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December 16, 2014 ROCK FALLS
City sues Tourism Board Seeks all money in its reserves BY CHRISTI WARREN
ROCK FALLS – The city is asking a judge to force the Rock Falls Tourism Board to hand over all the money in its coffers to the city. A petition was filed Friday in Whiteside County Court to seek an injunction to prohibit Tourism from spending any of the money in its reserves, and to compel its return to the city.
As of Wednesday, Tourism officials had not filed a response. A hearing has yet to be set. A call for comment to the Tourism Board were not returned. Since the city terminated its agreement with Tourism in mid-August, its attorneys have been working to retrieve a substantial amount of money – or what’s left of it – from Tourism’s coffers, Mayor Bill Wescott said. Tourism received $661,000 in public funds in 2008, when Rock Falls entered into an agreement for tourism services. Tourism also received all income from the local
hotel/motel tax. Now that the agreement is over, the city wants to make sure the public’s money is back where it belongs – with the city, Wescott said. “We asked them to return any outstanding funds that they had in reserve, or had in their accounts, to us, because they are public funds,” Wescott said. “Because [Tourism] is no longer under an agreement with us, those funds should be returned. They have refused.” Exactly how much money that might be, the city does not know. The lawsuit is the latest
salvo in an increasingly heated battle. Before May 1, 2008, the city handled tourism duties and controlled the reserves. When the agreement was signed, Tourism received that money, plus the hotel tax, which, in 2012-13, brought in $160,148.41. The city received 5 percent to cover administrative costs, which left Tourism with about $152,141. An ordinance that governs the hotel tax calls for the city to inspect Tourism’s financial records at least once a year and file a written report no later than April 1 with the City
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STERLING – The Sauk Valley Area Chamber of Commerce didn’t have to look far for a new executive director. Kris Noble, who was hired in September to be a project manager at the chamber, will take over the position in January. She will succeed Kim Ewoldsen, who will go
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Council. Recently, the City Council asked for Tourism’s financial records from 2008 through 2012, and a copy of a 2013 audit. The audit, paid for by the city, was the first that had been done during that period. Tourism officials have declined to provide the information. The city does not suspect financial wrongdoing on Tourism’s part, Wescott has said, but the city is responsible for keeping track of the money it levies, which includes the hotel tax funds. Tourism’s failure to provide records has led
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to the suit. Sally Scanlan, a Tourism Board member, said in late September the board believed the city must request the financial records in writing. “We weren’t trying to withhold anything,” she said during a meeting with city officials. “Our interpretation of the ordinance was that the records were to be requested in writing.” Board members also said they were concerned that, with a new hotel planned as the cornerstone to the riverfront RB&W District, the hotel tax might not be used properly.
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