UCC ponders tax increase to pay for public safety and health insurance concerns

By John Estridge

It was the proverbial good news/bad news scenario for Union County Council members at the prelude to the 2021 budgetary process.

Elected officials and department heads in Union County government understood the financial situation for county government, which is usually austere, but with COVID-19 ramifications, may be even more austere for the next couple of years.

Thus, there was no fat on the budgets presented to council, which is the good news.

That means there is nothing left to cut, which is the bad news.

According to Union County Auditor Cheryl Begley, council will have to cut $211,000 during the budgetary process.

Actions and shutdowns due to COVID-19 has reduced revenue for governmental units across the country, including Indiana and Union County.

During the one-day budget hearing, council members listened to the various budget presentations from department heads and elected officials.

Prior to that occurring, the council members discussed ways of funding the 2021 budget without having to cut personnel or make drastic cuts for routine services the county government provides for taxpayers.

There is the option of increasing the Local Option Income Tax (LOIT) for public safety.

“If we’re going to increase (LOIT), we have to have a public hearing, and it has to be done by the end of October,” FCC President Richard Blank said. “In looking at this, what we probably need to do is hold a public hearing the day we hold our workshop. Have the public hearing and hold the workshop after it.”

Council then approved holding the public hearing. It will be held 9 a.m., Thursday, Sept. 17, prior to the budgetary workshop.

Council can increase the LOIT by a one-fourth percent, a half percent or three-fourths of a percent, Blank said. Baker Tilly is consulting with UC about budgetary matters.

What is worrying council, especially this year, are insurance and ambulance service costs.

With insurance, UC commissioners chose RMD Patti. However, the RMD Patti quote was not firm. Council members and commissioners thought RMD Patti would come in with a concrete quote at the commissioners’ meeting held the day after the council budget hearing. But that did not happen, leaving council and commissioners not yet knowing what the bottom line will be.

The reason for the quote problem is the 2019-20 statistics for what was spent on employees and their families for health-related claims was not available to RMD Patti until a few days before the bids were opened by the commissioners.

However, at the commissioners meeting the day after council’s budget hearing, the commissioners received bids from two ambulance companies: the current ambulance provider Spirit and Reid Health.

Reid Health had the lower bid at $1.17 million over a three-year period while Spirit’s bid was $1.24 million over the same three-year period. That is a difference of $72,000 for three years or $24,000 a year. The bids were so close and the services offered were also so close, the commissioners tabled a decision until their next meeting, 8:30 a.m., Friday, Sept. 4.

Blank told council members if the bids come in low enough for ambulance and health insurance, then council may not have to implement an increase in the local income tax.