Coconino County flood control leaders outline long-term plan, seek to convert emergency loan into treasurer-managed repayment

Lucinda Andreani, the Flood Control District administrator, told the Coconino County Board of Supervisors the district has shifted from emergency post‑wildfire response to a longer‑term program that includes projects in FEMA Special Flood Hazard Areas and continued forest restoration.

The timing matters, Andreani said: “As Andy mentioned, … this is a transition year for the district.” She asked the board to endorse moving from short‑term pipeline flood mitigation work toward a countywide prioritization of capital projects in Sedona, Munns Park, Mountain Del, Fort Valley, Tusayan and other mapped flood hazard areas.

That transition will coincide with a proposed financial restructuring of the general‑fund loan that supported post‑Schultz Fire response in 2022. Andreani and county staff described two prior general‑fund draws totaling $15.5 million (a $5 million draw in July 2022 and $10.5 million in late 2022) and said the treasurer will work with the district to convert that liability into a formal repayment arrangement. County Treasurer Sarah Benatar said she can structure a repayment, but Arizona law limits treasurer loans to five‑year terms: the repayment would therefore be structured as two consecutive five‑year loans to cover the total amount. Benatar described the interest calculation method and said she will compute the backdated interest and repayment schedule for the board and district to review.

Why it matters: the district has used federal and state awards to complete extensive post‑fire projects—work the presenters said amounts to hundreds of millions when federal/state reimbursements and awards are tallied. But Andreani emphasized that the district must now expand its focus to non‑pipeline flood projects and system maintenance in mapped FEMA floodplains. “These are public safety projects,” she said, urging a long‑range prioritization process and a new program structure under the district to manage FEMA special flood hazard projects.

Key details and context

- The district’s beginning fund balance for FY25 was reported as about $12.5 million; Sean Priyama, program manager for the flood control district, said the district and partners estimate more than $133 million in awards and reimbursements associated with relief, mitigation and forest restoration projects.

- Grants and awards discussed included NRCS reimbursements, a U.S. Forest Service Good Neighbor Authority award, and state Department of Fire and Forest Management (DFFM) match funds. Andreani said the DFFM match award was for roughly $10.8 million; staff reported they had been reimbursed about $7.4 million and were working to secure the remaining ~$2.5 million and to manage timing restrictions on some tranches.

- Specific mitigation gaps were described near Brandeis Way and Peaceful Way, where county engineers say upsizing downstream channels would have required highway work beyond the district’s control. Staff said a pending Protect grant from the U.S. Department of Transportation—still under federal review—would have helped those localized needs if approved.

- Forest‑restoration work remains a central district priority; staff said the district is funding multiple projects (Hawk, LaRue, Durfer, Bill Williams Mountain, among others) and that some federal grants now reimburse work already submitted for reimbursement.

Board and staff next steps

- Staff will return with a formal prioritization framework for FEMA Special Flood Hazard Area projects for board discussion and direction. Andreani said an initial discussion about prioritization criteria will be scheduled before the end of the month.

- Treasurer Benatar will calculate the precise repayment amount (principal plus backdated interest) and present a proposed repayment schedule. Staff described the practical effect as the general fund being repaid up front and the district receiving a treasurer‑managed loan in its place, structured as two back‑to‑back five‑year terms to comply with statutory limits.

- The district will continue to pursue outstanding reimbursements and awards (NRCS, USFS, DFFM match and congressional directed spending) and will bring any additional carryover or ineligible‑cost requests into the FY26 budget as needed.

Speakers

- Patrice Horstman — Chair, Coconino County Board of Supervisors (District 1) (government) - Lucinda Andreani — Flood Control District administrator (government) - Sean Priyama — Flood Control District program manager (government) - Sarah Benatar — County Treasurer (government) - Jeronimo Vasquez — Supervisor, District 2; Vice Chair (government) - Supervisor Fowler — Supervisor (government) - Supervisor Begay — Supervisor (government) - Andrew McGuire — Legal counsel for the Flood Control District (Gus Rosenfeld) (government / legal) - Bill Ring — County Attorney (government / legal) - County Manager — (role titled in transcript; name not specified) (government)

Authorities

- statute: "Statute limiting county treasurer loan terms to five years" (referenced_by: ["Sarah Benatar","Lucinda Andreani"]) — treasurer noted legal limit on single‑loan length. - grant: "DFFM matched wildfire award (Department of Fire and Forest Management)" (referenced_by: ["Lucinda Andreani"]) — state matching award discussed and partially reimbursed. - grant: "NRCS awards" (referenced_by: ["Sean Priyama","Lucinda Andreani"]) — federal reimbursements and matching programs discussed. - grant/authority: "U.S. Forest Service Good Neighbor Authority" (referenced_by: ["Sean Priyama","Lucinda Andreani"]) — ongoing agreements and reimbursements. - program/regulation: "FEMA Special Flood Hazard Areas / NFIP" (referenced_by: ["Lucinda Andreani"]) — areas the district will prioritize. - grant: "DOT Protect grant (pending)" (referenced_by: ["Sean Priyama","Lucinda Andreani"]) — federal application under review in DOT headquarters.

Clarifying details

- general_fund_loan_total: 15,500,000 (two draws: $5,000,000 in July 2022 + $10,500,000 in late 2022) (source_speaker: Lucinda Andreani) - district_beginning_fund_balance_FY25: 12,500,000 (source_speaker: Sean Priyama) - estimated_awards_reimbursements: ~133,000,000 (programs and federal/state awards being overseen by the district) (source_speaker: Sean Priyama) - DFFM_match_award_total: 10,800,000 with ~2,500,000 remaining unreimbursed at the time of the presentation (source_speaker: Lucinda Andreani) - Forest restoration projects noted: Hawk (RFP ~2,000,000), LaRue (1,100 acres; initial phase ~250 acres funded at roughly 2,600,000), Bill Williams Mountain (FY26 funding noted ~2,800,000 for part of the work) (source_speaker: Lucinda Andreani) - treasurer_loan_limit: single‑loan term limited to five years under state statute; staff described structuring two consecutive five‑year loans to cover the outstanding balance (source_speaker: Sarah Benatar)

Proper names

- Coconino County (agency) - Schultz Fire (event) - NRCS (agency) - U.S. Forest Service (agency) - Department of Fire and Forest Management (agency) - Bill Williams Mountain (location/project) - LaRue (project/area) - Copeland Detention (facility)

Community relevance

- geographies: Sedona; Munns Park; Mountain Del; Fort Valley; Tusayan; Brandeis Way / Peaceful Way corridor; Bill Williams Mountain; Upper Rio de Flag; Page; Flagstaff; Copeland Detention - impact_groups: households in FEMA Special Flood Hazard Areas; residents near pipeline flood mitigation projects; communities affected by wildfire and post‑fire floods; forest restoration contractors and workers - funding_sources: NRCS, USFS Good Neighbor Authority, DFFM (state match), congressional directed spending, DOT Protect grant (pending), special tax revenue to the Flood Control District

Discussion_vs_decision

- Discussion points: transition from federal pipeline mitigation work to FEMA Special Flood Hazard Area capital projects; use of forest restoration funds and its carryover; outstanding reimbursements and grant timing; engineering options for mitigation gaps; converting the general‑fund emergency draws into a formal treasurer loan arrangement. - Directions/assignments: treasurer to compute repayment amount and repayment schedule; staff to return with prioritization criteria for FEMA SFHA projects and additional details on ineligible costs for FY26 budget; district to continue pursuing outstanding reimbursements and to present any carryover requests. - Decisions: no formal board vote or final authorization of repayment structure was recorded during this session; presenters and treasurer described the recommended approach and next steps for board consideration.

Provenance

- transcript_segments: [ {"block_id":"fcd_intro_1","local_start":0,"local_end":215,"evidence_excerpt":"Thank you, chair Horstman, members of the board. It feels like we've been here before, but today is a new day. It's springtime in Northern Arizona... I'm going to introduce Lucinda Andreani, our flood district administrator","tc_start":"00:02:53","tc_end":"00:04:04","reason_code":"topicintro"}, {"block_id":"fcd_conclude_1","local_start":0,"local_end":200,"evidence_excerpt":"Thank you for all you do in your team. And, Sean, we'll miss you, but we'll see you around town. So and we're only 10 minutes late.","tc_start":"01:12:53","tc_end":"01:13:20","reason_code":"topicfinish"} ]

Searchable_tags:["flood-control","forest-restoration","loan-repayment","FEMA","DFFM","NRCS","Coconino-County"]},