Rock Island Today

City of Colona City Council met April 14.

Here are the minutes provided by the council:

CALL TO ORDER: 6:00 p.m.

PLEDGE OF ALLEGIANCE:

Those in attendance stood for the pledge of allegiance.

ROLL CALL:

PRESENT: Aldermen Stablein, Lack, Waterman, Painter, Swemline, Jones and Shady-Dahl (VIA Phone).

Mayor Ropp, Treasurer Legare, Public Works Director (PWD) Erichson, Police Chief Swemline, Mayor-Elect Brian Johnson and Administrative Clerk Jonathan Maust

ABSENT: Alderman Dooley, City Attorney Wright

PUBLIC COMMENTS:

None. Todd Forbes video recording and City audio Recording

MAYOR’S REPORT:

DISCUSSION:

Mayor brought the following to the Council’s attention:

Mid-American acceptance of our ordinances for granting franchise agreements for gas and electrical supply received and filed

Memorial Day Road Closure Permits applied for through IDOT Gazebo on 5th street/6th street crossing has had its roof replaced by Burrage. Forwarded check for Memorial Day Parade committee and working through liquor license application.

TIF attorney rate increase May 1

Mike Stephens deposed for Andrews case.

Railing is being worked on the new handi-cap ramp at City Hall CSFP soft opening 16th, pool filled

Jeff Reddick called about property transfer close to sluggers

1. Announce Public Hearing on Budget and Council Meeting April 28, 2025 at Colona Scott Family Park Club House 5775 Poppy Garden Rd. Colona, IL 61241

2. Auditors Schedule of Findings and Responses and City’s Corrective Action Plan for Current Year Findings.

To avoid confusion and for clarification Mayor Ropp specifically requested the Auditor’s Corrective Action Plan for Current Year Findings be entered verbatim from the documents released to the city of the auditor’s findings and the plan offered to mitigate and remedy the findings.

Section I – Audit findings in relation to financial statements

2024-001 Segregation of Duties

Criteria or Specific Requirement: Internal controls should be in place that provide reasonable assurance that not one individual handles a transaction from its inception to its completion.

Condition: There is inadequate control over the function of cash receipts, billing and bank reconciliations for the city due to inadequate segregation of duties. Context: The City should have adequate staffing to properly segregate the duties. Effect: As a result of this condition, there is a higher risk that error or irregularities could occur and not be detected and corrected within a timely period. Cause: The City has a limited number of staff to allow for adequate segregation of duties.

Auditor’s Recommendation: Management and the Board’s close supervision and review of accounting information appears to be the most economical and appropriate manner to help prevent and detect errors and irregularities in the City’s accounting and financial reporting.

April 8th 2025, Mayor Ropp submitted the following Corrective Action Plan for finding 2024-001: Allowable Activities and Period of Performance.

Corrective Action Plan – Segregation of Duties

The Mayor and City Council have determined that it is necessary to increase staffing in the offices of City Hall. The Utility Billing Clerk position has been changed from a part-time position to a full-time position. The Mayor and City Council have also approved to reinstate a full-time City Collector position in which management is currently looking to fill. It is the hope that with the additional staff, increased segregation of duties will be possible.

Bank reconciliations will be reviewed monthly by the chairman of the finance/administration committee. The Finance/Administration Chair will complete a form verifying that all bank reconciliations were reviewed and any issues/questions will be noted on such forms. The completed form will be presented to the Finance/Administration Committee and entered into the meeting minutes. The completed form will also be included in the monthly financial reports to the Mayor and City Council.

The Mayor, City Council, and Finance/Admin Committee will continue to remain involved in the monthly financial reports to the Mayor and City Council.

Person(s) Responsible: Mayor, City Council and Finance/Administration Committee.

Timing for Implementation: Actively working on plan. Will be an ongoing process.

2024-002 Annual Tax Incremental Finance Report

Criteria or Specific Requirement: The City Must submit their annual tax Incremental Finance Report to the Illinois Comptroller’s website timely and hold the annual joint review board meeting.

Condition: The City was not able to submit the annual tax incremental finance report timely and did not hold the annual joint review board meeting. Context: Annual TIF reports documenting all revenues and receipts must be filed timely with the State Comptroller and sent to all taxing districts and join review board

Effect: With the annual tax Incremental Finance Report not having been submitted timely and the join review board meeting not being held, the city may receive delayed funding related to their TIF district.

Cause: the city did not submit the annual tax incremental finance report within 180 days of year end. The late submission was due to the 2023 audit being received late and that an extension had to be filed with the comptroller website for the TIF reports for FY2023. The 2024 TIF reports also had a late submission due to the previous auditor delaying the release of the City’s information, so it delayed the 2024 audit.

Auditor’s recommendation: management and the board should continue to work together to ensure the Annual Tax Incremental Finance Report is submitted by the annual due date and a joint review board meeting is held annually.

April 8th 2025, Mayor Ropp submitted the following Corrective Action Plan for finding 2024-002: Allowable Activities and Period of Performance

Corrective Action Plan – Annual Tax Incremental Finance Report

The City has experienced recent turnover with the City Clerk position as well delayed receipt of the Annual Financial Reports from our previous auditors, who were also experiencing staffing shortages. As a result of the delay of the Annual Financial Report, the Annual Ex Incremental Finance Report was delayed. The City has since contracted with a new auditing firm in hopes of receiving the Annual Financial Report before the reporting deadline to the Illinois State

Comptroller. This should alleviate late submissions in the future. The Mayor and the City Clerk will work together to ensure that the joint review board meeting is held annually.

Person(s) Responsible: Mayor and City Clerk

Timing for Implementation: Immediate

2024-003 Water and Sewer Receivable account Reconciliations Criteria or Specific Requirement: An accounting system should provide timely and accurate information for management. The reconciliation of account balances is an integral internal control activity to determine that stated account balances are accurate and fairly reported. City management and accounting personnel should reconcile general ledger accounts to subsidiary ledgers and other supporting documents in a timely and effective manner.

Condition: improperly designed internal controls and account reconciliation procedures allowed for the City to perform inadequate or no reconciliation of the water and sewer receivables.

Context: In planning and performing our audit procedures, we obtained an understanding of the design and implementation of internal controls for significant audit risk and performed audit procedures assessing the effectiveness of internal controls. Additionally, we performed substantive audit procedures to obtain audit evidence verifying the completeness, validity and accuracy of the finance records. Effect: Without performing adequate account reconciliations, information provided to management is inaccurate. Also, the probability that fraud or material errors will occur and go undetected generally increases.

Cause: The City did not perform adequate reconciliation of water and sewer receivables to verify the completeness, validity and accuracy of the financial records due to significant turnover at the utilities department. Variances between the subsidiary ledger and the general ledger were left unexplained throughout the year. Allowance of doubtful accounts was also not able to be determined. Auditor’s Recommendation: City management should implement policies and procedures requiring accountability to monitor the accuracy of monthly reconciliations. This would allow the City to ensure completeness and accuracy, enhancing the control system in the accounting department. Management personnel involved in the reconciliation process should sign supporting documentation to attest that not only the process was complete but it also had been reviewed.

April 8th 2025, Mayor Ropp submitted the following Corrective Action Plan for finding 2024-003: Allowable Activities and Period of Performance

Corrective Action Plan – Water Sewer Receivable Account Reconciliations.

The City has been actively replacing residential manual read water meters, with radio read meters, that will increase the accuracy within the readings and provides the ability to monitor what is going on with each meter, providing the opportunity to catch issues in a timely manner. This replacement program is to be completed by Summer 2025.

The Mayor and City Council determined that the Utility Billing Clerk position should become a full-time position as it was previously a part-time position. By making this improvement the Utility Billing Clerk will have additional time for review of reports and monitoring of the billing. Several issues have already been identified within the system and changes/corrections are being made as they come to light. We are hoping to make this Utility Billing Clerk Position Dedicated to handling Utility Billing Exclusively. We are working on having the Utility Billing clerk provide monthly reports to the Public Works Director and Treasurer/ Finance director recapping the utility billing activity, consumption reports, corrective billing, adjustments and any other water/sewer related issues. All corrections/adjustments will need prior approval and signature of the Public Works Director. This will help insure the financial reporting from the accounting system is accurate. We are also working on an SOP for the Utility Billing Clerk Position so that every aspect of the billing process is known and completed.

The City is currently searching for new accounting software with a focus on a user friendly utility billing module and increase detailed reporting. By upgrading to a more usable module, training will be easier and more readily available. Conversion to a new accounting software will take place before the end of the year.

Person(s) responsible: Mayor, Public Works Director and Treasure/Finance Direct Time for Implementation: Actively working on plan. Will be an ongoing process.

COMMITTEE REPORTS:

1. Finance/Admin Committee

DISCUSSION:

Alderman Stablein provided the committee report

2. Public Safety Committee

DISCUSSION:

Alderman Painter provided the committee report

3. Public Works Committee

DISCUSSION:

Mayor Ropp gave the committee Report

CONSENT AGENDA:

1. Approve payment of bills/claims by vendor report for the period of March 25 – April 14, 2025

2. Approve payroll for the period March 26 – April 10, 2025

3. Approve Treasurer’s Reports for March 2025

4. Approve Minutes from 03.24.2025 City Council Meeting

VOTE:

Motion by Alderman Painter to Approve Consent Agenda Items 1 through 4 as read, Seconded by Jones, discussion offered, Alderman Stablein asked about a line item in vendor report, question answered by treasurer Legare and Mayor Ropp, Discussion closed; Roll Call: Approve: Aldermen Stablein, Lack, Waterman, Painter, Swemline, Jones and Shady-Dahl via Phone Absent: Alderman Dooley, Motion Passed 7 to approve 1 Absent

OLD BUSINESS:

1. Discuss and answer questions in reference to the proposed budget for FY 2025-26

DISCUSSION:

Offered and closed with none

2. Discuss and approve excess insurance roof claims money to repair cabin roofs not completely covered by insurance. Mayor to explain.

DISCUSSION:

Mayor: Farmhouse not being repaired, money to be spent elsewhere, 1 cabin roof approved 4 more to do; partial payment and 1 not covered. Quotes provided for not-covered roofs.

Alderman Stablein asked if has to be Burrage? Mayor says they are the ones talking with insurance. Alderman Waterman asked if Burrage was lowest, PWD said no, Alderman Waterman requests quotes, PWD one quote was around 13.5 and the other was 12.8 could be $11,750 if company got all cabin rentals on a Friday and Saturday night. Burrage was 3-4 thousand more. Jones requested timeline PWD said Friday. Waterman requested names, PWD provided Shutts was $11,750 w/cabins and Crewe roofing bid was $13,500.

VOTE:

Alderman Waterman makes motion to use Shutt Roofing and accept proposal with cabin rentals. Alderman Swemline seconded. Discussion closed; Roll Call: Approve: Aldermen Stablein, Lack, Waterman, Painter, Swemline, Jones and Shady-Dahl via Phone Absent: Alderman Dooley, Motion Passed: 7 to approve 1 Absent

NEW BUSINESS:

1. Discuss and answer questions in reference to the proposed budget for FY 2025-26. The proposed budget has been made available for public viewing at City Hall. The Budget Hearing will be held on Monday, April 28, 2025, at 6pm at Colona Scott Family Park Clubhouse. The budget for FY 2025-26 will be on the City Council Agenda for approval at the Council Meeting directly following the Budget Hearing planned on April 28 at Colona Scott Family Park Clubhouse.

DISCUSSION:

Open and closed with none

2. Approve increase of cleaning contract Hannah Wittenauer for cleaning service for City Hall to $120/wk, PD to remain at $85/wk.

DISCUSSION:

Tom Jones tabled wanted duties? Current Contract? Tom Jones to follow up Get with Police Department for list of duties they have for Hannah.

VOTE: Motion to table by Alderman Stablein, Seconded by Alderman Shady Dahl, Discussion offered, Discussion closed; Roll Call: Approve: Aldermen Stablein, Lack, Waterman, Painter, Swemline, Jones and Shady-Dahl via Phone Absent: Alderman Dooley, Motion Passed 7 to approve 1 Absent

3. Approve allocation of $500,000 to the purpose of necessary repairs to Tri Pod water tower. Funds to be pledged/ear marked for that purpose from the following resources:

a. $215,000 from CD 48540 maturing 8/13/2025

b. $85,000 from CD 48541 maturing 8/13/2025

c. FYE transfer of $50,000 from O+M Department Water Reserves

d. Current Water Reserves of $50,000 from O+M Department Water Reserves

e. Capital Improvement Fund $100,000 – Held in O+M Department Account

f. Total of $500,000 to be held by treasurer specifically for Tri-pod water tower repair one-year contract. The Public Works and the Finance/Admin committees jointly recommend this procedure.

DISCUSSION:

Offered, Closed

VOTE: Motion by Alderman Lack to approve New Business Item No. 3 as read, Seconded by Alderman Stablein, discussion offered, Discussion closed; Roll Call: Approve: Aldermen Stablein, Lack, Waterman, Painter, Swemline, Jones and Shady-Dahl via Phone Absent: Alderman Dooley, Motion Passed 7 to approve 1 Absent

4. Approve waiving of Bidding Requirements for the selection of Water Tower Maintenance Contractor and enter into one-year contract and project labor agreement. Authorize Mayor to execute contract and other necessary documents. See back up info in packet.

DISCUSSION:

2/3 vote can waive bidding requirements. Alderman Stablein wants to waive bidding requirements

VOTE: Motion by Alderman Stablein to approve New Business Item No. 4 as read; Seconded by Alderman Jones discussion offered, Discussion closed; Roll Call: Approve: Aldermen Stablein, Lack, Waterman, Painter, Swemline, Jones and Shady-Dahl via Phone Absent: Alderman Dooley, Motion Passed 7 to approve 1 Absent

5. Approve selection of Maguire Iron Inc. as water tower maintenance contractor and enter into one-year contract for repair of Tri-Pod Water Tower and lock in six-year capital improvement plan for water tank assets. Recommended by Public Works Director.

DISCUSSION:

Offered, Closed

VOTE: Motion by Alderman Swemline to approve New Business Item No. 5 as read, seconded by Alderman Painter, Discussion opened: Alderman Stablein asked what happened to years 7 and 8. Maguire Rep Darin Clarke explained the contracts to the council. Provided information on all 6 tanks. PWD and Darin felt the language pertained to all tanks 1-6 contracts and all language is the same except for the amount and schedule. Locking in protects costs/price. Have to approve all 6 to lock in price. Alderman Stablein wants to see contracts for each tank before voting on them. Alderman Swemline says should say all not just the one tank. Alderman Stablein wants to give all the business and clear up that language to include all. Nothing says all are included. Alderman Waterman asks if want to amend the motion. Alderman Stablein says “can’t agree to contracts we don’t have”, Alderman Painter says the language accounts for all the contracts with the words “all assets”. Glass lined tank is not in the contracts. Mayor Ropp was asked his view and said that only the one tank was on the agenda, in his view. Alderman Stablein asked council to vote on the one, lock in and save pricing for next council meeting. Alderman Painter said we should approve them all now. Mayor Ropp and Stablein said they are different contracts and not seeing the completed contract before today isn’t enough time to properly review it, trusts Darin at his word that they are same except last page. Mayor Ropp asks if price will hold, Darin says he can go back and ask but can’t promise. Darin says the contracts are verbatim the same except title, scope of work and the final page with the pricing. Alderman Waterman says the City can back out of the contract at any time. Darin gave alderman Stablein copies of all the contracts to view. Waterman renews his request to just change the one tank to all tanks to clarify the Agenda language. Aldermen Swemline and Stablein agreed changing the language should work. $500,000 allocation was sufficient.

VOTE:

Motion made by Alderman Swemline to amend motion to include all assets instead of one tower. Seconded by Painter Roll Call: Approve: Aldermen Stablein, Lack, Waterman, Painter, Swemline, Jones and Shady-Dahl via Phone Absent: Alderman Dooley, Motion Passed 7 to approve 1 Absent

6. Review and approve proposed transfers FYE April 30,2025 – from general Fund Cash $325,000 and from Operation and Maintenance $200,000.00, see finance director spread sheet in packet attached to Agenda

DISCUSSION:

Treasurer Legare requested tabling and bring up next council meeting:

VOTE:

Alderman Waterman motioned to table, Alderman Lack seconded Discussion offered, Discussion closed; Roll Call: Approve: Aldermen Stablein, Lack, Waterman, Painter, Swemline, Jones and Shady-Dahl via Phone Absent: Alderman Dooley, Motion Tabled 7 to approve 1 Absent

7. Discuss City Wide Cleanup after May 1 – Scope of the Project.

DISCUSSION:

Consensus wait for after Memorial Carnival, Alderman Painter asked about tire pick up, Alderman Swemline concerned tires will be thrown along the road, wants to charge so much per tire to dump them and take them to the waste plant to facilitate. City pays to take it pass that to the citizens. Alderman Swemline says to take it to Tremont. Alderman Lack sidelined the tire discussion to determine a date. Refer it back to Public Works Committee. LRS contract discussion possibility.

8. Discuss Grant of $100,000 from IL DCEO, for General Infrastructure Improvements, and Designate use of Grant Funds, possible allocation for Water Tower Repairs and Maintenance.

DISCUSSION:

Mayor – sirens too expensive to use grant for that. Want to bring to the Council’s attention and make them aware the grant exists.

CLOSED SESSION: NONE

ADJOURN: Alderman Jones motioned for adjournment, Alderman Swemline seconded, Council adjourned at 7:30PM

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