Board hears proposal to refinance bonds, consider new capital borrowing and receives FY23 audit; public comments urged use of funds for reentry services

Pinal County officials presented a multi‑part finance briefing April 30 that included a proposed refunding of prior county bonds, a proposed new money bond issue to finance capital projects, and a public presentation of the county’s fiscal year 2023 audit and single‑audit findings.

Underwriters reported the county could refinance certain 2014 and 2015 bond issues to capture interest‑rate savings after a contractual 10‑year lockout. County financial advisors estimated potential debt‑service savings in the low millions depending on market conditions and noted the timing of a market sale will determine the final savings; the county will proceed only if the final terms produce acceptable savings. The board heard a proposed new‑money borrowing example of roughly $190 million to fund six capital projects identified in the county’s plan; staff estimated pro‑forma annual debt service of roughly $11.5 million per year under conservative assumptions and said the county’s revenue outlook supports the financing plan. The proposed financing would be secured by a mix of county revenues and conform to statutory limitations; staff emphasized more detailed proposals and a final sale would return to the board for authorization.

The Board also heard the annual county financial audit. The Auditor General’s office and Walker & Armstrong (contract auditors) issued an unmodified (clean) opinion on the county’s FY23 financial statements. The auditors reported improved cash and investment balances (governmental cash reported at about $392 million) but also identified a number of control and reporting issues. The audit included three material‑weakness findings and six significant deficiencies related to: untimely reconciliations (including a payroll bank account not reconciled since 2016), financial reporting delays (the FY23 audit closed in early 2025, missing statutory deadlines), certain IT control weaknesses and housing program accounting matters raised during the single‑audit work. County budget and finance staff outlined steps taken to address the findings, including hiring and training, process changes to reconcile accounts more frequently, closer department coordination and an active plan to complete and shorten the FY24 audit timeline (staff expects an August 2025 completion for the FY24 audit work underway).

During public comment on the financing and audit item, speakers urged the board to direct bond proceeds toward reentry services and job training that support people returning from incarceration. County staff noted the public‑hearing requirements under ARS §11‑391 for long‑term financing and explained the required notice and comment steps the county followed.

No bond authorization vote occurred at the meeting; staff outlined a calendar that would bring a bond‑authorization resolution to the board for consideration during a later session if the board chooses to move forward.