Payson Development News

Payson City Council Approves FY 2026-2027 Budget of Over $126 Million, Includes Employee Raises and Capital Projects

The council discussed and approved the fiscal year 2026-2027 budget, including a certified tax rate of 0.001277, which is slightly lower than the previous year. Proposed budget adjustments included allocations for planning and development services wages, RDA business park road overlay, a donation to the Children's Justice Center, Memorial Park playground improvements, sewer department adjustments, Communities That Care revenue, HVAC system rollover, streets department sidewalk data entry, and updates to projections and indirect services. The overall proposed budget for fiscal year 2027 is $126,573,786. The council also approved a 2.7% cost of living adjustment and up to a 1.3% merit increase for employees, totaling a potential 4% increase. Several departments had funding requests approved, including new positions like a police officer, EMTs, a water employee, a public information officer, a GIS position, and a streets department employee for data entry. The budget also includes allocations for a four-bay bond from the general fund to the water department for lead and copper lateral replacements, design for the Main Street CUP project, and various capital improvements funded through park taxes and general fund transfers. Enterprise funds for water, solid waste, electric power plant, sewer plant, ambulance, golf, and storm drain also had their budgets reviewed and adjusted. The electric power plant will not have a straight utility increase, and payments for UAMPS operational billing will be covered by a general fund transfer. The sewer plant continues construction, with approximately 64% of operational revenue going to debt service due to the large sewer project. The ambulance department is at capacity, with plans for future equipment, employees, and a fire station. The golf fund is undergoing construction for a par-3 course, and the storm drain fund focuses on EPA regulations. Internal service funds for vehicle maintenance and IT were also detailed. A revolving loan fund is in place for equipment and vehicle financing. The park tax fund saw an increase due to Memorial Park playground improvements. The general fund revenues are steady with sales tax, though building permit revenue is down. A motion to adopt the fiscal year 2026-2027 budget, with amendments requiring further council review for the HVAC system and the motocross study, was approved.