Parowan Reservoir Company owes the city's electric fund $1.22 million
Parowan's fiscal 2025 audit reports a $1,221,423 long-term receivable from the Parowan Reservoir Company, which agreed to pay the city $79,000 a year for 20 years toward its share of debt payments. The company also owes $352,423 for other costs that the audit says are not expected to be paid until after the debt period.
Continuing story: Auditing Parowan
Parowan's electric fund carried a $1,221,423 long-term receivable from the Parowan Reservoir Company at June 30, 2025, according to the city's fiscal 2025 audit. [1]
The audit says the city has an agreement under which the company "has agreed to pay the City $79,000 for 20 years for PRC's portion of principal debt payments." The receivable represents the outstanding payments due from the company at year-end. [1]
Other costs owed
The audit says the company also owes the city $352,423 "for other invoices and costs that were incurred in addition to the debt payments." [1]
Those costs "are not anticipated to be paid until after the debt period," the audit says, because the agreement says the company is not required to pay more than $79,000 a year. [1]
How it appears in the statements
The proprietary funds statement of net position lists, in the electric fund, a $79,000 current portion of the note receivable and a $1,142,423 noncurrent note receivable from the company. [2]
The audit does not identify which city debt the agreement relates to or when the 20-year period began. [1]
The $1,221,423 and $352,423 figures are separate amounts as the audit states them and are not added together here. They are balances at June 30, 2025.
Sources
- Parowan City · Financial Statements, June 30, 2025, Note 5 receivables (Kimball & Roberts; state-filed copy)
- Parowan City · Financial Statements, June 30, 2025, proprietary funds statement of net position
Reporting by The Utah Ledger from the public records above. AI-assisted, checked against those records.