COBI 2015 - Permanent Community Impact Fund

Overview
Issues
Performance
Background
Financials

Sources Uses

FY 2016 Appropriation

The Permanent Community Impact Fund helps mitigate the impacts of non-metallic mineral extraction on services traditionally provided by government entities. Funding sources are mineral lease royalties returned to the State by the federal government. The Fund provides grants and/or loans to subdivisions of the State for public facilities which are impacted directly or indirectly by mineral resource development on federal lands.

Funding History

Appropriation Overview

During the 2015 General Session, the Legislature appropriated for Fiscal Year 2016, $67,473,700 from all sources for Permanent Community Impact Fund. This is a 1.6 percent increase from Fiscal Year 2015 revised estimated amounts from all sources.

Staff Analysis

FY 2014 ended with $64,269,700 million in uncommitted funds.

Six Projects Denied During FY 2014 for Not Meeting Statutory Guidelines

Price City - $70,000 for removing two fuel tanks. The city requested help with two projects and had some cash for both projects. The Board decided that it could not justify the fuel tank removal. The Board added $70,000 funding help to the other eligble project.
Helper City - $960,800 to restore the Price River waterway. The project is not infrastructure and does not meet the statutory requirements of funding.
Elwood Town - $4,000 grant for an ordinance review and update. The Board directed the town to work with the Community Impact Board regional planner.
Elwood Town - $17,500 for a water source improvement plan. The project was mostly engineering and the Board does not fund stand-alone engineering.
Washington City - $37,000 grant for the design of a public safety facility. The Board does not fund stand-alone design projects.
Northwestern Special Service District - $15,000 grant for the design of a new fire station. The Board does not fund stand-alone design projects.

Board Meetings Per Year With Representatives of Each Partnering Sector

Hire up to 5 Rural Planners to Determine Needs and Impacts of Infrastructure Development in Rural Utah

Percent of New Receipts Invested in Communities Annually

Total State Mineral Lease Revenue and Community Impact Board Allocations by County

Total State Mineral Lease Revenue and Community Impact Board Allocations by Project Type

Statute

This Fund receives revenue automatically as per UCA 59-21-2 (2)(d) and UCA 53C-3-203(4)(viii)). The following is a list of these two revenue sources and the restrictions on their usage:

32.5% of all deposits made to the Mineral Lease Account (UCA 59-21-2 (2)(d)) - money can be used for grants or loans. Loans may be as low as zero percent interest
3% of the deposits to GF - Land Exchange Distribution Account (UCA 53C-3-203(4)(viii))

Intent Language

SB0002: Item 190

The Legislature intends that the Department of Workforce Services report on the following performance measures for the Permanent Community Impact Fund line item: (1) 100% of new receipts will be invested in communities annually, (2) employ up to 5 rural planners to determine needs and impacts of infrastructure development in rural Utah, and (3) staff and board will meet at least three times per year with representatives of each partnering sector by January 1, 2016 to the Social Services Appropriations Subcommittee.

The majority of the funds go out as loans, which do not show up in the expenditure detail below. These loans show up as receivables on other financial statements. The ending balance has both committed and uncommitted funds. Committed funds can take years to pay out as disbursements go out as approved expenditures are submitted over the life of each project.

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Funding Source

Expenditure Category

Appropriation Type:

Appropriation History by

Programs	FY11 Actual	FY12 Actual	FY13 Actual	FY14 Actual	FY15 Approp	FY15 Change	FY15 Revised	FY16 Change	FY16 Approp
Permanent Community Impact Fund	45,866,400	85,688,100	44,599,000	82,017,800	121,171,800	(54,746,300)	66,425,500	1,048,200	67,473,700
Total	$45,866,400	$85,688,100	$44,599,000	$82,017,800	$121,171,800	($54,746,300)	$66,425,500	$1,048,200	$67,473,700

Sources of Finance	FY11 Actual	FY12 Actual	FY13 Actual	FY14 Actual	FY15 Approp	FY15 Change	FY15 Revised	FY16 Change	FY16 Approp
Dedicated Credits Revenue	565,600	2,368,800	127,300	126,000	909,300	(783,300)	126,000	0	126,000
Interest Income	965,700	999,600	734,800	813,000	397,000	416,000	813,000	0	813,000
Federal Mineral Lease	61,708,100	67,015,300	58,621,700	73,598,500	63,810,000	9,788,500	73,598,500	5,594,200	79,192,700
GFR - Land Exchange Distribution Account	265,500	162,600	45,800	75,200	420,000	(312,000)	108,000	0	108,000
GFR - Mineral Bonus	0	0	0	0	9,200,000	(9,200,000)	0	0	0
Repayments	0	32,780,200	0	40,545,000	35,799,900	(10,535,200)	25,264,700	1,048,200	26,312,900
Beginning Fund Balance	256,275,400	273,913,900	291,552,300	306,482,900	311,404,700	28,218,100	339,622,800	33,484,700	373,107,500
Ending Fund Balance	(273,913,900)	(291,552,300)	(306,482,900)	(339,622,800)	(300,769,100)	(72,338,400)	(373,107,500)	(39,078,900)	(412,186,400)
Total	$45,866,400	$85,688,100	$44,599,000	$82,017,800	$121,171,800	($54,746,300)	$66,425,500	$1,048,200	$67,473,700

Categories of Expenditure	FY11 Actual	FY12 Actual	FY13 Actual	FY14 Actual	FY15 Approp	FY15 Change	FY15 Revised	FY16 Change	FY16 Approp
Current Expense	35,900	38,600	41,200	41,600	41,200	400	41,600	0	41,600
Other Charges/Pass Thru	0	0	0	0	35,799,900	(35,799,900)	0	0	0
Transfers	45,830,500	85,649,500	44,557,800	81,976,200	85,330,700	(18,946,800)	66,383,900	1,048,200	67,432,100
Total	$45,866,400	$85,688,100	$44,599,000	$82,017,800	$121,171,800	($54,746,300)	$66,425,500	$1,048,200	$67,473,700

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Other Indicators	FY11 Actual	FY12 Actual	FY13 Actual	FY14 Actual	FY15 Approp	FY15 Change	FY15 Revised	FY16 Change	FY16 Approp
Change in Fund Balance	27,589,300	50,797,400	0	33,139,900	10,417,000	(10,417,000)	0	0	0

COBI contains unaudited data as presented to the Legislature by state agencies at the time of publication. For audited financial data see the State of Utah's Comprehensive Annual Financial Reports.