Rockford Sun

City of Rockford Finance & Personnel Committee met Jan. 13.

Here are the minutes provided by the committee:

I. CALL TO ORDER 

Attendee Name	Organization	Title	Status	Arrived
Kevin Frost	City of Rockford	Alderman	Absent
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, 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, A. Hammer, A. Parham, T. Hughes, K. Ryan, K. Schroeder, C. Bailey, J. Rubin, S. Capovilla, J. Carter, M. Hakanson, N. Carter.

Interested Parties and Media

II. INFORMATION ONLY 

A. Quarterly Investment Report - September 30, 2024.

C. Hagerty reported on the investment performance through September 30th, noting that the year-end investment report will be presented next month, as it was delayed due to the holidays. Hagerty stated that the information provided is slightly dated but highlighted positive trends, including falling inflation, steady unemployment, and a federal rate reduction in September. The portfolio is performing extremely well, with the core account achieving a 12-month total return of 7.86%, and short-term and Motor Fuel Tax (MFT) accounts yielding 6%. Hagerty confirmed that all accounts are in compliance with the City's investment policy.

Durkee observed that the investment return is slightly lower than market performance and asked if this was due to constraints like bond investments. Hagerty confirmed that this is correct.

Tuneberg requested a recap of the City's financial position a few years ago compared to now, noting the improvements made under the administration and Council's efforts. Hagerty explained that following the 2008 recession, the City faced significant financial challenges, including borrowing to pay bills at the start of the year. During this time, cash reserves were minimal, and funds were held in local bank accounts with minimal returns. The long-term financial plan developed through the NRN initiative highlighted the need for active investment management. After exploring options, the City opted for external management of investments, as there was not sufficient in-house expertise or staffing.

Hagerty noted that the results of these efforts have been substantial. The core account alone has earned $1.6 million in interest and achieved a $2.8 million increase in market value, significantly higher than prior periods. These earnings represent taxpayer money actively working to generate returns, with the funds going back to their originating sources to support operations or capital programs.

Tuneberg expressed appreciation to the administration, the Finance Department, and the Council members who supported these changes, emphasizing the millions of dollars the City would not have gained without this direction. Tuneberg asked if the fees paid to the investment company still result in net positive returns.

Hagerty confirmed that all reported earnings are net of fees, and the cost of active management is very reasonable relative to the yields generated.

RESULT: DISCUSSED

III. COMMITTEE REPORTS 

A. Approval of the vouchers in the amount of $3,347,854.17 as approved at the Finance and Personnel Committee meeting held on January 13, 2025.

RESULT: APPROVED BY COMMITTEE [UNANIMOUS] Next: 1/27/2025 5:30 PM  MOVER: Aprel Prunty, Alderman SECONDER: Franklin C. Beach, Alderman AYES: Franklin C. Beach, Chad Tuneberg, Aprel Prunty ABSENT: Kevin Frost, Jonathan Logemann

B. Proposed sale of the city-owned property located at 815 West State Street (PIN: 11-22-286-016) to Salvation Army for their bid in the amount of $1,000.00. The Legal Director shall prepare the appropriate ordinance.

Beach inquired if his position on the board of directors for the Salvation Army requires him to abstain from voting on the matter. A. Hammer advised that abstaining would be best practice.

RESULT: NO RECOMMENDATION BY COMMITTEE [2 TO 0] Next: 1/27/2025 5:30 PM  AYES: Chad Tuneberg, Aprel Prunty ABSTAIN: Franklin C. Beach ABSENT: Kevin Frost, Jonathan Logemann

C. Approval of an Intergovernmental Agreement (IGA) between the City of Rockford and State of Illinois Department of Transportation (IDOT) for IL-70 (Kilburn Avenue) Resurfacing (Safford Road to Glenwood Avenue) project. The total cost of the project is estimated to be $2,012,500.00, of which the city's share is estimated to be $19,877.00. The funding source is Motor Fuel Tax (MFT) funds. The Legal Director shall prepare the appropriate ordinance.

RESULT: APPROVED BY COMMITTEE [UNANIMOUS] Next: 1/27/2025 5:30 PM  MOVER: Franklin C. Beach, Alderman SECONDER: Aprel Prunty, Alderman AYES: Franklin C. Beach, Chad Tuneberg, Aprel Prunty ABSENT: Kevin Frost, Jonathan Logemann

IV. RESOLUTIONS 

A. Approval of the Resolution approving appropriation of Motor Fuel Tax (MFT) funds for Improvement under the Illinois Highway Code - IL-70 (Kilburn Avenue) Resurfacing (Safford Road to Glenwood Avenue) (25-00676-00-RS) in \the amount of $40,000.00.

RESULT: APPROVED BY COMMITTEE [UNANIMOUS] Next: 1/27/2025 5:30 PM  MOVER: Franklin C. Beach, Alderman SECONDER: Aprel Prunty, Alderman AYES: Franklin C. Beach, Chad Tuneberg, Aprel Prunty ABSENT: Kevin Frost, Jonathan Logemann

B. Approval of the Award of Non-Competitive Contract: Replacement Radio Console to Motorola Solutions, of Chicago, Illinois in the amount of $46,325.97.

This is a one-time purchase. The funding source is the Fire Department's Risk Management Fund.

Prunty asked if the service provider was the only one available and if that was the reason for the non-competitive nature of the purchase. C. Hagerty explained that the equipment being replaced was damaged in a lightning strike, and the replacement is "like for like." A Motorola piece of equipment was destroyed, so it is being replaced with new Motorola equipment. While a different type of equipment could potentially be used, doing so would require additional expenses to make it compatible with the existing system.

RESULT: APPROVED BY COMMITTEE [UNANIMOUS] Next: 1/27/2025 5:30 PM  MOVER: Franklin C. Beach, Alderman SECONDER: Aprel Prunty, Alderman AYES: Franklin C. Beach, Chad Tuneberg, Aprel Prunty ABSENT: Kevin Frost, Jonathan Logemann

C. Approval of the Award of Non-Competitive Contract: Apparatus Repair Aerial Unit 1268 to MacQueen Equipment, LLC, of Weyauwega, Wisconsin in the amount of $36,317.00. This is a one-time purchase. The funding source is the Fire Department Operating Budget.

Prunty asked if the service provider was the only one available and if that was the reason for the non-competitive nature of the purchase. C. Hagerty explained that it is common with specialty equipment to have a sole shop regionally authorized to service a specific type of vehicle. In this case, MacQueen is the licensed repair facility for Pierce, the manufacturer of the City’s equipment, and no other repair facility is certified by the manufacturer to perform this type of repair work.

RESULT: APPROVED BY COMMITTEE [UNANIMOUS] Next: 1/27/2025 5:30 PM  MOVER: Franklin C. Beach, Alderman SECONDER: Aprel Prunty, Alderman AYES: Franklin C. Beach, Chad Tuneberg, Aprel Prunty ABSENT: Kevin Frost, Jonathan Logemann

D. Approval and acceptance of Health and Human Services Department Supplemental Funding Allocation in the amount of $250,000.00. The allocation includes $200,000.00 for investments in technological infrastructure. The remaining $50,000.00 will fund contractual grant writing services. The funding source is the 3% Cannabis Recreation Tax.

Beach asked if the new equipment being purchased is intended to replace existing equipment or if it is for entirely new capabilities. A. Parham explained that the upgrades are primarily aimed at modernizing service delivery, including the ability to process electronic applications and improve customer service efficiency. While some equipment may eventually be purchased, the primary focus is on technological and system upgrades to better serve the community.

Beach inquired about the $50,000 allocated for grant writing services and whether it was for new staff or external services. A. Parham clarified that the funding is for outside services, as the department plans to contract for assistance in exploring additional funding mechanisms.

Meeks thanked Aldermen Frost, Hoffman, and Tuneberg for forming the ad hoc committee to begin this process. Meeks highlighted the importance of the $250,000 supplemental allocation sourced from the 3% cannabis recreational tax, calling it a pivotal moment for the Health and Human Services Department. Meeks emphasized that after over a decade of relying solely on state and federal funding, this allocation marks the City’s first step toward consistent, direct funding for a department that serves the City's most vulnerable populations, including those experiencing poverty, homelessness, food insecurity, and health disparities.

Meeks acknowledged the department's critical role in supporting individuals who have the potential to become active, engaged members of the community. Meeks also commended Director Parham and the team for their ability to leverage resources, maintain partnerships, and deliver vital services despite limited funding, expressing deep gratitude for their dedication and resourcefulness. Further discussion ensued.

RESULT: APPROVED BY COMMITTEE [UNANIMOUS] Next: 1/27/2025 5:30 PM  MOVER: Aprel Prunty, Alderman SECONDER: Franklin C. Beach, Alderman AYES: Franklin C. Beach, Chad Tuneberg, Aprel Prunty ABSENT: Kevin Frost, Jonathan Logemann

V. ADJOURNMENT 

The meeting was closed at 6:32 PM

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