Floyd County missing out on $35,000 per day from hospital sale
Leaders in Floyd County are feuding over where millions of dollars from the sale of Floyd Memorial Hospital should go.
NEW ALBANY, Ind. (WDRB) – Leaders in Floyd County are feuding over where millions of dollars from the sale of Floyd Memorial Hospital should go.
A special called joint meeting of the Floyd County Commission and Floyd County Council clashed Monday over the agreed-upon investment of $70 million.
Of the $150 million sale, $70 million was agreed to be invested in the Community Foundation of Southern Indiana. However, that money is currently not in the foundation. Instead, it’s being held in a certificate of deposit at MainSource Bank.
The foundation would invest the money and pay back the interest earned.
“We're losing money each day because it's not with the foundation,” said Floyd County Commissioner Stephen Bush.
According to figures provided by the foundation on Monday, that $70 million could have provided interest of greater than $1 million, or $35,000 per day.
“That's an investment for the future of Floyd County forever, basically,” Bush said.
So far, with the money being held in the certificate of deposit, it has netted a total of around $21,000 in interest.
Now, some on both the commission and council are accusing certain members of deliberately stalling the transfer because they did not agree with the plan in the first place.
“I think the money should be put into a non-reverting trust,” county councilman John Schellenberger said. “Move a portion to the foundation. Leave a portion in the trust.”
The meeting, at times, was heated with councilman Matt Oakley accusing Schellenberger of trying to delay the transfer until newly-elected members of both bodies are in place at the start of the start new year. Schellenberger did not deny that claim.
“We have 50 percent new members coming on,” Schellenberger said. “I think, basically, they should have a say in the future for this money.”
The current agreement to transfer to the money to the Community Foundation of Southern Indiana was voted on and passed on Nov. 4.
“We talked about this for months,” Oakley said. “The decision was made.”
The job of transferring the money falls onto the shoulders of Floyd County Auditor Scott Clark and county Treasurer Linda Berger. Neither of them attended the meeting Monday and calls to both offices were not returned.
“She indicated that she had some issues with it because of the fees,” Bush said of Berger. “But because we learned that the fees have been waived, I'm not sure what her issues with it are at this time.”
Initially, concerns were raised about a $700,000 fee that would be imposed if the money was transferred out of the certificate of deposit prematurely. Bush said on Monday that those fees have been waived.
At the next meeting of county council, an executive session is expected to be called during which the possibility of a lawsuit could be discussed.
Calls to the County Treasurer’s office were not returned Monday night.
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