Rockford Sun

City of Rockford Finance & Personnel Committee met Jan. 6.

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	Absent
Chad Tuneberg	City of Rockford	Alderman	Present
Aprel Prunty	City of Rockford	Alderman	Present

Other Attendees:

Mayor McNamara

Council Members; T. Durkee, G. Torina, J. Wilkins, K. Hoffman, 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, A. Hammer, S. Hunter, A. Parham, T. Hughes, K. Schroeder, C. Bailey, J. Rubin, M. Leatherby, J. Cacciapaglia, A. Garrison, E. Hannigan, A. Carlson, S. Capovilla, M. Cordonnier, N. Carter.

Interested Parties and Media

II. INFORMATION ONLY 

A. Financial Discussion - November 2024.

C. Hagerty reported that through November, major revenues are nearly on budget, coming in at half a percent over. Sales tax remains a positive indicator, currently 5% over budget after 9 of 12 disbursements. Use tax is under budget, as expected, due to the shift in taxation when internet sales began being taxed under sales tax instead.

Hagerty noted that the replacement tax, which had been a major source of budget surpluses in recent years, has declined more than anticipated. After 7 disbursements, the City is $1.2 million under budget, or 10% below projections. This decline was anticipated, and the revenue was budgeted conservatively for the upcoming year, knowing that the unusually high surpluses of recent years would normalize.

Overall, the balance of revenues is performing well, with the General Fund currently 7% over budget year-to-date. However, it is still early to project the year-end outcome, with three more sales tax disbursements pending.

On the expense side, three operating departments, Finance and Community Development are over budget due to ARPA-related expenses, which will be offset by ARPA revenue. The Police Department is also over budget due to the transfer of ownership of the District 2 facility, which will be offset by bond proceeds.

Hagerty also reported that CIP funds are 4% over budget on revenue year-to-date, and the Redevelopment Fund is performing strongly, coming in 12% over budget, or approximately $870,000.

RESULT: DISCUSSED

III. COMMITTEE REPORTS 

A. Approval of Vouchers in the amount of $17,778,485.59.

RESULT: APPROVED BY COMMITTEE [UNANIMOUS] Next: 1/13/2025 5:30 PM  MOVER: Franklin C. Beach, Alderman SECONDER: Chad Tuneberg, Alderman AYES: Kevin Frost, Franklin C. Beach, Chad Tuneberg, Aprel Prunty ABSENT: Jonathan Logemann

B. Approval of Addendum to Asset Purchase Agreement with Metro Fiber Solutions, of Rockford, Illinois in the amount of $1.00. This is a one-time payment. The funding source is the Information Technology Operating Budget.

RESULT: APPROVED BY COMMITTEE [UNANIMOUS] Next: 1/13/2025 5:30 PM  MOVER: Aprel Prunty, Alderman SECONDER: Chad Tuneberg, Alderman AYES: Kevin Frost, Franklin C. Beach, Chad Tuneberg, Aprel Prunty ABSENT: Jonathan Logemann

IV. RESOLUTIONS 

A. Void Contract Award and Take New Bids: Lead Service Line Replacement Program Phase 7 (Bid No. 824-PW-084). Future bids will be updated according to the funding requirement and will not include the vendor’s election for the local business downward adjustment.

RESULT: APPROVED BY COMMITTEE [UNANIMOUS] Next: 1/13/2025 5:30 PM  MOVER: Franklin C. Beach, Alderman SECONDER: Chad Tuneberg, Alderman AYES: Kevin Frost, Franklin C. Beach, Chad Tuneberg, Aprel Prunty ABSENT: Jonathan Logemann

B. Award of Bid: Water Division Electrical Services to Mechanical Inc., and Morse Electric, both of Freeport, Illinois also William Charles Electric, and Miller Engineering Co., both of Rockford, Illinois for an estimated contract amount of $125,000.00 (based on unit pricing). The contract duration is through December 31, 2025 with four (4) possible annual extension options. Annual price adjustments for CPI considered at contract renewal only.

RESULT: APPROVED BY COMMITTEE [UNANIMOUS] Next: 1/13/2025 5:30 PM  MOVER: Franklin C. Beach, Alderman SECONDER: Aprel Prunty, Alderman AYES: Kevin Frost, Franklin C. Beach, Chad Tuneberg, Aprel Prunty ABSENT: Jonathan Logemann

C. Resolution approving appropriation of Motor Fuel Tax (MFT) funds for Improvement under the Illinois Highway Code - Region 1 Planning Council FY 2025 Funding (24-00667-00ES) in the amount of $91,308.49.

RESULT: APPROVED BY COMMITTEE [UNANIMOUS] Next: 1/13/2025 5:30 PM  MOVER: Franklin C. Beach, Alderman SECONDER: Chad Tuneberg, Alderman AYES: Kevin Frost, Franklin C. Beach, Chad Tuneberg, Aprel Prunty ABSENT: Jonathan Logemann

D. Award of Joint Purchasing Contract: Four (4) Demers MPX170 Ford F550 4x4 Diesel Type Ambulances from MacQueen Equipment, LLC, of Saint Paul, Minnesota in the amount of $1,539,084.00. This is a one-time purchase. The funding sources are Capital Lease Funds and Fire Department Capital Budget.

Prunty asked where the funding from the sale of retired vehicles is allocated after being put up for auction. C. Hagerty explained that the revenue from these sales is directed into a specific Equipment Replacement Fund, referred to as the Capital Lease Fund. This fund tracks all related revenues and expenses. The proceeds from vehicle sales, along with revenue from video gaming terminal taxes designated specifically for equipment replacement are used to offset lease payments for new equipment. These two funding sources cover approximately 20% of the total lease payment costs, though not all expenses.

Prunty inquired if there is a minimum goal for resale values or if vehicles are sold regardless of the amount received. C. Hagerty responded that vehicles are typically sold at auction, the preferred method outlined in the City’s purchasing ordinance. Public equipment is listed on specialized auction websites where fire trucks and similar equipment are marketed to other fire districts and smaller municipalities to ensure the best return.

Prunty asked if City equipment, including police vehicles, could be sold to anyone. C. Hagerty confirmed that since the auctions are public, any individual could purchase retired equipment. However, all identifying features such as City logos, radios, cages, and any equipment not appropriate for public use are removed before the items are listed. While it's possible for members of the public to purchase items like old fire trucks, sales typically target other municipalities and organizations.

Prunty mentioned seeing individuals driving what appeared to be old police cars.

C. Hagerty explained that anything deemed inappropriate for public use would be removed before resale.

RESULT: APPROVED BY COMMITTEE [UNANIMOUS] Next: 1/13/2025 5:30 PM  MOVER: Chad Tuneberg, Alderman SECONDER: Aprel Prunty, Alderman AYES: Kevin Frost, Franklin C. Beach, Chad Tuneberg, Aprel Prunty  ABSENT: Jonathan Logemann

E. Award of Joint Purchasing Contract: Four (4) Pierce Enforcer PUC Pumpers (Engines) and One (1) Pierce Velocity 105' HDL PUC Aerial (Ladder) from MacQueen Equipment, LLC, of Saint Paul, Minnesota in the amount of $7,285,000.00. This is a one-time purchase. The funding sources are Capital Lease Funds and Fire Department Capital Budget.

RESULT: APPROVED BY COMMITTEE [UNANIMOUS] Next: 1/13/2025 5:30 PM  MOVER: Chad Tuneberg, Alderman SECONDER: Aprel Prunty, Alderman AYES: Kevin Frost, Franklin C. Beach, Chad Tuneberg, Aprel Prunty ABSENT: Jonathan Logemann

F. Renewal of Contract: Workers' Compensation Excess Coverage 2025 to Safety National Casualty Corporation, of St. Louis, Missouri for the contract amount/rates: Premium is based on estimated annual payroll of $99,606,516.00 at $0.2479 per $100.00 of payroll, for a total estimated annual premium of $246,925.00. The contract duration is one-year. The funding source is the Workers' Compensation Fund.

RESULT: APPROVED BY COMMITTEE [UNANIMOUS] Next: 1/13/2025 5:30 PM  MOVER: Franklin C. Beach, Alderman SECONDER: Chad Tuneberg, Alderman AYES: Kevin Frost, Franklin C. Beach, Chad Tuneberg, Aprel Prunty ABSENT: Jonathan Logemann

G. Approval of Memorandum of Understanding (MOU) with Winnebago County for Edward Byrne Memorial Justice Assistance 2024 Grant. The total award is $322,910.00 with 60% ($193,746.00) staying with the City and 40% ($129,164.00) going to the County.

RESULT: APPROVED BY COMMITTEE [UNANIMOUS] Next: 1/13/2025 5:30 PM  MOVER: Chad Tuneberg, Alderman SECONDER: Aprel Prunty, Alderman AYES: Kevin Frost, Franklin C. Beach, Chad Tuneberg, Aprel Prunty ABSENT: Jonathan Logemann

V. ADJOURNMENT 

The meeting was closed at 6:47 PM

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