Auditing Erda: no long-term debt and $3.3 million assigned to capital projects

Erda is a city in Tooele County whose audited financial statements for the year ended June 30, 2025, cover two governmental funds: the General Fund and a Capital Projects Fund. ^[1]

Larson & Company, PC, of Spanish Fork, issued an unmodified opinion dated Oct. 24, 2025, saying the statements present fairly, in all material respects, the city's financial position. An emphasis-of-matter paragraph notes the city's early adoption of GASB Statement No. 103; the auditor says its opinion is not modified for that matter. ^[1]

The auditor's government auditing standards report identified no material weaknesses and no instances of noncompliance required to be reported. Its state compliance report says the city complied, in all material respects, with state compliance requirements. ^[1]

Fiscal 2025 in the audit

The General Fund reported $2,512,008 in revenue in fiscal 2025, led by $899,751 in sales tax, $472,124 in intergovernmental revenue and $446,023 in property tax. It reported $1,070,702 in expenditures, including $469,553 for highways and streets and $258,226 for public safety. ^[1]

The city transferred $1,750,000 from the General Fund to the Capital Projects Fund during the year. The notes say the transfer was made to accumulate funds for future capital projects. ^[1]

At June 30, 2025, governmental fund balances totaled $3,902,409: $3,300,000 in the Capital Projects Fund, assigned for future capital projects, and $602,409 unassigned in the General Fund. The notes report no restricted fund balance. ^[1]

The management's discussion and analysis says: "At the end of the current year, City of Erda has no long-term debt outstanding." ^[1]

The FY2026-27 budget

Ordinance 26-08 adopts a final budget for July 1, 2026, through June 30, 2027, and sets a tax rate of 0.000878, which it describes as the certified tax rate set by the Tooele County Auditor. It says the levy will not result in a tax increase to residents. ^[2]

The June 11, 2026 minutes record the ordinance's approval on a 4-0 roll call, amended to remove the treasurer category and move $45,500 to capital improvement projects. ^[3]

The posted ordinance incorporates the tentative budget by reference but does not attach it. The city's September 2026 financial report lists budget figures of $2,857,730 in revenue and $2,857,730 in expense, including a $1,011,730 transfer to capital projects. ^[2][5]

What this series will follow

The first stories follow a county services agreement approved on a spending condition, and a capital projects balance that the September report lists at $5,225,000. ^[4][5]