Public Meetings - Payson, Arizona

Mayor Stephen Otto called the special meeting to order at approximately 3:03 p.m. on July 9, 2025, at the Town Hall Council Chambers, 303 N. Beeline Highway, Payson, Arizona. The sole purpose was to hold a second public hearing and consider adoption of Ordinance No. 971, which levies a property tax for the fiscal year ending June 30, 2026. The meeting concluded with unanimous approval and adjournment at approximately 6:13 p.m. Discussion Items - Presentation of Ordinance No. 971: Finance Director Dana Ohanesian presented the property tax levy for fiscal year 2025-26. He explained that the total assessed value of property in Payson is $252 million, up from approximately $240 million the previous year—an increase of $12 million due to property sales and new construction. Based on this assessed value, the maximum levy allowed is $964,000, with a Truth in Taxation rate of 0.2855 per $100 of assessed value. Because the assessed value increased, the town anticipates collecting approximately $720,000 in property tax revenue, which is about $3,000 more than the prior year, even though the tax rate decreased from 0.2992 to 0.2855. Ohanesian noted that the town receives only about 4% of the total property tax collected. - Council Direction: At the March 4, 2025 work session, council directed staff to set the levy at the maximum rate that does not trigger a Truth in Taxation notice. The proposed ordinance therefore sets the rate at 0.2855. Key Outcomes - Public Hearing: Mayor Otto opened the public hearing. No members of the public offered comment, either in person or via Zoom. The hearing was closed. - Motion and Vote: Council Member Brett Flaherty moved to approve Ordinance No. 971, seconded by Council Member Jim Ferris. The motion carried 7–0, with all members present voting in favor: Mayor Stephen Otto, Vice Mayor Susan "Suzy" Tubbs, Council Members Charlie Bell, Jim Ferris, Brett Flaherty, Dallin Haws, and Scott Nossek. - Adoption: Ordinance No. 971 was adopted, establishing the property tax levy for fiscal year 2025-26 at a rate of 0.2855 per $100 of assessed value, resulting in an estimated $720,000 in revenue.

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.

This special meeting of the Payson Town Council focused on adopting the Town's final budget for Fiscal Year 2026 (Resolution 3453) and holding the first public hearing on the property tax levy (Ordinance 971). The meeting began at 3:02 p.m. and adjourned at approximately 4:22 p.m. Public Comments & Testimony - Mike Quinn questioned what he saw as contradictory economic messaging from council members (citing predictions of both prosperity and recession) and suggested focusing revenue generation on sales taxes paid by tourists rather than property taxes. - Jesse Barry criticized a council member for mocking the town librarian at a previous meeting, urging the council to show respect and love in public discourse. Council Member Ferris responded, stating he loves children and wants age‑appropriate materials in the library. - Tim Coyne urged the council to cut the budget, describing personnel and service costs as “out of control” and warning that a business in a similar position would be close to insolvency. - Laura Malone (via Zoom) questioned whether $4 million in anticipated PFAS settlement revenue was being properly reserved for PFAS‑related capital projects. Staff clarified that the first PFAS treatment facility was included on Exhibit B as a capital project. - Sharon Arnst (during the tax levy hearing) asked for clarification about the property tax increase; staff explained that while the tax rate had been reduced, rising property values might still result in higher individual tax bills. Discussion Items - Final Budget for FY2026 (Resolution 3453): Finance Director Dana Ohanesian presented the $91.6 million budget, including $40.6 million in general fund expenditures. Key points: personnel costs rose to $24.7 million (budgeted, though actual spending in FY2025 was $20.5 million); $4 million in potential PFAS settlement revenue included; 2.3 million in fund balance used as placeholder for capital projects or liability reduction; the property tax levy would generate about $720,000 at a reduced rate of 0.2855 per $100 assessed valuation. - Council Discussion on Exhibit B: Council Member Ferris moved to remove four items from Exhibit B (the capital projects schedule): $1.5 million event center update/enhancement, $1 million pavement preservation, $4 million aging water main replacement, and $4,289,400 water line replacement. The motion was seconded by Mayor Otto. Staff noted removing these would not impede operations; they could be brought back for council approval individually. - Council Member Bell’s Concerns: Bell expressed unease about adopting the budget without input from the incoming town manager (employment agreement to be considered later in the evening). Staff explained the budget is a framework that can be reduced later, and that the statutory deadline for adoption allows for review until mid‑August. Key Outcomes - Motion to Remove Four Projects from Exhibit B: Passed 4‑2‑1. Ayes: Mayor Stephen Otto, Vice Mayor Suzy Tubbs, Council Members Jim Ferris and Scott Nossek. Nays: Council Members Brett Flaherty and Dallin Haws. Abstain: Council Member Charlie Bell. - Adoption of Resolution 3453 (FY2026 Final Budget): Motion by Council Member Nossek, seconded by Vice Mayor Tubbs. Passed unanimously 7‑0. The budget adopts the estimates of revenues and expenditures as the Town’s final budget for fiscal year ending June 30, 2026. - First Public Hearing on Ordinance 971 (Property Tax Levy): Held as required. No action was taken; a second public hearing is scheduled for July 9, 2025, to adopt the ordinance. The proposed levy rate is 0.2855 per $100 assessed valuation, generating an estimated $720,000 – approximately $3,000 more than the prior year but at a lower tax rate.

The Payson Town Council held a regular meeting on June 11, 2025, beginning at 4:01 p.m. in the Town Hall Council Chambers. The meeting covered routine consent items, a presentation on election law, several board appointments, budget clean-up transfers, a decision to cancel an August meeting, and executive sessions regarding the town manager search and an open meeting law complaint. Public comment included concerns about airport fees, hangar rates, town manager selection, and calls for greater transparency. Consent Calendar - B.1 – Approved the minutes of the Regular Council Meeting and Special Council Meeting both held on May 28, 2025. (Motion carried 7-0) - B.2 – Approved a year-end budget clean-up transferring $242,517 from the General Fund Contingency to the Grant Capital Project Fund and $121,053 from the General Fund Contingency to the Council Contingency Fund. The transfer addressed a deficit in the Grant Capital Project Fund related to a 2024 property purchase (the event center/Granite Hill property). (Motion carried 7-0 after being pulled from the Consent Agenda for discussion) Public Comments & Testimony - Nina Grabiel expressed disappointment in the town manager selection process, advocating for hiring recent graduates to save money and avoid “business as usual.” She also raised concerns about smart meters potentially worsening fires (citing the Palisades fire) and urged that the Firewise document address NASA's release of toxic chemicals. - Tom West (airline pilot, Payson airpark resident) criticized recently approved airport fees, stating many were new (not existing) and that rental aircraft fees were excessive. He argued that tenants of Payson Hangar One should be charged $300–$330 per month (based on $0.34 per square foot), not $371, given the hangars' poor condition. - Tom Dunning (21-year resident) asked whether town officials could use private radio to politicize town actions, referencing agenda Item D.1. He urged officials to “go above and beyond” the law and serve only the people of Payson. - Mike White (member of Payson Hangar One, founder of Payson Aero Club) stated that the $371 monthly rate for T-hangars is inequitable and discriminatory, noting that the hangars are 950 sq. ft. (not 1,050 as estimated) and older. He warned that unequal rates could jeopardize Federal Aviation Administration (FAA) grants. He requested a rate of $300 per month. - Isaac Blake reflected on the first six months of the council’s term, praising recent 7-0 votes on trails and the general obligation bond but criticizing community outreach sessions and radio comments as “political theater.” He urged reducing exclusion, increasing transparency, and fostering honest dialogue representing all viewpoints. Council Response: After the public comments, Vice Mayor Tubbs requested staff to verify the square footage of the hangars and agendize a follow-up discussion on the hangar rates. Discussion Items - D.1 – Presentation on Prohibition of Using Public Resources to Influence an Election: Town Attorney Christina Estes-Werther provided an overview of state law (A.R.S. § 9-500.14) triggered by the June 3, 2025 resolution calling a special election on a general obligation bond. She explained that public resources (including time, title, call-to-the-public forums) cannot be used to influence an election. Elected officials may use their title on their own time and may submit arguments in the informational pamphlet at their own expense. Staff must avoid using work time or devices. Penalties include civil fines up to $5,000 per violator. Council members asked clarifying questions about radio appearances and frivolous complaints. - H.1 – Cancel August 27, 2025 Regular Town Council Meeting: Acting Town Manager Sheila DeSchaaf requested cancellation due to the League of Arizona Cities Conference in August. Council discussed possibly holding a town hall meeting as a substitute. Motion to cancel approved 7-0. - H.2 to H.6 – Appointments to Town Boards and Commissions: The council made the following appointments: - Airport Commission (two positions): - Heather McCully reappointed (term to June 30, 2028) – motion carried 7-0. - Adam Moore appointment failed 3-4 (Yes: Tubbs, Flaherty, Haws; No: Otto, Bell, Ferris, Nossek). - Christopher Gaddis appointed (term to June 30, 2028) – motion carried 6-1 (Ferris dissenting). - Historic Preservation and Conservation Commission: Russ Russell appointed (term to June 30, 2028) – 7-0. - Parks and Recreation Commission (two positions): - Mary McMullen appointed (term to June 30, 2028) – 7-0. - Anna Van Zile reappointed (term to June 30, 2028) – 7-0. - Planning and Zoning Commission: Doug Martin reappointed (term to June 30, 2028). Council Member Ferris raised a conflict-of-interest concern regarding Martin’s involvement in local development, but other members expressed confidence that Martin would recuse himself when necessary. Motion carried 7-0. - H.7 – Executive Session: The council voted 7-0 to enter executive session to discuss the hiring and employment of a Town Manager (including legal advice and negotiation direction) and to receive legal advice on the town’s response to an open meeting law complaint (A.R.S. § 38-431.03 (1), (3), (4)). The meeting recessed at 5:28 p.m. and reconvened at 6:26 p.m. (Council Member Nossek absent). A motion to direct staff as discussed in executive session carried 6-0. Key Outcomes - Budget clean-up transfers approved – $242,517 and $121,053 from General Fund Contingency to cover deficits in Grant Capital Project Fund and Council Contingency Fund. - August 27, 2025 meeting canceled – Council may consider a town hall later in August. - Board appointments finalized – Full slate of appointments made; one Airport Commission seat went to Christopher Gaddis after Adam Moore failed. - Hangar rate follow-up directed – Staff to verify square footage of Payson Hangar One and agendize a rate discussion. - Executive session held – Council gave direction to the Town Attorney regarding town manager employment negotiations and open meeting law complaint response; no public details released. Discrepancy noted: The agenda listed Eric Anderson as the invocation speaker, but the minutes and transcript indicate the invocation was given by Barry Standifird (Stake Counsel for the Church of Jesus Christ of Latter-day Saints).

The Payson Town Council held a special meeting on June 3, 2025, at approximately 8:00 p.m. to discuss and take action on Resolution No. 3452, ordering and calling a special bond election for November 4, 2025, to authorize the issuance of general obligation bonds for the construction of a town aquatic facility. After extensive deliberation, the council voted 6-1 to approve the resolution. Discussion Items - Acting Town Manager Sheila DeSchaaf introduced the resolution and noted that the council needed to determine the dollar amount to be presented to voters. - Deputy Town Manager Christine Smith reviewed the proposed pool project, initially presented on May 14, 2025, and provided updated cost estimates that included escalation for inflation and market changes. The preliminary estimate for a basic indoor pool with a cover was approximately $20.2 million. The uncovered version was estimated at $15.7 million. - Public Works Project Manager Rod Buchanan confirmed the pool design specifications: 25-yard length, six lanes, depth ranging from 3 to 7 feet, with zero-entry for ADA compliance. He emphasized that a decision on lane count was needed as soon as possible to meet the construction document deadline of February 2026. - Parks and Recreation Director Steve Richardson expressed strong support for including a lazy river (or therapy current) for water walking, noting its benefits for community health and recreation, especially for older adults and therapeutic users. - Town Attorney Christina Estes-Werther clarified the ballot language, which would authorize "constructing, improving, and acquiring a town aquatic facility, including buildings, amenities, and improvements." The deadline for publishing the ballot information was August 6, 2025. - The council discussed various design and cost trade-offs. Ultimately, consensus formed around a $16 million bond amount at an assumed interest rate of 6%, for an uncovered pool with footers for a future cover, six lanes, a lazy river/therapy current, zero entry, and no slides or indoor lobby. The election cost was estimated at $38,000. - Council Member Jim Ferris moved to table the motion, but received no second. Key Outcomes - Motion to approve Resolution No. 3452 was made by Council Member Scott Nossek and seconded by Council Member Brett Flaherty. - The motion passed 6-1: Mayor Stephen Otto, Vice Mayor Susan Tubbs, Council Members Charlie Bell, Brett Flaherty, Dallin Haws, and Scott Nossek voted yes; Council Member Jim Ferris voted no. - The approved resolution calls a special bond election on November 4, 2025, for the question of authorizing up to $16 million in general obligation bonds at up to 6% interest to fund the aquatc facility. - The design specified is an outdoor heated pool with six lanes, zero entry, a lazy river/therapy current, and footers for a future cover. Construction documents are expected by February 2026, with a refined cost estimate by October 2025.

The Payson Town Council held a work study meeting on June 3, 2025, from approximately 3:04 p.m. to 7:47 p.m. to discuss the Fiscal Year 2025-2026 Final Budget and a General Obligation (GO) Bond for a new aquatic facility. No action was taken, but the council provided direction to staff on personnel cost reductions and consensus to proceed with a GO Bond election for a covered year-round pool at Malibu. Public Comments & Testimony - Public comment was not taken during the work study meeting, as noted in the agenda. Discussion Items - FY 2025-2026 Final Budget: Acting Town Manager Sheila DeSchaaf and Finance Director Dana Ohanesian presented the budget, highlighting a narrowing gap between revenues and expenditures. Personnel costs account for 74% of general fund spending. The council discussed hiring freezes, vacancy management, and contract employee costs (e.g., IPM and Brown & Associates). Human Resource Director Lynne O'Donnell presented a five-year personnel cost analysis, showing a 60% increase in personnel costs from FY2020 to FY2025, including 16 new public safety FTEs. Three options for personnel cost increases were reviewed: Option 1 (2.5% ECI, 2.5% merit, average 3.5-4.4% increase, saving $450,000), Option 2 (1.5% ECI, 2% merit, average 2.5-3.4% increase, saving $696,000), and Option 3 (no increases, saving $1.2 million). Council Member Ferris expressed concerns about unsustainable spending and proposed a hiring freeze. Council Member Bell questioned population growth versus service increases. Chief Stout and Commander Haines noted rising call volumes but stated crime statistics were not immediately available. - GO Bond Financing for Aquatic Facility: Jack Leeper of Stifel Public Finance presented bond scenarios: $7 million (uncovered pool at Rumsey/Taylor), $13 million (uncovered Malibu pool), and $16 million (covered year-round Malibu pool). The tax impact on an average home (limited value $228,000) for a $13 million bond was estimated at $76/year ($6.30/month). Bonding capacity was calculated at approximately $112 million based on the county assessor's 2025 net full cash assessed value of $429 million. Council Member Nossek advocated for letting voters decide, proposing a $16 million covered pool at Malibu. Council Member Ferris opposed, citing concerns about the location selection process and costs. Council Member Haws supported putting it to a vote. Town Attorney Christine Estes-Werther noted the ballot language deadline is June 6, 2025. Key Outcomes - Personnel Cost Direction: Council reached consensus to adopt Option 2 for personnel cost increases (ECI 1.5%, merit 2%, saving $696,000) and to maintain a hiring freeze for non-public safety positions until the new town manager evaluates service delivery. The council also agreed to keep the existing 1% sales tax increase for now and to postpone the fire truck purchase. - GO Bond Consensus: Council agreed to place a $16 million GO bond on the ballot for a covered year-round aquatic facility at Malibu, with a maximum interest rate of 6%. Staff was directed to finalize the draft resolution for a special meeting to meet the June 6 ballot language deadline. - Next Steps: The council scheduled a special meeting to adopt the final budget on June 25, 2025, and will hold additional work sessions as needed.

The Payson Town Council held its regular meeting on May 28, 2025, at 4:03 p.m. in the Town Hall Council Chambers. All seven council members were present. The meeting included public comments, a consent agenda, a proclamation, policy discussion, and several new business items, all of which were approved. The council also moved into executive session for four legal matters. Consent Calendar - B.1 Minutes of the Regular Council Meeting on April 23, 2025, and Work Session on May 6, 2025, were approved. - B.2 Resolution No. 3448 approving a law enforcement services agreement with the Town of Star Valley was approved. - B.3 Resolution No. 3447 designating the Chief Fiscal Officer for the Fiscal Year 2026 Expenditure Limitation Report was approved. - B.5 Council Decision Request to approve payment for the Town’s Microsoft licensing for a new three-year agreement was approved. - B.6 Appointment of Sergeant Michael McAnerny to the Public Safety Retirement Board (PSPRS) was approved. - Item B.4 was pulled for separate discussion. - Motion: to approve Consent Agenda Items B.1, B.2, B.3, B.5, and B.6 carried 7-0. Public Comments & Testimony - Robin Lisa Webber expressed concern about pedestrian safety at the Bonita Avenue traffic light and the four-way intersection near T-Mobile and Bashas. She noted a pedestrian was recently struck. She also requested cleanup of a property on Highway 87 near Firestone. Vice Mayor Tubbs requested staff share the incident report with the Arizona Department of Transportation (ADOT), which controls the lights. Acting Town Manager Sheila DeSchaaf confirmed ADOT would be contacted. - Tom Dunning, a 21-year resident, expressed appreciation that the council was going into executive session to discuss an open meeting law complaint. He urged the council to maintain a high standard and avoid any appearance of impropriety. - Jesse Barry, representing Keep Payson Clean, encouraged community members to help the town council by volunteering and giving back. He praised the road work on Airport Road and urged residents to ask what they can do for the town, rather than what the town can do for them. Discussion Items - B.4 – Library Service Agreement (Resolution No. 3449): Council Member Bell requested the item be pulled for discussion, citing reservations about the requirement that library staff comply with the Library Bill of Rights. He expressed concern about children accessing age‑inappropriate materials. Mayor Otto and Council Member Ferris joined in concerns, referencing a past incident where a sexual education book was displayed in the children’s section. Emily Linkey, Library Director, explained that children under 10 must be accompanied by an adult, parents have full access to their children’s accounts, and a formal review process exists for any concerns. She stated that the book in question was immediately moved after a complaint. Elaine Votruba, Gila County Librarian, clarified that the contract had already been approved by Gila County and would not be modified to remove the Library Bill of Rights requirement. Council Members Tubbs, Nossek, and Haws thanked Ms. Linkey for her professionalism, with Council Member Haws noting he had heard only one complaint about the library in five years and that children have far greater access to inappropriate material on social media. Motion to approve B.4 carried 4-3: Yes – Vice Mayor Tubbs, Council Members Flaherty, Haws, Nossek; No – Mayor Otto, Council Members Bell, Ferris. - D.1 – Proclamation: The council proclaimed the second week of June 2025 as National Recreation Highline Trail Week. Angie Abel, Recreation Director for the Payson Ranger District, accepted the proclamation and invited the community to a kickoff celebration on June 7. - D.2 – Council Policy 8 and Town Code 30.50: Acting Town Manager Sheila DeSchaaf provided an overview of how items are placed on the agenda. Council Member Bell initially moved to remove a provision allowing the Town Manager to reject agenda items, but later withdrew the motion after clarification that the procedure applies only to staff-initiated Council Decision Requests (CDRs), not to requests from council members. Council Member Nossek stated the discussion was intended to educate the public and address misconceptions that staff had delayed or denied council requests. - H.1 – Repurpose Watershed Funding: Tanner Henry, Water Director, requested authorization to reallocate $81,600 in unspent Water Enterprise Funds from the Baker Thinning Project to the Cordelia Mastication Project. The funds were originally allocated for watershed work under a 2018 agreement with Salt River Project (SRP), but SRP obtained alternative funding from Apple for the Baker project. The Cordelia Project, a 4,300‑acre mastication project north of town, will protect infrastructure, improve watershed health, and enhance groundwater recharge (estimated 1,870 acre‑feet over 10 years). Fire Chief David Staub confirmed the project is part of a five‑phase SRP plan. Motion carried 7-0. - H.2 – Boulders Trailhead Construction Document Funding: Steve Richardson, Parks and Recreation Director, presented a request for $296,670 to fund design and engineering documents for two proposed trailheads (Cyprus and Granite Dells) within the Payson Area Trail System. The funds are already allocated in the current budget. The project aims to alleviate congestion at the Phoenix Street trailhead and boost tourism. Rebecca Davidson of the National Forest Foundation explained that the foundation would manage the contract and oversee the work. Public comments from Joel Mona, Anna Van Zile (Rim Country Trail Fund), and Zachary Wilson expressed strong support. Motion to approve Option One – entering into an agreement with the National Forest Foundation – carried 7-0. - H.3 – Lead and Copper Rule Revision: Tanner Henry presented a request for debt authorization up to $500,000 to apply for a forgivable loan through the Water Infrastructure Finance Authority (WIFA). The town must inventory 1,330 service lines of unknown material by November 2027 to comply with EPA regulations. WIFA would provide a forgivable principal loan of $250,000 plus 70% of costs above $250,000. The town currently has no confirmed lead service lines. Motion carried 7-0. Key Outcomes - Consent Agenda (items B.1, B.2, B.3, B.5, B.6) approved 7-0. - B.4 – Library Service Agreement approved 4-3. - H.1 – Reallocation of $81,600 approved 7-0. - H.2 – Boulders Trailhead funding ($296,670) and agreement with National Forest Foundation approved 7-0. - H.3 – Debt authorization up to $500,000 approved 7-0. - The council voted 7-0 to move into executive session for items H.4 (Payson Golf Course Development Agreement), H.5 (open meeting law complaint), H.6 (Town Manager interview process), and H.7 (PFAS litigation). No action was taken after executive session. - The meeting recessed at approximately 6:13 p.m. for executive session and reconvened at 8:33 p.m., then adjourned.

The Payson Town Council held a special meeting on May 28, 2025, to discuss and take possible action on Resolution No. 3451, which sets the tentative budget and establishes the expenditure limitation for Fiscal Year 2025-2026. The meeting began at 3:04 p.m. and adjourned at approximately 3:51 p.m. Council approved the resolution by a 6-1 vote. Discussion Items - Budget Overview: Finance Director Dana Ohanesian presented the proposed tentative budget totaling $94,907,924, balanced across all funds. The general fund is projected at $44 million, water enterprise fund at $29.8 million, HERF (Highway and Emergency Road Fund) at $11.2 million, and other special revenue funds. Key revenues include $720,000 in property tax, $34 million in fund balance, and approximately $60 million in other revenues. 76% of general fund revenues come from taxes (state sales tax, shared income tax, TPT, gas tax). - General Fund Changes: The general fund contingency line was reduced from $1 million to $500,000. No transfers to the capital improvement fund, HERF, or capital replacement fund were included. Departments were directed to maintain operational budgets at FY24-25 levels. A placeholder of $8.5 million in central services was added for possible capital projects or PRS payments. - HERF Fund: Budgeted at $11.2 million, with $5.4 million in current fund balance used. Capital projects include $1 million for pavement preservation, $1.6 million for the Longhorn-McLean roundabout, $5 million for B-line bus route improvements, and $800,000 for Wilson Court road (affordable housing project). Revenues decreased by $10 million compared to FY24-25 due to no general fund transfer. - Water Enterprise Fund: Budgeted at $29.8 million, using $17 million in fund balance. Significant capital projects include the Hillcrest water tank (construction expected to carry into FY26), automated meter reading project (with a $1.5 million WIFA grant), and $4.6 million in other capital expenditures. A new billing clerk position was added. - Capital Projects Fund (401): Includes $1.5 million placeholder for event center improvements (based on May 6 work session consensus), $400,000 for a PATS project, and smaller rollovers for network upgrades and council chamber AV updates. Acting Town Manager Sheila DeSchaaf clarified that placeholders preserve the ability to spend if council approves later; they do not authorize expenditures. - IT and Software Licensing Costs: Council discussed annual software licensing costs totaling approximately $1 million, including $700,000 for general government renewals and $239,000 for public safety. - Capital Replacement Fund (402): Contains $1.3 million for a new public safety radio system, plus funding for a previously ordered fire truck (delivery expected December 2027). - PFAS Settlement: A generous placeholder for potential PFOS/PFAS settlement money was placed in the general fund as unrestricted revenue. Council member Ferris questioned why it was not in the water fund, given potential water treatment needs; staff noted that general fund dollars can be used for water purposes but not vice versa. - Council Comments: Council Member Dallin Haws urged cutting general fund expenditures and ensuring the 1% sales tax increase is applied to capital projects appropriately. Council Member Scott Nossek commended staff for their work. Council Member Brett Flaherty criticized the $94.9 million ceiling as too high given past criticism of budgets over $70 million, and he voted against the resolution. Key Outcomes - Motion and Vote: Council Member Dallin Haws moved to approve Resolution No. 3451, seconded by Council Member Scott Nossek. The motion carried 6-1, with Council Member Brett Flaherty voting no. Mayor Stephen Otto, Vice Mayor Suzy Tubbs, and Council Members Nossek, Ferris, Bell, and Haws voted yes. - Next Steps: A work session is scheduled for June 3, 2025, to refine the tentative budget, with final adoption planned for June 25, 2025. Council may reduce the budget but cannot increase it beyond this tentative cap. The budget will be published as the "Expenditure Limitation and Tentative Budget" in the newspaper.

The Payson Town Council held a regular meeting on May 14, 2025, at 4:05 p.m. in the Town Hall Council Chambers. The meeting lasted until approximately 10:19 p.m. and covered a wide range of topics including proclamations, public comments, fee schedules, zoning changes, wildfire structure hardening, airport hangar management, and aquatic center location selection. Council members present: Mayor Stephen Otto, Council Members Charlie Bell, Jim Ferris, Brett Flaherty, Dallin Haws, Scott Nossek, and Vice Mayor Susan "Suzy" Tubbs (joined via Zoom at 5:02 p.m.). Ceremonial; Announcements; Presentations; Introductions - D.1 Proclamation declaring May 2025 as Older Americans Month, accepted by Janice Chesser of Payson Senior Center. She reported on upcoming activities including a talent show, lunch for 90, senior prom, and annual meeting; membership is $15/year for individuals 50 and finer. - D.2 Proclamation recognizing May as Payson Adventure Month, accepted by Doni Wilbanks, Steve Richardson, and Julie Leonard. A promotional video has received over 506,000 views. - D.3 Proclamation declaring May 12-17, 2025 as Payson Western Wear Days, accepted by the Payson Pro Rodeo Committee. 267 contestants expected at the Gary Hardt Memorial Spring Rodeo (May 15-17). - D.4 Proclamation declaring May 18-24, 2025 as Emergency Medical Services Week, accepted by Fire Chief David Staub, Battalion Chief Dan Bramble, and fire department members. Chief Staub recognized Shelley Henry for her contributions as Prehospital Coordinator. - D.5 Proclamation designating May 11-17, 2025 as National Police Week, accepted by Police Commanders Jesse Davies and Joshua Haines, and Officer Kevin Ruch on behalf of the Payson Police Department. Consent Calendar - B.1 Approved minutes from March 26, April 1, April 9, April 23, and May 8, 2025. - B.2 Resolution No. 3442: Agreement with Payson Senior Center, Inc. for disbursement of public purpose funds. - B.3 Resolution No. 3444: Amendment to intergovernmental agreement with Gila County for consolidated court services. - B.4 Resolution No. 3445: Agreement with Humane Society of Central Arizona, Inc. for FY 2025-2026. - B.5 Resolution No. 3446: Monetary support for the Mogollon Valley Pit Program (Blattner Brush Pit). - All items were approved by a single motion, passed 7-0. Public Comments & Testimony Numerous residents spoke during the Call to the Public and during public hearings. Key themes: - Aquatic Center: Many speakers advocated for the Malibu site (Roy Sandoval, Tom Dunning, Anna Van Zile, Deb Jones) citing better access, new construction, earlier completion date, and cheaper long-term maintenance. Others supported renovation of Taylor Pool (Inga Chouinard questioned figures and requested hard numbers; Lori Thompson argued renovation could be done for under $6 million and noted the school district prefers Rumsey). Barbara Underwood emphasized need for covered year-round pool with zero-entry access. - Airport/Hangar One: Several speakers expressed concerns about proposed changes. Rodney Tang and Brad Lawrence highlighted aviation community contributions (scholarships, educational programs) and called for open dialogue. Dale Mueller cautioned against using tracking systems for landing fees. Adam Moore opposed exclusive rights for a private LLC to manage town-owned hangars, alleging cronyism. Christopher Giavarini urged FAA-funded FBO status and improvements. Tom West and Mike White (representing Payson Hangar One LLC) argued for continued management to keep costs low and maintain volunteer efforts. Marjie Oldenkamp advocated for an open RFP process. - Fees: Tom West opposed new fees for flight instructors and runway incursions, citing financial hardship for students. Margie Oldenkamp opposed fees for the courtesy car. Lori Permenter raised concerns about water deposit increases causing hardship. - Wildfire Structure Hardening: Bob Decker and Alan MacKay (RimWAT) supported the code, referencing recent wildfires. Kevin Sokol (builder) expressed concerns about cost increases of $10,000-$20,000 per home and urged communication with builders. - Miscellaneous: Charlie Seraphin criticized sidewalk replacement on Airport Road as unnecessary and urged fiscal responsibility. Discussion Items - E.1 Public Hearing on Occupational Licensing: Town Clerk Tracie Bailey and Town Attorney Robert Wingo presented the requirement to continue existing licenses (peddlers, solicitors, mobile merchants, second-hand dealers) under state law. Public comment included questions about photo IDs and enforcement. Council voted unanimously to continue the licenses. - F.1 Second Public Hearing on Fee Schedule (Resolution 3438): Finance Director Dana Ohanesian reviewed proposed fees. An error was corrected: Type 2/3 helicopter fee should be $0 for FY 2024-2025, increasing to $10/night. The airport commission requested elimination of the flight instructor fee. Discussion included concern about water deposits and other fees. Motion to approve with modification (zero fee for flight instructors) passed 6-1 (Council Member Bell dissenting). - F.2 Second Public Hearing on Rezoning (Ordinance 969): Planner Nicole Adams presented rezoning 7.66 acres at 1500 E Frontier Street from R1-175 to R1-90 for a 5-lot subdivision. The Planning and Zoning Commission recommended approval (6-0). No public comments. Motion to approve passed 7-0. - F.3 Second Public Hearing on Wildfire Structure Hardening Code (Ordinance 970): Fuels Manager Kevin McCully presented the code applying to new structures and substantial remodels. Builder Kevin Sokol expressed concerns about cost impacts ($10,000-$20,000 per home) and lack of clarity in dimensions. Council discussed compromise. Several members favored additional outreach to contractors. Council directed staff to engage with the development community and return with refinements. - G.1 Presentation by Payson Hangar One LLC: Tom Thompson, Mike White, and Tom West presented arguments for a new 20-year lease, citing cost savings, volunteer maintenance, and FAA grant compliance. They argued hangar doors are repairable (structural engineer report) and that an RFP is unnecessary. Town Attorney Wingo stated the current lease is deficient and that an RFP would best meet FAA requirements. - G.2 Council Decision Request to Assume Hangar One Management: Airport Coordinator Dennis Dueker presented concerns about liability, FAA grant assurances (especially non-discrimination), and the condition of hangar doors. He recommended town takeover with standardized one-year leases. After discussion, a motion to approve town management within 30 days and not renew the ground lease with PHO LLC passed 6-1 (Mayor Otto dissenting, citing lack of faith in town's ability to maintain assets). - G.3 Council Decision Request on Aquatic Center Location: Rod Buchanan presented a high-level assessment of five options at Taylor Pool/Rumsey Park and Malibu site. Key differences: Malibu offers earlier completion (March 2027 vs. January 2028), new infrastructure, and room for expansion, but costs approximately $700,000 more for like-for-like. Parking costs were estimated at $1 million. Council debated tradeoffs, funding (potential GO bond), and community input. Motion to approve Option 5 at the Malibu location and authorize up to $1.48 million for construction documents and pre-construction services passed 4-3 (Mayor Otto, Council Members Bell and Ferris dissenting). Key Outcomes - Consent Agenda: Approved 7-0. - Occupational Licensing: Continued existing licenses (motion carried 7-0). - Fee Schedule (Resolution 3438): Approved with modification eliminating flight instructor fee for FY 2025-2026 (6-1; Bell no). - Rezoning (Ordinance 969): Approved 7-0. - Wildfire Structure Hardening (Ordinance 970): Direction given to staff to conduct additional outreach with builders and bring back refined code; no final vote. - Hangar One Management (Council Decision Request): Council approved town assuming management within 30 days, not renewing ground lease, and freezing tenants for 30 days (6-1; Otto no). - Aquatic Center: Council selected Option 5 at the Malibu location and authorized up to $1.48 million for construction documents and pre-construction services (4-3; Otto, Bell, Ferris no).