Lake County, Fox Lake settle $1.2 million sewer fund dispute
Lake County and Fox Lake have settled a dispute over the village's allocation of $1.2 million from the Northwest Regional Sewer Fund to its general fund.
The agreement announced Thursday was reached through mediation of a dispute over allocations the village made between 2011 and 2015 to recoup "indirect costs."
During the next several years, Fox Lake will collect $846,161 less in charges than it would have for hosting a regional sewage treatment plant. It also will begin using a new method to determine allowable costs for which it is reimbursed but will be credited $400,000 for allowable costs it didn't charge between 2011 and 2015.
Fox Lake owns and operates the Northwest Regional Water Reclamation Facility, and the county owns a system of sewers that bring waste from various towns and unincorporated areas to the plant. The parties have had an agreement regarding sewage treatment and disposal since 2010. The dispute arose after an accounting review but had no affect on plant operations.
"We are pleased to have reached an agreement that will benefit our customers in the northwest portion of the county and requires the parties to utilize new accounting methods that bring a new accountability and more transparency to the finances of this vital public service," according to Lake County Board Chairman Aaron Lawlor.
The dispute predates Mayor Donny Schmit and the village staff, according to a county news release.
Schmit said the village has been committed to "doing what's right to ensure proper fiscal oversight" of the plant.
"This agreement shows that Lake County and Fox Lake can work together even when there are significant difference of opinion about proper cost allocations between us," he said.