FORT WAYNE – A county surplus of about $4.7 million spurred the Allen County Council to give back some of what it took from employees and departments last fall.

Back in October, the council decided that for 2012, county employees would contribute 3 percent of their wages into their retirement funds. The county still pays 9.75 percent to the retirement fund but had previously paid the employees’ portion as well.

The council voted Thursday to give that 3 percent contribution back to the employees in the form of a one-time bonus.

The $4.7 million surplus came from rollover funds and departmental revenues not used in 2011, according to County Auditor Tera Klutz. Tax revenue was up 1 percent over original estimates for 2011, Klutz said, and many departments did not spend the money they were allotted, which also contributed to the surplus.

While employees will continue to contribute the full 3 percent to their retirement funds, the bonus is meant to offset the shortage to their take-home pay, Klutz said.

The one-time bonus is estimated to cost $1.65 million, and an additional $1.1 million was set aside to cover employee salaries in 2013, although Councilman Darren Vogt, R-3rd, said there was no guarantee it would be used.

Paul Moss, R-at large, was the lone dissenting vote on both decisions.

Moss said he does not believe the economy is turning around and the money would be better used elsewhere.

“Unfortunately we can’t give the dollars back to the people we took from,” Moss said. “I prefer to see more going into the rainy-day fund” instead of employee bonuses.

A letter was sent to employees outlining options for receiving the bonus, which included a lump-sum payment or spread out over the remaining 2012 pay periods.

Nearly $1.3 million was unspent in salaries and wages, Klutz said, along with $2 million not spent for contractual services.

“Departments are to be commended for not spending every penny,” Klutz said.

Vogt cautioned that the large surplus was unusual, and the council should not expect the same next year. Klutz agreed and said she expected next year’s rollover to be about $2 million.

The council pledged $500,000 toward the employees’ health insurance fund. The fund should maintain a balance of about $5 million, Vogt said, but because of an increase in claims, the balance is about $3.3 million.

Allen Superior and Circuit courts received about $217,000 to make up for cuts made to the department’s budget, including the salaries of court employees and judges’ and magistrates’ salaries.

The council set aside $100,000 for the Fort Wayne-Allen County Economic Development Alliance for economic development. The alliance is asking the Chamber of Commerce, Fort Wayne and the county for $100,000 each to cover a shortfall because of the economy, Councilman Roy Buskirk, R-at large, said.

The council put $1 million in the rainy-day fund and dedicated the remaining $180,000 for capital expenditures.

With the appropriation, the rainy-day fund now has a balance of $18.5 million, about 15 percent of the county’s overall budget, Klutz said.

vsade@jg.net