By Kevin Haas
Rock River Current
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ROCKFORD — City Council members have signed off on a plan to spend $23 million in money stockpiled last year when Rockford underspent its budget and took in more state-distributed tax revenue than anticipated.

Aldermen voted 13-0 to approve the surplus spending plan, but that unanimous vote came after Alderwoman Gina Meeks urged her fellow council members to consider funding different endeavors.

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Meeks had called for a delay on the vote last month in order to have more time to weigh the proposal. She hoped to bring forward an amendment to the plan put forward by Mayor Tom McNamara’s administration, but she said Monday there wasn’t enough support for it to pass.

“I believe it’s time to turn our attention to one thing that matters most: investing in people and businesses, our community’s greatest assets,” Meeks said in a roughly 6-minute speech to the council.

She wanted to reduce surplus spending on roads and infrastructure by about $6 million and dedicate the money toward strengthening business associations, supporting nonprofits and adding an engine and ambulance to the fire department.

“The surplus we have at our disposal is not just an opportunity, it’s a responsibility: A responsibility to ensure that every dollar we allocate is not just spent, but invested in ways that produce tangible returns,” Meeks said. “Returns measured not only in dollars, but in stronger families, safer neighborhoods and thriving businesses.”

Although her proposed changes didn’t have the support to pass, she urged the council to consider her approach in the future as the city takes up new spending plans.

Here’s a breakdown of the surplus spending plan — where it came from, how much is in the fund and how it will be used:

Where did the surplus come from?

The surplus is due to the city taking in more state-distributed tax revenue than anticipated and under spending its budget due to vacancies in the police department that reduced personnel costs.

The city received $23.9 million in income tax from the state last year, about $2.2 million more than projected. It also received $20.2 million in replacement taxes — which are paid by corporations, partnerships, trusts and public utilities. That’s about $7.2 million more than anticipated.

The city was drawing from state-level economists to make its budget projections, but revenue beat expectations.

Meanwhile, the city’s police budget was $76.6 million last year, but it spent about $72.7 million because of issues hiring officers to fill vacant positions. Staffing issues have hampered police departments around the country, including Rockford, since 2020.

How much is in the rainy day fund now?

$116,762,320

The city’s reserve fund has $116.7 million in its balance, but about 46% of that, or $53.7 million, is designated to be spent on upcoming initiatives and operations.

The city’s policy also requires it to keep 20% of its annual budget in the fund for emergency use. It takes just short of $40 million to meet that requirement, leaving an additional $23 million in the fund above what’s required by the policy.

That extra $23 million is what the city is preparing to spend in the coming year.

Spending breakdown

Here’s a breakdown of the 12 ways the surplus will be spent:

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.

The goal is to make roughly 485 acres of land primed for industrial development.

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.

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.

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.

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.

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.

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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