Coconino County flood control district seeks long-term flood planning, discusses repaying $15.5 million general‑fund loan

The Coconino County Flood Control District on Monday presented a transition plan from post‑wildfire emergency work to long‑term flood mitigation and forest restoration, and discussed options to repay a $15.5 million loan advanced from the county general fund after the 2022 wildfires.

Flood control administrator Lucinda Andreani told the Board of Supervisors — sitting as the district board — that the district is recommending a multi‑year countywide planning effort to prioritize projects in FEMA Special Flood Hazard Areas such as Sedona, Munns Park, Mountain Del and Fort Valley. Andreani said the district also plans to move from emergency pipeline‑area work into more traditional flood control capital projects and system inspection and maintenance.

The presentation emphasized public‑safety rationales for continued investment in forest restoration and watershed work. Sean Priyama, program manager for the district, gave a fiscal overview saying the beginning fund balance for fiscal 2025 was about $12.5 million and that federal and state awards administered through the district currently total in the neighborhood of $133 million in active grants and reimbursements.

Why it matters: The county used general‑fund cash to advance emergency flood mitigation after catastrophic wildfire. Repayment of that advance will affect both flood‑control planning and county cashflow; supervisors and staff called it a moment to rethink debt management and insurance for the county’s flood‑control assets.

Key details

- Loan history and repayment option: Andreani and County Treasurer Sarah Benatar reviewed that the county general fund lent the flood control district $5.0 million in July 2022 and an additional $10.5 million later in 2022, for a total advance of $15.5 million. Staff outlined a likely approach in which the district would enter an agreement to pay the county back in full up front, and the county treasurer would then provide a loan to the district structured as two five‑year loans (the treasurer’s office is authorized to issue five‑year loans under state law). Treasurer Benatar explained the county charges 0.5 percentage points above the relevant U.S. Treasury rate when it places district debt on its balance sheet; staff estimated the district’s total payback to be roughly $16.5–$17 million subject to final calculation of accrued interest and draw timing.

- Grants and reimbursements: Priyama reported the district has recovered the bulk of federal reimbursements from NRCS (Natural Resources Conservation Service) and the U.S. Forest Service and is current through March, with April submissions in process. Andreani said the state Department of Fire and Forest Management (DFFM) had provided a matching award for NRCS funding but that part of DFFM’s money carried a limited lapse date; roughly $2.5 million remained to be reconciled but staff expected most of the match to be available.

- Protect grant and congressional funding: Staff said the request known as the “Protect” grant is still under federal review and that Department of Transportation staff were working through a large queue of awards; congressional‑directed spending (CDS) funds allotted for Lowell Observatory‑adjacent fuel reduction and other projects remain available but remained largely unspent because work has not yet been invoiced.

- Transition in personnel and programs: The district requested converting the community relations manager position from a three‑year term to a permanent (FTE) position after Sean Priyama announced he will leave the district; staff said the budget already contains the funds and that recruiting for a one‑year term would be difficult.

- New program area: Staff proposed establishing a program within the district to manage capital projects in FEMA Special Flood Hazard Areas (the district’s jurisdiction includes several mapped floodplains) and said they will return with prioritization criteria for board discussion in late May.

Board discussion and next steps

Supervisors thanked the district staff for rapid post‑fire work and pressed for more detail on prioritization, long‑term costs and contingencies if additional disasters occur. County legal counsel and the district’s counsel said the proposed structure — board approval of a repayment agreement plus a treasurer loan to the district — is legally workable and commonly used by other Arizona special districts, but they emphasized that the board would be asked to act again when staff returns with a finalized repayment structure.

Staff promised forthcoming work sessions on (1) prioritization criteria for the FEMA special flood hazard areas and (2) an overarching wildfire, insurance and financial resilience work session. Treasures and legal counsel will provide final loan numbers and structure before a board action.

Ending

Andreani said the fiscal and project proposals were intended to shift the district from immediate post‑wildfire emergency work to a longer‑term, countywide flood‑mitigation program and to continue substantial forest restoration investments. The board scheduled additional work sessions this month to review prioritization criteria and the loan repayment structure in more detail.