Bannock County examines shifting shop labor to departmental billing to recover costs

Bannock County commissioners and Road & Bridge staff on Thursday debated how to charge departments for shop labor, weighing a flat administrative fee against per-hour or per-use billing as they finalize the B budget.

County staff said total shop labor charged last year was about $16,000 but acknowledged the number could be higher because brief checks or quick jobs may not have been captured. To reduce reliance on property tax dollars, staff proposed adding a distinct labor line in the enterprise fund (B) and using a multi-year average to set a charge; one example discussed was anticipating $20,000 in recoverable revenue that would be applied back to salaries rather than property taxes.

The proposal aims to keep enterprise funds paying for fleet support rather than general taxpayers. "If we say put it at $20,000, that'll be $20,000 that will be recovered for those salaries," a Road & Bridge supervisor said, urging commissioners to accept either a set administrative fee or actual charges so the office can defend its approach.

Commissioners and staff also reviewed fleet costs: a $130,000 increase in vehicle repair was attributed to parts availability and several expensive rebuilds, including three motor replacements at roughly $35,000 each. Staff said many large trucks require multi-year replacement planning and that the department is two to three years from returning to a normal replacement cycle. Lease payments for heavy equipment currently hover near $500,000, while purchasing would raise capital outlays considerably.

Winter maintenance supplies were a separate line-item discussion. The county budgeted about $100,000 for salt and sand to build stock ahead of supply constraints and higher carbide blade prices, and staff explained that reallocation between shop supplies and road supplies left the overall money in place but shifted where it’s recorded.

Capital timing and supply delays also featured: sander bed deliveries are delayed and staff plan to roll over about $165,000 into next year’s capital to cover beds expected in October. Commissioners asked staff to separate fuel projections into gallons and price so usage management can be tracked independently of volatile fuel prices.

The board asked staff to provide a two- to three-year history of shop labor hours and costs so it can choose between a flat admin charge or actual-billing approach. Staff said they will work with the clerk to add a labor line in October and return figures the commission can use when adopting final budget numbers.