An appraisal is being sought as the next step to ease the financial stress on the budget of the Benzie-Leelanau Health Department.

An expert determination of value is needed to establish the worth to refinance the balance of the mortgage remaining on the Connie Binsfeld Resource Center in Lake Leelanau, the Board of Health has decided. The department has been forced to cover the portion of the mortgage that was previously paid through the occupation of space by the Leelanau Peninsula High School, the alternative county high school that closed its doors in July. As expected, the vacancy that resulted is cutting into the department’s fund balance – a fact confirmed to the Board of Health at its March 27 meeting.

Although “clean,” an audit revealed a 22 percent drop in the fund balance for the 2006-07 fiscal year, which ended Sept. 30 for the department. The department’s nest egg dropped from $403,076 on Oct. 1, 2006 to $330,235 on Sept. 30, 2007.

“We need to come up with a financing plan to reduce our cost,” director Bill Crawford said, adding that the vacant space is costing the department an additional $4,000 monthly. “We’re moving forward with the appraisal — refinancing, It’s challenging because we’re a public body and the appraisal becomes public record.”

The initial action planned is refinancing the mortgage balance at a lower interest rate and extending it beyond the initial 20-year term. After that, the department would ultimately like to get out from beneath the debt. The building was financed with the backing of Leland Township with the understanding that once paid off, it would be turned over to the Township Board. As it reads now, the deed reflects this intention. But it also states that if the building is sold, the township gets the facility.

“This would have to be addressed,” Crawford said.

Reducing the financial burden of the Binsfeld Center on the department is one of six goals established by the Board of Health last week. The board would also like to:

• Present a balanced budget for 2008-09, minus resource center expenses.

• Develop a marketing plan for services.

• Update computer software for the personal health division.

• Complete an evaluation of Crawford’s job performance which he said has not been done, “for the past four or five years.”

• Improve the department’s ability to accept credit cards, particularly for environmental health fees.