Auditing Fillmore: A $4 million general fund, utility funds and a sewer lagoon in the works

Auditing Fillmore is a series on the finances of the Millard County seat. It draws on the city's audited financial statements, its budgets and its council minutes. This first story describes the city's finances as those records report them.

Kimball & Roberts, a Richfield accounting firm, audited Fillmore's financial statements for the year ended June 30, 2026. Its report, dated Oct. 9, 2026, says the statements "present fairly, in all material respects," the city's financial position. That is an unmodified opinion. ^[1]

Budget

At a June 23, 2026 hearing, the council heard that the fiscal 2027 general fund budget is $4,046,510. The minutes put the total for all operating funds at $9,645,010 and record a certified tax rate of 0.000466. The council then adopted Resolution 26-13, which approved the 2026-2027 operating budgets, by a unanimous roll-call vote. ^[8]

The same meeting amended the fiscal 2026 general fund budget from $4,585,440 to $4,808,750. The audited budget schedule shows the same original and final amounts. Actual general fund revenues were $4,268,888 and actual expenditures were $4,039,173. ^[8][7]

On Aug. 25, 2026, the council adopted Resolution 26-16, which appropriated $500,000 of general fund surplus for flood-mitigation work and $600,000 of sewer fund surplus for a new sewer lagoon project. ^[9]

Reserves

The general fund's balance rose by $146,317 during the year, to $2,098,252 at June 30, 2026. Of that balance, $933,000 was restricted for Class C roads, $92,573 was committed to the fire department and $1,023,589 was unassigned. ^[3][4]

The city's utility funds are Water, Sewer and Electric. At June 30, 2026, they held $8,145,599 in unrestricted cash and $3,712,450 in investments. Of that cash, the Electric Fund held $5,609,212, and it held all of the investments. ^[2]

Debt

At June 30, 2026, Fillmore owed $119,000 on a 2018 sales tax revenue bond. That bond matures Jan. 1, 2032. ^[6]

The city also owed a total of $2,976,829 on water revenue bonds from 2007, 2018 and 2024, which are secured by Water Fund revenues. The 2024 bond, with a $1,413,000 balance, carries 1.00% interest and matures in 2054. ^[6]

The Sewer Fund's statement of net position lists no bonds payable. ^[2]

At an Aug. 25, 2026 meeting, Mayor Curt Hare reported that a general obligation bond resolution for a new fire station "will not be on this year's ballot." The minutes attribute this to a mistake by the city's bond attorney and say Zions Financial was looking at other options. A Sept. 22 work meeting was noticed to discuss "alternate funding options for a new fire station" with Zions Financial. ^[9][10]

Redevelopment

The city's redevelopment agency held $485,000 in notes receivable at June 30, 2026. That total is a $265,000 loan made in 2018 to Fillmore Business Park, LLC, a $190,000 loan made in 2019 to Fillmore Backcast, LLC, and a $30,000 housing-program note. The notes say the annual payment on either business loan is $0 for any year in which the borrower meets certain performance obligations. ^[5]

On Aug. 25, 2026, the council adopted Resolution 26-17. It triggers collection of tax differential from the Historic Capitol Project Area for a Qwik Trip parcel, and the minutes record a projected $383,000 to the city over 25 years. That figure is a projection, not revenue received. ^[9]

What comes next

Other stories in this series cover the audit's findings, the sewer fund and the proposed lagoon, and flood-mitigation costs. ^[1][9]