Goldwater Institute Takes Legal Action Against Payson Over Controversial Bond Measure “Emergency Clause”

By Matthew Holloway |

The recent decision by the Payson Town Council to take on $70 million in debt through a bond measure—approved without a public vote—has sparked a lawsuit from residents, aided by the Goldwater Institute. The legal effort, led by resident Deborah Rose, aims to contest the council’s assertion that an “emergency” justifies circumventing public input.

John Thorpe, an attorney with the Goldwater Institute, expressed strong concerns about the council’s approach. “Our leaders want our money, but not our vote. They’re trying to take advantage of legal loopholes to saddle their own constituents with tens of millions of dollars of debt,” he said. Thorpe criticized the council for allegedly neglecting democratic principles by disregarding necessary voter involvement.

The lawsuit contends that no valid emergency exists to bypass the usual voting process. However, objection from the town persists. Payson Town Attorney Jon Paladini dismissed the lawsuit as “specious,” claiming it is likely to be dismissed swiftly. He reiterated that legislative bodies like the council are generally shielded from judicial second-guessing.

A 6-1 vote enabled the bond sale to proceed immediately, eliminating the standard 30-day period during which voters can gather signatures for a referendum. The council purportedly cited speculation regarding a potential Federal Reserve interest rate cut as justification for this urgency, aiming to secure better bond terms.

Thorpe argued against this reasoning, asserting that speculating about market trends does not constitute an emergency. He emphasized that using the emergency clause infringes on Arizona residents’ constitutional right to hold a referendum.

The emergency clause was invoked to enact the measure instantly, denying residents the chance to challenge the decision through a ballot. Thorpe elaborated, “The Arizona Constitution guarantees the right of referendum: the right of Arizonans to circulate petitions and refer bills, ordinances, and resolutions for a popular vote.” He stressed that this democratic process must not be undermined.

Paladini defended the bond measure’s classification as an emergency, noting it would fund essential projects, including a community center, hiking trails, and public facility upgrades. He pointed out that many bond sales utilize the emergency clause to expedite the process without public opposition.

If the Goldwater Institute’s lawsuit prevails, it could set a precedent allowing voters more power to challenge similar bond measures in the future, reinforcing the principles of democratic accountability in Arizona.

Matthew Holloway is a reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.