The Tooele County Health Department will ask the county to raise the Health Services Property Tax in 2017 so it can meet its projected expenses next year, officials said.
The health department’s proposed budget for 2017 includes $5,447,895 in proposed expenses. But its proposed revenue from government grants and fees is $4,124,209 — falling short $1,323,686.
“It’s normal to come up short, but we do need to make up that shortfall,” said Brad Gillies, TCHD finance manager.
A new Health Services Property Tax, authorized by the Legislature and imposed by the Tooele County Commission, will bring in $708,000 and make up more than half of the county’s 2017 contribution, according to the proposed budget.
The tax, which was charged on citizens’ property taxes for the first time this year, added $667,000 to the health department’s 2016 budget. The health department’s fiscal year is from Jan. 1 to Dec. 31.
Although the cash amount received through the tax will go up next year, the tax percentage per house will go down because property values are increasing, said health department director Jeff Coombs.
In addition to asking for an increase in the tax, the budget proposes to create a new fund dedicated to capital improvements within the health department. Capital improvements refer to major repairs, replacements or renovations, according to the proposed budget.
“It would be good for us, obviously, but it would also be good for the county,” Coombs said. “If this building had to be totally re-carpeted and it cost $1 million, we wouldn’t have to ask for [money from] the county general fund.”
The 2017 budget proposes starting the fund with $150,000 taken from 2016 excess operating funds. After that, the health department would try to add an additional $150,000 every year in the future.
At the end of this year, health department officials expect to have $396,718 left over because the 2016 budgeted expenses were higher than actual projected costs, according to the proposed budget. After using $150,000 of that money to start the capital improvements fund, TCHD would put the rest in its reserve fund, Gillies said.
The health department plans to maintain $1.5 million in its reserve fund at all times, Coombs said.
According to Gillies, TCHD has three main sources of revenue: government grants, fees and contributions from the county. County contributions include money from the Health Services Property Tax, reserve fund and building lease — the amount TCHD pays to lease its building on 151 N. Tooele Main Street is returned to the health department.
TCHD expenses cover services provided by the health department’s different divisions. The largest amount of money is dedicated to family and school health, followed by the WIC — Women, Infants and Children — program, administration, health promotion programs, environmental health, dental health and emergency preparedness, according to the proposed 2017 budget.
All TCHD employees are slated to receive a 3 percent cost-of-living increase in 2017. However, rather than upping salaries, the increase will be seen mostly in benefits, Coombs said.