TERRE HAUTE — More than $1.8 million required to pay final bills as part of a $14.3 million courthouse renovation project was unanimously approved Tuesday by the Vigo County Council, but not without debate.
“I just hate to take people’s money that we have set aside for health and pay for a courthouse,” said Councilman Brad Anderson, R-4th.
Commissioners sought approval from the council to transfer more than $1.81 million from group insurance in the 2009 county budget to a new established budget line item called Courthouse Renovation. The transfer does not include employee contributions already being paid for health insurance. Vigo County pays about 75 percent of health insurance costs, while employees cover about 25 percent.
The transfer represents 62 percent of the more than $2.96 million budgeted this year for the county’s group insurance. The county is self-insured and money appropriated in the county budget for group insurance is paid into a county hospital benefits fund. That fund had more than $4.53 million in December, county records show.
Jacque Pentell of Forrest Sherer Insurance told the council that a letter from Anthem Blue Cross Blue Shield shows the county needed to budget 5 percent more for insurance in 2009 than in 2008, provided there are no large unexpected claims.
Pentell said in the worst case, the county’s payment would be capped at $6 million.
Councilman Darrick Scott, D-2nd, said that the council has no alternative but to use funds appropriated in this year’s budget. He moved to transfer the funds to pay off the courthouse renovation expense.
However, the council needed to agree unanimously to suspend its owns rules to allow a vote without first going through a committee. The first measure failed when Anderson voted not to suspend the rules. He then removed that vote, allowing a second vote to suspend the rules. Scott again moved to transfer the money.
Scott said he agreed he does not like using the health insurance budget for the courthouse, “but if we do a 1-cent courthouse tax, what is the difference? Show me the money,” he said loudly.
“We just did a budget, we don’t have it. If some other council member can tell me tonight where the money is at to pay these guys’ bills, I will not take it out of the health fund. I don’t want to take it out of the health fund,” Scott said.
Councilman Tim Curley, D-1st, said the council had not been informed of additional costs.
“I would hope that this would never happen again with the county commissioners not communicating with the council and putting us on the hot seat,” Curley said.
David Decker, president of the Vigo County Board of Commissioners, said the county has a responsibility to pay contractors for the courthouse renovation. Decker, who as a first-term commissioner said he was not involved in the start of the project, said he found documents dating back to July 2006 showing a $3.1 million deficit in funding for the courthouse project.
Scott said more oversight is needed.
“These contracts that go out, somebody needs to put a penalty clause in if it is not done in the right time,” Scott said, who also serves as assistant chief of the Terre Haute Fire Department. “I can’t believe it. If we build a fire truck, if it is not done within the time period, there is a penalty clause and they start paying us. We need to change our practice when we do our contracts.
“Not only do we need to do that, but when we make changes or additions, make sure that everyone is involved and everyone is a little more diligent on change orders,” Scott said.
Anderson said he would like the insurance funds repaid to the budget by the end of the year. Scott’s motion called for the funds to be repaid “with due diligence,” adding that the county faces a large cut in revenue from property taxes in 2010 and funds would not likely be repaid at the end of this year.
“We all, I believe, have the intention to pay back the money transferred out,” said Kathy Miller, elected president of the County Council for 2009, prior to calling for a vote on the issue.
Miller becomes the first woman to serve in that county position. Curley was elected to serve as president pro tem, which means he would serve as president should Miller not be at a meeting.
Howard Greninger can be reached at (812) 231-4204 or howard.greninger@tribstar.com
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County Council approves money for Vigo Courthouse renovation
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