City must figure out best way to pay for water main replacement for six-block section of Broadway

QUINCY — To loan or transfer?

That was the question posed by Alderman Mike Rein (R-5) during Monday night’s Quincy City Council meeting regarding how the city plans to borrow from the city’s $6 million reserve fund to pay for a water main replacement project on Broadway from 24^th to 30^th Street.

An ordinance that would transfer $4 million in unbudgeted general funds to the water and sewer fund got its first reading Monday night. That transfer would avoid delaying already-planned projects on College Avenue from Fourth to Eighth Street (in the city’s 2^nd Ward) and Jackson from Fifth to 12^th (which spans the city’s 6^th and 7^th Wards). The Jackson project already has been delayed for three years, and the College Avenue project has been delayed two.

“We talked last week about that being a low interest loan,” Rein said to Comptroller Sheri Ray. “I fail to recognize or read about loan payments (in the ordinance).”

“We talked about the transfer, we talked about loans, and when the motion was made (at the April 7 City Council meeting), I thought was the motion for a transfer,” Ray said. “If that’s the preference, to create a low-interest loan, then we would just need to discuss what interest rate (and) what payback term.”

Ray mentioned that the city loaned money to the barge dock with a 2 percent interest rate and for a solar project at Quincy Regional Airport with a 1 percent interest rate in recent years. She said recent Environmental Protection Agency funds had interest rates less than two percent.

“I’m not pushing (for 1 percent), but I think we ought to have that discussion,” Rein said.

Aldermen voted to send the ordinance to the Finance Committee, which will make its suggestion during a meeting before the April 21 City Council meeting.

“Water and sewer, yes, it serves commercial customers, but a lot of them are residential. That’s one of those primary focuses,” Ben Uzelac (D-7) said. “So if we’re charging ourselves interest on a loan for water and sewer, I want to make damn sure that it’s not going to affect the water rate increase on top of Fiscal Year 27 this year. We really need to take that into consideration when we’re charging ourselves interest.”

The ordinance also called for amending the 2024-25 Fiscal Year budget to address $120,000 in excess revenue from Western Illinois University for the 2025 Fire Academy. The number of participating students more than doubled from last year.

“Excess tuition and extra students means extra cost,” Ray said. “You have to pay (Quincy University) for more students. There are more equipment rentals. … After you increase revenues, we want to increase expenditures. We’re only increasing expenditures by $80,000, so there’s a profit.”

“Why wouldn’t that $40,000 go to general fund?” Rein asked.

Ray said it could. She also said the regional training facility also had to absorb a loan that was forgiven when the city acquired the land, and the extra money could help pay that loan.

Aldermen sent that ordinance to the finance committee.

Earlier in the meeting, Fire Chief Steve Salrin had a swearing-in ceremony for Brad Kendrick, who was promoted from lieutenant to deputy chief of operations, and Ryan Willingham, who was promoted from firefighter to lieutenant. Willingham has been with the Quincy Fire Department since Aug. 15, 2012, while Kendrick has been with the department since July 19, 2005.

In other action, aldermen:

• Waived the liquor ordinance for Instant Replay, 2739 Chestnut, which requested to open at 9 a.m. on July 12. 
• Approved a special event application from the Quincy Area Chamber of Commerce requesting permission to hold the annual Dogwood Parade on May 3.
• Approved a special event application from the Friends of the Lorenzo Bull House requesting permission to hold the Dogwood Parade Festival on its front lawn on May 3.
• Approved a bid from Area Distributors for a one-year agreement for janitorial supplies beginning May 1 for $23,407.49.
• Approved paying a computer software yearly license and maintenance invoice for $8,950.83 to Caliber Public Safety, doing business as InterAct Public Safety Systems, of Chicago.
• Sitting as the Quincy Town Board, approved the Quincy Township budget of $303,050 for the 2025-26 Fiscal Year that began March 21. The levy for this year’s budget increased by 4.5 percent from last year’s $290,000.
• Switched the Quincy Township insurance carrier for liability insurance since the township took ownership of the former City Hall Annex building. A plan through Township Officials of Illinois Risk Management Association (TOIRMA) will cost approximately $18,000.