Provo: water and sewer debt, utility transfers and audits
The Ledger's review of Provo's budgets, audits, debt, redevelopment money and officials' disclosures. Every story in the series, sorted by subject, with the figures the records show and links to the official documents.
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Auditing Provo: what the city's own records say about its money
A records-only look at Provo's budget, reserves, debt, audits and redevelopment agency, drawn from city budgets, audited financial reports, council minutes and Utah County tax increment reports.
Read the explainer →Key figures
- $94.26 millionProvo's FY2027 general fund budget, including transfers inAuditing Provo: what the city's own records say about its money →
- 32%Assigned and unassigned general fund balance, end of FY2025 (state cap is 35%)Auditing Provo: what the city's own records say about its money →
- $278.5 millionPrincipal on Provo's listed bonds, leases and notes, June 30, 2026 (Ledger tally)Provo's debt tables list about $278 million owed, mostly in water and sewer revenue bonds →
- $33.88 millionFederal ARPA relief Provo received in 2021 and 2022In 2021–2023, Provo moved $19.7 million of its pandemic aid into a new water plant →
- $17.19 millionFY2027 transfers from Provo's utilities to the general fundProvo's utilities will send $17.2 million to the general fund this year →
- $1.72 millionTax increment paid to Provo's RDA for tax year 2025Most of Provo's redevelopment tax increment comes from school district taxes →
- $10,000Internal audit engagement ceiling authorized May 2025Provo's council authorized up to $10,000 for an internal auditor in 2025 →
- 1%Utility revenue transfer no longer designated for roads in 2026 budgetProvo stopped earmarking a 1% utility transfer for roads in its 2026 budget →
- $18.1 millionProposed fiscal 2026 utility transfers to the general fundProvo stopped earmarking a 1% utility transfer for roads in its 2026 budget →
- $37.3 millionPaid to MGC CONTRACTORS INC, the city's largest payee in FY2026, as reported to the stateTransparent Utah: Provo City highest-paid vendors FY2026 →
Debt and bonds
Provo's debt tables list about $278 million owed, mostly in water and sewer revenue bonds
Water and wastewater revenue bonds make up most of what Provo listed as outstanding on June 30, 2026. The city uses about 10% of its legal limit for general obligation debt.
Redevelopment money
Most of Provo's redevelopment tax increment comes from school district taxes
County reports show Provo's redevelopment agency received $1.72 million in property tax increment for tax year 2025, $1.2 million of it from Provo City School District levies. The South University area reached its end year in 2025.
Budgets, reserves and taxes
Provo stopped earmarking a 1% utility transfer for roads in its 2026 budget
Since 2013 Provo has transferred 1% of utility revenues to the general fund for roads. Its fiscal 2027 budget says the city decided not to designate that transfer specifically for roads in the 2026 budget, citing new county road taxes and general fund needs.
Provo's utilities will send $17.2 million to the general fund this year
The fiscal 2027 budget keeps a transfer equal to 12.5% of utility revenue, which the city says makes up about 18% of general fund revenue. Power, water and some sewer rates rise this year.
Contracts and spending
In 2021–2023, Provo moved $19.7 million of its pandemic aid into a new water plant
Provo received $33.9 million in federal pandemic relief in 2021 and 2022. By mid-2023 the council had assigned all of it, mostly to water, wastewater, a fire station, a sports park and demolition of the old city center.
Audits and compliance
Provo's council authorized up to $10,000 for an internal auditor in 2025
In May 2025 the council voted to engage an outside internal auditor at $125 an hour for work through June 30, 2025. In April 2026 a councilor said the prior year's internal audit work had not been completed, and on May 12, 2026 the council approved revised audit charters.
Provo councilor says last year's internal audit work wasn't completed
At an April 28, 2026 meeting on the council's audit charters, a councilor said the prior year's internal audit work went unfinished. The council office said only two fraud-hotline tips in four years concerned the city.
Provo's FY2025 audit: clean opinion, no state compliance findings
The city's outside auditor reported no internal control deficiencies and no state compliance exceptions for the year ended June 30, 2025. Federal single audits have listed one finding since 2016, for fiscal 2020.