staff Parks and Recreation - FY17/18 Accomplishments Special Events • The popular Dad & Daughter Date Night was held in February with over 300 people in attendance. This event provided and wonderful evening for girls to spend one-on-one time with their dads. • The historical Big Wheels Race was held in July in conjunction with Fiesta Days. Boys and girls ages 3-5 raced for victory at the Petersen Park Racetrack. • Several new special events were offered this fall, including the Pumpkin Party, Mom &Son Game Night, Turkey Burn, several Fitness Challenges, and Santa's Candy Cane Hunt. These community events were well attended and hopefully become annual favorites. • New special events for spring included: - Biggest Winner Fitness Challenge - Wrigley Field Tour - Day of Play & Fitness fair - Breakfast with the bunny Programs • Approximately 400 sessions of general recreation programs, trips and events were offered. As of mid -February, there have been approximately 3000 registrations for general recreation. • McHenry Safety Town was built in the spring of 2017 with sponsorship, donations and volunteer building support from McHenry C v Sherwin-Williams, Jessup Manufacturing, The Home Depot, Behr, Illinois Traffic Control & Protection, Big R, Jimmy Johns, Riverside Bakery and Dunkin' Donuts. Eight buildings were constructed and placed on the repurposed concrete pad located at the Skate Park in Knox Park. The concrete pad was painted to look like a "mini town" with streets, sidewalks and city blocks. A week-long camp and several clinics were held for children ages 4-6. Curriculum was built and included instruction, fun activities and hands-on learning on the safety topics of fire, bicycle, stranger -danger, pedestrian and more. • The Summer Day Camp was successful this summer with over 675 registrations, more than twice as many as the previous summer. New Mini Explorers Camp clinics were added for children ages 4-6 and received over 120 registrations. Kids and their counselors had a great time playing in the parks, swimming and going on adventurous field trips. • Spring, winter and fall dance classes are serving additional younger children in the community. The 8-month long program is currently running with over 140 students. Adult dance and Ballroom dance are also well attended. • Junior Rangers classes, McHenry Park Quest and GeoTour Passport were introduced this past summer. Park Quest and GeoTour are self -guided and provided great opportunities to get people in local parks. Junior Rangers and McHenry Park Quest will continue in 2018. 149 • Children's activities were offered at all city band concerts when the City Band played. • Adult field trips were reintroduced in winter 2018, scheduled cooperatively with Crystal Lake, Huntley and Barrington Park Districts. Each agency is responsible for the creation of 1 to 2 trips per season which are then offered through all agencies. This helps to fill the trips and avoid cancellations. • Several no -school day camps and trips were held this year. Camp days are held during the holiday and spring -break weeks. Trips are held on days of Parent/Teacher Conferences. There were approximately 100 registrations for these events. • Additional General Recreation programs were offered working with the following local businesses: - Integrity Financial - Financial Lunch & Learn Seminars (new in 2018) - The Studio of McHenry - Art instruction - Rock'n' Kids of Algonquin - Music instruction Just 4 You Treats of McHenry - Cookie decorating Riverside Animal Clinic of McHenry - Veterinarian Camp • Approximately 45 rentals were schedule in 2017-2018. The community rooms have been utilized for birthday parties, bridal & baby showers, seminars, meetings and celebration of life luncheons. Athletics • The athletics sector has offered 290 program sessions during the 2017-2018 budget year. We have helped 1,025 youth develop and discover the world of organized sports. • We developed new partnerships with Hot Shots Sports, Boone Creek Golf Course, and Illinois Girls' Lacrosse Association for the 2017 season. • We offered a total of 24 new programs during the last year including an archery mini camp, family color wars, floor hockey league, fishing, SNAG golf, golf camps, gymnastics clinics, nerf combat, toddler sports leagues, tumble tots, baseball hitting and fielding clinics, lunch & play classes, 3rd41h grade league, elite basketball training, small group athletics trainings, girls basketball camp, club basketball program, ultimate Frisbee, volleyball skills clinics, softball skills clinics, softball hitting clinic, beginning tumbling, girls multi -sport clinic, and girls lacrosse. • Our adult program flourished with 42 summer softball teams and 27 fall softball teams. We also offered a new full court men's basketball league that filled for with 6 teams for the first year. • We saw growth in our open gym programming with an average of 40 adults/families at open basketball, and an average of 15-20 adults at open volleyball/pickleball. • We purchased a bubble soccer set to offer birthday parties and program during the year. We will look at adding archery tag this summer to draw birthday parties and increase our archery program offerings. 150 • For 2018, athletics will be taking over the MIB program in McHenry to run in house basketball leagues for grades K-8th. We will also venture into summer sports camps along with redeveloping existing programs to feeder into our athletic affiliate groups. • The athletics sector is partnering with Northern United Futbol Club to offer our soccer programs in partnership with their organization. We will make similar steps to do the same with other youth affiliate groups in the area. • The athletic supervisor met with all the city associated athletic affiliate groups to organize a joint marketing magazine for athletics in McHenry. The organizations agreed to meet throughout the year to develop local events and joint efforts for our programs in the area. Aquatics • The aquatics sector saw another summer of strong attendance at our Merkel Aquatic Center and Petersen Park Beach. We sold 804 pool passes for the 2017 season a total of 408 more than 2016. The Merkel Aquatic center had a total of 9,340 visitors during the summer, and the Petersen Park Beach had a total of 1,226 visitors. • We offered 81 swim lesson classes that taught 396 children how to be safe in and around the water. • We developed a new water skiing clinic with the Wonder Lake swim team which we will offer again in 2018. We also offered more sailing classes through the Community Sailing School at Pistakee Bay. The McHenry Marlins program expanded to offer a junior Swim Team program to help swimmers prepare and learn the world of competitive swimming in a relaxed environment. For 2018, we are adding a masters swim program, aqua boot camp, and open water swim program. • New special events were offered to the community and pool pass holders. We developed a free boat rental day and member only night swim for pass holders. We also developed a start to summer kickoff party and end of the season summer bashes. • We installed an Aqua Zip'N at the pool to offer a new element for patrons to enjoy. We also made improvements to the chemical room that helped our pool operate and maintain proper chemical levels. We purchased new pool equipment, lounge chairs, and lane lines to help the overall look and appeal of the facility. • At the beach, we bought the Wibit hurdle element in addition to our 2016 Wibit wiggle bridge. We added corcls and power paddlers to our boat arsenal. For 2018, we look to continue expanding our inflatable course and boats with paddle boards, double kayaks, and pedal boats. • We had 46 pool party rentals. We will expand this offering by venturing into beach birthday parties along with semi -private parties. • The McHenry Marlins swim team had 93 swimmers during the summer season. The program brought in a total of $32,502 in revenue. They finished 3�d in the Northern Illinois Summer Swim Conference. Our winter swim team had a total of 133 swimmers and a revenue of 151 $54,631. The winter team has 21 swimmers with Illinois Swimming Inc. [ISI)/USA swimming regional cuts times. We have 3 winter swimmers with ISI championship cut times. Six of our swimmers qualified for the National Club Swimming Association meet in Orlando. • A McHenry Marlins swimmer was honored at the fall 2017 Illinois Swimming Inc. annual banquet where he received a state award due to his number of regional and state cut top finishes for the 2016 season. Special Events • Over Fiesta Days, we had 215 people enjoy the McHenry River Run on Saturday morning. Wednesday night, we had 45 youth compete in the open track meet. • Our first annual Day of Play brought families out to the recreation center to work out, get a glimpse of summer programs, enjoy a petting zoo, race on an inflatable obstacle course, participate in a scavenger hunt, and get a glimpse of the McHenry farmer's market. We will be making this an annual even to occur the 1st weekend of May. • Our first annual Breakfast with the Bunny served 175 parents and children a pancake breakfast on April 2. Families enjoyed taking pictures with the bunny, participated in an egg hunt, made some crafts, and interacted with other families. The event for 2018 has been limited to 100 guests due to space constraints, and we already have 75 people signed up. Jewel of McHenry provided generous supplies for the breakfast helping offset the cost of the event. 152 Parks Improvements Center Street Park • Basketball court and hoop replaced Lakeland Park Community Center • New basketball post & hoop re -installed Fox Ridge Park • Additional seasonal ice rink installed • New baseball backstop installed Knox Park • New siding and fresh paint on field 1 reviewing stand • New concrete pad for shelter 1 • New scoreboard installed on field 2 • New park identification signage • Knox lower barn rebuilt, repainted and new doors installed • Safety town built Petersen Park Farmhouse • Main barn painted along with batten boards installed. New gable louvers installed and painted. • New modern bathroom built in main house • Roof replaced on main house Petersen Park • New handicap/bottle filler drinking fountain installed. • Field 2 infield reshaped and slit seeded with high wear hybrid seed Veterans Memorial Park • Gazebo railings removed, rebuilt and painted • Gazebo posts repainted • Audio equipment upgraded Jaycee's Park • New baseball backstop installed Miller Riverfront Park • New community boat launch built Neumann Park • Extensive landscaping done with plantings of arborvitae, perennials, and annuals • Neumann stable was painted 153 • Archway trellis was rebuild and enhanced Overton park • Gazebo was rebuilt and repainted Downtown districts • New crosswalks signage installed on green street • Parking regulation signage installed throughout the downtown & parking lots • New parking lot identification signage designed in house and installed • Riverwalk brick sidewalk and new trees installed in front of theatre Riverwalk • Numerous planting areas re -landscaped • Boone Creek Fountain replaced General maintenance notes • 220 tons of ballfield mix spread • 250 lbs. of athletic turf seed • 1001bs. of hybrid high wear grass seed • 128 hanging baskets watered and maintained • Planting of all downtown pots and urns • Setup, take down and cleaning of numerous city events Marketing • The parks department has pushed to improve our marketing efforts and customer response rates through social media, digital, and print marketing efforts. • Print marketing efforts have included flyers and brochures going out to local school districts in McHenry, Johnsburg, and Wonder Lake. We have placed our information strategically around the building in slat boards, child care, at the front desk, and entry/exit doors. Our annual brochures continue to be mailed out to past participants and McHenry households along with being available at the local libraries in the area. The department invested in a Shaw media plan that includes two medium print ads in the Northwest Herald twice a month which we use to showcase facility promotions, special events, and upcoming program registrations. We have developed a monthly calendar that showcases when programs start to help participants and members see what is happening each month. • Digital marketing efforts have included updates to our department webpage including on- line program calendars, program pictures, class descriptions, league schedules, program information, exercise class schedules, on-line enrollment, and digital brochures. We have utilized Facebook and Instagram to run paid program posts, share important schedule changes, capture programs live, and push enrollment for programs. Our Shaw Media agreement includes digital ads on their website twice a month. Our ads are currently getting a digital click rate of .10% on their website which is above the industry average of .02%. We have utilized Mailchimp to distribute monthly newsletters to our members and 154 program participants of upcoming events and new program highlights. The department has been utilizing Survey Monkey for the last two years to evaluate programs and make necessary changes to increase program participation along with adjusting offerings. The department completed an in -kind agreement with Kelsey Adams Photography to capture our events year round for promotion in our brochures, marketing efforts, and social media campaigns. 155 Parks and Recreation — 1-4Y18/19 Goals & Objectives • Continue to maintain the City's quality parks and parks amenities and to offer quality recreation programming for our residents • Bring Miller Riverfront Boat Launch online for use by residents and visitors to McHenry • Coordinate with user groups, service groups and businesses to manage McHenry's fantastic public events • Provide information related to the expansion of the McHenry Recreation Center and development of a family aquatic center in preparation for a potential public referendum in November of 2018 • Enhance Department's sponsorship program. • Complete Community Needs Assessment project, analyze findings and look to plan and implement recommendations. • Continue to develop relationships with school districts, chamber, and various social clubs in community. 156 Parks and Recreation - FY18/19 Performance Measures ..... -. Item Goal Description What are the leisure needs of Complete Community Needs the residents of McHenry and Assessment. Analyze findings how will the Parks & Recreation October 2018 Community Needs Assessment and implement Department make changes to recommendations. meet those needs? Are the Department's Measure the Department's marketing efforts reaching the Marketing marketing success and intended audience and which September 2018 effectiveness. methods are most effective? Explore opportunities to What technology are we improve customer service and utilizing and is it the most Technology department operations through effective tool for the specific August 2018 the introduction of task? i.e. Programming technological advancements. Software Invest in training, retention methods, staff recognition and How do we improve the Staff Development/Retention cross training in order to performance of department December 2018 develop staff workforce and staff? reduce turnover/loss. What is the value of a membership? Are we Membership Retention Our goal is a membership continuing to offer the most January 2019 retention rate of 60% current group exercise classes? Are we maintain a clean facility? 157 Parks and Recreation - Fund 41-4 4010 Salaries 683,036 820,009 693,450 722,736 712,942 696,836 (25,900] 3.58% 4030 Salaries - Part Time __ 32,205 85,230 85,230 80,210 (51020) -5,89% 4050 Overtime 1512S2 15,010 14,733 17,500 20,615 17,500 0,00% 4110 Salaries -Seasonal _ 201,237 216,570 27S,908 282,600 318,068 307,S00 24,900 8.81% 41SO Overtime -Seasonal 31899 41676 #DIV/01 4310 Health Insurance 179,286 211,179 190,841 177,148 197,824 177,035 (113) -0.06% 4320 Dental Insurance 41596 51205 41060 41451 3,889 3,062 (11389) -31,21% 4330 Life Insurance 47S 479 479 440 496 369 (71) -16,14% 4340 Vision Insurance 362 399 302 318 294 192 (126) -39,62% 4410 FICAMedicare 69,348 78,43S 73,767 84,767 86,721 84,307 (460) -0,54% 4420 IMRF Retirement 96,195 1080860 92,264 94,602 94,363 89,292 (5,310) -5.61% 4510 Uniforms 2,543 11998 21368 21550 11284 21550 0,00% TOTAL SALARIES/BENEFITS 10284,535 11458,144 1,352,071 1,4721342 1,S26,402 1,458,853 (13,489) .0,92% 5110 .Contractual 5310 Postage and Meter 5320 Telephone 5330 Printing and Publishing 5370 Repair and Maintenance 5410 Dues _ 5420 Travel Expense 5430 Training 5440 Tuition Reimbursements 5450 Publications SS10 Utilities TOTAL CONTRACTUAL SERVICES 6110 I Materials and Supplies 6210 Office Supplies 6250 Gasoline and Oil 6270 SmallEquipment TOTAL SUPPLIES 6920 Special Events 6950 Forestry (Moved to Public Works] 9920 Purchase of Services - Risk Management 9922 Purchase of Services- Information Tech TOTALOTHER 8300 � Capital Expense -Equipment i 8400 Capital Expense -Vehicles 8700 Capital Expense-Parklmprovements 8800 Public Improvements TnTAi rAOTTAT MTT AV 237,656 253,672 214,207 231,350 234,933 24Q350 61078 6,972 10,296 12,900 51042 6,000 14,435 16,651 18,943 15,450 11,056 61578 81588 9,887 13,008 16,202 17,300 14,243 15,600 14,809 15,000 211665 15,000 126, 3 51 125, 848 127,419 127,2 08 127,045 13 9, 863 - 283 567 700 69 11100 2570 2,886 4,980 8,150 71550 91650 235 256 256 500 446 500 24,822 34,041 45,489 21,000 21,09S 21,S00 432,968 464,797 446,853 445,266 445,103 451,263 �_ 129,651 149,910 162,443 146,000 165,171 170,000 1,892 3,884 8,138 5,000 5,821 5,000 22,342 14,804 15,705 18,000 15,898 17,000 3,421 13,744 11990 22,700 81995 14000 157,306 182,342 188,276 191,700 195,885 204,000 25,516 24,697 23,494 26,200 29,325 26,200 9,000 (6,900) (15,450) 4,292 12,655 400 1,500 500 5,997 24,000 (1,000) (10,700) 12,300 (951) (951) 3.89% 53.49% 100.00% 33.00% 0.00% 9.95% 57.14% 18.40% #DIV/0! 0.00% 2.38% 1.35% 16.44% 0.00% -47.14% 6.42% 0.00% #DIV/0! 0.00% 1.71% 0.64% r 60,652 17,388 #DIV/0! 8,825 , #DIV/0! r ,"000 oe 1o1 158 �WL • y'�`'s3• - r rid • 1 � 1 rt Aliair I _ i ,1 noun ' `%Y Tourism Fund - Overview The purpose of the Tourism Fund is to finance tourism -related promotions of the City of McHenry. Revenues of the Tourism Fund are derived from a 5% tax on motel and hotel room receipts. Expenditures currently include annual contributions to the Visit McHenry County organization (formerly McHenry County Convention and Visitors Bureau), partnering with the McHenry Jaycees to fund a portion of the annual Independence Day fireworks in Petersen Park, and on the municipal portion of various festivals and special events held within the municipality such as Fiesta Days and Blue, Brews and BBQ. In FY17/18, the Tourism Fund was also utilized to land a new event - McHenry Shamrocks the Fox - held over St. Patrick's Day weekend. approved by Council during the fiscal year to provide for this funding. A budget amendment was 161 Tourism - Fund Summary (Fund 200, Department 00) Beginning Fund Baia 196,707 263,600 330,5: 405,04'} 405,044 506,190 3142 Taxes - Hotel/Motel j 153,781 153,817 1621505 155,000 186,921 175,000 20,000 1290% F3210 Interest 34 93 261 50l -__ 11500 1,000 950 IF 1900400% 3220 CD Interest 78 49I #DIV/01 TOTAL REVENUES 153,893 153,959 162,766 1S5,0S0 188,421 176,000 20,950 13,51% EXPENDITURES 5110 Contractual 12,000 12,000 13,281 150000 12,275 15,000 0,00% TOTAL CONTRACTUAL SERVICES 12,000 12,000 13,281 15,000 12,275 15,000 0,00% --I i 6940 ,Administrative Expenses _ - , #DIV/01 9901 Transfer to TOTAL OTHER General Fund 75 000 75 000 75,000 75,000 75,000 99,000 24,000 32,00% 75,000 75,000 99,000 24,000 32,00% TOTAL EXPENDITURES 87,000 87,000 88,281 90,000 87,275 114,000 NET INCREASE/(DECREASE) 661893 66,959 740485 65,050 101,146 62,000 Ending Fund Balance 263,600 330pS59 405,044 47%094 506,190 568,190 162 . ij M 1" �'. � 1 r.1d�C t�+�� ti �,;� Pageant Fund - Overview The purpose of the Pageant Fund is to account for revenues and expenditures used to conduct the annual Miss McHenry Pageant. The pageant, a community tradition for 60 years, is conducted annually. Female contestants between the ages of 16 and 20, living with the boundaries of the McHenry District 156 school district and having a McHenry address, are eligible to participate. Revenues are derived from entrance fees of $200 per participate, normally paid by a sponsor, and other donations. Expenditures are directly related to the holding of the pageant. 164 Fund Summ_m _(Fund 205, Department 00) Beginning Fund Balance 3815 Donations 3890 Miscellaneous Income TOTALREVENUES (3,506) (2,636) (11998) (1,811) (1,811) (1,430) SO 4,153 3,949 1,260 1,3001 17547 1,300 4,203 3,949 1,260 1,300 1,547 1,300 _ 5110 _ Contractual 508 _5310 Postage & Meter 2 116 TOTAL CONTRACTUAL SERVICES 2 116 508 - 6940 lAdministrativeExpenses3,331 30195 1,073 1,100 658 11200 TOTAL OTHER 31331 3,195 1,073 11100 6S8 1,200 TOTAL EXPENDITURES 3,333 3,311 11073 1,100 1,166 11200 NET INCREASE/(DECREASE) 870 638 187 200 381 100 Ending Fund Balance (2,636) (1,998) (11811) (1,611) (1,430) (10330) #DIV/0! 0,00% 0,00% #DIV/0! r #DIV/0! #DIV/0! 100 9,09% 100 9,09% 165 Fiscal Year 2018/2019 Annual Budget 166 Band Fund - Overview The purpose of the all Fund is to finance and account for expenditures incurred for the provision of summer concerts by the municipal band to promote culture and recreation in McHenry. Revenues are derived through a transfer from the General Fund and expenditures are related to stipends paid to the members of the and. 167 Band Fund Summary (Fund 1 Department 1 1 Account Account FY14/15 FY15/16 FY16/17 FY17/18 FY17/18 FY18/19 Varia Number Description Actual Actual Actual Budget Estimated Proposed ($ 3120 Interestlncome 3220 CD Interest 3975 Transfer From General Fund TOTALREVENUES �_ 5110 (Contractual TOTAL CONTRACTUAL SERVICES 6110 i Materials &Supplies 6940 iAdministrative Expenses TOTALOTHER TOTAL EXPENDITURES NET INCREASE/(DECREASE) Ending Fund Balance 2 4 12 50 7 S 15,000 15,000 15,000 12,000 12,0 00 12,000 15,009 15,009 15,012 12,000 12,050 12)000 0.00% 0.00% 0.00% 0.00% 12,5391 12,9131. 12,4221 14,5001 13,7301 14,500 - 0.00% 12,539 12,913 12,422 14,500 13,730 14,500 0,00% 500 S00 0,00% 0,00% S00 S00 0,00% 12,S39 12,913 12,422 1S1000 13,730 15,000 2,470 2,096 2,590 (3,000) (1,680) (3,000) 755 16,851 19,441 16,441 17,761 14, 761 Fiscal Year 2 018/2 019 Annual Budget 169 Civil Defense Fund - Overview The Civil Defense Fund accounts is for the training of personnel and the purchase and maintenance of equipment needed to protect and defend the municipality from natural disasters or man-made environmental disasters through early warning and public notification systems. Revenues are derived from a General Fund transfer and expenditures are as -needed. 170 cm H iviDefense 1 Department 11 Account Account FY14/15 FY15/16 FY16/17 FY17/18 FY17/18 FY18/19 Vari; Number Description Actual Actual Actual Budget Estimated Proposed [S Beginning Fund Balance (2o436) :0t• 3975 Transfer From General Fund 51000 51000 B1000 81000 81000 81000 0,00% TOTAL REVENUES 5,000 5,000 8,000 81000 8,000 8,000 0,00% EXPENDITURES 5375 Repair&Maintenance 10,368 3,289 81226 5,300 31600 5,300 0900% TOTAL EXPENDITURES 10,368 30289 8,226 5,300 3,600 51300 I 0,00% NET INCREASE/(DECREASE) (5,368) 11711 (226) 2,700 41400 2,700 ding Fund Balance (7,804) (61093) (6,319) (3,619) (1,919) (919) 171 Fiscal Year 2018/2019 Annual Budget 172 Alarm Board Fund - Overview The Alarm Board Fund is to pay for the maintenance of radios and "head -end" equipment in the municipal 911 dispatch center (NERCOM). This equipment comprises the city's direct connect radio fire alarm monitoring network. City businesses which are required, by building code, to have a fire alarm monitoring system are required to be monitored via direct connection to NERCOM. This direct connection helps to ensure a more efficient emergency response. 173 Beginning Fund Balance 3210 Interest Income 3240 IL Fundlnterest 3895 Alarm Board Revenue TOTALREVENUES 5110 Contractual TOTAL EXPENDITURES NET INCREASE/(DECREASE) Ending Fund Balance -. -- 76,954 186,292 290,519 369,081 389,061 509,273 13 58 3D2 250 998 500 250 0.00% 2 31_ - 330 0,00% 165,878 175,407 188,849 190,000 199,848 200,000 10,000 5,26% 165,893 175,496 189,151 190,250 201,176 200,500 10,250 6,70% 56,555 Ili 71,269 90,589 80,984 92,000 - 0.00% 92,000 56,555 71,269 90,589 92,000 80,984 92,000 0,00% 109,338 104,227 98,562 98,250 120,192 108,500 1861292 290,519 389,081 487,331 509,273 617,773 174 Fiscal Year 2018/2019 Annual Budget stun 175 Audit Fund - Overview The purpose of the Audit Fund is to account for expenses incurred to complete the annual audit of the city's financial statements. The State of Illinois requires that the City of McHenry conducts an independent audit on an annual basis. Statutes provide authority for an entity to levy a portion of the property tax to pay for the audit. Since the authority to levy a property tax for the audit is separate from the authority to levy the corporate rate, the levy amount for audit is deposited into a separate fund and kept segregated from the General Fund receipts. ®46 1 �® A 176 - Fund Summary (Fund 230, Department 0 Beginning Fund Balance 16,S5O 1%600 20,193 ^17 63T _ 3010 Property Tax Collections 26,422 26)410 26,387 26,426 26,352 26,426 0.00% , 3210 Interest Income 3 8 11 - 50 #DIV/01 - - - - 3220 CD Interest 2 1 _ #DIV/O! 3970 Charges for Services 11,333 11,554 11,785 12,078 12,078 1 12,361 283 2,34% TOTAL REVENUES 37,760 37,973 38,183 3%504 380480 38,787 283 0,73% EXPENDITURES 5110 Contractual 35,710 36,380 40,745 41,715 42,535 42,758 1,043 2,50% TOTAL EXPENDITURES 35,710 36,380 40,745 41,715 420535 42,758 11043 2.50% NET INCREASE/(DECREASE) 2,050 11593 (2,562) (31211) (4,055) (3,971) Ending Fund Balance 18,600 20,193 17,631 14,420 13,576 9,605 1%% Fiscal Year 2018/2019 Annual Budget 1 Annexation Fund - Overview The Annexation Fund is a non -operating fund that is used to account for receipts from generally non -recurring revenue sources resulting from negotiated annexation agreements. Revenues include a fee assessed on gravel mining on a per ton basis, revenues from property being annexed into the City on an acreage and lot basis, and an additional per unit fee that is distributed to other taxing bodies. Expenses in the fund are related to improvements to infrastructure or municipal facilities. _ - -00 - 179 Annexation - Fund Summary (Fund Zou, Department 00) Beginning Fund Balance 3210 Interest Income 3220 CD Interest 3715 Annexation Income 3720 OperatingFees- Annexation 3721 Operating Fees - District 415 3722 Operating Fees - District #156 3723 Operating Fees - Library 3724 Operating Fees - Fire 374S Gravel Mining/Annexation Agreement TOTALREVENUES 6970 Distributions -Schools 6980 Distributions - Library 6990 Distributions - Fire 9904 Transfer to Debt Service TOTAL EXPENDITURES NET INCREASE/(DECREASE) Ending Fund Balance 190,464 219,282 296,238 371,243 371,243 408,856 41 94 211 200 1,080 200 0,00% , 96 60 60 #DIV/0! 21094 38,668 37,620 70,000 8,475 10,000 (60,000) -85,71% - 10,000 10,000 0,00% , 4,998 68,152 - 9,4S0 4DIV/0! , 3,528 50,357 6,991 #DIV/01, 294 3,812 535 #DN/0! , - 300 1,500 85 #DIV/0! 61,587 72,834 72,114 75,000 63,058 6S,000 (10,000) -13,33% 72,638 111,956 233,826 155,200 89,674 85,200 (70,000) -45,10% 81526 118,509 9,S00 16,441 91500 0,00% 294 5,312 S00 535 S00 0,00% 1_ , _ - 85 #DIV/01 35,000 35,000 0053 0 35,000 3S,000 35,000 0,00% 43,820 35,000 1SB,821 45,000 52,061 45,000 0.00% 28,818 76,956 75,005 110,200 219,262 296,238 371,243 481,443 37,613 40,200 408,856 449,056 Fiscal Year 2018/2019 Annual Budget u 181 Motor Fuel Tax Fund - Overview The purpose of the Motor Fuel Tax (MFT) Fund is to provide dedicated revenues from taxes on gasoline and diesel sales primarily to road improvements and maintenance. Motor fuel taxes are generated by a flat rate of cents per gallon, plus a sales tax transfer. This sales tax transfer was eliminated by the State of Illinois in 2000 and replace by certain vehicle registration fees. In 2010 the municipality issued a $3.5 million bond for local roadway improvements and the majority of MFT expenditures are to service this debt. The remaining amount is utilized for the purchase of road salt, as a match to leverage other Federal and State road funds (e.g., Surface Transportation Program, Highway Safety Improvement Program) and road maintenance. ROAD WORK AHEAD Motor Fuel Tax - Fund Summary (Fund 270, Department 00) Beginning Fund Balance 3150 MFT Allotments from State 3180 Grants 3210 Interest Income 3240 IL Fund Interest 3886 Reimbursements - State 3975 Transfer from General Fund 3999 Transfer from Other Funds TOTALREVENUES EXPENDITURES 6110 Materials & Supplies 8600 Streets 9904 Transfer to Debt Service TOTAL EXPENDITURES NET INCREASE/(DECREASE) Ending Fund Balance 1,071,272 1,195,137 688,368 224,817 427 116 �1 722,703 39,844 65 690 89,184 2 36 926,255 r 1,128,615 1,128,615 I 716,473 695,044 i� 10,936 j - 600 2,280 71400 ,548 1,172 ,935 695,044 5,000 954,038 852,488 755,301 695,644 718,336 700,044 264,681 97,672 23,010 150,000 60,692 150,000 161,833 623,436 131,290 235,800 212,235 217,000 403j6S9 400j262 398,641 401,089 401,089 397,930 830,173 1,121,370 552,941 786,889 674,016 764,930 123,865 (268,882) 202,360 (91,245) 44,320 (64,886) 1,195,137 926,255 1,128,615 1,037,370 1,172,935 1,108,049 #DIV/0! (600)-100,00% S,D00 , #DIV/0! #DIV/0! #DIV/0! r #DIV/0! 4,400 0.63% (18,800) -7,97% (3,159) -0,79% (21,959) -2,79% 183 H E A R T O F T H E Fox Fiscal Year 2018/2019 Annual Budget eve o e r o a 184 Developer Donation Fund - Overview The Developer Donation Fund is to account for donations collected from developers on behalf of the primary and secondary school districts, fire protection district, library district and the municipal park system. Developer Donations are collected to ensure the provision of public facilities to serve new development by requiring each new developer to pay a calculated share of the costs of such improvements as a condition of approval. By municipal ordinance, anyone applying for a building permit for a residential unit are required to pay fees for each unit constructed. Developer Donation - Fund Summary (Fund 280, Departments 00, 41) Beginning Fund Balance 763,840 720o393 883,036 1,141,064 1,141,064 11143,475 3775 ,Developer Donations -Schools 79,214 75,417 87,440 65,000 87,611 80,000 15,000 23.08% 3780 Devleoper Donations - Parks 154,454 194,414 328,632 175,000 286,484 225,000 50,000 28,57% 3785 Developer Donations - Library 16,027 21,119 39,211 20,000 28,587 25,000 5,000 25,00% 3790 Developer Donations - Fire District 16,027 28,059 190432 20,000 25,000 51000 25,00% 3210 Interestlncome 124 246 460 1,000 21800 31000 21000 200,00% 3220 CD Interest 303 189 190 #DIV/01 3240 IL Fund Interest 14 158 776 11584 - , #DIV/0! 3845 Rental Income 36,708 43,326 42,365 42,000 39,195 42,000 0,00% 3882 Reimbursements - Miscellaneous 81000 22,828 , #DIV/01 TOTALREVENUES 310,871 362,928 541,334 323,000 446,261 400,000 77,000 23,84% EXPENDITURES 6940 Administrative Expenses 10,974 11,432 11,338 14,200 11,383 14,200 - 0.00% 6970 Distributions -Schools 79,214 75,417 87,440 65,000 87,611 80,000 15,000 23.08% 6980 Distributions - Library 16,027 21,119 39,211 200000 28,587 25,000 51000 25,00% 6990 Distributions - Fire 16,027 281059 19,432 20,000 25,000 51000 25.00% 8100 Land Acquisition - 22,082 150,000 275,554 (150,000) -100.00% 8800 Park Playground Improvements 232,076 64,258 103,803 142,500 40,715 495,000 3521500 247.37% TOTAL EXPENDITURES 3540318 200,285 283,306 411,700 443,850 639,200 227,500 55.26% NET INCREASE/(DECREASE) (43,447) 162,643 258,028 (88,700) 2,411 (239,200) EndingFund Balance 72%393 883,036 11141,064 1/0520364 11143,475 904,275 Fiscal Year 2018/2019 Annual Budget Lqdgmdmlk 187 Tax Increment Finance Fund - Overview The Tax Increment Finance (TIF) Fund accounts for revenues and expenditures related to the city's Downtown Tax Increment Finance District, established in 2002. TIF revenues are derived from the collection of property taxes each year at an increment based on the increase in the assessed valuation of properties within the area since creation of the district. Expenditures are related to the repayment of private development "extraordinary costs" per approved development agreements and for public improvements within the district which increase the value of all properties within the area. Currently, due to stagnant I values within the district, TIF revenues have remained relatively flat. Tax Increment Finance- Fund Summary (Fund 290, Department 00.) DescriptionAccount Account FY14/15 FrY15/16 FY16/17 FY17/18 FY17/18 FY18/19 Variance Variance Number o. BeginningFund Balance (462,194) (7381453) (383,659), (338,694) (3380694) (241,370) �PropertyTaxCollections 346,373 314,911 322,162 325,000 380,359 400,000- 75,000 23.08% �3010 3890 MiscellaneousIncome1,000 329,2201 1,000 10000 10000 13000 0,00% i TOTALREVENUES 349,373 644,131 323,162 326,000 381,359 401,000 75,000 23,01% EXPENDITURES 5110 Contractual Services 3,021 5,329 175 #DIV/01 6940 Administrative Expenses i 61,090 56,771 54,262 62.000 60,175 62,000 0.00% 8900 IPublicIm Improvements 318,071 20000 22,500 _ 0,00% 9901 Transfer o General Fund - _ 21500 _1.0,149 _ 2,500 - - 2,500 - 2 500 - _3,500 -- 2,500 2,500 - 0.00% 9904 -- Transfer to Debt Service 240,950 214,586 221,435 217,735 217,735 219,035 1,300 0.60% TOTAL EXPENDITURES 625,632 289,337 278,197 302,235 284,035 303,535 1,300 0,43% NET INCREASE (DECREASE / ) 276,259 ( ) 3540794 44,965 23,765 97,324 97,465 Ending Fund Balance (738,453) (383,659) (33%694) (314,929) (241,370) (143,905) Fiscal Year 2018/2019 Annual Budget 4r api�ci talPS WSW Fiscal Year 2018/2019 Annual Budget e trJ lice 191 Debt Service Fund - Overview The Debt Service Fund accounts for Lite bonded indebtedness incurred by the City 's General Fund, including bond and interest payments. 192 Debt Service - Fund Summary (Fund 3uu, Department UUJ Beginning Fund Balance 3210 Interestlncome 3220 CD Interest 3910 Bond Proceeds 3915 Bond Interest Rebate 3966 Premium on Refunding 3969 TIF Fund Transfer 3971 Transfer from Annexation Fund 3972 Transfer from Recreation Center Fund 3975 Transfer from General Fund 3978 Transfer from Water/Sewer Fund 3986 Transfer from MFT Fund TOTALREVENUES 7100 Bond Principal 7200 Bond Interest 7300 Fees - Paying Agent 7500 Bond Refunding TOTAL EXPENDITURES NET INCREASE/(DECREASE) Ending Fund Balance 390,930 344,859 329,892 , 346,976 346,976 344,447 31 30 42 I50 657 150 77 48 49 4,360,000 - 40,117 36,028 31,338 26,069 26,083 20,175 73,556 - 240,950 214,588 221,435 217,735 217,735 219,035 35,000 35,000 35,000 35,000 35,000 35,000 - 132,356 135,756 135,756 134,056 692,826 729,960 726,318 735,361 735,361 739,993 10 8,13 7 11 S, 8 6 6 108,930 110, 712 110,712 110, 7 2 9 403,659 400,262 398,641 401,089 401,089 397,930 1,520,797 5,965,338 1,654,109 11661,872 1,662,393 1,657,068 1,185,000 1, 265,000 1,375,000 1,435,000 351,838 3671381 258,884 226,722 30,030 52,924 3,141 5,000 - 4,295,000 - 1,566,868 51980,305 11637,025 1,666,722 (46,071) (14,967) 17,084 (4,850) 344,859 32%892 346,976 342,126 1,435,000 1,460,000 2Z6,722 196,919 3,200 5,000 1,664,922 1,661,919 (2,529) (41851) 344,447 339,596 0.00% r #DIV/01 (5,694) -22,61% r #DIV/0! 1,300 0,60% 0,00% (1,700) -1,25% 4,632 0,63% 17 0,02% (3,159) -0,79% (4,604) -0,29% 25,000 1.74°/a 0,00% #DIV/0! (4,803) -0.29% 193 lol"�A7 ic Recreation Center Fund - Overview 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 Fund was created to account for these donations. In addition, any future funding sources identified for the construction of the facility would be deposited in this fund and, further, the expenditure of funds for the construction of a recreation facility would be taken from this fund. In 2013 and 2014 City Council undertook a process to evaluate the feasibility of various options for recreation facilities, including the development of a family aquatics facility and/or a recreation center. Ultimately, it was determined that a recreation center should be the primary focus, construction began in 2015 and the McHenry Recreation Center was opened in February of 2016. Construction was financed through a combination of cash payments from the Recreation Center Fund and the issuance of debt. This was done to ensure that funding remained in the Recreation Center Fund to cover any start-up operating shortfalls, to serve as capital improvement funding for facility needs, or seed money for future expansions of recreation facilities. To date, the McHenry Recreation Center has exceeded expectations. With more than 2,500 members as of March 2018, revenues are sufficient to not only cover all operating costs but to also fund the $130,000 debt service. Importantly, no public tax dollars were used to construct the facility and no tax dollars are required to operate the facility. The fund now accounts for the McHenry Recreation Center operating budget and fund balance. 195 Recreation Center Fund - FYI //18 Accomplishments Recreation Center • Recreation Center has been a major success in 2017. Through the end %J February 2018 we had 2,500 active fitness members. 77% of those are residents. These "active members" are paying members who are in an annual contract, in good standing, and do not include employees, punch pass holders or other short term memberships. • From March through end of December, the Rec Center received a total of 73,716 visits from fitness members. • Group exercise classes, which are included in membership, have received 23,515 visits. This reflects about 3 1 % of our members visit history. • The arrival of the Recreation Center and the expansion of fitness programming has lead to an increase in health of those who choose to have a fitness membership. Members often comment on how the exercise is contributing to weight loss, decrease in medication and an improvement in overall strength and conditioning. We are seeing members exercise for longer periods of time, more days each week and taking classes back to back more often. And every day we welcome new faces into our facility. • The recreation center fund is on track to cover our operating expenses and is projecting to have a surplus of s60,000 in our first year of operation. • The increased membership has lead to the addition of additional fitness equipment and the constant evolvement of the group fitness class offering. • The expansion of the parking lot is also underway. The project will more than double the size of the current Or and provide and overflow connection to the skate park gravel lot. • Finally, through the Community Needs Assessment conducted by an independent research firmI a cross section of a representative population of McHenry residents were polled and expressed strong interest in the potential expansion of the Recreation Center to include indoor and outdoor aquatic facility offerings as well as a gymnasium with a walking track. Additionally there was significant support to a willingness to pay for these added amenities. 196 Recreation Center Fund - FY18119 Goals & Objectives • Create a collaborative marketing plan for programs, events and facilities; whereby increasing community reach, efficiency, return on investment. • Increase visitation at rec center thereby increasing revenue. • Research trends, explore community partnerships and evaluate existing programs in an effort to consistently develop new programs and special events. • Enhance Department's sponsorship program and apply it where applicable at the Recreation Center. • Run a successful campaign engaging with the residents of the City of McHenry to expand the Recreation Center in accordance with the Master Plan for the facility. 197 Recreation Center Fund - FY16/19 Performance Measures FT • Proposed Item Goal Description Through outreach to members To maintain a 60% fitness and continual update of Membership loss is minimized Membership Retention membership retention rate for offerings, the goal is to keep and client base remains fairly the facility. members engaged and constant. interested. In identifying a comprehensive Further develop and apply a sponsorship program, additional Fostering community Sponsorship sponsorship program to the community connections will be partnerships and adding a Recreation Center. created as well introducing revenue stream to the facility additional revenue To complete the comprehensive Run a successful referendum plan for the entire facility, campaign, engaging the pass a property tax referendum Facility Expansion adding a gymnasium, indoor community to gain the support to fund facility expansion. pool and outdoor aquatic needed to acquire the funds for center expansion I•i Recreation Center - Fund Summary (Fund 400, Departments 00 & 40 Combined) Beginning Fund Balance 31604,066 3,606,514 973,472 , 715,591 715,591 816,840 3210 Interest Income 2,448 1,118 208 500 1,237 500 - 0.00% 3220 CD Interest - 1,114 1,122 - - - - #DIV/0! r 3240 IL Fund Interest - 1 34 - - - - #DIV/0! 3632 Concessions 74 547 800 454 500 (300) -37,50% 3641 Babysitting 590 12,099 10,000 190203 160000 6,000 60.00% 3642 Recreation Center Room Rentals 2,891 12,365 12,000 12,296 12,000 - 0,00% 3643 Birthday Parties 1,200 - (1,200) -100,00% 3644 Sponsorship/Advertisement 1,300 11500 - (11500) -100.00% 3645 Annual Memberships 83,053 478,874 475,000 586,180 576,000 101,000 21,26% 3646 Short -Term Memberships - - 13,622 14,500 18,729 14,500 - 0,00% 3647 Daily Admissions - 933 5,303 13,500 5,653 6,000 (7,500) -SS.56% 3648 Punch Passes - 17,970 19,000 14,901 17,000 (2,000) -10.53% 3649 Recreation Center Misc. Fees - 1,OOS 1,648 11500 2,650 2,500 1,000 66.67% 3650 Fitness Classes _ 8,450 8,500 6,660 71000 (1,500) -17,65% 3651 Small Group Personal Training _ - 5,185 80500 671 S00 (8,000) -94,12% 3652 Personal Training 405 30,396 35,000 44,538 40,000 5,000 14,29% r 3780 Transfer from Developer Donation Fund _ #DIV/0! , 3882 Miscellaneous Reimbursement 694 #DIV/01 3910 Bond Proceeds 2,015,000 - #DIV/0! r 3965 Premium on Bonds Payable 17,938 #DIV/0! 3975 Transfer- General Fund 87,358 #DIV/0! TOTAL REVENUES 2,448 21124,122 589,123 6010500 801,224 692,500 910000 15.13% 4010 Salaries 68,880 70,602 65,011 106,696 36,094 51.12% 4050 Overtime 0 #DIV/0! 4130 Salaries - FrontDeskAttendants 260366 114,839 22,500 106,607 22,500 0 0,00% 4135 Salaries - Front Desk Lead/Coordinator _ 54S 22,750 30,661 - (22,750) -100,00% 4140 Salaries - Childcare Attendants 41419 21,559 21,500 29,145 21,500 0 0.00% 4145 Salaries - Rental Attendants 57 500 450 450 450 0 0,00% 4160 Salaries - Personal Trainers 2,157 17,715 14,650 23,996 141650 0 0,00% 4165 Salaries - Orientation/Consultants _ _ _ _ _ _ 0 #DIV/01 4170 Salaries - Group Exercise Instructors 12,441 63,316 65,780 67,298 65,780 0 0,00% 4175 Salaries - Fitness Program Instructors 108 2,303 21000 21900 21000 0 0,00% 4180 Salaries -Facility Attendants 2,787 14,004 15,450 15,048 15,450 0 0.00% 4310 Health/Vision 23,126 12,612 18,828 7,422 (5,190) -41,15% 4320 Dental Insurance 937 517 816 417 (100) -19,34% 4330 Life Insurance - 20 113 93 465.00% 4340 Insurance Premiums Vision - - 39 32 36 70 38 118.75% 4410 FICAMedicare 3,698 23,003 18,088 25,881 19,050 962 5,32% 4420 IMRF Retirement - 91754 9,023 12,873 13,337 4,314 47,81% 4510 Uniform Allowance 1,672 2,500 71214 20500 0 0,00% TOTAL SALARIES/BENEFITS 52,033 362,192 278,474 406,764 291,935 13,461 4,83% 199 5110 Contractual 1,023 9,040 13,900 16,267 14,900 1,000 7,19% 5200 Contract Custodial 4,839 24,960 24,960 21,840 24,960 0 0.00% 5210 Marketing & Advertising 10,497 50628 13,000 12,842 13,000 0 0,00% 5215 Retention/Promotion 71544 5,340 5,500 2,510 4,500 (11000) -18,18% 5321 Cable/TV 648 2,778 41000 31265 31000 (11000) -25,00% , 5430 Training - - - 567 0 #DIV/01 5375 Repair&Maintenance - Equipment 43 1,528 4,000 31036 5,000 10000 25,00% 5510 Utilities - 201051 21,000 20,589 21,000 0 0,00% 5600 Credit Card/Bank Fees 1,134 11,093 6,400 10,309 100000 3,600 56.25% TOTAL CONTRACTUAL SERVICES 25,728 800418 92,760 91,225 96,360 31600 3,88% 6110 Materials and Supplies 81994 7,782 91500 12,414 10,000 500 5.26% 6111 Custodial Supplies - 10,417 15,000 41747 11,000 (41000) -26,67% 6120 Supplies - Childcare 11649 1,475 11500 1,824 1,500 0 0,00% 6130 Supplies - Safety - 2,615 1,702 10000 790 1,000 0 0,00% 6141 Office Furniture/Equipment - 11353 - 1,000 2,355 1,000 0 0,00% 6142 Fitness Equipment - 4,570 2,019 3,000 51906 3,000 0 0,00% 6210 Office & Technology Supplies - - 31452 50000 4,742 5,000 0 0,00% TOTAL SUPPLIES - 190181 26,847 36,000 32,778 32,500 [3,500) -9,72% 0 7400 Bond Issuance Costs 22,252 - - - 0 #DIV/01 8200 Buildings 4,265,086 229,426 400,000 33,452 545,000 145,000 36,25% 8300 Equipment 305,507 15,765 16,000 10,000 (60000) -37,50% , 9901 General Fund Transfer 67,377 - - 0 #DIV/01 9904 Transfer to Debt Service Fund 132,356 1351756 135,756 134,056 (1,700) -1.25% 9922 Purchase of Service - IT - 24,736 (11,700) -8,62% TOTAL OTHER 4,660,222 3770S47 551,756 16%208 713,792 162,036 29,37% TOTAL EXPENDITURES 4,757,164 847,004 958,990 699,975 1,134,587 17SJ597 18,31% NET INCREASE/(DECREASE) 2,44E (2,633,042) (257,881) (357,490) 101,249 (442,087) Ending Fund Balance 30606,514 973,472 715,591 3580101 816,840 374,753 200 +�Lm c�a I • • Special Service Area 44 Fund - Overview The Special Service Area (SSA) #4 Fund is to account for revenues and expenses associated with annual debt service for a sewer project that was completed in 2004 in the Lakewood Road Subdivision. SSA's allow a city to levy a property tax on property within a defined area to fund specific improvements. Through an SSA payments are spread equally over the identified number of taxable lots rather than through assessment (Special Assessment). The total amount of the SSA is $327,200 to expire in 2024. 202 Lakewood SSA#4 = Fund Su 424, Department 00) Beginning Fund Balance 23 26 28 31 31 46 3010 REVENUES Property Tax Collections 16,847 16,847 16,847 16,847 -- 161847 -- 16,847 0,00% , 3210 Interest Income 1 1 2 15 #DN/0! -_ - 3220 CD Interest 2 1 1 #DIV/0! TOTAL REVENUES 16,850 16,849 16,850 16,847 16,862 16,847 0000% EXPENDITURES 9936 Transfer to Utility Improvement Fund 16,847li 16,847 16,8471 -' 16,847 16,847 16,847 0,00% TOTAL EXPENDITURES 16,847 i 160847 16,847 16,847 16,847 16,847 0,00% NET INCREASE/(DECREASE) 3 2 3 15 I Ending Fund Balance 26 28 31 31 46 46 203 4 L Capital Improvements Fund - Overview The purpose of the Capital Improvements Fund is to account for funds identified for the maintenance and construction of public infrastructure projects other than water and sewer utilities. This includes roads and public facility maintenance, improvements and/or construction. No operating costs are included in the Capital Improvements Fund. Capital Improvements Fund revenues are derived from transfers from other funds, primarily the General Fund Assigned for Capital. Projects included in the Capital Improvements Fund are identified through the capital improvements planning process which culminates in the development of an annual five-year Capital Improvement Plan (CIP). The development of the CIP is an exercise that is undertaken, primarily, to ensure the City Administration and City Council are able to identify the capital improvement and capital equipment needs of the municipality. The document contains both Capital Improvement and Capital Equipment projects, each with a cost of more than $10,000. The FY18/19 - FY22/23 CIP includes more than $60 million in projects and, due to the size and complexity of projects and the limited available funding, it is not reasonable to believe that more than a handful of projects can be completed in any given budget year. Due to limited funds in FY18/19, the only projects identified for funding in the FY18/19 Budget are related roadway projects that are being funded primarily through non -municipal sources. Total project costs for FY18/19 (All Funds) are $2,754,502 however, the amounts shown below are for the City's portion of funding. FY18 f 19 General Fund Capital Improvements 1. Local Street Program including Pavement Maintenance $ 50,000 2. Pearl Street/Lincoln Road Improvements $ 6291000 3. Ringwood Road Improvements $ 53,000 L Curran Road S-Curve Safety Improvements $ 3,500 S. Bull Valley Bike Path Extension - Phase I Engineering $ 37,500 Total $ 773,000 205 Improvements - Fund Summary (Fund 440, Department 00) Beginning Fund Balance 1,286,158 1,233 1,541,592 1,5411592 , 1/771/612 11771,612 1,0941817 _M111 3210 Interest Income 430 11011 1,000 41010 11000 81590 11000 0.00% 3220 CD Interest 211 364 - 297 - - #DIV/0! 3882 Reimbursements -Miscellaneous 171,741 270,000 975,110 #DIV/0! _� , 3886 Reimbursements - State 559,126 (171,741) - 78,378 - - #DIV/0! 3975 Transfer from General Fund 559,423 1,254,820 21381,459 41795,570 11191,209 - (11191,209)-100,00% TOTAL REVENUES 11119,190 11256,195 2,652,459 4,878,255 11192,209 983,700 11000 (1,191,209)-99,92% 5110 .Contractual Services - 8100 Land Acquisitions 8200 Buildings 2,790 8600 Streets 14121,532 8800 Park Playground Improvements 520 8900 Capital - Other Improvements 46,964 9901 Transfer -Capital Equipment Fund - TOTAL EXPENDITURES 1,171,806 NET INCREASE/(DECREASE) [52,616) Ending Fund Balance 1,233,542 517 1411364 589,948 3,863 212,453 948,145 1,25Q000 2,527,500 197,500 235,480 4,210,480 2,012,733 2,498,SS2 99,625 37,325 4,648,235 308,050 (1,558,021) 230,020 1,541,592 (16,429) 1,771,612 297,209 300,524 925,000 1,099,154 100,000 32,075 1,322,209 (1301000) 1,641,612 228,742 1,660,495 735,500 37,500 773,000 (676,795) (772,000) 1,094,817 322,817 - , #DIV/0! (297,209) -100,00% (189,500) -20,49% (100,000) -100,00% 37,500 , #DIV/0! - , #DIV/0! (549,209) -41,54% 206 �,. 1 �y �,.i �' a...� �> � �-. _ r.® �:�, •�.^ - - Capital Equipment Fund - Overview The Capital Equipment Fund is utilized to track annual expenditures of equipment replacement (e.g., vehicles, computer equipment) as identified in the five-year Capital Improvement Plan. No operating costs are included in the Capital Equipment Fund. Capital Equipment Fund revenues are derived from transfers from other funds, primarily the General Fund Assigned for Capital. Like the Capital Improvements Fund, Capital Equipment Fund � `�' """""''�'``'� ' projects are identified through the capital improvements planning process which culminates in the development of an annual five-year Capital Improvement Plan (CIP). The development of the CIP is an exercise that is undertaken, primarily, to ensure the City Administration and City Council are able to identify the capital improvement and capital equipment needs of the municipality. The document contains both Capital Improvement and Capital Equipment projects, each with a cost of more than $10,000. The FY18/19 - FY22/23 CIP includes more than $60 million in project and, due to the size and complexity of projects and the limited available funding, it is not reasonable to believe that more than a handful of projects can be completed in any given budget year. Due to budgetary restrictions, no projects have been identified for funding in FY18/19 in the Capital Equipment Fund. - Fund Summary (Fund 450, Department 00) Beginning Fund Balance 3210 Interest Income 3220 CD Interest 3975 Transfer from General Fund TOTAL REVENUES 8300 Capital -Equipment — - _ - - _ - 8400 Capital -Vehicles TOTAL EXPENDITURES NET INCREASE/[DECREASE) Ending Fund Balance 735,831 490,803 475,276 , 20,503 20,503 82 'I --- -- 171 52 - - _— _ - 11z 7o 70 - - 23,152 I 243,225 238,370 228,743 23,346 243,466 122 238,370 228,743 -- I — _ --- - )---- _ - 237,689 66,240 - 70,000 � 55,524 3Q485 192,753 454,895 i 168,370 193,722 266,374 258,993 454,895 236,370 249,246 (245,028J (15,527) (454,773) - (20,503) 490,803 475,276 20,503 20,503 - - 0.00% - - 0.00% 209 Pill A Imp to (No MWP MOP � Itt if _Al CITY OF =� •�iJi1iJ�V• Pill i.� flu rwilow ;��•. ..:. •,r � � �.� �. 7 - �:+..�'F : Water & Sewer Fund - Overview The Water and Sewer Fund is an enterprise fund - that is, a business - type fund utilized to account for operations and activities that are financed and operated in a manner similar to a private business enterprise, and where the cost of providing goods and services to the general public on a continuing basis is expected to be recovered primarily through user charges, including operating costs and capital improvement costs related to the maintenance of the water and sewer utility systems. These fund the operations of the Water, Wastewater and Utility Divisions in the Department of Public Works. The operating functions of these three divisions are to provide a safe and reliable supply of high quality potable water and to protect public health and the environment by treating sewage to meet stringent environmental standards prior to discharge. Of note, the Utility Division was established in FY15/16 combining existing Water and Wastewater Division Maintenance Workers to specifically address utility system maintenance needs more routinely. Prior to this, utility maintenance projects were addressed by either the Water or Wastewater Division and often required coordination with the other division to ensure adequate manpower. The creation of the Utility Division established a more efficient methodology to handle utility maintenance projects. The expenses for the Utility Division are split between the Water and Wastewater Divisions as follows - approximately 63.7% of operating expenses are paid from the Water Division and the remaining 36.3% are paid from the Wastewater Division. Capital expenses are charged to the division that benefits from the maintenance project. In general, water and sewer revenues are derived directly from water and sewer sales, base charges, connection fees, and service penalties and should be sufficient to fund Lite operating and capital costs for the Water, Wastewater and Utility Divisions. Importantly, water and sewer revenues are driven by consumption and, as such, with a growing awareness of water conservancy (which the City supports) and wetter than average summer months, consumption has been relatively flat over the last two years. Prior to FY15/16, water and sewer rates were adjusted annually based primarily on the Consumer Price Index (CPI). Unfortunately, this CPI adjustment did not correlate to the actual cost of operations for McHenry's Water and Wastewater Divisions and did not account for the specific capital infrastructure needs of the municipality. This resulted in a shortfall in water and sewer revenues and an inability to fund water and sewer capital projects of the existing systems. To address this the City commissioned a water and sewer rate study that was completed in FY13/14. The results of this analysis identified the need to adjust water and sewer rates at that time and to annually review and adjust water and sewer rates based on operational costs and implement water and sewer base fees to fund utility system capital improvements. The narrative that follows provides a snapshot of the status of the Water and Sewer Fund and identifies operational and capital expenses. This is followed by more detailed summaries of the Water, Wastewater and Utility Divisions of the Department of Works. ►f�if�i FY18/19 Water Division FY18/19 Water Division operating expenditures are proposed at $2,271,953, an increase of $111,864 from FY17/18. This increase is due to the funding of the Utility Division transfer (again, the Utility Division is funded through contributions by water and wastewater). Budgeted Operating Revenues for FY18/19 are short of budgeted operating expenditures by $86,381. Rates will be addressed after the budget is approved and discussed with Council before they need to be adjusted in August. It is estimated that the existing $2 capital base charge will generate $125,000 in FY18/19 for capital projects. In FY18/19 this amount, along with Water and Sewer Fund Balance, will be used to fund the following water system capital projects identified in the Water and Sewer Fund CIP - $225,000 for water meter replacement; $30,000 for Well Inspection/Maintenance and Repair; and, $45,000 for the Water Division Motor Pool. No increase or decrease in the base rate is recommended at this time. FY18/19 Wastewater Division FY18/19 Wastewater Division operating expenditures are projected at $3,215,573, a decrease of $17,542 from FY17/18. This decrease is due partially to lower utility costs but the funding of the Utility Division transfer was increased to cover proposed expenses (again, the Utility Division is funded through contributions by water and wastewater). Proposed operating revenues for FY18/19 are expected to exceed proposed operating expenses by $34,145. Rates will be addressed after the budget is approved and discussed with Council before they need to be adjusted in August. It is estimated that the existing $4 capital base charge will generate $270,000 in FY18/19 for capital projects. This amount, along with existing Water and Sewer Fund Balance, will be used to fund the following water system capital projects identified in the Water and Sewer Fund CIP - $40,000 for Willow Lift Station Pump Replacement; and, $65,000 for Wastewater Division Motor Pool. No change in the base rate is being recommended at this time. FY18/19 Utility Division FY18/19 Utility Division operating expenditures are projected at $1,069,894, an increase of $12,390 from FY17/18. As identified in the Water and Wastewater discussions above, the Utility Division is funded through transfers from the Water and Wastewater Division revenues. If in one year the transfers from the Water and Wastewater Division exceed expenses within the department, adjustments are made in following fiscal years. This will result in lower operating budgets for the Water and Wastewater Divisions. 213 Public Works Water Division Public Works Water Division Mission The primary focus and overlying responsibility of the Water Division is to provide a safe and reliable supply of potable water. This is accomplished by producing, treating water and conducting over 500 required water samples, therefore meeting or exceeding all federal and state health standards. Of major importance to the Water Division employees is providing the consumer with the highest level of customer service possible. We believe this inspires public trust within the community. In summary, Water Division employees undertake the following tasks: • Provide safe potable water that meets or exceeds State and Federal Drinking Water Regulations. • Water Production -The Division maintains four iron removal filtration treatment plants served by eight active wells. The City has two emergency or backup wells that have no iron removal filtration but do have temporary chemical feed buildings. • Water Storage consists of four elevated water storage tanks with a combined storage capacity of 2,750,000 gallons. • One booster pumping station. • Provide meter readings to the Finance Department for utility billing for City water and sewer services. The Division maintains an ongoing meter replacement program of approximately 8,000 water meters. • Respond to Joint Utili Locate Information for Excavators (J.U.L.I.E.) requests. • Respond to consumer inquiries within 24 hours regarding water quality or high consumption questions or general concerns. • The Water Division plays an important part in the maintenance and future development of City's Global Information System. I_Ti_[l Public Works Water Division - Organizational Chart 215 Public Works Water Division - FY17/18 Accomplishments • Met or exceeded all State and Federal Drinking water regulations. • The Water Division employees provided a high level of customer service by responding to customer requests within 24 hours and making available information consumer's need to be informed about their drinking water source and water treatment technologies. We believe this inspires public trust within the community. • In 2017, the Water Division produced 783 million gallons of potable water and provided meter readings for nearly 8,000 water and sewer accounts for billing purposes. • Received 215t consecutive annual fluoride award from the Illinois Department of Public Health. • Changed out over 800 water meters • Responded to over 5,000 J.U.L.I.E. locate requests. • Help to develop a lead service inventory data base, utilized within the City's GIS system. • The Water Division had no reported personnel injuries or accidents in the past year. 216 Public Works Water Division - FY18/19 Goals & Objectives • Continue to meet or exceed all Federal and State drinking water regulations. • Provide a high level of customer service I to customer requests wn 24 hours and make available information consumer's need to be informed about their drinking water source and water treatment technologies. • Continue to maintain water treatment facilities while remaining in budget. • Expand lead service line inventory data base. • Change out 1000 water meters • Continue to be injury and accident free. 217 Public Works Water Division — FYlb/ 19 Performance Measures Performance Performance PerformanceItem .. ... -. Achieve 100% compliance Was 100% compliance 100% compliance is expected with no IEPA Compliance in all categories achieve with no violations violations Respond to Customer Respond to all inquiries Percentage responded to 0 100/o Inquiries and Complaints within 24 hours of within 24 hours receiving Complete all Capital Were projects completed Capital Projects Projects on time within on time and within budget o 100/o budget Were 1,000 meters Meter Replacement Replace 1000 meters replaced in the previous Yes year Safety -Personal Zero Injuries/ Accidents How many reported Zero Injury/Vehicle Accidents injuries/accidents �F:3 Water and Sewer Fund Summary (Fund 510, Department 31 Water) 3200 Interestlncome 3220 CD Interest 3240 IL Fund Interest 3610 Sales 3615 Base Charge - Capital 3620 Penalties 3630 Hookup/Connection Fees 3640 Water Meter Sales 3836 Gain/Loss on Sale 3845 Rental Income 3882 MiscellaneousReimbursement 3890 Miscellaneous Income 3920 Proceeds from Fixed Asset Sale 3991 Transfer from Marina Fund TOTALREVENUES TOTAL OPERATING REVENUES 4010 Salaries - Regular 4050 Overtime -Regular 4110 Salaries - Seasonal 4310 Health Insurance 4320 Dental Insurance 4330 Life Insurance 4340 Vision Insurance 4410 FICA 4420 IMRF 4510 Uniforms TOTAL SALARIES/BENEFITS 1,054 453 969 131 951 3,031 2,047,402 2,066,124 2,199,343 2,107,572 - 51,006 121,839 125,000 52,141 60,359 75,240 55,000 12,500 18,610 29,250 15,000 13,225 20,000 27,000 15,000 4,261 - - - - 62,604 - 987 2,142 775 5,385 1,896 513,866 5,000 5,488 2,138J222 122,897 84,764 14,250 12,525 3,000 2,107,S72 125,000 70,000 15,000 15,000 2,071 5,000 2,137,066 2,221,541 3,033,917 2,324,072 2,380,217 2,340,572 2,106,113 2,129,783 2,792,449 2,169,072 2p230j545 2,185,572 652,819 314,433 391,895 407,429 403,674 433,380 36,525 Z2,119 22,859 24,000 23,314 24,000 12,710 10,347 8,800 11,500 110195 11,500 179,074 102,182 1091295 120,230 119,161 1010180 2,322 1,304 933 978 912 953 376 195 205 220 210 226 49 47 85 95 87 95 52,352 27,581 31,902 33,684 34,698 35,869 97,537 72,631 53,605 55,137 56,249 57,172 2,649 1,342 1,610 2,025 1,578 2,025 1,036,413 552,181 621,189 655,498 651,078 666,400 5110 Contractual 77,059 76,228 106,047 130,000 98,521 130,000 5310 Postage & Meter 31523 4)289 30276 41500 21789 31000 5320 Telephone 5,167 51369 5,277 61000 2,119 - 5370 Repair & Maintenance 20,533 21370 5,258 4,000 4,780 5,000 5410 Dues 562 396 260 Soo 730 800 5430 Training 21726 11326 1,721 2,500 1,715 2,500 5440 Tuition Reimbursement - - 9 - - - 5510 Utilities 167,915 1430581 191,442 140,000 111,374 125,000 TOTAL CONTRACTUAL SERVICES 277,485 233,559 315,290 287,500 222,028 266,300 1,500 15,000 16,500 100.00% #DN/0! #DN/0! 0.00% 0.00% 27.27% 0.00% 0.00% #DIV/0I #DIV/0! #DN/0I 0.00% I #DN/0 #DN/0! 25,951 6.37% 0,00% (19,050) -15.84% (25) -2,56% 6 2,73% 0,00% 1,985 5,86% 2,035 3,69% 0,00% 10,902 1,66% (6,000) -100,00% 1,000 25,00% 300 60,00% 0,00% #DIV/0! (15,000) -10,71% (21,200) -7,37% 219 6110 Materials and Supplies 2150440 148,612 134,093 145,000 141,662 1451000 6210 Office Supplies 955 78 421 6S0 153 650 6250 Gasoline & Oil 28,899 71483 6,451 7,000 61947 7,000 6270 Small Equipment & Tools 1,966 795 932 11250 11591 1,250 6940 Administrative Expenses 20243 2,104 2,522 2,102 - TOTAL SUPPLIES 249,503 159,072 144,419 153,900 1521455 153,900 7091 Debt Service - Accrued Interest 7100 Principal Payment 7200 Bond Interest 7300 Fees - Paying Agent 8300 Capital - Equipment 8500 Capital - Utility System 9000 Amortization - Bond Issue Costs 9100 Amortization - Bond Discount 9510 Depreciation Expense 9904 Transfer to Debt Service 9920 Purchase of Service - MCMRMA 9921 Purchase of Service - Billing 9922 Purchase of Service - IT 9923 Purchase of Service - Audit 9930 Water/Sewer Transfer 9930 Water/Sewer Transfer -Utility Capital TOTALOTHER TOTAL OPERATING TOTAL EXPENDITURES (713) (713) (713) 50,10E 48,208 46,308 311 311 311 2,358 5,613 2,883 (512) 470,632 951943 73,174 218,737 12,095 3,954 (512) 495,277 1021801 73,174 218,737 15,207 4,027 664,822 926,087 1,626,952 2,018,856 2,076,487 2,48%488 2,571,764 (512) 501,023 96,647 67,455 222,018 16,142 4,109 902,719 95,000 100,000 44,408 44A08 42508 - 311 350 500,000 98,228 64,895 225,348 16,019 4,227 515,066 1,856,390 1,613,191 2,438,265 2,160,089 2,939,288 2,710,089 502,000 98,228 64,895 225,348 16,019 4,227 515,066 505,000 98,244 64,895 230,982 18,453 4,331 627,329 1,520,502 1,692,092 1,9941063 2,273,692 Z,546p063 2,778,692 0.00% 0,00% 0,00% 0,00% r #DIV/0! 0,00% 5,000 5,26% (1,900) -4.28% r 350 #DIV/01 r - #DIV/0! r #DIV/0! r #DIV/0! r #DIV/0! 5,000 1,00% 16 0,02% 0,00% 5,634 2,50% 2,434 15,19% 104 2,46% 112,263 21,80% (50,000) -100,00% 78,901 4,89% 113,603 5.26% 68,603 2.53% 220 Public Works Wastewater Division Public Works Wastewater Division Mission 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. The functions of the wastewater division are to operate and maintain two wastewater treatment plants and nineteen lift stations. The goal of the Wastewater Division is to efficiently maintain these facilities and to -- -- produce plant effluents that either meet or exceed State and 1 Federal standards. The division is also responsible for the removal and disposal of all the by-products generated by the treatment process. This is accomplished by daily testing and monitoring of the treatment process and by operating the sludge de -watering machines. In summary, Wastewater Division employees undertake the following tasks: • Provide for the operation and maintenance of two wastewater treatment plants and the care and upkeep of nineteen lift stations • Conduct daily testing to ensure the treatment processes are working correctly and make any necessary changes to operations • 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. 221 Public Works Wastewater Division - Organizational Chart 222 Public Works Wastewater Division - FY17/18 Accomplishments • In 2017 the Wastewater Division achieved 100% compliance with the NPDES permits. • The Wastewater Division purchased its second and final hook -lift truck and roll -off dumpsters. This was also included in FY 2017/18 CIP. • Oversaw construction of the Wastewater Treatment Plant consolidation/expansion project Final competition was achieved in January 2018. • Highlights of the consolidation/expansion project are: o Microscreens at the headworks of the South Wastewater Treatment Plant. These screens are relatively new in the wastewater treatment industry. This new type of screen is very efficient at removing debris, sand and grit from the wastewater before it is cleaned and treated. o Anew wastewater treatment was constructed on Charles Miller Road to replace the old treatment plant on Waukegan Road. It is a stat of the art treatment plant and only the second one of its kind in Northern Illinois. The treatment plant went into service in November 2017 and will ensure that The City of McHenry will continue to meet or exceed our discharge permit requirements. o A dryer was installed to dry the sludge cake, which is a by-product of the treatment process. Once this cake is dried it will reduce the cost of disposal significantly and provide the City with a safe and effective fertilizer that can be sold or given away. Further reducing the disposal cost. 223 Public Works Wastewater Division - FY18/19 Goals & Objectives ® Operate new treatment plant and related equipment efficiently and productively. Continue to meet or exceed the NPDES permit requirements and regulations as set forth by the Illinois Environmental Protection Agency. Operate treatment plants and lift stations in a manner that minimizes the potential for a sanitary sewer overflow. �> Look for ways to continue to achieve the high level of service and minimize operating costs. 224 Public Works Wastewater Div- FY18/19 Performance Measures Performance Performance rformance PeItem FY18/19 Goal Measure Compliance with all NPDES 100% Compliance with all Annual inspection/evaluation Satisfactory annual Permits issued by the IEPA permits at all times and monthly reports inspection/report and no violations on monthly reports Sludge Production Reduce the quantity of sludge Track sludge A lower expense for sludge produced and hauled production/hauled and disposal calculate disposal cost Energy consumption Decrease the amount of Start tracking and analyze Reduced utility bills energy used utilitybills Lift Stations Reduction in number of off Track the number of call -outs Less call -outs equal lower Jim hours call -outs to each lift station overtime costs Operation of new treatment Optimize the performance of Gather laboratory data on the See improvement in plant and related equipment the new treatment plant plant performance. Establish a laboratory analysis baseline for the lab test results 225 Water and Sewer Fund Summary (Fund 510, Department 32 Sewer) 3200 Interest Income 3220 CD Interest 3240 IL Fund Interest 3610 Sales 3615 Base Charge - Capital 3620 Penalties 3630 Hookup/Connection Fees 3660 Debt Service Fee 3665 Debt Service - IEPALoan 3890 Miscellaneous Income 3915 Bond Interest Rebate TOTALREVENUES TOTAL OPERATING REVENUES 1,054 453 969 131 951 3,031 5,488 2,429,160 2,415,863 2,483,140 2,718,993 2,659,300 4706,376 106,501 265,364 270,000 267,608 260,000 SS,444 58,724 62,270 58,000 68,465 65,000 12,000 16,500 52,213 15,000 13,500 15,000 401,343 397,997 407,561 401,000 410,771 401,000 298,173 1,01%732 1,600,000 1,443,809 41200,000 26,247 16,134 10,653 5,000 3,883 15,000 64,249 64,953 63,005 61,647 61,647 5%342 2,989,628 3,376,249 41367,938 5,131,140 41934,471 7,724,718 2,977,628 2,955,075 3,030,629 3,246,140 3120%554 3,249,718 4010 Salaries - Regular 641,970 511,445 5670761 688,057 498,602 629,663 4050 Overtime - Regular 41,282 2%613 400524 40,000 42,787 40,000 4110 Salaries - Seasonal 2,457 5,127 30134 5,000 4,610 5,000 4310 Health Insurance 174,434 1290058 158,386 181,161 157,099 188,701 4320 Dental Insurance 792 810 820 858 499 834 4330 Life Insurance 396 307 330 280 329 369 4340 Vision Insurance 133 133 111 70 65 140 4410 FICA 52,155 41,733 46,687 56,079 44,319 511612 4420 IMRF 90,575 118,653 83,134 93,046 72,382 83,708 4510 Uniforms 41665 3,895 3,514 3,000 2,988 S,S00 TOTAL SALARIES/BENEFITS 10008,859 840,774 9040401 10067,551 823,680 1,005,527 5110 Contractual 5310 Postage & Meter 5320 Telephone 5370 Repair & Maintenance 5375 Repair & Maintenance - Equipment 5380 Repair & Maintenance - Utility System 5410 Dues 5430 Training 5440 Tuition Reimbursement 5450 Publications SS10 Utilities 5580 Sludge Disposal TOTAL CONTRACTUAL SERVICES 173,150 189,677 167,109 190,000 156,625 181,000 369 342 289 300' 363 300 3,384 3,917 4,284 3,000 272 20,362 15,753 19,200 14,000 14A00 20,000 57,710 71J59 51,427 70,000 10%799 70,000 56,137 47,931 60,340 91,000 74,017 91,000 594 514 260 400 508 1,500 1,149 53 465 750 700 11000 S55 - 22S 1,000 23 11000 330o994 274,378 375,181 290,000 26S,8S4 250,000 231,132 234,567 263,847 195,000 210,162 195,000 875,536 838,291 942,627 855,450 832,723 810,800 1,500 100.00% #DIV/0! , - #DIV/01 (12,617) -0.46% (10,000) -3,70% 7,000 12,07% - 0,00% - 0.00% 2,600,000 162,50% 10,000 200,00% (2,305) -3.74% 2,593,578 50.55% 3,578 (58,394) 7,540 (24) 89 70 (4,467) (9,338) 2,500 (62,024) 0.11% 0.00% 0,00 to 4.16% 2.80 0 31.79% 100.00% 7.97% 10.04% 83.33% 5.8110 6,000 42,86% 0,00% 0,00% 1,100 275,00% 250 33.33% 0,00% #DIV/0! (40,000) -13,79% 0,00% (44,650) -5,22% 226 6110 Materials and Supplies 227,956 212,676 209,798 214,000 157,095 220,000 6,000 2.60°/❑ 6210 Office Supplies 1,647 820 S4S 750 447 750 0,00% 6250 Gasoline & Oil 340462 20,028 17,378 1S,000 19,282 20,000 51000 33,33% TOTAL SUPPLIES 264,065 233,524 227,721 229,750 176,824 240,750 11,000 4,79% 6940 ',Administrative Expenses 3,360 21676 31640 3,600 , #DIV/O! 7091 Debt Service- Accrued Interest (11674) (21067) (2)484) (21567) #DIV/O! 7100 Principal Payment - - - 255,000 - 265,000 100000 3.92% 7200 Bond Interest 205o790 201,32S 195,813 189,188 189,188 181,920 (71268) -3,84% 7300 Fees -Paying Agent 1,053 1,053 11053 1,100 1,OS3 1,100 - 0,00% 8300 Capital - Equipment 2,3S8 S,613 - , #DIV/O! 8500 Capital -Utility System 10550 - , #DIV/O! 9000 Amortization - Bond Issue Costs _ - #DIV/O! 9100 Amortization - Bond Discount 31941 3,941 31941 - , #DIV/01 9S10 Depreciation Expense 1,151,880 11164,3S2 1,193,568 1,2001000 1,195,678 11200,000 - 0,00% 9904 Transfer to Debt Service 12,194 13,06S 12,283 12,484 12,484 12,486 2 0,02% 9920 Purchase of Service-MCMRMA 87,976 87,976 85,145 86,695 86,695 86,695 0,00% 9921 Purchase of Service - Billing 233,188 233,188 236,686 240,236 240,236 246,242 6,006 2,50% 9922 Purchase of Service - IT 8,772 11,7S0 12,231 12,168 12,168 14,641 21473 20,32% 9923 Purchase of Service - Audit 3,954 4,027 41108 4,227 41227 4,331 104 2,46% 9930 Water/SewerTransfer 381,163 S68,217 279,266 279,266 353,609 74,343 26,62% 9930 Water/SewerTransfer - Utility Capital _ - 2700000 270j000 - (270,000) -100,00% 9936 Transfer to Utility Improvement Fund 11720,340 - , #DIV/01 TOTAL OTHER 11714,342 2,108,062 4,034,541 2,5501364 21292,028 21366,024 (184,340) -7,23% TOTAL OPERATING EXPENDITURES 2,710,922 2,856,299 3,195,382 3,233,115 2,659,577 3,223,101 (10,014) -0.31% TOTAL EXPENDITURES 3,862,802 4,020,651 6,109,290 4,703,115 4,125,255 4,423,101 (280,014) -5.95% 227 Public Works Utility Division Public Works Utility Division Mission The City of McHenry Utility Division is committed to providing the highest level of customer service to its residents and consumers. Maintaining the water distribution and sanitary sewer collection systems to peak performance will continue to ensure reliable services to City of McHenry's residents, and businesses. This will enhance public safety within the community. The Utility Division maintains and repairs all water mains, valves, fire hydrants, and "buffalo" boxes which are all part A the water distribution system. Another component of the Utility Division is to maintain, clean, and televise the sanitary sewer collection system. In summary, Utility Division employees undertake the following tasks: • Maintain sanitary sewer collection system. • Maintain water distribution system. 228 Utility Superintendent Steve Wirch Operator) Sean Johnson Maintenance Worker Clint Greve Maintenance Worker Pat Maher Maintenance Worker Ryan Cheney Operator) Steve Ramirez Maintenance Worker Todd Sasak Maintenance Worker Mike Lange Z. .�., y' :� i jL CITY OF McHENRY Induslrlol drive Public Works Utility Division - FY17/18 Accomplishments • Replaced 8 "Eddy" fire hydrants due to age and non -availability of repair parts. • Flushed all of the City's fire hydrants for spring and fall hydrant flushing program. • Cleaned and televised over a 209,000' (39 miles) of sanitary main including the subdivisions of Rubloff Development, Shoppes at the Fox, Mill Creek Subdivision, Evergreen Circle, Brittney Park, and Timber Trails and others including routine maintenance lines • Repaired 9 water main breaks. • Repaired 15 water services, replaced 15 lead services from the water main to B-Box. • Responded to 17 possible sewer backups. • Replaced 25 open hole sanitary frames and covers with closed "sealed" frames and covers. • On March 24, 2017 the City of McHenry participated in ajoint-bid with the Village of Huntley and the Village of Cary for sanitary sewer main lining and sanitary manhole lining work. In 2017 the manhole portion of the scope of work was completed and several brick/block structures were rehabilitated at locations on Main Street, Elm Street, Waukegan Road, Crystal Lake Road, Richmond Road, Broad Street, Pearl Street, and Washington Street. Sewer main lining locations are on sections of High Street, Oakwood Drive, Front Street, Shepard Hill Lane, Grand Avenue, Pearls Street, Charlotte Avenue, Victoria Avenue, Virginia Avenue, Cresent Avenue, Lillian Street, Clover Avenue and Timothy Lane. The work is being completed by the prime contractor Visu-Sewer Inc. The remaining balance of sanitary sewer main lining will be completed in the winter/spring of 2018 prior to the end of FY17/18. All engineering, construction inspection, and project management has been completed by Public Works and Utility Division Staff. 230� Public Works Utility Division - FY18/19 Goals & Objectives ■ Continue to keep the sanitary collection system well maintained that includes cleaning and televising the entire collection system. ■ Reduce inflow and infiltration in collection system through the Capital Improvement Program that includes the sanitary sewer main and sewer manhole rehabilitation programs. Change old style manhole covers to "new" sealed covers. ■ Continue to keep the water distribution system well maintained with the water valve maintenance program and fire hydrant spring and fall flushing programs. Also through the water main replacement program through the Capital Improvement Program. ■ Replace the 10 fire hydrants due to age and non -availability of repair parts ■ Continue hydrant painting program 231 Public Works Utility Division - FY18/19 Performance Measures Performance Performance Performance Goal Proposed , Fire hydrant Replace outdated fire Number of hydrants Replace 10 fire hydrants replacement hydrants replaced Clean & Televise 100,000 Lineal Clean & televise 100,000 lineal sanitary sewer ft/year Lineal ft/year ft/year collection system Complete spring and Flush all hydrants Completion of spring and fall Hydrant Flushing fall hydrant flushing spring and fall flushing programs programs Grout Reduce manholes/install Number of manholes 10 manholes repaired inflow/infiltration sealed frames and repaired covers Hydrant painting Sandblast, prime and Number of hydrants 20% of hydrants in distribution program paint fire hydrants that were painted system 232 Water and Sewer Fund Summary (Fund 510, Department 35 Utility) gum j - - - 3890 Miscellaneous Income 812 3978 Transfer from Water/Sewer Fund 1,045,985 1,470,936 794,332 1 794,332 980o938 TOTALREVENUES 1,0451985 11470o936 794,332 794,332 980,938 4010 Salaries -Regular 4050 Overtime - Regular 4110 Salaries - Seasonal 4310 Health Insurance 4320 Dental Insurance 4330 Life insurance 4340 Vision Insurance 4410 FICA 4420 IMRF � 4510 Uniforms TOTAL SALARIES/BENEFITS 16,645 541,157 505,757 551 607 � - 587,414 566,974 4,015 19,6S4 24,260 25,000 18,410 25,000 10,884 10,000 10,820 12, 000 - 133,840 135,791 145,384 168,486 138,643 986 978 1,033 1,286 1,005 - 274 290 552 305 328 - 16 9 13 'i_ 6S 13 1,482 40,538 40,405 44,875 49,576 46,204 21558 106,233 66,605 73,690 81,301 73,997 1,904 3,759 3,300 1,546 3,300 24,700 844,602 788,738 855,454 919,209 867,464 #DIV/0! 186,606 23,49% 186,606 23,49% 15,367 2.79% 0,00% 2,000 20,00% (6,741) -4,64% (28) -2.71% (224) -40,58% 0,00% 1,329 2.96% 307 0,42% 0,00% 12,010 1.40% 5110 Contractual 15,809 26,074 15,000 13,902 ' 15,000 - 0,00°/o 5310 ,Postage &Meter 5320 Telephone __! 1,184 988 1,250 683 (11250) -100,00% S370 Repair & Maintenance 740 14,425 10,317 10,000 2%086 1S1000 51000 50,00% S410 Dues 130 50 200 169 200 - 0,00% 5430 Training - 160 871 500 1,733 1,000 500 100,00% i i TOTAL CONTRACTUAL SERVICES 740 31,708 38,300 27,050 45,573 31,300 4,250 15,71% 6110 !Materials and Supplies 41551 100,707 144,425 150,000 102,701 150)000 0,00% 6210 Office Supplies I - 290 316 S00 250 (250) -50,00% 62SO Gasoline & Oil 10,758 170441 16,000 1317S1 16,000 - 0,00% 6270 Small Equipment &Tools - 10247 279 11250 827 10250 0,00% TOTAL SUPPLIES 41551 113,002 162,461 167,750 117,279 167,500 (250) -0,15% 9510 !Depreciation Expense TOTAL OTHER TOTAL EXPENDITURES Z9,991 989,312 7,250 7,250 7,250 7,250 7,250 7,250 989,499 1,OS 7,504 1,089,311 1,073,514 16,010 0.00°/a 0.00% 1.51% 233 Capital Development Fund - Overview This fund accounts for the construction, expansion and/or extension of water and wastewater systems to accommodate new development and growth in the community. Revenues are generated through capital development fees on new residential and non-residential development. 235 Development -Fund Summary (Fund aa0) 3200 Interest 3630 Hookup/Connection Fees (31- Water) 3630 i Hookup/Connection Fees (32 -Sewer) TOTALREVENUES 9936 Transferto Utility Improvement Fund TOTAL EXPENDITURES NET INCREASE/(DECREASE) 1,197 I 569 121,863 194,088 127,780 194,070 250,840 388,727 1,060 201,724 208,169 410,953 2,000 I. _ 150,D00 160,000 312,000 1,195,910 250,840 388,727 (784,957) 312,000 1,060_ 1,000 (1,000) 0,00% 192,573 180,000 30,000 20.00% 203,157 190,000 30,000 18.75% 396,790 371,000 59,000 18,91% #DIV/0! #DIV/0! 396,790 371,000 e 236 -r- r ' Ta. Nowv UAL: Utility Improvements Fund - Overview The Utility Improvements Fund was created to provide a single fund to record revenues and expenses for capital construction projects for the water and wastewater utilities. Transfers from the Water & Sewer Fund and Capital Development Fund 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. Identified expenditures are related to the consolidation of the Central and South Wastewater Treatment Plants. - Fund Summary (Fund 580) 3200 Interest 3,440 31093 7,412 21000 13,257 10,000 81000 400,00% 3978 Transfer from Water/Sewer Fund 1,720,340 #DIV/01 3981 Transfer from Capital Development Fund I 1,195,910 #DIV/01 3994 Transfer from SSA#4 16,847 16,847 16,847 16,847 16,847 16,847 0,00% TOTAL REVENUES 20,287 19,940 2,940,509 18,847 30,104 26,847 81000 42.45% EXPENDITURES 8500 Capital -Utility Improvement Projects #DIV/01 TOTAL EXPENDITURES #DIV/01 NET INCREASE/(DECREASE) 20,287 19,940 21940,509 18,847 30,104 26,847 — 239 Marina Operations Fund - Overview The City of McHenry acquired the marina in 2000 to be able to expand the Central Wastewater Treatment Plant. After it was acquired it was determined that the wastewater facility could not be expanded at the existed site. Once the Central and South Wastewater Treatment Plant consolidation project is completed, the Central WWTP site can be redeveloped and at this time it is possible that the marina site be incorporated into any redevelopment. At this time the Marina Operations Fund is an enterprise fund that provides for the maintenance of a 60-slip marina on the Fox River. 241 Marina Operations- Fund 3200 Interest 455 223 394 200 394 200 0.00% 3845 ' Rental Income 55,275 43,422 48,964 50,000 43,313 40,000 (10,000)-20.00% TOTALREVENUES 55,730 43,645 49,358 501200 43,707 40,200 (10,000)-19.92% EXPENDITURES - - -- 5110 Contractual Services 31149 11,033 3,405 2%000 _ _ 2,217 15,000 (51000)-25,00% 6940 Administrative Expenses 24,982 25,609 25,186 _ 26,00.0 2_6,_217_ 28,000 2,000 7,69% 9930 Transfer to Water/Sewer Fund #DIV/01 TOTAL EXPENDITURES 280131 36,642 28,591 46,000 28,434 43,000 (31000) -6.52% i NET INCREASE/(DECREASE) 27,599 7,003 20,767 4,200 15,273 (2,800) 242 Fiscal Year 2018/2019 Annual Budget 243 lad r+ 4 • Employee Insurance Fund - Overview The City of McHenry recognizes that 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 employees. The current health insurance plan provided to employees offers a choice between a PPO (Preferred Provider Organization), an HMO (Health Maintenance Organization), and an HSA (Health Savings Account). Providing employees with a choice of plans allows for flexibility based on preference and affordability. In addition, employees receive dental and vision benefits. All IUOE 150 employees (Public Works, Parks) are required to be on the IUOE 150 insurance plan as per their collective bargaining agreement. 245 Employee Insurance - Fund Summary (Fund 600) MANS Ulm , 3240 IL Funds Interest 3 42 116 #DIV/0! 3653 Elective Participant Premium 14112S3 145,716 168,361 166,134 209,340 220,088 53,954 32,48% 3831 Employee Contributions 201,385 211,017 229,332 280,029 246,124 263,336 (16,693) -5.96% 3975 Transfer from General Fund 118451456 21011,166 2,170,114 21576,349 21403,795 21397,915 (178,434) -6.93% 3978 Transfer from Water/Sewer Fund 356,805 372,237 406,408 433,021 458,163 497,987 64,966 15.00% 3999 Tranfer from Other Funds 30 290 24,868 26161 38,179 38,342 44,896 61717 17.59% TOTAL REVENUES 2,575,189 2,7651007 31000,418 3,493,712 3,3SS,880 31424,222 (69,490) -1,99% EXPENDITURES 4310 Insurance Premiums - Health 20399,972 215651857 21787,533 30114,854 21936,975 31117,389 21535 0,08% 4320 Insurance Premiums - Dental 80,227 110,039 112,682 130,934 119,323 120,894 (10,040) -7,67% 4340 Insurance Premiums - Vision 11,284 12,077 12,924 15,013 14,035 14,689 (324) -2,16% 5245 Health HRA Reimbursement 93,391 95,236 11S,569 112,000 213,793 17112SO 591250 52,90% 6960 Miscellaneous Expenses 41420 3,216 31063 51000 51000 0,00% TOTAL EXPENDITURES 2,589,294 21786,425 31031,771 31377,801 3,2841126 3142%222 51,421 1.52% NET INCREASE/(DECREASE) (14,105) (21,418) (31,353) 115,911 71,754 (5,000) Risk Management Fund - Overview The purpose of the Risk Management Fund is to account for all activity related to risk management and insurance costs (other than employee health insurance) including loss control, loss prevention, risk transfer, and risk assessment. The City of McHenry is a member of the McHenry County Risk Management Agency (MCMRMA), a public entity risk pool through which property, general liability, automobile liability, crime, excess property, excess liability, and boiler and machinery coverage is provided. The relationship between the City and MCMRMA is defined through a contractual obligation approved by both the City Council and MCMRMA Executive Board. Revenues for the fund are generated by service charges to the City's General Fund and non -General Fund operating units. The service charges to the General Fund are provided for 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. Risk Management - Fund Summary (Fund 610) 3200 Interest Earnings 68 207 316 200 11648 11000 800 81,141 12.48°/a 17,500 700,00% 0,00% (1,250) -29,41% (500) -100,00% 518 2.50% 97,409 13,38% 249 :I�1111 [Il U)S Information Technology Fund - Overview Mission The mission of the Information Technology Division is to provide the most innovate, highest quality, technology -based services in a cost- effective manner and to facilitate the achievement of the goals and objectives of each of the City's operating departments. Information Technology Fund revenues are derived from transfers from the City's operating departments and expenses are related to the direct provision of technology services by the Division's two staff members and for the replacement of equipment and software through the municipality. The primary functions of IT staff include: • Providing efficient technology support for computer systems, web -based applications, voice, video, and integrated data services to all City departments. • Promoting and facilitating the integration of technology to efficiently meet the overall mission of the City using collaborative efforts through planning, training, and consulting with all departments and service providers. • Developing, enhancing and managing the City's networks to provide high-speed transparent, and highly functional connectivity. • Developing and maintaining highly effective, reliable, secure, and innovative information systems to support each department's functions. • Facilitating the collection, storage, security, and integrity of electronic data while ensuring appropriate access. • Promoting new uses of technology within the organization. 251 Information Technology - Organizational Chart asz Information Technology - Fund c 3200 Interest Earnings 57 53 92 100 3970 Charges for Services 427,S97 461,101 515,787 536,087 536,087 6341255 3975 Transfer from General Fund - - - - - - 3978 Transfer from Water/Sewer Fund - - - - - - TOTAL REVENUES 427,654 461,1S4 515,879 536,087 536,187 634,255 EXPENDITURES 4010 Salaries 156,567 163,368 122,953 131,899 129,235 136,318 4310 Health Insurance 29,S13 23,352 24,860 35,158 32,879 35,489 4320 Dental Insurance 1,250 977 11227 1,420 11362 1,422 4330 Life Insurance - 80 82 4340 Vision Insurance 108 105 74 7S 77 83 4410 FICAMedicare 11,170 12,929 9,169 10,090 9,561 10,428 4420 IMRF Retirement 20,350 3S,118 18,339 16,857 16,494 17,040 TOTAL SALARIES/BENEFITS 218,958 23SJ849 176,622 195,S79 189,608 200,862 5110 Contractual 86,120 108,603 135,064 171,732 134,851 161,075 S320 Telephone 2,731 2,903 989 5,220 889 851412 5410 Dues 500 500 250 450 300 5420 .Travel Expense 430 696 11300 11706 11500 5430 Training 163 7,550 5,900 41935 6,000 TOTAL CONTRACTUAL SERVICES 8%014 112,436 144,799 184,402 142,831 254,287 #DIV/0! 98,168 18,31% #DIV/0! #DIV/0! 98,168 18,31% 4,419 3.35°/a 331 0,94% 2 0,14% 2 2,50% 8 10,67% 338 3,35% 183 1,09% 5,283 2,70% 80,192 1536.25% 50 20,00% 200 15.38% 100 1,69% 69,885 37,90% 6110 ,Materials and Supplies 19,862 5,236 13,947 39,549 88,777 42,550 3,001 7.59% 6210 Office Supplies 11,512 16,163 13,060 14,100 20,744 300100 16,000 113.48% 6270 Small Equipment 23,648 23,506 38,766 45,600 55,320 59,600 14,000 30.70% TOTAL SUPPLIES 55,022 44,90S 65,773 9%Z49 164,841 132,250 33,001 33.25% 9510 Depreciation 38,293 37,391 41,139 50,000 43,354 40,000 (10,000) -20,00% 9920 Purchase of Services - Risk Management 8,34S 81345 7,408 61857 61857 6,857 - 0,00% TOTAL OTHER 46,638 45,736 48,547 561857 500211 46,857 (100000) -17,59% TOTAL EXPENDITURES 409,632 438,926 435,741 536,087 S470491 634,256 98,169 1B.31% NET INCREASE/(DECREASE) 180022 22,228 80,138 - (11,304) (1) 253 Fiscal Year 2018/2019 Annual Budget Fiduciary Funds 254 I R 144M ice.• - ,. Employee Flexible Spending Fund - Overview The Employee Flexible spendind account is used to account for employee pre-tax medical spending accounts that are offered as a benefit to City employees. Under the Internal Revenue Service (IRS) rules and regulations, employees can set aside money for certain medical benefits on a pre-tax basis. These benefits include medical expenses not covered under the employee's health insurance plan. When allowable medical costs are paid by the employee, 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. I' A-A"'Itt, 256 iployee Flex = Fund Summary (Fund 700) 3831 Employee Contributions TOTALREVENUES 6940 Administrative Expenses 6965 Medical Reimbursements i 9999 Revenue/Expense Closing TOTAL EXPENDITURES NET INCREASE/(DECREASE) 89,232 91,021 109,721 105,000 101,360 60,000 (45,000) -42.86°/a 8%232 91,021 109,721 105,000 101,360 60,000 (45,000) -42,86% I 4,106 31725 31944 5,000 4,379 4,000 (11000) -20,00% 84,679 86,504 1111100 100,000 49,424 56,000 (44,000) -44,00% 447 792 (51323) 47,SS7 #DIV/0! 89,232 91,021 109,721 105,000 101,360 60,000 (45,000) -42,86% 257 Fiscal Year 2018/2019 Annual Budget 258 Development Escrow Fund - Overview The Development Escrow Fund is a fiduciary fund used to account for assets held by the City in a trustee capacity or as an agent for individuals, private organizations, other governments or funds. The Development Escrow Fund holds funds deposited by developers until such time as certain improvements are completed or in lieu of developer provided improvements. These funds are custodial in nature and do not involve measurement of results of operations. In FY18/19 Development Escrow Funds are being used for the manufacture and installation of a new municipal gateway sign on east Route 120 as part of the Ricky Rockets development project. 259 Developmental Escrow - Fund 720) 3210 Interest Earnings 338 (56) 3 50 17 3760 Received from Developers 32,662 25,000 250000 TOTALREVENUES 33,000 (56) 3 25,050 17 250000 EXPENDITURES 6961 Miscellaneous Refunds 32,662 9942 Transfer to Capital Improvements Fund - (32,718) 25,000 25,000 9999 Revenue/Expense Closing 33,000 3 TOTAL EXPENDITURES 33,000 (S6) 3 25,000 25,000 NET INCREASE/(DECREASE) - 50 i 17 0,00% (50) -0,20% #DIV/0! 0.00% #DIV/01 0,00% 260 Fiscal Year 2018/2019 Annual Budget 261 Retained Personnel Fund - Overview The Retained Personnel Fund is used to account for funds collected as reimbursement and expended for professional and technical services used to assist or advise the City in connection with land development. The City's retained personnel costs included engineering, legal, planning, and other technical professional matters. The City typically collects a deposit from property owners at the initiation of annexation, zoning, or other development proceedings that approximate the total retained personnel costs expected to be incurred. 262 Retained Personnel = Fund Summary (Fund 740) 3730 Engineering Fees 52,413 78,012 42,121 50,000 53,380 50,000 - 0.00% 3735 Legal Fees 29,473 25,188 13,888 15,000 81257 15,000 0,00% 3740 Developer Miscellaneous Fees 6,426 7,135 61500 8,000 3,000 8,000 0.00% 3750 Developer Refunds 500 2,000 81906 2,000 0,00% TOTAL REVENUES 88,812 110,335 62,509 75,000 73,543 75,000 0.00% 5220 Engineering Fees 5230 Legal Fees 6960 Miscellaneous Fees 6961 Miscellaneous Refunds TOTAL EXPENDITURES NET INCREASE/(DECREASE) 52,413 77,081 47,211 50,000 53,380 50,000 29,473 26,130 13,888 15,000 8,257 15,000 6,926 71124 6,500 8,000 3,000 8,000 (51090) 21000 8,906 2,000 88,812 110,335 62,509 75,000 73,543 75,000 0.00% 0.00% 0.00% 0.00% 0.00% 263 Fiscal Year 2018/2019 Annual Budget r.� Revolving Loan Fund - Overview The Revolving Loan Fund provides low interest loans to qualified existing and prospective businesses within the City of McHenry. The loan proceeds can be used to assist in the startup of a new business, expand and existing business update existing facilities to make the business more competitive, or provide an incentive for established businesses to relocate to the City. The primary goal of the program is job creation and expansion of the sales and property tax bases. The program requires loan applicants to complete a formal application �/ which is then reviewed by the Revolving Loan Fund Committee - comprised of the Mayor and Finance and Personnel Committee. Terms are identified/negotiated and a recommendation is provided to the full City Council for consideration. Of note, the Revolving Loan Fund itself does not have expenditures as the loans are originated through the City's identified lender. Revenues are comprised of receivables, or payments, which are budgeted. 265 321D Interest Earnings 3210 Loan Interest TOTAL REVENUES 5110 Contractual Services TOTAL EXPENDITURES NET INCREASE/(DECREASE) 17 11 11 50 166 150 21523 1,486 1,394 2,000 1,180 11500 2,540 1,497 11405 2,050 1,346 11650 100 100 21540 1,497 11405 2,050 1,246 1,650 100 200,00% (500]-25.00% (400)-19,51% 0.00°/n 266 Police Pension Fund - Overview The Police Pension Fund accounts for retirement benefits for retired police officers and their beneficiaries through employer and employee contributions and investment earnings. The primary purpose of this non -operating budgetary unit is to finance pensions for employees 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. Account and actuarial 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 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 Council has committed to funding the plan based upon these recommendations. 268 Police Pension - Fund Summary (Fund 760) 3210 Interest Earnings 1,295,101 1,386,205 809,529 950,000 1,023,759 950,000. - 0.00% 3830 Employer Contributions 1,135,605 979,515 11521,914 11874,219 1,8681798 2,019,703 145,484 7.76% 3831 Employee Contributions 381,363 513,111 397,515 410,000 409,541 430,000 20,000 4,88% 3836 Gain/Loss on Sale (152,069) (74,996) (42,906) - (35,306) - #DN/01 3837 Unrealized Gain/Loss 118,330 (11112,524) 1127SJ071 957,504 #DIV/01 3882 Miscellaneous Reimbursement 50 - #DIV/0! TOTAL REVENUES 2,778,380 1,691,311 3,961,123 3,234,219 4,224,296 3,399,703 16SO484 5,12% EXPENDITURES 4910 Pension Payments 1,42S,48S 1,380,578 10374,052 11460,291 10471,760 1,554,165 93,874 6,43% 4920 Duty Disability Payments 225,749 228,485 231,214 238,586 238,586 251,066 12,480 5,23% 4930 Survivor Benefit Payments 87,495 173,824 252,244 244,390 184,056 176,924 (67,466) -27,61% 4940 Non -Duty Disability Payments 17,511 17,512 17,512 17,512 171512 17,512 0,00% , 4990 Contribution Refunds 112,515 246,347 15,910 - #DIV/01 5110 Contractual Services 32,146 45,681 34,803 45,000 42,289 45,000 0,00% 5410 Dues 1,275 1,200 2,790 2,000 11595 21000 0,00% 9923 Purchase of Service - Audit 31425 30500 31570 3,625 31625 3,700 75 2,07% TOTAL EXPENDITURES 11905,601 2,097,127 1,932,095 2,0111404 1,959,423 21050,367 38,963 1,94% NET INCREASE/(DECREASE) 872,779 (405,816) 2,029,028 1,222,815 2,264,873 1,349,336 269 Fiscal Year 2018/2019 Annual Budget Information 270 Financial Policies Overview The following City financial policies, along with the approved Fund Balance and Reserve, Investment and Capital Improvement Program policies, establish the framework for McHenry's overall fiscal planning and management. Ouerating 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. 271 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. 272 Fund Balance and Reserve Policy Overview • The purpose of this policy is to establish the principles and parameters to which a Fund Balance target will be defined at the beginning of each budget period. This policy is established to provide financial stability, cash flow for operations, and the assurance that the City will be able to respond to emergencies with fiscal strength. • In the event that unexpected situations may cause the City to fall below the minimum fund balance level, certain steps will be followed to correct the deficiency, as outlined in the section below titled "Fund Balance Parameters." Definitions • Fund Balance -The difference between assets and liabilities in a Governmental Fund. • Net Position -The amount remaining after subtracting total liabilities from total assets for Proprietary Funds. • Operating Expenditures -Total expenditures minus capital and debt service. • Governmental Funds -Are used to account for all or most of the City's general activities, including the collection and disbursement of restricted or committed monies (special revenue funds), the funds restricted, committed or assigned for the acquisition or construction of major capital assets (capital projects fund), and the funds restricted, committed or assigned for the servicing of general long-term debt (debt service funds). The general fund is used to account for all activities of the general government not accounted for in some other fund. o General Fund -Accounts for all activities of the City not accounted for in another fund. The General Corporate Fund is used to account for most of the day-to-day operations of the City, which are financed from tax revenues and other general revenues. Nine (9) separate activities are accounted for within the General Fund including: Administration, Elected Officials, Community & Economic Development, Finance Department, Police Commission, Police Department, Public Works - Administration, Public Works -Streets, and Parks and Recreation. o Special Revenue Funds -These funds are utilized to account for revenues derived from specific sources which are usually required by law or regulation to be accounted for as separate funds. For the City of McHenry these funds include the following funds, with definitions provided: ■ Tourism Fund -The Tourism Fund is used for the purpose of financing tourism through promotion of the City. It is derived from a 5%occupancy tax on motel and hotel receipts. 273 ■ Pageant Fund - The purpose of the Pageant Fund is to account for revenues and expenditures used to conduct the annual Miss McHenry Pageant. ■ Band Fund - The purpose of the Band Fund is to finance and account for expenditures incurred in the provision of summer concerts to promote culture and recreation to the community. ■ Civil Defense Fund -The City Defense Fund is used to fund and account for activities related to the training of personnel and the purchase and maintenance of equipment to protect and defend the City from natural disasters or man-made environmental disasters through early warning and public notification systems. ■ Alarm Board Fund -The purpose of this fund is to pay for the maintenance of radios, as well as the annual maintenance of the head -end equipment, in the City's dispatch center. Revenues are derived from the monitoring of business fire alarms, which are directly connected to the dispatch center. ■ Audit Fund -The Audit Fund accounts for expenses incurred to complete the annual financial audit of the City. ■ Annexation Fund -This fund tracks funds received from negotiated annexation agreements that are intended to be used for improvements to infrastructure or City facilities. ■ Motor Fuel Tax Fund -The Motor Fuel Tax (MFT) Fund is to provide dedicated revenues from taxes on gasoline and diesel sales primarily to road maintenance and improvements. ■ Developer Donation Fund -The purpose of this fund is to account for donations collected from developers on behalf of the primary and secondary school districts, fire protection district, and the City's park system. ■ Tax Increment Finance Fund -The Tax Increment Finance (TIF) Fund is utilized to capture the tax increment on property taxes generated through private investment within the downtown TIF District. These funds are then reinvested into this area to undertake public improvements and/or as incentivization to spur additional private investment. o Capital Projects Fund -Capital Projects Fund is utilized to account for financial resources to be used for the acquisition or construction of capital facilities or other major fixed assets. The following funds are identified within the Capital Projects Fund: ■ Recreation Center Construction Fund -The purpose of this fund is to, first, account for revenues and expenditures related to the construction of the recreation center facility; and, second, to account for capital expenditures specific to the completed recreation center facility. 274 ■ Special Service Area #4A - The SSA#4 Fund is utilized to account for revenues and expenses associated with annual debt service for the sewer project located in the Lakewood Road Subdivision. ■ Capital Improvements Fund -The purpose of the Capital Improvements Fund is to account for funds identified for the maintenance and construction of public infrastructure projects other than water and sewer utilities. This includes roads and public facility maintenance, improvements and/or construction. ■ Capital Equipment Fund -The Capital Equipment Fund is utilized to track annual expenditures of equipment replacement (e.g., vehicles, computer equipment) as identified in the 5-Year Capital Improvement Program. o Debt Service Fund -The Debt Service Fund accounts for bonded indebtedness incurred by the City's General Fund, including bond and interest payments. • Enterprise Funds -Enterprise Funds are business -type funds utilized to account for operations and activities that are financed and operated in a manner similar to a private business enterprise, and where the cost of providing goods and services to the general public on a continuing basis is expected to be recovered primarily through user charges. The City has also established Enterprise Funds when it was advantageous to segregate revenues earned and expenses incurred for an operation for purposes of capital maintenance, public policy, management control, or accountability. The following funds comprise the City's Enterprise Funds: o Water and Sewer Fund -The Water and Sewer Fund funds the operations of the Water, Wastewater and Utility Division of the Department of Public Works who's functions are to provide a safe and reliable supply of high quality potable water and to protect public health and the environment by treating sewage to meet stringent environmental standards prior to discharge. o Capital Development Fund -This fund accounts for the construction, expansion and/or extension of water and wastewater systems to accommodate new development and growth in the community. Revenues are generated through capital development fees on new residential and non-residential development. o Utility Improvements Fund -The Utility Improvements Fund is utilized for capital projects that improve or expand the capacity of the Water and Wastewater utilities. o Marina Operations Fund -This Enterprise Fund is used to maintain achy -owned 60-slip marina on the Fox River. • Internal Service Funds -Internal Service Funds are established to finance and account for services and/or commodities furnished by one department or agency to other departments or agencies of the city. The Internal Service Funds of the City are as follows: o Employee Insurance Fund -The purpose of this fund is to finance and account for expenditures incurred to provide health insurance benefits to employees. 275 o Risk Management Fund - The Risk Management Fund accounts for all activity related to risk management and insurance costs (other than employee health insurance) including loss control, loss prevention, risk transfer, and risk assessment. o Information Technology Fund -The IT Fund factates the implementation of innovative, high quality technology -based services to each of the City's departments. • Fiduciary Funds -These funds are used to account for resources held for the benefit of parties outside of the city. The Fiduciary Funds of the city include the following funds: o Employee Flexible Spending Fund -Accounts for employees' pre-tax medical spending accounts that are offered as a benefit to City employees. o Development Escrow Fund -This fund is used to segregate developer funds held by the City to ensure the completion of specific public improvements such as sidewalks and traffic signals. o Retained Personnel Fund -The Retained Personnel Fund accounts for funds collected as reimbursement and expended for professional and technical services used to assist or advise the City in connection with land development. o Revolving Loan Fund -This fund accounts for activity in the Revolving Loan Program, a low -interest program for businesses and industry with the goal of job creation. o Police Pension Fund -Accounts for retirement benefits for retired police officers and their beneficiaries through employer and employee contributions and investment earnings. Governmental Fund Equity • With the implementation of GASB 54, the fund balance structure for governmental funds changed as of the fiscal year ended April 30, 2012. Multiple fund balance classifications include: Non -Spendable, Restricted, and Unrestricted, with unrestricted being further broken down into: Committed, Assigned, and Unassigned. • Expenses that can be attained from multiple fund classifications shall be used from the most to least restrictive fund. With the discretion of the Finance Director, and with the advice and consent of the Finance and Personnel Committee, a deviation can be made from this policy if it is in the best interest of the City of McHenry. • Fund classifications are described by the following: o Non -Spendable Fund Balance - (1 of 2 conditions) ■ Amounts that are not in spendable form ➢ Can never be spent (i.e., Inventory, Prepaid Rent) ➢ Cannot currently be spent because of cash flow timing (i.e., Long -Term Receivables) 276 ■ Amounts that are required to be maintained intact (i.e., principal of an endowment) o Restricted ■ Externally enforceable legal restrictions (i.e., grants, debt proceeds, tax levies) o Unrestricted (3 designations) ■ Committed - Amounts constrained for a specific purpose by a government using its highest level of decision -making authority ➢ Must be committed prior to fiscal year-end, however, dollar amount can be decided at a later time. ➢ Revenues reported within any given special revenue fund are considered "Committed" by the City Council in accordance with GASB Statement S4 and are intended to be used for the related purpose. ■ Assigned - Amounts constrained, for the intent to be used for a specific purpose by the City Administrator and Finance Director ➢ Includes any remaining positive balances in governmental funds (other than the General Fund) that is not classified in any other fund balance category ➢ A drawdown of the fund balance would be classified within this category ■ Unassigned - Remainder of the General Fund's fund balance that is not classified in a previous category and amounts have not been expended in excess of resources available in other governmental funds Proprietary (Enterprise/Internal Service) Fund Equity • Proprietary funds include Enterprise and Internal Service Funds. • Expenses that can be attained from multiple fund classifications shall be used from the most to least restrictive fund. With the discretion of the Finance Director, and with the advice and consent of the Finance and Personnel Committee, a lesser restrictive net asset classification can be used if they determine that it is in the best interest of the City. • The net assets will be composed of three primary categories: o Net Investment in Capital Assets -That portion of a proprietary fund's net assets that reflects the fund's net investment in capital assets less any amount of outstanding debt related to the purchase/acquisition of said capital assets. ■ Related debt, for this purpose, includes the outstanding balances of any bonds, mortgages, notes, or other borrowings that are attributable to the acquisition, construction, or improvement of capital assets of the Government. o Restricted Net Assets That portion of a proprietary fund's net assets that are subject to external enforceable legal restrictions (e.g., grantor, contributor and bond covenants). o Unrestricted Net Assets That portion of a proprietary fund's net assets that is neither restricted nor invested in capital assets (net of related debt). 277 Fund Balance Parameters (By Fund, • It is the City's philosophy to support long-term financial strategies, where fiscal sustainability is it first priority, while also building funds for future growth. It is essential to maintain adequate levels of fund balance to mitigate current and future risks and to ensure stable tax levies. Credit rating agencies carefully monitor levels of fund balance to evaluate a City's credit worthiness. • Revenues received within a given fund are specifically committed for its related purpose. Revenues reported within any fund may be modified from time to time through the annual budget process. • The following parameters will be used as part of the budget process to establish targets for the following funds: o General Fund -The unrestricted fund balance target should be set at 120 days (4 months) of estimated operating expenditures including those expenditures reported in other Governmental Funds that receive annual operating transfers, with the exception of transfers intended to fund capital projects. If the unreserved fund balance falls below 120 days, a plan will be developed to return to the target balance. If the unreserved fund balance reaches a low of 90 days (3 months), the plan will be implemented to return the fund balance to the target within a reasonable amount of time. One-time revenues shall not be used to fund current operations. This level of fund balance shall provide the capacity to: ■ Offset unexpected downturns in elastic revenues due to fluctuations in the local, state and national economies or the loss of a major sales tax contributor(s); ■ Offset negative fiscal changes brought about by action or legislation of another unit of government or agency; ■ Ensure the continued, timely repayment of debt obligations that the City may have in the event of a financial downturn; ■ Provide a sufficient cash flow for daily financial needs at all times; and, ■ Provide a funding source for unanticipated expenditures or emergencies that may occur. Funds in excess of the minimum may be nonrecurring expenditures, assigned for fu considered for the funding of one-time, o Tourism Fund - No target is established for this fund. The expenditures in this fund are to be used for financing tourism through promotion of the City. o Pageant Fund - No target is established for this fund. o Band Fund - No target is established for this fund. There is an estimated yearly operating transfer provided by the General Fund to cover expenses. 278 o Civil Defense Fund - The unrestricted fund balance should be maintained at 120 days (4 months) of estimated operating expenditures. Additional fund balance needs to be retained to address long-term equipment replacement and or repair. o Alarm Board Fund -The unrestricted fund balance should be maintained at 120 days (4 months) of estimated operating expenditures. Additional fund balance needs to be retained to address long-term equipment replacement. o Audit Fund - No target is established for this fund. Any fund balance accumulated within this fund will be utilized to lower operating transfers from other funds or the property tax levy. o Annexation Fund -The unrestricted fund balance should be maintained at sufficient levels to address the related annual debt service payments pledged by this fund and additional funding for capital projects. o Motor Fuel Tax Fund - No target is established for this fund. The expenditures intended for the Motor Fuel Tax revenues must not exceed the amount of funds available from the State of Illinois Motor Fuel Tax Fund. These revenues should only be used for street improvements and repair, as allowed by the State of Illinois Law. o Developer Donation Fund -The unrestricted fund balance should be maintained at sufficient levels to fund park related capital projects. o Tax Increment Finance Fund - No target is established for this fund. All fund balance within this fund will go to pay for improvements completed within the TIF district. o Recreation Center Construction Fund -The unrestricted fund balance should be maintained at 120 days (4 months) of estimated operating expenditures. Additional fund balance needs to be retained to address long-term equipment/furniture replacement or other unforeseen capital needs. o Special Service Area #4 (SSA#4) - No fund balance is maintained in this fund, all revenues are transferred to the Utility Improvements Fund to cover project costs. o Capital Improvements Fund - No target is established for this fund. The expenditures in this fund are to be used for retiring debt service and for capital infrastructure expenditures. One-time revenues should be placed in this fund. However, the City will plan appropriately and maintain a sufficient reserve in order to meet the long-term capital planning, projected cash flow requirements, and infrastructure needs of the community. o Capital Equipment Fund - No target is established for this fund. The expenditures in this fund are to be used for capital equipment expenditures. o Debt Service Fund - No target is established for this fund. This fund is used only as a debt service fund. 279 o Water and Sewer Fund - The Water and Sewer Fund cash and investment balance should be maintained at a minimum level of 25%-35% of the previous year's operating expenses taking into account typical levels of expenditures required for capital outlays. Rates should be maintained at sufficient levels to meet the costs of water and sewer programs, fund depreciation, and build reserves for future capital needs. Water rates for consumers will be reviewed on an annual basis based on operating and capital needs. If the balances fall below the minimum, rates will be adjusted so as to gradually return to the minimum within a reasonable period of time. If balances exceed the minimum, the overage will be used to keep future rate increases lower or fund capital projects for the water/sewer systems. o Capital Development Fund - No target is established for this fund. The expenditures in this fund are to be used for retiring debt service and for capital expenditures. o Utility Improvements Fund - No target is established for this fund. The expenditures in this fund are to be used for capital infrastructure expenditures. One- time revenues should be placed in this fund. However, the City will plan appropriately and maintain a sufficient reserve in order to meet the long-term capital planning, projected cash flow requirements, and infrastructure needs of the community. o Marina Operations Fund - No target is established for this fund. All fund balance within this fund will go to maintain the City owned marina. o Employee Insurance Fund - No target is established for this fund. Any fund balance accumulated within this fund will be utilized to provide stability for the Citys health insurance costs. o Risk Management Fund - No target is established for this fund. Any fund balance accumulated within this fund will be utilized to provide stability for the City's risk management costs. o Information Technology Fund -The unrestricted fund balance should be maintained at 120 days (4 months) of estimated operating expenditures. Additional fund balance needs to be retained to address capital expenditures. o Employee Flexible Spending Fund - No fund balance is maintained within this fund. This fund is used only as an agency fund. o Development Escrow Fund - No fund balance is maintained within this fund. This fund is used only as an agency fund. o Retained Personnel Fund - No fund balance is maintained within this fund. This fund is used only as an agency fund. o Revolving Loan Fund - No target is established for this fund. Any fund balance accumulated within this fund will be utilized to offer low interest loans to local businesses. 280 o Police Pension Fund - Fund balance targets will be determined through the Police Pension Board and the annual actuarial analysis. Capital Improvement Program Financial Policy 1. The Capital Improvements Program (CIF) 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. 282 Investment Policy I. Policy It is the policy of the City of McHenry to invest public funds in a manner which will provide the highest investment return with the maximum security while meeting the daily cash flow demands of the City and conforming to all state and local statutes governing the investment of public funds. II. Scope This policy includes all funds governed by the Mayor and Council ("City Council"). III. General Objectives The primary objectives, in priority order, of investment activities shall be safety, liquidity, and yield: A. Safety. Safety of principal is the foremost objective of the investment program. Investments shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. The objective will be to mitigate credit risk and interest rate risk 1. Credit Risk. The City will minimize credit risk, the risk of loss due to the failure of the security issuer or backer, by: (a) Limiting investments to the safest types of securities. (b] Pre -qualifying the financial institutions, brokers/dealers, intermediaries, and advisers with which the City will do business. (c) Diversifying the investment portfolio so that potential losses on individual securities will be minimized. 2. Interest Rate Risk. The City will minimize the risk that the market value of securities in the portfolio will fall due to changes in general interest rates, by: (a) Structuring the investment portfolio so that securities mature to meet cash requirements for ongoing operations, thereby avoiding the need to sell securities on the open market prior to maturity. (b) Investing operating funds primarily in shorter -term securities, money market mutual funds, or similar investment pools. B. Liquidity. The investment portfolio shall remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated. This is accomplished by structuring the portfolio so that securities mature concurrentwith cash needs to meet 283 IV V anticipated demands (static liquidity). Furthermore, since all possible cash demands cannot be anticipated, the portfolio should consist largely of securities with active secondary or resale markets (dynamic liquidity). A portion of the portfolio also may be placed in money market mutual funds or local government investment pools which offer same -day liquidity for short-term funds. C. Yield. The investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment constraints and liquidity needs. Return on investment is of secondary importance compared to the safety and liquidity objectives described above. The core of investments are limited to relatively low risk securities as identified in this policy in anticipation of earning a fair return relative to the risk being assumed. Securities shall not be sold prior to maturity with the following exceptions: 1. A security with declining credit may be sold early to minimize loss of principal. 2. A security swap would improve the quality, yield, or target duration in the portfolio. 3. Liquidity needs of the portfolio require that the security be sold. 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. 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. 284 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 150A (uniform net capital rule). All financial institutions and broker/dealers who desire to become qualified for investment transactions must supply the following as appropriate: A. Audited financial statements. B. Proof of National Association of Securities Dealers (NASD) certification. C. Proof of state registration. D. Completed broker/dealer questionnaire. E. Certification of having read and understood and agreeing to comply with the City's investment policy. An annual review of the financial condition and registration of qualified financial institutions and broker/dealers will be conducted by the Investment Officer. VIII. Suitable and Authorized Investments The City may invest in any investment allowed for in the Illinois statutes regarding investment of public funds including but not limited to the following: A. U.S. government obligations, U.S. government agency obligations, and U.S. government instrumentality obligations, which have a liquid market with a readily determinable market value. 285 B. Canadian government obligations (payable in local currency). C. Certificates of deposit and other evidences of deposit at financial institutions, bankers' acceptances, and commercial paper, rated in the highest tier (e.g., A-1, P-1, F-1, or D-1 or higher) by a nationally recognized rating agency. D. Investment -grade obligations of state, provincial and local governments and public authorities. E. Repurchase agreements only if the underlying purchased securities consist of government securities which are subject to the Government Securities Act of 1986 or as authorized in 30 ILCS 235/2(h)(1)-(11). F. Money market mutual funds regulated by the Securities and Exchange Commission and whose portfolios consist only of dollar -denominated securities. G. Local government investment pools, either state -administered or through joint powers statutes and other intergovernmental agreement legislation. IX. Collateralization Funds on deposit (checking accounts, certificates of deposit, etc.) in excess of FDIC limits must be secured by some form of collateral, witnessed by a written agreement and held at an independent - third party institution in the name of the City. X. Safekeeping and Custody All security transactions, including collateral for repurchase agreements, entered into by the City, shall be conducted on adelivery-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 XII. XIII repurchase agreements to ensure that appropriate liquidity is maintained in order to meet ongoing obligations. Maximum Matures 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. Internal Controls The Investment Officer is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the City are protected from loss, theft or misuse. The internal control structure shall be designed to provide reasonable assurance that these objectives are met. The concept of reasonable assurance recognizes that (1) the cost of a control should not exceed the benefits likely to be derived and (2) the valuation of costs and benefits requires estimates and judgments by management. Accordingly, the Investment Officer shall establish a process for an annual independent review by an external auditor to assure compliance with policies and procedures. The internal controls shall address the following points: A. Control of collusion. B. Separation of transaction authority from accounting and recordkeeping. C. Custodial safekeeping. D. Avoidance of physical delivery securities. E. Clear delegation of authority to subordinate staff members. F. Written confirmation of transactions for investments and wire transfers. G. Development of a wire transfer agreement with the lead bank and third -party custodian. 287 XIV. Performance Standards The investment portfolio will be managed in accordance with the parameters specified within this policy. The portfolio should obtain a market average rate of return during a market/economic environment of stable interest rates. A series of appropriate benchmarks shall be established against which portfolio performance shall be compared on a regular basis. XV. Reporting The Investment Officer, or his designee, shall prepare an investment report at least quarterly, including a management summary that provides an analysis of the status of the current investment portfolio and transactions made over the last quarter. This management summary will be prepared in a manner which will allow the City to ascertain whether investment activities during the reporting period have conformed to the investment policy. The report should be provided to the Investment Officer, the legislative body, and any pool participants. The report will include the following: A. Listing of individual securities held at the end of the reporting period. B. Realized and unrealized gains or losses resulting from appreciation or depreciation by listing the cost and market value of securities over one-year duration that are not intended to be held until maturity. C. Average weighted yield to maturity of portfolio on investments as compared to applicable benchmarks. D. Listing of investment by maturity date. E. Percentage of the total portfolio which each type of investment represents. XVI. Marking to Market A statement of the market value of the portfolio shall be issued to the Mayor and City Council quarterly. XVII. Exemption Any investment currently held that does not meet the guidelines of this policy shall be exempted from the requirement of this policy. At maturity or liquidation, such monies shall be reinvested only as provided by this policy. XVIII. Amendments This policy shall be reviewed on an annual basis. The Investment Officer may implement changes in the investment policy after gaining approval from the Mayor and City Council for RM the amendments. Any and all amendments to the investment policy shall be provided to the individuals) 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. 289 Purchasing Policy and Procedures General Rules. Rerulatlons and Ethics • Purchasing activities for the City of McHenry shall be in accordance with this Purchasing Policy, City Ordinances and applicable Statutes of the State of Illinois. • Items procured will represent the maximum economical benefit for each dollar spent. • Procurement shall be made of commodities and services of high quality and continued availability. • Whenever possible, purchases shall be based on obtaining cost comparisons, quotations or competitive bids. In the case that it is not possible to obtain cost comparisons, quotations or competitive bids, this will be identified in the approval and review process. • Purchases shall be based on obtaining better knowledge of methods and of commodities required to operate cost effectively. • Local participation will be encouraged in the procurement process. • Consideration should be given to participate in cooperative purchasing efforts with other local government entities and in the State of Illinois Joint Purchasing Program whenever possible. • All personnel involved in the purchasing process shall conduct themselves with fairness and impartiality, and demand the same of all vendors. • Negotiations and discussions involving purchasing shall be conducted in compliance with the Code of Ethics and Rules of Conduct in the City's Personnel Handbook. • The purchasing process will promote professionalism and be committed to the efficiencies of centralized purchasing. Apuroval Requirements &Delegations of Authority • The purpose of this procedure is to outline the required approvals for all purchase commitments and transactions, and secondly, to define City personnel by classification who are authorized to initiate purchases at various monetary levels for materials, equipment, supplies and services. • All designated personnel shall obtain the required approval(s) prior to final commitment. If one or more person's approval is required who is not available, the approval must be obtained from the next highest level of authority of approval level. 290 • Prior to approval for payment by the City Council, Department Directors and the City Administrator must approve all purchase invoices for those transactions and commitments of authorized supervisors and employees. • The following table establishes the required levels of approval based on the dollar amount of the purchase: City Authorized Employees Administrator Mayor or Amount & Department or Finance City Mayor and Supervisors/Managers Directors Director Administrator City Council $750 or less X X X $751 to X X $3,500 $3,501 to X $6,500 $6,501 to X $10,000 More than X $101000 • The following table lists those position classifications authorized to initiate purchases in relationship to the prescribed dollar amounts (from above). Those position classifications not shown below are strictly prohibited from purchasing unless otherwise authorized by the City Administrator or Finance Director. Dollar Amounts Authorized Positions) More than $10,000 Mayor and City Council in accordance with "Budgeted Items - Cost Comparisons, Quotations and Competitive Bidding" section of this policy* $6,501- $10,000 Budgeted Items with the authorization of the Mayor or City Administrator in accordance with "Budgeted Items - Cost Comparisons, Quotations and Competitive Bidding" section of this policy* $3,501- $6,500 Budgeted Items with authorization of the Finance Director or City Administrator in accordance with "Budgeted Items - Cost Comparisons, Quotations and Competitive Bidding" section of this policy* $751- $3,500 Budgeted Items with authorization of the Department Director in accordance with "Budgeted Items - Cost Comparisons, Quotations and Competitive Bidding" section of this policy* $750 or less Budgeted Items by Employees authorized by their immediate Superintendent, Manager, or 291 Department Director in accordance with "Budgeted Items - Cost Comparisons, Quotations and Competitive Bidding" section of this policy* *For items not identified as "Budgeted Items", budget amendment requests will be brought before the City Council for consideration/approval for items over $6,500 unless the action is considered emergency in nature. Should this be the case, Council will be notified of the purchase/acquisition and the item will be presented for approval at the next regular meeting of the City Council. • Definitions of authorized positions: Authorized Dollar Amount Authorized Position(s) $750 or less Authorized Employees: (must have prior approval of their immediate Supervisor, Manager, or Department Director) • Executive Assistant/Deputy City Clerk • Administrative Assistants (all departments) • Public Works Maintenance Worker • Public Works Operator • Public Works Mechanic • Parks & Recreation Maintenance Worker • Public Works Project Engineer • Community Development Plumbing Inspector • Community Development Code Enforcement Officer • Community Development Permit Technician Supervisors/Managers: • Public Works Water Division Superintendent • Public Works Wastewater Division Superintendent • Public Works Street Division Superintendent • Public Works Wastewater Division Assistant Superintendent • Public Works Utility Division Superintendent • Public Works Forestry Division Superintendent • Community Development Superintendent of Residential Inspections • Community Development Superintendent of Commercial Inspections • Parks & Recreation Parks Division Superintendent • Parks & Recreation Parks Division Assistant Superintendent • Parks &Recreation Recreation Center Manager • Recreation Superintendent of Programs • Recreation Superintendent of Athletics & Aquatics • Police Deputy Chief • Police Commander of Operations 292 • Police Commander of Support Services • Police Sergeants • Police Dispatch Supervisor • Information Technology Manager $751- $3,500 Department Directors: • Deputy City Administrator/Director of Parks & Recreation • Director of Economic Development • Director of Community Development • Director of Finance • Director of Public Works • Chief of Police $3,501- $6,500 City Administrator or Finance Director $6,501 - $10,000 Mayor or City Administrator More than $10,000 May and City Council Budgeted Items -Cost Comparison. Quotations and Competitive Bidding • For budgeted items under $6,500 authorized positions shall obtain, where possible, three (3) cost comparisons prior to the purchase of goods and/ services. • For budgeted items between $6,501 and $10,000 authorized positions shall obtain, where possible, three (3) cost comparisons or three (3) written quotations prior to the purchase of goods and/or services. • For budgeted items over $10,000, but less than $20,000, staff shall obtain, where possible, three (3) written quotations for the purchase of goods and/or services for consideration and approval by the City Council. • For budgeted items over $20,000, the purchase of goods and/or services shall follow a formal competitive bidding process whereby staff develops bid specifications, Council approves a request to advertise for bids, bids are received and evaluated, and a recommendation is forwarded to the City Council for award/approval. 293 Glossary of Terms Accrual Basis of Accounting: A method of accounting that recognizes the financial effect of transactions, events, and interfund activities when they occur, regardless of the timing of related cash flows. Activity: Specific or distinguishable type of work performed by a component of government for the purpose of accomplishing a function for which the government is responsible. Anuropriation: Legal authorization by the City Council to make expenditures and to incur obligations for specific purposes. Assessed Valuation: A valuation set upon real estate or other property by a government as a basis for levying taxes. Availability Criterion: Principle of the modified accrual basis of accounting according to which revenues may only be recognized when they are collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Basis of Accounting: The timing of recognition, that is, when the effects of transactions or events should be recognized for financial reporting purposes. For example, the effects of transactions or events can be recognized on an accrual basis (that is, when the transactions or events take place), or on a cash basis (that is, when cash is received or paid). Bond: A written promise to pay a specific sum of money, called the face value or principal amount, at a specified date or dates in the future, called the maturity dates, together with periodic interest at a specified rate. Budget: The financial plan for the operation of a program or organization, which includes an estimate of proposed expenditures for a given period, and the proposed means of financing those expenditures. Budget Message: A general outline of the budget, which includes comments regarding the government's experience during the past period, its financial status at the time of the message, and recommendations regarding the financial policy for the coming period. Budgetary Basis of Accounting: The method used to determine when revenues and expenditures are recognized for budgetary purposes. Business -Type Activities: Activities of the City that are financed in whole, or in part, by fees charged to external parties for goods or services. These activities are accounted for as enterprise funds and include the Airport, Transit, Parking, Golf Course, Boat Harbor, Marina, Ambulance, Refuse Collection, Landfill, Transfer Station, Water Pollution Control, and Collection and Drainage Funds. Capital Improvements Program: An annually updated plan or schedule of projected expenditures for public facilities and improvements which includes estimated project costs, sources of funding, and timing of work over a five-year period. For financial planning and general management, the program is presented as a plan of work and proposed expenditures, and is the basis for appropriation requests and bond issues. 294 Capital Outlay: Fixed assets which have a value of $300 or more and have a useful economic lifetime of more than one year. Capital Projects Fund: Fund used to account for financial resources to be used for the acquisition or construction of major capital facilities. Commodities: Supplies required by the municipality in order to perform the services to its citizens. Community and Economic Development Function: Government function that provides for planning and development of the City including the social, physical and economic needs of the City. Activities included in this function are Planning, Zoning and Building Safety, Economic Development and the Municipal Housing Programs. Contractual Services: Services other than employee services such as contractual arrangements and consultant services, which may be required by the municipality. Culture and Recreation Function: This function promotes the general 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 We expected to extend over more than one fiscal period. The process of allocating the cost of a capital asset to the periods during which the asset is used is called depreciation. Encumbrances: Obligations in the form of purchase orders, and/or contracts, which are chargeable to an appropriation and for which a part of the appropriation is reserved. Enterprise Fund: A fund established to account for operations that are financed and operated in a manner similar to private business enterprises. The intent of a governing body is that the cost of providing goods and services to the general public on a continuing basis be financed or recovered primarily through user charges or where the governing body has decided that periodic determination of revenues earned, expenses incurred and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes. Expenditures: The cost of goods received or services rendered for the government unit. For the City of McHenry, expenditures are charged against an appropriation when incurred, not when paid. Fiscal Policy: The City of McHenry's policy with respect to taxes, spending and debt management as they relate to government services, programs, and capital investments. Fiscal Year: A twelve-month period to which an annual operating budget applies. 295 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 aself-balancing set of accounts recording cash and other financial resources together with all related liabilities and residual equity or balances and changes therein which are segregated for the purpose of carrying out specific activities or obtaining certain objectives in accordance with special regulations, restrictions or limitations. Fund Balance: Funds remaining after the application of available revenues and resources to support expenditures for the fund. General Fund: A fund used to account for all financial resources except those required to be accounted for in another fund. General Government Function: Function that provides for the operation of the government and assures the general administration of the municipality. Activities included in this function are mayor and council, legal services, city administrator, human resources, wellness program, finance, computer operations, risk management, and buildings and grounds. General Obligation Bonds: Bonds for the payment of which the full faith and credit of the issuing government are pledged. Goal: Broad statement of desired results for the city, department, and/or activity relating to the quality of services to be provided to the citizens of McHenry. Governmental Funds: Funds generally used to account for tax -supported activities. There are five different types of governmental funds: the general fund, special revenue funds, debt service funds, capital projects funds, and permanent hinds. Health and Social Services Function: Government function which provides for assistance to service agencies involved in providing health and social services in the community. For the City, this function includes the Economic Well -Being activity. Intergovernmental Revenues: Revenue from other governments, primarily in the form of Federal and State grants, but may also be payments from other local governments. Internal Service Fund: A fund used to account for the financing of goods and services provided by one department or agency to other departments or agencies of a government on a reimbursement basis. 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 maybe increased, decreased, or remain the same depending upon the needs, alternatives, and available resources. 296 L v : The total amount of taxes, special assessments, or service charges imposed by a government to support governmental activities. Modified Accrual Basis of ACCOuntln6: Basis of accounting according to which (a) revenues are recognized in the accounting period in which they become available and measurable and (b) expenditures are recognized in the accounting period in which the fund liability is incurred, if measurable, except for unmatured interest on general long-term debt and certain similar accrued obligations, which should be recognized when due. Objectives: Specific measurable achievements that an activity seeks to accomplish within a given time frame, which are directed to a particular goal. An objective should be stated in terms of results, not processes or activities. For the City of McHenry, departmental objectives are included in the department's budget request. Ordinance: A formal legislative enactment by the governing body of a municipality. Performance Measurement: Commonly used term for service efforts and accomplishments reporting. Permanent Funds: A fiduciary fund type used to report resources that are legally restricted to the extent that only earnings, and not principal, may be used for purposes that support the reporting government's programs. Personal Services: Expenditures for salaries, wages, and related employee benefits for persons employed by the municipality. Proprietary Funds: Funds that focus on the determination of operating income, changes in net assets (or cost recovery), financial position, and cash flows. There are two different types of proprietary funds: enterprise funds and internal service funds. Public Safety Function: Government function that provides for services to reduce the amount and effects of external harm to individuals and damage to property, and in general to promote an atmosphere of personal security from external events. Police, animal control, communications, fire, and civil defense activities are included in this function. Public Works Function: Government function that provides for safe and well -maintained infrastructure for the City. Activities included in this function are public works administration, roadway maintenance, snow and ice control, street cleaning, traffic control and engineering. Resolution: An order of a legislative body requiring less legal formality than an ordinance; additionally, it has less legal status. Revenue: Income received by the City of McHenry to support the government's program of services to the citizens. Income includes such items as property tax, fees, user charges, grants and fines. Special Assessment: A compulsory levy made against certain properties to defray part or all of the cost of a specific improvement or service deemed to primarily benefit those properties. Special Revenue Funds: Funds used to account for proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes. 297 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. AG MENT To: McHenry City Council From: Wayne Jett, Jr. Mayor For: April 30, 2018 Annual City Council meeting Re: FY 2018/19 Appointments ATT: APPLICATIONS The following appointed municipal officers as defined in the McHenry Municipal Code are presented for appointment/reappointment with the advice and consent of the City Council. Names followed by an asterisk denote a new appointment and application attached. Administration Expiration City Administrator Derik Morefield 04/30/21 Finance Director/City Treasurer Carolyn Lynch 04/30/19 Director of Public Works Jon M. Schmitt 04/30/19 Municipal Consulting Firms Corporate Attorney Zukowski, Rogers, Flood & McArdle 04/30/19 Labor Attorney Ottosen Britz Kelly Cooper &Gilbert, Ltd 04/30/19 Traffic Court Attorney Patrick J. McAndrews 04/30/19 Administrative Adjudication Officer Harry Semrow 04/30/19 Boards and Commissions Expiration Economic Development Commission: Pat Arnold 04/30/19 (1-year term) Bobbie Baehne (Chair) 04/30/19 Nick Bionda 04/30/19 Robert Jessup (V-Chair) 04/30/19 Jeff Grubich * 04/30/19 Michael Mrachek 04/30/19 Planning/ and Zoning Commission: (1-year term) Landmark Commission: (3-year term) Student Member 1-Yr Term Board of Police Commissioners: (3-year term) Police Pension Board of Trustees (2-year term) Standing Committees of the Council Community Development Committee: Finance and Personnel Committee: Parks and Recreation Committee: Public Works Committee: * New Appointment, Application Attached Jason Sterwerf 04/30/19 Alderman Jeffrey Schaefer 04/30/19 Joseph Doherty 04/30/19 Art Gurda * 04/30/19 Susan Miller 04/30/19 Michael Sobotta 04/30/19 Shawn Strach (Chair) 04/30/19 Roger Thacker (V-Chair) 04/30/19 James Walsh 04/30/19 Celeste Heidemann 04/30/21 George Lamm 04/30/21 Gerhard Rosenberg 04/30/21 Patricia Schaefer 04/30/21 Jeff Varda 04/30/21 Patrick Wirtz (Chair) 04/30/21 Caleb Smith 04/30/19 Richard Huber (Chair) 04/30/21 Jon Meyer 04/30/20 Chair Condon, Devine, Santi Chair Curry, Mihevc, Schaefer Chair Schaefer, Devine, Condon Chair Santi, Schaefer, Mihevc City of McHenry Application for Committee, Commission or Board Mail or Deliver to: Office of the Mayor, City of McHenry, 333 South Green St, McHenry IL 60050 Application for Appointment to CG?/C?•'f'/r C �P-xlydwr Committee/Commission/Board. Name: Jj / (! ; 'rk ✓fC L� Address: 3ZI�/ Phone: Home 67 "F7/3 L' Work City Resident Since:' /9 `/ 5' 2. In this Section please use P for Presently; F for Formerly: Elected or Appointed Positions Held: Member of Organizations (list offices held): Spouse: ��ayruf�Crrrri� c��� �a7 Formal Education: 73,57, !"�.�!l>�k.G'%G?^hLv?7- l�"'fi/-�r�:Yf' '_ �t✓O�.Ct7%'✓G1%�7) l.�%/11U�%(1 ��.Gt"�f�s'i 047 7 3. Do you or any of your close family or business connections own, hold stock in, serve as director of or work for any business which provides products or services to: City of McHenry Other Government Entity. If yes, please identify and explain: A4 we �4e �f C /�'f�F ( C61 C, > C � 1 � i+7rr. � �rr i l :� ��! % f7�' r� A✓lt, yl A,,p 4. Do you or any of your close family or business connections serve on any Committee, Commission, Board or otherwise with an organization or agency which has, or may have, any business or personal transactions with the Committee, Commission or Board to which you are making application? N69 If "yes" please identify and explain: 5. Are you generally familiar with the functions and workings of the Committee/Commission/Board to which you are making application?e s Have you attended meetings of this body? N0 _ What prompted you to apply for consideration of appointment to this position? //r'C 7] Signed: What studies, responsibilities, accomplishments, publications''or community projects have you participated in or initiate which you feel may qualify you for this position? Other comments: Other information you would like to include maybe attached to this application appointments to Committees/Col ssionsBoard will interview each applicant available: _ !L%/�. dIe#a �'4 G rrn /", Mayor, being responsible for onall . Whit days and times are you Date: fL�� The Mayor and thk �'i''ty++ of McHenry wish to thank you for your in''te``,r t. It is appreciated! Date Received: `i Date Considered:Action: Revised: 3/16105 City gjmmenty Application for Committee, Commission or Board Alan or Deliver to: Office of the Mayor, City of McHenry, 333 South Green St, 1tilcHenry IL 60050 Application for Appointment to _Planning and Zoning Committee/ConintissiotiBoard. Name: An t Guda _Spouse: Andrea Garda Address:4508 Willow Lane Phone: Home NONE _ Work _815-344-7660 Mobile _815-560-2229 City Resident Since: _1992 Eniail _artgurda@gnnaii.coni 2. In this Section please use P for Presently; F for Formerly: Elected or Appointed Positions Held: klember of Organizations (list offices held) _none Occupational Background:_retail and online sales Formal Education: High School GED 3. Do you or a►iy of your close family or business connections own, hold stock in, serve as director of or work for any business which provides products or services to: City of kIcHenry fires Other Govemnlent.Entity. If yes, please identify and explain: City of McHenry uses us as a supplier for parts 4. Do you or any of your close family or business connections serve on any Committee, Comm�ission, Board or otherwise with an organization or agency which has, or may have, any business or personal transactions with the Committee, Commission or Board to which you are making application? NO. if "yes" please identify and explain: 5. Are yott generally familiar with the functions and workings of the Committee/Commission/Board to which you at•e making application? NO Have you attended meetings of this body? NO What prompted you to apply for consideration of appointment to this position? I see Into of great things happauing and would like .to be involved. What studies, responsibilities, accomplishments, publications or conmumlty projects which you feel may qualify you for this position? Other comments: have you participated in or initiated Other information you would like to inchtde may be attached to this application. The I�fayor, being responsible for appointments to Connnittees/ConunissionsBoard will interview each appllcattt personally. What days and times are you available: anyday after 4:00 p.ni. Signed: The hmpor arrd t/re, JCitl of r1l I�enr�nrislr !o tlrmrk yarn for>>ourLi'nn resl.11 's npprecinlerl! Date Received: 'T o�.3 tS Date Considered: Actioll: Revised: 3116105 Wayne S. Jett, Mayor McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2100 Fax: (815) 363-2119 WHenry wjett@ci.mchenry.il.us AGENDA SUPPLEMENT DATE: April 30, 2018 T0: City Council FROM: Wayne S. Jett, Mayor RE: Renewal of City Administrator Employment Agreement The existing Employment Agreement for City Administrator Derik Morefield expires on April 30, M18. The contract covered the period from May 1, 2013 through April 30, 2017 and included an automatic one-year extension. With my transition of the position of Mayor, from April 30, 2017 to May 1, 2017, the one-year extension option was exercised to provide me with the opportunity to evaluate the position. In summary, I believe that the position of City Administrator is important to the daily activities of the city. I have been able to establish a great working relationship with Administrator Morefield and we consult on a daily basis to make sure that the direction of the Council is implemented. During the past year, he has provided me with valuable insight into the workings of municipal government, the budget process, and we have worked closely at increasing efficiencies in various departments. Importantly, I trust Administrator Morefield and value his service not only to me but to the community. In reviewing the existing agreement with Administrator Morefield, in addition to updating dates from the previous agreement, we agreed that one specc portion of the document should be revised - Section 3 Termination and Severance Pay, (a) currently states: In the event Employee is terminated by the City prior to the expiration of the contract term, Employee shall be paid as severance, continue semi-monthly payments for six (6) months thereafter in an amount equal to the Employee's then semi-monthly salary prior to separation, less employment taxes withheld. During any severance period, Employee and his dependents shall also remain in the group health plan (medical, dental, vision and wellness) and continue receiving the life insurance benefits provided to the Employee prior to separation. Employee's rights under C.O.B.R.A. shall commence at the end of any severance period. The City of McHenry is dedicated to providing the citizens, businesses and visitors of McHenry with the highest quality of programs and services in acustomer-oriented, efficient and fiscally responsible manner. This represents a continuance of approximately 26 weeks of salary to the separated employee. Instead, the language has been changed to read as follows: In the event Employee is terminated by the City prior to the expiration of the Agreement term, Employee shall be paid as severance a lump sum payment equal to all earned/accrued vacation and sick time accumulated as of the date of termination ("Severance'). City Administrator Morefield currently has 136 hours of vacation time and 440 hours of sick leave. Therefore, the current separation payment would be for 72 days or 14.4 weeks of vacation and sick time. Administrator Morefield receives 160 hours (4 weeks) of vacation time each year and earns sick leave at a rate of 8 hours per month (12 days per year). Administrator Morefield does not roll over vacation time from year4o-year. The change as presented reduces the financial risk to the city by approximately 12 weeks (3 months) and reflects payment for benefits that have already been earned by the employee. City Administrator Morefield's current salary is $157,377.52. Per the agreement this only changes based on the same criteria as other non -bargaining unit employees of the city. The term of the agreement is May 1, 2018 through April 30, 2021. Council will be asked to approve this Amended and Restated Employment Agreement following his reappointment as City Administrator. CITY OF MCHENRY - CITY ADMINISTRATUK EMPLOYMENT AGREEMENT April 24, 2010 This Amended and Restated Employment Agreement ("Agreement") is entered into by and between the City of McHenry ("City") and William Derik Morefield ("Employee") this 301h day of April, 2018. Recitals Whereas, the City and Employee entered into a written Employment Agreement dated April 30, 2013 ("Original Agreement") and both parties hereto desire to fully amend and restate the Original Agreement by execution of this Agreement. NOW THEREFORE, in consideration of the agreements and promises made herein, the adequacy and sufficiency of which the parties hereto acknowledge as being received, the City and Employee agree as follows: 1. Duties. City agrees to continue employing Employee as the City Administrator to perform functions and duties specified in the McHenry City Code and to perform other duties and functions as its City Council shall from time to time assign. 2. Term. This Agreement shall remain in effect from May 1, 2018 through Apri130, 2021. Unless written notice of their intent not to renew this Agreement is given by either party to the other, 90 days prior to the termination date as hereinabove provided, this Agreement shall be extended on the same terms and conditions for a period of one year. 3. Termination and Severance Pay. As provided herein, either party hereto may terminate this Agreement at any time for any reason or no reason at all, it being acknowledged that Employee is an at will employee of the City. a. In the event Employee is terminated by the City prior to the expiration of the Agreement term, Employee shall be paid as severance a lump sum payment equal to all earned/accrued vacation and sick time accumulated as of the date of termination ("Severance"). b. In the event Employee is terminated because of an action deemed by a court of law to constitute any illegal act related to his duties hereunder, City shall have no obligation to pay the Severance. Upon the City Council's determination that grounds for such illegal act exists, all Severance payments may be withheld until a court of law enters an order directing payment to be made hereunder. c. The following events shall be deemed, at Employee's option, to be the City's termination of this Agreement thereby activating the severance payment obligations of the City: 1) Upon the City reducing salary or other financial benefits of Employee in a greater percentage than applicable across-the-board reduction for all employees of the City; 2) City's wrongful refusal to comply with any payment obligations of the City herein; 3) Employee resigns following instructions or suggestions by the City Council that he resign, which instruction or suggestion is documented within the minutes of a City Council meeting, or 4) upon the City Council determining that Employee is permanently disabled or otherwise unable to perform his duties because of sickness, accident, injury, mental incapacity or health for a period of eight successive weeks beyond any accrued sick leave. d. In the event the Employee voluntarily resigns from the City Administrator position, he shall be entitled to no Severance, however, City Administrator shall still be entitled to all benefits provided for in the City's personnel manual. 4. Salary. a. Through the remaining term of this Agreement (i.e., through Apri130, 2021) this Agreement shall be deemed to be automatically amended to reflect any future salary and/or benefit adjustments that are provided through any percentage, including performance/merit increase, that are approved for the general workforce in the City's personnel manual, or adjusted deemed appropriate by the City Council based on the Employee's annual performance evaluation. 5. Vacation, Sick Time and Other Benefits. The Employee shall receive vacation, sick leave and other benefits as annually provided by in the City's Personnel Policies and Procedures Manual at the same level as other employees of the City. 6. Performance Evaluation. The City Council shall review and evaluate the performance of the Employee annually, preferably in April. 7. Residency Requirements. Employee shall not be required to live within the corporate boundaries of the City. However, Employee shall live within a reasonable distance of the corporate boundaries to be mutually agreed upon by the City and Employee. 8. Automobile. Employee shall provide, maintain, repair and insure a vehicle for his official use while performing City business, at his own expense, for which he shall receive a monthly car allowance of $400, payable with the first paycheck of each month. 9. Health and Life Insurance. a. The City shall pay for health, dental, and vision insurance for the Employee and his dependents in the same manner generally provided to other employees. b. The City shall purchase and pay the required premiums on a $100,000 term life insurance policy with the beneficiary named by the Employee to receive the benefits paid. This policy shall be in effect for the duration of time the Employee is employed by the City. 2 10. Dues, Subscriptions and Professional Development. The City shall budget for and pay for: a. Professional dues, subscriptions and professional development costs for Employee's membership in the International City/Council Management (ICMA), the Illinois City/County Management Association (ILCMA) and participation in the credentialed manager program; b. Travel and subsistence expenses of Employee for professional official travel, meetings and occasions adequate to continue the professional development of the Employee and to adequately pursue necessary official functions for the City, including but not limited to the ICMA Annual Conference, the ILCMA Annual Conference and such other national, regional, state and local governmental groups and committees thereof which the Employee serves as a member; c. Travel and subsistence expenses of Employee for short courses, institutes and seminars that are necessary for his professional development and for the good of the City; and d. No more than two memberships plus expenses incurred by Employee of such local civic clubs or organizations chosen by Employee. 11. Personnel Rules. Unless otherwise provided herein, the Personnel rules of the City, as in effect from time to time, shall apply to the employment of Employee. Indemnification. The City shall defend, save harmless, and indemnify Employee as provided by any City ordinance or relevant Illinois law and against any lawsuit, claim, demand or other legal action arising out of an alleged act or omission in the performance of Employee's duties as City Administrator. 12. Miscellaneous. a. The City shall pay the full cost of any fidelity or other bonds required of the Employee under any law or ordinance and this Agreement shall be binding upon and inure to the benefit of the heirs at law and executors of Employee. The text herein shall constitute the entire Agreement between the parties. b. If any provision, or any portion thereof, contained in this Agreement is held to be unconstitutional, invalid, or unenforceable, the remainder of this Agreement, or portion thereof, shall be deemed severable, shall not be affected, and shall remain in full force and effect. Employer: Employee: I� Wayne S. Jett, Mayor William Derik Morefield 3 ATTEST: Debra Meadows, Deputy City Clerk Z:�IvI�McHenryCityoflAdministrator�EmploymentAgmtMorefieldAmended4 docx 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 AGENDA SUPPLEMENT DATE: April 30, 2018 T0: City Council FROM: Derik Morefield, City Administrator David McArdle, City Attorney RE: Authorization to Execute a Standstill aka Tolling Agreement Between Meyer Material Company and the City of McHenry AGENDA ITEM SUMMARY: The purpose of this agenda item is to request authorization to execute a Standstill aka Tolling Agreement between Meyer Material Company and City of McHenry to extend operations at the site until August 6, 2018 while the City and Meyer continue negotiations. BACKGROUND/SUMMARY: As you know, the City is working with Meyer to deal with its petitions to extend the pending annexation agreements and conditional use permits. The current agreements and permits expire on May 4, 2018 and discussions with Meyer will not be completed by then. To avoid the expiration of the agreements and permits, Meyer and the City drafted the attached tolling agreement which will, in effect, stop the expiration of the agreements and permits until August 6, 2018, unless sooner terminated with 45 days' notice, to permit discussions to continue. During the tolling period, Meyer agreed to change its morning hours of operation to 6 a.m. for truck loading and 7 a.m. for processing and crushing of material. The City Attorney is recommending the City Council approve the proposed Tolling Agreement to permit discussions to continue without the annexation agreements and conditional use permits expiring. RECOMMENATION: Therefore, should Council concur, it is recommended that a motion be made to authorization the execution of the attached Standstill aka Tolling Agreement between Meyer Material Company and City of McHenry. The City of McHenry is dedicated to providing the citizens, businesses and visitors of McHenry with the highest quality of programs and services in acustomer-oriented, efficient and fiscally responsible manner. ORDINANCE NO.ORD-18-1869 AN ORDINANCE AUTHORIZING THE MAYOR'S EXECUTION OF A STANDSTILL aka TOLLING AGREEMENT BETWEEN MEYER MATERIAL COMPANY AND THE CITY OF MCHENRY TO EXTEND OPERATONS AT THE SITE UNTIL AUGUST 6, 2018 WHEREAS, the City of McHenry, McHenry County, Illinois, is a home rule municipality as contemplated under Article VII, Section 6, of the Constitution of the State of Illinois, and the passage of this Ordinance constitutes an exercise of the City's home rule powers and functions as granted in the Constitution of the State of Illinois. NOW, THEREFORE, BE IT ORDAINED by the CITY COUNCIL of the CITY OF MCHENRY, McHenry County, Illinois, as follows. SECTION 1: The City Council has determined it is in the best interest of the City to authorize the Mayor's execution of a Standstill aka Tolling Agreement between Meyer Material Company and the City of McHenry to extend operations at the site until August 6, 2018 as attached hereto and made part hereof as Exhibit A. SECTION 2: The Mayor is hereby authorized to affix his signature as Mayor to Exhibit A for the uses and purposes therein set forth. SECTION 3: All Ordinance or parts thereof in conflict with the terms and provisions hereof are hereby repealed to the extent of such conflict. SECTION 4: This Ordinance shall be published in pamphlet form by and under the authority of the corporate authorities of the City of McHenry, McHenry County, Illinois. SECTION 5: This Ordinance shall be in full force and effect from and after its passage, approval, and publication in pamphlet form as provided by law. APPROVED and ADOPTED this 30t1,day of Apri12018. Voting Aye: Voting Nay: Absent: ATTEST: Deputy City Clerk Mayor Exhibit A Agreement STANDSTILL a/k/a TOLLING AGREEMENT This Standstill a/k/a Tolling Agreement ("Tolling Agreement") is made and effective as of this 30th day of April, 2018, by and between Meyer Material Company, LLC ("Meyer") and the City of McHenry ("City"). RECITALS Whereas, Meyer currently operates a commercial sand and gravel extraction and processing business on the south side of Illinois Route 120, in the City, on property it owns, consisting of several parcels depicted and legally described on the attached Exhibit A ("Subject Property"); Whereas, the Subject Property is subj ect to terms of prior annexation agreements, including the following: 1. Ordinance No 76-93--Annexation Agreement dated December 20, 1976 (Parcel A) 2. Ordinance No 77422--Annexation dated October 17, 1977 (Parcel B) 3. Ordinance No 88452--Annexation Agreement dated May 4, 1988 (Parcel C) 4. Ordinance No 90-560--Annexation Agreement dated October 3, 1991 (Parcel D) 5. Ordinance No 98-865--Annexation Agreement dated April 22, 1998 (Parcel E) Collectively ("Prior Annexation Agreements"); Whereas, the Prior Annexation Agreements, are due to expire at midnight on or about May 4, 2018; Whereas, in conjunction with the Prior Annexation Agreements, the Subject Property is also subject to the terms of prior special use permit Ordinances adopted by the City, which regulate the operation of Meyer's commercial sand and gravel business on the Subject Property, including the following: 1. Ordinance No. 88-453 adopted on or about May 4, 1998, extending the term of the special use permit for Parcel C of the Subject Property to May 4, 2008. 2. Ordinance No. 88454 adopted on or about May 4, 1998, extending the term of the special use permit for Parcel B of the Subject Property to May 45 2008. 3. Ordinance No.90-561 adopted on or about August 23, 1990, extending the term of the special use permit for parcel D of the Subject Property to Mayo, 2008. 4. Ordinance Nos. 98-865, 98-867 and 98-868 adopted on or about April 22, 1988 extending the special uses on Parcels B-E of the Subject Property to May 4, 2108. Collectively ("Prior Special Use Ordinances"). Whereas, the Prior Special Use Ordinances are also due to expire at Midnight on or about May 4, 2018. Meyer filed with the City Petitions to extend the Prior Annexation Agreements and Prior Special Use Ordinances ("Meyer's Extension Requests"); Whereas, the City's Plan Commission recommended to the City Council approval of Meyer's Extension Requests; Whereas, two (2) annexation hearings were held by the City Council regarding Meyer's Extension Requests; and Whereas, the parties hereto agree they need additional time to negotiate the terms of extending the Prior Annexation Agreements and Prior Special Use Ordinances and each wish to work cooperatively in an effort to address the possible extensions without resorting to litigation, if possible, but without relinquishing or prejudicing their respective rights and positions. NOW THEREFORE, in consideration of the promises and agreements stated herein, the adequacy and sufficiency of which is acknowledged as being received by the parties hereto, Meyer and the City agree as follows. 1. The recitals set forth above are fully incorporated into this Agreement. 2. During the term of this Tolling Agreement, Meyer shall change the time of its business operations on the Subject Property as follows: All truck loading operations shall start no earlier than 6:00 a.m. Monday through Saturday. All processing and crushing operations shall start no earlier than 7:00 a.m. Monday through Saturday. 3. All expiration dates of May 4, 2018, or otherwise, in the Prior Annexation Agreements and Prior Special Use Ordinances, shall be tolled from the April 30, 2018 until August 6, 2018, unless sooner terminated by either party pursuant to paragraph 7, below. 4. All applicable time periods or time related matters, including, but not limited to, statutes of limitations, statutes of repose, or laches, with respect to any claims or causes of action that either party hereto may have against one or the other shall be tolled from April 30, 2018 until August 6, 2018, unless sooner terminated by either party pursuant to paragraph 7, below 5. No party will bring any action or any claim against the other party, until August 6, 2018, unless and until it provides a written 45-day notice to the other party that it is terminating this Tolling Agreement, pursuant to paragraph 7, below. As to any action on any claim brought after the expiration of the tolling period or after any earlier termination of this Tolling Agreement, any party may raise any defense based on any time period or time related matters, except that no claim or defense may include the tolling period of this Tolling Agreement as the basis of a time related defense, including but not limited to statutes of limitation, statutes of repose or laches. 6. No party to this Tolling Agreement makes any admission, expressed or implied, as to the existence or validity of any claims, causes of action, or defenses which are subject to this Tolling Agreement. 7. Any party hereto may terminate this Tolling Agreement on 45 days written notice to the other party. 8. This Tolling Agreement maybe extended or amended only by the express written agreement of the parties. 2 9. The undersigned individuals executing this Tolling Agreement on behalf of their respective parties represent and warrant that said individuals are authorized to enter into and execute this Tolling Agreement on behalf of such parties, and that this Tolling Agreement shall be binding on the party on whose behalf they are executing this Tolling Agreement. All terms and provisions of this Tolling Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective legal heirs, legatees, beneficiaries, representatives, successors and assigns. 10. Any notices and other communications required hereunder shall be in writing and deemed to have been given by electronic mail as follows: If to the City, addressed to: David W. McArdle <dmcardle@zrfinlaw.com>; Derik Morefield <dmorefield@ci.mchenry.il.us>; and Wayne Jett <wjett@ci.mchenry.il.us> If to Meyer: Randi Wille <rtwille@meyermaterial.com>; and Tom Zanck <tzanck@zcwlaw.com> 11. Each party shall bear their own cost and expenses, including attorneys' fees, in the preparation and enforcement of this Tolling Agreement. 12. This Tolling Agreement is governed by Illinois law and venue for enforcement shall exclusively be in the 22"d Judicial Circuit, McHenry County, Illinois. 13. This Tolling Agreement maybe executed in counterparts, which collectively shall be deemed a complete instrument. Email or facsimile copies shall have the same force and effect as an original signature. This Tolling Agreement is the complete agreement of the parties. All prior discussions, negotiations, and writings have been merged into this Tolling Agreement. This Tolling Agreement cannot be modified except in writing. If any portion of this Tolling Agreement is held invalid or illegal, the remaining provisions shall not be affected. City of McHenry Meyer Material Company, LLC By: Its: Mayor David W. McArdle, Attorney for City of McHenry By: Its: Thomas C. Zanck, Attorney for Meyer Material Company, LLC 3