Kaysville review of audited finances shows strong fund balance; council sets FY26 timeline

Kaysville City staff reviewed the audited financial statements and a year‑to‑date financial summary on Feb. 14, saying the city’s governmental funds are in healthy condition and laying out the schedule for the FY26 budget.

The presentation centered on the city’s annual comprehensive financial report (formerly called the CAFR) and fund balance classifications. Staff reported the city’s unassigned general‑fund balance at about 35 percent of revenues (roughly $7.7 million), near the upper range the council discussed as allowable. Staff said the city preserves restricted and assigned balances for designated purposes, including capital projects and perpetual care funds for the cemetery.

The session also highlighted unusually strong investment income in the current period. Staff reported roughly $1.6 million in investment earnings credited to the general fund in the most recent year, and said improved yields have reduced pressure on the operating budget. Council members and staff discussed the distinction between fund balance (the balance sheet measure) and operating results for enterprise funds, and how non‑operating items such as investment earnings and capital contributions affect overall net position.

Council members reviewed statutory and timing constraints for the budget process. Staff said the tentative FY26 budget would be prepared and presented to department heads in the coming week, with work sessions planned for April. Key dates noted by staff: a tentative budget submission on or about May 15, a possible final adoption on June 19 if no truth‑in‑taxation hearing is required, and an August hearing if the council moves forward with a truth‑in‑taxation process. Staff reminded the council that truth‑in‑taxation procedures are governed by state law and would alter the schedule and public‑notice requirements.

Council members asked for additional detail in the coming weeks on fund‑by‑fund balances, assigned capital dollars and the planned use of fund balance for one‑time items in FY26. Staff agreed to provide department‑level requests when those returns are received and to circulate deeper detail before the April work sessions.

Less critical details: staff noted several restricted balances (park, police and fire impact fees, cemetery perpetual care and other dedicated funds) and said other nonmajor governmental funds are summarized in the CAFR.