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Portion of Crundwell deal to be allocated

DIXON – The Dixon City Council authorized the use of some of the Rita Crundwell lawsuit settlement proceedings to pay interfund loans, taking care of what Mayor Jim Burke said was a priority.

The city has received $14 million of the $40 million out-of-court settlement with its former auditors CliftonLarsonAllen and Janis Card and Associates, as well as its former financial institution, Fifth Third Bank.

The City Council allocated $8,678,083 to pay interfund loans, which is money it borrowed from its own operating funds. Paying off that debt is a must, Finance Director Paula Meyer said in the October town hall meeting about spending the $40 million.

“That’s my feeling,” Meyer told the City Council on Monday night. “And I felt like that’s the feedback I’ve gotten from all of you. And that’s the feedback I’ve gotten from a large majority of the population of the citizens who have talked to me directly.”

Meyer said the city should have the rest of the settlement money by Thanksgiving, and hopefully have the funds from the sale of Crundwell’s property by the end of the year.

Crundwell, the city’s former comptroller, is in federal prison after pleading guilty to stealing nearly $54 million in city funds over two decades.

Also on Monday, the City Council approved a temporary ordinance to allow a fence at 422 E. Seventh St. to stay in its current location, which is on city property.

The fence also is in compliance with the Americans With Disabilities Act, City Attorney Robert Branson said. During an October City Council meeting, a resident raised a concern that it posed a violation due to her vision disability.


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