Auditing Payson
The Ledger's review of Payson's budgets, audits, debt and redevelopment money. Every story in the series, sorted by subject, with the figures the records show and links to the official documents.
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Auditing Payson: what the city's audit and budget records show
A records-only look at Payson's general fund, debt, audit results and fiscal 2027 budget, drawn from the city's audited fiscal 2025 financial report, council minutes and budget presentation.
Read the explainer →Key figures
- $8,005,193General fund balance, June 30, 2025Auditing Payson: what the city's audit and budget records show →
- $77,024,000Bonds outstanding, June 30, 2025Auditing Payson: what the city's audit and budget records show →
- $500,400Tentative FY2027 budget line for repaying MAG grantPayson may have to repay a regional grant for a downtown building; its budget plan lists $500,400 →
- $6.4 millionMaximum fire station sales tax bonds authorizedPayson authorizes up to $6.4 million in sales tax bonds for a fire station →
- $10,135,700Estimated total fire station bond debt service at maturityPayson authorizes up to $6.4 million in sales tax bonds for a fire station →
- $5 millionAdditional sewer revenue bonds authorized May 6, 2026Payson's sewer plant: $5 million more in bonds, a 64% debt share and an audit coverage figure The Ledger could not reproduce →
- $700,000HVAC project the budget held for further reviewPayson's council attached conditions to $700,000 for HVAC and $80,000 for a motocross study →
Debt and bonds
Payson's sewer plant: $5 million more in bonds, a 64% debt share and an audit coverage figure The Ledger could not reproduce
Payson authorized up to $5 million in sewer revenue bonds in May to complete its sewer plant. Finance staff said about 64% of sewer operating revenue goes to debt service, and the audit's sewer coverage ratio for fiscal 2025 doesn't match the figures printed beside it.
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.
Budgets, reserves and taxes
Payson's council attached conditions to $700,000 for HVAC and $80,000 for a motocross study
Payson adopted its fiscal 2027 budget 4-1 on June 17, on the condition that a $700,000 HVAC project and an $80,000 motocross study get further review before money is spent. In September, after the air conditioning stopped working, the council told staff to proceed with the repair using budgeted funds.
Subsidies
Payson's audit describes two tax-rebate agreements: 100 & Main and Parris RV
Payson's fiscal 2025 audit describes two economic development agreements that rebate sales and property taxes: one with 100 & Main, LLC capped at $391,968 or 20 years, and one with Parris RV capped at $1 million.
Contracts and spending
Payson approves reimbursement agreements with Red Bridge district and a Hiatt Creek developer
On Sept. 16, the council voted 5-0 to authorize reimbursement agreements with Red Bridge Public Infrastructure District No. 1, for an upsized sewer line and drinking water and well house work, and with WHL HIATT, LLC for Hiatt Creek Plat B Phase 2. A culvert has not been installed and may be added later by amendment.
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.
Audits and compliance
Payson's auditor found cash accounts missing from a required deposit report
The fiscal 2025 state compliance audit found that not all of Payson's cash accounts were reported on the deposit and investment report state law requires the treasurer to file. The city says it corrected the problem before the audit was issued.