Payson council approves budget amendment, advances library parking-lot funding and delays Main Street extension pending additional grants

The Payson City Council on Feb. 5 approved a consolidated amendment to the fiscal year 2024–25 budget that authorizes multiple line-item adjustments and directs immediate funding for the library parking lot while postponing the allocation for extending Main Street from Third to Fifth South until the council explores additional funding sources.

The amendment, presented by city staffer Kathy, bundled roughly two dozen adjustments into a single package. Staff said the changes include an existing $3,500,000 placeholder that can be transferred to the city’s capital fund when excess fund balance permits; grant-funded spending for a vaulted toilet at Spring Lake that has already been built; rollover and replacement purchases for park security cameras; and financing shifts so grounds equipment (two zero-turn mowers) will be paid from the city’s revolving loan fund rather than ongoing grounds operating budgets.

Council members heard that several prior grant awards will contribute to the Downtown/Main Street project. Staff reported $8,000,000 in grants received for the Downtown 300 South–500 South project, but also said the project’s full cost and some remaining work required an additional draw from the general fund and fund balance. The council was told the project has incurred roughly $8,125,000 in expenditures to date and that a separately bid library parking-lot rebuild requires substantial underground repairs — including repiping where Petite Creek, sewer lines and a water line overlap — which drove a contractor estimate of about $1,500,000 for the parking lot portion.

Other items in the consolidated amendment included: additional lobbyist contract payments that needed budget coverage; Scottish Festival and golf operation rollovers; a police department mental-health grant appropriation; catch-up rollovers for a slip‑line sewer project and an air-handler purchase; repayment/payment for a previously-ordered 10-wheel dump truck; new GPS software for fleet vehicles; payment for a recently delivered fire truck; fire-department timekeeping software; purchase and partial revolving-loan funding of electric city vehicles; and a strawberry water-users facility study.

Council discussion focused on whether to approve the whole package immediately or advance only the most time-sensitive pieces while seeking other revenue sources for the larger street project. Several council members urged staff to pursue federal, state and county funding and to consider timing and contractor availability. Staff and council agreed that the parking lot work should proceed to avoid further deterioration and to preserve a contractor bid; the council approved the amendment with the caveat that the Main Street Third-to-Fifth South allocation be tabled while staff seeks additional funding and returns to the council if needed.

The council’s action allows staff to proceed with contracting and payment for the library parking lot and other approved line items; the tabling of the main-street allocation preserves flexibility to add funding later if the city secures additional grants or other sources.

The amendment package was presented during a public hearing; no members of the public spoke before the council closed the hearing and moved to the motion. The council voted to approve the amendment as modified (advance parking-lot funding; table Third-to-Fifth South Main Street funds pending further funding).