Auditing River Heights: what we're examining and why

The Utah Ledger is reviewing the public financial records of River Heights, a Cache County city: its budgets, audited financial statements, property tax decisions and road-funding applications. Each statement in this series links to the record it comes from. River Heights' fiscal year runs July 1 to June 30.

The budget

On Aug. 17 the City Council voted 5-0 to approve Resolution 11-2026, adopting the final budget for fiscal 2026-27. Council members Kandi Evans, Mark Malmstrom, Chris Milbank, Lance Pitcher and Steve Roberts voted in favor. The minutes say the interim budget the city adopted June 16 would no longer be in effect. ^[1]

The budget worksheet attached to the resolution lists $731,700 in general fund revenues and expenditures, compared with $922,625 the year before. It lists $646,400 for the water fund, $425,600 for the sewer fund, $277,000 for the capital projects fund, $240,000 for the sanitation fund and $205,000 for the Class C road and mass transit fund. ^[1]

The capital projects fund's revenue includes a $110,000 RAPZ park grant and $166,000 in appropriated fund balance. ^[1]

The minutes record the mayor saying total city revenue and expenditures were $2,493,988 last year and $2,658,801 in this year's budget. ^[1]

The same night the council adopted a higher property tax rate, the subject of a separate story in this series. The council approved the Aug. 17 minutes on Sept. 1 by a 4-0 vote, with Malmstrom absent. ^[1][3]

What the audit shows

Matthew Regen, CPA, PC, of Logan audited the city's financial statements for the year ended June 30, 2025. The report, dated Dec. 19, 2025, says the statements "present fairly, in all material respects" the city's financial position, an unmodified opinion. ^[2]

The auditor's report on internal control says it did not identify any deficiencies considered to be material weaknesses, and that its tests "disclosed no instances of noncompliance or other matters that are required to be reported." ^[2]

The general fund took in $1,178,670 in fiscal 2025 and spent $935,046. After a $155,920 transfer to the capital projects fund, its balance rose by $87,704. ^[2]

The budgetary comparison schedule shows $388,774 in sales tax and $128,415 in property tax for the general fund in fiscal 2025. ^[2]

At June 30, 2025, the general fund held $608,454, all unassigned, and the capital projects fund held $129,487, assigned to future capital projects. These are balances in separate funds, not one pool of cash. ^[2]

The statements report total net position of $8,886,443: $4,515,604 for governmental activities and $4,370,839 for business-type activities. ^[2]

Debt and redevelopment

The fiscal 2025 statements list no bonds, notes or leases payable. The only noncurrent liability reported is a $12,437 net pension liability. ^[2]

The governmental funds balance sheet lists two funds, the general fund and the capital projects fund. ^[2]

What we're following

This series begins with the council's Aug. 17 property tax increase and an application for county road funds to widen 600 South.