Santaquin's General Fund is repaying a $3.6 million loan from the irrigation fund
A 2023 loan from Santaquin's pressurized irrigation fund to its capital projects fund had $3,282,102 outstanding at June 30, 2025. City budgets show the General Fund making the payments, at 1% interest, on a loan that runs through 2041.
Continuing story: Auditing Santaquin
Santaquin's fiscal 2025 debt note lists a '2023 Interfund Loan from PI to CP,' a loan from the pressurized irrigation fund to the capital projects fund. The original principal was $3,632,991 at a 1% rate, maturing Sept. 1, 2041. [1]
The balance fell by $176,317 during fiscal 2025, from $3,458,419 to $3,282,102, with $178,080 due within one year. [1]
Who pays
The General Fund's debt service section of the city budget carries 're-payment to PI fund' lines. They show $176,317 in principal and $34,584 in interest paid in fiscal 2025. The fiscal 2026 budget shows $178,080 and $32,821, both recorded in the actual column through 75% of the year. The final fiscal 2027 budget plans $179,862 and $31,041. [2]
The audited General Fund statement reports $456,317 in principal payments for fiscal 2025. [5]
Management's discussion says the city's water fund accounts for both water and irrigation operations. The water fund's statement of net position lists $3,282,102 'due from other funds.' [6][4]
How it is counted
Management's discussion includes the loan among governmental activities in its $30,444,439 total of outstanding debt, alongside revenue bonds, leases and a bond premium. [3]
The records reviewed do not show what the loan financed. [1][3]
This is a loan between city funds. Its repayments move money from one city fund to another, and it is not borrowing from an outside lender. It should not be added to the city's external debt a second time.
Sources
- Santaquin City · FY2025 notes to financial statements, long-term debt
- Santaquin City · FY2026-27 final budget, General Fund debt service
- Santaquin City · FY2025 management's discussion and analysis, outstanding debt
- Santaquin City · FY2025 statement of net position, proprietary funds
- Santaquin City · FY2025 statement of revenues, expenditures and changes in fund balances, governmental funds
- Santaquin City · FY2025 management's discussion and analysis, proprietary funds
Reporting by The Utah Ledger from the public records above. AI-assisted, checked against those records.