Auditing Pleasant Grove: what the city's audit and budget show

Pleasant Grove is a suburban city in northern Utah County. Its fiscal 2025 financial report puts the population at 39,604. ^[1]

The Utah Ledger is reviewing the city's public financial records: independent audits, budgets, debt disclosures, redevelopment agency reports and council minutes. This series reports what those records show. Each statement links to the record it comes from.

What the audit says

The city's independent auditor, HBME of Bountiful, said in a report dated Dec. 18, 2025, that the fiscal 2025 financial statements present fairly, in all material respects, the city's financial position. ^[2]

In its separate review of state compliance, the auditor said the city complied in all material respects with the requirements tested. It also reported one finding, 2025-001: four funds spent more than their final appropriations. The auditor said its opinion is not modified with respect to that matter. ^[3]

Budget and reserves

The City Council adopted the fiscal 2027 final budget unanimously on Aug. 18, 2026. ^[6]

That budget lists $22,215,110 in general fund revenue, including transfers in, and $19,809,235 in general fund operating spending. ^[8][9]

It projects the general fund balance falling from an estimated $5,868,451 on June 30, 2026, to $4,868,450 on June 30, 2027, after $3,405,876 in transfers out. These are budget projections, not audited results. ^[7]

The audited general fund balance was $14,392,192 on June 30, 2025, of which $7,042,406 was unassigned. The audited figure includes $5,791,394 restricted for Class C roads and $913,752 assigned to employee benefits, which the budget lists as separate funds, so the two figures are not directly comparable. ^[4][7]

The audit's management discussion says the general fund's assigned and unassigned balance equaled 31.11% of general fund revenue, under the 35% that Utah law allows. ^[10]

Debt

At June 30, 2025, the city reported $108,498,000 in bonds outstanding, excluding premiums. Of that, $100,279,000 is secured by specific revenue sources and $8,219,000 is general obligation debt. ^[5]

That total includes $34,087,000 in lease revenue bonds for The Ruth theater, which the city expects to repay with rent from the theater's operator. ^[11]

Separately, the city has pledged to lend franchise tax revenue, up to $1,066,500 a year through October 2048, if the Utah Infrastructure Agency's revenue falls short on $16,915,000 in fiber bonds issued for Pleasant Grove. The audit says the agency has sufficient revenue and that it is unlikely the pledge will be required. ^[12]

Redevelopment and utility charges

The city's redevelopment agency ended fiscal 2025 with a $6,221,033 fund balance, up $1,459,694 for the year. ^[13]

The agency rebates property tax increment to three outside entities under written agreements. In fiscal 2025 it reported $434,236 for the 1300 West area and $304,842 for the two Grove Tower areas. ^[14]

The fiscal 2027 budget charges the water fund $1,106,096, the sewer fund $974,220, the storm drain fund $332,976 and the sanitation fund $271,470 for administrative services. The general fund shows a matching $2,684,762 administrative allocation credit. ^{[15][16][17][18][9]}

What comes next

Our first stories look at the fiscal 2025 budget overages, the fiscal 2027 property tax increase, the financing of The Ruth and the redevelopment agency's tax rebates. If you have records or questions about Pleasant Grove's finances, use the contact on our About page.