Michigan City council hears first readings on nearly $960,000 in additional appropriations for overtime, utilities and medical claims

At its Nov. 18 meeting the Michigan City Common Council held first readings on a package of additional-appropriation ordinances that together account for approximately $960,000 in requests from the general fund and related funds to cover overtime, utilities, medical claims and personnel costs.

City Controller Mary Lynn Wall told the council the 2025 budget had been prepared tightly and that several line items—especially police and fire overtime—have exceeded projections. "Back in 2024, when we did the budget, we cut the police and fire overtime a little bit too much," Wall said. She described the city as self-insured for employee medical claims and said 2025 has been "an unusually high medical claim year," requiring additional money to ensure claims can be paid through year-end.

Council members pressed for detail and oversight. One council member asked for a monthly overtime report for police and fire beginning in December with an explanation for any month in which overtime exceeds $25,000. Wall agreed to provide the report and work with the chiefs to explain drivers of overtime. Council discussion also noted a roughly $200,000 projected impact in 2026 from a NIPSCO rate increase.

None of the ordinances were adopted at the meeting; each was read by title only and set for formal public hearings on Dec. 2. The package includes ordinances to appropriate additional funds from (1) the general fund for police and fire salaries/overtime, (2) the Public Safety LIT fund for the same purpose, (3) the general fund for utilities (telephone and street lighting/NIPSCO), (4) the general fund for medical claims, and (5) the general fund for personnel department salaries that reflect new staffing.