Auditing Moab: what the city's audit and budget records say about its money

The Utah Ledger is reviewing Moab's public financial records and reporting only what the documents state. Each story in this series links every figure to the record it comes from and names the period it covers.

The series starts with three records: an internal control finding in the city's fiscal 2025 audit, a correction of developer deposits that had been recorded as revenue, and the growth of the general insurance line in the city's budget. ^[4][8][9]

The fiscal 2027 budget

On May 12, 2026, the City Council adopted Resolution 04-2026, the final budget for fiscal 2026-27. Councilmember Knutson-Boyd moved to adopt it and Councilmember Taylor seconded. Councilmembers Taylor, Knutson-Boyd, Topper and Loftin voted aye and Councilmember Myers voted nay, according to the minutes. The minutes record no public comment at the hearing. ^[2]

The signed resolution adopts budgets for all funds, including the capital improvement plan, as outlined in its Exhibit A. It sets the city's property tax levy at the final certified tax rate as determined by Grand County and the State Tax Commission. ^[1]

In Exhibit A, the general fund column labeled 2027 Admin Recommend shows revenues and expenditures of $23,976,439 each. The largest revenue lines are resort community taxes, $6,969,298; property taxes, $3,468,543; sales and use taxes, $3,343,101; and transient room taxes, $2,026,906. The revenue side also includes a carry-forward balance of $1,646,943. ^[1]

The same exhibit budgets $7,380,660 for the capital projects fund. ^[1]

The fiscal 2025 audit

Gilbert & Stewart, CPA, PC, of Provo issued its report on the year ended June 30, 2025, on Dec. 19, 2025. It states that the financial statements present fairly, in all material respects, the city's financial position. ^[3]

In its report on internal control, the firm described one deficiency, item 2025-1, as a significant deficiency and said it did not identify any deficiencies it considers material weaknesses. Its tests disclosed no noncompliance required to be reported under Government Auditing Standards. ^[4]

In its state compliance report, the firm said Moab complied in all material respects with the state requirements it tested. It also said its procedures disclosed instances of noncompliance described in a Dec. 19, 2025 letter to management as item 25-1, and that its opinion was not modified for them. ^[7]

General fund revenues were $20,714,707 for fiscal 2025, including $17,491,815 in taxes. Expenditures were $16,352,723, below the final budget of $18,005,932. ^[10]

The general fund's balance fell $1,913,417 to $5,127,172, of which $3,745,975 was unassigned. The audit's management discussion cites transfers of $7,185,848 to other funds as a major reason. The general capital projects fund balance fell $6,708,446 to $1,597,539, which the discussion attributes to construction projects. ^[6]

Debt

At June 30, 2025, the city had $7,062,000 in sales tax and Community Impact Board bonds for governmental activities and $23,482,000 in water and sewer revenue bonds, according to the audit's debt note. ^[5]

The audit says the city repaid the $1,489,000 Walnut Lease bond during fiscal 2025 and made $2,083,000 in other principal payments. ^[11]

Separately, the city owed $316,181 on vehicle leases at June 30, 2025. ^[5]