Late Tuesday night, Porter County Council members earmarked more than half a million dollars of hospital proceeds to pay for local ambulance services.

The services previously have been paid for through the county general fund, which receives its money through property taxes. At the budget meeting, however, the council decided to shift the cost of the service away from the general fund. Instead, the services will be paid for through the expected $5 million per year of interest generated from the sale of Porter hospital.

"All along it was contemplated that a benefit to the county would be to generate enough interest off the sale proceeds to free up some of the general fund," said Council President Dan Whitten. "Every little bit helps."

Each year, $500,000 of county money goes to Porter hospital, which coordinates most of the county's ambulance services. The other $175,000 goes to the Portage clerk treasurer's office to supplement the services in Portage, Ogden Dunes and South Haven. Currently, the county has a contract with Porter hospital for the service that lasts through 2011.

The council decided early on that it wanted to keep this year's budget as low as possible to try to offset rising taxes. Council members made it a goal to avoid tapping into the additional $900,000 in taxes the state will allow them to collect. Officials said removing the $675,000 in ambulance fees from the general fund will help.

"I think this is one good use of the funds," said Commissioner Bob Harper. "It takes some of the burden off the taxpayer because it will help alleviate the general fund."

Both the council and commissioners will have to formally make a resolution during one of their meetings before the decision is made official.

County officials have scheduled a series of three public meetings to discuss the plans for hospital sale proceeds. The dates of the meetings are Sep. 24, Oct. 15 and Nov. 5. All meetings take place at 5:30 p.m. at the Porter County Administration Center, 155 Indiana Ave., Suite 205, Valparaiso.

The committee is made up of the seven Porter County Council members and the three Porter County Commissioners. It will also include Thomas Boyt, dean of the Valparaiso University School of Business, as the facilitator for the panel.

The public is encouraged to attend the meetings. The first meeting will allow committee members to listen to the public, providing ample time for input from taxpayers.