Auditing Honeyville: a small city's books, from its fiscal 2025 audit

Honeyville, a Box Elder County city governed by an elected mayor and a five-member council, keeps two governmental funds, a general fund and a capital projects fund, plus one enterprise fund for culinary water, according to its audited financial statements for the year ended June 30, 2025. ^[1]

This series, Auditing Honeyville, reports what the city's financial filings and meeting records say, one record at a time.

The audit

Davis & Bott Certified Public Accountants of Brigham City said the statements present fairly, in all material respects, the financial position of the city's governmental activities, business-type activities and each major fund. The report is dated Oct. 31, 2025. ^[1]

The same auditors reported a material weakness in internal control, item 2010-001, and a state compliance finding, item 2025-001, on general fund spending above the final budget. A separate story in this series covers both. ^[1]

Net position and debt

On the government-wide statements, Honeyville reported total net position of $7,826,416 at June 30, 2025, up $294,019 from the year before. Of that, $4,583,991 was net investment in capital assets, $562,278 was restricted and $2,680,147 was unrestricted. ^[1]

The statement of net position lists total liabilities of $139,058: $48,386 in accounts payable and accrued liabilities and a $90,672 net pension liability. It lists no bonds, notes or loans payable. ^[1]

The city reported $3,103,922 invested in the Utah Public Treasurer's Investment Fund at June 30, 2025. ^[1]

The general fund

General fund revenues were $821,102 in fiscal 2025, including $381,220 in sales and use taxes and $103,609 in property taxes. Expenditures were $623,811. ^[1]

The general fund balance rose by $242,377 to $696,412. Of that, $511,198 was restricted for Class C roads, $51,080 was restricted for transit tax and $134,134 was unassigned. Management's discussion, which is unaudited, says the unassigned amount equals 22 percent of general fund expenditures. ^[1]

The final budget included a $90,000 transfer out of the general fund. The unaudited budget-to-actual schedule shows no transfer made, and management's discussion says the budgeted transfer to the capital projects fund was not completed to stay in compliance with the state's unassigned fund balance requirements. ^[1]

The capital projects fund ended the year with $1,426,862, all assigned to capital projects, after spending $73,692 on items including City Hall and park improvements. ^[1]

Water

The water utility fund reported $386,962 in operating revenues and $298,940 in operating expenses, including $115,578 in depreciation, for operating income of $88,022. With investment earnings of $43,446 and impact fees of $18,785, its net position rose by $150,253 to $4,075,850. ^[1]

The fund held $1,061,151 in cash and investments at June 30, 2025. Its capital asset schedule lists no additions to the water system during the year. ^[1]

Honeyville's postings on the state Public Notice Website list 2026 public hearings on a resolution for collecting delinquent water accounts and on the city fee schedule, both set for Sept. 9, 2026. ^[2]

Redevelopment

The audit says the city is not a component unit of any other entity and has no component units. Its fund statements list no redevelopment or community reinvestment agency fund. ^[1]