Salem plans $1.1 million in utility transfers to its general fund for 2027
Salem's fiscal 2027 budget moves $1,117,000 from six city-owned utilities to the general fund, which the city says helps avoid property tax increases or service cuts. The fiber utility contributes nothing, and the utilities also pay separate administrative charges.
Continuing story: Auditing Salem
Salem, Utah, owns its water, sewer, electric, solid waste, pressurized irrigation, storm drain and fiber utilities. Its fiscal 2027 budget moves $1,117,000 from six of them into the general fund. [1][2]
The transfers
The city's public notice lists transfers to the general fund of $220,000 from water, $121,500 from sewer, $506,500 from electric, $49,500 from solid waste, $190,000 from pressurized irrigation and $29,500 from storm drain. The fiber fund transfers nothing. [1]
The notice gives each transfer as a share of the fund's total expenditures, ranging from 2% for storm drain to 9% for water. [1]
The general fund's budget shows $1,117,000 in transfers from enterprise funds for fiscal 2027, the same as in fiscal 2026, and $1,137,000 in fiscal 2025. [2]
The notice's heading and budget section refer to fiscal 2027, while its transfer table is introduced as "the approved Fiscal Year 2026 transfers." [1]
The city's explanation
The notice says the transfers "can help to defray the cost of services such as public safety, public works" and that "Without the transfers, Salem City would either have to significantly raise property taxes or significantly cut services." [1]
Administrative charges
Separately from the transfers, the notice lists charges the general fund makes to other funds for centralized services. For fiscal 2027 they include $562,811 each for water and sewer, $469,867 for electric, $562,661 for pressurized irrigation, $194,297 for solid waste, $183,405 for storm drain and $283,977 for fiber. [1]
The fiber fund's administrative services charge was $90,600 in fiscal 2025, according to the audit. [3]
Fiscal 2025 and rates
In fiscal 2025, the utility funds transferred $1,137,000 to the general fund, according to the city's audit. Counting transfers they received, including $300,000 into the fiber fund, the utilities' net transfers out totaled $337,000. [3]
On May 20, 2026, the council voted 4-0 to adopt a 6% increase in residential electric rates. Finance Director Jeff Nielson presented the resolution as a response to higher rates from the Utah Municipal Power Agency, and Mayor Cristy Simons referred to an approximate 15% increase in the cost of power from the agency. [4]
On June 17, 2026, the council voted 5-0 to adopt a property tax rate of 0.001129 for 2026. [5]
Transfers between city funds move money inside the city; they are not added to outside spending here. Administrative charges are a separate category from transfers. Fiscal 2027 amounts are budgeted, not actual.
Sources
- Salem City · Fiscal 2027 budget transfers and administrative fees notice
- Salem City · Fiscal 2027 budget worksheet (state budget report, July 8, 2026)
- Salem City · Fiscal 2025 audited financial statements (Richey May & Co., Nov. 26, 2025)
- Salem City · May 20, 2026 council minutes
- Salem City · June 17, 2026 council minutes
Reporting by The Utah Ledger from the public records above. AI-assisted, checked against those records.