This is an archived article that was published on sltrib.com in 2005, and information in the article may be outdated. It is provided only for personal research purposes and may not be reprinted.
Salt Lake County could find itself in violation of state law - for having too much money.
With a surplus near $150 million, the county's fund balances are nudging toward the 20-percent maximum allowed under state statute.
Leaders were politely reminded of the problem this week while visiting leading bond-rating agencies in New York. There to secure financing for the Salt Palace expansion, officials learned reserves across the county's 43 funds may be too big - bloated, really.
Chief Administrative Officer Doug Willmore agrees, explaining the county is maneuvering to cinch its fiscal belt.
"Some of it clearly has to be there, but not that much," Willmore said Wednesday.
So, before next year's budget, the Mayor's Office will feed portions of the reserve back to the general fund. The idea, Willmore says, is to make every county operation compete for dough from the same pot.
"We don't want them to feel too comfortable, if you will."
But Magna resident Kellyle Christensen has another idea.
"I'd like to see some go back to the public," said Christensen, complaining that every year, county taxes seem to "go up and up."
"Share the wealth a little bit," he added. "Put it back where it goes - where it does the public good."
Mike Jerman, vice president for the Utah Taxpayers Association, agrees.
"It should be used for critical capital projects," he said, insisting that public safety trumps a Broadway-style downtown Salt Lake City theater - a controversial concept proposed for county support. "Or even a tax cut."
Still, Jerman cautioned that revenue collected from user fees should be hands off, not doled out through the general fund.
County surpluses range from $15 million in sanitation to $470,000 in visitor promotion. There is also nearly $3 million extra for flood control, another $3 million for phones and $1 million for the planetarium.
The largest reserve, $44 million in the general fund itself, is followed by $21 million in municipal services.
Councilman Joe Hatch, who was on the New York trip, disputes the notion that bonding officials told county brass surpluses were too high.
''What they said is, 'If you had a judicious and reasonable draw-down of the fund balances, your bond rating should not be in jeopardy,' '' Hatch said.
Auditor Sean Thomas explains that levels are kept high - many were "holdovers" from the days when the county had a commission rather than a council - to mitigate wild swings in county tax rates, guard against recessions and absorb any hits from inflation. High balances also are critical, he notes, for maintaining the county's elite triple-A bond rating - though exact numbers "are a guessing game."
Still, he concedes the total amount "could probably be lower than it is."
''We're way above our minimum reserves.''
Budget Director Lance Brown says the county is "very close" to its allowed limit - 20 percent -under the State Uniform Fiscal Procedures Act.
"The remedy for that is, it has to be made available the following year for appropriation," Brown said.
So, could what Thomas describes as "the low-hanging fruit" become a feeding frenzy for the County Council?
''Gosh, when you stop and think, 'What do we want to spend it on?' '' says Councilman David Wilde, ''all kinds of proposals can be made.''
Such as: Beefing up drug courts and substance-abuse programs to keep the jail population manageable.
"If we can do this and keep our standing with the bond agencies, that's great," Wilde said.
Councilman Jim Bradley concedes there are plenty of unmet needs - parks and recreation, help with bonding and capital development would be a "perfect" use - but says the politicians "can't be quick to jump on that."
"We've got to be a little careful," he said. "Our revenue streams hopefully are predictable, but inflation plays a role."
Although the county's midyear budget adjustments are scheduled next month, Willmore says the money won't officially be moved until November. That's when officials mold the 2006 budget.
In the meantime, Thomas says the Auditor's Office will work with Mayor Peter Corroon to consolidate the county's 43 existing funds down to 35.
Things such as improvements to Wheeler Farm, Millcreek Canyon and the equestrian park will be folded into the general fund, while telephone management, government-center operations and facility services will become one fund.
''As long as that's not going in somebody's pocket, we're OK,'' says Sue Bitter, a Corroon voter from Cottonwood Heights.
Sam Melonas, a resident of Millcreek Township who is fond of the new mayor's "house cleaning," says the fiscal moves make sense. But he is not holding his breath waiting for a tax break.
"I don't believe, realistically, there's ever any true, long-lasting cuts."
Rolling in dough What $150 million could buy:
* Three Boeing 737 business jets
* 2004 Boston Red Sox payroll ($127.3 million)
* Most of the Utah Capitol renovation ($200 million)
* Almost two Salt Palace expansions ($80 million)
* About a quarter of the revised estimate for the Legacy Highway
* The last "Spider-Man" movie ($139 million) - with money left for popcorn