Payson officials holding onto business 'gap' funds

PAYSON — City officials continue to sit on funds that historically have been set aside to give local businesses a boost.

In April, the Payson City Council shifted the revolving loan fund from business use to city use with about $192,000 remaining from a budget of $300,000. Prior to shifting the funds to internal use, the City Council rejected a request from a local printer for financial help. Two companies still owe money to the fund, but city officials said the loans would be repaid, although one company quit paying in May.

The city can now use the funds to improve city ventures, such as the Glandstan Golf Course, city dump, sewer or other projects normally covered by an enterprise fund, said city manager Richard Nelson. Thus far, the city hasn't used the fund, Nelson said.

The business "gap fund" began in 1983 as a grant of $100,000 to assist local businesses, but now the obligation to use those funds to help businesses has expired, officials say.

— Rodger L. Hardy