Payson Town Council Work Study Meeting - FY27 Budget Discussion - May 5, 2026
Payson Town Council Work Study Meeting - Fiscal Year 2027 Draft Budget Discussion
The meeting, held on May 5, 2026, from 8:30 a.m. to 12:05 p.m. at Messinger Mortuaries, was a work study session focused on the proposed Fiscal Year 2027 budget. Town Manager Darren Coldwell and Finance Director Dave Christian presented a balanced budget with an estimated surplus of approximately $120,000 and a proposed 2.8% cost-of-living adjustment for employees. Council reviewed departmental budgets, discussed operational enhancements and capital priorities, and provided direction to staff on next steps. No formal actions were taken.
Consent Calendar
- No routine approvals or unanimous actions were considered; this was a work study session with no formal votes.
Public Comments & Testimony
- No public comment was accepted as work study meetings are intended for Council discussion only.
Discussion Items
- Budget Overview: Coldwell noted the budget was built collaboratively and reflects the Town's priorities. Revenue challenges were noted (e.g., state collections down ~$500,000). A 2.8% cost-of-living adjustment was included for all employees, with health insurance costs absorbed by the Town.
- Personnel and Compensation: Several vacant positions were frozen, no new positions added. Overtime reduced through scheduling changes. The Town shifted from merit-based increases to a straight COLA. A $100,000 savings from position vacancies was partly used for a $12,000 promotion. Employee benefits saw a 3.4% medical increase, 4% dental, 2% vision, but total benefit budget reduced by $130,000 due to census changes.
- Department Reviews: Council discussed budgets for Town Manager, Central Services, Town Attorney, Human Resources, Town Clerk, Economic Development, Information Technology, Community Development, Engineering, Public Transit, Grants, Visitor Center, Streets, Facilities Maintenance, Airport, Parks/Recreation/Tourism, Police, and Fire. Key topics included: in-house vs contracted services (e.g., engineering, facilities, marketing); road maintenance (Pavement Condition Index average of 37 out of 100); PFAS treatment costs estimated at $50 million; water meter replacement project identifying ~200 leaks; public transit transition to an Intergovernmental Transit Authority; visitor center AOT designation and parking constraints; airport hangar development proposals; park and trail projects; and the pool RFP.
- Capital Improvements: The capital budget totals approximately $8 million, including $750,000 for residential slurry seals (5–6 miles), ADA improvements, trailheads, vehicle replacement ($200,000/year), and ongoing projects. PFAS mitigation is a primary capital focus, with a $5 million WIFA grant expected. The event center (rodeo grounds) improvements are in early design phases, with an estimated $1.8–$3.5 million for vertical construction; $250,000 allocated for engineering and planning.
- PSPRS Debt: Council discussed options to refinance the Public Safety Personnel Retirement System debt. A 30-year extension could reduce annual payments but increase total interest. Private financing at ~7.2% was compared to a ~6% bond.
- Pool Project: The RFP for the pool project will be published in the paper on May 8, 2026. No funding is currently budgeted; Council expressed interest in exploring nonprofit partnerships and potential voter-approved funding.
Key Outcomes
- Council directed staff to continue pursuing grant opportunities and partnerships, especially for PFAS, roads, and transportation.
- Continue evaluating roadway maintenance and capital improvement priorities, including developing a multi-year plan.
- Proceed with publication of the Request for Proposals for the pool project (expected May 8, 2026).
- Continue discussions regarding the establishment of the Intergovernmental Transit Authority for public transit operations.
- Continue evaluating the Arizona Alpine Trail project; Council indicated willingness to consider a contribution of ~$16,000 with an invoice or service agreement.
- Provide additional information comparing costs of contracted versus in-house engineering services.
- Explore bonding options to refinance the PSPRS debt, with a presentation to Council expected at a future meeting.
- Council concurred with rescheduling the Special Council Meeting for the Tentative Budget from May 13 to May 20, 2026, at 5:00 p.m. at Town Hall.
- Staff will investigate possible budget adjustments to increase funding for event center improvements (e.g., permanent restrooms) within the capital budget.
Meeting Transcript
The mic on there you go. Sorry, go ahead now. I'm trying to do that right now. That's actually a pretty nice spot for it. You know, it's because we don't have meeting space. Oh, it feels great. One two. We're still testing. Go ahead and say that just show you. Yes, I heard all of them. Can you talk? I can talk, but you hear me one way or the other. Okay. So I'm necessary today, unless you guys need to hear somebody. And review of the proposed uh budget for July 2026 to June 2027. Okay. Um so I would like to read a statement if I could before we start. That's up to him. Yes, they will go ahead, Charlie. I would do it anyway. So this is a statement from Jefferson, Thomas Jefferson back in 1799. He was addressing the government, federal government at the time, but I think what Jefferson had to say is applicable for all governments. Jefferson summed up his budget policy in a letter to Aldrich Jerry in 1799 bright. I am for a government ridorously true and simple, applying all the possible savings of the public revenue to the discharge of the national debt and not for multiplication of officers and salaries merely to make partisans and for increasing by every device for public debt on the principle of its being a public blessing. The budget balances with 120,000 with those suggested increase. The fire department increased the budget this year by about 100,000. And the PD decreased the budget by about 400,000. So they are they're really trying, they're making big steps. They sometimes get beat up because they're the biggest boys. This year you're going to see the library and the airport are two of the funds that we support that are very important. The general fund only contributed to the library this year, 250,000. And to the airport 300,000. So pretty darn good. The PERF fund was basically 100% exhausted in the 26th budget. Two big projects, the airport road was a multi-million dollar project, as well as the B line project. So as far as funds encumbered, which means funds that are committed already. So we're estimating about 3.3 million dollars in a curve this year. So just to let you know there's not going to be those pretty big huge projects. The reason for that is because now we can use the department. Otherwise, in streets, the only thing if they're 100% hurt, they can't do anything but streets. So they couldn't help with parades. They couldn't help with four three slides set up. They couldn't have out at the arena. So with us paying 30% of the salaries now, they've become way more valuable to us. Um, especially with all their equipment. Um it'll really be helpful. So look for them out and about. Um a couple of things that we did not budget for that. You're gonna have to decide to do. We didn't budget for the 19 plus million on PSPRS.
openpublica.com