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HomeMy WebLinkAbout12162024 City Council Packet55 W. TOMPKINS STREET GALESBURG, IL 61401 WWW.CI.GALESBURG.IL.US City Council Agenda December 16, 2024 City Council Meeting Agenda City of Galesburg, Illinois City Council Chambers December 16, 2024 Galesburg City Council meetings are streamed live on the City’s website and Comcast channel 7. 6:00 p.m. Roll Call Pledge of Allegiance Invocation Approve Minutes from December 2, 2024 Public Comment Consent Agenda #2024-22 24-4089 Approve City of Galesburg Financial Policy 24-4090 Approve City of Galesburg Investment Policy 24-4091 Approve Contract with Midwest Group Benefits to provide a Flexible Spending Arrangement plan for employees. 24-5015 Receive City of Galesburg Strategic Plan 24-8021 Bills and Advance Checks Approval and warrants drawn in payment of same Passage of Ordinances and Resolutions 24-1026 Ordinance Zoning amendment, 40 E Simmons St (I) Institutional to (B3) Central Business (Final Reading) 24-2029 Resolution Naming the Galesburg Regional Airport in honor of Harrel W. Timmons 24-2030 Resolution Abating property tax on general obligation bonds Bids, Petitions and Communications City Manager’s Report Miscellaneous Business (Agreements, Approvals, Etc.) 24-4092 Approve Change order for Transit dispatch software and hardware to provide the quantity necessary for the city’s transit fleet 24-4093 Approve Phase II Engineering Agreement for the Lake Storey Multi-Use Path Project Town Business 24-9028 Bills Closing Comments Adjournment CITY MANAGER’S OFFICE Operating Under Council – Manager Government Since 1957 ___________________________________________________________________________________________________________________________________________________________________________________________ Page 1 of 3 CITY COUNCIL MEETING City Manager’s Report December 16, 2024 CONSENT AGENDA #2024-22 Item 24-4089 Financial Policy Staff recommend approval of the City’s Financial Policies. Each year the City’s Financial Policies are reviewed and updated as necessary to account for changes in Generally Accepted Accounting Principles (GAAP), Government Audit Standards Board (GASB) and the budget process. No policy changes are recommended as a result of this year’s review. Item 24-4090 Investment Policy Staff recommend approval of the City’s updated Investment Policy. After review of the current Investment Policy, the only substantive change is a revision to the investment types allowable under the Public Funds Investment Act (IL 30 ILCS 235/). This update will take effect on January 1, 2025, and allows the City to invest public funds in other instruments not specifically listed in the Public Funds Investment Act through an ordinance or resolution adopted by Council. Item 24-4091 Employee Flexible Spending Arrangement Staff recommend approval of a contract with Midwest Group Benefits to provide a Flexible Spending Arrangement (FSA) plan for employees, with an anticipated annual cost of $1,316.00. The city currently sponsors an IRC section 125 FSA for employees through Flexible Benefits Service LLC and would like to update the provider to Midwest Group Benefits for improved claims processing and payments. Sufficient funds are budgeted for this annual expense. Item 24-5015 City of Galesburg Strategic Plan Executive Summary Report During 2024, the City of Galesburg engaged with Northern Illinois University Center for Government Studies for strategic planning services. The project included collecting internal and external feedback through interviews and focus groups, culminating in a strategic planning leadership workshop held in August. As a result of the strategic planning workshop, a strategic plan was created encapsulating the strategic vision and future direction for the City into short- term and long-term prioritized goals. The Strategic Plan Executive Summary Report and Full Report are provided to be received and placed on file with the City Clerk’s office. Item 24-8021 Bills Bills and advanced checks are submitted for approval. All purchases are made in accordance with purchasing policies, with bids over $25,000.00 utilizing the competitive bid process and approved individually by the City Council. ___________________________________________________________________________________________________________________________________________________________________________________________ Page 2 of 3 ORDINANCES AND RESOLUTIONS Item 24-1026 Zoning amendment, 40 E Simmons St (I) Institutional to (B3) Central Business (Final Reading) The Planning and Zoning Commission recommends approval of a zoning amendment from I, Institutional to B3, Central Business District for 40 E Simmons Street. The applicant is planning to sell the property and would like to rezone to the B3, Central Business District, which allows for a variety of mixed uses that are appropriate for the downtown area. The purpose of the B3 District is to provide for a wide range of businesses and services typically located in an urban downtown environment such as retail, residential, governmental, office, cultural, hotel, entertainment and ancillary uses. Item 24-2029 Naming the Galesburg Regional Airport in honor of Harrel W. Timmons Staff recommend approval of a resolution naming Galesburg Regional Airport in honor of Harrel W. Timmons. Jet Air, Inc. has served as the fixed base operator for the Airport, with Timmons serving as the President, since 1969. Harrel started flying in 1965 and holds commercial, flight and ground instructor ratings, plus an Airline Transport Pilot certificate with 20,000 hours flying time. He has been a member of the National Stearman Board of Directors since its inception in 1971, as well as a member of the Stearman Foundation Board of Directors. The City would like to honor Harrel Timmons for his exceptional contributions to the Galesburg Regional Airport and his service to our community and the National Stearman Fly In by officially naming and referring to the Airport as the Harrel W. Timmons Galesburg Regional Airport. Item 24-2030 Abating property tax on general obligation bonds Staff recommend approval of a resolution abating property tax on general obligation bonds. Bond payments are part of the property taxes unless the City Council approves resolutions abating these taxes. If taxes on general obligation bonds were not abated, taxes would increase by $2,826,561.00. BIDS, PETITIONS AND COMMUNICATIONS CITY MANAGER’S REPORT MISCELLANEOUS BUSINESS (Agreements, Approvals, Etc.) Item 24-4092 Change order for Transit dispatch software and hardware Staff recommend approval of the change order with CTS Software (Tripmaster) in the amount of $18,180.00. During implementation of new dispatch software for the city’s transit fleet, it was realized that the entire fleet was not included in the software and hardware necessary to track the location of the vehicles. The vendor provided an updated quote to provide coverage for all vehicles, which increases the cost by $18,180.00 or approximately 23%, bringing the contract total to $95,936.00. There are sufficient funds from a Rebuild Illinois Round 2 grant to cover these expenses in full. The change order has also been submitted to the Illinois Department of Transportation, and contingent on their approval. Item 24-4093 Phase II Engineering Agreement for the Lake Storey Multi-Use Path Project Staff recommend approval of a Phase II Engineering Agreement with Hutchinson Engineering in the amount of $79,081.00 for the Lake Storey Multi-Use Path Project. This second phase of the ___________________________________________________________________________________________________________________________________________________________________________________________ Page 3 of 3 project will pick up where the first phase ends and will construct a multi-use path starting at S. Lake Storey Road and Woodblock Road, running north along US 150, and connecting to the existing path on the north side of Lake Storey. City staff put out a Request for Qualifications to engineering firms to complete the Phase II engineering for the project. The City received five responses, with Hutchinson Engineering’s receiving the highest rating based on the parameters set forth for the project. The ITEP grant funds 80% of the Phase II engineering work for the project. The City’s local match responsibility is 20% or $15,816.20. It is anticipated that construction on the project will begin in late 2025 or early 2026. TOWN BUSINESS Item 24-9028 Town Bills Respectfully submitted, Eric Hanson City Manager 5:30 p.m. Presentation: Transit Study Galesburg City Council Regular Meeting City Council Chambers 55 West Tompkins Street, Galesburg, Illinois December 2, 2024 6:00 p.m. Called to order by Mayor Peter Schwartzman at 6:15 p.m. Roll Call #1: Present: Mayor Peter Schwartzman, Council Members Bradley Hix, Wayne Dennis, Evan Miller, Dwight White, Heather Acerra, Sarah Davis, and Steve Cheesman, 8. Also Present: City Manager Eric Hanson, City Attorney Dan Alcorn, and City Clerk Kelli Bennewitz. Mayor Schwartzman declared a quorum present. The Pledge of Allegiance was recited. Pastor Antonio Franklin gave the invocation. Council Member Miller moved, seconded by Council Member Acerra, to approve the minutes of the City Council’s regular meeting from November 18, 2024. Roll Call #2: Ayes: Council Members Hix, Dennis, Miller, White, Acerra, Davis, and Cheesman, 7. Nays: None Absent: None Chairman declared the motion carried. PUBLIC COMMENT CONSENT AGENDA #2024-20 All matters listed under the Consent Agenda are considered routine by the City Council and will be enacted by one motion. 24-4081 Approve the renewal of a one-year contractual agreement with Assured Partners to provide risk management consulting and insurance brokerage services for the City in the amount of $35,000 for 2025. 24-4082 Approve the renewal of a service contract between the City of Galesburg Public Transportation and Carl Sandburg College to provide students, faculty, and staff unlimited rides on fixed-route bus service from September 2024 through August 2025 in the amount of $4,000. December 2, 2024 Page 1 of 7 24-4083 Approve the renewal of a service contract between the City of Galesburg Public Transportation and the Knox County Housing Authority to provide residents unlimited fixed route rides from July 2024 through December 2026, which will be tracked and billed at the current fare rates. 24-5014 Receive the 2025 City Meeting Calendar. 24-8020 Approve bills in the amount of $928,164.79 and advance checks in the amount of $2,508,585.65. Council Member Dennis moved, seconded by Council Member Miller, to approve Consent Agenda 2024-21. Roll Call #3: Ayes: Council Members Hix, Dennis, Miller, White, Acerra, Davis, and Cheesman, 7. Nays: None Absent: None Chairman declared the motion carried by omnibus vote. PASSAGE OF ORDINANCES AND RESOLUTIONS 24-1026 Ordinance on first reading amending the property at 40 East Simmons Street from I, Institutional, to B3, Central Business District. BIDS, PETITIONS, AND COMMUNICATIONS CITY MANAGER’S REPORT City Manager Hansen thanked the staff who worked diligently over the last couple of weeks to put up the lights throughout our downtown and noted that when he arrived here a year ago one of the things that struck him as he came into town was how amazing the lighting was throughout the downtown. He hopes the community enjoys it, but it takes a lot of effort from a number of people to make it happen, and he appreciates their efforts. MISCELLANEOUS BUSINESS (AGREEMENTS, APPROVALS, ETC.) 24-4084 Council Member Miller moved, seconded by Council Member Cheesman, to approve a Minority and/or Woman owned Business Startup Assistance Program for 360 Party Zone, LLC, for $5,000 plus $2,500 per full-time employee created, up to a maximum of $10,000. Roll Call #4: Ayes: Council Members Hix, Dennis, Miller, White, Acerra, Davis, and Cheesman, 7. Nays: None December 2, 2024 Page 2 of 7 Absent: None Chairman declared the motion carried. 24-4085 Council Member Dennis moved, seconded by Council Member Miller,to approve a Minority and/or Woman owned Business Startup Assistance Program for Bess-Tabb & Associates, LLC, for $5,000 plus $2,500 per full-time employee created, up to a maximum of $10,000. Roll Call #5: Ayes: Council Members Hix, Dennis, Miller, White, Acerra, Davis, and Cheesman, 7. Nays: None Absent: None Chairman declared the motion carried. 24-4086 Council Member Miller moved, seconded by Council Member Acerra, to approve a Minority and/or Woman owned Business Startup Assistance Program for The Griffin, for $5,000 plus $2,500 per full-time employee created, up to a maximum of $10,000. Roll Call #6: Ayes: Council Members Hix, Dennis, Miller, White, Acerra, Davis, and Cheesman, 7. Nays: None Absent: None Chairman declared the motion carried. 24-4087 Council Member Dennis moved, seconded by Council Member Miller, to approve a Southside Occupancy Assistance Grant to the Knox County Athletic Club, LLC, for $5,000 plus $2,500 per full-time employee created, up to a maximum of $10,000. Roll Call #7: Ayes: Council Members Hix, Dennis, Miller, White, Acerra, Davis, and Cheesman, 7. Nays: None Absent: None Chairman declared the motion carried. Mayor Schwartzman stated that four new businesses were approved for assistance tonight, making the total 28 that the City has assisted over the last three years. He believes eleven of those businesses are located downtown, and in the case tonight, there is a re-occupancy of the old Rescue Mission building, formerly Douglas Elementary School. He thinks this is phenomenal and is so pleased and that the public should be as well. 24-4088 Council Member Miller moved, seconded by Council Member Acerra, to approve the fiscal year 2025 Budget and Salary Schedule. City Manager Hansen wanted to thank Jennifer O'Hern, Finance Director and the Finance team, especially Tanya Billeter who is really the mastermind behind the budget and keeps us in line. December 2, 2024 Page 3 of 7 He also thanked all the department heads and staff, since as Council is likely aware, the budget process is a six to eight month endeavor. He added that Council held a fairly lengthy work session in September, and he provided updates in October and November as well. The tax levy was approved at the last meeting, and following the budget tonight, the last item will be to abate the bonds at the December 16th meeting. The budget is a culmination of a lot of work, and he is very pleased and appreciates the department heads and their staff and all the work that they did that goes into the budget. He noted that it accomplishes a number of goals, as he has stated before, on the capital side, and on the operational side there were no position eliminations. He also reminded the Council that a lot of the priorities that have come before Council in 2024 are still in the budget. Also, with their action, the City kept the property tax rate flat or slightly declining, for next year. That is credit to the work of the Council and certainly to the staff. He hopes 2025 is just as good or better than 2024 in terms of what we get accomplished and stated that he is very proud of the work staff did and wanted to acknowledge them for their excellent efforts and the jobs that they do every day. Roll Call #8: Ayes: Council Members Hix, Dennis, Miller, White, Acerra, Davis, and Cheesman, 7. Nays: None Absent: None Chairman declared the motion carried. Mayor Schwartzman agreed with City Manager Hansen's comments but also stated that the City Manager deserves a lot of credit, as well as Director O’Hern. He added that in his 14 years serving the community as an elected official, this is the best, most thoroughly considered budget he has seen. He congratulated all those involved. He noted that $78 million is being put to action for the betterment of our community, which is a significant amount of money that needs to be spent wisely. Council Member Davis moved, seconded by Council Member Cheesman, to sit as the Town Board. The motion carried. TOWN BUSINESS 24-9027 Trustee Miller moved, seconded by Trustee Dennis, to approve Town bills and warrants to be drawn in payment of same. Fund Title Amount Town Fund $181.80 General Assistance Fund $10,176.40 IMRF Fund Social Security/Medicare Fund December 2, 2024 Page 4 of 7 Liability Fund Audit Fund Total $10,358.20 Roll Call #9: Ayes: Trustees Hix, Dennis, Miller, White, Acerra, Davis, and Cheesman, 7. Nays: None Absent: None Chairman declared the motion carried. Trustee Dennis moved, seconded by Trustee Acerra, to resume as the City Council. The motion carried. CLOSING COMMENTS Council Member White wanted to reiterate to everybody to get involved in their city and encouraged them to go to the City’s webpage and sign up for the “Get Notified” feature. If signed up, it will give residents any piece of information that they need, from the City’s budgets, Commissions, and everything that they need to know. He implored everyone to look at the Council packet, see what they are doing, and keep up with the Council and hold them accountable to their jobs as the City Council. He also showed the audience a metal project that a young man made from the GAVC a few weeks ago. He noted that this kid is 16 years old but is qualified to go out to Jupiter and get a job right now. Another young man made him a new “G” and he wanted to showcase some of the work that these students are doing out there. He has one more item at home that the student made for signifying his tour of Vietnam. He encouraged everyone to invest in these students, take the time with them and help them get these skills that they can use to become productive citizens, and have good jobs with skills that will move our City forward. Council Member White also added that Christmastime is coming around and that we just gave thanks for another day and he thanks God that he’s able to be here and to do what he does and to help this community. Christmas is a time to give and it’s not about what you're receiving. A man gave His life for every single one of us and he hopes everyone thinks about that this year, not about what you can receive, but what you can give to one another. He hopes people can treat others with kindness and respect, whoever they may be, especially the ones that aren't like them. Council Member White left the meeting at 6:38 p.m. Council Member Acerra echoed Council Member White’s comments and agreed that there is so much opportunity to get involved in your city, not only at the municipal level, but also in volunteering. Maybe in sports, helping the needy, serving someone in a kitchen, and many churches have all kinds of volunteer opportunities, as well as the United Way. There are so many places if people are not sure where to start that might align with their interests, that will enhance the fabric of our community. She also wanted to remind everyone to shop local since there is still some time left before Christmas. She also noted that people could consider getting December 2, 2024 Page 5 of 7 gift certificates for a service or restaurants, and that small businesses really appreciate that kind of support. Council Member Davis stated that she loved what the City Manager said earlier about the Christmas lights, which is one of her favorite things about our City. She would encourage everyone to take a drive down Main Street, or even a stroll, and see the lighting that the City employees have put up. She thanked City staff again for doing such an awesome job with that and added that she is so appreciative every time she gets to go out there and look around and bask in that beauty of our City. She feels that it is joyful and she loves that the giving spirit of Christmas and being involved with your community was just talked about. She hopes everyone can find something, whether it's those lights or something else, that brings joy for them this Christmas season. Council Member Cheesman stated that this morning on WGIL, there was an excellent interview with a young lady named Ellen Tolley Davis, a Galesburg native, who coined the term Cyber Monday. There's another young lady that's been a commentator and a political analyst on Fox and CNN named Johanna Maska. He noted that we have a number of people that have come from our community, being raised by our citizens, their families, teachers, and our educational system. They have gone on and left our community and done great things, and he has heard a number of them, both face to face and through interviews, how much their city did for them, their schools, families, friends, those people that they've been around and have influenced them and helped raise them into the people that they are today. He feels we can never lose notice of the fact that so much negative is talked about in our city but that we have so many things here that are positive in many ways, and we need to accentuate those. He thinks that as we talk to people that have left our town, we need to do everything we can to retain what we have, encourage vocational jobs, but we need to speak with those people who have left and ask them what was done here that really helped them. Council Member Dennis thanked Council Member White for his comments about giving and added that he gives to two fine organizations. One of them is the Tunnel to Towers Foundation and the Wounded Warriors. Council Member Miller reminded everyone that this coming Sunday is the Christmas parade in downtown Galesburg. He added that he would like to challenge the Council to come up with a float next year for the parade. He also wanted to announce that the Warming Center is open and that if anyone sees somebody out there, please help get them there. Mayor Schwartzman reiterated that the Holly Days Parade is this Sunday at 5 p.m. downtown and is one of the most festive events we have in our City. He also noted that at the last meeting, he mentioned that he gave the State of the City speech at the Chamber’s Thanksgiving Luncheon, and it has now been posted on the WGIL webpage, and he thanked them for that. The written portion is available as well and he noted that he tried to cover the main successes we had in the City this year and then things looking forward. Lastly, the Mayor stated that we have some really excellent basketball players in Galesburg, both male and female, at the high school level and at both colleges. He hopes to encourage December 2, 2024 Page 6 of 7 everyone to take the time to go out and enjoy a game since it’s very inexpensive entertainment, and it supports our local players. There being no further business, Council Member Miller moved, seconded by Council Member White, to adjourn the regular meeting at 6:45 p.m. Roll Call #10: Ayes: Council Members Hix, Dennis, Miller, White, Acerra, Davis, and Cheesman, 7. Nays: None Absent: None Chairman declared the motion carried. Peter D. Mayor Schwartzman, Mayor Kelli R. Bennewitz, City Clerk December 2, 2024 Page 7 of 7 ___________________________________________________________________________________________________________________________________________________________________________________________ Prepared by: JLO Page 1 of 1 COUNCIL LETTER CITY OF GALESBURG DECEMBER 16, 2024 AGENDA ITEM: Annual approval of the City’s Financial Policies. SUMMARY RECOMMENDATION: The City Manager and Director of Finance recommend approval of the updated City’s Financial Policies. BACKGROUND: Each year, the City’s Financial Policies are reviewed and updated as necessary to take account for changes in Generally Accepted Accounting Principles (GAAP), Government Audit Standards Board (GASB) and the budget process. The current policies include a definition of the financial reporting entity, measurement focus and basis of accounting, operating revenue policies, operating expense policies, balance sheet policies, budget policies, capital improvement policies, vehicle replacement plan policies, building repair and maintenance plan policies, computer replacement plan policies, debt policies, federal funding in relation to OMB Uniform Guidance, pension policies, risk management policies, economic development fund, and GASB 34. Upon review, no policy changes are recommended. BUDGET IMPACT: Sound financial policies help to ensure funds are spent and managed in the most cost-effective manner based on the services provided while ensuring the financial records are maintained in accordance with GAAP, Government Auditing Standards and state and federal laws. SUPPORTING DOCUMENTS: 1.Financial Policies draft version with recommended changes 24-4089 Financial Policies—Red Lined City of Galesburg Finance Department 55 West Tompkins Street Galesburg, IL 61401 Approved December 18, 2023 This page intentionally left blank. Page 1 of 26 Approved December 16, 2024 Table of Contents Table of Contents ............................................................................................................................ 1 FINANCIAL REPORTING ENTITY ....................................................................................................... 3 MEASUREMENT FOCUS, BASIS OF ACCOUNTING AND BASIS OF PRESENTATION .......................... 3 Fund Financial Statements ........................................................................................................... 3 OPERATING REVENUE POLICIES ...................................................................................................... 5 Property Tax Revenue .................................................................................................................. 5 Other Tax Revenue ....................................................................................................................... 6 Restricted Revenues .................................................................................................................... 6 Fees, Licenses, Permits and other Miscellaneous Items .............................................................. 6 Intergovernmental Assistance ..................................................................................................... 6 Fees - Enterprise Funds ................................................................................................................ 6 Fees - Internal Service Funds ....................................................................................................... 6 Refund for Use of Recreation Services and/or Facilities .............................................................. 6 OPERATING EXPENDITURE POLICIES ............................................................................................... 7 Inventories ................................................................................................................................... 7 Payment to Vendors .................................................................................................................... 7 Use of Facsimile Signatures on Accounts Payable and Payroll Checks ......................................... 7 Payroll Costs and Compensated Absences .................................................................................. 7 Capital Asset Expenditures/Expenses .......................................................................................... 8 Contingency ................................................................................................................................. 8 Administrative Fee Policy ............................................................................................................. 8 Contributions to External Agencies .............................................................................................. 8 BALANCE SHEET POLICIES ............................................................................................................... 9 Governmental Accounting Standards Board (GASB) Statement No. 54....................................... 9 Order of Spending of Funds ....................................................................................................... 11 General Fund and Park & Recreation Fund Balance Policy ........................................................ 11 Debt Service – Assigning Fund Balance ...................................................................................... 12 Water Fund – Operating Cash and Investment Policy ............................................................... 12 Cash Reserve .............................................................................................................................. 12 Investments ............................................................................................................................... 12 Inventories ................................................................................................................................. 13 Capital Assets ............................................................................................................................. 13 Due To/Due From ...................................................................................................................... 14 Petty Cash Policies ..................................................................................................................... 14 Protection of Petty Cash ......................................................................................................... 14 Accounting for Petty Cash Transactions ................................................................................. 14 Petty Cash Advances ............................................................................................................... 15 Audit of Petty Cash ................................................................................................................. 15 BUDGET POLICIES .......................................................................................................................... 15 CAPITAL IMPROVEMENT POLICIES ................................................................................................ 16 Page 2 of 26 Approved December 16, 2024 VEHICLE REPLACEMENT PROGRAM .............................................................................................. 16 Contributions ............................................................................................................................. 16 Interest Allocations .................................................................................................................... 17 Estimated Useful Lives ............................................................................................................... 17 Estimated Replacement Costs ................................................................................................... 17 Replacement of Equipment & Vehicles ...................................................................................... 17 Pool Car ...................................................................................................................................... 17 Documentation .......................................................................................................................... 18 BUILDING REPAIR & MAINTENANCE PROGRAM ........................................................................... 18 Contributions ............................................................................................................................. 18 Interest Allocations .................................................................................................................... 18 Estimated Useful Lives ............................................................................................................... 18 Estimated Replacement Costs ................................................................................................... 18 Documentation .......................................................................................................................... 19 COMPUTER REPLACEMENT PROGRAM ......................................................................................... 19 Contributions ............................................................................................................................. 19 Interest Allocations .................................................................................................................... 19 Estimated Useful Lives ............................................................................................................... 19 Estimated Replacement Costs ................................................................................................... 19 Documentation .......................................................................................................................... 20 DEBT POLICIES ............................................................................................................................... 20 Notification of Reportable Events .............................................................................................. 21 Revenue Bonds .......................................................................................................................... 22 General Obligation Refunding Bonds, Series 2011C (Prior Taxable General Obligation Bonds, Series 2003) ............................................................................................................................... 22 FEDERAL FUNDING – OMB UNIFORM GUIDANCE ......................................................................... 22 Implementation of OMB Uniform Guidance .............................................................................. 22 OMB Uniform Guidance Documentation ................................................................................... 23 Use of Federal Funds and Oversight of Federal Funding Projects ............................................. 23 PENSION POLICIES ......................................................................................................................... 23 Pension Funding Policies ............................................................................................................ 24 RISK MANAGEMENT POLICIES ....................................................................................................... 24 Benefit Policy on Military Duty ................................................................................................... 25 Risk Management Fund ............................................................................................................. 25 ECONOMIC DEVELOPMENT FUND ................................................................................................ 25 GASB 34 ......................................................................................................................................... 25 Page 3 of 26 Approved December 16, 2024 FINANCIAL REPORTING ENTITY The City of Galesburg (City) is a municipal corporation governed by a mayor and city council, which are elected by the public and have the exclusive responsibility and accountability for the decisions it makes. The City has the statutory authority to adopt its own budget, to levy taxes, and to issue bonded debt without the approval of another government. It has the right to sue and be sued, and has the right to buy, sell, lease, or mortgage property in its own name. The City is bound by Generally Accepted Accounting Principles (GAAP), Government Auditing Standards promulgated by the Governmental Accounting Standards Board (GASB), all applicable state statutes and the Office of Management and Budget (OMB) Uniform Guidance. All financial, reporting, and accounting policies will be reviewed and maintained in accordance with these requirements. MEASUREMENT FOCUS, BASIS OF ACCOUNTING AND BASIS OF PRESENTATION The City of Galesburg implemented GASB 34 during fiscal year end March 31, 2002. GASB 34 requires government wide financial statements as well as fund financial statements. While the measurement focus and basis of accounting will remain the same for the fund financial statements, the government-wide statements will be completed using the flow of economic resources measurement focus and the full accrual basis of accounting. The financial policies outlined below are based on fund financial statements. Fund Financial Statements The accounts of the City are organized on a basis of funds. A fund is an independent fiscal and accounting entity with a self-balancing set of accounts. Fund accounting segregates funds according to their intended purpose and is used to aid management in demonstrating compliance with finance related legal and contractual provisions. A minimum number of funds are maintained consistent with legal and managerial requirements. General fixed assets and long- term liabilities of the City are reported in a separate GASB 34 Fund. The City has the following funds: Governmental Funds are used to account for the City’s general government operating activities. Governmental fund types use the flow of current financial resources measurement focus and the modified accrual basis of accounting. Under the modified accrual basis of accounting revenue is recognized when it becomes susceptible to accrual or “measurable and available.” Measurable means the amount of the transaction can be determined and available means collectible within the current period or soon enough thereafter to pay liabilities of the current period. Expenditures are recognized when the related fund liability is incurred, except for interest incurred but not yet payable on general long-term debt which is recognized when due, and certain compensated absences which are recognized when the liabilities are expected to be liquidated with available financial resources. Page 4 of 26 Approved December 16, 2024 Property and personal property replacement taxes, special assessments, charges for services and interest are susceptible to accrual. Sales taxes collected and held by the state at year-end on behalf of the City are also recognized as revenue, to the extent they are received within 60 days of the fiscal year end. Miscellaneous revenue items, which are not susceptible to accrual, are recognized only as they are received in cash. Entitlements and grants are recognized as revenue at the time of receipt or earlier if susceptible to modified accrual criteria is met. Expenditure driven grants are recognized as revenue when the qualifying expenditures have been incurred and all other grant requirements have been met and monies have been received during the fiscal year or within 60 days of the fiscal year end. Governmental fund types include the general fund, special revenue funds, capital projects funds, debt service funds, and permanent funds. The funds are defined as follows: • General Fund The general fund should be used to account for and report all financial resources not accounted for and reported in another fund. • Special Revenue Funds Special revenue funds are used to account for and report the proceeds of specific revenue sources that are restricted or committed to expenditures for specific purposes other than debt service or capital projects. The restricted or committed proceeds of the specific revenue sources should be expected to continue to comprise a substantial portion of the inflows reported in the fund. Other resources, such as investment earnings and transfers from other funds, also may be reported in the fund if those resources are restricted, committed or assigned to the specified purpose of the fund. The City should discontinue reporting a special revenue fund, and instead report the fund’s remaining resources in another fund type as the general fund, if the government no longer expects that a substantial port of the inflows will derive from restricted or committed revenue sources. • Capital Project Funds Capital projects funds are used to account for and report financial resources that are restricted, committed, or assigned to expenditure for capital outlays, including the acquisition of construction of capital facilities and other capital assets. Capital projects funds exclude those types of capital-related outflows financed by proprietary funds or for assets that will be held in trust for individuals, private organizations or other governments. Page 5 of 26 Approved December 16, 2024 • Debt Service Funds Debt service funds are used to account for and report financial resources that are restricted, committed or assigned to expenditure for principal and interest, even if it is being accumulated for future years’ payments. Debt service funds should be used to report resources if legally mandated. • Permanent Funds Permanent funds should be used to account for and report resources that are restricted to the extent that only earnings, and not principal, may be used for purposes that support the reporting government’s programs. Permanent funds do not include private-purpose trust funds, which should be used to report situations in which the government is required to use the principal or earnings for the benefit of individuals, private organizations or other governments. Proprietary Funds are accounted for using the flow of economic resources measurement focus and the accrual basis of accounting. Under this method, revenues are recognized when earned and expenses are recognized at the time the liabilities are incurred. Fiduciary Funds are used to account for assets held by the City in a trustee capacity or as an agent on behalf of others. The fiduciary funds include trust and agency funds. OPERATING REVENUE POLICIES The City will strive to maintain a diversified and stable revenue system to shelter the government from short-term fluctuations in any one-revenue source to ensure its ability to provide ongoing services. The Finance Department will prepare and maintain both short and long-term revenue projections to be used for development of future projects and service opportunities and to identify future short falls in order to allow for time to develop alternate revenue sources. Property Tax Revenue Property taxes are recognized as a receivable at the time they are levied. Property taxes are levied each year on all taxable real property in the city. Property taxes are assessed in December and attach as an enforceable lien on the property as of the proceeding January 1. These taxes become due and collectible in June and September of the following year, and are collected by the county collector, who in turn remits to the City its respective share. The City receives these remittances approximately one month after the collection dates. Property tax revenue needs are addressed using a target rate and in monitoring un-collectable amounts. Page 6 of 26 Approved December 16, 2024 Other Tax Revenue All other tax revenue is recognized when measurable and available. Accounts receivable accounts are adjusted at year-end according to tax amounts received during the fiscal year or relating to that fiscal year and received within 60 days of the fiscal year end. Restricted Revenues The City receives and will aggressively pursue many types of restricted funds. These revenues shall be used only for the purposes legally permissible and in a fiscally responsible manner. All federally funded grant revenues will be spent and managed in accordance with Office of Management and Budget (OMB) Uniform Guidance. Acceptance of these types of funds will include a review of matching fund requirements, related operating expenditures, the length of the program and consequential disposition of the program. All grant revenue is recognized when the actual expenditure financed by the grant is made. Other restricted revenue is recorded when measurable and available. Fees, Licenses, Permits and other Miscellaneous Items All fees for licenses, permits, fines, and other miscellaneous charges shall be set to recover related costs and are recognized when measurable and available. These fees shall be reviewed and adjusted accordingly during the annual budget process. Intergovernmental Assistance Intergovernmental assistance will be used to finance only those items that are consistent with approved capital improvement plans and/or other approved programs/agreements. Intergovernmental revenue is recognized when measurable and available. Fees - Enterprise Funds Enterprise fund fees and rates will be reviewed annually through the budget process. All charges and fees will be set to ensure all costs of providing those services are provided for including related debt obligations and depreciation of property and equipment. Fees - Internal Service Funds Internal Service fund fees charged to various City funds and departments will be reviewed annually during the budget process to ensure all costs of providing those services are provided for including related debt obligations and depreciation of property and equipment. The amounts paid for past claims, the number of employees by department and fund and reserve requirements are some of various factors which may be used as the basis for estimating fees paid to the Risk Management Fund (see Risk Management Policies). Refund for Use of Recreation Services and/or Facilities When refunds for the use of recreation facilities or services are permitted and approved by the department head, in order to cover expenses which are incurred in processing the refund, the amount submitted back to the customer will be reduced by 10 percent of the amount collected Page 7 of 26 Approved December 16, 2024 for the service and/or facility. The refund will be submitted to the customer through ACH and credited to the customer’s bank account. OPERATING EXPENDITURE POLICIES The City will conduct business by following a sound cash management policy employing a pay-as- you-go basis. All attempts will be made to reduce costs where appropriate. All current operating, maintenance, depreciation, direct and indirect costs will be funded through the use of current revenues. All operating expenditures will be approved by City Council as they become payable. See Fund Balance Policies for acceptable uses of fund balance reserves. Inventories Miscellaneous inventories maintained by the City will be recognized as expenditures at the time of consumption rather than at the time of purchase. All items and services received prior to year- end will be recognized during that fiscal year as expenditures. Payment to Vendors In order to decrease costs in processing vendor payments, the City will require payments to vendors through ACH or automatic credit to the vendor’s checking or savings account. By utilizing ACH, the City can reduce the cost for check stock, avoid the need and costs to reissue lost checks, reduce stop payment fees for lost checks and decrease staff time in the task of bank reconciliation. Use of Facsimile Signatures on Accounts Payable and Payroll Checks A facsimile signature means the reproduction by engraving, imprinting, stamping, or other means of the manual signature of an authorized signatory. The City uses a facsimile stamp with three signatures that is honored by the City’s designated financial institution. By resolution, the City Council will authorize the City’s designated financial institution to honor any City check showing the actual signature or facsimile signature with the following persons: the mayor; the city clerk; and the city treasurer. If one or more of these positions becomes vacant, the City Council will name and authorize another City representative to fulfill the requirement to be a designated signer. Any authorized check signer should not have access to the physical checks nor the ability to access the check processing stage for accounts payable or payroll payments. Payroll Costs and Compensated Absences All payroll costs will be based on Council approved salary ordinances, union contracts, and personnel policies. It is the policy of the City to permit employees to accumulate earned but unused vacation and sick leave benefits. Those benefits expected to be liquidated with expendable available financial resources of the governmental funds are reported as expenditures and a fund liability of the fund that will pay it. Amounts not expected to be liquidated with expendable available financial resources are reported in the government-wide GASB 34 Fund. Proprietary funds recognize the expense when the benefits vest and are accrued. Page 8 of 26 Approved December 16, 2024 Capital Asset Expenditures/Expenses All capital asset purchases by governmental funds are accounted for and budgeted as expenditures at the time of their acquisition. Proprietary fund acquisitions are capitalized with depreciation used as the tool to recognize the related expense. All attempts will be made to fund the purchase and maintenance of capital assets with current revenues. Depreciation will be used as a tool to estimate replacement needs for current and future fiscal years. Operating and capital leases and other miscellaneous financing opportunities will be addressed at the time of purchase to ensure the assets are acquired using the most cost-effective method. Contingency In order to protect the services provided by the City; a contingency in an amount designated by City Council will be built into the operating budget. This amount is budgeted for purpose of providing for non-recurring unanticipated expenditures. During the budget process, Administration will recommend a budget amount, at the minimum, of one percent of the budgeted revenue amount. Every attempt will be made to keep the contingency to a minimum. This amount is independent of the fund balance reserve amounts and will not be used as such. Administrative Fee Policy Enterprise and Internal Service Funds are required, by GAAP, to be self-supporting. The City uses personnel paid for in the General Fund to assist in the administration of the Enterprise Fund activities. Because the General Fund provides this assistance, an administrative fee is charged to the fund to cover these costs. The purpose of the fee is to ensure the funds are self-supporting. The fee will be calculated to reflect a percentage of indirect/direct costs associated in the General Fund. The calculation will be based on the most recent full year completed during the budget process. The indirect/direct cost approach was initially utilized in fiscal year 2012 to determine the administrative fee from the Water Fund to the General Fund. The indirect/direct cost approach was initially utilized in fiscal year 2013 to determine the administrative fee to the General Fund for the Refuse Fund. Administrative fees are considered a quasi-external transaction for accounting purposes meaning that the transactions are treated as revenues and expenditures if they would have involved organizations external to the government unit and not as transfers. Contributions to External Agencies In order to benefit the community and its residents and visitors, the City Council may approve an expenditure to contribute funds and/or resources to an external agency in order to allow that agency to accomplish its goal and/or mission. If an expenditure is approved, prior to releasing the funds and/or resources to the external agency, the agency must provide in writing how the funds/resources will be utilized by the agency. This will allow the City to record the community benefit offered to the community by the agency with the assistance of funds/resources received by the City. Page 9 of 26 Approved December 16, 2024 If an external agency is approved to receive funding by the City, the following requirements will need to be addressed by the external agency: 1. Submit an invoice for payment requesting the amount awarded to the agency and a due date which serves as an invoice for audit purposes. 2. Complete a. A W-9 Form b. An External Agency Agreement 3. Submit the invoice, W-9, and External Agency Agreement to the City of Galesburg Administration Office. 4. Include the City of Galesburg, and its logo where possible, as a sponsor on any advertising or promotional items for the event. BALANCE SHEET POLICIES Governmental Accounting Standards Board (GASB) Statement No. 54 In February 2009, the GASB issued statement number 54, Fund Balance Reporting and Governmental Fund Type Definitions, which requires the City to make certain decisions regarding the use of resources and classifications of ending fund balance in order for the annual financial reports (audits) to be in compliance with generally acceptable accounting principles (GAAP). Fiscal year 2011 was the first year the City was required to and implemented GASB 54. The intent of GASB 54 is to improve the usefulness of the amounts reported in ending fund balances on the year-end financial reports by providing clearer fund balance classifications that can be more consistently applied and by clarifying the existing government fund type definitions. With GASB 54, a hierarchy of fund balance classifications has been created. These classifications are based primarily on the extent to which governments are bound by the constraints placed on resources reported in those funds. This approach is intended to provide users more consistent and understandable information about a fund’s new resources. Previously, the City reported fund balances that were reserved, designated or unreserved. With the implementation of GASB 54, there are five categories required for ending fund balances: Nonspendable Fund Balance • Amounts that cannot be spent due to form that are in either short term or longer term; for example, inventories and prepaid amounts. Also, long-term loan and notes receivables, and property held for resale would be reported here unless the proceeds are restricted, committed or assigned. • Amounts that must be maintained intact legally or contractually such as principal of a permanent fund. Page 10 of 26 Approved December 16, 2024 Restricted Fund Balance The restricted fund balance category includes amounts that can be spent only for the specific purposes stipulated by constitution, external resource providers, or through enabling legislation. • The portion of a Governmental Fund’s fund balance that is subject to external enforceable legal purpose restrictions as to what the fund balance can be spent on. Committed Fund Balance The committed fund balance classification includes amounts that can be used only for the specific purposes determined by a formal action of the government’s highest level of decision-making authority. • Action would be required by the same group to remove or change the constraints placed on the resources. • Action to constrain the resources must occur prior to year end; however, the amount can be determined in the subsequent period. Assigned Fund Balance Amounts in the assigned fund balance classification are intended to be used by the government for specific purposes but do not meet the criteria to be classified as restricted or committed. In governmental funds other than the general fund, assigned fund balance represents the remaining amount that is not restricted or committed. • The portion of a Governmental Fund’s balance to denote management’s intended use of resources • For all governmental funds other than the general fund, any remaining positive amounts not classified as nonspendable, restricted or committed. • For the general fund, amounts constrained for the intent to be used for a specific purpose by a governing board or body or official that has been delegated authority to assign amounts. Amount reported as assigned should not result in a deficit in unassigned fund balance. Unassigned Fund Balance Unassigned fund balance is the residual classification for the government’s general fund and includes all spendable amounts not contained in the other classifications. Governments are required to disclose information about the processes through which constraints are imposed on amounts in the committed and assigned classifications • Available expendable financial resources in a governmental fund that are not the object of a tentative management plan (i.e., assigned). • For the general fund, amounts not classified as nonspendable, restricted, committed or assigned. The general fund is the only fund that would report a positive amount in unassigned fund balance. • For all governmental funds other than the general fund, amount expended in excess of resources that are nonspendable, restricted, committed or assigned (a residual deficit). In determining a residual deficit, no amount should be reported as assigned. Positive unassigned fund balance can only be reported in the General Fund. Page 11 of 26 Approved December 16, 2024 Note: In non-governmental funds (e.g., water fund); management may decide to “assign” funds for a specific purpose. This will be done as an internal budgeting procedure rather than as a formal accounting entry. Order of Spending of Funds The City will spend the most restricted dollars before less restricted, in the following order: Restricted Committed Assigned Unassigned The Director of Finance and Information Systems will determine if a portion of fund balance should be assigned. General Fund and Park & Recreation Fund Balance Policy To maintain the City’s ability to provide services during emergencies and unexpected declines in the economy, the City will maintain a General Fund unassigned fund balance of 16 weeks, or approximately 30 percent of operating expenses. In 2015, the special revenue fund, Parks and Recreation, was established to record revenues and expenditures for City recreation and park sites. The Park and Recreation Fund must maintain, at a minimum, 3 weeks or 5 percent of operating expenditures of the divisions within the fund. The fund balance shall be exclusive of all other reserves and contingencies and shall be reported as assigned. The use of these funds shall be limited to emergencies and unexpected declines in the economy. The use of fund balance to cover unexpected declines in the economy will be temporary pending identification of new revenue sources or a reduction of services. Should the balance fall below the minimum fund balance level, a plan will be submitted to City Council for building the fund balance to the appropriate level. Such a plan would include the time frame needed to replenish the fund balance. After the review and confirmation from the external audit firm that excess General Fund unassigned fund balance will result for the audited fiscal year, the Director of Finance and Information Systems, upon approval by the City Manager, shall annually transfer any General Fund unassigned fund balance in excess of the required fund balance amount to the following liabilities and/or funds in the following order: 1. Police and fire public safety pension funds. If during the most recent completed fiscal year, the police and fire pension funds were not fully funded to the annual pension funds’ actuarial firm’s recommended contribution amount, the difference between the recommended contribution and provided contribution will be submitted to the public safety pension funds. If the excess amount of unassigned fund balance is not sufficient to fulfill the full requirement of the actuarial recommended contribution for both public safety pension funds, the excess funds will be divided equally and submitted to each of the pension funds or if applicable, only up to a pension fund’s recommended actuarial Page 12 of 26 Approved December 16, 2024 amount with the remaining amount being provided to the other pension fund and only up to the actuarial firm’s recommended contribution amount for that pension fund. 2. City replacement programs. If there is any remaining excess unassigned fund balance available after the payments are made to the public safety pension funds, and if the three City replacement funds, computer, vehicle and building replacement programs, were not fully funded during the most recent completed fiscal year, the remaining excess funds will be distributed equally to the replacement program funds, only to the point that the replacement program is fully funded with the remaining amount being provided to the remaining replacement program fund(s) and only, if applicable, up to the replacement program fund(s) being fully funded. 3. Remaining excess unassigned funds. After the public safety pension funds and the City’s replacement programs have been fully funded for the most recent audited year, the remaining unassigned fund balance that is in excess of the required unassigned fund balance to be held per the fund balance policy shall be transferred to the Planning Fund which was established in fiscal year 2007. The Planning Fund balance shall be held and utilized for future needs of the City, including capital improvements, economic development; long-range planning or one-time expenditures that do not increase the City’s operating expenses. Debt Service – Assigning Fund Balance It is also the policy of the City to assign a portion of Fund Balance in the amount of debt service payments for revenue bonds and/or for general obligation alternate revenue source for governmental debt for the following year. These funds may be assigned in the General Fund, Economic Development Fund or the fund in which the debt will be paid from in the following year. Water Fund – Operating Cash and Investment Policy This policy shall apply to the City’s Water Fund. The policy shall address the minimum amount of operating cash and investment which shall be set aside for operations. The minimum operating cash and investments shall be 30 percent of the current annual budgeted expenses for the Water Fund. Cash Reserve The average amount of expenditures over a 12-month period will be computed annually. At a minimum, 1/12 of the amount will be held as liquid cash through the use of IL Funds or other short-term investments as deemed appropriate. All other cash shall be invested using a sound cash management policy and in accordance with the Council approved investment policy. Investments The City shall invest all idle cash 100 percent of the time in accordance with the Council approved investment policy. In accordance with GASB, all investments will be reported at fair value. Short- term investments are reported at cost, which approximates fair value. Securities traded on a national or international exchange are valued at the last reported sales price at current exchange Page 13 of 26 Approved December 16, 2024 rates. Mortgages are valued on the basis of future principal and interest payments and are discounted at prevailing interest rates for similar instruments. Investments that do not have an established market are reported at estimated fair value. Inventories Inventories are valued at cost using the first in first out (FIFO) method. The costs of governmental fund type inventories are recorded as expenditures when consumed rather than when purchased. Capital Assets Capital assets, which include property, plant, equipment and infrastructure assets (e.g., roads, bridges, sidewalks and similar items), are reported in the applicable governmental or business- type columns in the government-wide financial statements. Capital assets are defined by the City as assets with an initial, individual cost in excess of the following and an estimated useful life in excess of five years. Asset Class Land Building & Land Improvements, Infrastructure Intangible Assets Vehicles, Machinery, Furniture & Equipment Works of Art, Historical Artifacts Capitalization Threshold $ - 50,000 50,000 25,000 25,000 Capital assets purchased by governmental funds are accounted for as expenditures of the funds at the time of their acquisition and are then capitalized at cost in the government-wide financial statements. Donated assets in the governmental and enterprise funds are capitalized at the estimated fair value at the date of the donation. Depreciation is computed by the straight-line method over the estimated useful lives of the respective government and enterprise fund assets. Sales of capital assets are recognized as revenue at the time of the sale. Interest costs incurred before the end of a construction period of a capital asset will not be capitalized and will be recognized as an expenditure or expense in the period in which the cost is incurred. Infrastructure assets are capitalized in the government-wide financial statements. The cost of normal maintenance and repairs, including street overlays, which do not add to the value of the asset or materially extend the assets’ lives are not capitalized. The estimated useful lives of each fixed asset types are as follows: Description Years Land Improvements 10-50 Buildings & Improvements 8-50 Machinery & Equipment 3-30 Page 14 of 26 Approved December 16, 2024 Streets & Roads 20-40 Brick Streets 50 Water Mains 100 Bridges 60 Asphalt Sidewalk 25 Brick Sidewalk 50 Concrete Sidewalk 40 Traffic Signals 40 Metal Street Lighting 20 Concrete Street Lighting 60 Dams 70 See Capital Improvement Policies for further information relating to property and equipment. Due To/Due From Due to/Due from: A separate due to and due from account will be maintained where necessary. The balances of these accounts will be addressed on a consistent basis with the balances paid off where appropriate. Petty Cash Policies Under certain circumstances, a petty cash fund may be authorized as a means of making limited recurring or small emergency purchases for divisions or departments. The Director of Finance will receive and review requests for the establishment of petty cash funds. Protection of Petty Cash Access to cash funds must be restricted to designated division staff only. All cash and sales slips, receipts, or other applicable documents of the fund should be secured and safeguarded in a secured lock box and placed in a locked desk, locked cabinet, or locked safe whenever not in use. Petty cash funds must never be commingled with other cash funds, personal funds, miscellaneous cash receipts, or collected revenue of any type. In the event of a theft of petty cash funds, the designated staff should immediately notify the division/department head and the Director of Finance. Accounting for Petty Cash Transactions Proper accounting for petty cash requires that approved staff make payments for authorized expenditures only, obtain receipts, and record expenditures. Each petty cash expenditure requires a completed and signed Petty Cash Voucher form. Petty cash expenditures are subject to all City policies, procedures and practices relative to proper expenses, authorization, accounting and documentation. An original sales slip, cash register tape, or other receipt must be attached to the Petty Cash Voucher for each expenditure. Each Petty Cash Voucher must be approved by the appropriate division/department head. Page 15 of 26 Approved December 16, 2024 Petty Cash Advances With the approval of the division/department head, a cash advance can be made from the fund to the purchaser prior to purchase if it is intended that the purchaser pay the vendor and secure reimbursement from the fund upon presentation of a receipt. In such a case, the purchaser must sign a receipt which is marked "Advance for Purchase" with detail information of the purchaser’s name, amount received and description of the intended purchase. The signed advance form should then be placed in the fund box. Upon completion of the purchase, and when a receipt is presented by the purchaser, the advance is marked "canceled" and is also attached to the petty cash form, along with the receipt, applicable to the purchase. Audit of Petty Cash The department head or a division head or supervisor within the department that is designated by the department head, who is not responsible for the daily management of the petty cash, will periodically make an unannounced audit of the fund. The petty cash auditor should record all unannounced audits and, when requested, should provide the documentation of the unannounced audits. The designated staff is to ensure that the total amount of the petty cash fund equals the cash on hand plus any unreimbursed amounts, therefore, the department petty cash fund is required to be counted daily. The designated staff who is managing the petty cash is to ensure that the fund is always balanced and available for audit. BUDGET POLICIES The City’s annual budget is adopted on a basis consistent with generally accepted accounting principles for all governmental funds. All appropriations lapse at fiscal year end. Development of the annual budget begins in April and follows the municipal budget system as defined by State Statutes. The municipal budget system is a well-rounded comprehensive approach to budgeting. The State Statutes require the budget to be completed in a financially sound manner and in conformity with a chart of accounts. The budget is prepared by fund, function, department and division. For example, fund (General); function (public safety); department (police); division (communications and records). A one-year balanced budget is prepared annually and formally adopted by City Council. The budget process includes an update of capital improvement plans, an update of the City’s financial policies, strategic planning sessions and public hearings. Department Heads manage their departmental budgets on a division level and in a fiscally responsible manner. During the financial and annual audit review of the financial reports for the divisions, the review is at the division level budget as a whole and not at the account number or line item level of the division budget. Budget to actual performance is reviewed and measured at both the department and division level by the Director of Finance. When a division is over budget as a whole, City Council will approve all needed budget adjustments for the specific division. Page 16 of 26 Approved December 16, 2024 Encumbrance accounting is employed in all funds. Encumbrances at year-end are closed and where necessary presented to City Council during the subsequent budget year as a budget adjustment. CAPITAL IMPROVEMENT POLICIES Capital improvement plans shall be updated annually and incorporated into the budget. The capital improvement plans are planning documents and do not authorize or fund projects. Capital projects will be prioritized according to the following guidelines: 1. The extent to which the project addresses a health or safety need. 2. The extent to which the project accomplishes essential preventative maintenance. 3. The extent to which the project utilizes matching funds. 4. The extent to which the project achieves a beneficial cost/benefit ratio. 5. The extent to which the project enhances development opportunities. 6. The extent to which the project addresses a critical community recreational need. Replacement of capital outlay items shall be timed at fairly stable intervals so as not to spend excessively in one year and restrictively in the next. Standards of maintenance to adequately protect the City’s capital investments shall be developed and periodically updated. The annual budget will be prepared to meet established maintenance schedules. VEHICLE REPLACEMENT PROGRAM The purpose of the Vehicle Replacement Program is to plan for and provide the means for the replacement of all City owned vehicles and equipment. Contributions Those departments and divisions who use the vehicles and equipment included in the Vehicle Replacement Fund will make contributions. Contributions will be calculated during the budget season by the Finance Department staff. The contribution amounts will be communicated to Department Heads for inclusion in their budget requests. Contributions will be calculated using a straight-line method based on the remaining estimated useful life of the fleet and the estimated replacement cost of the fleet. Page 17 of 26 Approved December 16, 2024 Interest Allocations Interest earned in the Vehicle Replacement Program will be allocated at the end of each fiscal year based on the division’s cumulative contributions. Estimated Useful Lives The estimated useful lives used for equipment and vehicles will be standardized where appropriate. Estimated useful lives may be increased if the equipment continues to be reliable and cost effective to own or decreased if the cost of maintaining the equipment becomes prohibitive. These changes should be requested in the form of a recommendation to the Director of Finance based on the expertise of the Garage Superintendent and the approval of the Department Head responsible for the equipment or vehicle. Changes to the useful lives on the specific equipment will be noted during the budget process. Estimated Replacement Costs The replacement costs of the fleet will be based on cost and value factors related to the equipment. During the budget process, equipment values will be reviewed and, when appropriate, updated replacement costs will be based on the City’s experience with recent purchases, and/or vendor information, and/or current trending replacement costs. Replacement of Equipment & Vehicles The entire City fleet will be standardized as much as is reasonable. Standard specifications will be developed and maintained by the Garage Superintendent. The replacement of equipment and vehicles will be made based on like unit for like unit. Department and division input will be considered during the budgeting process. Any change in the type of vehicle and/or equipment that results in an increase in the replacement cost of the equipment will require approval by the Department Head, Director of Finance and ultimately City Council through their approval of the Vehicle Replacement Fund budget. All changes should be requested during the budget process to ensure proper contribution amounts are budgeted. All equipment and vehicles purchased will be bid based on the bid guidelines established in City Ordinances. The following items will be considered during the development of the specifications for the bid process: lease versus purchase, optimum replacement point and the trade value of equipment or vehicles handed down to other departments. Pool Car For purposes of minimizing liability and travel expenditures a pool car will be kept and maintained by the Central Garage. City employees will be asked to use the car, when it is available, for all travel outside City limits. Use of the car will be scheduled by the Central Garage and will be scheduled on a first come first serve basis. Out of town travel will be given priority over those that need the car for in town travel. Each division will be charged for miles used based on the effective IRS rate paid. Page 18 of 26 Approved December 16, 2024 Documentation The Finance Department will maintain documentation of actual contributions made during the prior and current fiscal years. BUILDING REPAIR & MAINTENANCE PROGRAM The purpose of the Building Repair & Maintenance Program is to plan and prepare for future capital improvements to City owned buildings. Contributions Contributions will be made by the departments and divisions who are responsible for maintaining city owned buildings. Contributions will be calculated during the budget season by the Finance Department staff. The contribution amounts will be communicated to Department Heads for inclusion in their budget requests. Contributions will be calculated using a straight-line method based on the remaining estimated useful life of the capital improvement. Interest Allocations Interest earned in the Building Repair and Maintenance Program will be allocated at the end of each fiscal year based on the division’s cumulative contributions. Estimated Useful Lives The estimated useful lives used for capital improvements will be standardized where appropriate. Estimated useful lives may be increased if the structure or system is in good or acceptable condition or decreased if the cost of maintaining the structure or system becomes prohibitive. These changes will be requested in the form of a recommendation to the Director of Finance based on the expertise of the Purchasing Agent and the approval of the Department Head responsible for the structure or system. Changes to the useful lives will be noted during the budget process. Estimated Replacement Costs The replacement costs of the improvements will be based on cost and value factors related to the improvements. During the budget process, improvement costs will be reviewed and, when appropriate, updated replacement costs will be based on vendor information and/or current trending replacement costs. Department and division input will be considered during the budgeting process. Any change in the type of improvement that results in an increase in the replacement cost of the improvement will require approval by the Department Head, Director of Finance and ultimately City Council Page 19 of 26 Approved December 16, 2024 through their approval of the budget. All changes should be requested during the budget process to ensure proper contribution amounts are budgeted. All improvements will be bid based on the bid guidelines established by City Ordinances. Documentation The Finance Department will maintain documentation of actual contributions made during the prior and current fiscal years. COMPUTER REPLACEMENT PROGRAM The purpose of the Computer Replacement Program is to plan and provide for the replacement of computer hardware and software. Contributions Contributions will be made by the departments and divisions who use the computer hardware and software. Contributions will be calculated prior to budget season by the Finance Department staff. The contribution amounts will be communicated to Department Heads for inclusion in their budget requests. Contributions will be calculated using a straight-line method based on the remaining estimated useful life of the capital improvement. Interest Allocations Interest earned in the Computer Replacement Program will be allocated at the end of each fiscal year based on the division’s cumulative contributions. Estimated Useful Lives The estimated useful lives used for computer hardware and software will be standardized where appropriate. Estimated useful lives may be increased if the equipment or software continues to be reliable and cost effective to own or decreased if the cost of maintaining the equipment or software becomes prohibitive. These changes will be requested in the form of a recommendation to the Director of Finance based on the expertise of the Network Administrator and the approval of the Department Head responsible for the computer equipment and software. Changes to the useful lives will be noted during the during the budget process. Estimated Replacement Costs The replacement costs of the equipment will be based on cost and value factors related to the equipment. During the budget process, equipment will be reviewed and, when appropriate, Page 20 of 26 Approved December 16, 2024 updated replacement costs will be based on vendor information and/or current trending replacement costs. Department and division input will be considered during the budgeting process. Any change in the type of computer hardware or software that results in an increase in the replacement cost of the hardware or software will require approval by the Department Head, Director of Finance and ultimately City Council through their approval of the budget. All changes should be requested during the budget process to ensure proper contribution amounts are budgeted. All improvements will be bid based on the bid guidelines established by City Ordinances. Documentation The Finance Department will maintain documentation of actual contributions made during the prior and current fiscal years. DEBT POLICIES The City of Galesburg shall use long-term debt for capital projects that cannot be financed using current revenues within the Revenue Policy guidelines. Debt financing shall generally be limited to one-time capital improvement projects and only under the following circumstances: 1. The project’s useful life will exceed the term of the financing. 2. The project’s revenue or specific resources will be sufficient to service the debt. 3. The project will benefit the citizens of Galesburg. 4. Debt financing shall not be appropriate for any recurring purpose. Tax anticipation debt will be retired annually, and bond anticipation notes will be retired within six months of the completion of the project. Refunding bonds may be authorized by the City Council provided such refunding does not result in an increase in the interest rate and does result in a savings over the life of the bonds. The City shall maintain good communications with bond rating agencies about its financial condition. The City will follow a policy of full disclosure on every financial report and bond prospectus. A debt analysis will be maintained annually by the Director of Finance and will encompass all debt of the City including but not limited to: 1. The source of funding for all City debt. 2. Current and future debt capacity analysis. Page 21 of 26 Approved December 16, 2024 3. A contingency debt plan should any of the funding sources become unavailable in the foreseeable future. 4. Compliance with all City debt policies and covenants. Notification of Reportable Events On August 20, 2018, the Securities and Exchange Commission (SEC) amended Rule 15c2-12. Based on the rule, there are sixteen reportable events for which an issuer must provide notice to the Municipal Securities Rulemaking Board’s Electronic Municipal Market Access (EMMA) website. In a timely manner, not in excess of ten business days after the occurrence of the event, notice of any of the following events will be required for: 1) Principal and interest payment delinquencies 2) Non-payment related defaults if material 3) Unscheduled draws on debt service reserves reflecting financial difficulties 4) Unscheduled draws on credit enhancements reflecting financial difficulties 5) Substitution of credit or liquidity providers, or their failure to perform 6) Adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations of taxability, notices or determinations with respect to the tax status of the security, or other material events affecting the tax status of the security 7) Modifications to rights of security holders, if material 8) Bond calls, if material, and tender offers 9) Defeasances 10) Release, substitution, or sale of property security repayment of the securities, if material 11) Rating changes 12) Bankruptcy, insolvency, receivership, or similar event of the organization 13) The consummation of a merger, consolidation, or acquisition involving an obligated person or the sale of all or substantially all of the assets of the obligated person, other than in the ordinary course of business, the entry into a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material 14) Appointment of a successor or additional trustee or the change of name of a trustee, if material 15) For new bond issues, as of February 27, 2019, incurrence of a financial obligation of the obligated person, if material, or agreements to covenants, events of default, remedies, priority rights, or other similar terms of a financial obligation of the obligated person, any of which affect security holders, if material; and 16) For new bond issues, as of February 27, 2019, default, event of acceleration, termination event, modification of terms, or other similar events, under the terms of a financial obligation of the obligated person, any of which reflect financial difficulties. Page 22 of 26 Approved December 16, 2024 The following table provides continuing disclosure undertaking requirements for different types of issuance scenarios. New Issuance Is Continuing Disclosure Notes Sold directly to bank No Generally Less than $1M No At least $1M and issuer has < $10M of debt Yes • Audited financial statements • Reportable events At least $1M and issuer has > $10M of debt Yes • Annual financial report • Audited financial statements • Reportable events Revenue Bonds New revenues sources should not be pledged towards a bond issue until there is a historical trend that establishes the credit worthiness of the revenue stream. The City will increase any related rate in order to attain the revenue necessary to achieve the required coverage ratio specified in the related revenue bond ordinance. General Obligation Refunding Bonds, Series 2011C (Prior Taxable General Obligation Bonds, Series 2003) Per Resolution 03-2007, approved March 3, 2003, the funds derived from the one-quarter percent (.25%) increase in the home rule tax approved on March 3, 2003, shall be used for the payment of debt service on the general obligation bonds for the Galesburg Business Park located between the city of Galesburg and the city of Knoxville. On September 6, 2011, City Council approved the issuance of the Taxable General Obligation Refunding Bonds, Series 2011C, which refunded the Taxable General Obligation Series 2003 Bonds. The one-quarter percent increase in the home rule tax, approved in March 2003, will be utilized for the payment of the debt service on the general obligation bonds for the Galesburg Business Park located between the City of Galesburg and the City of Knoxville. FEDERAL FUNDING – OMB UNIFORM GUIDANCE Implementation of OMB Uniform Guidance In December 2013, the US Office of Management and Budget (OMB) issued comprehensive grant reform rules titled “Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards.” With the issuance, important updates were made to specific areas of Uniform Guidance. Procurement is one of the areas that had significant changes. All 2016 and later single audits will be performed only under the Uniform Guidance requirements. Page 23 of 26 Approved December 16, 2024 OMB Uniform Guidance Documentation The Purchasing Agent will have documented procurement procedures that will reflect federal law, Uniform Guidance standards and any state regulations. The department receiving federal funds will follow the procurement steps and activities required to be completed when using federal funds with the oversight of the Purchasing Agent. The procurement steps will be documented and all documentation applicable to the procurement and to following the procurement steps shall be provided to the Purchasing Agent. This includes requests for federal funding, correspondence for notice of award and formal agreements. The Purchasing Agent will work with the department in determining the basis for the type of procurement, contract type, and the basis for the contractor selection and price. Use of Federal Funds and Oversight of Federal Funding Projects The City department and divisions will focus on the most economical solution during the procurement process and must avoid using federal funds for the acquisition of unnecessary items. The departments and divisions are encouraged to consider the use of shared services and intergovernmental agreements to foster greater economy and efficiency. The division or department that is the recipient of the federal awards must maintain an appropriate level of oversight to ensure that contractors perform in accordance with the terms of their contract. The City departments and divisions should work closely with the Purchasing Agent to ensure compliance is met. PENSION POLICIES In 2012, The GASB approved two standards that substantially improves the accounting and financial report of public employee pensions by state and local governments. Statement No. 67, Financial Reporting for Pension Plans, revised and established new financial reporting requirements for most governments that provide their employees with pension benefits. The new standards improved the way state and local governments report their pension liabilities and expenses, resulting in a more faithful representation of the full impact of these obligations. Other improvements include net pension liabilities will be reported on the balance sheet, providing citizens and other users of financial reports with a clearer picture of the size and nature of the financial obligations to current and former employees for past services rendered. Pension plans are distinguished for financial reporting purposes in two ways. First, plans are classified by whether the income or other benefits that the employee will receive at or after separation from employment are defined by the benefit terms (a defined benefit plan) or whether the pensions an employee will receive will depend only on the contributions to the employee’s account, actual earnings on investments of those contributions, and other factors (a defined contribution plan). In addition, defined benefit plans are classified based on the number of governments participating in a particular pension plan and whether assets and obligations are shared among Page 24 of 26 Approved December 16, 2024 the participating governments. Categories include plans where only one employer participates (single employer); plans in which assets are pooled for investment purposes, but each employer’s share of the pooled assets is legally available to pay the benefits of only its employees (agent employer); and plans in which participating employers pool or share obligations to provide pensions to their employees and plan assets can be used to pay the benefits of employees of any participating employer (cost-sharing employer). Pension Funding Policies The City should have a pension funding policy that is based upon an actuarially determined annual required contribution (ARC), and that meets the following five policy objectives in an integrated way. The City will need to strike a balance between competing objectives and determine the most appropriate time frame in which to meet its goals. • Actuarially Determined Contributions. A pension funding plan should be based upon an actuarially determined annual required contribution (ARC) that incorporates both the cost of benefits in the current year and the amortization of the plan’s unfunded actuarial accrued liability. To achieve or exceed the required State statute level of funding by the required date, the City will commit to funding the pension funds, at a minimum, at or between the State actuarial level and the actuarial firm’s recommended contribution amount. • Funding Discipline. The City will make a commitment to make timely, actuarially determined contributions to the retirement system to ensure that sufficient assets are available for all current and future retirees. Unless another source of funding is available, funding will be derived from the property tax levy specifically dedicated for the purpose of funding the pensions. When the designated property tax or, if applicable, another other source of revenue is received by the City, the funds will be transferred in a timely manner to the corresponding pension funds. • Intergenerational equity. Annual contributions should be reasonably related to the expected and actual cost of each year of service so that the cost of employee benefits is paid by the generation of taxpayers who receives services from those employees. • Contributions as a stable percentage of payroll. Contributions should be managed so that the City’s costs remain consistent as a percentage of payroll over time. • Accountability and transparency. Clear reporting of pension funding should include an assessment of whether, how, and when the plan sponsor will ensure sufficient assets are available for all current and future retirees. RISK MANAGEMENT POLICIES The City is exposed to various risks related to torts, theft of, damage to and destruction of assets; errors and omissions; and natural disasters for which the City is self-insured and carries supplemental commercial insurance. To provide essential and effective protection against catastrophic loss, the City maintains an internal service fund, the Risk Management Fund. Page 25 of 26 Approved December 16, 2024 Benefit Policy on Military Duty Federal and State laws require the City to continue to provide health insurance coverage to an employee for the duration of his active military service under the same terms and conditions as applied while an active employee of the City. Risk Management Fund The Risk Management Fund will account for general liability, property, worker’s compensation insurance, and unemployment claims. Each year, an analysis will be completed by the City Attorney/Administrative Services Director regarding the status of the insurance plans and fees charged to participating divisions. The City will strive to accumulate retained earnings to serve as a reserve base on recommendations made by the City Attorney/Administrative Services Director or third-party administrators. This amount will be computed during the annual budget process. A reserve of retained earnings is deemed necessary to protect the City from catastrophic events. A contingent liability will be recognized and maintained on the books for claims incurred but not paid. The liability will be based on past claim history and information provided by the City Attorney/Administrative Services Director or third-party administrators. ECONOMIC DEVELOPMENT FUND On March 3, 2003, the City Council approved to increase the Home Rule Municipal Retailers Occupation Tax and the Home Rule Municipal Service Occupation Tax (together commonly referred to as the sales tax), from three-quarter percent (.75%) to one percent (1.00%), in order to provide funding for the purpose of promoting economic development. The funds derived from the one-quarter percent (.25%) increase in the city sales tax will be used for purposes of promoting economic development within the city of Galesburg and in areas in close proximity to the city of Galesburg, including, but not limited to the payment of debt service on the general obligation bonds issued for the Galesburg Business Park located between the city of Galesburg and the city of Knoxville. Given the direction of Council to utilize the one-quarter percent sales tax for payment of the Series 2011C general obligation bonds, the Economic Development Fund will have on reserve the value of one year’s debt payment to ensure sufficient funds will be available when needed for the following year principal and interest bond payments. GASB 34 In June 1999, the GASB issued GASB 34 – Basic Financial Statements and Management’s Discussion and Analysis for State and Local Governments. This project significantly changed the accounting and financial reporting for the City of Galesburg. The most significant changes included in GASB 34 are: • Government-wide reporting – In addition to reporting at the fund level, the City is required to consolidate the financial information for the City as a whole and present City- wide financial statements. This type of consolidation is required for private entity financial Page 26 of 26 Approved December 16, 2024 reporting and includes booking depreciation and eliminating entries for internal type transactions. This change in effect requires closing the books twice using two different basis’ of accounting. • Infrastructure reporting – All capital assets, including general infrastructure assets, is capitalized in the financial statements at their historical cost or estimated historical cost. This rule applied retroactively to assets that were acquired in fiscal years beginning after June 15, 1980. In addition to recording all capital assets, the City is required to record depreciation on all capital assets subject to depreciation including infrastructure assets. • Major Fund focus – In the past, reporting at fund level was completed based on the type of fund (governmental, enterprise, agency). GASB 34 requires entities to report major funds rather than by fund type. Those funds that do not qualify as major are consolidated and presented as “others.” This significantly affects how budgetary information is presented in the financial statements. • New focus for governmental activities – Traditionally, the focus was on changes in current spendable resources; the new entity wide statements focuses on changes in total resources or net assets. Net Assets is the new term for Fund Balance at the entity-wide level. The accounting equation used to be Assets = Liability + Equity. The new equation is Assets – Liabilities = Net Assets. • Management’s Discussion & Analysis (MD&A) – GASB 34 requires each organization to provide a narrative that gives an overview and addresses and analyzes the financial activities of the City. This area of the report is considered “required supplementary information” but not included within the scope of the audit. • Fiduciary Fund Changes – These changes included limitations on the use of the fund type, elimination of Expendable Trust Funds and creation of Permanent Funds. • Elimination of contributed capital amounts and account groups at the government-wide level. • Cash Flow Statement Reporting – GASB 34 requires the direct method of reporting cash flows. Historically governments have used the indirect method, which is a reconciliation of changes in balance sheet account amounts. The direct method on the other hand, reconciles net income to cash. The required implementation date was dependent upon the dollar amount received in revenues during a specific time frame. The City of Galesburg is a tier 2 municipality and therefore was required to implement GASB 34 by fiscal year ending 3/31/2004. Administration implemented the new GASB one year early or fiscal year ending 3/31/2003. Administration took a proactive approach to implementing GASB 34 and completed the implementation in-house rather than using consultants and other third parties. ___________________________________________________________________________________________________________________________________________________________________________________________ Prepared by: JLO Page 1 of 1 COUNCIL LETTER CITY OF GALESBURG DECMEBER 16, 2024 AGENDA ITEM: Annual approval of updated investment policy. SUMMARY RECOMMENDATION: The City Manager and Director of Finance recommend City Council to approve the updated investment policy. BACKGROUND: In an effort to ensure the Investment Policy is kept current and in compliance with State law, the City’s Investment Policy is being presented to City Council for its annual review. The annual review is conducted subsequent to audit fieldwork and includes a review of the current investment policy. A sound investment policy helps to ensure the return on investments is maximized while considering safety and liquidity. Investment earnings are used to help cover yearly operating expenses in many of the funds. The City’s investment portfolio includes reserve funds and funds that are earmarked for legal reasons or funds earmarked for planning reasons. After review of the current Investment Policy, the only change to highlight is on page 5 which updates the investment types allowable under the Public Funds Investment Act (IL 30 ILCS 235/). This update will take effect on January 1, 2025 and allows the City to invest public funds in other instruments not specifically listed in the Public Funds Investment Act through an ordinance or resolution adopted by Council. BUDGET IMPACT: Review of the Investment Policy ensures that standards and procedures are updated on an annual basis. SUPPORTING DOCUMENTS: 1. Red-lined Investment Policy Investment Policy—Red Lined City of Galesburg 55 West Tompkins Street Galesburg, IL 61401 This page intentionally left blank. Approved December 18,202316, 2024 1 City of Galesburg Investment Policies TABLE OF CONTENTS POLICY STATEMENT .................................................................................................................. 2 SCOPE ........................................................................................................................................ 2 OBJECTIVE ................................................................................................................................. 2 Safety ..................................................................................................................................... 2 Credit Risk .............................................................................................................................. 2 Interest Rate Risk ................................................................................................................... 3 Liquidity ................................................................................................................................. 3 Yield ....................................................................................................................................... 3 STANDARDS OF CARE ................................................................................................................ 3 Prudence ................................................................................................................................ 3 Ethics and Conflicts of Interest .............................................................................................. 4 Delegation of Authority ......................................................................................................... 4 SAFEKEEPING AND CUSTODY .................................................................................................... 4 Authorized Financial Dealers and Institutions....................................................................... 4 Internal Controls .................................................................................................................... 5 Delivery vs. Payment ............................................................................................................. 5 SUITABLE INVESTMENTS ........................................................................................................... 6 Investment Types .................................................................................................................. 6 Collateralization ..................................................................................................................... 6 Repurchase Agreements ....................................................................................................... 7 INVESTMENT PARAMETERS ...................................................................................................... 7 Diversification ........................................................................................................................ 7 Maximum Maturities ............................................................................................................. 7 Competitive Bid ..................................................................................................................... 7 REPORTING ............................................................................................................................... 8 Methods................................................................................................................................. 8 Performance .......................................................................................................................... 8 POLICY CONSIDERATIONS ......................................................................................................... 8 Exemptions ............................................................................................................................ 8 Amendments ......................................................................................................................... 8 ATTACHMENTS .......................................................................................................................... 8 ADOPTION ............................................................................................................................... 98 LIST OF AUTHORIZED PERSONNEL ............................................................................................ 9 GLOSSARY OF CASH MANAGEMENT TERMS .......................................................................... 10 AUTHORIZED FINANCIAL DEALER INVESTMENT POLICY ACCEPTANCE .................................. 17 Approved December 18,202316, 2024 2 City of Galesburg Investment Policies CITY OF GALESBURG, ILLINOIS INVESTMENT POLICY POLICY STATEMENT It is the policy of the City of Galesburg to invest public funds in a manner which will provide the highest investment return with the maximum security while meeting the daily cash flow demands of the City and conforming to all state and local statutes governing the investment of public funds. SCOPE The investment policy applies to all investment transactions and activities of the City except for the Police Pension Fund and the Fire Pension Fund, which are subject to the order of the Board of Trustees of each respective fund. All financial assets of current funds, and other funds that may be created from time to time, shall be administered in accordance with the provisions of this policy. The Board of Trustees of the Galesburg Public Library may establish a separate investment policy to govern the investment activities of the City’s Public Library Fund and any special revenue, debt service, or capital projects funds that the City may create specifically for the Library’s benefit, subject to the approval of the City Council. In the absence of a separate, validly approved investment policy for the Library funds, this policy shall govern the investment activities of the Library. OBJECTIVE The primary objective, in priority order of the City of Galesburg investment activities shall be safety, credit risk, liquidity and yield. Safety Safety of principal is the foremost objective of the City. Investments of the City shall be undertaken in a manner that seeks to insure the preservation of capital in the portfolio. Credit Risk Credit Risk is the risk of loss due to the failure of the security issuer or backer. Credit risk may be mitigated by: Limiting investments to the safest types of securities Pre-qualifying the financial institutions, broker/dealers and advisors with which an entity will do business, and Approved December 18,202316, 2024 3 City of Galesburg Investment Policies Diversifying the investment portfolio so that potential losses on individual securities will be minimized. Interest Rate Risk Interest rate risk is the risk that the market value of securities in the portfolio will fall due to changes in general interest rates. Interest rate risk may be mitigated by: Structuring the investment portfolio so that securities mature to meet cash requirements for ongoing operations, thereby avoiding the need to sell securities on the open market prior to maturity, and By investing operating funds primarily in shorter-term securities Liquidity The investment portfolio shall remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated. This is accomplished by structuring the portfolio so that securities mature concurrent with cash need to meet anticipated demands (static liquidity). Furthermore, since all possible cash demands cannot be anticipated, the portfolio should consist largely of securities with active secondary or resale markets (dynamic liquidity). A portion of the portfolio also may be placed in money market mutual funds or Council approved local government investment pools, which offers same-day liquidity for short-term funds. Yield The City’s investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the City’s risk constraints and liquidity needs. The core of investments is limited to relatively low risk securities in anticipation of earning a fair return relative to the risk being assumed. Securities shall not be sold prior to maturity with the following exceptions: • a declining credit security could be sold early to minimize loss of principal; • a security swap would improve the quality yield, or target duration in the portfolio; or • liquidity needs of the portfolio require that the security be sold STANDARDS OF CARE Prudence The standard of prudence to be used in the investment function shall be the “Prudent Person” standard and shall be applied in the context of managing the overall portfolio. This standard states “Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion, and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the expected income to be derived.” Approved December 18,202316, 2024 4 City of Galesburg Investment Policies The Investment Officer and those delegated with investment authority under this policy, when acting in accordance with the written procedures and this policy, and in accord with the Prudent Person Rule, shall be relieved of personal responsibility and liability in the management of the portfolio. Ethics and Conflicts of Interest Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with the proper execution and management of the investment program, or that could impair their ability to make impartial decisions. Delegation of Authority Authority to manage the City of Galesburg’s investment program is granted to the Director of Finance and derived from the state statutes. The Director of Finance is designated as the Investment Officer and is responsible for investment management decisions and activities. All participants in the investment process shall seek to act responsibly as custodians of the public trust. The Investm ent Officer shall develop and maintain written administrative procedures for the operation of the investment program, which are consistent with this investment policy. Procedures will include reference to selection of broker/dealers and financial institutions, safekeeping, repurchase agreements, wire transfer agreements, banking services contracts, and other investment related activities. The Investment Officer shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials and staff. The Investment Officer shall designate the Assistant Finance Director as a liaison/deputy in the event circumstances require timely action and the Investment Officer is not available. No person may engage in an investment transaction except as provided under the terms of this policy and the procedures established by the Investment Officer. SAFEKEEPING AND CUSTODY Authorized Financial Dealers and Institutions A list will be maintained of financial institutions authorized to provide investment services. In addition, a list will also be maintained, by the Investment Officer, of approved security brokers/dealers selected by creditworthiness. No public deposit shall be made except to a qualified public depository as established by the state statutes. The Investment Officer may approve a broker or dealer to sell securities to the City if the broker or dealer meets the following criteria: • Provides audited financial statements for the past three fiscal years. • Provides proof of membership in the Securities Investor Protection Corporation. • Provides proof of registration with the Securities and Exchange Commission. Approved December 18,202316, 2024 5 City of Galesburg Investment Policies • Provides proof of membership in a self-regulatory organization such as the National Association of Securities Dealers, the Financial Industry Regulatory Authority or the New York Stock Exchange. • Provides proof of state registration. • Has been in operation for at least 10 years, or in the case of broker/dealer companies that have been created as result of mergers or acquisitions, have a substantial operating history. Once a broker/dealer is approved to sell securities to the City, the broker/dealer must continue to provide its most current audited annual financial statements along with the submission of the annually completed and signed “Authorized Financial Dealers Investment Policy Acceptance” form. All security brokers/dealers with whom the City transacts business will be provided a copy of this Investment Policy. All security broker/dealers will provide the City with certification of having read and understood and agreeing to comply with the City’s investment policy. An annual review of the registration of qualified broker/dealers will be conducted by the Director of Finance. Internal Controls The Investment Officer is responsible for establishing and maintaining an internal control structure designed to ensure that assets of the City are protected from loss, theft or misuse. The controls shall be designed to ensure that the assets of the entity are protected from loss, theft or misuse. The internal control structure shall be designed to provide reasonable assurance that these objectives are met. The concept of reasonable assurance recognized that (1) the cost of a control should not exceed the benefits likely to be derived and (2) the valuation of costs and benefits require estimates and judgments by management. Accordingly, the Director of Finance shall establish a process for an annual review by an external independent review by the City’s independent auditor to assure compliance with policies and procedures. The internal controls shall address the following po ints: • Control of collusion • Separation of transaction authority from accounting and recordkeeping • Custodial safekeeping • Avoidance of physical delivery securities • Clear delegation of authority to subordinate staff members • Written confirmation of transactions for investments and wire transfers • Development of a wire transfer agreement with the lead bank and third-party custodian Delivery vs. Payment All security transactions, where applicable, entered into by the City, shall be conducted on a delivery-versus-payment (DVP) basis to ensure that securities are deposited in an eligible financial institution before the release of funds. Approved December 18,202316, 2024 6 City of Galesburg Investment Policies SUITABLE INVESTMENTS Investment Types The City may invest in any type of security allowed for in Illinois statutes under the Public Funds Investment Act (30 ILCS 235/1) regarding the investment of public funds for home rule municipalities. With Council’s approval prior to the purchase of the following type of investment, approved investments also include an adjustment to the following section of 30 ILCS 235/1 a-12, effective January 1, 2025: • With Council’s prior approval, the City may also invest in unrated bonds or debt certificates issued by any local governmental unit of the State of Illinois, of any other state, or of any political subdivision or agency of the State of Illinois or of any other state, whether the interest earned thereon is taxable or tax-exempt under federal law. The debt certificates shall be registered in the name of the City or held under a custodial agreement at a bank. • The City may adopt an ordinance or resolution to allow for investment of public funds in other instruments not specifically listed in this Section provided that those investments comply with (i) any other law that authorizes public agencies to invest funds and (ii) the investment policy adopted by the City. If Illinois State statutes for investment of public funds approve additional types of securities, they will be eligible for investment by the City. This policy shall be amended to reflect the additional types of securities for investment and the amended version approved by the City Council. Direct specific investment parameters for the investment of public funds in Illinois are found in the Illinois State Statutes, Public Funds Investment Act 30 ILCS 235. Collateralization Funds on deposit in excess of FDIC or SIPC limits must be secured by some form of collateral, witnessed by a written agreement. The amount of collateral provided will not be less than 100 percent of the fair market value of the net amount of public funds secured. Collateral shall be either in the form of securities specifically pledged to and held in the City’s name and held in safekeeping by an independent third party custodian designated by the City Council, such as a trust institution, or a Federal Reserve Bank and evidenced by a safekeeping agreement which complies with the Uniform Commercial Code (UCC) requirement for control, or in the form of an original Federal Home Loan Bank irrevocable Letter of Credit issued to the City of Galesburg or an agent of the City of Galesburg equal to 100 percent of the fair market value of the net amount of public funds secured. The custodian may not be owned or controlled by the depository institution or its holding company unless it is a separately operated trust institution. The UCC states that the depositor does not have a perfected interest in a security unless the depositor controls it. Control means that swaps, sales, and transfers cannot occur without the depositor’s written approval. A detail monthly statement listing a description of securities pledged and held in safekeeping must be provided to the City. The City will accept any of the following securities as collateral: Approved December 18,202316, 2024 7 City of Galesburg Investment Policies • Negotiable obligations of the United States Government; or • Negotiable obligations of any agency or instrumentality of the United States Government guaranteed by the full faith and credit of the United States Government; or • Negotiable obligations of the State of Illinois Substitutions of collateral should meet the requirements of the collateral agreement, be approved in writing prior to release, and the collateral should not be released until the replacement collateral has been received. Repurchase Agreements Repurchase agreements shall be consistent with GFOA Recommended Practices on Repurchase Agreements. INVESTMENT PARAMETERS Diversification The investments shall be diversified by: • Limiting investments to avoid overconcentration in securities from a specific issuer or business sector (excluding U.S. Treasury securities or investments federally insured such as with FDIC), • Limiting investment securities that have higher credit risks, • Investing in securities with varying maturities and • Continuously investing with a portion of the portfolio in readily available funds such as local government investment pools, money market or overnight repurchase agreements to ensure that appropriate liquidity is maintained in order to meet ongoing obligations. Maximum Maturities To the extent possible, the City will attempt to match its investments with anticipated cash flow requirements. We recognize that there is a permanent part of the portfolio, and when the increase in return for extending maturities is compelling, the Director of Finance may consider extending a segment of the portfolio into longer-term maturities. The maximum maturity for City investments shall be ten (10) years. The average maturity of the total portfolio shall not exceed five (5) years. Because of inherent difficulties in accurately forecasting cash flow requirements, a portion of the portfolio should be continuously invested in readily available funds such as local government investment pools, money market funds, or overnight repurchase agreements to ensure that appropriate liquidity is maintained to meet ongoing obligations. Competitive Bid A competitive “bid” shall be conducted, except for funds placed in local government investment pools and/or approved savings accounts or, when the City directly invests surplus funds in investment instruments. If the holding bank of a maturing certificate of deposit is offering a Approved December 18,202316, 2024 8 City of Galesburg Investment Policies competitive rollover interest rate, the certificate of deposit can be rolled over to a new maturity date without a competitive bid. REPORTING Methods The Investment Officer shall submit quarterly reports to the City Manager and the City Council containing sufficient information to permit an informed outside reader to evaluate the performance of the investment program. The report should summarize invest ment securities held at the end of the reporting period, maturities, returns, percentage of the portfolio which each type of investment represents or other factors of importance. The market value of the portfolio shall be included within the quarterly rep orts. Performance The investment portfolio will be managed in accordance with the parameters specified within this policy. The portfolio, taking into account the City’s investment constraints and cash flow needs, should obtain a comparable rate of return during a market/econom ic environment of stable interest rates. A series of appropriate benchmarks shall be established against which portfolio performance shall be compared on a regular basis. POLICY CONSIDERATIONS Exemptions Any investment currently held that does not meet the guidelines of this policy shall be exempted from the requirements of this policy. At maturity or liquidation, such monies shall be reinvested only as provided by this policy. Amendments This policy shall be reviewed on an annual basis. Any changes must be approved by the Director of Finance and any other appropriate authority, as well as the individual(s) charged with maintaining internal controls. ATTACHMENTS The following documents, as applicable, are attached to this policy: 1. List of authorized personnel 2. Glossary of Terms 3. Authorized Financial Dealers Investment Policy Acceptance Approved December 18,202316, 2024 9 City of Galesburg Investment Policies ADOPTION The City’s investment policy shall be adopted by the City Council. The Investment Officer, City Manager and City Council shall review the policy on an annual basis. The investment policy is available in the City Clerk’s office at City Hall, 55 West Tompkins Street, Galesburg, IL. This policy supersedes all prior investment policies. LIST OF AUTHORIZED PERSONNEL Authorization Name Title Investment Officer/Signer Gloria OsbornJennifer O’Hern Director of Finance & Information Systems Authorized Signer/Safekeeping Receipts [CDs] Peter Schwartzman Mayor Kelli Bennewitz City Clerk Gloria OsbornJennifer O’Hern Director of Finance & Information Systems Bobbi Chockley Assistant Finance Director Eric Hanson City Manager Liaison Investment Officer Bobbi Chockley Assistant Finance Director Secretary Kelli Bennewitz City Clerk Third Party Trust Custodian Farmers & Mechanics Bank Approved December 18,202316, 2024 10 City of Galesburg Investment Policies GLOSSARY OF CASH MANAGEMENT TERMS The following is a glossary of key investing terms, many of which appear in the Investment Policy. This glossary has been adapted from an article, entitled "Investment terms for everyday use," that appeared in the April 5, 1996, issue of Public Investor, GFOA's subscription investment newsletter. Accrued Interest - The accumulated interest due on a bond as of the last interest payment made by the issuer. Agency - A debt security issued by a federal or federally sponsored agency. Federal agencies are backed by the full faith and credit of the U.S. Government. Federally sponsored agencies (FSAs) are backed by each particular agency with a market perception that th ere is an implicit government guarantee. An example of federal agency is the Government National Mortgage Association (GNMA). An example of a FSA is the Federal National Mortgage Association (FNMA). Amortization - The systematic reduction of the amount owed on a debt issue through periodic payments of principal. Average Life - The average length of time that an issue of serial bonds and/or term bonds with a mandatory sinking fund feature is expected to be outstanding. Basis Point - A unit of measurement used in the valuation of fixed-income securities equal to 1/100 of 1 percent of yield, e.g., "1/4" of 1 percent is equal to 25 basis points. Bid - The indicated price at which a buyer is willing to purchase a security or commodity. Book Value - The value at which a security is carried on the inventory lists or other financial records of an investor. The book value may differ significantly from the security's current value in the market. Callable Bond - A bond issue in which all or part of its outstanding principal amount may be redeemed before maturity by the issuer under specified conditions. Call Price - The price at which an issuer may redeem a bond prior to maturity. The price is usually at a slight premium to the bond's original issue price to compensate the holder for loss of income and ownership. Call Risk - The risk to a bondholder that a bond may be redeemed prior to maturity. Cash Sale/Purchase - A transaction which calls for delivery and payment of securities on the same day that the transaction is initiated. Collateralization - Process by which a borrower pledges securities, property, or other deposits for the purpose of securing the repayment of a loan and/or security. Commercial Paper - An unsecured short-term promissory note issued by corporations, with maturities ranging from 2 to 270 days. Convexity - A measure of a bond's price sensitivity to changing interest rates. A high convexity indicates greater sensitivity of a bond's price to interest rate changes. Approved December 18,202316, 2024 11 City of Galesburg Investment Policies Coupon Rate - The annual rate of interest received by an investor from the issuer of certain types of fixed-income securities. Also known as the "interest rate." Credit Quality - The measurement of the financial strength of a bond issuer. This measurement helps an investor to understand an issuer's ability to make timely interest payments and repay the loan principal upon maturity. Generally, the higher the credit quality of a b ond issuer, the lower the interest rate paid by the issuer because the risk of default is lower. Credit quality ratings are provided by nationally recognized rating agencies. Credit Risk - The risk to an investor that an issuer will default in the payment of interest and/or principal on a security. Current Yield (Current Return) - A yield calculation determined by dividing the annual interest received on a security by the current market price of that security. Delivery Versus Payment (DVP) - A type of securities transaction in which the purchaser pays for the securities when they are delivered either to the purchaser or his/her custodian. Derivative Security - Financial instrument created from, or whose value depends upon, one or more underlying assets or indexes of asset values. Discount - The amount by which the par value of a security exceeds the price paid for the security. Diversification - A process of investing assets among a range of security types by sector, maturity, and quality rating. Duration - A measure of the timing of the cash flows, such as the interest payments and the principal repayment, to be received from a given fixed-income security. This calculation is based on three variables: term to maturity, coupon rate, and yield to maturity. The duration of a security is a useful indicator of its price volatility for given changes in interest rates. Fair Value - The amount at which an investment could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. Federal Funds (Fed Funds) - Funds placed in Federal Reserve banks by depository institutions in excess of current reserve requirements. These depository institutions may lend fed funds to each other overnight or on a longer basis. They may also transfer funds among each other on a same- day basis through the Federal Reserve banking system. Fed funds are considered to be immediately available funds. Federal Funds Rate - Interest rate charged by one institution lending federal funds to the other. Government Securities - An obligation of the U.S. government, backed by the full faith and credit of the government. These securities are regarded as the highest quality of investment securities available in the U.S. securities market. See "Treasury Bills, Notes, and Bonds." Interest Rate - See "Coupon Rate." Interest Rate Risk - The risk associated with declines or rises in interest rates which cause an investment in a fixed-income security to increase or decrease in value. Approved December 18,202316, 2024 12 City of Galesburg Investment Policies Internal Controls - An internal control structure designed to ensure that the assets of the entity are protected from loss, theft, or misuse. The internal control structure is designed to provide reasonable assurance that these objectives are met. The concept of reasonable assurance recognizes that 1) the cost of a control should not exceed the benefits likely to be derived and 2) the valuation of costs and benefits requires estimates and judgments by management. Internal controls should address the following points: 1. Control of collusion - Collusion is a situation where two or more employees are working in conjunction to defraud their employer. 2. Separation of transaction authority from accounting and record keeping - By separating the person who authorizes or performs the transaction from the people who record or otherwise account for the transaction, a separation of duties is achieved. 3. Custodial safekeeping - Securities purchased from any bank or dealer including appropriate collateral (as defined by state law) shall be placed with an independent third party for custodial safekeeping. 4. Avoidance of physical delivery securities - Book-entry securities are much easier to transfer and account for since actual delivery of a document never takes place. Delivered securities must be properly safeguarded against loss or destruction. The potential for fraud and loss increases with physically delivered securities. 5. Clear delegation of authority to subordinate staff members - Subordinate staff members must have a clear understanding of their authority and responsibilities to avoid improper actions. Clear delegation of authority also preserves the internal control structure that is contingent on the various staff positions and their respective responsibilities. 6. Written confirmation of transactions for investments and wire transfers - Due to the potential for error and improprieties arising from telephone and electronic transactions, all transactions should be supported by written communications and approved by the appropriate person. Written communications may be via fax if on lette rhead and if the safekeeping institution has a list of authorized signatures. 7. Development of a wire transfer agreement with the lead bank and third-party custodian - The designated official should ensure that an agreement will be entered into and will address the following points: controls, security provisions, and responsibilities of each party making and receiving wire transfers. Inverted Yield Curve - A chart formation that illustrates long-term securities having lower yields than short-term securities. This configuration usually occurs during periods of high inflation coupled with low levels of confidence in the economy and a restrictive monetary po licy. Investment Company Act of 1940- Federal legislation which sets the standards by which investment companies, such as mutual funds, are regulated in the areas of advertising, promotion, performance reporting requirements, and securities valuations. Investment Policy - A concise and clear statement of the objectives and parameters formulated by an investor or investment manager for a portfolio of investment securities. Approved December 18,202316, 2024 13 City of Galesburg Investment Policies Investment-grade Obligations - An investment instrument suitable for purchase by institutional investors under the prudent person rule. Investment-grade is restricted to those obligations rated BBB or higher by a rating agency. Liquidity - An asset that can be converted easily and quickly into cash. Local Government Investment Pool (LGIP) - An investment by local governments in which their money is pooled as a method for managing local funds. Mark-to-market - The process whereby the book value or collateral value of a security is adjusted to reflect its current market value. Market Risk - The risk that the value of a security will rise or decline as a result of changes in market conditions. Market Value - Current market price of a security. Maturity - The date on which payment of a financial obligation is due. The final stated maturity is the date on which the issuer must retire a bond and pay the face value to the bondholder. See "Weighted Average Maturity." Money Market Mutual Fund - Mutual funds that invest solely in money market instruments (short-term debt instruments, such as Treasury bills, commercial paper, bankers' acceptances, repos and federal funds). Mutual Fund - An investment company that pools money and can invest in a variety of securities, including fixed-income securities and money market instruments. Mutual funds are regulated by the Investment Company Act of 1940 and must abide by the following Securities and Exchange Commission (SEC) disclosure guidelines: 1. Report standardized performance calculations. 2. Disseminate timely and accurate information regarding the fund's holdings, performance, management and general investment policy. 3. Have the fund's investment policies and activities supervised by a board of trustees, which are independent of the adviser, administrator or other vendor of the fund. 4. Maintain the daily liquidity of the fund's shares. 5. Value their portfolios on a daily basis. 6. Have all individuals who sells SEC-registered products licensed with a self-regulating organization (SRO) such as the National Association of Securities Dealers (NASD). 7. Have an investment policy governed by a prospectus which is updated and filed by the SEC annually. Mutual Fund Statistical Services - Companies that track and rate mutual funds, e.g., IBC/Donoghue, Lipper Analytical Services, and Morningstar. National Association of Securities Dealers (NASD) - A self-regulatory organization (SRO) of brokers and dealers in the over-the-counter securities business. Its regulatory mandate includes authority over firms that distribute mutual fund shares as well as other securities. Approved December 18,202316, 2024 14 City of Galesburg Investment Policies Net Asset Value - The market value of one share of an investment company, such as a mutual fund. This figure is calculated by totaling a fund's assets which includes securities, cash, and any accrued earnings, subtracting this from the fund's liabilities and dividing thi s total by the number of shares outstanding. This is calculated once a day based on the closing price for each security in the fund's portfolio. (See below.) [(Total assets) - (Liabilities)]/(Number of shares outstanding) No Load Fund - A mutual fund which does not levy a sales charge on the purchase of its shares. Nominal Yield - The stated rate of interest that a bond pays its current owner, based on par value of the security. It is also known as the "coupon," "coupon rate," or "interest rate." Offer - An indicated price at which market participants are willing to sell a security or commodity. Also referred to as the "Ask price." Par - Face value or principal value of a bond, typically $1,000 per bond. Positive Yield Curve - A chart formation that illustrates short-term securities having lower yields than long-term securities. Premium - The amount by which the price paid for a security exceeds the security's par value. Prime Rate - A preferred interest rate charged by commercial banks to their most creditworthy customers. Many interest rates are keyed to this rate. Principal - The face value or par value of a debt instrument. Also, may refer to the amount of capital invested in a given security. Prospectus - A legal document that must be provided to any prospective purchaser of a new securities offering registered with the SEC. This can include information on the issuer, the issuer's business, the proposed use of proceeds, the experience of the issuer's management, and certain certified financial statements. Prudent Person Rule - An investment standard outlining the fiduciary responsibilities of public funds investors relating to investment practices. Regular Way Delivery - Securities settlement that calls for delivery and payment on the third business day following the trade date (T+3); payment on a T+1 basis is currently under consideration. Mutual funds are settled on a same day basis; government securities are settled on the next business day. Reinvestment Risk - The risk that a fixed-income investor will be unable to reinvest income proceeds from a security holding at the same rate of return currently generated by that holding. Repurchase Agreement (repo or RP) - An agreement of one party to sell securities at a specified price to a second party and a simultaneous agreement of the first party to repurchase the securities at a specified price or at a specified later date. Reverse Repurchase Agreement (Reverse Repo) - An agreement of one party to purchase securities at a specified price from a second party and a simultaneous agreement by the first Approved December 18,202316, 2024 15 City of Galesburg Investment Policies party to resell the securities at a specified price to the second party on demand or at a specified date. Rule 2a-7 of the Investment Company Act - Applies to all money market mutual funds and mandates such funds to maintain certain standards, including a 13- month maturity limit and a 90-day average maturity on investments, to help maintain a constant net asset value of one dollar ($1.00). Safekeeping - Holding of assets (e.g., securities) by a financial institution. Serial Bond - A bond issue, usually of a municipality, with various maturity dates scheduled at regular intervals until the entire issue is retired. Sinking Fund - Money accumulated on a regular basis in a separate custodial account that is used to redeem debt securities or preferred stock issues. Swap - Trading one asset for another. Term Bond - Bonds comprising a large part or all of a particular issue which come due in a single maturity. The issuer usually agrees to make periodic payments into a sinking fund for mandatory redemption of term bonds before maturity. Total Return - The sum of all investment income plus changes in the capital value of the portfolio. For mutual funds, return on an investment is composed of share price appreciation plus any realized dividends or capital gains. This is calculated by taking the following components during a certain time period. (Price Appreciation) + (Dividends paid) + (Capital gains) = Total Return Treasury Bills - Short-term U.S. government non-interest bearing debt securities with maturities of no longer than one year and issued in minimum denominations of $10,000. Auctions of three- and six-month bills are weekly, while auctions of one-year bills are monthly. The yields on these bills are monitored closely in the money markets for signs of interest rate trends. Treasury Notes - Intermediate U.S. government debt securities with maturities of one to 10 years and issued in denominations ranging from $1,000 to $1 million or more. Treasury Bonds - Long-term U.S. government debt securities with maturities of ten years or longer and issued in minimum denominations of $1,000. Currently, the longest outstanding maturity for such securities is 30 years. Uniform Net Capital Rule - SEC Rule 15C3-1 outlining capital requirements for broker/dealers. Volatility - A degree of fluctuation in the price and valuation of securities. "Volatility Risk" Rating - A rating system to clearly indicate the level of volatility and other non- credit risks associated with securities and certain bond funds. The ratings for bond funds range from those that have extremely low sensitivity to changing market conditions and offer the greatest stability of the returns ("aaa" by S&P; "V-1" by Fitch) to those that are highly sensitive with currently identifiable market volatility risk ("ccc-" by S&P, "V-10" by Fitch). Approved December 18,202316, 2024 16 City of Galesburg Investment Policies Weighted Average Maturity (WAM) - The average maturity of all the securities that comprise a portfolio. According to SEC rule 2a-7, the WAM for SEC registered money market mutual funds may not exceed 90 days and no one security may have a maturity that exceeds 397 days. When Issued (WI) - A conditional transaction in which an authorized new security has not been issued. All "when issued" transactions are settled when the actual security is issued. Yield - The current rate of return on an investment security generally expressed as a percentage of the security's current price. Yield-to-call (YTC) - The rate of return an investor earns from a bond assuming the bond is redeemed (called) prior to its nominal maturity date. Yield Curve - A graphic representation that depicts the relationship at a given point in time between yields and maturity for bon ds that are identical in every way except maturity. A normal yield curve may be alternatively referred to as a positive yield curve. Yield-to-maturity - The rate of return yielded by a debt security held to maturity when both interest payments and the investor's potential capital gain or loss are included in the calculation of return. Zero-coupon Securities - Security that is issued at a discount and makes no periodic interest payments. The rate of return consists of a gradual accretion of the principal of the security and is payable at par upon maturity. Approved December 18,202316, 2024 17 City of Galesburg Investment Policies AUTHORIZED FINANCIAL DEALER INVESTMENT POLICY ACCEPTANCE I have received the investment policy approved by City Council on December 18, 20232, 2024 for the City of Galesburg. I have read and understand the goals and objectives of the City’s investment program. Also, based on if I am seeking consideration to be a new broker/dealer or if I am currently an approved broker/dealer, I will include the required documentation listed below. Signature Date Print Name E-Mail Address Title Telephone Number Company Fax Number Company Address City, State, Zip Code Status Requirement Yes No Not Applicable Current If already an approved broker/dealer, ONLY include the company’s most current audited annual financial statement with this acceptance form New Been in operation for at least 10 years, or in the case of broker/dealer companies that have been created as result of mergers or acquisitions, have a substantial operating history New If this is the first time to submit acceptance form, provide audited financial statements for the past three fiscal years New Provided proof of membership in the Securities Investor Protection Corporation New Provide proof of registration with the Securities and Exchange Commission New Provide proof of membership in a self-regulatory organization such as the National Association of Securities Dealers, the Financial Industry Regulatory Authority or the New York Stock Exchange New Provide proof of state registration ___________________________________________________________________________________________________________________________________________________________________________________________ Prepared by: JL Page 1 of 1 COUNCIL LETTER CITY OF GALESBURG DECEMBER 16, 2024 AGENDA ITEM: Authorizing the City Manager to obtain a new service provider for the city’s Section 125 Cafeteria Plan, effective January 1, 2025. SUMMARY RECOMMENDATION: The City Manager recommends the City Council approve the authorization. BACKGROUND: The city currently sponsors an IRC section 125 Flexible Spending Arrangement (FSA) plan for its employees. An administrator is retained to process the claims, and to oversee plan IRS compliance and reporting. The current service provider is Flexible Benefit Service LLC. The request is to contract with Midwest Group Benefits (MGB) as the new plan services provider beginning January 1, 2025 and forward. This company has been recommended by our benefits & wellness consultant for improved claims processing and payments. BUDGET IMPACT: The anticipated annual cost is $1316.00, which is $484 less than the initial budget. Sufficient funds are budgeted for this change in administrator. SUPPORTING DOCUMENTS: 1.MGB FSA Plan Document 24-4091 City of Galesburg Flexible Spending Account Effective as of January 1, 2025 Disclaimer: This document is made available by Mineral™ as a service to its clients. This document has been prepared for Mineral™ by Barrow Weatherhead Lent LLP ("BWL") and is intended to be used by a company sponsoring a Cafeteria Plan pursuant to Section 125 of the Internal Revenue Code and the regulations issued thereunder. While BWL from time-to-time updates this model form document for Mineral™, BWL specifically disclaims any responsibility to (1) ensure this sample document is appropriate for any Mineral™ clients use or (2) provide updates to reflect changes in applicable law directly to any Mineral™ client that does not maintain a client relationship with BWL. Clients who choose to use this document should consult with their own counsel to adapt this form to their plan terms and are responsible for ensuring that this document is consistent with how the plan is being administered by any third party administrators. This document is not intended, and should not be viewed, as legal guidance or advice. Specific questions about the tax or legal implications of employer plans should be referred to qualified counsel. This document is not and should not be deemed to be in any way made available as an inducement to establish or maintain a business relationship with BWL. City of Galesburg Flexible Spending Account Plan Document Effective as of January 1, 2025 3 6 6 6 6 6 6 6 6 6 6 6 6 6 6 7 7 9 9 10 10 10 10 10 10 10 11 11 11 11 11 12 12 12 12 12 12 12 12 12 12 13 13 13 13 13 13 13 13 14 14 14 14 14 14 Table of Contents Table of Contents ARTICLE I Introduction Purpose of Plan Plan Status ARTICLE II Participation Commencement of Participation Cessation of Participation Reinstatement of Former Participant Participation During FMLA and Uniformed Services Leave of Absence; Similar State Leaves ARTICLE III Optional Benefits Contributions; Benefit Options Receipt of Benefits other than Cash Election of Benefits Irrevocability of Election by the Participant Consistency Rules Automatic Termination of Election Changes by Administrator Maximum Contributions Premium Payments by Employees on FMLA and Uniformed Services Leave of Absence ARTICLE IV Health Care Flexible Spending Program Purpose of Health Care FSA Program Establishment of Accounts Health Care Flexible Spending Account Maximum and Minimum Contribution. Crediting of Accounts Debiting of Accounts Forfeiture of Accounts Claims for Reimbursement Disbursement or Payment of Expenses Limits on Reimbursements ARTICLE V Dependent Care Assistance Program Purpose of Dependent Care FSA Program Establishment of Accounts Maximum and Minimum Contribution Crediting of Accounts Debiting of Accounts Forfeiture of Accounts Claims for Reimbursement Reimbursement or Payment of Expenses Report to Participants ARTICLE VI Termination of Participation ARTICLE VII Administration Plan Administration Payment of Expenses Examination of Records Reliance on Tables, Etc Indemnification of Administrator Insurance Contracts Control Named Fiduciary 14 14 16 16 16 16 16 16 16 16 17 19 19 19 19 19 20 20 20 20 21 21 21 21 21 22 22 22 22 22 22 22 22 22 22 22 22 23 23 23 23 23 23 23 23 23 23 23 23 23 24 24 24 24 24 24 24 COBRA Compliance HIPAA Privacy and Security Provisions ARTICLE VIII Amendment and Termination Amendment of Plan Termination of Plan Legal Enforceability of Provisions ARTICLE IX Claims Provisions General Claims Procedures Health Claim Procedures Preservation of Other Remedies ARTICLE X Miscellaneous Communication to Employees Participant's Rights Protective Clauses No Guarantee of Tax Consequences Indemnification of the Plan Sponsor by Participants Nonassignability of Rights Limitation of Rights Governing Law Funding Debit Card or Other Stored Value Cards Effect of Mistake Right to Offset Future Payments Right to Recover Payments Savings Clause Forfeitures ARTICLE XI Definitions "Administrator" "COBRA" "Code" "Compensation" "Contract Year" "Dependent" "Dependent Care Assistance Account" "Dependent Care FSA Program" "Dependent Care Expenses" "Dependent Care Service Provider" "Effective Date" "Employee" "Employee Provided Premium" "ERISA" "Flexible Benefit Contributions" "FMLA" "FMLA Leave" "Health Care Flexible Spending Account" "Health Care FSA Program" Health Savings Account/HSA Health Savings Account Program/HSA Program High Deductible Health Plan/HDHP HSA-Eligible Employee "Medical Plans" "Participant" "Plan" 24 24 24 24 24 24 24 24 24 25 26 26 26 26 27 27 27 27 27 27 29 29 "Plan Sponsor" "Plan Year" "Post-Service Claim" "Pre-Service Claim" "Qualified Beneficiary" "Qualified Benefit Plan" "Qualifying Event" "Qualifying Medical Care Expense" "Urgent Care" "Uniformed Services" APPENDIX A THE HEALTH SAVINGS ACCOUNT PROGRAM ARTICLE I PLAN ESTABLISHMENT ARTICLE II DEFINITIONS ARTICLE III PARTICIPATION AND TERMS ARTICLE IV MISCELLANEOUS APPENDIX B PARTICIPATING EMPLOYERS City of Galesburg Flexible Spending Account ARTICLE I Introduction 1.1 Purpose of Plan. The purpose of this Plan is to provide eligible employees of City of Galesburg a choice between cash and benefits under one or more Qualified Benefit Plans. 1.2 Plan Status. This Plan is intended to satisfy the requirements of Section 125 of the Internal Revenue Code of 1986, as amended from time to time (the "Code"). The Plan was established effective January 1, 2025. ARTICLE II Participation 2.1 Commencement of Participation. Each regular full-time employee who is regularly scheduled to work for the Plan Sponsor at least 32 hours per week is eligible to participate in the Health Care FSA Program and the Dependent Care FSA Program on his or her date of hire. For all other Qualified Benefit Plans, each Employee will be eligible to participate in the Plan on the first day on which he or she meets the eligibility requirements of any Qualified Benefit Plan. An Employee will become a Participant upon making an appropriate election in accordance with the provisions of Section 3.3. 2.2 Cessation of Participation. Subject to the rights of a Participant or his or her spouse and/or Dependents to elect continuation of health care coverage under Code Section 4980B, a Participant will cease to be a Participant in the Plan as of the earlier of (i) the date on which this Plan terminates or (ii) the date on which he or she dies, terminates employment with the Plan Sponsor, or ceases to be an Employee eligible to participate under Section 2.1. 2.3 Reinstatement of Former Participant. A former Participant will again become a Participant if and when he or she first meets the eligibility requirements of Section 2.1. 2.4 Participation During FMLA and Uniformed Services Leave of Absence; Similar State Leaves. Any Employee who is absent from work due to (i) an FMLA Leave; (ii) a period of duty in the Uniformed Services; or (iii)leave under a similar or equivalent, applicable state family and medical leave law that required health benefits continuation, will have the right to continue participation in any Qualified Benefit Plan to the extent, and for the time period, required by law. The Employee's right to maintain coverage while on a leave of absence (other than COBRA continuation coverage) is conditioned on the Employee's continuing to have an employment relationship with the Plan Sponsor and making the required contributions as provided in Section 3.9, as applicable. ARTICLE III Optional Benefits 3.1 Contributions; Benefit Options. (a) Employee Contributions. A Participant may elect under this Plan to receive his or her full Compensation for any Plan Year in cash or to have a portion of his or her Compensation applied by the Plan Sponsor to the payment of Flexible Benefit Contributions or Employee Provided Premiums, as the case may be, under any one or more Qualified Benefit Plan(s). A Participant may elect to make pre-tax contributions to the HSA to cover "qualified eligible medical expenses," as set forth in Code Section 223(d)(2), subject to the limitations set forth in Appendix A. 3.2 Receipt of Benefits other than Cash. While the election to receive benefits under one or more Qualified Benefit Plans in lieu of cash is made under this Plan, benefits will be provided under the applicable Qualified Benefit Plan. The options available under each such plan, the requirements for participating in such options, the amount of premiums, deductibles and co-payments (if any), the amount, timing and conditions for the receipt of benefits and all other terms and conditions of eligibility, coverage and benefits under such options are set forth in the Qualified Benefit Plans. Any claim which arises under a Qualified Benefit Plan will be subject to review under the Qualified Benefit Plan and not under this Plan. Notwithstanding the foregoing, all benefits, terms, conditions and claims with respect to the Health Care FSA Program or Dependent Care FSA Program are provided under this Plan. Page 6 3.3 Election of Benefits. (a) With the exception of the Health Care FSA Program and the Dependent Care FSA Program, once a Participant enrolls in any one or more of the Qualified Benefit Plans, he or she will be deemed to have elected to have his or her Compensation reduced to the extent necessary to satisfy the Participant's Employee Provided Premiums due under such Qualified Benefit Plans, unless by written notice (on forms provided by the Plan Sponsor) to the Administrator prior to the start of any Coverage Period, a Participant elects not to have any Compensation reductions contributed to the Employee Provided Premiums under one or more Qualified Benefit Plans. (b) If a Participant enrolls in the Health Care FSA Program and Dependent Care FSA Program, then the Participant must file a written election or elections with the Administrator (on forms provided by the Plan Sponsor) to receive his or her Compensation in cash or to have such Compensation reduced by the amount of the Flexible Benefit Contributions. Such election must be made not later than (i) the first day of the Coverage Period to which such election relates (in the case of an existing Employee) or (ii) the first day of the first pay period to which such election relates (in the case of a newly eligible Employee), or such earlier time as determined by the Administrator. 3.4 Irrevocability of Election by the Participant. (a) Any election made under the Plan (including an election made through inaction under Section 3.3) shall be irrevocable by the Participant during the Plan Year except as otherwise provided in (b) through (j) below. Notwithstanding the foregoing, an Employee may elect to increase, decrease or revoke a pre-tax election to make contributions for the HSA Program described in Appendix A at any time on a prospective basis. Any change in an HSA election shall become effective as soon as administratively practicable following the Plan Sponsor's receipt of a completed election change form. No other election changes under the Plan can occur as a result of a change in an HSA election except as otherwise described in this Article III. (b) With respect to any Qualified Benefit Plan, a Participant may revoke an election in writing for the balance of the Plan Year and, if desired, file a new election in writing if, under the facts and circumstances, (i) a change in status occurs, and (ii) the requested revocation and new election satisfy the consistency requirements in Section 3.5 below. For this purpose, a change in status includes the following events: (i) Legal Marital Status. An event that changes a Participant's legal marital status, including marriage, death of spouse, divorce, legal separation or annulment. (ii) Number of Dependents. An event that changes a Participant's number of Dependents who may be eligible for coverage under a Qualified Benefit Plan, including birth, death, adoption or placement for adoption. (iii) Employment Status. An event that changes the employment status of the Participant or the Participant's spouse or Dependent, including termination or commencement of employment, a strike or lockout, a commencement or return from an unpaid leave of absence, and a change in worksite, as well as any other change in the individual's employment status that results in the individual becoming (or ceasing to be) eligible under a benefit plan of his or her employer. (iv) Requirements for Unmarried Dependents. An event that causes a Dependent to satisfy or cease to satisfy the requirements for coverage on account of attainment of age, student status, or any similar circumstance. (v) Residence. A change in the place of residence of the Participant, his or her spouse or Dependent. (vi) Other. Such other events that the Administrator determines will permit the revocation of an election (and, if applicable, the filing of a new election) during a Plan Year under regulations and rulings of the Internal Revenue Service. (c) In the case of coverage under a Qualified Benefit Plan that is a group health plan, a Participant may revoke an election in writing for the balance of the Plan Year and file a new election in writing that corresponds with the special enrollment rights provided in Code Section 9801(f), whether or not the change in election is permitted under Section 3.4(b). Page 7 (d) In the case of a judgment, decree or order resulting from a divorce, legal separation, annulment, or change in legal custody (including a qualified medical child support order) that requires accident or health coverage for a Participant's child or for a foster child who is a Dependent of the Participant, a Participant may change his or her election (i) in order to provide coverage for the child under a group health plan that is a Qualified Benefit Plan if the order so requires, or (ii) in order to cancel health coverage under a group health plan that is a Qualified Benefit Plan for the Participant's child if such order requires the Participant's spouse or former spouse or another individual to provide coverage for the child and that coverage is, in fact, provided. (e) In the case of coverage under a group health plan that is a Qualified Benefit Plan, a Participant may revoke an election for the balance of the Plan Year and file a new election in order to cancel or reduce such medical coverage for the Participant or any covered Dependent of the Participant to the extent that the Participant or Dependent becomes entitled to coverage under Part A or Part B of Title XVIII of the Social Security Act (Medicare) or Title XIX of the Social Security Act (Medicaid), other than coverage consisting solely of benefits under Section 1928 of the Social Security Act (the program for distribution of pediatric vaccines). In addition, if the Participant or any eligible Dependent who has been entitled to Medicare or Medicaid loses eligibility for such coverage, the Participant may file a new election for the balance of the Plan Year to commence or increase coverage under another group health plan that is a Qualified Benefit Plan. (f) If the Participants' share of the cost of coverage under a Qualified Benefit Plan significantly increases or significantly decreases during the Plan Year, a Participant may make a corresponding change in election under the Plan for the balance of the Plan Year, which will include (but not be limited to) the following: (i) For a significant cost increase, Participants electing such coverage for the Plan Year may revoke their election and either elect a similar coverage under another Qualified Benefit Plan for the balance of the Plan Year, or drop such coverage if there is no similar coverage under a Qualified Benefit Plan; or (ii) For a significant cost decrease, Participants may elect to commence participation under certain options under a Qualified Benefit Plan with the significant cost decrease and may make corresponding election changes regarding similar coverage, for the balance of the Plan Year. This Section 3.4(f) shall apply to the Dependent Care FSA Program only if the significant cost change is imposed by a dependent care provider who is not a relative of the Participant. No election change may be made as to the Health Care FSA Program on account of a significant cost change. Despite any other contrary provision of the Plan, for any insignificant changes in the costs of any Qualified Benefit Plans, the Administrator shall automatically change Participants' elections to account for such changes in cost. (g) If the Participant or his or her spouse or Dependents experience a significant curtailment in coverage under a Qualified Benefit Plan other than the Health Care FSA Program during the Plan Year, the Participant may make a corresponding change in election under the Plan for the balance of the Plan Year as follows: (i) For a significant curtailment that is not a loss of coverage, the Participant electing such coverage for the Plan Year may revoke his or her election and elect a similar coverage under another Qualified Benefit Plan for the balance of the Plan Year; or (ii) For a significant curtailment that is (or is deemed by the Administrator to be) a loss of coverage, the Participant electing such coverage for the Plan Year may revoke his or her election and either elect similar coverage under another Qualified Benefit Plan for the balance of the Plan Year, or drop such coverage if there is no similar coverage under a Qualified Benefit Plan. (h) If during the Plan Year a new Qualified Benefit Plan, or option under a Qualified Benefit Plan, becomes available, or an existing Qualified Benefit Plan, or option under a Qualified Benefit Plan, is significantly improved, Participants may elect the new or significantly improved coverage, and may make corresponding election changes regarding similar coverage, for the balance of the Plan Year, provided that no such election change may be made as to the Health Care FSA Program. (i) If a Participant's spouse or Dependent makes an election change under a plan maintained by his or her employer, the Administrator may permit the Participant to revoke an election, other than an election for the Health Care FSA Program, under this Plan and make a new election for the balance of the Plan Year that is on account of and corresponds with the election change made by the Participant's spouse or Dependent, if: (i) The election change made by the Participant's spouse or Dependent under his or her employer's plan Page 8 satisfies the regulations and rulings under Code Section 125; or (ii) The period of coverage under the plan maintained by the employer of the Participant's spouse or Dependent does not correspond with the Plan Year of this Plan. (j) If a Participant or his or her spouse or Dependent loses group health coverage sponsored by a governmental or educational institution, the Participant may elect health coverage under one or more Qualified Benefit Plan(s) for the balance of the Plan Year for the Participant, his or her spouse or Dependent. No change is permitted with regard to the Health Care FSA Program and the Dependent Care FSA Program available under the plan. (k) If a Participant and/or any of a Participant's related individuals enrolls in or intends to enroll in Marketplace coverage during the Marketplace's annual open enrollment period or during a special enrollment period, the Administrator may permit the Participant to revoke an election under the Plan that is on account of and corresponds with: (i) the Participant's (ii) the Participant's related individual or related individuals', or (iii) both the Participant's and the Participant's related individuals' enrollment in a Marketplace plan effective immediately following the revocation. If the Participant does not enroll in Marketplace coverage, the Participant must elect self-only coverage (or family coverage including one or more already-covered related individuals) under the group health plan. Coverage may only be terminated for those covered individuals who are enrolling or intend to enroll in Marketplace coverage during open enrollment or pursuant to a Marketplace special enrollment period. The Administrator may rely on the reasonable representation of the Participant that the Participant and/or the Participant's related individual or related individuals have enrolled or intend to enroll in a Marketplace plan that is effective immediately following the revocation. No change is permitted with regard to non-health benefits including the Health Care FSA Program benefits and Dependent Care FSA Program benefits available under the Plan. (l) If a Participant who was reasonably expected to average 30 hours of service or more per week experiences an employment status change such that he or she is reasonably expected to average less than 30 hours of service per week may prospectively revoke his or her election under the Plan, provided that the Participant certifies to the Administrator that he or she and any related individuals whose coverage is being revoked have enrolled or intend to enroll in another plan providing "minimum essential coverage" (as defined under the Affordable Care Act) for coverage that is effective no later than the first day of the second month following the month that includes the date the original coverage is revoked. No change is permitted with regard to non-health benefits, including the Health Care FSA Program benefits or Dependent Care FSA Program benefits available under the Plan. (m) Any application for a revocation and new election under this Section 3.4 must be made within 30 days following the date of the actual event, or within 60 days of the occurrence of one of the following events: (i) a Participant's or Dependent's coverage under a Medicaid plan or state children's health insurance program is terminated as a result of loss of eligibility for such coverage; or (ii) the Participant or Dependent becomes eligible for a state premium assistance subsidy from a Medicaid plan or through a state children's health insurance program with respect to coverage under the group health plan, and shall be effective at such time as the Administrator shall prescribe, unless otherwise required by law. 3.5 Consistency Rules. A Participant's requested revocation and new election under Section 3.4(b) will be consistent with a change in status (i) if the election change is on account of and corresponds with a change in status that affects the eligibility for coverage under a Qualified Benefit Plan or under a plan maintained by the employer of the Participant's spouse or Dependent, and (ii) with respect to Dependent Care FSA Program, if the election change is on account of and corresponds with a change in status that affects expenses described in Code Section 129 (including employment-related expenses as defined in Code Section 21(b)(2)). A change in status that affects the eligibility under an employer's plan shall include a change in status that results in an increase or decrease in the number of a Participant's family members or Dependents who may benefit from coverage under the plan. 3.6 Automatic Termination of Election. Elections made or deemed to be made under Section 3.3 will automatically terminate on the date on which the Participant (i) terminates employment with the Plan Sponsor, (ii) loses eligibility Page 9 under the terms of a Qualified Benefit Plan, or (iii) elects under Section 3.3 or 3.4 to receive cash in lieu of benefits under the Qualified Benefit Plans, although coverage or benefits under the Medical Plans and/or the Health Care FSA Program may continue if and to the extent provided by such plan or as required by law. Despite any other contrary provision of the Plan, if a Participant's employment with the Plan Sponsor terminates and the Participant returns to employment with the Plan Sponsor within thirty (30) days of such termination and within the same Plan Year of the Participant's date of termination, then the Participant's pre-termination elections under the Plan will be automatically reinstated, and no election changes shall be permitted unless otherwise specified by Section 3.4. If a Participant's employment with the Plan Sponsor terminates and the Participant returns to employment with the Plan Sponsor more than thirty (30) days or more after such termination, but within the same Plan Year of the Participant's date of termination, the Participant may make new elections; however, the Participant's elections for the Health Care FSA Program or Dependent Care FSA Program may not exceed the maximum annual contributions as set forth in Sections 4.3 and 5.3 of this Plan and applicable law. 3.7 Changes by Administrator. If the Administrator determines, at any time, that the Plan may fail to satisfy any nondiscrimination requirements imposed by the Code with respect to benefits provided to highly compensated individuals (as defined in Code Section 105(h)), highly compensated employees (as defined in Code Section 414(q)) or key employees (as defined in Code Section 416(i)(1)), the Administrator will take such action as the Administrator deems appropriate, under rules uniformly applicable to similarly situated Participants, to assure compliance with such requirements. Such action may include, without limitation, a modification of elections by such highly compensated individuals, highly compensated employees or key employees with or without their consent. 3.8 Maximum Contributions. The maximum amount of the contributions under this Plan for any Participant in any Plan Year will be the sum of the Flexible Benefit Contributions (subject to the Maximum Contributions applicable to each of the Flexible Benefits as described in Articles IV and V of this Plan), and the Employee Provided Premiums, as amended from time to time, of the most expensive benefits available to the Participant under each Qualified Benefit Plan for such Plan Year, plus, for Participants in the Plan Sponsor's HSA Program, the Annual Contribution Limit, determined in accordance with Section 3.2 of Appendix A. 3.9 Premium Payments by Employees on FMLA and Uniformed Services Leave of Absence. Any Employee who elects to maintain coverage under Section 2.4 while on an FMLA Leave or while absent from work for more than 31 days for duty in the Uniformed Services must continue to make any required contributions specified in Section 3.3. During such absence, an Employee may choose to make such contributions by (i) remitting payment to the Plan Sponsor on or before each pay period for which the contributions would have been deducted from the Employee's paycheck if leave had not been taken, provided that any delinquent payments must be made within 30 days of their due date, or (ii) at the Employee's written election (on forms furnished by and delivered to the Administrator not less than 30 days prior to prepayment), prepaying the amounts that will become due during such leave out of one or more of the Employee's paychecks preceding such leave. The Plan Sponsor, in its sole discretion, may agree with the Employee to fund the Employee's required contributions under Section 3.3 during the leave of absence, as long as the Employee agrees (on forms furnished by and delivered to the Administrator not less than 30 days prior to commencement of such leave of absence) to commence remitting payment to the Plan Sponsor upon the Employee's return to active employment with the Plan Sponsor following the leave of absence of all amounts paid by the Plan Sponsor on the Employee's behalf to maintain coverage under Section 2.4; provided, however, if an Employee fails to return to active employment with the Plan Sponsor following the leave of absence, then the Employee shall reimburse the Plan Sponsor for such advances made on the Employee's behalf within thirty (30) days following the Plan Sponsor's written demand for such reimbursement. Despite the foregoing, an Employee who is absent from work for any paid leave of absence must continue any and all benefits elected under this Plan (unless the same is prohibited by any insurance policy provision requiring an insured to be actively at work), and Employee contributions for those benefits that the Employee elected under this Plan will continue to be deducted from the Employee's paycheck in such absence. ARTICLE IV Health Care Flexible Spending Program 4.1 Purpose of Health Care FSA Program. The Health Care FSA Program is intended to qualify as a health care reimbursement plan under Code Section 105(b). The purpose of the Health Care FSA Program is to enable Participants to elect to receive payments or reimbursements for Qualifying Medical Care Expenses that are excludable from Participants' gross income under Code Section 105(b). 4.2 Establishment of Accounts. The Plan Sponsor will establish and maintain on its books a Health Care Flexible Page 10 Spending Account for each Plan Year with respect to each Participant who has elected under the Plan to receive reimbursement of Qualifying Medical Care Expenses incurred during the Plan Year. 4.3 Health Care Flexible Spending Account Maximum and Minimum Contribution. (a) Notwithstanding any other provision of the Plan to the contrary, the maximum amount which the Participant may elect to receive under this Plan in the form of payments or reimbursements for Qualifying Medical Care Expenses incurred in any Plan Year is the statutory amount under Section 125(i)(2) of the Code in effect on January 1st of the same calendar year in which the Plan Year begins, as indexed for cost of living increases for any Plan Year beginning with or within such calendar year. (b) Carryover. Notwithstanding any other provision of the Plan to the contrary, a Participant may carry over an amount not to exceed twenty percent (20%) of the of the indexed maximum amount permitted under Section 125(i) of the Code which is unused as of the end of the Plan Year to pay or reimburse Qualifying Medical Care Expenses incurred during the next Plan Year . For purposes of the carryover, the following applies: (i) The amount remaining unused after the Plan Year is the amount remaining after Qualifying Medical Care Expenses are reimbursed at the end of the deadline for seeking reimbursement for the Plan Year. (ii) Any amount carried over will not count towards the maximum limit on annual salary reductions for Qualifying Medical Care Expenses. (iii) Qualifying Medical Expenses incurred during the Plan Year will be reimbursed from the Participant's unused balance for the current Plan Year, and then from any unused amounts carried over from the prior Plan Year. 4.4 Crediting of Accounts. As of the first day of each Plan Year, there will be credited to a Participant's Health Care Flexible Spending Account the full amount of the contributions, if any, to be made to such account for the Plan Year in accordance with the Participant's elections and compensation reduction agreement under the Plan. All amounts credited to each such Health Care Flexible Spending Account will be the property of the Plan Sponsor until paid out pursuant to Section 4.8. 4.5 Debiting of Accounts. A Participant's Health Care Flexible Spending Account for each Plan Year will be debited from time to time, but not below zero, in the amount of any payment under Section 4.8 to or for the benefit of the Participant for Qualifying Medical Care Expenses incurred during such Plan Year. As set forth in Section 10.10, the Administrator has, in its discretion, established a debit card or reimbursement program for purposes of tracking debits from a Participant's Health Care Flexible Spending Account. 4.6 Forfeiture of Accounts. The amount credited to a Participant's Health Care Flexible Spending Account for any Plan Year will be used only to reimburse the Participant for Qualifying Medical Care Expenses incurred during such Plan Yearexcept that if the Participant carries over unused funds pursuant to Section 4.3 of this Plan, such funds may be used to reimburse Qualifying Medical Care Expenses in the next Plan Year. A Participant must apply for reimbursement on or before 60 days immediately following the end of the Plan Year. Any balance remaining in a Participant's Health Care Flexible Spending Account at the end of the Plan Year, after payment of all reimbursements under this Health Care FSA Program, will remain the property of the Plan Sponsor, and the Participant will forfeit all rights with respect to such balance, except that if a Participant carries over unused funds pursuant to Section 4.3(c) of this Plan, such funds may be used to reimburse Qualifying Medical Plan Expenses in the next Plan Year. 4.7 Claims for Reimbursement. A Participant who has elected to receive medical care reimbursements for the applicable Plan Year may apply for reimbursement of Qualifying Medical Care Expenses incurred by the Participant during the Plan Year by submitting an application in writing to the Plan Sponsor, on forms furnished by and delivered to the Plan Sponsor, setting forth: (a) the amount, date and nature of the expense with respect to which benefit is requested; (b) the name of the person, organization or entity to which the expense was or is to be paid; (c) the name of the person for whom the expense was incurred and, if such person is not the Participant requesting the benefit, the relationship of such person to the Participant; and (d) the amount recovered or expected to be recovered under any insurance arrangement or other plan with respect to the expense. Page 11 Such application must be submitted no later than 60 days immediately following the close of the Plan Year and must be accompanied by invoices, receipts, cancelled checks or other statements showing the amounts of such expenses, together with any additional documentation which the Administrator may reasonably request, except that such application must be submitted no later than 30 days immediately following the Participant's last day of employment. Despite any provision of this Section 4.7 to the contrary, if the Administrator hires a third-party administrator to process reimbursement claims under the Health Care FSA Program, including, without limitation, the administration of a debit card program established by the Administrator, then a Participant must apply for reimbursements in accordance with the policies and procedures established by such third-party administrator in order to receive reimbursements for Qualifying Medical Care Expenses. 4.8 Disbursement or Payment of Expenses. The Plan Sponsor, or the Plan's third-party administrator (if applicable), will reimburse the Participant from the Participant's Health Care Flexible Spending Account for Qualifying Medical Care Expenses incurred during the Plan Year for which the Participant submits for reimbursement in accordance with Section 4.7. The Plan Sponsor, or the Plan's third-party administrator (if applicable), may, at its option, pay any such Qualifying Medical Care Expenses directly to the person providing or supplying medical care through a debit card program or otherwise in lieu of reimbursing the Participant. Expenses are incurred at the point in time when the care giving rise to the Qualifying Medical Expense is provided to, or received by, an individual, not the date an individual is required to pay for such medical care or is billed after the receipt of medical care. 4.9 Limits on Reimbursements. Despite any other provision of the Health Care FSA Program to the contrary, no amount will be reimbursed under this Health Care FSA Program if such amount is payable or reimbursable under any other plan or policy of insurance. ARTICLE V Dependent Care Assistance Program 5.1 Purpose of Dependent Care FSA Program. This Dependent Care FSA Program is intended to qualify as a dependent care assistance plan under Code Section 129. The purpose of the Dependent Care FSA Program is to enable Participants to elect to receive payments or reimbursements for their Dependent Care Expenses that are excludable from the Participants' gross income under Code Section 129. 5.2 Establishment of Accounts. The Plan Sponsor will establish and maintain on its books a Dependent Care Assistance Account for each Plan Year with respect to each Participant who has elected to receive dependent care assistance for the Plan Year. 5.3 Maximum and Minimum Contribution. Notwithstanding any other provision of the Plan to the contrary, the maximum amount which the Participant may receive in any taxable year in the form of payments or reimbursements for Dependent Care Expenses will be the lesser of (i) the Participant's earned income for the taxable year (after all reductions in compensation including the reduction related to dependent care assistance), or (ii) the actual or deemed earned income of the Participant's spouse for the taxable year, or (iii) $2,500 if married and filing separate returns, or (iv) $5,000 if single, or married and filing joint returns. In the case of a spouse who is a full-time student at an educational institution or is physically or mentally incapable of caring for himself, such spouse will be deemed to have earned income of not less than $250 per month if the Participant has one Dependent and $500 per month if the Participant has two or more Dependents. 5.4 Crediting of Accounts. There will be credited to a Participant's Dependent Care Assistance Account for each Plan Year an amount equal to the contributions, if any, to be made to such account for the Plan Year in accordance with the Participant's election and compensation reduction agreement under the Dependent Care FSA Program. All amounts credited to each such Dependent Care Assistance Account will be the property of the Plan Sponsor until paid out pursuant to Section 5.8. 5.5 Debiting of Accounts. A Participant's Dependent Care Assistance Account for each Plan Year will be debited from time to time in the amount of any payment under Section 5.8 to or for the benefit of the Participant for Dependent Care Expenses incurred during such Plan Year. 5.6 Forfeiture of Accounts. The amount credited to a Participant's Dependent Care Assistance Account for any Plan Year will be used only to reimburse the Participant for Dependent Care Expenses incurred during such Plan Year, and Page 12 only if the Participant applies for reimbursement on or before 60 days immediately following the end of the Plan Year. Any balance remaining in a Participant's Dependent Care Assistance Account at the end of the Plan Year, after payment of all reimbursements under this Plan, will remain the property of the Plan Sponsor, and the Participant will forfeit all rights with respect to such balance. 5.7 Claims for Reimbursement. A Participant who has elected to receive dependent care assistance for a Plan Year may apply to the Plan Sponsor for reimbursement of Dependent Care Expenses which the Participant incurs during the Plan Year by submitting an application in writing to the Plan Sponsor on such forms as the Plan Sponsor may prescribe, setting forth (a) the amount, date and nature of the expense with respect to which benefit is requested, (b) the name of the person, organization or entity to which the expense was or is to be paid, and (c) such other information as the Plan Sponsor may from time to time require. Such application must be submitted no later than 60 days immediately following the close of the Plan Year and must be accompanied by invoices, receipts, cancelled checks or other statements showing the amounts of such expenses, together with any additional documentation which the Administrator may reasonably request, except that such application must be submitted no later than 30 days immediately following the Participant's last day of employment. Despite any provision of this Section 5.7 to the contrary, if the Administrator hires a third-party administrator to process reimbursement claims under the Plan, then a Participant must apply for reimbursements in accordance with the policies and procedures established by such third-party administrator in order to receive reimbursements for Dependent Care Expenses. 5.8 Reimbursement or Payment of Expenses. The Plan Sponsor, or the Plan's third-party administrator (if applicable), will reimburse the Participant from the Participant's Dependent Care Assistance Account for Dependent Care Expenses incurred during the Plan Year for which the Participant submits documentation in accordance with Section 5.7. The Plan Sponsor, or the Plan's third-party administrator (if applicable), may, at its option, pay any such Dependent Care Expenses directly to the Dependent Care Service Provider in lieu of reimbursing the Participant. No reimbursement or payment under this Section 5.8 of expenses incurred during a Plan Year will at any time exceed the balance of the Participant's Dependent Care Assistance Account for the Plan Year at the time of the reimbursement or payment. 5.9 Report to Participants. On or before January 31 following each calendar year, the Administrator will furnish to each Participant who has received dependent care assistance during the previous calendar year a written statement showing the amount of such assistance paid during such year with respect to the Participant. ARTICLE VI Termination of Participation If a Participant ceases to be a Participant for any reason, any election to receive reimbursements for Qualifying Medical Care Expenses and/or Dependent Care Expenses, and any related elections and compensation reduction agreements made under the Plan will terminate. The Participant or his or her personal representative will be entitled to reimbursement only for Qualifying Medical Care Expenses and/or Dependent Care Expenses, as applicable, incurred within the Plan Year in which termination occurs and prior to the date participation is terminated, and only if the Participant or his or her personal representative applies for such reimbursement in a manner consistent with the provisions of Section 4.7 or 5.7, as applicable. No such reimbursement will exceed the remaining balance, if any, in the Participant's Health Care Flexible Spending Account and/or Dependent Care Assistance Account for the Plan Year in which the expenses were incurred. ARTICLE VII Administration 7.1 Plan Administration. The administration of the Plan will be under the supervision of the Administrator. It will be a duty of the Administrator to ensure that the Plan is carried out, in accordance with its terms and in a nondiscriminatory manner, for the exclusive benefit of Participants and their beneficiaries. The Administrator will have the power to administer the Plan, subject to applicable requirements of law. The Administrator's powers include, but are not limited to, discretionary authority to: (a) make and enforce such rules and regulations as the Administrator deems necessary or appropriate for the efficient administration of the Plan; Page 13 (b) interpret the Plan (such interpretation will be final, binding and conclusive with respect to all claims arising under this Plan); (c) decide all questions concerning the eligibility of any person to participate in and to receive benefits under the Plan, and to make all factual determinations; (d) provide Employees with a reasonable and timely notification of benefit options available under the Plan; (e) authorize the payment of benefits, which will be paid only if the Administrator decides in its sole discretion that the Participant or applicant is entitled to them; and (f) appoint such agents, counsel, accountants, consultants, and actuaries as may be required to assist in administering the Plan. 7.2 Payment of Expenses. Administrative expenses will be paid by the Plan Sponsor unless the Plan Sponsor determines that administrative costs will be borne by the Participants under the Plan. The Administrator may impose reasonable conditions for payments, provided that such conditions do not discriminate in favor of Participants who are highly compensated employees or key employees. 7.3 Examination of Records. The Administrator will make available to each Participant his or her records under this Plan for examination at reasonable times during normal business hours. 7.4 Reliance on Tables, Etc. In administering the Plan, the Administrator will be entitled to rely conclusively on all tables, valuations, certificates, opinions and reports furnished by, or in accordance with the instructions of, any insurer, or by accountants, counsel or other experts employed or engaged by the Administrator. 7.5 Indemnification of Administrator. The Plan Sponsor agrees to indemnify, hold harmless and defend any Employee serving as the Administrator or as a member of a committee designated as the Administrator (including any Employee or former Employee who previously served as the Administrator or as a member of such committee) against all liabilities, damages, costs and expenses (including attorney's fees and amounts paid in settlement of any claims approved by the Plan Sponsor) occasioned by any act or omission to act in connection with the Plan, if such act or omission is in good faith. 7.6 Insurance Contracts Control. Despite any other provision of this Plan, if the terms of this Plan and the terms of an insurance contract which funds a Qualified Benefit Plan (as applicable) conflict, the terms of such insurance contract will control unless contrary to law. 7.7 Named Fiduciary. The Administrator will be a "named fiduciary" for purposes of Section 402(a)(1) of ERISA with authority to control and manage the operation and administration of the Plan, and will be responsible for complying with all of the reporting and disclosure requirements of Part 1 of Subtitle B of Title I of ERISA. 7.8 COBRA Compliance. Unless otherwise required under the Code or the regulations promulgated thereunder, notwithstanding the provisions of Article VII, if a Participant or Qualified Beneficiary experiences a Qualifying Event, then, at the Participant's and/or Qualified Beneficiary's election, coverage under the Health Care FSA Program will continue until the end of the Plan Year in which the Qualifying Event occurs by paying to the Administrator, on an after-tax basis, 102% of the monthly amount of the Participant's compensation reduction election under Section 4.3 that is applicable to the Health Care FSA Program. 7.9 HIPAA Privacy and Security Provisions. With respect to the Health Care FSA Program, the following provisions shall apply. (a) The Plan Sponsor may only use and/or disclose Protected Health Information (as such term is defined in 45 C.F.R. §160.103) as permitted by the "Standards for Privacy of Individually Identifiable Health Information" under the Health Insurance Portability and Accountability Act of 1996, P.L.104-191, as amended by the Health Information Technology for Economic and Clinical Health Act ("HITECH Act") portion of the American Recovery and Reinvestment Act of 2009, and applicable guidance (the "Privacy Rule"). (b) The Plan will disclose Protected Health Information to the Plan Sponsor only upon its receipt of a certification by the Plan Sponsor that the Plan Sponsor agrees to: Not use or further disclose the information other than as permitted or required by the Plan documents or as required by law; Page 14 Ensure that any agents, including subcontractors, to whom it provides Protected Health Information and electronic Protected Health Information received from the Plan agree to the same restrictions and conditions that apply to the Plan Sponsor with respect to such information; Not use or disclose the Protected Health Information for employment-related actions and decisions or in connection with any other benefit or employee benefit plan of the Plan Sponsor; Report to the Plan any use or disclosure of the Protected Health Information that is inconsistent with the uses or disclosures permitted by the Privacy Rule of which it becomes aware; Make available Protected Health Information based on HIPAA's access requirements in accordance with 45 C.F.R. §164.524; Make available Protected Health Information for amendment and incorporate any amendments to Protected Health Information in accordance with 45 C.F.R. §164.526; Make available the information required to provide an accounting of disclosures in accordance with 45 C.F.R. §164.528, including an accounting of disclosures of any electronic health record (as defined in HIPAA); Make its internal practices, books, and records relating to the use and disclosure of Protected Health Information received from the Plan available to the Secretary of Health and Human Services for purposes of determining compliance by the Plan with the Privacy Rule; If feasible, return or destroy all Protected Health Information received from the Plan that the Plan Sponsor still maintains in any form and retain no copies of such information when no longer needed for the purpose for which disclosure was made, except that, if such return or destruction is not feasible, limit further uses and disclosures to those purposes that make the return or destruction of the information infeasible; and Ensure that adequate separation of the Plan and the Plan Sponsor is established as required by 45 C.F.R. 164.504(f)(2)(iii) as described below. (c) Certification of the Plan Sponsor The Plan (or a health insurance issuer or HMO with respect to the Plan, if applicable) will disclose Protected Health Information to the Plan Sponsor only upon the receipt of a certification by the Plan Sponsor that the Plan has been amended to incorporate the provisions of 45 C.F.R. §164.504(f)(2)(ii), and that the Plan Sponsor agrees to the conditions of disclosure set forth in Section 7.9(a)and (b). The Plan will not disclose and may not permit a health insurance issuer or HMO to disclose Protected Health Information to the Plan Sponsor as otherwise permitted herein unless the statement required by 45 C.F.R. §164.520(b)(1)(iii)(C) is included in the appropriate notice. The Plan Sponsor hereby certifies that this Section 7.9 constitutes an amendment of the governing Plan documents that complies with HIPAA and that the Plan Sponsor will comply with the conditions of disclosure set forth herein. (d) Separation of Plan and the Plan Sponsor (i) Only designated employees in the Jan Lytle department(s) or position(s), as applicable, of the Plan Sponsor ("Permitted Employees") will be given access to the Protected Health Information. Despite the foregoing, any employee or person not described above who receives Protected Health Information relating to payments under, health care operations of, or other matters pertaining to the Plan in the ordinary course of business, will also be included in the definition above of Permitted Employees. (ii) The Permitted Employees may only use the Protected Health Information for Plan administrative functions that the Plan Sponsor performs for the Plan. (e) Security of Electronic Protected Health Information In accordance with 45 C.F.R. §164.314(b)(2), to the extent as may be required by law, the Plan Sponsor agrees to: (i) Implement administrative, physical, and technical safeguards that reasonably and appropriately protect the confidentiality, integrity, and availability of the electronic Protected Health Information that the Plan Sponsor may create, receive, maintain, or transmit on behalf of the Plan; (ii) Ensure that the adequate separation required by 45 C.F.R. §164.504(f)(2)(iii) is supported by reasonable and appropriate security measures; (iii) Ensure that any agents, including subcontractors, to whom it provides electronic Protected Health Information agrees to implement reasonable and appropriate security measures to protect the information; Page 15 and (iv) Report to the Plan any security incident of which it becomes aware with respect to electronic Protected Health Information. ARTICLE VIII Amendment and Termination 8.1 Amendment of Plan. The Plan Sponsor reserves the right to amend this Plan at any time without the consent of any Employee or Participant. 8.2 Termination of Plan. It is the expectation of the Plan Sponsor that it will continue this Plan indefinitely, but the continuance of this Plan is not assumed as a contractual obligation of the Plan Sponsor, and the right is reserved to the Plan Sponsor at any time to terminate this Plan without liability. Upon termination of the Plan, all elections and reductions in Compensation relating to the Plan will terminate. 8.3 Legal Enforceability of Provisions. The Plan and the provisions hereof constitute a legally enforceable agreement between the Plan Sponsor and a Participant. ARTICLE IX Claims Provisions 9.1 General Claims Procedures. Any claim made in connection with a Qualified Benefit Plan, other than the Health Care FSA Program or Dependent Care FSA Program will be subject to review under such Qualified Benefit Plan, and will not be subject to review under this Article IX. The following procedures set forth in this Section 9.1 will govern the processing of claims under the Dependent Care FSA Program, provided, however, to the extent that these procedures are inconsistent with the claims procedures in effect with any third-party administrator hired by the Administrator to assist with processing claims under the Dependent Care FSA Program, the third-party administrator's claims procedures will supersede these procedures as long as such other claims procedures comply with applicable law. The Administrator's refusal to make payment for or debit a Participant's Dependent Care Assistance Account for Dependent Care Expenses through a debit card program, if any, established by the Administrator for such purpose shall be a denial of a claim. (a) Claims Procedure. If any claim made under the Dependent Care FSA Program are wholly or partially denied, the Administrator will notify the person making such claim (the "claimant") of his or her decision in writing. Such notification will be written in a manner calculated to be understood by the claimant and will contain (i) specific reasons for the denial, (ii) specific reference to pertinent Plan provisions, (iii) a description of any additional material or information necessary to perfect the claim and an explanation of why such material or information is necessary and (iv) information as to the steps to be taken if the claimant wishes to submit a request for review, including a statement that the claimant may bring a civil action after an adverse benefit determination on review. Such notification will be given within 90 days after the claim is received by the Administrator (or within 180 days, if special circumstances require an extension and if written notice of such extension is given to the claimant within the initial 90-day period). If such notification is not given within such period, the claim will be considered denied as of the last day of such period and the claimant may request review thereof. (b) Review Procedure. Within 60 days after the date on which the claimant receives a written notice of a denied claim (or, if applicable, within 60 days after the date on which such denial is considered to have occurred) the claimant may (i) file a written request with the Administrator for a review of the denied claim and (ii) submit written comments to the Administrator. The Administrator will notify the claimant of his or her decision in writing. Such notification will be written in a manner calculated to be understood by the claimant and will contain specific reasons for the decision as well as specific references to pertinent Plan provisions. In addition, such notification will include a statement that, upon request and free of charge, the claimant shall be entitled to receive reasonable access to, and copies of, all documents, records, and other information relevant to the claimant's claim for benefits, and a statement that the claimant may bring a civil action after an adverse benefit determination on review. The decision on review will be made within 60 days after the request for review is received by the Administrator (or within 120 days, if special circumstances require an extension of time for processing the request, such as an election by the Administrator to hold a hearing, and if written notice of such extension and circumstances is given to the claimant within the initial 60-day period). If the decision on review is not made Page 16 within such period, the claim will be considered denied. 9.2 Health Claim Procedures. The following procedures set forth in this Section 9.2 will govern the processing of claims under the Health Care FSA Program, provided, however, to the extent that these procedures are inconsistent with the claims procedures in effect with any third-party administrator hired by the Administrator to assist with processing claims under the Health Care FSA Program, the third-party administrator's claims procedures will supersede these procedures as long as such other claims procedures comply with applicable law and regulations. The Administrator's refusal to make payment for or debit a Participant's Health Care Flexible Spending Account for a Qualifying Medical Care Expense through a debit card program established by the Administrator, if any, for such purpose shall be a denial of a claim. (a) Incomplete Benefit Claims. If a Pre-Service Claim (or Urgent Care Claim) does not include substantially all of the information required in Section 4.7, the Administrator shall notify the Claimant of the informational or procedural deficiency and how it may be cured within five days (or within 24 hours, in the case of an Urgent Care Claim). (b) Notifications of Decisions on Benefit Claims. (i) Urgent Care Claims. Urgent Care Claims are those claims that require notification or approval prior to receiving medical care, where a delay in treatment could seriously jeopardize your life or health or the ability to regain maximum function or, in the opinion of a doctor with knowledge of your health condition, could cause severe pain. In these situations: You will receive notice of the benefit determination in writing or electronically within 72 hours after the Plan Administrator receives all necessary information, taking into account the seriousness of your condition. Notice of denial may be oral with a written or electronic confirmation to follow within 3 days. If you file an Urgent Care Claim improperly, the Plan Administrator will notify you of the improper filing and how to correct it within 24 hours after the Urgent Care Claim is received. If additional information is needed to process the claim, the Plan Administrator will notify you of the information needed within 24 hours after the claim was received. You then have 48 hours to provide the requested information. You will be notified of a determination no later than 48 hours after: The Plan Administrator's receipt of the requested information; or The end of the 48-hour period within which you were to provide the additional information. (ii) Pre-Service Claims. Pre-Service Claims are those claims that require notification or approval prior to receiving health care. If your claim is a Pre-Service Claim, and it is submitted improperly, the Plan Administrator will notify you of the improper filing and how to correct it within 5 days. If your Pre-Service Claim is submitted properly with all needed information, you will receive written notice of the claim decision from the Plan Administrator within 15 days of receipt of the claim. The Plan Administrator will notify you within this 15-day period if additional information is needed to process the claim, and may request a one-time extension not longer than 15 days and hold your claim until all information is received. Once notified of the extension, you then have 45 days to provide this information. If all of the needed information is received within the 45-day time frame, the Plan Administrator will notify you of the determination within 15 days after the information is received. If you don't provide the needed information within the 45-day period, your claim will be denied. (iii) Concurrent Care Claims. If an on-going course of treatment was previously approved for a specific period of time or number of treatments, and your request to extend the treatment is an Urgent Care Claim as defined above, your request will be decided within 24 hours, provided your request is made at least 24 hours prior to the end of the approved treatment. The claims administrator will make a determination on your request for the extended treatment within 24 hours from receipt of your request. If your request for extended treatment is not made at least 24 hours prior to the end of the approved treatment, the request will be treated as an Urgent Care Claim and decided according to the timeframes described above. If an ongoing course of treatment was previously approved for a specific period of time or number of treatments, and you request to extend treatment in a non-urgent circumstance, your request will be considered a new claim and decided according to post-service or pre-service timeframes, whichever applies. Page 17 (iv) Post-Service Claims. Post-Service Claims are those claims that are filed for payment of benefits after health care has been received. If your Post-Service Claim is denied, you will receive a written notice from the Plan Administrator within 30 days of receipt of the claim, as long as all needed information was provided with the claim. The Plan Administrator will notify you within this 30- day period if additional information is needed to process the claim, and may request a one-time extension not longer than 15 days and hold your claim until all information is received. Once notified of the extension, you then have 45 days to provide this information. If all of the needed information is received within the 45-day time frame and the claim is denied, the Plan Administrator will notify you of the denial within 15 days after the information is received. If you don't provide the needed information within the 45-day period, your claim will be denied. (c) Adverse Benefits Determination Notice. Any notice of the denial of a claim for benefits shall be given the claimant in written form. The notice of denial must include: (i) the specific reason(s) for your adverse benefit determination; (ii) reference to the specific Plan provision on which the determination is based; (iii) a description of any additional material or information necessary for you to fix your claim and an explanation of why such material or information is necessary; (iv) a description of the review procedures, including a statement of your right to bring a lawsuit following an adverse benefit determination on review; (v) either the specific rule or guideline used in making your benefits determination or a statement that such a rule or guideline was relied upon in making the determination and that a copy of such rule or guideline will be provided free of charge upon request; (vi) if the adverse benefit determination is based on a medical judgment, either an explanation of such judgment, or a statement that such explanation will be provided to you free of charge upon request; and (vii) in the case of an Urgent Care Claim, a description of the expedited review process to which you may be entitled. (d) How to Appeal a Claim Decision. If you disagree with a claim determination, you can contact the Plan Administrator in writing to formally request an appeal. If the appeal relates to a claim for payment, your request should include: (i) The patient's name; (ii) The date(s) of health care service(s). (iii) The provider's name. (iv) The reason you believe the claim should be paid. (v) Any documentation or other written information to support your request for claim payment. Your first appeal request must be submitted to the Plan Administrator within 180 days after you receive the claim denial. (e) Decision on Appeal of Disputed Claims. (i) Upon its receipt of a notice for a request for a review, the Administrator shall make a prompt decision on the review. The individual who conducts the review shall not be the same individual who made the initial adverse benefit determination. If the adverse benefit determination is appealed on the basis of a medical judgment, the Administrator shall consult with an independent health care professional who is qualified in the areas of dispute who shall not have been involved in the initial claim denial. (ii) Appeals of adverse benefit determinations shall be decided, and notice of the decision on appeal shall be given to the claimant, according to the following timetable: (A) Urgent Care Claims. An appeal of an adverse benefit determination involving an Urgent Care Claim shall be decided and notice issued to the claimant as soon as possible, but in no event later than 72 hours, after the Administrator has received the request for the review on appeal. Page 18 (B) Pre-Service Claims. An appeal of an adverse benefit determination of a Pre-Service Claim shall be decided and notice issued to the claimant within a reasonable period, but not more than 30 days, after the Administrator has received the request for the review on appeal. (C) Post-Service Claims. An appeal of an adverse benefit determination of a Post-Service Claim shall be decided and notice issued to the claimant within a reasonable period, but not more than 60 days, after the Administrator has received the request for the review on appeal. (D) Concurrent Care Claims. An appeal of an adverse benefit determination involving concurrent care by a claimant shall be decided and notice issued to the claimant as soon as possible, but in no event later than 72 hours after the Administrator has received the request for the review on appeal if the claim involves Urgent Care, 30 days in the case of a Pre-Service Claim, or 60 days in the case of a Post-Service Claim. (f) Contents of Notice of Decision on Appeal. The Administrator shall provide the claimant with written notice of the Administrator's benefit determination on review in accordance with the applicable time frames set out in Section 9.2(e). In the case of an adverse benefit determination, the notice shall set forth, in a manner calculated to be understood by the Claimant: (i) the specific reason or reasons for the adverse determination; (ii) reference to the specific Plan provisions on which the benefit determination is based; (iii) a statement that the claimant is entitled to receive, without charge, reasonable access to any document (A) relied on in making the determination, (B) submitted, considered or generated in the course of making the benefit determination, (C) that demonstrates compliance with the administrative processes and safeguards required in making the determination, or (D) that constitutes a statement of policy or guidance with respect to this Plan concerning the denied treatment without regard to whether the statement was relied on; (iv) if the adverse determination is based on medical necessity or experimental treatment or a similar exclusion or limit, either an explanation of the scientific or clinical judgment applying the terms of this Plan to the claimant's medical condition, or a statement that such explanation will be provided without charge on request; (v) a statement describing the Plan's optional appeals procedures, and the claimant's right to receive information about the procedures as well as the claimant's right to bring a civil action under ERISA § 502(a); and (vi) the following statement: "You and your Plan may have other voluntary alternative dispute resolution options, such as mediation. One way to find out what may be available is to contact your local U.S. Department of Labor Office and your State insurance regulatory agency." 9.3 Preservation of Other Remedies. After exhaustion of the claims procedures provided under this Article IX, nothing shall prevent any person from pursuing any other legal or equitable remedy otherwise available. ARTICLE X Miscellaneous 10.1 Communication to Employees. Promptly after the Plan is made effective, the Plan Sponsor will notify all Employees of its availability and terms. The Plan Sponsor will notify each new Employee of the availability and terms of the Plan as soon as practicable following the date the Employee commences his or her employment with the Plan Sponsor. Within a reasonable period of time prior to the commencement of each Plan Year, or, in the case of a newly eligible Employee, as soon as practicable following the date on which he or she commences his or her employment with the Plan Sponsor, the Plan Sponsor will provide to Employees (i) booklets, brochures, or other explanatory items which describe the material provisions of the Plan (to the extent the same have not been previously furnished), including benefits, enrollment procedures, timing of elections and the consequences of failing to make a timely election and (ii) such enrollment forms and salary reduction agreements as may be required to make, change or revoke elections under this Plan. 10.2 Participant's Rights. This Plan will not be deemed to constitute an employment contract between the Plan Sponsor Page 19 and any Participant or to be in consideration of or an inducement for the employment of any Participant or Employee. Nothing contained in this Plan will be deemed to give any Participant or Employee the right to be retained in the service of the Plan Sponsor or to interfere with the right of the Plan Sponsor to discharge any Participant or Employee at any time regardless of the effect which such discharge will have upon him as a Participant in this Plan. 10.3 Protective Clauses. (a) If a Participant fails to obtain coverage under any insured Qualified Benefit Plan (whether as a result of the negligence or gross neglect of the Plan Sponsor or otherwise), such Participant's sole and exclusive remedy will be the return of the amount of the Employee Provided Premiums actually paid by such Participant in the Plan Year(s) for which coverage was not obtained. (b) If and to the extent payments or reimbursements due under an insured Qualified Benefit Plan are required to be paid to the Plan Sponsor, as agent for a Participant or the spouse, Dependent or other beneficiary of such Participant or otherwise, the Plan Sponsor's liability for any claim brought by a Participant or by the spouse, Dependent or other beneficiary of a Participant with respect to such payment or reimbursements will be limited to the amount of the payments or reimbursements, if any, actually received by the Plan Sponsor thereunder in connection with such claim. If payments or reimbursements under an insured Qualified Benefit Plan are not timely received by the Plan Sponsor following the submission of a claim, the Plan Sponsor will so notify the Participant. Thereafter, the Plan Sponsor will have no obligation to pursue such claim, and the Participant may pursue, settle or compromise such claim as the Participant, in the sole exercise of his or her discretion, sees fit. (c) The Plan Sponsor will not be responsible for the validity of any insurance contract which funds an insured Qualified Benefit Plan or for the failure of an insurer to make payments provided for thereunder, or for the action of any person which may cause any such insurance contract to be rendered null and void or unenforceable, in whole or in part. (d) Once coverage under an insured Qualified Benefit Plan is applied for and obtained, the Plan Sponsor will not be liable for any loss which may result from the failure to pay premiums to the extent premium notices are not received by the Plan Sponsor. Where premium notices are timely received by the Plan Sponsor, the Plan Sponsor's liability for the payment of premiums corresponding to such notices will be limited to the dollar amount of such premiums and will not include liability for any other loss which may result from the failure to pay such premiums. (e) The Plan Sponsor will not be liable for the payment of any premium due under a Qualified Benefit Plan or any loss which may result from the failure to pay such premium if the amounts deferred under Section 3.3 are insufficient to provide for the payment of the Employee Provided Premium of a Qualified Benefit Plan at the time such premium is due. The Plan Sponsor will notify a Participant if such amounts are insufficient to pay such premiums but will not be liable for any failure to make such notification. Such premiums may be paid (i) if permitted under Code Section 125, pursuant to an amendment to a Participant's agreement to defer a portion of his or her Compensation under Section 3.3 or (ii) otherwise, by a cash contribution of the Participant. 10.4 No Guarantee of Tax Consequences. Neither the Administrator nor the Plan Sponsor makes any representation or warranty that any amount paid as premiums or distributed as benefits under any Qualified Benefit Plan will be excludable from the gross income of a Participant for federal or state income tax purposes. It will be the obligation of each Participant to determine whether payments are excludable from the Participant's gross income for federal and state income tax purposes. 10.5 Indemnification of the Plan Sponsor by Participants. If any Participant receives payments or reimbursements which do not qualify for exclusion from gross income, such Participant will indemnify and reimburse the Plan Sponsor for any liability it may incur for failure to withhold federal or state tax from such payments or reimbursements, provided however that such indemnification and reimbursement will not exceed the amount of additional federal and state tax (together with any interest and penalties) that the Participant would have owed if the payments or reimbursements had been made to the Participant as regular cash compensation, less any such additional tax actually paid by the Participant. 10.6 Nonassignability of Rights. The right of any Participant to receive any amount under the Plan will not be alienable by the Participant by assignment or any other method, and will not be subject to the rights of creditors, and any attempt to cause such right to be so subjected will not be recognized, except to such extent as may be required by law. Page 20 10.7 Limitation of Rights. Neither the establishment of the Plan nor any amendment thereof, nor the payment of any benefits under this Plan, will be construed as giving to any Participant or other person any legal or equitable right against the Plan Sponsor or Administrator, except as provided herein. 10.8 Governing Law. This Plan will be construed, administered and enforced according to the laws of State of Illinois and the provisions of the Code and any other applicable federal law. 10.9 Funding. Unless otherwise required by law, (i) contributions to the Plan will be deemed general assets of the Plan Sponsor until the amount thereof has been paid over to or under a Qualified Benefit Plan and (ii) nothing herein contained will be construed to require the Plan Sponsor or the Administrator to maintain any fund or segregate any amount, in trust or otherwise, for the benefit of any Participant, and no Participant or other person will have any claim against, right to, or security or other interest in, any asset of the Plan Sponsor from which any payment under the Plan may be made. 10.10 Debit Card or Other Stored Value Cards. The Plan Administrator has established a debit card or other stored value card program ("debit card") for the reimbursement of Qualifying Medical Care Expenses which provides for reimbursement by paying a provider directly for a Participant's Qualifying Medical Care Expenses with a debit card provided by the Plan Administrator, or if applicable, a third-party administrator designated by the Plan Administrator from time to time. The debit card will be funded on a Participant's effective date of participation during the Plan Year in the amount elected by the Participant, and the account balance will be reduced in amounts equal to reimbursed Qualifying Medical Care Expenses, respectively. Except as otherwise provided herein, if a provider does not accept payment with a debit card or the debit card is used for items sold, or services provided, by a provider or merchant not approved by the Plan Administrator pursuant to applicable IRS guidance, then a Participant shall generally make a claim for Plan benefits by filing a written request with the Plan Administrator upon a form furnished by the Administrator for such purpose pursuant to Sections 4.7 and 5.7, as applicable. In any case, subject to the following provisions, reimbursement will generally be made within thirty (30) days after the claim has been filed and approved for payment by the Administrator. (a) The Participant must certify upon enrollment, and at each annual enrollment thereafter, that (i) any debit card provided to the Participant pursuant to this Plan will be used only for Qualifying Medical Care Expenses for the Participant, and their spouse or Dependents, as applicable, (ii) any Qualifying Medical Care Expenses for which the debit card is used have not been reimbursed in any other manner, (iii) the Participant will not seek reimbursement under any other plan, (iv) he or she understands that such certification is reaffirmed each time the card is used, and (v) he or she will retain sufficient documentation for any Qualifying Medical Care Expenses paid with the card, including invoices, receipts, bills, or other similar statements that show the date the sale or service was rendered, a description of the item sold or service rendered, and the amount of the item or service as such may be required. (b) Upon a Participant's termination from the Plan the Participant's debit card service will be deactivated. At such time the Participant must submit any remaining claims, as applicable, for Qualifying Medical Care Expenses using one of the other methods for submitting claims provided for in this Plan. (c) The Plan Administrator reserves the right to recover payments for claims paid using a debit card that is subsequently determined to not qualify as a Qualifying Health Care Expense, or claims paid using a debit card that are not substantiated. Failure to substantiate a claim will result in the deactivation of the debit card, and may result in taxable income to a Participant if not corrected using one of the methods described in this Section 9.10. The Plan Administrator may use one or more of the below correction methods to make the Plan whole: (i) Demand a Participant repay the improper amount; (ii) Withhold the improper payment from a Participant's wages or other compensation to the extent permissible under applicable state and federal law; or (iii) Offset the improper payment against a Participant's future claims. 10.11 Effect of Mistake. In the event of a mistake as to the eligibility or participation of an Employee, the allocations made to the account of any Participant, or the amount of benefits paid or to be paid to a Participant or other person, the Administrator shall, to the extent that it deems administratively possible and otherwise permissible under Code Section 125 or the regulations issues thereunder, cause to be allocated or cause to withheld or accelerated, or otherwise make adjustment of, such amounts as it will in its judgment accord to such Participant or other person the credits to the Page 21 account or distributions to which he or she is properly entitled under the Plan. Such action by the Administrator may include withholding of any amounts due to the Plan or the Employer from Compensation paid by the Employer. 10.12 Right to Offset Future Payments. In the event a reimbursement or the amount of a reimbursement is made erroneously to an individual, the Plan shall have the right to reduce future reimbursements to or on behalf of such individual by the amount of the erroneous or excess reimbursement. This right to offset shall not limit the right of the Plan to recover an erroneous or excess reimbursement in any other or correction methods permitted under applicable IRS guidance. 10.13 Right to Recover Payments. Whenever a reimbursement has been made by the Plan, including erroneous reimbursement, in a total amount in excess of the amount that may be reimbursed under the Plan, irrespective of to whom paid, the Plan shall have the right to recover such reimbursements, to the extent of the excess, from the person to or for whom the payment was made using any method permitted under applicable IRS guidance. 10.14 Savings Clause. If a provision of the Plan or the application of a provision of the Plan to any person, entity, or circumstance is held invalid under governing law by a court of competent jurisdiction, the remainder of the Plan and the application of the provision to any other person, entity, or circumstance shall not be affected. 10.15 Forfeitures. As a condition of entitlement to a qualified benefit under this Plan, you and your covered dependents must keep the claims administrator or the Plan Administrator, as applicable, informed of your current mailing address and other relevant contact information. If the Plan is unable to locate any individual otherwise entitled to a benefit payment for any of the qualified benefits hereunder, after exercising reasonable efforts to do so (as determined in the sole discretion of the Plan Administrator), to the extent not otherwise specified in the applicable plan materials for any health and welfare plans for which the individual pays a premium, the individual is not entitled to a qualified benefit hereunder and forfeits any rights to any qualified benefit. In the event that a check issued by a Claims Administrator for a self-insured qualified benefit is not cashed within 12 months from the date of issue, the check will be voided and the check will be applied to the payment of current qualified benefits and administrative fees under the Plan. In the event that a participant or other beneficiary as defined by ERISA does not receive a check that was issued and requests payment within one year of the amounts in the issued check, the Claims Administrator will make payment under the terms and conditions of the Plan as in effect when the claim was originally processed. Unclaimed funds may be applied only to the delivery of benefits (including administrative fees) under the Plan to the extent required by ERISA. The Plan shall have no liability for checks not cashed within one year; the amount of the check will be deemed a forfeiture, and no funds shall escheat to any state. ARTICLE XI Definitions As used herein, unless the context clearly indicates otherwise, the following words and phrases have the meanings herein specified. A pronoun or adjective in the masculine gender includes the feminine and neuter genders, and the singular includes the plural, unless the context clearly indicates a different meaning. 11.1 "Administrator" means the Plan Sponsor or such other person or committee as may be appointed from time to time by the Plan Sponsor to supervise the administration of the Plan. 11.2 "COBRA" means the provisions requiring continuation of employer-sponsored group health coverage as provided under the Consolidated Omnibus Budget Reconciliation Act of 1985. 11.3 "Code" means the Internal Revenue Code of 1986, as amended. 11.4 "Compensation" means the total cash remuneration received by a Participant from the Plan Sponsor or Participating Employer as designated in Schedule B, if any, during a Plan Year prior to any reductions under Section 3.3. Compensation includes overtime, commissions and bonuses. 11.5 "Contract Year" means the 12-month period ending with or within the Plan Year which will be designated by the Administrator for purposes of making or changing benefit elections under this Plan, except as provided in Section 3.3(a) (relating to the election of benefits by a newly eligible Employee). 11.6 "Dependent" means for purposes of the Health Care FSA Program, or other Qualified Benefit Plans which provides accident or health coverage for which a premium is required, a "dependent" is your child (as defined in Code Section 152(f)(1)) who has not attained age 27 by the end of the calendar year, and any individual who is a tax Page 22 dependent of yours as defined in Code Section 152 (determined without regard to Sections 152(b)(1), (b)(2) and (d)(1) (B). For purposes of the HSA Program, a Dependent means any person who falls within the definition of dependent under Code Section 152, without regard to subsections (b)(1), (b)(2), and (d)(1)(B) thereof. Notwithstanding anything in the Plan to the contrary, any pre-tax payments made pursuant to the Plan with respect to a domestic partner and/or the child of a domestic partner who does not qualify as the Employee's Dependent, if any, shall be treated as taxable compensation. This taxable compensation shall be treated as wages reportable on the Employee's Form W-2 and shall be subject to income tax and social security tax withholding. For purposes of the Dependent Care FSA Program, "Dependent" means any individual who is (i) a dependent (as defined under Section 152(a)(1)) of the Participant who is under the age of 13 and with respect to whom the Participant is entitled to an exemption under Code Section 151(c), or (ii) a dependent (as defined under Section 152, determined without regard to subsections (b)(1), (b)(2) and (d)(1)(B) thereof) or spouse of the Participant who is physically or mentally incapable of caring for himself and who has the same principal place of abode as the Participant for more than one-half of the taxable year. 11.7 "Dependent Care Assistance Account" means the account described in Article V. 11.8 "Dependent Care FSA Program" means the dependent care assistance program described in Article V. 11.9 "Dependent Care Expenses" mean expenses incurred by a Participant which (i) are incurred for the care of a Dependent of the Participant or for related household services, (ii) are paid or payable to a Dependent Care Service Provider, and (iii) are incurred to enable the Participant to be gainfully employed for any period for which there are one or more Dependents with respect to the Participant. "Dependent Care Expenses" do not include expenses incurred for services outside the Participant's household for the care of a Dependent unless such Dependent is described in 11.5(i) or regularly spends at least 8 hours each day in the Participant's household. Dependent Care Expenses will be deemed to be incurred at the time the services to which the related expenses are rendered. 11.10 "Dependent Care Service Provider" means a person who provides care or other services described in 11.8(i), but does not include (i) a dependent care center, as defined in Code Section 21(b)(2)(D), unless the requirements of Code Section 21(b)(2)(C) are satisfied, or (ii) a related individual described in Code Section 129(c). 11.11 "Effective Date" means the original effective date of the plan, which is January 1, 2025. 11.12 "Employee" means any individual employed by the Plan Sponsor. However, only those individuals classified as "employees" by the Plan Sponsor shall be eligible to participate, including any leased employees within the meaning of Code Section 414(n)(2). Independent contractors, freelancers and individuals hired through staffing firms shall not be eligible to participate in the Plan even if they are subsequently determined to be common law employees for any purpose, including without limitation, for wage, labor or tax purposes by either the Internal Revenue Service, Department of Labor or any other Federal or state agency, administrative body or court. An employee shall not include any self-employed individual, partner in a partnership, and more-then 2% shareholder in a Subchapter S corporation. 11.13 "Employee Provided Premium" means the sum of (i) that portion of the total premium cost of a Medical Plan and/or any other Qualified Benefit Plan that requires payment of premiums, which is required to be paid by the Employee, either by law or by agreement, and depending on what options exist under such plan (e.g., to the extent applicable, individual or family coverage, high or low deductibles, etc.), as adjusted from time to time to reflect changes, if any, in the percentage of such premiums paid by the Employee and/or changes in the total amount of such premiums, and (ii) a pro rata share of the costs of the administration of the Plan (allocated on a uniform basis) to the extent that the Plan Sponsor determines that such costs will be borne by Participants pursuant to Section 7.2. 11.14 "ERISA" means the Employee Retirement Income Security Act of 1974, as amended from time to time. 11.15 "Flexible Benefit Contributions" means the aggregate of all amounts deferred pursuant to an election made under this Plan to participate in the Health Care FSA Program and/or the Dependent Care FSA Program. 11.16 "FMLA" means the Family and Medical Leave Act of 1993. 11.17 "FMLA Leave" means a leave of absence that the Plan Sponsor is required to extend to an Employee under the provisions of the FMLA. 11.18 "Health Care Flexible Spending Account" means the account described in Article IV. 11.19 "Health Care FSA Program" means the health care flexible spending program described in Article IV. Page 23 11.20 Health Savings Account/HSA means a health savings account within the meaning of Code Section 223. 11.21 Health Savings Account Program/HSA Program is the plan set forth in Appendix A. The HSA Program is established primarily for the purpose of permitting an HSA-Eligible Employee to receive, in lieu of taxable compensation, reimbursement by the HSA of "qualified medical expenses" (as defined in Code Section 223(d)(2)) incurred by the Employee, the Employee's Spouse and/or Dependents. 11.22 High Deductible Health Plan/HDHP means a high deductible health plan offered by the Plan Sponsor that is intended to qualify as a high deductible health plan under Code Section 223(c)(2), as described in materials provided separately by the Plan Sponsor. A High Deductible Health Plan may or may not be the sole medical insurance plan eligible for pre-tax salary reduction funding hereunder. 11.23 HSA-Eligible Employee means an individual who is eligible to contribute to an HSA under Code Section 223 and who has elected qualifying High Deductible Health Plan coverage offered by the Plan Sponsor and who has not elected any disqualifying non-High Deductible Health Plan coverage offered by the Plan Sponsor or any other employer. 11.24 "Medical Plans" means the group health insurance and/or self-funded plans, if any, designated from time to time by the Plan Sponsor, and communicated in writing to Participants, for purposes of providing various benefits under this Plan. 11.25 "Participant" means an Employee who participates in the Plan in accordance with Article II. 11.26 "Plan" means the City of Galesburg Flexible Spending Account as set forth herein, together with all amendments and restatements. 11.27 "Plan Sponsor" means City of Galesburg and any Affiliated Employer who adopts the Plan pursuant to authorization provided by the Plan Sponsor. Notwithstanding the previous sentence when the Plan provides that the Plan Sponsor has a certain power (e.g., the appointment of a third party administrator, entering into a contract with a third party insurer, or amendment or termination of the Plan) the term "Plan Sponsor" shall mean only City of Galesburg. Affiliated Employers who adopt the Plan shall be bound by the Plan as adopted and subsequently amended unless they clearly withdraw from participation herein. Affiliated Employers who have adopted the Plan are set forth in Appendix B. 11.28 "Plan Year" means the twelve-month period ending each December 31st. 11.29 "Post-Service Claim" means any benefit claim that is not a Pre-Service Claim or an Urgent Care Claim. 11.30 "Pre-Service Claim" means any benefit claim with respect to which the terms of this Plan condition receipt of the benefit, in whole or in part, on approval of the benefit in advance of obtaining medical care. 11.31 "Qualified Beneficiary" means any individual eligible to continue health care coverage under COBRA as a result of a Qualifying Event. 11.32 "Qualified Benefit Plan" refers to the Health Care FSA Program and the Dependent Care FSA Program, any of the Medical Plans and/or any other employer-sponsored welfare benefit plans, if any, designated from time to time by the Plan Sponsor, and communicated in writing to Participants, for purposes of providing various benefits under this Plan. 11.33 "Qualifying Event" means any event described in Code Section 4980B which gives a Qualified Beneficiary the right to continue health care coverage under COBRA. 11.34 "Qualifying Medical Care Expense" means any expense incurred by a Participant, or by the spouse or Dependent of such Participant, for medical care as defined in Code Section 213(d)(including without limitation amounts paid for hospital bills, doctor and dental bills, and drugs), but only to the extent that the expense is not reimbursable to the Participant or other person incurring the expense through insurance or otherwise (other than under the Plan). Qualifying Medical Expenses do not include "qualified long term care services" as defined in Section 7702B(c) of the Code or premiums paid for health care coverage sponsored by the Plan Sponsor, any other employer, Medicare, or for individual coverage. 11.35 "Urgent Care" means a medical situation where failing to make a determination quickly could seriously harm a claimant's life, health, or ability to regain maximum function or could subject a claimant to severe pain that could not be Page 24 managed without the requested treatment, as may be determined by a physician, and "Urgent Care Claim" shall mean a claim involving Urgent Care. 11.36 "Uniformed Services" means the United States Army, Navy, Air Force, Marine Corps, Coast Guard, the Army National Guard, and the Air National Guard when engaged in active duty for training, inactive duty training, or full-time National Guard duty, the commissioned corps of the Public Health Service, and any other category of persons designated as such by the President of the United States in time of war or emergency. Executed this ____ day of _________, 2024. City of Galesburg By: _________________________________________ Name: _______________________________________ Title: ________________________________________ Page 25 APPENDIX A THE HEALTH SAVINGS ACCOUNT PROGRAM ARTICLE I PLAN ESTABLISHMENT 1.1 Purpose The purpose of this Appendix A is to set forth the provisions governing the Health Savings Account (HSA) Program. The HSA Program is created exclusively to permit an HSA-Eligible Employee to make contributions to an Eligible HSA. 1.2 Qualification The HSA Program is a savings account that is established and maintained by an HSA trustee/custodian outside this Plan to be used primarily for reimbursement of "qualified eligible medical expenses" as set forth in Code Section 223(d)(2). The HSA Program is an elective pre-tax option under the Plan, and is intended to constitute accident and health plan coverage under Code Section 106. 1.3 Incorporation By Reference The terms of the Plan are incorporated by reference wherever they apply to the HSA Program's operation. 1.4 Duration The HSA Program is established with the intent of being maintained for an indefinite period of time; however, the Plan Sponsor, in its sole and absolute discretion, and in accordance with the provisions of Article X of the Plan, may amend or terminate the HSA Program or any of the provisions herein. 1.5 Use of Terms Terms used in this Appendix A shall have the same meanings as the terms defined in Article XI of the Plan, unless separately defined in this Appendix A. All of the terms and provisions in Articles I through XI of the Plan shall apply to this Appendix A, except that where the provisions of this Appendix A and Articles I through XI of the Plan conflict, the provisions of this Appendix A shall govern. Page 26 ARTICLE II DEFINITIONS 2.1 Eligible HSA An Eligible HSA, as used in this Appendix A, means an HSA that is established and maintained by an HSA- Eligible Employee through the HSA trustee or custodian selected by the Plan Sponsor and offered in conjunction with the Employee's enrollment in a High Deductible Health Plan sponsored by the Plan Sponsor. ARTICLE III PARTICIPATION AND TERMS 3.1 Participation, Contributions and Elections HSA-Eligible Employees may elect to contribute to the HSA Program on a prospective basis by enrolling under the terms of Section 3.1 of the Plan. As described in Section 3.4(a) of the Plan, such election can be increased or decreased prospectively during the Plan Year, effective no later than the next available payroll date following the Plan Sponsor's receipt of a completed election change form. Subject to the terms and conditions of Articles I through XI of the Plan and this Appendix A, as part of an Employee's participation under the terms of Article III of the Plan, any HSA-Eligible Employee may elect to contribute an amount to an Eligible HSA. 3.2 Annual Contribution Limits The maximum amount that an HSA-Eligible Employee may elect to contribute to an Eligible HSA during the Plan Year is the statutory maximum amount for HSA contributions applicable to the Participant's High Deductible Health Plan coverage option (i.e., single or family) for the calendar year in which the contribution is made, determined pursuant to Code Section 223(b)(2). If the HSA-Eligible Employee attains (or will attain) age 55 by the end of any calendar year, the annual contribution limit is increased by the catch-up limit applicable for that calendar year (as determined pursuant to Code Section 223(b)(3)) (currently $1,000). The annual contribution limit shall be reduced by any HSA contributions made by the Plan Sponsor on behalf of the HSA-Eligible Employee. For Employees who elect to participate in the Plan Sponsor's High Deductible Health Plan, the Plan Sponsor will contribute up to $750 (for individual coverage) and up to $1,500 (for two-person or family coverage) to the Employee's HSA, or such other amount as provided in the initial and annual open enrollment materials furnished to Employees, which contributions shall be credited to the Employee's HSA in a one-time lump sum payment made First of the month. The annual contribution limit (and the catch-up limit, if applicable) will be prorated by the number of months during the Plan Year in which the Employee is an HSA- Eligible Employee unless the HSA-Eligible Employee is enrolled in a High Deductible Health Plan on December 1 of a given year, in which case the Employee may elect the entire annual contribution limit (including the catch-up contribution, if otherwise eligible); however, in order for such Employee's contribution to retain its tax-favored status, the Employee must remain eligible for an HSA through the end of the following calendar year. ARTICLE IV MISCELLANEOUS 4.1 Administration of the HSA Program The Plan Sponsor shall transfer any pre-tax HSA contribution amounts elected by an HSA-Eligible Employee directly to the HSA trustee or custodian. The Plan Administrator shall maintain records of such HSA contribution amounts, and shall provide this information to the Plan Sponsor so that the Plan Sponsor may appropriately report this information on the Employee's Form W-2. The Plan Sponsor shall have no responsibility, authority or control over such HSA contribution amounts once such amounts are transferred to the HSA trustee or custodian. 4.2 HSA Program and ERISA Page 27 The HSA benefits under this Plan consist solely of the ability to make contributions to the HSA on a pre-tax salary reduction basis and any Plan Sponsor contributions to such HSA as set forth in Section 3.2. Terms and conditions of coverage and benefits (e.g., eligible medical expenses, claim procedures, etc.) shall be provided and are set forth in the HSA, not this Plan. The HSA Program is not an employer-sponsored employee welfare benefit plan within the meaning of Section 3(1) of ERISA. It is a savings account that is established and maintained by an HSA trustee/custodian outside this Plan to be used primarily for reimbursement of "qualified eligible medical expenses" as set forth in Code Section 223(d)(2). The Plan Sponsor's only involvement with the HSA Program is to forward to the HSA provider(s) contributions that Employees make via pre-tax salary reductions and that the Plan Sponsor contributes on behalf of Employees, and to select an HSA trustee or custodian to facilitate the establishment of an HSA by HSA-Eligible Employees who enroll in a High Deductible Health Plan sponsored by the Plan Sponsor. The Plan Sponsor shall maintain records to keep track of HSA contributions Employees make via pre-tax salary reductions and that the Plan Sponsor contributes on behalf of Employees, but it shall not create a separate fund or otherwise segregate assets for this purpose. The Plan Sponsor has no authority or control over the funds deposited into an HSA. 4.3 Amount Payable The tax treatment of the HSA (including contributions and distributions) is governed by Code Section 223 and the laws of any applicable state or local jurisdiction. Executed this ____ day of _________, 2024. City of Galesburg By: _________________________________________ Name: _______________________________________ Title: ________________________________________ Page 28 APPENDIX B PARTICIPATING EMPLOYERS As of January 1, 2025 None Page 29 ___________________________________________________________________________________________________________________________________________________________________________________________ Prepared by: CSG Page 1 of 1 COUNCIL LETTER CITY OF GALESBURG DECEMBER 16, 2024 AGENDA ITEM: Strategic Planning Final Report and Executive Summary Report SUMMARY RECOMMENDATION: The Strategic Planning Final Report and Executive Summary Report are provided to be received and placed on file with the City Clerk’s Office. BACKGROUND: At the March 4, 2024, City Council meeting, an agreement was approved with Northern Illinois University (NIU) Center for Governmental Studies for strategic planning services. The strategic planning process launched in June and included internal and external stakeholder focus groups, and leadership interviews. In August, the strategic planning workshop was held to set priorities and a vision for the future direction of the city. The staff at NIU Center for Government Studies encapsulated the results of that strategic planning workshop into the attached reports, which illustrate the prioritized short and long-term goals for the city. BUDGET IMPACT: There is no cost to receive the final plan documents. The total cost for the strategic planning services was $22,500.00, and sufficient funds were included in the 2024 budget. SUPPORTING DOCUMENTS: 1.Strategic Planning Executive Summary Report 2.Strategic Planning Full Report 24-5015 1 2024 STRATEGIC PLANNING AND GOAL DEVELOPMENT INITIATIVEThe City of Galesburg PREPARED OCTOBER Executive Summary 1 Introduction Visioning for the Future In January 2024, the City of Galesburg (the “City”) engaged the Northern Illinois University Center for Governmental Studies (“NIU-CGS”) to facilitate the process of developing the City’s strategic plan. The strategic planning process included collecting internal and external feedback, consisting of focus groups with community stakeholders and staff and interviews with the City Council and administrative leadership. Themes emerging from this feedback were shared at the City’s strategic planning leadership workshop held in August 2024. The findings were used to assist workshop participants in making informed decisions related to crafting a strategic vision and future direction for the City as an organization and the community it serves. Ultimately, workshop participants created strategic goals focusing on where the City wants to go as an organization in both the short and long term. Executive-level strategic planning sessions are a staple for progressive organizations and are recommended to be done regularly. The full report provides a summary of the process and presents the consensus on strategic directions and goals for the City. During the strategic planning workshop, participants engaged in a visioning exercise to describe the desired future direction of the City by answering the question: “If you left the City and the community for 10-15 years, what do you think or hope to see when you return?” The word cloud summarizes their responses. DID YOU KNOW? Galesburg is home to one of the largest rail yards in the country and was designatedby the U.S. Congress to host the National Railroad Hall of Fame in 2004? It’s also where the historic 1858 Lincoln-Douglas debate took place at Knox College. https://www.ci.galesburg.il.us/ 2 Strategic Goals and Priority Areas High-Priority Strategic Goals At the strategic planning leadership workshop, stakeholder input from the focus groups and interviews was shared in thematic form to help inform a series of discussions on leadership’s visions for the future and the City’s current strengths, weaknesses, opportunities, and challenges (S.W.O.C.). Participants ultimately used the workshop discussions and exercises to develop short- and long-term goals for the City. The City Council and administrative leadership developed seventeen short-term goals and fifteen long-term goals at the workshop. They were asked to delineate, via an online ranking exercise after the workshop, which goals should be given the highest priority. The following highest priority goals are offered as a process “snapshot”, representing the most important strategic goals for the Council and staff to address in the months and years ahead. To view the full list of goals developed and ranking methodology, please refer to the full report.SHORT-TERM1- to 3-YEAR TIME FRAME4- to 8-YEAR TIME FRAMELONG-TERMDevelop a multi-year plan to invest in infrastructure improvements. Improve the City’s marketing and external communication strategies to ensure cohesive and accurate messaging to the variety of stakeholders, residents, and businesses across the community. Use the 2024 Galesburg housing study to develop policies, programs, andapproaches for short- and long-term housing needs while working to improve themix of housing and housing stock. Explore funding source options for long-term road and infrastructuremaintenance needs across the community. Analyze and resolve the City’s water sourcing options and solutions for the next 60-100 years. Continue to increase the City’s investments and activities to foster and support broad economic development opportunities and actions in the community. Capitalize on the City’s airport as an asset with regular maintenance,improvements, and enhanced marketing for tourism. Work with downtown businesses to make downtown a vibrant and active hub,including attracting outdoor dining and residential housing developers formixed-use development. Work to address power infrastructure needs and deficits and improve the power grid in and around the City with electric utilities/providers. Partner to help reduce and/or alleviate elements of poverty in the City. Foster and facilitate a redevelopment plan for the Sandburg mall and the area surrounding the mall. 3 Strategic Priority Areas Based on an evaluation of the entire process, including interviews, focus groups, discussions at the workshop, and the goals developed, four high-level strategic priority areas were identified. Strategic priority areas can change slightly from one strategic planning process to the next. These priority areas represent larger themes or priorities that encompass all the strategic goals. Full definitions, rationale, and goal alignment can be found in the full report. COMMUNITY DEVELOPMENT AND BEAUTIFICATION The City of Galesburg has a rich history worth celebrating. The City’s proactive andpassionate leadership, commitment to high quality of life, and strong support for the artsand culture are just a few of its strengths. Prioritizing beautification efforts and dedicatingfunds to accomplish beautification goals will not only help to enhance the City’s aestheticappeal, but also build a sense of community pride. By improving the gateways, streets, andsidewalks through public/private partnerships, residents and businesses can be inspired toinvest more deeply in their community, fostering a stronger, more trusting relationshipbetween the City government and its citizens. ECONOMIC DEVELOPMENT AND JOB CREATION The City of Galesburg’s central location and large size lend themselves to a bustling business district. Continued focus on revitalization and rehabilitation of downtown historic buildings will be important to achieving Galesburg’s economic and community development goals, including creating jobs, increasing tourism dollars, and recruiting new businesses that will complement and diversify the City’s business mix. The City can focus on areas of growth and expansion by employing tools such as façade grant programs, rehabilitation assistance, talent pipeline partnerships and other incentives to recruit and retain businesses. COMMUNITY ENGAGEMENT AND GOVERNANCE Community engagement and effective governance is vitally important for communities ofall sizes. Whether it is listening to the needs of residents and businesses, delivering acohesive message, or promoting the City’s events and activities, clear communication andactive engagement are high priorities for City staff and elected officials. Highlighting whatmakes Galesburg unique to current and potential residents, businesses, and tourists isessential for successful marketing and branding of the community. Moreover, communityengagement enhances transparency, which is fundamental to effective governance. INFRASTRUCTURE AND HOUSING IMPROVEMENTS Proactively planning and rehabilitating the City’s existing facilities along with strategicinvestments in the City’s water and power infrastructure are essential to ensuring City facilities are sustainable and can accommodate potential growth. Additionally, diversifying the housing stock is crucial to meeting the needs of both current and potential residents across various life stages. Exploring housing need, availability, and future developments will enable the City to adapt to, and plan for, changes in population, demographics, and tourism, positioning the community for long-term success. Strategic Plan Process Acknowledgements CITY OF GALESBURG ELECTED OFFICIALS Mayor, Peter Schwartzman First Ward City Council Member, Bradley Hix Second Ward City Council Member, Wayne Dennis Third Ward City Council Member, Evan Miller Fourth Ward City Council Member, Dwight White Fifth Ward City Council Member, Heather Acerra Sixth Ward City Council Member, Sarah Davis Seventh Ward City Council Member, Steve Cheesman City Clerk, Kelli R. Bennewitz CITY OF GALESBURG ADMINISTRATIVE LEADERSHIP City Manager, Eric Hanson Executive Assistant to the City Manager, Kristin Robinson Director of Public Works, Michael Doi Director of Finance, Jennifer O’Hern Director of Community Development, Steve Gugliotta Director of Parks and Recreations, Don Miles Chief of Police, Russ Idle Fire Chief, Randy Hovind Administrative Services Manager, Cathy St. George Human Resources Manager, Jessica Pease IT Manager, Orlee Lucero CITY OF GALESBURG COMMUNITY AND STAKEHOLDERS The City of Galesburg would also like to thank all the community members who participated in the stakeholder feedback phase of the process. An effective strategic plan includes feedback from stakeholders to ensure that needs and expectations are shared and understood by leaders of the organization. Process facilitated by Northern Illinois University Center for Governmental Studies Prepared by project coordinators and workshop facilitators Greg Kuhn, PhD Director, NIU Center for Governmental Studies Mel Henriksen, MPP Assistant Director, Strategic Management, Policy, and Community Development NIU Center for Governmental Studies 2024 STRATEGIC PLANNING AND GOAL DEVELOPMENT INITIATIVEThe City of Galesburg PREPARED OCTOBER Full Report Strategic Plan Process Acknowledgements CITY OF GALESBURG ELECTED OFFICIALS Mayor, Peter Schwartzman First Ward City Council Member, Bradley Hix Second Ward City Council Member, Wayne Dennis Third Ward City Council Member, Evan Miller Fourth Ward City Council Member, Dwight White Fifth Ward City Council Member, Heather Acerra Sixth Ward City Council Member, Sarah Davis Seventh Ward City Council Member, Steve Cheesman City Clerk, Kelli R. Bennewitz CITY OF GALESBURG ADMINISTRATIVE LEADERSHIP City Manager, Eric Hanson Executive Assistant to the City Manager, Kristin Robinson Director of Public Works, Michael Doi Director of Finance, Jennifer O’Hern Director of Community Development, Steve Gugliotta Director of Parks and Recreations, Don Miles Chief of Police, Russ Idle Fire Chief, Randy Hovind Administrative Services Manager, Cathy St. George Human Resources Manager, Jessica Pease IT Manager, Orlee Lucero CITY OF GALESBURG COMMUNITY AND STAKEHOLDERS The City of Galesburg would also like to thank all the community members who participated in the stakeholder feedback phase of the process. An effective strategic plan includes feedback from stakeholders to ensure that needs and expectations are shared and understood by leaders of the organization. Process facilitated by Northern Illinois University Center for Governmental Studies Prepared by project coordinators and workshop facilitators Greg Kuhn, PhD Director, NIU Center for Governmental Studies Mel Henriksen, MPP Assistant Director, Strategic Management, Policy, and Community Development NIU Center for Governmental Studies Contents City of Galesburg Background 1 Pre-Workshop – Environmental Scanning and Stakeholder Input 2 Leadership Workshop – Outline of Exercises and Discussion Sessions 4 Post-Workshop – Goal Prioritization and Ranking Exercise 10 Strategic Priority Areas 13 Conclusion 14 Appendix A: Focus Group and Leadership Interview Feedback 15 Appendix B: Surrender or Lead Exercise 19 Appendix C: Strategic Priority Area Goal and Stakeholder Feedback Alignment 20 1 INTRODUCTION Strategic planning is an effective way to identify and confirm an organization’s vision for the future and set organizational purpose and direction by incorporating clear priorities and measurable goals. To this end, the City of Galesburg (the “City”) engaged the Northern Illinois University Center for Governmental Studies (NIU-CGS) in January 2024 to facilitate its strategic planning process. From June through July 2024, the NIU-CGS team gathered internal and external stakeholder input that was shared at the strategic planning leadership workshop held in August 2024. The workshop provided an opportunity for elected officials and administrative leadership and staff to discuss a future vision for the City and establish short- and long-term goals. It also provided a positive atmosphere where workshop participants could discuss the best ways to serve the organization and the broader community in the coming years. The value of such processes continues to be recognized by policy-making boards, councils, and executive staff in both private and public organizations (Figure 1). It is important to keep in mind that the judicious use of the City’s limited resources (including financial resources and professional staff time) is key to achieving good results. Only a limited number of goals and objectives can be managed and implemented effectively at any given time. In a very realistic sense, clear and stable priorities must be maintained if the City desires to stretch its resources as far as they can go. City of Galesburg Background 1https://data.census.gov/profile/Galesburg_township,_Knox_County,_Illinois?g=060XX00US1709528339 2https://www.ci.galesburg.il.us/index.php Galesburg, located in Knox County, Illinois, sits approximately 45 miles northwest of Peoria. At the 2020 census, its population was just over 30,000. It is the county seat of Knox County and the principal city of the Galesburg Micropolitan Statistical Area, which includes all of Knox and Warren counties.1 Knox Manual Labor College, now known as Knox College, was the site of the legendary 1858 Lincoln-Douglas debate. Galesburg’s identity has long been tied to the railroad industry, home to one of the largest rail yards in the country. This railroad heritage earned Galesburg the honor of hosting the National Railroad Hall of Fame in 2004 as designated by the U.S. Congress. Once an industrial hub, the City has since diversified its economy, fostering a range of new businesses while maintaining a forward-looking perspective on growth and development.2 2 Pre-Workshop – Environmental Scanning and Stakeholder Input The City’s leadership recognized the importance of gaining a comprehensive understanding of their organization and the broader community they serve by gathering input from various stakeholders during the environmental scanning phase of the strategic planning process. This phase involved examining factors that shape the City’s activities and mission. To accomplish this, the NIU-CGS team conducted focus groups and interviews involving internal and external stakeholders. EXTERNAL PERSPECTIVES Incorporating external perspectives into the City’s strategic plan is important for capturing the diverse needs and aspirations of the community, ensuring the plan is responsive to the concerns of its residents, businesses, and partners. This approach fosters greater public trust and engagement, leading to more effective and sustainable outcomes. INTERNAL PERSPECTIVES Gathering internal perspectives when developing the City’s strategic plan is also crucial, ensuring the plan is informed by the insights and experiences of those who understand the organization’s unique operations, challenges, and opportunities. This comprehensive input fosters alignment with the community’s needs and goals. To collect these internal perspectives, the NIU-CGS team conducted interviews with the City’s leadership team and elected officials, facilitated an in-person focus group with front- and mid-line staff, and conducted a working session with department heads. An analysis of the feedback resulted in the development of theme areas for the leadership team to consider at the Leadership Workshop (Figure 2). Detailed summaries are provided in Appendix A. Focus groups are designed to be a highly interactive approach, allowing for a robust and informative conversation with and between participants. • Between June and July 2024, four focus groups were conducted in person with some of the City’s external stakeholders, listed below. The number of participants in each group ranged from 9-17. »Business community »Intergovernmental agencies »Civic organizations »Cross-section of residents Interviews result in highly personalized participation and the in-depth sharing of ideas. The focus of the interview sessions is to gain an initial perspective by building a balanced and informed view of the City from each stakeholder’s unique vantage point. • Between late June and mid-July, individual interviews were conducted with the Mayor, City Clerk, and Council Members. • In late July, and in-person focus group was conducted with 16 members of the City’s front- and mid- line staff. In addition a working session was also conducted with 14 of the City’s department heads. 3 Figure 2. Stakeholder Feedback Themes - Top Priorities for All Stakeholders Alignment of all stakeholder feedback (focus groups and interviews) COMMUNITY DEVELOPMENT AND BEAUTIFICATION • Preserve and market/leverage the City’s rich history to attract residents and visitors. • Undertake downtown and corridor enhancements to restore the downtown with mixed-use housing, provide business incentives to recruit economic development, and beautify the gateways and main corridors. • Focus on development/redevelopment efforts reducing the north/south divide and revitalize mall area. • Uphold excellent parks and green spaces for recreational enjoyment and relaxation and overall quality of life. COMMUNITY ENGAGEMENT AND GOVERNANCE • Promote collaboration among council, staff, residents, and businesses to establish a unified vision and strategic direction. • Enhance civic engagement and community pride by increasing awareness of local elections and improving communication about local resources and success stories. »Help overcome negative perceptions • Deliver essential community services, including a community center for residents of all ages, mental health resources, childcare services, and recreational opportunities. • Promote proactive and diverse leadership to cultivate forward-thinking strategies that effectively address the diverse needs of residents, businesses, and partners over the long term. • Host and market community events to bring people together. Community Development and Beautification Economic Development and Job Creation Community Engagement and Governance Infrastructure and Housing Improvements ECONOMIC DEVELOPMENT AND JOB CREATION • Encourage and foster diversity to promote economic stability and growth. • Utilize current local assets to attract tourism and industry and ultimately realize the City’s full potential. • Attract industries offering quality and well- paying jobs to enhance the tax base and overall quality of life. • Adopt a growth-oriented and forward-thinking mindset to collaboratively develop innovative solutions and foster a harmonious atmosphere. • Improve local education and vocational training to develop a skilled local workforce. INFRASTRUCTURE AND HOUSING IMPROVEMENTS • Improve roads and sidewalks to enhance connectivity, walkability, and community appeal. • Develop programs and incentives for housing rehabilitation and new development. • Expand public transportation and ensure reliable high-speed internet to attract remote workers and businesses. • Advocate for funding/grants to improve infrastructure across the community. • Implement strategic housing rehabilitation initiatives by working with homeowners to enhance the housing stock and quality and to help attract a larger and more diverse population. 4 All discussion sessions in the planning effort employed highly participative and interactive approaches. The workshop facilitators utilized a group discussion approach called ‘Nominal Group Technique’ where the facilitator assures participants equal opportunities to speak and share opinions. During the workshop discussions, individuals had the opportunity to generate and share their ideas, as well as participate in small and large group activities allowing them to weigh alternatives and refine their thinking through dialogue. As ideas were shared and debated, the group worked steadily toward a consensus regarding the City’s purpose, future direction, goals, and priorities. INTRODUCTIONS AND ICEBREAKER EXERCISE Participants were asked to introduce themselves and share how long they have been involved with the City. Next, they engaged in an icebreaker exercise titled, “Garage Sale.” Workshop participants collected an item from a “garage sale” table that represented to them an idea, issue, or topic that they felt was important to the City’s future and should be discussed as part of the strategic plan. This was a brainstorming exercise, and no evaluative or judgmental debate was permitted during this session. Next is a list of those answers (Figure 3). Leadership Workshop – Outline of Exercises and Discussion Sessions 5 GARAGE SALE ITEM IMPORTANT ISSUE, INITIATIVE, OR IDEA THAT SHOULD BE PART OF THE CITY’S FUTURE Police officer City is in need of safety blue lights at Storey Park. Golf ball Value all recreational activities/assets – big draw for residents and tourists. Trash can Run down properties – enhance programs to help rehabilitate or revitalize vocational options. More pride from beautiful, clean city. Ballerina Youth are the future – Arts/Recreation – need to grow – foster youth opportunities. Build workforce – future leaders – encourage youth to stay in Galesburg. Light bulb Could Galesburg provide its own energy? Put Galesburg on the map statewide. Building plate Emphasis on bringing businesses into the community. Diverse industries – well-paying jobs – develop workforce. Building plate II Would like to see Main Street buildings full, façade nice, quality businesses but keep historic feel – “stay and play” in Galesburg. Capitol dome Need to focus on intergovernmental relations and advocacy for growth, funding increases – several projects in the community would benefit. Pepper beads Look forward to the future – make Galesburg a destination – change the perception – new story written. Socket Good jobs and infrastructure – pay attention to the power grid and power infrastructure to attract companies. Capitol dome Power grid, housing, and public safety all benefit from developing relationships with the State of Illinois. Pipe Improve the current housing stock, new homes, and rentals. Promote historic homes. Enforce codes. Expand public transportation and other transportation options. Plastic bag Transparency in planning, ideas, implementation. Easy to find information – trust, accountability. Compacts Engineering intensive projects ahead, e.g., airport expansion. Water department and aging infrastructure needs attention. Painter’s tape Have been using band-aid fixes, but turning a corner - need to continue infrastructure improvements. Playing cards Have connected buildings helping with communication – need to connect with community and communicate with different avenues. Paintbrush Fix neglected properties in town, build new houses – beautification – arts, culture. Feel like home. Measuring tape Successful implementation of goals – measure success. Figure 3. Garage Sale Icebreaker: important issue, initiative, or idea that should be a part of the City’s future - List 6 VISIONING FOR THE FUTURE The workshop participants next engaged in a visioning exercise to describe the desired future direction of the City by answering the following question: “If you left the City and the community and didn’t return for 10-15 years, what do you think you will see or what do you hope you will see when you return?” Participants were asked to think about their ideas ahead of time and then be ready to share them with the group during the first session of the workshop. Responses are listed in Figure 4. • Walkable Main St. – events that still draw people to Galesburg. • Hope to see new, additional, and affordable housing options* (single-family, rentals, apartments, townhomes, mixed use, etc.) to help build up downtown and neighborhoods – attract youth, reinvent Galesburg’s nice/identity. • Could St. Mary’s Square be mixed use – retail/ housing? • Need help with mental health and addiction crisis to build up community. Resources needed for treatment (e.g., systems and facilities). • Hope the City is safe*, more beautification*, and thriving community with signage. • More economic activity, community development. • Progress across community – Use our past to help reinvent ourselves. • Need to secure buy-in from community – help with solutions, understand what solutions take to get done. • Hope the mall is gone and the City’s retail/ restaurants* become a destination. Hall of Fame here. • Hope Knox College becomes more involved with the City of Galesburg. • Helps with talent pipeline, youth mentorship. • Simmons St. – B&B across from train station. • Hope that the high school is top 3 in the state, will draw more families to Galesburg. If you left the city and the community and didn’t return for 10-15 years, what do you hope or think you will see when you return? Figure 4. Visions of the Future—Hope or think you will see in 10-15 years Statements that include an asterisk (*) indicate the idea was repeated/agreed with by other participants. • Hope to see economic vitality * – job creation as a catalyst – commitment to excellence of all staff to all initiatives, projects, and jobs. Move the needle – measure progress. • Hope the City is recognized as a regional leader in regional commerce and economic activity. Focus on core assets – be the best Galesburg we can be – create a community that has the resources to accomplish vision. • Hope to see less poverty *, growth of City, and community beautification. • Trees and green space still exist and are improved. • Hope to see a sports complex, which will draw tourism. • Hope the City of Galesburg is an employer of choice with high performing staff, highly qualified team. • Hope to see more advanced transportation system*, better connectivity for all ages. • City needs airport improvements and a second logistics park. • Technology is a good communication tool but need more to build community. • Hope the Parks and Recreation Department is fully staffed to help build infrastructure to make Galesburg a destination city. • Hope to see vibrant and active downtown* that is walkable, including outdoor dining and residential housing. • Boutique hotels downtown. 7 ENVIRONMENTAL SCANNING PART I— SURRENDER OR LEAD Next, participants were introduced to a leadership exercise entitled “Surrender or Lead.” Participants were asked, in small groups, to respond to a series of structured questions to reveal hopes, perspectives, challenges, opportunities, and possible barriers based on the collective view of each group. The responses were recorded and combined themes from the four groups are reported next. For a full list of Surrender or Lead responses from each group, see Appendix B. ENVIRONMENTAL SCANNING PART II—LARGE GROUP S.W.O.C. ANALYSIS The next step of the strategic planning workshop involved reviewing and accounting for the internal and external factors present in the environment that can potentially influence the City, both negatively and positively. Workshop participants were asked to identify the City’s strengths (S) and weaknesses (W). In what areas does the City regularly excel, and in what areas are there difficulties or shortcomings in terms of expertise, resources, training, etc.? What opportunities (O) are on the horizon that can be used to the City’s advantage? Conversely, what trends or challenges (C) lie ahead that would be obstacles or hindrances? These elements could include both internal and external factors, conditions, trends, regulations, agencies, resources, etc. The full list of responses to the exercise are provided in Figure 5. Themes from Surrender or Lead: Prioritize infrastructure (especially related to energy, streets, housing), economic development, youth retention, and workforce development. These areas are seen as crucial for growth and community pride. Overcome challenges involving financial constraints and the continued need for engaged leadership and implementable strategic planning. Establish effective governance and leadership to help drive progress over the next 2-3 years. 8 Figure 5. S.W.O.C. Analysis Results • City Manager, fresh ideas, and leadership • Staff and opportunity to hire and fully staff departments • Engaging residents • Large size of Galesburg – opportunities to expand and grow • Central location • Community education • Education choices available • College campuses • Transportation system • Transportation network (highways, public transportation) • Hard for minorities fitting into the job market, community • Not all residents have community pride, want to help bring that back • Staff need to help cultivate better culture and continue with a “customer-first” mentality • Leadership throughout the community • Residents • Large size of Galesburg • Water • Safety • Higher education • K-12 options available • Public transportation system • Community leaders are proactive »Communication and partnership exploration • Cultural arts • Parks and recreation • Amtrak • Volunteers and community service • Airport and FBO ownership • Safety – challenging policies for policing, funding, and staff resources are challenging • K-12 could have more diversity in staff, classes offered • Public transportation stretched thin, new equipment needed • Improve relationship and communication with County • Housing stock availability • Property tax rate for State • Power grid and power availability are challenging – need to explore options • Outside perception – opportunity to tell a positive story • May not have skilled workforce – lacking knowledge of available resources • Government, education, and civic partners • Leaders throughout community • County government partnerships and communication • Cultural arts, etc. • Downtown revitalization • Housing stock – creating options for all ages and income levels • Amtrak service • Perceptions of and in the community • Workforce readiness – building a skilled workforce • Airport expansion and utilization »FBO operator at airport »Expanded hangars and jet maintenance and repairs • BNSF Railway as the City’s largest employer • Diversity of population and workforce factors • Building on the City’s history • Tourism »Ferris wheel inventor »Hope Cemetery »Birthplace of Carl Sandburg • Hope Cemetery is a historic asset • Tourism • Diversity of Galesburg • History of Galesburg • Railroad • Location • Staff • Eric, City Manager S W O STRENGTHS WEAKNESSES OPPORTUNITIES 9 • Staffing levels need to be addressed • Residents • Customer service consistency • Water Department • Community safety • Community education on what is happening in the City, civic engagement, keeping community up to date • Colleges and community colleges • IDOT • Downtown – not all buildings are locally-owned • Low housing stock, not diverse enough • Homeownership vs. rental rates in Galesburg • Property tax and tax rates • Power grid • Perceptions of the City • Workforce readiness »Building a skilled workforce • BNSF Railway and improving relationship and engagement with the community • Diversity of population and workforce factors CCHALLENGES NOMINAL GROUP GOAL IDENTIFICATION With the preceding discussion sessions and exercises acting as a sound foundation for goal setting, the next exercise provided time for a healthy group discussion and development of goals and/or objectives needed to achieve the future visions as expressed by workshop participants. Participants worked in the same small groups for goal development. Each group was allotted time to develop, and then report out, three or four important policy and program goals they thought the City should accomplish. Groups were asked to create goals using two timeframes; short-term goals (which could be started or accomplished in the next one to three years), as well as those that would be considered long-term goals (which could be accomplished in the next four- to eight-year time frame). Each workgroup then shared their short- and long-term goals with the larger group for feedback and discussion. Goals could be highly specific or general. Open Group Discussion and Consolidation of Goals and Objectives This final phase of the discussion served as the forum for workshop participants to discuss, refine, and compare the ideas and goals offered by each participant. Participants gave their opinions and further explained the fit, ideas, and policy outcomes expressed in the goals and discussed if additional goals were needed. Lastly, the group categorized each goal as complex or routine (see Figure 6). Complex goals are complicated, multi-layered goals that require extraordinary resources, such as technical specialists, funding, or the collaboration or agreement of another unit of government or an outside organization, business, or agency. Routine goals are not simple or easy but could largely be accomplished by the organization with required budget and staffing allocations or with minor external assistance. Figure 6. Strategic Goal Matrix Short-term Routine Long-term Routine Short-term Complex Needs extraordinary resources 1- to 3- year time frame 4- to 8+- year time frame Can be largely accomplished within current resources Long-term Complex 10 The City Council members were asked to delineate, via a post-workshop online ranking exercise, which goals should be given the highest priority. The workshop participants were provided an online ranking tool where point values were assigned to each goal in both the short- and long-term categories. The calculation of goal prioritization consisted of “forced ranking” where the ranking of each identified goal is calculated as the average of the rankings given by all participants. For example, if a goal was given scores of 2, 5, 6, 6, 1, 2, and 3, the average total would be 3.57. The lower the score, the higher the priority. Again, the average totals were based on the rankings provided by the Council members. The outcomes of the City’s goal ranking exercise, along with the assigned priority levels for each goal, are presented in Figure 7. The dashboard demonstrates the strategic goals, tasks, and objectives for the City leadership to address in the months and years ahead. Following the ranked goals, the City’s broader priority areas are shared and defined. SHORT-TERM ROUTINE STRATEGIC GOALS Short-term goals have a time frame of 1-3 years. Routine goals are not simple or easy but can be accomplished with current City resources. PRIORITY LEVEL Develop a multi-year plan to invest in infrastructure improvements • Create a City-wide facility maintenance and replacement program for sidewalks, bike paths, roads, parks, drainage, water, and wastewater. High Improve the City’s marketing and external communication strategies to ensure cohesive and accurate messaging to the variety of stakeholders, residents, and businesses across the community. • Consolidate communication avenues and establish a one-stop-shop for information, possibly a City newsletter • Ensure communication is accessible by all age groups • Create opportunities for engagement with community High Develop and implement an approach for beautification of the City’s facilities, gateways, and public properties across the community.Medium Evaluate staffing needs throughout the organization to ensure that City departments are fully staffed to deliver the level of services desired/required.Medium Investigate ways to improve the recruitment and retention of city staff. • Consider additional benefits, sign-on bonuses, and other incentives Lower Enhance, improve, and build upon the City’s long relationship with the BNSF Railway.Lower Post-Workshop – Goal Prioritization and Ranking Exercise Figure 7. 2024 Ranked Strategic Goals Dashboard 11 SHORT-TERM COMPLEX STRATEGIC GOALS Short-term goals have a time frame of 1-3 years. Complex goals require extraordinary resources, experts, or funding to accomplish. PRIORITY LEVEL Use the 2024 Galesburg housing study to develop policies, programs, and approaches for short- and long-term housing needs while working to improve the mix of housing and housing stock. High Explore funding source options for long-term road and infrastructure maintenance needs across the community.High Analyze and resolve the City’s water sourcing options and solutions for the next 60-100 years.High Evaluate equipment and techniques to comply with Per- and polyfluoroalkyl substances (PFAS) water treatment requirements.Medium Work with other civic organizations and agencies in the City and region to improve the delivery of mental health resources and services.Medium Utilize partnership and relationships with Knox College and Carl Sandburg College to improve talent pipeline, youth mentorship, job creation and training.Medium Partner to support the creation of a Community Center to provide more recreational opportunities and community events.Medium Determine the feasibility of a new or expanded sports facilities complex.Medium Integrate and improve public safety communication by sharing more information about activities, incidents, awareness, and response about safety-related happenings in the community: • Develop awareness on approaches and resources available to residents and businesses • Share success stories Lower Establish a culture of long-term thinking/planning within the City Council to enhance Council teamwork, relationships, unity, and process.Lower Work to revisit and complete the National Railroad Hall of Fame to help City capitalize on the tourism industry.Lower LONG-TERM ROUTINE GOALS Long-term goals have a time frame of 4-8 years. Routine goals are not simple or easy but can be accomplished with current City resources. PRIORITY LEVEL Continue to increase the City’s investments and activities to foster and support broad economic development opportunities and actions in the community.High Capitalize on the City’s airport as an asset with regular maintenance, improvements, and enhanced marketing for tourism.High Review and update the City’s development ordinances.Medium Improve and expand the City’s garage/maintenance equipment facility.Lower 12 LONG-TERM COMPLEX GOALS Long-term goals have a time frame of 4-8 years. Complex goals require extraordinary resources, experts, or funding to accomplish. PRIORITY LEVEL Work with downtown businesses to make downtown a vibrant and active hub, including attracting outdoor dining and residential housing developers for mixed-use development. • E.g., boutique hotels downtown, events that draw crowds from all over the region High Work to address power infrastructure needs and deficits and improve the power grid in and around the City with electric utilities/providers.High Partner to help reduce and/or alleviate elements of poverty in the City by: • Evaluating current resources and exploring additional resources that might be available • Investing in actions, programs and approaches that can create/build more affordable housing and expand housing types/options • Develop a directory of resources, host roundtables with partner organizations, help to broaden the conversation High Foster and facilitate a redevelopment plan for the Sandburg mall and the area surrounding the mall. • Consider complete redevelopment and removal of obsolete or neglected structures and facilities at the mall High Continue to advance programs and activities aimed at filling the City’s industrial park while also investing in infrastructure to improve its usefulness and appeal.Medium Use regional partnerships to create a plan for expanded multi-modal transportation throughout the City.Medium Continue to focus on strengthening the City’s intergovernmental partnerships. • E.g., Knox County, school districts, higher education, etc.Medium Strengthen the City’s wireless network to provide accessible and reliable high-speed internet throughout the community.Medium Work to make Galesburg a producer/exporter of renewable energy.Lower Consider assembling a temporary/part-time/consultant construction crew to address City facilities rehabilitation and maintenance needs.Lower Completion of the Railroad Hall of Fame mentioned in strategic goals.Lower 13 Strategic Priority Areas Based on an evaluation of the entirety of the process, including stakeholder feedback, discussions at the workshop, and the goals developed, several high-level strategic priority areas were identified. These priority areas highlight the activities and initiatives that the City will focus on in both the short and long term. The strategic priority areas identified as a result of the strategic planning process are illustrated in Figure 8 and fully defined next. For strategic goal and focus group data alignment related to each area, see Appendix C. Figure 8. Strategic Priority Areas ECONOMIC DEVELOPMENT AND JOB CREATION The City of Galesburg’s central location and large size lend themselves to a bustling business district. Continued focus on revitalization and rehabilitation of downtown historic buildings will be important to achieving Galesburg’s economic and community development goals, including creating jobs, increasing tourism dollars, and recruiting new businesses that will complement and diversify the City’s business mix. The City can focus on areas of growth and expansion by employing tools such as façade grant programs, rehabilitation assistance, talent pipeline partnerships and other incentives to recruit and retain businesses. COMMUNITY DEVELOPMENT AND BEAUTIFICATION The City of Galesburg has a rich history worth celebrating. The City’s proactive and passionate leadership, commitment to high quality of life, and strong support for the arts and culture are just a few of its strengths. Prioritizing beautification efforts and dedicating funds to accomplish beautification goals will not only help to enhance the City’s aesthetic appeal, but also build a sense of community pride. By improving the gateways, streets, and sidewalks through public/private partnerships, residents and businesses can be inspired to invest more deeply in their community, fostering a stronger, more trusting relationship between the City government and its citizens. Community Development and Beautification Economic Development and Job Creation Community Engagement and Governance Infrastructure and Housing Improvements COMMUNITY ENGAGEMENT AND GOVERNANCE Community engagement and effective governance is vitally important for communities of all sizes. Whether it is listening to the needs of residents and businesses, delivering a cohesive message, or promoting the City’s events and activities, clear communication and active engagement are high priorities for City staff and elected officials. Highlighting what makes Galesburg unique to current and potential residents, businesses, and tourists is essential for successful marketing and branding of the community. Moreover, community engagement enhances transparency, which is fundamental to effective governance. INFRASTRUCTURE AND HOUSING IMPROVEMENTS Proactively planning and rehabilitating the City’s existing facilities along with strategic investments in the City’s water and power infrastructure are essential to ensuring City facilities are sustainable and can accommodate potential growth. Additionally, diversifying the housing stock is crucial to meeting the needs of both current and potential residents across various life stages. Exploring housing need, availability, and future developments will enable the City to adapt to, and plan for, changes in population, demographics, and tourism, positioning the community for long-term success. 14 Conclusion The value of the strategic planning process will only be realized if this report is used as an active working guide for the leaders of the City of Galesburg. This document captures the content of the discussions and assists the City’s leaders in developing implementation plans for their high-priority goals. In the City’s ever evolving operating environment, adapting to changes in demographics, community trends, technology advancements, and best practices, among others, will be key. The strategic plan is meant to be a roadmap for the City with the flexibility to adapt to those changes. Therefore, it is recommended that the City undertake a regular review (monthly, quarterly, or semi-annually) of the strategic plan, its goals, and implementation schedule to identify the need for updates or modifications so the entire City consistently recognizes and meets changes in community needs and expectations. In addition, the City is encouraged to continue to engage in regular strategic planning process updates and renewals every three years. What is apparent from the exchange of ideas and dialogue during the environmental scanning and strategic planning workshop is that the City is fortunate to have progressive leadership that is looking ahead and committed to strategic thinking and planning. We wish you well with the ambitious years that lie ahead. Greg Kuhn and Mel Henriksen, NIU-CGS Project Coordinators and Session Facilitators. 15 Appendix A: Focus Group and Leadership Interview Feedback SUMMARY One of the key analytical techniques used for focus group and interview notes is an analyst’s search for key phrases, words, or terms that emerged during the focus group and interview sessions, a process known as coding. Coding is done by analysts’ individual readings of the data, followed by key term searches. The words and phrases listed below are the results of the study team’s analysis of the collected focus group and interview notes. At a glance, the reader can discover what terms were used or referred to most frequently in the feedback notes. Using individual analysts’ coding, the researcher identifies terms that recur across groups and across questions. The results reveal key topics or issues that should be weighed and considered when proceeding with strategic planning discussions. The information that follows is a summary of key themes and topics that emerged during the exploratory focus group sessions and leadership interviews. The stakeholder feedback collection served as a primer for the strategic planning process. The information that is presented in this summation was designed to add exploratory and thematic information for the City leadership team to consider during the strategic planning workshop. The same exploratory discussion questions were asked to each focus group and interviewee and are listed below: 1 2 3 4 5 6 How would you describe the City to a stranger or someone who doesn’t live or work in the area? If you could change or initiate one key item or one goal for the City, what would it be? If you left and didn’t return for 10-15 years, what services/programs do you think you would see the City offering or what do you hope you would see when you return? What do you like best about the City? Related to that, what are the strengths or greatest assets of Galesburg? Can you identify areas or topics in need of attention or improvement? Related to that, what are the weaknesses or greatest needs for the City? What are or should be the top priorities for the City over the next three to five years? 16 COMMUNITY DEVELOPMENT AND BEAUTIFICATION • Preserve the City’s rich history and use it to market the community • Market Galesburg as a vibrant arts and culture community – become a destination, attract potential residents and visitors • Restoration of downtown »Include mixed-use residencies downtown »Provide incentives for downtown businesses for façade or other improvements • Attract development on the south side of town »Reduce north/south divide • Beautify the gateways and main corridors • Redevelop the mall area • Address underemployment with job/life skills training COMMUNITY ENGAGEMENT AND SERVICES • Improve the community’s perception/attitude (e.g., “comeback kid” success story) • Unified vision and strategic direction »Council, staff, residents, businesses • Civic engagement – enhance community’s knowledge of elections and candidates • Enhance communication with the community »Use varied approaches »Share more with the community to help provide information on what is going on, available resources for residents and businesses, success stories (e.g., Regional Alternative Education Services) »Lack of local media (e.g., newspaper) – makes it harder to share what is going on in the community • Consider a community center – a gathering place for all residents from the youth to the elderly • Provide, or work with other agencies to deliver, mental health resources • Licensed childcare options/availability needed • More recreational opportunities for the youth (bowling, programming, gathering spaces, etc.) INFRASTRUCTURE AND HOUSING IMPROVEMENTS • Improve roads and sidewalks »Enhance connectivity and walkability »East Main Corridor improvements • Improved housing – programs/incentives to rehab homes »Pursue new investment and incentive tools to stimulate new housing development • Housing stock variations and mix – a wide gap between the quality of housing can be seen throughout the community »More options/mix of options, type and quality could help attract/retain a younger demographic • Expanded public transportation network and services »Regional collaboration • Accessible and reliable high-speed internet throughout the community »Attract remote workers • Upkeep and better marketing of the airport as an asset OVERALL THEMES BASED ON THE EXTERNAL STAKEHOLDER FEEDBACK 17 EFFECTIVE GOVERNANCE AND COMMUNICATION • Regional collaboration and approach »Work with other institutions such as the educational and civic organizations to create a workforce pipeline • Diversity in leadership positions »Opportunities for youth to get involved so they can become the next generation of leaders • Proactive vs reactive leadership »Build a culture of long-term thinking • Establish a community identity • Utilize and communicate existing community assets • Host more community events and market and advertise • Cohesive messaging and communication • Unified direction »Continue to enhance council teamwork, relationships, and process OVERALL THEMES BASED ON THE STAFF FOCUS GROUP FEEDBACK: COMMUNITY CHARACTER AND IDENTITY • A historic hub city with small town values, close to big town amenities • Need to create a community brand – who are we? • Strong community pride – need to tell positive story • Striding in the right direction – improving atmosphere, need to keep momentum INFRASTRUCTURE AND PROPERTY MAINTENANCE • Revitalize/replace housing stock – single family, townhomes, modern apartment complexes • Help property owners clean up their properties • Update/upgrade potable water system to meet EPA standards QUALITY OF LIFE AND COMMUNITY SERVICES • Strengthen public safety - fear of crime/perception • City needs a “draw” – a destination to attract people • Sportsplex centrally located – more tournament-oriented, modernized with AstroTurf so more weather resistant • Need better access to emergency physical/mental health treatment and facilities (e.g., life flight) EFFECTIVE GOVERNANCE AND ORGANIZATIONAL MANAGEMENT • Increase safety surveillance camera use and number • Enhance staffing levels across the organization to meet the community’s needs and desires • Promote a positive work culture/support organization dedication 18 OVERALL THEMES BASED ON THE LEADERSHIP INTERVIEWS: ECONOMIC DEVELOPMENT AND JOB CREATION The interviews highlighted a consensus on leveraging the City’s arts, culture, history, and other local assets to attract tourism and industry, fostering economic growth and stability. Key priorities included attracting and retaining well-paying industries to enhance residents’ quality of life, adopting a growth mindset, collaborating with the local education system to develop a workforce pipeline, addressing daycare needs to support population growth and employment opportunities, and revitalizing downtown through building rehabilitation to make it more vibrant and appealing. Economic development and job creation were identified as essential strategies to help Galesburg reach its full potential. INFRASTRUCTURE AND PROPERTY MAINTENANCE Several critical infrastructure and property maintenance needs were highlighted throughout the interviews. Key priorities included securing funding for repairing essential infrastructure such as streets, sidewalks, curbs, and water systems. Participants highlighted the importance of advocating for state-level funding and grants to enhance areas like Main Street and Grand Avenue. Another focus was improving the housing stock and quality, including affordable housing options such as rentals, starter homes, and new builds across various income levels. Rehabilitation programs for homes in disrepair were identified as important. Additionally, discussions centered on making the community more attractive to residents and investors. This involves prioritizing property maintenance and enhancing gateways to foster a welcoming environment. COMMUNITY SERVICES AND UNITY Discussions from interviews highlighted several key community service and unity initiatives. A primary focus was establishing a consensus on a community center, emphasizing defining its purpose and ensuring sustainable operational costs. Collaboration with civic groups was identified as an avenue to address residents’ basic needs, including mental health challenges, enhancing civic participation, and tackling rising crime rates. Participants emphasized the need to enhance leadership diversity to better represent the makeup of the community. Lastly, fostering unity through collaboration across diverse backgrounds and cultures was highlighted as vital for collective progress and community cohesion. YOUTH ENGAGEMENT Interviews revealed agreement on the importance of engaging and supporting youth within the community. A primary objective was to provide motivation and opportunities that encourage young residents to stay in, or return to, Galesburg. This includes involving them in community activities to strengthen their sense of connection and belonging. There was an emphasis on improving efforts to equip students with local certifications and job placements, aiming to establish a sustainable workforce pipeline within the community. Collaborative initiatives with schools and libraries were identified as critical for creating an environment where young people can thrive and contribute to the community’s overall wellbeing. 19 Appendix B: Surrender or Lead Exercise Group 1 1. We want to improve infrastructure, but we need to prioritize and allocate resources. 2. The two most important things to focus on are youth and the economy because we need to take pride in our community. 3. If it weren’t for a perception of division, we would have public support to move forward. 4. We need to finally complete the Railroad Hall of Fame. 5. The vision of the City Manager and his staff will have the biggest impact on the City in the coming 2-3 years. Group 2 1. We want to grow but we are in Illinois. 2. The two most important things to focus on are infrastructure (energy, streets, housing) and workforce development, education because companies will only come if we have these things. 3. If it weren’t for lack of funds, we would invest in infrastructure improvements. 4. We need to finally aggressively address the appearance of our City. 5. Job creation and economy will have the biggest impact on the City in the coming 2-3 years. Group 3 1. We want to connect Knox College through Standish Park, but also protect and maintain the park at the same time. 2. The two most important things to focus on are housing and beautification of gateways because we want to attract and retain residents and visitors. 3. If it weren’t for Eric, we would not be here. 4. We need to finally use our strategic plan to follow through on planning our 3-5 year goals. 5. Leadership in all areas of our community will have the biggest impact on the City in the coming 2-3 years. Group 4 1. We want to advance our city, but where do we begin? 2. The two most important things to focus on are economic development and youth retention because it will allow us to advance, grow and move forward. 3. If it weren’t for financial challenges, we would have the ability to do lots of positive things. 4. We need to finally prioritize and focus on what we can accomplish that is of the highest priority. 5. Economic development will have the biggest impact on the City in the coming 2-3 years. The bolded and underlined sections are key phrases that each group provided in response to the Surrender or Lead exercise’s open-ended questions and prompts during the leadership workshop. 20 Appendix C: Strategic Priority Area Goal and Stakeholder Feedback Alignment Priority Area: Community Development and Beautification The City of Galesburg has a rich history worth celebrating. The City’s proactive and passionate leadership, commitment to high quality of life, and strong support for the arts and culture are just a few of its strengths. Prioritizing beautification efforts and dedicating funds to accomplish beautification goals will not only help to enhance the City’s aesthetic appeal, but also build a sense of community pride. By improving the gateways, streets, and sidewalks through public/private partnerships, residents and businesses can be inspired to invest more deeply in their community, fostering a stronger, more trusting relationship between the City government and its citizens. Community Development and Beautification-Related Goals from the Workshop: • Develop and implement an approach for beautification of the City’s facilities, gateways, and public properties across the community. • Continue to advance programs and activities aimed at filling the City’s industrial park while also investing in infrastructure to improve its usefulness and appeal. Community Development and Beautification-Aligning Stakeholder Comments from the Pre-workshop Stakeholder Sessions: • Preserve the City’s rich history and use it to market the community • Market Galesburg as a vibrant arts and culture community – become a destination, attract potential residents and visitors • Beautify the gateways and main corridors • City needs a “draw” – a destination to attract people 21 Priority Area: Economic Development and Job Creation The City of Galesburg’s central location and large size lend themselves to a bustling business district. Continued focus on revitalization and rehabilitation of downtown historic buildings will be important to achieving Galesburg’s economic and community development goals, including creating jobs, increasing tourism dollars, and recruiting new businesses that will complement and diversify the City’s business mix. The City can focus on areas of growth and expansion by employing tools such as façade grant programs, rehabilitation assistance, talent pipeline partnerships and other incentives to recruit and retain businesses. Economic Development and Job Creation-Related Goals from the Workshop: • Utilize partnership and relationships with Knox College and Carl Sandburg College to improve talent pipeline, youth mentorship, job creation and training. • Work to revisit and complete the National Railroad Hall of Fame to help City capitalize on the tourism industry. • Continue to increase the City’s investments and activities to foster and support broad economic development opportunities and actions in the community. • Capitalize on the City’s airport as an asset with regular maintenance, improvements, and enhanced marketing for tourism. • Review and update the City’s development ordinances. • Work with downtown businesses to make downtown a vibrant and active hub, including attracting outdoor dining and residential housing developers for mixed-use development. »E.g., boutique hotels downtown, events that draw crowds from all over the region • Foster and facilitate a redevelopment plan for the Sandburg mall and the area surrounding the mall. »Consider complete redevelopment and removal of obsolete or neglected structures and facilities at the mall • Work to make Galesburg a producer/exporter of renewable energy. Economic Development and Job Creation-Aligning Stakeholder Comments from the Pre-workshop Stakeholder Sessions: • Restoration of downtown »Include mixed-use residencies downtown »Provide incentives for downtown businesses for façade or other improvements • Attract development on the south side of town »o Reduce north/south divide • Redevelop the mall area • Address underemployment with job/life skills training 22 Priority Area: Community Engagement and Governance Community engagement and effective governance is vitally important for communities of all sizes. Whether it is listening to the needs of residents and businesses, delivering a cohesive message, or promoting the City’s events and activities, clear communication and active engagement are high priorities for City staff and elected officials. Highlighting what makes Galesburg unique to current and potential residents, businesses, and tourists is essential for successful marketing and branding of the community. Moreover, community engagement enhances transparency, which is fundamental to effective governance. Community Engagement and Governance-Related Goals from the Workshop: • Improve the City’s marketing and external communication strategies to ensure cohesive and accurate messaging to the variety of stakeholders, residents, and businesses across the community. »Consolidate communication avenues and establish a one-stop-shop for information, possibly a City newsletter »Ensure communication is accessible by all age groups »Create opportunities for engagement with community • Evaluate staffing needs throughout the organization to ensure that City departments are fully staffed to deliver the level of services desired/required. • Investigate ways to improve the recruitment and retention of city staff. »Consider additional benefits, sign-on bonuses, and other incentives • Work with other civic organizations and agencies in the City and region to improve the delivery of mental health resources and services. • Partner to support the creation of a Community Center to provide more recreational opportunities and community events. • Determine the feasibility of a new or expanded sports facilities complex. • Integrate and improve public safety communication by sharing more information about activities, incidents, awareness, and response about safety-related happenings in the community: »Develop awareness on approaches and resources available to residents and businesses »Share success stories • Establish a culture of long-term thinking/planning within the City Council to enhance Council teamwork, relationships, unity, and process. • Partner to help reduce and/or alleviate elements of poverty in the City by: »Evaluating current resources and exploring additional resources that might be available »Investing in actions, programs and approaches that can create/build more affordable housing and expand housing types/options »Develop a directory of resources, host roundtables with partner organizations, help to broaden the conversation • Continue to focus on strengthening the City’s intergovernmental partnerships. »E.g., Knox County, school districts, higher education, etc. 23 Community Engagement and Governance-Aligning Stakeholder Comments from the Pre-workshop Stakeholder Sessions: • Improve the community’s perception/attitude (e.g., “comeback kid” success story) • Unified vision and strategic direction »Council, staff, residents, businesses • Civic engagement – enhance community’s knowledge of elections and candidates • Enhance communication with the community »Use varied approaches »Share more with the community to help provide information on what is going on, available resources for residents and businesses, success stories (e.g., Regional Alternative Education Services) »Lack of local media (e.g., newspaper) – makes it harder to share what is going on in the community • Consider a community center – a gathering place for all residents from the youth to the elderly • Provide, or work with other agencies to deliver, mental health resources • Licensed childcare options/availability needed • More recreational opportunities for the youth (bowling, programming, gathering spaces, etc.) • Regional collaboration and approach »Work with other institutions such as the educational and civic organizations to create a workforce pipeline • Diversity in leadership positions »Opportunities for youth to get involved so they can become the next generation of leaders • Proactive vs reactive leadership »Build a culture of long-term thinking • Establish a community identity • Utilize and communicate existing community assets • Host more community events and market and advertise • Cohesive messaging and communication • Unified direction »Continue to enhance council teamwork, relationships, and process • Strengthen public safety - fear of crime/perception • Need to create a community brand – who are we? • Strong community pride – need to tell positive story • Striding in the right direction – improving atmosphere, need to keep momentum 24 Priority Area: Infrastructure and Housing Improvements Proactively planning and rehabilitating the City’s existing facilities along with strategic investments in the City’s water and power infrastructure are essential to ensuring City facilities are sustainable and can accommodate potential growth. Additionally, diversifying the housing stock is crucial to meeting the needs of both current and potential residents across various life stages. Exploring housing need, availability, and future developments will enable the City to adapt to, and plan for, changes in population, demographics, and tourism, positioning the community for long-term success. Infrastructure and Housing Improvements-Related Goals from the Workshop: • Develop a multi-year plan to invest in infrastructure improvements »Create a City-wide facility maintenance and replacement program for sidewalks, bike paths, roads, parks, drainage, water, and wastewater. • Enhance, improve, and build upon the City’s long relationship with the BNSF Railway. • Use the 2024 Galesburg housing study to develop policies, programs, and approaches for short- and long- term housing needs while working to improve the mix of housing and housing stock. • Explore funding source options for long-term road and infrastructure maintenance needs across the community. • Analyze and resolve the City’s water sourcing options and solutions for the next 60-100 years. • Evaluate equipment and techniques to comply with Per- and polyfluoroalkyl substances (PFAS) water treatment requirements. • Improve and expand the City’s garage/maintenance equipment facility. • Work to address power infrastructure needs and deficits and improve the power grid in and around the City with electric utilities/providers. • Use regional partnerships to create a plan for expanded multi-modal transportation throughout the City. • Strengthen the City’s wireless network to provide accessible and reliable high-speed internet throughout the community. • Consider assembling a temporary/part-time/consultant construction crew to address City facilities rehabilitation and maintenance needs. • Completion of the Railroad Hall of Fame mentioned in strategic goals. 25 Infrastructure and Housing Improvements-Aligning Stakeholder Comments from the Pre-workshop Stakeholder Sessions: • Improve roads and sidewalks »Enhance connectivity and walkability »East Main Corridor improvements • Improved housing – programs/incentives to rehab homes »Pursue new investment and incentive tools to stimulate new housing development • Housing stock variations and mix – a wide gap between the quality of housing can be seen throughout the community »More options/mix of options, type and quality could help attract/retain a younger demographic • Expanded public transportation network and services »Regional collaboration • Accessible and reliable high-speed internet throughout the community »Attract remote workers • Upkeep and better marketing of the airport as an asset • Revitalize/replace housing stock – single family, townhomes, modern apartment complexes • Help property owners clean up their properties • Update/upgrade potable water system to meet EPA standards User: Printed:12/10/2024 - 11:58AM shelms Transactions by Account Batch:00016.12.2024 Accounts Payable Account Number Vendor AmountDescription PO No Date 001-0000-10407-00 Gatehouse Media Notice to Bidders Acct#857927 - For ETSB 255.2412/10/2024 001-0000-10407-00 Amanda Jennings Cell Phone Allowance - AJennings 15.0011/30/2024 001-0000-10407-00 Stratus Networks, Inc 12/24 Service Acct# 7483 499.9512/10/2024 001-0000-10701-00 Steven W Davis 2025 Web Photography Services 3,750.0012/10/2024 001-0000-10701-00 Knox County Humane Society 01/25 - Animal Control Contract as per existing agreement 19,510.00 000009265612/10/2024 001-0000-10701-00 Granicus 2025 Renewal of Granicus streaming and closed captioning service 23,241.46 000009284612/10/2024 001-0000-10701-00 Supreme Radio Communications, Inc.Enterprise video licensing for months 2-24 347.76 000009280912/10/2024 001-0000-10801-00 Advance Auto Parts Hydraulic Filters 26.4011/30/2024 001-0000-10801-00 Advance Auto Parts Wiper Blades 77.0011/30/2024 001-0000-10801-00 Advance Auto Parts Oil Filters 10.6012/10/2024 001-0000-10801-00 Napa Auto Parts Hose Clamp 9.9012/10/2024 001-0000-10801-00 Koenig Body & Equipment, Inc.Spreader Lights 71.7311/30/2024 001-0000-10801-00 Supreme Radio Communications, Inc.Fuse Blocks 197.7011/30/2024 001-0000-20102-00 Stratus Networks, Inc 12/24 Service Acct# 7382 1,722.1112/10/2024 001-0000-22007-00 Illinois State Police 11/24 Offender Registration Fund 150.0012/10/2024 001-0000-22007-00 Illinois Office of the Attorney General 11/24 Sex Offender Registration Fund 0958 165.0012/10/2024 001-0000-22007-00 Treasurer of the State of Illinois 11/24 Sex Offender Registration Collections Fund 527 25.0012/10/2024 001-0000-31120-00 Mike Spencer Refund Pet Fee for a Replacement Tag 15.0012/10/2024 50,089.85Subtotal for Divison: 0000 001-0105-54000-00 Dwight White Cell Phone Allowance 30.0011/30/2024 001-0105-54000-00 Bradley Hix Cell Phone Allowance 30.0011/30/2024 001-0105-54000-00 Heather Acerra Cell Phone Allowance 30.0011/30/2024 001-0105-54000-00 Steve Cheesman Cell Phone Allowance 30.0011/30/2024 120.00Subtotal for Divison: 0105 001-0110-54000-00 Eric Hanson Cell Phone Allowance 30.0011/30/2024 001-0110-54000-00 Cathy St George Cell Phone Allowance 30.0011/30/2024 001-0110-54000-00 Kristin Robinson Cell Phone Allowance 30.0011/30/2024 AP-Transactions by Account (12/10/2024 - 11:58 AM)Page 1 24-8021 Account Number Vendor AmountDescription PO No Date 90.00Subtotal for Divison: 0110 001-0115-51000-00 SpringbrookSoftware LLC 11/24 Civic Pay 23.5012/10/2024 001-0115-54000-00 Kelli Bennewitz Cell Phone Allowance 30.0011/30/2024 001-0115-61000-00 Office Specialists, Inc.Ink for Stamp 9.3012/10/2024 62.80Subtotal for Divison: 0115 001-0120-54000-00 Janet Lytle Cell Phone Allowance 30.0011/30/2024 001-0120-54000-00 Jessica Pease Cell Phone Allowance 30.0011/30/2024 60.00Subtotal for Divison: 0120 001-0145-51010-00 James M Kelly, Attorney 10/24 Legal Services 627.0012/10/2024 001-0145-51010-00 James M Kelly, Attorney 10/24 Legal Services 1,419.0012/10/2024 2,046.00Subtotal for Divison: 0145 001-0160-51500-00 Gatehouse Media Public Notice - Acct#857927 92.8012/10/2024 001-0160-59516-00 Jeffrey R Cervantez 10/07 - AV Service 120.0012/10/2024 001-0160-59516-00 Jeffrey R Cervantez 11/04 - AV Service 120.0012/10/2024 001-0160-59516-00 Jeffrey R Cervantez 11/18 - AV Service 120.0012/10/2024 452.80Subtotal for Divison: 0160 001-0205-51000-00 SpringbrookSoftware LLC 11/24 Civic Pay 77.2512/10/2024 001-0205-51000-00 US Sterling Capital Corp., Inc.Union National Bank & Trust Co of Elgin 240.0012/10/2024 001-0205-54000-00 Bobbi Chockley Cell Phone Allowance 30.0011/30/2024 001-0205-54000-00 Tanya Billeter Cell Phone Allowance 30.0011/30/2024 001-0205-54000-00 Tifani Miller Cell Phone Allowance 30.0011/30/2024 001-0205-54000-00 Denise Hensley Cell Phone Allowance 30.0011/30/2024 001-0205-54000-00 Sharon Heiden Cell Phone Allowance 30.0011/30/2024 001-0205-54000-00 Jennifer O'hern Cell Phone Allowance 30.0011/30/2024 001-0205-61000-00 Office Specialists, Inc.Note Book 19.2512/10/2024 516.50Subtotal for Divison: 0205 001-0207-54000-00 Kerzi Peterson Cell Phone Allowance 30.0011/30/2024 001-0207-54000-00 Cameron Lemaster Cell Phone Allowance 30.0011/30/2024 001-0207-54000-00 Orlando Lucero Cell Phone Allowance 30.0011/30/2024 001-0207-61700-00 Galesburg Electric, Inc.PVC Adapter, Locknut, Screw Cover 94.2712/10/2024 184.27Subtotal for Divison: 0207 001-0305-51500-00 Gatehouse Media Public Notice - Acct#857927 78.1812/10/2024 AP-Transactions by Account (12/10/2024 - 11:58 AM)Page 2 Account Number Vendor AmountDescription PO No Date 001-0305-54000-00 Stephen Gugliotta Cell Phone Allowance 30.0011/30/2024 108.18Subtotal for Divison: 0305 001-0306-51000-00 SpringbrookSoftware LLC 11/24 Civic Pay 4.0012/10/2024 001-0306-54000-00 Eric Heiden Cell Phone Allowance 30.0011/30/2024 001-0306-54000-00 Tammera Matejewski Cell Phone Allowance 30.0011/30/2024 001-0306-54000-00 Daniel Koerner Cell Phone Allowance 30.0011/30/2024 001-0306-54000-00 Robert Elsbury Cell Phone Allowance 30.0011/30/2024 001-0306-54000-00 Richard Slagel Cell Phone Allowance 30.0011/30/2024 001-0306-55400-00 Kendall Zimmerman Removal/Disposal Yard Debris/Trash - 676 N Prairie St 200.0012/10/2024 001-0306-55400-00 Kendall Zimmerman Removal/Disposal Yard Debris/Trash - 848 E Third 50.0012/10/2024 001-0306-55400-00 Werner Restoraton Services, Inc.Board UP Service - 239 S Cherry St 627.0912/10/2024 001-0306-55400-00 Kendall Zimmerman Removal/Disposal Yard Debris/Trash - 787 E South St 100.0012/10/2024 001-0306-55400-00 Kendall Zimmerman Removal/Disposal Yard Debris/Trash - 227 Maple Ave 100.0012/10/2024 001-0306-55400-00 Kendall Zimmerman Removal/Disposal Yard Debris/Trash - 213 Fulton 150.0012/10/2024 001-0306-55400-00 Kendall Zimmerman Call out Fee - 625 Indiana Dr 50.0012/10/2024 001-0306-55400-00 Kendall Zimmerman Removal/Disposal Yard Debris/Trash -1171 S Seminary 75.0012/10/2024 001-0306-61000-00 Office Specialists, Inc.Staple Remover 3.5512/10/2024 001-0306-61000-00 Office Specialists, Inc.Calendar 14.1912/10/2024 1,523.83Subtotal for Divison: 0306 001-0410-51000-00 SpringbrookSoftware LLC 11/24 Civic Pay 4.0012/10/2024 001-0410-51500-00 Gatehouse Media Notice to Bidders Acct#857927 112.2312/10/2024 001-0410-54000-00 Jamie West Cell Phone Allowance 30.0011/30/2024 001-0410-54000-00 Aaron Gavin Cell Phone Allowance 30.0011/30/2024 001-0410-54000-00 Matthew Kirgan Cell Phone Allowance 30.0011/30/2024 206.23Subtotal for Divison: 0410 001-0445-54000-00 Myron Miller Cell Phone Allowance 30.0011/30/2024 001-0445-55500-00 Certified Laboratories Tank Tonic 977.4512/10/2024 001-0445-55700-00 Royal Cleaning Services 12/24 Janitorial Services 292.0012/10/2024 001-0445-57500-00 Vestis 12/24 Service 85.6812/10/2024 001-0445-57500-00 Vestis 11/24 Service 85.6812/10/2024 001-0445-62500-00 Pomp's Tire - Galesburg Tires #183 160.5912/10/2024 001-0445-63000-00 Grainger, Inc.Face Shield Visor 31.4111/08/2024 001-0445-63000-00 Lawson Products, Inc.Screws 15.5412/10/2024 001-0445-63000-00 Napa Auto Parts Cable Tie 34.7712/10/2024 001-0445-63000-00 Batterton Auto Supply Steel Weights 20.9012/10/2024 AP-Transactions by Account (12/10/2024 - 11:58 AM)Page 3 Account Number Vendor AmountDescription PO No Date 001-0445-63000-00 Airgas Mid America Inc Industrial Acetylene, Industrial Oxygen 286.8612/10/2024 001-0445-63000-00 Lawson Products, Inc.Washers, Nuts, Screws 684.2612/10/2024 001-0445-66500-00 Grainger, Inc.Spray Gun 65.8512/10/2024 001-0445-66500-00 Advance Auto Parts Suction Gun 17.6412/10/2024 2,788.63Subtotal for Divison: 0445 001-0450-54000-00 Marc McMahon Cell Phone Allowance 30.0011/30/2024 001-0450-54000-00 JR Knaack Cell Phone Allowance 30.0011/30/2024 001-0450-54000-00 Justin McNaught Cell Phone Allowance 30.0011/30/2024 001-0450-55500-00 Nichols Diesel Service, Inc State & Fed Tests #301 57.5012/10/2024 001-0450-55500-00 Nichols Diesel Service, Inc State & Fed Tests #110 57.5012/10/2024 001-0450-55700-00 American Pest Control Inc 11/24 Pest Control 50.0012/10/2024 001-0450-55700-00 Lambasio, Inc.Service call for Possible Gas Leak 120.0012/10/2024 001-0450-55700-00 Getz Fire Equipment Co., Inc.On Site Services, Annual Fire Extinguisher Services 116.5012/10/2024 001-0450-55700-00 Getz Fire Equipment Co., Inc.HydrotestExtinguisher, Installation of Extinguisher, Service Ext 388.2012/10/2024 001-0450-62500-00 Centre State International Trucks, Inc Oil Tubes #115 59.7412/10/2024 001-0450-62500-00 Nichols Diesel Service, Inc Brake Chamber #115 198.4012/10/2024 001-0450-62500-00 Nichols Diesel Service, Inc Seal #115 30.2212/10/2024 001-0450-65000-00 Hotsy Equipment Co Power Shine Detergent 432.7012/10/2024 1,600.76Subtotal for Divison: 0450 001-0505-54500-00 Bernel Cowan Lodging - Fire&Police Comm'r Fall Seminar - Naperville- BCowan 194.0112/10/2024 001-0505-54500-00 Tom Peters Meals -Lodging-Mileage -Fire & Police Seminar- Naperville TPet 448.4412/10/2024 642.45Subtotal for Divison: 0505 001-0510-54000-00 Jason Shaw Cell Phone Allowance 30.0011/30/2024 001-0510-54000-00 Mark McLaughlin Cell Phone Allowance 30.0011/30/2024 001-0510-54000-00 Ryne Sage Cell Phone Allowance 30.0011/30/2024 001-0510-54000-00 Kyle A Winbigler Cell Phone Allowance 30.0011/30/2024 001-0510-54000-00 Magdalene Semington Cell Phone Allowance 30.0011/30/2024 001-0510-54000-00 Anthony Oligney-Estill Cell Phone Allowance 30.0011/30/2024 001-0510-54000-00 Steffanie Cromien Cell Phone Allowance 30.0011/30/2024 001-0510-54000-00 Bryan Anderson Cell Phone Allowance 30.0011/30/2024 001-0510-54000-00 Christopher Hootman Cell Phone Allowance 30.0011/30/2024 001-0510-54000-00 Patrick Kisler Cell Phone Allowance 30.0011/30/2024 001-0510-54000-00 Lane Mings Cell Phone Allowance 30.0011/30/2024 001-0510-54000-00 Russell Idle Cell Phone Allowance 30.0011/30/2024 001-0510-54000-00 Kevin Legate Cell Phone Allowance 30.0011/30/2024 AP-Transactions by Account (12/10/2024 - 11:58 AM)Page 4 Account Number Vendor AmountDescription PO No Date 001-0510-54500-00 Maverick Rasmussen Meals - Extreme Ownership Class - EMoline Il - MRasmussen 7.0012/10/2024 001-0510-54500-00 Kyle A Winbigler Meals - Staff & Command - Peoria IL - KWinbigler 35.0012/10/2024 001-0510-54500-00 Kyle A Winbigler Meals - Staff & Command - Peoria IL - KWinbigler 35.0012/10/2024 001-0510-54500-00 Nathan Lewis Meals - Extreme Ownership Class - E Moline - NLewis 7.0012/10/2024 001-0510-54500-00 Lane Mings Meals - Staff & Command - Peoria Il - LMings 35.0012/10/2024 001-0510-55700-00 American Pest Control Inc 11/24 Pest Control 55.0012/10/2024 001-0510-55800-00 Supreme Radio Communications, Inc.Enterprise Video LIcense Software for December 2024 15.12 000009280912/10/2024 001-0510-57500-00 JSLK Management Iowa LLC 2024 Police Uniform Cleaning- Taylor 3.86 000009263812/10/2024 001-0510-57500-00 JSLK Management Iowa LLC 2024 Police Uniform Cleaning - Anderson 10.25 000009263812/10/2024 001-0510-61000-00 Office Specialists, Inc.Toner 111.3512/10/2024 001-0510-61700-00 Supreme Radio Communications, Inc.GETAC computer and camera system for patrol unit #29 11,332.21 000009280912/10/2024 001-0510-61700-00 Motorola Solutions, Inc Dual Band StarCom radio for unit #29 8,363.01 000009281012/10/2024 001-0510-69000-00 Ray O'Herron Co., Inc.Ammo 3,980.0012/10/2024 24,379.80Subtotal for Divison: 0510 001-0550-54000-00 Amanda Jennings Cell Phone Allowance 15.0011/30/2024 001-0550-54000-00 Raymundo Martinez Cell Phone Allowance 30.0011/30/2024 001-0550-54000-00 Joshua Simons Cell Phone Allowance 30.0011/30/2024 001-0550-61000-00 Office Specialists, Inc.Storage Boxes 72.2612/10/2024 001-0550-61000-00 Office Specialists, Inc.Calendars 6.7812/10/2024 001-0550-61000-00 Office Specialists, Inc.Calendars 64.1012/10/2024 001-0550-61000-00 Office Specialists, Inc.Hanging Folders, Note Pads 45.9212/10/2024 001-0550-61000-00 Office Specialists, Inc.Folders 47.0212/10/2024 001-0550-61000-00 Office Specialists, Inc.Copy Paper 244.9512/10/2024 001-0550-61800-00 Office Specialists, Inc.HON HCG desk for Galesburg/Knox County sex offender registrar 2,310.59 000009284012/10/2024 2,866.62Subtotal for Divison: 0550 001-0605-51000-00 Klingner & Associates, P.C. - Architectural GroupDesign Services for replacement of water piping and review gener 2,834.50 000009269512/10/2024 001-0605-54000-00 James Pendergast Cell Phone Allowance 30.0011/30/2024 001-0605-54000-00 Randy Hovind Cell Phone Allowance 30.0011/30/2024 001-0605-54000-00 John Seitz Cell Phone Allowance 30.0011/30/2024 001-0605-54000-00 Derek Perry Cell Phone Allowance 30.0011/30/2024 001-0605-54000-00 Jennifer Moser Cell Phone Allowance 30.0011/30/2024 001-0605-54000-00 Donald Brackett Cell Phone Allowance 30.0011/30/2024 001-0605-55500-00 MacQueen Emergency Annual Jaws of Life Service 1,530.0012/10/2024 001-0605-55500-00 Getz Fire Equipment Co., Inc.Annual Extinguisher Service 70.0012/10/2024 001-0605-55700-00 American Pest Control Inc 11/24 Pest Control 55.0012/10/2024 AP-Transactions by Account (12/10/2024 - 11:58 AM)Page 5 Account Number Vendor AmountDescription PO No Date 001-0605-55700-00 American Pest Control Inc 11/24 Pest Control 55.0012/10/2024 001-0605-55700-00 American Pest Control Inc 11/24 Pest Control 55.0012/10/2024 001-0605-55700-00 American Pest Control Inc 11/24 Pest Control 55.0012/10/2024 001-0605-61000-00 Office Specialists, Inc.Pens 12.4612/10/2024 001-0605-61000-00 Office Specialists, Inc.Address Labels 12.9912/10/2024 001-0605-65000-00 Office Specialists, Inc.Dish Soap 63.8412/10/2024 001-0605-65000-00 Office Specialists, Inc.Detergent 60.0112/10/2024 001-0605-65000-00 Office Specialists, Inc.Paper Towels 80.6812/10/2024 001-0605-66500-00 AEC Fire Safety & Security, Inc.Extrication equipment, spreader, 2 batteries, charger 21,627.30 000009283612/10/2024 001-0605-67500-00 Ray O'Herron Co., Inc.Badge - Pendergast 151.4012/10/2024 001-0605-67500-00 Ray O'Herron Co., Inc.Name Bar - Walters 22.0112/10/2024 001-0605-67500-00 Ray O'Herron Co., Inc.Badge - Walters 143.3212/10/2024 001-0605-67500-00 Ray O'Herron Co., Inc.Class A Pants - CHarkey 68.9712/10/2024 001-0605-67500-00 Ray O'Herron Co., Inc.Class A Badge - CHarkey 94.8712/10/2024 001-0605-67500-00 Midwest Uniform Supply, Inc Shirts - NWalters 175.2012/10/2024 001-0605-67500-00 Midwest Uniform Supply, Inc Shirt - DBrackett 72.0012/10/2024 001-0605-67500-00 Midwest Uniform Supply, Inc Pants- BSchmitt 119.9812/10/2024 001-0605-67500-00 Midwest Uniform Supply, Inc Caps - DClayton 8.8012/10/2024 001-0605-67500-00 Midwest Uniform Supply, Inc Shirts - JPendergast 167.3012/10/2024 001-0605-67500-00 Midwest Uniform Supply, Inc Shirts - JPendergast 178.6012/10/2024 001-0605-67500-00 Midwest Uniform Supply, Inc Shirt - DCervantez 14.0012/10/2024 001-0605-67500-00 Midwest Uniform Supply, Inc Shirts - NWalters 72.0012/10/2024 001-0605-67500-00 MacQueen Emergency Helmets - Pendergast, Walters 825.4012/10/2024 001-0605-67500-00 Midwest Uniform Supply, Inc Caps - JPendergast 49.5012/10/2024 001-0605-67500-00 Midwest Uniform Supply, Inc Pants - DHelvey 59.9912/10/2024 001-0605-67500-00 Midwest Uniform Supply, Inc Caps - HStevenson 16.5012/10/2024 001-0605-67500-00 Midwest Uniform Supply, Inc Stocking Hat - CHarkey 12.0012/10/2024 001-0605-67500-00 Midwest Uniform Supply, Inc Shirts - JMoffitt 95.5412/10/2024 001-0605-67500-00 Midwest Uniform Supply, Inc Shirts - BSchmitt 100.0012/10/2024 001-0605-67500-00 Midwest Uniform Supply, Inc Shirts - DPerry 130.0112/10/2024 001-0605-68600-00 Office Specialists, Inc.Nitrile Glvoes 68.7312/10/2024 29,337.90Subtotal for Divison: 0605 Subtotal for Fund 001 117,076.62 011-0000-66000-00 Roanoke Concrete Products Co 2024 Supply of PP2 Mix Concrete 479.25 000009261812/10/2024 011-0000-66000-00 Roanoke Concrete Products Co Addt'l Supply of Flowable Mix 2 164.50 000009261212/10/2024 AP-Transactions by Account (12/10/2024 - 11:58 AM)Page 6 Account Number Vendor AmountDescription PO No Date 011-0000-66000-00 Roanoke Concrete Products Co 2024 Supply of PP2 Mix Concrete 319.50 000009261812/10/2024 011-0000-66000-00 Roanoke Concrete Products Co Addt'l Supply of Flowable Mix 2 370.13 000009261212/10/2024 011-0000-66000-00 Roanoke Concrete Products Co Addt'l Supply of Flowable Mix 2 370.13 000009261212/10/2024 011-0000-66000-00 Roanoke Concrete Products Co Addt'l Supply of Flowable Mix 2 493.50 000009261212/10/2024 011-0000-66000-00 Roanoke Concrete Products Co 2024 Supply of Concrete 277.00 000009261612/10/2024 011-0000-66000-00 Roanoke Concrete Products Co 2024 Supply of PP2 Mix Concrete 319.50 000009261812/10/2024 011-0000-66000-00 Roanoke Concrete Products Co 2024 Supply of PP2 Mix Concrete 319.50 000009261812/10/2024 3,113.01Subtotal for Divison: 0000 Subtotal for Fund 011 3,113.01 013-0000-51000-00 Nelson\Nygaard Consulting Associates Inc Comprehensive Transit Study for Public Transportation 5,830.69 000009265311/30/2024 013-0000-76000-00 Gunther Construction Co., a div. of UCM, IncSimmons Street Streetscape and Parking Lot H Project 46,537.80 000009283112/10/2024 013-0000-76000-00 Hutchison Engineering, Inc ITEP Lake Storey Path Phase II Engineering 25,107.83 000009254212/10/2024 77,476.32Subtotal for Divison: 0000 Subtotal for Fund 013 77,476.32 014-0000-51000-00 Geotechnics Material testing for the 2024 Construction Season 323.50 000009267512/10/2024 014-0000-64500-00 Galesburg Electric, Inc.Connectors, Photocell 211.2312/10/2024 014-0000-64500-00 Galesburg Electric, Inc.Breakers 200.0012/10/2024 014-0000-64500-00 Galesburg Electric, Inc.Power Relay 155.4912/10/2024 014-0000-64500-00 Grainger, Inc.Return D-Shackle -100.1711/08/2024 014-0000-64500-00 Grainger, Inc.Sign Brackets 61.2012/10/2024 014-0000-66000-00 Galesburg Builders Supply, Inc 2024 Supply of High Performance Patch Mix 953.55 000009262312/10/2024 014-0000-66000-00 Core & Main Pipes 1,591.0212/10/2024 014-0000-66000-00 Gierke-Robinson Co Saw Blades 512.7012/10/2024 014-0000-66500-00 Grainger, Inc.Roller Head Pipe Stand 138.4312/10/2024 014-0000-66500-00 Grainger, Inc.Roller Head Pipe Stand 138.4312/10/2024 4,185.38Subtotal for Divison: 0000 Subtotal for Fund 014 4,185.38 016-0000-54000-00 Michael Ingles Cell Phone Allowance 30.0011/30/2024 016-0000-54000-00 Travis Smith Cell Phone Allowance 30.0011/30/2024 016-0000-54000-00 Paul Vannaken Cell Phone Allowance 30.0011/30/2024 016-0000-54000-00 Andrew Swanson Cell Phone Allowance 30.0011/30/2024 AP-Transactions by Account (12/10/2024 - 11:58 AM)Page 7 Account Number Vendor AmountDescription PO No Date 016-0000-54000-00 Timothy Spitzer Cell Phone Allowance 30.0011/30/2024 016-0000-54000-00 Allison Buccalo Cell Phone Allowance 30.0011/30/2024 016-0000-61700-00 Motorola Solutions, Inc Dual Band StarCom radio for unit #34 8,363.01 000009281012/10/2024 016-0000-83100-00 Galesburg PBPA Unit #19 Shop with a Cop Program With PBPA 1,000.0012/10/2024 9,543.01Subtotal for Divison: 0000 Subtotal for Fund 016 9,543.01 018-0000-55500-00 Ratliff Brothers & Co., Inc.Set up Pump - Grove 475B 1,250.0012/10/2024 018-0000-62500-00 Martin Equipment of Illinois, Inc.Hose #125 326.5812/10/2024 1,576.58Subtotal for Divison: 0000 Subtotal for Fund 018 1,576.58 019-0000-10701-00 IL Campground Association 2025 Camping Directory Half Page Advertisement 1,000.0012/10/2024 019-0000-20102-00 Stratus Networks, Inc 12/24 Service Acct# 7382 288.3612/10/2024 1,288.36Subtotal for Divison: 0000 019-1905-51500-00 Gatehouse Media Notice to Bidders Acct#857927 210.8412/10/2024 019-1905-54000-00 Don Miles Cell Phone Allowance 30.0011/30/2024 019-1905-54000-00 Hannah Johnson Cell Phone Allowance 30.0011/30/2024 019-1905-54000-00 Angela Buchen Cell Phone Allowance 30.0011/30/2024 019-1905-59511-00 Galesburg Tourism Fund 11/24 Tourism Agreement 15,833.3312/10/2024 019-1905-59511-00 Galesburg Tourism Fund 12/24 Marketing Payment 2,500.0012/10/2024 18,634.17Subtotal for Divison: 1905 019-1910-55700-00 American Pest Control Inc 11/24 Pest Control 50.0012/10/2024 019-1910-55700-00 Kone, Inc Provide Access to Hoistway for Inspector and Assist Inspector 340.0012/10/2024 019-1910-55700-00 Hein Construction Co, Inc Modified Wood & Steel Doors Due to Floor Install 3,664.2812/10/2024 019-1910-65000-00 Office Specialists, Inc.Paper Towels 96.6912/10/2024 4,150.97Subtotal for Divison: 1910 019-1911-55700-00 Kone, Inc Repair Elevator - PD 325.6712/10/2024 019-1911-55700-00 American Pest Control Inc 11/24 Pest Control 65.0012/10/2024 019-1911-57500-00 Vestis 11/24 Service 26.7012/10/2024 019-1911-57500-00 Vestis 11/24 Service 26.7012/10/2024 019-1911-65000-00 Office Specialists, Inc.Paper Towel 164.8012/10/2024 019-1911-65000-00 Office Specialists, Inc.Toilet Paper, Toilet Bowl Rim Hangers 69.1412/10/2024 AP-Transactions by Account (12/10/2024 - 11:58 AM)Page 8 Account Number Vendor AmountDescription PO No Date 019-1911-65000-00 Office Specialists, Inc.Paper Towels 82.4012/10/2024 019-1911-65000-00 Office Specialists, Inc.Disinfectant Wipes, Toilet Paper 112.1012/10/2024 019-1911-66000-00 Galesburg Electric, Inc.Light 200.5012/10/2024 019-1911-66000-00 Galesburg Electric, Inc.Lamp Holders, Workshop Lights, Switch Plate, Filter Inserts 292.0812/10/2024 1,365.09Subtotal for Divison: 1911 019-1915-51000-00 Egan Law LLC Prepare and File 990N and 99-E, Review Letter&Docs from IRS 515.0012/10/2024 019-1915-51000-00 Lacky Monument Co.Engraving Vet Bricks - 13 Names 416.0012/10/2024 019-1915-54000-00 Jason Asbury Cell Phone Allowance 30.0011/30/2024 019-1915-54000-00 Michael Markley Cell Phone Allowance 30.0011/30/2024 019-1915-54000-00 Aaron Young Cell Phone Allowance 30.0011/30/2024 019-1915-55500-00 Nichols Diesel Service, Inc State & Fed Tests #506 57.5012/10/2024 019-1915-55700-00 American Pest Control Inc 11/24 Pest Control 70.0012/10/2024 019-1915-55700-00 Royal Cleaning Services 12/24 Janitorial Services 588.0012/10/2024 019-1915-56000-00 Terry Allen, Inc Bersie Williams Area - Toilet Rental - 1 Regular Unit 4/1/24-10/ 80.00 000009263612/10/2024 019-1915-56000-00 Terry Allen, Inc Peck Park - Toilet Rental - 1 Regular Unit 4/1/24-10/31/24 40.00 000009263612/10/2024 019-1915-56000-00 Terry Allen, Inc Peck Park - Toilet Rental - 1 Regular Unit 4/1/24-10/31/24 40.00 000009263612/10/2024 019-1915-56000-00 Terry Allen, Inc Bersie Williams Area - Toilet Rental - 1 Regular Unit. One Day 50.00 000009263612/10/2024 019-1915-56000-00 Terry Allen, Inc Portable Restrooms - Bateman Park 170.0012/10/2024 019-1915-57500-00 Vestis 11/24 Service 74.8612/10/2024 019-1915-57500-00 Vestis 12/24 Service 74.8612/10/2024 019-1915-57500-00 Vestis 11/24 Service 74.8612/10/2024 019-1915-62500-00 Burns Trailer Sales Locks #524 225.0012/10/2024 019-1915-62500-00 Martin, Inc Window Glass #515 562.5512/10/2024 019-1915-62500-00 Pomp's Tire - Galesburg Tires #512 561.0812/10/2024 019-1915-62510-00 Herr Petroleum Corp 195.7 Gal Diesel #2, 50 Gal Diesel #1, 256 Gal Unleaded Ethanol 1,401.36 000009262812/10/2024 019-1915-65500-00 Game Time Playground Equipment 1,993.8512/10/2024 019-1915-66000-00 Galesburg Electric, Inc.Conduits, PVC Elbow 13.1312/10/2024 7,098.05Subtotal for Divison: 1915 019-1920-54000-00 Bryan Luedtke Cell Phone Allowance 30.0011/30/2024 019-1920-57500-00 Vestis 11/24 Service 58.2312/10/2024 019-1920-57500-00 Vestis 12/24 Service 58.2312/10/2024 019-1920-57500-00 Vestis 11/24 Service 58.2312/10/2024 019-1920-64125-00 Butch's Pizza Inc.Misc Pizzas 33.0012/10/2024 019-1920-66000-00 Lacky Monument Co.Engraving Bunker Links Pavers - 7 Names 280.0012/10/2024 517.69Subtotal for Divison: 1920 AP-Transactions by Account (12/10/2024 - 11:58 AM)Page 9 Account Number Vendor AmountDescription PO No Date 019-1925-56000-00 Terry Allen, Inc Campground - Toilet Rental - 4 Regular Units 4/11/24 - 10/14/24. 80.00 000009263612/10/2024 019-1925-56000-00 Terry Allen, Inc Campground - Toilet Rental - 4 Regular Units 4/11/24 - 10/14/24. 240.00 000009263612/10/2024 320.00Subtotal for Divison: 1925 019-1935-57500-00 Vestis 11/24 Service 454.4812/10/2024 019-1935-57500-00 Vestis 12/24 Service 454.4812/10/2024 019-1935-59300-00 UniFirst First Aid Corp Refill of First Aid Supplies 127.3512/10/2024 1,036.31Subtotal for Divison: 1935 019-1940-51400-00 United Hoops Registration for River 2 River League - Boys Jr. Streaks 5/6th G 395.0012/10/2024 395.00Subtotal for Divison: 1940 019-1945-55700-00 Getz Fire Equipment Co., Inc.Installation of Fire Extinguishers, On Site Services 345.9012/10/2024 345.90Subtotal for Divison: 1945 019-1955-65000-00 Office Specialists, Inc.Trash Bags, Paper Towels 131.5012/10/2024 131.50Subtotal for Divison: 1955 019-1965-51000-00 Lacky Monument Co.Date of Passing Lettering- Isabel Burks, Charles Thomas 500.0012/10/2024 019-1965-54000-00 Roger Darst Cell Phone Allowance 30.0011/30/2024 019-1965-55700-00 Getz Fire Equipment Co., Inc.Annual Extinguisher Service 70.0012/10/2024 019-1965-57500-00 Vestis 11/24 Service 39.4412/10/2024 019-1965-57500-00 Vestis 12/24 Service 39.4412/10/2024 678.88Subtotal for Divison: 1965 019-1975-54000-00 Cris Fones Cell Phone Allowance 30.0011/30/2024 019-1975-62500-00 Advance Auto Parts Battery #148 112.5512/10/2024 019-1975-65500-00 Martin, Inc Chainsaw Guide Bar, Chain Loop for Chain Saw 50.9912/10/2024 193.54Subtotal for Divison: 1975 Subtotal for Fund 019 36,155.46 020-0000-55700-00 Getz Fire Equipment Co., Inc.Installation of Fire Extinguishers and Test 1,269.0012/10/2024 1,269.00Subtotal for Divison: 0000 Subtotal for Fund 020 1,269.00 023-0000-20103-00 USA Excavation & Recycling LLC Retainage - Demolition of 2069 Windish Dr as per bid -6,000.0012/10/2024 023-0000-55420-00 USA Excavation & Recycling LLC Demolition of 2069 Windish Dr as per bid specifications 60,000.00 000009283812/10/2024 AP-Transactions by Account (12/10/2024 - 11:58 AM)Page 10 Account Number Vendor AmountDescription PO No Date 54,000.00Subtotal for Divison: 0000 Subtotal for Fund 023 54,000.00 024-0000-51000-00 Novogradac & Company LLP Galesburg, IL Comprehensive Housing Study 25,000.00 000009249812/10/2024 25,000.00Subtotal for Divison: 0000 Subtotal for Fund 024 25,000.00 030-0000-10701-00 Airgas Mid America Inc 01/25 -11/25 - Cylinder Lease 199.8311/30/2024 030-0000-20102-00 Stratus Networks, Inc 12/24 Service Acct# 7382 122.7912/10/2024 322.62Subtotal for Divison: 0000 030-0320-51500-00 WGIL/WAAG/WLSR, Inc.11/24 Radio Ads 200.0011/30/2024 030-0320-51500-00 WGIL/WAAG/WLSR, Inc.10/24 Radio Ads 200.0010/31/2024 030-0320-55500-00 Galesburg Communications, Inc.Replaced Battery and Checked Antenna 133.0010/31/2024 030-0320-55500-00 Galesburg Communications, Inc.Replaced Antenna 110.3510/31/2024 030-0320-61000-00 Office Specialists, Inc.Canned Air 17.4611/30/2024 030-0320-61000-00 Office Specialists, Inc.Pencils, Pens, Binder Clips 60.2111/30/2024 030-0320-61000-00 Office Specialists, Inc.Planners 36.8911/30/2024 030-0320-61000-00 Office Specialists, Inc.Plates, Plasticware 163.9211/30/2024 030-0320-62500-00 Napa Auto Parts Blower Motor Assy, Switch, Resistor 115.1611/30/2024 030-0320-62500-00 Napa Auto Parts Rotors, Fleet Pads 422.5311/30/2024 030-0320-62500-00 Napa Auto Parts Fleet Pads 97.5911/30/2024 030-0320-62500-00 Napa Auto Parts Gaskets, Drain Plugs 64.9011/30/2024 030-0320-62500-00 Napa Auto Parts Fleet Pads 80.1911/30/2024 030-0320-62500-00 Napa Auto Parts Fleet Pads 97.5911/30/2024 030-0320-62510-00 Herr Petroleum Corp 235.2 Gal Unleaded Ethanol 602.84 000009262710/31/2024 030-0320-62510-00 Herr Petroleum Corp 261.1 Gal Unleaded Ethanol 653.02 000009262711/30/2024 030-0320-62510-00 Herr Petroleum Corp 166.4 Gal Unleaded Ethanol 416.19 000009262711/30/2024 030-0320-62510-00 Herr Petroleum Corp 381.1 Gal Unleaded Ethanol 976.79 000009262711/30/2024 030-0320-62510-00 Herr Petroleum Corp 297.5 Gal Unleaded Ethanol 717.74 000009262711/30/2024 030-0320-62510-00 Herr Petroleum Corp 326.1 Gal Unleaded Ethanol 813.82 000009262711/30/2024 030-0320-62510-00 Herr Petroleum Corp 202.6 Gal Unleaded Ethanol 498.00 000009262711/30/2024 030-0320-62510-00 Herr Petroleum Corp 229.7 Gal Unleaded Ethanol 573.24 000009262711/30/2024 030-0320-62510-00 Herr Petroleum Corp 238.4 Gal Unleaded Ethanol 575.16 000009262711/30/2024 030-0320-62510-00 Herr Petroleum Corp 313.3 Gal Unleaded Ethanol 770.11 000009262711/30/2024 030-0320-63000-00 Napa Auto Parts Oil Filters 93.9011/30/2024 AP-Transactions by Account (12/10/2024 - 11:58 AM)Page 11 Account Number Vendor AmountDescription PO No Date 030-0320-65000-00 Office Specialists, Inc.Paper Towels, Toilet Paper 225.1011/30/2024 030-0320-65000-00 Office Specialists, Inc.Trash Bags, Paper Towles 97.3110/31/2024 030-0320-67500-00 Office Specialists, Inc.Nitrile Gloves 134.0211/30/2024 8,947.03Subtotal for Divison: 0320 030-0370-51500-00 Allegra Print & Imaging Disabled & Student Punch Cards, One Day Passes 143.0011/30/2024 030-0370-51500-00 WGIL/WAAG/WLSR, Inc.10/24 Radio Ads 200.0010/31/2024 030-0370-51500-00 WGIL/WAAG/WLSR, Inc.11/24 Radio Ads 200.0011/30/2024 030-0370-54000-00 Kraig Boynton Cell Phone Allowance 30.0011/30/2024 030-0370-55500-00 Nichols Diesel Service, Inc State & Fed Tests #405 58.5011/30/2024 030-0370-55500-00 Nichols Diesel Service, Inc State & Fed Tests #470 58.5010/31/2024 030-0370-55500-00 Nichols Diesel Service, Inc State & Fed Tests #2004 58.5011/30/2024 030-0370-55500-00 Centre State International Trucks, Inc Performed Shift Adapt Procedure 627.7511/30/2024 030-0370-55500-00 Centre State International Trucks, Inc Service Call for Transmission Light - Low Power 1,036.9511/30/2024 030-0370-55700-00 Lock & Key Shop LLC Commerical Locksmith Services 120.0010/31/2024 030-0370-55700-00 Lambasio, Inc.Repair Water Line under Water Heater 120.0011/30/2024 030-0370-55700-00 Bailey Excavating, Inc Pulled old Urinal, Installed New Urinal 1,289.9611/30/2024 030-0370-55700-00 American Pest Control Inc 11/24 Pest Service 65.0011/30/2024 030-0370-55700-00 American Pest Control Inc 11/24 Pest Service 65.0011/30/2024 030-0370-55700-00 American Pest Control Inc 10/24 Service 65.0010/31/2024 030-0370-56000-00 Airgas Mid America Inc 12/24 - Cylinder Lease 18.1711/30/2024 030-0370-57500-00 Cintas, Inc 11/24 Service 317.1911/30/2024 030-0370-57500-00 Cintas, Inc 11/24 Service 198.7211/30/2024 030-0370-57500-00 Cintas, Inc 11/24 Service 317.1911/30/2024 030-0370-57500-00 Cintas, Inc 11/24 Service 244.5511/30/2024 030-0370-57500-00 Cintas, Inc 11/24 Service 317.1911/30/2024 030-0370-62500-00 Napa Auto Parts Disc Brake Pad, Rotors 513.2811/30/2024 030-0370-62500-00 Gillig Fittings, Elbow O-Rings 33.7610/31/2024 030-0370-62500-00 Napa Auto Parts Bracketed Caliper, Core Deposit 128.1211/30/2024 030-0370-62500-00 Napa Auto Parts Turbo Sensor 110.0411/30/2024 030-0370-62500-00 Napa Auto Parts Wheel Nut 3.9011/30/2024 030-0370-62500-00 Napa Auto Parts Oil Filters 60.7611/30/2024 030-0370-62500-00 Napa Auto Parts Boxed Miniatures 3.7811/30/2024 030-0370-62500-00 Napa Auto Parts Hose Clamps 12.3811/30/2024 030-0370-62500-00 Thompson Truck & Trailer, Inc Gasket 15.2111/30/2024 030-0370-62500-00 O'Reilly Auto Parts Air Filter, Flow Sensor 160.6511/30/2024 030-0370-62500-00 Thompson Truck & Trailer, Inc Direct Mount, Air Filter 102.6411/30/2024 AP-Transactions by Account (12/10/2024 - 11:58 AM)Page 12 Account Number Vendor AmountDescription PO No Date 030-0370-62510-00 Herr Petroleum Corp 325.7 Gal Diesel #2, Winter Fuel Additive 950.63 000009262711/30/2024 030-0370-62510-00 Herr Petroleum Corp 74 Gal Diesel #1, 394 Gal Diesel #2, Winter Addative 1,442.92 000009262711/30/2024 030-0370-62510-00 Herr Petroleum Corp 571.4 Gal Diesel #2 1,680.93 000009262711/30/2024 030-0370-62510-00 Herr Petroleum Corp 348.3 Gal Diesel #2 1,014.14 000009262711/30/2024 030-0370-62510-00 Herr Petroleum Corp 259.6 Gal Diesel #2 719.54 000009262711/30/2024 030-0370-63000-00 Napa Auto Parts Drain Plug 2.7310/31/2024 030-0370-63000-00 Napa Auto Parts Gear Oil 42.2710/31/2024 030-0370-63000-00 Midstate Manufacturing, Inc.O-Rings, Adapters 38.0010/31/2024 030-0370-63000-00 Napa Auto Parts Brake Parts Cleaner 69.4810/31/2024 030-0370-63000-00 Napa Auto Parts Mat Pads 259.9811/30/2024 030-0370-65000-00 Office Specialists, Inc.Dish Soap 106.9111/30/2024 030-0370-65500-00 Airgas Mid America Inc Industrial Propane for Forklift 146.2311/30/2024 030-0370-66000-00 Lock & Key Shop LLC Keys 10.6210/31/2024 030-0370-66000-00 Galesburg Electric, Inc.Toggle Switches 6.0210/31/2024 13,186.09Subtotal for Divison: 0370 Subtotal for Fund 030 22,455.74 049-0000-83100-00 Galesburg Civic Art Center Inc TIF Redevelopment Agreement - 349 E Main St 90,000.00 000009247912/10/2024 90,000.00Subtotal for Divison: 0000 Subtotal for Fund 049 90,000.00 053-0000-51000-00 Office Specialists, Inc.Furniture Removal/Replacement Services during PSB carpet install 1,789.50 000009280312/10/2024 053-0000-51000-00 Office Specialists, Inc.Furniture Removal/Replacement Services during PSB carpet install 1,105.00 000009280312/10/2024 2,894.50Subtotal for Divison: 0000 Subtotal for Fund 053 2,894.50 054-0000-51000-00 Klingner & Associates, P.C. - Architectural GroupConstruction Admin Hawthorne Pool Renovation, Phase 2 1,155.00 000009254912/10/2024 1,155.00Subtotal for Divison: 0000 Subtotal for Fund 054 1,155.00 061-0000-10701-00 Core & Main 2025 - Flexnet Software Support 1 year 3,700.0012/10/2024 061-0000-10701-00 Railroad Management Company III, LLC 01/26 - 03/26 - License Fee 202.0612/10/2024 061-0000-10701-00 Railroad Management Company III, LLC 03/25 - 12/25 - License Fee 606.1812/10/2024 061-0000-20101-00 SUSAN MARTIN Refund Check 067077-000, 1543 MCKNIGHT ST 50.0111/26/2024 AP-Transactions by Account (12/10/2024 - 11:58 AM)Page 13 Account Number Vendor AmountDescription PO No Date 061-0000-20101-00 HOERR CONSTRUCTION INC Refund Hydrant Meter Deposit 500.0012/10/2024 061-0000-20101-00 LORI MCCARTHY Refund Check 058037-001, 1265 W NORTH ST 4.6212/04/2024 061-0000-20101-00 SUSAN CUNNINGHAM Refund Check 036304-010, 1547 MEADOW LARK DR 99.9512/04/2024 061-0000-20101-00 SHERRI MILES Refund Check 068221-000, 1370 S PEARL ST 91.2012/04/2024 061-0000-20101-00 TIFFANY MEGEE Refund Check 067061-000, 735 S WEST ST 81.2012/05/2024 061-0000-20101-00 CLY CONSTURCTION, INC Refund Hydrant Meter Deposit 500.0012/10/2024 061-0000-20101-00 CENTURY ESTATES, LLC.Refund Check 048030-001, 713 CENTURY ESTATES 156.2912/04/2024 061-0000-20101-00 CATHERINE BUTLER Refund Check 054189-001, 1067 MONROE ST 126.2912/04/2024 061-0000-20101-00 MELISSA BYRD Refund Check 067031-000, 1132 S SEMINARY ST 136.8112/04/2024 061-0000-20101-00 MATTHEW BRAMLETT Refund Check 064890-001, 2491 CAROL DR 93.0512/04/2024 061-0000-20101-00 GUY BOLOMPETI Refund Check 066760-001, 1048 E LOSEY ST 127.8512/04/2024 061-0000-20101-00 MARK MARTIN Refund Check 005097-077, 1459 S KELLOGG ST 124.5712/04/2024 061-0000-20101-00 JON NELSON Refund Check 043833-004, 1061 FLORENCE AVE 122.9311/26/2024 061-0000-20101-00 MCCARTHY IMPROVEMENT COMPANYRefund Hydrant Meter Deposit 500.0012/10/2024 061-0000-20101-00 WALTER JIMENEZ Refund Check 059390-010, 86 N WHITESBORO ST UPPER 93.0512/05/2024 061-0000-20101-00 INSITUFORM TECHNOLOGIES USA LLCRefund Hydrant Meter Deposit 500.0012/10/2024 061-0000-20101-00 SHANNON MCVEY Refund Check 067957-000, 203 N ARTHUR AVE 116.2812/05/2024 061-0000-20101-00 SERGIO HERNANDEZ Refund Check 068287-000, 1119 HAWKINSON AVE 12 112.5912/05/2024 061-0000-20101-00 ANTHONY NGUYEN Refund Check 044793-003, 758 PECK ST 103.6611/26/2024 061-0000-20101-00 YASMINE LUCAS Refund Check 068447-000, 759 E MAIN ST 3 122.6311/26/2024 061-0000-20101-00 PAIGE HOYLE Refund Check 064033-001, 835 LINCOLN ST 67.8611/26/2024 061-0000-20101-00 THRIVE COMMUNITY SERVICES Refund Check 024417-003, 2101 WINDISH DR 9.3911/26/2024 061-0000-20101-00 RICHARD SWANSON Refund Check 056886-001, 2091 CARRINGTON AVE 93.3912/04/2024 061-0000-20101-00 JASON SPRINGER Refund Check 056595-002, 746 E SOUTH ST 71.0311/26/2024 061-0000-20101-00 MELANIE SMITH-HENGEHOLD Refund Check 066950-001, 1476 IMPERIAL AVE 148.8812/04/2024 061-0000-20101-00 SHAWN STONEKING CORP Refund Hydrant Meter Deposit 500.0012/10/2024 061-0000-20101-00 AARON SKINNER Refund Check 012635-010, 1721 BAIRD AVE 135.9111/26/2024 061-0000-20101-00 ELIZABETHE RIGDON Refund Check 058181-001, 1028 E NORTH ST 70.0812/10/2024 061-0000-20101-00 MIRANDA CONSTRUCTION LLC Refund Hydrant Meter Deposit 500.0012/10/2024 061-0000-20101-00 TAMMIE WEAVER Refund Check 052195-006, 1099 E LOSEY ST 134.8811/26/2024 061-0000-20101-00 AMANDA SPROSTON Refund Check 058654-001, 643 N PRAIRIE ST 120.6412/04/2024 061-0000-20101-00 CHAD ST GEORGE Refund Check 015026-004, 179 N IVAN AVE 63.4011/26/2024 061-0000-20101-00 CHRISTOPHER OLINGER Refund Check 017978-000, 1328 RONA DR 38.5712/05/2024 061-0000-20101-00 CONNIE POPLE Refund Check 062061-000, 761 CENTURY ESTATES 60.6812/04/2024 061-0000-20102-00 Stratus Networks, Inc 12/24 Service Acct# 7382 129.0012/10/2024 061-0000-51000-00 SpringbrookSoftware LLC 11/24 Civic Pay 154.5012/10/2024 061-0000-51010-00 James M Kelly, Attorney 10/24 Legal Services 1,900.5012/10/2024 AP-Transactions by Account (12/10/2024 - 11:58 AM)Page 14 Account Number Vendor AmountDescription PO No Date 061-0000-51500-00 Sebis Direct Inc 10/24 Service 976.8212/10/2024 061-0000-54000-00 Roger Mettler Cell Phone Allowance 30.0011/30/2024 061-0000-54000-00 Jerami Brown Cell Phone Allowance 30.0011/30/2024 061-0000-54000-00 Justin McDonald Cell Phone Allowance 30.0011/30/2024 061-0000-54000-00 Michael Mackey Cell Phone Allowance 30.0011/30/2024 061-0000-54000-00 Scott Seiberlich Cell Phone Allowance 30.0011/30/2024 061-0000-55500-00 Altorfer Inc.2024 OCTOBER - MAINTENANCE ON FOUR GENERATORS 1,309.00 000009247112/10/2024 061-0000-55500-00 Altorfer Inc.2024 OCTOBER - MAINTENANCE ON FOUR GENERATORS 1,359.00 000009247112/10/2024 061-0000-55700-00 Brandt Construction Co Asphalt pavement repair due to water main breaks on Tompkins & S 13,870.85 000009277712/10/2024 061-0000-61000-00 Office Specialists, Inc.Calendar 24.2012/10/2024 061-0000-66000-00 Grainger, Inc.Propeller 12.6311/08/2024 061-0000-66000-00 Galesburg Electric, Inc.Lights, Fixtures, Clamps, Bolts, Latches, Heating Element 1,238.7812/10/2024 061-0000-66000-00 Galesburg Electric, Inc.Lighting Replacement Lens 1,587.5812/10/2024 061-0000-66000-00 Core & Main Tubes, Nuts, Gaskets & Grip Rings 231.4812/10/2024 061-0000-66000-00 Core & Main Oak Wedge 200.0012/10/2024 061-0000-66000-00 Core & Main Nuts, Gaskets 203.7012/10/2024 061-0000-66000-00 Core & Main Water Meter Couplings 1,725.0012/10/2024 061-0000-66000-00 Core & Main Pipe Fittings 329.0012/10/2024 061-0000-66000-00 Core & Main Couplings 632.0012/10/2024 061-0000-66000-00 Core & Main Flange Sets, Bolts, Nuts, Gasket 971.3212/10/2024 061-0000-68500-00 IDEXX Distribution Inc.Misc Chemicals 1,184.9912/10/2024 061-0000-68700-00 Core & Main Water Meters 750.0012/10/2024 061-0000-68700-00 Core & Main Water Meters 2,415.0012/10/2024 41,641.28Subtotal for Divison: 0000 Subtotal for Fund 061 41,641.28 067-0000-51000-00 SpringbrookSoftware LLC 11/24 Civic Pay 77.2512/10/2024 067-0000-51500-00 Sebis Direct Inc 10/24 Service 488.3412/10/2024 067-0000-56000-00 Terry Allen, Inc Pickard Road - Toilet Rental - 1 Regular Unit 3/15/24-11/17/24 40.00 000009263612/10/2024 067-0000-56000-00 Terry Allen, Inc Pickard Road - Toilet Rental - 1 Regular Unit 3/15/24-11/17/24 80.00 000009263612/10/2024 685.59Subtotal for Divison: 0000 Subtotal for Fund 067 685.59 078-0000-10460-00 Mid-West Truckers Association, Inc.Urinalysis 97.0012/10/2024 078-0000-10701-00 Pharos Holdings, LLC 2025 Compliance Hotline Annual Fee 632.6412/10/2024 AP-Transactions by Account (12/10/2024 - 11:58 AM)Page 15 Account Number Vendor AmountDescription PO No Date 078-0000-56535-00 OSF St Mary Medical Center Workers Comp - DOS 10/31/24 - Pat#13010859200 1,326.4912/10/2024 078-0000-56535-00 OSF Occupational Medicine Workers Comp - DOS 11/18/24 - Acct# 0021777800 105.2812/10/2024 078-0000-56535-00 OSF St Mary Medical Center Workers Comp - DOS 11/09/24 - Pat#13060134200 870.8812/10/2024 078-0000-56535-00 OSF Occupational Medicine Workers Comp - DOS 11/12/24 - Acct# 0021741000 244.7912/10/2024 078-0000-56535-00 Ora Orthopedics PC Workers Comp - DOS 11/07/24 - Pat Acct# 4949319 105.2812/10/2024 078-0000-56535-00 Advanced Rehab & Sports Medicine Workers Comp DOS 11/11/24 Acct# AA17483618 220.3212/10/2024 078-0000-56535-00 Advanced Rehab & Sports Medicine Workers Comp DOS 11/13/24 Acct# AA17483618 220.3212/10/2024 078-0000-56535-00 Advanced Rehab & Sports Medicine Workers Comp DOS 11/15/24 Acct# AA17483618 220.3212/10/2024 078-0000-56535-00 Advanced Rehab & Sports Medicine Workers Comp DOS 11/20/24 Acct# AA17483618 220.3212/10/2024 078-0000-56597-00 Bolin's Marathon Service Towing to City Garage - Unit 27 150.0012/10/2024 4,413.64Subtotal for Divison: 0000 Subtotal for Fund 078 4,413.64 Report Total: 492,641.13 AP-Transactions by Account (12/10/2024 - 11:58 AM)Page 16 Check Date Check #Vendor Name Description Account #Amount 11/27/2024 100375 Direct Energy Business 10/24 Service Acct#1872633 001-0450-52000 127.17 11/27/2024 100375 Direct Energy Business 10/24 Service Acct#1872622 001-0450-52000 43.92 11/27/2024 100375 Direct Energy Business 10/24 Service Acct#1872653 001-0450-52000 60.28 11/27/2024 100375 Direct Energy Business 10/24 Service Acct#1872670 001-0450-52000 39.63 11/27/2024 100375 Direct Energy Business 10/24 Service Acct#1872613 001-0450-52000 89.08 11/27/2024 100375 Direct Energy Business 10/24 Service Acct#1872641 001-0450-52000 45.93 11/27/2024 100375 Direct Energy Business 10/24 Service Acct#1872632 001-0450-52000 54.92 11/27/2024 100375 Direct Energy Business 10/24 Service Acct#1872617 001-0450-52000 52.64 11/27/2024 100375 Direct Energy Business 10/24 Service Acct#1872689 001-0450-52000 48.21 11/27/2024 100375 Direct Energy Business 10/24 Service Acct#1872612 001-0450-52000 29.99 11/27/2024 100375 Direct Energy Business 10/24 Service Acct#1872684 001-0450-52000 42.33 11/27/2024 100375 Direct Energy Business 10/24 Service Acct#1872674 001-0450-52000 33.60 11/27/2024 100375 Direct Energy Business 10/24 Service Acct#1872688 001-0450-52000 35.62 11/27/2024 100375 Direct Energy Business 10/24 Service Acct#1872644 001-0450-52000 253.45 11/27/2024 100375 Direct Energy Business 10/24 Service Acct#1872640 001-0605-52000 347.07 11/27/2024 100375 Direct Energy Business 10/24 Service Acct#1872702 019-1915-52000 60.00 11/27/2024 100375 Direct Energy Business 10/24 Service Acct#1872648 019-1915-52000 61.20 11/27/2024 100375 Direct Energy Business 10/24 Service Acct#1872621 019-1920-52000 39.50 11/27/2024 100375 Direct Energy Business 10/24 Service Acct#1872610 019-1960-52000 64.96 11/27/2024 100375 Direct Energy Business 10/24 Service Acct#1872602 061-0000-52000 8,314.21 11/27/2024 100375 Direct Energy Business 10/24 Service Acct#1872604 061-0000-52000 1.14 11/27/2024 100375 Direct Energy Business 10/24 Service Acct#1872658 061-0000-52000 6,985.94 11/27/2024 0 Elementary Earthworks LLC Minority/Woman owned business startup incentive approved by coun 054-0000-83100 1,142.66 11/27/2024 100376 IPOC IPOC Training 12/04 - EHeiden, RSpeidel 001-0306-54500 80.00 11/27/2024 0 J W Summy Contracting Corp.IHDA HOusing Repair and Accessiblity (HRAP) Grant for 355 Lincol 013-0000-83100 43,475.00 11/27/2024 0 J W Summy Contracting Corp.IHDA Housing Repair and Accessibilty HRAP grant at 600 Greenleaf 013-0000-83100 19,200.00 11/27/2024 100377 Knox County Recorders Office File 28 Weed/Trash/Demo Liens 001-0160-51300 225.00 11/27/2024 100377 Knox County Recorders Office File 10 Weed/Trash/Demo Liens 001-0160-51300 75.00 11/27/2024 100379 Midwest Orthopaedics at Rush Workers Comp - Deposition - Dr. Brian Cole - Pat #1780674 078-0000-56535 2,500.00 11/27/2024 0 Mike Hines 11/20 - Officiating V-Ball - 5 Games 019-1940-51400 175.00 11/27/2024 100381 Nancy Spencer 12/04 - Dance Caller for Candyland Ball 019-1940-51400 150.00 11/27/2024 100383 Nate Heinold LLC Purchase of 18 new disc golf baskets for Kiwanis Park 012-0000-66000 6,800.00 11/27/2024 0 NOVA Singers Minority/Woman owned Southside Occupancy incentive 054-0000-83100 400.00 11/27/2024 100382 Roger Underwood 12/04 - Santa & Mrs Claus - Candyland Ball 019-1940-51400 150.00 11/27/2024 100380 Steven Potaczek Workers Comp - Deposition 078-0000-56535 1,200.00 11/27/2024 0 Waste Management, Inc.10/24 Service Cust#5-33430-33004 067-0000-59502 205,501.48 11/27/2024 0 Western Illinois Regional Council - CAA CO#1 IHDA Housing Repair and Accessibility (HRAP) Grant - final 013-0000-83100 2,450.30 11/27/2024 0 Western Illinois Regional Council - CAA CO#1 IHDA Housing Repair and Accessibility (HRAP) Grant - Projec 013-0000-83100 5,188.12 12/2/2024 0 Dearborn National Life Insurance Co.12/24 Life Insurance Premiums 001-0110-47500 100.80 Advance Checks and ACH Payments as of 12/10/2024 12/2/2024 0 Dearborn National Life Insurance Co.12/24 Life Insurance Premiums 001-0115-47500 72.00 12/2/2024 0 Dearborn National Life Insurance Co.12/24 Life Insurance Premiums 001-0120-47500 48.78 12/2/2024 0 Dearborn National Life Insurance Co.12/24 Life Insurance Premiums 001-0205-47500 208.80 12/2/2024 0 Dearborn National Life Insurance Co.12/24 Life Insurance Premiums 001-0207-47500 61.20 12/2/2024 0 Dearborn National Life Insurance Co.12/24 Life Insurance Premiums 001-0305-47500 21.48 12/2/2024 0 Dearborn National Life Insurance Co.12/24 Life Insurance Premiums 001-0306-47500 167.28 12/2/2024 0 Dearborn National Life Insurance Co.12/24 Life Insurance Premiums 001-0410-47500 86.40 12/2/2024 0 Dearborn National Life Insurance Co.12/24 Life Insurance Premiums 001-0445-47500 23.40 12/2/2024 0 Dearborn National Life Insurance Co.12/24 Life Insurance Premiums 001-0450-47500 63.00 12/2/2024 0 Dearborn National Life Insurance Co.12/24 Life Insurance Premiums 001-0510-47500 453.60 12/2/2024 0 Dearborn National Life Insurance Co.12/24 Life Insurance Premiums 001-0550-47500 108.00 12/2/2024 0 Dearborn National Life Insurance Co.12/24 Life Insurance Premiums 001-0605-47500 144.00 12/2/2024 0 Dearborn National Life Insurance Co.12/24 Life Insurance Premiums 014-0000-47500 72.00 12/2/2024 0 Dearborn National Life Insurance Co.12/24 Life Insurance Premiums 017-0000-47500 14.40 12/2/2024 0 Dearborn National Life Insurance Co.12/24 Life Insurance Premiums 018-0000-47500 43.20 12/2/2024 0 Dearborn National Life Insurance Co.12/24 Life Insurance Premiums 019-1905-47500 138.30 12/2/2024 0 Dearborn National Life Insurance Co.12/24 Life Insurance Premiums 019-1920-47500 72.00 12/2/2024 0 Dearborn National Life Insurance Co.12/24 Life Insurance Premiums 020-0000-47500 5.40 12/2/2024 0 Dearborn National Life Insurance Co.12/24 Life Insurance Premiums 023-0000-47500 5.40 12/2/2024 0 Dearborn National Life Insurance Co.12/24 Life Insurance Premiums 024-0000-47500 38.64 12/2/2024 0 Dearborn National Life Insurance Co.12/24 Life Insurance Premiums 026-0000-47500 18.00 12/2/2024 0 Dearborn National Life Insurance Co.12/24 Life Insurance Premiums 030-0320-47500 54.00 12/2/2024 0 Dearborn National Life Insurance Co.12/24 Life Insurance Premiums 030-0370-47500 54.00 12/2/2024 0 Dearborn National Life Insurance Co.12/24 Life Insurance Premiums 061-0000-47500 185.85 12/2/2024 0 Dearborn National Life Insurance Co.12/24 Life Insurance Premiums 067-0000-47500 1.80 12/2/2024 0 Dearborn National Life Insurance Co.12/24 Vision Insurance Premiums 078-0000-20315 2,951.78 12/2/2024 0 Dearborn National Life Insurance Co.12/24 Life Insurance Premiums 078-0000-47500 10.62 12/2/2024 0 Illinois Dept Employment Security 3rd Quarter Unemployment Taxes 078-0000-47400 4,044.66 12/2/2024 0 IMRF 10/24 - IMRF Contributions 001-0000-20310 1,661.47 12/2/2024 0 Quadient Leasing USA, Inc Postage for Machine 061-0000-10702 500.00 12/2/2024 0 Quadient Leasing USA, Inc Postage for Machine 061-0000-10702 500.00 12/2/2024 0 UMB Bank, N.A.RFDG BDS SRS 2017 - Principal 061-0000-25509 485,000.00 12/2/2024 0 UMB Bank, N.A.RFDG BDS SRS 2017 - Interest 061-0000-87300 112,740.63 12/4/2024 0 Bluefin Payment Systems 11/24 Pay Pad processing fees 001-0115-51000 32.98 12/4/2024 0 Bluefin Payment Systems 11/24 Pay Pad processing fees 001-0306-51000 5.10 12/4/2024 0 Bluefin Payment Systems 11/24 Pay Pad processing fees 001-0410-51000 5.10 12/4/2024 0 Bluefin Payment Systems 11/24 Pay Pad processing fees 061-0000-51000 1,526.79 12/4/2024 0 Bluefin Payment Systems 11/24 UB webpayment credit card processing fees 061-0000-51000 3,678.74 12/4/2024 0 Bluefin Payment Systems 11/24 UB webpayment credit card processing fees 067-0000-51000 1,839.37 12/4/2024 0 Bluefin Payment Systems 11/24 Pay Pad processing fees 067-0000-51000 763.42 12/4/2024 0 Cardconnect 11/24 Card Connect credit card charges 019-1905-51000 270.97 12/4/2024 0 Cardconnect 11/24 Card Connect credit card charges 019-1930-51000 0.40 12/4/2024 0 Cardconnect 11/24 Card Connect credit card charges 019-1935-51000 168.21 12/4/2024 0 Cardconnect 11/24 Card Connect credit card charges 019-1945-51000 73.31 12/4/2024 0 Cardconnect 11/24 Card Connect credit card charges 019-1955-51000 94.53 12/4/2024 0 Cardconnect 11/24 Card Connect credit card charges 019-1960-51000 76.84 12/4/2024 0 Farmers & Mechanics Bank 11/24 F&M Bank Trust Fees 019-1905-51000 131.05 12/4/2024 0 Quadient Leasing USA, Inc Postage for machine 061-0000-10702 500.00 12/4/2024 0 Quadient Leasing USA, Inc postage for machine 061-0000-10702 500.00 12/4/2024 0 Wells Fargo Merchant Services 11/24 Credit Card fees 019-1920-51000 648.84 12/5/2024 0 Boxcar Express Food for Holiday Party 001-0120-58500 2,271.60 12/5/2024 100436 Direct Energy Business 10/24 Service - Acct# 1872611 001-0450-52000 102.24 12/5/2024 100436 Direct Energy Business 10/24 Service - Acct# 1872665 001-0450-52000 69.78 12/5/2024 100436 Direct Energy Business 10/24 Service - Acct# 1872634 001-0450-52000 53.84 12/5/2024 100436 Direct Energy Business 10/24 Service - Acct# 1872647 001-0450-52000 144.73 12/5/2024 100436 Direct Energy Business 10/24 Service - Acct# 1872626 001-0450-52000 34.52 12/5/2024 100436 Direct Energy Business 10/24 Service - Acct# 1872619 001-0450-52000 79.85 12/5/2024 100436 Direct Energy Business 10/24 Service - Acct# 1872616 001-0450-52000 48.60 12/5/2024 100436 Direct Energy Business 10/24 Service - Acct# 1872628 001-0450-52000 113.36 12/5/2024 100436 Direct Energy Business 10/24 Service - Acct# 1872624 001-0450-52000 75.17 12/5/2024 100436 Direct Energy Business 10/24 Service - Acct# 1872663 001-0450-52000 132.66 12/5/2024 100436 Direct Energy Business 10/24 Service - Acct# 1872719 001-0450-52000 49.55 12/5/2024 100436 Direct Energy Business 10/24 Service - Acct# 1872639 001-0450-52000 106.65 12/5/2024 100436 Direct Energy Business 10/24 Service - Acct# 1872650 001-0450-52000 40.07 12/5/2024 100436 Direct Energy Business 10/24 Service - Acct# 1872625 001-0450-52000 34.52 12/5/2024 100436 Direct Energy Business 10/24 Service - Acct# 1872652 001-0450-52000 296.47 12/5/2024 100436 Direct Energy Business 10/24 Service - Acct# 1872664 001-0450-52000 50.75 12/5/2024 100436 Direct Energy Business 10/24 Service - Acct# 1872614 001-0450-52000 306.20 12/5/2024 100436 Direct Energy Business 10/24 Service - Acct# 1872700 001-0450-52000 58.13 12/5/2024 100436 Direct Energy Business 10/24 Service - Acct# 1872694 001-0510-52000 100.48 12/5/2024 100436 Direct Energy Business 10/24 Service - Acct# 1872705 001-0605-52000 29.95 12/5/2024 100436 Direct Energy Business 10/24 Service - Acct# 1872704 001-0605-52000 491.70 12/5/2024 100436 Direct Energy Business 10/24 Service - Acct# 1872708 001-0605-52000 96.86 12/5/2024 100436 Direct Energy Business 10/24 Service - Acct# 1872716 001-0605-52000 54.66 12/5/2024 100436 Direct Energy Business 10/24 Service - Acct# 1872699 001-0605-52000 141.51 12/5/2024 100436 Direct Energy Business 10/24 Service - Acct# 1872645 018-0000-52000 162.94 12/5/2024 100436 Direct Energy Business 10/24 Service - Acct# 1872691 019-1915-52000 69.80 12/5/2024 100436 Direct Energy Business 10/24 Service - Acct# 1872638 019-1915-52000 387.14 12/5/2024 100436 Direct Energy Business 10/24 Service - Acct# 1872714 019-1915-52000 46.60 12/5/2024 100436 Direct Energy Business 10/24 Service - Acct# 1872637 019-1915-52000 96.59 12/5/2024 100436 Direct Energy Business 10/24 Service - Acct# 1872630 019-1915-52000 251.97 12/5/2024 100436 Direct Energy Business 10/24 Service - Acct# 1872620 019-1915-52000 38.16 12/5/2024 100436 Direct Energy Business 10/24 Service - Acct# 1872682 019-1915-52000 162.94 12/5/2024 100436 Direct Energy Business 10/24 Service - Acct# 1872718 019-1915-52000 134.40 12/5/2024 100436 Direct Energy Business 10/24 Service - 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Acct# 1872660 019-1950-52000 51.04 12/5/2024 100436 Direct Energy Business 10/24 Service - Acct# 1872710 019-1955-52000 1,419.55 12/5/2024 100436 Direct Energy Business 10/24 Service - Acct# 1872676 019-1960-52000 182.26 12/5/2024 100436 Direct Energy Business 10/24 Service - Acct# 1872683 019-1965-52000 35.19 12/5/2024 100436 Direct Energy Business 10/24 Service - Acct# 1872650 019-1965-52000 40.07 12/5/2024 100436 Direct Energy Business 10/24 Service - Acct# 1872657 019-1965-52000 68.18 12/5/2024 100436 Direct Energy Business 10/24 Service - Acct# 1872608 061-0000-52000 145.67 12/5/2024 100436 Direct Energy Business 10/24 Service - Acct# 1872643 061-0000-52000 11,901.56 12/5/2024 0 James Hartshorn 12/04 - Officiating Volleyball - 5 Games 019-1940-51400 175.00 12/5/2024 100437 Knox County Recorders Office Release 17 Property Maint Liens 001-0160-51300 150.00 12/5/2024 100437 Knox County Recorders Office 7 Water/Sewer/Refuse Lien Filed 061-0000-51000 75.00 12/5/2024 100438 MC Squared 10/24 Service - Acct# 3822577007 024-0000-52000 96.58 12/5/2024 0 Oneida Network Services, Inc 12/24 - Internet - Acct#1101994 - Kerzi 001-0207-54000 50.00 12/5/2024 0 The Lavender Lotus Yoga Studio Minority/ Woman owned Southside Occupancy Assistance Program 054-0000-83100 406.07 12/5/2024 0 The Lavender Lotus Yoga Studio CO #1 Minority/ Woman Southside Occupancy Assistance Program 054-0000-83100 493.93 12/5/2024 100439 USA Excavation & Recycling LLC Payment for sidewalk replacement at 151 E Main Street 014-0000-78070 32,151.50 Grand Total 981,238.82$ ____________________________________________________________________________________________ Prepared by: GUG Page 1 of 1 COUNCIL LETTER CITY OF GALESBURG DECEMBER 16, 2024 AGENDA ITEM: Zoning Amendment from I, Institutional to B3, Central Business District for parcel identification number 99-15-206-001, commonly known as 40 E Simmons St. SUMMARY RECOMMENDATION: The Planning and Zoning (P&Z) Commission held the required public hearing during their November 19, 2024 meeting. On a vote of 8 ayes (Members Cochrane, Johnson, Leahy, Lee, Markwart, Thomas, Paulsgrove, Uhlmann), zero nays and zero abstentions, the P&Z recommended approval of the Zoning Amendment. The City Manager and Director of Community Development concur with the P&Z’s recommendation. BACKGROUND: The applicant is planning to sell the property and would like to rezone to the B3, Central Business District which allows for a variety of mixed uses that are appropriate for the downtown area. The purpose of the B3 District is to provide for a wide range of businesses and services typically located in an urban downtown environment such as retail, residential, governmental, office, cultural, hotel, entertainment and ancillary uses. This district also serves to maintain the traditional business core of the city, and allows a mix of businesses, office, governmental and residential uses to encourage social, cultural and civic functions. The 2019 Comprehensive Plan indicates this area to be Downtown Mixed Use (which is B3). BUDGET IMPACT: There would be no anticipated impact upon the budget if the zoning amendment is approved. SUPPORTING DOCUMENTS: 1.Aerial map – General location 2.Zoning amendment ordinance GALESBURG Zoning Land Use North B3, Central Business Office West I, Institutional Public Safety Building East B3, Central Business Office / Retail South I, Institutional Parking lot 24-1026 ORDINANCE NO. _________________ WHEREAS, pursuant to a public hearing duly held as required by law, the Planning and Zoning Commission to the City of Galesburg, Illinois, has reported on a proposition to amend the Zoning Map of said City as hereinafter set forth; NOW, THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF GALESBURG, ILLINOIS: SECTION ONE: The following described real estate shall be, and the same hereby is, rezoned from I, Institutional to B3, Central Business District: Tract I: Original Lots Three (3) and Four (4) in Block Thirty-two (32) in the Village, now City of Galesburg, Knox County, Illinois. Tract II: The West Forty-Six and one-half ( 46 ½) feet of the North Eight rods of Lot Two (2) in Block Thirty- two (32) in the City of Galesburg, Knox County, Illinois. Tract III: Beginning at a point, which point is in the Northeasterly Corner of Block Thirty-two (32) in the City of Galesburg, at the intersection of the Southerly side of Simmons Street with the Westerly side of Cherry Street; thence in a Westwardly direction along the Southerly side of Simmons Street a distance of One Hundred Ten (110) feet to a point; thence in a Southwardly direction and parallel with the Westerly side of Cherry Street a distance of One Hundred Thirty-five (135) feet to a point; thence in an Eastwardly direction and parallel with the Southerly side of Simmons Street a distance of One Hundred Ten (110) feet to a point in the Westerly side of Cherry Street; thence in a Northwardly direction along the Westerly side of Cherry Street a distance of One Hundred Thirty- five (135) feet to the point or place of beginning; being the North One Hundred and Thirty-five (135) feet of Lot One (1) and of the East Thirty-one and five-eights (31 5/8) feet of Lot Two (2) in Block Thirty-two (32) in the City of Galesburg, Knox County, Illinois, and being the same land conveyed to the United States by Knox College by deed dated June 29, 1891, recorded September 17, 1891, in the Office of the Clerk of the Circuit Court and Recorder of Knox County, Illinois, Vol. 142 of Deeds, Page 156, together with the improvements thereon. Parcel Identification Numbers (PINs): 99-15-206-001 Commonly known as: 40 E Simmons St, Galesburg, IL SECTION TWO: The Zoning Map of the City of Galesburg shall be, and the same hereby is, changed in accordance with the provisions hereof. SECTION THREE: All ordinances, or parts of ordinances, in conflict with this ordinance are, to the extent of such conflict, hereby repealed. SECTION 3 This ordinance shall be in full force and effect from and after its passage, approval and publication as provided by law. Approved this day of , 2024, by a roll call vote as follows: Roll Call #: Ayes: _________________________________________________________________________ Nays: _________________________________________________________________________ Absent: _______________________________________________________________________ Abstain: _________________________________________________________________________ ATTEST: ______________________________ Peter Schwartzman, Mayor ____________________________ Kelli R. Bennewitz, City Clerk COUNCIL LETTER CITY OF GALESBURG DECEMBER 16, 2024 AGENDA ITEM:Resolution naming the Galesburg Regional Airport in honor of Harrel W. Timmons. SUMMARY RECOMMENDATION: The City Manager and City Clerk recommend approval of the resolution. BACKGROUND:Jet Air, Inc. has served as the Fixed Base Operator for the Airport, with Timmons serving as the President since 1969. Harrel started flying in 1965 and holds commercial, flight and ground instructor ratings, plus an Airline Transport Pilot certificate with 20,000 hours flying time. He has been a member of the National Stearman Board of Directors since its inception in 1971, as well as a member of the Stearman Foundation Board of Directors The City would like to honor Harrel Timmons for his exceptional contributions to the Galesburg Regional Airport and his service to our community and the National Stearman Fly In by officially naming and referring to the Airport as the Harrel W. Timmons Galesburg Regional Airport. BUDGET IMPACT: None SUPPORTING DOCUMENTS: 1. Resolution ___________________________________________________________________________________________________________________________________________________________________________________________Prepared by: KRB Page 1 of 1 24-2029 RESOLUTION NO. WHEREAS, the City of Galesburg dedicated the Galesburg Municipal Airport on West Main Street in 1960; and WHEREAS, the City was proud to announce that the airport was recently upgraded to the status of a Regional Airport by the Federal Airport Administration; and WHEREAS, the Airport sees significant usage from recreational users as well as corporations and businesses, and acts as a gateway for outdoor recreational activities and supports aerial inspections, police and law enforcement operations, and aerial agriculture activities; and WHEREAS, Jet Air, Inc. serves as the Fixed Base Operator for the Airport, founded by Harrel Timmons, where he served as the President of the FBO at Galesburg from 1969 to his retirement in 2023; and WHEREAS, Harrel started flying in 1965 and holds commercial, flight and ground instructor ratings, plus an Airline Transport Pilot certificate with 20,000 hours flying time; and WHEREAS, Timmons is an FAA designated pilot examiner for private, commercial, instrument, multi-engine, Airline Transport Pilot and Citation jets, and a certified aircraft mechanic with inspection authorization. He has helped many employees advance to the airlines, or become corporate pilots and corporate mechanics; and WHEREAS, Harrel has been a member of the National Stearman Board of Directors since its inception in 1971, as well as a member of the Stearman Foundation Board of Directors; and WHEREAS, Harrel has been a member of the Galesburg Rotary Club for more than 40 years in which he and his wife have been involved in the Rotary Youth Exchange, bringing students to our community from all over the world. They host Rotary team members and volunteer air transportation for sightseeing and traveling; and WHEREAS, Harrel was inducted into the Illinois Aviation Hall of Fame in 2011. WHEREAS, the City of Galesburg would like to honor Harrel Timmons for his exceptional contributions to aviation in the State of Illinois and to the Galesburg Regional Airport, his continuous service and selfless contributions to our community, for going above and beyond to ensure excellence for the National Stearman Fly In and for the promotion of the Galesburg community. NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF GALESBURG, KNOX COUNTY, AS FOLLOWS: SECTION 1: The Galesburg Regional Airport shall be named and officially referred to as the “Harrel W. Timmons Galesburg Regional Airport.” SECTION 2: This resolution shall be in full force and effect from and after its passage and approval. Approved this ______ day of __________________ 2024, by a roll call vote as follows: Roll Call #: ____________ Ayes: ________________________________________________________________________ Nays: _______________________________________________________________________ Absent: ______________________________________________________________________ Abstain:______________________________________________________________________ _______________________________________ Peter D. Schwartzman, Mayor ATTEST: ___________________________________ Kelli R. Bennewitz, City Clerk COUNCIL LETTER CITY OF GALESBURG DECEMBER 16, 2024 AGENDA ITEM: Resolutions abating property tax on General Obligation Bonds. 1.Ordinance 13-3418, Series 2013A 2.Ordinance 15-3484, Series 2015 3.Ordinance 16-3508, Series 2016 4.Ordinance 17-3540, Series 2017 5.Ordinance 23-3692, Series 2023 SUMMARY RECOMMENDATION: The City Manager, Director of Finance and the City Clerk recommend approval of the attached resolutions directing the City Clerk to file the resolutions with the County Clerk to not extend the property tax for these bond payments. BACKGROUND: Bond payments are part of the property taxes unless the City Council approves resolutions abating (deduct from the collectible taxing amount) these taxes. Taxes would increase by $2,826,561.00 if property tax on the bonds is not abated. These resolutions must be approved before the County Clerk extends taxes. BUDGET IMPACT: None SUPPORTING DOCUMENTS: 1.Resolutions Prepared by JLO Page 1 of 1 24-2030 RESOLUTION NO. WHEREAS, the City of Galesburg, Knox County, Illinois, a municipal corporation, adopted Ordinance No. 2013-3418 for the purpose of authorizing the issuance of $1,390,000 General Obligation Bonds, Series 2013A, of the City of Galesburg, Illinois, and WHEREAS, Section 8 of Ordinance No. 2013-3418 provides for a levy upon all the taxable property in the City, for each year that any of the bonds are outstanding, of a direct annual tax sufficient to provide the money required to pay the interest on the bonds when and as the same falls due and to pay and discharge the principal thereof as the same shall mature as set forth in the schedule in said Section 8; and WHEREAS, said Section 8 of Ordinance No. 2013-3418 provides that the levy required there under may be abated to the extent that money from other sources is available for the payment of the principal and interest on the bonds upon certification by a duly authorized official of the City to the County Clerk of Knox County of the amount of such available money; and WHEREAS, The City of Galesburg, Knox County, Illinois has sufficient funds available arising from sources other than taxation, which may lawfully be used for the retirement of said bonds and the interest payable thereon: NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF GALESBURG, KNOX COUNTY, ILLINOIS: SECTION 1. That sum of $119,480 representing the amount required to be levied for tax levy year 2024 for the payment of principal and interest on the $1,390,000 General Obligation Bonds, Series 2013A, issued by the City of Galesburg, Illinois, be paid by the City of Galesburg, Illinois from sources other than taxation. SECTION 2. That in accordance with the provisions of Illinois Compiled Statutes, 65 ILCS Paragraph 5/8-3-4, the County Clerk, Knox County, Illinois, is hereby authorized to abate in its entirety said 2024 tax levy for the City of Galesburg, Knox County, Illinois General Obligation Bonds, Series 2013A. SECTION 3. That in accordance with the provisions of Illinois Compiled Statutes, 65 ILCS Section 5/11-74.4-7, the City Clerk is hereby authorized and directed to certify to the County Clerk, Knox County, Illinois, that the City of Galesburg has available to it from sources other than taxation the sum of $119,480 which may lawfully be used for the payment of interest on said bonds and to discharge the principal thereof as the same shall mature for the tax levy year 2024. SECTION 4. That the City Clerk of the City of Galesburg, Illinois, files a properly certified copy of this resolution with the County Clerk, Knox County, Illinois, on the first business day following the signing of this resolution by the Mayor of said City. Approved this __ day of ___________ , 20___ by a roll call vote as follows: Roll Call #: _______________ Ayes: Nays: Absent: Abstain: Peter Schwartzman, Mayor ATTEST: Kelli R. Bennewitz, City Clerk Levy and Extension of Taxes Tax Levy Year A Tax Sufficient to Produce 2013 $66,336.83 2014 $84,030.00 2015 $83,130.00 2016 $92,230.00 2017 $101,030.00 2018 $104,530.00 2019 $107,880.00 2020 $111,080.00 2021 $113,480.00 2022 $115,680.00 2023 $117,680.00 2024 $119,480.00 2025 $121,080.00 2026 $122,480.00 2027 $123,680.00 2028 $124,680.00 2029 $130,480.00 2030 $130,535.00 2031 $130,375.00 RESOLUTION NO. WHEREAS, the City of Galesburg, Knox County, Illinois, a municipal corporation, adopted Ordinance No. 2015-3484 for the purpose of authorizing the issuance of $8,290,000 General Obligation Refunding Bonds, Series 2015, of the City of Galesburg, Illinois, and WHEREAS, Section 12 of Ordinance No. 2015-3484 provides for a levy upon all the taxable property in the City, for each year that any of the bonds are outstanding, of a direct annual tax sufficient to provide the money required to pay the interest on the bonds when and as the same falls due and to pay and discharge the principal thereof as the same shall mature as set forth in the schedule in said Section 12; and WHEREAS, said Section 12 of Ordinance No. 2015-3484 provides that the levy required there under may be abated to the extent that money from other sources is available for the payment of the principal and interest on the bonds upon certification by a duly authorized official of the City to the County Clerk of Knox County of the amount of such available money; and WHEREAS, The City of Galesburg, Knox County, Illinois has sufficient funds available arising from sources other than taxation, which may lawfully be used for the retirement of said bonds and the interest payable thereon: NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF GALESBURG, KNOX COUNTY, ILLINOIS: SECTION 1. That sum of $624,963 representing the amount required to be levied for tax levy year 2024 for the payment of principal and interest on the $8,290,000 General Obligation Refunding Bonds, Series 2015, issued by the City of Galesburg, Illinois, be paid by the City of Galesburg, Illinois from sources other than taxation. SECTION 2. That in accordance with the provisions of Illinois Compiled Statutes, 65 ILCS Paragraph 5/8-3-4, the County Clerk, Knox County, Illinois, is hereby authorized to abate in its entirety said 2024 tax levy for the City of Galesburg, Knox County, Illinois General Obligation Refunding Bonds, Series 2015. SECTION 3. That in accordance with the provisions of Illinois Compiled Statutes, 65 ILCS Section 5/11-74.4-7, the City Clerk is hereby authorized and directed to certify to the County Clerk, Knox County, Illinois, that the City of Galesburg has available to it from sources other than taxation the sum of $624,963 which may lawfully be used for the payment of interest on said bonds and to discharge the principal thereof as the same shall mature for the tax levy year 2024. SECTION 4. That the City Clerk of the City of Galesburg, Illinois, files a properly certified copy of this resolution with the County Clerk, Knox County, Illinois, on the first business day following the signing of this resolution by the Mayor of said City. Approved this __ day of ___________ , 20___ by a roll call Roll Call #: Ayes: Nays: Absent: Abstain: Peter Schwartzman, Mayor ATTEST: Kelli R. Bennewitz, City Clerk Levy and Extension of Taxes Tax Levy Year A Tax Sufficient to Produce 2015 $623,962.50 2016 $622,712.50 2017 $621,162.50 2018 $624,312.50 2019 $622,012.50 2020 $619,412.50 2021 $626,512.50 2022 $623,012.50 2023 $624,212.50 2024 $624,962.50 2025 $625,262.50 2026 $625,112.50 2027 $629,512.50 2028 $623,312.50 2029 $626,812.50 2030 $629,000.00 2031 $629,825.00 RESOLUTION NO. WHEREAS, the City of Galesburg, Knox County, Illinois, a municipal corporation, adopted Ordinance No. 2016-3508 for the purpose of authorizing the issuance of $9,600,000 General Obligation Bonds, Series 2016, of the City of Galesburg, Illinois, and WHEREAS, Section 8 of Ordinance No. 2016-3508 provides for a levy upon all the taxable property in the City, for each year that any of the bonds are outstanding, of a direct annual tax sufficient to provide the money required to pay the interest on the bonds when and as the same falls due and to pay and discharge the principal thereof as the same shall mature as set forth in the schedule in said Section 8; and WHEREAS, said Section 8 of Ordinance No. 2016-3508 provides that the levy required there under may be abated to the extent that money from other sources is available for the payment of the principal and interest on the bonds upon certification by a duly authorized official of the City to the County Clerk of Knox County of the amount of such available money; and WHEREAS, The City of Galesburg, Knox County, Illinois has sufficient funds available arising from sources other than taxation, which may lawfully be used for the retirement of said bonds and the interest payable thereon: NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF GALESBURG, KNOX COUNTY, ILLINOIS: SECTION 1. That sum of $651,513 representing the amount required to be levied for tax levy year 2024 for the payment of principal and interest on the $9,600,000 General Obligation Bonds, Series 2016, issued by the City of Galesburg, Illinois, be paid by the City of Galesburg, Illinois from sources other than taxation. SECTION 2. That in accordance with the provisions of Illinois Compiled Statutes, 65 ILCS Paragraph 5/8-3-4, the County Clerk, Knox County, Illinois, is hereby authorized to abate in its entirety said 2024 tax levy for the City of Galesburg, Knox County, Illinois General Obligation Bonds, Series 2016. SECTION 3. That in accordance with the provisions of Illinois Compiled Statutes, 65 ILCS Section 5/11-74.4-7, the City Clerk is hereby authorized and directed to certify to the County Clerk, Knox County, Illinois, that the City of Galesburg has available to it from sources other than taxation the sum of $651,513 which may lawfully be used for the payment of interest on said bonds and to discharge the principal thereof as the same shall mature for the tax levy year 2024. SECTION 4. That the City Clerk of the City of Galesburg, Illinois, files a properly certified copy of this resolution with the County Clerk, Knox County, Illinois, on the first business day following the signing of this resolution by the Mayor of said City. Approved this __ day of ___________ , 20___ by a roll call Roll Call #: Ayes: Nays: Absent: Abstain: Peter Schwartzman, Mayor ATTEST: Kelli R. Bennewitz, City Clerk Levy and Extension of Taxes Tax Levy Year A Tax Sufficient to Produce 2015 $629,745.83 2016 $630,262.50 2017 $629,912.50 2018 $634,262.50 2019 $638,162.50 2020 $636,612.50 2021 $639,762.50 2022 $642,462.50 2023 $644,712.50 2024 $651,512.50 2025 $652,712.50 2026 $653,462.50 2027 $658,762.50 2028 $663,462.50 2029 $667,562.50 2030 $671,062.50 2031 $678,962.50 2032 $685,368.76 2033 $690,218.76 2034 $693,450.00 RESOLUTION NO. WHEREAS, the City of Galesburg, Knox County, Illinois, a municipal corporation, adopted Ordinance No. 2017-3540 for the purpose of authorizing the issuance of $8,320,000 General Obligation Refunding Bonds, Series 2017, of the City of Galesburg, Illinois, and WHEREAS, Section 12 of Ordinance No. 2017-3540 provides for a levy upon all the taxable property in the City, for each year that any of the bonds are outstanding, of a direct annual tax sufficient to provide the money required to pay the interest on the bonds when and as the same falls due and to pay and discharge the principal thereof as the same shall mature as set forth in the schedule in said Section 12; and WHEREAS, said Section 12 of Ordinance No. 2017-3540 provides that the levy required there under may be abated to the extent that money from other sources is available for the payment of the principal and interest on the bonds upon certification by a duly authorized official of the City to the County Clerk of Knox County of the amount of such available money; and WHEREAS, The City of Galesburg, Knox County, Illinois has sufficient funds available arising from sources other than taxation, which may lawfully be used for the retirement of said bonds and the interest payable thereon: NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF GALESBURG, KNOX COUNTY, ILLINOIS: SECTION 1. That sum of $713,356 representing the amount required to be levied for tax levy year 2024 for the payment of principal and interest on the $8,320,000 General Obligation Refunding Bonds, Series 2017, issued by the City of Galesburg, Illinois, be paid by the City of Galesburg, Illinois from sources other than taxation. SECTION 2. That in accordance with the provisions of Illinois Compiled Statutes, 65 ILCS Paragraph 5/8-3-4, the County Clerk, Knox County, Illinois, is hereby authorized to abate in its entirety said 2024 tax levy for the City of Galesburg, Knox County, Illinois General Obligation Refunding Bonds, Series 2017. SECTION 3. That in accordance with the provisions of Illinois Compiled Statutes, 65 ILCS Section 5/11-74.4-7, the City Clerk is hereby authorized and directed to certify to the County Clerk, Knox County, Illinois, that the City of Galesburg has available to it from sources other than taxation the sum of $713,356 which may lawfully be used for the payment of interest on said bonds and to discharge the principal thereof as the same shall mature for the tax levy year 2024. SECTION 4. That the City Clerk of the City of Galesburg, Illinois, files a properly certified copy of this resolution with the County Clerk, Knox County, Illinois, on the first business day following the signing of this resolution by the Mayor of said City. Approved this __ day of ___________ , 20___ by a roll call Roll Call #: Ayes: Nays: Absent: Abstain: Peter Schwartzman, Mayor ATTEST: Kelli R. Bennewitz, City Clerk Levy and Extension of Taxes Tax Levy Year A Tax Sufficient to Produce 2017 $712,631.26 2018 $714,631.26 2019 $717,331.26 2020 $710,331.26 2021 $712,281.26 2022 $714,281.26 2023 $710,481.26 2024 $713,356.26 2025 $714,606.26 2026 $714,006.26 2027 $712,606.26 2028 $715,406.26 2029 $716,406.26 2030 $712,343.76 2031 $711,250.00 2032 $714,000.00 RESOLUTION NO. WHEREAS, the City of Galesburg, Knox County, Illinois, a municipal corporation, adopted Ordinance No. 2023-3692 for the purpose of authorizing the issuance of $4,920,000 General Obligation Bonds, Series 2023, of the City of Galesburg, Illinois, and WHEREAS, Section 11 of Ordinance No. 2023-3692 provides for a levy upon all the taxable property in the City, for each year that any of the bonds are outstanding, of a direct annual tax sufficient to provide the money required to pay the interest on the bonds when and as the same falls due and to pay and discharge the principal thereof as the same shall mature as set forth in the schedule in said Section 11; and WHEREAS, said Section 11 of Ordinance No. 2023-3692 provides that the levy required there under may be abated to the extent that money from other sources is available for the payment of the principal and interest on the bonds upon certification by a duly authorized official of the City to the County Clerk of Knox County of the amount of such available money; and WHEREAS, The City of Galesburg, Knox County, Illinois has sufficient funds available arising from sources other than taxation, which may lawfully be used for the retirement of said bonds and the interest payable thereon: NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF GALESBURG, KNOX COUNTY, ILLINOIS: SECTION 1. That sum of $717,250 representing the amount required to be levied for tax levy year 2024 for the payment of principal and interest on the $4,920,000 General Obligation Bonds, Series 2023, issued by the City of Galesburg, Illinois, be paid by the City of Galesburg, Illinois from sources other than taxation. SECTION 2. That in accordance with the provisions of Illinois Compiled Statutes, 65 ILCS Paragraph 5/8-3-4, the County Clerk, Knox County, Illinois, is hereby authorized to abate in its entirety said 2024 tax levy for the City of Galesburg, Knox County, Illinois General Obligation Bonds, Series 2023. SECTION 3. That in accordance with the provisions of Illinois Compiled Statutes, 65 ILCS Section 5/11-74.4-7, the City Clerk is hereby authorized and directed to certify to the County Clerk, Knox County, Illinois, that the City of Galesburg has available to it from sources other than taxation the sum of $717,250 which may lawfully be used for the payment of interest on said bonds and to discharge the principal thereof as the same shall mature for the tax levy year 2024. SECTION 4. That the City Clerk of the City of Galesburg, Illinois, files a properly certified copy of this resolution with the County Clerk, Knox County, Illinois, on the first business day following the signing of this resolution by the Mayor of said City. Approved this __ day of ___________ , 20___ by a roll call Roll Call #: Ayes: Nays: Absent: Abstain: Peter Schwartzman, Mayor ATTEST: Kelli R. Bennewitz, City Clerk Levy and Extension of Taxes Tax Levy Year A Tax Sufficient to Produce 2023 $712,333.33 2024 $717,250.00 2025 $718,000.00 2026 $717,500.00 2027 $720,750.00 2028 $717,500.00 2029 $718,000.00 2030 $722,000.00 2031 $719,250.00 ___________________________________________________________________________________________________________________________________________________________________________________________ Prepared by: MJF Page 1 of 1 COUNCIL LETTER CITY OF GALESBURG DECEMBER 16, 2024 AGENDA ITEM: Change order request for the Dispatch Software and Hardware Project with Foxster Opco dba CTS Software (Tripmaster). SUMMARY RECOMMENDATION: The City Manager, Director of Community Development, and Transit Manager recommend approval of the change order with CTS Software (Tripmaster) in the amount of $18,180.00. BACKGROUND: The City of Galesburg Transit staff recently had a kick-off meeting with the vendor to begin planning for the implementation process of the new dispatch software. During the meeting, it was discovered that the portion of the project relating to Passio GO which is utilized to track the location of vehicles both internally and outfacing for customers utilizing the application for rides on the fixed route system did not account for all vehicles that would need both software and hardware components for this function. On the originally approved quote, the vendor had listed a quantity of four for the portion of this proposal. City staff interpreted this as accurate as the assumption referred to the four fixed routes that are currently in operation. Unfortunately, this quantity proved to be inaccurate as the software has to be tied per vehicle and not per route. Given the fact that the city uses multiple combinations of vehicles to cover the routes, it is necessary to ensure that all of the vehicles have access to the software/hardware necessitating this change order request. Given this realization and considering the state of our fleet, City staff requested during the kick- off meeting that the vendor provide a cost proposal for coverage of eighteen additional vehicles to cover our entire revenue fleet as they are used interchangeably between fixed route and complementary paratransit. The vendor has supplied a quote for this request and City staff are now going through the process to approve this change. IDOT has received the change order document request and Transit Staff are awaiting their approval. As such, the approval of the change order is contingent upon IDOT’s approval. BUDGET IMPACT: The total cost of this change order request is $18,180.00; providing for a newly revised contract amount of $95,936.00. There are sufficient funds from a Rebuild Illinois Round 2 grant to cover these expenses in full. The yearly maintenance fees associated with the software will be billed directly to Fund 30 and subsequently reimbursed by the 5311 grant and DOAP funds. SUPPORTING DOCUMENTS: 1.IDOT Concurrence Request 24-4092 ___________________________________________________________________________________________________________________________________________________________________________________________ Prepared by: AJG Page 1 of 1 COUNCIL LETTER CITY OF GALESBURG DECEMBER 16, 2024 AGENDA ITEM: Phase II Engineering Agreement for the Lake Storey Multi-Use Path Project. SUMMARY RECOMMENDATION: The City Manager and Interim Director of Public Works recommend approval of a Phase II Engineering Agreement in the amount of $79,081.00 for the Lake Storey Multi-Use Path Project. BACKGROUND: In 2023, IDOT notified the City that the second phase of the Lake Storey Multi- Use Path Project was selected for funding through their Illinois Transportation Enhancement Program (ITEP). This second phase of the project will pick up where the first phase ends and will construct a multi-use path starting at S. Lake Storey Road and Woodblock Road, running north along US 150, and connecting to the existing path on the north side of Lake Storey. The first phase of the Lake Storey Multi-Use Path Project, which is planned to be under construction in 2025, will run along S. Lake Storey Road from W. Lake Storey Road to Woodblock Road. The 2023 ITEP grant included funding for costs related to preliminary engineering and construction of the path. To advertise the project for bid, Phase I and Phase II preliminary engineering must be completed. The City hired Hutchison Engineering using local funds to complete the Phase I portion of the project and that phase is nearing completion. The scope of the Phase II engineering portion of the project consists of hiring a consultant to prepare detailed bid documents for construction. City staff put out a Request for Qualifications (RFQ) to engineering firms to complete the Phase II engineering for the project. The City received five (5) responses to the request and City staff evaluated and scored each engineering firm based on their technical competence, capability to meet schedule, and approach to the work. Hutchison Engineering received the highest score based on the criteria and was selected to perform the Phase II engineering work. Hutchison Engineering submitted an engineering agreement in the amount of $79,081.00. City staff reviewed the agreement and man-hours included to complete this work and recommend approval of the agreement. The ITEP grant funds 80% of the Phase II engineering work for the project. The City’s local match responsibility is 20% or $15,816.20. It is anticipated that construction on the project will begin in late 2025 or early 2026. BUDGET IMPACT: There are funds budgeted for this expense in the Utility Tax Fund (59). SUPPORTING DOCUMENTS: 1.Project Map 2.Phase II engineering agreement 24-4093 /0.5 0 0.50.25 Miles £¤150 £¤34 ")30 ")31 N HENDERSON STLAKELAN D D R W LAKESTOREYRDVALLEY V I E W R D TOM L W ILSO N B LVD N LAKE STOREY RD S L A K E STOREY RD LOG CITY TRLLake Storey Lincoln Park Lake Storey Park Lakeside Recreation Area Phase 2 PathPhase 1 Path Proposed Lake Storey Shared-Use Path Extensions Local Public Agency Engineering Services Agreement BLR 05530 (Rev. 07/08/22)Page 1 of 9Completed11/27/24 Using Federal Funds?Yes No Agreement For Federal PE Agreement Type Original LOCAL PUBLIC AGENCY Local Public Agency City of Galesburg County Knox Section Number 19-01502-40-BT Job Number Project Number Contact Name Aaron Gavin Phone Number Email agavin@ci.galesburg.il.us SECTION PROVISIONS Local Street/Road Name US 150 Length 2050' Key Route Add Location Structure Number 048-0029 Remove Location Location Termini S. Lake Storey Road to Gatewood Lane Project Description The project consists of construction of 2,050' of shared use path. The project includes HMA path with aggregate base, guardrail, earth excavation, barrier wall, fencing, and other collateral work. Engineering Funding Anticipated Construction Funding MFT/TBPFederal State Other OtherStateMFT/TBPFederal Local AGREEMENT FOR Phase II - Design Engineering Phase I - Preliminary Engineering CONSULTANT Prime Consultant (Firm) Name Hutchison Engineering, Inc. Contact Name W. Shane Larson Phone Number (309) 368-0689 Address 8305 N. Allen Road, Suite 4 City Peoria State IL Zip Code 61615 Email slarson@hutchisoneng.com Local THIS AGREEMENT IS MADE between the above Local Public Agency (LPA) and Consultant (ENGINEER) and covers certain professional engineering services in connection with the improvement of the above SECTION. Project funding allotted to the LPA by the State of Illinois under the general supervision of the State Department of Transportation, hereinafter called the "DEPARTMENT," will be used entirely or in part to finance ENGINEERING services as described under AGREEMENT PROVISIONS. Since the services contemplated under the AGREEMENT are professional in nature, it is understood that the ENGINEER, acting as an individual, partnership, firm or legal entity, qualifies for professional status and will be governed by professional ethics in its relationship to the LPA and the DEPARTMENT. The LPA acknowledges the professional and ethical status of the ENGINEER by entering into an AGREEMENT on the basis of its qualifications and experience and determining its compensation by mutually satisfactory negotiations. WHEREVER IN THIS AGREEMENT or attached exhibits the following terms are used, they shall be interpreted to mean: Regional Engineer Deputy Director, Office of Highways Project Implementation, Regional Engineer, Department of Transportation Resident Construction Supervisor Authorized representative of the LPA in immediate charge of the engineering details of the construction PROJECT In Responsible Charge A full time LPA employee authorized to administer inherently governmental PROJECT activities Contractor Company or Companies to which the construction contract was awarded BLR 05530 (Rev. 07/08/22)Page 2 of 9Completed11/27/24 AGREEMENT EXHIBITS The following EXHIBITS are attached hereto and made a part of hereof this AGREEMENT: EXHIBIT A: Scope of Services EXHIBIT B: Project Schedule EXHIBIT C: Qualification Based Selection (QBS) Checklist EXHIBIT D: Cost Estimate of Consultant Services (CESCS) Worksheet (BLR 05513 or BLR 05514 ) I. THE ENGINEER AGREES, 1. To perform or be responsible for the performance of the Scope of Services presented in EXHIBIT A for the LPA in connection with the proposed improvements herein before described. 2. The Classifications of the employees used in the work shall be consistent with the employee classifications and estimated staff hours. If higher-salaried personnel of the firm, including the Principal Engineer, perform services that are to be performed by lesser-salaried personnel, the wage rate billed for such services shall be commensurate with the payroll rate for the work performed. 3. That the ENGINEER shall be responsible for the accuracy of the work and shall promptly make necessary revisions or corrections required as a result of the ENGINEER'S error, omissions or negligent acts without additional compensation. Acceptance of work by the LPA or DEPARTMENT will not relieve the ENGINEER of the responsibility to make subsequent correction of any such errors or omissions or the responsibility for clarifying ambiguities. 4. That the ENGINEER will comply with applicable Federal laws and regulations, State of Illinois Statutes, and the local laws or ordinances of the LPA. 5. To pay its subconsultants for satisfactory performance no later than 30 days from receipt of each payment from the LPA. 6. To invoice the LPA for Preliminary and/or Design Engineering: The ENGINEER shall submit all invoices to the LPA within three months of the completion of the work called for in the AGREEMENT or any subsequent Amendment or Supplement. 7. To submit a completed BLR 05613, Engineering Payment Report, to the DEPARTMENT within three months of the completion of the work called for in this AGREEMENT or any subsequent Amendment or Supplement. The form shall be submitted with the final invoice. 8. The ENGINEER or subconsultant shall not discriminate on the basis of race, color, national origin or sex in the performance of this AGREEMENT. The ENGINEER shall carry out applicable requirements of 49 CFR part 26 in the administration of United States Department of Transportation (US DOT) assisted contract. Failure by the Engineer to carry out these requirements is a material breach of this AGREEMENT, which may result in the termination of this AGREEMENT or such other remedy as the LPA deems appropriate. 9. That none of the services to be furnished by the ENGINEER shall be sublet assigned or transferred to any other party or parties without written consent of the LPA. The consent to sublet, assign or otherwise transfer any portion of the services to be furnished by the ENGINEER shall be construed to relieve the ENGINEER of any responsibility for the fulfillment of this AGREEMENT. 10. For Preliminary Engineering Contracts: (a) To attend meetings and visit the site of the proposed improvement when requested to do so by representatives of the LPA or the DEPARTMENT, as defined in Exhibit A (Scope of Services). (b) That all plans and other documents furnished by the ENGINEER pursuant to the AGREEMENT will be endorsed by the ENGINEER and affix the ENGINEER's professional seal when such seal is required by law. Such endorsements must be made by a person, duly licensed or registered in the appropriate category by the Department of Professional Regulation of the State of Illinois. It will be the ENGINEER's responsibility to affix the proper seal as required by the Bureau of Local Roads and Streets manual published by the DEPARTMENT. (c) That the ENGINEER is qualified technically and is thoroughly conversant with the design standards and policies applicable for the PROJECT; and that the ENGINEER has sufficient properly trained, organized and experienced personnel to perform the services enumerated in Exhibit A (Scope of Services). 11. That the engineering services shall include all equipment, instruments, supplies, transportation and personnel required to perform the duties of the ENGINEER in connection with this AGREEMENT (See DIRECT COST tab in BLR 05513 or BLR 05514). II. THE LPA AGREES, 1. To certify by execution of this AGREEMENT that the selection of the ENGINEER was performed in accordance with the following: (a) Professional Services Selection Act (50 ILCS 510), The Brooks Act (40 USC 11), and the Procurement, Management, and Administration of Engineering, and Design Related Services (23 CFR part 172). Exhibit C is required to be completed with this AGREEMENT. 2. To furnish the ENGINEER all presently available survey data, plans, specifications, and project information. BLR 05530 (Rev. 07/08/22)Page 3 of 9Completed11/27/24 3. To pay the ENGINEER: (a) For progressive payments - Upon receipt of monthly invoices from the ENGINEER and the approval thereof by the LPA, monthly payments for the work performed shall be due and payable to the ENGINEER, such payments to be equal to the value of the partially completed work minus all previous partial payments made to the ENGINEER. (b) Final payment - Upon approval of the work by the LPA but not later than 60 days after the work is completed and reports have been made and accepted by the LPA and DEPARTMENT a sum of money equal to the basic fee as determined in this AGREEMENT less the total of the amount of partial payments previously paid to the ENGINEER shall be due and payable to the ENGINEER. 4. To pay the ENGINEER as compensation for all services rendered in accordance with the AGREEMENT on the basis of the following compensation method as discussed in 5-5.10 of the BLR Manual. Method of Compensation: Lump Sum Specific Rate Cost plus Fixed Fee: Fixed Total Compensation = DL + DC + OH + FF Where: DL is the total Direct Labor, DC is the total Direct Cost, OH is the firm's overhead rate applied to their DL and FF is the Fixed Fee. Where FF = ( 0.33 + R) DL + %SubDL, where R is the advertised Complexity Factor and %SubDL is 10% profit allowed on the direct labor of the subconsultants. The Fixed Fee cannot exceed 15% of the DL + OH. 5. The recipient shall not discriminate on the basis of race, color, national original or sex in the award and performance of any US DOT assisted contract or in the administration of its DBE program or the requirements of 49 CFR part 26. The recipient shall take all necessary and reasonable steps under 49 CFR part 26 to ensure nondiscrimination in the award and administration of US DOT-assisted contracts. The recipient's DBE program, as required by 49 CFR part 26 and as approved by US DOT, is incorporated by reference in this agreement. Implementation of this program is a legal obligation and failure to carry out its terms shall be treated as violation of this AGREEMENT. Upon notification to the recipient of its failure to carry out its approved program, the Department may impose sanctions as provided for under part 26 and may, in appropriate cases, refer the matter for enforcement under 18 U.S.C. 1001 and/or the Program Fraud Civil Remedies Act of 1986 (31 U.S.C 3801 et seq.). III. IT IS MUTUALLY AGREED, 1. No work shall be commenced by the ENGINEER prior to issuance by the IDOT of a written Notice to Proceed. 2. To maintain, for a minimum of 3 years after the completion of the contract, adequate books, records and supporting documents to verify the amount, recipients and uses of all disbursements of funds passing in conjunction with the contract; the contract and all books, records and supporting documents related to the contract shall be available for review and audit by the Auditor General, and the DEPARTMENT: the Federal Highways Administration (FHWA) or any authorized representative of the federal government, and to provide full access to all relevant materials. Failure to maintain the books, records and supporting documents required by this section shall establish a presumption in favor of the DEPARTMENT for the recovery of any funds paid by the DEPARTMENT under the contract for which adequate books, records and supporting documentation are not available to support their purported disbursement. 3. That the ENGINEER shall be responsible for any and all damages to property or persons arising out of an error, omission and/or negligent act in the prosecution of the ENGINEER's work and shall indemnify and save harmless the LPA, the DEPARMTENT, and their officers, agents, and employees from all suits, claims, actions or damage liabilities, costs or damages of any nature whatsoever resulting there from. These indemnities shall not be limited by the listing of any insurance policy. The LPA will notify the ENGINEER of any error or omission believed by the LPA to be caused by the negligence of the ENGINEER as soon as practicable after the discovery. The LPA reserves the right to take immediate action to remedy any error or omission if notification is not successful; if the ENGINEER fails to reply to a notification; or if the conditions created by the error or omission are in need of urgent correction to avoid accumulation of additional construction costs or damages to property and reasonable notice is not practicable. 4. This AGREEMENT may be terminated by the LPA upon giving notice in writing to the ENGINEER at the ENGINEER's last known post office address. Upon such termination, the ENGINEER shall cause to be delivered to the LPA all drawings, plats, surveys, reports, permits, agreements, soils and foundation analysis, provisions, specifications, partial and completed estimates and data, if any from soil survey and subsurface investigation with the understanding that all such material becomes the property of the LPA. The LPA will be responsible for reimbursement of all eligible expenses incurred under the terms of this AGREEMENT up to the date of the written notice of termination. 5. In the event that the DEPARMENT stops payment to the LPA, the LPA may suspend work on the project. If this agreement is suspended by the LPA for more than thirty (30) calendar days, consecutive or in aggregate, over the term of this AGREEMENT, the ENGINEER shall be compensated for all services performed and reimbursable expenses incurred as a result BLR 05530 (Rev. 07/08/22)Page 4 of 9Completed11/27/24 of the suspension and resumption of its services, and the ENGINEER's schedule and fees for the remainder of the project shall be equitably adjusted. 6. This AGREEMENT shall continue as an open contract and the obligations created herein shall remain in full force and effect until the completion of construction of any phase of professional services performed by others based upon the service provided herein. All obligations of the ENGINEER accepted under this AGREEMENT shall cease if construction or subsequent professional services are not commenced within 5 years after final payment by the LPA. 7. That the ENGINEER shall be responsible for any and all damages to property or persons arising out of an error, omission and/or negligent act in the prosecution of the ENGINEER's work and shall indemnify and have harmless the LPA, the DEPARTMENT, and their officers, employees from all suits, claims, actions or damages liabilities, costs or damages of any nature whatsoever resulting there from. These indemnities shall not be limited by the listing of any insurance policy. 8. The ENGINEER and LPA certify that their respective firm or agency: (a) has not employed or retained for commission, percentage, brokerage, contingent fee or other considerations, any firm or person (other than a bona fide employee working solely for the LPA or the ENGINEER) to solicit or secure this AGREEMENT, (b) has not agreed, as an express or implied condition for obtaining this AGREEMENT, to employ or retain the services of any firm or person in connection with carrying out the AGREEMENT or (c) has not paid, or agreed to pay any firm, organization or person (other than a bona fide employee working solely for the LPA or the ENGINEER) any fee, contribution, donation or consideration of any kind for, or in connection with, procuring or carrying out the AGREEMENT. (d) that neither the ENGINEER nor the LPA is/are not presently debarred, suspended, proposed for debarment, declared ineligible or voluntarily excluded from covered transactions by any Federal department or agency, (e) has not within a three-year period preceding the AGREEMENT been convicted of or had a civil judgment rendered against them for commission of fraud or criminal offense in connection with obtaining, attempting to obtain or performing a public (Federal, State or local) transaction; violation of Federal or State antitrust statutes or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements or receiving stolen property, (f) are not presently indicated for or otherwise criminally or civilly charged by a government entity (Federal, State or local) with commission of any of the offenses enumerated in paragraph e and (g) has not within a three-year period preceding this AGREEMENT had one or more public transaction (Federal, State or local) terminated for cause or default. Where the ENGINEER or LPA is unable to certify to any of the above statements in this certification, an explanation shall be attached to this AGREEMENT. 9. In the event of delays due to unforeseeable causes beyond the control of and without fault or negligence of the ENGINEER no claim for damages shall be made by either party. Termination of the AGREEMENT or adjustment of the fee for the remaining services may be requested by either party if the overall delay from the unforeseen causes prevents completion of the work within six months after the specified completion date. Examples of unforeseen causes include but are not limited to: acts of God or a public enemy; act of the LPA, DEPARTMENT, or other approving party not resulting from the ENGINEER's unacceptable services; fire; strikes; and floods. If delays occur due to any cause preventing compliance with the PROJECT SCHEDULE, the ENGINEER shall apply in writing to the LPA for an extension of time. If approved, the PROJECT SCHEDULE shall be revised accordingly. 10. This certification is required by the Drug Free Workplace Act (30 ILCS 580). The Drug Free Workplace Act requires that no grantee or contractor shall receive a grant or be considered for the purpose of being awarded a contract for the procurement of any property or service from the DEPARTMENT unless that grantee or contractor will provide a drug free workplace. False certification or violation of the certification may result in sanctions including, but not limited to suspension of contract on grant payments, termination of a contract or grant and debarment of the contracting or grant opportunities with the DEPARTMENT for at least one (1) year but not more than (5) years. For the purpose of this certification, "grantee" or "Contractor" means a corporation, partnership or an entity with twenty-five (25) or more employees at the time of issuing the grant or a department, division or other unit thereof, directly responsible for the specific performance under contract or grant of $5,000 or more from the DEPARTMENT, as defined the Act. The contractor/grantee certifies and agrees that it will provide a drug free workplace by: (a) Publishing a statement: (1) Notifying employees that the unlawful manufacture, distribution, dispensing, possession or use of a controlled substance, including cannabis, is prohibited in the grantee's or contractor's workplace. (2) Specifying actions that will be taken against employees for violations of such prohibition. (3) Notifying the employee that, as a condition of employment on such contract or grant, the employee will: (a) abide by the terms of the statement; and (b) notify the employer of any criminal drug statue conviction for a violation occurring int he workplace no later than (5) days after such conviction. (b) Establishing a drug free awareness program to inform employees about: (1) The dangers of drug abuse in the workplace; (2) The grantee's or contractor's policy of maintain a drug free workplace; BLR 05530 (Rev. 07/08/22)Page 5 of 9Completed11/27/24 (3) Any available drug counseling, rehabilitation and employee assistance program; and (4) The penalties that may be imposed upon an employee for drug violations. (c) Providing a copy of the statement required by subparagraph (a) to each employee engaged in the performance of the contract or grant and to post the statement in a prominent place in the workplace. (d) Notifying the contracting, or granting agency within ten (10) days after receiving notice under part (b) of paragraph (3) of subsection (a) above from an employee or otherwise, receiving actual notice of such conviction. (e) Imposing a sanction on, or requiring the satisfactory participation in a drug abuse assistance or rehabilitation program. (f) Assisting employees in selecting a course of action in the event drug counseling, treatment and rehabilitation is required and indicating that a trained referral team is in place. Making a good faith effort to continue to maintain a drug free workplace through implementation of the Drug Free Workplace Act, the ENGINEER, LPA and the Department agree to meet the PROJECT SCHEDULE outlined in EXHIBIT B. Time is of the essence on this project and the ENGINEER's ability to meet the PROJECT SCHEDULE will be a factor in the LPA selecting the ENGINEER for future project. The ENGINEER will submit progress reports with each invoice showing work that was completed during the last reporting period and work they expect to accomplish during the following period. 11. Due to the physical location of the project, certain work classifications may be subject to the Prevailing Wage Act (820 ILCS 130/0.01 et seq.). 12. For Preliminary Engineering Contracts: (a) That tracing, plans, specifications, estimates, maps and other documents prepared by the ENGINEER in accordance with this AGREEMENT shall be delivered to and become the property of the LPA and that basic survey notes, sketches, charts, CADD files, related electronic files, and other data prepared or obtained in accordance with this AGREEMENT shall be made available, upon request to the LPA or to the DEPARTMENT, without restriction or limitation as to their use. Any re-use of these documents without the ENGINEER involvement shall be at the LPA's sole risk and will not impose liability upon the ENGINEER. (b) That all reports, plans, estimates and special provisions furnished by the ENGINEER shall conform to the current Standard Specifications for Road and Bridge Construction, Bureau of Local Roads and Streets Manual or any other applicable requirements of the DEPARTMENT, it being understood that all such furnished documents shall be approved by the LPA and the DEPARTMENT before final acceptance. During the performance of the engineering services herein provided for, the ENGINEER shall be responsible for any loss or damage to the documents herein enumerated while they are in the ENGINEER's possession and any such loss or damage shall be restored at the ENGINEER's expense. AGREEMENT SUMMARY Prime Consultant (Firm) Name TIN/FEIN/SS Number Agreement Amount Hutchison Engineering, Inc.37-0960852 $79,081.00 Subconsultants TIN/FEIN/SS Number Agreement Amount Subconsultant Total Prime Consultant Total $79,081.00 Total for all work $79,081.00 BLR 05530 (Rev. 07/08/22)Page 6 of 9Completed11/27/24 AGREEMENT SIGNATURES Executed by the LPA: Local Public Agency Type City Local Public Agency City of Galesburg Local Public Agency Type City Clerk (SEAL) Title Director of Operations - Peoria Executed by the ENGINEER: Prime Consultant (Firm) Name Hutchison Engineering, Inc. Title Senior Vice President By (Signature & Date) Attest: The of Attest: Name of Local Public Agency City of Galesburg Title By (Signature & Date) By (Signature & Date)By (Signature & Date) BLR 05530 (Rev. 07/08/22)Page 7 of 9 Section Number 19-01502-40-BT County Knox Local Public Agency City of Galesburg Completed11/27/24 Prime Consultant (Firm) Name Hutchison Engineering, Inc. To perform or be responsible for the performance of the engineering services for the LPA, in connection with the PROJECT herein before described and enumerated below EXHIBIT A SCOPE OF SERVICES FOR FEDERAL PARTICIPATION PROJECTS See attached. BLR 05530 (Rev. 07/08/22)Page 8 of 9 Section Number 19-01502-40-BT County Knox Local Public Agency City of Galesburg Completed11/27/24 Prime Consultant (Firm) Name Hutchison Engineering, Inc. EXHIBIT B PROJECT SCHEDULE We anticipate the project being placed on the January 2026 state letting. BLR 05530 (Rev. 07/08/22)Page 9 of 9 Section Number 19-01502-40-BT County Knox Local Public Agency City of Galesburg Completed11/27/24 Prime Consultant (Firm) Name Hutchison Engineering, Inc. Exhibit C Qualification Based Selection (QBS) Checklist The LPA must complete Exhibit D. If the value meets or will exceed the threshold in 50 ILCS 510, QBS requirements must be followed. Under the threshold, QBS requirements do not apply. The threshold is adjusted annually. If the value is under the threshold with federal funds being used, federal small purchase guidelines must be followed. Form Not Applicable (engineering services less than the threshold) Items 1-13 are required when using federal funds and QBS process is applicable. Items 14-16 are required when using State funds and the QBS process is applicable. No Yes 1 Do the written QBS policies and procedures discuss the initial administration (procurement, management and administration) concerning engineering and design related consultant services? 2 Do the written QBS policies and procedures follow the requirements as outlined in Section 5-5 and specifically Section 5-5.06 (e) of the BLRS Manual? 3 Was the scope of services for this project clearly defined? 4 Was public notice given for this project? If yes Due date of submittal 07/15/22 Method(s) used for advertisement and dates of advertisement Galesburg Register Mail - 6/29/22. City Website - 6/29/22 through 7/15/22 5 Do the written QBS policies and procedures cover conflicts of interest? 6 Do the written QBS policies and procedures use covered methods of verification for suspension and debarment? 7 Do the written QBS policies and procedures discuss the methods of evaluation? Project Criteria Weighting Technical Competence 50% Capability to Meet Schedule 25% Approach to Work 25% 8 Do the written QBS policies and procedures discuss the method of selection? Selection committee (titles) for this project Public Works Dircetor, City Engineer, Purchasing Agent Top three consultants ranked for this project in order 1 Hutchison Engineering, Inc. 2 TWM 3 Mauer-Stutz 9 Was an estimated cost of engineering for this project developed in-house prior to contract negotiation? 10 Were negotiations for this project performed in accordance with federal requirements. 11 Were acceptable costs for this project verified? 12 Do the written QBS policies and procedures cover review and approving for payment, before forwarding the request for reimbursement to IDOT for further review and approval? 13 Do the written QBS policies and procedures cover ongoing and finalizing administration of the project (monitoring, evaluation, closing-out a contract, records retention, responsibility, remedies to violations or breaches to a contract, and resolution of disputes)? 14 QBS according to State requirements used? 15 Existing relationship used in lieu of QBS process? 16 LPA is a home rule community (Exempt from QBS). EXHIBIT A - SCOPE OF SERVICES Shared Use Path – S. Lake Storey Road to Gatewood Lane Page | 1 SERVICES: Hutchison Engineering’s scope of services will be limited to the following: PHASE II ENGINEERING 1.0 SCOPING 2.0 DATA COLLECTION 2.1 Survey 2.1.1 Topographic Pickup Survey. 2.2 Utility Coordination 2.2.1 Determine potential utility conflicts and develop plan to mitigate conflicts. 2.2.2 Coordinate utility relocations. 3.0 PERMITTING 3.1 Apply for and obtain NPDES Permit (Notice of Intent). 4.0 PLANS – The plans will include the following: 4.1 Cover Sheet 4.2 General Notes 4.3 Summary of Quantities 4.4 Schedules of Quantities 4.4.1 Identify pay items 4.4.2 Calculate quantities 4.4.3 Check quantities 4.4.4 Develop schedules EXHIBIT A - SCOPE OF SERVICES Shared Use Path – S. Lake Storey Road to Gatewood Lane Page | 2 4.5 Typical Sections 4.6 Removal Plans 4.7 Plan & Profile sheets including drainage and guardrail 4.7.1 Guardrail run-out length calculations 4.8 Erosion Control Plans 4.9 Traffic Control Plan 4.10 Pavement Marking & Signing Plan 4.11 ADA Ramp Details 4.12 Barrier wall design (US 150 Bridge) 4.12.1 Plan Sheet & Detail Development 4.13 Misc. Details including pipe culvert, erosion control, bridge repairs, etc. 4.14 Cross Sections 4.15 Highway Standards 5.0 SPECIFICATIONS – The specifications will include the following: 5.1 IDOT Usage Sheet Review 5.2 Supplement Specifications 5.3 Recurring Specifications 5.4 BDE Specifications 5.5 Guide Bridge Special Provisions 5.6 Local Roads Special Provisions 5.7 District 4 and Project Specific Special Provisions EXHIBIT A - SCOPE OF SERVICES Shared Use Path – S. Lake Storey Road to Gatewood Lane Page | 3 5.8 Develop Storm Water Pollution Prevention Plan 6.0 ESTIMATES 6.1 Estimate of Time 6.1.1 Populate Form 6.1.2 Determine production rates 6.2 Estimate of Cost 6.2.1 Populate Form 6.2.2 Determine unit prices 7.0 PLAN, SPECIFICATION, & ESTIMATES (PS&E) 7.1 Submit Pre-Final PS&E to the City of Galesburg and IDOT for review. 7.2 Develop Disposition of Comments from review comments. 7.3 Revise PS&E as necessary. 7.4 Obtain City of Galesburg signatures. 7.5 Submit Final PS&E to IDOT. 7.6 Answer contractor questions during bid process. 8.0 COORDINATION MEETINGS 8.1 Prepare for and attend coordination meetings with City and IDOT as needed. 9.0 QC/QA REVIEW 9.1 Perform utility location conflict review. EXHIBIT A - SCOPE OF SERVICES Shared Use Path – S. Lake Storey Road to Gatewood Lane Page | 4 9.2 Perform horizontal and vertical alignment review. 9.3 Perform typical section review. 9.4 Perform plan & profile sheet review. 9.5 Perform cross section review. 9.6 Bridge structural reviews. 9.7 Perform Pre-Final and Final Plan, Specification, and Estimate Review. 10.0 CONSTRUCTION SUPPORT 10.1 Answer questions from Resident Engineer. 10.2 Review shop drawings. ADMINISTRATION 1.0 GENERAL PROJECT MANAGEMENT 1.1 Scope, schedule, & budget monitoring 1.2 Design project team meetings. 2.0 GENERAL FIRM PROJECT ADMINISTRATION 2.1 Project Setup 2.2 Invoicing Local Public Agency County Section Number Prime Consultant (Firm) Name Prepared By Date Consultant / Subconsultant Name Job Number Remarks CONTRACT TERM 18 MONTHS OVERHEAD RATE 176.33% START DATE 12/31/2024 COMPLEXITY FACTOR 0 RAISE DATE 1/1/2024 % OF RAISE 2.00% END DATE 6/29/2026 Year First Date Last Date Months % of Contract 0 12/31/2024 1/1/2024 -12 -66.67% 1 1/2/2024 1/1/2025 12 68.00% 2 1/2/2025 1/1/2026 12 69.36% 3 1/2/2026 7/1/2026 6 35.37% The total escalation =6.07% ESCALATION PER YEAR PAYROLL ESCALATION TABLE EXHIBIT D COST ESTIMATE OF CONSULTANT SERVICES (CECS) WORKSHEET FIXED RAISE CITY OF GALESBURG KNOX 19-01502-40-BT HUTCHISON ENGINEERING W. SHANE LARSON 11/27/2024 Note: This is name of the consultant the CECS is being completed for. This name appears at the top of each tab. Printed 11/27/2024 6:26 AM Page 1 of 6 BLR 05514 (Rev. 02/09/23) ESCALATION Local Public Agency County Section Number CITY OF GALESBURG 19-01502-40-BT Consultant / Subconsultant Name Job Number MAXIMUM PAYROLL RATE 86.00 ESCALATION FACTOR 6.07% IDOT CLASSIFICATION PAYROLL RATES CALCULATED RATE ON FILE Principal $86.00 $86.00 Project Manager $84.08 $86.00 Engineer V $71.42 $75.75 Engineer IV $62.80 $66.61 Engineer III $52.25 $55.42 Engineer II $39.80 $42.21 Engineer I $33.87 $35.92 Eng Tech VI $63.75 $67.62 Eng Tech V $54.92 $58.25 Eng Tech IV $46.19 $48.99 Eng Tech III $36.19 $38.39 Eng Tech II $30.00 $31.82 Eng Tech I $25.17 $26.70 EXHIBIT D COST ESTIMATE OF CONSULTANT SERVICES (CECS) WORKSHEET FIXED RAISE PAYROLL RATES KNOX Printed 11/27/2024 6:26 AM Page 2 of 6 BLR 05514 (Rev. 02/09/23) RATES Local Public Agency County Section Number CITY OF GALESBURG KNOX 19-01502-40-BT Consultant / Subconsultant Name Job Number NAME Direct Labor Total Contribution to Prime Consultant Total 0.00 0.00 NOTE: Only subconsultants who fill out a cost estimate that splits out direct labor may be listed on this sheet. SUBCONSULTANTS EXHIBIT D COST ESTIMATE OF CONSULTANT SERVICES (CECS) WORKSHEET Printed 11/27/2024 6:26 AM Page 3 of 6 BLR 05514 (Rev. 02/09/23) SUBS Local Public Agency County Section Number Consultant / Subconsultant Name Job Number QUANTITY CONTRACT RATE TOTAL $0.00 $0.00 $0.00 500 $0.66 $327.50 4 $65.00 $260.00 $0.00 $0.00 $0.00 $0.00 $0.00 1 $50.00 $50.00 1 $50.00 $50.00 1 $75.00 $75.00 $0.00 $0.00 $0.00 $0.00 $0.00 350 $14.00 $4,900.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 40 $17.96 $718.40 40 $29.13 $1,165.20 $0.00 $7,546.10TOTAL DIRECT COSTS: OT Premium Eng 1 = $35.92/2 = $17.96 OT Premium Eng Tech V = $58.25/2 = $29.13 Lab Services Actual Cost (Provide breakdown of each cost) Equipment and/or Specialized Equipment Rental Actual Cost (Requires 2-3 quotes with IDOT approval) Aerial Photography and Mapping Actual Cost (Requires 2-3 quotes with IDOT approval) Utliity Exploratory Trenching Actual Cost (Requires 2-3 quotes with IDOT approval) Testing of Soil Samples Actual Cost Courthouse Fees Actual Cost Storm Sewer Cleaning and Televising Actual Cost (Requires 2-3 quotes with IDOT approval) Traffic Control and Protection Actual Cost (Requires 2-3 quotes with IDOT approval) Public Meeting Exhibits/Renderings & Equipment Actual Cost (Submit supporting documentation) Recording Fees Actual Cost Transcriptions (specific to project)Actual Cost Web Site Actual Cost (Submit supporting documentation) Advertisements Actual Cost (Submit supporting documentation) Public Meeting Facility Rental Actual Cost (Submit supporting documentation) 2-Way Radio (Survey or Phase III Only)Actual Cost Telephone Usage (Traffic System Monitoring Only)Actual Cost CADD Actual Cost (Max $15/hour) Project Specific Insurance Actual Cost Monuments (Permanent)Actual Cost Photo Processing Actual Cost Overnight Delivery/Postage/Courier Service Actual Cost (Submit supporting documentation) Copies of Deliverables/Mylars (In-house)Actual Cost (Submit supporting documentation) Copies of Deliverables/Mylars (Outside)Actual Cost (Submit supporting documentation) Parking Actual Cost Overtime Premium portion (Submit supporting documentation) Shift Differential Actual Cost (Based on firm's policy) Vehicle Owned or Leased $32.50/half day (4 hours or less) or $65/full day Vehicle Rental Actual Cost (Up to $55/day) Tolls Actual Cost Lodging Taxes and Fees (per GOVERNOR'S TRAVEL CONTROL BOARD)Actual Cost Air Fare Coach rate, actual cost, requires minimum two weeks' notice, with prior IDOT approval Vehicle Mileage (per GOVERNOR'S TRAVEL CONTROL BOARD)Up to state rate maximum List ALL direct costs required for this project. Those not listed on the form will not be eligible for reimbursement by the LPA on this project. EXHIBIT D COST ESTIMATE OF CONSULTANT SERVICES (CECS) WORKSHEET ITEM ALLOWABLE Lodging (per GOVERNOR'S TRAVEL CONTROL BOARD) Actual Cost (Up to state rate maximum) DIRECT COSTS WORKSHEET CITY OF GALESBURG KNOX 19-01502-40-BT Printed 11/27/2024 6:26 AM Page 4 of 6 BLR 05514 (Rev. 02/09/23) DIRECT COSTS Local Public Agency County Section Number Consultant / Subconsultant Name Job Number OVERHEAD RATE 176.33%0 TASK DIRECT COSTS (not included in row totals)STAFF HOURS PAYROLL OVERHEAD & FRINGE BENEFITS FIXED FEE SERVICES BY OTHERS TOTAL % OF GRAND TOTAL - - - - Phase II Engineering 450 21,859 38,544 7,213 67,616 85.50% Administration 24 1,267 2,234 418 3,919 4.96% - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Subconsultant DL $0.00 Direct Costs Total ===>$0.00 $7,546.10 9.54% TOTALS 474 23,126 40,778 7,631 - 79,081 100.00% 63,904 COMPLEXITY FACTOR CITY OF GALESBURG KNOX 19-01502-40-BT EXHIBIT D COST ESTIMATE OF CONSULTANT SERVICES (CECS) WORKSHEET COST ESTIMATE WORKSHEET Printed 11/27/2024 6:26 AM Page 5 of 6 BLR 05514 (Rev. 02/09/23) COST EST Local Public Agency County Section Number Consultant / Subconsultant Name Job Number AVERAGE HOURLY PROJECT RATES SHEET 1 OF 1 PAYROLL AVG TOTAL PROJ. RATES HOURLY Hours %Wgtd Hours %Wgtd Hours %Wgtd Hours %Wgtd Hours %Wgtd Hours %Wgtd CLASSIFICATION RATES Part.Avg Part.Avg Part.Avg Part.Avg Part.Avg Part.Avg Principal 86.00 4.0 0.84%0.73 4 16.67%14.33 Project Manager 86.00 0.0 Engineer V 75.75 0.0 Engineer IV 66.61 40.0 8.44%5.62 40 8.89%5.92 Engineer III 55.42 0.0 Engineer II 42.21 0.0 Engineer I 35.92 210.0 44.30%15.92 210 46.67%16.76 Eng Tech VI 67.62 8.0 1.69%1.14 8 33.33%22.54 Eng Tech V 58.25 200.0 42.19%24.58 200 44.44%25.89 Eng Tech IV 48.99 0.0 Eng Tech III 38.39 0.0 Eng Tech II 31.82 12.0 2.53%0.81 12 50.00%15.91 Eng Tech I 26.70 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 TOTALS 474.0 100%$48.79 0.0 0.00%$0.00 450.0 100%$48.58 24.0 100%$52.78 0.0 0%$0.00 0.0 0%$0.00 EXHIBIT D COST ESTIMATE OF CONSULTANT SERVICES (CECS) WORKSHEET 19-01502-40-BTKNOXCITY OF GALESBURG Phase II Engineering Administration Printed 11/27/2024 6:26 AM Page 6 of 6 BLR 05514 (Rev. 02/09/23) AVG 1 TOWN OF THE CITY OF GALESBURG Date: December 16, 2024 Agenda Number: 24-9028 TOWN FUND $8,130.31 GENERAL ASSISTANCE FUND $10,706.76 IMRF FUND SOCIAL SECURITY/MEDICARE FUND LIABILITY FUND AUDIT FUND TOTAL $18,837.07