American Fork's debt is set to pass $110 million, about double 2022

American Fork expects to owe $112.5 million in long-term debt on June 30, 2027, according to its adopted budget for this fiscal year. Its fiscal 2022 annual report put the city's total debt at about $55 million. ^[1][2]

Most of the increase comes from two issues. The city sold $40 million in lease revenue bonds in 2026 to build a new public works facility, payable through 2056. Its redevelopment agency borrowed $30 million in 2022 for 200 South near the FrontRunner station. ^[1]

What the city owes

Projected balances at June 30, 2027: $39.79 million on the 2026 public works bonds; $26.1 million on the 2022 redevelopment bonds; $19.08 million on 2020 water revenue bonds; $16.84 million and $3.6 million on 2016 and 2015 general obligation bonds for pressurized irrigation; $5.53 million on 2020 general obligation bonds for Fire Station 52; and $455,000 on 2018 sales tax bonds for Art Dye Park, which are paid off in 2028. Fire truck leases make up the rest. ^[1]

In Utah, general obligation bonds need voter approval and are backed by property taxes. Lease revenue bonds don't go to voters. ^[1]

The fiscal 2024 audit put the city at about 17% of its legal debt limit, and the city has kept reserves at the state maximum. ^[3] Higher debt service will claim more of future budgets, especially for the redevelopment bonds, whose tax increment hasn't yet covered the payments. ^[1]