Vigo County government officials say they will take the City of Terre Haute to court if it does not pay $320,991 by May 15 in fees for the combined city/county emergency 911 dispatch service.
According to a letter written Friday by Michael Wright, county attorney, the city owes $320,991 for the first six months of this year for its contractual obligations to pay for combined 911 emergency dispatch services. Mayor Duke Bennett had previously stated that until the issue of possible double taxation was resolved, the city would not pay any additional funds to the county for the combined dispatch services.
The county has a five-year contract with the city to provide dispatching services to the city police and fire departments; the contract ends Dec. 31, 2016.
Officials sought clarification from both the Indiana Department of Local Government Finance and State Board of Accounts.
That clarification came Thursday in an opinion from the State Board of Accounts. In its opinion, the Board of Accounts said that the county-city contract can be changed in future budget years. But for 2015: “The city should contribute its share of the money needed to provide the service as set forth in the interlocal agreement. The city and county negotiated the interlocal agreement based on various factors and costs, which they both considered during negotiations, and which lead them to agree to what they both thought was a fair arrangement.”
Debbie Gibson, director of county services with the state Board of Accounts, forwarded that opinion to county officials on Thursday.
Cheryl Loudermilk, county chief deputy auditor, had requested an SBOA opinion on whether the city should be responsible for payment in 2015.
On Friday, Wright wrote his letter to the city, stating, “If Vigo County has not received the first half of the contractual payment by the close of business on May 15, 2015, we will have no choice but to ask a court to enforce the contract.” The letter was directed to the city’s legal department.
Wright’s letter further stated, “As you know, Vigo County’s 2015 budget included the revenue from the agreement, and this lack of payment is significantly impacting Vigo County.”
Mayor Bennett, asked about the county’s letter indicating possible legal action, said Monday, “I don’t know anything about that.” He said he had not heard back from the state Board of Accounts about an opinion in the matter.
If it is the opinion of the state Board of Accounts that the city should pay what it owes according to the contractual agreement for 2015, “We’ll pay the bill. They don’t need to sue us. We already said we would pay the bill,” Bennett said.
When Loudermilk asked SBOA for its opinion, she wrote that the Department of Local Government Finance indicated that in future budget years, including as early as 2016, the city could reduce its levy and the county could appeal to the state for an excess levy in funding the combined dispatch. The adjustment is allowed under Indiana law.
Wright stated in his letter, “As was already discussed, Vigo County remains willing to take the steps necessary to implement the levy adjustments with the Department of Local Government Finance to cure this issue and do away with any payment from the city to the county in 2016.”
County Commissioner Jon Marvel said the existing contract runs through 2016, and he believes it should be honored. “It was negotiated on both sides, and both sides agreed,” he said. Marvel said he could potentially agree to changes for the 2016 budget year as long as the county doesn’t lose any money.
The city owes a total of $641,982 for combined dispatch services for 2015, according to information the county forwarded to the city. The first half was due in January and the remainder in July.