Kanab's year-end budget amendment adds transfer authority and an airport loan between funds
A June 2026 amendment to Kanab's fiscal 2026 budget, adopted 4-0, added $300,000 in general fund transfer authority. It also provided for an interfund loan to cover about $3.8 million in airport projects while the city waits for grant reimbursements.
Continuing story: Auditing Kanab
Kanab's council amended the city's fiscal 2026 budget on June 23, 2026, a week before the fiscal year ended. The council voted 4-0 for Resolution 6-5-26 R, with council member Arlon Chamberlain absent. [2]
A staff memo in the meeting packet explains the changes. [1]
Revenue and transfers
The memo says the city projected general fund revenue to exceed the adopted budget by about $600,000. It says sales tax, resort tax and building permit revenue were trending below budget but that stronger-than-expected interest income and miscellaneous revenue were expected to offset them. [1]
It says about $6 million had been spent from the general fund to date and that staff did not expect to use all of the additional authority requested. [1]
The amendment adds $300,000 in authority to transfer money from the general fund to other city funds. The memo describes the purpose as flexibility for year-end fund balance management and compliance with state limits on municipal fund balances. [1]
Airport projects and an interfund loan
The memo says about $3.8 million in airport capital projects were complete and that such projects are generally funded at about 95% through federal and state grants. Because reimbursements often come after the city spends the money, it says, an interfund loan is needed to keep the airport capital fund from a negative cash position. [1]
The memo does not state the loan's amount or repayment terms. [1]
Other changes
About $675,000 in transportation impact fee revenue was to be moved to the Transportation Fund to match an updated accounting structure; the memo says some of it had already gone to the public works facility and design work on 1100 South. Transfers to the fire capital fund were raised to reflect fee-for-service revenue. Water and sewer spending authority was reduced because some projects were not completed during the year. [1]
According to the minutes, Ludwig told the council the general fund would finish the year stronger than budgeted and that the amendment does not commit the city to additional spending. No one from the public commented. [2]
Amendment amounts are spending and transfer authority, not money spent. The $3.8 million is the memo's estimate of completed airport projects, and the share paid by grants is the memo's general description.
Sources
- Kanab City Council · June 23, 2026 packet (June 9 minutes, FY2026 budget amendment memo)
- Kanab City Council · July 14, 2026 packet (June 23, 2026 minutes)
Reporting by The Utah Ledger from the public records above. AI-assisted, checked against those records.