Payson sued over $70 million bond sale

(The Center Square) – The Town of Payson is being sued over a $70 million emergency bond measure being approved without a public vote.

The Goldwater Institute and Payson resident Deborah Rose argue that the emergency clause in the bond measure was unnecessary and did not give residents a chance to vote on it, and are asking for a temporary restraining order in the Gila County Superior Court.

“The immediate operation of the provisions of this Resolution is necessary for the preservation of the public peace, health and safety, particularly to immediately sell the Obligations to secure the best, available economic terms therefor, and an emergency is hereby declared to exist, and this Resolution will be in full force and effect from and after its passage by the Council and it is hereby excepted from the referendum provisions of the Constitution and laws of the State of Arizona,” the resolution for the sale states.

However, Goldwater Institute Attorney John Thorpe said in a statement that the town has no reason to be in a time of emergency.

“Government officials’ efforts to time the market, based on pure speculation about financial trends, is not an ‘emergency,’” Goldwater Institute Attorney John Thorpe said in a statement.

The complaint doubles down on the argument there was no adequate justification for an emergency clause.

“No statements during the August 21, 2024 Town Council meeting or in the text of Resolution 3409 provide any other justification for the emergency clause besides the desire to obtain slightly more favorable bond terms based on speculation that interest rates might slightly increase in the coming months,” the document states.

The Center Square contacted the town for comment, but it did not respond in time for publication. According to Payson Roundup , the bond sale passed by the town council 6-1 in August is meant for infrastructure purposes in the town and is supported by a penny sales tax uptick.

“There’s going to be decisions between now and December that we make that might not be approved by the incoming councilmembers or residents in the community, but we’re going to continue to make decisions,” Mayor Chris Higgins, who voted for the bond sale, said during the town council meeting before the vote occurred, noting there will be some change in leadership in the town in 2025. “But this is a major, major decision.”