Payson council adopts roughly $91.6 million 2025-26 budget after trimming four Exhibit B projects

The Payson Common Council adopted a final fiscal year 2025-26 budget on June 25, approving Resolution 3453 after a public hearing and an amendment that removed four projects from Exhibit B.

The council voted to approve Resolution 3453 adopting estimates of revenues and expenditures, with the document presented by Dana Hanesian, Finance Director, who said, "The 2025-26 final budget is currently balanced, it's 91,633,507." The resolution passed by voice vote 7-0.

The action followed an earlier amendment to Exhibit B, made before the final vote, in which the council removed four capital items: a $1,500,000 update/enhancement for the event center, a $1,000,000 pavement-preservation allocation, a $4,000,000 aging water-main replacement item and a $4,289,400 water-line replacement item. Councilmember Farris moved to remove the four items; the motion was seconded and passed 4-2 with Councilmember Charlie Bell recorded as abstaining.

Why it matters: the approved budget covers all town funds and establishes the spending framework for the coming fiscal year. Hanesian told the council the town-wide total shown in the schedules equals roughly $91.6 million and that the general fund portion is about $40,000,006.29. She described the final numbers as the result of several work sessions on the capital improvement program, personnel requests and other items.

Key details from the presentation and discussion: - Total: Dana Hanesian reported a townwide final budget figure at about $91,633,507 and repeatedly referenced a $91.6 million total in the slides and schedules. - General fund: presented as roughly $40,000,006.29 in available financing/expenditures; regular general fund revenues on Schedule C were shown as $38,675,086. - Water fund: shown with matching revenues and expenditures at about $29,200,000; Hanesian noted the water fund includes roughly $12,000,000 in water revenue and $17,000,000 in available fund balance. - HEERF (highway and related funds): presented at roughly $11,200,000 in matching revenue and expenditures; capital items in the HEERF schedule included pavement preservation ($1,000,000 in the discussion), the Longhorn Roundabout ($1,600,000), Bee Line bus route improvements ($5,200,000) and smaller projects. - PFAS settlement: the presentation included a $4,000,000 miscellaneous revenue line described as potential PFAS settlement money; Hanesian said the $4 million appears as miscellaneous revenue and would be available if the council decides to spend it. - Transfers and capital: Council was told the tentative budget of about $94 million was reduced to the final figure, in part because $1,480,000 was moved from the general fund to capital (aquatics construction drawings) as a transfer and transfers are not counted as expenditures in the state schedule; a $1,000,000 reduction in available fund balance and $860,000 in reduced personnel costs also contributed to the decrease. - Personnel and reserves: personnel costs were budgeted at about $24.7 million (a budget increase from prior years noted in the slides). The finance director said the town anticipates a reserve of about $12,300,000, of which roughly $10,080,000 is required as the town's reserve (leaving about $2,300,000 available as presented). - Water-specific items: the water enterprise budget reflects an automated meter-reading project (roughly $1.3 million in grant/reimbursement), a new billing clerk position, and recognition this fiscal year of depreciation as an accounting entry into a separate fund for capital replacement.

During public comment and council discussion, members pressed for clearer presentation formats and monthly financial reports. Councilmember Charlie Bell asked whether the newly hired town manager could review the budget and provide feedback; staff responded that the council sets the budget and future reductions could be made if necessary, but that the item to hire a town manager was on a subsequent agenda.

Quotes from the meeting: - Dana Hanesian, Finance Director: "The 2025-26 final budget is currently balanced, it's 91,633,507." - Councilmember Charlie Bell (on need for clearer financial statements): "It would be nice to boil everything down where you could see it and say, this is the amount of money that we have left."

What the council decided and next steps: the council adopted the final budget (Resolution 3453). Staff said monthly accounting reports will show transfers as expenditures in the town's internal reports and will provide monthly fund balances and information about restricted and unrestricted cash. Several capital projects that were removed from Exhibit B will be brought to council for further presentation before execution, per council direction.

Votes at a glance: - Amendment to remove four items from Exhibit B (event center $1,500,000; pavement preservation $1,000,000; aging water-main replacement $4,000,000; water line replacement $4,289,400): motion passed 4-2, with Councilmember Charlie Bell recorded as abstaining. - Resolution 3453 (adopt final budget and estimates of revenues and expenditures for fiscal year 2025-26): approved by voice vote, recorded as 7-0 in favor.

Ending: Staff said the budget schedules included in the packet are state-required formats and not formatted as conventional financial statements; they committed to providing monthly reports with clearer fund-balance and cash-restriction breakdowns during the fiscal year.