Auditing Midway: What the city's audit and budget show

This series examines Midway's public finances through its own records. It starts with the two main ones: the audited financial statements for the year that ended June 30, 2025, and the budget for the year that began July 1, 2026. ^[1][2]

Gilbert & Stewart, CPA, PC, of Provo signed the auditor's report on Feb. 9, 2026. It says the financial statements present fairly, in all material respects, the city's financial position. The report contains no qualification. ^[1]

The general fund

The general fund pays for most day-to-day city services. In fiscal 2025 it collected $8,380,930, including $5,460,621 in taxes, and spent $4,945,345. General government was the largest category, at $3,170,961. ^[1]

The fund transferred $1,696,357 to other funds, including $1,349,922 to capital projects and $327,057 to the Municipal Building Authority fund. Its balance rose from $1,628,253 to $3,367,481, all of it unassigned. ^[1]

The fiscal 2027 budget sets general fund revenue and spending at $8,310,450 each. It separately budgets $3,869,408 in the capital improvements fund, $7,827,447 in the water fund and $1,349,444 in the Municipal Building Authority fund. ^[2]

Reserves

At June 30, 2025, Midway's governmental funds held $18,489,561 in combined fund balances. The capital projects fund held $12,065,513, of which $10,590,192 was assigned to capital projects and $1,384,258 was restricted for Class C roads and transportation and trail impact fees. ^[1]

The fiscal 2025 audit included a finding that the general fund balance exceeded a 35% threshold, which is covered in a separate story in this series. ^[3]

Debt

Midway's only bonds outstanding at June 30, 2025 were 2020 general obligation bonds issued through the Municipal Building Authority on May 14, 2020, for $4,820,000. The audit says the proceeds were for the preservation of open space and related improvements. ^[1]

The city owed $3,960,000 on those bonds after paying $190,000 of principal during the year, with $200,000 due within one year. The audit also lists an unamortized bond premium of $278,346 and a net pension liability of $394,163 for governmental activities. ^[1]

The fiscal 2027 budget lists open space bond payments of $185,000 in principal and $137,294 in interest. ^[2]

Redevelopment

The Midway City Community Development and Renewal Agency is reported in the audit as a blended component unit with its own fund. Its fund balance at June 30, 2025 was $97,633. ^[1]

The general fund transferred $525 to the agency in fiscal 2025, and the fiscal 2027 budget lists $525 for the agency's fund. ^[1][2]