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Payson Council adopts FY2026-27 budget, conditions $700K HVAC and $80K study on further review
Summary
Payson City Council approved the FY2026-27 budget but required additional review before spending $700,000 on an HVAC project and $80,000 on a motocross study; the vote to adopt the budget passed 4–1.
Payson City Council approved the FY2026-27 municipal budget on June 17, adopting the ordinance with conditions that two capital items return for further review before funds are spent.
Councilmember Ryan Rowley moved to adopt Ordinance 06-17-2026-C with the proviso that the proposed $700,000 HVAC project and an $80,000 motocross study receive further review and Council approval before expenditure; the motion, seconded by Councilmember Anne Moss, carried 4–1, with Councilmember Lacee Smith voting no. Finance Director Cathy Jensen had earlier reviewed enterprise transfers, indirect services, and other changes since the tentative budget. Rowley framed the vote in terms of prudence: “using resident funds prudently to reduce debt and interest obligations remains an important financial consideration,” and emphasized prioritizing reserve funds.
Public questions focused on the city’s sewer project costs and interlocal agreements. Resident Heidi Perry asked whether neighboring communities served by Payson are contributing to the sewer plant construction; Councilmember Bob Provstgaard and staff explained that interlocal agreements (for example with Elk Ridge) exist and that Elk Ridge pays under those agreements, while noting the original agreement’s cost allocations may need reevaluation. Public Works Director Travis Jockumsen clarified state and federal requirements for infrastructure and described which service-line replacements fall to the city versus homeowners.
Councilmembers debated removing a business park road overlay and discussed a possible slurry seal as a less-costly interim treatment. Staff said funds removed from the budget would go into fund balance and could be addressed later via budget amendment. The Council also approved FY2025-26 budget amendments earlier in the meeting to transfer utility funds to capital and to adjust allocations for items such as Communities That Care and festival-related revenues.
Next steps: staff will return with more detailed analyses for the HVAC project and the motocross study before the Council authorizes expenditures.
