Payson Town Council Special Meeting on CDBG Grant and FY23-24 Budget - September 3, 2024
Payson Town Council Special Meeting – September 3, 2024
The Payson Town Council held a special meeting on September 3, 2024, at 3:02 p.m. in the Town Hall Council Chambers. The meeting focused on a public hearing for the FY24-25 Community Development Block Grant (CDBG) and approval of the FY23-24 budget final report with necessary fund transfers. All six present council members voted unanimously on all actions. Council Member Jolynn Schinstock was absent.
Public Comments & Testimony
- Charlie Bell, a Payson resident, questioned the partnership arrangement with Star Valley, asking why Payson, as the larger town, could not receive two years of funding to Star Valley's one. Angela Gotto of Central Arizona Governments (CAG) explained that CDBG allocations are equal per municipality per year, and the partnering allows each to receive double the funds every other year for larger projects.
Discussion Items
- CDBG Public Hearing & Resolutions 3410 and 3411
- Community Development Director Doni Wilbanks and CAG Coordinator Angela Gotto presented. Payson is expected to receive $169,215 in FY24-25 CDBG funds for ADA improvements on Main Street, addressing deficiencies identified in the 2018 ADA Self-Evaluation and Transition Plan. The project includes driveway modifications, crosswalks, and improvements at Fire Station 11. Only one project can be selected per application; the park improvements proposed in the August 5 public hearing were set aside in favor of Main Street.
- Resolution 3410 approves an intergovernmental agreement with Star Valley to alternate CDBG applications. Resolution 3411 authorizes the submission of the CDBG application and certifies it meets community needs. Council Member Mona asked why Main Street was chosen over parks; staff responded that Main Street improvements align with the town’s investment and development incentives.
- FY23-24 Budget Final Report and Transfers (Item C)
- Finance Director Dana Ohanesian presented the year-end budget comparison. Key figures: General Fund revenues budgeted $30,139,635, actual $31,848,998 (due to higher sales tax and the new 1% sales tax). General Fund expenditures budgeted $29,933,709, actual $26,444,576 (savings in personnel). Highway User Revenue Fund (HURF) revenues budgeted $10,917,643, actual $9,091,866 (missed ADOT grant). HURF expenditures budgeted $15,868,083, actual $4,177,616 (delayed street projects). Water Enterprise Fund revenues budgeted $9,598,200, actual $11,035,785 (mid-year rate increase). Water expenditures budgeted $15,677,428, actual $10,566,086 (minimal catastrophic events). Total town-wide budget expenditures were $77,269,001, actual $47,736,435. Total fund balance at year-end: $60,351,257.
- Three funds had negative balances: Library Fund (-$102,000), Airport Fund (-$38,000), and Grant Capital Project Fund (-$294,000). Staff recommended transfers: $102,000 from General Fund contingency to Library, $38,000 from General Fund contingency to Airport, and $294,000 from Council Contingency to Grant Capital Project Fund. Council Member Tubbs asked about the Library transfer shortfall; Ohanesian noted it was likely an oversight from prior fiscal year. Council Member Flaherty clarified that restricted funds (e.g., water, HURF) cannot be reallocated to other projects.
Key Outcomes
- Resolution 3410 (IGA with Star Valley): Approved 6–0.
- Resolution 3411 (CDBG application authorization): Approved 6–0.
- FY23-24 Budget Final Report and Fund Transfers: Motion to accept the report and authorize the described transfers passed 6–0.
- The Procurement Policy Revisions (Item B) were deferred to the next regular council meeting.
The meeting adjourned at approximately 3:31 p.m.
Meeting Transcript
All right, welcome everybody like to call this afternoon's town of Paysan special meeting to order. Um, if we could all stand for the Pledge of Allegiance, Commander Haynes, could you please lead us in the fledged of the United States of America? And the Republicans, one nation under God, indivisible for liberty and justice for all. Thank you, sir. All right, Michelle. Could we please get a roll call? All right, thank you. Um first two items on the agenda public hearing regarding FY fiscal year twenty four twenty-five community development block grant CDBG. Uh number one, resolution number thirty-four ten approving an intergovernmental agreement with the town of Star Valley to establish a partnering arrangement for application for community development block grants. And item number two, uh, resolution number thirty-four eleven authorizing the submission of an application or applications for fiscal year twenty-four twenty-five state community development block grant funds. So this time open a public hearing and ask our community development director, Donnie Wilbanks, to present the CDBG application, please. Go. It's just words. Give you a quick background. CDBG is community development block grant. It is a federal uh non-competitive formula-based grant from the US Department of Housing and Urban Development. Um, the funds go through the Arizona Department of Housing, so the funding goes through that, which support from the Council of Governments, also known as COGS. Payson's COG is CAG, which is Central Arizona governments. Angela Gato. We'll give you a little brief uh uh overview of the public hearing process that's required. Thank you. Good afternoon, Mayor and member of the council's my name is Angela Gato. I am the administrative and special projects coordinator for CAG. The purpose of tonight's hearing is to select a project for the FY24 CDBG funding cycle. The town of Payson is expected to receive 169,215 in CDBG funds. We held the first public hearing on August 5th, and the following projects were proposed ADA Main Street improvements and ADA park improvements. Only projects identified in that public hearing can be discussed tonight. We cannot consider any additional projects at this time. I'd be happy to answer any questions if you have any. Otherwise, you're good to discuss your projects. I guess Johnny's gonna get them. Yes, thank you. Thank you. So the ADA, which is an American Disability Act, uh improvements on Main Street was the number one recommended project for this afternoon. Oh, sorry, bless you. That's true. Uh so this project addresses the ADA deficiencies that we have been identified in the 2018 2021 ADA self-evaluation and transition plan. Uh, this would be a continuation of council's long-term strategy for ADA improvements town wide. Um Arizona Department of Housing allows only the one project per application, um, which was mentioned in the first public hearing. Uh, the chosen for Main Street would be projects such as driveway modifications, crosswalks, and uh improvements at uh town facilities such as the fire station where you have parking lots or driveways that don't meet those requirements. Um, as I mentioned, we do partner with Star Valley. Um, in order to receive the entire 169,000, we alternate years allowing each uh municipality to have double the amount of money to do projects with also mentioned we have the related resolutions. Resolution 3411 is the resolution that allows us to choose the project as well as the application to move forward. Resolution 3410 is the IGA with Star Valley in order for us to do the partnership with the CDB allotment switching years. There will be a future contract with CAG for them to help administer the grant, and that money comes out of the grant 169,000 as well. The financial impact uh for the town would be 169,215 would be the grant funds we would receive. No cash match or leverages required by the town of CASEN. Uh, you will be voting tonight to approve an application as well as the project that is on that application. You will have a future agreement with the CAG, but you have the also the resolution for the Star Valley as well. This is a step towards moving towards enhancing ADA accessibility in PASIN as well as benefiting the rest of the community.
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