HomeMy WebLinkAbout17-18 Budget
Fiscal Year 2017/2018
Annual Budget
Adopted April 24, 2017
City of McHenry, Illinois
FY2017/2018 Annual Budget
Table of Contents Letter of Transmittal..................................................................................................................... 1 Introduction…………………………….…………………………………………………………………………. 5 Elected Officials, Department Directors and Primary Administrators…………. 6 History and Demographic Snapshot of McHenry………………………………………. 7 City of McHenry Strategic Plan Summary…………………………………………………. 9 GFOA Award for Distinguished Budget Presentation FY16/17…………………… 14 Budget Document Guide…………………………………………………………………………. 15 Basis of Accounting and Budgeting…………………………………………………………… 16 Budget Process Summary………………………………………………………………………… 17 Budget Process Timeline…………………………………………………………………………. 19 City of McHenry Organizational Chart………………………………………………………. 21 Personnel Summary………………………………………………………………………………... 22 Staffing Needs Summary………………………………………………………………………….. 23 Fund Structure Overview………………………………………………………………………… 26 Chart of Accounts Overview…………………………………………………………………….. 29 Summary of Revenues & Expenditures – All Funds…………………………….………………… 41 Summary of Proposed Revenues – All Funds……………………………………………. 42 Comparison of Budget vs. Proposed Revenues – All Funds………………………… 43 Summary of Revenues and Other Financing Sources – All Funds……………….. 44 Summary of Proposed Expenditures – All Funds………………………………………. 45 Comparison of Budget vs. Proposed Expenditures – All Funds…………………... 46 Expenditures by Function – All Funds……………………………………………………… 47 General Fund Revenues, Expenditures & Fund Balance Summary…………………………. 48 General Fund Overview…………………………………………………………………………... 49 General Fund Revenues, Expenditures and Fund Balance Summary…………… 49 General Fund Revenues – Budgeted, Estimated, Proposed…………………………. 50 General Fund Expenditures – Budgeted, Estimated, Proposed……………………. 53 General Fund Fund Balance……………………………………………………………………… 55 General Fund Operating Budgets………………………………………………………………………….. 58 General Fund Operating Budgets Overview………………………………………………. 59 Personnel Summary of Wages – All Funds………………………………………………… 62 General Administration……………………………………………………………………………. 66 Elected Officials………………………………………………………………………………………. 79 Community Development…………………………………………………………………………. 83 Finance……………………………………………………………………………………………………. 92 Police Commission…………………………………………………………………………………… 101 Police………………………………………………………………………………………………………. 104 NERCOM (Dispatch)…………………………………………………………………………………. 122 Public Works – Administration…………………………………………………………………. 135 Public Works – Streets……………………………………………………………………………… 144 Parks and Recreation………………………………………………………………………………... 155 Special Revenue Funds………….………………………………………………………………………………. 167 Tourism……………………………………………………………………………………………………. 168 Pageant………………………..……………………………………………………………………………. 171 Band…………………………………………………………………………………………………………. 174 Civil Defense……………………………………………………………………………………………... 177
Alarm Board…………………………………………………………………………………………….... 180 Audit………………………………………………………………………………………………………… 183 Annexation………………………………………………………………………………………………... 186 Motor Fuel Tax………………………………………………………………………………………….. 189 Developer Donation…………………………………………………………………………………… 192 Tax Increment Finance………………………………………………………………………………. 195 Capital Projects & Debt Service Funds……………………………………………………………………. 198 Debt Service Fund……………………………………………………………………………………… 199 Recreation Center Fund……………………..………………………………………………………. 202 Special Service Area #4……………………………………………………………………………… 208 Capital Improvements Fund……………………………………………………………………….. 211 Capital Equipment Fund…………………………………………………………………………….. 215 Enterprise Funds………………………………………………………………………………………………….. 219 Water & Sewer Fund…………………………………………………………………………………. 220 Public Works – Water……………………………………………………………………………….. 223 Public Works – Wastewater……………………………………………………………………….. 233 Public Works – Utility……………………………………………………………………………….. 243 Capital Development…………………………………………………………………………………. 251 Utility Improvements………………………………………………………………………………... 254 Marina Operations…………………………………………………………………………………….. 257 Internal Service Funds…………………………………………………………………………………………. 260 Employee Insurance…………………………………………………………………………………. 261 Risk Management…………………………………………………………………………………….. 264 Information Technology…………………………………………………………………………… 267 Fiduciary Funds……………………………………………………………………………………………………. 273 Employee Flexible Spending………………………………………………………………………. 274 Development Escrow…………………………………………………………………………………. 277 Retained Personnel……………………………………………………………………………………. 280 Revolving Loan…………………………………………………………………………………………. 283 Police Pension…………………………………………………………………………………………… 286 Supplemental Information…………………………………………………………………………………….. 290 Financial Policies Overview……………………………………………………………………….. 291 Fund Balance and Reserve Policy……………………………………………………………….. 293 Capital Improvement Program Financial Policies………………………………………… 302 Investment Policy……………………………………………………………………………………… 303 Purchasing Policy and Procedures………………………………………………………………. 310 Glossary of Terms……………………………………………………………………………………… 314
DATE: April 24, 2017 TO: Honorable Mayor and City Council Citizens and Businesses of McHenry FROM: Derik Morefield, City Administrator Carolyn Lynch, Finance Director RE: FY17/18 Annual Budget
Mayor, City Council, Citizens, and Businesses of McHenry,
Introduction It is our pleasure to be able to present for your review the Fiscal Year 2017/2018 Annual Budget. This year’s budget has undergone a complete visual presentation revision and it is hoped that this new look will make the information presented in the budget document more understandable and, most importantly, transparent, for the reader. Please note that we are proud to be able to identify that the City has received the Government Finance Officers Association (GFOA) Distinguished Budget Award for the past two years however, this did not preclude us from making major changes to this document to make it even better. On the following pages you will not only be able to identify the municipal organizational structure and how municipal revenues are derived and expenditures disbursed, but also learn more about the financial policies that drive municipal budget decision-making. On a more detailed level, the reader can also identify the FY16/17 Accomplishments and FY17/18 Goals and Objectives for each operating fund and, new for FY17/18, is the inclusion of Performance Measures in an attempt to gauge the success of specific programs or operations within the municipality. The City’s annual fiscal year budget covers the period beginning May 1st and ending April 30th. The budget document itself, upon completion, contains information relative to estimated revenues and planned operational and capital expenditures for the various funds of the municipality for the identified fiscal year. Although the budget is not formally adopted by the City Council until April of each year, the budget development process officially begins each October with the preparation of the annual tax levy, which is used to fund many of the current programs and services, along with the development/update of the five-year Capital Improvement Program (CIP). The budget preparation process provides the various divisions and departments of the City with the opportunity to review accomplishments, set goals and objectives, and identify the means for accomplishing these goals and objectives. Every employee of the municipality plays a role in the budgeting process – be it formulation, preparation, implementation, administration, or evaluation. Ultimately, Department Directors,
through the City Administrator, are accountable to the City Council and to the residents of McHenry for the performance of departments in meeting goals and objectives, and for the diligent fiscal management of funds, as set forth in the budget document. Department Directors, with input from their respective managers, superintendents and departmental staff, analyze historical data, review existing operational needs, and project anticipated operational needs in order develop line-item budget requests that allow them to maintain or enhance the level of programs and services within their departments. These detailed requests are then submitted to the City Administrator and Finance Director and meetings are held with Department Directors to review and adjust requests based on identified need and anticipated revenues, keeping in mind the overall services that the municipality must provide to residents. As always, it is the goal of the City Administration to present Council with a balanced operating budget which is achieved in the attached information. Instead of using this letter to summarize the revenues and expenditures of the more than thirty-five (35) municipal funds, which is included in this document, we will instead highlight the many accomplishments that have been achieved in FY16/17 and, subsequently, identify the goals and objectives that departments have established for the upcoming year.
FY16/17 Accomplishments As part of the budget development process, Department Directors are charged with reflecting on the accomplishments of their respective departments during the previous 12 months and identifying these as part of their departmental budget submittals. While we sometimes recognize and acknowledge many of the accomplishments throughout the year, others occur as part of everyday business without fanfare. Only when it comes to the annual budget development process are we able to better see the outstanding innovation and commitment that employees have in making the community so much better for its residents. The following list of accomplishments are only highlights from the hundreds of others listed within each operating budget.
• Introduced newly redesign website through GovOffice
• Upgraded audio/video in Council Chambers for upload to YouTube
• Hired a Public Works Project Engineer
• Established process for pre-qualifying engineer firms for competitive bidding
• Negotiated the transfer of boat ramp rights and received permit from the USACE for Miller Riverfront Park
• Implemented IGAs and successfully consolidated dispatch services to McHenry
• Coordinated with taxing bodies and local and state agencies to maintain Fabrik
• Implemented Applicant Tracking System to streamline application process
• Developed five-year staffing plan for all departments
• Hired Plan Reviewer to streamline development review processes
• Updated Building Codes to the 2015 cycle
• Completed water/sewer rate analysis resulting in rate adjustments based on cost
• Worked to implement ways for customers to pay bills electronically
• Hired a new Police Commander and restructured department accordingly
• Successfully coordinated for the consolidation of dispatch services including build-out of the facility and hiring/transitioning of employees
• Continued management of the wastewater treatment plant consolidation project
• Administration/management of a number of public works projects and the ability to increase level of “in-house” engineering review
• Implemented aggressive pavement maintenance program, maintained city vehicles, and participated heavily in planting trees throughout the City
• Successful opening and first year of McHenry Recreation Center, expansion of Special Events and Programs
• Numerous important improvements to city parks and park amenities
FY17/18 Goals and Objectives An important part of the departmental-level budget development process is the establishment of goals and objectives for the upcoming year. Each year Department Directors, with input from their superintendents, managers and staff, develop a set of goals and objectives for their respective departments. While each operating fund budget includes a goals and objectives section, the following highlight some of the most important goals and objectives for the upcoming fiscal year.
• Final construction and opening of the Miller Riverfront Boat Ramp
• Undertake and complete review and codification of the Municipal Code
• Engage in discussions with taxing districts to identify potential for extending the Downtown Tax Increment Finance District
• Continue to promote economic development opportunities in McHenry and review, amend, write incentive, annexation agreements and ordinances that facilitate and promote business attraction, retention and/or expansion
• Coordinate with McHenry Chamber and Downtown Business Association to focus on downtown development/redevelopment opportunities
• Implement electronic scheduling and time card system
• Undertake wage and compensation study and create a new compensation structure for non-bargaining unit employees
• Complete the five-year Staffing Needs Assessment, focus on succession planning
• Continue to enhance the website to make it more transparent and user-friendly across all municipal departments
• Review fee structures for all permits
• Explore ideas to kick start residential development projects
• Continue to coordinate with Administration to create a single point of contact for customers
• Implement a new electronic payment method for all bills
• Utilize the State’s Local Debt Recovery program
• Continue to seek the highest level of training opportunities for police members
• Expand the Police Department public relations, community involvement programs
• Continue focus on school safety procedures and training
• Further develop the Police Street Crimes Unit
• Successfully complete CALEA accreditation
• Enhance communication with residents to inform them about city services
• Administer various RFPs for municipal projects
• Perform all 2017 Road Program engineering “in house”
• Manage completion of Phase II engineering design services for Pearl Street, Lincoln Road Project
• Perform construction observation for 2017 Crack Sealing Program
• Continue aggressive tree planning and maintenance program
• Enhance collaborative marketing plan for recreation programs
• Research trends and explore partnerships for developing new recreation programs
• Complete Community Needs Assessment
• Continue to maintain parks and parks amenities in a professional manner and coordinate with the various user groups for use of parks facilities
• Continue to maintain public water and sewer infrastructure through utility maintenance program
• Focus on water meter replacement program
• Complete the consolidation of the Central and South Wastewater Treatment Plants
While this list is far from exhaustive, hopefully the reader will see that depth and breadth of programs and services that are provided by the City of McHenry and, further, that we continue to strive to make existing programs, or develop new programs, that are both time and cost efficient for the residents of McHenry.
Conclusion The City of McHenry has so many great things happening with the potential for so much more. Our outstanding parks system provides residents and visitors with a variety of passive and active recreational and cultural opportunities throughout the year. Our stable manufacturing and retail base creates skilled, high paying jobs and provides goods and services here, in McHenry, instead of having to drive elsewhere for them. Our downtowns, like all downtowns, continue to present challenges as they continue their evolutions but we will continue to strive to work with property owners to match right entrepreneur with spaces that are available. The Fox River remains a source of unlimited opportunities for creating economic growth recreational opportunities. While the City continues to find itself in a strong financial position we must continue to monitor economic threats – such as the State Budget crisis and economy overall – to ensure that we are not caught off guard in the future. Continuing the practice of prudence when it comes to estimating revenues, limiting expenditures as possible, and evaluating and implementing efficiency in operations are all important to maintaining a sound financial plan. In addition, with the newly implemented Fund
Balance and Reserve Policy there is clear definition in identifying funding required as an “operational reserve”, available in response to financial threats, and funding that is “assigned for capital”, to be used to implement the tens of millions of dollars in capital project needs of the community. The City of McHenry, led by its elected officials, continue to be excellent stewards of public funds and the FY17/18 Budget, operationally balanced as presented, is a reflection of this commitment. Sincerely, Derik Morefield, MPA, ICMA-CM Carolyn Lynch City Administrator Director of Finance
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Fiscal Year 2017/2018 Annual Budget
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Elected Officials Susan E. Low, Mayor Ward 1 Victor A. Santi, Alderman Ward 2 Andrew Glab, Alderman Ward 3 Jeffrey A. Schaefer, Alderman Ward 4 Scott Curry, Alderman Ward 5 Richard Wimmer, Alderman Ward 6 Patrick Devine, Alderman Ward 7 Geri A. Condon, Alderwoman Janice C. Dalton, City Clerk Department Directors and Primary Administrators 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
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History and Demographic Snapshot of McHenry McHenry is located in east-central McHenry County, 55 miles northwest of the Chicago Loop and 35 miles from O’Hare International Airport. The City is centered on two major State highways – Illinois Route 31, which runs north/south from Wisconsin to South Elgin; and, Illinois Route 120, which runs east/west from Woodstock to Park City. The City consists of approximately 13 square miles in land area. In 1832 Major William McHenry led an expeditionary force through northern Illinois during the Black Hawk War. Settlement of the Fox River Valley began over the next few years, and on the river's west bank, at the site of an old Indian ford, the hamlet of McHenry established in 1836. The McLean, Wheeler, McCullom, and Boone families were influential in the community's early years. A sawmill, hotel, and ferryboat were in operation by 1837 and legislation creating McHenry County was passed that year, and the village served as county seat until 1844. Gristmills started along newly dammed Boone Creek, and a wagon road entered town from the south in 1851. In 1864, the famed Riverside Hotel was built and still stands today. George Gage, who served as the region's first state senator (1854–1858), owned the lands west of the millpond, and was able to secure the route of the Fox Valley Railroad (afterward a branch of the Chicago & North Western) from Chicago in 1854. Consequently, Gagetown (later West McHenry) began to eclipse the older east side of town containing the Riverside section and Green Street area, once known as Centerville. This can still be detected in the distinct commercial pattern that characterizes McHenry’s “downtown.” The village incorporated in 1872. Though there were fewer than 800 inhabitants, commerce flourished. By 1876 there were seven churches and over 80 enterprises, including flour mills, harnessmakers, a pickle factory, a brewery, seven saloons, and a newspaper. The newspaper, the
McHenry Plaindealer, was in publication from 1875 to 1985. Over the next 50 years McHenry grew slowly. During the 1920’s the town became known as a resort destination because of the Fox River, surrounding lakes, and easy accessibility from Chicago. Bands played at local pavilions, trainloads of visitors arrived to tour the famous lotus beds, and summer cottages proliferated along the Fox River. A boat-building industry flourished; marine recreation still remains important. For decades, McHenry took very seriously its title as the "Gateway to the Chain-of-Lakes” and this is still evidenced today in the city’s motto “Heart of the Fox River.” With the advent of the automobile, State Route 120 crossed the Fox River on a new two-lane bridge. The old wagon trail, now Highway 31, doglegged along the same route for a critical half mile before turning north toward Wisconsin. These configurations effectively relocated the city's commercial center to Route 120, and had the unintended side effect of isolating the original business districts (West Main, Riverside Drive, and Green Street). In spite of its beauty and strong attraction to tourists, McHenry owed her growth to the stability provided by the many farmers who worked the fertile land as well as the establishment of industry with new factories such as Admiral, Borden and The Hunter Boat Company. The Fox River helped
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facilitate the import and export of lumber, cigars, clay, food products and brewing which all helped draw new residents to the area. The drainage of a large 60 acre pond that previously divided the community in half, contributed to increased development and improved roadways, while the railroad allowed commuters to find this area the perfect place to settle with their families. A new wave of industry, including automotive components, electronics, and metalworking, swept into town after World War II. The Northern Illinois Medical Center, begun in 1956 as a 23-bed community hospital, evolved into a regional trauma center serving two states. Beginning in the late 1940s, subdivisions were annexed on all sides of the city. By this time, many residents were commuting to work in other localities, including Chicago. McHenry's population tripled from 2,080 in 1950 to 6,772 in 1970, and tripled again to 21,501 in 2000. McHenry’s current population is approximately 27,000, including 10,075 households, an average household size of 2.66, and median household income of $68,024. Of the 10,075 households, approximately 7,719 are owner-occupied and 2,356 are renter occupied. The median resident age is 37.1. The City’s 2016 EAV was $545,000,000. The City currently has more than 2,000 approved unplatted lots and platted vacant lots. Active subdivisions in the City include: Abbey Ridge, Boone Creek, Burning Tree, Chesapeake Hills, Deerwood Estates, Evergreen Parks, Foxcroft Ridge, Glacier Ridge, Knox Farm, Legend Lakes, Liberty Trails, Lincoln Hills, Martin Woods, Morgan Hill, Oaks at Irish Prairie, Patriot Estates, Prairie Lakes and Preserves at Boone Creek. Total number of businesses in the City is 1,473 and total employment is approximately 19,661, with an employee/residential population ratio of 73:1. The City’s three largest employment sectors, by number of employees, are: Healthcare and Social Assistance: 5,136 employees/26%; Retail Trade: 3,139 employees/16% and Manufacturing: 2,418 employees/12.3%.
Green Street looking south from State Route 120 (circa 1920’s)
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City of McHenry Strategic Plan Summary
Background In the fall of 2013 the City Council and Department Directors participated in a facilitated strategic planning session and the results of this exercise were compiled and presented to Council in the form of the City of McHenry Comprehensive Strategic Plan document that was adopted by Council in August of 2014. In addition to establishing updated Mission and Vision statements, Governing Principles and a Code of Ethics, the plan identified fifty-nine (59) Strategic Goals as guiding principles for decision-making. In the spring of 2016 Staff and Council undertook a review of the plan document with a focus towards ensuring that the strategic plan remain relevant to the activities/actions being undertaken by staff and elected officials, to revisit opportunities, and to identify/introduce any new strengths, weaknesses, opportunities, and threats that may need to be incorporated in to the plan. While regular annual or biannual review of the plan is essential to provide for a structured mechanism of update, the plan itself is a “living breathing” document that consistently shifts as internal and external factors change. As a result of the initial 2014 Strategic Planning Session and the 2016 follow-up review session, the following now serves as McHenry’s Strategic Plan. The attributes and identifiable goals that it conveys have been identified as essential for the municipality and, as possible, are incorporated into the annual Capital Improvement Program (CIP) and Annual Budget. Attributes are listed in order of importance based on participant feedback.
Mission Statement The City of McHenry is dedicated to providing the citizens, businesses and visitors of McHenry with the highest quality of programs and services in a customer-oriented, efficient and fiscally responsible manner.
Mission Accountability As a continuous reminder of the mission, a commitment is made to undertake the following actions:
• The mission will be read at the beginning of each meeting of the City Council. (City Council)
• The mission will be placed prominently in each addition of the City Newsletter. (Office of the
City Administrator)
• The mission will be framed and posted at major portals within all municipal buildings.
(Office of the City Administrator, Department Directors)
• The mission will be incorporated in to daily decision-making and included in future municipal planning documents. Examples include the annually updated 5-Year Capital Improvement Program and the annual operating Budget. (Office of the City Administrator,
All)
• The mission will be added to letterhead, memos, etc. (Office of the City Administrator, All)
• The mission will be added to website and other social media. (Office of the City
Administrator)
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Vision To make McHenry a community of choice for living, working and recreating for all, with unique natural resources, abundant cultural opportunities, outstanding neighborhoods, and a vibrant and diverse economy.
Governing Principles The values and beliefs guiding the actions of the elected and appointed officials of the City of McHenry shall include the following:
• Provide an open and honest government.
• Establish an environment that fosters open communication, dialogue, and active listening with both internal and external stakeholders and customers.
• Ensure quality, responsive customer service.
• Enhance the community’s quality of life.
• Embrace the diversity of a multi-cultural and multi-generational working environment.
• Be fair and objective in making community decisions.
• Remember that municipal employees, through their individual and collective abilities to provide quality services and programs to the residents, businesses and visitors of the community, are our most valued asset.
Code of Ethics In addition to the guidance of ethical behavior for elected and appointed officials provided in the McHenry City Code (Sec. 2-55 Code of Ethics), the following Code of Ethics shall apply:
• Avoid illegalities, improprieties and any perception thereof.
• Avoid accusations or perceptions of wrongdoing.
• Do what makes the most sense.
• Do what is right, not what is easiest.
• Be fiscally responsible and manage budgets effectively.
• Be proactive, look for ways to anticipate and deal with issues.
• Seek innovative ways to improve public services and increase efficiency.
• Keep the public informed and provide opportunities for public engagement.
Strengths: Physical assets, supplies, talents, etc. that can assist in accomplishing our vision. Attribute Goal
1. Stable Financial Position To maintain a balanced budget while protecting our healthy reserves, continuing to evaluate our annual levy with the potential keeping it flat as long as our reserves are healthy, per our Fund
Balance and Reserve Policy. 2. Fox River To develop and continue marketing strategy for the Riverwalk and Fox Reiver by expanding and developing riverfront recreational areas and business opportunities. Retain and support the position of Economic
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3. Economic Development Development Director to actively pursue economic development opportunities and be receptive to zoning changes to allow businesses to grow. Diversity of business types identified as important. 4. Parks System/Open Space To maintain and utilize our 600+ acres of park and open space to provide recreational opportunities for residents and visitors.
5. Public Event Coordination
To cooperate with local and area groups, residents, businesses to have events/recreational opportunities. Develop a plan that allows feedback from the community and use data to develop future events. Increase marketing of municipal and municipally-supported events. 6. Staff Development To continue to support staff development and provide staff with the tools necessary to be successful in a positive work environment – respecting their knowledge and expertise. 7. Inter Departmental Teamwork To continue to foster a climate of collaboration among departments and within divisions.
Weaknesses: Physical assets, supplies, talents, etc. that are deficient and impede the ability to achieve our vision. Attribute Goal 1. Aging Infrastructure To continue to evaluate and prioritize infrastructure needs, continuously work to leverage non-municipal funding, and attempt to identify consistent funding sources. 2. Internal Communication To continue to promote respect and teamwork, find ways to increase meaningful communication and agree to disagree and move on. 3. Aging Technology To define and prioritize technology needs of the municipality and develop and implement technology plan(s).
4. Public Perception of Government To continuously implement methods for providing enhanced customer service, increased information and to make City processes, procedures, intentions, actions as transparent as possible. 5. Code Enforcement To develop a methodology for prioritizing code enforcement activities based on Council direction and develop a Code Enforcement Strategy. 6. Public Transportation To continue to coordinate with McHenry County and surrounding communities
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Opportunities: Situations that can have a positive effect on the organization if considered or acted upon. Attribute Goal 1. Riverwalk Expansion 2. Redevelopment of Central Wastewater Treatment Plant site 3. Miller Point Redevelopment 4. Downtown Theater Redevelopment
To review and utilize Riverwalk and Downtown Plans which are already in place and undertake additional studies as needed, to ensure prioritization and coordination of projects 1-4 (left). Much of this depends on timing, cost, redevelopment opportunities but the City and partners should be prepared to act as opportunities arise.
5. Recreation Center Expansion To evaluate long term feasibility for expansion of the recreation center through assessing community desires and needs with an understanding that future phases are driven by the passage of referenda. 6. Dispatch Facility Expansion To establish the consolidated dispatch facility and continue to promote and attract new customers to the facility. 7. Fox River Access/Boat Ramp To continue efforts to obtain construction permit from the USACE and fund and build the facility. 8. Reconstructed City Website and City Council A/V To evaluate and redevelopment the City’s internet website to make it more transparent and user friendly and to take the steps required to be able to either live stream or record stream City Council Meetings.
Threats: Opposite of opportunities. Factors that can have a negative impact on local government. Attribute Goal 1. Council-Council, Council-Staff Trust, Respect To continue efforts to establish an atmosphere of respect and trust through open communication and cooperation. All on the same team. 2. State Budget Crisis To maintain the City’s financial stability while establishing a financial threshold at a “survivable” level to maintain City services while continuing to monitor State’s financial crisis. 3. Extend the TIF To explore opportunities for extending the current TIF; coordinate with other taxing jurisdictions; educate public on benefits of TIF and extension. 4. Aging Infrastructure Costs To develop a comprehensive assessment of all infrastructure and implement a prioritization for replacement – Capital Improvement Plan. To maintain pace of payment on Police Pension
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5. Pension, Benefit, Insurance Costs and to ensure that we are competitive for insurance and benefits – adjusting employee contributions as necessary. 6. Business Incentives To explore, implement unique opportunities for business incentives for location and expansion that sets McHenry apart as a business-friendly community regardless of the State’s issues.
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GFOA Award for Distinguished Budget Presentation The Government Finance Officers Association of the United States and Canada (GFOA) presented a Distinguished Budget Award to the City of McHenry for its annual budget for the fiscal year beginning May 1, 2016. In order to receive this distinction a governmental unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan, and as a communications device. This is the second consecutive year that McHenry has received the award.
It should be noted that out of the 2,731 municipal governments located in Illinois, only 79 (2.9%) meet the criteria to receive this prestigious award. Throughout the United States, a total of 873 (2.7%) municipal governments received this distinction.
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Budget Document Guide This budget document is prepared with two major objectives in mind. First, to provide citizens and others interested in the City’s finances with complete and understandable information regarding the budget. The second is to develop an annual fiscal plan that will assist City leaders in making better decisions and enhance financial accountability. Given the constraints of a small community, this budget document is continually being changed and is coming closer to meeting the requirements as a:
Policy Document As a policy document, the City Council has established specific strategies to achieve its goals through policy decisions as noted in the City Administrator’s letter of transmittal. These sections include:
• A budget message, included in the transmittal letter, that articulates priorities and budget issues, particularly major issues affecting budget decisions;
• Short-term initiatives that guide development of the budget in the upcoming year; and
• General information describing each budget unit’s prior year accomplishments and budget year goals and objectives.
Operations Guide As an operations guide, the budget document describes activities, services, and functions carried out by the organizational units. In addition, it provides an organizational chart and summary of authorized personnel for the prior year and the budget year.
Financial Plan As a financial plan, the budget document describes all funds subject to appropriation in the fund structure overview section. In addition, all summaries of all major revenues and expenditures are provided in summary tables. The final budget also includes General Fund revenues for the 2012/13 through 2015/16 fiscal years as well as budget amounts for the current and upcoming years. Finally, the summary section includes information as the projected changes in fund balances for all appropriated funds.
Communication Device The Budget Document contains narratives, supplemented with tables and charts, which present the budget in a manner that is simple and understandable. The Proposed FY17/18 Budget is available for public review at the McHenry Municipal Center, 333 S. Green Street, McHenry, as well as on the City’s website at www.ci.mchenry.il.us prior to adoption by the City Council. Once adopted, the budget is available for public review at the McHenry Municipal Center, 333 S. Green Street, McHenry, as well as on the City’s website at www.ci.mchenry.il.us.
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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.
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Budget Process Summary
Budget Process Overview The City’s annual fiscal year budget covers the period beginning May 1st and ending April 30th and contains information relative to estimated revenues and planned operational and capital expenditures for the various funds of the municipality for the identified fiscal year. Although the budget is not formally adopted by the City Council until April of each year, the budget development process officially begins each October with the preparation of the annual tax levy, which is used to fund many of the current programs and services, along with the development/update of the five-year Capital Improvement Program (CIP). The budget preparation process provides the various divisions and departments of the City with the opportunity to review accomplishments, set goals and objectives, and identify the means for accomplishing these goals and objectives.
Capital Improvement Plan The five-year Capital Improvement Program (CIP), reviewed and updated annually, is an integral part of the budget process and is designed to achieve two fundamental objectives: first, to identify the major capital needs of the City over a specific planning period; and, second, to prioritize and begin planning, both financially and logistically, for the implementation of these capital improvements. Capital expenditures are defined as any project that will have a useful life of longer than one year and a value greater than $10,000. The CIP prioritizes each project using a unified and objective system that identifies the most important capital project needs. The final budget document includes capital expenditures as defined and prioritized during the CIP development process - based on the availability of sufficient funds. Importantly, the CIP document serves as a planning document for the identification of capital improvement and capital equipment needs and not a budget document. In other words, simply because a project is identified in the CIP does not guarantee that it will ever be implemented. Implementation is based on annual review and availability of funding in the budget document.
Budget Roles and Responsibilities Every employee of the municipality plays a role in the budgeting process – be it formulation, preparation, implementation, administration, or evaluation. Ultimately, Department Directors, through the City Administrator, are accountable to the City Council and to the residents of McHenry for the performance of departments in meeting goals and objectives as they are laid out in the budget document. Department Directors, with input from their respective managers, superintendents and departmental staff analyze historical data, review existing operational needs, and project anticipated operational needs in order develop detailed line-item budget requests that allow them to maintain or enhance the level of programs and services within their departments. These detailed requests are then submitted to the City Administrator and Finance Director, meetings are held with Department Directors to adjust requests based on anticipated revenues keeping in mind the overall needs of the municipality, and the fund line item requests found in the attached budget document are identified.
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Budget Appropriation and Supplemental Appropriation While the approved budget document establishes the estimates for revenues and guidelines for expenditures of the municipality, the City is required to conduct a public hearing and adopt an annual appropriation ordinance each July. The appropriation ordinance provides the legal authority to allocate funds to specific spending activities and establishes the City’s legal spending limit for the fiscal year. During the fiscal year it may be necessary, from time to time, to amend the approved budget (see Budget Amendment Process below). As a result, in October following the close of the fiscal year period (April 30th) the City is required to pass a supplemental appropriation ordinance to amend the original appropriation ordinance to account for these budget amendments.
Budget Amendment Process While budgets are prepared at the operational line item level, and approved by Council at the fund line item level, budget amendments are brought before Council, per the Purchasing Policy and
Procedures approved in 2016, for unbudgeted items over $6,500.
Budgetary Controls Without proper internal financial controls the budget document will not serve its role as a guidance tool for City programs and projects. To this end, the Finance Department prepares monthly reports which are reviewed by the Finance Director, respective Department Directors, and the City Administrator. These monthly reviews provide, at a minimum, an opportunity to make operational adjustments throughout the year as necessary. Any deviations from the fund budgetary amounts are discussed in this document and, when necessary, solutions are presented. Quarterly financial reports are also transmitted to the City Council via a City Council Meeting Consent Agenda to ensure that the elected body is consistently apprised of the status of municipal revenues and expenditures.
Preparation to Achieve the Government Finance Officers Association (GFOA) Budget Award Beginning with the FY15/16 Budget, the City Administration committed to undertaking continuous improvements to the annual budget document that achieves the highest quality and reflects both the guidelines established by the National Advisory Council on State and Local Budgeting and the GFOA best practices on budgeting. While some of these improvements are subtle, or related to unseen operational modifications, others are more visible – such as the redevelopment of the budget to its current form aimed at providing the reader with a more understandable and transparent document.
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Budget Process Timeline October 24, 2016 City Administrator distributes CIP instructions to Department Directors November 7, 2016 Presentation of resolution formally estimating the dollar amount for the 2016 property taxes, received in 2017 November 28, 2016 Department Directors submit completed CIP Project Requests and Status Updates to the City Administrator December 5, 2016 Public Hearing and Adoption of property tax levy for calendar year 2016 December 27, 2016 Property tax levy request due to McHenry County January 9, 2017 City Administrator, Finance Director distributes worksheet and instructions for budget preparation to Department Directors January 16, 2017 Proposed FY17/18 – FY21/22 CIP transmitted to City Council February 10, 2017 Department Directors submit budget requests to City Administrator and Finance Director February 6, 2017 Proposed FY17/18 – FY21/22 CIP discussed by City Council February 13-February 17, 2017 City Administrator and Finance Director review budget requests with respective Department Directors to determine proposed departmental/fund budget amounts February 20, 2017 FY17/18 – FY21/22 CIP adopted by City Council February 20-March 12, 2017 Preparation of the Proposed FY17/18 Budget Document March 13, 2017 Transmit Proposed FY17/18 Budget Document to Finance & Personnel Committee and City Council March 22, 2017 Finance & Personnel Committee discuss Proposed FY17/18 Budget at public meeting April 5, 2017 Finance & Personnel Committee discuss Proposed FY17/18 Budget at public meeting April 6-April 10, 2017 Proposed FY17/18 Budget document finalized (Departmental/Fund narratives, charts, supplementary information) April 10, 2017 Proposed FY17/18 Budget transmitted to City Council and posted on City’s Website (www.ci.mchenry.il.us) April 24, 2017 FY17/18 Budget adopted by City Council
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Budget Process Timeline
CIP Creation
CIP Review & Finalization
Property Tax Levy
Budget Creation
Budget Review, Finalization, and
Adoption
Aug -16 Sept - 16 Oct – 16 Nov – 16 Dec – 16 Jan -17 Feb -17 Mar -17 Apr – 17 May - 17
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City of McHenry Organizational Chart
Mayor and City
Council
Office of the City
Administrator
Parks &
Recreation
Parks
Maintenance
Recreation
Center
Aquatic
Center
Recreation
Programs
Community
Development
Planning &
Zoning
Commercial
Inspections
Residential
Inspections
Code
Enforcement
Economic
Development Finance
Accounts
Payable
Accounts
Receivable
Utility
Billing
Administrative
Adjudication
Public Works
Streets
Division
Water
Division
Wastewater
Division
Utility
Maintenance
Division
Police
Operations
Division
Support Services
Division
NERCOM
Dispatch
Deputy City
Administrator
Information
Technology
City Hall Building
Maintenance
Human
Resources
City
Attorney City
Clerk
Deputy City
Clerk/Executive
Assistant
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Personnel Summary The following table provides a summary overview of the staffing level of the municipality for the previous five (5) fiscal years and identifies the proposed staffing level for FY17/18. The increase in staffing levels in the General Fund from FY15/16 to FY17/18 of 15.42 employees is primarily due to the development of the consolidated 911 dispatch center (NERCOM). During this time period, ten (10) new dispatchers and one (1) civilian supervisor have been hired to fully staff this facility. Importantly, the City of McHenry is responsible for only 46.8% of NERCOM personnel costs due to partnerships with the City of Woodstock, City of Harvard and the McHenry Township Fire Protection District which, through center revenues, pay the remainder of the costs. Prior to this consolidation, the General Fund totaled 111.98 employees - 20.57 employees LESS than FY07/08 when measures were taken to reduce staffing due to the recession. Staffing identified in the Recreation Center and Water and Sewer Funds is financed by revenues generated by these funds.
Authorized Personnel
FY17/18
Budget
Change from
Prior FY
FY
16/17
FY
15/16
FY
14/15
FY
13/14
FY
12/13 General Fund Administration 6.00 0.00 6.00 6.00 6.00 8.00 8.00 Elected Officials 0.00 0.00 0.00 1.00 1.00 1.00 1.00 Community Development 7.90 0.00 7.90 5.50 5.50 5.50 6.50 Finance Department 5.00 0.00 5.00 4.60 4.60 4.60 4.60 Police Department 52.75 1.00 51.75 61.88 60.88 60.88 60.88 NERCOM (Dispatch) 22.25 10.00 12.25 0.00 0.00 0.00 0.00 Public Works Administration 3.50 (1.00) 4.50 2.00 2.00 2.00 2.00 Public Works Streets 19.00 1.00 18.00 18.00 19.00 18.00 18.00 Parks and Recreation 11.00 0.00 11.00 13.00 12.00 10.00 11.00
Total General Fund 127.40 11.00 116.40 111.98 110.98 109.98 111.98
Recreation Center Fund 1.00 0.00 1.00 0.00 0.00 0.00 0.00
Information Technology Fund 2.00 0.00 2.00 2.00 2.00 2.00 2.00 Water and Sewer Fund Water Division 5.50 0.00 5.50 4.50 9.50 9.50 9.50 Wastewater Division 9.00 2.00 7.00 7.00 10.00 9.00 10.00 Utility Division 8.00 (1.00) 9.00 9.00 0.00 0.00 0.00
Total Water and Sewer Fund 22.50 1.00 21.50 19.50 19.50 18.50 19.50
Total City of McHenry 152.90 12.00 140.90 133.48 132.48 130.48 133.48 Population 26,992 26,992 26,992 26,992 26,992 26,992 Employees per 1,000 Population 5.66 5.22 4.95 4.91 4.83 4.95
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Staffing Needs Summary - Overview In FY16/17 the administrative leadership team (ie., City Administrator, Human Resources Manager, Department Directors, Superintendents, Managers) began the development of a Staffing Needs Analysis. The primary purpose of this exercise was/is to develop a five-year Comprehensive
Workforce Plan that includes recommendations to changes in the organizational structure of the municipality; recommendations for organizational training and employee development; the implementation of career and leadership development programs; the implementation of employee retention programs; and, the establishment of departmental succession plans. Ultimately, a staffing plan allows Human Resources to update job descriptions, research appropriate wage and compensation levels, network with other municipalities regarding their workforce needs and, in general, be prepared for change within the organization. Several factors triggered the need to determine staffing changes and future positions – the opening of the McHenry Recreation Center, changes in how we provide services to residents and other customers, and the identification of a significant number of employees reaching retirement age. All of these factors led to the need to conduct an internal staffing analysis to prepare for the future. In summary, the needs analysis addresses the staffing levels as well as the skills, knowledge, and abilities needed to accomplish process improvements and create greater efficiency in operations. As such, department directors were asked to project five years into the future in attempting to identify department staffing needs, both in terms of personnel and skill, knowledge and abilities. This would be achieved by analyzing the following factors: 1. Core Functions – Identification of the core functions of the municipality by division/department; 2. Environmental Scan – Identification of the internal and external factors that could change the way that core functions of the municipality are delivered; 3. Current Workforce Profile - Assessment of the knowledge, skills and abilities of the existing workforce and to determine how the demographics of the workforce may impact the organization during the period covered by the workforce plan; 4. Future Workforce Profile – Determining the needs of the future workforce based on required knowledge, skills and abilities, use/application of technology, or anticipated increases/decreases in staffing; 5. Gap/Surplus Analysis – Identification of any gaps and/or surpluses in staffing or skills that will be required to efficiently and effectively carry out the core functions of the municipality. Once this first task was complete, directors met with Human Resources Manager Campanella and City Administrator Morefield to present and discuss their staffing needs for the next five years. The discussions generally included:
• Changes to a specific position or title when an existing employee departs;
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• If certain existing or new positions can be job-shared or whether interns or other staffing tools could be used to reduce workforce costs;
• Identification of the impact of technology on specific jobs or job functions resulting in changes to the tasks associated with a position or the technical skills required to be successful in that job. Through this process, it was identified that the following new or revised positions will be required within the next five years to meet the changing services and programs and to ensure that the residents of McHenry continue to receive a high level of customer service.
General Administration (includes Human Resources and Finance)
• Public Information/Communication Specialist
• Human Resources Assistant (PT)
Community Development
• Seasonal Code Compliance Officer (summers)
Information Technology
• Network Engineer
Parks
• 3 Parks Maintenance Workers
Police
• Community Service Officer (PT)
• Public Relations Officer
• FOIA/Evidence Technician
• Parking Enforcement Officer (PT)
Public Works
• Public Works Engineering Intern (summer)
• Assistant Public Works Director
• Forestry Maintenance Worker (Streets)
• 3 Maintenance Workers
• Certified Laboratory Technician (WW)
• Wastewater Operator II IEPA Licensed Class I
• Utility Crew Leader
• Mechanic (PT)
Recreation
• Recreation Center Supervisor The new position summary is a working list with the understanding that business and community needs change over time. This list will be reviewed and further refined annually to ensure that positions are updated and reviewed as the workforce changes. It is important to not, as discussed elsewhere in this document, that during the recession many employees absorbed the work of eliminated positions which has led to a comingling of responsibilities which sometimes causes
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confusion. The goal of this plan would be to untangle these positions, analyze responsibilities and assign duties where appropriate.
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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 (100s) This fund accounts for all transactions of the city that pertain to the general administration of the city and the services traditionally provided to its citizens. This includes Administration, Elected Officials, Community Development, Finance, Police, Public Works Administration, Streets, and Parks and Recreation.
Special Revenue Funds (200s) These funds are utilized to account for revenues derived from specific sources which are usually required by law or regulation to be accounted for as separate funds. For the City of McHenry these funds include the Tourism Fund, Pageant Fund, Band Fund, Civil Defense Fund, Alarm Board Fund, Audit Fund, Annexation Fund, Motor Fuel Tax Fund, Developer Donation Fund, and Tax Increment Fund.
Debt Service Fund (300) This fund accounts for the accumulation of revenues for and payment of principal and interest on general obligation long term debt.
Capital Improvements Fund (440) and Capital Equipment Fund (450) These funds are utilized to account for financial resources to be used for the acquisition or construction of capital facilities or other major fixed assets.
The City’s business-type funds include the following:
Enterprise Funds (500s) These funds are utilized to account for operations and activities that are financed and operated in a manner similar to a private business enterprise, and where the cost of providing goods and services to the general public on a continuing basis is expected to be recovered primarily through user charges. The City has also established Enterprise Funds when it was advantageous to segregate revenues earned and expenses incurred for an operation for purposes of capital maintenance, public policy, management control or accountability. Enterprise Funds for the City include the Water and Sewer Fund, Capital Development Fund, Utility Improvements Fund, and Marina Operations Fund.
Internal Service Funds (600s) These funds are established to finance and account for services and/or commodities furnished by one department or agency to other departments or agencies of the city. The Internal Service Funds of the City are the Employee Insurance Fund, Risk Management Fund, and Information Technology Fund.
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The City’s other funds include the following:
Fiduciary Funds (700s) These funds are used to account for resources held for the benefit of parties outside the city. The fiduciary funds of the city are the Employee Flexible Spending Fund, Developmental Escrow Fund, Retained Personnel Fund, Revolving Loan Fund, and the Police Pension Trust Fund.
Accounting for the financial activities of the City and the budget appropriation process are
also presented according to classifications required by the State of Illinois. Revenues are
credited to individual fund types while expenditures/expenses are recorded according to
functional areas within specific funds for budgetary control purposes. The following
functional areas are included in the budget:
General Government This function provides for the operation of the government and assures the general administration of the municipality. Activities included in this function also include Economic Development, Human Resources, Information Technology and Municipal Center Building and Grounds Maintenance.
Community Development The overall mission of this function is to protect and promote the health, welfare, safety and quality of life of McHenry Citizens, property owners, visitors and commercial interests through the development and implementation of the City’s adopted ordinances and policies. Planning and development activities are also included within this function.
Finance This function applies modern financial management practices to ensure that the City is able to deliver services effectively and efficiently on a sustained basis. Activities included in this function are reporting financial transactions, billing and collecting money, accounts payable, managing cash and investments, preparing the annual financial report, and developing the budget and financial forecasts.
Public Safety This function provides for services to reduce the amount and effects of external harm to individuals and damage to property, and in general to promote an atmosphere of personal security from external events.
Public Works This function provides for safe and well-maintained infrastructure for the City. Activities included in this function are public works administration, roadway maintenance, snow and ice control, street cleaning, traffic control and engineering.
Parks and Recreation This function promotes the general well being of the City and encourages the fullest development of cultural and educational potentials of the citizens in the community. This function includes the activities of general parks, parks and maintenance, downtown maintenance and programs.
Debt Service This function provides for the accumulation of resources for and the payment of principal and interest on long-term debt of the City.
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Capital Projects This function provides for the acquisition or construction of major capital facilities or equipment for the City.
Business-Type Activities This function includes activities of the City that are financed in whole, or in part, by fees charged to external parties for goods and services. These activities are accounted for as enterprise funds and include the Water and Sewer and Marina Operations Funds.
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Chart of Accounts Overview Funds are comprised of various line item accounts. These are separated as “Revenues” and/or “Expenses” as appropriate and are assigned based on the following specific line item designations:
Revenues
3010 Property Tax Collection – Amount collected in taxes assessed on real estate.
3020 Property Tax Collection – Road & Bridge – Amount collected in taxes assessed on real estate by the McHenry and Nunda Township Road Districts and disbursed to the City for roads and bridges within the City.
3030 Property Tax Collection – Police Protection – Amount collected in taxes assessed on real estate that funds a portion of police protection expenses.
3040 Property Tax Collection – Retirement – Amount collected in taxes assessed on real estate that funds a portion of retirement expenses.
3050 Property Tax Collection – Liability Insurance – Amount collected in taxes assessed on real estate that funds a portion of liability insurance expenses.
3051 Property Tax Collection – Police Pension – Amount collected in taxes assessed on real estate that funds the actuarial required contribution to the police pension fund.
3110 Personal Property Replacement Taxes – Revenues collected by the State of Illinois and disbursed to the City to replace money that was lost by local governments when their powers to impose personal property taxes on corporations, partnerships, and other business entities was taken away in 1979. These funds are limited to use for retirement funding.
3120 State Sales Taxes – The state collects a 1% tax on a seller’s receipts from sales of tangible personal property for use or consumption that is distributed based on sales in the City.
3121 Home Rule Sales Taxes – The state collects a 0.5% tax on a seller’s receipts from sales of tangible personal property for use or consumption that is distributed based on sales in the City. This home rule sales tax is not charged on sales of vehicles.
3125 Telecommunications Taxes – The state collects an 8% tax that is imposed on intrastate and interstate messages and 1% is distributed to the City.
3130 State Income Taxes – Amount collected in taxes imposed on financial income generated by all entities within the State. The State distributes 8% of the net collections of all income tax received from individuals, trusts, and estates and 9.14% of the net collections of all income tax received from corporations to local governments based on the population in proportion to the total state population.
3140 Pull Tabs – Amount collected by the State and disbursed to the City for operator licenses and taxes on gross proceeds of pull tabs and jar games.
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3141 Inter-Track Wagering – Amount collected for a 1% tax collected on the handle at Trackside McHenry Off Track Betting establishments within the City.
3142 Hotel/Motel Taxes – Amount collected for a 5% tax assessed on the rental or leasing charges for hotel or motel rooms.
3150 Motor Fuel Tax Allotment – Taxes collected on gasoline and diesel fuel collected by the State and disbursed to the City based on the population.
3210 Interest Income – Interest earned on cash temporarily held in checking accounts, certificates of deposits, or other investments.
3310 Liquor Licenses – Amount paid by establishments within the City that hold valid liquor licenses.
3320 City Licenses – Amount collected from businesses within the City for licenses for massage parlors, athletic exhibitions for profit, billiard and pool halls, carnivals, circuses, exhibitions, motion pictures and theatricals, public dance halls, skating rinks, bowling alleys, and mechanical amusement.
3330 Vehicle Stickers – Amount paid annually by residents for each licensed motor vehicle owned and operated by them.
3350 Video Gambling Licenses – Amount paid annually by each private business and terminal operator for a video gambling license. Also includes the amount disbursed by the State of Illinois for the City’s portion of the video gaming tax.
3410 Permits – Amount collected to issue a building permit for miscellaneous improvements such as roof repairs, siding repairs, fences, etc.
3420 Plumbing Inspections – Amount collected for the inspection of the connection to a water main through a permit fee.
3430 Zoning & Plat Fees – Amount collected for residents or business owners to have a hearing before the planning & zoning commission for items like conditional use permits, variances, etc.
3505 Traffic Fines – Amount collected by the McHenry County Circuit Clerk’s office and forwarded to the City for traffic fines that occurred within the City.
3510 Parking Fines – Amount collected in fines for parking violations.
3515 Police – Accident Reports – Amount collected for administrative fees to furnish accident reports.
3520 Police – Field Reports – Amount collected for administrative fees to furnish field reports.
3525 Drug Asset Forfeitures – Amount collected through the sale of assets that were forfeited.
3530 DUI Fines – Amount collected by the McHenry County Circuit Clerk’s office and forwarded to the City for DUI charges.
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3532 Overweight Truck Permits – Amount collected for the issuance of overweight truck permits.
3536 Police Bail Bond Processing Fees – Amount collected in fees to process bail paperwork.
3537 Police Impound Fees – Amount collected as an administrative penalty for a motor vehicle that is used in connection with the following driving violations such as driving under the influence, driving while license is suspended or revoked, no valid driver’s license, etc.
3538 Warrant Execution – Amount received from other governmental agencies for the execution of a warrant by the City’s police department.
3539 Electronic Citation – Amount collected by the McHenry County Circuit Clerk and forwarded to the City for electronic citation.
3540 Vehicle License Fines – Amount collected for fines for vehicle stickers that are purchased after the due date of June 30th.
3545 Vehicle Fund Fines – Amount collected by the McHenry County Circuit Clerk and forwarded to the City for vehicle court supervision fines.
3610 Sales – Water/Sewer – Amount collected for water and sewer usage based on meter readings charged at a per 1,000 gallon rate.
3615 Base Charge – Capital – Amount collected through the utility bill for water and sewer base fees that will be retained and used for development and repairs to the utility capital system.
3620 Penalties – Amount collected for utility bills that are paid after the due date.
3630 Hookup/Connection Fees – Amount collected for permit fees that are charged for the connection to the water and sewer system.
3631 Parks & Recreation Programs – Amount collected for programs offered through the parks and recreation department.
3632 Concessions – Amount collected at concession stands at City parks as well as at the Recreation Center.
3633 Beach Programs – Amount collected for daily admission at the McCullom Lake Beach.
3634 Swimming Pool – Amount collected for admission to the Merkel Aquatic Center.
3640 Water Meter Sales – Amount collected for the initial or replacement water meter.
3641 Babysitting – Amount collected for childcare services offered at the Recreation Center.
3642 Room Rentals – Amount collected at the Recreation Center for community room rentals.
3643 Birthday Parties – Amount collected for birthday parties that are held and run by personnel at the Recreation Center.
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3644 Sponsorship/Advertisement – Amount collected for sponsors or advertisements at the Recreation Center.
3645 Annual Membership – Amount collected for membership fees for the Recreation Center.
3646 Short-Term Membership – Amount collected for temporary membership fees for the Recreation Center.
3647 Daily Admissions – Amount collected for daily membership fees for the Recreation Center.
3648 Punch Passes – Amount collected for 10 and 20 punch passes that act as daily membership to the Recreation Center as well as attendance at specialty fitness classes held at the center.
3649 Miscellaneous Fees – Amount collected at the Recreation Center for miscellaneous fees such as workout logging devices, and other items sold at the center.
3650 Fitness Classes – Session Based – Amount collected for fitness classes held at the Recreation Center.
3651 Small Group Personal Training – Amount collected for Recreation Center members that sign up for a small group personal training session.
3652 Personal Training – Amount collected for Recreation Center members that sign up for personal training services.
3653 Elective Participant Premium – Amount collected for City provided health insurance for retired employees or former employees on COBRA.
3660 Debt Service Fees – Amount collected from sewer users to retire debt issued by the City.
3665 Debt Service Fees – IEPA Loan – Amount collected from sewer users to retire an Illinois Environmental Protection Agency loan used to consolidate the Central and South Wastewater Treatment Plants.
3682 Mowing/Weeds – Amount collected for the cutting or removal of weeds and plant growth in excess of 8 inches which is paid for by the owner of the property.
3683 Alarm Board Revenue – Fines collected on false alarms after having six free alarms.
3711 Meeting Fees – Planning & Zoning - Reimbursements by developers and zoning petitioners for the Planning & Zoning Commission hearing attendance collected in the Retained Personnel Fund.
3715 Annexation Income – Amount collected as determined by the annexation agreement.
3720 Operating Fees – Amount collected through permit fees on behalf of the school districts, fire district and library district from the developer to pay its fair share of public improvements that may be required because of the new development. These fees are paid out to the districts monthly.
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3730 Engineering Fees – Reimbursements by developers for expenses paid for contracted engineering advice and service in the Retained Personnel Fund.
3735 Legal Fees – Reimbursements by developers for expenses paid for legal fees in the Retained Personnel Fund.
3740 Fees – Developers – Miscellaneous – Reimbursements by developers for miscellaneous expenses such as recording fees in the Retained Personnel Fund.
3745 Gravel Mining/Annexation Agreement – Amount received per the annexation agreement for the gravel pit within the City.
3750 Refunds – Developers – Amount paid by developers for a retained personnel deposit that is over and above the expenses and will be refunded to the developer.
3760 Received from Developers – Amount collected from developers as contributions to public improvements such as signs, traffic signals, intersection improvements, etc.
3775 Developer Donations – Schools – Amount collected through permit fees on behalf of the school districts from the developer to pay its fair share of public improvements that may be required because of the new development. These fees are paid out to the school districts annually.
3780 Developer Donations – Parks – Amount collected through permit fees for parks from the developer to pay its fair share of public improvements that may be required because of the new development.
3785 Developer Donations – Library – Amount collected through permit fees on behalf of the library district from the developer to pay its fair share of public improvements that may be required because of the new development. These fees are paid out to the library district annually.
3790 Developer Donations – Fire – Amount collected through permit fees on behalf of the fire district from the developer to pay its fair share of public improvements that may be required because of the new development. These fees are paid out to the fire district annually.
3815 Donations – Amount donated to the City for various reasons.
3830 Employer Contributions – Actuarial contrived amount that the City contributes to the Police Pension Fund.
3831 Employee Contributions – Amount collected from employees for benefits provided by the City.
3832 Cable Franchise Fees – Amount charged to a cable television company for the use of public right-of-ways.
3835 Garbage Bags – Amount collected for the sale of garbage stickers to residents.
3845 Rental Income – Rent charged for the use of municipal properties including Main Street Station, Hickory Creek Farm, farmlands, water towers, the marina, etc.
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3881 Reimbursement – Communication Desk – Amount charged to agencies that the City provides dispatching services for.
3882 Reimbursement – Miscellaneous – Reimbursement for expenses for city services provided such as school resource officers, traffic control, snowplowing, etc.
3885 Reimbursements – Property Insurance – Insurance payments for property damage within the City.
3890 Miscellaneous Income – Revenue that does not fit into other categories such as handicap placards, lien fees, collection fees, adjudication court fees, etc.
3915 Bond Interest Rebate – Interest rebate issued to the City from the Department of the Treasury Internal Revenue Service for Recovery Zone Economic Development Bonds and Build America Bonds.
3920 Sale of Fixed Assets – Proceeds from the sale of municipal owned fixed assets.
3969 Transfer – TIF – Internal Fund Transfer from the TIF Fund to cover debt service fees.
3970 Charges for Services – Internal Fund Transfer from the Water/Sewer Fund to cover administrative costs for the issuance of utility bills.
3971 Transfers – Annexation Fund – Internal Fund Transfer from the Annexation Fund to cover debt service fees.
3972 Transfers – Recreation Center Fund – Internal Fund Transfer from the Recreation Center Fund to cover debt service fees.
3975 Transfers – General Fund – Internal Fund Transfer from the General Fund to cover debt service fees, capital expenses, insurance expenses, and information technology expenses.
3978 Transfers – Water/Sewer Fund – Internal Fund Transfer from the Water/Sewer Fund to cover debt service fees, utility division expenses, insurance expenses, and information technology expenses.
3986 Transfers – Motor Fuel Tax Fund – Internal Fund Transfer from the Motor Fuel Tax Fund to cover debt service fees.
3994 Transfers – SSA #4 – Internal Fund Transfer from the SSA #4 Fund to cover expenses for the Lakewood Road Utility.
3999 Transfers – Other Funds – Internal Fund Transfer from miscellaneous special revenue funds and internal service funds to cover items such as fireworks, risk management, etc.
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Expenses
4010 Salaries – Regular – Salary expense for employees who work 40 hours or full time.
4020 Salaries – Sworn – Salary expense for sworn police department employees who work 40 hours or full time.
4030 Salaries – Regular Part-time – Salary expense for employees who work less than 40 hours, but are employed throughout the calendar year.
4050 Salaries – Regular Overtime – Salary expense paid to non-exempt non-sworn employees at one and one-half times or two times the employee’s regular hourly rate for all hours worked in excess of forty hours per week.
4055 Salaries – Regular Sworn Overtime - Salary expense paid to non-exempt sworn employees at one and one-half times the employee’s regular hourly rate for all hours worked in excess of forty hours per week.
4060 Salaries - Snow Removal Overtime - Salary expense paid to non-exempt non-sworn employees at one and one-half times or two times the employee’s regular hourly rate for all hours worked in excess of forty hours per week for snowplowing.
4080 Salaries – Career Ladder – Salary expense paid to sworn police department employees for on-call and investigator stipend pay.
4100 Salaries – Seasonal/Part-time – Salary expense for employees who work less than 40 hours per week and can be seasonal help.
4220 Salaries – Boards & Commissions – Salary expense for the Mayor, Council members, the City Clerk and the Planning and Zoning Commissioners.
4310 Health Insurance – Expenses for employee group medical insurance premiums.
4320 Dental Insurance – Expenses for employee group dental insurance premiums.
4330 Life Insurance – Expenses for employee group life insurance premiums for city provided coverage at $30,000.
4340 Vision Insurance – Expenses for employee group vision insurance premiums.
4410 Contribution - FICA – The employer contribution of Social Security and Medicare, which is currently at 7.65% of eligible wages.
4420 Contribution IMRF – The employer contribution of IMRF for all employees covered under the IMRF program.
4430 Contribution Police Pension – The amount provided through property tax collection for the Police Pension Fund. This amount is determined by an actuarial study conducted on an annual basis.
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4510 Uniform Allowance – Expenses for uniforms and personal protective equipment provided for those public service employees required to wear uniforms while performing their jobs.
4910 Retirement Benefits – Retirement benefits paid to police pension beneficiaries who apply for a regular pension.
4920 Disability Benefits – Retirement benefits paid to police pension beneficiaries who have been found to have a duty disability. This type of pensions must be approved by the Police Pension board.
4930 Survivor Benefits – Retirement benefits paid to the surviving spouse of a police pension beneficiary.
4940 Non-Duty Disability Benefits - Retirement benefits paid to police pension beneficiaries who have been found to have a non-duty disability. This type of pensions must be approved by the Police Pension board.
4990 Contribution Refund – Refund of police pension contributions made by a sworn employee that is no longer employed with the City. The employee must request a refund from the pension fund.
5110 Contractual Services – Expenses that are based on a contract or are paid on a monthly basis such as mowing, PACE fees, copier lease payments, bank service charges, miscellaneous building charges, etc.
5200 Contract Custodial – Expenses for monthly janitorial serves at the Recreation Center.
5215 Retention/Promotion – Expenses for promotional materials for the Recreation Center.
5220 Engineering Fees – Expenses paid for contracted engineering advice and service in the Retained Personnel Fund, which are reimbursed by the developers.
5230 Legal Services – Expenses for contracted legal advice and services.
5245 Health HRA Reimbursement – Employee health insurance reimbursement expenses paid by the city that covers expenses above the in-house set deductible up to the insurance carrier’s deductible.
5310 Postage & Meter – Expenses for postal related services such as stamps, bulk mailings, overnight deliveries, UPS, etc.
5320 Telephone – Expenses for telephone lines, alarm circuits, and cellular phone services.
5321 Cable/TV – Expenses for monthly cable television service at the Recreation Center.
5330 Printing & Publishing – Expenses for advertisements such as employee recruitment ads, bid notices, legal notices, and other required notices. Expenses also for the city newsletter and printing of vehicle sticker notices and utility bills.
5370 Repair & Maintenance – Expenses for routine maintenance on municipal vehicles.
37
5375 Repair & Maintenance – Equipment – Expenses for routines maintenance on municipal equipment.
5380 Repair & Maintenance – Utility System – Expenses for routine maintenance on municipal utility systems.
5410 Dues – Expenses for membership dues for various professional organizations.
5420 Travel Expenses – Expenses paid for travel related costs such as mileage, tolls, per diem, lodging for conferences and training for employees on municipal business.
5430 Training – Expenses including registration fees, tuition, etc. for attendance at professional conferences and meetings for professional development.
5440 Tuition Reimbursement – Expenses for tuition that covers successful completion of course work with proof of a passing grade or certification.
5450 Publications – Expenses for books, magazines, periodicals, pamphlets, maps, subscriptions, training materials, etc. used for professional development.
5510 Utilities – Monthly expenses for utilities used by municipal buildings including electric and natural gas.
5520 Street Lighting – Monthly expenses for electric usage for street lights throughout the city.
5580 Disposal – Expenses for sludge removal at the wastewater plant.
5600 Credit Card/Bank Fees – Expenses for monthly credit card and banking fees charged to the Recreation Center.
5950 MCMRMA Fees – Expenses for McHenry County Municipal Risk Management Agency annual fees for insurance that covers unemployment, workers compensation, car insurance, liability, fire, theft, property damage, etc.
5960 Insurance Premiums – Miscellaneous – Expenses for notary bonds and public official bonds.
5980 Property Damage – Expenses to repair municipal property damage that will be covered with insurance.
6110 Materials & Supplies – Expenses for operating materials & supplies such as custodial cleaning supplies, garbage stickers, miscellaneous building supplies, police training supplies, ammunition, badges, etc.
6111 Supplies – Custodial – Expenses for contracted custodial services at the Recreation Center.
6120 Supplies – Childcare – Expenses for small toys, books, and art supplies for the childcare room at the Recreation Center.
38
6130 Supplies – Safety – Expenses for first aid and other miscellaneous safety items for the Recreation Center.
6141 Office Furniture/Equipment – Expenses for desks, chairs, and other small equipment at the Recreation Center.
6142 Fitness Equipment – Expenses for fitness balls, bands, mats, cardio equipment, etc. at the Recreation Center.
6210 Bulk Office Supplies – Expenses for pens, pencils, paper, staples, binders, folders, calendars, ink, etc.
6250 Gasoline & Oil – Expenses for gasoline and oil used for municipal vehicles.
6270 Small Equipment & Tools – Expenses for equipment and tools used to maintain municipal equipment and personnel such as body armor, evidence equipment, weed trimmers, shop tools, etc.
6290 Safety & Personal Protection Equipment – Expenses for personal protective equipment provided to employees such as goggles, boots, chest waders, etc.
6310 Police – Canine Unit – Expenses for training, food, veterinarian bills, etc. for the sworn canine officer.
6340 Police – Forfeiture Expenses – Expenses that are paid for using police forfeiture funds that must be tracked separately.
6920 Special Events – Expenses for community festivals and events such as the fireworks, community pool party, daddy/daughter date night, etc.
6940 Administrative Expenses – Expenses for notary fees, secretary of state fees for vehicles, county recording fees, holiday lighting, real estate taxes, etc.
6945 Development Expense – Sales tax incentive payments based on the terms of the development agreement.
6950 Forestry – Expenses for the tree program including trees, watering, chainsaws for trimming, tree removal, etc.
6960 Miscellaneous Expenses – Expenses for miscellaneous items not previously covered such as insurance processing fees.
6961 Miscellaneous Refunds – Expenses for refunds of retained personnel deposits that are not used for development expenses.
6965 Reimbursements – Flexible Spending – Expenses paid to employees from their flexible spending accounts for qualified medical expenses.
6970 Distributions – Schools – Permit fees that are collected on behalf of the school districts from the developer to pay its fair share of public improvements that may be required because of the new development. These fees are paid out to the school districts annually.
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6980 Distributions – Library - Permit fees that are collected on behalf of the library district from the developer to pay its fair share of public improvements that may be required because of the new development. These fees are paid out to the library district annually.
6990 Distributions – Fire - Permit fees that are collected on behalf of the fire district from the developer to pay its fair share of public improvements that may be required because of the new development. These fees are paid out to the fire district annually.
7100 Bond Principal – Amount paid for principal payment on bonds.
7110 Capital Lease Principal Payments – Amount paid for principal payments on capital leases. Capital leases are used when the item is going to be purchased when the term of the lease is over.
7200 Bond Interest – Amount paid for interest payments on bonds, which are charges paid on the principal based on an agreed upon rate.
7300 Fees – Paying Agent – Amount paid to an escrow agent for various filings for the issued bonds.
8100 Land Acquisition – Amount used for the purchase of land.
8200 Buildings – Amounts paid for the acquisition and improvements to municipal buildings.
8300 Equipment – Amount paid for the acquisition of equipment costing $5,000 or more such as machines, shop equipment, playground equipment, mowers, etc.
8400 Vehicles – Amount paid for the acquisition of vehicles and the necessary equipment to use the vehicle.
8500 Utility System – Amount paid for the acquisition and improvements to the water and sewer utility systems.
8600 Streets – Amount paid for improvements to municipal streets.
8800 Park Improvements – Amount paid for improvements to municipal parks.
8900 Public Improvements – Amount paid for the acquisition and improvements to other miscellaneous municipal capital items.
9510 Depreciation – Amount charged as an expense for an expired portion of a fixed asset.
9901 Transfer – General Fund – Internal Fund Transfers from the Tourism Fund to cover miscellaneous special events with hotel/motel taxes.
9904 Transfer – Debt Service Fund – Internal Fund Transfers from various City funds to cover annual bond interest and principal costs for City projects.
9920 Purchase Service – Risk Management – Internal Fund Transfers from General Fund Departments as well as Water/Sewer Fund Departments and Information Technology Fund to
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cover the insurance premiums for McHenry County Municipal Risk Management Agency. These premiums cover unemployment, workers compensation, car insurance, liability, fire, theft, property damage, etc.
9921 Purchase Service – Billing General Fund – Internal Fund Transfers to the General Fund for the water and sewer portion of costs that are paid for by the finance department for billing administrative duties and water/sewer bill mailings.
9922 Purchase Service – Information Technology – Internal Fund Transfer to cover information technology expenses for all departments within the city. These expenses include salaries and benefits for Information Technology employees as well as computers, supplies, and software used in all City departments.
9923 Purchase Service – Audit Fund – Internal Fund Transfer to cover the external auditing annual fees for all funds within the City.
9930 Transfer – Water/Sewer Fund – Internal Fund Transfer to the Water and Sewer Divisions to cover Utility Division expenses.
9936 Transfer – Utility Improvement Fund – Internal Fund Transfer from the Water and Sewer Divisions to cover Capital expenses for the Utility System.
9942 Transfer – Capital Improvements Fund – Internal Fund Transfer from the General Fund Departments to cover capital charges for items that are over $10,000 and have a useful life of over 5 years.
9944 Transfer – Band Fund – Internal Fund Transfer from the General Fund to cover the music in the park weekly event. This covers the expenses for the municipal band as well as community bands that perform.
9945 Transfer – Civil Defense Fund – Internal Fund Transfer from the General Fund for expenses to train personnel and maintain the early warning system equipment to protect and defend the City from natural disasters or man-made environmental disasters through early warning and public notification systems.
9946 Transfer – Capital Equipment Fund - Internal Fund Transfer from the General Fund Departments to cover capital vehicle and equipment charges for items that are over $10,000 and have a useful life of over 5 years.
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Fiscal Year 2017/2018 Annual Budget
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Summary of Proposed Revenues - All Funds
43
Comparison of Budget vs. Proposed Revenues - All Funds
44
Summary of Revenues and Other Financing Sources - All Funds Source 2016/17 2017/18 Dollar Change % Change Property Taxes 5,503,481 5,335,632 (167,849) -3.05% Sales Taxes 8,666,156 9,124,742 458,586 5.29% Intergovernmental Revenue 3,724,532 3,713,305 (11,227) -0.30% Licenses & Fines 1,194,663 1,248,800 54,137 4.53% Services Charges 9,098,355 9,929,793 831,438 9.14% Interest Income 766,350 988,250 221,900 28.96% Bond Proceeds - - - 0.00% Transfers 14,434,614 10,628,412 (3,806,202) -26.37% Other Financing Sources 2,218,254 3,307,329 1,089,075 49.10% Total 45,606,405 44,276,263 (1,330,142) 2.92%
Property Taxes
12%
Sales Taxes
21%
Intergovernmental
Revenue
8% Licenses & Fines
3%
Services
Charges
22% Interest Income
2%
Bond Proceeds
0%
Transfers
24%
Other Financing
Sources
8%
2017/18 Budget Revenues by Source
45
Summary of Proposed Expenditures - All Funds
46
Comparison of Budget vs. Proposed Expenditures - All Funds
47
Expenditures by Function - All Funds
Function 2015/16 2016/17 2017/18 Dollar Change Percent Change General Government 2,671,601 2,885,346 3,149,240 263,894 9.15% Public Safety 10,878,779 11,720,746 13,320,586 1,599,840 13.65% Public Works 10,524,971 10,910,981 10,104,060 (806,921) -7.40% Culture and Recreation 2,390,632 2,314,459 2,588,042 273,583 11.82% Capital Projects 6,515,725 5,504,831 2,504,879 (2,999,952) -54.50% Community Development 741,793 996,900 1,051,032 54,132 5.43% Debt Service 1,556,555 1,653,799 1,666,722 12,923 0.78% Other 3,598,808 3,859,574 4,190,051 330,477 8.56%
Total 38,878,864 39,846,636 38,574,612 (1,272,024) -3.19%
General
Government
8%
Public Safety
35%
Public Works
26%
Culture and
Recreation
7%
Capital Projects
6%
Comm. & Econ. Dev.
3%
Debt Service
4%
Other
11%
2017/18 Budget
Expenditures by Function*
48
Fiscal Year 2017/2018 Annual Budget
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General Fund Revenues, Expenditures & Fund Balance Summary
General Fund Overview The General Fund represents the core revenue and expense fund for municipal functions. General Fund Revenues are comprised of Intergovernmental sources such as Property Tax, State Sales Tax, Local Sales Tax, State Income Tax, State Replacement Tax, State Pull Tabs, Inter Track Wagering, State Communications Tax, and State Grants; Local Sources such as Franchise Fees, Licenses and Permits, Fines and Forfeitures, Charges for Services, and Interest Income; and Miscellaneous sources such as Donations and Reimbursements for Services. General Fund Expenses include personnel, contractual, supplies and other operating expenses related to the following operating budgets - Administration (100.01), Elected Officials (100.02), Community Development (100.03), Finance (100.04), Police Commission (100.21), Police (100.22), Police Dispatch (100.23), Public Works-Administration (100.30), Public Works-Streets (100.33), and Parks and Recreation (100.41).
Please reference the spreadsheet found at the end of this section titled “General Fund –
Revenues, Expenditures and Fund Balance Summary” for the following discussion.
General Fund Revenues, Expenditures and Fund Balance Summary In summary, FY17/18 proposed General Fund Revenues and Expenditures reflect total revenues of $21,830,317 (an increase of $1,453,304 or 7.1%) and total expenditures of $21,829,044 (a decrease of $897,562 or 3.95%, less capital) – a difference (revenues over expenditures) of $1,273. While specifics will be detailed in the discussion that follows, the primary reasons for increases in revenues relate to projections for State and Local Sales Taxes (an increase of $458,586 combined), the projection for Video Gaming revenues (an increase of $135,000), and Reimbursements related to services provided through the full opening of the Police Dispatch Center (an increase of $1,117,519). These are offset by decreases to Property Tax revenues by action of City Council at 3% ($167,849), State Income Tax receipts ($26,992), and Fines and Forfeiture revenues ($127,700). In regards to expenditures, Personnel costs are proposed to increase by $1,451,454 (9.6%) due primarily to the full staffing of the Police Dispatch Center ($726,186), Police wages and benefits ($311,830), and Police Pension costs ($349,975). It should be noted that a portion of the Police Dispatch Center costs are offset by General Fund Revenue increases in the form of reimbursements (Row 22) from dispatch partner agencies and customers. Notably, FY17/18 General Fund Expenditure proposed Contractual costs are only $21,564 (1.13%) higher than FY16/17 and Supply costs reflect a decrease of $243,320 (23.47%). Finally, the FY17/18 Expenditures, as identified in this attachment, do not yet include any transfers for Capital Improvement or Capital Equipment projects (Column I, Row 34). While this topic will be presented for discussion later in this document, it is important to understand that any Capital Improvement or Capital Equipment projects implemented in FY17/18 would be funded through the General Fund Fund Balance Assigned for Capital. Importantly, due to estimated FY16/17 General Fund Revenues of $20,984,647 (Column H, Row 26), or $607,634 (3.0%) HIGHER than the budgeted amount of $20,377,013 (Column G, Row 26) and estimated FY16/17 General Fund Expenditures of $22,390,468 (Column H, Row 35), or $336,138 LOWER than the budgeted amount
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of $22,726,606 (Column G, Row 35), the resulting impact is that we will be able to reduce the transfer from the General Fund Fund Balance amount assigned for Capital from the budgeted amount of $2,349,593 to $1,405,821 (Row 39), a difference of $943,772. This amount will be added to the amount assigned for capital. Further, carrying the General Fund Revenue and Expenditure estimates through the end of the fiscal year (April 30th), it is projected that the total General Fund balance ending FY16/17 and beginning FY17/18 will be $9,025,466 (Column I, Row 8). As defined in the Fund Balance and
Reserve Policy this would result in a 120 day General Fund Balance Reserve of $7,271,548 (Column I, Row 7) and a General Fund Assigned to Capital amount of $1,753,918 (Column I, Row 6). A note of caution however, the FY16/17 Estimated General Fund Revenues and Expenditures are just that, estimates, and it is anticipated that some year-end budget amendments will be required for the Police Dispatch Center (based outstanding seizure and grant funding) and sales tax incentives which may impact the final expenditure amounts. This would also impact the ending and beginning General Fund Fund Balance amounts.
General Fund Revenues – FY16/17 Budgeted, FY16/17 Estimated, FY17/18 Proposed General Fund Revenues are derived from a number of sources – taxes, video gaming, licenses and permits, fines and forfeitures, franchise fees, charges for services, reimbursement for services, donations, interest income, and other miscellaneous sources. While some revenues, like Property Taxes, can be clearly identified and anticipated based on the adoption of the annual property tax levy, or based on historical performance, other revenues – such as Sales Taxes and State Income Tax – can be volatile based on economic trends. If anything, the economic recession of 2007/2008 sent a message to local governments that economic-based revenues are not guaranteed and can fluctuate based on the economy and disposable income. Actions taken at the local level to plan/adjust from this event resulted in the establishment of a “new norm” for future budget considerations. Further, given the budget crisis of the State of Illinois provides for continuing fiscal uncertainty since decisions at the state level can have an immediate and devastating impact on state-shared revenues. This has been realized through recent actions such as delayed state-shared revenue payments resulting in municipalities having to utilize fund balances or make operational adjustments to decrease expenditures, and in analyzing the State’s more recent threat of reducing the Local Government Distributive Fund (LGDF) by 50%. There is even currently legislation being promoted that would eliminate all income tax sharing, which would result in a $2.7 million reduction in revenues for McHenry. As such, in estimating General Fund Revenues for the purpose of budget development, the City Administration takes a conservative approach in order to: 1) ensure that General Fund Revenue projections are not overstated, to avoid deficit spending and the need to utilize the General Fund reserves (e.g., 120 day unassigned fund balance); 2) limit excessive increases in operating expenditures; and 3) maintain a financial “buffer”, in the form of an Unassigned General Fund Reserve, to protect the City from future unforeseen economic threats. Utilizing this philosophy, the City Administration then considers past revenue performance, current economic trends, local economic conditions, and economic forecast models developed by the Illinois Municipal League (IML) for use by local governments in developing revenue projections for the purpose of budget development.
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FY16/17 Budgeted Revenues (Column G) In FY16/17 total budgeted General Fund Revenues were $20,377,013. Of this, $5,135,208 (25.2%) was from Property Taxes, $6,808,038 (33.4)% was from the City’s 1% share of the State Sales Tax, $1,858,118 (9.1%) was from the .5% Local Sales Tax, and $2,753,184 (13.5%) came from the City’s share of the State Income Tax. Revenues derived from these four (4) sources were budgeted at $16,574,548 or 81.3% of total General Fund Revenues. Of the remaining $3,802,465 (18.7%) in budgeted General Fund Revenues, $1,157,086 (5.7%) were from Charges for Services, $925,863 (4.5%) from Reimbursement for Services, $521,000 (2.6%) from Fines and Forfeitures, $317,663 (1.6%) from Licenses and Permits, $313,000 (1.5%) from Franchise Fees, $245,000 (1.2%) from Video Gaming, and the remaining $352,853 (1.7%) came from all other sources combined.
FY16/17 Estimated Revenues (Column H) The following estimated revenues are based on 10-months of actual revenues and then projected through the remainder of the fiscal year (April 30, 2017). Unfortunately, in some cases this estimation is more difficult than simply dividing 10-month actual by 10 and multiplying by 12 because of when specific revenues are received. Further, FY16/17 Actual revenues will not be known and confirmed until approximately 2-3 months (June-July) after the close of the fiscal year due to the timing involved with the receipt of state-shared revenues and, ultimately, the completion of the annual audit in September/October 2017, 4-5 months in to the budget year. At this time, estimated General Fund Revenues are projected to be $20,984,647 or $607,634 (3.0%) higher than FY16/17 Budgeted revenues of $20,377,013. This reflects an estimated increase of $325,004, or 1.6%, from FY15/16 Actual revenues of $20,659,643. Notably, FY16/17 Estimated Revenues, when compared to FY15/16 Actual revenues and FY16/17 Budgeted revenues, highlight the following:
• (Row 10) State Sales Tax revenue is projected to be $305,494 (4.5%) higher than budgeted however just $74,495 (1.1%) higher than the FY15/16 Actual amount.
• (Row 11) Local Sales Tax revenue is projected to be $40,693 (2.2%) higher than budgeted however this amount is $31,696 (1.6%) lower than received in FY15/16.
• (Row 10 + Row 11) Combined, total Sales Tax revenue is estimated to be $346,187 (4.0%) higher than budgeted but just $42,799 (0.48%) higher than the FY15/16 Actual. As anticipated by staff, this is indicative of a “leveling off” of sales tax revenues based on the impacts of an economic recovery. Also, Local Sales Tax revenues do not include the sale of licensed or titled items – such as cars, boats, motorcycles, etc. As such, while the economic recovery and resulting increase in the sale of licensed vehicles had a positive impact on the City’s portion of the State Sales Tax, this aspect has had no impact on Local Sales Tax revenues.
• (Row 12) State Income Tax receipts are estimated at $102,019 (3.7%) lower than budgeted and $109,641 (4.0%) lower than FY15/16.
• (Row 17) Video Gaming revenues are estimated to be $290,158, or $45,198 (18.4%) higher than budgeted and $18,050 (6.6%) higher than FY15/16.
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• (Row 20) Fines and Forfeitures revenues are estimated to be $123,001 (23.6%) lower than budgeted and $8,453 (2.1%) lower than FY15/16 due to one-time seizure funds that are anticipated from the federal government for services provided by the McHenry Police Department.
• (Row 22) Reimbursements for services revenues are estimated at $293,216 (31.7%) higher than budgeted and $466,092 (61.9%) higher than FY15/16. This is primarily due to the dispatch consolidation and cost reimbursements by partner and customer agencies for dispatch services. In summary, FY16/17 Estimated Revenues are projected at $607,634 higher than budgeted primarily due to State and Local Sales Tax receipts and Reimbursements directly related to the consolidation of dispatch services. However, when compared to FY15/16 Actual revenues, total General Fund Revenues increased just $325,004 (1.6%).
FY17/18 Proposed Revenues (Column I) FY17/18 Proposed General Fund Revenues represent an increase of $1,453,304 (7.1%) from FY16/17 Budgeted revenues and an increase of $1,170,674 (5.7%) from FY15/16 Actual revenues. Highlights of changes to General Fund Revenues proposed for FY17/18 include:
• (Row 9) Based on Council action to reduce the property tax levy by 3%, Property Tax revenues are proposed to decrease by $167,849 (3.27%) from the FY16/17 Budgeted amount.
• (Row 10) State Sales Tax revenues are proposed at $7,176,624, $368,586 or 5.41% higher than FY16/17 Budget.
• (Row 11) Local Sales Tax revenues are proposed at $1,948,118, an increase of $90,000 (4.8%) from FY16/17.
• (Row 10 + Row 11) Combined State and Local Sales Tax revenues are proposed at $9,124,742, an increase of $458,586 (5.3%) from the FY16/17 Budget amount.
• (Row17) Video Gaming revenues are proposed at $375,000, a $130,000 (53.1%) increase from FY16/17 Budget amount.
• (Row 21) Fines and Forfeitures revenues are proposed to decrease by $127,700, or 24.51% from the amount budgeted in FY16/17.
• (Row 22) The most significant increase in revenues is directly due to the proposed increase of $1,117,519 in Reimbursements related to the full opening of the Police Dispatch Center on May 1, 2017 and the resulting revenues derived from partner and customer agencies served through this facility. While there is the potential for increased revenues through the addition of more customers in the future, this revenue increase from pre-FY16/17 to the FY17/18 Proposed amount represents the revenue adjustment for this source. In summary, FY17/18 Proposed Revenues are $1,453,304 (7.13%) higher than budgeted in FY16/17 and $845,670 (4.0%) higher than FY16/17 Estimated revenues. The primary reasons for the proposed increase include new revenues derived from the establishment of the Police Dispatch
53
Center ($1,117,519), an increase in the City’s portion of the State Sales Tax ($368,586), and a proposed 53.1% increase in Video Gaming revenues ($130,000). These increases are offset by reductions to Property Tax revenues of $167,849 (3.27%), State Income Tax receipts of $26,992 (.98%), and Fine and Forfeitures of $127,700 (24.51%).
General Fund Expenditures – FY16/17 Budgeted, FY16/17 Estimated, FY17/18 Proposed General Fund Expenditures include personnel, contractual, supplies and other operating expenses related to the following operating budgets - Administration (100.01), Elected Officials (100.02), Community Development (100.03), Finance (100.04), Police Commission (100.21), Police (100.22), Police Dispatch (100.23), Public Works-Administration (100.30), Public Works-Streets (100.33), and Parks and Recreation (100.41). In addition, the General Fund is the funding source for all capital improvement and capital equipment projects that are not related to water and/or sewer improvements or maintenance projects as these are funded through the Water and Sewer Fund and Capital Development Fund. General Fund capital improvement and capital equipment projects include any project over $10,000 related to public facility improvements and maintenance items, police vehicle and equipment acquisition or replacement, non-police vehicle acquisition or replacement, park improvements, and stormwater/drainage improvements. As a frame of reference, the FY17/18-FY21/22 Capital Improvement Program contains more than $89 million in projects, including more than $45 million in local street improvements. Without a doubt, the needs identified in the Capital Improvement Program far exceed the funding available for them. Finally, the General Fund also serves as a funding source for revenue transfers to other municipal accounts found within Special Revenue Funds, Debt Service Funds, Internal Service Funds, and Fiduciary Funds.
FY16/17 Budgeted Expenditures (Column G) In FY16/17 budgeted expenditures were $22,726,606. While this amount reflected an increase of $2,347,942 (11.5%) from the FY15/16 Actual expenditures (Column F, Row 35), much of this increase was due to the addition of a Project Engineer position in Public Works, Supplies specifically related to the tree replacement program (with revenues for this program coming from McHenry County), and increased Capital Improvement and Capital Equipment expenditures. Importantly, FY15/16 Actual expenditures were $280,979 less than FY15/16 Actual revenues.
FY16/17 Estimated Expenditures (Column H) In general, City Administration – including Department Directors, Superintendents, Managers – closely monitor expenditures throughout the year to ensure that operating budgets stay within the approved amounts. Fiscal diligence on behalf of all of these individuals most often results in expenditures being less than the amount budgeted. This then can be reviewed and adjusted accordingly as part of the succeeding year budget development. For FY16/17, expenditures are estimated at $22,390,468, or $336,138 (1.5%) less than the budgeted amount of $22,726,606. Highlights of changes to FY16/17 Estimated Expenditures include:
• (Row 29) Reduced Personnel costs of $279,447 (1.8%) resulting from the fact that funding was budgeted in FY16/17 in anticipation of a new IUOE 150 (Public Works, Parks) bargaining contract. However, since this contract has not been renewed, the budgeted
54
money remains unspent. Further, reduced expenditures are the result of delayed hiring for the Police Dispatch Center.
• (Row 30) Contractual costs are estimated at $80,967 (4.3%) less than budget.
• (Row 31) Supply costs are estimated at $122,107 (11.8%) less than budget. This is largely due to reductions in commodity prices such as gasoline and utilities.
• (Row 32) Other estimated expenditure increases of $115,317 (24.2%) are attributable primarily to estimated payments for sales tax incentives. Note: City Administration anticipates changes to FY16/17 Estimated expenditures due to increases or decreases in revenues and expenses through the end of the fiscal year. For example, while we know that the Police Dispatch Center project will require a budget amendment this is contingent upon the receipt of anticipated seizure revenues and the potential for reimbursement by the State of Illinois through the 911 Board. As such, the exact amount of any budget amendments is not yet known.
FY17/18 Proposed Expenditures (Column I) FY17/18 Proposed expenditures represent an increase of $532,017 (2.34%) from the FY16/17 Budget amount of $22,726,606 (Column G, Row 37). It is important to note that the FY16/17 Budget amount includes a transfer of $2,349,593 (Column G, Row 39) from the General Fund and the FY17/18 Proposed amount includes a transfer of $1,428,306 (Column I, Row 39) from the General Fund. Removing these capital transfers from both the FY16/17 Budget amount and FY17/18 Proposed amount results in an operating to operating increase of $1,453,304 (7.1%) from FY16/17 Budget to FY17/18 Proposed. Highlights of changes to General Fund Expenditures proposed for FY17/18 include:
• (Row 29) Personnel costs are proposed at $1,451,454, or 9.59% higher in FY17/18 than budgeted in FY16/17. Personnel costs include salaries, overtime, health/dental/life/vision insurance, FICA, IMRF retirement, and uniforms. There are number of reasons for this increase. 1. Due to the construction and establishment of the Police Dispatch Center consolidation and the expansion of employees for this consolidation, costs associated with Police Dispatch overall personnel costs are proposed to increase by $726,186 from FY16/17 to FY17/18. This represents 50% of the overall Personnel cost increase. It is important to note that, due to the Intergovernmental Agreements with the City of Woodstock, City of Harvard, and McHenry Township Fire Protection District, McHenry is responsible for only 48.6% ($352,026) of this amount. The remaining 51.4% ($373,259) is reimbursed by the identified partners and is reflected in General Fund Revenues in the Reimbursement line (Row 22). 2. Personnel costs related to salaries only for employees covered by non-dispatch (FOP Unit 2) collective bargaining units – IUOE Local 150 (Public Works, Parks employees) and FOP Unit 1 (Police Patrol) – account for $344,255 (23.7%) of the identified increase from FY16/17 to FY17/18. 3. Police Pension costs are proposed at $1,874,219, an increase of $349,975 or 22.96%. Police Pension costs are determined by an actuary retained by the Police
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Pension Board and are based on a number of factors, including wages, investment rate, and age of the workforce. The City has committed annually to funding the amount determined by the actuary in order to meet a required deadline for full funding by 2030. 4. Non-bargaining unit employees and Police Sergeants account for a total of $101,281 (7.0%) of the Personnel cost increase. Police Sergeants and other non-bargaining employees receive wage increases based on a combination of the previous year’s Consumer Price Index for All Urban Areas (CPI-U), which was 2.1% in 2016, and an opportunity for an additional merit increase based on performance evaluations. The target increase average for FY17/18 for these employees is 2.75%, with some employees receiving less than this amount and some receiving more. This will be addressed later as part of the Personnel Summary – Wages discussion.
• (Row 29) Contractual costs are anticipated to rise by $21,564 (1.13%) from the amount budgeted in FY16/17.
• (Row 30) Supplies expenditures are proposed to be reduced by 23.47% ($243,320) primarily due to lower commodity costs (i.e., gasoline and utilities).
• (Row 31) Other expenditures are anticipated to rise by $233,400 (48.88%) primarily due to the increase in the Finance Department “Development Expense” line item related to sales tax rebates.
General Fund – Fund Balance On February 1, 2016 City Council adopted a new Fund Balance and Reserve Policy that, in summary, established principles and parameters to which balances for all municipal funds would be defined at the beginning of each budget period. This policy, which also meets the reporting requirements of Government Accounting Standards Board (GASB) Statement 54, which requires the formal adoption of a policy for the classification of fund balances to categories other than “unassigned”, was established to provide financial stability in the various municipal funds, ensure adequate cash flow for operations, and provide some assurance that the City will be able to respond to emergencies with fiscal strength. In regards to the General Fund Fund Balance, specifically, the Fund Balance and Reserve Policy states:
“General Fund – The unrestricted fund balance target should be set at 120 (4 months)
of estimated operating expenditures including those expenditures reported in other
Governmental Funds that receive annual operating transfers, with the exception of
transfers intended to fund capital projects. If the unreserved fund balance falls below
120, a plan will be developed to return to the target balance. If the unreserved fund
balance reaches a low of 90-day (3 months), the plan will be implemented to return to
the fund balance to the target within a reasonable amount of time. One time revenues
shall not be used to fund current operations.”
This level of fund balance shall provide the capacity to:
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• Offset unexpected downturns in elastic revenues due to fluctuations in the local,
state and national economies or the loss of major sales tax contributor(s);
• Offset negative fiscal changes brought about by action or legislation of another
unit 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. As identified, the parameters in this policy help to guide the City Administration in the development of the annual budget by ensuring that the General Fund Budget is presented as balanced, revenues over expenditures, while maintaining this reserve. Further, the establishment of the target minimum of 120 days provides clarity in identifying the level of funding that is available – once revenues, expenditures and fund balance are identified – to address the City’s capital needs. In other words, any funds remaining after meeting the operational and reserve needs of the municipality are “Assigned for Capital.” Based on the Fund Balance and Reserve Policy and estimated revenues and expenditures through the end of FY16/17 (April 30), it is estimated that the FY17/18 beginning General Fund Fund Balance will total $9,025,466 (Column I, Row 8). Of this amount, approximately $7,271,548 is identified as meeting the General Fund 120 Day Operating Reserve (Column I, Row 7), with the remaining approximate $1,753,918 (Column I, Row 6) being identified as the General Fund Assigned for Capital amount.
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Fiscal Year 2017/2018 Annual Budget
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General Fund Operating Budgets - Overview This section includes the budgets for all operating departments funded through the General Fund. General Fund Operating Departments include - Administration (100.01), Elected Officials (100.02), Community Development (100.03), Finance (100.04), Police Commission (100.21), Police (100.22), Police Dispatch (100.23), Public Works-Administration (100.30), Public Works-Streets (100.33), and Parks and Recreation (100.41). While these expenditures have already been summarized, in total, as part of the previous discussion of General Fund Revenues and Expenditures, the information contained in each of the following sections will provide details regarding each operating department. The narrative below is a summary overview of sections that follow.
General Administration (100.01) Overall, the Administration operating budget is proposed to increase by $4,587 or .32% in FY17/18. Salary/Benefit costs are identified to increase by a net of $26,906, or 3.4% and Health Insurance expenditures are proposed to increase by $10,906, or 12.11%. Contractual Services expenditures – which includes the mosquito abatement program, participation in the countywide Dial-A-Ride program, building maintenance for the municipal center and human resources costs (Human Resources does not have a separate budget) related to wellness and the employee assistance program - are identified for a net decrease of $18,790 (3.9%) due to a decrease in the amount of funding that the City pays for public transportation services as part of the Dial-A-Ride Program in the Contractual line item and a reduction in Utilities of $3,500. Also, a wage and compensation survey is recommended for funding in the amount of $15,000 in FY17/18 to evaluate internal and external equity existing positions. Over time, many positions have been consolidated, expanded, eliminated and the compensation scale was skewed in response to the economic recession. With 50% of employees eligible for retirement in the next 5 years and the filling of internal openings through interdepartmental transfers, it is important that wages are realistic and competitive to be able to attract and/or retain skilled employees. Corporate Legal Fees include the City Attorney, Traffic Attorney and Collective Bargaining representation. Supplies expenditures are proposed to be reduced by $450 and Other expenditures – which includes Administrative Expenses and internal transfers for Risk Management and Information Technology – is proposed to be reduced by $3,079.
Elected Officials (100.02) The Elected Officials budget is proposed for only a $470 increase, or .47%, based on an increased internal transfer for Information Technology services.
Community Development (100.03) The Community Development budget is proposed at a decrease of $6,681, or .78%. Salary/Benefit costs are budgeted to decrease by $3,015 (.42%), including decreases in Health, Life and Dental Insurance. Contractual Services are identified to increase by $338 (.66%), with an
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increased commitment to staff training in plan review, code enforcement and property management. Approximately 75% of property maintenance costs are recovered through liens. Supplies will decrease by $5,650 (40.65%), while the internal transfer for Information Technology will increase by $3,222.
Finance (100.04) Salary/Benefit costs are anticipated to decrease by $7,839 (1.89%), Contractual costs increase by $4,105, and Supplies decrease by $500. The most significant information in the Finance budget, and one that impacts the General Fund overall, are Development Expenses (Row 39) related to active sales tax agreements. This expense is identified to increase $235,000, or 56.63%, from the FY16/17 Budget. Of these agreements, the Development Agreement with the Gary Lang Auto Group is responsible for the greatest amount of sales tax reimbursement due to the increases in new vehicle sales.
Police (100.22) The Police budget is proposed at an overall increase of $696,243, or 8.11% from FY16/17. While costs have been reduced in many line items, Salary/Benefit costs are identified to increase by $666,683 due to adjustments to FOP bargaining unit salaries ($175,148), health insurance costs ($136,682) and, most significantly, the transfer for Police Pension of $349,975. This increase is $212,036 more than the increase from FY15/16 to FY16/17 and in the two prior fiscal years the increases were $95,383 (FY13/14 – FY14/15) and $91,104 (FY14/15 – FY15/16). As discussed earlier Police Pension costs are determined by an actuary retained by the Police Pension Board and are based on a number of factors, including wages, investment rate, and age of the workforce. The City has committed annually to funding the amount determined by the actuarial in order to meet a required deadline for full funding by 2030.
NERCOM (North East Regional Communications) Dispatch Center (100.23) FY17/18 represents the first full year of operation for the fully developed, and staffed, dispatch center. The costs budgeted and estimated for FY16/17 represent the transition period from former dispatch operations. As such, FY17/18 establishes the baseline budget for the dispatch center moving forward. The total amount proposed for the dispatch center in FY17/18 is $2,480,592. As a reminder, this amount is offset by more than $1.2 million as a result of the partnerships with the City of Woodstock, City of Harvard and McHenry Township Fire Protection District and through charges for dispatch services paid by customers of the dispatch center. These are reflected as General Fund Revenues and included in Rows, 22 and 23 of the General Fund – Revenues,
Expenditures and Fund Balance Summary sheet.
Public Works Administration (100.30) The overall Public Works Administration budget is proposed to decrease by $341,222 (43.32%) primarily due to the retirement of the Superintendent of Forestry in FY16/17 and the transfer of municipal forestry functions to the Public Works Streets Division. Therefore, there are decreases in both the Salaries/Benefits section and Supplies section of this budget reflecting this transfer.
Public Works Streets (100.33)
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The FY17/18 Public Works Streets budget is proposed to increase by a total of $157,073 (5.52%) from FY16/17. As identified above, this is primarily due to the transfer of forestry functions from Public Works Administration to Public Works Streets. With the retirement of the Superintendent of Forestry in FY16/17, this position function was reevaluated and instead of replacing the position at the Superintendent level, a 3rd crew leader position was added to the Streets Division. The Public Works Streets staff that had previously been identified to work with the Superintendent of Forestry were placed under the new crew leader and this unit is responsible for the majority of tree maintenance, removal and planting responsibilities of the city. Additionally, Repair and Maintenance costs have been increased to account for higher maintenance costs of aging vehicles, and Materials and Supplies costs are proposed higher to account for increased road repair (gravel, asphalt) and street lighting costs.
Parks and Recreation (100.41) As a reminder the Parks and Recreation budget encompasses not only personnel and other operational costs of the Parks Maintenance Division, which includes bargaining unit employees, but also all programming expenses related to the Recreation Division not associated with the McHenry Recreation Center. Revenues from recreation programming, reflected in General Fund Revenues, offset many of these costs. As proposed in FY17/18, Salary/Benefit costs are identified to increase by a total of $53,366 (3.76%); Contractual Services to decrease by $21,167 (4.54%); Supplies to increase by $13,200 (7.39%); and, Other costs to increase by $540.
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Personnel Summary of Wages – All Funds
Overview Prior to presenting a summary of General Fund operating departments it is important to define that the “4010 Salaries” budget line items in each operating budget include more than just employee wage costs but also includes annual payouts for sick time per the City’s Personnel Manual. In addition, the 4010 line item for all but the Police budget is a combined total of both bargaining and non-bargaining employees within that specific budget. As such, the 4010 line items in each operating budget show different percentage variances. In an effort to provide the reader with a more accurate summary of wages, staff has developed the following Personnel Summary – Wages Only (All Funds) sheet. This sheet includes a summary of wages only (e.g., no benefits, sick day buyouts, etc.) as an overview of all municipal departments (Rows 6 – 12), and identifies the net then by operating budget and/or fund (Rows 15 – 69). Each summary presents non-bargaining and bargaining employees separately and identifies the FY16/17 Budgeted wages (Column E), FY16/17 Estimated wages (Column F), FY17/18 Proposed wages (Column G), the monetary variance from the FY16/17 Estimated wages and the FY17/18 Proposed wages (Column H), and the percent variance from the FY16/17 Estimated wages to the FY17/18 Proposed wages (Column I). Note that Columns H and I is a comparison of estimated
to proposed wages as distinct from a budgeted to proposed comparison since the FY17/18
Proposed wages are based on an increase from the FY16/17 Estimated wages. In general,
significant increases or decreases in dollar amounts and percentages, as identified, are the
result of employee reassignment or reclassification or increases and decreases in the actual
number of employees. One example of this is the decrease in Public Works – Administration (Row 46) based on the retirement of the Superintendent of Forestry and reclassification of this position as a Public Works – Street Crew Leader position resulting in the increase to the Public Works - Streets budget (Row 51). Another, more significant, example is the increase in the FOP Bargaining Unit 2 (Rows, 11, 35, 41) based on the hiring of dispatchers for the Police Dispatch Center. As a reminder, 51.4% of these costs are offset through our partnerships with the City of Woodstock, City of Harvard, McHenry Township Fire Protection District, and customers of the dispatch center and these revenues are reflected in General Fund Revenues.
Non-Bargaining Unit Employees FY17/18 is the third year that non-bargaining employee wages are to be determined based on a combination of an identifiable “Cost of Living Adjustment” (COLA) in the form of the previous calendar year’s Consumer Price Index for All Urban Areas (CPI-U) and merit. Previous to this (and before the 2007/2008 recession), non-bargaining employees received automatic “step” adjustments each year (which were in the range of 3% - 4%) and a COLA increase. While annual evaluations were undertaken, the actual amount of wage increase was not merit-based. The Consumer Price Index (CPI) is a measure of the average change in prices over time in a fixed market basket of goods and services. The CPI for All Urban Consumers, or CPI-U, applies to approximately 88% of the nation’s population, including McHenry County. CPI-U is an economic indicator and is the most widely used measure to determine inflation and indexation (i.e., adjusting income payments). As a component of McHenry’s compensation system for non-bargaining unit employees, the CPI-U ending in December of each year, as determined by the United States Bureau
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of Labor Statistics, serves as the base salary increase the succeeding municipal fiscal year (May 1st). To be eligible for this base increase an employee must receive an overall average of at least 3.0 out of 5.0 on the Annual Employee Performance Evaluation. Individuals falling below a 3.0 are not eligible for a CPI-U adjustment and are placed on a performance improvement plan. The CPI-U average since 1992 is 2.128% and the CPI-U for the period ending December 2016 is 2.10% (an increase from .7% in December 2015). In addition, as identified above, non-bargaining employees are also eligible for a merit increase based on the results of annual performance evaluations. This is a percentage of salary over and above the CPI-U wage adjustment and the amount of merit available varies based on funding identified in the budget. Because performance evaluations are not completed until after the budget process an overall average for non-bargaining unit employees is used for the purpose of developing the budget. For FY17/18 this amount is identified at 2.75%. This would provide for a 2.1% CPI-U adjustment with an additional average merit increase of .65%. Therefore, most non-bargaining unit rows will show “2.75%” as the percent variance from FY16/17 Estimated to FY17/18 Proposed. As described earlier, percentages higher or lower than the 2.75% are the result of specific changes within that department resulting in an increase or decrease to the FY16/17 Estimated amount upon which the FY17/18 Proposed amount is based. The FY17/18 Budget, as proposed, includes a net increase (CPI-U + Merit) for all non-bargaining unit employees, including police Sergeants, of $98,490 (Column H, Rows 7 + 8) from the FY16/17 Estimated amount. Of note, the FY17/18 Proposed amount for non-bargaining employees and police sergeants ($4,253,284 – Column G, Rows 7 + 8) is an increase of only $73,869 (1.8%) from the FY16/17 Budget amount of $4,179,415 (Column E – Rows, 7 + 8).
Bargaining Unit Employees Unlike non-bargaining employees, bargaining unit employee wages are not based on merit or the CPI-U. Rather, increases for IUOE 150 (Public Works, Parks), FOP Unit 1 (Patrol) and FOP Unit 2 (Dispatchers, Records Clerks, CSOs) are based on step increases included in their respective collective bargaining unit agreements and negotiated “Cost of Living Adjustments” (COLA). As such, the percentages identified for bargaining unit wages are the result of approved contractual agreements. Significant increases (such as FOP Unit 2) are the result of an increased number of employees or in the transfer of employees from one operating division to another (such as Public Works – Streets and Water, Sewer, Utility). Note that percentage estimates are being used for budgeting purposes for IUOE 150 since we are currently in process of renegotiating this contract. Whether bargaining or non-bargaining, the dollar amounts shown on this sheet are included in the “4010 Salaries” line items of the operating department budgets as presented below.
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Fiscal Year 2017/2018 Annual Budget
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General Administration – Overview The General Administration Budget contains personnel and operational functions related to the provision of general administrative services, economic development, human resources and municipal center building and grounds maintenance. The Office of the City Administrator, which includes the positions of City Administrator, Deputy City Clerk/Executive Assistant, is responsible for providing management services, budgeting, legislative support, and communications to elected officials, staff, and the general public in carrying out the policy and direction as set by the City Council. The Deputy City Administrator is responsible for overseeing Administrative Services, Information Technology, and Building and Grounds maintenance of the municipal center. Currently, the Deputy City Administrator is also responsible for direction of the Parks and Recreation Department. The Director of Economic Development plays a key role in carrying out the business retention, expansion and attraction activities of the city and serves as the primary point of contact for all economic development-related business activities of the municipality. This position also coordinates closely with the Director of Community Development in assisting with planning and zoning activities. The Human Resources Manager coordinates the employee and risk related functions of the City. This includes compensation, benefits, wellness, staffing, recruitment & selection, internal policies, workers compensation and safety, performance management, labor relations, and employee relations, training, and process improvement. The City has grown to have an average of 275 full and permanent part time employees. During the summer season this increases to around 330 employees.
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General Administration – Organizational Chart
City Administrator
Derik Morefield
Deputy City
Administrator
Bill Hobson
Information
Technology
Information Technology
Manager
Ed Larson
Information Technology
Specialist
Aaron Greve
City Hall Building
Maintenance
City Hall Custodian
Doran Maldanado
Economic Development
Director
Doug Martin
Human Resources
Manager
Ann Campanella
Deputy City Clerk/
Executive Assistant
Marci Geraghty
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General Administration – FY16/17 Accomplishments
Administration
• Developed 5-year Capital Improvement Program (CIP).
• Presented a balanced FY16/17 Budget for City Council consideration.
• Presented a revised Purchasing and Procurement Policy for consideration by City Council.
• Developed and implemented a new budget presentation format to enhance readability and transparency of the document. In addition, coordinated with Department Directors to identify departmental Performance Measures.
• Developed a new municipal website through GovOffice to provide information to our residents, invite visitors and businesses to our community, offer transparency in government, and provide increased opportunities for interaction such as bill payment, FOIA submittal, permit application, etc.
• Upgraded audio/visual capabilities of City Council Chambers to be able to digitally record City Council meetings for viewing by residents on YouTube, Facebook and through the City website.
• Successfully coordinated with the Public Works Director and Human Resources Manager to recruit and hire a Project Engineer in the Department of Public Works.
• Directed the development of a new master agreement with the City Engineering firm and the pre-qualification of other engineering firms for obtaining competitive bids for various engineering services.
• Negotiated and facilitated the transfer of boat ramp rights through the development of an Intergovernmental Agreement with the Village of Lakemoor and the Village of Johnsburg for the construction of a ramp at Miller Riverfront Park.
• Coordinated with the Police Department and architects to develop scope of services, pre-qualification, bid documents and selection of firm for relocation of Police Administration offices and build-out of expanded dispatch center.
• Collated and developed information for three (3) City Newsletters (2 print, 1 online).
Economic Development
• Hosted Real Estate Broker Open Houses/Forums (February 11, 2016; July 27, 2016 and December 14, 2016 (ED Forum).
• Maintained active blog, McHenry Market Pulse, to engage community and provide consistent and accurate information as it relates to economic development and confirm/dispel rumors.
• Attended at the 2016 International Council of Shopping Centers Convention in Las Vegas.
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• Attended half-day introduction, along with representatives from District 156 on INCubatoredu.
• Assisted developer in first steps in obtaining additional property at Ringwood/120 to develop new BP Prototype-attended multiple District 15 Finance Committee meetings.
• Recognized Jessup Manufacturing and Steffan’s Jewelers at City Council meetings (worked with State DCEO to get letters sent from Governor Rauner); Proclamations; attend Jessup 60th Anniversary Celebration (toured Lake Bluff facility).
• Attended State of Illinois CORE Training (work with CD/ED Office Assistant Dorothy Wolf on Business Retention Information/Database Tracking).
• Worked with Public Works Director in obtaining right-of-way from property owner for Bull Valley/Curran Road signalization including amendment to annexation agreement.
• Attended meeting of Illinois Health Facility Review Board (Bolingbrook) for Transformative Living Facility at Lawrence Parkway and Bull Valley Road.
• Assisted Fabrik with Property Tax Abatement Agreement; Industrial Revenue Bonds.
• Assisted with sale of Oaks at Irish Prairie to Avanti Properties.
• Presentation to Heartland Realtor Organization.
• Assisted McHenry Savings Bank-Resubdivision of Park View Plaza (right-hand turn lane from Route 31).
• Worked with City Attorney on Lease Buyouts for Verizon, New Cingular and T-Mobile Leases-City receives lump sum payments.
• Created Table/Matrix of Permitted and Conditional Uses with CD/ED Office Assistant Dorothy (Broker Open Houses).
• Sent letters to all new businesses thanking them for locating in the City; expanding, etc.
• Attended McHenry Area Chamber of Commerce Business Scrambles (April and November).
• Worked with McHenry County Highway Division and the Cities of Woodstock and Crystal Lake on promoting Pace Paratransit Program and assessing future agreements with regards to the same.
• Nominated manufacturers for McHenry County Economic Development Business Champion Awards (2016-eight nominations-three winners: Fabrik, Jessup and JAFrate).
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Human Resources
• Applicant Tracking System – Our first electronic applicant tracking system was technically implemented in late 2015, but full use occurred in 2016. Before the new budget year we will have over 1,000 applications for City positions in our system.
• Electronic Police Officer Applications – the use of AppliTrack allowed HR to convert the 30 page police officer application into an electronic application with the ability to scan and upload all supplemental documents.
• Family & Medical Leave – During this FY this law has been communicated and the process streamlined for the City to be compliant with the record keeping. 18 employees have been on FMLA during this year.
• Five Year Staffing Plan- This project has been started and could be complete by the end of the fiscal year. Analyze the current staffing situation, gain feedback from directors on forecasted staffing needs and create a five year plan.
• Employee Relations – A significant amount of time seems to be spent on employee relations/employee conflict issues and performance related issues. Those that need it are receiving the coaching and guidance needed to resolve and improve issues at the employee level. Some larger issues have been referred to employee assistance program (EAP) for a higher level of intervention.
• 457/SBG/Nationwide – Although the surrender charges from SBG was unexpected, the addition of Nationwide as the City’s 457 provider was a win for City employees. Employee satisfaction with their 457 plan and Nationwide has increased tremendously.
• Recruiting & Onboarding – While this is a core component of human resources, this department has recruited a high number of new employees leading to a significant increase in the time spent on pre-employment and employment activities.
• Open Enrollment – Conducted open enrollment nearly one month earlier than in past years. This created more time for employees to think about benefit options and remove open enrollment from the “holiday rush”.
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General Administration – FY17/18 Goals & Objectives
Administration
• Coordinate with newly elected Mayor to ensure a seamless transition and to identify operational, funding, and capital priorities. Serve as a resource for Mayor and newly elected Alderman to update them on municipal functions and projects.
• Finalize construction of Miller Riverfront Park boat ramp and work with Parks and Recreation Committee, City Council, the Village of Johnsburg and Village of Lakemoor to develop policies for the use of this amenity ensuring equitable access by residents of McHenry, Johnsburg, Lakemoor as well as by non-resident users.
• Coordinate with contracted firm and the City Attorney to facilitate the review, updating and codification of the McHenry Municipal Code.
• Coordinate and develop the FY18/19 – FY22/23 5-Year Capital Improvement Program.
• Develop an operationally balanced FY18/19 Budget for consideration by the City Council ensuring that the City maintains, per policy, a 120 day operational reserve and that funding over this amount are assigned and committed to capital improvement and capital equipment projects. Budget should meet or exceed the guidelines established for Distinguished Budget designation by the Government Officers Finance Association.
• Continue engagement with the Illinois Municipal League and other stakeholders to monitor legislation at the State level that may impact municipal funding.
• Engage in discussions with other McHenry taxing bodies regarding the extension of the Downtown Tax Increment Finance District. With consensus, begin the process for this extension to take place.
• Continue to provide leadership and oversight to all departments to provide the highest quality of services in the most cost and time efficient manner to customers.
Economic Development
• Assist property owners in working through development process; working with IDOT, Army Corps, McHenry County, IEPA and other partners to facilitate development.
• Write incentive and annexation agreements and ordinances to facilitate and promote business attraction, retention and/or expansion.
• Work with McHenry County College/Small Business Development Center (business attraction and retention-MCC Manufacturing Breakfast).
• Attend International Council of Shopping Centers Convention in Las Vegas (May 2017).
• Represent City in attending McHenry Area Chamber Mixers, Multi-Chamber Mixers; Ribbon Cuttings and Grand Openings for New Businesses.
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• Assist Community Development, writing amendments to the zoning ordinance, subdivision control and development ordinance and municipal code to assist businesses.
• Continue to serve as member of McHenry County Public Transit Access Committee.
• Attend McHenry County Workforce Network Meetings (serve as proxy for City Administrator).
• Attend Chamber Board meeting if City Administrator is unable to go.
• Coordinate Business Site visits.
• Continue to work with Downtown Businesses and Community Organizations (City, Chamber, Downtown Business Association and Businesses); Coordinate 2017 events across all organizations and joint marketing effort (Downtown Supergroup).
• Assisted with D156 and other partners (MTI Expo) to be annual event.
• Nominate manufacturers for McHenry County Economic Development Business Champion Award).
• Work cooperatively with key property owners and McHenry Area Chamber of Commerce, downtown business owners and other relevant organizations and parties in seeking additional ways to revitalize downtown, working more closely with businesses with the goal being to attract additional investment in the downtown area, retain existing businesses, promote investment in older properties and assist smaller businesses struggling to keep doors open.
Human Resources
• Scheduling & Attendance System - The implementation of an electronic scheduling and time card system will reduce two days of manually processing paper time sheets into an accurate, efficient system. This will also enable employee self service features.
• PowerDMS - The addition of an electronic document management system will enable HR to send legal and policy updates to all employees and obtain electronic signatures indicating each person has received and read the new policy. We can create collaboration groups to share and review contracts, invoices, and other documents. This system contains a training and test taking module.
• Create a new compensation structure - The existing compensation structure is outdated and needs to be updated. A wage and compensation plan is included in the FY17/18 Budget for completion.
• Succession Planning – The Five Year Staffing Plan, completed in FY16/17, will be used as a component to create a citywide, department by department succession plan.
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General Administration – FY17/18 Performance Measures Item Goal Description FY17/18 Proposed Outcome(s)
Capital Improvement Program (CIP) Develop an updated CIP and transmit to City Council in January. Was the CIP updated and transmitted to the City Council in January and approved in February? January 16, 2017 February 3, 2017
Annual Budget Develop and present a balanced operating budget for City Council consideration. Was a balanced operating budget presented for City Council’s consideration? April 3, 2017
GFOA Distinguished Budget Award Presentation Prepare an annual budget that achieves national recognition via the GFOA’s Award Program.
Did the City’s budget for the prior year receive the GFOA’s Distinguished Budget Award? Yes
Resident Complaints/Inquiries Respond to a resident complaint or inquiry within one working day from receipt. % of time that General Administration staff responds within one day. 100%
City Council Committee and Regular Meeting Agenda Packets
City Council committee and regular meeting agenda packets will be distributed no later than the end of business Wednesday prior to scheduled meetings.
% of time City Council Committee and Regular Meeting Agenda packets completed on time. 100%
Cross-training of Administrative Staff
Continue cross-training Administrative Staff to expand the ability to provide a single point of contact/information for municipal services other than Police and Public Works.
Time efficiency can be increased through cross-training Administrative Staff and work towards a single point of customer contact.
Cross-trained Administrative Staff
Complete Update of Personnel Handbook Finish comprehensive review and update of all sections of the City’s Personnel Handbook.
Current Personnel Handbook is dated and all sections need to be reviewed and updated to ensure relevancy and compliance. Handbook Update
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New Business Assistance Packet Create a New Business Assistance Packet New Business Assistance Packet New Business Assistance Packet for Website and Hard copy
Hold Economic Development Forums Hold three Economic Development-Community Forums Community and Economic Development Forums (Three) Three community/public forums to engage in economic development discussion
Facilitate Citywide Marketing Survey/Needs Analysis Citywide marketing study/needs analysis Citywide marketing study/needs analysis Citywide marketing study/needs analysis
Work with D15 and Graham Properties on Redevelopment of NE Corner of Ringwood Road and Illinois Route 120
Facilitate/Assist with John Graham with acquiring property to build new BP Prototype Consummation of Sale of additional property from D15 to John Graham Property required to build new BP Prototype at Ringwood Road and Illinois Route 120
Attend community events, programs to promote City, business, etc. Attend a minimum of 5-7 community events/business site visits Attendance at 5-7 events/site visits Promotion of City, City businesses, City events or events within City
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General Administration – Expenditure Summary Total Expenditures FY13/14 Actual – FY17/18 Proposed
FY17/18 Proposed Expenditures by Type
$-
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
FY13/14
Actual FY14/15
Actual FY15/16
Actual FY16/17
Budget FY16/17
Estimated FY17/18
Proposed
$1,591,556
$1,302,493
$1,433,426 $1,435,293 $1,367,819 $1,444,783
$822,007
57%
$462,860
32%
$63,200
4%
$96,716
7%
Personnel
Contractual
Supplies
Other
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78
79
Fiscal Year 2017/2018 Annual Budget
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Elected Officials - Overview The Elected Officials Budget contains personnel and operational functions related to the elected positions of the municipality. These include the Office of the Mayor, the seven (7) Aldermen, and the City Clerk. The primary functions of these elected positions are described below. The Office of the Mayor provides leadership, initiative, and direction necessary to provide quality services to the citizens of McHenry. The Mayor interacts continuously with the appointed City Administrator in ensuring that the established policies and ordinances of the municipality, as set by the City Council, are carried out by the various departments, divisions and employees of the city. The City Council, comprised of seven (7) Aldermen representing geographically defined wards and elected to staggered four (4) year terms, is the legislative body for the City of McHenry. The authority of the City Council is expressed during regularly scheduled City Council Meetings (1st and 3rd Mondays of the each month) through the adoption of policies, resolutions, ordinances and other related actions as deemed appropriate to promote and protect the high level of service quality and financial stability of the City. The City Clerk, elected every four (4) years, has the responsibility for taking minutes for all regular City Council meetings, Council Committee meetings, Committee of the Whole meetings, and Planning and Zoning Board meetings. The City Clerk is also responsible for records management of the municipality. The City Clerk is assisted in these efforts by a designated Deputy City Clerk who is also a full-time employee of the city.
Susan E. Low Mayor
Victor A Santi Alderman Ward 1 Andrew Glab Alderman Ward 2
Jeffrey A Schaefer Alderman Ward 3 Scott Curry Alderman Ward 4
Richard Wimmer Alderman Ward 5 Patrick Devine Alderman Ward 6
Geri A. Condon Alderman Ward 7
Janice Jones City Clerk
Marci Geraghty Deputy City Clerk
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Elected Officials – Expenditure Summary Total Expenditures FY13/14 Actual – FY17/18 Proposed
FY17/18 Proposed Expenditures by Type
$-
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$160,000
$180,000
FY13/14
Actual FY14/15
Actual FY15/16
Actual FY16/17
Budget FY16/17
Projected FY17/18
Proposed
$142,658 $144,818
$161,420
$100,516 $94,194 $100,986
$58,023
58%
$17,150
17%
$200
0%
$25,613
25%
Personnel
Contractual
Supplies
Other
82
83
Fiscal Year 2017/2018 Annual Budget
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Community Development - Overview The Department of Community Development is responsible for promoting the health, welfare, safety and quality of life to McHenry citizens, property owners, visitors and commercial interests. These services are provided by an experienced and professional staff that consists of one Plan Reviewer, Commercial Building Superintendent, Residential Building Superintendent, Plumbing Inspector, and a Code Enforcement Officer. The administrative staff within the department includes two Administrative Assistants and one part-time Office Assistant. The Department relies on a partnership with local and regional government and public agencies, community based organizations and the business community to succeed in its mission. The Department of Community Development strives to achieve the highest level of customer service and professionalism in helping the community thrive. Additionally, the Department of Community Development coordinates closely with the Director of Economic Development to ensure that business expansion, relocation and development projects remain top priorities for review and that processes are streamlined to the extent possible while maintaining the appropriate attention to detail in regards to applicable codes and other guidelines.
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Community Development – Organizational Chart
Community Development Director Ross Polerecky
Commercial Building Inspector Ryan Schwalenberg Residential Building Inspector Bill Regner
Plans Examiner 1 Jake Marino
Plumbing Inspector Guy Smale Code Enforcement Officer Jean Headley
Administrative Assistant Dorothy Wolf Administrative Assistant Peggy Vlcek
PT Office Assistant Julia Heil
Economic Development Director Doug Martin
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Community Development – FY16/17 Accomplishments
• Reviewed accessory structure ordinance within Department and with Community Development Committee and made recommendations for changes.
• Lighting and sound ordinance was reviewed and changes presented to Community Development Committee for further consideration at the Council level.
• Hired a new Plan Reviewer, bringing a high level of experience in computer technology and customer service.
• Provided the City Council with an expanded overview of the code compliance process.
• Thoroughly reviewed the adjudication process at the Community Development Committee level, recommended changes to the ordinance that were brought to Council by the Police Department.
• Developed and presented a balanced budget.
• Focused efforts on code compliance.
• Updated Building Codes to the 2015 Code cycle.
• An emphasis was focused on the backflow program in order to follow state guidelines for tracking and testing backflow devices.
• Installed a new large document scanner to allow for the digitalization of plans and permits.
• Successfully reviewed and issued plans for larger projects like the White Oaks Memory Care and Fabrik Molded Plastics.
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Community Development – FY17/18 Goals & Objectives
• Create a more user-friendly Community Development section on city website, including more educational information about code compliance and building processes, downloadable forms and requirements, and a backflow survey.
• Complete the review and implementation of a new teardown ordinance.
• Review fee structure for all permits.
• Explore new ideas to increase interest in residential development.
• Continue efforts to digitize historical building documents.
• Identify areas within the Municipal Code that are in need of updating.
• Increase efforts with Economic Director to retain and attract new business to McHenry.
• Coordinate Business Site Visits, particularly new businesses, and build relationships with all businesses.
• Continue efforts to maximize the use of the BSA software and explore the cost of the citizen portal that allows citizens and contractors to submit electronically.
• Work with the Illinois Department of Health on establishing guidelines for new water service and fire service installations.
• Continue a focus on customer service enhancements.
• Continue to coordinate with Administration to cross-train point of service employees with a goal of establishing a seamless, single point of customer contact.
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Community Development – FY17/18 Performance Measures Item Goal Description FY17/18 Proposed Outcome(s)
Review Fee Structure
To review all fees related to Community Development and make recommendations for changes to the City Administrator and City Council
Were fees reviewed and recommendations made to the City Administrator and City Council Implementation of new fee structure
Community Development Website To review, update and expand Community Development information on website Was the Community Development website improved Addition or expansion of useful Community Development on the website
Business Visits
To coordinate with the McHenry Township Fire Protection District and Economic Development Director to conduct business visits during the year
Was there coordination and did visits take place during the year Identification of businesses that were visited throughout the year and issues that were identified and addressed
Cross-training for Single Point of Service
To coordinate with Administration Staff with the goal of creating a single point of contact for Municipal Center customers seeking services or information
Did cross-training of personnel take place during the year
To have all Community Development and Administration customer service personnel cross-trained to provide a single point of customer contact
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Community Development – Expenditure Summary Total Expenditures FY13/14 Actual – FY17/18 Proposed
FY17/18 Proposed Expenditures by Type
$-
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
$900,000
FY13/14
Actual FY14/15
Actual FY15/16
Actual FY16/17
Budget FY16/17
Estimated FY17/18
Proposed
$582,470 $620,498 $654,569
$858,219 $819,651 $851,538
$717,482 84%
$51,750 6%
$8,250 1% $74,056 9%
Personnel
Contractual
Supplies
Other
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91
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Fiscal Year 2017/2018 Annual Budget
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Finance - Overview
Mission Statement It is the mission of the Finance Department to account for all municipal resources and to apply such resources in a manner that is most beneficial to the citizens of McHenry. The primary operating functions of the Finance Department are as follows:
• Administration: Responsible for management of financial affairs of the city, including budgeting and financial planning, and supervision of operations within the department.
• Accounting: Provides the City’s financial reporting, payroll processing, accounts payable and receivable, purchasing, fixed asset reporting, special tax collections, billing, and auditing functions.
• Revenue: Collects various revenues, manages the Police Pension fund, ensures payments to retirees are processed, and invests idle City funds.
Note that the Finance Department expenditures include, under “Other”, transfers to other funds.
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Finance – Organizational Chart
Finance Director Carolyn Lynch
Finance Specialist Accounts Payable Anne Kranz Finance Specialist Accounts Receivable Bonnie Rostron Finance Specialist Utility Billing Debbie Glick
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Finance – FY16/17 Accomplishments
• Completed analysis on water/sewer usage and capital rates in order to ensure operating and capital expenses are covered.
• Implemented the new IEPA loan debt service fee and analyzed number of users to ensure annual debt service expenses will be covered with the debt service fee revenue.
• 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 by including estimated current year actuals on summary sheets as well as changing the outline of the data.
• Recognized by the Government Finance Officers Association (GFOA) with the Distinguished Budget Award for the FY16/17 Budget document. This is the second year in a row that the City has received this award.
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Finance – FY17/18 Goals & Objectives
• Improve management of the City’s investment portfolio, including implementing cash flow modeling and investment strategies.
• Create a procedure manual for all duties within the finance department including screenshots of the Tyler software to help with cross training.
• Begin cross training within the Finance Department to ensure vacancies can be covered.
• Improve communication of information to new residents.
• Implement a new electronic payment method for all bills, which will create efficiencies because payments will no longer have to be manually posted.
• 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.
• Submit FY17/18 Budget to the GFOA for consideration for the Distinguished Budget Award.
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Finance – FY17/18 Performance Measures Performance Item Performance Goal Performance Measure FY17/18 Proposed Outcome(s) Quarterly Reports Develop an update quarterly reports and transmit to the appropriate board. Was the quarterly report updated and transmitted to the board quarterly? September 2017, December 2017, March 2018, and June 2018
Annual Budget Develop and present a balanced operating budget for City Council consideration. Was a balanced operating budget presented for City Council’s consideration? April 2018
Annual Audit Continually have an unqualified audit opinion Whether or not an unqualified opinion has been issued An unqualified opinion issued on the 17/18 audit presented to council in September or October of 2018.. Customer and Vendor Concerns/Complaints Return all calls within one business day % of Time that Finance Department Responds to Calls within one business day 100% of the time respond to calls within one business day.
Annual Budget Award Annually apply for the Illinois Government Finance Officers Association (IGFOA) budget award
Annual application of budget award submitted to the IGFOA Apply once budget has been approved by the City Council
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Finance – Expenditure Summary (Operating Only) Total Expenditures FY13/14 Actual – FY17/18 Proposed
FY17/18 Proposed Expenditures by Type
$410,000
$420,000
$430,000
$440,000
$450,000
$460,000
$470,000
$480,000
$490,000
FY13/14
Actual FY14/15
Actual FY15/16
Actual FY16/17
Budget FY16/17
Estimated FY17/18
Proposed
$439,344
$474,405
$449,985
$480,892
$466,485
$476,658
$407,098
85%
$62,560
13%
$7,000
2%
Personnel
Contractual
Supplies
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100
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Fiscal Year 2017/2018 Annual Budget
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Police Commission – Overview The purpose of the Police Commission is to select sworn personnel in accordance with the employment policies of the City of McHenry, as well as investigate conduct hearings regarding any sworn member of the McHenry Police Department. Expenditures FY13/14 Actual – FY17/18 Proposed
$- $2,000 $4,000 $6,000 $8,000
$10,000
$12,000
$14,000
$16,000 $14,092
$12,539 $12,913
$15,000
$11,720
$15,000
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Fiscal Year 2017/2018 Annual Budget
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Police - Overview
Vision Statement The McHenry Police Department will maintain the highest standards of criminal justice excellence in all aspects of policing. Through these standards the McHenry Police Department will define itself as a leader in the industry by those we serve and protect.
Mission Statement The mission of the McHenry Police Department is to work in a true partnership with our fellow citizens of McHenry to enhance the quality of life in our community.
Agency Values The McHenry Police Department is charged with the responsibility to serve and protect the citizens of McHenry. This is accomplished by protecting life and property, preventing crime, enforcing the laws and maintaining order. Our agency values provide the foundation for our mission and guide us in our effort to meet the vision of the agency. With this mission and vision in mind the McHenry Police Department operates off the core values of; community first, respect for human life, integrity, accountability, cooperation, collaboration, and problem-solving. The McHenry Police Department is the third largest law enforcement agency in McHenry County. Organized into three main divisions of Administration, Support Services and Field Operations, the McHenry Police Department serves and protects the citizens of McHenry and all those who visit. Within each division specialty units are established to meet specific needs of the agency that support our vision and goals. The McHenry Police Department is a community oriented organization that operates off of a problem-solving philosophy. The Administration Division is comprised of the Chief of Police, Deputy Chief of Police and an administrative assistant. The Support Services Division and Field Operations Division are each headed by Division Commanders who report to the Deputy Chief of Police. The Deputy Chief of Police reports to the Chief of Police. All units of the organization are structured under one of the following divisions.
Patrol Division The Patrol Section is the largest component of the Field Operations Division and is responsible for responding to both emergency and non-emergency calls for services from the public. The Patrol Section is divided into three shifts in order to provide 24-hour police services. Each shift or is supervised by two Sergeants. Uniformed Patrol Officers and one Community Service Officer (CSO) are responsible for partnering with the community to protect life and property and to maintain peace, order and safety. In addition, this Division handles special assignments, self-initiated activities and addresses community concerns. They perform ancillary functions such as Evidence Technician, Field Training Officer, Canine Officer, Truck Enforcement, Bicycle Patrol Officer, Street Crimes Officer, Defense Tactics Instructors and Firearm Instructors.
Support Services Division The Support Services Division is comprised of the Investigation Section, Accreditation Unit, Training Unit, Public Relations Unit, Communications Center and Planning/Research/Technical.
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• Detectives work in plainclothes and provide expertise and resources to investigate crimes that happen in McHenry. Detectives are able to investigate crimes that are often complex and may extend over a significant period of time and geographical area. The cases are investigated until an arrest is made or there are no longer leads to pursue. Many of the investigators have received specialized training in areas such as homicide investigations, child abuse, juvenile delinquency, crime scene processing, interviews & interrogations and cyber crime.
• The Accreditation Unit is utilized to revise and draft department policy and ensure that the agency is performing its duties in a manner that is consistent with the Law Enforcement Commission on Accreditation for Law Enforcement standards.
• The Training Unit is responsible for the management of all ongoing training for police personnel. Training includes annual in-house training such as Defense Tactics and Firearms along with all external training. Each officer and civilian employee is required to receive mandated training in accordance with our departmental policy, CALEA standards and Illinois statutes.
• The Public Relations Unit is charged with the responsibility to foster the community orientated philosophy and problem-solving practices of the McHenry Police Department. This is done through multiple community events provided to our citizens by the police.
• The Dispatch Center is the final component of the Support Services Division. This unit has recently been modified to form a partnership with other agencies to create a consolidated dispatch center. As the unit and the employees remain the responsibility of the McHenry Police Department, oversight of this unit’s performance and duties fall under the Support Services Division. The Dispatch Center operates off of a separate budget which is managed by the Chief of Police and Deputy Chief of Police.
• The Planning/Research/Technical sections coordinate the specific planning and research activities of the department, complete short and long term special projects, attend to critical risk management issues and research & write grant proposals. These sections also provide staff services in regards to agency purchases, operations, maintenance, repair and replacement of information technology related programs, systems, software and hardware.
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Police - Organizational Charts Police Overall
Chief of Police John Jones
Deputy Chief of Police John Birk
Commander of Field Operations Paul Funk
Sergeant Day Shift Kevin Cox Sergeant Day Shift Brian McKeen
Sergeant PM Shift Robert Lumber Sergeant PM Shift Nicholas Clesen
Sergeant Midnight Shift Michael Cruz Sergeant Midnight Shift Eric Sexton
Commander of Support Services Thomas Walsh
Sergeant Investigations Ryan Sciame Telecommunications Supervisor Jennifer Synek
Records Clerks Dispatchers
Information Technology Community Service Officers
Administrative Assistant Debora Shuett
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Police Administration
Chief of Police John Jones
Deputy Chief of Police John Birk
Commander of Field Operations Paul Funk Commander of Support Services Tom Walsh
Administrative Assistant Debora Shuett
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Police - Patrol Division
Commander of Field Operations Paul Funk
Sergeant - Day Shift Kevin Cox
Sergeant - Day Shift Brian McKeen
Officer Anthony Mucciante Officer Jill Foley
Officer Marc Fisher Offier Ryan Pardue
Officer James Harris Officer Paul Prather
Officer Patrick Polidori Officer Joshua Conway
Offier Ryan Ehardt Officer Dinka Malik
Sergeant - PM Shift Robert Lumber
Sergeant - PM Shift Nicholas Clesen
Officer Brian Aalto Officer & Duke K-9 Larry Popp
Officer Omar Morales Officer Tanya Stone
Officer Robert Klasek Officer Matthew Voelker
Officer Christina Torkelson Officer Jack Zumwalt
Officer Samuel Shafer Officer Brett Kinney
Sergeant - Midnight Shift Michael Cruz
Sergeant - Midnight Shift Eric Sexton
Officer John Adams Officer Michael Spohn
Officer Matthew Schmitt Officer Robert Beaudoin
Officer Sean Klechak Officer Joseph Lazicki
Officer Eve Kulcsar Officer Bryan Wegner
Officer Katelyn Lorenz Officer Derek Schmidt
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Police – Investigations Division
Commander of Support Services Thomas Walsh
Sergeant - Investigations Ryan Sciame
Detective Robert Roske Detective Adriana Birk
Detective Kelly Ducak Detective Jaimie Prather
School Resource Officer Richard Rewiako School Resource Officer Jason Ducak
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Police – Support Services Division Telecommunications, Records, Community Service Officers, IT
Commander of Support Services Thomas Walsh
Telecommunications
Telecommunications Supervisor Jennifer Synek
Day Shift
Dispatcher Laura Cox Dispatcher Tracy McNamara
Dispatcher Christine Dawson Dispatcher Gwendolyn Allen
Dispatcher Dexter Barrows Dispatcher Patricia Garrett
Dispatcher Maria Joseph Dispatcher Nikki Wilhelm
Dispatcher
Kathi Gallagher
Dispatcher
Chad Peterson
Night Shift
Dispatcher Holly Neville Dispatcher Kelly Schmitt
Dispatcher Justin Leibach Dispatcher Katherine Fitzgerald
Dispatcher Ryan Miller Dispatcher Alexis Chancellor
Dispatcher Charvon Walker Dispatcher Natalie Walker
Dispatcher
Amy McKendry
Dispatcher
Grant Havens
Records, Community Service Officers, IT
Records Clerk Marybeth Varvil Records Clerk Debra Shoemaker
Community Service Officer Stephanie Erb Community Service Officer Dave Porter
IT Specialist Jeffery Forester
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Police – FY16/17 Accomplishments
Personnel
• Dinka Malik was hired on June 20th, 2016 as a Probationary Police Officer. Malik’s previous employer was Silver Star Protection Group as a security officer. Malik served in the United States Marine Corps from 2010 through 2013. Malik had received 20 credit hours through Military Education and an additional 31 credit hours through College of DuPage.
• Eve Kulcsar was hired on June 20th, 2016 as a Probationary Police Officer. Kulcsar was employed by Automated Systems Inc. as a Senior Validation Consultant. Kulcsar obtained her Bachelor of Science degree from Loyola University.
• Bryan Wegner was hired on July 15th, 2016 as a Probationary Police Officer. Wegner was most recently employed by the Richmond Police Department as a part-time police officer.
• Katelyn Lorenz was hired on January 25th, 2017 as a Probationary Police Officer. Lorenz was employed by the Oakwood Hills Police Department as a patrol officer. Katelyn obtained her Bachelor of Arts degree in Communications through DePaul University in 2010.
• Paul funk was promoted on January 16th, 2017 from the rank of Sergeant to Commander of Field Operations.
• Nicholas Clesen was promoted on January 16, 2017 from the rank of Officer to Sergeant.
Training With a continued commitment to training, sworn officers and civilian staff members of the McHenry Police Department participated in over 4,583 hours of training, both internally and externally. Training directly affects the success of service provided to the community and liability placed on the City. Some highlights were:
• Chief Jones and Deputy Chief Birk attended the International Association of Chiefs of Police Conference and received world-renown training in topics that addressed contemporary or emerging issues confronting the law enforcement profession and the leaders of law enforcement agencies worldwide.
• Commander Laura King attended the 10-week program at the FBI – National Academy. The program is attended by law enforcement professionals from around the world. This program serves to improve the administration of justice in police departments and agencies at home and abroad and to raise law enforcement standards, knowledge, and cooperation worldwide.
• Sergeant Brian McKeen and Sergeant Kevin Cox attended the Northwestern University Center for Public Safety’s 10-week School of Police Staff & Command. During the program, McKeen and Cox received upper-level college instruction by top law enforcement executives on topics including leadership, human resources, employee relations, organizational behavior, applied statistics, planning and policy development, and budgeting and resource allocation.
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Advanced training was also conducted in:
• Law Enforcement Administration
• Canine Unit Operations
• Narcotics Investigations
• Weekly Case Law Updates
• Crime Scene Investigations
• Homicide Investigations
• Interview & Interrogations
• Special Response Teams Training
• Rapid Deployment Training
• Firearms Training
• Critical Accident Investigations
• Patrol Operations
• Arson Investigations
Calls for Service In the 2016 calendar year the McHenry Police Department handled 25,533 calls for service through dispatch and police services. This is an increase of 1,022 calls from the 2015 year. The following list highlights types and volume of specific areas of investigation by the department. These investigations resulted in over 400 felony and misdemeanor arrests during the 2016 year.
Homicide 1 Sex Offenses 17 Robbery 2
Burglary 18 Theft 331 Motor Vehicle Theft 6
Weapons Offenses 5 Domestic
Disturbances
443 Drug Investigations 205
Fire Investigations 27 Death Investigations 33 Burglary to Vehicle 89
Juvenile Incidents 85
Community Outreach The McHenry Police Department, in an effort to accomplish the agency mission, participates in many community outreach events each year. Below highlights some of the more notable events from FY 2016/17. Child Safety Seat Installations With support from IDOT Grant Funding and business partners within the community, the McHenry Police Department has seen a growing success with its Car Seat Installation Team. This team offers free installation of child safety seats to members of the community by licensed installation technicians. The department also received a $500 award from Sears Holding Corporation to provide car safety seats to families in need. During FY 2016/17, the Car Seat Team participated in 15 community events. Participating in the statewide effort has helped the children in our community stay safe. Coffee with the Chief Since 2012, Chief Jones has held a program called “Coffee with the Chief” and it has evolved into a partnership with the McHenry Public Library. This public meeting is offered to residents of McHenry as part of the McHenry Police Department’s continued commitment in keeping our
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citizens and community informed about their police department, while the Chief obtains direct feedback. In FY 2016/17, topics presented included Crime Scene Investigations, Crisis Intervention, Police Use of Technology, and the department’s Canine Unit. School Safety In FY 2016/17 the McHenry Police Department presented multiple school safety presentations at the grade school level in our continuing effort to provide a safe environment for our children. These presentations included uniformed officers teaching children on topics such as; Stranger Danger, Summer Safety, Walking to School and Pedestrian Safety. These presentations were done cooperatively with our Adopt-A-School program efforts. In addition, the Department partnered with school administrators to conduct lockdown drills at each school. These drills are conducted to help our schools prepare for a critical incident and are required by state law. In FY 2016/17, the department continued to conduct double the required amount of training and lockdown drills that are required by law. These continued efforts will help insure the safety of our children. Adopt-A-School Program In FY 2016/17, the McHenry Police Department continued Chief Jones’ “Adopt-A-School” program. This plan paired up individual officers with specific grade schools in town to increase awareness and safety within those schools. The program entails individual dayshift patrol officers being assigned there own specific grade school within the community. The objective is for the officers to get to know the faculty and students at their respective school so that the police department can provide a better service. This program involves activities such as foot patrols, classroom instruction blocks, training exercises, and a community approach to solving problems within our schools. The plan is designed to further the McHenry Police Department’s mission of increasing school safety in our local schools. Garden Quarter Community Days This event is a partnership between the Garden Quarter Resource Center and the McHenry Police Department that is aimed at developing lasting relationships between McHenry police officers and the Hispanic youth of our community. Through this event, officers are paired with Hispanic youth to participate in sporting events. These events create lasting relationships between our officers and the youth, so that mentoring can take place. Special Olympics Illinois Special Olympics is a global organization that unleashes the human spirit through the transformative power and joy of sport, every day around the world. Through programming in sports, health, education and community building, Special Olympics is changing the lives of people with intellectual disabilities solving the global injustice, isolation, intolerance and inactivity they face. Special Olympics Illinois provides opportunities for more than 22,500 athletes, more than 20,000 Young Athletes, 45,000 volunteers and thousands more people statewide through 18 area programs in all 102 counties of the state. The Law Enforcement Torch Run is the single largest year-round fundraising vehicle benefiting Special Olympics Illinois. The annual intrastate relay and its various fundraising projects have two goals: to raise money and to gain awareness for the athletes who participate in Special Olympics Illinois. The Law Enforcement Torch Run has raised nearly $43 million over 31 years while increasing awareness of Special Olympics athletes and their accomplishments. In order to raise funds for this worthwhile cause, in May the McHenry Police Department participated in the Cop on Top event at Dunkin’ Donuts on Elm Street. In June several officers
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participated in a leg of the Torch Run that ended at our own Knox Park. The department has plans on participating in more events in the future, including a Polar Plunge and a Plane Pull at O’Hare International Airport. Public Safety Expo In July, the McHenry Police Department, along with the Spring Grove Police Department and the McHenry County Sheriff’s Office, participated in a Public Safety Expo in Johnsburg. The department provided free child identification kits (which included fingerprints and photographs) to parents and assisted those who needed child safety seat inspections and installations. McHenry Police Expo Day On October 23rd, the McHenry Police Department participated in a Police Expo day at Buss Ford. This day was put together by Transitions Hospice and several area police departments participated. In addition to a showing of police vehicles and equipment, a K-9 demonstration, a car seat safety check and a simulated field sobriety station with drunk goggles were offered for all attendees. Buss Form provided food and refreshments during this well attended community event.
Police Facility Expansion/Renovation In FY 2016/17 the McHenry Police Department successfully conducted the first phase of an expansion/renovation project. Within the scope of this project the police administration offices were relocated to the second floor of the building to accommodate their space needs and the front half of the first floor was renovated to accommodate the required expansion of the Communications Center.
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Police – FY17/18 Goals & Objectives Below are the highlighted Goals and Objectives that the McHenry Police Department will focus on during the 2017/18 fiscal year.
• Continue to provide the highest level of police services to the citizens of McHenry.
• Complete the process of developing a hiring list of highly qualified lateral transfers.
• Seek and secure the highest level training opportunities for all agency members.
• Continue and expand the department’s public relations/community involvement programs.
• Assign and train a department member to the duties of public relations/social media liaison.
• Continued support for overall community school safety through the School Resource Officers and the Adopt-A-School program.
• Further development of the department’s Street Crimes Program.
• Continue the department’s Traffic Safety Plan in order to keep our roadway’s safe.
• Maintain fiscal responsibility and reduce any financial burden on the City through grant funding.
• Continue to maintain professional standards by being assessed through the Commission on Accreditation for Law Enforcement Agencies (CALEA).
• Continue to actively partner with other organization such as MCAT, MIAT, NIPAS and ILEAS in an effort to share police resources and reduce operational costs.
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Police – FY17/18 Performance Measures Item Goal Description FY17/18 Proposed Outcome(s)
Crime Rate
Actively suppress property crime and crimes against persons in order to ensure the safety of the McHenry Community and its citizens.
Did UCR reportable property crimes and crimes against person totals stay the same or see a reduction? February 15, 2018
Annual Police Budget Manage police department resources in an efficient and effective manner ensuring that community needs are met
To complete the FY 17/18 by keeping expenditure at or under approved police budget. April 30, 2018
Traffic Crash / Roadway Safety
Create a safe roadway system within the City by enforcing traffic laws in order to create safe driving behavior.
To complete the 2017 calendar year with an overall reduction in traffic accidents.
A reduction is traffic crashes investigated in 2017 as compared to 2016.
Accreditation
To improve the delivery of public safety services, primarily by: maintaining a body of standards, developed by public safety practitioners, covering a wide range of up-to-date public safety initiatives; establishing and administering an accreditation process; and recognizing professional excellence.
To successfully complete on site examination by CALEA in December 2017 and receive re-accreditation for the fifth time in March of 2018.
Re-Accreditation through the Commission on Accreditation for Law Enforcement in March of 2018.
Community Relations
Maintain a strong working relationship with the McHenry Community and its Citizens in order to maintain trust and support in our mission to serve and protect.
1. Improvements to community events such as; Child Safety Seat Installations, Coffee with the Chief, School Safety, Adopt-A-School Program, Garden Quarter Community Days, Special Olympics Illinois, safety Expos and MCPOA Events 2. Improvement to Public Relations and Social Media Interaction. 3. The addition of new community relations .
An increase in attendance to all community events, positive community feedback and the launch of new initiatives by April, 2018.
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Training
Provide the highest level of professional police services with the lowest liability or risk to the City and the Citizens who we serve.
2017/18 McHenry Police Department Training Plan. Illinois Police Training Act 50/ILCS 705/7
Meet or exceed all training requirements in the calendar year 2017, established by departmental policy and Illinois State Statute.
Truck Enforcement
Provide safe passage within McHenry for all motor vehicle traffic as they share the roads with larger and heavier commercial vehicles. Help to maintain the condition of our roadways within the City.
How many commercial vehicles were cited for violations that included; overweight, registration, unsafe loads and unsafe vehicles? How many Oxcard permits were issued for authorized overweight truck traffic?
Reduction commercial vehicle violations from the previous fiscal year.
Grants See alternative ways to fund police related projects that support the mission of the organization.
Annual review of all grant submission applied for and all grant submission awarded.
Awarded grant funding for traffic enforcement and ballistic vest purchases with a minimum of two additional grants to be applied for.
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Police – Expenditure Summary Total Expenditures FY13/14 Actual – FY17/18 Proposed
FY17/18 Proposed Expenditures by Type
$8,000,000
$8,200,000
$8,400,000
$8,600,000
$8,800,000
$9,000,000
$9,200,000
$9,400,000
$9,600,000
FY13/14
Actual FY14/15
Actual FY15/16
Actual FY16/17
Budget FY16/17
Estimated FY17/18
Proposed
$8,750,151
$8,926,637
$9,460,827
$8,584,241
$8,727,162
$9,280,484
$8,386,610
90%
$257,635
3%
$147,940
2%
$473,899
5% $14,400
0%
Personnel
Contractual
Supplies
Other
Capital Outlay
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Fiscal Year 2017/2018 Annual Budget
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NERCOM - Overview
Mission Statement 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. The North East Regional Communication (NERCOM) is in its maiden year of operation. This consolidated dispatch center was the collaboration of four public entities - the partnership between the McHenry Police Department, the McHenry Township Fire Protection District, the Woodstock Police Department and the Harvard Police Department. The collaboration has come into effect due to a state mandate ordering that half of the dispatch centers in McHenry County be closed by July 1st, 2017. In the spirit of cooperation between communities and taxing bodies, and with a goal of increasing efficiency and effectively using public tax dollars, the four above listed agencies proactively created this entity to ensure that they had control of the decision-making regarding dispatch services. Each of the four entities has a vested interest in the success of the new center and are bound together by an Intergovernmental Agreement (IGA). Importantly, this IGA identifies that while NERCOM is housed and the McHenry Municipal Center and daily operational control falls under the McHenry Chief of Police via the Commander of Support Services, each of the four partner agencies serves on the board that establishes operational policies for the functions of the center. Further, each of the partner agencies also has a fiduciary responsibility spelled out by percentage of liability listed in the Intergovernmental Agreement. In short, NERCOM expenses are divided based on the calls for service of the various partners, less revenues derived from the sixteen (16) jurisdictional customers of the center. In an overview of the day-to-day operations of the center, at its optimal staffing level (as of May 1, 2017) NERCOM will be manned twenty-four hours a day, seven days a week, 365 days a year by a minimum of by five dispatchers at all times. Each NERCOM dispatcher will be crossed-trained to be proficient in both police and fire/rescue disciplines of dispatching. NERCOM will also provide Emergency Medical Dispatch services to all of our customers. NERCOM will have one dispatcher assigned as a call taker. This person has the responsibility to discern if the caller is in need of Police services, Fire/Rescue services, or administrative services. The call taker will then “push” the call to the appropriate dispatcher assigned to that function and area of McHenry County. The call will be received by either the fire dispatcher, or the police dispatcher and they will handle the call from start to finish, when appropriate, assuring a
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continuity of service for the entire emergency. This is a vetted system used around the country that relies on scripted narrative that is asked to each caller dealing with a medical emergency. This assures that each caller is asked those questions germane to the medical emergency that they are involved with. This will aid the dispatcher in knowing that he or she has not missed a question important to providing the best of medical service and care. On the police side of dispatching our team of professional dispatchers will make sure that they are giving all of the pertinent information that they gather relating to the call or investigation that the officer is working on. The dispatcher is often times the life line for the officer in the field and he or she is taxed with continually checking the status of that officer via police radio communications and getting him help if needed. Staffing for NERCOM will consist of twenty-one (21) full-time civilian (non-sworn) dispatchers and six (6) parti-time dispatchers working twelve hour rotating shifts. NERCOM is supervised by a full-time civilian Telecommunications Supervisor and falls under the director operational oversight of the Police Commander of Support Services.
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NERCOM - Organizational Chart
NERCOM Board of Directors
Police Chief John Jones
Commander of Support Services Thomas Walsh
NERCOM Supervisor Jennifer Synek
Day Shift
Dispatcher Laura Cox Dispatcher Tracy McNamara
Dispatcher Christine Dawson Dispatcher Gwendolyn Allen
Dispatcher Dexter Barrows Dispatcher Patricia Garrett
Dispatcher Maria Joseph Dispatcher Nikki Wilhelm
Dispatcher Kathi Gallagher Dispatcher Chad Peterson
Night Shift
Dispatcher Holly Neville Dispatcher Kelly Schmitt
Dispatcher Justin Leibach Dispatcher Katherine Fitzgerald
Dispatcher Ryan Miller Dispatcher Alexis Chancellor
Dispatcher Charvon Walker Dispatcher Natalie Walker
Dispatcher Amy McKendry Dispatcher Grant Havens
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NERCOM – FY16/17 Accomplishments
Personnel Significant effort has been put into interviewing and hiring dispatchers in order to be prepared to fully staff NERCOM as of May 1, 2017. This has included the hiring of dispatchers from partner agencies per language in the Intergovernmental Agreements or through a normal hiring process. Through this effort the following individuals have been hired.
• Dexter Barrows was hired on December 27th, 2016 as a full time Dispatcher in our Communications Center. He was a previous full time dispatcher with the Harvard Police Dept. for almost 7 years.
• Maria Joseph was hired on December 27th, 2016 as a full time Dispatcher in our Communications Center. She was a previous full time dispatcher with the Harvard Police Dept. for 4 years and the Marengo Police Dept for 8 years.
• Patricia Garrett was hired on December 27th, 2016 as a full time Dispatcher in our Communications Center. She was a previous Community Service Officer and part time dispatcher with the Harvard Police Dept. for almost 14 years.
• Charvon Walker was hired on December 19th, 2016 as a full time Dispatcher in our Communications Center. She was a previous full time dispatcher with the Harvey Police Dept. for 7 years and the University of Chicago Police Dept for 7 months.
• Nikki Wilhelm was hired on January 2nd 2017 as a full time Dispatcher in our Communications Center. She was a previous full time dispatcher with Cencom Public Safety Communications Center located in Round Lake Beach for 18 months.
• Kimberly Rafalowitz was hired and has a start date of February 6th, 2017 as a full time Dispatcher in our Communications Center. She was a previous full time dispatcher with the Kenilworth Police Dept. for 3 ½ years.
• Chad Peterson will be starting full time as a Dispatcher in our Communications Center on May 1st 2017. He has 20 years of Dispatch experience with the Woodstock Police Dept.
• Kathi Gallagher will be starting full time as a Dispatcher in our Communications Center on May 1st 2017. She has been a part time Dispatcher in our Center for 2 years and has 18 years of Dispatch experience with the Woodstock Police Dept.
• Amy McKendry will be starting full time as a Dispatcher in our Communications Center on May 1st 2017. She has 16 years of Dispatch experience with the Woodstock Police Dept.
• Natalie Walker will be starting full time as a Dispatcher in our Communications Center on May 1st 2017. She has 7 years of Dispatch experience with the Woodstock Police Dept.
Grant Havens will be starting full time as a Dispatcher in our Communications Center on May 1st 2017. He has 3 years of Dispatch experience with the Woodstock Police
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Management of Consolidated Center With the McHenry Dispatch Center moving into consolidation and become NERCOM we anticipated a need for a civilian dispatch supervisor. This person needed to be well versed in the operation of a consolidated dispatch center and not from the traditional mode of a Police supervisor who also ran a dispatch center. The Board of Directors of NERCOM went through a selection process of who would be the best candidate. An outside testing agency was used to assure that the best candidate was chosen. In the end Jennifer Synek was promoted to the position. She has been with the McHenry police Department as a dispatcher for 19 years and has shown that she can run a consolidated center like NERCOM.
Training January 4th -6th 2016 - Jenny Synek attended APCO International training course Communications Center Supervisor held at Fox Lake Police Dept.
• February 9th 2016 – Tracy McNamara attended Mental Health First Aid held in Crystal Lake, IL
• February 24th -26th 2016 – Katie Fitzgerald attended the MABAS Conference held in Springfield, IL
• March 23rd 2016 – Chris Dawson attended a Pipeline Awareness Course held at the Holiday Inn in Crystal Lake, IL
• April 23rd 2016 – Justin Leibach attended CPR Instructor Course- Heartsaver
• April 26th -29th 2016 - Jenny Synek attended IAED – Navigator Conference in Washington D.C.
• June 21st -22nd 2016 – Jenny Synek and Chris Dawson attended EMD-Q refresher course held at the McHenry County Government Center
• August 1st – 3rd 2016 – Alexis Chancellor attended EMD Training held at NW Central Dispatch Center in Arlington Heights, IL
• September 12th & 13th 2016 – Gwen Allen and Kelly Schmitt attended EMD – Q training held at Harvard Fire Dept
• October 19th 2016 – Katie Fitzgerald attended Crisis Negotiations for Dispatchers held at NW Central Dispatch Center in Arlington Heights, IL
• November 6th – 9th 2016 – Jenny Synek attended IPSTA Conference held in Springfield, IL
• December 5th -6th 2016 – Jenny Synek attended NG-911 Workshop held at Illinois State Police in Springfield, IL
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Consolidation The consolidation effort has progressed rapidly in the last fiscal year and should be at its optimal operation by the first day of this upcoming fiscal year, May 1st, 2017. The year showed that the center we were building with the help of our partner agencies, Woodstock, Harvard, and the McHenry Township Fire Protection District had garnered great interest from communities wanting a quality dispatch product and fair pricing. The demand exceeded our estimation and we negotiated dispatch contracts for thirteen other fire and police agencies, in addition to the services we will be providing for the three partner agencies. The success of this partnership would not have been possible without the support and participation of Adminstrative staff and elected officials of each of the communities joining our NERCOM partnership.
Remodeling During this past fiscal year construction has been a constant since its starting on September 6th, 2016. The remodeling consisted of the complete remodeling of the current dispatch center, which at the time consisted of three dispatch work stations. At its completion, the NERCOM dispatch center will house nine dispatch workstations capable of providing emergency dispatch services for 16 police and fire agencies. It will have the capability of expanding even further if the need is there. It will be a state of the art center that will be up to date and will not need to be updated for years to come. With the dispatch center taking up a bigger footprint on the first floor of the building the Police Administration had to be moved out of the first floor to allow for a dispatch supervisors office, break room and conference room, making NERCOM a self contained portion of the city hall building. With the parks department moving out of the second floor of the city hall building and moving into the newly erected Recreation center the Police Department was able to move its administration section to the vacant second floor. FGM Architecture, which was the firm that designed the Recreation center, and has the experience of designing dispatch centers across the Country, was hired to design the new dispatch center and police administration section. A bidding process was conducted to choose a construction company and Stuckey construction was chosen to complete the construction of the center.
Signing of a New 4-Year Collective Bargaining Agreement for Dispatch The current Collective Bargaining Agreement with our Dispatchers expires on April 30th, 2017. With that in mind both the city and Fraternal Order of Police (FOP) decided a proactive approach would be beneficial as the consolidated dispatch center would be coming to fruition on May 1st, 2017 and it was felt that a contract should be in place when this occurs. The dispatch representatives and police administration, along with the City Administrator were able to complete a deal that was beneficial to both parties and it was brought before City Council for approval on December 19th. There approval of the contact allowed us to have it in place, after it was ratified by all members of the dispatch unit.
Community Outreach Participation in Coffee with Chief events at Woodstock, McHenry; in the spirit of local government cooperation Chief John Jones and newly hired NERCOM supervisor Jennifer Synek, spoke at the Woodstock Coffee with the chief in November, at the Woodstock Police Department. The topic was consolidated dispatch centers. The speakers were able to answer question and concerns from citizens of Woodstock, a partner that would be closing their dispatch center located at the Woodstock Police Department on May 1st, of 2017 to join the consolidated center in McHenry.
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Strengthening of NERCOM Partnership With the upcoming consolidation, McHenry Police began the process of creating partnerships with the City of Woodstock and the City of Harvard. Harvard chose to close their center earlier than the consolidation mandate and have been receiving dispatch services from the city of McHenry for a fee starting in December of 2016. Upon the start of the partnership on May 1st, 2017 they will be obliged to pay for a percentage of the operational costs of the center. Woodstock chose to keep their center open until the partnership begins on May 1st, 2017, at which time all of their emergency dispatch services will be provide by NERCOM. They too will be responsible for a percentage of the operational costs of NERCOM. The Leadership of each of these partner entities has been in constant communication and collaboration to assure that the services provided to each of the 16 Police/Fire departments NERCOM will serve is the most reliable and professional in the business. The current McHenry Dispatch Center handled the following calls for service during the 2016 calendar year:
Department Calls for
Service McHenry City PD 25,376 Johnsburg PD 3,787 McHenry Fire 5,548 Marengo Rescue 1,216 Marengo Fire 276 Union Fire 76 Marengo Police 5,119 Harvard PD 5 Mo. 3,000
Total 44,398
With the upcoming opening of NERCOM to all of its partners and customers it is anticipated that the center will be the largest in McHenry County and will handle upwards of 100,000 calls for service in the upcoming fiscal year. Staffing level, work space and equipment upgrading will allow for us to handle this increase in workload without a decrease in the service quality our customer departments have requested.
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NERCOM – FY17/18 Goals & Objectives Below are the highlighted Goals and Objectives that the McHenry Police Department Dispatch Center will focus on during the 2017/187 fiscal year budget. Goals/objectives and justifications will be listed within each of these programs/projects. Ongoing programs and projects from the previous fiscal year will also be identified as the agency’s continued effort in these successful existing programs and projects is also a focus of this fiscal year. Specific budgetary items that have been requested can be found within these programs and projects.
• Improve the quality of services provided to public safety agencies.
• Prepare for growth as defined in the state mandated consolidation requirement.
• Define partnerships and new customers for the center.
• Develop stand alone polices and operational procedures for center.
• Hire additional staff as needed.
• Enhance the training program for dispatch staff.
• Develop a plan and start working towards separate accreditation for NERCOM.
• Ensure that the McHenry Police Department is active in applying for grants related to equipment and personnel funding.
• Develop plan to expand NERCOM 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.
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NERCOM – FY17/18 Performance Measures Performance Item
Performance Goal
Performance Measure
FY17/18 Proposed Outcome(s)
Obtain state certification for Emergency Medical Dispatching
Meet the standard goal of priority dispatch for certification
All telecommunicators shall hold a current EMD certification from IDPH at all times.
Measure will be evaluated continually throughout the year and produced in annual report .
Emergency Call Processing
Initially process 95% of emergency calls within 60 seconds of them being answered.
Telecommunicator shall, within 60 seconds of answering an emergency call, acquire location of incident, phone number of caller, complaint type, and create a dispatchable event OR complete a PSAP to PSAP transfer at least 95% of the time.
Measure will be substantiated through the use of quarterly reporting, which will culminate into an annual report.
Emergency Call Dispatching
Dispatch 95% of emergency calls within 90 seconds of them being answered.
Telecommunicator group shall dispatch at least 95 % of all emergency calls within 90 seconds of them being answered.
Measure will be substantiated through the use of quarterly reporting, which will culminate into an annual report.
LEADS Hot File Entry All Criminal Hot Files will be entered without delay.
Telecommunicator shall, within 60 minutes of receiving all necessary information, complete each Criminal Hot File entry into the LEADS/NCIC database.
Measure will be based on regular auditing of the LEADS CHF records contained within the 911 center.
Non Emergency Call processing. Initially process 95% of emergency calls within 90 seconds of them being answered.
Telecommunicator shall, within 120 seconds of answering a non-emergency call, acquire location of incident, phone number of caller, complaint type, and create a dispatchable event OR complete a PSAP to PSAP transfer at least 95% of the time.
Measure will be substantiated through the use of quarterly reporting, which will culminate into an annual report.
Non-Emergency Call Dispatching Dispatch 95% of non- emergency calls within 150 seconds of them being answered.
Telecommunicator group shall dispatch at least 95 % of all non-emergency calls within 150 seconds of them being answered.
Measure will be substantiated through the use of quarterly reporting, which will culminate into an annual report.
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NERCOM – Expenditure Summary Total Expenditures FY13/14 Actual – FY17/18 Proposed
FY17/18 Proposed Expenditures by Type
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
FY13/14
Actual FY14/15
Actual FY15/16
Actual FY16/17
Budget FY16/17
Estimated FY17/18
Proposed
$- $- $-
$1,737,067
$1,356,351
$2,480,592
$2,266,244
91%
$125,930
5%
$9,795
1% $78,623
3%
Personnel
Contractual
Supplies
Other
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Fiscal Year 2017/2018 Annual Budget
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Public Works Administration - Overview
Public Works Departmental Mission The mission of the Public Works Department is to respond to the community needs consistent with the policies determined by the City Council, to maintain a working environment built upon trust, respect and citizen involvement, and to achieve the city's goal of being responsive to resident needs and focusing on customer service. The Public Works Department consists of six operating sections that provide high quality services to the citizens of our community. These sections include: Administration, Fleet Maintenance, Streets Maintenance, Water Division, Wastewater Division and Utility Division.
Public Works Administration Mission It is the purpose of the Public Works Department’s Administration Division to provide direction and administrative support to the Department of Public Works. To complete Public Works Projects for the public welfare, to the highest quality, in accordance with legal and contractual standards, and in accordance with City Statutes. The Public Works Department is responsible for the management of all City Engineering and Construction Projects, Request for Proposal solicitation for Engineering and Construction projects, contract enforcement, and general technical assistance for the Public Works Department. There are several primary operating functions within the Public Works Administration Division.
• To work with the Mayor, Council and City Administrator to ensure that the City’s policies and programs for the department are carried out in addition to managing the department.
• To provide engineering services for a number of projects, plan review, and monitoring the work of the City’s contracted engineering.
• To provide administration, oversight, budgeting and capital improvement program planning/implementation for the Street Division, Water Division, Wastewater Division, Utility Division and Fleet Maintenance Division of the Department of Public Works. The Public Works Administration Division includes the Director of Public Works Jon Schmitt, Project Engineer Troy Strange, Administrative Assistant Nancy Lorch, and Office Assistant Nicole Meyer.
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Public Works Administration – Organizational Chart
Public Works
Director
Jon Schmitt
Wastewater Division
Superintendent
Russell Ruzicka
Water Division
Superintendent
Mike Palmer
Utility Maintenance
Division Superintendent
Steve Wirch
Streets Division
Superintendent
Scott Schweda
Administrative
Assistant
Nancy Lorch
Project Engineer
Troy Strange
Part Time Office
Assistant
Nicole Meyer
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Public Works Administration – FY16/17 Accomplishments
• Administration of the construction of the consolidation of the Central Wastewater Treatment Plant (CWWTP) and the South Wastewater Treatment Plant (SWWTP)
• Management of biennial bridge inspections
• Hiring of a Public Works Department Project Engineering and Part time Office Assistant
• Administration of the “in-house” preparation of bid specifications, bidding services and construction observation of the Fall and Spring tree planting program
• Administration of e-waste and Christmas lights recycling programs
• City Council adoption of the Mailbox Ordinance and Snow/Ice Ordinance
• City Council adoption of the updated Honorary Street Sign Policy
• Administration of specifications, bids and purchase of Street Division Loader and Sewer Division Hook Truck with containers
• Administration of Phase I and II Engineering design of the Pearl Street/Lincoln Road Improvement Project
• Administration of construction and Phase III construction observation engineering of the Bull Valley Road/Curran Road Intersection Improvement Project
• Administration of design engineering , construction and Phase III construction observation engineering of the 2016 Road Program
• Administration of the “in-house” preparation of bid specifications, bidding services and construction observation of the 2016 Road Pavement Maintenance Program – cracksealing and reclamite maltene based rejuvenating agent
• Establishment of the City of McHenry Right-of-Way Public Utility construction permit application
• Administration of the “in-house” preparation of bid specifications, bidding services and construction observation of the Plant #4 Residing Project
• Completed prequalification process for Engineering Firms to provide Municipal Engineering Services for future City Engineering Projects
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• Administration of the preparation of bid specifications, bidding services and “in-house” construction observation of the of the Public Works Facility Standby Electrical Generator Project
• Administration of the preparation of bid specifications, bidding services and “in-house” construction observation of the Millstream Sanitary Sewer Rehabilitation Project
• Participated in joint bid purchasing for Sanitary Sewer Lining, Cracksealing and Road Salt with several McHenry County local agencies
• Administration of bid specifications, bidding services and “in-house” construction observation for the Sanitary Sewer Lining Project
• Administration of Lakeland Park Drainage Study and presentation to the Public Works Committee
• Administration of the rehabilitation of wells #2 and #8 including “in-house” construction observation
• Development and administration of the Refuse Collection Request for Proposals and presentation to City Council
• Administration of construction observation for Tower #3 Repainting project
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Public Works Administration – FY17/18 Goals & Objectives
• Provide effective communication with the City residents about the various Public Works projects, programs, and services
• Ongoing management of the city’s refuse collection contract and e-waste/ Christmas lights recycling programs
• Provide responsible financial leadership while maintaining existing Public Works services
• Administer a Request for Proposals for the Green Street Bridge Rehabilitation Project design engineering and manage contract for design engineering services
• Administer a Request for Proposals for the Timothy Lane/Clover Avenue Water Main Replacement Project design engineering and manage contract for design engineering services
• Manage completion of Phase II Engineering Design Services for Pearl Street and Lincoln Road Improvement Project
• Perform all Engineering Services “in house” for the 2017 Road Program
• Create and improve Request for Proposals/Bid Section of Public Works Department Website to provide better contract information for potential bidders and vendors
• Administer Joint Contract for Reclamite Pavement Rejuvenator with several other local Municipal Agencies
• Perform construction observation and contract administration for 2017 Crack Sealing Program
• Begin data collection for Storm Sewer GIS Database
• Continue with aggressive Sanitary Sewer Lining Program and include Sanitary Manhole Lining in 2017 program
• Administer specifications, bids and purchase of Public Works Department’s equipment and vehicles
• Negotiation of a collective bargaining agreement with Local 150 Operating Engineers
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Public Works Administration – FY17/18 Performance Measures
Performance Item Performance Goal Performance Measure FY17/18 Proposed Outcome(s) Capital Improvement Program (CIP)
Develop an updated CIP and transmit to Finance and Administration Department
Was the CIP undated and transmitted to the Finance and Administration Department by the due date?
Meeting deadline dates
Annual Budget Develop and present a operating budget for to the Finance and Administration Department
Was a operating budget transmitted to the Finance and Administration Department by the due date?
Meeting deadline dates
Resident Complaints/Inquires Respond to a resident complaint or inquiry within one working day from receipt
% of time that Public Works Department staff responds within one day
Respond to resident complaints/inquiries within one working day 100% of the time throughout the year Request for Proposals (RFP) Development
Develop all RFP’s for Engineering Services and for Construction projects for which the City performs “in house” engineering services
Status of RFP’s for budgeted projects
All RFP’s completed, issued, and contracts awarded for projects in current budget year
Project Management Manage City Engineering and Construction Projects and assure projects are completed on time and on budget
Schedule and Budget status of City Engineering and Construction Projects
All Engineering and Construction Projects completed on time and on budget Contract Enforcement Assure that City Engineering and Construction Projects are completed in accordance with contract documents and scope of services
Quality Assurance of City Engineering and Construction Projects
All contract work and scope items are completed in accordance with contract provisions Permit Reviews
Review and issues utility permit applications and assure that City infrastructure is undamaged or is fully restored upon completion of permit work
Status of issued permit
All issued permits are completed and closed per the terms of the original permit application. No/minimal outstanding permits. Technical Support for Maintenance Staff
Provide all requested technical support for City Maintenance Superintendents and Crew Leaders
Completion status of requests for technical assistance All requests for technical assistance are completed on “as needed” basis
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Public Works Administration – Expenditure Summary Total Expenditures FY13/14 Actual – FY17/18 Proposed
FY17/18 Proposed Expenditures by Type
$-
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
FY13/14
Actual FY14/15
Actual FY15/16
Actual FY16/17
Budget FY16/17
Estimated FY17/18
Proposed
$253,169 $253,293 $267,263
$787,688 $786,341
$446,466
$403,745
90%
$8,630
2%
$3,000
1%
$31,091
7%
Personnel
Contractual
Supplies
Other
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Fiscal Year 2017/2018 Annual Budget
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Public Works Street Division - Overview
Public Works Street Division Mission It is the mission of the Street Division to support and enhance a high quality of life for the City’s residents, businesses and visitors by providing a well-planned, environmentally sensitive, cost effective infrastructure through superb customer service. In addition, it will provide residents with a quality urban forestry program that is cost effective and delivers good stewardship for the natural resources of the community. The functions of the Street Division include street cleaning, street maintenance, responding to all resident requests, and ensuring roadways are cleared of snow and ice. All city-owned vehicles and various pieces of equipment are repaired and maintained at the Public Works Facility with two full-time mechanics. The division also maintains public sidewalks, curbs, storm sewers and the drainage system. In addition, as of FY16/17, the Street Division also provides residents with a quality urban forestry program that is cost effective and delivers good stewardship for the natural resources of the community. The arborist’s crew uses professional management practices in tree planting, maintenance and removal to improve the quality of the urban tree canopy. In summary, Street Division employees undertake the following tasks:
• Crews remove snow, control ice, and conduct street cleaning in addition to making miscellaneous repairs.
• Maintain and repair all City owned vehicles and various equipment through the City garage with two full-time mechanics.
• Monitor maintenance of city streetlights and signals by a private contractor.
• Maintain and repair the City’s drainage system to prevent flooding.
• Monitor creek levels and maintain to prevent flooding.
• Advises the department director on fleet and infrastructure needs and responds to service requests.
• Tree planting; maintenance and removal, conduct tree inventories, survey trees for insect, disease and any hazardous tree problems, administer the Arbor Day Program, maintain the City’s status in the Tree City USA and Growth Awards Program. Work with other City departments, community groups and volunteers on tree related issues, and oversee the Tree Preservation Ordinance for compliance.
• Oversee the mowing contract for city properties.
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Public Works Street Division – Organizational Chart
Street Division
Superintendent
Scott Schweda
Crew Leader
Andy Lechner
Maintenance
Worker
Dave Christopher
Maintenance
Worker
Tim Lechner
Maintenance
Worker
Mike Freund
Maintenance
Worker
Gary Mertz
Maintenance
Worker
Pedro Padro
Maintenance
Worker
Nick Goettsche
Crew Leader
Dale Moll
Maintenance
Worker
Ron Barta
Maintenance
Worker
Paul Clements
Maintenance
Worker
Sam Burrafato
Maintenance
Worker
Rick Leisten
Maintenance
Worker
Jason McMahon
Maintenance
Worker
Jacob Reilly
Maintenance
Worker
Mike Turner
Forestry Crew
Leader
Mike Harper
Fleet Maintenance
Division
Mechanic
Mike Owsley
Mechanic
Matt Rogers
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Public Works Street Division – FY16/17 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.
• Completed numerous drainage improvements.
• Implementation of the 2016 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 2016 Road Program which included 18 streets.
• Managed snow removal, ice control, and conducted street cleaning in addition to making miscellaneous repairs.
• Assisted HR Green with overseeing the installation project a traffic light installation at Curran Rd and Bull Valley Rd.
• Assisted with the preparation for Fiesta Days and 4th of July activities.
• A new pavement maintenance process was introduced called reclamite which will help prolong the life of our new roads by applying it within one year of paving.
• The 50/50 residential planting program “Plant Trees McHenry” was funded for the fourth year. This year’s program included funding for 25 trees; 4 trees were planted through the program.
• Arbor Day was celebrated on April 29th, 2016. A total of 6 trees were donated by the Sullivan family, Bianchi Family, Patricia Schafer, Pender family, and McHenry Garden Club.
• 66 trees were planted in the parks system. 50 along the Knox Park Bike Path, 14 Oak saplings in Shamrock Park, and 2 memorial trees; one in Petersen Park, one in Veteran’s Park.
• The City planted 517 trees in various parkways.
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• Crew members trimmed 663 trees city trees in Evergreen Park, Olde Mill Ponds, Mill Creek, Millstream, Park Ridge Estates, and Trails of Winding Creek. An additional 72 trees were trimmed at Petersen Park and Hickory Creek Farm.
• 142 trees were removed in 2016 with 61% of these removals due to the Emerald Ash Borer.
149
Public Works Street Division – FY17/18 Goals & Objectives
• Address all snow and ice events by clearing roadways to ensure safe travel on City streets.
• Continue drainage improvement work, particularly in the Lakeland Park and the City’s northwest quadrant.
• Maintain the City’s fleet so that it will operate efficiently and its useful life is extended.
• Repair and maintain city streets by dedicating crew to road resurfacing and pothole repair.
• Mowing the City’s right of ways and property in a timely fashion.
• Respond to all resident requests in a timely manner.
• Maintain the City’s storm sewer system.
• Maintain and repair City sidewalks and curb.
• Inspect and maintain the City owned street light systems.
• Assist with the preparation for Fiesta Days and 4th of July activities.
• Using the 50/50 residential planting program plant 25 trees- if funding is approved.
• Plant five trees for our annual Arbor Day celebration.
• Plant ten trees in our park system.
• Plant 200 trees in the city parkways in Foxridge, Malibu Estates, Winding Creek, Abbey Ridge, and Lakeland Park Subdivisions.
• Assist Developers with tree planting in new subdivisions.
• Continue work on the seven year pruning rotation in the subdivisions of The McHenry Shores, Pebble Creek, Oaks of Irish Prairie, Morgan Hill, Boone Creek, and Legend Lakes. As well as the major roads of McCullom Lake Road and Curran Road.
• Continue the five year pruning cycle for city parks Rotary, Walsh Neumann, Green & Elm, Veteran’s Memorial, Weber, North Oak, Liberty Trails, and Riverside Hollow.
• Identify hazardous trees for removal and remove other trees as required.
• Remove Emerald Ash Borer infested trees in a timely manner.
150
• Continue to monitor for Emerald Ash Borer, Gypsy Moth, and Japanese Beetle.
• 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 and the Petersen Farm.
• Capital Improvement Projects to administer include the 2017 Road Resurfacing Program, asphalt pavement maintenance (crack sealing and reclamite) equipment/vehicle replacement, and the Sidewalk Replacement Program.
151
Public Works Street Division – FY17/18 Performance Measures
Performance Item Performance Goal Performance Measure FY17/18 Proposed Outcome(s) Internal Training Provide all necessary training for all division employees each year Was all training required for the year completed? Staff fully prepared for work. Less work related injuries. Street Sweeping Sweep 121 center lane miles a year Center Lane Miles Clean streets
Sidewalk Replacement Replace 3,000 lineal feet of hazardous sidewalk per year Lineal feet Safer sidewalks for residents
Asphalt Maintenance Crack seal, patch and apply reclamite to prolong the life of City roads Were all necessary road repairs made? Safer roads. Save money
Drainage Maintenance Provide all necessary ditching, storm sewer repairs and creek maintenance to prevent flooding Repairs Flood prevention
Tree Condition Provide a survey Half the City Reduce failure and preserve City Trees
Manage Woodland Areas Creek Maintenance/Controlled burns One prescribed burn/all creeks maintained Maintain our City natural areas/preserve creeks
152
Public Works Street Division – Expenditure Summary Total Expenditures FY13/14 Actual – FY17/18 Proposed
FY17/18 Proposed Expenditures by Type
$2,500,000
$2,550,000
$2,600,000
$2,650,000
$2,700,000
$2,750,000
$2,800,000
$2,850,000
$2,900,000
$2,950,000
$3,000,000
$3,050,000
FY13/14
Actual FY14/15
Actual FY15/16
Actual FY16/17
Budget FY16/17
Estimated FY17/18
Proposed
$2,962,286
$2,890,867
$2,697,958
$2,844,009
$2,744,546
$3,001,082
$2,053,436
69%
$484,900
16%
$362,500
12%
$100,246
3%
Personnel
Contractual
Supplies
Other
153
154
155
Fiscal Year 2017/2018 Annual Budget
PPaarrkkss aanndd
RReeccrreeaattiioonn
156
Parks and Recreation - Overview
Mission It is the mission of the Parks and Recreation Department to provide planned recreation programs and maintain facilities and parks to meet the recreational and park facility needs of the public, recognizing that leisure activities, facilities, and open spaces are important to individuals, families, and community life. The Parks and Recreation Department experienced significant growth in 2016, in large part due to the establishment of the Recreation Center. Staff has been successful at meeting the challenge of making the facility financially solvent while also meeting the expanding recreation interests of the residents of McHenry. The future looks bright for the Department with a Community Needs Assessment in the works, a process that will give staff insight into the recreation interests of the community, as well as possible direction on how to expand recreation services and facilities, namely the Recreation Center. Finally, a significant new community amenity to be constructed in FY17/18 is the Miller Riverfront Park Public Boat Ramp. In partnership with the Village of Johnsburg and Village of Lakemoor, the City was able to acquire boat ramp rights in FY16/17 to be able to complete the construction of a boat ramp that is more than 25 years in the making at Miller Riverfront Park. No doubt that this will provide a unique service to resident of McHenry, Johnsburg and Lakemoor, but also visitors to the community. The Recreation Division of the Parks and Recreation Department consists of three full-time personnel. Superintendent of Recreation Matt LaPorte works alongside Athletics and Aquatics Supervisor Nicole Thompson and Recreation Supervisor Cindy Witt to coordinate the various programs, events and services provided by the Department. Additionally, staff oversees the management of the McHenry Recreation Center, Petersen Beach and Merkel Aquatics Center facilities for the Department. The Parks Division, consisting of Superintendent of Parks and Downtown Maintenance Pat Gorniak, Assistant Superintendent Jeff Friedle and five (5) full-time Parks Maintenance Workers continue to tackle the massive task of maintaining the City’s more than 650 acres of park space, contained in thirty-eight (38) municipally-owned park sites. In addition, the Parks Division is responsible for maintaining the amenities of the City’s three downtown business districts – Riverside Drive, Green Street, and Main Street.
157
Parks and Recreation – Organizational Chart
Deputy City
Administrator
Bill Hobson
Superintendent of Parks
Pat Gorniak
Assistant
Superintendent of Parks
Jeff Friedle
Maintenance Worker
John Dillon
Maintenance Worker
Tracy Crowder
Maintenance Worker
Chris Etten
Maintenance Worker
Bob Zimmerman
Maintenance Worker
Chris Van Landyt
Superintendent of
Recreation
Matt LaPorte
Recreation Supervisor
Cindy Witt
Recreation Program
Staff
Athletics & Aquatics
Supervisor
Nicole Thompson
Athletics & Aquatics
Program Staff
McHenry Recreation
Center
158
Parks and Recreation – FY16/17 Accomplishments
Recreation Center
• Recreation Center has been a major success in 2016. A total of 821 presale fitness memberships were sold through March of 2016. Through the end of December we had 1711 active fitness members. 77% of those are residents. These “active members” are paying members who are in an annual contract, in good standing, and do not include employees, punch pass holders or other short term memberships.
• From March through end of December, the Rec Center received a total of 53,598 visits from fitness members.
• Group exercise classes, which are included in membership, have received 19,260 visits. This reflects about 35% of our members visit history.
• The arrival of the Recreation Center and the expansion of fitness programming has lead to an increase in health of those who choose to have a fitness membership. Members often comment on how the exercise is contributing to weight loss, decrease in medication and an improvement in overall strength and conditioning. We are seeing members exercise for longer periods of time, more days each week and taking classes back to back more often. And every day we welcome new faces into our facility.
• The recreation center fund is on track to cover our operating expenses and is projecting to have a surplus of $60,000 in our first year of operation.
Special Events
• The popular Dad & Daughter Date Night was held in February with over 300 people in attendance. This event provided and wonderful evening for girls to spend one-on-one time with their dads.
• The historical Big Wheels Race was held in July in conjunction with Fiesta Days. Boys and girls ages 3-5 raced for victory at the Petersen Park Racetrack.
• Several new special events were offered this fall, including the Pumpkin Party, Mom & Son Game Night, Turkey Burn, several Fitness Challenges, and Santa’s Candy Cane Hunt. These community events were well attended and hopefully become annual favorites.
• New special events for spring included:
- Biggest Winner Fitness Challenge
- Wrigley Field Tour
- Day of Play & Fitness fair
- Breakfast with the bunny
159
Programs
• We have offered 246 athletic program options for youth in the surrounding area.
• 1019 children were served through athletic programs through the end of January, on target for 1300 by end of April.
• We have expanded community partnerships with both current and new 3rd party contractors, thereby allowing us to offer more programming options in new areas. Examples include:
- Addition of Traveling Basketball League in Collaboration with Chicago SKY WNBA Team
- New youth athletic leagues in Handball, Floor Hockey.
- Added a spring instructional soccer program
- Expanded the gymnastics program
- Collaborated with Community Sailing School at Pistakee Bay to offer Summer Sailing Classes and STEM sailing school
- Partnering with Boone Creek Golf Course to offer a kids SNAG Golf Lesson program. Unique program where participants learn the game by using oversized clubs and equipment.
• Our Summer Marlins swim team took 2nd place in the North Central Illinois Summer Swim Conference. We had 90 swimmers on the team.
• Our Winter Marlins swim team has 140 kids on the team. We have 14 swimmers that qualify for Illinois Swimming state events, and we are only half way through the season.
• This summer, we focused on safety in our aquatic programs.
- Our swim lessons caped off each session with a Safety Day. We taught participants safe techniques for their children in water, how to measure life jackets, how to get kids in and out of the water, and ways that they can teach skills at home.
- At Petersen Park Beach, we offered a boating safety course. We focused on helping children become familiar with different watercrafts. They would practice getting lifejackets on, learn how to recover after falling out of boats, learn how to properly row, and learn how to stay safe in open water.
- We offered a Junior Lifeguarding class to the community, and we had 12 children enrolled. We are getting youth ages 13-15 ready to take an American Red Cross Lifeguarding class. We want to help them create an avenue to save lives and obtain a summer job. Children learn basic saves, lifesaving skills, identifying problems, and activating Emergency Action Plans.
• We had 509 children learn to swim this summer through our American Red Cross swim lesson program.
• We added new aquatic programming and amenities to increase attendance at the Merkel Aquatic Center & Petersen Park Beach:
- Inflatable obstacle course elements at the beach (wiggle bridge)
160
- Introduced a boat safety course
- New aquatic boats
- ½ price boat rentals on Thursdays helped increase boat usage at the beach
- End of the season beach party
- Kick off to the season pool party
- Flick n’ floats on Tuesday nights at the pool
- Added evening swim lessons
- Additional pool party dates up until Labor Day weekend
- Increased pool revenue by $7,432
• The Summer Day Camp was successful this summer with over 350 registrations taken for Pee Wee Camp (ages 4-5), Day Camp (ages 6-12) and Junior Leaders (ages 13-14). Kids and their counselors had a great time playing in the parks, swimming daily and going on adventurous field trips. Exciting changes are planned for the summer of 2017!
• Kids Club - a no school day camp program was new in 2016. These full day of activities and supervision are offered on days when School District 15 has scheduled days off.
• The new dance studio at the McHenry Recreation Center provides a great space for the growing dance program. Short-term classes were added in winter, spring and fall to compliment the summer classes. The 8-month long program is currently running with over 140 students.
• Ballroom Dance was re-introduced in Fall of 2016.
• Outdoor recreation activities were introduced in 2016: kayaking, biking, hiking, cross-country skiing and snowshoeing.
• Adult and Kid’s Cookie Decorating parties are popular and will continue.
• Additional General Recreation programs were offered through working with the following local businesses:
- The Studio of McHenry – Art instruction
- Rock ‘n’ Kids of Algonquin – Music instruction
- Just 4 You Treats of McHenry – Cookie decorating
- Riverside Animal Clinic of McHenry – Veterinarian Camp
- Huegah of McHenry – Cooking demonstrations
Parks Improvements
Veteran’s Park
- New sound system installed incorporating music throughout the park along with integrating connection points in gazebo
- New LED light fixtures on all park poles (6)
- New landscaping on north side of park
- New Riverwalk brick installed near bathrooms
- New LED lighting installed on gazebo
161
Knox Park
- New scoreboard installed on Field 1. Field 2 pre-wired for installation Spring of 2017
- Gravel paved surrounding Fields 1-2
- Extensive tree removal and cleaning of wooded areas southwest of barn
Petersen Park
- Concrete walkway and concession area installed between parking lot and Fields 3 & 4
- Gravel road paved back to parking area near Field 5
- Extensive sports field maintenance done on Fields 2, 3 & 4 including: reshaping, aerating, slit seeding, sweeping and fertilizing
Freund Field
- New infield (complete removal, reshaping and replacement of new sod)
McBark Dog Park
- New shelter installed on west end of park
- New drinking fountain installed
Fox Ridge East
- (2) 80 x 80 ice skating/hockey rinks installed
Downtown Districts
- New electrical panel installed serving Green Street lighting
- New parking lot signage package created
Sport Courts
- Althoff basketball complex resurfaced – 3 courts
- Petersen Park tennis/basketball court resurfaced (2) tennis, (1) basketball and 1 tennis court removed and turned into basketball court
General Maintenance Notes
- 320 tons of ball field mix spread among ball fields
- 500 lbs. of athletic mix grass seed spread on Petersen Park Field 2, 3 & 4
- 200 Yards of mulch spread throughout park system
- Preparation and takedown of all city events
Marketing
• The department has continued to make greater efforts in marketing to improve enrollment numbers, awareness and build a new image of the Parks & Recreation Department.
• A significant marketing project accomplishment was the redesign of the seasonal program guide beginning with the Fall Program Guide.
162
Parks and Recreation – FY17/18 Goals & Objectives
• Create a collaborative marketing plan for programs, events and facilities; whereby increasing community reach, efficiency, return on investment.
• Create a matrix of program offerings to identify areas of need/duplication in program development.
• Increase visitation at beach, pool and rec center thereby increasing revenue.
• Increase day camp enrollments with redeveloped structure, staff training and marketing.
• Research trends, explore community partnerships and evaluate existing programs in an effort to consistently develop new programs and special events. Possible ideas for 2017 include:
- Safety Town
- Water skiing
- Sailing
- Special events at the beach
- Development of a junior swim team
- Introduction of a master swim team
- Adult athletic leagues
• Enhance Department’s sponsorship program.
• Complete Community Needs Assessment project and analyze findings, implement recommendations.
• Continue to develop relationships with school districts, chamber, and various social clubs in community.
• Launch Illinois Unplug Program through Illinois Association of Park Districts
163
Parks and Recreation – FY17/18 Performance Measures
Item
Goal
Description
FY 17/18 Proposed
Outcome(s)
Metric Tracking
Develop system for tracking and
recording Key Performance
Indicators (KPI) at facilities and
programs.
How many people are served
through the Parks & Recreation
Department’s programs and
facilities on an annual basis?
May 22, 2017
Evaluation
Implement a systematic process
of evaluating and analyzing
programs and facilities.
How do we identify patron
satisfaction and use the
information to make continuous
improvements in program
planning?
December 2017
Community Needs Assessment
Complete Community Needs
Assessment. Analyze findings
and implement
recommendations.
What are the leisure needs of
the residents of McHenry and
how will the Parks & Recreation
Department make changes to
meet those needs?
May 31, 2017
Marketing
Measure the Department’s
marketing success and
effectiveness.
Are the Department’s marketing
efforts reaching the intended
audience and which methods are
most effective?
March 2018
Technology
Explore opportunities to improve
customer service and
department operations through
the introduction of technological
advancements.
How can we remain competitive
with the private recreation
sector?
August 2017
Staff Development/Retention
Invest in training, retention
methods, staff recognition and
cross training in order to develop
staff workforce and reduce
turnover/loss.
How do we improve the
performance of department
staff?
September 2017
Management
Increase opportunities for
combined programming for
patrons in order to increase the
perceived value of programs and
convenience for patrons i.e.
combining swim lessons for
camp participants, providing
reduced fitness membership for
upper level swim team
participants.
How can we adjust our
operations to meet the needs of
busy working families so that we
remain a viable recreation option
for the community?
April 2018
164
Parks and Recreation – Expenditure Summary Total Expenditures FY13/14 Actual – FY17/18 Proposed
FY17/18 Proposed Expenditures by Type
$2,500,000
$2,550,000
$2,600,000
$2,650,000
$2,700,000
$2,750,000
$2,800,000
$2,850,000
$2,900,000
$2,950,000
$3,000,000
$3,050,000
FY13/14
Actual FY14/15
Actual FY15/16
Actual FY16/17
Budget FY16/17
Estimated FY17/18
Proposed
$2,962,286
$2,890,867
$2,697,958
$2,844,009
$2,744,546
$3,001,082
$2,053,436
69%
$484,900
16%
$362,500
12%
$100,246
3%
Personnel
Contractual
Supplies
Other
165
166
167
Fiscal Year 2017/2018 Annual Budget
SSppeecciiaall RReevveennuuee
FFuunnddss
168
Fiscal Year 2017/2018 Annual Budget
TToouurriissmm FFuunndd
169
Tourism Fund – Overview The purpose of the Tourism Fund is to finance tourism-related promotions of the City of McHenry. Revenues of the Tourism Fund are derived from a 5% tax on motel and hotel room receipts. Expenditures currently include annual contributions to the Visit McHenry County organization (formerly McHenry County Convention and Visitors Bureau), partnering with the McHenry Jaycees to fund a portion of the annual Independence Day fireworks in Petersen Park, and on the municipal portion of various festivals and special events held within the municipality such as Fiesta Days and Blue, Brews and BBQ. Revenues FY13/14 Actual – FY17/18 Proposed
Expenditures FY13/14 Actual – FY17/18 Proposed
$130,000
$135,000
$140,000
$145,000
$150,000
$155,000
$160,000
$142,579
$153,893 $153,959
$140,050
$156,026 $155,050
$-
$20,000
$40,000
$60,000
$80,000
$100,000 $79,000 $87,000 $87,000 $95,000 $87,047 $90,000
170
171
Fiscal Year 2017/2018 Annual Budget
PPaaggeeaanntt FFuunndd
172
Pageant Fund – Overview The purpose of the Pageant Fund is to account for revenues and expenditures used to conduct the annual Miss McHenry Pageant. The pageant, a community tradition for 60 years, is conducted annually. Female contestants between the ages of 16 and 20, living with the boundaries of the McHenry District 156 school district and having a McHenry address, are eligible to participate. Revenues are derived from entrance fees of $200 per participate, normally paid by a sponsor, and other donations. Expenditures are directly related to the holding of the pageant. Revenues FY13/14 Actual – FY17/18 Proposed
Expenditures FY13/14 Actual – FY17/18 Proposed
$- $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500
$2,789
$4,203 $3,949 $3,600
$1,260 $1,300
$- $500 $1,000 $1,500
$2,000
$2,500
$3,000
$3,500
$4,000 $3,295 $3,333 $3,311 $3,550
$1,073 $1,100
173
174
Fiscal Year 2017/2018 Annual Budget
BBaanndd FFuunndd
175
Band Fund – Overview The purpose of the Band Fund is to finance and account for expenditures incurred for the provision of summer concerts by the municipal band to promote culture and recreation in McHenry. Revenues are derived through a transfer from the General Fund and expenditures are related to stipends paid to the members of the band. Revenues FY13/14 Actual – FY17/18 Proposed
Expenditures FY13/14 Actual – FY17/18 Proposed
$14,994 $14,996
$14,998
$15,000
$15,002
$15,004
$15,006
$15,008
$15,010
$15,005
$15,009 $15,009
$15,000
$15,010
$15,000
$- $2,000 $4,000 $6,000
$8,000 $10,000
$12,000
$14,000
$16,000 $14,092
$12,539 $12,913
$15,000
$11,720
$15,000
176
177
Fiscal Year 2017/2018 Annual Budget
CCiivviill DDeeffeennssee
FFuunndd
178
Civil Defense Fund – Overview The Civil Defense Fund accounts is for the training of personnel and the purchase and maintenance of equipment needed to protect and defend the municipality from natural disasters or man-made environmental disasters through early warning and public notification systems. Revenues are derived from a General Fund transfer and expenditures are as-needed. Revenues FY13/14 Actual – FY17/18 Proposed
Expenditures FY13/14 Actual – FY17/18 Proposed
$- $1,000 $2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
$5,000 $5,000 $5,000
$8,000 $8,000 $8,000
$-
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000 $10,315 $10,368
$3,289
$5,300
$2,110
$5,300
179
180
Fiscal Year 2017/2018 Annual Budget
AAllaarrmm BBooaarrdd
FFuunndd
181
Alarm Board Fund – Overview The Alarm Board Fund is to pay for the maintenance of radios and “head-end” equipment in the municipal 911 dispatch center (NERCOM). This equipment comprises the city’s direct connect radio fire alarm monitoring network. City businesses which are required, by building code, to have a fire alarm monitoring system are required to be monitored via direct connection to NERCOM. This direct connection helps to ensure a more efficient emergency response. Revenues FY13/14 Actual – FY17/18 Proposed
Expenditures FY13/14 Actual – FY17/18 Proposed
$- $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 $160,000 $180,000 $200,000 $154,015 $165,893 $175,496
$153,000
$187,845 $190,250
$-
$20,000
$40,000
$60,000
$80,000
$100,000
$45,469 $56,555
$71,269
$27,950
$90,012 $92,000
182
183
Fiscal Year 2017/2018 Annual Budget
AAuuddiitt FFuunndd
184
Audit Fund – Overview The purpose of the Audit Fund is to account for expenses incurred to complete the annual audit of the city’s financial statements. The State of Illinois requires that the City of McHenry conducts an independent audit on an annual basis. Statutes provide authority for an entity to levy a portion of the property tax to pay for the audit. Since the authority to levy a property tax for the audit is separate from the authority to levy the corporate rate, the levy amount for audit is deposited into a separate fund and kept segregated from the General Fund receipts. Revenues FY13/14 Actual – FY17/18 Proposed
Expenditures FY13/14 Actual – FY17/18 Proposed
$37,200
$37,400
$37,600
$37,800
$38,000
$38,200
$38,400
$38,600
$37,825 $37,760
$37,973
$38,211 $38,182
$38,504
$30,000
$32,000
$34,000
$36,000
$38,000
$40,000
$42,000
$34,985 $35,710 $36,380 $37,104
$40,745 $41,715
185
186
Fiscal Year 2017/2018 Annual Budget
AAnnnneexxaattiioonn
FFuunndd
187
Annexation Fund – Overview The Annexation Fund is a non-operating fund that is used to account for receipts from generally non-recurring revenue sources resulting from negotiated annexation agreements. Revenues include a fee assessed on gravel mining on a per ton basis, revenues from property being annexed into the City on an acreage and lot basis, and an additional per unit fee that is distributed to other taxing bodies. Expenses in the fund are related to improvements to infrastructure or municipal facilities. Revenues FY13/14 Actual – FY17/18 Proposed
Expenditures FY13/14 Actual – FY17/18 Proposed
$-
$50,000
$100,000
$150,000
$200,000
$250,000
$70,415 $72,638
$111,956
$58,200
$219,506
$155,200
$-
$10,000
$20,000
$30,000
$40,000
$50,000 $48,455 $43,820
$35,000
$45,000 $43,628 $45,000
188
189
Fiscal Year 2017/2018 Annual Budget
MMoottoorr FFuueell TTaaxx
FFuunndd
190
Motor Fuel Tax Fund – Overview The purpose of the Motor Fuel Tax (MFT) Fund is to provide dedicated revenues from taxes on gasoline and diesel sales primarily to road improvements and maintenance. Motor fuel taxes are generated by a flat rate of cents per gallon, plus a sales tax transfer. This sales tax transfer was eliminated by the State of Illinois in 2000 and replace by certain vehicle registration fees. In 2010 the municipality issued a $3.5 million bond for local roadway improvements and the majority of MFT expenditures are to service this debt. The remaining amount is utilized for the purchase of road salt, as a match to leverage other Federal and State road funds (e.g., Surface Transportation Program, Highway Safety Improvement Program) and road maintenance. Revenues FY13/14 Actual – FY17/18 Proposed
Expenditures FY13/14 Actual – FY17/18 Proposed
$-
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000 $1,400,165
$954,038 $852,488
$677,429 $681,418 $695,644
$-
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$823,826 $830,173
$1,121,370 $1,258,941
$703,026 $786,889
191
192
Fiscal Year 2017/2018 Annual Budget
DDeevveellooppeerr DDoonnaattiioonn
FFuunndd
193
Developer Donation Fund – Overview The Developer Donation Fund is to account for donations collected from developers on behalf of the primary and secondary school districts, fire protection district, library district and the municipal park system. Developer Donations are collected to ensure the provision of public facilities to serve new development by requiring each new developer to pay a calculated share of the costs of such improvements as a condition of approval. By municipal ordinance, anyone applying for a building permit for a residential unit are required to pay fees for each unit constructed. Revenues FY13/14 Actual – FY17/18 Proposed
Expenditures FY13/14 Actual – FY17/18 Proposed
$- $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 $450,000
$193,787
$310,871
$362,928
$133,690
$440,371
$323,000
$- $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 $450,000
$133,215
$354,318
$200,285 $226,740 $202,298
$411,700
194
195
Fiscal Year 2017/2018 Annual Budget
TTaaxx IInnccrreemmeenntt
FFiinnaannccee FFuunndd
196
Tax Increment Finance Fund – Overview The Tax Increment Finance (TIF) Fund accounts for revenues and expenditures related to the city’s Downtown Tax Increment Finance District, established in 2002. TIF revenues are derived from the collection of property taxes each year at an increment based on the increase in the assessed valuation of properties within the area since creation of the district. Expenditures are related to the repayment of private development “extraordinary costs” per approved development agreements and for public improvements within the district which increase the value of all properties within the area. Currently, due to stagnant property values within the district, TIF revenues have remained relatively flat. Revenues FY13/14 Actual – FY17/18 Proposed
Expenditures FY13/14 Actual – FY17/18 Proposed
$-
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$446,111
$349,373
$644,131
$326,000
$373,162
$326,000
$-
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$324,855
$625,632
$289,337 $305,935
$278,197 $302,235
197
198
Fiscal Year 2017/2018 Annual Budget
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Fiscal Year 2017/2018 Annual Budget
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Debt Service Fund – Overview The Debt Service Fund accounts for the bonded indebtedness incurred by the City’s General Fund, including bond and interest payments. Revenues FY13/14 Actual – FY17/18 Proposed
Expenditures FY13/14 Actual – FY17/18 Proposed
$-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$1,558,747 $1,520,797
$5,962,338
$1,653,949 $1,654,077
$1,661,872
$-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$1,518,569
$1,566,868
$5,980,305
$1,653,799 $1,636,884
$1,666,722
201
202
Fiscal Year 2017/2018 Annual Budget
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Recreation Center Fund – Overview In March of 1999 the City Council passed a resolution stating that 50% of developer donation fees for parks were to be set aside for the construction of a recreation center. Consequently, the Recreation Center Fund was created to account for these donations. In addition, any future funding sources identified for the construction of the facility would be deposited in this fund and, further, the expenditure of funds for the construction of a recreation facility would be taken from this fund. In 2013 and 2014 City Council undertook a process to evaluate the feasibility of various options for recreation facilities, including the development of a family aquatics facility and/or a recreation center. Ultimately, it was determined that a recreation center should be the primary focus, construction began in 2015 and the McHenry Recreation Center was opened in February of 2016. Construction was financed through a combination of cash payments from the Recreation Center Fund and the issuance of debt. This was done to ensure that funding remained in the Recreation Center Fund to cover any start-up operating shortfalls, to serve as capital improvement funding for facility needs, or seed money for future expansions of recreation facilities. To date, the McHenry Recreation Center has exceeded expectations. With more than 1,850 members as of March 2017, revenues are sufficient to not only cover all operating costs but to also fund the $130,000 debt service. Importantly, no public tax dollars were used to construct the facility and no tax dollars are required to operate the facility. The fund now accounts for the McHenry Recreation Center operating budget and fund balance.
204
Revenues FY13/14 Actual – FY17/18 Proposed
Expenditures FY13/14 Actual – FY17/18 Proposed
$-
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$160,000
$- $-
$153,959
$140,050 $156,026 $155,050
$-
$20,000
$40,000
$60,000
$80,000
$100,000 $79,000 $87,000 $87,000 $95,000 $87,047 $90,000
205
206
207
208
Fiscal Year 2017/2018 Annual Budget
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Special Service Area #4 Fund – Overview The Special Service Area (SSA) #4 Fund is to account for revenues and expenses associated with annual debt service for a sewer project that was completed in 2004 in the Lakewood Road Subdivision. SSA’s allow a city to levy a property tax on property within a defined area to fund specific improvements. Through an SSA payments are spread equally over the identified number of taxable lots rather than through assessment (Special Assessment). The total amount of the SSA is $327,200 to expire in 2024. Revenues FY13/14 Actual – FY17/18 Proposed
Expenditures FY13/14 Actual – FY17/18 Proposed
$16,846 $16,846 $16,847 $16,847 $16,848 $16,848 $16,849 $16,849 $16,850 $16,850
$16,848
$16,850
$16,849
$16,847
$16,850
$16,847
$- $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000 $16,847 $16,847 $16,847 $16,847 $16,847 $16,847
210
211
Fiscal Year 2017/2018 Annual Budget
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Capital Improvements Fund – Overview The purpose of the Capital Improvements Fund is to account for funds identified for the maintenance and construction of public infrastructure projects other than water and sewer utilities. This includes roads and public facility maintenance, improvements and/or construction. No operating costs are included in the Capital Improvements Fund. Capital Improvements Fund revenues are derived from transfers from other funds, primarily the General Fund Assigned for Capital. Projects included in the Capital Improvements Fund are identified through the capital improvements planning process which culminates in the development of an annual five-year Capital Improvement Plan (CIP). The development of the CIP is an exercise that is undertaken, primarily, to ensure the City Administration and City Council are able to identify the capital improvement and capital equipment needs of the municipality. The document contains both Capital Improvement and Capital Equipment projects, each with a cost of more than $10,000. The FY17/18 – FY21/22 CIP includes more than $89 million in project and, due to the size and complexity of projects and the limited available funding, it is not reasonable to believe that more than a handful of projects can be completed in any given budget year. The following Capital Improvement Projects are identified for funding in the FY17/18 Budget. Note that the projects identified below and the related funding amounts are representative of General Fund funding only. Projects may be additionally funded with other, non-General Fund funding (i.e., Motor Fuel Tax, Surface Transportation Program, grants, etc.). Also, project identified as “Rebudgeted” were previously approved but will not be completed prior to the end of the current fiscal year. Descriptions of these projects can be found in the FY17/18 – FY21/22 Capital Improvement Plan document:
FY17/18 General Fund Capital Improvements 1. Local Street Program including Pavement Maintenance $ 900,000 2. Green Street Bridge Rehabilitation $ 25,000 3. Tree Replacement Program $ 25,000 4. Public Works Facility Lighting $ 40,000 5. Municipal Center Parking Lot Lights, Caulking $ 33,000 6. Municipal Center VAV Improvements (rebudgeted) $ 56,000 7. Riverwalk Seawall (rebudgeted) $ 75,000 8. Public Works Generator (rebudgeted) $ 168,000
Total $ 1,322,209
213
Expenditures FY13/14 Actual – FY17/18 Proposed
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
$5,000,000
FY13/14
Actual FY14/15
Actual FY15/16
Actual FY16/17
Budget FY16/17
Estimated FY17/18
Proposed
$1,037,927 $1,171,806
$948,145
$4,210,480
$4,581,458
$1,322,209
214
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Fiscal Year 2017/2018 Annual Budget
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Capital Equipment Fund – Overview
The Capital Equipment Fund is utilized to track annual
expenditures of equipment replacement (e.g., vehicles,
computer equipment) as identified in the five-year Capital
Improvement Plan. No operating costs are included in the Capital Equipment Fund. Capital Equipment Fund revenues are derived from transfers from other funds, primarily the General Fund Assigned for Capital. Like the Capital Improvements Fund, Capital Equipment Fund projects are identified through the capital improvements planning process which culminates in the development of an annual five-year Capital Improvement Plan (CIP). The development of the CIP is an exercise that is undertaken, primarily, to ensure the City Administration and City Council are able to identify the capital improvement and capital equipment needs of the municipality. The document contains both Capital Improvement and Capital Equipment projects, each with a cost of more than $10,000. The FY17/18 – FY21/22 CIP includes more than $89 million in project and, due to the size and complexity of projects and the limited available funding, it is not reasonable to believe that more than a handful of projects can be completed in any given budget year. The following Capital Equipment Projects are identified for funding in the FY17/18 Budget. Note that the projects identified below and the related funding amounts are representative of General Fund funding only. Projects may be additionally funded with other, non-General Fund funding. Descriptions of these projects can be found in the FY17/18 – FY21/22 Capital Improvement Plan document:
FY17/18 General Fund Equipment Improvements 1. Police Vehicle Replacement $ 82,500 2. Police Vehicle Equipment $ 35,870 3. Streets - Equip Replacement (compressor) $ 15,000 4. Parks – Equipment Replacement (mower) $ 55,000 5. Parks – Vehicle Replacement $ 50,000
Total $ 238,370
217
Expenditures FY13/14 Actual – FY17/18 Proposed
$-
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
FY13/14
Actual FY14/15
Actual FY15/16
Actual FY16/17
Budget FY16/17
Estimated FY17/18
Proposed
$525,088
$268,374 $258,993
$479,300
$454,895
$238,370
218
219
Fiscal Year 2017/2018 Annual Budget
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Fiscal Year 2017/2018 Annual Budget
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Water & Sewer Fund - Overview The Water and Sewer Fund is an enterprise fund – that is, a business-type fund utilized to account for operations and activities that are financed and operated in a manner similar to a private business enterprise, and where the cost of providing goods and services to the general public on a continuing basis is expected to be recovered primarily through user charges, including operating costs and capital improvement costs related to the maintenance of the water and sewer utility systems. These fund the operations of the Water, Wastewater and Utility Divisions in the Department of Public Works. The operating functions of these three divisions are to provide a safe and reliable supply of high quality potable water and to protect public health and the environment by treating sewage to meet stringent environmental standards prior to discharge. Of note, the Utility Division was established in FY15/16 combining existing Water and Wastewater Division Maintenance Workers to specifically address utility system maintenance needs more routinely. Prior to this, utility maintenance projects were addressed by either the Water or Wastewater Division and often required coordination with the other division to ensure adequate manpower. The creation of the Utility Division established a more efficient methodology to handle utility maintenance projects. The expenses for the Utility Division division are split between the Water and Wastewater Divisions as follows - approximately 63.7% of operating expenses are paid from the Water Division and the remaining 36.3% are paid from the Wastewater Division. Capital expenses are charged to the division that benefits from the maintenance project. In general, water and sewer revenues are derived directly from water and sewer sales, base charges, connection fees, and service penalties and should be sufficient to fund the operating and capital costs for the Water, Wastewater and Utility Divisions. Importantly, water and sewer revenues are driven by consumption and, as such, with a growing awareness of water conservancy (which the City supports) and wetter than average summer months, consumption has been relatively flat over the last two years. Prior to FY15/16, water and sewer rates were adjusted annually based primarily on the Consumer Price Index (CPI). Unfortunately, this CPI adjustment did not correlate to the actual cost of operations for McHenry’s Water and Wastewater Divisions and did not account for the specific capital infrastructure needs of the municipality. This resulted in a shortfall in water and sewer revenues and an inability to fund water and sewer capital projects of the existing systems. To address this the City commissioned a water and sewer rate study that was completed in FY13/14. The results of this analysis identified the need to adjust water and sewer rates at that time and to annually review and adjust water and sewer rates based on operational costs and implement water and sewer base fees to fund utility system capital improvements. The narrative that follows provides a snapshot of the status of the Water and Sewer Fund and identifies operational and capital expenses. This is followed by more detailed summaries of the Water, Wastewater and Utility Divisions of the Department of Works.
222
FY17/18 Water Division FY17/18 Water Division operating expenditures are proposed at $2,709,970, a decrease of $266,736 from FY16/17. This decrease is due to the overfunding of the Utility Division transfer (again, the Utility Division is funded through contributions by water and wastewater) in FY16/17 allowing for a one-year decrease in funding from Water Division revenues. Taking in to account
estimated consumption levels and the current water rate of $3.48 per 1,000 gallons, it is
recommended that the water rate be REDUCED by 4.0%, or $.14 per 1,000 gallons for
residential customers and $.15 per 1,000 gallons for congregate care (independent living)
customers. It is estimated that the existing $2 capital base charge will generate $125,000 in FY17/18 for capital projects. In FY17/18 this amount will be used to fund the following water system capital projects identified in the Water and Sewer Fund CIP - $75,000 for water meter replacement (page 108 of the Capital Improvement Program) and $50,000 for design of the Clover/Timothy watermain (page 129 of the Capital Improvement Program). No increase or decrease in the base rate is recommended at this time.
FY17/18 Wastewater Division FY17/18 Wastewater Division operating expenditures are projected at $3,232,996, a decrease of $68,944 from FY16/17. This decrease is due to the overfunding of the Utility Division transfer (again, the Utility Division is funded through contributions by water and wastewater) in FY16/17 allowing for a one-year decrease in funding from Wastewater Division revenues. Taking in to
account estimated consumption levels and the current sewer rate of $3.64, proposed
revenues of $3,006,586 will fall short of proposed operating expenditures by $226,410. It is
estimated that a rate adjustment of 10.0%, or increase of $.36 per 1,000 gallons for
residential customers and $.35 per 1,000 gallons for congregate care customers would be
required to meet operational costs. It is estimated that the existing $4 capital base charge will generate $270,000 in FY17/18 for capital projects. This amount will be used to fund the following water system capital projects identified in the Water and Sewer Fund CIP - $270,000 for the sanitary sewer manhole and main line rehabilitation program (pages 130 and 131 of the Capital Improvement Program). Additionally, a hook lift truck and containers (page 122 of the Capital Improvement Program) are needed for the operation of the South Wastewater Treatment Plant Consolidation Project. Because this $305,000 project cannot be funded through the sewer base fee in FY17/18, it is recommended that funding come from the Water and Sewer Fund Reserve. No change in the base rate is being recommended at this time.
FY17/18 Utility Division FY17/18 Utility Division operating expenditures are projected at $1,057,504, a decrease of $127,132 from FY16/17. As identified in the Water and Wastewater discussions above, in FY16/17 the Utility Division is funded through transfers from the Water and Wastewater Division revenues. In FY16/17 the Utility Division transfer was overfunded resulting in the ability for the one-year decreases in funding for the Water and Sewer Division for FY17/18 as identified.
223
Public Works Water Division
Public Works Water Division Mission The primary focus and overlying responsibility of the Water Division is to provide a safe and reliable supply of potable water. This is accomplished by producing, treating water and conducting over 500 required water samples, therefore meeting or exceeding all federal and state health standards. Of major importance to the Water Division employees is providing the consumer with the highest level of customer service possible. We believe this inspires public trust within the community. In summary, Water Division employees undertake the following tasks:
• Provide safe potable water that meets or exceeds State and Federal Drinking Water Regulations.
• Water Production – The Division maintains four iron removal filtration treatment plants served by eight active wells. The City has two emergency or backup wells that have no iron removal filtration but do have temporary chemical feed buildings.
• Water Storage consists of four elevated water storage tanks with a combined storage capacity of 2,750,000 gallons.
• One booster pumping station.
• Water metering provides meter readings to the Finance Department for utility billing and maintains an ongoing meter replacement program of approximately 7,800 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.
• The Water Division plays an important part in the maintenance and future development of City’s Global Information System.
224
Public Works Water Division – Organizational Chart
Water Division Superintendent
Mike Palmer
Water Operator II
Doug Mace
Water Operator II
Bryan Scheel
Maintenance Worker
Chris Sandoz
Maintenance Worker
Greg Oliver
225
Public Works Water Division – FY16/17 Accomplishments
• Met or exceeded all State and Federal Drinking water regulations.
• Of major importance to the four full-time Water Division employees is providing the consumer with the highest level of customer service possible. We believe this inspires public trust within the community.
• In 2016, the Water Division produced 781 million gallons of potable water and provided meter readings for 7,800 water and sewer accounts for billing purposes.
• 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.
• Received 20th consecutive annual fluoride award from the Illinois Department of Public Health.
• Responded to over 5,500 J.U.L.I.E. locate requests.
• Justified one additional employee to be a part of the inventory and maintenance program, over 1,200 water meters were replaced in 2016.
• Completed the repainting of Water Tower #3 located east of the river in the Adam’s Industrial Park.
• Cleaned filter media at WTP #3 and WTP #4.
• Installed new pumping equipment in Well #8.
• Completed Hy-Rip treatment on Well #2
226
Public Works Water Division – FY17/18 Goals & Objectives
• Continue to meet or exceed all Federal and State drinking water regulations.
• Create a lead service line inventory data base.
• Solicit bids for Water Treatment Plant #4 exterior building maintenance.
• Reinstitute Well inspection/Maintenance/Repair.
• Change out an additional 1,200 “Trace” transponders.
227
Public Works Water Division – FY17/18 Performance Measures
Performance Item Performance Goal Performance Measure FY17/18 Proposed Outcome(s) IEPA Compliance Achieve 100% compliance in all categories Was 100% compliance achieve with no violations 100% compliance is expected with no violations Respond to Customer Inquiries and Complaints Respond to all inquiries within 24 hours of receiving Percentage responded to within 24 hours 100%
Capital Projects Complete all Capital Projects on time within budget Were projects completed on time and within budget 100%
Meter Replacement Replace 1200 meters Were 1,200 meters replaced in the previous year Yes Safety –Personal Injury/Vehicle Accidents Zero Injuries/ Accidents How many reported injuries/accidents Zero
228
Public Works Water Division – Revenues Summary Total Revenues FY13/14 Actual – FY17/18 Proposed
$1,900,000
$2,000,000
$2,100,000
$2,200,000
$2,300,000
$2,400,000
$2,500,000
FY13/14
Actual FY14/15
Actual FY15/16
Actual FY16/17
Budget FY16/17
Estimated FY17/18
Proposed
$2,176,937
$2,106,113 $2,129,783
$2,484,359
$2,266,992
$2,169,072
229
Public Works Water Division – Expenditures Summary Total Expenditures FY13/14 Actual – FY17/18 Proposed
FY17/18 Proposed Expenditures by Type
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
FY13/14
Actual FY14/15
Actual FY15/16
Actual FY16/17
Budget FY16/17
Estimated FY17/18
Proposed
$1,838,570
$2,018,856 $2,076,487
$2,476,706
$2,286,407
$2,160,089
$655,498
24%
$287,500
11%
$153,900
6%
$1,613,191
59%
Personnel
Contractual
Supplies
Other
230
231
232
233
Public Works Wastewater Division
Public Works Wastewater Division Mission It is the mission of the Public Works Department Wastewater Division to protect public health and the environment by treating sewage to meet stringent environmental standards prior to discharge. The functions of the wastewater division are to operate and maintain two wastewater treatment plants and nineteen lift stations. The goal of the Wastewater Division is to efficiently maintain these facilities and to produce plant effluents that either meet or exceed State and Federal standards. The division is also responsible for the removal and disposal of all the by-products generated by the treatment process. This is accomplished by daily testing and monitoring of the treatment process and by operating the sludge de-watering machines. In summary, Wastewater Division employees undertake the following tasks:
• Provide for the operation and maintenance of two wastewater treatment plants and the care and upkeep of nineteen lift stations
• Conduct daily testing to ensure the treatment processes are working correctly and make any necessary changes to operations
• Maintain records on the amount of wastewater treated and the quality of water discharged to the Fox River and report this information to the Illinois Environmental Protection Agency in compliance with NPDES permits.
234
Public Works Wastewater Division – Organizational Chart
Wastewater Division
Superintendent
Russell Ruzicka
Assistant Wastewater
Superintendent
(Vacant)
Mechanic
Kevin Beggs
Wastewater Operator II
Daniel Duffy
Wastewater Operator II
John Kuhl
Wastewater Operator II
Russell Adams
Wastewater Operator II
Bryan Thome
Maintenance Worker
David Fees
235
Public Works Wastewater Division – FY16/17 Accomplishments
• In 2016 the Wastewater Division achieved 100% compliance with the NPDES permits. No violations were recorded at either treatment plant.
• The Fieldstone lift station was completely rebuilt in 2016 which included new pumps, guiderails, electrical controls, control panel and a new entry hatch. This was a CIP for FY2015/16.
• The Wastewater Division purchased its first hook-lift truck and roll-off dumpsters. This was also included in FY 2015/16 CIP.
• In January 2016, construction began on the treatment plant consolidation and expansion project:
o To date the new 48” concrete effluent pipe has been installed from the South Treatment Plant to the Fox River.
o The disk filter/UV disinfection building has been erected and the disk filters were installed.
o The dryer building has also been built and the dryer has been put in place. Process piping, installation of all mechanical components, and electrical installation work will continue.
o Upgrades to the drain station at the South Treatment Plant have been completed. Both newly installed micro- screens are in use.
o The concrete shells of the SBR’s (sequencing batch reactors) have been formed and poured. In the next year all of the mechanical parts, internal piping and electrical work will continue. The SBR’s are expected to be operational in the fall of 2017.
o Construction is underway at the new regional pump station located at the current Central Treatment Plant. The regional pump station will transfer all of the flow currently coming into the Central Plant to the new treatment plant on the south side (the SBR’s). The foundation for this pump station has been built. The installation of the new wastewater screens, new pumps and controls will be occurring later this year.
o The force main portion of the consolidation project, connecting the two treatment plants, was let out to bid, awarded and completed in 2016.
• Riverside Avenue lift station pumps and controls were upgraded.
• Also in 2016 the Freund Ave lift station received a new electric supply and new control cabinets.
236
Public Works Wastewater Division – FY17/18 Goals & Objectives
• Continue to meet or exceed the NPDES permit requirements and regulations as set forth by the Illinois Environmental Protection Agency.
• Operate treatment plants and lift stations in a manner that minimizes the potential for a sanitary sewer overflow.
• Look for ways to continue to achieve the high level of service and minimize operating costs.
• Continue to oversee the construction/consolidation project to ensure the project is completed on time and on budget.
237
Public Works Wastewater Div – FY17/18 Performance Measures
Performance Item Performance Goal Performance Measure FY17/18 Proposed Outcome(s) Compliance with all NPDES Permits issued by the IEPA 100% Compliance with all permits at all times Annual inspection/evaluation and monthly reports Satisfactory annual inspection/report and no violations on monthly reports Sludge Production Reduce the quantity of sludge produced and hauled
Track sludge production/hauled and calculate disposal cost
A lower expense for sludge disposal Energy consumption Decrease the amount of energy used
Start tracking and analyze utility bills Reduced utility bills
Lift Stations Reduction in number of off hours call-outs
Track the number of call-outs to each lift station Less call-outs equal lower overtime costs CWWTP/SWWTP Consolidation
Have construction done on time and not over budget Attend all construction meetings and make sure contractors complete their work as scheduled
Substantial completion by December 2017 and final completion by January 2018
238
Public Works Wastewater Division – Revenues Summary Total Revenues FY13/14 Actual – FY17/18 Proposed
$2,800,000
$2,850,000
$2,900,000
$2,950,000
$3,000,000
$3,050,000
$3,100,000
$3,150,000
$3,200,000
$3,250,000
FY13/14
Actual FY14/15
Actual FY15/16
Actual FY16/17
Budget FY16/17
Estimated FY17/18
Proposed
$3,075,481
$2,977,628
$2,955,075
$3,246,424
$3,035,136
$3,246,140
239
Public Works Wastewater Division – Expenditures Summary Total Expenditures FY13/14 Actual – FY17/18 Proposed
FY17/18 Proposed Expenditures by Type
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
FY13/14
Actual FY14/15
Actual FY15/16
Actual FY16/17
Budget FY16/17
Estimated FY17/18
Proposed
$2,694,550 $2,710,922 $2,856,299
$3,301,940
$3,124,589 $3,233,115
$1,067,551
23%
$855,450
18%
$229,750
5%
$2,550,364
54%
Personnel
Contractual
Supplies
Other
240
241
242
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Public Works Utility Division
Public Works Utility Division Mission The City of McHenry Utility Division is committed to providing the highest level of customer service to its residents and consumers. Maintaining the water distribution and sanitary sewer collection systems to peak performance will continue to ensure reliable services to City of McHenry’s residents, and businesses. This will enhance public safety within the community. The Utility Division maintains and repairs all water mains, valves, fire hydrants, and "buffalo" boxes which are all part of the water distribution system. Another component of the Utility Division is to maintain, clean, and televise the sanitary sewer collection system. In summary, Utility Division employees undertake the following tasks:
• Maintain sanitary sewer collection system.
• Maintain water distribution system.
244
Public Works Utility Division – Organizational Chart
Utility Superintendent
Steve Wirch
Operator I
Sean Johnson
Operator I
Steve Ramirez
Maintenance Worker
Clint Greve
Maintenance Worker
Todd Sasak
Maintenance Worker
Pat Maher
Maintenance Worker
Mike Lange
Maintenance Worker
Ryan Cheney
245
Public Works Utility Division – FY16/17 Accomplishments
• Replaced 10 fire hydrants due to age and non-availability of repair parts.
• Flushed all of the City’s fire hydrants for spring and fall hydrant flushing program.
• Cleaned and televised over a 260,000’ (49 miles) of sanitary main including the subdivisions of Green Valley, Brittany Heights, Country Club Estates, Pebble Creek, Inland Business Park, McHenry Corporate Irish Prairie, Centegra Hospital, the Country Club Subdivisions and others on the maintenance list.
• Repaired 13 water main breaks.
• Repaired 14 water services, replaced 4 lead services from the water main to B-Box.
• Responded to 22 possible sewer backups.
246
Public Works Utility Division – FY17/18 Goals & Objectives
Continue to keep the sanitary collection system well maintained that includes cleaning and televising the entire collection system.
Reduce inflow and infiltration in collection system through the Capital Improvement Program that includes the sanitary sewer main and sewer manhole rehabilitation programs.
Continue to keep the water distribution system well maintained with the water valve maintenance program and fire hydrant spring and fall flushing programs. Also through the water main replacement program through the Capital Improvement Program.
Replace the 8 remaining “Eddy” fire hydrants due to age and non-availability of repair parts.
247
Public Works Utility Division – FY17/18 Performance Measures
Performance Item Performance Goal Performance Measure FY17/18 Proposed Outcome(s) Fire hydrant replacement Replace outdated fire hydrants Number of hydrants replaced Replacement of fire hydrants
Clean & Televise sanitary sewer collection system 100,000 Lineal ft/year Lineal ft/year Clean & televise 100,000 lineal ft/year
Hydrant Flushing Complete spring and fall hydrant flushing programs Flush all hydrants spring and fall Completion of spring and fall flushing programs
Reduce inflow/infiltration Grout manholes/install sealed frames and covers Number of manholes repaired 10 manholes repaired
Valve maintenance Operate valves in distribution system How many valves were operated in distribution system? 25% of valves in distribution system
248
Public Works Utility Division – Expenditures Summary Total Expenditures FY13/14 Actual – FY17/18 Proposed
FY17/18 Proposed Expenditures by Type
$-
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
FY13/14
Actual FY14/15
Actual FY15/16
Actual FY16/17
Budget FY16/17
Estimated FY17/18
Proposed
$- $29,991
$989,312
$1,184,636
$933,208
$1,057,504
$855,454
81%
$27,050
2%
$167,750
16%
$7,250
1%
Personnel
Contractual
Supplies
Other
249
250
251
Fiscal Year 2017/2018 Annual Budget
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FFuunndd
252
Capital Development Fund – Overview This fund accounts for the construction, expansion and/or extension of water and wastewater systems to accommodate new development and growth in the community. Revenues are generated through capital development fees on new residential and non-residential development. Revenues FY13/14 Actual – FY17/18 Proposed
Expenditures FY13/14 Actual – FY17/18 Proposed
$-
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
$400,000
$182,860
$250,840
$388,727
$172,000
$382,319
$312,000
$-
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$228,000
$- $-
$1,195,910 $1,195,910
$-
253
254
Fiscal Year 2017/2018 Annual Budget
UUttiilliittyy
IImmpprroovveemmeennttss FFuunndd
255
Utility Improvements Fund – Overview The Utility Improvements Fund was created to provide a single fund to record revenues and expenses for capital construction projects for the water and wastewater utilities. Transfers from the Water & Sewer Fund and Capital Development Fund are the main sources of revenue for the fund. Expenses are restricted to design engineering, construction, and construction engineering costs for the approved capital projects. Identified expenditures are related to the consolidation of the Central and South Wastewater Treatment Plants. Revenues FY13/14 Actual – FY17/18 Proposed
Expenditures FY13/14 Actual – FY17/18 Proposed
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$247,781 $20,287 $19,940
$2,933,097 $2,935,997
$18,847
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$247,781 $20,287 $19,940
$2,933,097 $2,935,997
$18,847
256
257
Fiscal Year 2017/2018 Annual Budget
MMaarriinnaa OOppeerraattiioonnss
FFuunndd
258
Marina Operations Fund – Overview The City of McHenry acquired the marina in 2000 to be able to expand the Central Wastewater Treatment Plant. After it was acquired it was determined that the wastewater facility could not be expanded at the existed site. Once the Central and South Wastewater Treatment Plant consolidation project is completed, the Central WWTP site can be redeveloped and at this time it is possible that the marina site be incorporated into any redevelopment. At this time the Marina Operations Fund is an enterprise fund that provides for the maintenance of a 60-slip marina on the Fox River. Revenues FY13/14 Actual – FY17/18 Proposed
Expenditures FY13/14 Actual – FY17/18 Proposed
$-
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000 $46,954
$55,730
$43,645
$51,500 $48,324 $50,200
$-
$10,000
$20,000
$30,000
$40,000
$50,000
$35,426
$28,131
$36,642
$46,000
$29,986
$46,000
259
260
Fiscal Year 2017/2018 Annual Budget
IInntteerrnnaall SSeerrvviiccee
FFuunnddss
261
Fiscal Year 2017/2018 Annual Budget
EEmmppllooyyeeee IInnssuurraannccee
FFuunndd
262
Employee Insurance Fund – Overview The City of McHenry recognizes that health insurance benefits are an important component of an employee’s total compensation package, therefore, the purpose of the Employee Insurance Fund is to finance and account for expenditures incurred to provide health insurance benefits to employees. The current health insurance plan provided to employees offers a choice between a PPO (Preferred Provider Organization), an HMO (Health Maintenance Organization), and an HSA (Health Savings Account). Providing employees with a choice of plans allows for flexibility based on preference and affordability. In addition, employees receive dental and vision benefits. All IUOE 150 employees (Public Works, Parks) are required to be on the IUOE 150 insurance plan as per their collective bargaining agreement. Revenues FY13/14 Actual – FY17/18 Proposed
Expenditures FY13/14 Actual – FY17/18 Proposed
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$2,333,043
$2,575,189 $2,765,007
$3,094,568 $3,033,106
$3,493,712
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$2,358,423 $2,589,294
$2,786,425 $3,092,324 $3,011,749
$3,377,801
263
264
Fiscal Year 2017/2018 Annual Budget
RRiisskk MMaannaaggeemmeenntt
FFuunndd
265
Risk Management Fund – Overview The purpose of the Risk Management Fund is to account for all activity related to risk management and insurance costs (other than employee health insurance) including loss control, loss prevention, risk transfer, and risk assessment. The City of McHenry is a member of the McHenry County Risk Management Agency (MCMRMA), a public entity risk pool through which property, general liability, automobile liability, crime, excess property, excess liability, and boiler and machinery coverage is provided. The relationship between the City and MCMRMA is defined through a contractual obligation approved by both the City Council and MCMRMA Executive Board. Revenues for the fund are generated by service charges to the City’s General Fund and non-General Fund operating units. The service charges to the General Fund are provided for the most part by the liability insurance portion of the property tax levy. Incidental revenues from interest earnings and reimbursements from MCMRMA are also occasionally posted to the fund. Revenues FY13/14 Actual – FY17/18 Proposed
Expenditures FY13/14 Actual – FY17/18 Proposed
$680,000 $700,000
$720,000
$740,000
$760,000
$780,000
$800,000
$820,000
$840,000 $821,014 $809,003
$790,610
$728,492 $730,553 $728,491
$560,000 $580,000 $600,000 $620,000 $640,000 $660,000 $680,000 $700,000 $720,000 $740,000
$673,112
$626,228
$659,996
$702,636 $700,231
$727,942
266
267
Fiscal Year 2017/2018 Annual Budget
IInnffoorrmmaattiioonn
TTeecchhnnoollooggyy FFuunndd
268
Information Technology Fund – Overview
Mission The mission of the Information Technology Division is to provide the most innovate, highest quality, technology-based services in a cost-effective manner and to facilitate the achievement of the goals and objectives of each of the City’s operating departments. Information Technology Fund revenues are derived from transfers from the City’s operating departments and expenses are related to the direct provision of technology services by the Division’s two staff members and for the replacement of equipment and software through the municipality. The primary functions of IT staff include:
• Providing efficient technology support for computer systems, web-based applications, voice, video, and integrated data services to all City departments.
• Promoting and facilitating the integration of technology to efficiently meet the overall mission of the City using collaborative efforts through planning, training, and consulting with all departments and service providers.
• Developing, enhancing and managing the City’s networks to provide high-speed transparent, and highly functional connectivity.
• Developing and maintaining highly effective, reliable, secure, and innovative information systems to support each department’s functions.
• Facilitating the collection, storage, security, and integrity of electronic data while ensuring appropriate access.
• Promoting new uses of technology within the organization.
269
Information Technology – Organizational Chart
Deputy City Administrator
Bill Hobson
Information Technology Manager
Ed Larson
Information Technology Specialist
Aaron Greve
270
Information Technology – Expenditure Summary Total Expenditures FY13/14 Actual – FY17/18 Proposed
FY17/18 Proposed Expenditures by Type
$-
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
FY13/14
Actual FY14/15
Actual FY15/16
Actual FY16/17
Budget FY16/17
Estimated FY17/18
Proposed
$389,330 $409,632 $438,926
$515,787
$407,835
$536,087
$195,579
36%
$184,402
34%
$99,249
19%
$56,857
11%
Personnel
Contractual
Supplies
Other
271
272
273
Fiscal Year 2017/2018 Annual Budget
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274
Fiscal Year 2017/2018 Annual Budget
EEmmppllooyyeeee FFlleexxiibbllee
SSppeennddiinngg FFuunndd
275
Employee Flexible Spending Fund – Overview The Employee Flexible spendind account is used to account for employee pre-tax medical spending accounts that are offered as a benefit to City employees. Under the Internal Revenue Service (IRS) rules and regulations, employees can set aside money for certain medical benefits on a pre-tax basis. These benefits include medical expenses not covered under the employee’s health insurance plan. When allowable medical costs are paid by the employee, he or she can get reimbursed from his flexible spending account. Depending on the tax bracket of the employee and the extent of utilization, an employee could potentially save several hundred dollars through medical and dependent care flexible spending deductions. Revenues FY13/14 Actual – FY17/18 Proposed
Expenditures FY13/14 Actual – FY17/18 Proposed
$-
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$82,769
$89,232 $91,021
$85,000
$107,474 $105,000
$-
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$82,769 $89,232 $91,021 $85,000
$107,474 $105,000
276
277
Fiscal Year 2017/2018 Annual Budget
DDeevveellooppmmeenntt EEssccrrooww
FFuunndd
278
Development Escrow Fund – Overview The Development Escrow Fund is a fiduciary fund used to account for assets held by the City in a trustee capacity or as an agent for individuals, private organizations, other governments or funds. The Development Escrow Fund holds funds deposited by developers until such time as certain improvements are completed or in lieu of developer provided improvements. These funds are custodial in nature and do not involve measurement of results of operations. In FY17/18 Development Escrow Funds are being used for the manufacture and installation of a new municipal gateway sign on east Route 120 as part of the Ricky Rockets development project. Revenues FY13/14 Actual – FY17/18 Proposed
Expenditures FY13/14 Actual – FY17/18 Proposed
$(5,000)
$-
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
$190
$33,000
$(56) $500 $50
$25,050
$(5,000)
$-
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
$190
$33,000
$(56) $- $50
$25,000
279
280
Fiscal Year 2017/2018 Annual Budget
RReettaaiinneedd PPeerrssoonnnneell
FFuunndd
281
Retained Personnel Fund – Overview The Retained Personnel Fund is used to account for funds collected as reimbursement and expended for professional and technical services used to assist or advise the City in connection with land development. The City’s retained personnel costs included engineering, legal, planning, and other technical professional matters. The City typically collects a deposit from property owners at the initiation of annexation, zoning, or other development proceedings that approximate the total retained personnel costs expected to be incurred. Revenues FY13/14 Actual – FY17/18 Proposed
Expenditures FY13/14 Actual – FY17/18 Proposed
$-
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$41,120
$88,812
$110,335
$75,000 $72,345 $75,000
$-
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$41,120
$88,812
$110,335
$75,000 $72,345 $75,000
282
283
Fiscal Year 2017/2018 Annual Budget
RReevvoollvviinngg LLooaann
FFuunndd
284
Revolving Loan Fund – Overview The Revolving Loan Fund provides low interest loans to qualified existing and prospective businesses within the City of McHenry. The loan proceeds can be used to assist in the startup of a new business, expand and existing business update existing facilities to make the business more competitive, or provide an incentive for established businesses to relocate to the City. The primary goal of the program is job creation and expansion of the sales and property tax bases. The program requires loan applicants to complete a formal application which is then reviewed by the Revolving Loan Fund Committee – comprised of the Mayor and Finance and Personnel Committee. Terms are identified/negotiated and a recommendation is provided to the full City Council for consideration. Of note, the Revolving Loan Fund itself does not have expenditures as the loans are originated through the City’s identified lender. Revenues are comprised of receivables, or payments, which are budgeted. Revenues FY13/14 Actual – FY17/18 Proposed
$-
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$1,405
$2,540
$1,497
$2,050
$1,618
$2,050
285
286
Fiscal Year 2017/2018 Annual Budget
PPoolliiccee PPeennssiioonn
FFuunndd
287
Police Pension Fund – Overview The Police Pension Fund accounts for retirement benefits for retired police officers and their beneficiaries through employer and employee contributions and investment earnings. The primary purpose of this non-operating budgetary unit is to finance pensions for employees by both employer and employee contributions combined with interest earnings on those contributions. These three revenue streams, if based on sound actuarial assumptions should generate sufficient funds for employee retirement without placing undue burden on the employer or a risk to the pension due the employee. The Police Pension plan is administered by a board of trustees. The duties of the board are to control and manage the pension fund, to enforce the collection of contributions, to hear and determine applications for pensions, to authorize payment of pensions, and to invest funds. Account and actuarial services are provided by the city at no cost to the plan. Financial planning and investment management are provided by outside vendors. The City’s pension plan is a defined benefit plan meaning that regardless of investment performance, the plan is obligated to pay the defined benefit. If the pension plan makes unwise investment decisions, the City is currently obligated to guarantee the obligations. However, as of the year 2033, the pension plan will be self-supporting with no further obligations placed on the City. The City utilizes an independent actuarial study to annually determine the necessary funding for the pension program. The City Council has committed to funding the plan based upon these recommendations. Revenues FY13/14 Actual – FY17/18 Proposed
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000 $3,426,968
$2,778,380
$1,691,311
$2,664,244 $2,921,606
$3,234,219
288
Expenditures FY13/14 Actual – FY17/18 Proposed
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$1,159,485
$1,905,601
$2,097,127
$1,894,336 $1,915,395 $2,011,404
289