Payson council approves tax rate increase to help pay for half of planned fire station

Payson City Council on Aug. 6 approved a proposed certified tax rate that would raise property taxes to help pay debt service on half the planned new fire station. The council voted to adopt a tax rate of 0.001299 — an increase the city said is 18.16% above the county auditor's certified rate. City staff estimated that at that rate a homeowner with a $447,000 residence would pay about $49.42 a year and a business taxed at 100% would pay about $89.84 annually. City finance director Kathy presented the tax notice and told the council the proposed increase is intended to fund debt service on one-half of an estimated $10,000,000 fire station; the city plans to use about half of that cost from capital fund balance and bond the remainder. The issue drew public comment both for and against. Easton Brady, a resident, said the increase was small compared with other household costs and urged the council to support public safety: "I think for me, it's around, like, $3.80 or $4 a month," Brady said, and called the project "for public safety." Chris Kilmer, another resident, argued the city should cut spending rather than raise property taxes and said the city's revenue has risen substantially in recent years: "We do not have a revenue problem. We're here today to get more revenue. We're trying to fix the wrong problem. The problem is spending," Kilmer said. Council members debated funding options during the public hearing. Several members said sales tax revenue is not yet sufficient in Payson to fund a project of this size without bonding, and that property-tax-backed bonding yields lower interest rates and therefore lower long-term costs to the city than relying on volatile sales tax alone. Council members also said the city has been saving for the project and emphasized that the requested tax dollars would be restricted to debt service for public safety facilities rather than discretionary amenities. After public comment the council voted to adopt the truth-in-taxation notice and the certified tax rate as presented. The roll-call vote recorded support from Councilmembers Hyatt, Moss, Rowley, Hulett and Christensen; the motion carried. The vote implements the notice required under Utah's truth-in-taxation process and sets the city's portion of property taxes at the adopted rate for the coming fiscal year. The council did not adopt final bond documents or a construction contract at the meeting; staff said future meetings will include design and financing details. Details and next steps: city staff said design work for the new station has been budgeted and the council will return to financing decisions as design and bids are finalized. Staff also presented a pie chart showing that Payson's municipal share accounts for roughly 13% of total local property tax assessments, while the Nebo (noted as "Neibold" in some handouts) School District accounts for the largest share, about 73%.