Officials: Health district in critical financial condition

CELINA - The Mercer County Health District is bleeding money to such an extent that its officials, who went before the Mercer County Budget Commission on Friday morning requesting a 15% increase in annual appropriations, were asked to considering running a property tax levy.

Health district officials gave a presentation showing their need for additional local tax dollars after years of being largely flatlined. The health district has an annual budget of about $2 million, of which $325,000 is derived from villages, the city of Celina and the townships. The rest of the health district's revenue comes from grants, fees and charges.

However, budget commission members, upon learning the health district saw deficit spending of about $220,000 in calendar year 2023 and $275,000 in calendar year 2024, forcing it to rely on an ever dwindling carryover balance, said the request for an additional 15% in appropriations - or roughly $50,000 - may amount to a stopgap, not a sustainable solution.

"If we go to the townships and the (corporations) to raise their contribution by $50,000, how does that shore up the trend of what I saw in the last two years?" asked budget commission member and county treasurer David Wolters. "How long does that sustain itself?"

Recapitulating the crux of the health district's presentation, to her understanding, county assistant prosecutor Amy Ikerd said the extra 15% would slow the hemorrhaging, not plug the hole.

"So this is a short-term solution, and you're still looking at ways to save, and on our side we're waving the warning flag, not just to you but to our townships that were invited here today, that there's a funding issue here," Ikerd said. "This board, upon the demonstration of need, has no choice but to help with that need, and that help primarily comes from our political subdivisions, which is going to impact them significantly."

Jeff Larmore, a budget commission member and the county auditor, said the health district's revenue is clearly trending down.

"You've done what you can do because a lot of this is mandated by the state, and you're kind of handcuffed," Larmore said about the health district's attempts to slash expenses while still providing state-required services. "You can only cut so much and get down to where you're not going to be a very efficient health department."

Among the health district's many responsibilities are preventing and controlling the spread of infectious diseases; assessing and monitoring environmental factors that potentially impact public health, including air, water, soil and food; and assuring quality in health care facilities and services and environmental health.

Over the last three years, the health district's number of employees dropped from 19 to 12, with certain positions either being combined or unfilled, according to health district fiscal specialist Lynda Beckett.

"Why you see my face here is one of the cost saving measures employed by the board to fill leadership roles," noted Michelle Kimmel, who was promoted from registered environmental health specialist to full-time health district administrator in December. "Thankfully Dr. Winner agreed to do the health commissioner role part-time. He didn't take any pay increase for it. He's just getting $6,000 a year. That was what he was getting for the medical director, and there's no change there. I'm coming in at a lesser rate as well."

As Larmore sees it, there are only two ways to boost revenue - ask the political subdivisions to contribute more or seek a levy at the ballot box.

The health district's previous three levy attempts failed, most recently at the November 2022 general election.

The health district last sought a 0.55-mill, five-year levy to cover expenses such as maintaining public health services, office rent, utilities and renovations, lost revenue replacement, cost-of-living pay increases, a new health educator position and workforce support and development.

The levy would have generated $623,120 the first year of collection, and the owner of a $100,000 home would have paid $19.25 annually in taxes.

The levy fared slightly better than it did at the May 2022 primary election, but not enough to pass. Official election results show that 52.96% or 9,161 votes were cast against the levy and 47.04% or 8,138 votes in favor.

However, one of the drivers of that levy was new expenses associated with moving out of the health district's current location in the Mercer County Central Services Building in Celina.

The health district has since been told that it may remain in the building, removing the imperative to find a new home and accompanying expenses.

With that in mind, Larmore said the health district could pursue a scaled-back 0.25-mills levy that would garner about $435,000 annually, costing the owner of a $100,000 home roughly $8.75 a year.

Should such a levy pass, the health district would do away with collecting annual contributions from the local political subdivisions, instead earning that revenue directly from local property owners.

"That's going to get you the extra money, and that's going to sustain you guys for a while," Larmore said. "It's also going to be nice for all the other entities that are contributing … because everybody has an incentive to pass a levy this time."

The health district board would have to pass a number of resolutions by Aug. 6 in order to get a levy on the Nov. 4 general election ballot. The health district board meets next at 8 a.m. April 9 in the first-floor conference room of the Central Services Building.