Payson Town Council Regular Meeting – June 25, 2025
Payson Town Council Regular Meeting – June 25, 2025
The Payson Town Council held a regular meeting on June 25, 2025. The meeting was called to order at 4:43 p.m. (delayed from the scheduled 4:00 p.m.) and adjourned at approximately 6:32 p.m. All seven council members were present. Key actions included approval of the consent agenda, adoption of the Fiscal Year 2025–2026 Pension Funding Policy (6-1), tabling a proposed 0.5% reduction in the Transaction Privilege Tax (TPT), and unanimous appointment of Darren Coldwell as Town Manager. Public comment addressed concerns about council decorum, the Juniper Pines development, ethics, and the status of the Town Manager hire.
Consent Calendar
- B.1 – Approved the minutes of the Special Council Meeting held on June 9, 2025.
- B.2 – Approved Resolution No. 3455 authorizing an Intergovernmental Agreement (IGA) with Gila County for 2025–2026 election services.
- Both items were approved unanimously (7-0) without discussion.
Public Comments & Testimony
- Margie Oldenkamp expressed offense at what she deemed unprofessional and discriminatory comments made during a prior council meeting regarding transgender individuals, urging the council to focus on town business rather than moral judgments.
- Deborah Santoro voiced concerns about the Juniper Pines development, citing a lack of public updates, rumors about changes to single-family lots, tree removal, and safety risks on Highway 260. She requested a future agenda item for a public update. Vice Mayor Tubbs and Council Members Ferris and Bell supported including an update on a future agenda.
- Mike Quinn raised ethical concerns regarding council members disparaging fellow members and their businesses on local radio, and urged professional decorum. He also clarified a personal definition of assault.
- Sharon Arnst inquired about the status of the incoming Town Manager’s hiring. Mayor Otto confirmed that a contract had been offered and accepted, but official appointment was pending council approval in executive session later that evening.
Discussion Items
- F.1 – Resolution No. 3454 (9-1-1 Grant Funds IGA) – Commander Haines presented a renewal IGA with Gila County for centralized management of 9-1-1 grant funds. The agreement includes automatic one-year renewals and updated insurance/indemnification language. The 9-1-1 center routes all emergency and non-emergency calls for police and fire. Approved 7-0.
- H.1 – Fiscal Year 2025–2026 Pension Funding Policy (PSPRS) – Finance Director Dana Ohanesian presented the annual policy required by A.R.S. § 38-863.01. The policy aims for 100% funded ratio by June 30, 2036, by paying the annual required contribution plus an additional $600,000 in FY 2025–2026. Unfunded liability is approximately $19 million ($11M police, $7.8M fire). Council discussed the effectiveness of the supplemental payment, noting that unfunded liability had increased despite previous payments due to salary increases and vacancies. Staff clarified that additional payments can be made at any time. Approved 6-1 (Council Member Ferris dissenting).
- H.2 – Proposed 0.5% TPT Tax Reduction – Council Member Bell proposed reducing the Town’s Transaction Privilege Tax by 0.5% (from the current 1% enacted for a failed bond), with a future 0.5% reduction next year. The reduction would reduce revenue by an estimated $2.7–$3 million. Council debated waiting for input from the incoming Town Manager and identifying specific budget cuts. A substitute motion to table the proposal until a financial plan and new manager input could be obtained passed 5-2 (Mayor Otto and Council Member Bell opposed). The underlying motion therefore failed.
- H.3 – Appointment of Town Manager – Council voted 7-0 to recess into executive session. After reconvening, they voted 7-0 to approve the employment agreement with Darren Coldwell as presented in executive session and appoint him Town Manager.
Key Outcomes
- Consent Agenda approved 7-0.
- Resolution 3454 (9-1-1 IGA) approved 7-0.
- FY 2025–2026 PSPRS Pension Funding Policy adopted 6-1 (Ferris opposed). The policy retains the $600,000 supplemental payment and 100% funded target by 2036.
- Motion to table TPT reduction carried 5-2; the reduction proposal will be revisited after a financial plan and input from the new Town Manager.
- Darren Coldwell appointed as Town Manager unanimously (7-0) effective upon contract approval.
Meeting Transcript
Start over here. I told Christine I said. I would probably just take a resignation. So it's not a writing. It won't let me sign in. I think you went to the case. So I had to get a little something in my tummy just so I can get sick. Come on, get sick. We need the entertainment. But you're sitting next to file on that. Yeah, but it won't show on the shirt. Are you one of those people that I've heard others? Oh hell no, I was an ambulance driver. No, I can't. That's mics are on yet. They could be like in the ready. This is the common council for the town of Payson. Regular meeting, June 25th, 2025. Scheduled for a four o'clock uh start. We're getting a little late. It's four thirty four. Uh call it's order. Invocation. Uh Pastor Rory Gruder's here. Oh Heavenly Father, we thank you for today. Today's the day that you've made. We rejoice. We're glad in it. We thank you, Father, for living the privilege of living in this great country of ours in this beautiful state of Arizona, and then this wonderful town of Payson. And Father, we thank you for all the police officers and the firemen and women and the ambulance crews and the hotshots that protect us and serve us. We pray your blessings and your protection upon them. We thank you for the people of Payson, Father, those present here today and those who live in this town. We pray your blessings upon each and every one of them as well, Lord. Father, we thank you for Mayor Stephen Otto, and we thank you for the town council. And Father, there's a lot of things that they have to decide. A lot of decisions they have to make in order to take care of this town. So Lord, we appeal to you. You know the right way to go, you know the right decisions to make and the right things to do. So we ask you, Father, to give the town council your wisdom, your discernment, your insight as they go over their agenda and as they make these decisions. We pray for uh clarity and for wisdom and for civility and peacefulness in the discussions, the deliberations, and the wisdom in the decisions, Lord Jesus. And Father, we thank you very much for this and for all the ways that you bless us in this town of Payson. And we pray this all in Jesus' name. Amen. Amen. Yes, yes. Megan, would you give the roll call, please? Let the record reflect that all council members are present. Item A is call to the public. Now is the time for call to the public, which allows citizens with an opportunity to speak on any issue within the legal authority and jurisdiction of the town of Payson. The town must abide by Arizona open meeting law, and this agendized item is the public's opportunity to be heard at this meeting.
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