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Commissioners weigh establishing a permanent fund to protect PILT windfalls
Summary
Financial adviser Rob Burpo briefed commissioners on creating a legally guided permanent fund (6-6-19 NMSA) that would protect principal and permit controlled spending of earnings; Commissioners agreed to move forward with ordinance drafting but deferred funding decisions to later budget discussions.
Torrance County examined the idea of converting current reserve and PILT revenue into a permanent fund at the Sept. 10 commission meeting.
Financial adviser Rob Burpo explained that a permanent fund, created by ordinance under 6-6-19 NMSA 1978, differs from a resolution-created reserve because principal is protected from ordinary appropriations and principal reductions typically require a public vote. "The statutes are very easy to work with," Burpo said, and the county would create the permanent fund by ordinance plus a separate spending policy deciding what share of yearly earnings may be used.
Burpo said investment options widen once a fund reaches $40 million and noted the county could start with current PILT money and future PILT receipts while keeping the state-required 3/12 general-fund reserve outside the permanent fund. Commissioners expressed broad support for creating the enabling ordinance but were split on how — and whether — to fund it immediately. Chair Schwebach said he favored establishing the tool but wanted budgetary clarity before committing principal from one‑time windfall or PILT receipts.
Commission consensus was to direct staff to draft the ordinance, prepare an investment-and-spending policy, and bring public-notice and hearing options for the Commission’s consideration later in the fall.
Provenance: Topic introduced SEG 009; topic discussion continued through SEG 017.
