Council sends proposed transfer/loan for street projects and Fire College revenue increase to finance committee

The Quincy City Council held a first reading on an ordinance that would transfer $4 million from general funds to water and sewer funds to complete scheduled street projects and would recognize approximately $120,400 in excess tuition revenue from Western Illinois University for the Fire Academy.

Finance and public-works discussion focused on whether the $4 million transfer should be structured as a repayable, low-interest interfund loan and, if so, what interest rate and term would apply. Finance staff cited recent internal loans: the barge dock loan carried roughly a 2% interest rate and an airport solar loan carried about 1%; one council member suggested a 1% rate would be acceptable if repayment terms were defined. Public Works staff cautioned that the water and sewer fund that would repay any loan might not currently have sufficient cash flow to cover scheduled repayments without affecting rates.

Council voted to send the proposed ordinance to the finance committee for more detailed review of loan terms and the impact on water and sewer rates. The council also discussed the Fire College tuition receipts; staff said Western Illinois University sent a check for roughly $200,000, exceeding the budgeted $80,000, and the ordinance would increase both revenues and related expenditures for the training facility. Council members asked whether surplus tuition receipts could be returned to the general fund or retained by the training facility; staff said that choice would be part of the finance discussion.

Council member comments emphasized the need to avoid a water-rate impact from internal loan repayments and to be transparent about interest and payback schedules. The finance committee agreed to place the item on its agenda for more detailed terms and possible recommendation back to the full council.