MERRILLVILLE | About a week after telling town councilmen that $600,000 was needed to fund employee health benefits for the rest of the year, Town Manager Tim Brown said Merrillville is closer to locating the necessary money.

Brown said Monday the town is close to earmarking $250,000 for the health benefits, with the money coming from cumulative capital improvement funds, unused money that had been set aside for attorneys' fees and cash that's be freed up since the town no longer pays a fire hydrant fee.

Brown said funding health benefits for employees has been a problem for the town "on and off for a number of years" due to late tax bills.

Merrillville was able to take out a loan last year to fund the benefits program, Brown said, but he doesn't intend to take out another loan this year.

Brown said he is attempting to find enough funds to pay for the benefits until the town receives its tax money -- hopefully in September.

Town Councilman Richard Hardaway said last week that trying to find ways to fund benefits comes at a time when many town employees also are seeking pay increases.

Hardaway said if the town were to change the benefits program to increase wages, employees probably would have to pay more money for medical expenses.