City out $30M in last decade

Meyer: Dixon has seen a $3 million rebound since Crundwell arrest

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DIXON – With Rita Crundwell holding the financial reins, Dixon lost $30 million in operating funds in just the last 10 years.

The operating budget still is $16.6 million in the red, new Finance Director Paula Meyer told the City Council Monday, but the city has seen a $3 million rebound since Crundwell’s arrest in April.

The former Dixon comptroller has admitted taking more than $53 million from the city over the last two decades.

Worst hit was the capital development fund, which saw a loss of about $2.4 million in that time period, Meyer said.

“I wanted to show this is where we were at, and this is where we’re at now,” said Meyer, adding that the amounts are estimates. “There are going to be limits to what the city can do. They are limited on what they can borrow, and limited to what they can do to react to needs.”

The presentation came on the heels of one given by consultants Stan Helgerson and Dave Richardson, who advised the city to pay back at least $7 million it owes to city funds, including the $1.3 million owed to the motor fuel tax fund, the downtown development fund, the band fund, the Oakwood Cemetery fund, the civil defense fund and the emergency vehicle fund.

Also Monday, the council approved making an offer to settle a federal lawsuit accusing Dixon police of using unreasonable force in 2009.

The amount of the offer was not released; if it is accepted, the money will be paid by the city’s insurer.

“This offer is a business decision to limit exposure to the city’s insurance company,” Police Chief Danny Langloss said. “It was an offer the insurance company told the city to make. They determined it would cost more for the city to pay an attorney and win, than the settlement they are making.

“I remain confident my officers did nothing wrong.”

Mayor Jim Burke said late last week that he would vote against the offer, but he changed his mind come Monday.

Karen Beauchamp, 47, filed suit in April 2011 in federal court; it accuses the police department of civil rights violations and seeks more than $100,000 in damages.

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