NEW ALBANY — Though the ordinance was challenged as a violation of Indiana Code, the New Albany City Council proceeded to abolish health care benefits for part-time employees Thursday.

The action affected only one group of public workers — the city council. Council President Diane McCartin-Benedetti and council members Kevin Zurschmiede and Bob Caesar are the three people on the body that receive health benefits from the city. Ninety percent of health premiums for city employees are covered by public tax dollars.

As was the case when Councilman Dan Coffey first called for the council to rebuke its health insurance and lower its salary in 2010, those opposed to the move cited Indiana Code 36-4-7-2, which forbids the compensation of a city official from being reduced during the year. According to the section, compensation also can’t be reduced to an amount lower than the previous year.

Coffey’s ordinance called for the insurance option for council members to be abolished beginning Jan. 1, but the lowered compensation factor would still come into play since the coverage is available this year.

But that depends on whose legal opinion is offered, Coffey said.

Council Attorney Matt Lorch sent a copy of the code to council members prior to the final vote. But Coffey said the section refers to tax code, and that health insurance isn’t taxed and therefore it cannot be considered compensation.

“You can’t have your cake and eat it too,” he said.

But Caesar disagreed, as he said Coffey’s ordinance discriminates against council members because there is no definition of what a part-time employee is in Indiana Code as it pertains to city officials.

According to Indiana Code, there’s not an established schedule of hours for elected officials so it’s not accurate to describe the council as part-time, he continued.

“It clearly violates Indiana Code to lower compensation,” Caesar said.

Benedetti suggested that if Coffey wasn’t satisfied with the legal opinion offered, that the council should request Indiana Attorney General Greg Zoeller review the matter.

But Coffey said he would not delay the final vote on the ordinance, and added those opposed to the measure were “grasping at straws.”

Originally issued in 2003 and later updated in 2005, then Attorney General Steve Carter prepared an opinion on the Indiana Code section for Sen. Joseph Harrison of Attica. Harrison had requested the opinion over the issue of whether a local clerk-treasurer’s salary could be lowered.

“The compensation of a city officer may not be reduced or increased in the year fixed, nor may it ever be reduced to less than the salary of the prior year, regardless of timing,” Carter wrote in the opinion.

At the time, Zoeller was Carter’s Deputy Attorney General. But the opinion did not specifically refer to health benefits.  

Also, legal opinions offered by the attorney general aren’t legally binding.

Benedetti said compensation refers to anything of value, and there’s no section of Indiana Code or recommendation from the State Board of Accounts that permits a council to lower or abolish health insurance after it has been offered.

“If you proceed to vote on this, it violates the statute,” she said.

But the council approved the ordinance 5-4, with Caesar, Benedetti, Zurschmiede and Shirley Baird voting against the measure.



Several items tabled until future meetings

Ordinances and appropriations regarding the 2013 budget, land use for the proposed Summit Springs project and the restoration of the Town Clock Church were tabled for various reasons Thursday.

The request to allow planned unit development district for Summit Springs was tabled at the request of the developer, which stated in a letter to the council through its attorney that it needed to review its options before proceeding.

Multiple budget items including salary ordinances were tabled until a special meeting Oct. 29 so that the measures could be properly advertised.