Auditing Cedar Hills: what city records show about its audit, reserves, debt and 2026–27 budget

The Utah Ledger is reviewing Cedar Hills' public financial records in a series called Auditing Cedar Hills. The series reports what audits, budgets, council minutes and bond documents state, and labels each figure with the year and basis it was reported on.

Cedar Hills' fiscal year runs from July 1 through June 30. The latest audited year is fiscal 2025, which ended June 30, 2025. ^[1]

The audit

K&C, Certified Public Accountants, of Woods Cross dated its independent auditor's report Dec. 5, 2025. It says the financial statements "present fairly, in all material respects," the city's financial position, an unmodified opinion. ^[1]

In its separate report under Government Auditing Standards, the firm said it did not identify any deficiencies in internal control that it considered material weaknesses, and that its tests disclosed no instances of noncompliance required to be reported. The report states that it does not express an opinion on the effectiveness of the city's internal control. ^[4]

In its state compliance report, the firm said the city complied in all material respects with the state requirements it tested for fiscal 2025, including budgetary compliance, fund balance, restricted taxes, fraud risk assessment, governmental fees, impact fees and Utah Retirement Systems. It said it did not identify material weaknesses or significant deficiencies in internal control over compliance. ^[4]

Steven Rowley of the firm presented the audit to the City Council on Jan. 20, 2026. The council voted 5–0 to accept the fiscal 2025 Annual Comprehensive Financial Report, according to the approved minutes. ^[5]

Reserves

The General Fund, which pays for most day-to-day services, took in $6,002,887 in fiscal 2025 and spent $5,748,375. With $80,036 in other financing sources, its fund balance rose $334,548 to $1,969,042. Of that, $1,192,454 was unassigned. ^[2]

The Golf Fund, a special revenue fund for the city's golf course and event center, took in $2,441,668 and spent $1,884,393. Its fund balance rose $557,275 to $1,048,741, with no transfers in. ^[2]

All governmental funds together held $5,232,690 at June 30, 2025, up from $4,387,755 a year earlier. ^[2]

Debt

At June 30, 2025, the audit lists $3,105,000 in general obligation bonds, which were issued for the golf course and are repaid with a property tax levy, and $545,794 in leases in governmental activities. The city's utilities owed $5,771,000 in revenue bonds from direct placements. ^[3][6]

The fiscal 2027 budget book's debt table, which is labeled with balances as of July 1, 2026, lists $13,504,000 across six bond issues. That includes a $4,628,000 sales tax revenue bond for the golf course issued March 12, 2026, with a payoff date of March 1, 2056. The table's figure for the 2012 golf bonds, $3,105,000, is the same as the audited June 30, 2025 balance. ^[6]

The city has also pledged some of its tax revenue as a backstop for bonds the Utah Infrastructure Agency issued for Cedar Hills' fiber network. Those are the agency's bonds, not the city's. ^[3]

The 2026–27 budget

The fiscal 2027 budget book lists General Fund revenues and transfers of $5,586,477 and expenditures of $5,562,267, and total city expenditures of $17.5 million. Its highlights include a $150,000 increase above the certified property tax levy "to offset American Fork public safety contract increases" and $2.1 million for the golf course renovation. ^[6]

The council adopted the final fiscal 2027 budget and the property tax levy 5–0 on Aug. 18, 2026, according to the approved minutes. ^[7]

What the series covers

Upcoming stories in the series follow the golf course renovation and its financing, the renewed public safety agreement with American Fork, the figures in this year's tax and fee decisions, and the city's tax backstop for the fiber bonds.