County officials unsure how much will come in year-to-year; funds dropped $7 million between 2008 and 2016
The Carbon County Recreation/Transportation Special Service District (SSD) has a long and complex history. Funds coming into the SSD have gone up and down over the years, much like the economy of Carbon County.
The SSD gets a portion of the lease money from mineral extraction on federal lands within the county. The money is meant to mitigate the impacts to a community associated with mineral extraction.
Over the years the formula for distribution of the funds has changed. Mineral lease funds are received by the federal government, which passes 50 percent along to the states where the lease money came from. The money, by law, cannot go directly to a county. Thus, the SSD was formed. At first there were two districts, a roads district and a recreation district, which was formed for the purpose of expanding the golf course.
The two districts were later combined to form the Recreation/Transportation SSD.
The Carbon County SSD now gets 40 percent of the state appropriation, with the other 60 percent going to the Utah State Community Impact Board (CIB). Counties and cities in impacted areas may apply to the CIB for funding. The CIB may choose which projects to fund and may provide grants or loans. The loans must be re-paid, but usually are issued at very low interest.
In 2008 the total amount received by Carbon County was $10.7 millon. That was the highest year. In 2016 it had dropped to $3.6 million, so far the lowest year.
Although the amount went up in 2017, there is no way to know what the future holds. There are lots of variables that will come into play. At one point coal production was a key component in funding, and may continue to be in the future. The recent court decision that paves the way for the Oakland coal shipping terminal could be a boon to coal production in Carbon and Emery counties.
In this area the other major factor in mineral lease funding is natural gas. However, all natural gas fields have a life expectancy and some of the area gas fields will be played out in the next few years.
“It’s a crap shoot,” said SSD Adminstrator Linda Ballard. “We just don’t know what the future holds.”
Because of that, the SSD has placed a moritorium on funding new projects. Board member Larry Jensen, who is running for election to the Carbon County Commission, has said he opposes using any of the money at this point.
At the current time Carbon County has outstanding loans totalling approximately $40 million and annually pays nearly $40,000 in interest. The county depends on an allocation from the SSD every year to help pay that debt. Without that allocation the county will run a deficit. That could be disasterous for county residents. At that point, Jensen said, the only option will be to raise taxes.
So, for the time being, the SSD will not be distributing funds.