what keeps the treasurer up at night? 2018...what keeps the treasurer up at night? john b. carroll,...

WHAT KEEPS THE

TREASURER UP AT NIGHT?

JOHN B. CARROLL, TREASURER

SALT RIVER PIMA-MARICOPA INDIAN COMMUNITY

OVERVIEW OF THE SALT RIVER

PIMA-MARICOPA INDIAN

COMMUNITYSovereign tribe, established 1879

52,600 acres

10,000 enrolled community members

Approximately 6,000 members reside

on the Community

Pima, "Akimel O'Odham"

River People

Maricopa, "Xalychidom Piipaash"

People who live toward the water

ECONOMIC DEVELOPMENT CORRIDOR

A MIXTURE OF TRIBALLY OWNED

& THIRD-PARTY INVESTMENTS

TRIBALLY OWNED ASSETS

VS THIRD-PARTY INVESTMENTS

Provides needed services -Saddleback

Tribal exclusivity – Casino

Land development for landowner benefits – Devco & Golf

Spur economic development generally – Salt River Fields

Employment opportunities for Community members

Community retains 100% of sales taxes for Tribally owned businesses vs only 1.65% for non-tribally owned

Property tax assessed on all commercial properties, however, only 115 commercial properties assessed

Community member residential properties are exempt from property tax

The tax base on the reservation is substantially smaller than other

municipalities, yet essential public safety, corrections and

educational services are still necessary.

TRIBALLY-OWNED ASSETS

TRIBALLY-OWNED ASSETS

11,000 seating capacity

12 practice fields

Other events

Russo and Steele Auto Auction

Arizona Taco Festival

Street Eats Food Truck Festival

TRIBALLY-OWNED ASSETS

cement manufacturing

Salt River Sand & Rock

fly ash, pozzolan & aggregates

TRIBALLY-OWNED ASSETS

incumbent local exchange carrier

hosted voice over internet (VoIP)

call center solutions

THIRD PARTY INVESTMENTS

THIRD PARTY INVESTMENTS

UNIQUE ASPECTS OF DOING

BUSINESS ON TRIBAL LAND

Sovereign Immunity

Non-public financials

Land ownership

LAND OWNERSHIP

Retained in trust

• illiquid, limits the ability to monetize economic benefits immediately

Allotted Lands

• fractional ownership

• BIA involvement – commercial land leases on allotted land must be approved by the BIA, can frustrate the ability to monetize economic benefit

Tribal Land

• owned by the Community as a whole

FINANCIAL SAFETY NET

future of gaming is dependent on

compact agreement with State –

political process

sovereign wealth fund – how

much is enough?

DIVERSIFICATION

Community’s businesses are

generally reservation specific

and highly exposed to real

estate economics

MUNICIPAL GOVERNMENT OPERATING BUDGET

Cost of public safety

and infrastructure

needs are likely to

increase faster than

revenues.

Tribal government

provides a higher

level of service than

typical municipalities.

POLITICAL ENVIRONMENT Gaming exclusivity to tribes in

Arizona is critical to the Community

to maintain services because the

only other material sources of

funding are federal grants and

state education grants.

Financial success dependent upon

progressive Council members

supporting economic development

and fiscally conservative

expenditures.

5 of 9 Council seats up for election

EARNING A MARKET RETURN

difficult to benchmark performance

providing market incentives for

management

shareholders represented by elected officials

non-financial considerations, eg,

employment opportunities

ATTRACTING & RETAINING FINANCIAL

PROFESSIONALS

government job without the

perks of public companies

employees have to want to be

here not just for the financial

rewards

Questions / Comments

THANK YOU FOR

JOINING US TODAY