The Payson City Council approved a $76 million tentative budget for the 2022-2023 fiscal year, up about $6 million from last year’s budget.

All utility costs except sewer and pressurized irrigation are increasing 7% next fiscal year.

If the tentative budget gets approved, a 35% increase to sewer rates will begin accruing funds to pay for the city’s sewer project, according to Finance Director Cathy Jensen.

“We are mandated to upgrade the sewer department to deal with the phosphorus and some of the other minerals the state is making us treat for that goes in Utah Lake,” said City Manager David Tuckett. “We have had several council meetings on it and the costs have skyrocket. The supply chain is out there but we are close on finishing the design. We are closing on the Utah State loan for $14.5 million this week. The other $40 million must be on the market.”

Changes to the sewer department reflect the bonding and pre-payment of equipment, he added.

According to Jensen, the average increase for all utilities will be approximately $23 for the average user. Employees can also expect a 6% market adjustment to wages while health insurance premiums have increased by 2%.

Also included in the budget is money to hire an administration worker, police patrolman, recreational maintenance person, golf assistant, fire marshal, inspector/plans examiner and new library assistant. Other positions were requested, but not approved for the $21 million general fund. The general fund is approximately $3 million lower than last year.

“The general fund in Payson is unique,” said Jensen. “There are several funds and self-balancing accounts that are rolled into it for the audit.

Jensen added that this year’s budget was lower due to several projects — specifically, an $8.4 million downtown project. Jensen said the city received a $5 million Community Development Block Grant from the state while the remaining balance will be covered through the general fund.

The electric power fund was set to $17 million.

“It costs the city $8.5 million annually for purchased electricity,” she said. “Every month we write a check Utah Associated Municipal Power Systems and several other places, so it’s just a big budget number. One of the concerns we have is just to keep getting electricity purchased on the market.

More meetings will occur to discuss the tentative budget before a final version has to be approved by June 30.

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