Significant drop in mineral lease money cause for concern

By PATSY STODDARD Editor

The Emery County Commission met for their Oct. 20 meeting. The commission discussed a Resolution to amend how mineral lease revenue and State mineral development revenues from SITLA are distributed in the county. The mineral lease monies are divided by percentage among the special services districts in the county and the recreation district. Currently the distribution rates are 40 percent to the Emery County Road District number one, 29 percent to the Local Building Authority; 13 percent to the Castle Valley Special Service District, 8 percent to the Emery County Fire District, 8 percent to the Emery County Recreation Service District and 2 percent to the North Emery Water Users Special Service District.
Commissioner Ethan Migliori said with the closure of Deer Creek Mine, it’s had a significant impact on the mineral lease revenue. The mineral lease money comes into the county on a monthly basis. Migliori proposed they change the rate of distribution for what comes in to the following percentages: Emery County Road Special Service District number one-55 percent; 0 percent to the Local Building Authority, 18 percent to the Castle Valley Special Service District, 12 percent to the recreation district and to the fire district and 3 percent to the North Emery Water Users.
According to current projections for the mineral lease money coming into the county in 2016, approximate amounts the special service districts will receive is: Road District-$607,200; LBA-0; Castle Valley Special Service District-$198.720; Recreation district and fire district-$132,480; and North Emery Water Users approximately $33,100.
These numbers are based on current projections for mineral lease monies into the county. Commissioner Migliori said this formula of distribution is for 2016 only. The Local Building Authority will need to be funded in the future for needed projects, but for the coming year, so the special service districts can be maintained the LBA will not take any funds from mineral lease money. The new resolution will be ratified in the next commission meeting.
On Feb. 1, 2015, the mineral lease money that came into the county was $151,055.96; on March 1, 2015 with the closure of Deer Creek Mine, the mineral lease money had dropped to $63,561.82; in April, May, June, the money has flucuated between $60,000 to $63,000 each month. In the third quarter the SITLA mineral lease money coming into the county was $475,615 and for the fourth quarter it has dropped to $86,379.54.
They opened the bids for the Castle Dale Senior Center Furnace removal and relocation project. They received one bid for this project from Dugmore Heating and Air Conditioning. Commissioner Cowley will go over the bid and make sure everything is in order and the bid will be awarded to Dugmore.
The commission tabled the proposal to take bids for the scrap metal pile at the landfill. Currently scrap prices are very low and the county will sit on the scrap for the time being.
The commission approved a tax adjustment on two parcels of land owned by Ross Huntington.
The commission approved the contract between Emery County and Kimball and Roberts for independent auditing services for Emery County and the Special Service Districts.
A mini grant application through KUED for Orangeville Library to hold a Super Reader Party was approved. Carole Larsen, library director said the party will take place in November.
The county will advertise for Emery County Jail Inmate Medical Services.
Brenda Tuttle, clerk/auditor presented the FY 2016 tentative budget for Emery County and Jacob Sharp presented the Castle Valley Special Service District tentative budget. A public hearing to receive public comments on the FY 2016 budget will be held on Dec. 15 at 6 p.m. with commission meeting at 5 p.m. that evening. Tuttle said by law a tentative budget must be submitted by Nov. 1. The date of the public hearing is also on the tax notices which go out in November and each land owner will have notice of this budget hearing.
Sharp said the tentative budget for the CVSSD was approved at their board meeting on Oct. 15. Since that time he has learned of the drop in mineral lease monies and will adjust the budget to account for this drop. Currently the money from the mineral lease funds goes to road maintenance. He will drop that item on the budget from $350,000 to $300,000 for now. He met with the engineers and they think this will work for next year in completing the rest of the Ferron streets with a chip and seal project. The larger portion of the Ferron roads were completed this summer.
Sharp said their general fund budget is similar to what it’s been in the past. The district will apply for CIB grant and loan money each year. Currently they project to bond for $1 million and ask for $945,000 in grant money. “We may not get that, it’s subject to change with what CIB awards us,” said Sharp. The bond repayment schedule and the tax rate shouldn’t change so taxes won’t go up.
The commission approved the application for Transportation and Utility Systems and Facilities on Federal Lands to renew an existing Right of way grant at the communication site known as the Mt. Ellen/South Summit Ridge on BLM public lands in Garfield County. Petersen explained this right of way is with the Richfield BLM office and it was for 25 years previously and will now be for perpetuity.
The commission discussed the standard agreement where Emery County would pay a portion of EMT training fees and provide a method of reimbursement. Commissioner Keith Brady said seven people from Green River have signed up for an EMT class beginning in January. He presented an agreement used previously in the county where the county works with those taking the class on expenses for the class. After they begin work, then deductions for the cost of the class can be made through payroll deductions. Course cost is $700. For the Green River class the student will pay $350 and the city $175. The commission tabled the agreement for now and will look at it again and see what arrangements can be made to help with the expense of the class.
The commission approved the contract between the State of Utah Department of Heritage and Arts and Emery County to digitize cemetery records. Bernice Payne will do the work. The grant is for $5,400.
The commission voted to extend the janitor contract for the Orangeville Library.
Commissioner Brady said he has taken the leakage survey and made it more understandable; it will be posted on the county website. This survey has several categories and overall it said $36 million is spent on goods and services outside of Emery County each year by county residents. Brady said the survey can also be used to determine in which areas a new business might be successful and serve a need in the county.
Green River had a water issue where their water tank was leaking. He reminded everyone to have a supply of water storage for emergencies.
Commissioner Cowley said the sidewalk project at the Castle Dale senior citizen center is underway to shorten the wheelchair ramp into the building.
Commissioner Migliori said the commissioners have been involved in the budget meetings. There are some economic prospects for the county on the horizon.
Other commission items included approving Trent Jackson as Ferron City representative and Jaclynne Nelson as Green River City representative on the Emery County Recreation Special Service District.
Quanna Cook was approved as a volunteer for the libraries.
A 3 percent wage increase for Ryan Jensen for successful completion of his 6 month orientation period was approved.