Auditing Cottonwood Heights: the city's budget, debt and redevelopment records

The Utah Ledger is reviewing Cottonwood Heights' public financial records in a series called Auditing Cottonwood Heights. The series relies on the city's annual comprehensive financial report, its budget filings, council agendas and redevelopment records, and reports only what those records state. Each figure names the year it covers.

The most recent audited report covers the fiscal year ended June 30, 2025. Its transmittal letter is signed by Scott Jurges, the finance and administrative services director, and City Manager Jared Gerber. ^[1]

The budget

For fiscal 2025, the General Fund's final budget authorized $23,154,064 in expenditures. Actual expenditures on the city's budgetary basis were $22,881,739, and revenues were $26,107,292. ^[2]

After $4,921,044 in net other financing uses, made up of transfers to the debt service, capital improvement, redevelopment and stormwater funds less $51,000 from asset sales, the General Fund's balance fell $1,695,491, from $7,608,902 to $5,913,412. ^[2]

A July 14, 2026 staff memo filed with the state as part of the fiscal 2027 budget proposed a $3,500,000 property tax increase. ^[10] An Aug. 18, 2026 amended council agenda says an earlier tax levy ordinance was approved Aug. 11 and lists a proposal to reduce the adopted increase from 42% to 25%, with an amended final budget. ^[11] The Ledger has not obtained the signed final ordinances; a separate story in this series covers that record.

Reserves

At June 30, 2025, $5,137,815 of the General Fund balance was unassigned. The fund held $4,649,080 in cash and cash equivalents. ^[3]

Management's discussion says city ordinance sets a target minimum General Fund balance of 6% of annual revenues, which it calculated at $1,569,498. ^[4]

Debt

The audit's debt table lists $40,541,000 in bonds payable at June 30, 2025, plus $4,017,609 in direct borrowings for police and public works vehicles. ^[5]

The bonds include $15,070,000 and $5,005,000 general obligation series issued June 4, 2025, after voters authorized up to $30,000,000 in November 2024. Management's discussion says the proceeds paid off a 2023 sales tax revenue bond used to buy much of Hillside Plaza. ^[5][6]

The audit

Larson & Company, PC, dated its reports Dec. 12, 2025. Its state compliance report says the city complied in all material respects with the requirements tested, and that the opinion is not modified with respect to the reported noncompliance. ^[8]

The schedule of findings lists two current-year findings: 2025-001, cash not deposited within three banking days, and 2025-002, the Highways and Public Improvements department exceeding its appropriation. It lists no prior-year findings. ^[7]

Redevelopment

The city's Community Development and Renewal Agency fund reported $484,443 in property tax revenue in fiscal 2025 against a $750,000 budget, and ended the year with a $2,118,838 fund balance. ^[9]

The city acquired Hillside Plaza, a retail center at Fort Union Boulevard and 2300 East, in 2023 and plans to redevelop it as a town center called "The Heights." ^[12] Management's discussion also notes $617,222 held from redevelopment agency tax distributions for a park in the Canyon Centre area. ^[4]

Stories in this series

The two fiscal 2025 compliance findings; the Hillside Plaza general obligation bonds; the General Fund's decline and the fiscal 2027 tax increase; and Canyon Centre's amended project area budget.