Auditing Cedar City: what the city's own records say about its money

The Utah Ledger is reviewing Cedar City's public financial records and reporting only what the documents state. Each story in this series links every figure to its source and names the dates it covers. The records are City Council minutes and meeting packets posted on the state's Public Notice Website. ^[1][2][6]

The Ledger could not open the city's full fiscal 2026-27 budget document when it began this series. It has since found the budget the city posts on its budget page, and the figures it uses are described below. Questions the budget would answer for other funds are listed where they apply.

The budget

The council held a public hearing and adopted the fiscal 2026-27 budget on June 10, 2026. Councilmember R. Scott Phillips moved to approve it and Councilmember Robert Cox seconded; the roll call was 4-0, with Councilmember Phil E. Schmidt absent. ^[1]

Finance Director Terri Marsh presented the budget. The final budget presentation shows a balanced general fund, with revenues of $36,512,530 and expenses of $36,512,530. ^[1]

The presentation lists changes from the tentative budget, including $1,000,000 for a future Heritage Center renovation reserve, $200,000 for downtown angle parking on 100 West, $150,000 for a zoning ordinance consultant and $115,525 for a grant contractor. ^[1]

The adopted fiscal 2026-27 budget the city posts on its budget page lists $36,512,530 in General Fund revenue, which includes $512,645 of appropriated fund balance, money drawn from reserves rather than new revenue. ^[10]

The same document lists $15,379,931 in Water Fund revenue. That includes $3,311,530 in budgeted bond proceeds and $1,658,571 in appropriated fund balance. Those are financing plans, not collected revenue or completed borrowing. ^[11]

The posted budget is the adopted table, and the Ledger has not seen any later amendment of it.

June rate and fee actions

At a June 17 work meeting, staff member Matt Baker said a proposed base water rate increase would cover a new state water usage fee. "I'm not asking for any more revenue, just raising to cover that fee," he said, according to the minutes. ^[3]

On June 24, the council approved the base water rate increase, the certified tax rate for fiscal 2026-27 and revisions to the fiscal 2025-26 budget, each by a 5-0 vote. The minutes do not state the rates or the revision amounts. ^[2]

The June 17 work meeting packet includes a one-page proposed fee or rate increase for fiscal 2026-27. It lists the water base rate going from $17.30 to a proposed $17.56 and says the change is meant to offset new state drinking-water fees. It says the adjustment does not generate additional revenue for the city. That is a proposal, not an adopted rate. In the June 24 minutes, staff said "No changes" on the base water rate resolution, and the motion to approve it carried 5-0, but the item prints no amount. The Ledger has not seen the signed fee schedule or the current billing amount, so it does not state the adopted rate. ^[12][2]

The council also adopted an impact fee facilities plan, analysis and rates by a roll call in which all five council members voted aye. The minutes say the ordinance takes effect 90 days after passage. ^[2]

The fiscal 2025 audit

Rees CPA, of Cedar City, dated its independent auditor's report on the fiscal year ended June 30, 2025 Jan. 22, 2026. The report says the financial statements present fairly, in all material respects, the financial position of the city's governmental activities, business-type activities, each major fund and the remaining fund information. ^[7]

At June 30, 2025, the General Fund balance was $17,884,322, of which $15,070,621 was unassigned. Total governmental fund balances were $61,105,448. These are accounting balances, not cash on hand. ^[8]

The audit's long-term debt note lists $3,727,000 in general obligation refunding bonds and $1,803,000 in revenue bonds for governmental activities, and $20,598,000 in revenue bonds for business-type activities, a combined $26,128,000 in bond principal, by the Ledger's sum. ^[9]

Reserves

On Sept. 23, the council considered a fund balance and reserve policy that sets separate targets for the general fund, the capital projects fund and the city's enterprise funds. Draft minutes record a 4-0 vote to adopt it. ^[4][5]

What this series covers

The stories cover the costs and funding of the covered outdoor arena at the Cross Hollow Event Center, the award of two well-rehabilitation contracts, a final change order on the 100 East roadway project and the new reserve policy. ^[6][5][4]

The Ledger has sent no records requests or questions to the city for this series.