Dixon council to vote on ComEd settlement worth $113,540

City to split funds with auditing firm

Bucket trucks from ComEd are at work installing power lines that will serve the Dixon Park District community center and headquarters at The Meadows.

DIXON – The Dixon City Council is nearing a settlement with ComEd after an auditing firm found lost revenue owed to the city.

In December 2017, the City Council approved a contract with Chicago-based Azavar Audit Solutions Inc., a company specializing in finding collection errors and lost money for local governments by looking at fees, franchise agreements and utility taxes.

Azavar uses software to compare service addresses within city limits to those recorded by utility companies such as electric, gas, phone and internet providers that send tax money to the city.

There was no cost to having Azavar compile an audit, but it would take a portion of the recouped funds if any were found.

The company is wrapping up the city audit and discovered ComEd had been withholding taxes from the city, Dixon Finance Director Becky Fredericks said Tuesday.

After litigation and pushback from ComEd on whether the company owed the city money, a preliminary settlement was reached for $113,540.

The City Council will need to vote on approving the settlement, of which Azavar will collect 45%, 5% will go toward litigation, and the city will receive the remaining 50%.

City Attorney Rob LeSage said that type of auditing is difficult for municipalities to do themselves, and the settlement amount is fair.

Rachel Rodgers

Rachel Rodgers

Rachel Rodgers joined Sauk Valley Media in 2016 covering local government in Dixon and Lee County.