Payson Town Council members confronted a significant financial challenge during their recent meeting, revealing an unfunded liability of approximately $19 million in the town's Public Safety Personnel Retirement System (PSPRS). The current actuarial evaluation shows that Payson’s assets total around $28.2 million, while liabilities soar to $47.2 million, highlighting a stark gap that has raised concerns among council members.

The breakdown indicates that the police department's liabilities stand at $24 million, leading to an unfunded liability of $11 million. Meanwhile, the fire department's liabilities are reported at $22.7 million, resulting in an unfunded liability of $7.8 million. This financial strain has prompted discussions about the town's fiscal strategy moving forward.

One council member expressed strong opposition to the proposed fiscal year 2025-2026 PSPRS budget, citing a history of increasing payments without a corresponding decrease in liabilities. "We've been paying this amount... and we've been slipping backwards," they stated, emphasizing the need for a new approach to manage the town's financial obligations. The council member suggested that a target of zero arrearage would be ideal, as the current situation incurs a 7.5% interest on outstanding liabilities.

As the council deliberates on this pressing issue, the implications of these financial challenges could significantly impact Payson's budget and public safety funding in the years to come. The council's next steps will be crucial in determining how they address this growing liability and ensure the town's financial health.