Former Dillon Police Chief Steve Neumeyer resigned June 3 voluntarily and in good standing, but he did so after being placed on paid administrative leave the month before and receiving a $125,000 settlement and severance package, according to documents the Summit Daily has obtained from the town.

Neumeyer submitted his letter of resignation May 20 — less than a year after he took the post — citing his wife’s health as his primary reason for leaving the community and saying he had enjoyed his time with the town and believed “together we were very successful in creating an outstanding police department.”

The town paid out $100,000 to Neumeyer upon his departure June 3. An insurance company covered an additional $25,000, which was attributed to wages and severance in a resignation and severance agreement released to the Daily following a Colorado Open Records Act request.

The larger sum was paid as a settlement following a claim Neumeyer had apparently made against the town for “emotional distress,” which resulted in illness including “headaches, insomnia, stomach and digestive orders [sic], increased blood pressure and the like,” according to the agreement.

Town officials declined to comment on the severance agreement or any claims Neumeyer made against the town.

“I can’t respond to that because it deals with a personnel matter and I’m not at liberty to discuss it,” Dillon town manager and former police chief Joe Wray said.

Neumeyer could not be reached by phone Monday. A cell phone number for him provided by the town had been disconnected.

His annual salary as police chief was $94,000, Dillon officials confirmed.

Approximately two weeks before his employment with the department was terminated on June 3, Neumeyer was placed on administrative leave with pay following a special executive session of the town council. Wray instructed Neumeyer by email that he was assigned to his residence from 8 a.m. to 5 p.m. Monday through Friday with an hour off for lunch and that any violation of the order would be reported to the council.

Wray would not comment on why Neumeyer was placed on leave.

Neumeyer has a master’s degree in homeland security from Northcentral University and spent 32 years with the Aurora Police Department, departing as a commander. In 2010, he joined the Colorado Attorney General’s Office to become the deputy director of Police Officer Standards and Training (POST) the certification program required for law enforcement officers statewide.

He signed on as the new Dillon police chief in June of 2012, after former chief Wray stepped down to become the town manager that spring. Neumeyer, who grew up skiing in Summit County, said it was the kind of job he’d hoped for throughout his career.

“This is what I had dreamed about,” Neumeyer told the Summit Daily in an interview in September 2012. “I was very fortunate to be chosen by the town of Dillon to be the police chief.”

He has been replaced by former Sgt. Brian Brady.

Town officials say Brady will likely serve as the interim chief at least through the summer, which is the busiest time of year for Dillon.

“I would not anticipate a permanent replacement until the late fall,” Wray said earlier this month. “We just don’t have the time to put into it … and we don’t want to rush into something.”