A conservative think tank called the Goldwater Institute is suing the city of Payson, Arizona, for allegedly illegally borrowing $70 million to use on pet projects. According to the suit, the city is covering up its illegal move by characterizing it as an “emergency” fiscal response.
The city borrowed money through a $70 million bond (taxpayers will eventually have to pay off the loan) it called an emergency measure. The Goldwater Institute says Payson did this specifically to stop city residents from having time to organize any opposition or to file a referendum against the borrowing. The institute said “that’s illegal,” and it’s asking the court for “immediate relief” through a restraining order and an injunction that would prevent the bond sale before it is completed.
According to the suit, city leaders used an exemption in the law to take on the debt. This exemption allows for “emergency” moves when a government has to act quickly to save lives, keep the peace, or ensure public safety. But the Goldwater Institute said there was no such emergency in Payson. Instead, the city tried to “bypass democratic action,” and deprived citizens of their right under state law to organize a referendum opposing it. The town simply is not allowed to take on $70 million in debt and place that on the backs of taxpayers without giving them any say in the matter, according to the Goldwater Institute.
To pay the debt back, citizens would have to fork over another half penny in sales tax, for who knows how long.
Indeed, Payson’s defense of its actions seems weak. The town released a statement saying it would defend its actions. The statement seemed to affect an outraged tone, saying that courts are not allowed to interfere with a government decision “with an emergency clause.” This seems to indicate the town believes courts have no jurisdiction over its actions; it remains to be seen whether the court will agree.
One Payson elected official even justified the emergency by pointing to a municipal swimming pool in need of repair. What about this is an emergency? According to Joel Mona, local children can’t get swimming lessons with a closed pool, and since drowning is a leading cause of death for children, “that checks the box for safety.”
