Call this meeting of the common council, the town of Payson, special meeting.

I call us to order.

I'm sorry I forgot, but uh special meeting, May 28th, 2025.

Uh roll call.

Let the record reflect that all council members are present.

Okay.

Pledge of allegiance.

Why is it justice for all the meeting is to discuss the physical year 2025-2026 proposed tentative budget?

Uh discussion possible action regarding resolution number thirty-four fifty-one.

Captured as follows.

A resolution of the mayor and council of the town of Payson, Arizona, setting forth the tentative budget and establishing the expenditure limitation for the town of Payson for physical year 2025-2026.

Dana, would you give your presentation, please?

Thank you, Mayor, Council members.

This is the uh 2025, 26 tentative budget, which establishes the expenditure limitations for the town for next fiscal year.

Um currently the tender budget is currently balanced with a total of financial resources equaling expenditures of ninety-four seven uh ninety-four nine hundred and seven thousand nine hundred and twenty-four dollars.

Uh this here shows how that is broken up.

Um 59 million, basically sixty million dollars is revenues, uh 720,000 is property tax, and 34 million um is uh fund balance of all the various funds that are in the town budget, which equals again expenditures.

Um there's been some comments before regarding how how we get to that last year.

How do we get to 106?

This year, how do we get to 94 million?

This shows all the funds that are in the town's budget, and the total of all these funds is what comprises the uh annual budget, and most of these you'll recognize the general fund uh has a expenditure um amount this year, 44 million HERF.

There's 11 million water fund, bed tax fund, airport, library, event center, capital projects fund, uh the contingency fund, and that should actually be 250, not 350.

Um capital replacement and gifts and grants, and then there's a few other funds here that have special uses for them, uh not as well known as the other ones, they're minor funds, wild land and urban fund, the park and rec improvement fund, uh, the police department of justice fund, and then the two magistrate court funds.

Can I ask a quick question?

Sure.

Umriosity question.

Why do we include the water fund?

And since it's a separate fund.

Um it is a separate fund, it's an enterprise fund, but it counts toward the town's uh total budget for the year.

Yeah, but we can't we can't draw off of it.

Um no, and we can't draw off some of these other ones either.

Like the magic magistrate, those are for court costs and things like that.

Um it's a it's an enterprise fund.

Some of these other ones are special revenue funds, and they have restricted revenues, but they all count toward the town's total um fiscal fiscal expenditure limitation for the year.

The special revenue fund, what what makes that up now?

What what do you um it's a collection of funds?

Actually, the uh the bed tax and the HERF fund are all special revenue funds, the airport fund is a special revenue fund.

Those are funds where they have specific revenues that are restricted to a particular operation, like HERF monies can only be used for her street stuff.

The bed tax is restricted to the uh tourism um and bed tax uses.

Okay, I would the other thing I wanted to ask that 106,000 total of all funds.

Wouldn't all that be in our LGIP account?

Um no, not necessarily because we don't have during the year we're gonna collect revenues, and right now the LGIP just has what our cash balance is.

All of these funds are gonna collect money during the revenue during the year, okay.

And then a lot of that money is going to be spent current status.

Yes.

And so a lot of this money that the revenues that these these funds collect is going to be spent.

The stuff that isn't spent ends up in the LGIP.

Okay.

And so looking at the general fund, the general fund um it's its expenditure limit is 44 million dollars.

And that's the number that you'll see on this on the state schedules, the budget schedules.

If you look down the column for general fund, you will see uh the 44 million in revenues.

And part of the issues that is confusing is the state schedules, they don't match our accounting schedules, and so some of the things that are in the state's revenue don't end up in the some of the things that are in our our accounting uh schedules don't end up in the state budget schedules.

Um if you look at schedule C and for revenues under general fund, you'll see 38 million.

Um then because that doesn't include property tax, which is on schedule B, and it doesn't include transfers, which are on Schedule D, and the transfers are uh the transfer in are 540,000, um, and then the transfers out are 220,000.

Um, and then also to get to that 44 million, we're gonna use 6.4 million in fund balance, and that's not clearly stated on the schedules.

You have to look at the starting fund balance and then subtract it from the ending fund balance, and then you'll see that that's where that six six million is.

But if you total all those together, that's where you get the 44 million for the general fund on the schedule A.

Um, this is more what we're used to seeing because this is what our accounting system looks like.

Um, and here if you look at the 2526 uh revenues, it shows 39 uh 943.

Um now if you subtract out that 540,000 of transfer from the water fund and you take out property tax, it'll end up with the same number that's in the schedule C of the state budgets budget schedule.