As Dolton works toward developing a strategy to pay a $33.5 million judgment, Mayor Jason House said Monday he hopes the village’s plan will result in a “zero or very minimal increase” in property taxes.
“We are hard at work, keeping in mind that this is still a fluid discussion or negotiation,” House said.
He said some details will not be shared until after April 23, the deadline for the village to submit a plan to pay the judgment to Cook County Judge William Sullivan.
Dolton has three options to pay the $33.5 million judgment and accrued interest from a police chase lawsuit filed in 2022, Sullivan said during a court hearing Feb. 20. The village can issue a bond, issue a tax levy increase or increase costs of services.
House said Monday the village hopes to pay it through “identifying a separate revenue source,” though he didn’t specify what that source could be.
Last month, village attorney Michael McGrath presented possible ways the village could seek help through its financial crisis, including petitioning Gov. JB Pritzker to establish a financial planning and supervision commission, freezing all debts for up to two years and recovering funds through a lawsuit brought against the village’s former insurer.
The village said the American Alternative Insurance Corporation refused to settle before and during the police chase lawsuit’s trial, leading to the $33.5 million judgment.
McGrath said Monday Dolton’s lawsuit against the insurance company is progressing, as the insurance company’s motion to dismiss the case was recently denied.
McGrath previously said the village and plaintiffs in the police chase lawsuit together hope to recover as much as $100 million from the insurance company, though the federal case is expected to continue for at least five years.
“The timing on both the (county) case and federal case is very pivotal on how this gets resolved and resolved with minimal impact to the residents of our town,” House said.
As of Feb. 20, the village owed $40.6 million to the families of John Kyles, who died following a 2016 Dolton police chase, and Duane Dunlap, who was left severely injured. Through interest, the debt has accrued 6% per year, or about $2 million per year, since it was issued.
The village has yet to make payments on the judgment.
McGrath said following the Feb. 20 court hearing, the village offered two settlement options to attorneys for the families of Kyles and Dunlap that were refused.
New administrator
The Dolton Village Board also voted to hire Bill Manousopoulos as village administrator to replace Charles Walls, who was appointed in May, shortly after House took office.
House said when the board hired Walls, the village had received three resumes from interested people. Walls, a Dolton resident, had an extensive history in banking and a master’s degree in public administration, the mayor said.
“I have known him personally for 30 years,” House said.
Manousopoulos is still listed as town manager for St. John, Indiana, according to the town’s website.
ostevens@chicagotribune.com