American Fork agency kept collecting Egg Farm tax money after its report said the cap was nearly reached

American Fork's redevelopment agency kept collecting property tax increment from its Egg Farm economic development area for three more tax years after the point where, by its own figures, the area was $213,198 short of its cap. That is what the agency's 2026 annual report and Utah County tax records show. ^[1][2]

Over tax years 2023 through 2025 the agency received $3,279,538 from the area, about $3.07 million more than the $213,198 its reports said was left. About two-thirds of the money collected in those years came from Alpine School District property taxes. ^[1]

The Ledger has reached out to the city for comment.

What the records say

The Egg Farm area, home to the North Pointe Business Park, was created in 2000. A 2013 amendment to its budget says it will receive tax increment "for 24 years or until the total tax increment received by the Agency after tax year 2012 reaches a cap of $9,262,291, whichever occurs first." ^[1][3]

The 2026 annual report, which the agency board accepted on June 23, says $9,049,093 had been received through tax year 2022, "leaving $213,198 to be paid to the Agency before the cap is reached." It says the cap was projected to be reached with taxes collected in 2023, "and that the Project Area will expire at that time." The agency's 2024 budget packet uses the same language, and the city's 2023 filing with the state listed next year's expected receipts as $213,198. ^[1][4][5]

The same 2026 report's table of tax-year increment shows the agency received $1,020,659 for tax year 2023, $1,108,831 for 2024 and $1,150,048 for 2025. Alpine School District's share of those three years was $2,201,591. The report lists $1,080,000 in authorized funds for 2026. ^[1]

Utah County's tax increment reports show the same amounts at a 75% participation rate and list the area's end year as 2027. The agency's budget for this fiscal year, adopted in June, projects another $1 million in increment and says the fund will receive increment "through fiscal year 2028, depending on when minimum tax increment levels are reached." ^[2][6]

What we don't know

The Ledger found no amendment after 2013 that raises or removes the cap. The 2026 report cites only the 2013 amendment, and its description of the cap has not been updated past tax year 2022. ^[1]

There could be an explanation the published reports don't show, such as a later agreement with the taxing entities, a different way of counting toward the cap, or money returned after it was received. If the 2013 cap still applies, increment beyond it would normally have stayed with the county, the school district and the water districts.

The area's fund held an estimated $5.3 million at the end of the last fiscal year, according to the agency's budget, which plans storm drain work and the widening of 1500 South with it. Over its life the area has also paid $4.29 million under development agreements. ^[6][1]

We will update this story with the city's response.