Santaquin's utility overhead charges to the General Fund nearly double in two budgets
Santaquin's water, sewer and irrigation funds paid the General Fund $1,075,000 in administrative overhead charges in fiscal 2025. The revised fiscal 2026 budget set those charges, now including storm drain, at $2,036,400, and the fiscal 2027 final budget sets them at $2,127,500.
Continuing story: Auditing Santaquin
Santaquin's General Fund budget lists four 'admin overhead charge' revenue lines from the city's utility funds. Each utility fund lists a matching 'administrative overhead expense.' [1]
In fiscal 2025 the actual charges totaled $1,075,000. The revised fiscal 2026 budget set them at $2,036,400, and the final budget for fiscal 2027 sets them at $2,127,500. [1]
Fund by fund
Culinary water: $465,000 actual in fiscal 2025, $767,000 in the revised fiscal 2026 budget and $835,400 planned for fiscal 2027. [1]
Sewer: $465,000 actual, $838,000 revised and $835,400 planned. [1]
Pressurized irrigation: $145,000 actual, $394,000 revised and $417,700 planned. [1]
Storm drain: nothing in fiscal 2025, $37,400 revised and $39,000 planned. [1]
The budget's column of fiscal 2026 actuals through 75% of the year shows $1,527,300 charged, which is 75% of the revised amounts. [1]
The audited year
The audited fiscal 2025 statements show $610,000 of administrative overhead in the water fund, which includes both culinary water and pressurized irrigation, and $465,000 in the sewer fund. Together that is $1,075,000, matching the budget's actual column. [1][2]
The state compliance report for fiscal 2025 lists 'Enterprise Fund Transfers, Reimbursements, Loans, and Services' among the areas tested. The auditor's opinion says the city 'complied, in all material respects,' with the requirements tested. [4]
The 2027 transfer sheet
The final budget's transfer sheet labels the storm drain and irrigation charges '20% of Enterprise Fund' and the culinary water and sewer charges '25% of Enterprise Fund.' It does not state what amount those percentages are taken of. [3]
With a separate $20,000 charge to the redevelopment agency, the sheet shows $2,147,500 in total transfers into the General Fund. [3]
The overhead charges are part of $2,477,500 in contributions and transfers within $13,896,740 of planned General Fund revenues. [1]
The council approved the budget on June 16, 2026, with three technical corrections to the water, sewer and library funds. The posted budget does not show those corrections. [5]
Fiscal 2026 and 2027 amounts are budgeted charges, not final spending. The records reviewed do not show the method used to set the charges. The budget labels these amounts administrative overhead. This story does not establish that any charge or transfer was improper.
Sources
- Santaquin City · FY2026-27 final budget, General Fund and utility funds
- Santaquin City · FY2025 statement of revenues, expenses and changes in net position, proprietary funds
- Santaquin City · FY2026-27 final budget transfers
- Larson & Company · FY2025 report on compliance with the State Compliance Audit Guide
- Santaquin City Council · June 16, 2026 minutes, final budget adoption
Reporting by The Utah Ledger from the public records above. AI-assisted, checked against those records.