Payson may have to repay a regional grant for a downtown building; its budget plan lists $500,400
Payson's fiscal 2025 audit disclosed that Mountainland Association of Governments told the city a grant's purpose, buying a downtown building, had not been met. The tentative fiscal 2027 budget lists a $500,400 repayment to MAG, to be paid when the building sells.
Continuing story: Auditing Payson
Payson's audited fiscal 2025 financial report discloses that the city may have to repay a grant it received from Mountainland Association of Governments to buy a downtown building. [1]
In its subsequent-events note, the audit says the city was notified by MAG that "because the identified purpose in a grant from MAG, to purchase a downtown building has not been met," Payson "may be responsible for re-paying the grant." [1]
The note says the final amount of the repayment was not known and that the city intended to make adjustments to minimize it, "including possibly selling the downtown building." The audit report is dated Dec. 3, 2025. [1]
The budget line
The tentative fiscal 2027 budget Finance Director Cathy Jensen presented at an April 29, 2026 work session includes a Revolving Loan Fund list titled "Revolving Loan Fund Requested-Funded." It lists "Downtown re-payment to MAG" at $500,400, marked as funded, with the note "Will Re-pay when the building sells." [2]
The work session minutes themselves do not discuss the item. [2] The council adopted the fiscal 2027 budget on June 17, 2026. [3]
The records reviewed do not identify the building, the grant's original amount or terms, or MAG's final repayment demand, and do not show that the building has been sold or that any repayment has been made.
The $500,400 is a figure in a tentative budget presentation, not a record of payment or of MAG's final demand.
Sources
- Payson City · FY2025 Annual Comprehensive Financial Report (Larson & Company, Dec. 3, 2025), Note 17
- Payson City Council · April 29, 2026 work session minutes and tentative budget presentation
- Payson City Council · June 17, 2026 minutes (approved July 1, 2026)
Reporting by The Utah Ledger from the public records above. AI-assisted, checked against those records.