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Payson council workshop reviews balanced $37.7M budget, 2.8% pay proposal and PSPRS options
Summary
At a Payson council budget workshop, staff presented a proposed FY2026–27 budget described as balanced at $37.7 million, including a 2.8% personnel increase. Council members pressed staff on an unfunded PSPRS pension option and whether to fund a new municipal pool or bond for it.
Presenter outlined the proposed FY2026–27 budget, saying "the requested salary increase for this year is 2.8%" and that "the general fund this year came in at $37,700,000." The presentation framed the document as a balanced financial plan that includes operating needs, a small surplus and targeted capital savings.
The review concentrated on staff recommendations to shift compensation to a straight cost‑of‑living adjustment and to limit new positions. Staff said several personnel requests were denied and that four positions would remain vacant this year; "there's no new positions at all," a presenter said. Finance staff noted they had reorganized some costs so departmental budgets more accurately reflect the true operating cost of services.
Council members focused on several major funding decisions that remain open. Staff said the budget did not include an immediate funding plan for PSPRS pension liabilities and that the municipal pool project is not funded and would require borrowing if the council chooses to proceed: "We don't have money, 7,000,000, 6,000,000, whatever it might be to... do the pool," a presenter said. Staff presented refinancing and bond options for the PSPRS payment and described the cash‑flow tradeoffs of a one‑time payment versus longer‑term financing.
Other notable allocations called out during the workshop included $250,000 proposed to support the library and $300,000 for the airport from the general fund. Staff also described a new approach to capital—moving away from a large unfunded $65 million wish list toward incremental savings for equipment replacements and a limited set of priority projects.
The workshop closed with staff noting next steps: finalize operations numbers, return a refined capital plan and present any bond/refinance options for PSPRS. No formal vote was taken at the workshop; the council directed staff to return with more detail on PSPRS options and potential funding paths for the pool if the council wishes to prioritize it.
