HILLSBORO (AP) - A tax settlement between Traill County and American Crystal Sugar Co., has freed up money for the School District, the county and the township after three years in which some employees worked without a contract and the school had to borrow money to pay bills.

Taxes from the three years in dispute were paid, but were held in a special account and were not accessible to the taxing governments.

On Monday, the Hillsboro Public School received a check for about $850,000.The release of the money, which included interest, means the school district can pay off its loans, purchase equipment and give salary raises.

"I'm glad this is done and we can now put it behind us," Hillsboro School Superintendent Mike Bitz said. "Now that we have the money, we can plan for our future. We're no longer held in limbo."

The county's share of the back taxes was about $600,000 and Eldorado Township's was $58,000. They also received their money on Monday.

In a dispute that went to the state Supreme Court, the company argued the Hillsboro factory's tax value was $5.7 million from 2001 through 2003. Traill County pegged the plant's value between $26.7 million and $27.7 million during the same period.

The state Supreme Court ruled the Hillsboro factory's sugar beet freezers, sugar conditioning silos, and tanks used to store molasses extract are subject to property tax.