APW approves $2.09 million alley and pedestrian contract after changing funding source; 5-1 vote

The Administrative & Public Works Committee on June 22 approved Resolution 125-R-26, authorizing the city manager to execute a $2,090,595.28 agreement with Zenith Construction and Engineering Services LLC for 2026 alley and pedestrian crossing improvements (Bid 26-32). The committee also approved a staff-recommended change to the sources of funding that reduces the amount the city will bond for the work.

City staff explained the contract bundles several projects and that property-owner cost shares were originally expected to be bonded because the special-assessment fund could not front the cash. Staff said the finance and budget committee and the council agreed to shift $1,000,000 from the general-fund cash reserve into the special-assessment fund to bolster cash value, allowing the city to avoid bonding the property-owner share. The special-assessment amount would increase from roughly $225,000 in the adopted budget to about $645,156 under the change, and the bonded amount would be reduced accordingly.

Council members debated whether the city should issue long-term debt at this time. One councillor said they supported the project but opposed leveraging multi-decade debt for a special-assessment item while the motor-fuel-tax fund balance and an IDOT audit remain unresolved. The committee then voted on the main contract and the funding-source change; the measure passed by a 5-1 roll-call vote, with Council Member Kelly recorded as voting "No."

Why it matters: The funding-source change reduces the city's bonding needs immediately but shifts more up-front cost to special assessments for property owners. Council discussion flagged fiscal-policy choices about when to issue debt and the impact of an ongoing motor-fuel-tax audit on financing decisions.

The committee approved the measure and staff will proceed with contract execution under the revised funding plan.