Public Meetings - Payson, Arizona

The Payson (Arizona) Town Council held its regular meeting on Wednesday, June 24, 2026, beginning at approximately 4:00 p.m. in the Town Hall Council Chambers, 303 North Beeline Highway, Payson, Arizona, and adjourning at approximately 7:01 p.m. Mayor Stephen Otto presided, with Vice Mayor Susan 'Suzy' Tubbs and Council Members Charlie Bell, Jim Ferris, Brett Flaherty, Dallin Haws, and Scott Nossek present. Mayor Otto announced that several agenda items would be heard out of order to accommodate presenters: the PSPRS refinancing presentation (G.1) was heard first, followed by the legislative update (D.1), before the Council returned to the regular agenda order. Deputy Town Manager Sheila DeSchaaf, Town Attorney Christina Estes-Werther, Public Safety Director/Fire Chief David Staub, and Town Prosecutor James Pierce were among the staff present. Consent Calendar - Approved the meeting minutes from the Special Council Meeting and Regular Council Meeting of June 10, 2026, by unanimous 7-0 vote. Motion by Council Member Jim Ferris, seconded by Council Member Charlie Bell. Public Comments & Testimony - Darlene Younker Delage spoke about the property tax levy item (F.1), reading from the staff report that the recommended property tax rate of 0.2855 per $100 of assessed valuation would raise the 2026-27 levy by 5.1% to $757,050. She asked the Council to use clear, non-legalese language in explaining such items because residents may see their tax bills rise even when the rate is unchanged. - Jeff Robbins spoke in opposition to selling the town-owned Malibu property to an RV park, arguing the land is needed for future municipal growth, is identified in the General Plan as a future growth area, and that there is broad public opposition. He also cited a prior airport-area land sale as an example of short-sighted disposal of town property. - Tom Dunning, a 21-year Payson resident, also opposed selling the Malibu property, saying the centrally located land could be needed for town purposes later and would be difficult to replace. Ceremonial; Announcements; Presentations - Deputy Town Manager Sheila DeSchaaf presented Megan Miller with the Certified Municipal Clerk (CMC) designation from the International Institute of Municipal Clerks and introduced Payson High School junior Izabella Zimmerman, the Town Hall's summer intern through the Gila County Summer Youth Program. - DeSchaaf reminded the community about the upcoming Fourth of July celebration at Green Valley Park, beginning at noon with a hot dog eating contest, followed by family games and fireworks after dark. - Tom Dorn of Dorn Policy Group, the Town's lobbyist, gave a legislative update on Arizona's 57th Legislature. He described the Republican majorities (Senate 17-13; House 33-27), noted a $10 million sweep from the highway user revenue fund that he said disproportionately affects rural Arizona, and reported that the State Route 87/260 right-turn-at-McDonald's project was not funded in the budget and is delayed, although ADOT has reportedly placed it in the queue for 2028. He also mentioned PFAS water costs, the lack of an active management area designation for Payson, Colorado River litigation funding, the unfunded Arizona Trail Fund, failed rural housing tax credit legislation, and a proposed statewide restriction on local fees that was avoided. Public Hearing and Ordinance: Property Tax Levy (Ordinance No. 2026-107) - Finance Director David Christian presented Ordinance No. 2026-107, which levies the property tax for fiscal year ending June 30, 2027. He explained that the ordinance holds the tax rate constant at 0.2855 per $100 of assessed valuation; the resulting 5.1% increase in the levy to $757,050 is driven by assessed value changes and new construction determined at the county and state level, outside Council control. - Mayor Otto opened and closed the public hearing with no speakers during the hearing itself. - Council discussion included support for considering elimination of the Town's property tax in next year's budget. Some members expressed interest in continuing the previous trend of lowering the rate toward zero, while others noted the current increase is modest and the levy is a small share of Town revenue. - Motion by Council Member Jim Ferris, seconded by Council Member Charlie Bell, to approve Ordinance No. 2026-107. The ordinance passed 6-1, with Council Member Brett Flaherty voting no. Unfinished Business: PSPRS Debt Refinancing (G.1 and G.2) - Lance Holman of Holman Capital presented a direct-lending alternative to bond financing for the Town's Public Safety Personnel Retirement System (PSPRS) debt. He compared bond features (slightly lower interest rates but back-loaded principal, no-call periods, reserve funds, higher fees, and rate uncertainty until sale) with his firm's proposed direct loan: level principal-and-interest payments, no reserve fund, a flat $20,000 documentation fee, a rate locked for 30-45 days, and the ability to prepay on any scheduled payment date at approximately 105% of outstanding principal plus the payment then due. A council member characterized the 20-year direct loan rate as 7.59%; Holman said a 10-year term would be about 60 basis points lower, around 7%. Holman explained the rate is higher than an earlier 5.14% quote because the lender's interest income is not exempt from federal taxation. - Jack Leeper and Jeremy Newtson of Stifel Public Finance presented a public bond option. Stifel said it has completed roughly 36 pension bond transactions in Arizona totaling several billion dollars. Their estimated structure is an approximately $20.84 million taxable bond issue, with about $19.1 million to prepay PSPRS obligations, $238,000 for the OPEB liability, and a contingency reserve fund of about 5% of deal size held by the Town. The bonds would be fully repaid by 2037 (an approximately 11-year maturity matched to the Town's current PSPRS payment schedule), with an estimated all-in true interest cost of 5.26% based on current market conditions and an expected double-A-minus rating. Estimated total principal and interest is about $27.3 million, producing an estimated net benefit of about $2.6 million (about 12.49% of deal size). Fees are included in the 5.26% all-in cost; Stifel said it is paid only if bonds are sold, and the main cost if the Town backed out would be a rating agency fee of roughly $20,000-$30,000. Without an emergency clause, the authorizing resolution would take effect 30 days after adoption, and one council member noted a possible August 12 date. - Following questions, Council Member Ferris said direct lending appeared too expensive relative to the bond option and requested actual Stifel term sheets so the Council could compare apples to apples. The transcript also includes an exchange in which a Council member raised community concerns about whether the refinancing should require a public vote under Proposition 401/402 logic; Town Attorney Christina Estes-Werther advised that the Council lacked statutory authority to refer the matter to the ballot, and Mayor Otto criticized the issue as being raised manipulatively during election season. The approved meeting minutes do not record this exchange. - Motion by Council Member Jim Ferris, seconded by Mayor Stephen Otto, to direct Town staff to prepare refinancing terms with Stifel Public Finance for the approximately $20 million bond issue to pay off the PSPRS debt. The motion carried 7-0. New Business: Legal Services Review (H.1-H.3) - Council Member Charlie Bell opened the discussion requested by himself and Council Member Jim Ferris on whether the Town should consider an in-house town attorney instead of contracted legal services. He outlined potential advantages of an in-house attorney - immediate availability, institutional knowledge, predictable salary cost, and accountability - while acknowledging that most effective arrangements are hybrid, using outside firms for specialized or high-risk matters. - Justin Pierce of Pierce Coleman PLLC, the Town's contracted law firm, presented the firm's qualifications and cost data. He said the firm represents approximately 25 Arizona municipalities and has over 200 years of combined municipal law experience (he said the figure may be approaching 300). He reported that from July 1, 2024 to June 2026, recorded prosecution time of 2,370.5 hours would equate to about $592,500 at a discounted $250/hour rate, while the Town was billed $260,000; and general municipal services time totaling about $628,145 at discounted rates, compared with about $594,550 billed (including indirect costs). Pierce said the firm's flat fee for general legal services has not increased since 2022 despite roughly 10% cumulative inflation. He estimated a competent in-house town attorney would cost over $200,000 in salary plus 40% or more in employee-related expenses, with total compensation, benefits, and overhead likely exceeding $300,000-$400,000 per year, and would still require outside counsel for some matters. He noted the Town's legal budget was over $500,000 in 2019 and would likely cost $600,000-$700,000 today as an in-house operation, whereas payments to Pierce Coleman have been under $500,000 per year. - Council members expressed differing views. Council Member Ferris questioned whether a contract firm has the same incentive to do extra research or be as accessible as an in-house attorney and said he has not necessarily seen that advantage. Council Member Nossek disagreed, saying he receives almost instant responses and that the in-house assumption is unfounded. Council Member Flaherty praised the firm's responsiveness and cost, noted the Town pays a much higher rate ($675/hour) for a zoning attorney elsewhere, and said having no lawsuits initiated against the Town in the last 12 months is evidence of sound advice. Other members echoed satisfaction with responsiveness and valued the objectivity of outside counsel. - Under agenda item H.2, the Council discussed review of current legal services provided by Pierce Coleman PLLC and could have voted to hold an executive session under A.R.S. 38-431.03(A)(1) and (3). No action was taken. - Under agenda item H.3, Town Attorney Christina Estes-Werther presented the Council Decision Request to approve the First Amendment to the Prosecution Services Agreement, increasing the total flat fee to $180,000 per year beginning July 1, 2026. Pierce said the increase was needed because the prosecutor's caseload and time commitment have made the current fee unsustainable. Motion by Council Member Jim Ferris, seconded by Vice Mayor Susan Tubbs, carried 7-0. Key Outcomes - Consent agenda (June 10, 2026 minutes) approved 7-0. - Ordinance No. 2026-107 (property tax levy) approved 6-1, with Council Member Brett Flaherty opposed; the rate is held at 0.2855, and the levy rises 5.1% to $757,050 for FY 2026-27. - Council directed staff to prepare PSPRS refinancing terms with Stifel Public Finance for an approximately $20 million taxable bond issue, 7-0. Stifel will return with documents for a subsequent authorizing resolution. - Council took no action on the in-house vs. contracted legal services review (H.1/H.2) and did not go into executive session. - Council approved the First Amendment to the Prosecution Services Agreement raising the flat fee to $180,000/year effective July 1, 2026, 7-0. - Several Council members expressed interest in revisiting or potentially eliminating the Town's property tax in the FY 2027-28 budget.

On June 10, 2026, the Town of Payson Common Council met in regular session in the Town Hall Council Chambers, 303 N. Beeline Highway, Payson, Arizona. Mayor Stephen Otto called the meeting to order at approximately 4:01 p.m. and adjourned at approximately 7:42 p.m. Council Member Scott Nossek was absent; several council members and staff participated by Zoom. The mayor reordered the agenda to handle the consent agenda, a presentation, and board/commission appointments first. Items H.10, H.11, and H.12 were tabled to a future meeting. Consent Calendar - Approved the meeting minutes for the May 5, 2026 work session, May 13, 2026 regular meeting, and May 20, 2026 special meeting. The motion carried 6-0. Public Comments & Testimony - Tom Dunning said he supported Circle K generally, but not at the proposed location. - Michael Fox sought to discuss a Payson Roundup opinion piece about the library; the Town Attorney asked him to avoid election-related topics. - Darlene Younker DeLage expressed support for the proposed luxury RV resort, opposed the Circle K convenience store and liquor license at the proposed location, and spoke in favor of the Longhorn Ranch development. She also said town boards and commissions should be limited to Payson residents. - Mike Quinn opposed the RV resort at the Malibu site, saying the 21-acre town-owned property is a valuable asset and should be retained for future public, civic, or recreation uses. - Karen Carrothers, via Zoom, opposed the Circle K permits, arguing that an 8-foot wall would not block light or noise, that truck idling would be around the clock, and that the use would attract crime. - Ashley Hesson, via Zoom, opposed the Circle K at that location, preferred more housing, and raised air-quality, traffic, and diesel-fume concerns for her home and micro-school. - During the E.1 hearing, Steve Hollenbach, Everett Rushlow, Pat Lockwood, Becky Crow, and Brooke Meyers opposed the Circle K project. Doug Martin, chairman of the Planning and Zoning Commission, appeared as a private citizen to dispute social-media accusations that he had a conflict of interest. Discussion Items D.1 - Wildhorse Hospitality RV Resort Proposal (Malibu Property) - John Rittenour of Wildhorse Hospitality LLC presented a proposal for approximately 150 mixed-size RV spaces, 60 enclosed RV/boat storage units, park-model cabins, a pool, pickleball courts, a dog park, a clubhouse/general store/restaurant, direct-to-unit food delivery, and UTV rentals on the town-owned 21-acre Malibu property. The business model would sell about 90 percent of the storage and cabin inventory and retain 10 percent for rentals. - He projected $300,000-$400,000 per year in tax revenue, $282,000 in construction tax, $4.1 million in cumulative 10-year town general fund impact, $231,000 in community property tax, $17 million in private investment, and 25-40 construction-related jobs. - Rittenour said the Star Valley property he already owns would not work for an RV park because land there costs $425,000 per acre, while the Malibu site's trees and appraised value make the project financially viable. - Several council members spoke favorably about the concept. Town Manager Darren Coldwell said he would negotiate with Rittenour, noting the sale price could not go below appraised value. No formal action was taken on this presentation. E.1 - Appeal of Circle K Conditional Use Permit (CUP26-001) - Appellant Kamberly Arden asked the council to reverse the Planning and Zoning Commission's April 6, 2026 approval of CUP26-001 for a convenience market with gasoline sales at 400 N. Beeline Highway. She argued the location is wrong because of traffic near Walmart and Rumsey Drive, flood risk, grading and dirt-disposal issues, and impacts on neighboring homes. - Brennan Ray, attorney for applicant Rumsey Company/Circle K, said the project is not a truck stop and is subject to conditions prohibiting truck-stop operation, overnight parking, and idling. He noted the property has been zoned C2 for about 25 years and that permitted-by-right alternatives could include drive-through restaurants or other commercial uses. Circle K also agreed to add conditions and to share the ADOT traffic work with town staff. - Zoning Administrator Nicole Adams and Town Engineer Nathan Larson said the CUP stage does not require a traffic study or final engineering plans; those documents come in later design, ADOT, drainage, and building reviews. ADOT does require a traffic impact analysis for the Beeline Highway/Rumsey Drive area, using level-of-service standards and process 240, with background growth considered for 2027 and 2030. - The council voted 6-0 to modify the approval instead of reversing it, adding conditions 8-11: an 8-foot screen wall adjacent to the western-boundary parking; western-boundary parking spaces at least 74 feet from the north property line; delivery of the ADOT-approved traffic impact analysis to town staff and cooperation with the town's review; and posting of 'No Idling' and 'No Overnight Parking' signage. - Arden asked for a refund of her $624 appeal fee and clearer appeal procedures; no action was taken on that request. Council Member Ferris and the Mayor also asked staff to separately review a potential road easement. E.2 - Series 010 Beer and Wine Store License - No members of the public commented. The council recommended approval of the Circle K Stores Inc. license application for 400 N. Beeline Highway to the Arizona Department of Liquor Licenses and Control by a 5-0 vote. Vice Mayor Tubbs had left the meeting at approximately 7:12 p.m. F.1 - Ordinance 2026-102 (Building Advisory Board) - After a second public hearing with no comment, the council approved 5-0 an ordinance amending the Building Advisory Board membership rules to allow people who are not Payson electors but own a business in town and live within the Payson Regional Justice Court District to serve, reflecting the board's specialized building-industry requirements. F.2 - Ordinance 2026-103 (Longhorn Road Zone Change to PAD) - After a second public hearing with no comment, the council considered the zone change of approximately 83.73 acres at 1300 W. Longhorn Road from R1-8-MH to Planned Area Development. Zoning Administrator Nicole Adams reported that corrected density calculations show a maximum residential build-out of approximately 584 dwelling units, not the roughly 1,200-unit figure previously discussed. - Council discussion focused on fire truck access. Fire Chief David Staub said the proposed southwest emergency access would be built to support a 75,000-pound fire truck and meet code standards, despite current steep, marshy conditions. - Council Member Dallin Haws moved to approve the ordinance subject to a traffic impact analysis. The motion carried 4-0, with the condition that a traffic impact analysis be provided before or concurrently with the preliminary plat and be prepared according to ADOT guidelines and process 240. H.2-H.9 - Board and Commission Appointments - The council filled expiring terms and vacancies; all appointment votes carried 6-0. Terms generally begin July 1, 2026, and expire June 30, 2029, although the clerk noted the PSPRS agenda titles contained scrivener's errors and those terms actually expire June 30, 2030. - Airport Commission: Gwen Linde and Jim Hunt. - Board of Adjustment: Alan Chittenden and Micah Utterback. - Building Advisory Board: Eugene Wullkotte. - Planning and Zoning Commission: Laura Malone and Karen Schaier. - Parks and Recreation Commission: Stacie Foote-Blaine, Ben McDowell, and De Anne Russell. Two new applicants were not appointed because they were not qualified Payson electors. - Fire Department Public Safety Personnel Retirement Board: Jerry Montoya. - Police Department Public Safety Personnel Retirement Board: Jerry Montoya. H.1 - Waste Collection and Disposal Services Contracts - Kyle Christiansen, Director of Capital Improvements, presented results of the waste collection and disposal RFP. Three bids were received: Roadrunner Rubbish, Off-Road Trash Co. LLC, and Waste Management of Arizona. Staff recommended awards based strictly on low bid. - The council approved two 5-0 motions: Group 1 to Roadrunner Rubbish LLC and Group 2 to Waste Management of Arizona, LLC. Tabled Items - H.10, H.11, and H.12 - H.10, the First Amendment to the Prosecution Services Agreement increasing the flat fee to $180,000 per year beginning July 1, 2026, was tabled. - H.11 and H.12, concerning review of the town's current legal services provided by Pierce Coleman PLLC and the advantages/disadvantages of in-house versus contract counsel, were tabled at the beginning of the meeting because Council Members Bell and Ferris were appearing by Zoom and wanted to be present in person. H.10 was later grouped with these items for a future meeting. Key Outcomes - Consent agenda approved 6-0. - CUP26-001 approval modified and upheld 6-0 with added conditions 8-11. - Series 010 liquor license recommendation for Circle K approved 5-0. - Ordinance 2026-102 approved 5-0. - Ordinance 2026-103 approved 4-0 subject to a traffic impact analysis condition. - Waste collection contracts awarded to Roadrunner Rubbish LLC (Group 1) and Waste Management of Arizona, LLC (Group 2), each 5-0. - All listed board and commission appointments approved 6-0. - H.10, H.11, and H.12 tabled to a future meeting. - Attendance note: Council Member Scott Nossek was absent; Vice Mayor Susan Tubbs left at about 7:12 p.m.; Council Member Brett Flaherty left at about 7:23 p.m. and returned at about 7:28 p.m.

The Payson Town Council held a special meeting on June 10, 2026, from approximately 3:02 p.m. to 3:51 p.m. The meeting focused on adopting the final budget for fiscal year 2026-2027 and a presentation on refinancing options for the Public Safety Personnel Retirement System (PSPRS) unfunded liability. Public Hearing and Budget Adoption - Resolution 2026-025: The council held a public hearing and subsequently approved a resolution adopting the final budget for FY 2026-2027. Deputy Town Clerk Megan Miller presented the resolution. No public comments were received. The motion carried 5-0, with Council Members Bell and Nossek absent. Presentation: PSPRS Pension Refinancing Options - Presenters: Jack Reeder and Omar Daghestani of Stifel Public Finance presented an analysis of the town's PSPRS unfunded actuarial liability (UAL), which stands at approximately $20 million, plus $238,000 for OPEB. - Current situation: The town currently pays about $5 million annually toward PSPRS, with payments extending to 2047. The assumed earnings rate on the pension fund is 7.2%. - Bond proposal: Stifel proposed issuing a pension obligation bond at an estimated all-in interest rate of 5.34% (as of the meeting date). This would refinance the UAL, generate approximately $3.4 million in present-value savings, and allow the town to shorten the payment schedule to 2037 by eliminating the tail payments. A contingency reserve fund would be created to cover potential future actuarial adjustments, providing a budgetary shock absorber for up to three years of market downturns. - Alternative loan option: Town Manager Darren Coldwell noted an alternative commercial loan from Home and Capital at prime plus 1.25% (currently about 7.25%–7.75%), which offers more flexibility but at a higher cost. - Council discussion: Council Members, including Jim Ferris and Brett Flaherty, asked about prepayment options, credit ratings, and the impact on the budget. They noted that the bond option would reduce annual payments from about $5 million to roughly $3.3 million (including normal cost), resulting in net budget savings of around $1.7 million per year. Council Member Flaherty expressed concern about setting future councils up for success. The council concluded that the bond option is clearly preferable to the commercial loan given the rate differential. - No action: The council did not take a vote on the PSPRS refinancing. Town Manager Darren Coldwell stated that the item would be agendized at a later meeting for further discussion and decision. Key Outcomes - Resolution 2026-025 adopted (5-0): Final budget for FY 2026-2027 approved. - PSPRS refinancing: No action taken; further discussion scheduled for a future meeting. The council appears to favor the Stifel bond proposal over the commercial loan option.

The Town of Payson Planning and Zoning Commission scheduled a public meeting on June 1, 2026, at 3:00 p.m. in the Town Hall Council Chambers, 303 North Beeline Highway, Payson, Arizona, with remote participation available via Zoom. The agenda included approval of prior minutes, a scheduled conditional use permit hearing, and routine staff communications. No transcript or minutes were provided for this summary, so meeting outcomes and discussion details could not be verified. Approval of Minutes - Agenda item A.1: Approval of the minutes from the April 6, 2026 Planning & Zoning Commission meeting. No outcome is recorded in the available materials. Scheduled Hearing: CUP26-002 - CUP26-002: An application filed by Tracy Estes, agent for Payson Medical Building, LLC c/o Sandra Jazayeri, owner, for a Conditional Use Permit to allow vehicle sales and rentals on the properties located at 707 S Beeline Hwy and 713 S Beeline Hwy, tax parcels 304-16-450 and 304-16-241A. - The agenda listed a staff report for CUP26-002. No public testimony, commission deliberation, or vote is documented in the available record. Requests to Staff and Information to Commission - Agenda section C allowed commissioners to request items for future Planning & Zoning Commission agendas. - Agenda section D provided information to the commission, noted as not for discussion. No specific requests or informational items are listed in the available agenda. Key Outcomes - No decisions, votes, or directives are recorded in the available agenda, minutes, or transcript. The meeting agenda noted the possibility that a quorum of the Payson Common Council might be present, but no council action, deliberation, or business was planned.

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.

The Payson Town Council held its regular meeting on Wednesday, May 13, 2026, starting at approximately 4:01 p.m. in the Town Hall Council Chambers, 303 North Beeline Highway, Payson, Arizona, and adjourning at approximately 6:08 p.m. Mayor Stephen Otto presided. Present were Vice Mayor Susan Tubbs and Council Members Charlie Bell, Jim Ferris, Brett Flaherty, Dallin Haws, and Scott Nossek; Tubbs and some staff participated via Zoom. The agenda included the consent calendar, an Event Center booster station and arena cover presentation, the FY 2026-27 fee schedule, two minor General Plan amendments, first public hearings on a Building Advisory Board ordinance and the Longhorn Ranch PAD rezoning, and a property tax levy direction. Mayor Otto removed Item H.1 (Waste Collection and Disposal Services) from the agenda because it was not ready for council consideration. Consent Calendar - Approved the April 22, 2026, Regular Council Meeting minutes. - Approved Resolution No. 2026-011, authorizing an amendment to the intergovernmental agreement with Gila County for consolidated administration and operation of limited jurisdiction courts. - Approved Resolution No. 2026-013, the FY 2026-27 agreement with the Humane Society of Central Arizona, Inc. - Approved Resolution No. 2026-014, the agreement with Payson Senior Center, Inc., for disbursement of public purpose funds. - Approved Resolution No. 2026-015, monetary support for the Mogollon Valley Pit Program for management and operation of the Blattner Brush Pit. - Approved Resolution No. 2026-023, granting an exception to the qualified elector requirement and appointing Eugene Wullkotte to the Building Advisory Board. - The consent agenda was approved 7-0. Council Member Jim Ferris requested full financial statements from 501(c)(3) organizations receiving town funds to help justify the expenditures; staff said it would address this earlier during next year’s budget process. Public Comments & Testimony - Michael Fox, a seven-year Payson resident and Vietnam-era veteran, thanked the council for supporting the town library and encouraged continued support. - Mike Quinn congratulated the Parks and Recreation Department, encouraged the town to develop vacant land into useful assets, and suggested senior-friendly trails, including a trail from the rodeo grounds toward the national forest, noting that volunteers could accomplish much at low cost. - During the Longhorn Ranch public hearing, Mike Christy, a resident on the northern boundary, expressed concern about increased traffic on Longhorn Road and asked for actual traffic numbers. - Isaiah Sears, owner of Rim Country Inn, expressed support for the Longhorn Ranch development, citing Payson’s housing shortage and limited dining and commercial options. Current Events and Announcements - Town Manager Darren Coldwell reported the final budget will be presented at the May 30, 2026 special meeting. He introduced Matthew Podracky from Pierce Coleman as additional town attorney support alongside Christina Estes-Werther, and congratulated Senior Administrative Support Specialist Dawn Jackson on becoming a Certified Election Official. - Council Member Brett Flaherty suggested using the Event Center billboard to advertise Payson and the new mountain bike trails. Presentations and Discussion Items - Event Center Booster Station and Arena Cover (D.1): Water Utility Director Tanner Henry said the existing 12-inch water main in Green Valley Parkway provides 48 PSI and up to 1,730 gallons per minute, but on-site three-quarter-inch lines limit flow; for example, 400 feet of three-quarter-inch pipe flows about 8 gallons per minute, while upsizing to two-inch pipe would flow about 86 gallons per minute. The existing booster station at the Event Center is dedicated to the Tonto Apache Tribe and limited to 100 gallons per minute under the 2019 agreement, with another connection capable of 1,000 gallons per minute on Phoenix Street. A new booster station sized for roughly 3,000 gallons per minute would cost an estimated $900,000 to $1.1 million. Project Management Director Kyle Christiansen presented arena cover options: covering the full arena would cost about $1.25 million to $3.15 million for steel plus $2 million to $3 million for erection and related work, while covering only the grandstands would cost about $1.5 million to $2 million. Council discussed phasing, sponsorship, lighting, and whether the Tonto Apache Tribe would help pay for booster station capacity. - FY 2026-27 Fee Schedule (F.1): After a second public hearing with no public comments, council discussed the $650 appeal fee and the codified appeals process. Deputy Town Manager Sheila DeSchaaf clarified procedural questions, and staff was directed to provide Council Member Flaherty with appeal process information. Resolution No. 2026-020 was adopted 7-0. - Minor General Plan Amendment – Longhorn Ranch Parcel 4 (F.2): Zoning Administrator Nicole Adams presented the request to change 16.25 acres at 1300 W. Longhorn Road from Traditional Residential to Mixed Use. The Planning and Zoning Commission recommended approval 6-0 on April 6, 2026. Council discussed limits on large retail and confirmed gas stations would not be included. Resolution No. 2026-021 was approved 7-0. - Minor General Plan Text Amendments (F.3): Nicole Adams presented staff-initiated Resolution No. 2026-022, updating land use descriptions, amendment procedures, and Future Land Use Map corrections. Staff removed proposed density range changes to avoid triggering a major General Plan amendment. The Planning and Zoning Commission recommended approval 6-0 on April 6, 2026. Resolution No. 2026-022 was approved 7-0. - Building Advisory Board Ordinance (F.4): Deputy Town Clerk Megan Miller presented the first public hearing for Ordinance No. 2026-102, which would allow individuals who reside within the Payson Regional Justice Court precinct and own a business or property in Payson to serve on the Building Advisory Board even if they are not qualified electors. No action was taken; a second public hearing is scheduled for June 10, 2026. - Longhorn Ranch PAD Rezoning (F.5): Nicole Adams presented Ordinance No. 2026-103, rezoning 83.73 acres at 1300 W. Longhorn Road from R1-8-MH to Planned Area Development (PAD). The Planning and Zoning Commission recommended approval 5-1 on April 6, 2026. Tom Snyder of EPS Group, representing the developer, presented the Longhorn Ranch master plan, including single-family detached and attached housing, multifamily units, a mixed-use village marketplace, approximately 29% open space, multi-use trails, a roundabout, and phased construction. Council and public comment focused on traffic impacts on Longhorn Road and Green Valley Parkway, the threshold for a traffic impact analysis, fire access, fire-resistant materials, commercial viability, and trail connections. Fire Chief David Staub said the area would be served by a planned Station 12 on Airport Road and no significant additional fire upgrades were required. No action was taken at this first public hearing. Property Tax Levy Direction (F.6) - The council held the first public hearing on Ordinances 2026-104 and/or 2026-106 for the FY 2026-27 property tax levy; there were no public comments. Town Manager Darren Coldwell presented options: a proposed levy of $830,000 (a 14.5% rate increase, generating about $106,000 more), a $724,296 levy (lowering the rate to keep revenue essentially flat), and a third option discussed by council of keeping the current rate of 0.2885, generating roughly $765,000, about $41,000 more than the current year. Council directed staff to prepare an ordinance leaving the property tax rate unchanged at 0.2885, with no increase. Key Outcomes - Consent Agenda approved 7-0. - Resolution No. 2026-020 (FY 2026-27 Fees and Charges Schedule) adopted 7-0. - Resolution No. 2026-021 (Minor General Plan Amendment, P25-002) approved 7-0. - Resolution No. 2026-022 (Minor General Plan Amendment, P26-001) approved 7-0. - First public hearings held for Ordinance No. 2026-102 and Ordinance No. 2026-103; no votes taken. A second public hearing for Ordinance No. 2026-102 is scheduled for June 10, 2026. - Council directed staff to prepare the property tax levy ordinance keeping the current tax rate of 0.2885 unchanged. - Item H.1 (Waste Collection and Disposal Services) was removed from the agenda by Mayor Otto.

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.

The Payson Town Council held a regular meeting on April 22, 2026, starting at approximately 4:04 p.m. and adjourning at approximately 5:27 p.m. in the Town Hall Council Chambers. All seven council members were present. The meeting covered multiple agenda items including a consent agenda, public comments, a fire department update, a public hearing on the FY 2026-2027 fee schedule, and appointments to fill vacancies on boards and commissions. Consent Calendar - B.1: Approval of Minutes – Approved minutes of April 8, 2026 regular meeting. - B.4: Resolution No. 2026-019 – Approved an intergovernmental agreement with ADOT for design and construction services on West Forest Drive from Colcord Road to State Route 87. Items B.2 and B.3 were removed for separate discussion. The consent agenda (B.1 and B.4) was approved 7-0. Public Comments & Testimony - Brooke Meyers applauded the Town’s disc golf and Ubuntu Trail events and requested monthly project management update meetings for transparency. - Tom Dunning challenged the Town to consider becoming a green, net-zero community, suggesting a committee for future greening efforts. - Mike Quinn praised the mountain bike race events ($400 people, increased hotel usage and tourism tax revenue), opposed reducing the food tax, and advocated for investing in a new pool rather than “nickel and diming.” - Mike Voden recommended switching Town facility lighting to LED to save 80-90% on electricity costs, and proposed family campout weekends, fishing tournaments, and more covered benches and fountains at Green Valley Park. - Jeff Robbins supported the two road-related resolutions, stating they improve traffic flow and are a “small step” toward broader traffic calming. Discussion Items - B.2: Resolution No. 2026-012 (Summer Work Program IGA) – Council Member Nossek requested separate discussion to highlight the program. Town Manager Darren Coldwell reported the program has run since 2018 at no cost to the Town, with interns placed in Parks, Community Development, and other departments. Several interns later become permanent employees. The application process is through Gila County. The resolution was approved 7-0. - B.3: Resolution No. 2026-018 (Mud Springs to Monument Peak Trail Design/Scoping IGA) – Parks Director Steve Richardson and Rim County Trail Fund Secretary Anna Van Zile explained the project: a bike lane from the Granite Dells roundabout to the cattle guard, and a 10-foot paved mixed-use path to Monument Peak. The Town’s match is 5.7% of the $190,000 scoping phase. A special use permit from the Forest Service may be required, and a NEPA study is possible. ADOT prefers to see projects through to construction. The resolution was approved 7-0. - D.1: Fire Department Update – Assistant Fire Chief Kevin McCully presented a 39-year veteran’s perspective. Key statistics (July 1, 2025 to date): 55 fires, 90 hazmat incidents, 1,945 medical calls, 2,874 total calls across three stations. 384 times two engines were on calls simultaneously; 51 times all three engines were on calls; 8 times mutual aid was requested. The department brings in about $540,000/year through external contracts. Ongoing improvements include a new drone program, First Due records management system, and 800 MHz radio upgrade. The Fire Prevention Division conducted 70 permits, 600 plan reviews, and 20 state-required inspections. - F.1: First Public Hearing on Fee Schedule FY 2026-2027 – No public comments were made. The hearing was opened and closed. The final adoption will follow a 30-day posting period. - H.1: Board and Commission Appointments – Deputy Town Clerk Megan Miller noted that applicant Eugene Wullkotte is not a qualified elector per Town Code. Council directed staff to draft a resolution allowing exceptions for individuals with a Town business license who live in the region, and to review other boards for similar eligibility issues. Council also requested that future applications include complete responses. For Wullkotte, the matter will be brought back. - H.2: Building Advisory Board Appointments – Three appointments made: - Cody O’Donnell appointed to term expiring June 30, 2027 (motion 6-0; Council Member Tubbs recused). - Eric Santana appointed to term expiring June 30, 2028 (7-0). - Patrick Whelan appointed to term expiring June 30, 2028 (7-0). - H.3: Board of Adjustment Appointment – Joseph “Jack” Pence appointed to term expiring June 30, 2027 (7-0). Key Outcomes - Approved minutes (B.1) and three IGAs (B.2, B.3, B.4) all by 7-0 votes. - Received Fire Department update; no action required. - Held first public hearing on FY 2026-2027 fee schedule; final adoption pending. - Directed staff to draft a resolution to allow non-resident business owners to serve on boards/commissions, and to review eligibility criteria across all boards. - Appointed four individuals to fill immediate vacancies: Cody O’Donnell, Eric Santana, Patrick Whelan (Building Advisory Board), and Joseph Pence (Board of Adjustment). - Town Manager noted the FY 2027 budget review work session is scheduled for May 7, 2026, at a time to be determined.

The Payson Town Council met in regular session on April 8, 2026, at 4:00 p.m. in the Town Hall Council Chambers. The meeting covered a wide range of topics including a wildfire outlook presentation, refinancing of Public Safety Personnel Retirement System (PSPRS) debt, acquisition of a property for flooding remediation, and a settlement in ongoing litigation. The meeting adjourned at approximately 6:56 p.m. Consent Calendar - Approval of Minutes: The Council unanimously approved the minutes of the Regular Council Meeting of March 25, 2026 (7-0). Public Comments & Testimony - Mike Imholz and Collette Muscara (representing Church on the Mountain, formerly Church for the Nations) reported completion of their parking lot project and invited Council and staff to a celebration and ribbon cutting on Thursday, April 23, 2026. - Jeff Robbins expressed frustration that the Town has not acted on previous public comments regarding property maintenance and code violations, arguing for a proactive enforcement system rather than the current complaint-driven approach. - Tom Dunning urged the Council to consider options to retire PSPRS debt earlier at potentially lower cost, citing possible savings in time and money. - Isaac Blake spoke about voter participation rates for Party Not Designated (PND) voters, stating that over 3,000 Payson residents are registered as PND. He requested the Town update public communications to clearly explain that PND voters must take action to receive a ballot, noting confusion in the 2024 election. Town Manager Darren Coldwell clarified that election materials are provided by Gila County, which is responsible for elections. - Nina Grabiel opposed the three-minute time limit per person for public comments, arguing it infringes on First Amendment rights. - Ralph Townsend opposed the use of Flock automated license plate reader cameras, stating the invasive surveillance technology violates constitutional rights, citing U.S. Supreme Court rulings (United States v. Jones and Carpenter v. United States). - Mike Quinn reported that his two FOIA requests were referred for legal review but never answered. He also echoed concerns about code enforcement regarding junk, debris, inoperable vehicles, and overgrown vegetation, urging the Town to be more proactive. - Darlene Younker DeLage expressed support for careful consideration of PSPRS refinancing options but urged the Council to consider potential impacts from future changes in elected officials and staff, noting the flexibility of the proposed direct lending could allow future councils to take on additional debt. - Janet Williams (speaking on H.2) inquired about the purpose of Resolution 2026-017, plans for property usage, and mitigation of drainage and flooding. Council directed staff to reach out to her after matters were resolved to provide additional information. Discussion Items - D.1 – 2026 Wildfire Outlook: Public Safety Director / Fire Chief David Staub presented the annual wildfire outlook. Key points included multi-agency coordination, potential delay in fire restrictions due to recent weather, and increased fire risk expected by June. He reviewed resources (including a change from 8 engines to 6 engines plus an initial attack crew), evacuation planning, and public education efforts. Assistant Fire Chief Kevin McCully provided an update on a multi-agency mastication project to which the Town donated $10,000, noting its completion and offering tours. Vice Mayor Tubbs requested staff research a neighborhood-based communication program like Neighbor to Neighbor. - H.1 – PSPRS Debt and Refinancing Options: The Council discussed a proposal from Holman Capital to refinance the Town's PSPRS unfunded liability (approximately $19.5 million) through direct lending. Representatives Lance Holman and James Lott outlined flexible repayment options, reduced closing costs ($20,000 flat fee), a 30-45 day closing window, and the ability to exit or refinance at any time with a prepayment premium (5-6% of outstanding principal). The Town's current PSPRS payment is about $5 million annually; if the debt were paid off, the annual payment would drop to around $1 million. Council directed staff to return with a comparison to bond financing and detailed financial scenarios for future consideration. Council members expressed interest in a 10-year repayment term. No formal vote was taken. - H.2 – Resolution 2026-017 (Acquisition of 1700 North Dogie Circle): This resolution authorizing acquisition of the property for flooding remediation was first tabled pending mediation. After returning from executive session, the Council approved Resolution 2026-017 (7-0), authorizing the purchase of the property as part of a settlement agreement. Town contribution: $600,000; insurance contribution: $100,000; appraised value: $410,000. The resolution also allows donation or eminent domain, but the settlement involves purchase. - H.3 & H.4 – Executive Session: The Council voted (7-0) to move into executive session to receive legal advice regarding Resolution 2026-017 (H.3) and to consider its position in Dudley v. Town of Payson (H.4). The meeting recessed at 6:19 p.m. and reconvened at 6:53 p.m. - H.5 – Settlement in Dudley v. Town of Payson: After executive session, the Council approved (7-0) a settlement agreement reached during March 31, 2026 mediation. The settlement authorizes the purchase of the property at 1700 North Dogie Circle. Key Outcomes - Consent Agenda: Approved meeting minutes of March 25, 2026 (7-0). - Resolution 2026-017: Approved to authorize acquisition of 1700 North Dogie Circle by purchase (7-0), as part of the approved settlement. - Settlement in Dudley v. Town of Payson: Approved (7-0), authorizing staff to proceed as discussed in executive session. The settlement involves the Town paying $600,000 and insurance contributing $100,000 to purchase the property (appraised at $410,000) to resolve litigation and mitigate drainage/flooding. - Executive Session: Motion carried (7-0) to recess for executive session on items H.3 and H.4. - Wildfire Outlook: Staff directed to research a Neighbor to Neighbor communication program and report back. - PSPRS Refinancing: Council directed staff to present a bond comparison and further financial analysis at a future meeting; no final decision made.