Council receives city fiscal report and auditors’ clean opinion as bond financing for new public works campus is disclosed

The South Salt Lake City Council received the City’s Annual Comprehensive Financial Report (ACFR) for the fiscal year ended June 30, 2025, which the independent auditors said presents the City’s financial statements fairly in conformity with U.S. generally accepted accounting principles. In the Independent Auditor’s Report, Squire & Company concluded, “In our opinion, the accompanying financial statements present fairly, in all material respects, the respective financial position… in accordance with accounting principles generally accepted in the United States of America.”

Finance Director Crystal Makin transmitted the ACFR to the Council and summarized major financial events, noting the city’s net position totaled $132,033,801 at year-end and decreased by $4,005,842 from the prior year. The report highlights that the city issued Sales Tax Revenue Bonds, Series 2024, with an aggregate principal amount of $40,665,000 to finance a new public works campus; it also reported a $8,500,000 water revenue bond (with $2,000,000 drawn at year-end) and the city’s participation in Central Valley Water Reclamation Facility (CVWRF) sewer revenue bonds, for which the city’s share was approximately $4.8 million.

The ACFR described how those financing actions affected the city’s long-term liabilities: “Long-term debt increased by $51,414,336 during the fiscal year,” driven largely by the sales-tax bond issue, draws on water/sewer bonds and the city’s CVWRF participation. The MD&A and notes show the sales-tax bond proceeds were placed in escrow for the public works campus and that releases from the escrow were requested as construction expenditures were incurred. Management’s letter also emphasized reserves and other fund balances: governmental combined fund balances rose to $92.19 million, with an unassigned general fund balance of $6.47 million (about 28% of general fund expenditures).

The auditor’s report and the ACFR also included the Single Audit schedules for federal grant activity and a schedule of findings. Squire & Company reported an unmodified opinion overall and identified one material weakness in internal controls tied to the city’s year-end close procedures; the schedule of findings recommends that city closing procedures be strengthened and reconciliations completed timely. Management acknowledged the finding and indicated steps to strengthen month-end, quarter-end and year-end closing processes.