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Mayor: Crundwell touched only fire pension

Money was repaid in less than 2 months

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DIXON – Only the fire pension fund was affected when then city Comptroller Rita Crundwell withdrew $100,000 to pay city bills, the mayor said Wednesday.

While both the fire and police pension accounts are being audited by the Illinois Department of Insurance, interim comptrollers who were hired after Crundwell’s arrest and subsequent firing have discovered only one withdrawal from the fire pension account, Mayor Jim Burke said.

The investigation by the retired finance directors, Stan Helgerson and David Richardson, shows that the fund was withdrawn from the pension account and put into the general fund, from which the city pays its bills, on May 31, 2011. The money was repaid on July 22, 2011.

Earlier reports said the money was withdrawn from both the fire and police pension accounts, but only the fire pension was affected.

Helgerson and Richardson have been discussing changes, however, with the boards for both pensions, according to their weekly reports submitted to the mayor.

They discussed “possible modifications to current administrative practices including accounting, investment advising and receipt of property taxes,” according to the report dated May 24.

The Dixon City Council already approved changes that would have property taxes directly deposited into the accounts instead of having them funneled through the city.

Crundwell is charged with one count of federal wire fraud in connection with what prosecutors say was the misappropriation of $53 million in city funds over the past two decades. She pleaded not guilty on May 7; a status hearing is scheduled for June 15.