Auditing Wellsville: what the city's audit, budget and tax records show

The Utah Ledger is reviewing Wellsville City's public financial records in a series called Auditing Wellsville. The series reports what the city's audited financial statements, budget filings and council notices state, and labels each figure with its year and basis.

The most recent audit on file with the State Auditor covers the year ended June 30, 2025. It was performed by Richey, May & Co., LLP of North Logan, and the auditor's report is dated Dec. 19, 2025. Wellsville publishes audited financial statements, not an annual comprehensive financial report. ^[1]

The audit opinion

The auditor's opinion says the financial statements present fairly, in all material respects, the city's financial position as of June 30, 2025. That is an unmodified opinion. ^[1]

In its report on state compliance, the auditor said Wellsville complied, in all material respects, with the requirements it tested, including budgetary compliance, fund balance, justice courts and restricted taxes. ^[6]

The schedule of findings says the audit disclosed no findings for the current or prior period. ^[7]

The General Fund

The General Fund, the city's main operating fund, took in $3,509,998 in fiscal 2025 and spent $2,878,299. After transferring $788,729 out, its fund balance fell by $157,030 to $3,084,890. ^[10][3]

Of that balance, $1,227,890 was unassigned. Most of the rest, $1,834,853, was restricted for roads. ^[3]

During the year the council amended the General Fund budget from $3,049,039 in expenditures and other uses to $4,074,539, according to the audit's budget comparison. Actual expenditures and other uses were $3,667,028. ^[4]

Sales and use taxes brought the General Fund $791,304 in fiscal 2025, and property taxes $406,599. Court fines brought $436,351. ^[4]

Capital Projects Fund and net position

The Capital Projects Fund received a $750,000 transfer from the General Fund in fiscal 2025 and ended the year with a $3,672,772 balance. The city assigned $3,356,164 of it to capital projects, $285,993 to the fire department and $30,615 to first responders. ^[3][10]

The city's total net position, an accounting measure of assets minus liabilities, was $26,195,065 at June 30, 2025. Of that, $18,675,663 was net investment in capital assets, which is not cash. ^[2]

Debt

The city's bond debt at June 30, 2025 totaled $1,710,000, all in water revenue bonds, with $116,000 due within a year. Of that, $1,700,000 was owed on a $3,200,000 State of Utah Division of Drinking Water bond at 2.4% interest that retires June 1, 2045, and $10,000 on a no-interest Utah Board of Water Resources bond that retires Jan. 1, 2027. A separate Ledger story covers the water bond. ^[5]

The 2026-27 budget and tax rate

The council noticed a public hearing for Sept. 16, 2026 to consider a resolution adopting the final 2026/2027 operating and capital budgets for the General Fund, Capital Projects Fund, Water Fund, Sewer Fund and Storm Water Fund. The notice lists no dollar figures. ^[8]

On Aug. 19, 2026, the council held a hearing on Resolution 2026-07, a proposed property tax revenue increase the agenda describes as 1.04% above the prior year's budgeted property tax revenue, excluding eligible new growth. A separate Ledger story covers the proposal. ^[9]