Rockford Sun

City of Rockford Finance & Personnel Committee met July 15.

Here are the minutes provided by the committee:

I. CALL TO ORDER

Attendee Name	Organization	Title	Status	Arrived
Kevin Frost	City of Rockford	Alderman	Present
Franklin C. Beach	City of Rockford	Alderman	Present
Jonathan Logemann	City of Rockford	Alderman	Present
Chad Tuneberg	City of Rockford	Alderman	Present
Aprel Prunty	City of Rockford	Alderman	Present

Other Attendees:

Council Members; T. Durkee, G. Torina, J. Wilkins, K. Hoffman, B. Rose, I. Barrios, G. Meeks, J. Bailey, M. Bonne

Staff; T. Cagnoni, C. Hagerty, T. Hinkens, S. Leys, Police Chief C. Redd, Fire Chief M. Pankow, N. Meyer, S. Hunter, A. Parham, T. Hughes, S. Alexander, K. Schroeder, J. Rubin, B. Chidley, S. Capovilla, J. Carter, A. Wilkerson, M. Bloom, N. Carter.

Presenter; J. Turk.

Interested Parties and Media.

Invocation

The Invocation was led by Chaplain Kenneth Hendley.

Pledge of Allegiance

Pledge of Allegiance was led by Alderman Frost.

Public Speakers

1. Prophet Yusef discussed themes of faith and adversity, referencing Psalm 27:1 to highlight ongoing mistreatment of Black veterans in 2024.

2. John Tac Brantley highlighted the wisdom in Proverbs 17:27 and discussed organizing a trip to Alpine pool for 45 people, as well as the enthusiastic response to the Scared Straight tour with over 140 sign-ups and also addressed concerns related to Project 2025.

3. Majdi Saqa recounted an offer made by Miriam Adelson to donate over $100 million to Trump's campaign with the condition that, if elected, he would use his influence to support Israel's complete annexation of the West Bank, eliminating Palestinian Authority control.

4. Larry Robertson was not present.

5. Lola Mae Parham affirmed the city's commitment to adhering to the spirit and intent of the Americans with Disabilities Act, expressing determination and hope. They referenced a biblical passage emphasizing diligence and commitment to their mission.

II. INFORMATION ONLY

A. Financial Discussion - May 2024

C. Hagerty announced that the June financial discussion will take place at the next committee meeting. She reported that general fund revenue is currently over budget by approximately 7%. However, attention is being focused on the Replacement tax, which is running about 14% under budget, and the Use tax, which is 16% under budget year to date. On the expense side, all general fund budgets are currently under budget.

RESULT: DISCUSSED

B. Police and Fire Pension Actuarial Results Presentation.

Durkee raised the question of when we transitioned from independent fund management to state management.

J. Turk mentioned it was phased.

C. Hagerty noted that Fire moved earlier in 2021, with Police following in mid 2021 in two phases. Expressed concern about the consolidation occurring during a challenging market period. Acknowledged that although consolidated funds experienced significant losses in their first full year of investments, it is uncertain if managing funds independently would have yielded significantly better results. Durkee acknowledged that the concern is prompted by the events of 2022, questioning if most plans suffered such significant losses.

C. Hagerty clarified that the experience of significant losses applied to all police and fire consolidated plans.

J. Turk added that timing played a role, resulting in one fund experiencing greater losses than the other.

Tuneberg reminded the group about Illinois restrictions on investments,suggesting that avoiding exposure to the energy sector, which led to losses in 2022, wasn't possible due to these restrictions.

Beach inquired about the earnings related to Fire and Police funds concerning annual payouts.

C. Hagerty explained that over $20 million annually is paid out to pensioners from both funds combined, whereas the gains from investments do not match this payout. Highlighted that the unfunded liability is increasing annually.

Beach asked how the shortfall between earnings and payouts will be addressed. C. Hagerty stated that the shortfall is covered by increasing contributions to the fund, as benefits cannot be reduced or funding methods changed at the local level. Noted that despite good investment returns this year, the key adjustment within local control is the contribution amount, requiring more immediate investment to reduce long-term obligations.

J. Turk mentioned monitoring potential regulatory changes, such as modifications to tier two pension benefits or deadlines for funding ratios.

Beach expressed concern about the increasing annual contributions and requested projections for the next 4-5 years for planning purposes.

C. Hagerty referred to the contribution projection in the agenda packet,

illustrating how contributions will grow based on state-mandated funding targets.

Meeks asked for the current dollar amount of the unfunded liability.

C. Hagerty reported $231 million for Fire and $204 million for Police, clarifying that this is the total obligation for current and future pensioners, where benefits are earned but funds are not yet set aside.

Meeks sought information on the fund's growth over the next few years.

C. Hagerty noted unfunded liability changes based on assumptions like payroll growth rates and potential state-level adjustments.

J. Turk emphasized that investment returns and life expectancy are the primary factors affecting unfunded liability.

RESULT: DISCUSSED

III. COMMITTEE REPORTS

A. Approval of the vouchers in the amount of $13,045,416.55 as approved at the Finance and Personnel Committee meeting held on July 15, 2024.

Tuneberg inquired about expenditures totaling approximately $25,000 for consulting services by Jan Selander, spread across multiple departments. S. Hunter explained that Jan Selander provided training for leadership as well as individual departments, including HR.

Tuneberg questioned and sought clarification that it was for leadership training. S. Hunter clarified that it included leadership, coaching, and team-building training.

Frost mentioned familiarity with Jan Selander's name and thought she was in psychology.

S. Hunter confirmed Jan Selander is a psychologist, counselor, and trained in various capacities, including emotional intelligence and team building.

Frost asked who attended the training sessions.

S. Hunter stated that department heads attended, along with individual departments.

C. Hagerty noted that a significant portion of the expenditure was related to a 3- day supervisory training conducted for public works leadership.

Frost inquired if there would be more charges under this leadership training. C. Hagerty confirmed there are other employees undergoing coaching, and additional training sessions are scheduled.

Tuneberg sought clarification if the $25,000 expenditure included costs beyond the 3-day training.

C. Hagerty affirmed it was not just for the 3-day training, though that was the largest payment in the voucher.

RESULT: APPROVED BY COMMITTEE [UNANIMOUS] Next: 7/29/2024 5:30 PM MOVER: Franklin C. Beach, Alderman SECONDER: Jonathan Logemann, Alderman AYES: Frost, Beach, Logemann, Tuneberg, Prunty

B. Approval of the Lease Agreement between the City of Rockford and Tan Wee d/b/a Happy Wok for the property located at 211 Elm Street, Suite D for a five (5) year term with an expiration date of July 31, 2029. The Legal Director shall prepare the appropriate ordinance.

RESULT: APPROVED BY COMMITTEE [UNANIMOUS] Next: 7/29/2024 5:30 PM MOVER: Franklin C. Beach, Alderman SECONDER: Chad Tuneberg, Alderman AYES: Frost, Beach, Logemann, Tuneberg, Prunty

C. Approval and acceptance of the Intergovernmental Agreement (IGA) between the City of Rockford and the County of Winnebago for Project Safe Neighborhoods Fiscal Year 2023 Grant Award in the amount of $25,000.00. The agreement does not require a cost match. The term is from January 1, 2024 to September 30, 2026. The funds will be used to purchase cameras and equipment for a quick deploy vehicle. The Legal Director shall prepare the appropriate ordinance.

RESULT: APPROVED BY COMMITTEE [UNANIMOUS] Next: 7/29/2024 5:30 PM MOVER: Jonathan Logemann, Alderman SECONDER: Chad Tuneberg, Alderman AYES: Frost, Beach, Logemann, Tuneberg, Prunty

IV. RESOLUTIONS

A. Approval of the Change Order: Police Vehicles Equipment and Installation (Bid No: 324-PD-035) to Dana Safety Supply, Inc., of Greensboro, North Carolina.

Original Contract Amount: $444,216.00

Current Proposed Change Order: $41,934.00

Amended Contract Total: $486,150.00

The original bid did not include the installation of the moving radars as well as graphics for vehicles. The change order includes installation of the moving radars and printing and installation of reflective graphics for the SUVs. The funding source is Capital Lease Funds/Police Department Capital Budget.

Tuneberg asked Chief Redd if there was any better idea when the vehicles will be installed and ready to go.

Chief Redd stated that they are looking at the vehicles to start rolling in August of this year.

Tuneberg asked for confirmation that it is 37 vehicles.

Chief Redd affirmed this, in reference to the installation.

RESULT: APPROVED BY COMMITTEE [UNANIMOUS] Next: 7/29/2024 5:30 PM MOVER: Jonathan Logemann, Alderman SECONDER: Chad Tuneberg, Alderman AYES: Frost, Beach, Logemann, Tuneberg, Prunty

B. Approval and acceptance of the Department of Commerce and Economic Opportunity (DCEO) LIHEAP Health and Human Services (24-224023) Grant Award for additional funds in the amount of $4,015,550.00 (the new grand total is $6,495,788.00). The grant does not require a cost match. The grant term is from October 1, 2023 to August 31, 2025. The grant will provide funds for approved clients' electric and/or heating bills, clients' energy usage education, staff training, payroll and administration.

RESULT: APPROVED BY COMMITTEE [UNANIMOUS] Next: 7/29/2024 5:30 PM MOVER: Jonathan Logemann, Alderman SECONDER: Aprel Prunty, Alderman AYES: Frost, Beach, Logemann, Tuneberg, Prunty

C. Approval of the Award of Joint Purchasing Contract: Office Supplies and Furnishings to Logsdon Stationers, Inc., of Addison, Illinois in the estimated annual amount of $175,000.00. The contract duration is one (1) year with four (4) possible one-year extension options. The funding source is Departmental Operating Budgets.

RESULT: APPROVED BY COMMITTEE [UNANIMOUS] Next: 7/29/2024 5:30 PM MOVER: Jonathan Logemann, Alderman SECONDER: Chad Tuneberg, Alderman AYES: Frost, Beach, Logemann, Tuneberg, Prunty

D. Approval of the Award of Engineering Agreement: Storm Water Ordinance Revisions to H.R. Green, Inc., of Cedar Rapids, Iowa in the amount of $110,380.00. The ordinance revisions will look to modernize and simplify our ordinances, while still meeting our requirements under our National Pollutant Discharge Elimination System (NPDES) Permit. The funding source is 1% Sales Tax.

Logemann was curious about the revisions being modernized to simplify ordinances and what examples of that would look like, mentioning that many have received questions about storm sewer issues in the last 48 hours. J. Carter explained that the current ordinance is so complex that it requires a civil engineer to understand it. The goal is to modernize it so that developers do not need to hire an engineer just to interpret it. This includes adding workflow charts that provide clear instructions, such as "if this, then do that." Additionally, the ordinance is currently one-size-fits-all for the entire city. The new approach might involve having different ordinances for different parts of the City, more restrictive in flood-prone areas and less restrictive in areas without flooding challenges, all while still meeting NPDES standards. The aim is to give staff more discretion; for example, under the current ordinance, adding even one parking space to a parking lot triggers a full stormwater analysis. The proposed changes would allow for up to 1,000 square feet of improvements before requiring such an analysis, thereby avoiding unnecessary costs for consulting firms.

RESULT: APPROVED BY COMMITTEE [UNANIMOUS] Next: 7/29/2024 5:30 PM MOVER: Franklin C. Beach, Alderman SECONDER: Jonathan Logemann, Alderman AYES: Frost, Beach, Logemann, Tuneberg, Prunty

http://rockfordcityil.iqm2.com/Citizens/FileOpen.aspx?Type=12&ID=2580&Inline=True