PAYSON, Ariz. — A Payson resident claims the town is improperly obtaining bond funding for capital projects by not allowing voters the chance to challenge the measure.
The Goldwater Institute announced Wednesday it was assisting Deborah Rose in taking legal action against the town by making the argument that town officials used a "loophole" to violate the constitutional rights of its citizens.
When the town council passed a resolution last month to authorize the sale of $70 million in bonds, it did so under an "emergency clause," which exempts the resolution from being subject to a voter referendum.
Arizona law states an "emergency clause" can be used "for the immediate preservation of the peace, health or safety of the city or town."
According to the lawsuit, Payson officials offered no information explaining why the emergency clause was necessary aside from the prospect of being able to obtain more "favorable interest rates."
Records show Payson officials appeared to be interested in issuing the bonds sooner rather than later.
"The Town may benefit from issuing in early September to get ahead of the expected increased supply and competing sales because investors may be willing to pay higher prices (lower rates) when there are less bonds available," town documents state.
The bond money is expected to finance upgrading the town's facilities and the construction of a possible community center, according to the Payson Roundup.
The Goldwater Institute is asking the courts to issue a preliminary injunction to stop the measure, as well as order Payson to not to pass measures without giving local voters the chance to organize a referendum and vote on it.
