Rockford Finance & Personnel Committee Meeting Summary - March 9, 2026
Rockford Finance & Personnel Committee Meeting Summary - March 9, 2026
The Finance and Personnel Committee met on March 9, 2026, at 5:30 PM to review the quarterly investment report and act on several financial items, including vouchers, line of credit amendments, lien reductions, hiring requests, and multiple contract awards. The meeting included discussion of lead service line replacement requirements, fleet vehicle needs, and an objection to a recorded vote.
Information Only
- Quarterly Investment Report (December 31, 2025): Presented by the finance team. The Federal Reserve cut rates by 50 basis points in Q4 2025; unemployment trended higher but consumer spending remained resilient. Portfolio performance: Core account total return of 6%, short-term account 4.18%, and Motor Fuel Tax account 4.62%. The portfolio was in compliance with policy. Alderman Toomber noted that for the 12-month period, interest earned was $2,843,419 in the core account, $149,337 in the short-term account, and $280,322 in the MFT account, totaling over $3 million. He thanked PFM Asset Management for transparency and frugal fees.
Committee Reports
- Approval of Vouchers ($8,477,407.67): Approved unanimously without discussion.
- Eighth Amendment to Line of Credit Agreement with Associated Bank: Approved to extend the line of credit for an additional year. Staff estimated that based on current payments, the balance will be paid off in about two years.
- Lien Reduction Request for 2213 Wentworth Avenue ($7,933.40): Approved. Alderman Toomber noted that the property owner (Mr. Naruz, business owner of Toad Hall in his ward) experienced a miscommunication regarding a mailed notice but acted in good faith. The legal department confirmed compliance with statutory requirements for demolition notice.
- Approval of Hiring Request: Water Division – Two Project Managers and One Water Utility Technician: Estimated annual cost $394,100; total with vehicles $513,100; funding from Water Fund Operating Budget. Motion passed. Discussion included:
- Alderman Durkey questioned whether new vehicles were necessary. Staff clarified no fleet vehicles were available and that these field employees will use vehicles during work hours only.
- Alderman Toomber asked for details: the project managers will oversee the lead service line replacement program; the technician will locate storm and water facilities for JULIE locates.
- Alderman Toomber further explained that federal regulations will require replacement of approximately 30,000 lead service lines starting in 2027, with a goal of 3,000 per year (current annual replacement is about 850). Total cost estimated at $500 million over 10 years. Staff noted that additional contractors are being sought through bidding.
- Alderman Salgado asked if the positions are permanent. Staff stated they are planned as permanent but will be reevaluated after the 10-year program.
- Alderman Torina asked about workforce development potential for lead service line replacement (similar to sidewalk program). Staff said opportunity could be explored but noted the work involves entering homes, requiring licensed plumbers.
Resolutions (All approved unanimously unless noted)
- 1. Sole Source Contract: Generator & Switchgear Services (Altorfer Cat, $100,000/yr): One-year contract with four annual extension options. Water Fund Operating Budget.
- 2. Professional Services: 2026 Water System Improvements Design & Inspection (Fehr Graham, up to $2.5M in 2026, $6.25M each in 2027 and 2028): Contract through Feb. 28, 2027 with two one-year extensions. Alderman Salgado confirmed it was awarded under the Professional Services Selection Act (qualifications-based). Staff noted Fehr Graham has worked with the city since 2019 on lead service lines, managing scheduling, funding, and observation.
- 3. RFP: Water Main Capacity – Fire Hydrant Flow Testing & Assessment (M.E. Simpson Co., $73,000): Through Dec. 31, 2026 with four annual options. Fire and Water Department Operating Budgets.
- 4. Joint Purchase Contract: 2026 Light Duty City-Wide Vehicles (Enterprise Fleet Management, $117,729): 48-60 month terms. Water Division Capital Lease Budget.
- 5. Bid: Sidewalk & ADA Repairs Package #1 2026 (TCI Concrete, $112,894.75): Through May 15, 2026. 1% Infrastructure Sales Tax.
- 6. Bid: City-Wide Pavement Preservation – Microsurfacing 2026 (AC Pavement Striping Co., $490,809.90): Through Oct. 2, 2026. Motor Fuel Tax (MFT) Funds.
- 7. Bid: City-Wide Pavement Rejuvenation 2026 (Corrective Asphalt Materials, $342,026.96): Through July 31, 2026. MFT Funds.
- 8. Bid: City-Wide Bridge Preservation 2026 (M & M Concrete, $59,940.85): Through July 31, 2026. MFT Funds.
- 9. Design Engineering Agreement: Beverly Park Floodplain Reconnection (HR Green, $105,936 not-to-exceed): Through July 2027. CIP General Fund.
- 10. ILETSB FY26 Camera Grant Acceptance ($262,464): No cost match; term July 1, 2025 – June 30, 2030; covers licensing and storage for Axon body cameras.
- 11. Non-Competitive Contract: Police Vehicles (Rock River Ford, $1,582,589 for 37 vehicles): One-time purchase. Capital Lease Funds and Police Department Operating Budget. Alderman Toomber thanked staff for selecting smaller, more budget-friendly vehicles for investigators.
- 12. Sole Source Contract: Fire Apparatus & Ambulance Supplies (Macqueen Equipment, $120,000/yr): Through Dec. 31, 2026 with four annual options. Fire Department Operating Budget.
- 13. Sole Source Contract: Fire Apparatus Supplies & Service Repair (JX Truck Center, $100,000/yr): Same terms as #12.
- 14. Resolution: Authorizing Central Services Manager to Execute Extension of Electrical Municipal Aggregation Supply Contract: Approved.
Voting Discrepancy
- After adjournment was moved, Alderman Toomber stated he was recorded as a "yes" on Committee Report #3 (Lien Reduction Request for 2213 Wentworth Avenue) but believes he voted no. The committee chair noted that the vote cannot be changed without full council approval. The issue was deferred to the next meeting.
Meeting Transcript
Welcome to the finance and personnel committee meeting. Uh Sir Clerk, please take roll. Here. All right, thank you. Uh first item is an information only item. It is a the quarterly investment report uh for the quarter end of December 31, 2025. Yes, thank you, sir. Uh so again, this is through the end of 2025. So uh obviously we've had some uh changes since then, but we'll highlight where the portfolio ended at the end of the year. Um just sort of generally the feds cut uh rates by 50 basis points or half a percent in the last quarter of the year. Unemployment trended higher, resulting in net new job creation near zero. Uh but on the positive side, signs of growth and disposable personal income and resilient consumer spending. Our uh portfolio performance is outlined in the memo um year end for our core account, total return of six percent. Um in our short-term account, which we are in the process of closing, um, is at four point one eight percent, and our motor fuel tax account at four point six two percent. Uh the portfolio is in compliance with our investment policy, um, and I'm happy to answer any questions anyone has. Thank you. Are the any questions? All right. Seeing none, thank you for summarizing the lengthy report. Alderman Toomber. Yes, sir. Um, I think to point out also that in the 12 months ended, uh there was two million in the core account, two million eight hundred and forty-three thousand four hundred and nineteen dollars in interest earned. Uh short-term account 149,337. MFT account 280,322. So we have uh over three million dollars in interest earned. Um and so again, going back that I've insinuated before is is uh thank you to all in council and administration at the time that uh got this going. I also uh want to give uh uh a thank you to PFM management, asset management. Um they're they're very transparent on these on the portfolios. Uh you know, to have which are generally because of this strictly fixed income. Um to have the par value coupon uh yield to maturity at cost is is uh very transparent. You don't see that in some other manners, so or in some other institutions. So it does create transparency, which I think not only we but the taxpayers like as well. So thank you. Um not just transparent but very uh frugal on their fees, which is nice as a taxpayer to see that as well. It is, thank you. All right, so uh moving on. Uh item one of the quarterly reports or committee reports is the approval of vouchers in the amount of eight million four hundred and seventy-seven thousand four hundred and seven dollars and sixty-seven cents. Is there a motion to approve vouchers? Any questions or comments on vouchers? Seeing none, all is a favorite and keep it aye. Aye. Opposed? Item B is an approval of the eighth amendment to the agreement with associated bank to extend the lease on a line of credit for an additional year. Is there a motion to approve? Any questions or comments for staff? Seeing none all the reach, go ahead. When is that due to be paid off? Uh so uh Rave is making uh monthly payments towards principal. I would estimate based on the balance we have today and the rate at which they're uh making payments that we've got about two years left. Thank you.
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