Auditing Santaquin: What the city's audit and budget show

The Utah Ledger's Auditing Santaquin series reads the city's public financial records: its audited annual financial report, its budgets and its council minutes. Each story links the records it relies on.

Santaquin's certified tax rate resolution covers properties in both Utah County and Juab County. ^[7]

The city's annual financial report includes three entities governed by the same board as the city: the Community Development & Renewal Agency, the Local Building Authority and the Santaquin Special Service District. Each is reported within the city's statements using the blended method. ^[5]

The audit

Larson & Company, PC, of Spanish Fork audited the statements for the year ended June 30, 2025, and dated its report Oct. 31, 2025. It said they 'present fairly, in all material respects,' the financial position of the city's governmental activities, business-type activities and funds. ^[1]

The schedule of findings lists no financial statement or state compliance findings for the current or prior year. ^[4]

In a separate letter on the city's bond issues, the auditor said it was 'not aware of any areas of non-compliance with the compliance requirements contained in bond purchase agreements.' ^[9]

Size and reserves

Citywide, revenues totaled $41,563,492 in fiscal 2025 and expenses $22,415,426. Net position rose $19,148,066 to $102,153,460. Management's discussion attributes the increase in governmental revenues primarily to capital grants. ^[2]

The General Fund collected $15,942,745 in revenue and spent $11,570,259. It received $1,458,500 in transfers and sent out $4,750,999. Its fund balance rose $1,079,987 to $3,723,818. ^[3]

Of that balance, $560,755 was restricted for parks and recreation and capital projects, $766,312 was assigned to specific uses, and $2,396,751 was unassigned. ^[3]

Debt

Management's discussion lists $30,444,439 in outstanding debt at June 30, 2025: $12,732,957 for governmental activities and $17,711,482 for the water and sewer utilities. The largest single item is a 2021 water revenue and refunding bond with $9,744,000 outstanding. ^[2]

The governmental total includes equipment leases, a $371,471 bond premium and a $3,282,102 loan from the city's pressurized irrigation fund to its capital projects fund, which is money the city owes to itself. ^[2]

Redevelopment

The Community Development & Renewal Agency's fund balance rose from $719,973 to $2,550,525 during fiscal 2025. Its revenue that year consisted of $83,665 in interest, and it also reported $3,253,219 from the sale of capital assets. ^[10]

The 2027 budget

On June 16, 2026, the council voted 5-0 to approve the final fiscal 2026-27 budget, including three technical corrections to the water, sewer and library funds that the finance director had identified. ^[6]

The posted final budget lists General Fund revenues and expenditures of $13,896,740. It projects $2,083,154 in current-year property taxes and $3,905,000 in sales and use taxes. ^[11]

Earlier in the same meeting, the council unanimously adopted a certified tax rate of 0.001399: 0.001284 for general operations and 0.000115 for the library. ^[7][12]

Sitting as the boards of the redevelopment agency, the building authority and the special service district, the same members each unanimously adopted those entities' budgets. The city manager said none had changed from the tentative versions. ^[13]