Associate Judge Thomas Meyer ruled against Algonquin Township yesterday in the tax protest case brought by Tim Dwyer.
The case argued that Algonquin Township had too much money in the bank in a number of its funds and levied real estate taxes that were too high.
The Judge found there was unnecessary accumulation of funds in the
- Algonquin Town Fund
- General Assistance Fund
- Equipment and Building Fund
- IMRF Fund
- Audit Fund
- Insurance Liability Fund
- Social Security Fund
due to excessive 2014 Algonquin Township and Algonquin Township Road District levies.
Testifying in court on November 20th were former Algonquin Township Road Commissioner Bob Miller and Mary Bowman, a principal of the Township’s accounting firm, Brown & Company.
The accountant testified that all fund had more than two years’ expenditures.
The Town Fund had 2.06 times the average three-year expenditures.
The Road District’s Building and Equipment Fund had 2.21 times the $1.2 million spent on the average over the previous three years.
The Public Assistance Fund’s ratio was 1::3.41.
The Social Security Fund was 2.82 times too high.
IMRF accumulations were 2.17 times higher than they should have been.
The Liability Insurance Fund was 3.45 times too high.
The Audit Fund was an astonishing 24.33 times higher than could be justified.
Miller testified that no ordinance identified any project which necessitated the accumulation of public funds.
Judge Meyer ruled that the tax objectors had “established a prima facie case for excess accumulation,” sustaining the claims against the funds named above.
A total of $123,827.49, plus accrued interest, will be given to attorney Dwyer for distribution to those who joined in the suit and his legal fees.
The Township and Road District will be required to refund the following amounts:
- Town Fund: $60,955.27
- Gen. Assistance: $9,390.40
Equipment & Bldg: $47,740.50
Plus these funds
- IMRF: $1,309.71
- Audit Fund: $395.39
- Ins. Liability Fund: $1,317.95
- Social Security Fund: $2,718.27
The refunds will be coordinated through the McHenry Co. Treasurer’s office.
The Township will also be required to pay an additional $1,172.08 in costs which will be divided equally between the Township and Road Dist.
Only those who took part in the suit are eligible for property tax rebates.
Next year’s real estate tax levies for both the Township and the Road District (in most respects two separate governments) were cut 5%.