Danville, Ill. (ECWd) –
We recently posted an article indicating the CRIS Rural Mass Transit District board had decided to stop all operations and dissolve the district.
This apparently happened during a special board meeting of the MTD.
It is not that simple, at least according to the Local Mass Transit District Act.
For a Mass Transit District originally established via referendum, then, yes, the MTD Board could vote to dissolve the district and its operations.
For a Mass Transit District formed any other way, here are the steps as found in Section 9 of the Act:
- MTD Board adopts a resolution to stop operations and dissolve.
- In the case of CRIS, the Danville city council and the Vermilion County board must agree with the MTD board’s resolution.
- After Danville and Vermilion County agree, then the MTD board adopts an ordinance or resolution establishing that the district will discontinue its services and wind up its affairs.
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A copy of such ordinance or resolution or both, shall be filed with the county or municipal clerk or clerks and the Secretary of State.
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After payment of all its debts and settlement of all obligations and claims, any funds remaining after the sale and disposition of its property shall be disposed of by payment to the treasurer of the county or municipality which created it, or if created by 2 or more municipalities or counties, by payment to the several treasurers, first, to repay in whole or pro rata, funds advanced to the authority, and the balance, if any, pro rata according to the length of scheduled transportation route miles operated in the several municipalities and unincorporated areas of the several counties during the preceding calendar year.
In short, in order to dissolve CRIS MTD, both Danville and Vermilion County must agree to its dissolution, then the district must sell all of its property (to the highest bidder) to pay any remaining debts. Any funds remaining will be split between Danville and Vermilion County based on the above distribution formula.
This issue was tested in Edgar and Clark Counties more than 10 years ago when the East Central Illinois Mass Transit District was dissolved (and the director and her daughter-in-law pled guilty in federal court). RIDES Mass Transit District attempted to obtain those remaining funds when annexing (albeit improperly) Edgar and Clark Counties into its existing district. After we advised the Edgar County Board that we would file suit to prevent that unlawful gifting of the remaining funds, the county board decided against that payment. RIDES MTD then filed suit in circuit court and the judge ruled in favor of Edgar County and against RIDES MTD. This was after IDOT sent a letter in apparent ignorance of state law. See these articles: here, here, here.
