Hainesville in tiff with neighbor over police contract

After months of disagreement, Hainesville officials want to terminate the village's police contract with Round Lake Park.

Meanwhile, Round Lake Park officials say they'll sue Hainesville if that's what it takes to get the more than $400,000 owed for police services.

The Village of Round Lake Park has provided police service for Hainesville residents for eight years. Under the current contract -- which runs until 2009 -- Hainesville pays 30 percent of police costs.

Round Lake Park Mayor Jean McCue found earlier this year that Hainesville had mistakenly been billed at a flat rate since 2004. The amount, $343,173 a year, is less than 30 percent of the budget, which was about $1.7 million in 2005 and 2007, and about $1.6 million in 2006.

Village Attorney Peter Karlovics said Round Lake Park now seeks to recover the difference for fiscal years 2005, 2006 and 2007, totaling $411,529.

Karlovics admits that Round Lake Park should have caught the billing error earlier. He said Round Lake Park wants to negotiate with Hainesville officials to settle the matter, but Hainesville officials have refused.

"The Village of Round Lake Park does not want to leave Hainesville high and dry with no service," he said.

But Hainesville Mayor Ted Mueller says Hainesville paid its invoice in good faith, and that he tried to communicate with McCue to review Hainesville's contribution. Then he received a letter stating the village owed $411,000 because of the billing mistake.

"We recognized our contribution should go up and we would review it," he said. "We did not feel an obligation to pay $411,000."

Hainesville sent a letter on Aug. 27 to terminate the police contract. The letter states the village will seek police services elsewhere, such as in cooperation with another municipality.

Meanwhile, Round Lake Park is giving Hainesville 60 days to pay the $411,000. If Hainesville does not respond, Karlovics said Round Lake Park will move forward with litigation.

"It's not something the Village of Round Lake Park wants to do. It is forced into this solution," he said. "Litigation is not something that would be best for the taxpayers of these villages."

Mueller said he hopes both villages can come up with a solution.

"I would personally like to sit down with Mayor McCue, with one of her senior trustees, one of my senior trustees, my village clerk and lock us into a room and come up with some sort of agreement we can present our boards and keep the lawyers out of it," Mueller said.