Words Matter – Playing by the Rules

Resolution 3423 was passed, stopping the $70m bond issuance.  There was limited discussion before the passage.  The entire three-hour thirty-minute video may be found on the Town of Payson website.  To save you some pain, we have taken excerpts.  Town Manager Mr. Troy Smith had some harsh words for incoming Mayor Otto.

Payson Town Manager, Mr. Troy Smith, lectures the group on the importance of words.

A review of that statement was best summed up by resident Mr. Craig Howard.

Interesting statement from Troy at the council meeting … “words matter,” “choices matter.”  There was a posting by someone stating that “Eve didn’t listen to the serpent because he was a good speaker; Eve listened because the serpent said things she wanted to hear.”
When Stifel presented the bond as an emergency clause, they stated that it was to help them to time the market … that was a red flag right there; if Stifel can time the interest rates, then they will be working for the Pimco fund, not pushing municipal bonds … but the Council wanted to hear that.
When the YMCA project was voted down, which came down to the town leasing part of Rumsey Park without resident vote … they didn’t want to hear that.
When there was a resident referendum for 401/402, which came down to the residents wanting to have a voice … they didn’t want to hear that.
When there was an overwhelming chorus from residents about the emergency clause misuse, even after they lost an election from that, they didn’t want to hear that.
When the residents stated that the aquatic center was the big elephant in the room and it should be separated from the other ones they didn’t want to hear that.  The Council heard what it wanted to hear and lost literally everything because of it.
When Eve heard what she wanted to hear, she lost everything too.

We suspect Mr. Smith may have difficulty adjusting to the new Council.  Perhaps an appropriate welcome would be to reduce his signature authority to $25,000.00.  Beyond that, we would be surprised if the new Council continues with his services.  We do know of an excellent local realtor, Deborah Rose of Realty One Group.

The statements by Councilmember Flaherty were more striking.

Council Member Mr. Brett Flaherty explains if you disagree, you are a toddler.

He stated that those opposed to the bond or aquatic center were akin to toddlers throwing tantrums.  That is an odd thing to call you constituents.  Beyond that, Mr. Flaherty believed they “played by the rules.” We recall playing by the rules with Proposition 401 and 402.  The propositions were repealed.  We recall the Town’s own surveys stated “no option” on an Aquatic Center.  We would think the rules dictate taking into account all information.  Mr. Flaherty discounted the election results, stating that the election did not fully represent the population.  His thoughts represented many who could or did not vote.  We suspect the rules dictate the vote is what matters.  Despite the actual vote, the nebulous reference to citizens’ will does not appear to be playing by the rules.  We recall that rules dictate honoring democracy, not circumventing it using an emergency declaration.

Perhaps we have different rule books?  To his credit, Mr. Flaherty acknowledged the costs. “Millions of dollars.”

Transparent Payson has never been against a community/aquatic center.

DO NOT put the cart before the horse. Get voter buy-in before spending millions.

Here is the caveat.  Put the horse before the cart.  That is, ask the citizens for the funding FIRST.  Put it to a vote.  If fifty percent plus one vote say that additional taxes are a good idea, then build the Aquatic Center.  Rules in a democracy dictate you not to forget the role of the governed or the role of the taxed.  We think Payson’s debt should have been placed before the voters.  It’s not a radical idea. 

Council Member Underwood apologized to the staff who worked for years on the project.  Another Payson adventure shelved.  We wonder if that staff time could have been better spent.

An item of note is found in the Staff Report prepared by Mr. Smith.

FINANCIAL IMPACT AND FUNDING SOURCE:

The financial consequences associated with this action are significant and likely will not be realized for many years.  In addition to the hard costs associated with land purchases, design, staff time, consultant fees, and legal expenses, the current environment has caused the divestment of up to $70 million of investment in the community (Payson).

The Town Council spent money in antipation of receiving the bond.  That money was spent long before the authorization of the bond.  It seems the deal was done long before Resolution 3409 was passed.  Resolution 3359, discussed in our post, Damn the Torpedoes, allowed for reimbursement of monies spent in anticipation of the bond proceeds.

We stated:

The Payson debt bomb passing was almost necessary.  As a practical matter the Town has made obligations and has spent money of late that force passing the bond.  The bond allows reimbursement of previously incurred general fund expenses, including land east of the Town complex, professional fees, and land at the rodeo grounds.  That information, excluding costs, can be found in Resolution 3359.  The total reimbursement is not yet known.  For this example, we will assume $7m.

Now, the Town doesn’t have access to the anticipated funds.  The shortfall will need to be addressed.  We are researching anticipated unwind costs.  Rest assured, the 1% sales tax/TPT is here to stay for a bit. 

The current Town Council continues to spend money they don’t have.  The staff Report of Resolution 3421, addressing Green Valley II housing development, makes that clear.

Estimated Construction Cost

As of October 14, the total cost of the roadway improvements is estimated to be approximately $2.3 million with the Town’s share anticipated to be no more than 50% of the total project cost.  Prior to final completion of the design, additional value engineering efforts will occur in order to identify potential cost savings.  In addition, other projects being constructed by Payson may generate surplus excavated materials that could be used on this project as fill, further reducing anticipated earthwork costs.

Funding

Funding for this project is not included in the current fiscal year budget.  If Council desires to move forward with this development agreement, sufficient funds will need to be budgeted within the FY 25-26 budget to cover the potential expenses.

The surplus excavation materials?  We suspect that it was from the American Gulch project.  Without the bond, and given the agreements made by the Town of Payson with Green Valley II, that project has vaulted to the top of all others.

Paying for the millions of dollars spent because the cart was put before the horse?

The 1% sales /TPT tax stays for a bit.

 

Staff Report from Resolution 3421.

Staff_Report_-_Res_3421_Development_Agreement(2)
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