Dissolution could mean tax in Campton Hills, officials warn

Campton Hills officials warn they might have to impose a tax to cover outstanding debt if the village is dissolved by referendum in the Nov. 4 election.

By law, dissolution would require the village to sell all its assets, dismantle police and village operations and settle all remaining bills and loans. In addition, the village would be responsible for unemployment and pension benefits for eligible employees and police officers who would lose their jobs, officials said.

Village President Patsy Smith says trustees still are investigating the nuances of dissolution law, but "the moral of the story is, there is a cost to dissolving the village." Critics counter that Campton Hills supporters are using the issue as a scare tactic aimed at taxpayers in favor of dissolution, and say a one-time tax would be easier to swallow if the village goes away.

Chris Baldwin, a village resident and dissolution proponent, also questions whether the village would have the legal means to institute a tax. Currently, tax cap laws prevent Campton Hills from levying taxes without voter approval by referendum.

"Fear created this village," he said, "and now it's being used as a reason for why it shouldn't be dissolved."

The law itself lacks specifics. While Illinois dissolution statute says the elected leaders of a dissolving municipality "may levy and collect taxes" to pay off outstanding debt, it does not address whether tax caps come into play.

According to Smith, the village, which incorporated a little more than a year ago, has no reserves and currently owes about $140,000 on a loan that paid for a recent special census. There also are two years remaining on Police Chief Greg Anderson's contract; his annual salary is $80,000.

In addition, Smith said, the village would have to support pensions for roughly seven full-time police officers and unemployment benefits for a handful of village workers. There also is a village hall lease agreement that doesn't expire until summer, among other contractual obligations.

Village officials said they could not provide a general estimate of where debt might stand if dissolution is approved next month. Also unclear is the value of the village's total assets, which would offset any remaining debt.

"If the voters were to dissolve the village, then we would need to look at the obligations and there would have to be a tax levy for that purpose," Village Attorney Bill Braithwaite said. But, "We haven't done any research on this issue because we do not believe it's going to happen."