News From Terre Haute, Indiana

April 2, 2009

Mayor wants to dip into ‘rainy day’ fund

Money would be used to cover health care expenses

By Arthur

TERRE HAUTE — The Terre Haute City Council heard a request from Mayor Duke Bennett on Thursday night to dip into the city’s “rainy day fund” to cover rising health care expenses.

At the council’s weekly “sunshine” meeting, Bennett told councilmen he is requesting $370,000 from the rainy day fund to help cover health care costs for city employees.

“We’ve just had an unbelievable amount of things happen to our employees” in recent weeks and months resulting in big medical bills, Bennett told the council.

Each month, city employee health insurance premiums total around $370,000, according to figures provided by the mayor. However, city health care expenses totaled about $492,000 in December, $535,000 in January and $544,000 in March, the figures indicated.

“Something’s got to change,” Bennett said.

The City of Terre Haute is self-insured, Bennett noted, meaning the city collects premiums and pays covered portions of employee medical bills. The city is now “looking at other plans” to attempt to reduce costs for the future, Bennett said. Next year, health insurance costs for the city are expected to be 20 percent higher than this year, he noted.

Also at the sunshine meeting, which is designed to allow councilmen to hear topics that may be voted on during the following week’s regular meeting, the council was urged to support a resolution in support of a walk designed to raise awareness about homelessness in the Wabash Valley.

The walk, organized by the Indiana Association for Community Economic Development, will begin at Fairbanks Park and finish at Gilbert Park at 14th Street and Wabash Avenue on April 19. Registration starts at noon at Fairbanks Park and the walk will begin at 2 p.m., said Pam Otte, director of the preschool at Ryves Youth Center at Etling Hall in Terre Haute.

Around half of the 28 children enrolled in the Ryves Hall preschool are classified as homeless, Otte said. This compares to around 30 percent a year ago, she said.

“This is a good cause,” said Norm Loudermilk, D-3rd. Recent job losses have contributed to the homelessness problem, he said. Loudermilk will be the master of ceremonies for the walk, Otte said, adding that last June’s flooding proved that people do not have to be poor to become homeless.

The Homeward Bound walk will raise money for several local not-for-profit organizations. To register for the walk or to make a donation, see the Homeward Bound Web site, www.homewardboundindiana.org, or call Pam Otte at (812) 235-1265.

Next week’s regular council meeting will take place at 7 p.m. Tuesday at City Hall.



Arthur Foulkes can be reached at (812) 231-4232 or arthur.foulkes@tribstar.com.