Auditing Payson: what the city's audit and budget records show

The Utah Ledger's Auditing Payson series reports what Payson's own financial records say, drawing on the city's audited annual financial report, council minutes, budget presentations and public bond notices. ^[1][2][3]

This first look summarizes the city's finances. Later stories in the series cover a Mountainland Association of Governments grant the city may have to repay, borrowing for a fire station and the sewer plant, reimbursement agreements with a public infrastructure district and a developer, conditions the council attached to its budget, a cash-reporting audit finding and two tax-rebate agreements.

The general fund in fiscal 2025

The general fund, which pays for most day-to-day city services, reported $22,866,717 in revenue and $22,104,747 in expenditures in fiscal 2025, which ended June 30, 2025. ^[1]

After $2,631,773 in transfers in and $4,410,700 in transfers out, the fund's balance fell by $1,016,279, to $8,005,193, of which $6,861,955 was unassigned. ^[1]

Debt

The audit reports $77,024,000 in bonds outstanding on June 30, 2025, most of it sewer and water revenue bonds, plus a $2,112,000 interlocal note to Nebo School District for the purchase of Wilson School. ^[1]

Counting leases, compensated absences and other long-term liabilities, the audit reports total long-term debt of $83,906,432, down $3,797,449 during the year. ^[1]

The audit also says the city pays debt service, through operations, on bonds the Utah Associated Municipal Power Systems issued to upgrade Payson's power facilities, and that UAMPS owns those facilities and records the liability until the bonds are retired. ^[1]

Audit results

Larson & Company of Spanish Fork audited the fiscal 2025 statements. Its Dec. 3, 2025 report says the statements "present fairly, in all material respects," the city's financial position. ^[1]

The city's total net position rose $32,857,485 during the year, to $254,539,533. ^[1]

In a separate state compliance report, the auditor said Payson complied in all material respects with the state requirements it tested and reported one finding, 2025-001, on cash reporting. ^[1]

The fiscal 2027 budget

At an April 29, 2026 work session, Finance Director Cathy Jensen presented the tentative fiscal 2027 budget. The minutes say the city proposed a $122,976,926 budget city-wide and a general fund budget of $32,478,091, and record Robert Mills saying the proposal was a 5% decrease from the previous year. ^[2]

On June 17, 2026, the council adopted the fiscal 2027 budget 4-1, with Councilmember Lacee Smith voting no. ^[3] The Ledger reviewed the tentative budget presentation; figures in the final adopted budget document may differ.