TERRE HAUTE — After lengthy discussion, the Terre Haute City Council voted 6-3 Thursday night to shift money from the city’s “rainy day fund” into the city employee health insurance fund.
The move received “no” votes from the three newest members of the council.
“We’re now going to pay bills from our savings account,” said Neil Garrison, D-5th, who led opposition to the move. “I don’t want the mayor to say we’re under budget and then pay bills out of the savings account.”
The other first-term councilmen, John Mullican, D-6th, and Don Morris, D-at large, opposed using the rainy day fund to replenish the health insurance fund. The six remaining councilmen voted in favor of the request, which came from Mayor Duke Bennett last month.
The city’s rainy day fund, as of Thursday, had just over $5.1 million, said city controller Leslie Ellis, speaking to the council during the 45-minute special call meeting. After the transfer to the health insurance fund, the rainy day balance will be about $4.8 million, she said.
Each month, city employees pay premiums into their health insurance fund, and each week the city is billed for health care services, Ellis said. Several large claims recently have caused monthly expenses to exceed monthly premiums, she noted.
There was “an excessive amount of high claims,” Ellis told the council, explaining the health insurance fund shortfall. “We had a lot of catastrophic things happen.”
Because of the greater health care costs, the city employee insurance fund is in danger of being unable to meet expenses, Ellis told the council. “Right now, we’re just right at the edge,” she said.
Garrison said he favored using the city’s general fund to meet the shortfall.
“We’re arguing over paying this from our right pocket or our left pocket,” said councilman Jim Chalos, D-at large, near the end of the debate. Garrison countered that if the money were taken from the city’s general fund, it would need to be paid back into that fund by the end of the year. Money taken from the rainy day fund is not required to be paid back, he said.
Also Thursday night, during the council’s monthly “sunshine” meeting, the members heard sometimes-contentious discussion about a proposal to change the city’s downtown building regulations.
The request came on behalf of the builder of the Barnes and Noble Bookstore and the Indiana State University Foundation building, which are planned for the corner of Fifth and Cherry streets.
The proposed building will measure about 32,000 square feet. Under current city rules, any new building under 35,000 square feet must have its front door open directly onto the city’s sidewalk. The proposed bookstore/ISU Foundation building is designed to have a small plaza between the sidewalk and the front door and so would not comply with that rule.
Supporters of the change in the rule, including Cliff Lambert, executive director of the city’s Department of Redevelopment, and Steve Witt, president of the Terre Haute Economic Development Corporation, said the city needs to show “flexibility,” especially given current difficult economic conditions.
Meanwhile, Ben Orman, a downtown property owner, preservationist and one of the crafters of the city’s current downtown building code, said allowing the change will create a “slippery slope,” opening the door for further changes in the future.
“Our zoning laws are intended for the greater good,” Orman told the council.
The council may vote on the request to change the building rules at its regular meeting next Thursday night in City Hall. The council may also vote to adopt a recently developed set of formal guidelines for companies seeking tax abatements.
Arthur Foulkes can be reached at (812) 231-4232 or arthur.foulkes@tribstar.com.
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City Council OKs shifting money to insurance fund
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