Auditing Lehi: what the city's own records show about its money

The Utah Ledger reviewed Lehi's public financial records: its annual audited financial reports for fiscal 2021 through 2025, its fiscal 2027 budget, Utah County's reports on its redevelopment areas, and the minutes of its council and redevelopment agency. ^{[1][2][3][4][5][6]}

Lehi's fiscal year runs from July 1 to June 30, and the city estimated its population at 93,446 in its fiscal 2025 report. ^[1]

The general fund

The general fund pays for police, fire, parks, streets and administration. ^[1]

Its revenue rose from $60.0 million in fiscal 2021 to $79.5 million in fiscal 2025, and its spending rose from $45.1 million to $71.1 million over the same years. ^[5][1]

The fund's balance grew from $15.2 million on June 30, 2020, to $33.9 million in 2024, then fell to $32.5 million in 2025. ^[1]

The fiscal 2025 report says the decline was "due largely to transfers out to other funds," including $7.55 million moved to the capital projects fund. ^[1]

Utah law, as the report describes it, requires a city to spend down unassigned general fund balance above 35% of the next year's budgeted revenue within two years. ^[1]

Lehi's unassigned balance was $24.4 million on June 30, 2025, which the report put at 34.2% of that year's general fund spending; in earlier years it reported 35.7% (2021), 40.5% (2022), 36.8% (2023) and 41.7% (2024) on the same basis. ^{[1][5][4][3][2]}

The fiscal 2027 budget balances the general fund at $68.2 million, using $1.01 million of fund balance. ^[6]

The council passed it 5-0 in June without a property tax increase, the Lehi Free Press reported. ^[7]

Debt

Lehi reported $241.2 million in long-term obligations on June 30, 2025, up $9.8 million in a year. ^[1]

Most of it, $186.0 million, is revenue bonds backed by specific revenue such as sales tax, utility revenue or energy tax, and the city has no general obligation debt. ^[1]

The report puts the city's general obligation debt limit at $785.7 million. ^[1]

Another $34.6 million is owed to developers through redevelopment notes that are payable only from tax increment. ^[1]

Audits

Osborne, Robbins & Buhler audited the city in each year reviewed, and its fiscal 2025 opinion is unmodified. ^[1][5]

Presenting that audit on Jan. 27, 2026, the auditor reported "no major findings, with only minor adjustments to primarily timing issues with inventory or other factors," satisfactory federal grant compliance and state compliance with "no significant deficiencies," according to the minutes. ^[8]

Minutes from Jan. 28, 2025, say the auditor found no significant issues in the fiscal 2024 reports on internal control, federal grants and state legal compliance. ^[9]

On a State Auditor fraud-risk questionnaire completed May 28, 2026, the city claimed full points on every question, including having a fraud hotline, an internal audit function and an audit committee. ^[10]

The fiscal 2025 report says the city is involved in "several pending lawsuits" and that management expects uninsured claims would not materially affect its finances. ^[1]

In this series

The series covers the 2023 extension of the Texas Instruments tax increment deal, $34.6 million in redevelopment notes owed to developers, the city's $70 million fiber network borrowing, the 2004 Cabela's bonds that ended with $7.96 million forgiven, and the 2025 vote to back a Thanksgiving Point building with city sales tax bonds. ^[1][11][12]