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Cochise County treasurer underscores conservative investment approach despite state authority for limited equities
Summary
Treasurer Rebecca Trawick discussed investment options at the April 14 work session, citing state-level authority that allows limited equity investments but saying she will not risk principal and prefers steady, conservative returns.
Rebecca Trawick, Cochise County treasurer, discussed the county's investment posture at the April 14 Board of Supervisors work session, noting a state-level allowance for limited investment in equities but emphasizing a conservative approach to protect principal.
Trawick said there is "only one" statute that restricts or enables the treasurer to expand into broader investment opportunities and recalled that state lawmakers had previously granted the treasurer limited authority to invest a portion of idle funds in equities; she described that allocation as "like 25%" of funds available for short-term investment while keeping liquidity. "There is a possibility of loss," she said, and repeated, "I will not lose principle."
She discussed past local-government investment losses to illustrate risk, pointing to New Century Financial Enterprises's failure and large losses in a local government investment pool. Trawick also referenced larger public-entity examples: Maricopa County treasurer offices that placed more funds in higher-yield investments during periods of rising rates and the differences between county investment approaches and larger pension funds such as PSPRS.
While acknowledging that equities can generate higher returns over time (she cited S&P 500 index exposure as one vehicle she uses personally), Trawick said county management must be cautious because government funds require liquidity and principal protection: "If I lose the actual investment itself or any portion of it, that's devastating." She described her personal tolerance for risk as low given her responsibility for taxpayers' money.
No formal change to county investment policy or new vote was proposed during the work session; the discussion characterized the treasurer's current stance and the statutory framework she considers when managing county cash balances.
