HomeMy WebLinkAboutMinutes - 12/01/2014 - City CouncilREGULAR MEETING
December 1, 2014
Mayor Low called the regularly scheduled December 1, 2014 meeting of the McHenry City
Council to order at 7:00 p.m. In attendance were the following Aldermen: Santi, Glab, Schaefer,
Blake, Wimmer, Peterson and Condon. Absent: None. Also in attendance were City
Administrator Morefield, Director of Economic Development Martin, Deputy City Administrator
Hobson, Director of Finance Lynch, Director of Public Works Schmitt, Chief of Police Jones,
Human Resources Manager Zinanni, City Attorney McArdle and City Clerk Jones. Absent: None.
Mayor Low read the Mission Statement of the City of McHenry.
READING OF THE MISSION STATEMENT BY MAYOR LOW
Mayor Low turned the floor over to Alderman Condon, President of the McHenry Area
CHARACTER COUNTS! Coalition, for presentation of Recognition Awards for outstanding
character to Ms. Aubrey Henning, Ms. Baylon Diebold and Ms. Morgan Lomonacao for their
efforts in forming and manning the “Lemonade Brigade.”
PRESENTATION: CHARACTER COUNTS! RECOGNITION AWARDS
Alderman Condon informed those in attendance that Mayor Low made the
recommendation and nominated the young ladies, their families and helpers in recognition of
the 4-day event which benefited the families of the officers recently injured in the line of duty.
She noted that persons of this caliber are the people making a difference and are the type of
people that make the City of McHenry stand out as a caring community. Alderman Condon
acknowledged the event’s caring spirit in that not only did the event benefit the families of the
officers that were injured but also the family of the man accused was recognized as having
suffered.
Alderman Condon introduced the parents, family members and helpers of the
“Lemonade Brigade” and thanked everyone for their participation.
Mayor Low stated she is very proud to be associated with the City of McHenry. She
noted that many persons, a lot of support, and much planning came together to facilitate the
“Lemonade Brigade” and the event.
No one signed in to speak at the Public Input Session.
PUBLIC INPUT SESSION
A. Transmittal of FY 14/15, Second Quarterly Budget Report;
CONSENT AGENDA
B. Approval of List of Bills
1000BULBS.COM 149.09
ACE TOWING & RECOVERY 400.00
ADAMS ENTERPRISES INC, R 332.38
AIRGAS SAFETY INC 939.90
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December 1, 2014
ALEXANDER EQUIPMENT COMP 239.40
ARAMARK 96.74
ARIES INDUSTRIES INC 3,397.67
AT&T 1,158.34
AT&T LONG DISTANCE 144.65
AUTO TECH CENTERS INC 229.54
BAKER & SON CO, PETER 4,879.19
BAXTER & WOODMAN 5,913.75
BLACKSTONE LANDSCAPE INC 2,237.25
BUSS FORD SALES 482.13
CARMICHAEL CONSTRUCTION 43,248.96
CASTLEMAN, AMBER 105.00
CENTEGRA OCCUPATIONAL HE 285.75
CLESEN, NICHOLAS 266.04
COLLEGE OF DUPAGE-ACCTS 295.00
COMED 614.87
CONSTELLATION NEWENERGY 25,135.98
COPY-RITE INC 60.84
CRESCENT ELECTRIC SUPPLY 319.68
DELL MARKETING LP 891.23
DIRECT ENERGY BUSINESS 118.47
DOCUMENT IMAGING DIMENSI 228.00
DURA WAX COMPANY INC, TH 74.70
ED'S RENTAL & SALES INC 99.90
ELECTRONIC ENTRY SYSTEMS 611.72
FAMILY TAILOR SHOP 19.00
FASTENAL 40.13
FGM ARCHITECTS 68,990.52
FIRST AMERICAN BANK 44.18
FISCHER BROS FRESH 2,344.00
FOXCROFT MEADOWS INC 795.00
FUTURE LINK OF ILLINOIS 980.45
GAIAM AMERICAS INC 151.01
GALLS LLC 52.94
GLEN GALIS CONCRETE INC 1,500.00
GRAINGER 108.15
GROWER EQUIPMENT & SUPPL 59.14
HARPER, MICHAEL 450.00
HAWKINS INC 3,093.28
HD SUPPLY WATERWORKS 1,033.00
HOUFF COMPANY, THE ROY 373.60
HRGREEN 48,598.25
ILLINOIS DIRECTOR OF 2,276.00
JETTS HEATING & AIR INC 473.00
JONES, JOHN 204.24
KARKI, STEVE 84.00
KIMBALL MIDWEST 3,268.21
KIWANIS CLUB OF MCHENRY 60.00
LAMZ, TYLER 210.31
LANG -CADILLAC-BUICK-GMC 51.07
LANGE, MICHAEL 107.99
LEXISNEXIS 120.50
LIFEGUARD STORE INC, THE 93.13
LOITERMAN, JONATHAN B 500.00
MCANDREWS PC, THE LAW OF 5,175.00
MCAULIFF & SEMROW PC 412.50
MCCAFFERTY, CHARITY 130.00
MCCANN INDUSTRIES INC 349.50
MCHENRY ANALYTICAL WATER 510.00
MCHENRY COUNTY RECORDER 250.00
MCHENRY FIRESTONE 350.26
MCHENRY POWER EQUIPMENT 249.99
MCHENRY SPECIALTIES 90.00
MCHENRY TOWNSHIP ROAD DI 8,541.20
MCMASTER-CARR SUPPLY CO 82.05
MEADE INC 3,786.00
MEYER MATERIAL COMPANY 1,570.44
MID AMERICAN WATER OF WA 985.52
MIDCO 170.00
MOTOROLA SOLUTIONS - STA 1,902.00
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December 1, 2014
NICOR GAS 7,487.37
NORTH SUBURBAN WATER 90.00
NORTHERN ILLINOIS POLICE 43.20
NORTHERN ILLINOS WINTER 375.00
NWBOCA 65.00
OLSSON ROOFING COMPNAY I 64,817.90
ONEYS TREE FARM 330.00
OTTOSEN BRITZ KELLY COOP 550.00
PARKSON CORPORATION 906.94
PETROLIANCE LLC 12,137.60
PETTIBONE & CO, P F 1,121.41
PITEL SEPTIC INC 450.00
PITNEY BOWES INC 283.97
POSTMASTER MCHENRY IL 78.40
RESERVE ACCOUNT 984.51
REX 24/7 TOWING 40.00
ROBERTS, PATRICIA J 480.00
SECRETARY OF STATE 202.00
SIRCHIE FINGER PRINT LAB 137.99
STAN'S FINANCIAL SERVICE 2,698.15
STAPLES ADVANTAGE 185.59
STATE TREASURER IDOT 5,997.33
SUNNYSIDE COMPANY 623.82
TONYAN, LUCY 756.00
TOPS IN DOG TRAINING COR 299.99
TYLER TECHNOLOGIES 4,445.70
ULTRA STROBE COMMUNICATI 764.90
UNITED PARCEL SERVICE 30.85
WASTE MANAGEMENT OF WI P 7,636.29
ZARNOTH BRUSH WORKS INC 471.50
ZUKOWSKI ROGERS FLOOD & 21,036.50
GRAND TOTALS 389,119.64
FUND TOTALS
GENERAL FUND 134,409.26
MOTOR FUEL TAX FUND 10,183.50
RECREATION CENTER FUND 68,990.52
CAPITAL IMPROVEMENTS FUND 2,314.00
CAPITAL EQUIPMENT FUND 4,445.70
WATER/SEWER FUND 121,190.20
UTILITY IMPROVEMENTS FUND 30,666.25
RISK MANAGEMENT FUND 4,659.00
INFORMATION TECHNOLOGY FUND 2,939.21
RETAINED PERSONNEL ESCROW 9,322.00
TOTALS 389,119.64
Motion by Wimmer, seconded by Blake, to approve the Consent Agenda, as presented.
Voting Aye: Santi, Glab, Schaefer, Blake, Wimmer, Peterson, Condon.
Voting Nay: None.
Absent: None.
Motion carried.
1. REVISED BLUE CROSS BLUE SHIELD PPO & HRA, AND RENEW HMO PLANS FOR
HEALTH COVERAGE IN THE AMOUNT OF $1,783,214.04;
RECOMMENDATION TO APPROVE 2015 HEALTH INSURANCE COVERAGE:
2. REVISED IN-HOUSE DEDUCTIBLES FOR HRA PLAN IN THE AMOUNT OF $92,500;
3. BLUE CROSS BLUE SHIELD PPO DENTAL PLAN IN THE AMOUNT OF $103,710.24;
4. RENEW VSP VISION PLAN FOR THE AMOUNT OF $11,152.80; AND
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December 1, 2014
5. IMPLEMENTATION OF “OPT-OUT” PROGRAM FOR MEDICAL INSURANCE
COVERAGE.
City Administrator Morefield informed the Council that the City has offered employees
the choice of three medical plans for the past five years, together with vision and dental
insurance.
City Administrator Morefield stated that annually the City administration works through
its insurance broker to obtain the most competitive quotes using the existing plans as a base.
Once the quotes are received, the broker works on the City’s behalf to negotiate the lowest
possible rates for the various insurance coverage options. The City Administration then reviews
the quotes submitted with the broker and conducts an analysis of various models and
structures the insurance plan.
Health Insurance:
For the coming year, Staff is recommending approval of the BC/BS revised PPO Plan, the
revised HRA Plan and the renewed HMO Plan. During the 2015 plan year, the estimated total
BC/BS expenses will be $1,875,714.04 (included in the total is $92,500 for the 100% excess
deductible reimbursement on the HRA Plan). This is an approximate $209,847.20 or 12.6%
increase over the previous plan year.
Dental Insurance:
The dental benefit currently offered to City employees is a Guardian Dental PPO Plan.
The Plan provides for in-network and out-of-network benefits. Staff obtained quotes from the
market for comparable dental PPO plans through the insurance broker. The Guardian renewal
quote is 28% higher than current. For the plan year, Staff is recommending Blue Cross Blue
Shield PPO Plan. The 2014 estimated total BC/BS premiums will be $103,710.24, which is
approximately $7,236 or 7.5% higher than last year.
Vision Insurance:
Vision Services Plan (VSP) provided a two rate guarantee last year. The 2015 estimated
total vision premiums will be $11,152.80, which is the same as last year.
City Administrator Morefield stated that the combined cost for Health, Dental and
Vision insurance for the 2015 plan year is $1,990,581.08. Additionally, the City will contribute
$674,000 towards Local 150 insurance.
City Administrator Morefield informed Council that in addition to the renewals the City
Administration would be implementing an “Opt Out” program in 2015. This Plan will offer a
cash incentive to employees who are able to waive health insurance coverage and reduce the
number of dependents on the Plan. The “Opt Out” Plan is currently being developed and
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December 1, 2014
implemented with no additional cost to the City. It is estimated that the “Opt Out” Plan could
save the City as much as $21,000 annually.
Alderman Condon recognized Staff’s diligent efforts to keep premiums reasonable.
Responding to an inquiry from Alderman Santi, City Administrator Morefield
acknowledged that the “Opt Out” Plan has not yet been implemented. Additionally, responding
to Alderman Santi’s inquiry regarding whether the broker received a commission, Ms. Zinanni,
Director of Human Resources, stated that the broker receives a percentage from the supplier.
Motion by Condon, seconded by Wimmer, approving the:
1. Revised Blue Cross Blue Shield PPO & HRA, and renew HMO Plans for Health
Coverage in the amount of $1,783,214.04;
2. Revised in-house deductibles for HRA Plan in the amount of $92,500;
3. Blue Cross Blue Shield PPO Dental Plan in the amount of $103,710.24;
4. Renewal of the VSP Vision Plan in the amount of $11,152.80; and
5. Implementation of “Opt-Out” Program for medical insurance coverage.
Voting Aye: Santi, Glab, Schaefer, Blake, Wimmer, Peterson, Condon.
Voting Nay: None.
Absent: None.
Motion carried.
City Administrator Morefield informed Council that approximately 55.7% of the Fiscal
Year 2014/2015 budgeted General Fund Revenues are derived from Sales Tax, Income Tax and
Property Tax receipts, with the remaining approximate 44.3% coming from such sources as
miscellaneous other intergovernmental taxes, grants, franchise fees, licenses and permits, fines
and forfeitures, and charges for services.
RESOLUTION SETTING PROPERTY TAX LEVY REQUEST FOR 2014 AT $4,850,335, REPRESENTING
A 1.9% INCREASE; AND ESTABLISH THE DATE OF DECEMBER 15, 2014 TO CONDUCT A PUBLIC
HEARING TO CONSIDER APPROVAL OF THE PROPERTY TAX LEVY.
The City of McHenry has faced a number of challenges during the last decade that
resulted in annual budgets relying on substantial contributions from the General Fund balance
for the creation of a balanced budget. From the end of FY02/03 until the end of FY09/10, the
General Fund balance decreased from $5,980,951 to $2,511,330, a reduction of just over 58%.
Adding to this, the start of the economic recession and additional stress was placed on the
City’s budget due to declines in Income Tax and Sales Tax receipts, together with declines in the
housing market resulting in limited new Property Tax revenues.
The City has limited expenditures through a number of cost-reduction measures
including:
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December 1, 2014
• A 15.5% reduction in the full-time workforce (from 133 full time employees to 112 full
time employees;
• Reductions in supplies and contractual services;
• The elimination of travel and training;
• Limited increases for non-collective bargaining unit employees;
• Concessions in collective bargaining unit contracts;
• Deferral of capital equipment (vehicles, computers, etc.); and
• Deferral of capital improvement (public facilities, local roadways, etc.).
Mindful of the economic conditions for property owners, the City of McHenry has
maintained a “flat” property tax rate for FY12/13, FY13/14 and FY14/15. While higher than
anticipated Income Tax and Sales Tax revenues have been realized during the last three years,
these sources remain susceptible to a fluctuating economy and, as such, the revenues derived
are budgeted conservatively each year. Due to known increases in annual operating costs a
more stable annual operating revenue should be identified to ensure the development of a
“balanced budget” document.
The City of McHenry is a “Home Rule” community and is no longer subject to the
Property Tax Extension Limitation Law (PTELL), which limits increases to residents’ property
taxes by preventing a local government’s property tax levy from growing at a faster pace than
the rate of inflation, or 5%, whichever is less. However, the City of McHenry has continued to
follow PTELL for establishing their property tax levy.
The City Administration is recommending an increase in the City’s property tax levy from
$4,761,635 in 2013 to the PTELL amount of $4,850,335. This represents an increase of $88,700
or 1.9% (1.5% inflationary and .4% new construction). Based on this information, it is estimated
that the owner of a home valued at $200,000 in the City of McHenry would pay an additional
$26.55 per year in taxes to the municipality. This amount does not take into consideration the
estimated decline in Equalized Assessed Value (EAV). When the EAV declines the tax rates must
go up in order to fully fund the property tax levy because the same amount of money needs to
be collected across the new lower values. The 1.9% increase is reflective of the proposed
municipal rate increase and the potential EAV decline, but does not take into consideration
actions taken by the other taxing jurisdictions that comprise the total property tax bill. City
Administrator Morefield noted that the 2013 portion of a resident’s tax bill directed to the City
of McHenry was only 6.85% of the total amount.
The City must provide the amounts required for the property tax levy prior to the end of
the calendar year so the funds generated through the revenue mechanism will become
available during the 2015/2016 fiscal year. The levy request must be approved by the City
Council and submitted to the McHenry County Clerk by the last Tuesday in December, which
this year (2014) is December 30th. City Administrator Morefield stated that with this target
date, the 2014 Property Tax Resolution indicating the levy amount and scheduling of a Public
Hearing is being presented to Council at this meeting and upon adoption of the Resolution, the
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Property Tax Levy Public Hearing and consideration of the levy amount will take place at the
meeting of the City Council on December 15, 2014.
Responding to an inquiry from Alderman Peterson regarding the current amount of
reserves in the General Fund, City Administrator Morefield responded that the reserves are
currently at 50%.
Alderman Glab expressed concern that the Council appears to always look to a property
tax increase when seeking additional revenue. Alderman Glab suggested a communication tax
might be considered. He opined that he supports the property tax levy remaining flat.
Alderman Blake opined that he supports a Public Hearing on the matter. He stated he is
not comfortable raising property taxes, which are already prohibitive in McHenry County.
Motion by Wimmer, seconded by Peterson, 1) approving the Resolution setting the levy
request for 2014 (collected in 2015) at $4,850,335; and 2) establishing the date of Monday,
December 15, 2014 as the date to conduct a Public Hearing and consider approval of the 2014
Property Tax Levy.
Voting Aye: Santi, Glab, Schaefer, Blake, Wimmer, Peterson, Condon.
Voting Nay: None.
Absent: None.
Motion carried.
Mayor Low announced that this year there were 800 participants in the Turkey Trot for
Hospice 5K on Thanksgiving morning.
MAYOR STATEMENT AND REPORT
There were no Committee Reports.
COMMITTEE REPORTS
There were no Staff Reports.
STAFF REPORTS
Alderman Glab inquired about the traffic light at Dartmoor and Crystal Lake Rd. City
Administrator Morefield responded that Staff is currently in the process of developing the CIP.
A traffic light at that intersection previously did not meet the safety warrants. Staff is making a
recommendation that the project be moved up on the CIP project list and budget. Alderman
Glab suggested that alternative funding sources be explored. He suggested funding sources via
the State Senator or Representative.
FUTURE AGENDA ITEMS
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Motion by Wimmer, seconded by Peterson, to adjourn the meeting at 7:39 pm.
ADJOURNMENT
Voting Aye: Santi, Glab, Schaefer, Blake, Wimmer, Peterson, Condon.
Voting Nay: None.
Absent: None.
Motion carried.
The meeting was adjourned at 7:39 pm.
_____________________________________ ____________________________________
Mayor City Clerk