PROVO — The Utah County Health Department has managed to tuck away $7 million in surplus funds over the past two decades, but part of that money will likely disappear this year.
With the department's move to the new $21 million county health and justice building, rent for the department will more than double from the $410,192 paid in 2003 to $837,059 for the current year, according to clerk/auditor Kim Jackson. The rent increase is part of the county's plan for retiring the bonds used to finance construction of the building, a process expected to take 10 years.
Dr. Joseph Miner, executive director of the Utah County Health Department, said the surplus will also provide a much needed source of funding if the health department runs into major expenses fighting an anticipated West Nile virus outbreak. An effort such as that could rapidly deplete the surplus, he said.
"It is not unusual for government agencies to have surpluses. Utah County government has its own," Miner said. "It's common. It's actually a responsible thing to have. It's nice to have it because if you have a particularly bad year, you have some backup."
Miner said the surplus has built up over the past two decades as tax revenues exceeded anticipated amounts and because the department opted to leave some positions vacant for periods of time, allowing funds reserved to pay for those employees to be diverted into the surplus fund. The county health department employs more than 200 people and has an annual budget of $12 million.
Miner said the department was also frugal, taking the initiative to do jobs inhouse when it proved cheaper than contracting out the work.
Miner said the surplus is earmarked for public health services and is not likely to be transferred back into the county's general fund for other expenses, although such a transfer would be legal.
The county is getting some indirect benefit, however, Miner said, since it will likely be surplus money that goes to pay for the increased rent allocation.
"It's important to assign costs. It's all just county government, but you need to know how much a service is costing," Miner said. "Everyone pays rent."
Utah County Commissioner Jerry Grover praised the health department for doing an exceptionally good job in managing its resources and saving money.
"We try to reward the departments for good management," Grover said. "We started that in 1995. We gave the department heads more money and responsibility. They're rewarded for saving money, but then, they are also responsible for screw-ups."
Grover stands by the practice of charging county departments rent for the space they use.
"We treat ourselves as landlords. It ends up controlling the costs," Grover said.
Grover said he doesn't know if other counties run things like Utah County does but he believes the system works for Utah County.
In a recent "state of the county" address, Commissioner Steve White said his research shows Utah County has the second lowest tax rate in the state and the lowest cost-per-capita spending rate in the state.
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