UPDATED WITH LIVE VIDEO: Additional funds will help Linton Fire Department

(Photo by Nick Schneider) Linton Fire Department Chief Gary Tannehill spoke at the Linton City Council meeting Monday night. [Order this photo]

That means the LFD will get paid a minimum amount to respond to a fire or accident if the home or car owner has insurance.

Linton Fire Chief Gary Tannehill explained the need for the ordinance in a Tuesday interview with the Greene County Daily World.

"There's a clause in homeowner's insurance. It's automatically in there. You already pay for it. But, if we don't have an ordinance in effect we can't collect," Tannehill said. "The ordinance was passed to collect that (the money). It's something that the insurance already provides."

There's no additional charge to the home or car owner and there's no cost to the city, he said. The ordinance allows Emergency Services Billing Corporation to bill insurance companies after the department has worked a fire or accident.

"A lot of departments are doing this because of House Bill 1001," Tannehill said, noting recent cuts to police and fire department budgets.

Click on the arrow below to hear Linton Fire Chief Gary Tannehill explain the benefits of the Linton City Council passing the emergency cost reimbursement ordinance.(Greene County Daily World Video/Nick Schneider)

Fire Departments in Jasonville, Switz City and the eastern portion of the county are already on the bandwagon, Tannehill added.

"The money (collected) will go into an accumulated fund," he said, adding it can be used for training, equipment and other such departmental needs.

A fire department can collect a maximum of $500 per fire through the homeowner's insurance clause, he noted. The money collected from response to a vehicle accident varies.

"If we go out and some of our equipment gets damaged it doesn't fall back on the taxpayer. It can be billed to the insurance," Tannehill added.

But if you don't have insurance don't worry.

"We're not going to have the attorney go collect off of people that don't have insurance," Tannehill stressed.

Tannehill also stressed another need for the ordinance.

"The city had no ordinance intact during the Petro's fire," he said, noting a loss of money to the city due to the fire.

With this ordinance, the insurance company can be billed, he said.

"It's a way to relieve our budget a little bit," he added.

During the Monday meeting, Linton Mayor Tom Jones provided further details on the reason for the ordinance.

"I think it's a smart thing. There's been talk of this since 2004. We've been hunting for a third party vendor," he added.

The city lost $70,000-$80,000 after the Petro's fire, Jones said.

The LFD also lost several pieces of equipment, such as radios, while working the fire. It took a total of 2.5 million - 3 million gallons to extinguish the fire.

"We looked at it hard then and now we're putting it into place," Jones added.