Payson Town Council Special Meeting: FY2026-2027 Tentative Budget Approval - May 20, 2026

The Payson Town Council held a special meeting on May 20, 2026, at 5:02 PM in the Town Hall Council Chambers. The sole purpose was to discuss and vote on Resolution No. 2026-024, setting the tentative budget and expenditure limitation for Fiscal Year 2026-2027. The meeting adjourned at approximately 5:38 PM. Council Member Dallin Haws was absent.

Discussion Items

• FY2026-2027 Tentative Budget (Resolution No. 2026-024): Town Manager Darren Coldwell presented the tentative budget totaling $106.6 million, an increase primarily attributed to budgeting for refinancing the Public Service Personnel Retirement System (PSPRS) obligations. He explained that even if the council later decided not to proceed with refinancing, the town must budget for anticipated revenues and expenditures. Adjustments could be made within the budget, but expenditures could not exceed the adopted amount. Discussion covered carryover funds, personnel costs, frozen positions, professional service contracts, staffing levels, and full-time equivalent (FTE) calculations. Staff noted personnel costs in the tentative budget were $1.8 million less than the prior fiscal year due to position eliminations, overtime savings, and operational adjustments. The council also discussed the importance of continuing to allocate funding toward capital improvement and infrastructure projects in future budget years.
• In-House Attorney Discussion: Council Member Charlie Bell raised the possibility of hiring an in-house attorney instead of using contracted legal services from Pierce Coleman. Town Manager Coldwell shared research on average salaries for in-house attorneys across comparable Arizona towns (midpoint $187,800) and estimated total costs for an in-house attorney plus staff would be similar to the current contracted cost of $367,000 per year for civil work, plus $180,000 for prosecution. He noted pros (familiarity with town operations, quicker contract turnaround) and cons (loss of access to a full legal team with specialized expertise, difficulty retaining a qualified attorney). Council Members Bell and Ferris requested to add this topic as a future agendized item.
• Personnel Costs and FTEs: Council Member Scott Nossek asked about payroll totals. Staff clarified that the total FTE count remained unchanged at 208 from FY26 to FY27 tentative budget. Average active full-time employee salary is $87,000, not $149,000 as reported in a radio clip. The $149,000 figure likely included total cost of employment (salary plus benefits, retirement contributions). Personnel costs decreased by $1.8 million due to savings in overtime, elimination of positions, and reduced part-time staffing.
• Capital Improvement Funding: Council Member Jim Ferris expressed disappointment that the budget allocated little for capital improvements, noting that the one-percent sales tax was originally intended for such projects. Town Manager Coldwell responded that the town has started setting aside approximately $1 million per year for facilities and $1 million for streets, and some funds were used for the event center. He encouraged the council to continue directing money toward capital projects.

Key Outcomes

• Motion and Vote: Vice Mayor Susan Tubbs moved to approve Resolution No. 2026-024, seconded by Council Member Brett Flaherty. The motion carried 6-0 (Mayor Stephen Otto, Vice Mayor Tubbs, Council Members Bell, Ferris, Flaherty, and Nossek in favor; Council Member Haws absent).
• Next Steps: The tentative budget is adopted as the maximum spending authority. Staff will provide council members with additional detailed information on carryovers and professional service contracts. Council Members Bell and Ferris will request a future agenda item to discuss the possibility of transitioning to an in-house attorney.