Auditing Ephraim: what the city's audit and budget records say about its money

Ephraim's audited financial statements for fiscal 2025 say the city has no component units. ^[1]

The Utah Ledger is reviewing Ephraim's public financial records and reporting only what the documents state. Each story in this series links every figure to the record it comes from and names the dates it covers.

The fiscal 2025 audit

Larson & Company, a Spanish Fork accounting firm, audited the city's statements for the fiscal year ended June 30, 2025. Its Nov. 20, 2025, report gives an unmodified opinion that the statements "present fairly, in all material respects" the city's financial position. It notes that the city adopted a new accounting standard, GASB Statement No. 103, early, and says the opinion is not modified on that point. ^[1]

General fund revenues were $6,541,756 and expenditures were $6,705,138 in fiscal 2025. The general fund balance fell $198,192 to $2,457,986, of which $840,794 was unassigned. ^[1]

The city's total net position was $51,214,538. Its investments, $18,591,888, were all held in the Utah Public Treasurers' Investment Fund. ^[1]

The audit's notes say all departments and funds were within budgeted appropriations for fiscal 2025. ^[1]

Draft minutes of the Dec. 3, 2025, council meeting say the auditor reported one finding, related to cash management reporting on the city's deposit and investment report, and that it "had already been corrected prior to issuance of the audit." ^[6]

Debt

The audit reports $12,901,690 in total debt outstanding at June 30, 2025, with $727,548 due within 12 months. ^[1]

Governmental long-term debt totaled $7,075,385. The largest item was $5,553,000 of Series 2025 public safety bonds at 3%. Others included a $542,000 balance on 2001 city office notes, $498,933 on a police vehicle lease and $219,000 on 2007 library bonds. ^[1]

The city's business-type activities, such as water and sewer, separately owed $6,179,842. That included $2,057,597 on a 2018 note payable, $1,799,289 on 2014 wastewater expansion bonds, $1,041,871 on a 2018 irrigation note and $879,000 on a 2019 water well note. ^[1]

On Dec. 3, 2025, the council held public hearings on up to $500,000 of water revenue bonds and up to $350,000 of street improvement revenue bonds, according to the draft minutes. No public comment was given, and the minutes excerpt records no vote. ^[6]

The fiscal 2027 budget

Ephraim adopted its fiscal 2027 budget in two steps because it proposed a property tax increase. Resolution 26-08, on the June 3, 2026, agenda, adopts an interim budget "pending completion of the Truth in Taxation process." ^[3]

The city's interim budget summary lists a total budget of $19,813,228 across its funds. The general fund balances at $6,178,415, with taxes of $2,997,968 and charges for services of $2,386,197 as the largest revenues. The police department is the largest general fund department, at $2,144,600. ^[2]

The electric fund is the city's largest, at $6,966,944. The summary lists the water fund at $2,515,138 and the sewer fund at $1,438,792. ^[2]

On Aug. 19, after a Truth in Taxation hearing, the council adopted Resolution ECR 26-18, the final fiscal 2027 budget, with all in favor, according to draft minutes posted in the Sept. 16 packet. The resolution refers to the budget as Exhibit A, which is not included in the posted agenda packet. ^[4][5]

What this series will follow

Other stories in this series look at the water rate increase the council adopted in June 2026, the property tax increase adopted in August and the council's September decision on parcels in a Utah Inland Port Authority project area.