Auditing Sunset: what the city's audit and budget show

This series reads Sunset's public financial records: the independent audit, the budget filed with the Utah State Auditor and the City Council's minutes. Each story cites the record it relies on. ^[1][3]

The city's auditor, Child Richards CPAs & Advisors of Ogden, said in a report dated Feb. 2, 2026 that the fiscal 2025 financial statements present fairly, in all material respects, the city's financial position as of June 30, 2025. ^[1]

The budget

The fiscal 2027 budget lists $8,266,257 in revenue and the same amount in spending across all funds. The general fund, which pays for police, the court, streets, parks and administration, totals $3,350,422. The utility enterprise fund, which covers water, sewer, garbage and storm water, totals $2,957,300. ^[3]

The police department is the general fund's largest department, at $2,005,520. ^[3]

The general fund budget lists $704,057 under "use of fund balance," including a $650,000 transfer from capital project funds and $54,057 from fund balance. A separate story in this series covers the transfer. ^[3]

Reserves and debt

At June 30, 2025, Sunset's governmental funds reported combined fund balances of $4,267,469. The general fund held $1,556,814, of which $331,572 was unassigned. The Public Works Capital Project Fund held $2,431,228, assigned to capital projects. The CDBG Capital Project Fund reported a $64,238 deficit. ^[2]

The general fund's balance fell by $847,944 in fiscal 2025. Its revenues exceeded its expenditures by $52,056 before it transferred a net $900,000 to the Public Works Capital Project Fund. That fund also reported $1,290,600 from the sale of assets. ^[2]

Management's discussion says, "There was no new borrowing and the City does not have any long-term debt." The audit lists $260,728 in compensated absences and a $429,324 net pension liability for governmental activities. ^[4][2]

The audit's list of the city's 13 governmental funds does not include a redevelopment agency fund. It does include an Economic Development Capital Project Fund, which held $343,665 at June 30, 2025. ^[4][2]

Compliance

The auditor said Sunset complied, in all material respects, with the state compliance requirements it tested for fiscal 2025, and reported findings on monthly financial reports, the fraud risk assessment and budget overruns in two general fund departments. A separate story in this series covers the findings. ^[5]

The auditor reported no material weaknesses in internal control over financial reporting. ^[7]