City Council Study Session

Regular Meeting

Rock Island, IL · July 14, 2025

Minutes

CITY OF ROCK ISLAND CITY COUNCIL STUDY SESSION City Council Chambers, City Hall, 3rd Floor, 1528 Third Avenue, Rock Island, IL 7/14/2025 - Minutes 1. Call to Order Mayor Harris called the meeting to order at 5:30 p.m. and welcomed everyone. 2. Roll Call Mayor Harris asked City Clerk Samantha Gange to call the roll. Present: Alderpersons Glen Evans, Linda Barnes, Jenni Swanson, Dylan Parker, Mark Poulos, Bill Healy and Mayor Ashley Harris. Alderperson Randy Hurt arrived at 6:22 p.m. Absent: None. Staff: City Manager Todd Thompson, Attorney Leslie Day, City Clerk Samantha Gange, and other City Staff. 3. Presentations a. Annual Comprehensive Financial Report for CY 2024 Finance Director Jessica Sager explained that there were new accounting principles set forth by the Governmental Accounting Standards Board (GASB) in 2024, and the City restated the financials to follow the new standards. Ms. Sager introduced Audit Manager Hannah Cullerton of Lauterbach & Amen, LLP, who joined virtually. Ms. Cullerton gave the highlights of each section of the audit report, beginning with the introductory section, which included the list of principal officials, the organizational chart, the transmittal letter and the Certificate of Achievement for Excellence in Financial Reporting for 2023 from the Government Finance Officers Association. Ms. Cullerton mentioned the certificate was awarded to the City of Rock Island for 2024, making it the 42nd consecutive year the City has been a recipient of the award. Ms. Cullerton went over the financial section, including the independent auditor’s report, management’s discussion and analysis (MD&A), basic financial statements and supplementary information. The independent auditor’s report stated that all financial statements were presented fairly in all material aspects, and there were no internal control findings. Ms. Cullerton discussed the City’s Statement of Net Position and reported on the City’s assets and liabilities for governmental activities, business-type activities, the Martin Luther King Center, and the Rock Island Public Library Foundation. She also went over the Statement of Activities and reported on the City’s revenues and expenses. She pointed out that there was an increase in the net position change for all four activities. She 1 briefly touched on government funds, proprietary funds, and fiduciary funds and explained the contents of the financial statement notes and supplementary information section. Ms. Cullerton went over the City’s SAS 114 letter, a separate report containing Lauterbach & Amen, LLP’s recommendations. b. Augustan Hilltop Community Development Corporation Augustana Hilltop Community Development Corporation (CDC) Executive Director Jerry Lack said that Augustana College recently formed the Augustana Hilltop CDC, a nonprofit focused on revitalizing the Hilltop neighborhood through partnerships, investment, and community engagement. He explained that CDCs are neighborhood-level organizations that promote and support affordable housing, job training, health services, small business growth and job creation, neighborhood revitalization, childcare, and advocacy and community organizing. He gave a brief history of CDCs and added that they helped pass the Fair Housing Act and Community Reinvestment Act. Mr. Lack said Augustana Hilltop CDC’s website includes information on the Board of Directors, a business directory featuring the Hilltop businesses, news regarding the CDC, and events in the Hilltop area. Recent activities of the CDC include the purchase and demolition of the Curry Out Building to open an area for future investment, developing promotional neighborhood banners, and looking into streetscaping to make the area more walkable and bike-friendly. Mr. Lack said they’ve held engagement meetings to get suggestions and ideas from residents and businesses. They plan to explore several funding avenues, including federal and state grants. 4. Public Comment Mayor Harris asked if anyone in the public wished to speak. Brian Ritter, Curtis Lundy, Jason Munson, Tim Pressley, Dave Kinney, Brian Blevans, Daniel Deshane, Tabitha Defrieze and Jaqueline Elliott spoke about the proposed Casino West Site development and wetlands. 5. Adjourn a. Motion: Motion to adjourn. VV Voice vote is needed. MOTION: Alderperson Poulos moved to adjourn; Alderperson Healy seconded. VOTE: Motion PASSED on a 7-0-0 voice vote. Aye: Swanson, Parker, Poulos, 7th Ward Alderman Healy, Evans, Hurt, Barnes. Nay: None. Absent: None. The Study Session concluded at 6:32 p.m. 2 [MIN_SIGNATURES] 3

Agenda

Packet

City Council Study Session Agenda July 14, 2025 - 5:30 PM City Council Chambers, City Hall, 3rd Floor, 1528 Third Avenue, Rock Island, IL Click Here to Watch Live 1. Call to Order 2. Roll Call 3. Presentations a. Annual Comprehensive Financial Report for CY 2024 b. Augustan Hilltop Community Development Corporation 4. Public Comment 5. Adjourn a. Motion: Motion to adjourn. VV Voice vote is needed. This agenda may be obtained in accessible formats by qualified persons with a disability by making appropriate arrangements from 8:00 am to 5:00 pm, Monday through Friday, by contacting the City Clerk's Office at (309) 732-2010 or visiting in person at: 1528 Third Avenue, Rock Island, IL 61201. Page 1 of 23 City of Rock Island, Illinois Presentation of 12/31/2024 Audit & Related Reports Page 2 of 23 Introductory Section • Page 1: List of Principal Officials • Page 2: Organizational Chart • Page 3: Transmittal Letter • Page 11: Receipt of the Certificate of Achievement for Excellence in Financial Reporting (ACFR Award) for the 12/31/2023 Audit • Awarded to the City for the 12/31/2024 Fiscal Year • 42nd year the City has received this award 2 Page 3 of 23 Financial Section • Page 14: Independent Auditor’s Report • Unmodified Opinion • Clean Opinion / Highest-Level opinion that the City can receive • Financial Statements were presented fairly in all material respects • No Internal Control Findings • Page 18: Management’s Discussion and Analysis (Executive Summary) • Page 32: Basic Financial Statements • Page 113: Supplementary Information 3 Page 4 of 23 Basic Financial Statements • Page 32: Government-Wide Statement of Net Position • Assets and Deferred Outflows of Resources: • Governmental Activities: $187 Million • Business-Type Activities: $163 Million • MLK Center: $1.6 Million • Rock Island Public Library Foundation: $3 Million • Liabilities and Deferred Inflows of Resources: • Governmental Activities: $253 Million • Business-Type Activities: $102 Million • MLK Center: $876k • Rock Island Public Library Foundation: $0 4 Page 5 of 23 Basic Financial Statements • Page 34: Government-Wide Statement of Activities • Revenues: • Governmental Activities: $78 Million • Business-Type Activities: $33.2 Million • MLK Center: $2.3 Million • Rock Island Public Library Foundation: $570k • Expenses: • Governmental Activities: $58 Million • Business-Type Activities: $32.7 Million • MLK Center: $2.1 Million • Rock Island Public Library Foundation: $299k • Net Position Change: • Governmental Activities: ~23% Increase • Business-Type Activities: ~1% Increase • MLK Center: ~41% Increase • Rock Island Public Library Foundation: ~10% Increase 5 Page 6 of 23 Basic Financial Statements • Page 36: Governmental Funds • Page 44: Proprietary Funds • Page 54: Fiduciary Funds • Page 56: Notes to the Financial Statements • Page 74: Leases Receivable • Page 77: Capital Assets • Page 79: Long-Term Debt • Page 89: Reporting Units Affected by Restatements of Beginning Balances • Page 90: Fund Balance Classifications (Nonspendable, Advances, Restricted, and Committed) 6 Page 7 of 23 Supplementary Information Section • Schedule of Employer Contributions • Schedule of Changes in the Employer’s Net Position Liability/(Asset) • Schedule of Investment Returns • Schedule of Changes in the Employer's Total OPEB Liability • Budgetary Comparison Schedules (Budget to Actual) • Page 186: Consolidated Year-End Financial Report (CYEFR) • Long-Term Debt Requirements • Statistical Section 7 Page 8 of 23 Management Letter / SAS 114 Letter • Upcoming Standards: • GASB Statement No. 102: Certain Risk Disclosures (Effective 12/31/2025) • GASB Statement No. 103: Financial Reporting Model Improvements (Effective 12/31/2026) 8 Page 9 of 23 Contact Information Lauterbach & Amen, LLP 668 N. River Road Naperville, IL 60563 Phone: 630.393.1483 Fax: 630.393.2516 lauterbachamen.com Jamie L. Wilkey, Partner jwilkey@lauterbachamen.com 9 Page 10 of 23 MEMORANDUM FINANCE DEPARTMENT TO: Todd Thompson, City Manager Number: 025-25 SUBJECT: Presentation of the Annual Comprehensive Financial Date: 07/14/2025 Report for CY 2024 Introduction and Background Information: Lauterbach & Amen, LLP, the City’s contracted auditing firm, will present the CY 2024 Annual Comprehensive Financial Reports to City Council. Recommendation: Council approve the Annual Comprehensive Financial Report for CY 2024 Submitted by: Jessica Sager, Finance Director Approved: Todd Thompson, City Manager Page 11 of 23 AUGUSTANA HILLTOP COMMUNITY DEVELOPMENT CORPORATION Jerry Lack, Executive Director Augustana Hilltop CDC Augustanahilltopcdc@aol.com Page 12 of 23 AUGUSTANA HILLTOP CDC  The Augustana Hilltop Community Development Corporation (CDC) is a nonprofit organization focused on revitalizing Rock Island’s Hilltop neighborhood through partnerships , investment, and community engagement. Page 13 of 23 What is a Community Development Corporation (CDC)  CDCs are neighborhood level nonprofit organizations that promote and support community development activities: * Affordable Housing * Job Training * Health Services * Small Business Growth & Job Creation * Neighborhood Revitalization * Child Care * Advocacy & Community Organizing Page 14 of 23 CDC HISTORY & BEGINNING  Senator Robert Kennedy supported federal recognition of Community Development Corporations in 1965:  “Citizens must be involved in revitalization efforts of their neighborhoods and community”  1967 first CDC was established in Brooklyn, New York.  Bedford Stuyvesant Restoration Corporation Page 15 of 23 CDC IMPACT ON COMMUNITIES  Helped Pass Fair Housing Act: Outlawed discrimination in housing market  Community Reinvestment Act: Outlawed redlining and encouraged banks to invest in low-income communities.  Throughout 1990s and early 2000s, banks, private investors, and government relied upon CDCs to invest in housing and economic development projects in neglected neighborhoods. Page 16 of 23 Other Local CDCs Moline Community Development Corporation  Moline Community Development Corporation:  Mission improve housing opportunities.  Rehabilitate abandoned homes  Handy At Home Workshops Page 17 of 23 Augustana Hilltop Community Development Corporation  Augustana Hilltop CDC – WEBSITE Home - Augustana Hilltop Community Development Corporation Page 18 of 23 Investment In Hilltop Community  The former Curry Out Building at 1407 30th Street was demolished recently to open an area for future investment at the corner of 30th Street & 14th Avenue on the Hilltop Page 19 of 23 Neighborhood Promotional Banners Promotional Banner Samples Page 20 of 23 Neighborhood Banners  Sample: Bettendorf Sponsor Signs Page 21 of 23 Hilltop Community Streetscaping Improvement Ideas?  Streetscaping A Walkable Neighborhood Page 22 of 23 Hilltop Community Engagement Meetings  Suggestions and Ideas for Hilltop from Residents, Businesses & Community Page 23 of 23