Payson authorizes up to $6.4 million in sales tax bonds for a fire station
On Sept. 16, the City Council voted 5-0 to authorize up to $6.4 million in sales tax revenue bonds for a fire station. Staff said soil conditions added about $1 million to the project, and the city's bond notice estimates $10.1 million in total debt service if the bonds are held to maturity.
Continuing story: Auditing Payson
The Payson City Council voted 5-0 on Sept. 16, 2026 to approve a resolution authorizing "not more than $6,400,000 aggregate principal amount of Sales Tax Revenue Bonds, Series 2026" for a fire station. Councilmember Ryan Rowley made the motion and Councilmember Lacee Smith seconded it. Mayor William Wright was excused. [1]
David Tuckett said the property tax increase adopted two years ago "will provide funding for the bond payments for the fire station," according to the minutes, which say sales tax revenue provides additional backing for the bonds. [1]
Brian Baker estimated the interest rate would be approximately 4.5% to 4.75%. Councilmember Brian Hulet said funds have already been saved to cover approximately half of the station's cost. [1]
Soil conditions
Robert Mills said the site's geotechnical analysis "identified higher-than-normal liquefaction concerns," requiring deeper drilling, and that the solution "increased the project cost by approximately $1 million," according to the minutes. [1]
The bond notice
The city's Sept. 17 notice says the bonds may run no more than 20 years, carry no more than 6.00% interest and sell for no less than 97% of principal, and are payable from local sales and use tax revenues. [2]
The notice lists $0 in currently outstanding bonds secured by those revenues and estimates total debt service of $10,135,700 if the bonds are held to maturity. It set a public hearing for Oct. 7, 2026. [2]
These are maximums and estimates. The records reviewed do not show whether the bonds have been sold, or their final amount and interest rate.
The approved minutes label the bond resolution "Resolution 06-15-2026-A," a number that does not match the meeting date; the other resolutions that night are numbered 09-16-2026. The $1 million figure is a staff estimate recorded in the minutes, not an audited change-order total.
Sources
- Payson City Council · Sept. 16, 2026 minutes (approved Oct. 7, 2026)
- Payson City · Notice of public hearing and bonds to be issued, Sales Tax Revenue Bonds, Series 2026 (Sept. 17, 2026)
Reporting by The Utah Ledger from the public records above. AI-assisted, checked against those records.