City of Dixon fires Crundwell

DIXON – Although she submitted a letter of resignation, Dixon’s top financial officer was fired Monday morning at a special council meeting that also was punctuated by another call for the mayor’s resignation.

The City Council’s vote to fire longtime comptroller Rita A. Crundwell was unanimous.

Crundwell was arrested April 17 at City Hall after investigators said she had misappropriated more than $30 million in city funds over 6 years.

The council did not take action sooner because the city had to notify Crundwell of the hearing and of the reasons for her termination, and give her a chance to respond, Mayor Jim Burke said.

The council also must give 48 hours notice of public meetings, and members did not want to meet on the weekend, he said.

Crundwell, 59, is free on a federal recognizance bond, charged with a single count of federal wire fraud. She is accused of defrauding the city by wiring $175,000 in city funds from a bank in St. Paul, Minn. to a bank in Cincinnati in November. Federal prosecutors have declined to say whether more charges are pending, or if others are suspected of being involved.

Neither she nor her attorney attended the meeting, but a letter of resignation was sent to Burke over the weekend. It cited the conditions of her bond, which prevent her from holding a job in which she handles money.

“The fact that it has been tendered does not preclude you from proceeding with your own deliberations and determining whether she should be suspended or terminated,” said attorney Ron Coplan, whom the city brought in to handle the issue and run the hearing.

“Her conduct appears to have crossed the line and is characterized as gross misconduct.”

Copland, who is the city attorney for Sterling and Morrison, has experience in personnel issues, Burke said.

The council decided not to consider the letter but instead to fire Crundwell effective April 17, the day of her arrest.

“She should have been fired on the spot,” Public Safety Commissioner Dennis Considine said.

That wasn’t possible, Coplan said.

“She can’t be fired just because she’s arrested,” he said. “You have to have a basis, and the basis at the bare minimum has to be articulated. It’s important that minimal procedural due process is followed. That’s what we’re doing here today. I can fully understand the emotion of this issue. It’s very understandable.”

As the commissioners filed out of the room and reporters began asking Burke questions, someone in the crowd called out, “When are you going to resign? We have no confidence in Mayor Burke.”

Burke has faced some calls for his resignation, but he repeated Monday that he does not plan to resign.

“We have the capability to get this thing straightened out,” he said. “Somebody’s called for the resignation of the entire council. The idea of bringing in five new people to take over at this point I don’t think would be too wise.”

The city is looking into hiring an interim or new permanent comptroller, Burke said, but in the meantime, Crundwell’s duties have been assumed by City Clerk Kathe Swanson, who blew the whistle on Crundwell back in October.

No chances are being taken, though, Burke said. Now two additional people – him and Public Works Director Shawn Ortgiesen – will sign off on checks.

Besides her duties as the comptroller, Crundwell also was a personnel director and oversaw the city clerk and deputy city clerk.

Burke also met Monday with Lee County State’s Attorney Henry Dixon, to discuss whether state charges may be filed against Crundwell.

Dixon told Sauk Valley Media last week that he was waiting until federal prosecutors obtain an indictment before making that decision.

A forensic audit and internal investigation is in the works to find out whether other city employees were involved and how and from which funds any misappropriations occurred, Burke said.

“I don’t think there are any more people within the city that’s involved with this, but whether or not there could be someone outside, that’s very possible,” he said.

In other topics

Sauk Valley Tea Party to meet

DIXON – The Sauk Valley Tea Party’s monthly meeting will focus on transparency.

“In light of recent events in Dixon, this is a timely topic,” said the release from the organization’s leader, Amanda Norris.

Dixon businessman Liandro Arellano Jr., who ran unsuccessfully in the 90th House Republican race and who owns Jimmy John’s in Dixon, and Republican Lee County Board candidate Jack Schrauth will lead the discussion, it said.

The meeting will be at 6:30 tonight in the Loveland Community Building, 513 W. Second St..

Go to saukvalleyteaparty.com for more information.

Residents plan protest for Friday

DIXON – Some residents plan to “occupy” Dixon city offices Friday, according to a Facebook group that sprang to life Saturday.

“Occupy Dixon for 30 mil!” was started by Dixon resident Jennifer De Maria. It had 244 members by Monday evening though only nine people said they planned to attend Friday.

The all-day event is scheduled to start at 8 a.m. at the Old County Courthouse.

Council will take public comments

The Dixon City Council next meets at 6:30 p.m. May 7 in council chambers at City Hall, 121 W. Second St.

Public comment will be taken, but time limits may be set depending on how many people want to speak, Mayor Jim Burke said, anticipating reaction to the Rita Crundwell case.

Agendas and minutes are available at www.discoverdixon.org under “Form Downloads” at the top of the page, or call City Hall, 815-288-1485.