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County treasurer reports FY25 collections, warns of shutdown and market uncertainty
Summary
Treasurer Sarah Benatar reported FY25 financial activity and pooled-investment allocations, noting a ~97.85% property tax collection rate and $432M in pooled deposits at fiscal year-end.
Coconino County Treasurer Sarah Benatar presented an annual report on the treasurer's office operations, FY25 receipts and disbursements, and the county's pooled investments, followed by a market briefing from investment adviser Paulina Wu.
Benatar said the office reconciled just under $700 million in receipts during FY25, dispersed about $665 million and managed pooled deposits of roughly $432 million at year-end; property tax collections were about 97.85% for the fiscal year. She described recent operational changes: a new bank partner (PNC) with a lockbox for tax processing to speed posting; rollout of account-validation services (AVS) to reduce invoice/ACH fraud; enhanced cash-flow analysis that considers disaster response needs.
Paulina Wu (investment adviser) briefed the board on macroeconomic indicators: the Federal Reserve has begun cutting its policy rate and market-implied forward curves expect further cuts; inflation remains above target though easing; the yield curve is inverted in some tenors and credit spreads have widened slightly. Both presenters cautioned that a continuing federal government shutdown could delay federal economic data releases (reducing near-term clarity) and pose operational risks for federally administered programs; Benatar noted certain federal programs (WIC, TANF) remain funded for now but are being monitored.
The treasurer briefed the board on investment allocation at fiscal year end (roughly 46% agency bonds, ~30% corporate bonds, 14% money markets, 10% treasuries) and reiterated the office's guiding principles: safety, liquidity and yield in that order. She said the treasury will monitor collection trends and the market's reaction to fiscal and monetary developments and provide updates to the board as needed.
What's next: Treasury will continue monthly reporting and coordinate with county departments on potential short-term lending or cash management options if federal uncertainty deepens.
