The town council and town staff should forgo the issuance of revenue bonds for construction of hangars at the airport for the following reasons:
1. The $400,000 price tag is excessive for the proposed buildings.
2. Interest payments over the term of the bonds will be over $170,000.
3. It will take approximately eight years before the town sees any revenue from the hangars.
4. The majority of taxpayers receive little direct benefit from the airport, and therefore, should not be burdened by the debt.
5. There are other methods of finance which would not cost taxpayers a single dollar, yet allow cash flow to the town immediately.
Instead, the town council should put out a competitive bid proposal to private individuals who might wish to finance the construction of the hangars. This would allow the town to receive a percentage of the rental income without the need to incur debt. Usually, contracts of this sort have the municipalities taking over full ownership of the buildings and 100% of the revenue after a period of years. In addition, maintenance and day-to-day operation of the hangars would not be an expense to the town for a long time to come. Many municipalities across the country use this method of finance to acquire needed airport buildings.
The questions begs to be asked, why are the town council and staff so intent on burdening the taxpayers of Payson with more debt when it is not absolutely necessary? And, why the need to go to such nefarious extremes as invoking an emergency clause in order to circumvent taxpayer oversight in the issuance of bonds?
By their actions, it's clear that the town hierarchy has an agenda unto itself. Unfortunately, their agenda disregards the rights and wishes of the people they purport to serve.
Bill Fork, Payson