Local governments tend to protect themselves from risk by joining together by type of government in risk management pools.
Some have read about them before when the Crystal Lake Park District’s risk management pool paid the legal fees when form Park Board member Leona Nelson sued to district for the board’s having censured her for revealing what occurred in a secret meeting. (Sharing what happens in Executive Session, by the way, is not illegal.)
More recently, McHenry County Blog revealed that the legal fees for James Sotos, the attorney defending Sheriff Keith Nygren against former Deputy Zane Seipler’s wrongful termination suit, are now being paid by the risk management pool (Illinois Counties Risk Management Trust) to which county government belongs. The county had to put up the first $100,000. Those contributing cost-sharing pool pay the rest, giving the county little financial incentive to settle the case. (This is the one in which racial profiling is being investigated.
In any event, the Township Officials of Illinois run a similar pool and have declared a dividend of 15% of what was paid in 2006-6.
For Grafton Township that amounts to $4,857, 59% for the Road District, the rest for the Towns Fund.
Supervisor Linda Moore’s press release about the subject follows:
TOIRMA PAYS DIVIDEND TO MEMBERS
Grafton Township Receives Dividend From TOIRMA
The Township Officials of Illinois Risk Management Association (TOIRMA) has voted to pay a dividend. All TOIRMA members who joined the program from June 1, 1986 through May 31, 2006 and continue to be members in the current year received a dividend.
TOIRMA is a self-funded intergovernmental pool established to provide coverages exclusively for Illinois townships that are members of the Township Officials of Illinois.
This is the twentieth year a dividend has been paid to eligible members. A total of 1,311 member townships will be paid $1,849,889 which represents approximately 15% of their annual contribution for the 2005-2006 program year.
The dividend is applied to the township’s annual contribution.
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The dividend amounts to $4,857. 59% of it will be credited to the Township Road District’s next premium, 41% to the Town Fund’s.