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Payson Council adopts $126.6 million budget, holds two items for further approval
Summary
Payson City Council approved the fiscal year 2026'7 budget totaling about $126.6 million but attached conditions that $700,000 for an HVAC upgrade and an $80,000 motocross study cannot be spent until the council approves them in a later action. The budget includes water, sewer and electric capital projects and no increase to the city's portion of property taxes.
Payson City Council approved the fiscal year 2026'7 budget after public hearings and discussion, adopting a $126,573,786 spending plan while restricting two line items from immediate expenditure. The council voted to include a $700,000 allocation intended for HVAC work at city facilities and an $80,000 placeholder for a motocross study, but the motion specified that those amounts "cannot be spent until further review and approval by staff and city council." (Council motion to adopt the budget with conditions, SEG 2558'2568; vote carried, SEG 2590'2591).
City finance staff summarized major fund highlights: a $70 million sewer upgrade that staff say was procured on-budget, an $8.75 million water fund, an electric fund with large capital items, and targeted reductions or eliminations of internal transfers to reduce pressure on the general fund. Kathy, the finance lead, presented the certified tax rate and stressed that Payson City is not increasing its portion of property taxes this year ("Payson City is not raising, their portion of property taxes," SEG 1196'1198). During the hearing residents asked substantive questions about sewer costs, interlocal agreements with nearby towns and lead/copper monitoring; public works staff and the finance director responded with project details and next steps (SEG 1724'1811, SEG 1751'1804, SEG 1905'1922).
Council members debated several budget decisions including road overlays in an RDA business park, funding for park and playground improvements, and how to manage enterprise fund transfers. Multiple council members supported a conservative approach to pay increases and personnel additions while also emphasizing the need to preserve capital funds for projects such as a future fire station and utility infrastructure. The council adopted the budget by recorded vote with the two specified holds; staff noted the items could be brought back as budget amendments once additional bids or grant information are available (motion and terms: SEG 2558'2571; adoption vote: SEG 2590'2591).
