Marion ends 2012 cash-poor due to health costs
A north-central Indiana city has started the new year with virtually no money on hand after its mayor says the community was buffeted by rising health care costs.
Marion began 2102 with $2.3 million in cash reserves but ended it with just $44,000, leaving it unable to repay a $1 million short-term loan from Marion Municipal Utilities.
Controller Cindy Wright tells the Chronicle-Tribune the city is working to repay that loan as soon as possible.
Mayor Wayne Seybold says the numbers show Marion's fiscal "disaster" came mostly from health insurance, not administration overspending. Marion's health insurance reserve fund that supports city workers' coverage went from a $2 million deficit to a $5 million deficit last year.
Seybold says Marion is poised to rebuild its finances during 2013.
(Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)