OPENPUBLICA · PUBLIC MEETING RECORD
Record of Proceedings

Payson Town Council Work Study Meeting – January 7, 2025: Department Service Levels and Financial Overview

Town Council & Planning and Zoning — Tuesday, January 7, 2025
BodyPayson, Arizona
SessionTown Council & Planning and Zoning
DateTuesday, January 7, 2025
StatusFILED
Video Record
0:00 / 2:51:38

Transcript — Verbatim
0:34

They should be on now.

0:36

Are they on now?

0:37

They turned up.

0:39

No.

0:47

Maybe my they don't move.

0:50

These don't move.

0:53

They're locked.

0:54

Locked and loaded.

0:55

Is it better with my laptop down?

0:57

Oh, okay.

0:59

I guess if we if we if we lean in, you can hear better.

1:03

You can also move up.

1:08

No, I meant she could move up as well.

1:11

I can read like a hundred.

1:16

So now that we can hear, would you like to call a roll call, please, Michelle?

1:20

Yes, let the record show that all council members are present except for council members of talks and council members party.

1:26

Thank you.

1:37

And presentation by department directors regarding organizational service levers.

1:46

And uh Sheila's gonna start the presentation for us.

1:51

Thank you, Mr.

1:51

Mayor, Council.

1:53

Welcome to our um what we're calling work session number one for our upcoming budget season.

2:01

There's uh total of six of them already pre-scheduled for you the first Tuesday of every um month.

2:09

Today our goal is to talk just some uh basics on the organization, the um leadership in general, organization within each of the departments, the roles and responsibilities, what services those departments provide, um, how we measure performance, and then um backwards on the agenda, but towards the end, finance is gonna go last with their department presentation, so then Dana can jump right into um discussion on our financial uh components that you need to uh be familiar with in order to understand how the budget is structured.

2:50

So we'll talk about um the tools that we have at our disposal as staff to um prepare the financials for you.

3:01

We'll talk about um types of funds and the sources and uses.

3:05

We'll talk about uh the difference between our investment account and our um daily cash account, what we use to pay the bills, and then give you a look ahead at the budget process.

3:18

Just to give you a little the TVs, can the TVs be turned towards us?

3:27

A little bit.

3:31

We also have to same s on your side.

3:35

Oh, okay.

3:36

It's okay.

3:37

It's a learning process.

3:39

This is number one, Charlie.

3:40

I like that.

3:41

Okay.

3:42

Thank you.

3:44

Just to give you a little bit of a look ahead.

3:46

Our next work session is scheduled for February fourth already.

3:50

It'll be a continuation of today.

3:52

Um, we intend to cover the corporate strategic plan and the capital improvement program uh generally that uh have been adopted and discuss upcoming changes to those that the council would like to see in that meeting.

4:08

Any questions on that before we get started?

4:16

So this is a high level overview of town of Hasin in general, and um starts sort of like a tree.

4:24

So if you start on the left, that would be our treetopper, that is our citizens there on the left.

13:54

Contracts and other cities and towns for various services.

13:58

So it could be land use issues, it could be elections, it could be just different.

14:03

So we we actually serve pretty much all of the cities and towns in some capacity, either through the direct representation, through contracts for specific uh single issues, or um, as through the riskful the employment matters.

14:17

Um, so we have quite a lot of experience when it comes to municipal and local government generally.

14:23

Um, we obviously also serve as legal advisors to municipal personnel boards, local boards to the Arizona public safety personnel retirement system.

14:34

Um, and obviously, there are so many issues that come up for cities and towns as Sheila mentioned, with like just even legislation that comes down, obviously, implementing that after each session takes a great deal of work to see what's going to impact the town and how to incorporate and properly execute those laws.

15:00

And as I mentioned, we directly represent 22 Arizona municipalities directly.

15:07

Just current staffing, we have just a flat rate that we have for most of our cities and towns, and we try to do that because of the budget process, right?

15:16

We want everyone to be able to budget ahead of time, and so an hourly rate doesn't work well for cities and towns.

15:23

And so we try to design it based on a flat schedule.

15:26

So you know exactly what you're gonna have to be paying for that year.

15:30

Um so the operating budget is listed here with the flat rate of 480,250.

15:35

Um again, staffing.

15:37

So you have um I am your primary attorney designated for the town.

15:42

Uh, we also have a prosecutor um at our firm that handles the town's prosecution.

15:47

We also have additional, obviously, uh partners and up council and associates at the firm uh that have different expertise um in various areas.

Discussion Breakdown — Share of Meeting
Budget Equity Analysis██████████10%
Engineering And Infrastructure████████8%
Strategic Planning███████7%
Public Safety██████6%
Water And Wastewater Management█████5%
Fire Prevention█████5%
Legal Services Cost Analysis████4%
Technology and Innovation████4%
Library Management████4%
Summary of Proceedings

Payson Town Council Work Study Meeting – January 7, 2025

The meeting was the first of six scheduled budget work sessions for fiscal year 2025-2026. It ran from 3:00 p.m. to approximately 5:51 p.m. in the Town Hall Chambers. All seven council members were present (Council Member Tubbs arrived at 3:02 p.m., Council Member Flaherty at 3:19 p.m.). Acting Town Manager Sheila DeSchaaf opened by outlining the budget process and the agenda order (department presentations first, then finance). No public comment was taken, as work studies are for discussion only. The meeting also experienced a Zoom audio outage; the meeting was recorded and later made available online.

Discussion Items

  • Department Service Level Presentations: Each department director or lead presented their organizational structure, budget, staffing, key responsibilities, capital improvement projects (CIP), and 2024 highlights. Notable points included:

    • Water Department (Tanner Henry): Operating budget $10M, CIP $18M, 23 FTEs. System serves ~8,000 residential and 689 commercial customers, consuming about 1.6 million gallons/day. Cost to produce 1,000 gallons: $20.30. Water rates fully support the enterprise fund; no tax funding. Pipes range from 75 years old to new; recommended replacement of 3.3 miles/year ($8M/year). Current CIP includes Hillcrest storage tank, AMI meter replacement (4,000 of 5,300 meters replaced, $4M project with 3:1 WIFA grant), PFAS treatment studies. Council Member Bell asked about pipe age and replacement timeline.
    • Engineering Division (Larry Halberstadt): 5 FTE budgeted, 3 filled. Uses on-call contractors for overload; task orders are zero-dollar until executed. Council Member Ferris asked about percent outsourced; Halberstadt said he would return with specific numbers. Council Member Bell questioned the impact of smart growth/sustainability language in the General Plan; Mayor Otto steered discussion back, noting it strayed from the agenda. Christine Smith (Deputy Town Manager) clarified sustainability for public works means planning for future infrastructure needs.
    • Streets & Fleet (Andrew Jackson): Annual budget ~$2.5M from HURF (gas tax, etc.). Maintains 11 miles of residential roads; ADOT maintains highways 87 and 260. Town has agreement to maintain sidewalks and landscaping along state highways. Private streets are not maintained.
    • Airport (Dennis Dueker): Operating budget $764,568 (includes CIP). 2022 flight operations 34,250, estimated 39,300 by 2027. 86 based aircraft. Runway overlay project (March 2025) funded 90% by ADOT. Airport supports wildland fire services.
    • Facilities Maintenance (Allen Rislund): First year of division. Budget not specified. Completed roof replacement, HVAC upgrades, fire extinguisher program. Council Member Tubbs asked about HVAC comfort issues; Rislund noted original installation had gas hookup errors and thermostats are being adjusted.
    • Community Development (Doni Wilbanks): Budget ~$2.6M, 14 FTE, 7 PT, 2 variable. Four divisions: Building Services (2018 IRC/IBC), Planning & Zoning, Economic Development/Tourism, Transit (B-Line bus). 800+ permits/year, 200 code enforcement cases/year. General plan update completed; CityWorks permitting software implemented for residential.
    • Parks & Recreation (Steve Richardson): Budget $3.1M, CIP $3.5M, 17 FTE. Highlights: 4th of July attendance >20,000, youth sports participation up 8.32%, summer camp up 32%, facility rental hours up 66%. Ice rink operated five weeks. Event Center lighting upgraded to LED. Mayor Otto asked about Hashknife Pony Express use of corrals during a Forest Service event; Richardson confirmed they are not using the arena/stalls, so riders can still use them.
    • Police Department (Cmdr. Josh Haines): Budget $11.4M, CIP $848,000, 24 civilian employees (16 dispatchers), 2 PT, 2 variable. Vehicle replacement: 4 Tahoes and 1 Colorado purchased; lead time 9-18 months for outfitting. Chief Staub noted it takes longer to get a vehicle than to train a lateral officer. Council Member Ferris questioned leasing vs. purchasing; Haines explained that outfitting costs ($43k-$52k) and downfitting reduce leasing benefits. Vehicle lifespan 5-6 years due to take-home program. Evidence facility CIP to be discussed later.
    • Fire Department (Chief David Staub): Budget $9.6M, 38 FTE. All-hazard response, paramedic first response (no ambulance transport). Covers multiple districts via contract. Ladder truck lead time still 44 months; staff actively seeking alternatives. Mayor Otto asked about ladder truck lead time; Staub confirmed 44 months and said current truck is still worth the wait.
    • Information Technology (Jeff Benedict): Budget ~$2M (general + public safety). 4 positions, 1 vacant. Completed network modernization, implemented new ERP (Oracle NetSuite), helped other departments with camera system, EOC, library AV. Handled 1,599 help desk tickets in 2024. Council Member Bell asked about ERP system; Benedict explained it's the new finance software. Council Member Ferris questioned necessity of recent upgrades (e.g., $50k+ for Transparency Center); Benedict said staff is evaluating other platforms.
    • Human Resources (Lynn ODonnell): Budget $550k, 3 FTE. Manages payroll for 200+ employees, compensation surveys, benefits (two EAPs including public safety-specific), wellness program, employee engagement. Upcoming: new performance management system, enhanced recognition program.
    • Library (Emily Linkey): Budget $743k ($365k from general fund, rest from county tax and Friends). Open 50 hours/week, 6 days. 77,764 visits, 89,534 physical circ, 14,396 e-circ, 482 programs (9,072 attendance). 912 new cards. Friends fund books/programs. Council Member Bell asked about school collaboration; Linkey said they offer databases, work one-on-one with teachers, and have repeatedly offered partnership but schools have not taken up.
    • Finance (Dana Ohanesian): Budget $870k, 7 FTE. Responsibilities include budget compilation, accounting, procurement, audit coordination. Currently implementing new ERP (Oracle NetSuite) expected by July 2025.

  • Financial Overview (Dana Ohanesian): The town has two primary accounts: Chase Bank (checking) and Local Government Investment Pool (LGIP, savings) managed by State Treasurer, yielding ~4.6% interest. Three major funds: General Fund, HURF (street), Water/Enterprise. Non-major funds: Bed Tax, Airport, Library, Capital Projects, Capital Replacement, Contingency. FY2024-25 total budget: $106,058,016. Property tax levy: 0.2992 per $100 assessed value. Town operates under Home Rule (voted in 2022, next vote 2026). Total projected revenue for all funds: $69,218,303 (including $6.5M bond revenue no longer applicable). General fund revenue projected at $38.7M. Long-term liabilities: leases $2.2M, water loans (WIFA) $28.8M, PSPRS unfunded liability $19.8M, OPEB $18.7M, compensated absences ~$10M – total $80.2M. Council Member Bell asked if LGIP information could be added to Transparency Center website; Ohanesian said he'd work with IT. Council Member Bell also questioned the percentage applied to PSPRS from the 0.88% sales tax; DeSchaaf clarified that a portion always goes to current employees, and the policy pays an extra $500k-$600k/year to reduce unfunded liability. Ohanesian explained that police vacancies negatively impact unfunded liability because the higher contribution rate for unfunded portion is not paid on vacant positions.

Key Outcomes

  • No formal votes or actions taken (work study session only).
  • Council Consensus: Requested additional deep-dive presentations on two topics:
    1. Local Government Investment Pool (LGIP) – to understand investment strategy, interest returns, and account structure.
    2. Public Safety Personnel Retirement System (PSPRS) Unfunded Liability – to understand the funding policy, why the liability persists, and the impact of vacancies.
  • Staff will arrange presentations from LGIP officials and PSPRS representatives for a future work session or regular meeting.
  • The Transparency Center module costing $29,000 (from ClearGov) will be reviewed to potentially remove an underused module, reducing costs.
  • The next budget work session is scheduled for February 4, 2025, covering the Corporate Strategic Plan and Capital Improvement Program.
  • All department presentations and the financial overview will be used to inform the upcoming budget process, with a tentative schedule: adopt fee schedule in April, tentative budget in May, final budget in June/July 2025.

Meeting Transcript

They should be on now. Are they on now? They turned up. No. Maybe my they don't move. These don't move. They're locked. Locked and loaded. Is it better with my laptop down? Oh, okay. I guess if we if we if we lean in, you can hear better. You can also move up. No, I meant she could move up as well. I can read like a hundred. So now that we can hear, would you like to call a roll call, please, Michelle? Yes, let the record show that all council members are present except for council members of talks and council members party. Thank you. And presentation by department directors regarding organizational service levers. And uh Sheila's gonna start the presentation for us. Thank you, Mr. Mayor, Council. Welcome to our um what we're calling work session number one for our upcoming budget season. There's uh total of six of them already pre-scheduled for you the first Tuesday of every um month. Today our goal is to talk just some uh basics on the organization, the um leadership in general, organization within each of the departments, the roles and responsibilities, what services those departments provide, um, how we measure performance, and then um backwards on the agenda, but towards the end, finance is gonna go last with their department presentation, so then Dana can jump right into um discussion on our financial uh components that you need to uh be familiar with in order to understand how the budget is structured. So we'll talk about um the tools that we have at our disposal as staff to um prepare the financials for you. We'll talk about um types of funds and the sources and uses. We'll talk about uh the difference between our investment account and our um daily cash account, what we use to pay the bills, and then give you a look ahead at the budget process. Just to give you a little the TVs, can the TVs be turned towards us? A little bit. We also have to same s on your side. Oh, okay. It's okay. It's a learning process. This is number one, Charlie. I like that. Okay. Thank you. Just to give you a little bit of a look ahead. Our next work session is scheduled for February fourth already. It'll be a continuation of today. Um, we intend to cover the corporate strategic plan and the capital improvement program uh generally that uh have been adopted and discuss upcoming changes to those that the council would like to see in that meeting. Any questions on that before we get started? So this is a high level overview of town of Hasin in general, and um starts sort of like a tree. So if you start on the left, that would be our treetopper, that is our citizens there on the left. Contracts and other cities and towns for various services. So it could be land use issues, it could be elections, it could be just different. So we we actually serve pretty much all of the cities and towns in some capacity, either through the direct representation, through contracts for specific uh single issues, or um, as through the riskful the employment matters. Um, so we have quite a lot of experience when it comes to municipal and local government generally. Um, we obviously also serve as legal advisors to municipal personnel boards, local boards to the Arizona public safety personnel retirement system. Um, and obviously, there are so many issues that come up for cities and towns as Sheila mentioned, with like just even legislation that comes down, obviously, implementing that after each session takes a great deal of work to see what's going to impact the town and how to incorporate and properly execute those laws.

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