Torrance County adopts ordinance to establish Permanent Fund for PILT revenues

Torrance County on Jan. 28 adopted Ordinance No. 2026-01 to establish a county Permanent Fund intended to hold special revenues, principally PILT (payment in lieu of taxes), and to protect principal from ordinary budgetary spending. County Manager Jordan Barela said the ordinance "creates a Permanent Fund for special revenues, primarily PILT (Payment in Lieu of Taxes) revenues," and emphasized that adoption sets the structure only; actual deposits would require a later Commission resolution.

Rob Burpo, the county's financial advisor, testified under oath during the public hearing that earnings could be moved to an income fund by Commission resolution but that withdrawals of principal "cannot be removed by Commission alone. Requires a vote of the electorate at a regular election." Burpo described the permanent fund as intentionally disciplined and distinguished it from the general/reserve funds by investment horizon and expected yield, noting roughly a 1 percentage-point higher yield in current markets for longer maturities. Chairman Ryan Schwebach said he supported creating the structure now as "a tool" to preserve principal while clarifying that no revenues would be appropriated at adoption.

The ordinance was adopted by roll-call vote with Commissioners Schwebach and McCall voting yes; Commissioner Linda Jaramillo was absent. The board and staff said two additional formal steps would be required before money could be shifted: adoption of a permanent-fund-specific investment policy and a separate resolution directing PILT receipts into the fund. Any future proposal to remove principal would need voter approval and a specified purpose.