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Payson council directs staff to exclude grant‑contingent projects from Exhibit B of budget resolution
Summary
After hours-long budget and procurement discussion, the council instructed staff to present Exhibit B with clear language that pre‑approved items are part of the budget and to exclude projects contingent on grant awards; the direction passed 6–1.
The Payson Common Council on April 23 returned to an unfinished procurement-policy item and gave staff formal direction to change how Exhibit B of the town’s annual budget resolution is prepared. The council directed staff not to include projects that are contingent on grant awards on Exhibit B and to include clear language showing which items on Exhibit B are pre‑approved by the budget.
The discussion followed concerns raised by council members that items entered as placeholders in the annual budget — often to show the town’s ability to match or spend grant dollars if awarded — could be treated as automatically approved for later procurement without returning to council for final review of design, specifications and current costs. Council Member Jim Ferris had asked the issue be revisited, saying budget placeholders could tie the hands of future councils and that capital projects that change materially between budget adoption and procurement should be brought back for final approval.
Finance Director Dana Ohanzian and staff explained the current process: project descriptions and cost estimates are discussed during budget development and again at tentative and final budget hearings; Exhibit B is prepared as a list of purchases over the town manager’s signing authority that council approves with the final budget. Staff offered to provide an earlier draft of Exhibit B with tentative budget materials so councilmembers could flag items they wanted removed from the pre‑approved list.
After discussion, council voted to direct staff to: (1) not include on Exhibit B those projects that are contingent on grant awards; and (2) provide clear language on Exhibit B that items listed are pre‑approved with the budget. The motion passed 6 to 1.
Council and staff said the change does not prevent council from later removing items from Exhibit B; staff said they will bring a draft Exhibit B with the tentative budget to give council more time to review and identify items that should require a separate follow-up approval.
The council’s direction is intended to ensure large capital projects with only budget placeholders, or projects that may change substantially between budget adoption and procurement, come back to council with full details before final commitment.
