Approval of Amendment No. 1 to Intergovernmental Agreement (IGA) No. VS24-006 with the Arizona Department of Veterans' Services (ADVS) to expand the allowable use of the $3,000,000 State appropriation for the Pleasant Valley Veterans Retreat and establish Fund 5103 for related revenues and expenditures.
 

The Legislature appropriated a one-time $3,000,000 increase to ADVS in the FY 2024 budget (SB 1720, Section 94), directing that the monies be distributed to Gila County for the Pleasant Valley Veterans Retreat. IGA VS24-006, effective December 6, 2023, passed those funds through to the County in four quarterly installments of $750,000, beginning December 8, 2023. As executed, the IGA limits the County’s use of the funds to construction costs. Operating and maintenance expenses for the site—currently estimated at $250,000-305,000 annually, inclusive of utilities, legal, janitorial, pest control, software, vehicle, and full-time employee costs—are currently borne by the Gila County General Fund.
 

Amendment No. 1 to IGA VS24-006 revises the Recitals, Section 2 (Scope of Work), and Section 4 (County Responsibilities) to read “establishing, maintaining, and operating” instead of “construction.” All other provisions of the IGA remain unchanged. The practical effect is that recurring operating and maintenance costs become an eligible charge against the $3,000,000 appropriation rather than the County's General Fund, relieving the County's General Fund of approximately $250,000-$305,000 per year for as long as appropriation funds remain available. No new County funds are committed, and no County match is required. The amendment also aligns the IGA with the Legislature’s appropriation language, which directs the monies to the retreat without restricting them to construction. 
 

Amendment No. 1 to IGA VS24-006 broadens allowable expenditures without altering the amount, the payment schedule, or any other term of the IGA. It provides direct General Fund relief and gives the County flexibility to fund the retreat’s operations from the source the Legislature intended.
 

Staff recommends approval of Amendment No. 1 to IGA VS24-006, which broadens the allowable expenditures under the IGA without changing the total amount, payment schedule, or any other terms. Staff also recommends authorizing Finance to establish the fund and general ledger structure needed to account for related revenues and expenditures under the revised IGA, including transferring existing FY 2027 budget authority and available resources from the County's General Fund to the newly established Fund 5103. This action would not increase Gila County’s total FY 2027 adopted expenditure budget. It would provide direct General Fund relief and give the County greater flexibility to fund retreat operations from the funding source the Legislature intended.
 

Information/Discussion/Action to approve Amendment No. 1 to Intergovernmental Agreement No. VS24-006 with the Arizona Department of Veterans' Services to expand the allowable use of the $3,000,000 State appropriation for the Pleasant Valley Veterans Retreat; authorize the establishment of Fund 5103 for related revenues and expenditures; and authorize Finance to transfer existing FY 2027 budget authority and available resources from the General Fund to Fund 5103, with no increase to Gila County's total FY 2027 adopted expenditure budget. (Joshua Beck)