Natrona County health leaders describe WIC sublease terms, warn of utility and budget impacts

Natrona County health staff told the County Commission on the floor that the Women, Infants and Children (WIC) program will operate inside county-owned office space under a sublease administered through Natrona County, and that the county should expect increased utility and supply costs tied to the move. Health department staff said the short-term agreement covers 2,511 square feet at 475 South Spruce and will not exceed $23,854 through the end of the calendar year.

The county health official said the state provides WIC with IT and pays initial staffing and equipment costs, and that the county receives an 8% indirect for salaries. The official said initial negotiations proposed $17 per square foot, BOMA (Building Owners and Managers Association) market data suggested $21, and the parties agreed to $19 per square foot before the short-term contract was set.

Health department staff told commissioners they expect utility costs in the new building to rise and estimated the energy and facility expenses at about $1.35 to $1.40 per square foot per month in the new facility. The health staff estimated that, for the program, about $50,000 would be the fiscal-year impact (January–December) that could be applied to offset higher utilities, cleaning and supply costs.

Commissioners sought clarification about where the lease revenue would be recorded. Commissioner Coates said he understood rent for county-owned buildings typically posts to the county general fund; the county attorney and county clerk confirmed the county owns the property and that leases for county property should be routed through Natrona County. County staff said the contract must be redrawn so the county — not the health department — executes the lease because Natrona County is the recorded owner of the building.

Commissioners and staff discussed timing and budget procedures. County staff apologized for not bringing the arrangement to the commission earlier in the budget cycle and said the matter crystallized after discussions with the deputy county attorney; the county clerk confirmed the $50,000 was not previously accounted for as revenue in the current fiscal year and would be treated as unanticipated revenue in the next fiscal-year books. Commissioners noted the health department likely will request increased budget authority for the next fiscal year to cover ongoing higher utilities and insurance costs.

No formal motion or vote occurred. Commissioners directed staff to provide the redlined contract language and to clarify whether payments will be booked as general-fund revenue before the board signs a revised agreement.

The county health official said WIC staff have been brought into county employment and will move into the new building with other health department employees; the official said the health department added six staff positions when WIC joined the department.

Background: County staff used a Memorandum of Agreement (MOA) and BOMA occupancy measures to allocate shared and exclusive space. The contract being revised covers the current WIC space at 475 South Spruce for the remainder of the year; staff said a new contract will be drafted at the beginning of the next calendar year.

Commissioners asked for the redline contract and for the county treasurer or bond counsel to confirm how revenues will be recorded and tracked for budget reporting. The commission did not take formal action on the sublease during the meeting.