12 ways Rockford may spend a nearly $23M budget surplus
By Kevin Haas
Rock River Current
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ROCKFORD — The city is rolling out a plan to utilize $22.9 million in surplus funds that went unspent last year. The extra cash is sitting in the city’s coffers after it spent less than projected in 2023 and took in more state-distributed revenue than anticipated.
It marks the second-consecutive year that the city has netted an operating surplus that it has decided to spend down, rather than add to its healthy emergency reserve fund that already has more cash than the city’s rainy day policy requires. The previous budget surplus sat at $32 million, and aldermen approved plans for spending that in December.
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Mayor Tom McNamara’s administration is rolling out recommendations this week. The spending plan requires City Council approval, and discussions will begin at tonight’s meeting of the Finance & Personnel Committee.
“When developing our surplus plan, we carefully considered the priorities set by City Council and focused on reinvesting these funds directly back into the community — whether it’s enhancing critical infrastructure or stabilizing our general fund to prevent property tax increases,” McNamara said. “Our plan is designed to have a far-reaching impact for all of our residents.”
The surplus was created primarily because the city received more income taxes and personal property replacement taxes — which are paid by corporations, partnerships, trusts and public utilities — than anticipated, according to Carrie Hagerty, the city’s finance director. Both of those taxes are collected statewide and distributed to the city on a per capita basis.
The city used conservative estimates, while drawing from guidance from state-level economists, to make its projections before reaping in more revenue than anticipated. It also spent less money, largely because of lower personnel costs in the police department as positions were vacant while the city tried to hire more officers. Staffing issues have hit police departments around the country, including Rockford, since 2020.
Now the city is laying out a plan for spending the extra money around three priorities: infrastructure, economic development and stabilizing the general fund to avoid increases in property taxes, Hagerty said in a memo to aldermen.
“Since implementing and funding our reserve policy, our goal has been to reinvest those resources back into the community, rather than simply maintaining a large balance,” she said. “This approach allows us to support vital projects, enhance services and create long-term benefits that directly improve the quality of life for our residents.”
Below are a dozen ways the city may spend its budget surplus. The plan is subject to change based on City Council feedback.
Alpine Road resurfacing
$1,500,000
Resurface a nearly 1-mile stretch of Alpine Road from Spring Creek Road to Highcrest Road. The city would dedicate $1.5 million in surplus funds to the project, which is slated for 2025.
Public infrastructure
$3,500,000
A total of $3.5 million would be committed to public infrastructure needs in each of the city’s 14 wards. Each ward would have $250,000 toward a project in 2025.
Mulford Road resurfacing
$4,500,000
Resurface a quarter-mile stretch of Mulford Road from Gale Lane to Churchview Drive and resurface an additional 1.2-mile stretch from Guilford Road to Fincham Drive, which is near Clodius & Co. Jewelers and the former Kmart.
Spring Creek Road
$3,000,000
The city plans to put $3 million toward resurfacing a 2-mile stretch of Spring Creek Road from Alpine Road to Mulford Road. The project would move forward in 2025.
Riverside Boulevard
$3,00,000
The city plans to put $3 million toward resurfacing two separate stretches of Riverside Boulevard in 2025. The parameters of the project were not immediately available. This story will be updated once those details are provided.
Industrial infrastructure
$2,500,000
The city plans to use $2.5 million to contribute toward infrastructure work that could prime the land around the U.S. 20 bypass and South Main Street for industrial development.
That work could include water infrastructure or roadwork that would be needed to allow for an industrial business to establish itself in the corridor.
“We’ve looked at Bypass 20 and (Illinois) 2 as an area that’s ripe for additional industrial development,” City Administrator Todd Cagnoni said. “We’ve been working collectively with R1 and private developers to drive advanced projects there.”
Coronado Theatre facade
$1,000,000
The city expects fixes to the historic facade of the Coronado Theatre, 314 N. Main St., to cost up to $3 million. The city has already won $1.2 million in state grants to support the repairs.
The city previously approved a contract with Berglund Construction Co. for $2.3 million to complete the work. The contract includes about $480,000 in contingency funds for any needed repairs that may be discovered as work begins. An additional $130,000 contract with Wiss, Janney, Elstner Associates was approved for architectural and construction observation services.
Pedestrian improvements
$50,000
Pedestrian improvements near the new $150 million PCI Pharma Services Rockford Biologics Center at 4840 Linden Road. The company broke ground on that project a year ago.
Chick House
$550,000
The Chick House, 119 S. Main St., is a historic former hotel constructed in 1857. The city plans to dedicate $550,000 toward making repairs to the crumbling brick masonry, as well as other improvements.
That work on the city-owned building could include paint removal, repainting, roof replacement and storefront improvements.
The goal is to make the property safer and better looking while the city searches for a developer who could bring new life to the property.
Discovery Center Museum
$100,000
Work is underway to replace the heating, ventilation and air conditioning system at Riverfront Museum Park, 711 N. Main St., where Rockford Art Museum, Discovery Center and other institutions are located.
Discovery Center has requested $100,000 in financial support for the project, Cagnoni said.
Cover TIF expenses
$1,281,364
The city has four tax-increment finance districts that are projected to end their 23-year life cycle with negative balances.
The city is proposing using $450,216 to cover the gap in the Garrison TIF, which was created in 2005 to help transformer the former Garrison School on North Court Street into lofts and town homes. The TIF expires in 2028.
The city would put an additional $831,148 toward closing the gap in the Hope VI TIF. The TIF was created to help transform the former Champion Park apartments into a mixed-income development through the federal HOPE VI program in cooperation with the Winnebago County Housing Authority. The TIF also expires in 2028.
Fund legal claims
$2,000,000
The city plans to put $2 million into its risk management fund to cover potential outstanding legal claims.
This article is by Kevin Haas. Email him at khaas@rockrivercurrent.com or follow him on X at @KevinMHaas or Instagram @thekevinhaas and Threads @thekevinhaas
