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

The Utah Ledger's Auditing Orem series reports what Orem's own financial records say, drawing on the city's audited annual report, its auditors' compliance reports, its budgets, its redevelopment agency's budget and council minutes. ^{[1][2][4][5][6]}

Orem's general fund, which pays for most day-to-day city services, took in $82.8 million and spent $75.7 million in fiscal 2025, which ended June 30, 2025. ^[1] Its revenue was $8.6 million lower than in fiscal 2024, mostly because less federal pandemic relief money was recognized. ^[1]

Reserves

The general fund ended fiscal 2025 with $49.4 million, of which $26.6 million was unassigned. ^[1] Its unassigned and assigned balances together grew from $22.6 million in fiscal 2020 to $36.3 million in fiscal 2025, according to the report's 10-year table. ^[1]

State law caps that portion of a city's general fund. ^[2] The city's auditors reported Orem over the cap in every audit from fiscal 2019 through fiscal 2025, applying a 25% limit in the fiscal 2019 and 2020 findings and a 35% limit from fiscal 2021 on. ^[2][3][7]

Budget and taxes

The city's fiscal 2027 tentative budget totals $211.9 million across all funds, up from $177.4 million adopted for fiscal 2026. ^[4] That total includes a $25.4 million transfer into a new public safety special revenue fund. ^[4]

On Aug. 27, 2026, the council voted 5-2 to raise property tax revenue by $450,000 a year for two police officers and to dedicate the general operations property tax levy to the new fund. ^[5]

Debt

Orem had $70.0 million in bonds outstanding on June 30, 2025: $24.5 million in general obligation bonds from 2019 and $45.5 million in revenue bonds repaid from sales tax or water, sewer and storm water revenue. ^[1]

The largest single issue is $27.26 million left on 2021 water, sewer and storm water bonds. ^[1] The newest is a $9.2 million sales tax revenue bond sold in July 2024 for a fire training facility and a public safety building remodel, with $8.8 million outstanding. ^[1]

The general obligation debt counted against the state limit, $27.1 million, equals 4.11% of the city's $660.2 million limit for general-purpose debt. ^[1] Fitch and Standard & Poor's both rate the city AAA. ^[1]

Audits and redevelopment

Larson & Company of Spanish Fork gave an unmodified opinion on the fiscal 2025 financial statements, reported no federal award findings and deemed Orem a low-risk auditee. ^[2] Gilbert & Stewart of Provo audited fiscal 2020 and 2021. ^[3][7]

Besides the reserve cap, the fiscal 2025 state compliance findings cover a recurring deficit in the city's Facilities Maintenance Fund and an incomplete deposit and investment report. ^[2]

Seven of the redevelopment agency's eight project areas no longer collect tax increment. ^[6] The eighth, the University Place community development area, brought in $2.03 million in fiscal 2025, and an agreement sends 90% of its increment to the property owner. ^[1][6]