HomeMy WebLinkAbout16-17 BudgetCITY OF MCHENRY, ILLINOIS
FISCAL YEAR 2016/2017
BUDGET
McHe
April 2016
Mission Statement:
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.
CITY OF MCHENRY
FY2016/201 /
ANNUAL BUDGET
Susan E. Low, Mayor
Geri A. Condon, Alderman Scott Curry, Alderman
Andrew Glab, Alderman Robert Peterson, Alderman
Victor A. Santi, Alderman Jeffrey A. Schaefer, Alderman
Richard Wimmer, Alderman
Janice C. Dalton, City Clerk
Prepared By:
Derik Morefield, City Administrator
Carolyn Lynch, Finance Director.
Bill Hobson, Deputy City Administrator
John Jones, Chief of Police
Doug Martin, Director of Economic Development
Ross Polerecky, Director of Community Development
Jon Schmitt, Director of Public Works
Ann Campanella, Human Resources Manager
Marci Geraghty, Executive Assistant/Deputy City Clerk
City of McHenry, Illinois
FY2016/2017 Annual Budget
Table of Contents
Letterof Transmittal................................................................................................. 1
City Overall Organization Chart..................................................................................... 11
GFOA Distinguished Budget Presentation Award for FY15/16 Budget ..................... 12
BudgetDocument Guide................................................................................................. 13
Fund Structure Overview................................................................................................. 14
Basis of Accounting and Budgeting................................................................................ 17
Budget Summary of Revenues and Expenditures......................................................... 18
Summary Table of Total Budget — All Funds ...................................................... 19
Summary Chart of Revenues & Other Financing Sources — All Funds............ 20
Revenue Budget —All Funds................................................................................. 21
Summary Chart of Revenues & Other Financing Sources — General Fund... 24
Revenues by Source — General Fund.................................................................. 25
General Fund — Historical Trend Major Revenue Sources .............................. 26
Summary Chart of Expenditures by Function —All Funds .............................. 28
Summary Chart of Expenditures by Budget Unit —General Fund .................. 29
Summary Chart of Expenditures by Category — General Fund ....................... 30
ExpenseBudget —All Funds................................................................................. 31
Authorized Personnel.......................................................................................... 33
PersonnelExpenses............................................................................................. 34
Schedule of Anticipated Fund Balance............................................................... 35
General Fund Operating Budgets.................................................................................... 36
Administration...................................................................................................... 37
ElectedOfficials...................................................................................................... 43
Community & Economic Development............................................................ 47
Finance.................................................................................................................. 53
PoliceCommission................................................................................................. 58
Police....................................................................................................................... 60
PoliceDispatch....................................................................................................... 66
Public Works Administration............................................................................... 70
Public Works — Street Division............................................................................. 76
Parks& Recreation.............................................................................................. 81
Special Revenue Fund Budgets....................................................................................... 87
Tourism................................................................................................................... 88
Pageant................................................................................................................... 90
Band......................................................................................................................... 92
CivilDefense........................................................................................................... 94
AlarmBoard........................................................................................................... 96
Audit........................................................................................................................ 98
Annexation............................................................................................................. 100
MotorFuel Tax....................................................................................................... 102
Developer Donation.............................................................................................. 105
Tax Increment Finance......................................................................................... 108
Capital Projects & Debt Service Funds........................................................................... 110
Recreation Center Construction Fund................................................................ 111
Special Service Area#4........................................................................................ 116
Capital Improvements Fund................................................................................. 118
Capital Equipment Fund....................................................................................... 121
DebtService Fund................................................................................................. 123
EnterpriseFunds................................................................................................................. 126
PublicWorks — Water.......................................................................................... 127
Public Works — Wastewater................................................................................ 132
Public Works — Utility........................................................................................... 137
CapitalDevelopment........................................................................................... 142
UtilityImprovements........................................................................................... 144
MarinaOperations.............................................................................................. 147
Internal Service Funds....................................................................................................... 149
Employee Insurance............................................................................................. 150
RiskManagement................................................................................................ 152
Information Technology...................................................................................... 155
FiduciaryFunds................................................................................................................... 159
Employee Flexible Spending............................................................................... 160
Development Escrow........................................................................................... 162
Retained Personnel.............................................................................................. 164
RevolvingLoan...................................................................................................... 166
PolicePension....................................................................................................... 168
Supplemental Information............................................................................................... 171
FinancialPolicies.................................................................................................. 172
Fund Balance and Reserve Policy........................................................................ 174
Capital Improvement Program Financial Policies .............................................. 184
InvestmentPolicy................................................................................................. 185
CommunityProfile............................................................................................... 192
Glossary................................................................................................................. 194
CHe r
April 25, 2016
RE: Fiscal Year 2016/2017 Budget Transmittal
Mayor Low, City Council Members, Citizens of McHenry,
The City Administration is pleased to be able to present this Fiscal Year 2016/2017 Annual
Budget for the City of McHenry. This document has been developed in conformance with the
applicable provisions of the McHenry City Code as well as the generally accepted accounting
principles as established by the Governmental Accounting Standards Board (GASB).
OVERVIEW/INTRODUCTION
The City Administration continues to take a conservative approach in developing the annual
budget document. This is especially true in regards to the development of the General Fund
Budget which includes potentially volatile, economy -driven revenue sources - such as Sales
Taxes and Income Taxes - and expenditures that fund a majority of the City's day-to-day
operations (Administration, Police, Human Resources, Parks and Recreation, Public Works
Administration and Streets) as well as non -water and sewer related capital projects. Through
this approach the City has been able to rebuild the General Fund fund balance from an amount
of $2,511,330 at the close of FY09/10 (representing approximately 16.8% of the Actual
Operating Expenditures for that fiscal year) to just over $10 million at the close of FY14/15.
Moving forward, through the recent establishment of the Fund Balance and Reserve Policy the
City can ensure that fund balance targeted minimums can be identified and maintained while
utilizing surpluses for the implementation of important capital improvement and capital
equipment projects. The following table summarizes General Fund Budgeted vs. Actual
Revenues for the last five full fiscal years. The "$ Variance" column represents the unbudgeted
revenue surpluses which have been used to rebuild the General Fund fund balance, putting the
City in the position that we are now in to be able to identify a target minimum fund balance of
120 days/4 months of operating expenditures as well as to be able to fund important capital
projects.
5-YEAR SUMMARY OF GENERAL FUND REVENUES
Budgeted
Revenues
Actual
Revenues Variance Variance
FY10/11 15,852,895 17,260,823 1,407,928 8.88%
FY11/12 17,392,214 19,348,533 1,956,319 11.25%
FY12/13 17,666,977 19,059,452 1,392,475 7.88%
FY13/14 18,203,901 19,777,150 1,573,249 8.64%
FY14/15 18,878,352 20,306,983 1,428,631 7.57%
In regards to General Fund Expenditures, budget development guidelines provided to
Department Directors have continued to stress the need to keep proposed operating
expenditures level where possible and to continue to identify opportunities to reduce
expenditures and/or increase revenues and efficiencies in providing services. As part of this
process, three years (FY12/13, FY13/14, FY14/15) and ten months (May 1 — February 29, 2016)
of actual expenditures were reviewed in making adjustments to line items based on identified
need, historical trends, and changes in pricing (for example - reduction in gasoline and utility
costs). This analysis, along with a reliance on Department Directors to continually scrutinize
spending, has meant that the City has been able to maintain a narrow variance in terms of
Budgeted vs. Actual Expenditures in recent years as reflected in the table below:
5-YEAR SUMMARY OF GENERAL FUND EXPENDITURES
Budgeted
Expenditures
Actual
Expenditures Variance Variance
FY10/11 15,852,696 15,636,890 215,806) 1.36%
FY11/12 17,386,496 17,311,563 74,933) 0.43%
FY12/13 18,209,740 18,169,423 40,317) 0.22%
FY13/14 18,230,585 18,184,842 45,743) 0.25%
FY14/15 18,861,743 18,811,253 50,490) 0.27%
With this combined approach of conservative revenue estimates and a regular narrow variance
to the negative) of budgeted versus actual expenditures the City is well positioned to be able
to respond to external financial threats to the municipality — such as reductions the Local
Government Distributive Fund revenues by the State of Illinois — while having resources
available to address much needed capital project needs. However, a word of caution, while the
City is currently in a financial position that allows us to undertake a robust capital improvement
program in FY16/17, the City's ability to undertake future improvements must strike a balance
between Capital Improvement and Capital Equipment fund balances, budgeted surpluses
resulting from limited expenditures and increases in revenues, and any additional unbudgeted
surpluses resulting from the impacts of the economy on Sales Taxes and Income Taxes.
Importantly, the FY16/17 Budget, as proposed, is operationally BALANCED. The proposed
spending plan for All Funds totals $50,045,574 and $22,726,606 for the General Fund.
Significantly, these amounts include $3,609,250 for capital improvements to the existing water
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distribution and wastewater conveyance systems and $4,488,300 in General Fund capital
improvement and equipment projects. This totals $8,097,550 in capital projects for all funds in
FY16/17.
The following is a summary of revenue and expenditure activities for the various funds that
comprise the municipal budget.
GENERAL FUND
The General Fund represents the core revenue and expense fund for municipal functions.
General Fund Operating Budgets are comprised of Administration (100.01), Elected Officials
100.02), Community Development (100.03), Finance (100.04), Police Commission (100.21),
Police (100.22), Police Dispatch (100.23) - new fund in FY16/17, Public Works Administration
100.30), Public Works Streets Division (100.33), and Parks and Recreation (100.41).
Revenues. Budgeted revenues within the General Fund are $20,377,013, an increase of
994,653 (5.1%) from FY15/16. Approximately $16,554,548, or 81.2%, of estimated FY16/17
General Fund Revenues is comprised of Sales Tax receipts, Income Tax receipts, and Property
Tax receipts.
While the City has seen growth in State and Local Sales Tax receipts in recent fiscal years due
to factors related to economic recovery, this trend is beginning to level and, as such, staff will
continue to budget revenues from this source conservatively. State Sales Tax receipts, which
make up 33.4% of fund revenues, are budgeted at $6,808,038, reflecting an INCREASE of
242,299 (3.7%) from FY15/16. Local (Home Rule) Sales Tax receipts, comprising 9.1% of fund
revenues, are budgeted at $1,858,118, reflecting a DECREASE of $33,562 (1.8%) from the
current fiscal year. While it may seem contradictory that State Sales Tax receipts are estimated
to increase and Local Sales Tax receipts are estimated to decrease, Local Sales Tax receipts
dipped from FY13/14 to FY14/15 and the 10 month summary -to -date continues this slight
downward trend. One reason for this may be that some goods for which the City receives State
Sales Tax receipts for are not included in the Local Sales Tax receipts. A prime example of this is
vehicle sales, on which the .5% Local Sales Tax does not apply. So while vehicle sales are
increasing, resulting in increases to the State Sales Tax figure, the Local Sales Tax does not
realize this same increase.
Income Tax receipts, comprising approximately 13.5% of General Fund Revenues, are budgeted
at $2,753,184, an increase of $303,184, or 12.4% from the FY15/16 Budget. Again, as alluded
earlier, Income Tax receipts are dependent on growth in personal wealth/economic conditions
and continue to be threatened by the State of Illinois related to reduced reimbursements
through the Local Government Distributive Fund (LGDF).
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Property Tax receipts, which make up approximately 25.2% of fund revenues, are once again
budgeted at $5,135,208, the same as identified in FY15/16. This is the result of the City
Council's decision to maintain a "flat" property tax levy for the 5t" consecutive year.
The remaining approximately 27.9% of General Fund Revenues are comprised primarily of other
Intergovernmental revenues, Franchise Fees, Fines and Forfeitures, Charges for Services,
Interest Income, Donations, Reimbursements and other Miscellaneous revenues. Notably, for
FY15/16, this includes an estimated $190,000 in additional dispatch service revenues related to
dispatch consolidation and the addition of new customers, an estimated $161,800 from the
McHenry Township Fire Protection District to offset operational costs for the location of full
time fire dispatchers in the McHenry Dispatch Center (per IGA executed in 2015), the
anticipated receipt of $141,000 in police seizure funds that will be used to offset a portion of
the costs for expanding the consolidated dispatch center, and increased video gaming receipts.
Expenditures. Total General Fund Expenditures (without capital expenses) are budgeted at
20,345,147, an INCREASE of $1,670,948 (8.9%) from FY15/16. The most significant budget
recommendations that comprise this increase, compared to the FY15/16 Budget, include the
following:
1. Administration (100.01)
7,000 for increased Mosquito Abatement
6,000 for the creation of an internship opportunity and participation in the
Leadership Greater McHenry County program
2. Community Development (100.03)
80,000 for the Community Development Director position
17,500 for increased mowing contractual services (most of this is recaptured
through property liens and/or adjudication)
13,645 for % Office Assistant Position (shared with Finance)
6,400 for a digital camera and color scanner (all information submitted to the
Department is now scanned as a digital record and, as such, the scanner provides
the full capability to capture color records)
3. Finance (100.04)
130,000 for Development Expense related to sales tax rebate agreements
13,645 for % Office Assistant Position (shared with Community Development)
4. Police (100.22)
136,870 increase for Police Pension
10,419 for Sworn Officer Salary costs (this increase is relatively slight, even with
the new Unit I FOP contract, due to the fact that we have gained a number of
newer officers that are lower on the pay scale)
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5. Police Dispatch (100.23) — It should be noted that the identified costs are required for
the appropriate staffing to transition to the consolidated dispatch center. Staff has
analyzed needs based on the timing/addition of new customers and is recommending a
phased approach to the hiring of additional dispatchers with the end result being to
have, in place by May 1, 2017, the full complement of dispatchers to be able to serve all
existing customers, new customers, and dispatch partners. In FY16/17 most of these up
front operational costs will be offset with the expansion of the dispatch customer base
new customers). Once the consolidation partnership is formally activated (May 1,
2017) the total expenditures to the City of McHenry for dispatch services will drop to
46% and 54% of these costs will shift to the other partners of the facility.
89,000 for the hiring of a Civilian Supervisor of Dispatch (responsible for the
oversight of 20 +/- dispatch personnel
64,112 for the hiring of 2 new full time dispatchers mid budget year (October)
in preparation for the transfer of Harvard Police dispatch services to McHenry
77,749 for the hiring of 7 new full time dispatchers in the last quarter of the
budget year (January/February 2017) in preparation for the transfer of
Woodstock Police and Fire dispatch services to McHenry
6. Public Works Administration (100.30)
90,000 for the hiring of a Project Engineer
50,000 for a drainage study of Lakeland Park drainage
16,000 for the hiring of a part time Office Assistant
182,085 for the implementation of an aggressive tree replacement/planting
program — funds for this were provided by the County to the City in FY13/14 as
part of the Bull Valley/Charles Miller Road Construction Project and will be
included in revenues as a budget transfer from fund balance
7. Public Works Streets Division (100.33)
20,000 for the hiring of four (4) part time season employees to assist the
Streets Division in completing more mundane tasks (such as ditch maintenance
and restoration) to free up full time employees to more aggressively implement
an expanded cracksealing and road maintenance program
8. Parks and Recreation (100.41)
66,625 for costs related to the transition of Recreation employees to the
McHenry Recreation Center and, specifically, cost -sharing of personnel who
handle both Recreation and Recreation Center functions
20,000 for the transition of winter swim coaches from contractual employees
to employees for liability purposes (funding for this is provided through swim
programming)
15,000 for the extension of the pool season and expansion of swim lessons
funding provided through user fees)
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9. Information Technology Fund, non -Capital Project (620.00)
All funds contribute to the operational costs of the Information Technology
Fund. The FY16/17 Information Technology Fund includes $54,000 in technology
hardware and software) upgrades - these are identified in the account detail
sheets for the IT Fund
10. The remaining amount not accounted for in the previous nine (9) items is mostly
attributable to salary and benefit costs (including health insurance, FICA and IMRF) for
all employees attributable to the General Fund.
With the inclusion of capital expenses (Capital Improvement and Capital Equipment Projects),
General Fund Expenses increase by $2,619,544 to $22,726,606, an increase of (13.0%) from the
FY15/16 Budget. General Fund Capital Projects total $4,488,300 and will be detailed later in
this document.
SPECIAL REVENUE FUNDS
Special Revenue Funds include the Tourism Fund, Pageant Fund, Band Fund, Civil Defense Fund,
Alarm Board Revenue Fund, Audit Fund, Annexation Fund, Motor Fuel Tax Fund, Developer
Donation Fund, and the Tax Increment Finance Fund.
Overall, Special Revenue Funds revenues are budgeted at $1,553,130 in FY16/17. This reflects
an increase of $38,049 or 2.5% from FY15/16. Highlighted here is that revenues within the Tax
Increment Finance Fund will continue to remain flat.
Expenditures are budgeted at $2,038,680, a decrease of $449,197 or 18.0% from FY15/16.
While most of the Special Revenue Funds remain steady, the primary reason for this decrease
in expenses is found in the Motor Fuel Tax Fund, where total spending decreases $447,971 due
to less funding to cover these projects. Also, within the Developer Donation Fund the following
capital expenses are being rebudgeted from FY15/16 - $50,000 for the development of the
Miller Park Boat Ramp and $20,000 for ADA Park Improvements. An additional $100,000 is
being added as a capital expense for the Miller Park Boat Ramp.
CAPITAL PROJECT FUNDS
Capital Project Funds include the Recreation Center Construction Fund, Special Service Area #4
Lakewood Road Subdivision sewer project), Capital Improvements Fund, and Capital
Equipment Fund.
Revenues. Capital Project Funds revenues are derived mainly from interfund transfers.
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Capital Project Fund revenues are budgeted at $3,083,740, an increase of $1,560,468 from the
FY15/16 amount of $1,523,272. Budgeted expenses of $5,629,295 are $399,527 lower than the
6,028,822 budgeted in FY15/16. The primary reason for the overall decrease in proposed
expenditures is the substantial completion of the Recreation Facility.
Capital Improvements and Capital Equipment Program
As identified in the 5-year FY16/17 — FY20/21 Capital Improvement Program, the capital
improvement and capital equipment projects recommended for funding for FY16/17 are
aggressive. Based on the amount of available fund balance in the Capital Improvement
Program ($1,233,542), the available fund balance in the Capital Equipment Program ($490,802),
the available fund balance over the targeted minimum in the General Fund ($3,641,968), the
availability of alternate or supplemental funding sources (Developer Contributions, Park
Development Funds, Police seizure funds), and the outstanding capital project needs as
identified by Staff and expressed by Council, the following capital improvement and capital
equipment projects are being recommended for funding in FY16/17.
Capital Improvements Fund ($3,615,500 total - $1,233,542 Capital Improvements Fund
fund balance, $87,866 budgeted General Fund surplus, $2,294,592 General Fund fund
balance transfer)
Local Street Program - 2,000,000
Police Buildout (dispatch and admin) - 900,000*
Bull Valley/Curran Road Project - 320,000
Cracksealing - 100,000
Sidewalks - 75,000
Seawall Repair - 75,000
Petersen Park Improvements - 35,000
Parking Lot Improvements - 30,000
Sport Court Renovations - 27,000
ADA Improvements - 20,000
Petersen Farm Improvements - 20,000
Merkel Aquatic Center Improvements - 10,000
141,000 of this will be funded with Police seizure funds which are forthcoming in
FY16/17 and will be reimbursed to the General Fund. There is potential for
significantly more seizure funds which will also be reimbursed to the General
Fund for buildout costs. Finally, the McHenry County ETSB has submitted
application for State funding for dispatch consolidation costs. Any funds
received through this process will, as they are eligible, also reimburse the
General Fund.
Capital Equipment Fund ($479,300 total — utilizing the existing Capital Equipment Fund
fund balance amount of $490,802)
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Streets Equipment Replacement - $ 245,000
Police Vehicles - $ 105,800
Parks Vehicle - $ 50,000
Police Vehicle Equipment - $ 43,500
Streets Vehicle Replacement - $ 35,000
In addition, the following projects, which were identified in the 5-Year Capital Improvement
Program (CIP), are being recommended for implementation. These projects have dedicated
funding sources other than the Capital Improvements Fund, Capital Equipment Fund, or
General Fund.
Public Works Facility Power Upgrade - $ 270,000 (Developer Cont)
Miller Riverfront Park Boat Launch - $ 150,000 (Park Dev Fund)
Telephone System Upgrade - $ 74,800 (IT Fund)
Detailed project descriptions for all of these projects can be found in the FY16/17 — FY20/21 CIP
Document.
In addition to these new projects, two Capital Improvement projects — Park Improvements
85,000) and Municipal Building HVAC ($80,000) are being rebudgeted from FY15/16 for
implementation in FY16/17.
DEBT SERVICE FUND
The purpose of the Debt Service Fund is to account for bonded indebtedness incurred by the
City's General Fund, including all bond and interest payments. The Debt Service Fund is a non -
operating budgetary unit, meaning that it does not provide direct service to the public and is
utilized for internal purposes only. Debt service payments are made from this fund and, in turn,
transfers from various other funds are made to the Debt Service Fund for debt service
payments. In FY16/17 revenues, or transfers, into the Debt Service Fund total $1,653,949 and
principal and interest payments are budgeted at $1,653,799.
PROPRIETARY FUNDS
Proprietary funds include the Water/Sewer Fund, which includes all operating costs related to
the conveyance and maintenance of the City's water and sewer systems, Capital Development
Fund, Utility Improvements Fund, and the Marina Operations Fund.
In 2015 the City Council adopted new water and sewer rates, along with the introduction of
base charges for water and sewer maintenance improvements, to ensure adequate funding for
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operational and capital improvement costs for the existing water and sewer system. These
rates will be reviewed annually by the City Administration to identify and recommend any
adjustments to the rate structure. For FY16/17 the total Proprietary Funds revenues, derived
primarily through the water and sewer sales within the Water/Sewer Fund, are budgeted at
11,685,516. This is an increase of $4,960,851 from FY15/16. $4,387,186 of this increase is due
to internal transfers from the Water/Sewer Fund and Capital Development Fund to the Utility
Improvements and Utility Funds to cover expenses.
Capital items funded through the Water/Sewer Fund are budgeted through depreciation
expenses which allocates the expenditure over the life of the asset. Water and sewer
improvement and maintenance projects, totaling $3,609,250, identified for implementation in
FY16/17 are as follows:
Water Improvements ($103,000)
Water Treatment Plant #4 Maintenance $ 58,000
Well Inspection/Maintenance & Repair $ 45,000
Sewer/Wastewater Improvements ($3,216,250)
WWTP Consolidation — Fore Main Extension $2,916,250
Sewer Division Motor Pool $ 300,000
Utility Maintenance Improvements ($290,000)
Sanitary Sewer Main Rehabilitation Program $ 110,000
Water Main Replacement Program $ 100,000
Sanitary Sewer Manhole Rehabilitation Program $ 50,000
Oakwood Drive Sanitary Sewer Main Rehabilitation $ 30,000
Detailed project descriptions can be found in the FY16/17 — FY20/21 CIP Document.
These projects will be funded from the surpluses in the Capital Development and Utility
Improvements Funds.
Not reflected as part of the Proprietary Funds Budget are revenues and expenditures for the
Central Wastewater Treatment Plant (CWWTP) Decommissioning Project. This project is being
financed through a State of Illinois State Revolving Fund (SRF) for a period of twenty (20) years
with payments being derived from users of the system.
INTERNAL SERVICE FUNDS
As the name suggests, Internal Service Funds represent employee contribution and/or
interfund transfers related to Health Insurance, Risk Management and Information Technology.
In FY16/17, Internal Service Fund revenues are budgeted to increase by $245,432 and expenses
are budgeted to increase by $310,754. Information Technology costs are increasing
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approximately 54,000 due to Microsoft Software and other software licensing, server upgrades,
as well as increased spending to replace workstations. The rest of the increases are almost
entirely due to increases in health insurance costs and related City and employee contributions.
FIDUCIARY FUNDS
Fiduciary Funds include the Employee Flexible Spending Fund, Development Escrow Fund,
Retained Personnel Fund, Revolving Loan Fund, and the Police Pension Fund. Specific to the
Police Pension Fund, municipal contributions are budgeted to increase by $406,870, with
expenditures increasing by $42,762.
The FY16/17 Annual Budget document is organized and presented as follows:
Budget Summary of Revenues and Expenditures
General Fund Operating Budgets
Special Revenue Fund Budgets
Capital Projects
Debt Service Funds
Proprietary Funds
Internal Service Funds
Fiduciary Funds
Supplemental Information
The City Administration hopes that this summary overview, along with the information
provided in the following budget document, provides the City Council citizens of McHenry with
a clearer understanding of the City of McHenry's budget structure and the confidence in
knowing that the City Administration continues to serve as responsible stewards of the public's
funds.
Respectfully Submitted,
Derik Morefield
City Administrator
Carolyn Lynch
Director of Finance
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CITY OF MCHENRY
The Government Officers Finance Association of the United States and Canada (GFOA) presented an Award of
Distinguished Budget Presentation to the City of McHenry for its annual budget for Fiscal Year 2015/2016.
In order to receive this award, a government 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 communication device.
The award is valid for a period of 1 year. We believe that the Fiscal Year2016/2017 Budget continues to conform
to program requirements and will be submitted to GFOA for evaluation in 2016.
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Budget Document Guide
This budget document was prepared with two major objectives in mind. First, to provide citizens
and others interested in the City's finances with complete and understandable information
regarding the budget. The second is to develop an annual fiscal plan that will assist City leaders
in making better decisions and enhance financial accountability.
The City of McHenry is moving toward compliance with many of the Government Finance
Officers Association's (GFOA) guidelines for budget presentation and continues its efforts to
improve communication and presentations to its citizenry. The guidelines set forth by GFOA
will ultimately allow the City to meet both of the objectives previously mentioned.
Given the constraints of a small community, this budget document is continually being changed
and is coming closer to meeting the requirements as a:
Policy Document
As a policy document, the City Council has established specific strategies to achieve its goals
through policy decisions as noted in the City Administrator's letter of transmittal. These sections
include:
A budget message, included in the transmittal letter, that articulates priorities and budget
issues, particularly major issues affecting budget decisions;
Short-term initiatives that guide development of the budget in the upcoming year; and
General information describing each budget unit's prior year accomplishments and
budget year goals and objectives.
Operations Guide
As an operations guide, the budget document describes activities, services, and functions carried
out by the organizational units. In addition, it provides an organizational chart and summary of
authorized personnel for the prior year and the budget year.
Financial Plan
As a financial plan, the budget document describes all funds subject to appropriation in the fund
structure overview section. In addition, all summaries of all major revenues and expenditures are
provided in summary tables. The final budget also includes General Fund revenues for the
2011/12 through 2014/15 fiscal years as well as budget amounts for the current and upcoming
years. Finally, the summary section includes information as the projected changes in fund
balances for all appropriated funds.
Communication Device
The Budget Document contains narratives, supplemented with tables and charts, that present the
budget in a manner that is simple and understandable. The FY16/17 Annual Budget, once
adopted, is available for public review at the McHenry Municipal Center, 333 S. Green Street,
McHenry, as well as on the City's website at www.ci.mcheM.il.us. l.us.
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Fund Structure Overview
The accounting system and the budget appropriation process are structured according to the basic
guidelines established by the Government Finance Officers Association (GFOA) of the United
States and Canada. The format includes the basic funds and fund types which follow.
The City's governmental funds are as follows:
General Fund — This fund accounts for all transactions of the city that pertain to the general
administration of the city and the services traditionally provided to its citizens. This includes
Administration, Elected Officials, Community and Economic Development, Finance, Police,
Public Works Administration, Streets, and Parks and Recreation.
Special Revenue Funds — These funds are utilized to account for revenues derived from specific
sources which are usually required by law or regulation to be accounted for as separate funds.
For the City of McHenry these funds include the Tourism Fund, Pageant Fund, Band Fund, Civil
Defense Fund, Alarm Board Fund, Audit Fund, Annexation Fund, Motor Fuel Tax Fund,
Developer Donation Fund, and Tax Increment Fund.
Debt Service Fund — This fund accounts for the accumulation of revenues for and payment of
principal and interest on general obligation long term debt.
Capital Projects Fund — These funds are utilized to account for financial resources to be used
for the acquisition or construction of capital facilities or other major fixed assets.
The City's business -type funds include the following:
Enterprise Funds — These funds are utilized to account for operations and activities that are
financed and operated in a manner similar to a private business enterprise, and where the cost of
providing goods and services to the general public on a continuing basis is expected to be
recovered primarily through user charges. The City has also established Enterprise Funds when
it was advantageous to segregate revenues earned and expenses incurred for an operation for
purposes of capital maintenance, public policy, management control or accountability.
Enterprise Funds for the City include the Water and Sewer Fund, Capital Development Fund,
Utility Improvements Fund, and Marina Operations Fund.
Internal Service Funds — These funds are established to finance and account for services and/or
commodities furnished by one department or agency to other departments or agencies of the city.
The Internal Service Funds of the City are the Employee Insurance Fund, Risk Management
Fund, and Information Technology Fund.
The City's other funds include the following:
Fiduciary Funds — These funds are used to account for resources held for the benefit of parties
outside the city. The fiduciary funds of the city are the Employee Flexible Spending Fund,
14
Fund Structure Overview
Developmental Escrow Fund, Retained Personnel Fund, Revolving Loan Fund, and the Police
Pension Trust Fund.
Accounting for the financial activities of the City and the budget appropriation process are also
presented according to classifications required by the State of Illinois. Revenues are credited to
individual fund types while expenditures/expenses are recorded according to functional areas
within specific funds for budgetary control purposes. The following functional areas are
included in the budget:
General Government — This function provides for the operation of the government and assures
the general administration of the municipality. Activities included in this function also include
human resources.
Community Development — This functions overall mission is to protect and promote the health,
welfare, safety and quality of life of McHenry Citizens, property owners, visitors and
commercial interests through the development and implementation of the City's adopted
ordinances and policies. Planning and development and economic activities are also included
within this function.
Finance — This function applies modern financial management practices to ensure that the City
is able to deliver services effectively and efficiently on a sustained basis. Activities included in
this function are reporting financial transactions, billing and collecting money, accounts payable,
managing cash and investments, preparing the annual financial report, and developing the budget
and financial forecasts.
Public Safety — This function provides for services to reduce the amount and effects of external
harm to individuals and damage to property, and in general to promote an atmosphere of
personal security from external events.
Parks and Recreation — This function promotes the general well being of the City and
encourages the fullest development of cultural and educational potentials of the citizens in the
community. This function includes the activities of general parks, parks and maintenance,
downtown maintenance and programs.
Public Works — This function provides for safe and well -maintained infrastructure for the City.
Activities included in this function are public works administration, roadway maintenance, snow
and ice control, street cleaning, traffic control and engineering.
Debt Service — This function provides for the accumulation of resources for and the payment of
principal and interest on long-term debt of the City.
Capital Projects — This function provides for the acquisition or construction of major capital
facilities or equipment for the City.
15
Fund Structure Overview
Business -Type Activities — This function includes activities of the City that are financed in
whole, or in part, by fees charged to external parties for goods and services. These activities are
accounted for as enterprise funds and include the Water and Sewer and Marina Operations
Funds.
16
Basis of Accounting and Budgeting
The City of McHenry uses the modified accrual basis of accounting to budget and account for
transactions of the governmental funds. Under this basis of accounting, revenues are recognized
when susceptible to accrual (when they are measurable and available) and expenditures are
recognized when the fund liability is incurred. For the City's proprietary funds the City uses the
accrual basis of accounting. Under this basis, revenues are recorded when earned and expenses
are recorded when the liability is incurred. The City prepares the budgets for proprietary funds
consistent with this basis except that capital outlay items are included in the budget.
The City prepares its budget on a basis consistent with generally accepted accounting principles
except that the City also recognizes encumbrances for budgetary purposes. Encumbrances
include supplies ordered but not received, and services contracted but not yet expended by the
City. Encumbrances are charged against a budget or appropriation for account purposes.
Accordingly, expenditures/expenses in this document include encumbered
expenditures/expenses. Encumbrances do not lapse at year-end and provide authorization for
expenditures/expenses for the following year.
The City appropriates funds for capital projects on a fiscal year basis. The Capital Projects
section of this document includes descriptive information on each project with estimated costs
and financing sources.
17
NEART OF THE FOX RIVERY
BUDGET SUMMARY OF REVENUES AND
EXPENDITURES
Total Budget Summary -All Funds
Summary Chart of Revenues & Other Financing Sources - All Funds
Revenue Budget - All Funds
General Fund Budget Summary
Summary Chart of Revenues & Other Financing Sources - General Fund
General Fund Historical Trends of Major Revenue Sources
Summary Chart of Expenditures By Function - All Funds
Summary Chart of Expenditures By Budget Unit - General Fund
Summary Chart of Expenditures By Category - General Fund
Expense Budget - All Funds
Authorized Personnel -All Funds
Personnel Expenses -All Funds
Schedule of Anticipated Fund Balance - All Funds
18
Total Budget -All Funds
FY2016/17 Compared to FY2015/16
Total
Revenues
2016/17 Difference
Total
Revenues
2015/16
General Fund 20,377,013 994,653 19,382,360
Special Revenue Funds 1,553,180 38,099 1,515,081
Capital Project Funds 3,171,606 1,648,334 1,523,272
Debt Service Funds 1,653,949 97,244 1,556,705
Proprietary Funds 11,685,516 4,960,851 6,724,665
Internal Service Funds 4,338,847 245,531 4,093,316
Fiduciary Funds 2,826,294 446,870 2,379,424
Total Revenues 45,606,405 8,431,582 37,174,823
Total
Expenses
2016/17 Difference
Total
Expenses
2015/16
General Fund 22,726,606 2,746,682 19,979,924
Special Revenue Funds 2,020,520 467,357) 2,487,877
Capital Project Funds 5,654,034 958,538) 6,612,572
Debt Service Funds 1,653,799 97,244 1,556,555
Proprietary Funds 11,625,532 3,595,958 8,029,574
Internal Service Funds 4,310,747 310,754 3,999,993
Fiduciary Funds 2,054,336 82,762 1,971,574
Total Expenses 50,045,574 5,407,505 44,638,069
19
Summary of Revenue & Other Financing Sources All Funds
2015/16 2016/17 Dollar Change Change
Property Taxes 5,503,481 5,503,481 0.00%
Sales Taxes 8,457,419 8,666,156 208,737 2.47%
Intergovernmental Revenue 3,382,199 3,724,532 342,333 10.12%
Licenses & Fines 948,822 1,194,663 245,841 25.91%
Services Charges 6,947,510 9,098,355 2,150,845 30.96%
Interest Income 496,350 766,350 270,000 54.40%
Bond Proceeds 0.00%
Transfers 9,644,205 14,434,614 4,790,409 49.67%
Other Financing Sources 1,794,836 2,218,254 423,418 23.59%
Total 37,174,822 45,606,405 8,431,583 22.68%
2016/17 Budget Revenues by Source
Other Financing
Sources
5%
Transfers
32% j
Bond Proceeds0%
Interest Income 4A
2% Services Charges
20%
Property Taxes
12%
Sales Taxes
19%
Intergovernmental
Revenue
8%
20
Revenue Budget 2016/17 All Funds
Total Net
Revenue Transfers Revenue
General Fund $20,377,013 $556,590 $19,820,423
Special Revenue Funds
Band Fund 15,000 15,000 0
Civil Defense Fund 8,000 8,000 0
Alarm Board Fund 153,000 0 153,000
Audit Fund 38,211 11,785 26,426
Annexation Fund 58,200 0 58,200
Motor Fuel Tax Fund 677,429 0 677,429
Developer Donations 42,540 0 42,540
Developer Donations (Parks) 91,150 0 91,150
TIF Fund 326,000 0 326,000
Pageant Fund 3,600 0 3,600
Tourism Fund 140,050 0 140,050
Total Special Revenue Funds 1,553,180 34,785 1,518,395
Capital Project Funds
Recreation Center Construction Fund 502,300 0 502,300
Special Service Area #1A 0 0 0
Special Service Area #4 16,847 0 16,847
Capital Improvements Fund 2,652,459 2,381,459 271,000
Local Streets Improvements 0 0 0
Capital Equipment Fund 0 0 0
Total Capital Project Funds 3,171,606 2,381,459 790,147
Debt Service Funds
Debt Service Fund 1,653,949 1,622,680 31,269
Total Debt Service Funds 1,653,949 1,622,680 31,269
Proprietary Funds
Public Works - Water 2,693,559 0 2,693,559
Public Works - Wastewater 4,364,424 0 4,364,424
Public Works - Utility 1,470,936 1,470,936 0
Capital Development Fund 172,000 0 172,000
Marina Operations Fund 51,500 0 51,500
Utility Improvements Fund 2,933,097 2,933,097 0
Total Proprietary Funds 11,685,516 4,404,033 7,281,483
Internal Service Funds
Risk Management Fund 728,492 698,292 30,200
Information Technology Fund 515,787 515,787 0
Health Insurance Fund 3,094,568 2,696,744 397,824
Total Internal Service Funds 4,338,847 3,910,823 428,024
Fiduciary Funds
Medical Flexible Spending Fund 85,000 0 85,000
Revolving Loan Fund 1,550 0 1,550
Police Pension Fund 2,664,244 1,524,244 1,140,000
Development Escrow Fund 500 0 500
McHenry Economic Development Fund 0 0 0
Retained Personnel Fund 75,000 0 75,000
Total Fiduciary Funds 2,826,294 1,524,244 1,302,050
Total All Funds 45,606,405 14,434,614 31,171,791
21
Revenue Budget All Funds
Pecent
2015/16 2016/17 Difference Change
General Fund 19,382,360 20,377,013 994,653 5.1%
Special Revenue Funds
Band Fund 15,000 15,000 0 0.0%
Civil Defense Fund 5,000 8,000 3,000 60.0%
Alarm Board Fund 153,000 153,000 0 0.0%
Audit Fund 37,981 38,211 230 0.6%
Annexation Fund 58,200 58,200 0 0.0%
Motor Fuel Tax Fund 642,610 677,429 34,819 5.4%
Developer Donations 42,540 42,540 0 0.0%
Developer Donations (Parks) 91,150 91,150 0 0.0%
TIF Fund 326,000 326,000 0 0.0%
Pageant Fund 3,550 3,600 50 1.4%
Tourism Fund 140,050 140,050 0 0.0%
Total Special Revenue Funds 1,515,081 1,553,180 38,099 2.5%
Capital Project Funds
Recreation Center Construction Fund 2,000 502,300 500,300 25015.0%
Special Service Area #1A 0 0 0 0.0%
Special Service Area #4 16,847 16,847 0 0.0%
Capital Improvements Fund 1,261,200 2,652,459 1,391,259 110.3%
Local Streets Improvements 0 0 0 0.0%
Capital Equipment Fund 243,225 0 243,225) 100.0%
Total Capital Project Funds 1,523,272 3,171,606 1,648,334 108.2%
Debt Service Funds
Debt Service Fund 1,556,705 1,653,949 97,244 6.2%
Total Debt Service Funds 1,556,705 1,653,949 97,244 6.2%
Proprietary Funds
Public Works - Water 2,295,485 2,693,559 398,074 17.3%
Public Works - Wastewater 3,142,848 4,364,424 1,221,576 38.9%
Public Works - Uility 1,045,985 1,470,936 424,951 0.0%
Capital Development Fund 172,000 172,000 0 0.0%
Marina Operations Fund 51,500 51,500 0 0.0%
Utility Improvements Fund 16,847 2,933,097 2,916,250 17310.2%
Total Proprietary Funds 6,724,665 11,685,516 4,960,851 73.8%
Internal Service Funds
Risk Management Fund 778,000 728,492 49,508) 6.4%
Information Technology Fund 461,101 515,787 54,686 11.9%
Health Insurance Fund 2,854,215 3,094,568 240,353 0.0%
Total Internal Service Funds 4,093,316 4,338,847 245,531 6.0%
Fiduciary Funds
Employee Flexible Spending Fund 80,000 85,000 5,000 6.3%
Revolving Loan Fund 1,550 1,550 0 0.0%
Police Pension Fund 2,257,374 2,664,244 406,870 18.0%
Development Escrow Fund 500 500 0 0.0%
Retained Personnel Fund 40,000 75,000 35,000 87.5%
Total Fiduciary Funds 2,379,424 2,826,294 446,870 18.8%
Total All Funds 37,174,823 45,606,405 8,431,582 22.7%
22
FY16-17 General Fund Budget
FY16-17 Budget FY15-16 FY15-16
Budget Change Budget
8 month
Actual
GF Property Tax Levy 5,135,208 5,135,208 5,139,820
Total Property Tax Levy 5,135,208 5,135,208 5,139,820
Intergovernmental
3120 Sales Tax 6,808,038 242,299 6,565,739 4,551,120
3121 Home Rule Sales Tax 1 1,858,118 33,562)1 1,891,680 1,255,156
3130 State Income Tax 2,753,184 303,184 1 2,450,000 2,000,490
3110 State Replacement Tax 65,000 65,000 44,492
3140 State Pull Tabs 1,000 1,400) 2,400
3141 Inter Track Wagering 62,000 62,000 43,725
3125 State Telecommunications 135,000 10,000 125,000 97,123
3180 1 State Grants 5,193
Total intergovernmental 11,682,340 520,521 11,161,819 7,997,299
Franchise Fees
38321 Franchise Fees 303,000 5,000 298,000 234,662
Total Franchise Fees 303,000 5,000 298,000 234,662
Licenses and Permits
3310 Licenses -Liquor 65,500 65,500 6,488
3320 Licenses - City 8,500 2,000) 10,500 3,679
3330 Licenses -Vehicle 150,000 10,000) 160,000 149,217
3350 Licenses - Video Gambling 245,000 95,000 150,000 147,551
3410 Building Permits 91,163 4,341 86,822 146,125
3532 Overweight Truck Permits 2,500 2,500 2,020
Total Licenses and Permits 562,663 89,841 472,822 455,080
Finesand Forfeitures
3505 Traffic Fines 290,000 8,000 282,000 209,120
3510 Parking Fines 40,000 40,000 27,570
3525 Drug Asset Forfeitures 161,000 141,000 20,000 4,663
3530 DUI Fines 7,000 7,000 5,390
3535 Police -Application Fees
3538 Warrant Execution 2,000 11000 1,000 1,870
3539 Electronic Citation 2,000 2,000 11580
3540 Vehicle License Fines 4,000 4,000 6,585
3545 Vehicle Fund Fines 15,000 15,000 9,268
Total Fines and Forfeitures 521,000 150,000 371,000 266,046
Charges for Services
3420 Plumbing Inspection 7,000 11000 6,000 7,660
3430 Zoning/Plat Fees 10,000 3,000 7,000 7,550
3682 Mowing/Weeds 30,000 24,800 5,200 24,113
3515 Police Accident Reports 3,000 3,000 1,655
3520 Police Field Reports 200 200 355
3536 Bail Bond Processing 4,500 4,500 3,075
3683 Alarm Board Revenues 1,000 1,000 600
3835 Garbage Bags 42,000 3,000) 45,000 31,836
3845 Rental Income 15,596 23,657) 39,253 30,277
3969 Transfer -TIF 2,500 2,500 1,667
3970 Charges for Services 479,090 7,080 472,010 314,673
3999 Transfer from other funds 75,000 80,000) 155,000 50,000
3631 Park and Rec Programs 350,000 350,000 282,278
3632 Concessions 32,000 2,000 30,000 32,265
3633 Beach Programs 3,200 3,200 3,678
3634 Swimming Pool 100,000 15,000) 115,000 95,854
3711 Meeting Fees - P&Z 2,000 2,000 1,145
Total Charges for Services 1,157,086 81,777) 1,238,863 888,681
Interest
3200 Interest 2,000 2,000 4,413
Totallnterest 2,000 2,000 4,413
Donations
3815 Donations 14,853 14,853 12,750
Total Donations 14,853 14,853 12,750
Reimbursements
3881 Reimb - Comm Desk Salaries 602,068 311,068 291,000 379,091
3882 Reimb -Misc 208,795 10,000 198,795 148,643
3883 Reimb- Officers Training 414
3537 Reimb - Police Impound 115,000 10,000) 125,000 90,150
Total Reimbursements 925,863 311,068 614,795 618,298
Miscellaneous
3920 Fixed Asset Sale 10,000 10,000
Miscellaneous Income 63,000 63,000 44,248
Total Miscellaneous 73,000 73,000 44,248
2 7,013 994,653 19,382,360 15,661,297
Summary of Revenues & Other Financing Sources General Fund
Actual Actual Budget Budget Dollar Percent
2013/14 2014/15 2015/16 2016/17 Change Change
Revenues
Property Taxes 5,124,611 5,134,224 5,135,208 5,135,208 0.00%
Intergovernmental 11,678,714 11,969,896 11,161,819 11,682,340 520,521 4.66%
Other Local Sources 2,308,843 2,404,903 2,382,685 2,545,749 163,064 6.84%
Miscellaneous 664,987 797,960 702,648 1,013,716 311,068 44.27%
Total Revenues 19,777,155 20,306,983 19,382,360 20,377,013 994,653 5.13%
Miscellaneous
5%
Other Local
2016/17 Budget
General Fund
Revenues by Source
Sources
13%
4,11
Intergovernment
57%
Property Taxes
hi
25%
24
Revenue by Source General Fund
16/17-15/16
2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 Budget
Actual Actual Actual Actual Budget Budget Change
Total Property Taxes 5,154,234 5,131,967 5,124,611 5,134,224 5,135,208 5.135,208
Intergovernmental
Sales Tax 6.498,608 6,276,057 6,684,864 6,965,782 6,565,739 6,808,038 242,299
Local Sales Tax 1,945,024 1,889,994 1,984,108 1,965.987 1,891,680 1,858,118 33,562)
State Income Tax 2,286,926 2,553,914 2.577,574 2,719,568 2,450,000 2,753,184 303,184
State Replacement Tax 65,089 63,090 74,513 70,909 65,000 65,000
State Pull Tabs 1,724 1,313 1,729 995 2,400 1,000 1,400)
Inter Track Wagering 90,434 82,759 65,150 64,814 62,000 62,000
State Telecommunications 195,439 172,143 163,424 133,945 125,000 135,000 10,000
State Grants 90,972 48,351 127,352 47,896
Total 11,174,216 11,087,621 11,678,714 11,969,896 11,161,819 11,682,340 520,521
Other Local Sources
Franchise Fees 219,719 297,253 295,166 306,122 298,000 303,000 5,000
Licenses and Permits 331,235 344,664 439,510 535,033 472,822 562,663 89,841
Fines and Forfeitures 463,916 407,230 405,023 383,932 368,000 521,000 153,000
Charges and Services 1,244,251 1,207,260 1,166,945 1,177,601 1,241,863 1,157,086 84,777)
Interest Income 3,493 8,199 2,199 2,215 2,000 2,000
Total 2,262,614 2,264,606 2,308,843 2,404,903 2,382,685 2,545,749 163,064
Miscellaneous
Donations 19,555 14,823 17,772 22,402 14,853 14,853
Reimbursements 569,760 429,995 532,910 557,855 614,795 925,863 311.068
Other Miscellaneous 168,153 130,439 114,305 217,703 73,000 73,000
Total 757,468 575,257 664,987 797,960 702,648 1,013,716 311,068
Total General Fund Revenues 19,348,532 19,059,451 19,777,155 20,306,983 19,382,360 20,377,013 994,653
25
Historical Trend Major Revenue Sources General Fund
Property Tax Revenue
5,145,000
5,140,000
5,135,000
0 5,130,000
0
5,125,000
5,120,000 iF
5,115,000
2012/13 Actual 2013/14 Actual 2014/15 Actual 2015/16 Actual 2015/16 Budget
Sellesl 1 5,131,967 5,124,611 5,134,224 5,139,820 5,135,208
State Sales Tax Revenue
7,000,000
6,800,000
6,600,000
c $6,400,000
c
6,200,000
6,000,000
5,800,000
2010/11 Actual 2011/12 Actual 2012/13 Actual 2013/14Actual 2014/15 Actual 2015/16 Budget 2016/17 Budget
Sen.1 6,369,715 6,473,004 6,276,057 6,684,864 6,965,782 6,565,739 6,008,038
26
Historical Trend Major Revenue Sources General Fund
Income Tax Revenue
3,000,000
2,500,000
2,000,000
c0 1,500,000
1,000,000
500,000
0
2010/11 Actual 2011/12 Actual 2012/13 Actual 2013/14 Actual 2014/15 Actual 2015/16 Budget 2016/17 Budget
Se ®riesl 2,130,030 2,286,926 2,553,914 2,577,574 2,719,568 2,450,000 2,753,184
27
Expense Budget 2016/17 All Funds
Dollar Percent
2014/15 2015/16 2016/17 Change Change
General Government 2,613,758 2,671,601 2,885,346 213,745 8.00%
Public Safety 10,394,100 10,878,779 11,720,746 841,967 7.74%
Public Works 10,125,009 10,524,971 10,910,981 386,010 3.67%
Culture and Recreation 2,341,139 2,390,632 2,314,459 76,173) 3.19%
Capital Projects 3,313,883 6,515,725 5,504,831 1,010,894) 15.51%
Comm. & Econ. Dev. 733,772 741,793 996,900 255,107 34.39%
Debt Service 1,558,350 1,556,555 1,653,799 97,244 6.25%
Other 3,287,847 3,598,808 3,859,574 260,766 7.25%
Total 34,367,858 38,878,864 39,846,636 967,772 2.49%
Other 2016/17 Budget
1o%----- Expenditures by Function*
Debt Service
4%
Comm. & Econ.
Dev.
3% Capital Projects
14%
IiK
Culture and
Recreation
6% Public Works
27%
Note: Total does not include interfund transfers
General
Government
7%
I
Public Safety
29%
28
Expenditures by Budget Unit General Fund
Actual Actual Budget Budget Dollar Percent
2013/14 2014/15 2015/16 2016/17 Change Change
Administration 1,591,027 1,307,914 1,408,587 1,435,293 26,706 1.90%
Elected Officials 142,658 144,816 171,868 100,516 71,352) 41.52%
Comm & Econ Dev. 582,468 620,496 631,102 858,220 227,118 35.99%
Finance 2,100,660 2,480,387 2,849,272 4,110,503 1,261,231 44.27%
Police Commission 7,333 7,382 6,453 6,953 500 7.75%
Police 8,773,762 8,986,706 9,457,631 8,584,241 873,390) 9.23%
Dispatch 1,737,067 1,737,067 0.00%
Public Works -Admin 253,169 253,295 271,713 837,688 565,975 208.30%
Public Works - Streets 2,962,286 2,892,864 2,862,655 2,844,009 18,646) 0.65%
Parks & Recreation 1,771,480 2,117,393 2,320,643 2,212,116 108,527) 4.68%
18,184,843 18,811,253 19,979,924 22,726,606 2,746,682 13.75%
2016/17 Budget
Parks & General Fund
Recreationlea Expenditures by Budget Unit
Administration Elected Officials
Public Works - 6% 0%
Streets
Comm &Econ Dev.
12%
4%
Public Works -
Admin Finance
4% 18%
Dispatch
8% Police Commission
0%
Police
38 %
29
Expenditures by Category General Fund
Actual Actual Budget Budget Dollar Percent
2013/14 2014/15 2015/16 2016/17 Change Change
Personnel 12,826,464 12,826,464 13,891,360 15,132,083 1,240,723 8.93%
Contractual 1,657,086 1,657,086 1,814,800 1,900,617 85,817 4.73%
Supplies 821,011 821,011 815,745 809,320 6,425) 0.79%
Other 1,983,368 1,983,368 2,723,819 4,135,192 1,411,373 51.82%
Debt Service 719,451 719,451 729,960 729,319 641) 0.09%
Capital 177,462 177,462 4,240 20,075 15,835 373.47%
Total 18,184,842 18,184,842 19,979,924 22,726,606 2,746,682 13.75%
2016/17 Budget
General Fund
Debt Service Expenditures by Category
3%
Other-
1 R°
Supplies
4%
Contractual
8%
Personnel
67%
Capital
0%
30
Expense Budget 2016/17 All Funds
Total Total
Expenditures Expenditures Percentage
2015/16 2016/17 Difference Change
General Fund
Administration 1,408,587 1,435,293 26,706 1.90%
Elected Offices 171,868 100,516 71,352) 41.52%
Community & Economic Development 631,102 858,220 227,118 35.99%
Finance Department 2,849,272 4,110,503 1,261,231 44.27%
Police Commission 6,453 6,953 500 7.75%
Police Department 9,457,631 8,584,241 873,390) 9.23%
Dispatch Department 0 1,737,067 1,737,067 0.00%
Public Works - Administration 271,713 837,688 565,975 208.30%
Public Works - Streets 2,862,655 2,844,009 18,646) 0.65%
Parks and Recreation 2,320,643 2,212,116 108,527) 4.68%
Total General Fund 19,979,924 22,726,606 2,746,682 13.75%
Special Revenue Funds
Band Fund 15,000 15,000 0 0.00%
Civil Defense Fund 3,200 5,300 2,100 65.63%
Alarm Board Fund 60,000 27,950 32,050) 53.42%
Audit Fund 36,380 37,104 724 1.99%
Annexation Fund 45,000 45,000 0 0.00%
Motor Fuel Tax Fund 1,706,912 1,258,941 447,971) 26.24%
Developer Donations 42,540 42,540 0 0.00%
Developer Donations (Parks) 156,200 184,200 28,000 17.93%
TIF Fund 324,095 305,935 18,160) 5.60%
Pageant Fund 3,550 3,550 0 0.00%
Tourism Fund 95,000 95,000 0 0.00%
Total Special Revenue Funds 2,487,877 2,020,520 467,357) 18.79%
Capital Project Funds
Recreation Center Construction Fund 4,880,000 947,407 3,932,593) 0.00%
Special Service Area #1A 0 0 0 0.00%
Special Service Area #4A 16,847 16,847 0 0.00%
Capital Improvements Fund 1,452,500 4,210,480 2,757,980 0.00%
Local Street Improvements Fund 0 0 0
Capital Equipment Fund 263,225 479,300 216,075 0.00%
Total Capital Project Funds 6,612,572 5,654,034 958,538) 14.50%
Debt Service Funds
Debt Service Fund 1,556,555 1,653,799 97,244 6.25%
Total Debt Service Funds 1,556,555 1,653,799 97,244 6.25%
Proprietary Funds
Public Works - Water 2,691,104 2,976,706 285,602 10.61%
Public Works - Wastewater 4,246,485 6,222,280 1,975,795 46.53%
Public Works - Utility 1,045,985 1,184,636 138,651 0.00%
Capital Development Fund 0 1,195,910 1,195,910 0,00%
Marina Operations Fund 46,000 46,000 0 0.00%
Utility Improvements Fund 0 0 0 0.00%
Total Proprietary Funds 8,029,574 11,625,532 3,595,958 44.78%
Internal Service Funds
Risk Management Fund 689,206 702,636 13,430 1.95%
Information Technology Fund 461,100 515,787 54,687 11.86%
Health Insurance Fund 2,849,687 3,092,324 242,637 8.51%
Total Internal Service Funds 3,999,993 4,310,747 310,754 7.77%
Fiduciary Funds
Employee Medical Flexible Spending Fund 80,000 85,000 5,000 6.25%
Revolving Loan Fund 0 0 0 0.00%
Police Pension Fund 1,851,574 1,894,336 42,762 2.31%
Development Escrow Fund 0 0 0 0.00%
Retained Personnel Fund 40,000 75,000 35,000 87.50%
Fiduciary Funds 1,971,574 2,054,336 82,762 4.20%
Total All Funds S4453-8 069 50.045,574 5.407.505 12.11%
31
Expense Budget 2016/17 All Funds
Total Net
Budget Transfers Budget
General Fund
Administration 1,435,293 85,995 1,349,298
Elected Offices 100,516 5,843 94,673
Community & Economic Development 858,220 70,860 787,360
Finance Department 4,110,503 3,214,611 895,892
Police Commission 6,953 0 6,953
Police Department 8,584,241 396,754 8,187,487
Dispatch Department 1,737,067 134,777 1,602,290
Public Works - Administration 837,688 27,514 810,174
Public Works - Streets 2,844,009 102,715 2,741,294
Parks and Recreation 2,212,116 120,407 2,091,709
Total General Fund 22,726,606 4,159,476 18,567,130
Special Revenue Funds
Band Fund 15,000 0 15,000
Civil Defense Fund 5,300 0 5,300
Alarm Board Fund 27,950 0 27,950
Audit Fund 37,104 0 37,104
Annexation Fund 45,000 35,000 10,000
Motor Fuel Tax Fund 1,258,941 398,641 860,300
Developer Donations 42,540 0 42,540
Developer Donations (Parks) 184,200 0 184,200
TIF Fund 305,935 223,935 82,000
Pageant Fund 3,550 0 3,550
Tourism Fund 95,000 75,000 20,000
Total Special Revenue Funds 2,020,520 732,576 1,287,944
Capital Project Funds
Recreation Center Construction Fund 947,407 132,356 815,051
Special Service Area #1A 0 0 0
Special Service Area #4 16,847 16,847 0
Capital Improvements Fund 4,210,480 0 4,210,480
Local Streets Improvements 0 0 0
Capital Equipment 479,300 0 479,300
Total Capital Project Funds 5,654,034 149,203 5,504,831
Debt Service Funds
Debt Service Fund 1,653,799 0 1,653,799
Total Debt Service Funds 1,653,799 0 1,653,799
Proprietary Funds
Public Works - Water 2,976,706 1,257,433 1,719,273
Public Works - Wastewater 6,222,280 2,672,976 3,549,304
Public Works - Utility 1,184,636 0 1,184,636
Capital Development Fund 1,195,910 1,195,910 0
Marina Operations Fund 46,000 0 46,000
Utility Improvements Fund 0 0 0
Total Proprietary Funds 11,625,532 5,126,319 6,499,213
Internal Service Funds
Risk Management Fund 702,636 20,386 682,250
Information Technology Fund 515,787 7,408 508,379
Health Insurance Fund 3,092,324 0 3,092,324
Total Internal Service Funds 4,310,747 7,408 4,282,953
Fiduciary Funds
Employee Flexible Spending Fund 85,000 0 85,000
Revolving Loan Fund 0 0 0
Police Pension Fund 1,894,336 3,570 1,890,766
Development Escrow Fund 0 0 0
Retained Personnel Fund 75,000 0 75,000
Fiduciary Funds 2,054,336 3,570 2,050,766
Total All Funds 50,045,574 10,178,552 39,846,636
32
Authorized Personnel
General Fund
Administration
Elected Offices
Community Development
Finance Department
Police Department
Dispatch Department
Public Works - Administration
Public Works - Streets
Parks and Recreation
Total General Fund
Recreation Center Fund
Info Technology Fund
Water/Sewer Fund
Water Division
Wastewater Division
Utility Division
Total Water/Sewer Fund
Total City of McHenry
All Funds
2016/17 Change from
Budget Prior Year 2015/16 2014/15 2013/14 2012/13 2011/12 2010/11 2009/10 2008/09 2007/08
6.00 0.00 6.00 6.00 8.00 8.00 8.00 8.00 8.00 9.00 13.00
0.00 1.00) 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1,00
7.90 2.40 5.50 5.50 5.50 6.50 6.50 6.50 6.50 8.50 7.50
5.00 0.40 4.60 4.60 4.60 4.60 4.35 5.85 6.45 6.95 6.95
52.75 9.13) 61.88 60.88 60.88 60.88 60.60 60.00 63,00 66.00 68.00
12.25 12.25 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
4.50 2.50 2.00 2.00 2.00 2.00 2,00 2.00 1.00 3.00 2.00
18.00 0.00 18.00 19.00 18.00 18.00 18.00 18.00 19.00 19.00 21.00
11.00 2.00) 13.00 12.00 10.00 11.00 11.00 11.00 12.60 13.10 13.10
117.40 5.42 111.98 110.98 109.98 111.98 111.45 112.35 117.55 126.55 132.55
1.00 1.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
2.00 0.00 2,00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 1.00
5.50 4.00) 4.50 9.50 9.50 9.50 10.50 10.50 10.50 10.50 10.50
7.00 3.00) 7.00 10.00 9.00 10.00 10.00 10.00 10.00 10.00 10.00
9.00 9.00 8.00
21.50 2.00 19.50 19.50 18.50 19.50 20.50 20.50 20.50 20.50 20.50
141.90 7.42 133.48 132.48 130A8 133.48 133.95 134.85 140.05 149.05 154.05
Population 26,992 26,992 26,992 26,992 26,992 26,992 27,525 25,491 25,491 25,236
Employees per 1,000 Population 5.26 4.95 4.91 4.83 4.95 4.96 4.90 5.49 5.85 6.10
33
Personnel Expenses All Funds
Budget Budget Percent
2015/16 2015/16 Change Change
General Fund
Administration 761,213 790,198 28,985 3.8%
Elected Officials 116,881 58,023 58,858) 50.4%
Comm. & Econ Dev. 526,096 720,498 194,402 37.0%
Finance 386,417 414,937 28,520 7.4%
Police Commission 1,453 1,453 0 0.0%
Police Department 8,472,387 7,719,927 752,460) 8.9%
Dispatch Department 0 1,540,058 1,540,058 0.0%
Public Works - Administration 234,735 520,409 285,674 121.7%
Public Works - Street 1,928,129 1,947,604 19,475 1.0%
Parks & Recreation 1,464,049 1,418,976 45,073) 3.1%
Total General Fund 13,891,360 15,132,083 1,240,723 8.9%
Recreation Center Fund 0 266,651 266,651 0.0%
Water/Sewer Fund
Water 534,258 642,065 107,807 20.2%
Wastewater 799,981 817,981 18,000 2.3%
Utility 839,935 979,886 139,951 0.0%
Total Water/Sewer Fund 2,174,174 2,439,932 265,758 12.2%
IT Fund 212,549 201,830 10,719) 5.0%
Total Personnel Expenses 16,278,083 18,040,496 1,762,413 10.8%
34
Schedule of Anticipated Fund Balance All Funds
Ending
Beginning Excess Balance
Fund Balance 5/1/16 Revenues Appropriations Deficit) 4/30/17
General Fund 10,672,327 20,377,013 22,726,606 2,349,593) 8,322,734
Special Revenue Funds
Band Fund 16,842 15,000 15,000 16,842
Civil Defense Fund 2,804) 8,000 5,300 2,700 104)
Alarm Board Fund 292,105 153,000 27,950 125,050 417,155
Audit Fund 20,183 38,211 37,104 1,107 21,290
Annexation Fund 316,212 58,200 45,000 13,200 329,412
Motor Fuel Tax Fund 653,429 677,429 1,258,941 581,512) 71,917
Developer Donations 881,264 133,690 226,740 93,050) 788,214
TIF Fund 403,338) 326,000 305,935 20,065 383,273)
Pageant Fund 1,998) 3,600 3,550 50 1,948)
Tourism Fund 324,879 140,050 95,000 45,050 369,929
Capital Project Funds
Recreation Center Construction Fund 1,295,107 502,300 947,407 445,107) 850,000
Special Service Area #1A
Special Service Area #4 27 16,847 16,847 27
Special Service Area #6 179,115) 179,115)
Capital Improvements Fund 1,770,497 2,620,593 4,210,480 1,589,887) 180,610
Local Street Improvements Fund
Capital Equipment Fund 490,802 479,300 479,300) 11,502
Debt Service Funds
Debt Service Fund 378,143 1,653,949 1,653,799 150 378,293
Proprietary Funds
Public Works - Water/Wastewater/Utility 39,404,735 8,528,919 10,383,622 1,854,703) 37,550,032
Capital Development Fund 1,444,324 172,000 1,195,910 1,023,910) 420,414
Marina Operations Fund 439,128 51,500 46,000 5,500 444,628
Utility Improvements Fund 3,948,015 16,847 16,847 3,964,862
Internal Service Funds
Risk Management Fund 747,365 728,492 702,636 25,856 773,221
Information Technology Fund 220,593 515,787 515,787 220,593
Employee Insurance Fund 18,182 3,094,568 3,092,324 2,244 20,426
Fiduciary Funds
Employee Medical Flexible Spending Fund 85,000 85,000
Revolving Loan Fund 116,129 1,550 1,550 117,679
Police Pension Fund 21,590,936 2,664,244 1,894,336 769,908 22,360,844
Development Escrow Fund 500 500 500
Retained Personnel Fund 75,000 75,000
Eliminations & Adjustments
84,453,970 42,658,289 50,045,574 7,387,285) 77,066,685
35
HEART OF THE FOX RIVERY
GENERAL FUND OPERATING BUDGETS
Administration (100.01)
Elected Officials (100.02)
Community Development (100.03)
Finance (100.04)
Police Commission (100.21)
Police (100.22)
Police Dispatch (100.23)
Public Works Administration (100.30)
Public Works - Streets Division (100.33)
Parks & Recreation (100.41)
36
FY16-17 General Fund Budget
FY16-17 Budget FY15-16 FY15-16
Budget Change Budget
8 month
Actual
Total General Fund Revenues 20,377,013 994,653 19,382,360 15,661,297
General Administration
4010 Salaries 551,498 17,075 534,423 359,551
4050 Overtime 1,000 500 500 1,045
4110 Salaries -Seasonal
4190 Salary Adjustment 13,683 858 12,825
4220 Boards & Commission Expense 8,740 8,740 5,383
4310 Health/Vision 90,094 6,786 83,308 60,912
4320 Dental Insurance 4,102 101) 4,203 2,342
4330 Life Insurance 414 414 297
4340 Insurance Premiums Vision 222 31) 253 175
4410 FICA Medicare 43,561 1,410 42,151 24,159
4420 IMRF Retirement 76,434 2,488 73,946 46,494
4510 Uniform Allowance 450 450
Total Personnel 790,198 28,985 761,213 500,358
5110 Contractual Services 186,800 15,300 171,500 140,149
5230 Legal Fees Corporate 250,000 250,000 176,061
5310 Postage & Meter 2,500 500 2,000 2,850
5320 Telephone 10,000 1,000) 11,000 5,898
5330 Printing & Publishing 2,500 500) 3,000 1,614
5370 Repair & Maintenance 750 250 500 165
5410 Dues 15,300 500) 15,800 16,688
5420 Travel Expenses 3,000 200 2,800 3,589
5430 Training 5,900 3,000 2,900 2,737
5440 Tuition Reimbursements
5450 Publications 400 400 207
5510 Utilities 4,500 1,000 3,500 861
5970 IMF Expense
Total Contractual 481,650 18,250 463,400 350,819
6110 Materials and Supplies 61,450 3,750) 65,200 40,643
6210 Office Supplies 1,200 300) 1,500 881
6250 Gasoline & Fuel 500 500
6270 Small Equipment 500 500
Total Supplies 63,650 4,050) 67,700 41,524
6940 Administrative Expense 13,800 1,000) 14,800 7,737
9920 Purch Sery - Risk Mgt 52,732 18,875) 71,607 47,738
9922 Purch Sery - Info Tech 33,263 3,396 29,867 19,911
9942 Transfer -Cap Imp Fund
Total Other 99,795 16,479) 116,274 75,386
8100 Capital - Land Acquisition
8200 Capital - Bldg Improvments
8300 Capital - Equipment
8700 Capital - Furniture
Total Capital
Total Administration Department 1,435,293 26,706 1,408,587 968,087
37
Administration Office
Mission Statement
It is the mission of the Administration Office to provide general administrative services for the City and
coordinate, supervise, and direct the affairs of all departments. In addition, the Administrative Office
serves as the primary point of communication with the City Council, established Council committees, and
the general public.
Primary Functions --> There are three primary operating functions within the Administration Office.
City Administrator's Office: Has primary responsibility for the day to day operation of the City
and all departments. The Administrator's Office prepares all agendas and provides information to
the City Council and various committees for review prior to decision making. The
Administrator's Office is also directly responsible for the City's human resources function, which
includes risk management.
Facilities and Business District Maintenance: Responsible for the information technology and
maintenance of City buildings, the downtown business districts, and the Riverwalk.
Development Services: Oversight of Public Works and Community Development departments
in reviewing and managing development and redevelopment projects.
2015/16 Accomplishments
Development of annual 5-Year Capital Improvement Program and balanced annual budget.
Development of Fund Balance and Reserve Policy for implementation by the City Council.
Coordinated with Finance Director to achieve GFOA "Distinguished Budget Award"
recognition.
Coordinated with Finance Director to implement Quarterly Budget Report on City Council
Agendas.
Led the review and recommendation for the adoption of new water and sewer rates, including
capital base fees.
Completed intensive 10-month Leadership Greater McHenry County program.
Coordinated with Human Resources Manager to hire Community Development Director.
Coordinated with Public Works Director, Economic Development Director, City Attorney, and
various other municipal staff members to evaluate and recommend changes to the City's
engineering functions which will include the hiring of a staff Project Manager/Project Engineer
and revising the relationship with the appointed City Engineer.
Coordinated with Police Department and led discussions with other municipalities/jurisdictions
to facilitate the selection of McHenry as a consolidated dispatch center.
Worked with Director of Public Works, City Attorney and City Engineer to develop,
recommend, and receive Council approval for the decommissioning of the Central Wastewater
Treatment Plant through the acquisition of a $33.5 million State Revolving Loan.
38
Administration Office
Worked with Deputy City Administrator/Parks and Recreation Director to facilitate the
construction of a new $4.5 million, 18,200 square foot recreation facility.
Negotiated new, 3-year, bargaining unit contract with the Fraternal Order of Police/Unit I
Patrol).
2016/17 Goals and Objectives
Negotiate new contract with IOUE 150 (Public Works/Parks Maintenance Workers).
Coordinate with Director of Public Works and Human Resources Manager to recruit and hire
Project Manager/Project Engineer.
Work with Director of Public Works to develop a new master agreement with City Engineering
firm based on direction provided by Council.
Coordinate with Director of Public Works to pre -quality engineering firms for selective bidding
on public improvement projects.
Work with Police Chief and Deputy City Administrator to facilitate build out of relocated Police
Administration and Dispatch functions.
Complete agreement for transfer of boat ramp rights from the Village of Lakemoor and
coordinate with Deputy City Administrator to implement process for construction of new ramp
at Miller Riverfront Park.
Coordinate with Director of Finance for submittal of FY16/17 Budget to GFOA to achieve
Distinguished Budget Award"
39
Administration Office
Budget Summary
ADMINISTRATION OFFICE
BUDGET SUMMARY
8 MONTH
2014115 2015116 2015/16 2016/17 INCREASE
ACTUAL BUDGET ACTUAL BUDGET DECREASE)
EXPENDITURES
PERSONNEL 770,874 761,213 500,358 790,198 28,985
CONTRACTUAL 396,728 463,400 350,819 481,650 18,250
SUPPLIES 27,462 67,700 41,524 63,650 4,050)
OTHER 107,429 116,274 75,386 99,795 16,479)
CAPITAL EXPENDITURES 0 0 0 0 0
TOTAL 1,302,493 1,408,587 968,087 1,435,293 26,706
INCREASE
PERSONNEL AUTHORIZATION 2013/14 2014/15 2015/16 2016/17 DECREASE)
TOTAL 8.00 6.00 6.00 6.00 0.00
2015/16 2015/16 2016/17 2016/17
AMOUNT PERCENTAGE AMOUNT PERCENTAGE
FUNDING SOURCE
GENERAL REVENUES 1,406,087 99.8 1,432,793 99.8
TRANSFER FROM OTHER FUNDS 2,500 0.2 2,500 0.2
TOTAL 1,408,587 100.0 1,435,293 100.0
Budget Highlights
Personnel costs increase due to providing union employees increases, non -bargaining unit
employees merit -based increases as well as increases to retirement and insurance costs.
Contractual services increase $18,250 due to increased costs for mosquito abatement as well as
increased training costs for leadership training.
Supplies expenses decrease $4,050 due to prior years' actual spending.
Transfer for Information Technology increases $3,396 to cover additional IT expenses including
personnel costs and software maintenance, while Transfer for Risk Management decreases 18,875
due to lower premium costs.
40
Administration Office
Personnel Review
Administration Office
Personnel Schedule
2015/16 Budget 2016/17 Budget Change
Dollars Number of Dollars Number of Dollars Number of
Salaries Grade Budgeted Employees Budgeted Employees Budgeted Employees
City Administrator 18 151,439 1.00 154,570 1.00 3,131 0.00
Director of Economic Development 14 97,382 1.00 100,060 1.00 2,678 0.00
Deputy City Administrator 14 85,139 1.00 87,693 1.00 2,554 0.00
Human Resources Manager 12 85,123 1.00 84,633 1.00 490) 0.00
Executive Assistant 5 59,946 1.00 66,812 1.00 6,866 0.00
Bldg & Grnds Custodian I -A 45,667 1.00 50,391 1.00 4,724 0.00
Overtime 500 1,000 500
Temporary 0 0 0
Sickpay Buyback/Health Insurance Incentive 5,527 3,139 2,388)
Administrator Car Allowance 4,200 4,200 0
Salary Adjustment 12,825 13,683 858
Severance 0 0 0
Longeuty Bonus 0 0 0
Board & Commission 8,740 8,740 0
Total 556,488 6.00 574,921 6.00 18,433 0.00
Benefits
IMRF Retirement 73,946 76,434 2,488
FICA/Medicare 42,151 43,561 1,410
Health/Vision 83,561 90,316 6,755
Dental 4,203 4,102 101)
Life Insurance 414 414 0
Uniform Allowance 450 450 0
Subtotal 204,725 215,277 10,552
Total 761, 213 790,198 28, 985
41
FY16-17 General Fund Budget
FY16-17 Budget FY15-16 FY15-16
Budget Change Budget
8 month
Actual
Elected Officials
4010 Salaries 36,943) 36,943 27,719
4040 Temporary
4050 Overtime 500) 500
4190 Salary Adjustment 924) 924
4210 Elected Official Salaries 53,900 2,550) 56,450 32,233
4310 Health/Vision 9,075) 9,075 5,855
4320 Dental Insurance 417) 417 269
4330 Life Insurance 69) 69 30
4340 Vision Insurance 69) 69 44
4410 FICA Medicare 4,123 3,131) 7,254 4,490
4420 IMRF Retirement 5,180) 5,180 3,241
4510 Uniform Allowance
Total Personnel 58,023 58,858)1 116,881 73,881
1
5110 Contractual Services 250) 250
5310 Postage & Meter 6,300 6,300 4,479
5320 Telephone 1,000 500) 1,500 661
5330 Printing & Publishing 6,500 6,500 1,355
5410 Dues 1,100 300 800 630
5420 Travel 250 250 259
5430 Training 1,500 1,075) 2,575
5450 Publications 500 400 100 426
Total Contractual 17,150 1,125) 18,275 7,810
6110 Materials and Supplies 500) 500
6210 Office Supplies 200 300) 500 58
6270 Small Equipment
6910 Employee Recognition
Total Supplies 200 800) 1,000 58
6940 Administrative Expense 19,300 19,300 2,499
9922 Purch Service - Info Tech 5,843 10,569) 16,412 10,941
Total Other 25,143 10,569) 35,712 13,440
8300 Capital - Equipment
Total Capital
Total Elected Officials Department 100,516 71,352) 171,868 95,189
42
114
CITY OF MCHENRY
ELECTED OFFICIALS
W
Elected Officials
Mission Statement
It is the mission of the Mayor, City Council, and City Clerk to serve the citizens of the City of McHenry.
Primary Functions —> The following are the primary functions for each of the elected offices.
Mayor's Office: The primary function of the Mayor is to provide leadership, initiative, and
direction necessary to provide quality services to the citizens of McHenry. Recommend
appointment of members to the various Boards and Commissions within the City.
City Council: The City Council is the legislative body for the City of McHenry. Adoption of
laws, ordinances and resolutions, as deemed proper to promote and protect the high level of
service quality and financial stability in the City.
City Clerk: The City Clerk has responsibility for taking minutes for all regular City Council
meetings, standing council committee meetings, and planning and zoning board meetings. The
City Clerk is also responsible for records management.
2016/17 Goals and Objectives
Continue to support the implementation of economic development initiatives for the
redevelopment of vacant and/or underutilized properties throughout the community.
Promote, encourage, initiate, and realize redevelopment in the downtown areas in the City of
McHenry.
Make customer service a priority in all interactions between organization and residents of the City
of McHenry and between employees within the organization.
Plan for and provide public facilities and infrastructure to meet the needs of the community and
organization.
Maintain the community as a safe place to live, work, and play.
44
Elected Officials
Budget Summary
ELECTED OFFICALS
BUDGET SUMMARY
8 month
2014/15 2015/16 2015/16 2016117 INCREASE
ACTUAL BUDGET ACTUAL BUDGET DECREASE)
EXPENDITURES
PERSONNEL 95,938 116,881 73,881 58,023 58,858)
CONTRACTUAL 14,919 18,275 7,810 17,150 1,125)
SUPPLIES 178 1,000 58 200 800)
OTHER 33,783 35,712 13,440 25,143 10,569)
CAPITAL EXPENDITURES 0 0 0 0 0
TOTAL 144,818 171,868 95,189 100,516 71,352)
INCREASE
PERSONNEL AUTHORIZATION 2013/14 2014/15 2015/16 2016/17 (DECREASE)
TOTAL 1.00 1.00 1.00 1.00 0.00
2015/16 2015/16 2016117 2016/17
AMOUNT PERCENTAGE AMOUNT PERCENTAGE''
FUNDING SOURCE
GENERAL REVENUES $171,868 100.0 100,516 100.0
TOTAL $171,868 100.0 100,516 100.0
Budget Highlights
Personnel expenses decrease $58,858 due to a transfer of the office assistant to the Community
and Economic Development department.
Contractual and supplies expenses decrease to better match actual expenses over the last few
years.
Other expenses decrease due to a decrease in Purchase of services, risk management transfer due
to lower estimated premiums.
45
Elected Officials
Personnel Review
Salaries
Mayor
City Clerk
Office Assistant
Overtime
Sickday Buyback Incentive
Longevity Bonus
Salary Adjustment
Total
Benefits
IMRF Retirement
Insurance
rm Allowance
Elected Officials
Personnel Schedule
2015/16 Budget
Dollars Number of
Grade Budgeted Employees
Elected 17,300
Elected 29,400
Elected 9,750
2 36,943 1.00
500
0
0
924
94,817 1.00
5,180
7,254
9,144
417
69
0
22,064
116,881
2016/17 Budget
Dollars Number of
Budgeted Employees
17,300
29,400
7,200
0 0.00
0
0
0
0
53,900 0.00
0
4,123
0
0
0
0
4,123
58, 023
Change
Dollars Number of
Budgeted Employees
0 0.00
0 0.00
2,550) 0.00
36,943) 1.00)
500)
0
0
40, 917) 0.001
5,180)
3,131)
9,144)
417)
69)
0
17,941)
58, 858)
46
COMMUNITY AND ECONOMIC DEVELOPMENT
FY16-17 General Fund Budget
FY16-17 Budget FY15-16 FY15-16
Budget Change Budget
8 month
Actual
Community and Economic Development
4010 Salaries 470,138 133,193 336,945 226,645
4050 Overtime 1,500) 1,500
4190 Salary Adjustment 11,753 3,292 8,461
4310 Health/Vision 130,049 29,094 100,955 65,110
4320 Dental Insurance 5,083 747 4,336 2,794
4330 Life Insurance 545 165 380 163
4340 Vision Premiums 260 111 149 97
4410 FICA Medicare 36,865 10,327 26,538 16,127
4420 IMRF Retirement 65,055 18,223 46,832 29,487
4510 Uniform Allowance 750 750
Total Personnel 720,498 194,402 526,096 340,423
5110 Contractual Services 39,962 17,500 22,462 35,640
5310 Postage & Meter 1,200 1,200 761
5320 Telephone 3,000 800) 3,800 1,466
5330 Printing & Publishing 500 500 173
5370 Repairs & Maint - Vehicles 1,600 1,600 1,518
5410 Dues 700 700 160
5420 Travel Expenses 250 250 455
5430 Training 1,200 1,200
5440 Tuition Reimbursement
5450 Publications 3,000 2,500 500
Total Contractual 51,412 19,200 32,212 40,173
6110 Materials and Supplies 6,400 6,400 60
6210 Office Supplies 2,000 2,000 1,139
6250 Gasoline and Oil 5,000 5,000 3,154
6270 Small Equipment 500 500 11
Total Supplies 13,900 6,900 7,000 4,364
7110 Cap. Lease Princpl Pyments + 1,550 395) 1,945
9920 Purch Sery - Risk Mgt 25,116 179) 25,295 16,863
9922 Purch Sery - Info Tech 45,744 7,190 38,554 25,703
Total Other 70,860 7,011 63,849 42,566
8200 Capital - Building
8400 Capital - Vehicles
Total Capital
Total Community & Economic Development
Department 858,220 227,118 1 631,102 1 427,526
48
Community & Economic Development
Mission Statement
The Community and Economic Development Department's mission is to foster orderly growth and
development of the City, provide quality customer service and timely responses to inquiries and requests
for service. The department is also responsible for improving the quality of life for the residents of the
community and assist in attracting, retaining and serving businesses, as well as protecting the health,
safety and welfare of the community through proper administration and enforcement of City ordinances,
property maintenance codes, zoning regulations and building codes.
Primary Functions —> The following are the department's primary areas of responsibility:
Planning and Economic Development: The Community and Economic Development
Department is the first point of contact with potential businesses, developers, citizens and elected
officials regarding service inquiries, development projects and potential new business
opportunities. The department is responsible for effectuating orderly physical and economic
growth of the City, attracting, retaining and serving businesses and residents in the community.
Neighborhood Services: The department is responsible for the enforcement of the International
Property Maintenance Code and other City ordinances, responding in a timely manner to citizen
inquires and requests for service in order to maintain the high quality of life citizens enjoy on a
daily basis.
Construction Services: The department reviews all minor, temporary use, residential and
commercial permits and provides building, mechanical, electrical inspections for existing and
new construction.
2015/16 Accomplishments
Continued multi -faceted effort to retain existing businesses and attract new businesses to the
City.
Continued to improve customer service by establishing performance goals for processing
permits.
Expanded efforts to utilize BS&A building permit software/code enforcement system to its
fullest extent. Improved department permit processing efficiency and instituted more
proactive code enforcement approach throughout City.
Maintained building inspection and code enforcement services program for the Village of
Prairie Grove.
Reviewed municipal code to identify and address inconsistencies, ways to be more business -
friendly and proposed updated regulations to reflect current trends including amendments to
the fence and sign ordinances.
Reviewed and made recommended changes to the fence ordinance.
Updated city's Storm Water ordinance to reflect changes and mandates required by the
McHenry County Storm Water department.
Updated the zoning ordinance pertaining to outdoor seating and entertainment.
49
Community & Economic Development
Analyzed report completed by Chicago Metropolitan Agency for Planning in 2013 and
recommend amendments to the comprehensive plan, zoning ordinance, municipal code and
subdivision control and development ordinance to address and improve upon groundwater
protection, decreasing stormwater runoff and increasing more on -site stormwater infiltration.
Continued to work with taxing bodies in formulating boiler plate agreement and policy to
establish and implement incentive review procedures in an effort to encourage expedited
occupancy of large vacant buildings and underutilized properties.
2016/17 Goals and Objectives
Finalize an Intergovernmental Agreement and procedures to work more closely with
McHenry Township Fire Protection District (MTFPD) for the conducting of annual business
inspections.
Develop a code enforcement strategy to help in providing a direction to staff, council and the
community.
Continue to provide highest quality of building inspection and code enforcement
services to the residents of McHenry through a proactive, educational, and
compliance based approach.
Aggressively pursue redevelopment of Miller Point
Continue to work with interested parties to reopen Downtown McHenry Theater
Continue business retention visits to primary employers
Continue implementation of BS&A building permit/code enforcement software, with
a focus on development of customized reports.
Continue aggressive implementation of economic development efforts through
support of Director of Economic Development.
Perform a thorough review of the adjudication process and makes changes where
necessary based on findings.
Review the accessory structure, lighting and sound ordinances with input from the
Community Development Committee and make necessary changes.
50
Community & Economic Development
Budget Summary
COMMUNITY & ECONOMIC DEVELOPMENT
BUDGET SUMMARY
8 MONTH
2014/15 2015/16 2015/16 2016/17 INCREASE
ACTUAL BUDGET ACTUAL BUDGET DECREASE)
EXPENDITURES
PERSONNEL 505,174 526,096 340,423 720,497 194,401
CONTRACTUAL 39,152 32,212 40,173 51,412 19,200
SUPPLIES 12,284 7,000 4,364 13,900 6,900
OTHER 63,886 65,794 42,566 72,410 6,616
CAPITAL EXPENDITURES 0 0 0 0 0
TOTAL 620, 496 631,102 427, 526 858, 219 227,117
INCREASE
PERSONNEL AUTHORIZATION 2013/14 2014/15 2015/16 2016/17 DECREASE)
TOTAL 6.00 5.50 5.50 7.90 2.40
2015/16 2015/16 2016/17 2016/17
AMOUNT PERCENTAGE AMOUNT PERCENTAGE
FUNDING SOURCE
BUILDING PERMIT FEES 82,688 13.5 91,163 10.6
PLUMBING INSPECTION 5,513 0.9 7,000 0.8
ZONING/PLAT FEES 6,000 1.0 10,000 1.2
PROPERTY FINES 4,700 0.8 30,000 3.5
GENERAL REVENUES 512,743 83.8 720,056 83.9
TOTAL 611,644 100.0 858,219 100.0
Budget Highlights
Personnel expenses increase $194,401 due to the addition of a CED Director, transfer of an
administrative assistant from the Elected Officials department, addition of a part-time office
assistant as well as merit -based increases for non -bargaining unit employees as well as increases
to retirement and insurance costs.
Contractual Costs increase $19,200 due to additional mowing costs; these costs are recouped
when the property owners are billed.
Supplies costs increase $6,900 due to the need for a color scanner.
Purchase of services, information technology costs increase by $7,190 to cover actual expenses
within that fund including increases in personnel costs as well as software maintenance costs.
51
Community & Economic Development
Personnel Review
Community & Economic Development
Personnel Schedule
2015/16 Budget
Dollars Number of
Salaries Grade Budgeted Employees
Director of Community Development 14 0 0.00
Supt. Commercial Inspections 11 83,243 1.00
Supt. Residential Inspections 11 78,258 1.00
Plumbing Inspector 6 33,448 0.50
Permit Tech 50,844 1.00
Code Compliance Inspector 3 46,746 1.00
Admin Assistant 2 44,195 1.00
Office Assistant 0 0.00
Overtime 1,500
Longevity Bonus 0
Sickday Payback Incentive 211
Salary Adjustment 8,461
Subtotal 346,906 5.50
2016/17 Budget Change
Dollars Number of Dollars Number of
Budgeted Employees Budgeted Employees
82,284 1.00 82,284 1.00
85,532 1.00 2,289 0.00
80,410 1.00 2,152 0.00
34,201 0.50 753 0.00
41,000 1.00 9,844) 0.00
47,798 1.00 1,052 0.00
85,045 2.00 40,850 1.00
13,312 0.40 13,312 0.40
0 1,500)
0 0
556 345
11,753 3,292
481,891 7.90 134,985 2.40
Benefits
IMRF Retirement 46,832 65,055 18,223
FICA/Medicare 26,538 36,865 10,327
HealthNision 101,104 130,309 29,205
Dental 4,336 5,083 747
Life Insurance 380 545 165
Uniform Allowance 0 750 750
Subtotal 179,190 238,607 59, 417
Total $526,096 $720,497 $194,401
52
FINANCE
n
W
FY16-17 General Fund Budget
FY16-17 Budget FY15-16 FY15-16
Budget Change Budget
8 month
Actual
Finance
4010 Salaries 229,812 5,592 224,220 155,275
4030 Salraries - PT 39,906 13,834 26,072 11,464
4050 Overtime
4190 Salary Adjustment 6,743 486 6,257
4310 Health/Vision 76,602 4,214 72,388 47,044
4320 Dental Insurance 2,997 222 2,775 2,009
4330 US Life Insurance 317 317 137
4340 Vision Insurance 89 39) 128 87
4410 FICA Medicare 21,149 1,523 19,626 11,852
4420 IMRF Retirement 37,322 2,688 34,634 21,693
4510 Uniform Allowance
Total Personnel 414,937 28,520 386,417 249,561
5110 Contractual Services 5,395 725 4,670 7,012
5310 Postage & Meter 30,200 5,000 25,200 25,238
5320 Telephone 600 400) 1,000 364
5330 Printing & Publishing 21,235 3,250 17,985 12,647
5410 Dues 525 525 225
5420 Travel Expenses
5430 Training 500 500
5440 Tuition Reimbursements
5450 Publications
Total Contractual 58,455 8,575 49,880 45,486
6110 Materials and Supplies 82
6210 Office Supplies 7,500 900 6,600 5,816
6270 Small Equipment 2,000) 2,000 90
Total Supplies 7,500 1,100) 8,600 5,988
6940 Administrative Expenses
6945 Development Expense 415,000 140,000 275,000 344,918
9904 Transfer to Debt Service 729,319 641) 729,960 486,640
9907 Transferto SSA
9909 Transfer to MFT
9942 Transfer to Capital Improvements Fund 2,381,459 1,318,959 1,062,500 708,333
9944 Transfer to Band Fund 15,000 15,000 10,000
9945 Transfer to Civil Defense Fund 8,000 3,000 5,000 3,333
9946 Transfer to Capital Equipment Fund 243,225) 243,225 162,150
9920 Purch Sery - Risk Mgt 17,178 2,552) 19,730 13,153
9922 Purch Sery - Info Tech 63,655 9,695 53,960 35,973
9938 Employee Insurance Transfer I -
Total Other 3,629,611 1,225,236 2,404,375 1,764,500
Total Finance Department 4,110,503 1,261,231 2,849,272 2,065,535
54
Finance Department
Mission Statement
It is the mission of the Finance Department to account for all municipal resources and to apply such
resources in a manner that is most beneficial to the citizens of McHenry.
Primary Functions —> There are three primary operating functions within the Finance Department.
Administration: Responsible for management of financial affairs of the city, including
budgeting and financial planning, and supervision of operations within the department.
Accounting: Provides the City's financial reporting, payroll processing, accounts payable and
receivable, purchasing, fixed asset reporting, special tax collections, billing, and auditing
functions.
Revenue: Collects various revenues, manages the Police Pension fund, ensures payments to
retirees are processed, and invests idle City funds.
2015/16 Accomplishments
Completed the conversion to Tyler Technologies Incode Version 10.
Worked to find alternative methods for residents to pay bills electronically as well as have the
ability to look up their bill electronically.
Continued working with the state to join the Local Debt Recovery Program in order to capitalize
on the states resources to collect bad debt.
Cleaned up the budget process, creating new summary sheets to better outline data.
2016/17 Goals and Objectives
Improve management of the City's investment portfolio, including implementing cash flow
modeling and investment strategies.
Continue to familiarize ourselves with the Tyler software, working with support when necessary
to become proficient.
Improve communication of information to new residents.
Begin using the State of Illinois Local Debt Recovery program in order to be able to take
advantage of garnishing tax return funds for residents that have bad debts.
55
Finance Department
Budget Summary
FINANCE DEPARTMENT
BUDGET SUMMARY
8 months
2014/15 2015/16 2015/16 2016/17 INCREASE
ACTUAL BUDGET ACTUAL BUDGET DECREASE)
EXPENDITURES
PERSONNEL 384,317 386,417 249,561 414,937 28,520
CONTRACTUAL 46,098 49,880 45,486 58,455 8,575
SUPPLIES 43,989 8,600 5,988 7,500 1,100)
OTHER 2,005,982 2,404,375 1,764,500 3,629,611 1,225,236
TOTAL 2,480,386 2,849,272 2,065,535 4,110,503 1,261,231
INCREASE
PERSONNEL AUTHORIZATION 2012/13 2014115 2015/16 2016/17 DECREASE)
TOTAL 4.60 4.60 4.60 5.00 0.40
2015/16 2015/16 2016/17 2011/12
BUDGET PERCENTAGE BUDGET PERCENTAGE
FUNDING SOURCE
PURCHASE OF SERVICE W/S FUND 451,925 15.9 458,704 11.2
GENERAL REVENUES 2,397,347 84.1 3,651,799 88.8
TOTAL 2,849,272 100.0 4,110,503 100.0
Budget Highlights
Personnel costs increase due to providing non -bargaining unit employees merit -based increases as
well as increases to retirement and insurance costs.
Contractual costs increase due to postage and printing costs for water/sewer bills as well as
vehicle stickers.
Supplies costs decrease $1,100 due to a review of previous years' actual balances.
Other costs increase $1,137,370. Developer incentives, a sales tax rebate, are expected to be
415,000 which is $140,000 more than last year. Transfers for capital items are at $2,349,593,
which is an increase of $1,043,868 over last year, the IT fund transfer increases $9,695 due to
increases in wage and benefits as well as software maintenance, and the Risk Management
transfer decreases $2,552 due to lower premium costs.
56
Finance Department
Personnel Review
Finance Department
Personnel Schedule
2015/16 Budget 2016/17 Budget Change
Dollars Number of Dollars Number of Dollars Number of
Salaries Grade Budgeted Employees Budgeted Employees Budgeted Employees
Finance Director 15 85,139 1.00 87,267 1.00 2,128 0.00
Finance Specialist 3 135,981 3.00 139,445 3.00 3,464 0.00
Office Assistant 1 26,072 0.60 39,906 1.00 13,834 0.40
Overtime 0 0 0
Sickpay Buyback Incentive/Insurance Opt -Out 3,100 3,100 0
Salary Adjustment 6,257 6,743 486
Longevity Bonus 0 0 0
Salary Savings 0 0 0
Total 256,549 4.60 276,461 5.00 19,912 0.40
Benefits
IMRF Retirement 34,634 37,322 2,688
FICA/Medicare 19,626 21,149 1,523
Health/Vision 72,516 76,691 4,175
Dental 2,775 2,997 222
Life Insurance 317 317 0
Uniform Allowance 0 0 0
Subtotal 129,868 138,476 8,608
Total 386,417 414,937 28,520
57
FY16-17 General Fund Budget
FY16-17 Budget FY15-16 FY15-16
Budget Change Budget
8 month
Actual
Police Commission
4220 Salaries (Commissioners) 1,350 1,350
4410 Social Security 103 103
5110 Contractual Services 4,625 4,625 3,877
5330 Printing and Publishing
5410 Dues 375 375 375
5420 Travel Expenses
5430 Training 500 500
5450 Publications
6110 Materials & Supplies
Total Police Commission 6,953 500 6,453 4,252
58
Police Commission
Mission Statement
It is the mission of the Police Commission to recruit and promote the best available persons possible for
sworn positions with the McHenry Police Department.
Primary Functions --> The primary function of the Police Commissioners is to select sworn personnel in
accordance with the employment policy of the City of McHenry, as well as to investigate and conduct
hearings regarding complaints alleged against any sworn member of the McHenry Police Department.
Budget Summary
EXPENDITURES
PERSONNEL
CONTRACTUAL
TOTAL
FUNDING SOURCE
GENERAL REVENUES
Budget Highlights
No significant changes.
POLICE COMMISSION
BUDGET SUMMARY
8 month
2014/15 2015/16 2015/16 2016/17 INCREASE
ACTUAL BUDGET ACTUAL BUDGET DECREASE)
1,453 $1,453 $0 1,453 0
5,929 5,000 4,252 5,500 500
7,382 $6,453 $4,252 6,953 500
2015/16 2015/16 2016/17 2016/17
AMOUNT PERCENTAGE AMOUNT PERCENTAGE
6,453 100.0 $6,953 100.0
6.453 100.0 $6.953 100.0
59
Thomas Walsh
Commander
Operations Division
Patrol Division
Street Crimes Unit
Bicycle Unit
John Jones
Chief of Police
John Birk
Deputy Chief Police
Critical Accident Unit
Evidence Team
Field Training
Program
Laura King
Commander
Support Services Division
Accreditation
Management
Records Section
Community Relatio
NIPAS i
I Records Section
Communication
Section
Administrative
Community Service
Officer
Training Function
FY16-17 General Fund Budget
FY16-17 Budget FY15-16 FY15-16
Budget Change Budget
8 month
Actual
Police Department
4010 Salaries 254,819 524,147) 778,966 612,314
4020 Sworn Salaries 4,116,926 8,051) 4,124,977 2,755,943
4030 Salaries Part time 49,580 41,715) 91,295 29,328
4050 Overtime 5,000 40,000) 45,000 40,469
4055 Sworn Overtime 244,500 244,500 174,770
4080 Dual Career 14,000 14,000
4190 Salary Adjustment 123,791 18,470 105,321
4310 Health/Vision 904,035 153,744) 1,057,779 681,616
4320 Dental Insurance 37,526 6,720) 44,246 28,595
4330 Life Insurance 3,674 596) 4,270 1,818
4340 Vision Insurance 1,783 720) 2,503 1,614
4410 FICA Medicare 367,859 45,551) 413,410 264,287
4420 IMRF Retirement 42,390 82,956) 125,346 84,830
4430 Contribution - Police Pension 1,524,244 136,870 1,387,374 1,386,205
4510 Uniform Allowance 29,800 3,600)I 33,400 1 15,824
Total Personnel 7,719,927 752,460) 8,472,387 6,077,613
5110 Contractual Services 87,830 7,020) 94,850 83,901
5310 Postage & Meter 3,000 3,000 2,416
5320 Telephone 46,280 2,800) 49,080 32,196
5370 Vehicle Repair and Maintenance 52,500 2,500 50,000 33,831
5410 Dues 1,800 1,800 485
5420 Travel Expense 18,000 1,325 16,675 8,339
5430 Training Expense 32,225 13,950) 46,175 13,560
5440 Tuition Reimbursement 12,000 4,000 8,000 5,652
5450 Publications 800 800 445
5510 Utilities 1,500 1 1,500
Total Contractual 255,935 15,945) 271,880 180,825
6110 Materials and Supplies 22,325 6,425 15,900 13,899
6210 Office Supplies 16,150 500) 16,650 9,691
6250 Gasoline and Oil 140,000 20,000) 160,000 63,064
6270 Small Equipment 7,775 6,920) 14,695 15,040
6310 K-9 Unit 5,300 5,300 2,281
6340 Forfeiture Expenses
Total Supplies 191,550 20,995) 212,545 103,975
9922 Purch Sery - Info Tech 162,405 66,341) 228,746 152,497
9920 Purch Sery - Risk Mgt 234,349 33,484) 267,833 178,555
Total Other 396,754 99,825) 496,579 331,052
8300 Capital - Equipment 20,075 15,835 4,240 4,542
8400 Capital - Vehicle
Total Capital 20,075 15,835 4,240 4,542
Total Police Department 8,584,241 873,390) 9,457,631 6,698,007
61
Police Department
Mission Statement
It is the mission of the City of McHenry Police Department to provide quality police services to the
community by promoting a safe environment through police and citizen interaction with emphasis on
integrity, fairness and professionalism.
Primary Functions -> There are two operating divisions within the Police Department
Administration: Administrative Services is responsible for administrative and support services
in divisions that include patrol and support services.
Patrol: Personnel assigned to this division are responsible for patrolling the community to deter
and detect criminal activity, respond to calls for service both routine and emergency, and enforce
traffic regulations.
Support Services: The Support Services Division is responsible for tasks that support the efforts
of the Patrol Division. The planning and research section and dispatch section also falls within
this unit.
2015/16 Accomplishments
In 2015/16 the McHenry Police Department was proud to hire two new patrol officers and three
new dispatchers. All of these new employees were hired to replace vacancies from the 2014/15
fiscal year. We are excited to have them join our team. We are proud to hire Brett Kinney,
previously from the Huntley Police Department, and Officer Ryan Erhart. The three dispatchers
we hired are Katie Fitzgerald, Ryan Miller and John Giambeluca.
The McHenry Police Department in an effort to accomplish the agency mission has participated
in the following community based outreach programs during the 2015/2016 year: St. Baldrick's
for juvenile cancer, Child Safety Seat inspections, Coffee with the Chief, School Safety, Adopt a
School program (district 15), Dea Drug Take Back Program, and Tobacco Compliance Checks.
Garden Quarter Community Days, Addition of the McHenry police Mobile App.
This year we added second School resource officers so that we now have an SRO at each of our
high schools.
Continued a strong public relations effort through participation in more than seventeen (17)
events geared at volunteerism and community outreach.
Remained fiscally responsible and obtained more than $375,000 in grants and partnership funded
law enforcement projects, including $136,000 from School District 156 for the continuation of
the SRO program and adding of a second SRO
Received our Forth accreditation award through the Commission on Accreditation for Law
Enforcement (CALEA) helping us to maintain a standard recognized nationally for Law
Enforcement services to the community.
Providing dispatching services, for a fee, to neighboring agencies, which has reduced our overall
operational cost of the Center by 25% or approximately $475,000
Maintained a high level of patrol/investigation calls for service — nearly 23,000 in 2015.
Created multi Jurisdictional Accident investigation team with Johnsburg and Spring Grove Police
Departments
Partnered with the McHenry Township fire Protection District to expand dispatch services in our
center.
NVA
Police Department
2016/17 Goals and Objectives
Ensure that the McHenry police Department is active in applying for grants related to equipment
and personnel funding.
Determine if more agencies can be added to Multi Jurisdictional accident investigative team,
primarily Woodstock and Lakemoor Police Departments.
Reduce the number of vehicle accidents involving personal injury or death through increased
seatbelt enforcement, speeding enforcement, DUI enforcement, roadside safety checks, car seat
safety checks, and roadway enhancements.
Continue successful operations of the McHenry Police Department Street Crimes Unit.
Continue to seek out alternate sources of funding to supplement and/or reduce operational costs
or fund continuing successful programs.
Maintain the minimum level of training for all line level officers and employees as dictated by
policy and statute.
Continue operation of the CALEA Accreditation Program.
Establish a plan that addresses the review and updating of school ready plans, including Building
security, lockdown procedures, evacuation procedures and communication protocols.
Reduce the number of vehicle accidents involving personal injury or death through increase
seatbelt compliance, speeding enforcement, DUI Enforcement, car seat safety checks and
roadway enhancements.
63
Police Department
Budget Summary
POLICE DEPARTMENT
BUDGET SUMMARY
8 Month
2014/15 2015/16 2015/16 2016/17 INCREASE
ACTUAL BUDGET ACTUAL BUDGET DECREASE)
EXPENDITURES
PERSONNEL 8,068,421 8,472,387 6,077,613 7,719,928 752,459)
CONTRACTUAL 220,057 271,880 180,825 255,935 15,945)
SUPPLIES 158,577 212,545 103,975 191,550 20,995)
OTHER 482,582 496,579 331,052 396,754 99, 825)
CAPITAL EXPENDITURES 57,069 4,240 4,542 20,075 15,835
TOTAL 8,986,706 9,457,631 6,698,007 8,584,242 873,389)
INCREASE
PERSONNEL AUTHORIZATION 2013/14 2014115 2015/16 2016/17 DECREASE)
SWORN 46.00 46.00 47.00 47.00 0.00
NON -SWORN 14.88 14.88 14.88 5.75 9.13)
TOTAL 60.88 60.88 61.88 52.75 a 13)
2015/16 2015/16 2016/17 2016/17
AMOUNT PERCENTAGE AMOUNT PERCENTAGE
FUNDING SOURCE
PROPERTY TAX LEVIES:
POLICE PROTECTION 547,959 5.8 547,959 6.4
POLICE PENSION 1,387,374 14.7 1,524,244 17.8
CHARGES FOR SERVICE 562,630 5.9 562,630 6.6
FINES AND FORFEITURES 375,000 4 517,000 6.0
REIMBURSEMENTS 323,795 3.4 313,795 3.6
GENERAL REVENUES 6,260,873 66.2 5,118,614 59.6
TOTAL 9,457,631 100.0 8,584,242 100.1
Budget Highlights
All expense categories decrease due to the movement of all dispatch expenses to its own
dedicated department.
Sworn personnel costs increase slightly due to the union contracts. The City's contribution for
police pension was increased by $136,870 based on the actuarial required amount.
Capital Equipment
Capital equipment is budgeted for a evidence camera, evidence drying chamber, two replacement tasers,
and an intoximeter.
64
Police Department
Personnel Review
Police Department
Personnel Schedule
2015/16 Budget 2016/17 Budget
Dollars Number of Dollars Number of
Salaries Grade Budgeted Employees Budgeted Employees
Sworn
Police Chief 16 115,217 1.00 118,385 1.00
Deputy Chief/Commanders 14/13 301,610 3.00 311,412 3.00
Sergeant 12 661,454 7.00 674,681 7.00
Patrol Officer FOP-1 2,886,265 36.00 2,840,037 36.00
Non -Sworn
Administrative Assistant 2 48,881 1.00 50,348 1.00
IT Specialist 7 56,295 0.88 49,580 0.75
Records Clerk FOP -II 96,075 2.00 99,221 2.00
Community Service Officer FOP -II 102,823 2.00 105,250 2.00
Civilian Overtime 5,000 5,000
Sworn Overtime 244,500 244,500
Holidays 111,800 130,000
Sickday Payback Incentive 19,381 17,161
Severance (Benefit Time) 0 0
Dual Career 0 0
On -Call Pay 14,000 14,000
Officer in Charge Special Pay 7,000 7,000
Investigator Stipend 3,000 3,000
Field Training Officer 2,750 2,750
Longevity Bonus 0 0
Salary Adjustment 88,894 123,791
Insurance Opt -Out 12,500 12,500
Subtotal 4,777,445 52.88 4,808,617 52.75
Change
Dollars Number of
Budgeted Employees
3,168 0.00
9,802 0.00
13,227 0.00
46,228) 0.00
1,467 0.00
6,715) (0.13)
3,146 0.00
2,427 0.00
0
0
18,200
2,220)
0
0
0
0
0
34,897
0
31,172 (0.13)
Benefits
Police Pension 1,387,374 1,524,244 136,870
IMRF Retirement 40,618 42,390 1,772
FICA Medicare 365,398 367,859 2,461
Health/Vision 903,576 905,818 2,242
Dental 40,028 37,526 2,502)
Life Insurance 3,649 3,674 25
Uniform Allowance 29,800 29,800 0
Subtotal 2,770,443 2,911,311 140,868
Total 7,547,888 52.88 $7,719,928 52.75 $172,040 (0.13)
Note: E = Exempt Position; N = Non -Exempt Position; FOP-1 = Unit One Police Union; and FOP -II = Unit Two Police Union
65
FY16-17 General Fund Budget
FY16-17 Budget FY15-16 FY15-16
Budget Change Budget
8 month
Actual
Dispatch Department
4010 Salaries 879,889 879,889
4030 Salaries Part time 71,527 71,527
4050 Overtime 55,000 55,000
4190 Salary Adjustment 16,750 16,750
4310 Health/Vision 292,094 292,094
4320 Dental Insurance 8,919 8,919
4330 Life Insurance 983 983
4340 Vision Insurance 422 422
4410 FICA Medicare 78,272 78,272
4420 IMRF Retirement 130,702 130,702
4510 Uniform Allowance 5,500 5,500
Total Personnel 1,540,058 1,540,058
5110 Contractual Services 22,980 22,980
5310 Postage & Meter 250 250
5320 Telephone 4,032 4,032
5420 Travel Expense 6,050 6,050
5430 Training Expense 9,400 9,400
5440 Tuition Reimbursement 3,500 3,500
5510 Utilities 500 500
Total Contractual 46,712 46,712
6110 Materials and Supplies 10,220 10,220
6210 Office Supplies 1,200 1,200
6270 Small Equipment 4,100 4,100
Total Supplies 15,520 15,520
9922 Purch Sery - Info Tech 94,245 94,245
9920 Purch Sery - Risk Mgt 40,532 40,532
Total Other 134,777 134,777
Total Dispatch Department 1,737,067 1,737,067
Dispatch Department
Mission Statement
It is the mission of the City of McHenry Dispatch Department to be an integral part of the public safety
team by offering a high quality of services to callers and the field responders serviced by our center.
Primary Functions ->
To provide emergency and non -emergency phone answering and dispatch services to our police
and fire customers.
2016/17 Goals and Objectives
Improve the quality of services provided to public safety agencies
prepare for growth as defined in the sate mandated consolidation requirement
Define partnerships and new customers for the center
Remodel the center to accommodate growth, new technology requirements and redundancy
requirements
Hire additional staff as needed
enhance the training program for dispatch staff
Develop a plan and start working towards separate accreditation for our dispatch Center
Develop a standalone policies and operational practices for the center.
Ensure that the McHenry police Department is active in applying for grants related to equipment
and personnel funding.
Develop plan to expand the Dispatch center so that we can provide emergency dispatch services
for more communities, therefore reducing our overall costs to the city.
Continue to seek out alternate sources of funding to supplement and/or reduce operational costs
or fund continuing successful programs.
Maintain the minimum level of training for all dispatchers as dictated by policy and statute.
67
Dispatch Department
Budget Summary
DISPATCH DEPARTMENT
BUDGET SUMMARY
8 Month
2014/15 2015/16 2015116 2016/17 INCREASE
ACTUAL BUDGET ACTUAL BUDGET DECREASE)
EXPENDITURES
PERSONNEL 0 924,499 0 1,540,058 615,559
CONTRACTUAL 0 9,450 0 46,712 37,262
SUPPLIES 0 3,700 0 15,520 11,820
OTHER 0 0 0 134,777 134,777
CAPITAL EXPENDITURES 0 0 0 0 0
TOTAL 0 937,649 0 1,737,067 799,418
INCREASE
PERSONNEL AUTHORIZATION 2013/14 2014/15 2015/16 2016/17 DECREASE)
NON -SWORN 9.00 11.25 2.25
TOTAL 0.00 0.00 9.00 11.25 2.25
2015/16 2015/16 2016/17 2016/17
AMOUNT PERCENTAGE AMOUNT PERCENTAGE
FUNDING SOURCE
CHARGES FOR SERVICE 0 602,068 34.7
REIMBURSEMENTS 0 0 0.0
GENERAL REVENUES 0 1,134,999 65.3
TOTAL 0 0.0 1,737,067 100.0
Budget Highlights
All expenses for dispatch were previously accounted for within the police budget.
Dispatch Department
Personnel Review
Dispatch Department
Personnel Schedule
2015/16 Budget 2016/17 Budget Change
Dollars Number of Dollars Number of Dollars Number of
Salaries Grade Budgeted Employees Budgeted Employees Budgeted Employees
Civilian Supervisor 0 0.00 86,830 1.00 86,830 1.00
IT Specialist 7 0 0.00 16,527 0.25 16,527 0.25
Communications Dispatch FOP -II 531,187 9.00 629,614 11.00 98,427 2.00
Communications Dispatch - partial year 134,485 9.00 134,485 9.00
Civilian Part Time 35,000 55,000 20,000
Civilian O\ertime 40,000 55,000 15,000
Holidays 0 15,000 15,000
Sickday Payback Incentive 0 2,960 2,960
CTO Pay 0 7,000 7,000
Salary Adjustment 16,427 16,750 323
Insurance Opt -Out 4,000 4,000 0
Subtotal 626,614 9.00 1,023,166 21.25 396,552 12.25
Benefits
IMRF Retirement 84,728 130,702 45,974
FICA 48,012 78,272 30,260
Health/Vision 156,706 292,516 135,810
Dental 4,218 8,919 4,701
Life Insurance 621 983 362
Uniform Allowance 3,600 5,500 1,900
Subtotal 297,885 516,892 219,007
Total 924,499 9.00 1,540,058 21.25 615,559 12.25
PUBLIC WORKS
VO
FY16-17 General Fund Budget
FY16-17 Budget FY15-16 FY15-16
Budget Change Budget
8 month
Actual
Public Works Administration
4010 Salaries 341,506 187,593 153,913 103,303
4050 Overtime 73
4190 Salary Adjustment 8,515 4,689 3,826
43101 Health/Vision 92,345 50,609 41,736 26,608
43201 Dental Insurance 3,274 1,598 1,676 1,082
4330 Life Insurance 311 173 138 59
4340 Vision Insurance 128 44 84 54
4410 FICA Medicare 26,777 14,710 12,067 7,581
4420 IMRF Retirement 47,253 25,958 21,295 13,507
4510 Uniform Allowance 300 300
Total Personnel 520,409 285,674 234,735 152,267
5110 Contractual Services 53,500 48,900 4,600 948
5310 Postage & Meter 400 400 194
5320 Telephone 2,400 600) 3,000 895
5410 Dues 380 380 130
5420 Travel Expenses 500 400) 900
5430 Training Expenses 2,000 2,000 103
5440 Tuition Reimbursement
Total Contractual 59,180 47,900 11,280 2,270
6210 Office Supplies 1,000 1,000 684
6270 Small Tools & Equipment 2,000 400 1,600 1,327
Total Supplies 3,000 400 2,600 2,011
6950 Forestry 227,585 227,585
9920 Purch Sery - Risk Mgt 10,081 1,062 9,019 6,013
9922 Purch Sery - Info Tech 17,433 3,354 14,079 9,386
Total Other 255,099 232,001 23,098 15,399
8300 Capital - Equipment
Total Capital
Total Public Works Administration 837,688 565,975 271,713 171,947
71
Public Works - Administration
Mission Statement
It is the purpose of the Public Works Department's Administration Division to provide direction and
administrative support to the Department of Public Works. Within the Public Works Administration
Department is the Forestry Division, and its mission statement is to provide residents with a quality urban
forestry program that is cost effective and delivers good stewardship for the natural resources of the
community.
Primary Functions -> There are several primary operating functions within the Public Works
Administration Division.
Working with the Mayor, Council and City Administrator to ensure that the City's policies and
programs for the department are carried out in addition to managing the department.
Provide engineering services for a number of projects, plan review, and monitoring the work of
the City's contracted engineering.
Provide administration, oversight, budgeting and capital improvement program
planning/implementation for the Street Division, Water Division, Wastewater Division,
Utility Division, Fleet Maintenance Division and Forestry Division of the Public Works
Department
2015/16 Accomplishments
Administration of consolidation engineering design of the Central Wastewater Treatment Plant
CWWTP) and the South Wastewater Treatment Plant (SWWTP) and the Facility Plan
Amendment (FPA) and National Pollutant Discharge Elimination System (NPDES) Permit.
Negotiations of permanent and temporary construction easement with McHenry Country Club to
facilitate the SWWTP and CWWTP force main project.
Administration of engineering and construction of the Fieldstone Sanitary Lift Station Project.
Well #9 and #10 emergency repairs
Administration of Water Tower 3 maintenance engineering and bidding process.
Route 31/Miller/Bull Valley Road water main relocation construction
Coordination of USEPA and IEPA and the McHenry County Health Department for the
construction of the water main on River Road, south of Route 120.
2015 Road Program - engineering and construction
2015 Crack Sealing Maintenance Program- bid specifications, bidding and construction
observation
Administration of Phase I engineering for Curran Road S-curve Safety Improvements
Administration of Phases I and 11 engineering for Pearl St/Lincoln Road Improvements.
Bull Valley Road Improvement Phase II engineering including right of way negotiations.
Knox Drive Extension — engineering and construction.
McCullom Lake Road Phase III engineering and construction including easement negotiations
with Union Pacific Railroad.
Engineering and construction of Crystal Lake Road/Dartmoor Drive traffic signal.
Management of biennial bridge inspections
Negotiation of a one year extension of the collective bargaining agreement with Local 150
Operating Engineers
72
Public Works - Administration
Administration of e-waste and Christmas lights recycling programs
Administration of specifications, bids and purchase of Street Division one ton dump truck with
snowplow and salt spreader.
Administration of specifications, bids and purchase of Utility Division Sewer jetter
Honorary Street sign approval for Virginia T. Williams.
The 50/50 residential planting program "Plant Trees McHenry" was funded for the third year.
This year's program included funding for 25 trees; 14 trees were planted through the program.
Arbor Day was celebrated on April 24, 2015. The Lion's Club sponsored the planting of two trees
in Fox Ridge Park in memory of past presidents, John Dunne and Robert Steiner.
Six trees were planted in the park system this year at Veteran's Memorial Park, Knox Park,
Petersen Park, and Fox Ridge Park.
The City planted 99 trees in various parkways.
Worked with the developer of Patriot Estates on final landscape review and acceptance.
Crew members trimmed 325 city trees in Green Valley, Brittany Heights and at the Municipal
Center. An additional 93 trees were pruned in the following parks: East Beach, West Beach,
Lakeland Park Boat Launch, Lakeland Park Community Center, Brookside Park, Freund Field
and Pheasant Valley.
Three hundred and forty trees were removed in 2015. 74% of the tree removals were due to the
Emerald Ash Borer.
2016/17 Goals and Objectives
Provide effective communication with the City residents about the various Public Works projects,
programs, and services.
Ongoing management of the city's refuse collection contract and e-waste/ Christmas lights
recycling programs
Provide responsible financial leadership during challenging economic times while maintaining
existing Public Works services.
Implementation of the 2016/17 Capital Improvement Program which includes the following
projects; 2016 road resurfacing program; 2016 asphalt pavement maintenance (crack sealing);
Phase II engineering of the Ringwood Road Improvements, Pearl Street/Lincoln Road
Improvements, Bull Valley Road Improvements, and Curran Road S-curve Improvements;
vehicle replacement program; standby generator at the Public Works Facility; Water meter
replacement program; Oakwood Drive sanitary sewer main rehabilitation; equipment/vehicles
replacement; consolidation of the Central Wastewater Treatment Plant (CWWTP) and the South
Wastewater Treatment Plant (SWWTP);sidewalk program; Water Treatment Plant #4
Maintenance; well inspection/maintenance and repair; sanitary sewer main rehabilitation
program; sanitary sewer manhole rehabilitation program; tree replacement program; and water
main replacement program.
Negotiation of a collective bargaining agreement with Local 150 Operating Engineers
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 one hundred trees in the city parkways in Whispering Oaks, Gagetown, Edgebrook Heights
Subdivisions and at the Municipal Center.
Assist Developers with tree planting in new subdivisions.
Continue work on the seven year pruning rotation in the subdivisions of Evergreen Park, Olde
Mill Ponds, Mill Creek, Millstream, Winding Creek 5 and Park Ridge Estates. Inventory work
will also be done in these areas.
73
Public Works - Administration
Continue the five year pruning cycle for city parks Petersen Park and Farm, and Hickory Creek
Farm including inventory work.
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.
Coordinate the prescribed burn in spring of 2016 at Wheeler Fen with the Illinois Nature
Preserves Commission.
Perform prescribed burn in the area north of Dartmoor Drive.
Remove woody vegetation and tree stumps with herbicide in a section of Boone Creek Corridor
including Fox Ridge Park.
Remove non-native species in the oak savannah area and treat with herbicide in a section of
Petersen Park.
Budget Summary
PUBLIC WORKS DEPARTMENT -ADMINISTRATION DIVISION
BUDGET SUMMARY
8 Month
2014/15 2015/16 2015/16 2016/17 INCREASE
ACTUAL BUDGET ACTUAL BUDGET DECREASE)
EXPENDITURES
PERSONNEL 224,418 234,735 152,267 520,409 285,674
CONTRACTUAL 3,590 11,280 2,270 59,180 47,900
SUPPLIES 2,736 2,600 2,011 3,000 400
OTHER 22,549 23,098 15,399 255,099 232,001
CAPITAL EXPENDITURES 0 0 0 0 0
TOTAL 253,293 271,713 171,947 837,688 565,975
INCREASE
PERSONNEL AUTHORIZATION 2013/14 2014/15 2015/16 2016/17 DECREASE)
TOTAL 2.00 2.00 2.00 4.50 2.50
2015/16 2015/16 2016/17 2016/17
AMOUNT PERCENTAGE AMOUNT PERCENTAGE
FUNDING SOURCE
GENERAL REVENUES 271,713 100.0 837,688 100.0
TOTAL 271,713 100.0 837,688 100.0
Budget Highlights
Personnel costs increase due to providing non -bargaining unit employees merit -based increases as
well as increases to retirement and insurance costs. Personnel costs also increase due to the
transfer of the Superintendent of Forestry from the parks department as well as the addition of a
Project Engineer and a part-time office assistant.
Contractual expenses increase due to costs for a Lakeland Park Drainage Study
Other Expenses Increase due to the Forestry Division expenses being moved from the Parks
Department budget. McHenry County funds for the purchase of trees are budgeted to be used at
182,085.
74
Public Works - Administration
Personnel Review
Salaries
Director
Administrative Assistant
Superintendent of Forestry
Project Engineer
Part -Time Office Asst
Overtime
Sickday Payback Incentive
Salary Adjustment
Severance Pay
Longevity Bonus
Subtotal
Public Works Department - Administration Division
Personnel Schedule
2015116 Budget 2016/17 Budget Change
Dollars Number of Dollars Number of Dollars Number of
Grade Budgeted Employees Budgeted Employees Budgeted Employees
15 104,149 1.00 107,013 1.00 2,864 0.00
2 48,881 1.00 50,347 1.00 1,466 0.00
16 0 0.00 79,823 1.00 79,823 1.00
0 0.00 87,805 1.00 87,805 1.00
0 0.00 15,610 0.50 15,610 0.50
0 0 0
883 908 25
3,826 8,515 4,689
0 0 0
0 0 0
157,739 2.00 350,021 4.50 192,282 2,50
IMRF Retirement 21,295 47,253 25,958
FICA/Medicare 12,067 26,777 14,710
Health/Vision 41,820 92,473 50,653
Dental 1,676 3,274 1,598
Life Insurance 138 311 173
Uniform Allowance 0 300 300
Subtotal 76,996 170,388 93,392
Total 234,735 520,409 285,674
75
rn
Dave Christopher
Maintenance Worker
Mike Freund
Maintenance Worker
Pedro Padro
Maintenance Worker
PUBLIC WORKS - STREETS
Pat Maher
Maintenance Worker
Gary Mertz
Maintenance Worker
Maintenance Worker
Mike Owsley
Mechanic
Ron Barta
Maintenance Worker
Paul Clements
Maintenance Worker
Jason McMahon
Maintenance Worker
Matt Rogers
Mechanic
Sam Burrafato
Maintenance Worker
Rick Leisten
Maintenance Worker
Jacob Reiley
Maintenance Worker
FY16-17 General Fund Budget
FY16-17 Budget FY15-16 FY15-16
Budget Change Budget
8 month
Actual
Streets Department
4010 Salaries 1,155,641 6,212 1,149,429 790,572
4050 Overtime 15,000 4,000) 19,000 6,288
4060 Overtime - snow removal 80,000 80,000 17,834
4190 Salary Adjustment 31,150 5,051 26,099
4110 Salaries -Part-time Seasonal 20,000 20,000
4310 Health/Vision 361,083 12,617) 373,700 256,120
4320 Dental Insurance 2,275 282 1,993 1,334
4330 Life Insurance 1,242 1,242 535
4340 Vision Insurance 114 10 104 115
4410 FICA Medicare 99,587 2,086 97,501 61,729
4420 IMRF Retirement 173,042 981 172,061 106,612
4510 Uniform Allowance 8,470 1,470 7,000 3,832
Total Personnel 1,947,604 19,475 1,928,129 1,244,971
5110 Contractual Services 76,690 10,000) 86,690 99,578
5320 Telephone 4,000 1,750) 5,750 2,318
5370 Repr & Maint 105,000 105,000 51,528
5430 Training Expense 2,500 1,500 1,000 816
5440 Tuition Reimbursement
5510 Utilities 673
5520 Street Lighting 270,000 7,000) 277,000 186,118
Total Contractual 458,190 17,250) 475,440 341,031
6110 Materials & Supplies 220,000 220,000 175,028
6210 Office Supplies 1,500 1,500 832
6250 Gasoline & Oil 107,500 11,000) 118,500 38,615
6270 Small Equipment 5,000 5,000 2,862
6290 Safety Equipment 1,500 1,500
Total Supplies 335,500 11,000) 346,500 217,337
9920 Purch Sery - Risk Mgt 90,904 12,143) 103,047 68,698
9922 Purch Sery - Info Tech 11,811 2,272 9,539 6,359
Total Other 102,715 9,871) 112,586 75,057
8300 Capital - Equipment
8400 Capital - Vehicles
8600 Capital - Street Projects
Total Capital
Total Streets Department 2,844,009 18,646) 2,862,655 1,878,396
77
Public Works — Street Division
Mission Statement
It is the mission of the Street Division to support and enhance a high quality of life for the City's
residents, businesses and visitors by providing a well -planned, environmentally sensitive, cost effective
infrastructure through superb customer service.
Primary Functions —> The primary function of the Street Maintenance Division includes street cleaning,
street maintenance, and ensuring roadways are cleared of snow and ice conditions, and all administrative
functions.
Crews remove snow, control ice and conduct street cleaning in addition to making
miscellaneous repairs.
Maintain and repair all City owned vehicles and various equipment through the City garage
with two full-time mechanics.
Monitor maintenance of streetlights and signals by a private contractor.
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.
2015/16 Accomplishments
Crews resurfaced and repaired sections of streets throughout the City.
Trimmed trees and removed 250 ash trees; completed the bi-annual brush program and
responded to storm damage requests from residents.
Replaced sidewalks and curbs.
Drainage improvements.
Implementation of the 2015 Crack Sealing program.
Maintained city -owned vehicles and equipment.
Right of way maintenance including parkway restoration, mowing, and creek cleaning.
Assisted HR Green with overseeing the 2015 Road Program which included 4 streets.
Managed snow removal, ice control, and conducted street cleaning in addition to making
miscellaneous repairs.
Assisted HR Green with overseeing the installation project of having a traffic light installed
at Crystal Lake Rd and Dartmoor Dr.
Assisted with the preparation for Fiesta Days and 4ch of July activities.
Knox Drive has been extended between Municipal Drive and Miller Road. The
approximately 552 feet improvement consisted of hot -mix asphalt pavement, concrete curb
and gutter, landscape restoration, pavement striping, drainage accommodations, and a
proposed driveway entrance south of Municipal Drive into an existing parking lot.
A portion of McCullom Lake Road between Route 31 and the Village of McCullom Lake
Road eastern boundary tracks has been improved for a total length of approximately 5,600
feet. The improvements consisted of traffic signal
modernization, intersection capacity improvements, widening, asphalt removal, replacement,
minor drainage improvements and new pavement markings. Additionally a new sidewalk has
78
Public Works — Street Division
been constructed on the south side of the road in front of Petersen Park connecting to the
existing Prairie Path bike route.
2016/17 Goals and Objectives
Address all snow and ice events by clearing roadways to ensure safe travel on City streets.
Continue drainage improvement work, particularly in the Lakeland Park and the City's
northwest quadrant.
Maintain the City's fleet so that it will operate efficiently and its useful life is extended.
Repair and maintain city streets by dedicating crew to road resurfacing and pothole repair.
Mowing the City's right of ways and property in a timely fashion.
Respond to all resident requests in a timely manner.
Maintain the City's storm sewer system.
Maintain and repair City sidewalks and curb.
Inspect and maintain the City owned street light systems.
Assist with the preparation for Fiesta Days and 4 h of July activities.
Capital Improvement Projects include the following:
o Road resurfacing program
o Asphalt pavement maintenance (crack sealing)
o Equipment/vehicle replacement
o Sidewalk Replacement Program
deet Summa
PUBLIC WORKS DEPARTMENT -STREETS DIVISION
BUDGET SUMMARY
8 Month
2014/15 2015116 2015/16 2016/17 INCREASE
ACTUAL BUDGET ACTUAL BUDGET DECREASE)
EXPENDITURES
PERSONNEL 1,888,259 1,928,129 1,244,971 1,947,604 19,475
CONTRACTUAL 536,821 475,440 341,031 458,190 17, 250)
SUPPLIES 355,574 346,500 217,337 335,500 11,000)
OTHER 112,213 112,586 75,057 102,715 9,871)
CAPITAL EXPENDITURES 0 0 0 0 0
TOTAL 2,892,867 2,862,655 1,878,396 2,844,009 18,646)
INCREASE
PERSONNEL AUTHORIZATION 2013/14 2014/15 2015/16 2016/17 DECREASE)
TOTAL 18.00 19.00 18.00 18.00 0.00
2015/16 2015/16 2016/17 2016/17
AMOUNT PERCENTAGE AMOUNT PERCENTAGE
FUNDING SOURCE
GENERAL REVENUES 2,862,655 100.0 2,844,009 100.0
TOTAL 2,862,655 100.0 2,844,009 100.0
Budget Highlights
Personnel costs increase due to union contracts as well as providing non -bargaining unit
employees merit -based increases as well as increases to retirement and insurance costs. Seasonal
employees were also added back in for $20,W.
Public Works - Street Division
Contractual expenses decrease due to tree removal expenses being moved to the Public Works
Administration budget.
Supplies expenses decrease due to lower gasoline prices.
Other expenses decrease due to the Purchase of Services, Risk Management transfer decreasing
because of lower premium costs.
Personnel Review
Salaries
Street Superintendent
Crew Leader
Mechanic
Street Maintenance Worker
Part -Time (Seasonal)
Overtime
Sickday Payback Incentive
Salary Adjustment
Longevity Bonus
Subtotal
IMRF Retirement
FICA/Medicare
Health/Wellness
Dental
Life Insurance
Uniform Allowance
Subtotal
Total
ks Department - Street Division
Personnel Schedule
2015/16 Budget
Dollars Number of
Grade Budgeted Employees
12 88,032 1.00
10 156,516 2.00
1-8 154,870 2.00
1-6 745,388 13.00
0
99,000
4,623
26,099
0
2016/17 Budget Change
Dollars Number of Dollars Number of
Budgeted Employees Budgeted Employees
88,000 1.00 32) 0.00
160,038 2.00 3,522 0.00
157,968 2.00 3,098 0.00
744,987 13.00 401) 0.00
20,000 20,000
95,000 4,000)
4,648 25
31,150 5,051
0 0
1,274, 528 18.00 1,301, 791
172,061 173,042
97,501 99,587
373,804 361,197
1,993 2,275
1,242 1,242
7,000 8,470
653,601 645,813
1,928,129 1,947,604
18.00
981
2,086
12,607)
282
0
1,470
7,788)
PARKS &RECREATION
co
FY16-17 General Fund Budget
FY16-17 Budget FY15-16 FY15-16
Budget Change Budget
8 month
Actual
Parks Department
4010 Salaries - Regular 684,833 98,777) 783,610 434,976
4030 Salaries - PartTime 66,625 66,625 25,007 4050
Overtime 17,500 17,500 12,852 4110
Salaries -Seasonal 263,000 35,000 228,000 180,619 4190
Salary Adjustment 17,073 240 16,833 4310
Health/Vision 184,641 33,712) 218,353 125,044 4320
Dental Insurance 4,333 1,377) 5,710 3,188 4330
Life Insurance 759 138) 897 317 4340
Vision Insurance 291 168) 459 249 4410
FICA Medicare 80,251 236 80,015 48,596 4420
IMRF Retirement 97,120 13,302) 110,422 62,673 4510
Uniform Allowance 2,550 300 2,250 1,491 Total
Personnel 11418,976 45,073) 1,464,049 895,012 5110
Contractual Services 245,850 28,100) 273,950 171,375 5310
Postage and Meter 10,650 1,400 9,250 2,424 5320
Telephone 15,450 15,450 9,256 5330
Printing & Publishing 8,500 1,700 6,800 3,223 5370
Repair and Maint 15,000 15,000 12,074 5410
Dues 126,633 300) 126,933 125,361 5420
Travel Expenses 500 500 5430
Training 5,350 2,200 3,150 1,739 5440
Tuition Reimbursement 5450
Publications 500 500 235 5510
Utilities 38,000 2,100 35,900 14,750 Total
Contractual 466,433 21,000) 487,433 340,437 6110
Materials and Supplies 141,000 12,200 128,800 82,959 6210
Office Supplies 5,000 2,000 3,000 1,301 6250
Gasoline and Oil 20,000 6,000) 26,000 18,209 6270
Small Equipment 12,500 500 12,000 Total
Supplies 178,500 8,700 169,800 102,469 6920
Special Events 27,800 1,200 26,600 24,017 6950
Forestry 48,000) 48,000 20,763 9920
Purch Sery - Risk Management 67,392 14,382) 81,774 54,516 9922
Purch Sery - Info Tech 53,015 10,028 42,987 26,938 Total
Other Accounts 148,207 51,154) 199,361 126,234 8300
Capital - Equipment 8400
Capital - Vehicles 8800
Capital - Park Improvements 52,777 Total
Capital 52,777 Total
Parks Department 2,212,116 108,527) 2,320,643 1,516,929 Total
General Fund Expenses 22,726,606 2,746,682 19,979,924 13,825,868 Surplus/(
Deficit) 2,349,593) 597,564) 82
Parks and Recreation Department
Mission Statement
Recognizing leisure activities, facilities, and open spaces are important to individuals, families, and
community life, it is the mission of the Parks and Recreation Department to provide planned recreation
programs and maintain facilities and parks to meet the recreational and park facility needs of the public.
Primary Functions —> There are three primary operating divisions within the Parks and Recreation
Department.
Parks Maintenance: Responsible for planning, organization, and supervision of park
maintenance activities for active parks, buildings, pool, beach, and athletic facilities.
Forestry Planning: Address all forestry issues and maintenance of passive use park land.
Review new subdivisions as well as landscape plans associated with new developments.
Recreation: Responsible for providing quality recreation programs and events to residents of the
community. Supervise staff and operations of Knox Park pool and concessions, Petersen Park
beach and concessions, Althoff Park concessions, and McHenry Zone Skate & Bike Park.
2015/16 Accomplishments
The Recreation Center construction began in April of 2015 and proceeded without delay. The
18,200 square foot center opened for business on February 29`h and has grown membership to
almost 1,000 members by the end of the first month.
A Recreation Center Manager was hired in September to finalize a great deal of processes
associated with the daily operation of the center, as well as select equipment and hire part time
staff.
In June the city reclassified the Athletics position during the hiring process to fill the vacancy
from a retirement of a long time employee. The position was transitioned to Athletics and
Aquatic Supervisor reflecting the addition of the pool and beach responsibilities with the position.
In February of 2016, the recreation side of the department was reorganized. The Recreation
Center Manager was tasked with the supervision of the Athletics and Aquatics Supervisor and the
Recreation Supervisor. The Recreation Center Manager will report directly to the Deputy City
Administrator.
While the Miller Riverfront Boat Launch took one step closer to becoming a reality when an
intergovernmental agreement was drafted with a neighboring community to transfer the rights of
the appropriately sized launch to the city of McHenry.
The three tennis courts at Knox Park were resurfaced and restriped. These are the only tennis
courts that remain actively used in the city's park system.
Two new scoreboards were purchased in the spring to replace the existing scoreboards at Knox
Park softball fields that have been consistently non-functioning.
A new gazebo was purchased for the McBark Dog Park. It will be centrally placed in the large
dog run area. Additionally, the city purchased another fountain for inside the park and will work
with the city Public Works Department to assist with installation.
The Althoff basketball courts at Freund Field are slated to be rescheduled in the Spring of 2016.
The Parks Maintenance division dedicated a significant amount of effort to refurbish all the city
baseball and softball fields. Be this though additional ballfield mix, new home plate and pitchers'
mound or additional watering.
Playgrounds were also a focus with over 750 yards of mulch spread thoughout the playground
system.
Veterans Memorial Park received a sound system upgrade including speakers on the five light
poles throughout the park.
83
Parks and Recreation Department
A large decorative clock donated by Tom Sullivan was refurbished though the assistance of a
number of local companies. The clock was installed at Green Street park for our community to
enjoy for years to come.
New Character Counts banners were installed in the downtown areas
The Green Street parking lot was resurfaced.
2016/17 Goals and Objectives
Analyze the operations of the recreation center and finalize an updated Master Site Plan for the
facility.
Construct the bike path additions in conjunction with the Recreation Center project.
Install an inflatable water course at the Petersen Park Beach.
Monitor and complete a milfoil treatment of McCullom Lake if it is necessary.
Resurface the parking lot at Lakeland Park Community Center.
Renovate and repurpose the Petersen Park tennis courts that are currently unusable into new
recreation opportunities.
Pave the gravel surface road to the parking lot adjacent to field one at Petersen Park.
Complete an analysis of the smaller barn at the Historic Petersen Farm. Also reseal the wooden
silos and perform minor maintenance to the main barn. Finally, at the farm the house is slated to
be re -roofed this coming year.
Resurface Fox Ridge Park basketball court.
Install new LED lighting on the light poles in Veterans Memorial Park.
Work to maintain the quantity and quality of fee supported recreation and athletic programs.
Cooperate with other community organizations and provide services for community special
events.
Continue to renovate facilities to comply with the recommendations of the ADA Access Audit.
Begin repairs and capital improvements to existing park facilities: court sport areas, parking lots
and playgrounds.
84
Parks and Recreation Department
Budget Summa
PARKS AND RECREATION DEPARTMENT
BUDGET SUMMARY
8 months
2014/15 2013/14 2015/16 2016/17 INCREASE
ACTUAL BUDGET ACTUAL BUDGET DECREASE)
EXPENDITURES
PERSONNEL 1,284,535 1,464,049 1,003,355 1,418,976 45,073)
CONTRACTUAL 432,968 487,433 335,486 466,433 21,000)
SUPPLIES 157,306 169,800 108,204 178,500 8,700
OTHER 173,382 199,361 119,417 148,207 51,154)
CAPITAL EXPENDITURES 69,202 0 17,388 0 0
TOTAL 2,117,393 2,320,643 1,583,850 2,212,116 108,527)
INCREASE
PERSONNEL AUTHORIZATION 2014/15 2014/15 2015/16 2016/17 DECREASE)
TOTAL 10.00 12.00 13.00 13.00 0.00
2015/16 2015/16 2016/17 2016/17
AMOUNT PERCENTAGE AMOUNT PERCENTAGE
FUNDING SOURCE
PROGRAM FEES 380,000 16.3 340,000 15.3
POOL AND BEACH REVENUES 129,000 5.5 128,160 5.8
CONCESSIONS 44,000 1.9 40,000 1.8
DONATIONS 9,000 0.4 9,000 0.4
GENERAL REVENUES 1,767,643 75.9 1,703,956 76.7
TOTAL 2,329,643 100.0 2,221,116 100.0
Budget Highlights
Personnel expenses decrease due to the reclassification of the Superintendent of Forestry to
Public Works Administration department as well as the movement of costs for the Recreation
Center Manager to the Recreation Center Fund. Union contract wage increases and merit -based
increases for non -bargaining unit employees as well as part-time staff costs for parks and
recreation duties handled at the recreation center somewhat offset the savings from the two
transferred positions.
Contractual expenses decrease due to the reclassification of seasonal contractual costs to seasonal
personnel costs.
Supplies expenses increase due to extending the season at the Merkel Aquatic Center.
Forestry expenses are transferred to the Public Works Administration budget. Purchase of
services, information technology costs increase by $10,028 to cover actual expenses within that
fund including increases in personnel costs as well as software maintenance costs, while Purchase
of services, risk management costs decrease $14,382 due to lower premium costs.
85
Parks and Recreation Department
Personnel Review
Personnel Schedule
2015/16 Budget 2016/17 Budget Change
Dollars Number of Dollars Number of Dollars Number of
Salaries Grade Budgeted Employees Budgeted Employees Budgeted Employees
Supt. Of Parks & Downtown Maintenance 12 88,031 1.00 90,452 1.00 2,421 0.00
Supt. of Forestry/Park Plan. 8 78,258 1.00 0 0.00 78,258) 1.00)
Rec Prog Supervisor 9 70,756 1.00 72,702 1.00 1,946 0.00
Recreation Center Manager 50,000 1.00 0 0.00 50,000) 1.00)
Asst. Superintendent of Parks 9 63,974 1.00 65,573 1.00 1,599 0.00
Athletic Prog Coordinator 5 52,869 1.00 50,028 1.00 2,841) 0.00
Admin. Assistant 2 48,881 1.00 49,859 1.00 978 0.00
Office Assistant 1 36,130 1.00 36,943 1.00 813 0.00
Park Maint Worker I-6A 228,438 4.00 251,466 4.00 23,028 0.00
Street Maint Worker I-C 64,608 1.00 65,900 1.00 1,292 0.00
Front Desk Attendants - Rec Center 0 66,625 66,625
Seasonal/Instructors 228,000 263,000 35,000
Overtime 17,500 17,500 0
Sickday Payback Incenti\,e 1,665 1,910 245
Salary Adjustment 16,833 17,073 240
Longevity Bonus 0 0 0
Subtotal 1,045,943 13.00 1,049,031 11.00 3,088 F(2.00)
Benefits
IMRF Retirement 110,422 97,120 13,302)
FICA/Medicare 80,015 80,251 236
Health/Vision 218,812 184,932 33, 880)
Dental 5,710 4,333 1,377)
Life Insurance 897 759 138)
Uniform Allowance 2,250 2,550 300
Subtotal 418,106 369,945 48,161)
Total $1,464,049 $1,418,976 ($45,073)
0
I -ME
HEART OF THE FOX RIVER:
SPECIAL REVENUE FUND BUDGETS
Tourism Fund (200.00)
Pageant Fund (205.00)
Band Fund (210.00)
Civil Defense Fund (220.00)
Alarm Board Fund (225.00)
Audit Fund (230.00)
Annexation Fund (260.00)
Motor Fuel Tax Fund (270.00)
Developer Donation Fund (280.41)
Tax Increment Finance Fund (290.00)
87
Tourism Fund (200)
Budget Request 8 month
FY 2016-2017 2016/17 2015/16 2015/16
Bud&et Difference Budget Actual
Revenues:
3142 Hotel/Motel Tax 140,000 140,000 124,745
3210 Interest Earnings 50 50 42
3220 CD Interest
Total Revenues 140,050 140,050 124,787
Expenditures:
5110 Contractual 20,000 20,000 12,000
6940 Administrative Expense
9901. General Fund Transfer 75,000 75,000 65,000
9942 Transfer to OF T-
9944 Band Fund Transfer I
Total Expenditures 1 95,000 1 95,000 1 77,000d
Tourism Fund
Purpose
The purpose of the Tourism Fund is to finance tourism promotion for the City.
Fund Highlights -->
The primary function of the Tourism Promotion Fund is to provide funding to the McHenry County
Convention and Visitor's Bureau (MCCVB). The City currently has a 5% tax on motel and hotel room
receipts. This tax, along with similar ones enacted by other municipalities in McHenry County, is used to
fund the McHenry County Convention & Visitors Bureau.
Budget Summary
EXPENDITURES
CONTRACTUAL
OTHER
TOTAL
FUNDING SOURCE
HOTEL/MOTEL TAX
INTEREST INCOME
TOTAL
Budget Highlights
No significant changes.
TOURISM FUND
BUDGET SUMMARY
8 months
2014/15 2015/16 2015/16 2016/17 INCREASE
ACTUAL BUDGET ACTUAL BUDGET DECREASE)
12,000 $20,000 12,000 20,000 0
75,000 75,000 65,000 75,000 0
87,000 $95,000 77,000 95,000 0
2015/16 2015116 2016/17 2016/17
AMOUNT PERCENTAGE AMOUNT PERCENTAGE
140,000 100.0 140,000 100.0
50 0.0 50 0.0
140,050 100.0 140,050 100.0
99
Pageant Fund (205)
Budget Request
FY 2016-2017 2016/17 2015/16 2 115/16
Budget Difference Budget Actual
Revenues:
3210Interest
3815 Donations 500) 500
3890 Miscellaneous 3,600 550 3,050 3,749
3975 General Fund Transfer
Total Revenues 3,600 50 3,550 3,749
Expenditures:
5110 Contractual 1,000 1,000 116
5310 Postage & Meter 50 50
6110 Supplies
6940 Miscellaneous 2,500 L 2,500 3,195
Total Expenditures 1 1 3,550 1 - 1 3,550 3,311
m
Pageant Fund
Purpose
The purpose of the Pageant Fund is to account for revenues and expenditures used to conduct the Miss
McHenry Pageant.
Fund Highlight->
The Miss McHenry Pageant is an annual beauty contest for girls between the ages of 16 and 20. The
pageant is a community tradition that has been held for almost 60 years. The contestants must live in the
McHenry school district and have a McHenry address. A maximum of 15 contestants compete in the
pageant each year and the entry fee for the contestants is $200 per girl.
Budget Summary
PAGEANT FUND
BUDGET SUMMARY
8 months
2014/15 2015/16 2015/16 2016/17 INCREASE
ACTUAL BUDGET ACTUAL BUDGET DECREASE)
EXPENDITURES
CONTRACTUAL 0 1,000 116 1,000 0
SUPPLIES 0 0 0 0 0
OTHER 3,333 2,550 3,195 2,550 0
TOTAL 3,333 3,550 3,311 3,550 0
2015/16 2015/16 2016/17 2016/17
AMOUNT PERCENTAGE AMOUNT PERCENTAGE
FUNDING SOURCE
DONATIONS 500 14.1 0 0.0
MISCELLANEOUS 3,050 85.9 3,600 100.0
TOTAL 3,550 100.0 3,600 100.0
Budget Highlights
No significant changes.
91
Band Fund (210)
Budget Request 8 months
FY 2016-2017 2016/17 2015/16 2015/16
Budget Difference Budget Actual
Revenues:
3010 Property Tax Collections
3815 Donations
3975 Transfer - General Fund 15,000 15,000 10,000
3180 Grants
3210 Interest Earnings 2
Total Revenues 15,000 15,000 10,002
Expenditures:
5110 Contractual 14,500 14,500 12,230
6110 Materials and Supplies 500 1 - 500
Total Expenditures 15,000 1 - 15,000 12,230
92
Band Fund
Purpose
The purpose of the Band Fund, a special revenue fund, is to finance and account for expenditures incurred
in the provision of summer concerts to promote culture and recreation to the community.
Fund Highlights - >
The primary function of the municipal band is to provide eight concerts annually at the gazebo in
Veterans Memorial Park.
EXPENDITURES
CONTRACTUAL
OTHER
TOTAL
FUNDING SOURCE
INTEREST EARNINGS
TRANSFERS
GRANTS
PROPERTY TAX REVENUES
TOTAL
Budget Highlights
No significant changes.
BAND FUND
BUDGET SUMMARY
8 months
2014/15 2015/16 2015/16 2016/17 INCREASE
ACTUAL BUDGET ACTUAL BUDGET DECREASE)
12,539 $14,500 12,230 14,500 0
0 500 0 500 0
12,539 $15,000 12,230 15,000 0
2015/16 2015/16 2016/17 2016/17
AMOUNT PERCENTAGE AMOUNT PERCENTAGE
0 0.0 0 0.0
15,000 100.0 15,000 100.0
0 0.0 0 0.0
0 0.0 0 0.0
15,000 100.0 15,000 100.0
93
Civil Defense Fund (220)
Budget Request 8 month
FY 2016-2017 2016/17 2015/16 2015/16
Budget Difference Budget Actual
Revenues:
3010 Property Tax Collections
3200 Interest Earnings
3975 Transfer from General Fund 8,000 3,000 5,000 3,333
Total Revenues 8,000 3,000 5,000 3,333
Expenditures:
5375 Repairs & Maintenance - Equip 5,300 2,100 3,200
6110 Materials and Supplies
9942 Transfer to OF
8000 Capital Outlay
Total Expenditures 5,300 2,100 3,200
94
Civil Defense Fund
Mission Statement
It is the mission of the Civil Defense Fund to fund and account for expenditures incurred in the training of
personnel and the purchase and maintenance of equipment to protect and defend the City from natural
disasters or man-made environmental disasters through early warning and public notification systems.
Fund Highlights -->
The primary function of the Fund is maintaining the existing early warning siren system and purchasing
additional sirens for newer sections of the community in coming years.
Budget Summary
EXPENDITURES
OTHER
TOTAL
FUNDING SOURCE
INTEREST EARNINGS
OTHER REVENUE
PROPERTY TAX REVENUES
TOTAL
Budget Highlights
CIVIL DEFENSE FUND
BUDGET SUMMARY
8 months
2014/15 2015116 2015/16 2016117 INCREASE
ACTUAL BUDGET ACTUAL BUDGET DECREASE)
10, 368 $3, 200 0 $5, 300 2,100
10,368 $3,200 0 $5,300 2,100
2015/16 2015/16 2016/17 2016/17
AMOUNT PERCENTAGE AMOUNT PERCENTAGE
0 0.0 0 0.0
5,000 100.0 8,000 100.0
0 0.0 0 0.0
5,000 100.0 8,000 100.0
The transfer from the general fund was increased to cover the deficit within the fund.
95
Alarm Board Revenue
Budget Request 8 months
FY 2016-2017 2016/17 2015/16 2015/16
Budget Difference Budget Actual
Revenues:
3200 Interest Earned 28
3895 Alarm Board Revenue 153,000 153,000 100,789
Total Revenues 153,000 153,000 100,817
Expenditures:
5110 Contractual Services 27,950 32,050) 60,000 58,629
8300 Equipment I - I - I - I -
Total Expenditures 1 27,950 1 (32,050)1 60,000 1 58,629
Alarm Board Fund
Purpose
The purpose of the Alarm Board Fund is to pay for the maintenance of the radios as well as the annual
maintenance of the head end equipment in the city dispatch center. This equipment comprises the city's
direct connect radio fire alarm monitoring network. City businesses are required by ordinance to have
fire alarm monitoring and this monitoring is to be directly connected to the city dispatch center.
Fund Highlights --> The city currently has 141 radios that are monitored monthly. The radios are billed
quarterly at $90/month.
Budget Summary
ALARM BOARD REVENUE FUND
BUDGET SUMMARY
8 month
2014/15 2015/16 2015/16 2016/17 INCREASE
ACTUAL BUDGET ACTUAL BUDGET DECREASE)
EXPENDITURES
SUPPLIES $56,555 60,000 58,629 27,950 32,050)
CAPITAL 0 0 0 0 0
TOTAL $56,555 60,000 58,629 27,950 32,050)
2015/16 2015/16 2016/17 2016/17
AMOUNT PERCENTAGE AMOUNT PERCENTAGE
FUNDING SOURCE
INTEREST EARNINGS 0 0.0 0 0.0
ALARM BOARD REV 153,000 0.0 153,000 100.0
TOTAL 153,000 0.0 153,000 100.0
Budget Highlights
Contractual expenses decrease $32,050 due to the expiration of the agreement with McHenry
Township Fire Protection District to refund a portion of alarm board revenues received.
97
Audit Fund (230)
Budget Request 8 month
FY 2016-2017 2016/17 2015/16 2015/16
Budget Difference Budget Actual
Revenues:
3010 Property Tax Collections 26,426 1) 26,427 26,410
3200 Interest Earnings 5
3970 Charges for Services 7,703
3978 Transfer - Water Sewer Fund 8,215 161 8,054
3976 Transfer - Police Pension Fund 3,570 70 3,500
Total Revenues 38,211 230 37,981 34,118
Expenditures:
Audit Expense 37,104 724 36,380 36,380
Total Expenditures 37,104 724 1 36,3801 36,380
KI
Audit Fund
Purpose
The purpose of the Audit Fund to account for the expenses incurred to complete the annual audit of the
City's financial statements.
Fund Highlights ->
The State of Illinois requires that the City of McHenry conduct an independent audit on an annual basis.
In turn, the statutes provide authority for an entity to levy a property tax to pay for the audit. Since the
authority to levy a property tax for the audit is separate from the authority to levy the corporate rate, the
levy amount for the audit is deposited into a separate fund and kept segregated from the general corporate
levy receipts. There is no limit on the property tax rate used to meet the cost of the required audit.
Budget Summary
AUDIT FUND
BUDGET SUMMARY
8 months
2014/15 2015/16 2015/16 2016/17 INCREASE
ACTUAL BUDGET ACTUAL BUDGET DECREASE)
EXPENDITURES
CONTRACTUAL $35,710 35,710 35,710 37,104 1,394
TOTAL $35,710 35,710 35,710 37,104 1,394
2015/16 2015/16 2016/17 2016/17
AMOUNT PERCENTAGE AMOUNT PERCENTAGE
FUNDING SOURCE
PROPERTY TAX REVENUES 26,426 70.0 26,426 69.2
PURCHASE SERVICE - POLICE PENSION 3,500 9.3 3,570 9.3
PURCHASE SERVICE - WATER/SEWER 8,054 21.3 8,215 21.5
TOTAL 37,980 100.6 38,211 100.0
Budget Highlights
The audit examination fee for FY 2015/16 (which is paid in FY2016/17) is estimated at a 2%
increase over the FY2014/15 audit fees. The City Council will have to approve a new contract
with the auditing firm for the FY2015/16 audit. The internal service charges to the Water/Sewer
Fund have been adjusted accordingly.
The Police Pension Fund audit fee for FY2015/16 is estimated at $3,570, which is fully covered
by the Police Pension Fund transfer.
we
Annexation Fund (260)
Budget Request
FY 2016-2017
8 Months
2016/17 2015/16 2015/16
Budget Difference Budget Actual
Revenues:
3210 Interest Earned 200 200 42
3745 Gravel Mining Income 40,000 40,000 72,834
3720 Operating Fees 10,000 10,000
3715 Annexation Income 8,000 8,000 18,346
Total Revenues 58,200 58,200 91,222
Expenditures:
6970-90 Distributions Operating Fees 10,000 10,000
9904 Transfer to Debt Service 35,000 35,000 23,333
9942 Transfer to Capital Impvmt. Fund I - I-
Total Expenditures 45,000 1 - 1 45,000 23,333
100
Annexation Fund
Purpose
The purpose of the Annexation Fund is to segregate funds received from negotiated annexation
agreements that are intended to be used for improvements to infrastructure or City facilities.
Fund Highlights
The Annexation Fund is a non -operating fund that is used to account for receipts from generally non-
recurring revenue sources resulting from negotiated annexation agreements. Revenues include a fee
assessed on gravel mining on a per ton basis, revenues from property being annexed into the City on an
acreage and lot basis, and an additional per unit fee that is distributed to other taxing bodies. The City
collects about $1,000 per acre for residential property up to five acres in size plus approximately $600 per
unit upon issuance of a building permit. The additional per unit fee is assessed and distributed to the two
area school districts and the fire and library districts. As revenues in this fund do not necessarily
represent recurring income, the City Council annually reviews how the proceeds of this fund are
allocated.
Annexation Fund revenues are determined by a mixture of recurring and one-time, non -recurring sources.
Gravel mining fees, a recurring revenue resulting from an annexation agreement with Meyer Material,
generates approximately $40,000 annually. Annexation income varies depending on the agreement and
comes in the form of a lump sum payment based on a per acre charge and periodic payments as building
permits are issued for each unit. The fund collects an annexation fee specifically to offset the added costs
associated with growth in school districts 415 and #156 and the Library and Fire Protection districts.
These fees, designated as operating fees, are distributed to the other taxing bodies based on the terms of
annexation agreements.
Budget Summary
ANNEXATION FUND
BUDGET SUMMARY
8 months
2014/15 2015/16 2015/16 2016/17 INCREASE
ACTUAL BUDGET ACTUAL BUDGET DECREASE)
EXPENDITURES
OTHER 43,820 45,000 23,333 45,000 0
TOTAL 43, 820 45,000 23, 333 45,000 0
2015/16 2015/16 2016/17 2016117
AMOUNT PERCENTAGE AMOUNT PERCENTAGE
FUNDING SOURCE
INTEREST EARNINGS 200 0.3 200 0.3
GRAVEUMINING INCOME 40,000 68.7 40,000 68.7
ANNEXATION FEES 18,000 30.9 18,000 30.9
TOTAL 58,200 100.0 58,200 100.0
Budget Highlights
No significant changes.
101
Motor Fuel Tax Fund (270)
Budget Request 8 months
FY 2016-2017 2016/17 2015/16 2015/16
Budget Difference Budget Actual
Revenues:
3210 Interest Earned 200 200 171
3150 Allotments from State 677,229 34,819 642,410 499,376
3180 Grants - Illinois First Program 39,844
3975 Transfer - General Fund
3999 Transfer- Other Funds
3890 Miscellaneous
Total Revenues 677,429 1 34,819 642,610 539,391
Expenditures:
6110 Materials and Supplies 305,000 305,000 31,262
8600 Streets 555,300 446,350) 1,001,650 223,162
9904 Transfer - Debt Service Fund 398,641 1,621) 400,262 266,841
9942 Transfer - Capital Improvements Fund
Total Expenditures 1,258,941 447,971) 1,706,912 521,265
102
Motor Fuel Tax Fund
Purpose
The purpose of the Motor Fuel Tax Fund is to provide dedicated revenues from taxes on gasoline and
diesel sales primarily to road improvements and road maintenance.
Fund Highlights—>
Motor fuel taxes are generated by a flat rate of cents per gallon, 19.0 for gasoline and 21.5 for diesel fuel,
plus a sales tax transfer. With the Illinois First program adopted by the State in 1999 to fund
infrastructure, roads, schools and transit programs, the sales tax transfer was eliminated in April of 2000
and certain vehicle registration fees replaced and supplemented this shared state revenue. On a net basis,
it is expected that the City will receive an additional 18% in revenues after,all phases of the program are
implemented.
Based upon the annual requirements, funds are used to finance certain road projects. In addition, the City
purchases road salt for snow and ice control from this fund on an annual basis.
Budget Summary
MOTOR FUEL TAX FUND
BUDGET SUMMARY
8 month
2014/15 2015/16 2015/16 2016117 INCREASE
ACTUAL BUDGET ACTUAL BUDGET DECREASE)
EXPENDITURES
SUPPLIES 246,681 305,000 31,262 305,000 0
OTHER 403,659 400,262 266,841 398,641 1,621)
CAPITAL 161,833 1,001,650 223,162 555,300 446,350)
TOTAL 812,173 1,706,912 521,265 1,258,941 447,971)
2015/16 2015/16 2016117 2016/17
AMOUNT PERCENTAGE AMOUNT PERCENTAGE
FUNDING SOURCE
INTEREST EARNINGS 200 0.0 200 0.0
OTHER 0 0.0 0 0.0
MOTOR FUEL TAX (STATE) 642,410 100.0 677,229 100.0
TOTAL 642,610 100.0 677,429 100.0
Budget Highlights
Debt service on the 2010 bond issue to fund the streets improvement program is $398,641 due in
FY 2016/17. This bond is a mixture of Recovery Zone and Build America bonds, which allows
the City to get a partial rebate on the interest paid from the federal government.
MFT revenues include $25.09 per capita in regular revenue and the special allotment of $120,000
awarded through the Illinois Jobs Now program ended in FY14-15.
The budget includes $555,300 in streets projects.
103
Motor Fuel Tax Fund
Capital Projects
Motor Fuel Tax Fund
Recommended Projects
Fiscal Year 2016/17
Amount
IL 120 & 31 Intersection Improv. Construction 55,000
Crystal Lake Road Improv. (Phase III Engineering & Construction) 263,400
McCullom Lake Road (Phase III Engineering & Construction) 10,000
Bull Valley Road Improvements (Phase II Engineering) 44,400
Ringwood Road (Phase I & II Engineering) 5,000
Pearl St./Lincoln Road (Phase I & II Engineering) 175,000
Curran Road (Phase I engineering) 2,500
Total Recommended Projects $555,300
104
Developer Donation Fund (280)
Budget Request 8 month
FY 2016-2017 2016/17 2015/16 2015/16
Budget Difference Budget Actual
Revenues:
3210 Interest Earnings
3775 Collected for Schools 33,000 33,000 64,625
3785 Collected for Library 4,770 4,770 17,996
3790 Collected for Fire District 4,770 4,770 13,832
Total Revenues 42,540 42,540 96,453
Expenditures:
6970 Payments to Schools 33,000 33,000 50,088
6980 Payments to Library 4,770 4,770 10,290
6990 Payments to Fire Protection District 4,770 4,770 17,924
Total Expenditures 42,540 42,540 78,302
Developer Donation Fund -Parks (28).41)
Budget Request 8 month
FY 2016-2017 2016/17 2015/16 2015/16
Budget Difference Budget Actual
Revenues:
3210 Interest Earnings 1,000 1,000 145
3780 Collected for Parks 54,000 54,000 165,788
3845 Rental Income 36,150 36,150 36,126
3180 Grants
3815 Donations
3882 Reimb - Misc
3890 Miscellaneous Income
Total Revenues 91,150 91,150 202,059
Expenditures:
6940 Administrative Expenses 14,200 14,200 11,250
8100 Land Acquisition 150,000 100,000 50,000
8800 Park Improvements 20,000 72,000) 92,000 34,660
9902 Transfer - Rec Center Construction Fund
9942 Transfer - Capital Improvements Fund I
Total Expenditures 184,200 28,000 156,200 1 45,910
105
Developer Donation Fund
Purpose
The purpose of the Developer Donation Fund is to account for donations collected from developers on
behalf of the primary and secondary school districts, fire protection district, library district, and the City's
parks system.
Fund Highlights -->
Developer donations are collected to ensure the provision of public facilities to serve new development by
requiring each new development to pay its fair share of the costs of such improvements as a condition of
approval. By City ordinance, anyone applying for a building permit for a residential unit will be required
to pay for school, park, fire protection, and library district purposes a cash contribution per each
residential dwelling unit to be constructed. The amount of the donation per residential unit is as follows:
The park's portion of the Developer Donations is used to collect cash in lieu of land donations. The City
has determined that the land donation requirement shall be 1.5 acres of parkland per 100 projected
population based upon the 1996 Illinois School Consulting Service table of estimated ultimate population
per dwelling unit. As a basis to collect cash in lieu of land donations, the fair market value of an
improved acre of land is $107,586. Proceeds of the donations for parks are intended for the development
of recreational opportunities in connection with the new development.
Developer Donation revenues are budgeted based on historical trends and existing developments that
provide the potential for building activity. However, if revenues fall short of projected levels,
expenditures are adjusted accordingly. Of the amount collected for schools, 65% goes to the primary
school district and the remaining 35% is provided to the secondary school district.
Budget Summary
DEVELOPER DONATIONS
BUDGET SUMMARY
8 month
2014/15 2015/16 2015/16 2016/17 INCREASE
ACTUAL BUDGET ACTUAL BUDGET DECREASE)
EXPENDITURES
OTHER 111,268 $42,540 78,302 42,540 0
TOTAL 111,268 $42,540 78,302 42,540 0
2015/16 2015/16 2016/17 2016/17
AMOUNT PERCENTAGE AMOUNT PERCENTAGE
FUNDING SOURCE
INTEREST EARNINGS 0 0.0 0 0.0
DEVELOPER DONATIONS 42,540 100.0 42,540 100.0
TOTAL 42,540 100.0 42,540 100.0
106
Developer Donation Fund
DEVELOPER DONATIONS (PARK DONATIONS)
BUDGET SUMMARY
8 month
2014/15 2015/16 2015/16 2016/17 INCREASE
ACTUAL BUDGET ACTUAL BUDGET DECREASE)
EXPENDITURES
OTHER $10,974 14,200 11,250 14,200 0
CAPITAL 232,076 142,000 34,660 170,000 28,000
TOTAL $243,050 156,200 45,910 184,200 28,000
2015/16 2015/16 2016/17 2016/17
AMOUNT PERCENTAGE AMOUNT PERCENTAGE
FUNDING SOURCE
INTEREST EARNINGS $1,000 1.1 1,000 1.1
PARK DONATIONS 90,150 98.9 901150 98.9
TOTAL $91,150 100.0 91,150 100.0
Budget Highlights
Due to the limited growth in the number of building permits, developer donation revenue is
expected remain unchanged from the prior year.
Capital expenses were budgeted at $170,000 for FYI 6/17.
Capital Items
Park Improvements
Developer Donations (Parks)
2016/17
Description Amount
ADA Park Improvements - rebudget $20,000
Miller Riverfront Boat Ramp $150,000
Total $170,000
107
Tax Increment Fund (290)
Budget Request 8 months
FY 2016-2017 2016/17 2015/16 2015/16
Budget Difference Budget Actual
Revenues:
3010 Property Taxes 325,000 325,000 314,911
3910 Bond Proceeds
3975 Transfer from General Fund
3810 Donations
3180 Grant
3890 Miscellaneous Income 1,000 1,000 1,000
3200 Interest
Total Revenues 326,000 326,000 315,911
Expenditures:
5110 Contractual Services 10,149
6940 Administrative Expense 62,000 62,000 56,771
9901 Transfer to General Fund 2,500 2,500 1,667
9904 Transfer to Debt Service 221,435 18,160) 239,595 159,730
8900 Capital - Public Improvements 20,000 20,000
Total Expenditures 305,935 1 (18,160)1 324,095 1 228,317
108
Tax Increment Finance Fund
Purpose
The purpose of the Tax Increment Finance (TIF) District is revitalizing the City's downtown area through
investment from both the private and public sectors.
Fund Highlights —>
In 2002, the City Council established the City of McHenry TIF. The TIF District encompasses the area
between John Street on the south and the Fox River on the east, Third Street on the west, and Pearl and
Broad Street on the north. The primary intent of creating the district was to revitalize the downtown with
a primary focus of generating funds to construct a Riverwalk.
Revenue for the district is generated by the collection of property taxes each year at an increment based
on the increase in assessed valuation of properties within the area since the district was created. The
excess tax revenue collected can only be used to fund projects located within the district.
2016/17 Goals and Objectives
Continue to aggressively work on encouraging additional development and redevelopment
projects in the TIF District.
Partner with private commercial real estate broker/agent to market the Miller Point property for
redevelopment.
Budget Summary
TAX INCREMENT FINANCING FUND
BUDGET SUMMARY
8 months
2014/15 2015116 2015/16 2016/17 INCREASE
ACTUAL BUDGET ACTUAL BUDGET DECREASE)
EXPENDITURES
CONTRACTUAL 3,021 0 10,149 0 0
OTHER 304,540 304,095 218,168 285,935 18,160)
CAPITAL 318,071 20,000 0 20,000 0
TOTAL 625,632 324,095 228,317 305,935 18,160)
2015116 2015/16 2016/17 2016/17
AMOUNT PERCENTAGE AMOUNT PERCENTAGE
FUNDING SOURCE
PROPERTY TAX REVENUES 325,000 99.7 325,000 99.7
BOND PROCEEDS 0 0.0 0 0.0
OTHER 1,000 0.3 1,000 0.3
INTEREST EARNINGS 0 0.0 0 0.0
GRANTS 0 0.0 0 0.0
TOTAL 326,000 100.0 326,000 100.0
Budget Highlights
Property tax revenues generated by the TIF are expected to remain flat due to a relatively flat
EAV.
109
HEART OF THE FOX RIVER
CAPITAL PROJECTS & DEBT SERVICE FUNDS
Recreation Center Fund (400.00)
Special Service Area (SSA) #4A (424.00)
Capital Improvements Fund (440.00)
Capital Equipment Fund (450.00)
Debt Service Fund (300.00)
110
Recreation Center Construction Fund (400)
Budget Request
FY16-17 Budget
8 month
2016/17 2015/16 2015/16
Budget Difference Budget Actual
Revenues:
3200 Interest Earned 2,000 2,000 885
3632 Concessions 800 800
3641 Babysitting 6,000 6,000
3642 Room Rentals 12,500 12,500
3643 Birthday Parties 4,500 4,500
3644 Sponsorship/Advertisement 7,500 7,500
3780 Transfer from Park Donations
3910 Bond Proceeds 2,015,000
3965 Premium on Bonds Payable 3,588
Total Revenues 33,300 31,300 2,000 2,019,473
Expenditures:
4010 Salaries 67,200 67,200
4050 Overtime
4110 Salaries -Seasonal
4130 Salaries - Front Desk Attendants 20,650 20,650
4135 Salaries - Front Desk Lead/Coordinator 14,025 14,025
4140 Salaries - Childcare Attendants 17,400 17,400
4145 Salaries - Rental Attendants 1,900 1,900
4190 Salary Adjustment
4310 Health/Vision 22,583 22,583
4320 Dental Insurance 999 999
4330 Life Insurance 69 69
4340 Insurance Premiums Vision 57 57
4410 FICA Medicare 9,328 9,328
4420 IMRF Retirement 9,072 9,072
4510 Uniform Allowance 2,500 2,500
Total Personnel 165,783 165,783
5110 Contractual 3,000 3,000
5200 Contract Custodial 32,000 32,000
5210 Marketing & Advertising 8,000 8,000
5215 Retention/Promotion 3,000 3,000 1,699
5320 Telephone 1,500 1,500
5321 Cable/TV 2,400 2,400
5375 Equipment Repairs 4,000 4,000
5510 Electric, Gas Utility 28,000 28,000
5600 Credit Card/Bank Fees 6,000 6,000
Total Contractual 87,900 87,900 1,699
6110 Building Supplies 3,500 3,500
6111 Custodial Supplies 15,000 15,000
6120 Childcare Supplies 1,000 1,000
6130 Safety Supplies 300 300
6141 Office Furniture/Equipment
6210 Office & Tech Supplies 3,000 3,000 1,253
Total Supplies 22,800 22,800 1,253
7400 Bond Issuance Costs 7,902
9901 Transfer -General Fund 80,000) 80,000
9904 Transfer - Debt Service Fund 132,356 132,356
Total Other 132,356 52,356 80,000 7,902
8200 Capital - Buildings 425,000 4,375,000) 4,800,000 3,067,844
8300 Equipment 141,418
Total Capital 425,000 4,375,000) 4,800,000 3,209,262
Total Expenditures 833,839 4,046,161) 4,880,000 3,220,116
111
Recreation Center Construction Fund (400)
Budget Request
FY16-17 Budget
Fitness Revenues
3645 Annual Membership 407,700 407,700
3646 Short -Term Membership 20,000 20,000
3647 Daily Admissions 10,800 10,800
3648 Punch Passes 3,000 3,000
3649 Misc Fees 1,000 1,000
3650 Fitness Classes -Session Based 5,000 5,000
3651 Small Group Personal Training 8,000 000
3652 Personal Training 13,500 500
469,000TotalRevenues469,0 00
Fitness Expenses
40.4160 Personal Trainers 4,000 4,000
40.4165 Orientation/Consultations 2,500 2,500
40.4170 Group Exercise Instructors 62,200 62,200
40.4175 Fitness Program Instructors 7,800 7,800
40.4180 Facility Attendants 17,200 17,200
40.4410 FICA 7,168 7,168
Total Personnel 100,868 100,868
40.5110 Contractual Services 4,500 4,500
40.5375 Equipment Repair 1,000 1,000
Total Contractual 5,500 5,500
40.6110 Fitness Supplies 6,000 6,000
40.6142 Fitness Equipment 1,200 1,200 2,382
Total Supplies 7,200 7,200 2,382
Total Expenses 113,568 113,568 2,382
112
Recreation Center Construction Fund
Purpose
Recognizing leisure activities, facilities, and open spaces are important to individuals, families, and
community life, it is the mission of the Parks and Recreation Department to provide planned recreation
programs and maintain facilities and parks to meet the recreational and park facility needs of the public.
Fund Highlights —>
The City Council has long discussed the feasibility of constructing and operating a community recreation
center. Growing recreation programs and athletic leagues have outgrown existing facilities that are leased
and borrowed from other public entities and private organizations. Many of the school facilities in which
the City's Parks and Recreation Department provide recreation programs are becoming unavailable to the
City since school programs and enrollments are growing and the facilities are required for school
sponsored programs.
In March of 1999, the City Council passed a resolution stating that 50% of developer donation fees for
parks were to be set aside for the construction of a recreation center. Consequently, the Recreation Center
Construction Fund was created to account for these donations. In addition, any future funding sources
identified for the construction of the facility would be deposited in this fund. Likewise, the expenditure
of funds for the construction of the facility would be taken from the fund.
Beginning in 2013, the City Council began the process for analyzing the feasibility for the construction of
a combined family -oriented aquatics facility and the first phase of a recreation facility. While a combined
facility was not deemed financially feasible at this time, Council directed staff to undertake a process for
proceeding with the first phase of a recreation facility to focus on the fitness and group fitness space,
multi -use rooms, and Parks and Recreation office space.
In 2014 the City Council approved the retention of FGM Architects and HR Green to undertake
engineering and facility planning and design. In March of 2015, council approved a contract for
construction of the recreation center with Stuckey Construction Co., Inc., which will allow construction to
begin in late spring or early summer.
2015/16 Accomplishments
The Recreation Center construction began in April of 2015 and proceeded without delay. The
18,200 square foot center opened for business on February 291h and membership has surpassed
1,000 at the end March.
A Recreation Center Manager was hired in September to finalize a great deal of processes
associated with the daily operation of the center, as well as select equipment and hire part time
staff.
In June the city reclassified the Athletics position during the hiring process to fill the vacancy
from a retirement of a long time employee. The position was transitioned to Athletics and
Aquatic Supervisor reflecting the addition of the pool and beach responsibilities with the position.
In February of 2016, the recreation side of the department was reorganized. The Recreation
Center Manager was tasked with the supervision of the Athletics and Aquatics Supervisor and the
Recreation Supervisor. The Recreation Center Manager will report directly to the Deputy City
Administrator.
2016/17 Goals and Objectives
Analyze the operations of the recreation center and finalize an updated Master Site Plan for the
facility.
113
Recreation Center Construction Fund
Construct the bike path additions in conjunction with the Recreation Center project.
Cooperate with other community organizations and provide services for community special
events.
For the Recreation Center, establish a baseline number for measuring and tracking key
performance metrics including: pass sales, member retention, pass member visits, class
participation.
Make the Recreation Center financially solvent by exceeding 1200 pass sales and monitoring
other revenue sources and expenditures.
Budnet Summa
RECREATION CONSTRUCTION FUND
BUDGET SUMMARY
2014/15 2015/16 2015/16 2016/17 INCREASE
ACTUAL BUDGET ACTUAL BUDGET DECREASE)
EXPENDITURES
PERSONNELCOSTS 0 0 0 266,651 266,651
CONTRACTUAL 0 0 1,699 93,400 93,400
SUPPLIES 0 0 3,635 30,000 30,000
CAPITAL 348,101 4,800,000 3,209,262 425,000 4,375,000)
OTHER 0 0 7,902 132,356 132,356
TOTAL 348,101 4,800,000 3,222,498 947,407 3,852,593)
2015/16 2015/16 2016/17 2016/17
AMOUNT PERCENTAGE AMOUNT PERCENTAGE
FUNDING SOURCE
TRANSFER - PARK DONATIONS 0 0.0 0 0.0
CHARGES FOR SERVICES 0 0.0 33,300 6.6
FITNESS CENTER REVENUES 0 0.0 469,000 93.0
INTERESTEARN INGS 2,000 100.0 2,000 0.4 TOTAL
2,000 100.0 504,300 100.0 Budget
Highlights Now
that the recreation center is fully open for business expenses to run the center are budgeted as
well as revenues for memberships as well as other charges for the center. Other
expenses include debt service costs for the $2.015 million bond issue to help fund the construction.
Capital
of $425,000 is rebudgeted to finish payments for design and construction of the facility. 114
Recreation Center Construction Fund
Personnel
Personnel Schedule
2015/16 Budget 2016/17 Budget Change
Dollars Numberof Dollars Number of Dollars Numberof
Salaries Grade Budgeted Employees Budgeted Employees Budgeted Employees
Recreation Center Manager 0 0.00 67,200 1.00 67,200 1.00
Seasonal/Program Instructors 0 53,975 53,975
Fitness - Part-time Staff 0 93,700 93,700
FICA/Medicare 0 16,496 16,496
IMRF 0 9,072 9,072
Health/Vision 0 22,640 22,640
Dental 0 999 999
Life Insurance 0 69 69
Uniform Allowance 0 2,500 2,500
Subtotal 0 266,651 51,776
0 $266,651 $51,776
115
Special Service Area #4 (424)
Budget Request 8 months
FY2016-17 2016/17 2015/16 2015/16
Budget Difference AgEet Actual
Revenues:
3010 Property Tax Collections 16,847 0 16,847 16,847
3200 Interest Income 0 0 0 1
Total Revenues 16,847 0 16,847 16,848
Expenditures:
9936 Transfer Utility Improvements Fund 16,847 0 16,847 11,231
Total Expenditures 16,847 0 16,847 11,231
116
Special Service Area #4A
Purpose
The purpose of Special Service Area (SSA) #4A Fund is to account for revenues and expenses associated
with annual debt service for the sewer project in the Lakewood Road Subdivision.
Fund Highlights —>
In July of 2003, the City of McHenry created a special service area to recover 75% of the costs of the
sewer project in the Lakewood Road Subdivision. A low-pressure sewer main was installed in 2004 on
Lakewood Road at the request of the 25 residents in the subdivision. The residents agreed to the
establishment of the SSA as a funding mechanism to pay for the project.
The creation of SSA #4A allows the City to levy a property tax on the property within the defined special
service area. The annual debt requirement is spread equally among the 25 lots rather than by the assessed
value of each property. The SSA was established for a period of 20 years for the purpose of recovering
75% of the costs of the project, in additional to adding the required capital development and sewer
connection fees. The City paid for the remaining 25% of the project.
The total amount to be repaid by the property owners in the SSA is approximately $327,200. This
includes the amounts for the sewer main, capital development and sewer connection fees less the City's
share of $87,800.
Budget Summary
SPECIAL SERVICE AREA #4 (LAKEWOOD SEWERS)
BUDGET SUMMARY
8 months
2014/15 2015/16 2015/16 2016/17 INCREASE
ACTUAL BUDGET ACTUAL BUDGET DECREASE)
EXPENDITURES
OTHER 16,847 $16,847 11,231 16,847 0
TOTAL 16,847 $16,847 11,231 16,847 0
2015/16 2015/16 2016/17 2016/17
AMOUNT PERCENTAGE AMOUNT PERCENTAGE
FUNDING SOURCE
PROPERTY TAX 16,847 100.0 16,847 100.0
TOTAL 16,847 100.0 16,847 100.0
Budget Highlights
Annual revenues are budgeted at $16,847 based on an assessment per land parcel that is not to
exceed $723.41.
117
Capital Improvements Fund (440) & Local Street Improvements Fund (441)
Budget Request 8 month
2016/17 2016/17 2015/16 2015/16
Budget Difference Budget Actual
Revenues:
3180 Grants
32101nterest 1,000 1,000 248
3760 Developer Contribution 197,700) 197,700
3765 Developer Donations
3815 Private Donations
3882 Reimb. Miscellaneous 270,000 270,000 171,741
3886 Reimb - State
3910 Bond Proceeds
3965 Premium on Bonds Payable
3971 Transfer - Annexation Fund
3975 Transfer - Gen Fund 2,381,459 1,318,959 1,062,500 708,333
3978 Transfer W/S Fund
3986 Transfer - MFT Fund
3999 Transfer Other Funds
3983 Transfer - Park Donations
Total Revenues 2,652,459 1,391,259 1,261,200 880,322
Expenditures:
5110 Contractual Services
6110 Materials & Supplies
7400 Bond Issuance Cost
8100 Capital - Land Acquisition
8200 Capital - Building Improvements 1,250,000 1,085,000 165,000 27,425
8500 Capital - Utility System Improvements
8600 Capital - Street Improvements 2,527,500 1,772,500 755,000 222,908
8800 Capital - Park Improvements 197,500 112,500 85,000 90,445
8900 Capital - Other Improvements 235,480 212,020) 447,500
9909 Transfer - MFT
9901 Transfer - General Fund
Total Expenditures 4,210,480 2,757,980 1,452,500 340,778
118
Capital Improvements Fund
Purpose
The purpose of the Capital Improvements Fund is to provide community facilities and services through a
planned program of infrastructure replacements and additions.
Fund Highlights—>
The Fund serves as the source of annual expenditures related to the City's five-year Capital
Improvements Program. The program is developed by setting priorities for infrastructure repair,
replacement, and expansion of various facilities.
Budget Summary
CAPITAL IMPROVEMENTS FUND
BUDGET SUMMARY
8 months
2014/15 2015/16 2015/16 2016/17 INCREASE
BUDGET BUDGET ACTUAL BUDGET DECREASE)
EXPENDITURES
TOTAL 932,100 1,452,500 340,778 4,210,480 3,869,702
TOTAL 932,100 1,452,500 340,778 4,210,480 3,869,702
2015/16 2015/16 2016/17 2016117
AMOUNT PERCENTAGE AMOUNT PERCENTAGE
FUNDING SOURCE
INTEREST EARNINGS 1,000 0.1 1,000 0.0
DEVELOPER CONTRIBUTION 197,700 8.7 0 0.0
GRANTS 0 0.0 0 0.0
BOND PROCEEDS 0 0.0 0 0.0
PRIVATE DONATIONS 0 0.0 270,000 10.2
TRANSFER - ANNEXATION FUND 0 0.0 0 0.0
TRANSFER -GENERAL FUND 1,062,500 46.7 2,381,459 89.8
TRANSFER - MFT 0 0.0 0 0.0
TRANSFER-W/S 0 0.0 0 0.0
TRANSFER OTHER FUNDS 0 0.0 0 0.0
TRANSFER - PARK DONATIONS 0 0.0 0 0.0
TOTAL 1,261,200 55.5 2,652,459 100.0
Budget Highlights
The FY 2016/17 budget includes three items that are rebudgeted because the projects were not
finished as of the close of FY2015/ 16. These include the Dartmoor/Crystal Lake traffic signal for
160,480, the municipal center improvements for $80,000 and park improvements for $85,000.
This budget also includes $2,000,000 for a street program as well as $100,000 for cracksealing.
There will also be park, parking lots, and sidewalk improvements made for a total of $217,500.
These projects will be covered by a transfer from the general fund as well as funds from the
Capital Improvements Fund and General Fund Fund balance.
Additions to the dispatch center will also be completed for $900,000
119
Capital Improvements Fund
Capital Improvements Fund
Recommended Projects
Fiscal Year 2015116
Amount
Dartmoor/Crystal Lake Road Signal - rebudget 160,480
Municipal Center Improvements - rebudget 80,000
Park Improvements - rebudget 85,000
Public Works Facility Improvements 270,000
Street Program 2,000,000
Bull Valley/Curran Road 320,000
Cracksealing 100,000
Sidewalks 75,000
Curran S-Curve 2,500
Dispatch Renovations 900,000
ADA Park Improvements 20,000
Parking Lot Improvements 30,000
Merkel Aquatic Center Improvements 10,000
Sport Court Renovations 27,500
Petersen Farm Improvements 20,000
Petersen Park Improvements 35,000
Riverwalk Seawall 75,000
Total Recommended Projects 4,210,480
120
Capital Equipment Fund (450)
Budget Request 8 months
2016/17 2016/17 2015/16 2015/16
Budget Difference Budget Actual
Revenues:
3210 Interest 64
3975 Transfer - Gen Fund 243,225) 243,225 185,217
3978 Transfer W/S Fund
Total Revenues 243,225) 243,225 185,281
Expenditures:
8300 Capital - Equipment 288,500 225,775 62,725 212,742
8400 1 Capital - Vehicles 190,800 9,700)1 200,500 30,485
Total Expenditures 479,300 1 216,075 1 263,225 243,227
121
Capital Equipment Fund
Purpose
The purpose of the Capital Equipment Fund is to provide for equipment through a planned program of
infrastructure replacements and additions.
Fund Highlights-->
The Fund serves as the source of annual expenditures related to the City's five-year Capital
Improvements Program. The program is developed by setting priorities for equipment replacement.
Budget Summary
CAPITAL EQUIPMENT FUND
BUDGET SUMMARY
8 month
2014/15 2015/16 2015/16 2016/17
BUDGET BUDGET ACTUAL BUDGET
EXPENDITURES
CAPITAL $503,521 277,825 96,683 479,300
TOTAL $503,521 277,825 96,683 479,300
2015/16 2015/16 2016/17
AMOUNT PERCENTAGE AMOUNT
FUNDING SOURCE
INTEREST EARNINGS 0 0.0 0
FUND BALANCE 0 0.0 479,300
TRANSFER - GENERAL FUND 277,825 100.0 0
TOTAL TRANSFER-W/S 0 0.0 0
277,825 100.0 479,306
Budget Highlights
Capital Equipment Fund
Recommended Projects
Fiscal Year 2016/17
INCREASE
201,475
201,475
2016/17
PERCENTAGE
0.0
100.0
0.0
0.0
100.0
Department Amount
Police Vehicles PD 105,800
Police Vehicle Equipment PD 43,500
Streets - Vehicle Replacement STS 35,000
Streets - Equipment Replacement STS 245,000
Parks Vehicle Parks 50,000
Total Recommended Projects 479,300
122
Debt Service Fund (300)
Budget Request 8 month
FY 2016-17 2016/17 2015/16 2015/16
Budget Difference Budget Actual
Revenues:
3210 Interest Earnings 150 150 8
3220 CD Interest
3910 Bond Proceeds 4,360,000
3915 Bond Interest Rebate 31,119 4,270) 35,389 17,966
3966 Premium on Refunding 42,507
3985 Transfer from SSA #1A
3971 Transfer from Annexation Fund 35,000 35,000 23,333
3972 Transfer from Rec Center Fund 132,356 132,356
3975 Transfer from General Fund 726,318 3,641) 729,959 486,640
3986 Transfer from MFT Fund 398,641 2,105) 400,746 266,841
3969 Transfer from TIF 221,435 18,160) 239,595 159,730
3978 Transfer from Water 96,647 6,154) 102,801 68,534
3978 Transfer from Sewer 12,283 782) 13,065 8,710
Total Revenues 1,653,949 97,244 1,556,705 5,434,269
Expenditures:
7100 Bond Principal Payments 1,395,000 160,000 1,235,000 50,000
7200 Bond Interest Payments 253,799 62,756) 316,555 212,040
7300 Paying Agent Fees 5,000 5,000 18,865
7500 Bond Refunding 4,295,000
Total Expenditures 1,653,799 97,244 1,556,555 4,575,905
123
Debt Service Fund
Purpose
The purpose of the Debt Service Fund is to account for bonded indebtedness incurred by the City's
General Fund, including all bond and interest payments.
Fund Highlights—>
The Debt Service Fund is a non -operating budgetary unit. It does not provide direct service to the public
and is utilized for internal purposes only. Debt service payments (both principal and interest) are paid
from this fund. In turn, the General Fund, Tax Increment Finance Fund, and the Motor Fuel Tax (MFT)
Fund transfer adequate funds to the Debt Service Fund for debt service payments.
At the present time, there are five outstanding bonds for which the Debt Service Fund provides the
principal and interest payments.
In 2010, refunding bonds of $2.03 million were issued to retire the 2002 Alternate GO Bonds that were
used to fund drainage improvements. This saved the City approximately $110,000.
Series 2010B GO Bonds, principal value of $3,510,000, have been issued to cover future road
improvements. MFT funds will be used to cover these expenses.
In FY2012/13 the City issued $3,100,000 in GO Bonds. $850,000 was to cover roof and HVAC repairs
at the Public Works facility, $2,250,000 was to cover rehabilitation at Water Treatment Plant 42.
In 2013, refunding bonds of $1.985 million were issued to retire the 2005 Alternate GO Bonds that were
used to fund drainage and sewer improvements. This saved the City approximately $100,000. In addition
to the refunding, $415,000 in new money was issued to cover additional repairs to the roof and HVAC
system at the Public Works facility.
In 2015, refunding bonds of $4.360 million were issued to retire the 2006 Alternate GO Bonds that were
used to pay for the constructions of Phase I of the McHenry Riverwalk as well as the 2007 Alternate GO
Bonds to fund the purchase of a Public Works building. In addition to the refunding, $2.015 million in
new money was issued to pay for the construction of the Recreation Center.
The City's current bond rating is Aa2 by Moody's Investor Services.
124
Debt Service Fund
Budget Summary
EXPENDITURES
OTHER
TOTAL
DEBT SERVICE FUND
BUDGET SUMMARY
8 month
2014/15 2015/16 2015/16 2016/17 INCREASE
ACTUAL BUDGET ACTUAL BUDGET DECREASE)
1,566,868 $1,556,555 1,566,868 1,653,799 97,244
1,566,868 $1,556,555 1,566,868 1,653,799 97,244
FUNDING SOURCE
TRANSFER -GENERAL FUND
TRANSFER - SSA #1A FUND
TRANSFER - MFT FUND
TRANSFER - TIF FUND
TRANSFER - RECREATION CENTER FUND
TRANSFER - WATER/SEWER
TRANSFER -ANNEXATION FUND
BOND INTEREST REBATE
INTEREST EARNINGS
2015/16 2015/16 2016/17 2016/17
AMOUNT PERCENTAGE AMOUNT PERCENTAGE
729,959 46.9 726,318 43.9
0 0.0 0 0.0
400,746 25.7 398,641 24.1
239,595 15.4 221,435 13.4
0 0.0 132,356 8.0
115,866 7.4 108,930 6.6
35,000 2.2 35,000 2.1
35,389 2.3 31,119 1.9
150 0.0 150 0.0
1,556,705 100.0 1,653,949 100.0
Budget Highlights
In FY 11/12 through FY16/17, the City transferred $35,000 from the Annexation Fund to cover a
portion of the debt service for the bonds used to purchase the Public Works Facility.
125
HEART OF THE FOX RIVERY
ENTERPRISE FUNDS
Public Works - Water (510.31)
Public Works - Wastewater (510.32)
Public Works - Utility Division (510.35)
Capital Development Fund (550.32)
Utility Improvements Fund (580.31)
Marina Operations Fund (590.00)
126
Doug Mace
Water Operator II
Nv
PUBLIC WORKS -WATER
Chris Sandoz
Maintenance Worker
Bryan Scheel
Water Operator II
FY16-17 Water/Sewer Fund Budget
FY16-17 Budget FY15-16 FY15-16
Budget Change Budget 8 month Actual
Water
3610 Water Sales 2,427,359 260,074 2,167,285 1,375,034
3615 Capital Fees 135,000 135,000
3620 Penalties 55,000 3,000 52,000 38,069
3640 Meter Sales 8,000 8,000 8,800
3210 Interest Income 2,000 2,000 1,323
Miscellaneous Income 60,200 601200 66,596
3630 Water Hookup Fees 6,000 6,000 8,000
Total Water Fund Revenues 2,693,559 398,074 2,295,485 1,497,822
4010 Salaries 384,454 61,147 323,307 376,914
4050 Overtime 24,000 10,000 14,000 24,313
4190 Salary Adjustment 9,582 5,568 4,014
4110 Salaries - Seasonal 11,500 11,500 10,047
4310 Health Insurance 119,786 14,853 104,933 128,339
4320 Dental Insurance 957 587)1 1,544 1,492
4330 Life Insurance 380 69 311 251
4340 Vision Insurance 86 56 30 33
4410 FICA Medicare 32,860 5,869 26,991 33,310
4420 IMRF Retirement 56,435 10,357 46,078 64,861
4510 Uniform Allowance 2,025 475 1,550 1,099
Total Personnel 642,065 107,807 534,258 640,659
5110 Contractual Services 145,000 24,780 120,220 49,618
5310 Postage & Meter 4,500 1,000 3,500 2,707
5320 Telephone 5,000 1,500 3,500 3,076
5370 Repr & Maint-Vehicles 3,500 3,500 5,523
5410 Dues 500 500 319
5430 Training Expense 2,500 2,250) 4,750 1,667
5440 Tuition Reimbursement
5450 Publications
5510 Utilities 125,000 40,000) 165,000 81,172
Total Contractual 286,000 14,970) 300,970 144,082
6110 Materials & Supplies 140,000 20,000 120,000 155,457
6210 Office Supplies 650 650 284
6250 Gasoline & Oil 8,000 4,000) 12,000 23,657
6270 Small Tools 1,250 1,250 497
6940 Administrative Expenses 1,402
Total Supplies 149,900 16,000 133,900 181,297
9000 Amortization Bond Issuance
9100 Amortization Bond Discount
7100 Principal Payment 95,000 95,000
7200 Interest Payment 46,308 1,900) 48,208 50,108
7300 Fees - Paying Agent 311
9510 Depreciation Expense 500,000 500,000
9904 Transfer - Debt Service 96,647 6,154) 102,801 63,962
9920 Pur Sery - Risk Mgt 67,455 5,719) 73,174 48,783
9921 Pur Sery -Gen Fund 222,018 3,281 218,737 145,825
9922 PurSery - IT Fund 16,142 935 15,207 8,063
9923 PurSery - Audit 4,108 81 4,027 2,636
9930 Transfer-Water/Sewer Fund 851,063 186,241 664,822
9936 Transfer -Utility Imp Fund
9946 Trans. -Cap. Equip. Fund
Total Other 1,898,741 176,765 1,721,976 319,688
8200 Capital - Improvements
8300 Capital - Equipment
8400 Capital - Vehicles
8500 Capital - Utility System Imp
Total Capital
Total Water Expenses 2,976,706 2,691,104 1,285,726
Public Works — Water Division
Mission Statement
The City of McHenry Water Division's first order of responsibility is to provide a safe and reliable supply
of high quality potable water. The water produced must meet or exceed all federal and state health
standards. An unyielding commitment to this mission will continue to provide a high level of customer
service to the consumer and ensures public safety to the community.
Primary Functions —> The primary functions of the Water Division are the following:
Providing 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.
Water metering provides meter readings to the Finance Department for utility billing and
maintains an ongoing meter replacement program of approximately 7,500 water meters.
Respond to Joint Utility Locate Information for Excavators (J.U.L.I.E.) requests.
Respond to consumer inquiries regarding water quality or high consumption questions or general
concerns.
2015/16 Accomplishments
Met or exceeded all State and Federal Drinking water regulations.
Upheld the high level of customer service City residents and businesses have come to expect.
Have transitioned to independent divisions with respect to the formation of the Utility Division.
Worked closely with the Utility to facilitate this transition and maintained a high level of
customer service.
Expect to receive a 201h consecutive annual fluoride award from the Illinois Department of Public
Health.
Responded to over 4000 J.U.L.I.E. locate requests
After the implementation of new billing software in 15/16 the reinstitution of the meter change
out program began.
Assisted the USEPA in completing the South River Rd Watermain Extension.
2016/2017 Goals and Objectives
Continue to meet or exceed all Federal and State drinking water regulations.
Solicit bids for the repainting of Tower #3 located east of the river in the Adam's
Industrial Park. Complete project in 2016.
Complete Water Treatment Plant #4,exterior building maintenance
Reinstitute Well inspection/Maintenance/Repair
A major focus will be on the meter change out program, despite limited man power availability.
129
Public Works — Water Division
Justify one additional employee in the Water Division.
Budget Summary
PUBLIC WORKS DEPARTMENT - WATER DIVISION
BUDGET SUMMARY
8 month
2014/15 2015/16 2015/16 2016/17 INCREASE
ACTUAL BUDGET ACTUAL BUDGET DECREASE)
EXPENDITURES
PERSONNEL 1,036,413 534,258 332,983 642,065 107,807
CONTRACTUAL 277,485 300,970 185,060 286,000 14,970)
SUPPLIES 249,503 133,900 92,820 149,900 16,000
OTHER 924,241 1,721,976 743,595 1,898,741 176,765
CAPITAL EXPENDITURES 0 0 10,025 0 0
TOTAL 2,487,642 2,691,104 1,364,483 2,976,706 285,602
INCREASE
PERSONNEL AUTHORIZATION 2013114 2014/15 2015/16 2016/17 (DECREASE)
TOTAL 9.50 9.50 4.50 4.50 0.00
FUNDING SOURCE
WATER SALES
CAPITAL FEES
PENALTIES
METER SALES
INTEREST INCOME
MISCELLANEOUS INCOME
WATER HOOK UP FEES
TOTAL
Budget Highlights
2015/16 2015/16 2016/17 2016/17
BUDGET PERCENTAGE BUDGET PERCENTAGE
2,167,285 94.4 2,427,359 90.1
0 0.0 135,000 5.0
52,000 2.3 55,000 2.0
8,000 0.3 8,000 0.3
2,000 0.1 2,000 0.1
60,200 2.6 60,200 2.2
6,000 0.3 6,000 0.2
2,295,485 100.0 2,693,559 100.0
Personnel expenses increase due to the addition of one employee as well as for the bargaining
union contract costs, non -bargaining unit merit -based increases and retirement and insurance
costs.
Contractual expenses decrease due to lower utility costs.
Supplies expenses increase due to the purchase of additional replacement water meters.
Other expenses increase due to a transfer of revenue to cover the Utility Division expenses.
Transfers for Utility Improvement Fund and Capital Equipment Fund have been eliminated for
the fiscal year.
130
Public Works - Water Division
Fixed Assets
Fixed assets in 2016/17 for the Water Division total $988,000.
Water Fund
Recommended Projects
2016/17 Fiscal Year
Total
2015/16 Project
Treatment Plant #4 Maintenance 58,000 58,000
Well Inspection, Maintenance, Repair 45,000 45,000
Water Tower Maintenance 300,000 300,000
Bull Valley Water Project 585,000 585,000
Total 988,000 988,000
Personnel Review
Salaries
Water Superintendent
Plumbing Inspector
Water Operator II
Water Maintenance Worker
Part-time (Seasonal)
Overtime
Sickday Payback Incentive
Longevity Bonus
Salary Adjustment
IMRF Retirement
FICA/Medicare
Health
Dental
Life Insurance
Uniform Allowance
Subtotal
Public Works Department - Wa
Personnel Schedule
2015/16 Budget 2016/17 Budget Change
Dollars Number of Dollars Number of Dollars Number of
Grade Budgeted Employees Budgeted Employees Budgeted Employees
12 88,031 1.00 90,452 1.00 2,421 0.00
6 33,448 0.50 34,201 0.50 753 0.00
U-E 138,597 2.00 146,474 2.00 7,877 0.00
U-C 62,116 1.00 112,160 2.00 50,044 1.00
11,500 11,500 0
14,000 24,000 10,000
1,115 1,167 52
0 0 0
4,014 9,582 5,568
352,821 4.50 429,536 5.50 76,71 1.00
46,078
26,991
104,933
1,544
30
311
1,550
181,437
534,258
56,435
32,860
119,786
957
86
380
2,025
212,529
642, 065
10,357
5,869
14,853
587)
56
69
475
31,092
107,807
131
PUBLIC WORKS -WASTE WATER
w
N
Jeff Lisafeld Daniel Duffy
Mechanic I f Wastewater Operator II
John Kuhl
Wastewater Operator II
Bryan Thome
Wastewater Operator II
Russell Adams
Wastewater Operator II
FY16-17 Water/Sewer Fund Budget
FY16-17 Budget FY15-16 FY15-16
Budget Change Budget
8 month
Actual
Sewer
3610 Sewer Sales 2,706,376 111,576 2,594,800 1,656,270
3615 Capital Fees 260,000
3620 Penalties 56,000 56,000 42,030
3630 Sewer Connections 8,000 8,000 7,750
3210 Interest Income 2,000 2,000 1,323
3660 Debt Service Fee 1,251,000 850,000 401,000 266,443
3890 Miscellaneous Income 81,048 81,048 16,661
Total Sewer Fund Revenues 4,364,424 1,221,576 3,142,848 1,990,477
4010 Salaries 524,639 22,197 502,442 364,086
4110 seasonal Employees 5,000 5,000 2,265
4050 Overtime 40,000 40,000 24,748
4190 Salary Adjustment 13,078 2,270 10,808
4310 Health/Vision 108,233 11,948) 120,181 128.312
4320 Dental Insurance 842 8 834 523
4330 Life Insurance 483 483 264
4340 Vision Insurance 136 2) 138 89
4410 FICA Medicare 44,578 1,872 42,706 32,343
4420 IMRF Retirement 77,992 3,303 74,689 56,607
4510 Uniform Allowance 3,000 1 300 2,700 2,645
Total Personnel 817,981 18,000 799,981 611,882
5110 Contractual Services 181,000 18,000) 199,000 126,308
5310 Postage & Meter 2,000 2,000 294
5320 Telephone 5,000 6,000) 11,000 2,094
5370 Repr & Maint-Vehicles 5,000 5,000 15,586
5375 Repr & Maint-Equip 70,000 12,500) 82,500 89,000
5380 Repr & Maint-System 91,000 66,000 25,000 50,442
5410 Dues 400 400 594
5430 Training 750 750 765
5440 Tuition Reimbursement 1,000 1,000
5450 Publications 100 100
5510 Utilities 300,000 115,000) 415,000 179,080
5580 Sludge Disposal 1 193,160 1 2,000 191,160 131,495
Total Contractual 849,410 83,500) 932,910 595,658
6110 Materials & Supplies 214,000 214,000 134,567
6210 Office Supplies 1,000 1,000 876
6250 Gasoline & Oil 20,000 20,000 22,497
Total Supplies 235,000 235,000 157,940
9000 Amoritzation-Bond Issuance
9100 Amoritzation-Bond Discount
6940 Administrative Expense 1,880
7091 Debt Service - Accrued Interest
7100 Bond Principal 250,000 5,000 245,000
7200 Bond Interest 195,813 5,512) 201,325 205,790
7300 Fees - Paying Agent 1,100 1,100 1,053
7450 Bond Discount Expense
9510 Depreciation Expense 1,200,000 100,000 1,100,000
9904 Transfer to Debt Service Fund 12,283 782) 13,065 8,129
9920 Purch Sery - Risk Mgt 67,455 20,521) 87,976 58,651
9921 Purch Sery- Gen Fund 236,686 3,498 233,188 155,459
9922 Purch Serv- Info Tech 12,231 481 11,750 5,848
9923 PurchSery -Audit 4,108 81 4,027 2,636
9930 Transfer-Water/Sewer Fund 619,873 238,710 381,163
9936 Transfer -Utility Imp Fund 1,720,340 1,720,340
9939 Marina Fund Transfer
9942 Transfer CIF
Total Other 4,319,889 2,041,295 2,278,594 439,446
8200 Capital - Building Improvements 241,168
8300 Capital - Equipment
8400 Capital - Vehicles
8500 Capital - Utility Improvements 1,550
Total Capital 242,718
Total 6,222,280 1,975,795 6,485 2,047,644
Public Works Department — Wastewater Division
Mission Statement
It is the mission of the Public Works Department Wastewater Division to protect public health and the
environment by treating sewage to meet stringent environmental standards prior to discharge.
Primary Functions -> The primary functions of the Wastewater Division are the following:
Provides for the operation and maintenance of two wastewater treatment plants and the care and
upkeep of 18 lift stations.
Maintain records on the amount of wastewater treated and the quality of water discharged to the
Fox River and report this information to the Illinois Environmental Protection Agency in
compliance with NPDES permits.
FY 2015/16 Accomplishments
The Fieldstone Avenue lift station was upgraded with new pumps and controls. The project was
included in the 2015/2016 CIP and finished up under the budgeted amount.
The designs of the treatment plant consolidation and force main project were finalized. The
project went out to bid and the treatment plant construction portion was awarded to Williams
Brothers Construction of Peoria. Ground breaking on the consolidation project began in late
2015 and is expected to take 2 years to complete.
The force main portion of the project went out to bid in February 2016. The awarding of the
contract is expected in March 2016.
The Wastewater Division treated more than 1.2 billion gallons of wastewater in 2015.
2016/2017 Goals and Objectives
Continue to meet or exceed the NPDES permit requirements and regulations as set forth by the
Illinois Environmental Protection Agency.
Maximize the performance of both treatment plants in an effort to operate as efficient as possible.
Continue to investigate ways to operate the treatment plants in the most cost effective manner.
Implementation of the 2016/17 Capital Improvement Program which includes the following
project: Expansion/consolidation of the SWWTP/CWWTP. The project consists of overseeing the
expansion and upgrading of the SWWTP and construction of a new 4.0 MGD treatment plant
adjacent to the current SWWTP. The second component of the project is the force main portion.
This pipeline will connect the two treatment plants.
134
Public Works Department — Wastewater Division
Budget Summary
PUBLIC WORKS DEPARTMENT -WASTEWATER DIVISION
BUDGET SUMMARY
2014/15 2015/16
ACTUAL BUDGET
EXPENDITURES
PERSONNEL 1,008,859 799,981
CONTRACTUAL 875,536 932,910
SUPPLIES 264,065 235,000
OTHER 1,710,434 2,278,594
CAPITAL 3,908 0
TOTAL 3,862,802 4,246,485
PERSONNEL AUTHORIZATION 2013/14 2014/15
TOTAL 10.00 10.00
2015/16
BUDGET
FUNDING SOURCE
SEWER SALES 2,594,800
CAPITAL FEES 0
PENALTIES 56,000
SEWER CONNECTIONS 8,000
INTEREST INCOME 2,000
DEBT SERVICE FEE 401,000
MISC INCOME 81,048
TOTAL 3,142, 848
Budget Highlights
8 months
2015116
ACTUAL
2016/17
BUDGET
INCREASE
DECREASE)
488,738 817,981 18,000
468,103 849,410 83, 500)
129,362 235,000 0
590,730 4,319,889 2,041,295
10,025 0 0
1,686,958 6,222,280 1,975,795
INCREASE
2015/16 2016/17 (DECREASE)
7.00 7.00 0.00
2015/16 2016/17 2016/17
PERCENTAGE BUDGET PERCENTAGE
85.5 2,706,376 62.0
0.0 260,000 6.0
1.8 56,000 1.3
0.3 8,000 0.2
0.1 2,000 0.0
13.2 1,251,000 28.7
2.7 81,048 1.9
103.6 4.364.424 100.0
Personnel expenses increase for the bargaining union contract costs, non -bargaining unit merit -
based increases and retirement and insurance costs.
Other expenses increase $100,000 due to capital purchases that are budgeted through the
depreciation line item. They also increase $238,710 to cover the Utility Division expenses. A
transfer for $1,720,340 has also been budgeted in order to cover the expenses in the Utility
Improvements Fund for the force main project.
Fixed Assets
Fixed assets in 2016/17 for the Sewer Division total $600,000.
135
Public Works Department - Wastewater Division
Sewer Fund
Recommended Projects
2016/17 Fiscal Year
Total
2016/17 Project
Sewer Div. Motor Pool $300,000 $300,000
Fieldstone Lift Station - rebudget $300,000 $330,000
Total $600, 000 $630, 000
Personnel Review
Public Works Department - Wastewater
Personnel Schedule
2015/16 Budget 2016/17 Budget Change
Dollars Number of Dollars Number of Dollars Number of
Salaries Grade Budgeted Employees Budgeted Employees Budgeted Employees
Sewer Plant Superintendent 12 88,031 1.00 90,452 1.00 2,421 0.00
Asst. Sewer Plant Supt. 10 69,588 1.00 71,501 1.00 1,913 0.00
Wastewater Treatment Op II U-E 271,800 4.00 285,239 4.00 13,439 0.00
Wastewater Mechanic U-E 71,578 1.00 75,938 1.00 4,360 0.00
Wastewater Treatment Op I U-D 0 0.00 0 0.00 0 0.00
Seasonal Employees 5,000 5,000 0
overtime 40,000 40,000 0
Sickday Payback Incentive 1,445 1,509 64
Salary Adjustment 10,808 13,078 2,270
Longevty Bonus 0 0 0
Subtotal 558,250 7.00 582,717 7.00 24,467 0.00
Benefits
IMRF Retirement 74,689 77,992 3,303
FICA/Medicare 42,706 44,578 1,872
Health 120,181 108,233 11, 948)
Dental 834 842 8
Life Insurance 483 483 0
Vision 138 136 2)
Uniform Allowance 2,700 3,000 300
Subtotal 241,731 235,264 6,467)
Total $799,981 $817,981 $18,000
Note: E = Exempt; N = Non -Exempt; U = IUOE Local #150 Collective Bargaining Unit Position
136
Christopher Beranek
Maintenance Worker
Greg Oliver
Maintenance Worker
w
PUBLIC WORKS -UTILITY
David Fees
Maintenance Worker
Steve Ramirez
Maintenance Worker
Sean Johnson
Maintenance Worker
Todd Sasek
Maintenance Worker
Mike Lange
Maintenance Worker
Clint Greve
Maintenance Worker
FY16-17 Utility Fund Budget
FY16-17 Budget FY15-16 FY15-16
Budget Change Budget
8 month
Actual
Utility
3978 Transfer - Water Fund 851,063 186,241 664,822
3978 Transfer - Sewer Fund 619,873 238,710 381,163
Total Sewer Fund Revenues 1,470,936 424,951 1,045,985
4010 Salaries 595,248 82,721 512,527
4050 Overtime 35,000 35,000
4110 Salaries - Seasonal 10,000 10,000
4190 Salary Adjustment 14,836 4,210 10,626
4310 Health/Vision 182,225 23,244 158,981
4320 Dental Insurance 999 30) 1,029
4330 Life Insurance 621 69 552
4340 Vision Insurance 7 13) 20
4410 FICA Medicare 50,114 7,415 42,699
4420 IMRF Retirement 87,086 11,735 75,351
4510 Uniform Allowance 3,750 600 3,150
Total Personnel 979,886 139,951 839,935
5110 Contractual Services 15,000 2,500) 17,500
5310 Postage & Meter 500 500
5320 Telephone 1,500 5,000) 6,500
5370 Repr & Maint-Vehicles 16,000 5,500 101500
5410 Dues 200 200
5430 Training 500 500
Total Contractual 33,700 2,000) 35,700
6110 Materials & Supplies 150,000 150,000
6210 Office Supplies 1,100 1,100
6250 Gasoline & Oil 15,000 3,000) 18,000
6270 Small Tools 1,250 1,250
Total Supplies 167,350 3,000) 170,350
9510 Depreciation Expense 3,700 3,700
Other 3,700 3,700Total
8200 Capital - Building Improvements
8300 Capital - Equipment
8400 Capital - Vehicles
8500 Capital - Utility Improvements
Total Capital
Total 1,184,636 138,651 1,045,985
100
Public Works — Utility Division
Mission Statement
The City of McHenry Utility Division's commitment is to provide the highest level of customer service to
its residents and consumers. This includes the maintenance of the water distribution and sanitary sewer
collection systems with a focus of enhancing public safety within the community.
Primary Functions —> The primary functions of the Utility Division are the following:
Clean, maintain and repair the sanitary collection system
Maintain and repair water distribution system
2015/16 Accomplishments
Changed out all remaining 2 port fire hydrants improving fire flow and ISO rating.
Flush all of the City's fire hydrants for spring and fall hydrant flushing program.
Cleaned and televised over a 148,000' (28 miles) of sanitary main including the subdivisions
Whispering Oaks, Lakeland Shores, Pheasant Valley, Parkridge Estates, Trails of Winding Creek
and Kresswood Trails and maintenance list.
Repaired 12 water main breaks and 23 water services.
Responded to 16 possible sewer backups.
2016/2017 Goals and Objectives
Continue to keep the sanitary collection system well maintained and continue to clean and
televise the entire collection system.
Reduce inflow and infiltration in collection system through the implementation of the of the
2016/17 Capital Improvement Program which include the Oakwood Dr. sanitary sewer main
rehabilitation, the sanitary sewer main rehabilitation program and the sanitary sewer
rehabilitation program.
Continue to keep distribution well maintained with water valve maintenance program and fire
hydrant spring and fall flushing programs. Also through the implementation of the water main
replacement program through the 2016/17 Capital Improvement Program
Locate all missing B-Box's on GIS
139
Public Works — Utility Division
Sunget Numma
PUBLIC WORKS DEPARTMENT - UTILITY DIVISION
BUDGET SUMMARY
8 month
2014/15 2015/16 2015116 2016/17 INCREASE
ACTUAL BUDGET ACTUAL BUDGET DECREASE)
EXPENDITURES
PERSONNEL 23,700 839,935 515,835 979,886 139,951
CONTRACTUAL 740 35,700 20,011 33,700 2,000)
SUPPLIES 4,551 170,350 77,548 167,350 3,000)
OTHER 0 0 0 3,700 3,700
CAPITAL EXPENDITURES 0 0 0 0 0
TOTAL 28,991 1,045,985 613,394 1,184,636 138,651
INCREASE
PERSONNEL AUTHORIZATION 2013/14 2014/15 2015/16 2016/17 DECREASE)
TOTAL 0.00 0.00 8.00 8.00 0.00
2015/16 2015/16 2016/17 2016/17
BUDGET PERCENTAGE BUDGET PERCENTAGE
FUNDING SOURCE
WATER DEPARTMENT TRANSFER 664,822 63.6% 851,063 57.9%
SEWER DEPARTMENT TRANSFER 381,163 36.4% 619,873 42.1%
TOTAL 1,045,985 100% 1,470,936 100.0
Budget Highlights
Personnel expenses increase due to an addition of an employee as well as for the bargaining union
contract costs, non -bargaining unit merit -based increases and related retirement and insurance
costs.
Contractual and Supplies costs decrease slightly to better match actual spending
Other expenses are budgeted at $3,700 due to depreciation expenses.
Fixed Assets
Fixed asset; in 2016/17 for the Division total $290,000.
Utility Fund
Recommended Projects
2016117 Fiscal Year
Sanitary Sewer Main Rehab
Water Main Replacement
Sanitary Sewer Manhole Program
Oakwood Drive Sanitary Sewer Main
Total
Total
2016/17 Project
110,000 110,000
100,000 100,000
50,000 50,000
30,000 30,000
290, 000 290, 000
140
Public Works - Utility Division
Personnel Review
Salaries
Utility Superintendent
Utility Operator I
Utility Maintenance Worker
Utility Meter Maintenance Worker
Utilitv Maintenance Worker
Sickday Payback Incentive
Longevity Bonus
Part -Time (Seasonal)
Salary Adjustment
IMRF Retirement
FICA/Medicare
Health
Dental
Life Insurance
Uniform Allowance
Subtotal
Total
Public Works Department - Util
Personnel Schedule
2015/16 Budget 2016/17 Budget Change
Dollars Number of Dollars Number of Dollars Number of
Grade Budgeted Employees Budgeted Employees Budgeted Employees
12 82,170 1.00 84,431 1.00 2,261 0.00
U-E 141,448 2.00 144,276 2.00 2,828 0.00
U-C 111,780 2.00 117,952 2.00 6,172 0.00
U-C 0 0.00 0 0.00 0 0.00
U-C 175,361 3.00 246,754 4.00 71,393 1.00
35,000 35,000 0
1,768 1,835 67
0 0 0
0 10,000
10,626 14,836 4,210
558,153 8,00 655,084 9.00 86,931 1.00
75,351
42,699
158,981
1,029
20
552
3,150
281.782
839.935
87,086
50,114
182,225
999
7
621
3,750
324,802
979, 886
Note: E = Exempt; N = Non -Exempt; U = IUOE Local #150 Collective Bargaining Unit Position
11,735
7,415
23,244
30)
13)
69
600
43,020
129.951
141
FY16-17 Capital Development Fund Budget
FY16-17 Budget FY15-16 FY15-16
Budget Change Budget
8 month
Actual
Capital Development Fund
Revenues:
3200 Interest Earned 2,000 2,000 1,310
3630 Water Fees 80,000 80,000 76,925
3630 Sewer Fees 90,000 90,000 82,405
Total Revenues 172,000 172,000 160,640
Expenses:
9936 Utility Improvements Fund Transfer 1,195,910 1,195,910
Total Expenses 1,195,910 1 1,195,910
142
Capital Development Fund
Purpose
The purpose of the Capital Development Fund is to construct, expand and extend the water and
wastewater systems to accommodate new development and growth in the community through the
imposition of capital development fees on new residential and non-residential development.
Fund Highlights —>
Capital development fees are charged for new residential and non-residential development to ensure that
adequate funds are available to provide a safe and adequate water supply and distribution system and an
adequate wastewater treatment system in the City of McHenry. The impact of new development upon
the City's infrastructure requirements, particularly wastewater treatment plant capacity, water pumping
capacity, and water storage capacity, require the collection and accumulation of funds to provide a means
of financing costly improvements to water and wastewater treatment facilities when existing capacity is
exceeded. On each May 15` of each year, the residential and on -residential capital development fees are
adjusted by the percentage change in the Engineering News Record Construction Cost Index subject to a
review by the City Council.
Budget Summary
CAPITAL DEVELOPMENT FUND
BUDGET SUMMARY
8 month
2014/15 2015/16 2015116 2016/17 INCREASE
ACTUAL BUDGET ACTUAL BUDGET DECREASE)
EXPENDITURES
OTHER 0 $0 0 1,195,910 1,195,910
TOTAL 0 $0 0 1,195,910 1,195,910
2015/16 2015/16 2016/17 2011/12
AMOUNT PERCENTAGE AMOUNT PERCENTAGE
FUNDING SOURCE
INTEREST EARNINGS 2,000 1.6 2,000 1.2
CAPITAL DEVELOPMENT FEES 120,000 98.4 170,000 98.8
TOTAL 122,000 100.0 172,000 100.0
Budget Highlights
Revenues are increased slightly due to past trends.
Funds are budgeted to be transferred to the Utility Improvement Fund for the sewer force main
project.
143
FY16-17 Utility Improvements Fund Budget
FY16-17 Budget FY15-16 FY15-16
Budget Change Budget
8 month
Actual
Utility Improvements Funds
Revenues:
3760 Developer Contribution
32001nterest 2,585
3910 Bond/Note Proceeds
3965 Premium on Bonds Payable
3978 Transfer from W/S Fund 1,720,340 1,720,340
3971 Transfer Annexation Fund
3994 Transfer SSA #4 16,847 16,847 11,231
3981 Transfer from Capital Development 1,195,910 1,195,910
Total Revenues 2,933,097 2,916,250 16,847 13,816
Expenses:
8500 Capital - Utility Improvement Projects 1,362,1912
Total Expenses 1,362,192
144
Utility Improvements Fund
Purpose
The Utility Improvements Fund is an enterprise fund used to account for capital projects that improve or
expand the capacity of the Water and Wastewater utilities.
Fund Highlights—>
The Utility Improvements Fund was created to provide a single fund to record revenues and expenses for
capital constructions projects for the Water and Wastewater utilities. Transfers from the Water/Sewer and
Capital Development funds are the main sources of revenue for the fund. Expenses are restricted to
design engineering, construction, and construction engineering costs for the approved capital projects.
2015/16 Accomplishments
Final design engineering on the South Wastewater Treatment Plant (SWWTP) expansion and the
decommissioning of the Central Wastewater Treatment Plant (CWWTP) were finalized and continue to
include the new technology that will snake McHenry a leader in wastewater treatment. The bid letting for
the project was June 2°d, 2015, with a bid opening of July 20, 2015. Five (5) bids were received for the
project with Williams Brothers being the lowest bid at $30,180,000. On August 171h 2015 City Council
passed a motion to authorize the Mayor to sign a Notice of Intent to accept the bid and award the contract
to Williams Brothers Construction, pending IEPA approval. The City received the Illinois Environmental
Protection Agency (IEPA) construction permit on October 21", 2015. A pre -construction meeting was
held with city staff, Williams Brothers and H.R. Green on October 30th, 2015. The SRF Loan paperwork
arrived on November 51h, 2015. Williams Brothers started construction in December of 2015 with a
completion of 2017. In addition to the construction at the Wastewater Treatment Plants; the McHenry
Sanitary Sewer System Improvements Forcemain Extension which connects the CCWTP and the
SWWTP was designed. On February 23`d, 2016 three bids were received with Merryman Excavation
being the lowest bid at $2,916,249.50.
2016/17 Goals and Objectives
Continue construction of the expansion at the South Wastewater Treatment Plant and construction
of the Regional Pumping Station (RPS) at the Central Wastewater Treatment Plant
Prepare demolition design and bid specifications for the decommissioning of the Central
Wastewater Treatment Plant.
Construction of the McHenry Sanitary Sewer System Improvements Forcemain Extension
connecting the Central Wastewater Treatment Plant and the South Wastewater Treatment Plant.
145
Utility Improvements Fund
Budget Summary
EXPENDITURES
CAPITAL
UTILITY IMPROVEMENTS FUND
BUDGET SUMMARY
8 month
2014/15 2015/16 2015/16 2016/17 INCREASE
ACTUAL BUDGET ACTUAL BUDGET (DECREASE)
0 $0 $192,253 $0 $0
0 $0 $192,253 $0 $0
FUNDING SOURCE
DEVELOPER CONTRIBUTIONS
BOND PROCEEDS
INTERGOVERNMENTAL REVENUES
TRANSFER -ANNEXATION FUND
TRANSFER - WATER/SEWER FUND
TRANSFER - SSA #4
TRANSFER - CAPITAL DEVELOPMENT
TOTAL
2015/16 2015116 2016/17 2016/17
AMOUNT PERCENTAGE AMOUNT PERCENTAGE
0 0.0 0 0.0
0 0.0 0 0.0
0 0.0 0 0.0
0 0.0 0 0.0
0 0.0 1,720,340 0.0
16,847 100.0 16,847 0.6
0 0.0 1,195, 910 40.8
16,847 100.0 2,933,097 41.3
Budget Highlights
Actual expenditures in the fund are nominal because accounting standards require all water and
wastewater projects to be recorded as assets that are eventually expensed as depreciation in the
Water/Sewer Fund.
Water and Sewer Improvement Projects
Utility Improvements Fund
Recommended Projects
2016/17 Fiscal Year
Total
2016/17 Project
Forcemain WWTP Consolidation $2,916,250 $2,916,250
Consolidation of CWWTP/SWWTP $15,000,000 $29,000,000
Total $17,916,250 $31,916,250
146
FY16-17 Marina Fund Budget
FY16-17 Budget FY15-16 FY15-16
Budget Change Budget
8 month
Actual
Marina Fund
Revenues:
3210 Interest Earnings 1,500 1,500 487
3845 Rental Income 50,000 50,000 30,435
Total Revenue 51,500 51,500 30,922
Expenses:
5110 Contractual 20,000 20,000 3,094
6940 Administrative Expenses 26,000 26,000 24,982
Total Expenses 46,000 46,000 28,076
147
Marina Operations Fund
Purpose
The Marina Operations Fund is an enterprise fund that maintains a 60-slip marina on the Fox River.
Fund Highlights—>
The City acquired the marina in 2000 because, at the time, the site was needed to expand the Central
Wastewater Treatment Plant. After the property was acquired, it was determined that the wastewater
treatment plan facility could not be expanded in the existing location. The marina site will be developed
when the wastewater treatment plant is relocated.
Budget Summary
MARINA OPERATIONS FUND
BUDGET SUMMARY
8 month
2014/15 2015/16 2015/16 2016/17 INCREASE
ACTUAL BUDGET ACTUAL BUDGET (DECREASE)
EXPENDITURES
CONTRACTUAL $3,149 20,000 4,978 20,000 $0
OTHER 24,982 26,000 25,609 26,000 0
TOTAL $28,131 46,000 30,587 46,000 $0
2015/16 2015/16 2016/17 2016/17
AMOUNT PERCENTAGE AMOUNT PERCENTAGE
FUNDING SOURCE
RENTAL INCOME $50,000 97.1 50,000 97.1
INTEREST EARNINGS 1,500 2.9 1,500 2.9
TOTAL $51,500 100.0 51,500 100.0
Budget Highlights
No significant changes.
148
E N 077,
HEART OF THE FOX RIVER
INTERNAL SERVICE FUNDS
Employee Insurance Fund (600.00)
Risk Management Fund (610.00)
Information Technology Fund (620.00)
149
EMPLOYEE INSURANCE FUND (600)
2016/17 Budget 8 months
2016/17 2015/16 2015/16
Revenue Budget Difference Budget Actual
3210 Interest Earnings
3653 Elective Participant Premiums 166,889 33,666 133,223 92,432
3831 Employees Contribution 230,935 7,086 223,849 137,970
3975 Transfer - General Fund 2,281,987 191,094 2,090,893 1,324,784
3978 Transfer - Water/Sewer Fund 384,936 14,318 370,618 272,310
3999 Transfer - Other Funds 29,821 5,811) 35,632 16,270
Total Revenue 3,094,568 240,353 2,854,215 1,843,766
Expenditures
4310 Insurance Premiums - Health 2,848,087 243,117 2,604,970 1,887,461
4315 Insurance Premiums - Other
4320 Insurance Premiums - Dental 114,554 837) 115,391 81,873
4340 Insurance Premiums - Vision 12,683 357 12,326 6,909
5110 Contractual Services
5240 Claims
5245 Health HRA Reimbursement 112,000 112,000 32,408
6960 Miscellaneous Expense 5,000 5,000 1,470
Total Expenditures 3,092,324 242,637 2,849,687 2,010,121
150
Employee Insurance Fund
Purpose
The City of McHenry recognizes health insurance benefits are an important component of an employee's
total compensation package, therefore, the purpose of the employee insurance find is to finance and
account for expenditures incurred to provide health insurance benefits to the employees.
Fund Highlights —>
The current health insurance plan provided to employees offers a choice between a PPO (Preferred
Provider Organization) and HMO (Health Maintenance Organization). Providing employees a choice in
plan type allows employees some flexibility based on preference and affordability. In addition,
employees receive dental and vision benefits that provide participants similar coverage to that provided
under the previous self -insured health and dental plans. All Local 150 employees are required to be on
the Union Insurance as per their union contract, which is paid 100% by the city.
Budget Summary
EMPLOYEE INSURANCE FUND
BUDGET SUMMARY
8 month
2014115 2015/16 2015116 2016/17 INCREASE
ACTUAL BUDGET ACTUAL BUDGET DECREASE)
EXPENDITURES
INSURANCE PREMIUMS 2,491,603 2,732,687 1,976,243 2,975,324 242,637
CLAIMS 93,391 112,000 32,408 112,000 0
MISCELLANEOUS EXPENSE 4,420 5,000 1,470 5,000
TOTAL 2,589,414 2,849,687 2,010,121 3,092,324 242,637
2015/16 2015/16 2016/17 2016/17
AMOUNT PERCENTAGE AMOUNT PERCENTAGE
FUNDING SOURCE
PREMIUMS/CONTRIBUTIONS 357,072 12.5 397,824 12.9
TRANSFERS - EMPLOYER SHARE 2,497,143 87.5 2,696,744 87.1
TOTAL 2,854,215 100.0 3,094,568 100.0
Budget Highlights
Health and dental coverage is provided for approximately 94 existing employees and 13
individuals that are retirees or on disability. Approximately 36 employees represented by Local
150 are expected to elect to obtain coverage from their labor union, with the City paying for
100% of the coverage.
For the 2015/16 budget year the frilly insured premiums have increased on average by 9.3%.
Employee contributions have also been increased to help cover a portion of the large premium
increase.
The deficit that was in the Health Insurance Fund was completed eliminated as of the end of
FY12/13.
151
Risk Management Fund (610)
Budget Request
FY 2015/16
8 months
2015/16 2014/15 2014/15
Budget Difference Budget Actual
Revenues:
3200 Interest Earnings 200 200 98
3884 Reimb - Property Damage 43,223
3885 Property Damage Reimbursements 30,000 30,000
3970 Charges for Services 498,533
3975 Transfer from General Fund 538,284 40,021) 578,305
3978 Transfer from Water/Sewer Fund 152,600 8,550) 161,150
3999 Transfer from IT Fund 7,408 937) 8,345
3890 Misc. Income
Total Revenues 728,492 49,508) 778,000 541,854
Expenditures:
5950 Insurance Premium - MCMRMA 625,000 13,129 611,871 585,072
5960 Insurance Premium - Other 2,500 2,500 12,423
5980 Property Damage 50,000 50,000 17,637
6940 Administrative Expense 4,250 4,250 745
6960 Misc. Expense 500 500
9921 Purchase of Service - GF 20,386 301 20,085 13,390
Total Expenditures 702,636 13,430 689,206 629,267
152
Risk Management Fund
Purpose
The purpose of the Risk Management Fund is to account for all activity related to risk management and
insurance costs (other than employee health insurance) including loss control, loss prevention, risk
transfer, and risk assessment.
Fund Highlights-->
The City of McHenry is exposed to various risks related to torts; theft of, damage to, and the destruction
of assets; errors and omissions; injuries to employees; and natural disasters. The Insurance Fund funds
the risk management program which attempts to limit the exposure to these risks and reduce the
frequency and severity of losses.
The City is a member of the McHenry County Municipal Risk Management Agency (MCMRMA), a
public entity risk pool through which property, general liability, automobile liability, crime, excess
property, excess liability, and boiler and machinery coverage is provided.
The relationship between the City and MCMRMA is defined through a contractual obligation approved
by both the City Council and the MCMRMA executive board. The City is obligated to make all annual
and supplementary contributions for MCMRMA, report claims and losses on a timely basis, cooperate
with MCMRMA, claims adjusters and attorneys in claims investigation and settlement, and to follow risk
management procedures as outlined by MCMRMA. MCMRMA is obligated to administer the self-
insurance program as well as the purchased insurance program, provide risk management services
including the defense and settlement of claims, and provide a loss prevention program to identify and
reduce loss exposures.
Revenues for the fund are generated by service charges to the City's general fund and non -general fund
operating units. The service charges to the General Fund are provided for the most part by the liability
insurance portion of the property tax levy. Incidental revenues from interest earnings and reimbursements
from MCMRMA are also occasionally posted to the fund.
153
Risk ManaLyement Fund
Budget Summary
EXPENDITURES
CONTRACTUAL
OTHER
TOTAL
RISK MANAGEMENT FUND
BUDGET SUMMARY
8 months
2014/15 2015/16 2015/16 2016/17 INCREASE
ACTUAL BUDGET ACTUAL BUDGET DECREASE)
604,594 664,371 615,132 677,500 13,129
21,634 24,835 14,135 25,136 301
626,228 689,206 629,267 702,636 13,430
FUNDING SOURCE
INTEREST EARNINGS
PROPERTY DAMAGE REIMBURSEMENTS
PURCHASE OF SERVICE - GENERAL FUND
PURCHASE OF SERVICE -WATER/SEWER FUND
PURCHASE OF SERVICE - IT FUND
TOTAL
2015/16 2015/16 2016/17
AMOUNT PERCENTAGE AMOUNT
200 0.0 200
30,000 3.9 30,000
578,305 74.3 538,284
161,150 20.7 152,600
8,345 1.1 7,408
778,000 100.0 728,492
2016/17
PERCENTAGE
Budget Highlights
The budgeted amount for the insurance premium paid to MCMRMA increases slightly.
0.0
4.1
73.9
20.9
1.0
154
Information Technology Fund (620)
FY 2016/17 Budget
Line Item Sheet
8 month
Budget Budget Actual
Acct # 2016 17 Difference 2015 16 2015 16
4010 Salaries 140,201 3,517) 143,718 107,739
4090 Salary Adjustment 3,470 88) 3,558
4310 Health/Vision 26,450 6,114) 32,564 15,872
4320 Dental Insurance 1,059 235) 1,294 687
4330 Life Insurance 138 138 69
4340 Vision Insurance 125 3) 128 69
4410 FICA Medicare 10,991 276) 11,267 8,938
4420 IMRF Retirement 19,396 486) 19,882 15,605
4510 Uniform Allowance
Total Personnel 201,830 10,719) 212,549 148,979
5110 Contractual Services 146,115 16,734 129,381 53,716
5320 Telephone 2,500 2,500 1,049
5410 Dues 500 100) 600 500
5420 Travel 700 375 325 430
5430 Training 5,900 5,900
5440 Tuition Reimbursement
5450 Publications
Total Contractual 155,715 22,909 132,806 55,695
6110 Materials and Supplies 43,634 30,634 13,000 4,183
6210 Office Supplies 15,100 4,100) 19,200 9,247
6270 Small Equipment 42,100 11,900 30,200 17,791
Total Supplies 100,834 38,434 62,400 31,221
8300 Capital - Equipment 49,930
Total Capital 49,930
9920 Risk Management 7,408 937) 8,345 5,563
9510 Depreciation Expense 50,000 5,000 45,000
Total Other 57,408 4,063 53,345 5,563
Total 515,787 54,687 461,100 291,388
155
Information Technology Fund
Mission Statement
The mission of the Information Technology Department is to provide the most innovative, highest quality
technology -based services, in a cost-effective manner, and to facilitate the achievement of goals and
objectives of each of the City's departments.
Primary Functions -> The primary functions of the Information Technology staff include the following:
Provide effective technology support for computer systems, web -based applications, voice,
video, and integrated data services to all City departments.
Promote and facilitate the integration of technology to effectively meet the overall mission of
the City using collaborative efforts through planning, training, and consulting with all
departments and service providers.
Develop, enhance, and manage the City's enterprise network to provide high speed,
transparent, and highly functional connectivity to all resources.
Develop and maintain highly effective, reliable, secure, and innovative information systems
to support each department's functions.
Facilitate the collection, storage, security, and integrity of electronic data while ensuring
appropriate access
Promote new uses of technology within the organization.
2015/16 Accomplishments
Replaced Virtual Machine Host Servers and Attached Cluster Storage
Successfully completed installation of new Host Servers and Cluster Storage. All virtual servers
have been moved to the new system and the old servers and storage have been retired.
Replacement of workstations (PCs)
Every year we replace a portion of our PCs. We have over 100 PCs that we maintain. This year
we replaced 12 PC's with new ones and repurposed 6 of the replacements for further use. The rest
of the replaced PC's will be repurposed as needed or used as spares.
Installation of infrastructure for Municipal Recreation Center
Directional boring has been completed. Installation of TV, phone, computer cabling, fiber optic
cable, security cameras, door locks, data switches, and equipment racks will be in place by the
end of year 2015 or early 2016. Sufficient computers are available in the Parks and IT
departments to equip the new facility. Implemented installations to provide complete wireless
coverage in the Municipal Recreation Center to provide both a guest and employee network.
Public Works Upgrades
Changed microwave vendor and installed new equipment, which has eliminated ongoing
communication problems with Public Works. Backup server at Public Works is functioning
properly now. Installed security cameras. Implemented installations to provide complete wireless
coverage in the Public Works Building to provide both a guest and employee network.
City Hall Upgrades
Configured existing wireless network to complete wireless coverage in the City Hall Building to
provide both a guest and employee network. Rewired network switches so that each network
switch now connects directly to the main switch in the upstairs Server Room. This alleviated
some network latency issues.
Website
We are in the process of creating a new Website designed by GovOffice. They will also be
hosting our new website.
New Video Surveillance Storage Unit
Purchased new NAS (Network Area Storage) in order to replace the current storage unit that has
reached its end of life.
156
Information Technology Fund
2016/17 Goals and Objectives
Upgrade Microsoft Office and Client Licensing
This will allow the City of McHenry to utilize the latest versions of Microsoft Office and to allow
us to upgrade our Server Operating Systems.
Extend Current Network
Extend our current in-house network, which includes City Hall and Public Works, to include the
Parks Garage and South Wastewater Plant.
Install and Create a functioning Microsoft SharePoint Environment
This will provide the City and Police employees with an Intranet.
Server Upgrades
Upgrade our Server environment by replacing some old physical servers and converting others to
our Virtual Environment.
Computer Upgrades
Replace approximately 1/3 of our current desktop computers and establish a 5 years hardware
refresh rate thereafter.
Network Upgrades
Install a network monitoring system that will allow the IT Staff to take a more pro -active
approach on troubleshooting. This will provide a single system to monitor the network. Replace
current network switches in order to provide power to our new telephone system and to also
improve network reliability.
Budget Summary
INFORMATION TECHNOLOGY FUND
BUDGET SUMMARY
8 month
2014/15 2015/16 2015/16 2016/17 INCREASE
ACTUAL BUDGET ACTUAL BUDGET DECREASE)
EXPENDITURES
PERSONNEL 218,958 212,549 218,958 201,830 10,719)
CONTRACTUAL 89,014 132,806 89,014 155,715 22,909
SUPPLIES 55,022 62,400 55,022 100,834 38,434
CAPITAL EXPENDITURES 0 0 0 0 0
OTHER 46,638 53,345 46,638 57,408 4,063
TOTAL 409,632 461,100 409,632 515,787 50,624
INCREASE
PERSONNEL AUTHORIZATION 2013/14 2014/15 2015/16 2016/17 DECREASE)
TOTAL 2.00 2.00 2.00 2.00 0.00
2015/16 2015/16 2016/17 2016/17
AMOUNT PERCENTAGE AMOUNT PERCENTAGE
FUNDING SOURCE
PURCHASE SERVICE - GENERAL FUND 434,144 94.2 487,414 94.5
PURCHASE SERVICE - WATER/SEWER 26,957 5.8 28,373 5.5
TOTAL 461,101 100.0 515,787 100.0
157
Information Technology Fund
Budget Highlights
Personnel costs decrease due to restructuring the department.
Contractual services increase $22,909 due to increased backup internet service and Comcast
costs.
Supplies expenses increase 38,434 due to increased Microsoft licensing costs.
Other expenses increase due to depreciation expenses which are directly related to the purchase of
capital.
Fixed Assets
The telephone system is budgeted to be upgraded in the amount of $74,800 for FYI 6/17.
Personnel Review
Information Technology Fund
Personnel Schedule
2015/16 Budget 2016117 Budget Change
Dollars Number of Dollars Number of Dollars Number of
Salaries Grade Budgeted Employees Budgeted Employees Budgeted Employees
IT Specialist 7 142,318 2.00 138,801 2.00 3,517) 0.00
Sickday Buyback Incentive 1,400 1,400 0
Salary Adjustment 3,558 3,470 88)
Longevity Bonus 0 0 0
Total 147,276 2.00 143,671 2.00 3,605) 0.00
Benefits
IMRF Retirement 19,882 19,396 486)
FICA/Medicare 11,267 10,991 276)
Health Vision 32,692 26,575 6,117)
Dental 1,294 1,059 235)
Life Insurance 138 138 0
Uniform Allowance 0 0 0
Subtotal 65,273 58,159 7,114)
Total 212,549 201,830 10,719)
158
iISAMMOT", 3A
HEART OF THE FOX RIVERY
FIDUCIARY FUNDS
Employee Flexible Spending Fund (700.00)
Developmental Escrow Fund (720.00)
Retained Personnel Fund (740.00)
Police Pension Fund (760.00)
159
Employee Flexible Spending Fund (700)
Budget Request 8 months
FY 2016-17 2016/17 2015/16 2015/16
Budget Difference Budget Actual
Revenues:
3200 Interest Earned
3831 Participant Contributions 85,000 5,000 80,000 60,018
3882 Reimb - Misc 1,058
Total Revenues 85,000 5,000 80,000 61,076
Expenditures:
6940 Administrative Expenses 5,000 5,000 1,920
6965 Medical Reimbursements 80,000 5,000 75,000 27,108
Total Expenditures 85,000 5,000 80,000 29,028
160
Employee Flexible Spending Fund
Purpose
It is the mission of the Employee Flexible Spending Fund (Flex Fund) to account for employee pre-tax
medical spending accounts that are offered as a benefit to City employees.
Fund Highlights —>
Under Internal Revenue Service (IRS) rules and regulations, employees can set aside money for certain
medical benefits on a pre-tax basis. These benefits include medical expenses not covered under the
employee's health insurance plan. When allowable medical costs are paid by the employee, he or she can
get reimbursed from his flexible spending account. Depending on the tax bracket of the employee and the
extent of utilization, an employee could potentially save several hundred dollars through medical and
dependent care flexible spending deductions.
Budget Summary
EMPLOYEE FLEXIBLE SPENDING HEALTH FUND
BUDGET SUMMARY
8 months
2014/15 2015/16 2015/16 2016/17 INCREASE
ACTUAL BUDGET ACTUAL BUDGET DECREASE)
EXPENDITURES
OTHER 89, 231 80, 000 29, 028 85, 000 5, 000
TOTAL 89, 231 80, 000 29, 028 85, 000 5, 000
2015/16 2015/16 2016/17 2016/17
AMOUNT PERCENTAGE AMOUNT PERCENTAGE
FUNDING SOURCE
INTEREST EARNINGS 0 0.0 0 0.0
PARTICIPANT CONTRIBUTIONS 80,000 100.0 85,000 100.0
TOTAL 80,000 100.0 85,000 100.0
Budget Highlights
No significant changes.
161
Development Escrow Fund (720)
Budget Request 8 months
FY 2016-17 2016/17 2015/16 2015/16
Budget Difference Budget Actual
Revenues:
3200 Interest Earned 500 500 206
3760 Received From Developers
Total Revenues 500 500 206
Expenditures:
6961 Miscellaneous Refunds
9901 Transfer to General Fund
9999 Revenue/Exp Closing
9942 Transfer to Capital Imp Fund
TotalExpenditures 162
Developmental Escrow Fund
Purpose
The purpose of the Development Escrow Fund is to segregate developer funds held by the City to ensure
the completion of specific public improvements such as sidewalks and traffic signals.
Fund Highlights
The Developmental Escrow Fund is a fiduciary fund used to account for assets held by the City in a
trustee capacity or as an agent for individuals, private organizations, other governments or funds. The
Developmental Escrow Fund holds funds deposited by developers until such time as certain
improvements are completed or in lieu of developer provided improvements. These funds are custodial in
nature and do not involve measurement of the results of operations.
Budget Summary
DEVELOPMENTAL ESCROW FUND
BUDGET SUMMARY
8 months
2014/15 2015/16 2015/16 2016/17 INCREASE
ACTUAL BUDGET ACTUAL BUDGET DECREASE)
EXPENDITURES
OTHER 0 0 0 0 0
CAPITAL 0 0 0 0 0
TOTAL 0 0 0 0 0
2015/16 2015/16 2016/17 2016/17
AMOUNT PERCENTAGE AMOUNT PERCENTAGE
FUNDING SOURCE
INTEREST EARNINGS 500 100.0 500 100.0
DEVELOPER DEPOSITS 0 0.0 0 0.0
TOTAL 500 100.0 500 100.0
Budget Highlights
No significant changes.
163
Retained Personnel Fund (740)
Budget Request 8 months
FY 2016-17 2016/17 2015/16 2015/16
Budget Difference Budget Actual
Revenues:
3210 Interest Earnings
3710 Engineering Inspection Fees - Public Works
3730 Engineering Inspection Fees - Consultant 50,000 30,000 20,000 48,890
3735 Legal Fees - Developers 15,000 5,000 10,000 12,045
3740 Developer Misc Fees 8,000 8,000 4,148
3750 Refunds - Developer 2,000 2,000
Total Revenues 75,000 35,000 40,000 65,083
Expenditures:
5220 Engineering Fees - Corporate 50,000 30,000 20,000 48,684
5221 Engineering Fees - Public Works
5230 Legal Fees - Corporate 15,000 5,000 10,000 11,683
6960 Misc Fees 8,000 8,000 3,997
6961 Miscellaneous Refunds 2,000 2,000 1 -
Total Expenditures 75,000 35,000 40,000 1 64,364
164
Retained Personnel Fund
Purpose
The Retained Personnel Fund is used to account funds collected as reimbursement and expended for
professional and technical services used to assist or advise the City in connection with land development.
Fund Highlights
The City's retained personnel costs include any engineering, attorney, planner, economist, or other
technical profession retained to assist in connection with annexations, planning and zoning, and other
development matters. The City typically collects a deposit from property owners at the initiation of
annexation, zoning, or other development proceedings that approximate the total retained personnel costs
expected to be incurred.
Budget Summary
EXPENDITURES
CONTRACTUAL
OTHER
FUNDING SOURCE
INTEREST EARNINGS
FEES
TOTAL
Budget Highlights
RETAINED PERSONNEL FUND
BUDGET SUMMARY
2014/15 2015116
ACTUAL BUDGET
81,886 $30,000
6,926 10,000
88.812 $40.000
8 months
2015/16 2016/17 INCREASE
ACTUAL BUDGET DECREASE)
60,367 65,000 35,000
3,997 10,000 0
64, 364 75, 000 35, 000
2015/16 2015/16 2016/17 2016/17
AMOUNT PERCENTAGE AMOUNT PERCENTAGE
0 0.0 $0 0.0
40,000 100.0 75,000 100.0
40,000 100.0 $75,000 100.0
Revenue and expense budgets were increased to better reflect actual spending.
165
Revolving Loan Fund (750)
Budget Request 8 months
FY 2016-17 2016/17 2015/16 2015/16
Budget Difference Budget Actual
Revenues:
3210 Interest Earned 50 50 8
Loan Principal
Loan Interest 1,500 1,500 410
Total Revenues 1,550 1,550 418
Expenditures:
9110 Approved Loans to Eligible Participants
Total Expenditures
166
Revolving Loan Fund
Purpose
The purpose of the Revolving Loan Fund is to account for activity in the Revolving Loan Program, a low
interest loan program for businesses and industry with the goal of job creation.
Fund Highlights
The Revolving Loan Program provides low interest loans to qualified existing and prospective businesses
within the City of McHenry. The loan proceeds can be used to assist in the startup of a new business,
expand an existing business, update existing facilities to make the business more competitive, or provide
an incentive for established businesses to relocate to the City. The primary goal of the program is job
creation and expansion of the sales tax and property tax base.
The program requires loan applicants to complete a formal application, which is reviewed by the
McHenry Revolving Loan Fund Review Committee. The committee, consisting of the Mayor and the
Finance Committee of the McHenry City Council, reviews loan applications, meets with the applicant and
a representative of the participating lending institution, visits the site if necessary, negotiates terms, length
and security of loans, and evaluates requests with regard to compliance with the Revolving Loan Fund
Program goals and objectives.
Budget Summary
REVOLVING LOAN FUND
BUDGET SUMMARY
8 months
2014115 2015/16 2015/16 2016/17 INCREASE
ACTUAL BUDGET ACTUAL BUDGET DECREASE)
EXPENDITURES
OTHER 0 $0 0 0 0
TOTAL 0 $0 0 0 0
2015/16 2015/16 2016/17 2016/17
AMOUNT PERCENTAGE AMOUNT PERCENTAGE
FUNDING SOURCE
INTEREST EARNINGS 50 3.2 50 2.4
LOAN PAYMENTS 1,500 96.8 2,000 97.6
TOTAL 1,550 100.0 2,050 100.0
Budget Highlights
No significant changes.
167
Police Pension Fund (760)
Budget Request
FY 2016-17
8 months
2016/17 2015/16 2015/16
Budget Difference Budget Actual
Revenues:
3110 Replacement Tax
3830 Employer Contributions 1,524,244 136,870 1,387,374 1,386,205
3200 Investment Earnings 750,000 270,000 480,000 26
3831 Employee Contributions 390,000 390,000 266,725
3836 Gain/Loss Sale
3837 Unrealized Gain/Loss
3838 Amortizatoin Expense
3882 Reimb - Misc
Total Revenues 2,664,244 406,870 2,257,374 1,652,956
Expenditures:
4910 Pension Payments 1,411,040 28,431) 1,439,471 922,302
4920 Disability Payments 231,214 2,729 228,485 151,717
4930 Death Benefit Payments 184,000 68,394 115,606 105,212
4940 Non -Duty Disability Payments 17,512 17,512 11,675
4990 Reimbursement to Employees
5110 Contractual 45,000 45,000 34,752
5410 Dues 2,000 2,000 400
6940 Administration Expense
9923 Purch Service - Audit Fund 3,570 70 3,500 2,333
Total Expenditures 1,894,336 42,762 1,851,574 1,228,391
168
Police Pension Fund
Purpose
The purpose of the Police Pension Fund is to provide retirement benefits for retired police officers and
their beneficiaries through employer and employee contributions and investment earnings.
Fund Highlights->
The primary function of this non -operating budgetary unit is to finance pensions for employees by both
employer and employee contributions combined with interest earnings on those contributions. These
three revenue streams, if based on sound actuarial assumptions, should generate sufficient finds for
employee retirement without placing undue burden on the employer or a risk to the pension due the
employee.
The Police Pension plan is administered by a board of trustees. The duties of the board are to control and
manage the pension fund, to enforce the collection of contributions, to hear and determine applications for
pensions, to authorize payment of pensions, and to invest funds. Accounting and secretarial services are
provided by the City at no cost to the plan. Financial planning and investment management are provided
by outside vendors.
The City's pension plan is a defined benefit plan meaning that regardless of investment performance, the
plan is obligated to pay the defined benefit. If the pension plan makes unwise investment decisions, the
City is currently obligated to guarantee the pension obligations. However, as of the year 2033, the
pension plan will be self-supporting with no further obligations placed on the City.
The City utilizes an independent actuarial study to annually determine the necessary funding for the
pension program. The City will continue to fund the plans based upon the recommendations of the
actuary. As of May 1, 2015, the date of the last completed Actuarial Valuation Report, the plan had 77
participants. Active police officer participants totaled 45 with an additional 21 retiree participants, 6
disabled participants and 3 surviving spouses and 2 terminated vested participant.
Budget Summary
POLICE PENSION FUND
BUDGET SUMMARY
8 months
2014/15 2015/16 2015116 2016/17 INCREASE
ACTUAL BUDGET ACTUAL BUDGET DECREASE)
EXPENDITURES
CONTRACTUAL 33,421 47,000 37,485 47,000 0
OTHER 1,872,180 1,804,574 1,190,906 1,847,336 42,762
TOTAL 1,905,601 1,851,574 1,228,391 1,894,336 42,762
2015/16 2015/16 2016/17 2016/17
AMOUNT PERCENTAGE AMOUNT PERCENTAGE
FUNDING SOURCE
PROPERTY TAX
INVESTMENT EARNINGS 480,000 21.3 750,000 28.2
EMPLOYER CONTRIBUTIONS 1,387,374 61.5 1,524,244 57.2
EMPLOYEE CONTRIBUTIONS 390,000 17.3 390,000 14.6
TOTAL 2,257,374 100.0 2,664,244 100.0
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Police Pension Fund
Budget Highlights
Many of the pensioners are entitled to a 3% wage increase effective January I" of every year.
Employee contributions are directly related to the police department's wages, so the amount of
contributions grows with wage increases.
Employer contributions are funded by property taxes and are reflected by the 2015 levy.
As of April 30, 2015 the funding percentage for the Police Pension Fund is at 52.9%, which is
0.4% higher than last year.
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M Ak
HEART OF THE FOX RIVER
SUPPLEMENTAL INFORMATION
Financial Policies
Fund Balance and Reserve Policy
Capital Improvement Program Financial Policy
Investment Policy
Community Profile
Glossary of Terms
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SUDDlemental Information
Financial Policies
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.
Operating Budget and Expense Policies
1. The city shall annually adopt a balanced
budget where operating revenues are
equal to, or exceed, operating
expenditures in each fund.
2. Beginning fund balance should only be
appropriated to the extent it supports
non -recurring expenditures, replaces
temporary declines in revenue, or is
reasonably anticipated to be offset by an
increase in revenue.
3. As part of the annual budget review
process, the City will project General
Fund revenues and expenditures for four
years beyond the budget year and
compare the projected balances to the
fund balance policy. This will allow the
City to identify potential problems early
enough to correct them.
4. The City Council shall be provided
monthly actual revenues and
expenditures for all funds. Any
departments or divisions projected to
exceed their annual spending authority
for the year shall work with the City
Administrator to reduce expenses. This
may include a deferral of hiring and
major expenses for goods and services.
Revenue Policies
1. The City shall maintain a diversified and
stable revenue system to the extent
provided by law to insulate it from short-
term fluctuations in any one revenue
source.
2. The City will not budget one-time
revenue sources to fund annual operating
expenditures. Such revenues will fund
non -recurring activities, such as capital
projects and major capital equipment
purchases.
3. Grant revenues shall be pursued to
provide or enhance City services.
However, recurring activities shall be
initiated with grant funds only if the
activity can be terminated in the event
grant funds are discontinued or the
activity should and can be funded within
recurring City revenues.
4. All non -enterprise user fees and charges
will be examined annually to determine
the direct and indirect cost of service
recovery rate. The acceptable recovery
rate and any associated changes to user
fees and charges will be approved by the
City Council.
5. The City will set fees and user charges
for the Water and Sewer funds at a level
that fully supports the total direct and
indirect costs of the activity. Indirect
costs include the replacement of the
capital assets of the fund.
Debt Management Policies
1. The City limits long-term debt to only
those capital improvements that cannot
be financed from current revenues and
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Supplemental Information
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.
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Supplemental Information
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:
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Supplemental Information
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.
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
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Supplemental Information
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.
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
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Supplemental Information
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 a city -
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.
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 facilitates 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.
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Supplemental Information
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)
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.
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Supplemental Information
Revenues reported within any given special revenue fund are
considered "Committed" by the City Council in accordance
with GASB Statement 54 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).
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
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Supplemental Information
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 considered for the funding of one-
time, nonrecurring expenditures, assigned for future capital activities or used
for the funding of other long-term obligations.
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.
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Supplemental Information
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.
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Supplemental Information
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.
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 City's 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.
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Supplemental Information
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.
o Police Pension Fund — Fund balance targets will be determined through the
Police Pension Board and the annual actuarial analysis.
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Supplemental Information
Capital Improvement Program Financial Policy
The Capital Improvements Program (CIP) plan shall identify projects, their costs and
the revenue sources and amounts needed to finance them.
2. The first year of the CIP program effectively becomes the capital projects budget
within the operating budget for the year subject to the availability of adequate funds in
the operating budget. Approval of the CIP does not guarantee that funds will be
appropriated for the projects included in the first year of the CIP.
3. For General Obligation Debt, the City will maintain a debt to assessed value ratio that
is 25% more stringent than the state debt limit (State limit is 8.625% of EAV;
proposed limit would reduce to this ceiling to approximately 6.5% of EAV or $25.5
million outstanding).
4. Bonds issued to finance capital projects shall be structured to coincide as closely as
feasibly possible to the useful life of the project. By equitably distributing the costs of
the project over time, those citizens actually benefiting from the project will share in
the cost. In no instance shall the maturity exceed the useful life of the project.
5. The City will not use long-term debt for current operations.
6. Where feasible, the City shall investigate the use of all sources of revenue available
before using local property tax funds for capital projects.
7. Where feasible, the City will pursue project financing mechanisms - such as special
service areas, special assessments or other mechanisms - that target citizens receiving
a disproportionate share of the project benefit.
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Supplemental Information
Investment Policy
I. Policy
It is the policy of the City of McHenry to invest public funds in a manner which will
provide the highest investment return with the maximum security while meeting the
daily cash flow demands of the City and conforming to all state and local statutes
governing the investment of public funds.
II. Scope
This policy includes all funds governed by the Mayor and Council ("City Council").
III. General Objectives
The primary objectives, in priority order, of investment activities shall be safety,
liquidity, and yield:
A. Safety. Safety of principal is the foremost objective of the investment
program. Investments shall be undertaken in a manner that seeks to ensure the
preservation of capital in the overall portfolio. The objective will be to
mitigate credit risk and interest rate risk.
1. Credit Risk. The City will minimize credit risk, the risk of loss due to
the failure of the security issuer or backer, by:
a) Limiting investments to the safest types of securities.
b) Pre -qualifying the financial institutions, brokers/dealers,
intermediaries, and advisers with which the City will do
business.
c) Diversifying the investment portfolio so that potential losses on
individual securities will be minimized.
2. Interest Rate Risk. The City will minimize the risk that the market
value of securities in the portfolio will fall due to changes in general
interest rates, by:
a) Structuring the investment portfolio so that securities mature to
meet cash requirements for ongoing operations, thereby
avoiding the need to sell securities on the open market prior to
maturity.
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Supplemental Information
b) Investing operating funds primarily in shorter -term securities,
money market mutual funds, or similar investment pools.
B. Liquidity. The investment portfolio shall remain sufficiently liquid to meet all
operating requirements that may be reasonably anticipated. This is
accomplished by structuring the portfolio so that securities mature concurrent
with cash needs to meet anticipated demands (static liquidity). Furthermore,
since all possible cash demands cannot be anticipated, the portfolio should
consist largely of securities with active secondary or resale markets (dynamic
liquidity). A portion of the portfolio also may be placed in money market
mutual funds or local government investment pools which offer same -day
liquidity for short-term funds.
C. Yield. The investment portfolio shall be designed with the objective of
attaining a market rate of return throughout budgetary and economic cycles,
taking into account the investment constraints and liquidity needs. Return on
investment is of secondary importance compared to the safety and liquidity
objectives described above. The core of investments are limited to relatively
low risk securities as identified in this policy in anticipation of earning a fair
return relative to the risk being assumed. Securities shall not be sold prior to
maturity with the following exceptions:
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.
IV. Prudence
The standard of prudence to be used by investment officials shall be the "prudent
person" standard and shall be applied in the context of managing an overall portfolio.
Investment officers acting in accordance with written procedures and this investment
policy and exercising due diligence shall be relieved of personal responsibility for an
individual security's credit risk or market price changes, provided deviations from
expectations are reported in a timely fashion and the liquidity and the sale of the
securities are carried out in accordance with the terms of this policy.
Investments shall be made with judgment and care, under circumstances then
prevailing, which persons of prudence, discretion and intelligence exercise in the
management of their own affairs, not for speculation, but for investment, considering
the probable safety of their capital as well as the probable income to be derived.
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Supplemental Information
V. Ethics and Conflicts of Interest
Officers and employees involved in the investment process shall refrain from personal
business activity that could conflict with the proper execution and management of the
investment program, or that could impair their ability to make impartial decisions.
Employees and investment officials shall disclose any material interests in financial
institutions with which they conduct business. They shall further disclose any
personal financial/investment positions that could be related to the performance of the
investment portfolio. Employees and officers shall refrain from undertaking personal
investment transactions with the same individual with whom business is conducted on
behalf of the City.
VI. Delegation of Authority
Authority to manage the investment program is granted to the City Treasurer or his
designee, hereinafter referred to as Investment Officer. Responsibility for the
operation of the investment program is hereby delegated to the Investment Officer,
who shall act in accordance with established procedures and internal controls for the
operation of the investment program consistent with this investment policy.
Procedures should include references to: safekeeping, delivery vs. payment,
investment accounting, repurchase agreements, wire transfer agreements, and
collateral/depository agreements. No person may engage in an investment transaction
except as provided under the terms of this policy and the procedures established by the
Investment Officer. The Investment Officer shall be responsible for all transactions
undertaken and shall establish a system of controls to regulate the activities of
subordinate officials.
VII. Authorized Financial Dealers and Institutions
A list will be maintained of financial institutions authorized to provide investment
services. In addition, a list also will be maintained of approved security broker/dealers
selected by creditworthiness (e.g., a minimum capital requirement of $10,000,000 and
at least five years of operation). These may include "primary" dealers or regional
dealers that qualify under Securities and Exchange Commission (SEC) Rule 150-1
uniform net capital rule).
All financial institutions and broker/dealers who desire to become qualified for
investment transactions must supply the following as appropriate:
A. Audited financial statements.
B. Proof of National Association of Securities Dealers (NASD) certification.
C. Proof of state registration.
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Supplemental Information
D. Completed broker/dealer questionnaire.
E. Certification of having read and understood and agreeing to comply with the
City's investment policy.
An annual review of the financial condition and registration of qualified financial
institutions and broker/dealers will be conducted by the Investment Officer.
VIII. Suitable and Authorized Investments
The City may invest in any investment allowed for in the Illinois statutes regarding
investment of pubic funds including but not limited to the following:
A. U.S. government obligations, U.S. government agency obligations, and U.S.
government instrumentality obligations, which have a liquid market with a
readily determinable market value.
B. Canadian government obligations (payable in local currency).
C. Certificates of deposit and other evidences of deposit at financial institutions,
bankers' acceptances, and commercial paper, rated in the highest tier (e.g., A-
1, P-1, F-1, or D-1 or higher) by a nationally recognized rating agency.
D. Investment -grade obligations of state, provincial and local governments and
public authorities.
E. Repurchase agreements only if the underlying purchased securities consist of
government securities which are subject to the Government Securities Act of
1986 or as authorized in 30 ILCS 235/2(h)(1)-(l1).
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.
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SuDDlemental Information
X. Safekeeping and Custody
All security transactions, including collateral for repurchase agreements, entered into
by the City, shall be conducted on a delivery -versus -payment (DVP) basis. Securities
will be held by an independent third party custodian designated by the Investment
Officer and evidenced by safekeeping receipts and a written custodial agreement.
XI. Diversification
The investments shall be diversified by:
A. Limiting investments to avoid over concentration in securities from a specific
issuer or business sector (excluding U.S. Treasury securities).
B. Limiting investment in securities that have higher credit risks.
C. Investing in securities with varying maturities.
D. Continuously investing a portion of the portfolio in readily available funds
such as local government investment pools (LGIPs), money market funds or
overnight repurchase agreements to ensure that appropriate liquidity is
maintained in order to meet ongoing obligations.
XII. Maximum Maturities
To the extent possible, the City shall attempt to match its investments with anticipated
cash flow requirements. Unless matched to a specific cash flow, the City will not
directly invest in securities maturing more than two years from the date of purchase or
in accordance with state and local statutes and ordinances.
Reserve funds may be invested in securities exceeding two years if maturity of such
investments are made to coincide as nearly as practicable with the expected use of the
funds. The intent to invest in securities with longer maturities shall be disclosed to the
corporate authorities.
XIII. Internal Controls
The Investment Officer is responsible for establishing and maintaining an internal
control structure designed to ensure that the assets of the City are protected from loss,
theft or misuse. The internal control structure shall be designed to provide reasonable
assurance that these objectives are met. The concept of reasonable assurance
recognizes that (1) the cost of a control should not exceed the benefits likely to be
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derived and (2) the valuation of costs and benefits requires estimates and judgments by
management.
Accordingly, the Investment Officer shall establish a process for an annual
independent review by an external auditor to assure compliance with policies and
procedures. The internal controls shall address the following points:
A. Control of collusion.
B. Separation of transaction authority from accounting and recordkeeping.
C. Custodial safekeeping.
D. Avoidance of physical delivery securities.
E. Clear delegation of authority to subordinate staff members.
F. Written confirmation of transactions for investments and wire transfers.
G. Development of a wire transfer agreement with the lead bank and third -party
custodian.
XIV. Performance Standards
The investment portfolio will be managed in accordance with the parameters specified
within this policy. The portfolio should obtain a market average rate of return during
a market/economic environment of stable interest rates. A series of appropriate
benchmarks shall be established against which portfolio performance shall be
compared on a regular basis.
XV. Reporting
The Investment Officer, or his designee, shall prepare an investment report at least
quarterly, including a management summary that provides an analysis of the status of
the current investment portfolio and transactions made over the last quarter. This
management summary will be prepared in a manner which will allow the City to
ascertain whether investment activities during the reporting period have conformed to
the investment policy. The report should be provided to the Investment Officer, the
legislative body, and any pool participants. The report will include the following:
A. Listing of individual securities held at the end of the reporting period.
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B. Realized and unrealized gains or losses resulting from appreciation or
depreciation by listing the cost and market value of securities over one-year
duration that are not intended to be held until maturity.
C. Average weighted yield to maturity of portfolio on investments as compared to
applicable benchmarks.
D. Listing of investment by maturity date.
E. Percentage of the total portfolio which each type of investment represents.
XVI. Marking to Market
A statement of the market value of the portfolio shall be issued to the Mayor and City
Council quarterly.
XVII. Exemption
Any investment currently held that does not meet the guidelines of this policy shall be
exempted from the requirement of this policy. At maturity or liquidation, such monies
shall be reinvested only as provided by this policy.
XVIII. Amendments
This policy shall be reviewed on an annual basis. The Investment Officer may
implement changes in the investment policy after gaining approval from the Mayor
and City Council for the amendments. Any and all amendments to the investment
policy shall be provided to the individual(s) charged with maintaining internal
controls.
XIX. Investment Policy Adoption
The investment policy shall be adopted by the Mayor and City Council. The policy
shall be reviewed on an annual basis by the Investment Officer and any modifications
made thereto must be presented to the Mayor and City Council for approval.
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Community Profile
The City of McHenry was first settled in 1836, incorporated as a village in 1872 and as a city
in 1923. It is comprised of approximately 40 square miles and is located in eastern McHenry
County along the Fox River. The City is located at the entrance of the Chain O'Lakes water
way along the Fox River and as such has gained popularity as the "Gateway to the Chain
O'Lakes". The Chain O'Lakes region is a series of nine interconnected lakes extending from
Wisconsin south to McHenry and the adjoining state parks and conservation areas. The Chain
O'Lakes is reported to be the second most popular boating and outdoor recreational area in the
United States. Municipal boundaries incorporate water frontage along the Fox River,
McCullom Lake and Boone Lagoon. The City is located approximately 50 miles northwest of
Chicago's Loop, 15 miles south of the Wisconsin State Line and is directly west of Moraine
Hills State Park.
The City's 2008 equalized assessed valuation shows approximately 70% of the assessed
valuation as residential community; 29% as commercial and industrial; and 1% railroad, farm
and mining. The City's population increased over 32% in the ten-year period from 1990 to
2000, from 16,177 to 21,501 persons. Based on the 2010 Census the City has a population of
26,992.
Government Structure
The City is a home rule community and operates under a Mayor/City Council form of
government. The seven members of the City Council are elected from seven wards for
staggered four-year terms. The Mayor and City Clerk are also elected at large and also serve
four-year terms of office. The City Council appoints numerous City officials, including a City
Administrator, a City Attorney, a City Engineer, a Police Chief, and Directors of Finance,
Public Works, Parks and Recreation, and Community and Economic Development. The day-
to-day operations of the City are the responsibility of the City Administrator.
Transportation
The City offers convenient access to two state routes, Illinois State Route 120 is east/west and
Route 31 is north/south. Illinois Route 120 provides five lanes between Illinois State Route 31
and Martin Road. The Northwest Tollway (Interstate 90) is accessible approximately twenty
miles south of the City, and Interstate 94 is accessible approximately twenty miles east of the
City. Chicago's O'Hare Airport is located approximately 40 miles southeast of the City.
METRA's Chicago and Northwestern rail line serves City commuters between Chicago and
Harvard, Illinois, with regular stops at its stations in nearby Cary, Crystal Lake and
Woodstock. METRA also provides stops in its McHenry station. Bus service is available to
City residents through the PACE suburban bus system. Senior transportation services are
available through Pace and through McHenry Township.
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Education
Public School District Numbers 15 and 156 serve the majority of City residents. Community
High School District Number 156 has two high school buildings and an enrollment of
approximately 2,200 students. Community Consolidated School District Number 15 has eight
school buildings and an enrollment of approximately 4,600 students.
The City is within the boundaries of McHenry Community College District No. 528, a two-
year college, which offers more than 50 associate degrees and over 15 certificates in liberal
arts and technical programs leading to employment or further study at four-year colleges or
universities. Other higher education opportunities for residents are located at facilities
throughout the greater Chicago metropolitan area.
Community Services
Utility companies serving City residents include NICOR, ComEd, AT&T (telephone) and
Comcast Cable. Residents have access to two medical centers in the City, Centegra Northern
Illinois Medical Center and Northern Illinois Medical Center, and a total of six hospitals
located in surrounding areas.
City residents are served by the McHenry Public Library District and the McHenry Township
Fire Prevention District. The McHenry Public Library has a collection of over 103,000 books
and periodicals, 7,000 videos and DVDs, and 5,700 audio materials. Both the library and the
fire district are separate entities from the City, operate their own programs and facilities and
file separate tax levies.
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Glossary
Accrual Basis of Accounting: A method of accounting that recognizes the financial effect of
transactions, events, and interfund activities when they occur, regardless of the timing of related
cash flows.
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.
Appropriation: Legal authorization by the City Council to make expenditures and to incur
obligations for specific purposes.
Assessed Valuation: A valuation set upon real estate or other property by a government as a
basis for levying taxes.
Availability Criterion: Principle of the modified accrual basis of accounting according to
which revenues may only be recognized when they are collectible within the current period or
soon enough thereafter to be used to pay liabilities of the current period.
Basis of Accounting: The timing of recognition, that is, when the effects of transactions or
events should be recognized for financial reporting purposes. For example, the effects of
transactions or events can be recognized on an accrual basis (that is, when the transactions or
events take place), or on a cash basis (that is, when cash is received or paid).
Bond: A written promise to pay a specific sum of money, called the face value or principal
amount, at a specified date or dates in the future, called the maturity dates, together with periodic
interest at a specified rate.
Budget: The financial plan for the operation of a program or organization, which includes an
estimate of proposed expenditures for a given period, and the proposed means of financing those
expenditures.
Budget Message: A general outline of the budget, which includes comments regarding the
government's experience during the past period, its financial status at the time of the message,
and recommendations regarding the financial policy for the coming period.
Budgetary Basis of Accounting: The method used to determine when revenues and
expenditures are recognized for budgetary purposes.
Business -Type Activities: Activities of the City that are financed in whole, or in part, by fees
charged to external parties for goods or services. These activities are accounted for as enterprise
funds and include the Airport, Transit, Parking, Golf Course, Boat Harbor, Marina, Ambulance,
Refuse Collection, Landfill, Transfer Station, Water Pollution Control, and Collection and
Drainage Funds.
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Capital Improvements Program: An annually updated plan or schedule of projected
expenditures for public facilities and improvements which includes estimated project costs,
sources of funding, and timing of work over a five-year period. For financial planning and
general management, the program is presented as a plan of work and proposed expenditures, and
is the basis for appropriation requests and bond issues.
Capital Outlay: Fixed assets which have a value of $300 or more and have a useful economic
lifetime of more than one year.
Capital 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 life expected to extend over more than one fiscal
period. The process of allocating the cost of a capital asset to the periods during which the asset
is used is called depreciation.
Encumbrances: Obligations in the form of purchase orders, and/or contracts, which are
chargeable to an appropriation and for which a part of the appropriation is reserved.
Enterprise Fund: A fund established to account for operations that are financed and operated in
a manner similar to private business enterprises. The intent of a governing body is that the cost of
providing goods and services to the general public on a continuing basis be financed or
recovered primarily through user charges or where the governing body has decided that periodic
determination of revenues earned, expenses incurred and/or net income is appropriate for capital
maintenance, public policy, management control, accountability, or other purposes.
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Expenditures: The cost of goods received or services rendered for the government unit. For the
City of McHenry, expenditures are charged against an appropriation when incurred, not when
paid.
Fiscal Policy: The City of McHenry's policy with respect to taxes, spending and debt
management as they relate to government services, programs, and capital investments.
Fiscal Year: A twelve-month period to which an annual operating budget applies.
Fringe Benefits: Benefits paid by the City of McHenry for social security, retirement, group
health, life, dental and long-term disability insurance. It also includes costs for worker's
compensation and unemployment.
Function: A group of related activities aimed at providing a major service or regulatory
program for which a government is responsible.
Fund: The fiscal and accounting entity with a self -balancing _set of accounts recording cash and
other financial resources together with all related liabilities and residual equity or balances and
changes therein which are segregated for the purpose of carrying out specific activities or
obtaining certain objectives in accordance with special regulations, restrictions or limitations.
Fund Balance: Funds remaining after the application of available revenues and resources to
support expenditures for the fund.
General Fund: A fund used to account for all financial resources except those required to be
accounted for in another fund.
General Government Function: Function that provides for the operation of the government
and assures the general administration of the municipality. Activities included in this function are
mayor and council, legal services, city administrator, human resources, wellness program,
finance, computer operations, risk management, and buildings and grounds.
General Obligation Bonds: Bonds for the payment of which the full faith and credit of the
issuing government are pledged. Goal: Broad statement of desired results for the city,
department, and/or activity relating to the quality of services to be provided to the citizens of
McHenry.
Governmental Funds: Funds generally used to account for tax -supported activities. There are
five different types of governmental funds: the general fund, special revenue funds, debt service
funds, capital projects funds, and permanent hinds.
Health and Social Services Function: Government function which provides for assistance to
service agencies involved in providing health and social services in the community. For the City,
this function includes the Economic Well -Being activity.
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Intergovernmental Revenues: Revenue from other governments, primarily in the form of
Federal and State grants, but may also be payments from other local governments.
Internal Service Fund: A fund used to account for the financing of goods and services
provided by one department or agency to other departments or agencies of a government on a
cost -reimbursement basis.
Legal Debt Martin: The excess of the amount of debt legally authorized over the amount of
debt outstanding.
Level of Service: Generally used to define the existing or current services, programs and
facilities provided by the government for its citizens. Level of service of any given activity may
be increased, decreased,, or remain the same depending upon the needs, alternatives, and
available resources.
Levy The total amount of taxes, special assessments, or service charges imposed by a
government to support governmental activities.
Modified Accrual Basis of Accounting: Basis of accounting according to which (a) revenues
are recognized in the accounting period in which they become available and measurable and (b)
expenditures are recognized in the accounting period in which the fund liability is incurred, if
measurable, except for 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.
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Public Safety Function: Government function that provides for services to reduce the amount
and effects of external harm to individuals and damage to property, and in general to promote an
atmosphere of personal security from external events. Police, animal control, communications,
fire, and civil defense activities are included in this function.
Public Works Function: Government function that provides for safe and well -maintained
infrastructure for the City. Activities included in this function are public works administration,
roadway maintenance, snow and ice control, street cleaning, traffic control and engineering.
Resolution: An order of a legislative body requiring less legal formality than an ordinance;
additionally, it has less legal status.
Revenue: Income received by the City of McHenry to support the government's program of
services to the citizens. Income includes such items as property tax, fees, user charges, grants
and fines.
Special Assessment: A compulsory levy made against certain properties to defray part or all of
the cost of a specific improvement or service deemed to primarily benefit those properties.
Special Revenue Funds: Funds used to account for proceeds of specific revenue sources that
are legally restricted to expenditures for specified purposes.
Taxable Valuations: Valuations set upon real estate or other property by a government as the
basis for levying taxes.
Taxes: Compulsory charges levied by government for the purpose of financing services
performed for the common benefit. This does not include specific charges made against
particular persons or property for current or permanent benefits such as special assessments.
Trust and Agency Funds: Funds used to account for assets held by a government in a trustee or
agent capacity for individuals, private organizations, other governments, and/or other finds.
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