This week, a lawsuit was filed against the Town of Payson over the approval of a $70 million emergency bond measure without a public vote.
The Goldwater Institute filed the lawsuit on behalf of Payson resident, Deborah Rose, arguing that the emergency clause in the bond measure was unnecessary and did not give residents a chance to vote on it.
The Goldwater Institute is asking a Gila County Superior Court judge for a temporary restraining order in the case.
The Goldwater Institute says the town misapplied the law to create a loophole preventing citizens from challenging the bond measure that will put taxpayers in debt for 25 years.
“Our leaders want our money, but not our vote,” Deborah says. “They’re trying to take advantage of legal loopholes to saddle their own constituents with tens of millions of dollars of debt, systematically stripping power from the people by ignoring laws and twisting their truths.”
Under the pretext of an “emergency,” the Payson Town Council voted last month to take on $70 million in bonds without letting residents weigh in via referendum. That violates the Arizona Constitution, argues Goldwater.
Goldwater is asking for an injunction and for the court to declare the measure unlawful and void, and to order the Town Council not to pass such a measure without giving Payson voters the opportunity to exercise their constitutional right to organize a referendum and vote on it.
When the council approved the bond measure, it slipped in an “emergency clause,” stating that the measure would go into effect immediately, without letting residents who might oppose the measure organize a referendum and put the issue to a vote.
The Goldwater Institute argues:
The “so-called “emergency” here is nothing more than town officials’ apparent belief that interest rates might rise in coming months, and that they’ll secure slightly better municipal bond terms now than they could in 30 days if they gave residents the opportunity to organize a referendum.
But government officials’ efforts to time the market, based on pure speculation about financial trends, is not an “emergency.” And it certainly doesn’t justify bypassing the democratic process and imposing $70 million of debt on Payson residents without giving them a say in the matter.
The referendum process is meant to ensure Arizonans have a voice in their government, and a say in decisions that affect them. The government can’t abuse its emergency powers to pass bond measures without democratic accountability.
