Continuously serving Kosciusko County since 1854
INDIANAPOLIS — The Indiana Court of Appeals issued its ruling in the matter of Indiana State Board of Accounts v. Town of Syracuse Tuesday afternoon, Feb. 3.
In its conclusion, the court stated the “town is permitted under Indiana law to compensate its employees by paying or reimbursing nongroup health insurance premiums; therefore, the town is entitled to judgment as a matter of law. The issue of whether the town unlawfully delegated its authority to set employee compensation is waived because the State Board of Accounts failed to first raise this issue in the trial court.”
In 2023, the SBOA began an audit of the town’s financial affairs from Jan. 1, 2015, to Dec. 31, 2023. During the audit, the SBOA found the town was paying “premiums for insurance obtained by individuals who were not eligible for participation in the town’s insurance.”
The audit found that in 2019, the town council passed Ordinance 2019-19, which states all town employees shall have health insurance. The ordinance notes that health insurance “shall include, but not be limited to, the payment or reimbursement of Medicare premiums and supplemental insurance premiums incurred by an employee or town council member.”
The SBOA determined the council had violated the Home Rule Law and demanded current and former council members, along with some town employees, reimburse the town’s general fund $500,000 and pay an additional $74,000 to cover the costs of the audit.
The town filed a complaint seeking declaratory judgment that Indiana law does not prohibit it from reimbursing its employees’ insurance premiums, including Medicare and supplemental insurance premiums, as provided in Ordinance 2019-19. The complaint was filed Dec. 19, 2024.
Shortly after the town filed for summary judgment, Attorney General Todd Rokita stepped in to represent the SBOA.
The case was heard in Kosciusko Superior Court IV, with Judge Christopher Kehler presiding on May 8, 2025.
After hearing arguments, Kehler took the matter under advisement and ruled July 17, 2025, granting summary judgment to the town.
The SBOA filed its notice of appeal Aug. 26, 2025.
