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ANNUAL FINANCIAL REPORT TO THE COMMUNITY
Cottonwood Heights, Utah
City Between the Canyons
MICHAEL J. PETERSON, MAYOR
J. SCOTT BRACKEN, COUNCIL MEMBER
TALI C. BRUCE, COUNCIL MEMBER
CHRISTINE W. MIKELL, COUNCIL MEMBER
DOUGLAS PETERSEN, COUNCIL MEMBER
Fiscal Year Ended
June 30, 2021
To the Mayor, City Council and Residents of the
City of Cottonwood Heights:
The city manager and the entire finance and
administrative department team are proud to present
the sixth Annual Financial Report to the
Community, also known as a Popular Annual
Financial Report (PAFR) for the fiscal year (FY)
ended June 30, 2021. This report provides an
overview of the city’s financial condition and brief
analysis of how revenues are generated and how
dollars are expended.
Most of the information in this report is drawn
from the financial information in the FY2020-
2021 Annual Comprehensive Financial Report
(ACFR). The ACFR is a more detailed and
complete financial presentation prepared in
conformance with Generally Accepted
Accounting Principles (GAAP) and was audited
by the city’s independent auditors, receiving an
“unmodified opinion” (an opinion without
auditor exceptions or qualifying comments).
The Government Finance Officers Association of
the United States and Canada (GFOA) gave an
Award for Outstanding Achievement in Popular
Annual Financial Reporting to Cottonwood Heights
for its Popular Annual Financial Report for the
fiscal year ended June 30, 2019. The Award for
Outstanding Achievement in Popular Annual
Financial Reporting is a prestigious national award
recognizing conformance with the highest standards
for preparation of state and local government
popular reports.
To receive an Award for Outstanding Achievement
in Popular Annual Financial Reporting, a
government unit must publish a Popular Annual
Financial Report, whose contents conform to
program standards of creativity, presentation,
understandability and reader appeal.
An Award for Outstanding Achievement in
Popular Annual Financial Reporting is valid for
a period of one year only.
Cottonwood Heights received a Popular Award
for the seventh time in 2019. We believe our
2020 report and our current report continue to
conform to the Popular Annual Financial
Reporting requirements, and we have and are
submitting it to GFOA.
We hope you will find this information to be
interesting and informative. We welcome your
comments and suggestions for future reports.
Both the ACFR and this document, the PAFR,
are available for viewing at city hall and for
viewing or printing on the city’s website at
http://www.ch.utah.gov/.
City Profile
Although the area currently encompassing Cottonwood Heights City was not incorporated until 2005,
the community has roots back to the first pioneer settlers in the Salt Lake Valley. The following is an
excerpt from Cottonwood Heights City’s General Plan:
Near what is now Fort Union Blvd. and 2700 East early
settlers established a community center with a church and a
school. Among the earliest settlers of the area were six
colorful brothers. The ‘Butler Brothers’ were lumbermen –
complete with wagons, teams, and sawmills.
The Butler Bros (left to right): Alma, Alua, Leander, Neri,
Phalander, and Eri
There were also four McGhie brothers and their families.
Legend has it that they called a town meeting to organize
their community and there was one more Butler than
McGhie at the meeting, therefore the community received
the name ‘Butler’ rather than ‘McGhie.’ Natives differ on
this name; some say it was named ‘Butlerville,’ and others
say the ‘ville’ was just a nickname.
Different parts of the west end of the city were known by
other names. The Southwest part of the current city was
known as Little Cottonwood, or Union. One of the
highlights of the area’s history was the Deseret Paper
Mill – the ‘Old Mill’ situated along Big Cottonwood
Creek about a mile below the mouth of the Big
Cottonwood canyon.
It was built in 1861 to make paper for the Deseret News
(newspaper). The paper was made with wood pulp
taken from the canyons and rags gathered by families
in the valley.
It operated for many years, furnishing employment for
the people of Butlerville and paper for the territory.
But on the morning of April 1, 1893, the mill burned
down and was never rebuilt as a paper mill. Since the
mill’s construction, the railroad had come through and
it was cheaper to bring paper in by train than to
manufacture it locally.
The Deseret Paper Mill is one of the highlights of
Cottonwood Heights' history and still stands today.
Today, the City is home to nearly 35,000 residents with access to some of the greatest outdoor recreation
opportunities that exist anywhere in the world. The two canyons bordering our City contain four ski
resorts (Snowbird, Alta, Solitude, and Brighton) as well as many miles of roads and trails.
Staff and
Elected Officials
State statutes detail the functions performed by municipalities. Cottonwood Heights is a political
subdivision of the State of Utah and a municipal corporation. The City was incorporated on January
14, 2005, out of the southeastern area of unincorporated Salt Lake County. As of the 2010 census the
City had 33,433 residents
(the November 2021
estimate is 33,617) and
encompassed approximately
9.24 square miles of land
area.
At its inception, citizens
voted to operate Cottonwood
Heights under the council-
manager form of
government. Under this
form of government, the
citizens elect a five member
council, chaired by a mayor.
For Cottonwood Heights,
the Mayor is elected at large,
while the other four
members
of the
Council are
elected by
district.
The mayor and council select a city manager who acts as the chief executive officer
of the City.
Policy-making and legislative authority are vested in the mayor and council while execution and
administration of policies and ordinances is the responsibility of the city manager. The mayor and
council serve part time. The city manager serves full time. According to population and Utah law,
Cottonwood Heights is considered a city of the third class.
City Manager
Tim Tingey
City Services
As a local general purpose government, Cottonwood Heights provides a full range of municipal
services. Some of these services are provided internally, while others are delivered through agreements
with governmental agencies or private contractors. Still other services are provided to Cottonwood
Heights residents by special districts.
Cottonwood Heights serves the residents of the City by performing the following functions using City
personnel.
Police
Planning and Zoning
Economic Development
Highways and Public Improvements
Engineer Services
Finance and Treasury
Public Works
For certain services, the City contracts with the following agencies or private companies:
Fire and emergency services are provided by Unified Fire Authority;
Sunrise Engineering is responsible for plan review and inspections with James Short serving as
the City Building Official;
Legal Services are provided by the firm of Jones Waldo, with W. Shane Topham employed as
the City Attorney.
The following services are provided directly to Cottonwood Heights residents by other governments or
special service districts. Taxes and fees are paid directly to these entities.
Water treatment and distribution is provided by Salt
Lake City and Jordan Valley Water Conservancy;
Cottonwood Improvement District provides
wastewater collection and treatment;
Wasatch Front Waste & Recycling provides disposal
services of solid waste and recycling for City
residents;
Library Services are provided by Salt Lake County;
Parks and recreation services are provided primarily
by Cottonwood Heights Parks and Recreation Service
Area.
Financial
Highlights
The City’s general fund balance increased by $5,480,225 to $7,928,296. This represents 37.1
percent of the budgeted revenues for the 2022 fiscal year;
The City received $1,294,220 in CARES funding to help offset expenses incurred due to COVID-
19;
The City received a Distinguished Budget Presentation Award for the fourteenth consecutive year
in 2020/21 and a Certificate of Achievement for its ACFR for the tenth consecutive year in
2019/20. Both awards are issued by the Government Finance Officers Association (GFOA).
Revenue
Trends
The Graphs below show the Cities trends in both sales and property taxes. As indicated, while both
revenue streams are trending upward, sales tax revenue tends to be more directly connected to
economic growth, while property tax tends to be more stable. The potential for growth in sales tax
revenue is greater than property tax revenue since Utah State law does not provide for natural
inflation growth in property tax revenues without requiring a tax increase.
‐
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
2015 2016 2017 2018 2019 2020 2021 2022 (bud)
Th
o
u
s
a
n
d
s
Cottonwood Heights
Property Tax and Sales Tax Revenues
2015 ‐2022
Sales Tax Property Tax
Funding of
Government
Services
The funding for the services provided by Cottonwood
Heights comes from a variety of sources. The major
sources of funding are described below:
Property Tax. Property tax is the largest source of
revenue for Cottonwood Heights, representing 39
percent of total governmental revenue. Salt Lake
County is charged with assessing all real and personal
property in the County.
Residents of Cottonwood Heights pay property taxes to
numerous taxing entities including: Canyons School
District, Salt Lake County, Cottonwood Heights City,
Cottonwood Heights Parks and Recreation District, Salt
Lake County Library, Central Utah Water Conservancy,
Cottonwood Improvement District, and South Salt Lake
Valley Mosquito Abatement. The proportionate amount
paid to each taxing district is represented in the chart
below:
By state law, primary residences are taxed at 55% of
their value as assessed by Salt Lake County. All other
real and business personal property is taxed at 100% of
assessed value. Cottonwood Heights’ 2019/20 property
tax rate is .1898%. So, a primary residence in
Cottonwood Heights with an assessed value of $485,700
would pay $507.02 in property taxes to Cottonwood
Heights.
Sales Tax. Sales Tax is the second largest source
of revenue for the City, representing 32 percent of
total governmental revenue. Retail sales in
Cottonwood Heights are assessed a tax at the rate of
7.25 percent. One percent of the 7.25 percent is
assessed by the City. However, following state law,
50 percent of this revenue comes directly to
Cottonwood Heights, while the other 50 percent is
distributed statewide based on population. How this
tax is distributed is shown by the chart below:
Grants. Cottonwood Heights received $2,742,973
in grants during the 2020/21 year. The largest State
grant comes from gasoline taxes paid by all Utah
residents. These funds totaled $1,305,432 during
the year and are distributed by the State from a
formula that includes both population and road
miles. The City utilized $1,294,220 from the
Federal CARES act funds for COVID-19 expenses.
Fees. Another Source of revenue is fees charged
for services, primarily related to community
development. Companies, or individuals, desiring
to develop property within the boundaries of
Cottonwood Heights pay fees for planning, business
licenses, building permits, and plan reviews. These
fees help the City develop in a way that follows safe
and fundamentally sound building practices.
Canyons
School
District
53%
Salt Lake
County
14%
Cottonwood
Heights City
14%
Cottonwood
Heights
Recreation
8%
Jordan/Canyon
Debt Service
3%
Salt Lake
County
Library
4%
Central
Utah Water
3%
Cottonwood
Sewer Dist
1%
So SL
Valley
Mosquito
0%
Property Taxes in Cottonwood Heights
State
4.85%
County
0.85%
Mass
Transit
0.55%
Statewide
Pool
0.50%
Cottonwood
Heights
0.50%
Local,
1.00%
Sales Tax Distribution
Financial
Information
Government accounting standards require financial information to be presented on both a long-term,
full accrual (government wide) method as well as a current view (fund) basis. For the year ending June
30, 2021, the City’s Government-Wide Statement of Activities reports the following results consistent
with Generally Accepted Accounting Principles (GAAP):
Government-Wide Financial Data
STATEMENT OF ACTIVITIES (Governmental Funds)
The Statement of Activities
provides information on a full
accrual basis. Revenues and
expenses are recorded based on the
economic substance of the
transaction and does not always
match how these transactions were
recorded in the budget.
No new services or programs were
implemented during the year.
Increases in departmental expenses
were primarily due to increases in
the cost of employee health
insurance premiums, Utah State
pension rates, and cost of living
wage adjustments. Increased
depreciation contributed to this
change as well.
Grants vary year-to-year based on
available funding and project need.
The largest capital grant in 2020/21
was $1,500,000 from Salt Lake
County used for open space
purchase and trail improvements
and the largest operating grant was
$1,247,577 from the State of Utah
for road maintenance.
2021 2020 2019
Revenues:
Program Revenue 1,266,438$ 1,277,593$ 1,400,005$
Fees, Fins, and Charges for Services 2,742,973 2,213,878 1,417,229
Capital Grants and Contributions 1,933,615 1,479,585 8,456,439
Total Program Revenue 5,943,026 4,971,056 11,273,673
General Revenues:
Property Tax 8,345,776 8,483,123 8,326,448
Sales Tax 7,974,169 6,773,240 6,395,262
Opt Hwy/Trans Sales Tax 620,895 586,066 ‐
Municipal Energy Sales Tax 2,125,352 1,989,725 1,993,681
Franchise Tax ‐ Cable TV 313,787 323,830 325,048
Unrestricted Investment Earnings 39,179 159,277 233,574
Gain on Sale of Capital Assets 602,152 ‐ 508,094
Miscellaneous 58,904 176,727 202,772
Total General Revenue and Transfers 20,080,214 18,491,988 17,984,879
Total Revenue 26,023,240 23,463,044 29,258,552
Expenses:
Primary Government:
Governmental Activities:
General Government 3,201,256 3,798,508 3,893,596
Public Safety 9,773,560 11,089,234 10,547,363
Highways & Public Improvements 8,322,471 4,997,859 5,770,220
Community & Economic Development 965,239 2,436,609 7,148,623
Interest on Long‐Term Debt 607,188 685,201 340,990
Total Expenses 22,869,714 23,007,410 27,700,792
Change in Net Position 3,153,526 455,634 1,557,760
Net Position Beginning of the Year 52,781,054 52,325,420 50,767,660
Net Position End of the Year 55,934,580$ 52,781,054$ 52,325,420$
General Fund
Financial Data
The following information is presented from the City’s general fund financial statements. These statements
differ from the Statement of Activities shown on the previous page in that the information is presented on a
current resources model and matches the flow of these resources to the City’s budget. The information
below is only related to revenues and expenditures of the City’s general fund. Information on the City’s
other funds can be found by accessing the Comprehensive Annual Financial Report on the City’s website.
General Fund Revenues. The City’s general fund is the primary operating fund of the City. Most of the
revenues in the general fund come from taxes levied to and paid by Cottonwood Heights residents.
However, some general fund revenue comes from fees paid for services provided. The chart below
illustrates the proportionate sources of revenue for Cottonwood Heights. Other revenues include the sale of
capital assets.
General Fund Revenues
Property Tax - $8,060,893
Sales Tax - $7,894,215
Grants - $2,742,973
Other Taxes - $3,424,871
Fines and Forfeitures - $310,038
Licenses - $870,702
Other Revenues - $149,826
General Fund Expenditures. Cottonwood Heights provides numerous services to the residents of the
City. These services consist of public safety, street maintenance, and planning and zoning. Other
expenditures are made to City departments in support of these operational departments. These services
include such functions as: accounting, legal services, city council, and other management expenditures.
The chart below illustrates how these funds are spent, which includes funds transferred to the capital
projects fund.
General Fund Expenditures and Transfers
Public Safety - $10,184,531
General Government - $3,536,712
Street Improvements - $2,651,450
Community Development - $962,746
Capital Outlay - $1,858,543
Debt Service - $1,835,262
2021-2022
Budget Priorities
Strategic Initiative Priorities – These priorities were used as a guide during the budget process and not all were funded.
Some of these items will carry over into future budget years.
Revenue Options
Storm Water Fee Implementation
Grants – (Notes: Pursue TRCC, ZAP, Wasatch Front Regional Council grants, Safe walking routes and Corridor Preservation
funding opportunities);
State legislature Road Funding;
Community Development and Renewal Agency Funding;
Bonding.
Funding Options
Road Improvement Funding;
Staff Compensation;
VECC Fee Increase;
Unified Fire Authority Fee Increase;
Continue to identify and secure funding for property acquisition and capital expenditures for the Bonneville Shoreline Trail
(BST);
Storm Water Investment;
1700 East Sidewalk Project from Fort Union Blvd. to 7200 South;
Bike Lanes Barriers on Bengal Blvd. for safe biking;
EV Charging Infrastructure Investment;
Renewable Energy Act Contribution
Forbush Cemetery Annual Contribution;
East side Road Issues;
Police Overtime for Snow Related Traffic;
Ferguson Canyon overflow Parking, park and off leash Area Solar Panels at City Hall.
Other Items for further evaluation
Public Works Building;
Doverhill Property;
Trails along Murray Power Lines (near Wasatch Blvd.)
Danish Road Reconstruction;
7200 South Target/Hillside Trail – TRCC Funding Request.
Legislative Options
Prepare Chapter 19 Code Revisions (19.51 Planned Development District Zoning);
Prepare Chapter 14 Code Revisions (Highways, Sidewalks and Public Places);
Prepare Chapter 19 Code Revisions (19.72 Sensitive Lands);
Prepare Chapter 5 Code Revisions (Business Licensing);
Prepare Chapter 2 Code Revisions (Governance and Administration);
Prepare Chapter 9 Code Revisions (9.05 Nuisances and Abatement);
Prepare Chapter 9 Code Revisions (9.62 Idling Vehicles) (Private Property - State Statue);
Administrative &
Statutory
Officials
City Manager Tim Tingey
City Finance & Admin Director
and Budget Officer Scott Jurges
City Director of Community &
Economic Development Mike Johnson
City Public Works Director &
City Engineer Matt Shipp
City Treasurer & Reporting
Manager David Muir
City Police Chief Robby Russo
City Recorder, Culture, and
Human Resources Director Paula Melgar
City Attorney Shane Topham—Jones
Waldo
City Fire Chief Riley Pilgrim— Unified
Fire Authority
City Building Official James Short— Sunrise
Engineering
Visit Cottonwood Heights City at
http://www.cottonwoodheights.utah.gov
The following valuable information can be obtained
from the City’s website:
Annual budgets
Annual Financial Statements (ACFR)
Popular Annual Financial Report (PAFR)
Monthly Financial Reports to the Council
Information about the Mayor and City Council
Hot topics going on in the City
News and events happening
City calendar of events and meetings
Job opportunities
Monthly message from the mayor or member
of the City Council
Department contacts and information
and lots of other good stuff.
also
Join us on Facebook @ www.facebook.com/chcity
and Follow us on Twitter @ CHCITY
City Hall:
2277 East Bengal Boulevard
Cottonwood Heights, Utah 84121
801 944-7000
801 944-7005 (fax)