Centerville posts modest year-end surplus; sales tax modestly above budget

Centerville — Finance Director Nate presented an informal year-end financial report to the council on Aug. 5, saying the city closed Fiscal Year 2025 in a healthy position with revenues roughly at budget and expenses below budget across several funds.

Lede details: Nate said the city’s sales-tax receipts totaled just over $5.6 million, slightly lower than the previous year but above the budgeted $5.5 million. General-fund total revenues were near the budgeted amount and expenditures finished below budget, producing a year-end net surplus of just under $1 million for the general fund.

Highlights by fund: The RDA fund posted net income just over $1 million; the recreation fund ended the year with a net income of about $14,000. Wrap-tax receipts totaled about $570,000 for the year, and staff recorded transfers from wrap-tax to parks and cultural funds per the budget. The water fund ended with approximately $554,000 net income, though finance staff noted a sizable portion of that was developer contributions for water lines. The sanitation fund showed a net income of roughly $121,000, supported in part by diversion/recycling rebates from Wasatch Integrated of about $6,000 per month.

Caveats and audit: Nate cautioned the figures are preliminary and subject to audit adjustments; the city is preparing for an external audit and expects auditors on-site in mid-September. He also noted the city’s Utopia rebate came in after the fiscal year and required an intra-period cash adjustment.

Questions and outlook: Council members asked whether revenue projections for FY2026 were reasonable; Nate said he is comfortable with assumptions used for next year’s budget but acknowledged sales tax is volatile and monthly receipts vary. He also noted an RDA agreement (Young Power Sports) will affect incoming revenue timing this fiscal year.

Next steps: Staff will finalize year-end entries, work with auditors, and present the audited financial statements and any recommended budget adjustments after the audit is complete.