Supervisors take “wait and see” approach to PSPRS bill

Federal approval received for flood recovery projects, and $4.4 million grant to reduce lead in homes approved 

Posted

At their March 17 meeting, the Gila County Board of Supervisors debated how to respond to a large unexpected bill from the Public Safety Personnel Retirement System, ultimately deciding to wait to pay the bill. They discussed the recent approval of flood recovery projects by the National Resources Conservation Service, allowing those projects to get under way. They also approved a program to reduce lead exposure in older homes, made possible by a federal grant. 

Supervisors take “wait and see” approach to surprise retirement fund bill

Annually, the supervisors must update county policy for funding the PSPRS, reflecting an updated valuation of the funding. This year, the county received a surprise bill — a newly reported, and unexplained, $375,263 shortfall.

Maryn Belling, the county’s finance director, told the board that the same fund had shown an excess of over $500,000 the year before, meaning the position swung by more than $800,000 from last year’s positive balance to this year’s shortfall.

Belling said she pressed the retirement system for an explanation but was told no further information could be provided.

“It’s on the report under a category of ‘other,’” she said. “And when we asked what constitutes ‘other,’ they basically told us it was mathematical, and there’s not a list of things that go in it.” 

That answer did not sit well with the supervisors. They all agreed that the size of the swing was troubling, and the fact PSPRS can’t explain it is also worrying.

The supervisors then discussed whether to go ahead and pay the amount, or hold off until next year and see whether the amount changes again.

Belling noted that state law requires the county to maintain a policy aimed at reaching full funding, but the law does not require the county to immediately eliminate every shortfall as soon as it appears. The next set of actuarial reports is expected in December, and the issue will return to the board again in about one year.

County Manager James Menlove recommended not panicking and holding onto the money for now, because the amount could swing to the positive again in the next actuarial report.

“To me it’s a bit insulting to ask why, and they say ‘We don’t know why,’” said Board Chairman Steve Christensen. “Just say, ‘Voodoo,’ you know, ‘The ouija board didn’t work this year.’” 

Menlove urged caution about committing scarce funds too quickly, pointing out that county resources are under pressure. Flood-related needs remain a top priority, and the county is also discussing possible major borrowing for additional flood recovery work.

Vice Chairman Woody Cline expressed unease about waiting, arguing that paying now could protect the county if the shortfall grows larger next year. 

But the majority concluded that, given the uncertainty and the county’s current financial pressures, delaying payment was the better course. Supervisor Cline voted nay.

The supervisors also asked for a meeting with PSPRS representatives to try to obtain a clearer explanation of the numbers.

Flood recovery projects get green light

Federal approval has been received for long-awaited flood recovery projects to be funded through the Natural Resources Conservation Service, Menlove announced.

The projects are valued at approximately $33 million, with the county responsible for about $7.5 million.

Public Works Director Christine Smith noted that the approval was received on March 16, triggering a 220-day timeline to complete the work.

Work will address areas including Six Shooter Canyon, Kellner Canyon and Ice House Canyon, and will include a wall project at the hospital and work on sediment issues.

“We’ve got a lot of projects going on all at the same time and 220 days to do them, so I think it's going to be management, management, management,” Supervisor Tim Humphrey said.

With multiple projects underway simultaneously, he emphasized the need for strong coordination and requested a dedicated work session to discuss the operation.

Smith said the county is well prepared, having already begun engineering and cost planning for the projects.

County wins $4 million grant to address lead hazards in older homes

The supervisors approved a major federal grant aimed at reducing lead exposure in older homes, a program expected to benefit hundreds of local families over the next four years.

The grant, funded by the U.S. Department of Housing and Urban Development, will provide $4.4 million in federal funding, and a county match will add $421,889, for a total program value of approximately $4.82 million. The county match will be met through use of county facilities and county staff contributing hours rather than through actual dollars.

The funding will be used to identify and address lead-based paint hazards in low-income homes built before 1978. Josh Beck, director of environmental health services for the county, said the focus will be on protecting children under the age of six, who are most vulnerable to lead poisoning.

Work will include home inspections, certified lead risk assessments, and abatement by licensed contractors, along with follow-up testing to ensure homes are safe.

“If there's not a big issue, we'll be able to certify four or 500 homes hopefully,” Beck said. “And if we run into issues, we'll still be able to go through and do as many homes as we can.” 

A portion of the funding — about $400,000 — is set aside for “healthy homes” improvements, which would address other issues discovered during inspections, such as mold, ventilation problems, or minor electrical and structural concerns.

Beck said outreach will be a major component of the program, and his department will connect with families through existing services such as WIC. They will also reach out through hospitals and community programs.

While the program is designed to serve at least 250 homes, Beck said he hopes to reach as many as 500 households. The program will run from March 2026 through February 2030.

Spotlight on employees: Kayle Lathrop

The supervisors recognized Kayle Lathrop for her exceptional contributions as public health grants and programs manager. She was acknowledged for securing more than $11 million in federal and state grants, enabling the county to expand services without increasing the burden on taxpayers.

Reports

During Menlove’s report to the board, he mentioned county employees will see several changes to their health benefits beginning July 1, including a major shift from a state-based Blue Cross Blue Shield network to a national network, which will expand employees’ access to providers across the country. He reported that Gila Community College is on its way to becoming fully accredited, which will make the college eligible for approximately $3 million in state funding. He also mentioned that the county is exploring how to prepare for potential data center development, a growing issue across Arizona. 

Cline noted continued frustration among residents over permitting issues during his report. 

Christensen reported that Gila Community College’s expenditure limitation is insufficient, forcing the college into technical violation each year. A ballot proposition is being prepared to raise that limit without increasing taxes.

This is an abbreviated version of our coverage of this meeting. To see our complete coverage of this meeting, including motions approved, find the online version of this article at globemiamitimes.com

Comments

No comments on this item Please log in to comment by clicking here