Gila County supervisors authorize bond financing to accelerate flood-recovery work

Gila County supervisors on April 7 approved a resolution authorizing pledged-revenue bonds to provide cash flow for flood-recovery projects, a step officials said is necessary to keep contractors working while federal reimbursements are processed.

County staff told the board the financing is structured as a reimbursement bond: the county spends on approved recovery projects and then submits requests to federal or state agencies for reimbursement. Staff said the documents allow flexibility to draw only the funds needed; the board voted to approve the use of Stifel, Nicolaus & Company as underwriter and Greenberg Traurig LLP as bond counsel for the transaction.

Supervisor Klein said he was concerned about the largest proposed authorization amount. "I absolutely do not want to go any further than what we have for cash," Klein said, warning that the county — a smaller jurisdiction — needs to avoid overextending. He and other supervisors noted the county’s limited revenue base and the need to prioritize identified projects.

Other supervisors described the financing as a safety net that lets the county continue immediate work. "It's a safety net to keep us from having major difficulties and to get the work done that we need for our constituents," Supervisor Humphrey said, urging that the county can take less than the full authorization if necessary.

Staff also told the board the bond will be repaid from pledged revenue streams including state-shared sales tax, payments in lieu of taxes and vehicle license tax, and that the structure allows earlier payoff to reduce risk. The bond documents delay the first payment until January 2027 to avoid creating a large payable at the start of the next fiscal year.

The board approved the resolution by roll-call vote. Next steps include finalizing underwriter and bond-counsel documents and setting the exact size and timing of any sale based on project cash-flow needs.