The city of Dixon’s financial woes were eased significantly Wednesday. The City Council approved a $40 million settlement with auditors and a bank for their roles in allowing former comptroller Rita Crundwell to embezzle millions over two decades. The city’s former auditor, Clifton-Larson-Allen, will pay the bulk of the out-of-court settlement. Former auditor Sam Card and Fifth Third Bank will also pay into the deal. Dixon Mayor Jim Burke is thrilled with the outcome, but adds that the city will never make up for the nearly $54 million Crundwell stole:
“We’re going to have a public meeting, we need to lay out what the financial impact is to the city, what kind of debts we incurred because borrowed a lot of money to keep paying our bills while all this was going on,” Burke says.
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Dixon’s attorneys will get about $10 million for their work. The city is waiting for another ten million in auction proceeds to be turned over by the federal government. Burke says the city also plans to go after more of Crundwell’s assets, including her share of her family’s farm in Dixon.