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Payson council directs majority of 0.88% revenue to PSPRS unfunded liability in 5–1 vote
Summary
The council voted 5–1 to formalize allocations for the town—s 0.88% revenue measure, directing a proposed 60% of those funds to pay down the PSPRS unfunded liability and establishing sunset and allocation language to be tracked by staff.
The Payson Town Council voted 5–1 to approve a resolution amending the distribution of the town—s 0.88% sales tax allocation to direct a majority share toward the town—s Public Safety Personnel Retirement System (PSPRS) unfunded liability.
Under the approved language discussed at the meeting, council debated directing 60% of the 0.88% revenues to additional payments toward the PSPRS unfunded liability, 20% to maintenance of existing facilities and 20% to road improvements. Finance staff reported the town has previously budgeted and transferred funds to capital projects and that roughly $3.8 million is available to transfer to the Capital Projects Fund.
Council members discussed whether to set a sunset date for the allocation and whether the town should consider other options, such as bonding, to address pension debt. The finance director said PSPRS has the town scheduled to pay off its unfunded liability by 2036 under current assumptions, but that accelerated payments could reduce long‑term costs.
After discussion, the council moved and approved resolution 34 64 (referred to in the meeting as 3464) by a 5–1 recorded vote. Supporters said the targeted allocation keeps the town focused on a major long‑term liability; opponents warned against restricting future budgets and urged budget‑level consideration.
The resolution passed on Dec. 10 and directs staff to track allocations and return reports to council during routine budget updates.
Vote: resolution approved 5 in favor, 1 opposed.
