Council authorizes parameters for up to $5M sewer bond; one council member votes no

Payson City Council authorized a parameters resolution May 6 to allow issuance and sale of up to $5 million of sewer revenue bonds (Series 2026) to help complete the city’s sewer plant work. The resolution re‑authorizes previously approved capacity and resets the parameters because of the elapsed time since the original approval.

Kathy said the parameters request covered $5 million to complete the sewer plant and that the city had previously set a larger parameters resolution in 2022. Brian Baker, the city’s fiscal agent, gave council a market context for borrowing, calling current long‑term borrowing “volatile” and saying, “Four and a half percent is a proxy for right now.” The bond structure discussed was roughly a 21‑year amortization with estimated annual debt service near $385,000, depending on rates and market conditions.

Council discussion focused on timing and prudence: one council member (Council Provosgard) said he would vote no because he wanted additional questions answered before authorizing the sale. The resolution passed on roll call after discussion; staff said the annual debt service estimate is included in the current budget and that city staff will monitor coverage ratios and consider market timing when scheduling closing.